OREANDA-NEWS. On 01 April 2008 was announced, that in 2007, Komercbanka Baltikums continued to realise its pre-set objectives in trade and shipping financing, as well as in private servicing of well-off customers. Its focus on major lines of business enabled the bank to achieve excellent financial results, remaining one of the youngest and few banks with 100% Latvian capital.

Last year, Komercbanka Baltikums showed very good financial performance. Its assets increased by 63% and reached 97.731 million LVL, and its attracted deposits grew by 72.291 million LVL or 83%. Komercbanka Baltikums profit amounted to 1.964 million LVL last year.

Aldis Reims, Chairman of the Board of Komercbanka Baltikums says: "Currently, there is some presentiment of instability in the Latvian financial sector related to both growing inflation, and the situation in the real estate market, and unclear general macroeconomiс situation and its development in this country. In this context, the sustainable strategy chosen by Komercbanka Baltikums and based on financing internationally focused lines of business makes it possible for the bank to feel safe, despite potential risks of the local market. We never aimed at attracting massive deposits from individuals and advancing them subsequently in mortgage or consumer loans. This is what makes us different from most of other Latvian banks."

In terms of specific figures, as at 31 January 2008 Komercbanka Baltikums ranked 19th among 23 Latvian commercial banks in residential lending with 230 thous. LVL (making only 0.25% of the bank’s assets amount), 20th in mortgage loans with 648 thous. LVL (0.71% of its assets amount) and 20th in private lending with 1,271 million LVL or 1.4% of its assets amount.

Such figures show clearly the bank’s conservative policy with regard to the above overheating sectors of Latvian economy. Such caution did not prevent the bank from achieving excellent results in 2007 or starting this year even more successfully – the bank’s profit reached 512 thous. LVL over the first two months of 2008.

"Last year caused certain changes in the Latvian financial market. More than one player is likely to revise its strategy. Therefore, the current position of Komercbanka Baltikums, as I have already pointed out, is different and more favourable. The bank’s plan is to follow and improve its philosophy consistently on the basis of three main lines of its business: shipping and trade financing, as well as private servicing of well-off customers. The bank feels safer in its chosen market niches than ever before, and plans to increase its last-year profit by at least 50% in 2008", expounded A. Reims.