OREANDA-NEWS. March 31, 2009. In 2008, there was overall growth slowdown as compared to prior years. Banks’ assets have grown 8.3% as compared to 34.6% in 2007. Loans have increased 0.4% reaching 1.74 billion lats. The Banks’ deposits totalled 1.9 billion lats, of which 1.2 billion lats were customer deposits, reported the press-centre of Parex.

The Bank has 20 thousand corporate and 271 thousand private deposit customers. As at 28 February 2009, Parex banka’s market share in terms of deposits from private individuals and legal entities constituted 12.7%. The Bank’s market share in terms of assets comprised 14.7%, in terms of loans - 11.3%.

The Banks’ net earnings before provisions, amortisation and taxes totalled 23 million lats in 2008.

Roberts Stugis, Member of the Management Board, CFO, comments: “The financial results of the year were substantially impacted by provisions established to reflect the deterioration in the asset quality. The loan portfolio was deeply affected by rapidly worsening Latvian economic situation and stagnation in the Latvian real estate sector.”

As a result of prudent assessment of portfolio in the light of current trends, the Management established loan provisions in the amount of 107 million lats. Furthermore, the adverse situation in the financial markets required additional provisions for investments in securities and balances due from credit institutions, resulting in net charge of 29 million lats. Mainly as a result of above, the net loss for the Bank for 2008 comprised 124 million lats.

The Bank’s shareholders’ equity as at 31 December 2008 was positive and amounted to LVL 77.5 million.

Group’s consolidated net loss for the year was LVL 131,0 million and the shareholders equity- LVL 79.1 million.

Subsequent to year end, the Government of Latvia has resolved to increase the Bank’s capital by LVL 227 million ensuring the Bank’s capital adequacy ratio of 12%. The capital injection is subject to the approval of State aid by EU.