OREANDA-NEWS. On 31 March 2009 was announced, that Baltikums Bank continued growth through tough 2008:

ROE - 19.9%;

ROA - 3.0%;

Efficiency ratio – 45.0%;

The Bank’s assets reached the amount of EUR 156 million (growth of 11.9%);

Deposits with the Bank amounted to EUR 113 million (growth of 9.6%).

In 2008, despite the complex economic situation both in Latvia and in the world, performance indicators of AS “Akciju komercbanka “Baltikums”” continued to grow successfully, and the Bank consolidated its position in the chosen niches. In 2009, Baltikums Bank plans to continue its development within its chosen strategy, offering dynamic, modern and, what is most important, high-quality exclusive service to its customers, with special focus on caution and on the basis of moderation and balance in its development.

‘Such results became possible in the fiscal year of 2008, when the world and Latvia were shaken by an unprecedented crisis, due to the Bank’s well-thought-out and precise strategy and its professional team. Baltikums Bank is one of the few Latvian banks that operate consistently in the chosen niche that was chosen even when the Bank was founded in 2001. Conservative approach to risk management ensured good profit indicators for the Bank and gave a feeling of safety in these hard times. In 2008, the Bank started more than one project for improvement of effectiveness of its operations. It is worth mentioning in particular that we managed not only to retain our growth rates, but to significantly expand our business too,’ said Aldis Reims, Chairman of the Board of AS “Akciju komercbanka “Baltikums””.

As well as in previous year, most of the loans advanced were assigned for projects related to lending to ship-owners and international trade companies. The Bank has never aimed at attraction of large amounts of deposits from individuals and then advancing them as mortgage and consumer loans. Such approach of the Bank is proved by the fact that Baltikums Bank ranks steadily as the last among all banks that are active in Latvia in the areas of both mortgage and consumer lending. In its turn, very high liquidity has always been one of the Bank’s priorities, which was justified especially in 2008.

Baltikums Bank has never held structured products or other real estate market instruments in its balance. The conservative risk strategy of many years proved correct when the financial crisis broke out.

In 2008, Baltikums Bank succeeded in acquiring new customers and increasing its deposits. ‘This shows that we as private bankers. Baltikums Holding, with Baltikums Bank as its part, was founded in 1994 and was able to show over almost fifteen years of its history that its business model, geared towards continuity and service for our customers was functioning effectively. Given our experience and liability, we consider things with a sense of proportion and common sense and tend to question things twice before decision-making,’ said Chairman of the Council Aleksandrs Peskovs.

Baltikums Bank increased the number of employees from 85 to 123, rather than cut its personnel, despite the current trends in banking industry. The growth (45%) was due to higher volume of our operations and expansion of our business.   

Our well thought-out and planned work both in attracting new customers and servicing current ones resulted in higher key performance indicators.

The Bank’s last year profit amounted to LVL 3.36 million against LVL 2 million profit a year before. At the close of the year, its assets volume was LVL 109.319 million, i.e. by 11.9% more than in late 2007. In 2008, the Bank advanced LVL 34.21 million in loans (a rise of 39.2% against 2007) and attracted LVL 79.2 million in deposits (a rise of 9.6% against 2007). Increasing its equity (up to LVL 15.178 million) and growing its customer deposits allowed the Bank to strengthen its position in its chosen market niche.

Similarly to previous years, Baltikums Bank worked along two clearly defined directions: trade and shipping finance, as well as financial markets investment products and wealth management. In 2008, the Bank focused in particular on its current and potential customers, offering them private banking, which is in growing demand nowadays, and working on extension of the range of such services.

‘We see ourselves as a high-quality service provider for our customers. Besides the special proximity to its clients, our bank also stands out thanks to the continuity in its business policy and intends to continue on this track. We appreciate the fact that many of the Bank’s employees have already been with us for almost 8 years,’ says Aldis Reims.