OREANDA-NEWS. April 07, 2008. In 2007 NORVIK Group and its major constituent company, NORVIK BANKA, achieved a significant growth. NORVIK Group managed to double its assets and rapidly increased its credit portfolio and the amount of attracted deposits. The successful operations resulted in a considerable increase of profit for NORVIK BANKA and the whole NORVIK Group, which is witnessed by the Group’s financial results for the year 2007, reported the press-centre of NORVIK Group.

NORVIK BANKA is the biggest company making part of NORVIK Group. The Group also includes NORVIK Ieguldijumu parvaldes sabiedriba, NORVIK Lizings, NORVIK Apdrosinasanas brokeris, as well as NORVIK Universal Credit Organization (Armenia).

NORVIK BANKA Board Chairman Andrejs Svircenkovs: ”2007 was one of the most successful years in the history of NORVIK BANKA. It was marked by rapid growth of all key indicators of NORVIK BANKA’s operations – assets, amount of issued loans and attracted deposits, as well as profit. Overall, the bank developed significantly faster than Latvia’s banking sector in general.”

In 2007, NORVIK Group witnessed a sharp growth of its assets, which increased by 103%, exceeding LVL 618 M at the end of the year.

The after-tax profit of NORVIK Group at the end of 2007 reached LVL 6,21 M, up 92% on the same period one year before. Meanwhile, the profit of NORVIK BANKA reached LVL 5,4 M, a 66.4% increase on the year 2006.

The capital and reserves of NORVIK Group at the end of 2007 amounted to LVL 55,51 M, up 75,2% on the year before. The capital and reserves of NORVIK BANKA at the end of 2007 reached LVL 54,8 M, up 72,5% on the year before. By this indicator, NORVIK BANKA ranks 8th among Latvian banks (10th in 2006).

Last year NORVIK BANKA managed to achieve a significant growth of its credit portfolio. At the end of 2007 the amount of issued loans totalled LVL 317 M, a 73,2% increase on the year 2006. The bank ranks number 8 among Latvian banks also in terms of the amount of loans issued (in 2006 it ranked number 11).

Meanwhile, the amount of attracted deposits increased by 125,9%, to LVL 436 M. By this indicator, NORVIK BANKA is ranked number 8 among Latvian banks (in 2006 it was ranked number 12).

NORVIK Group’s total income from main operations accounted for LVL 25,47 M, having increased by 44,9% on the previous year. The income of NORVIK BANKA amounted to LVL 23,8 M, a 35,5% increase compared to late 2006.

The number of clients in NORVIK BANKA in 2007 increased by 10% and exceeded 96 thousand.

At the end of 2007 NORVIK BANKA operated 15 branches and 71 sub-branches across Latvia. At present, the bank employs a staff of more than 800, which is 20% more than in 2006.

Major events in 2007:
In January NORVIK BANKA received an international loan of EUR 50 M from Kaupthing Bank HF (Iceland).

In April 2007 NORVIK BANKA entered the Baltic Stock Exchange uniting the stock exchanges of Riga, Tallinn and Vilnius, which is an important step forward in the bank’s financial development and expanding the range of services available to its customers.

Last year the bank attracted two syndicated loans for a total amount of EUR 50,5 M:

In June an agreement was signed with Standard Bank Plc (UK) and Commerzbank Aktiengesellschaft on receiving a syndicated loan of EUR 28.5 M. The loan term is one year with possible extension.

In December the bank signed an agreement with Raiffeisen ZentralbankOsterreich AG and Kaupthing Bank Luxembourg (Luxembourg) on receiving a syndicated loan of EUR 22 M. The loan term is one year.

The number of participants in the 2nd level pension investment plan of NORVIK ieguldijumu parvaldes sabiedriba, NORVIK Group, reached 44,7 thousand, a 149% growth on the year 2006.