OREANDA-NEWS. July 21, 2009. According to Parex banka’s unaudited financial results as at 30 June 2009, the loan portfolio of the Bank was 1.63 billion lats, deposits – 1.64 billion lats, total assets – 2.70 billion lats, but the amount of capital and reserves in the end of June 2009 reached 183.6 million lats, reported the press-centre of Parex banka.

During this period of time the Bank has successfully completed the restructurization of syndicated loans, stabilized its customer base, as well as concluded the agreement on the entering of the European Bank for Reconstruction and Development into the shareholder structure of the Bank. Furthermore, the bank has also substantially decreased the administrative costs, cutting the expenses by the total of 12 million lats.

The cost reduction is expected to reach 30 million lats by the end of the year. Moreover, moving the Bank's Headquarter in Riga from current 11 buildings to one office building on Republika square will save Parex Group additional 2.7 million lats.. In 1H2009 Parex banka increased its capital base to reach the liquidity and capital adequacy levels set by the regulator. Similarly, over the period of last six months Parex banka has attracted more than seven thousand new customers, especially in the sectors of retail and small and medium size enterprises.

Having made a detailed evaluation of assets and establishing substantial provisions for the asset value decrease, Parex banka concluded the first half-year 2009 with the total net losses of 44.5 million lats, including the established provisions in the amount of 46.6 million lats. Besides, Parex banka’s interest payment to the State Treasury for this period of time comprises 20.5 million lats.

Parex banka continues to closely monitor changes in the quality of assets to further minimize potential losses from the asset value decrease. Besides, in order to find the most effective solution for the issue of non-performing loans, the Bank has established a new structural unit that is working with clients and looking for mutually most advantageous solutions in the current economic situation.