OREANDA-NEWS. May 19, 2008. In the first three months of this year the development of NORVIK BANKA* has shown stable growth and increase in profitability, reported the press-centre of NORVIK BANKA.

In the first quarter of 2008, the after-tax profit of NORVIK BANKA reached the figure of LVL 2,8m. As compared with the same period of time in 2007, the profit increased by 136,3%.

In the first three months of this year, the NORVIK BANKA’s capital and reserves reached the figure of LVL 57,65m, which represents an increase of 4,5% compared to the figure at the beginning of the year.

At the end of the first quarter, the NORVIK BANKA’s assets amounted to LVL 550m, which is lesser by 11,4% than at the beginning of the year. It should be noted that in this year decrease in assets is observed throughout the whole banking sector.

In the first quarter of 2008, the Bank’s loan portfolio increased by 3,2% and amounted to LVL 327,5m, of which the volume of loans issued to private individuals was LVL 82 m, an increase of 2,1% as compared with the beginning of the year. At the same time, the volume of loans issued to enterprises was growing somewhat faster and reached the figure of LVL 245m. The first quarter of 2008 witnessed moderate growth of the mortgage lending business which increased by 4,5%, therefore reaching the figure of LVL 62,6m.

”At the time when the country is experiencing a gradual decline in the pace of development of the national economy and a high level of inflation, it is essential for each enterprise to take great care so that the stability and profitability of its activity are increased. The increase of profit of NORVIK BANKA in the first quarter testifies to successful coping by the bank with this task, having achieved a good balance between risks and return on capital,” says Andrejs Svircenkovs, the Chairman of the Management Board of NORVIK BANKA.

As at the end of March of 2008, in Latvia there were operating 15 branch offices and 70 settlement groups of NORVIK BANKA. Currently the bank employs over 800 employees.

* The report of financial results of NORVIK BANKA for the 1st quarter of 2008 excludes the results of Bank’s subsidiary companies - NORVIK Ieguldijumu parvaldes sabiedriba, NORVIK Lizings, NORVIK Apdrosinasanas brokeris and NORVIK Universal Credit Organization (Armenia).