Baltikums Banka Continued Growth

Despite the general turmoil, Baltikums Banka continued to implement its plans and improved its position in the chosen areas of activities in 2009. The conservative risk management, consistent strategic goals, and establishment of long-term relations with customers – these are the pillars of good financial results of Baltikums Banka and Bank’s group.

The Baltikums Bank’s group last year profit amounted to LVL 1 mln. At the close of the year, its assets volume was LVL 113 million, i.e. by 0.8% more than in late 2008.

Baltikums Banka last year profit amounted to LVL 638 thousand. At the close of the year, its assets volume was LVL 111.7 million, i.e. by 2.2% more than in late 2008. In 2009, the Bank attracted LVL 82.5 million in deposits (a rise of 4.2% against 2008).

‘Such performance was made possible in 2009 thanks to a thoroughly developed banking operations strategy and professional team of the Bank. Despite an immaterial decrease the assets volume, which was caused by a drop in turnover of the Bank’s customers, Baltikums Banka has turned out to be one of the few Latvian banks that maintain profit; number of customers increases, efficiency of operations improves, investments are made in information technologies and in expansion of the Bank’s international partner network. The Bank believes in prospects in acquiring new trends and improving existing ones as the competition in many banking sectors is less tough due to the crisis,’ said Aldis Reims, Chairman of the Board of Baltikums Banka.

Baltikums Banka still maintains very high liquidity and balance quality indexes and its capital adequacy materially exceeds the level set by the controlling institution.

Currently the Bank focuses on the following key trends of activities: Private Banking,Corporate Banking, and Wealth Management. In 2009, Baltikums Banka introduced a Private Banking institution that builds up on the success of earlier achievements of Private Banking services that had been declared a priority. Now a new team of sales and customer service professionals operates at Baltikums Banka and the estimated sales of the Bank’s investment products and services have already showed results.

For convenience of the Bank customers information landline has been established to provide customers with required information in three languages. The correspondent banks network has also been expanded to improve communication between customers and the Bank.

In the past year, Baltikums Banka successfully redeemed its second issue bonds and repurchased a part of the third emission bonds on the secondary market. The Bank’s interest to repurchase its own bonds was caused by the following factors. First, Baltikums Banka possesses a significant amount of free financial resources. Secondly, Baltikums Banka repurchased the bonds before maturity and thus profited by minimising its interest expenses. Besides, the Bank believes that by maintaining liquidity of its bonds on the market it would facilitate business relations with investors both now and in future. The Bank believes that it is particularly important now when markets are prone to certain volatility. The Bank might execute a new bonds emission in future depending on the situation on financial markets and prospective customer demand for project financing.

The investments management company Baltikums Asset Management owned by Baltikums Banka established an open investment fund Baltikums Short-Term Investment Strategy Bonds Fund. The fund’s resources are mostly invested in debt securities of growing economies. The fund aims at short- and medium-term investments in fixed income financial instruments; therefore, a larger share of investments would be made in short-term and medium-term debt securities.

Baltikums Banka received a permit from the Central Bank of Cyprus for offering its services in Cyprus according to the free competition principles. Now customers of the branch that successfully commenced its operation in the beginning of the year will enjoy the full range of the Bank’s products, services, and solutions in daily service, as well as Corporate Banking and Private Banking.

‘Baltikums Banka has been known for its consequence in establishing and maintaining successful and mutually beneficial relations with customers. Besides, the Bank’s aim is not only to render professional and high-quality services but also to jointly facilitate business, capital, assets, and risk management environment that would give customers both financial benefits and enhanced stability and security regarding their own future and future of their relatives and partners.

Our values remain unchanged: independence and objective approach, security, responsibility, and comprehensive protection of our customers’ interest. We are grateful to all our customers for cooperation and trust expressed to us at these complicated times and will look forward to conducting successful business together’ said Chairman of the Council Aleksandrs Peškovs.

Baltikums Banka is a member of the Latvian banking group Baltikums Bankas Grupa and by 100% belongs to Latvian companies – family holdings of the group’s shareholders. The objective of Baltikums Banka is to join leading independent private banks in the European Union by providing modern and sought after banking products, services and solutions aimed at facilitating business and at keeping and growing wealth of our customers.