OREANDA-NEWS. May 11, 2010. "Following the economic recession experienced in the previous year, the first quarter of 2010 marks several positive developments; however, we can only be certain of stabilisation when the fall rate of the GDP, unemployment increase speed or even its reduction and export increase will be sustained for at least two or three consecutive quarters. Currently, the recovery is moderate and mostly felt only by those working in certain business sectors, while the general attitude remains cautious. Tax policy developments, management of state income and expenses within the current budget deficit and the business support mechanisms will be the key criteria for the further development of the Latvian economy, reported the press-centre of SEB.

As regards the first quarter results of SEB group in Latvia, the reduction of income in comparison with previous years is attributed to the continuing downslide of interest rates, which are an important source of income to the bank. It should be noted that the volume of deposits of SEB group in Latvia has increased in the first quarter. The SEB deposit portfolio has increased by 5 % in the first quarter, assets managed by SEB Wealth Management have increased by 10 %, the premiums of insurance with savings have increased by 4 %. The demand for SEB investment services in the first quarter was influenced both by the comprehensive range of services and the outstanding management results.

Continuing the intensive improvement and enhancements of various systems of SEB that took place during the first quarter, SEB banka will offer its customers a new approach to the improvement of relations and more transparent management of bank service fees in the second quarter. As regards loans, we continue to finance business projects where a slight improvement is observed, and continue to provide mortgages to clients who participate with their own funding, thus demonstrating their financial stability. We will continue working on loan restructuring to support our existing borrowers. If the amount of liabilities with a reduced level of income does not allow the liabilities to be fully honoured, the support of the bank is and will be important. It will also dictate the need for provisions, though on a smaller scale. On average 2000 SEB clients received reviewed liability conditions to reduce the financial burden in the first quarter."

Expressed in LVL according to the exchange rate of the Bank of Latvia as of 31.03.2010, the performance figures of SEB group in Latvia in the first quarter of 2010 are as follows:
- Income from principal activity: LVL 21.4 million
- Expenses: LVL 10.1 million
- Losses from principal activity: LVL 30.1 million
- Losses from principal activity as per requirements of the Latvian financial system watchdog: LVL 23.9 million.