OREANDA-NEWS. March 09, 2010. SIA Ernst&Young Baltic has completed audit of JSC “Aizkraukles banka” and the Group report for the financial year 2009. The key figures as of 31 December 2009 are as follows, reported the press-centre of Aizkraukles banka:

The bank profit from financial operations in 2009 before making provisions for doubtful debts: LVL 39.4 million.

Over the year, LVL 36.9 million worth provisions for doubtful loans and other assets have been made. Overall provisions made in 2007, 2008, and 2009 totalled LVL 57.3 million.

Reporting period losses: LVL 19.2 million.

Amount of deposits: LVL 869 million. During the year, deposits have grown by LVL 155 million, i.e. by 22%. This is the largest increase in the amount of deposits among the banks operating in Latvia, and as of the end of 2009 Aizkraukles Banka was the largest Latvian private bank in terms of the deposits amount.

Loan portfolio less provisions made: LVL 534.3 million. Reduced determinedly during the year, the portfolio has decreased by 15%, lowering associated risks accordingly.

The bank net assets: LVL 992.1 million.

The bank capital and reserves: LVL 74.1 million. During 2009, the bank capital and reserves have decreased by LVL 6.2 million.

Capital adequacy ratio: 15.04%

Liquidity: 57.53%.

Aizkraukles Banka Chairman of the Board Ernest Bernis is perfectly content with performance in 2009: “We maintained and consolidated our status of independent private bank, achieved financial goals set for the year 2009. Many figures even managed to surpass forecasts made at the beginning of the year. In 2009, the main focus was on attracting new customers and increasing the amount of deposits, alongside restructuring problem loans of corporate customers, which has virtually been completed.

Consequently, the bank and the group financial results have improved significantly, and the share of net revenues from commission fees in the total revenue structure has grown from 19% to 29%. Customer confidence has increased, and a considerable number of new private and individual customers have been attracted. The value of the bank’s securities portfolio has increased significantly to reach the pre-crisis level of 2008. In 2009, we discharged all liabilities under syndicated loans of EUR 155 million. We successfully performed optimization of processes in all areas of operations and applied more stringent cost control, which enabled reduction of the bank administrative expenses by 15%.

During the reporting period, the bank and the group mainly focused on efficient liquidity management and minimization of credit risk. Whereas the main task for 2010 will be to expand the bank and the group operations and increase profitability, alongside continuing development and improvement of operating risk management methods.

The amount of customer deposits continued to grow at the beginning of 2010 as well. The increase in liquidity and amount of available funds will enable the bank to resume granting commercial loans to corporate customers and to make other investments.

We observe economic recovery in our target markets, and this allows us to predict the bank income from financial operations in 2010 to exceed that in 2009, and also it will be necessary to make smaller provisions than in the last year.”

JSC “Aizkraukles banka” is 100% owned by Latvian shareholders. The bank’s majority shareholders are Oleg Fil — 47.04% shares, Ernest Bernis and Nika Berne — 47.04% shares. Aizkraukles Banka is the largest independent private bank in Latvia, combining all banking services, including asset management and advisory services, in a single customer-tailored offer. Aizkraukles Banka Group includes brokerage joint stock company “AB.LV Capital Markets”, investment management joint stock company “AB.LV Asset Management”, “AB.LV Transform Partnership” LP, “AB.LV Transform 1” Ltd., JSC “AB Konsultacijas”, “New Hanza City” Ltd., and “Elizabetes 21a” Ltd.

The complete audited report 2009, as well as report of the Council and the Board will be available at the Aizkraukles Banka homepage www.ab.lv in a few days.