OREANDA-NEWS. November 06, 2009. Association of Latvian Commercial Banks compiled and published financial results of Latvian banks for nine months of 2009. According to the Association’s data, 9 out of 27 banks posted earnings resulting three calendar quarters. Aggregate profit of these banks accounted for EUR 24 million. Cumulative losses of other Latvian banks amounted to EUR 665 million, mostly due to credit write-offs and impairment allowances, reported the press-centre of Rietumu Bank.

As we informed earlier, Rietumu earned the highest net profit in the industry (EUR 13.1 million), which accounted for 54% of cumulative earnings at profit-making Latvian banks this year.

As of 30.09.2009, Rietumu Bank’s assets volume accounted for EUR 1.4 billion, equity and reserves – EUR 192 million. Capital adequacy ratio reached 16%; liquidity ratio – 47%. Both indicators exceed requirements of the Latvian Financial and Capital Market Commission substantially (8% and 30%, respectively.

Local and foreign-owned banks, which implemented aggressive credit policy in previous years, bear most of these losses in the first instance. Apart from Parex, these are the largest retail banks with Scandinavian and German capital.

Considering current decrease in household creditworthiness and stagnation in the real estate market, the quality of loan portfolios continues to worsen, although at a slower pace than in the first half-year. According to the published data, total impairment allowances of the Latvian banks reached EUR 1.6 billion as of September-end.

In preceding years, Rietumu Bank pursued conservative credit policy, diversifying business operations and customer base by economy sectors and geographical regions. Therefore current instability in the Latvian economy has no crucial influence on the Bank’s financial standing.

Rietumu is sincerely grateful to all customers for collaboration and loyalty. We wish you the best of luck and success in business.