OREANDA-NEWS. September 28, 2009. The international auditor company KPMG Baltic has performed audit of concern AS “Akciju komercbanka “Baltikums”” (Baltikums Banka), reported the press-centre of Baltikums Banka.

In the first half of 2009 sustainable development of Baltikums Banka concern continued, which resulted in growth of the key performance indicators and in consolidation of its position in the chosen niches.

Conservative approach to risk management, persistency in the strategic objectives, and establishment of long-term relations with customers – these are the three pillars of success of the dynamically growing and modern Baltikums Banka.

The bank has been successfully developing its regional network for nine years. At present, the bank successfully functions in Riga, Limassol, Kiev, and Almaty, as well as has representation in Russia and Azerbaijan via its parent company Baltikums Bankas Grupa. Baltikums Banka and its foreign branches employ 150 international professionals.

The most important event of the first half of the year was opening and successful operations of the bank’s branch in Cyprus. Baltikums Banka that is a counterpart of the concern has successfully redeemed the second issue bonds and keeps gradually redeeming public bonds earlier issued by the bank from the financial market on its own initiative.

Financial results
The profit of Baltikums Banka concern for the first half of the year amounted to LVL 1.67 million. As of 30 June this year, the concern’s assets made up LVL 103.8 million. At the end of June, Baltikums Banka concern issued LVL 27.2 million in loans and attracted deposits worth LVL 74.76 million.

Such results became possible in 2009, when the world and Latvia have been shaken by an unprecedented crisis and instability, thanks to the Bank’s well-thought-out and precise strategy and its professional team. Despite a decrease in the assets resulting from a drop in the bank customers’ turnover Baltikums Banka is one of the Latvian 10 banks that continue operating with profit, the number of opened customer accounts keeps growing, efficiency of operations increases, funds are invested in information technologies and expansion of the bank’s international branch. The concern sees prospects in conquering new markets as competition drops during the crisis.

Baltikums Banka still maintains very high liquidity and balance structure indicators and the high capital adequacy more than twice exceeds that required by supervisory authorities. The capital adequacy index amounted to 16.44% (requirements of the Financial and Capital Market Commission – at least 8%).

Major achievements
Currently, the Baltikums Banka focuses on three basic trends of its operations: Private Banking, Corporate Banking and Wealth Management.

During the first 6 months of 2009, Baltikums Banka has introduced an entity of private bankers who facilitate further development of Private Banking services successfully launched and set as a priority earlier. Now Baltikums Banka employs a new team of sales and customer service professionals and the estimated sale of the bank’s investment products and services has brought its first fruit.

This year, Baltikums Banka has successfully redeemed the second issue bonds and keeps gradually redeeming public bonds earlier issued by the bank from the financial market on its own initiative.

The bank’s interest in redemption of its own bonds results from the following factors. First, Baltikums Banka has a considerable amount of free funds. Second, these bonds are traded on the market with a significant discount to the nominal; therefore, Baltikums Banka redeems the bonds prematurely and thus minimises its interest expenses. The bank also believes that by ensuring market liquidity of its bonds it contributes to maintaining good business relations with investors both now and in the future. The bank’s opinion is that it is particularly important these days when there is certain instability and nervousness on the markets.

Baltikums Banka has obtained a permit of the Cyprus Central Bank for offering its services in Cyprus according to the principles of free competition. Now customers of the Cyprus branch that successfully launched its operations in the beginning of the year will be able to enjoy a full range of products, services, and solutions in regular banking service, in Corporate Banking, Private Banking and Investment Banking, in payment card programmes, as well as in comprehensive operations in financial markets with no restrictions.

The concern constantly improves its business models introducing latest technologies and methodology. However, our philosophy and business approach remain unchanged. Baltikums Banka is an independent private bank and a family business. The concern has Latvian origin and its objective is to join leading independent private banks in the European Union by providing modern and sought after banking products, services and solutions aimed at facilitating business and at keeping and growing wealth of our customers.

Baltikums Banka is famous for its consequent approach to establishing and maintaining mutually beneficial relations with its customers. Paying close attention to research and new developments, we create products, services, and solutions that are sought after, first of all, because they are created in our customers’ interests and represent our response to the customers’ needs and desires. Baltikums Banka was established as a commercial bank and its entrepreneur’s spirit is close and familiar to customers: private entrepreneurs, high net worth individuals, and professional investors.

Besides, the bank’s objective is not only provide its customers with professional and quality service but also to join forces in order to create environment for business, capital, assets, and risks management, to give our customers, in addition to financial benefits, more stability and confidence regarding their, their families’, and their partners’ future. Here we see our responsibility as private bankers.

Our values remain unchanged as before: independence and objective approach, security, responsibility, and comprehensive protection of our customer’s interests. We are grateful to all our customers for cooperation and trust in these complicated times and look forward to continuing our successful cooperation in the future.