OREANDA-NEWS. October 06, 2009. Restructuring of the bank and economy of resources has allowed Parex banka to reduce its administrative costs by LVL 16 million or 31% during the first eight months of this year in comparison to the same period in 2008. The wages of bank management, including the Chairman of the Board Nils Melngailis, have been cut by 30%, reported the press-centre of Parex Banka.

By the end of 2009, the administrative costs will be reduced by 40% in comparison to 2008. The total wage fund for the bank has been trimmed by 30%, and that applies to the management, as well.

Various optimisation processes have allowed the bank to reduce other administrative costs, as well, and to a very substantial degree – a 93% drop in business travel costs, an 85% reduction in the cost of advertising, marketing and representation, 68% less spending on transport, 61% less spending on office costs, and a 28% reduction in communications costs.

Parex banka began to work on optimisation and increased efficiency in late 2008, when the wages of the bank’s Board and Council were cut substantially. The wages of the new Board are equal to just 28% of the wages paid to members of the previous Board. In the case of the Council, they are just 17% of the former compensation.

The strategic goal for Parex banka right now is the repayment of the government investment as soon as possible, the return to the private sector, and the improvement of financial indicators in such areas as deposit volumes. In September of this year, for instance, deposits from residents have increased by some LVL 18 million, which is a key success for the bank’s team during a period of economic decline.