Baltic International Bank closed Q3 2019 with profit with an increase in deposits and assets

News - December 2, 2019

In Q3 2019, Baltic International Bank continued to show positive operating results closing this quarter with a profit of EUR 184 thousand. The work of the Bank’s Management Board and team helped achieve a 30% increase in assets and a 31.4% increase in net fee and commission income. Likewise, the Bank continued to work efficiently on optimising all of its business processes since in the first nine months of this year (compared to the same period last year) operating income increased by half a million euro, while expenses were reduced by 3.5 million. Ensuring compliance with the requirements of the Financial and Capital Market Commission, the Bank's capital adequacy ratio reached 13.35% and liquidity coverage ratio remained high at 166%.

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‘In third quarter, Baltic International Bank was focused on promoting sustainable development and the local market by prioritising local customer service in line with its privately-owned bank strategy, with a particular focus on lending to small and medium-sized Latvian businesses, investment services and asset management services as well as the development of new services and products with high added value. Since the Bank operates in accordance with the ESG (Environmental. Social. Governance) approach, which focuses on sustainable development at all levels of the Bank's operations, a lot has been done in the field of sustainable development which any interested person can see for him/herself as the Bank also published its first Corporate Responsibility and Sustainability Report and set its Sustainable Development Goals under the United Nations (UN) Environment Programme Financial Initiative,’ says Viktors Bolbats, Chairman of the Board of Baltic International Bank.

As a local capital bank, Baltic International Bank wants to contribute to the development of the local region, so it has launched a dialogue with governmental authorities and industry representatives to improve the current situation to further enhance the contribution of local capital banks to the Latvian economy. The importance of attracting foreign investment, which is one of the pillars of economic growth, must be borne in mind here making Baltic International Bank a responsible partner in serving not only domestic but also international clients.Viktors Bolbats

 

As of 30 September 2019, the Bank’s total customer assets amounted to EUR 498 million (data on the Group is given in brackets), assets under management reached EUR 101 million (EUR 101 million) which is 36% more than at the end of 2018. The value of financial instruments in brokerage service was EUR 149 million (EUR 149 million).

In Q3 2019, net commission income increased by 31.4% (31.4%) year-on-year to EUR 6.46 million (EUR 6.46 million). The share of net commission income increased to 65.7% (64.6%). The share of net interest income was 15.6% (15.3%). Administrative expenses amounted to EUR 8.49 million (EUR 8.62 million) which is a decrease of 23.4% (22.4%) over the previous year.

As of 30 September 2019, the Bank's own funds totalled EUR 24.04 million (EUR 24.11 million). The Bank’s Tier I capital ratio (CET1) was 9.62% (9.68%). The Total Capital Ratio reached 13.35% (13.43%).

The Bank continues to work on new digital tools and channels – the open cooperation platform Open Banking which allows the Bank to fully comply with the requirements of the EU Payment Services Directive 2 (PSD2) is available from 14 September. The Bank is also working on a new Internet banking platform.

Baltic International Bank has set its Sustainable Development Goals under the United Nations (UN) Environment Programme Financial Initiative; the Bank will focus its activities on seven of the 17 United Nations Sustainable Development Goals: ‘Good Health and Wellbeing’, ‘No Poverty’, ‘Affordable and Clean Energy’, ‘Decent Work and Economic Growth’, ‘Industry, innovation and Infrastructure’, ‘Responsible Consumption and Production’, and ‘Climate Action’.

The Bank continues to engage in active dialogue with governmental authorities and other organisations on the place and role of private banks in the Latvian economy. Within this effort, at the media breakfast held in October, the local capital banks working group of the Finance Latvia Association (Association), represented by Viktors Bolbats, Co-Chairman of the Association's Strategic Development Committee, Chairman of the Board of Baltic International Bank, raised issues about the transformation of business models of the local capital banks as well as their place in the financial market and contribution to the Latvian economy.

In the 3rd quarter of this year, the Bank rendered support to a number of publicly and socially significant projects demonstrating its care of different social groups. With the Bank’s support, the TERESA HOUSE day care centre was opened. Promoting the development of Latvian literature, a collection of memoirs ‘My 20th Century’ by Marina Kosteņecka was published. The author calls it the work of her whole life and, in the books, shares her life story, memories of crucial events in the recent history of Latvia and unique evidence of the era, i.e. letters received from readers and supporters during Atmoda. Also, in the 3rd quarter, within the framework of the reading and literature promotion project ‘Library’, residents of Latvia were given the opportunity to apply for participation in the creation of a unique exhibition of family and genealogy books.

Key financial indicators:

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The Q3 2019 financial report of Baltic International Bank is available here.

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