OREANDA-NEWS. February 15, 2010. DnB NORD Banka continued a stable and sustainable development in 2009, focusing in particular on the risks that have been created by Latvia's economic situation insofar as the bank's operations are concerned, enhancing operational income, promoting the bank's overall effectiveness, and working with its existing lending portfolio, reported the press-centre of DnB NORD Banka.
 
A summary of the bank's 2009 operating results
The bank's operating profits before provisions and taxes in 2009 reached a level of LVL 29.8 million, or 22% more than in 2008.

Income from core operations amounted to LVL 59.3 million, which was 13% more than in the previous year.  Operating expenditures in 2009, by contrast, were 12% lower than in 2008.

At the end of 2009, the bank's deposit portfolio amounted to LVL 455 million, which was 3.4% more than at the beginning of the year. 

The total assets of the DnB NORD Group in Latvia at the end of 2009 amounted to LVL 1.9 billion, as compared to LVL 1.8 billion at the beginning of the year.

The bank's lending portfolio at the end of 2009 amounted to LVL 1.5 billion, or 11% less than in the previous year.  New loans worth LVL 118 million were issued in 2009.  Of these, LVL 78.8 million in loans went to companies to continue and develop their operations.

Andris Ozolins, CEO of DnB NORD Banka:  "Latvia's residents and companies will remember 2009 as a year of important tests and challenges.  The foundation of any company's stable operations during the past year has been the ability to react proactively to the economic situation and to change according to its development.  Companies have had to increase efficiency, cut costs, but also to maintain their targeted approach toward their strategic goals.

I am pleased that due to the shareholder structure, DnB NORD Banka could both sustain its stable and long-term development over the course of 2009 and continue lending. The bank continued to lend money to households with persistent income levels and minimal debt obligations.  Similarly, we issued loans to sound and promising Latvian companies so as to promote their development, as well as the Latvian economy as a whole."
 
Work with the existing lending portfolio
During 2009, DnB NORD Banka devoted much attention to its existing lending portfolio, offering complex solutions to individuals and companies which were facing justified problems with their solvency.  This helped to maintain the financial stability of the bank's clients in the long term.

The global and national economic situation in 2009 seriously harmed the solvency of individuals and companies alike, and so DnB NORD Banka and other commercial banks had to make provisions for doubtful loans.  During the first half of 2009, the net provisions amounted to LVL 78.1 million for the bank.  The sum increased by LVL 26.5 million in the third quarter, and in the 4th quarter, as the pace of economic decline diminished, the provisions made, amounted to LVL 19.3 million for a total of LVL 123.9 million for the entire year.

During Q4 2009, the losses of DnB NORD Banka amounted to LVL 18.6 million after provisions and taxes. The total loss after provisions and taxes in 2009 amounted to  LVL 87.1 million.

During the course of the year, the bank did much work to strengthen its capital base – by nearly LVL 50 million in the first half of the year and by another LVL 28 million during the second half of the year.  On December 31, 2009, the equity of DnB NORD group in Latvia amounted to LVL 175.3 million. 

During the course of 2009, the number of customers of DnB NORD Banka increased by 5.9%, including a 13% increase in the number of small, medium and large companies, which joined the bank's customer base.
 
DnB NORD Banka:  a socially responsible company
During the course of 2009, DnB NORD Banka continued to pursue several projects that are of importance to the Latvian people.  The DnB NORD Latvian Barometer is the only study in Latvia to research the mood, opinions and attitudes toward various socio-economic issues of the people of Latvia regularly and in the long term.

The "Latvia Can!" project was initiated by the bank in collaboration with the business supplement of the newspaper Diena and with Latvian Television. The project is aimed at showing that even during an economically difficult period; there are people and companies doing well in science, technologies, export, etc.

DnB NORD Banka Internet portal www.nekrize.lv has attracted a lot of attention for the last six months and more.  People can use the portal to find answers to their questions, share their experiences, and receive views from recognised economic, sociologic, financial and other specialists about issues related to better overcoming the economic crisis.