OREANDA-NEWS. February 15, 2011. DnB NORD Banka continued to ensure stable and sustainable development in 2010, particularly taking into account ways of reducing the unfavourable effects of the country's macroeconomic situation, ways of increasing revenue and improving the bank's overall effectiveness, reported the press-centre of DnB NORD Banka.
 
Summary of 2010 results
DnB NORD Group's operating profits before provisions and taxes in 2010 amounted to LVL 20.4 million.  That was achieved on the basis of operating revenues of LVL 50.6 million on the year.

The total assets of the DnB NORD Group in Latvia at the end of 2010 amounted to LVL 1.8 billion.

The lending portfolio of the group, before provisions, amounted to LVL 1.6 million at the end of 2010 – 7% less than a year before.

In 2010, the bank issued new loans worth LVL 167.5 million, of which LVL 134 million went toward the operations and development of companies.

At the end of 2010, DnB NORD Group's deposit portfolio amounted to LVL 481 million, which was 24% more than at the beginning of the year.

Andris Ozolins, CEO of DnB NORD Banka:  "In 2010, we saw gradual economic stabilisation and a new beginning of growth in Latvia, and I welcome the fact that many companies in Latvia which export or work for the domestic market decided to take advantage of the financing opportunities which are offered by DnB NORD Banka.  The same was true of individuals.

I might also add that during the course of 2010, DnB NORD Group in Latvia managed to increase its market share in terms of lending and deposits."

Even though it is true that the Latvian economy gradually began to recover in 2010, DnB NORD Banka, like the banking sector as a whole, continued to set aside funds for insecure loans.

During the course of 2010, the net provisions at the group reached a level of 51.8 million, and the group's losses after provisions and taxes in 2010 attained a level of LVL 31.3 million.  To cover these losses, DnB NORD Banka increased its capital base by LVL 24.8 million in 2010. On December 31, the group in Latvia had equity capital of LVL 162.6 million.

The number of customers of DnB NORD Banka increased by 6.3% in 2010.  The number of small, medium and large companies having signed up for the bank's services increased by 16%.

The number of people using the iNORD Internet banking system of the bank increased by 12% in 2010, and the number of payment cards issued by the bank over the course of the year rose by 25%.
 
On the road toward new brand
DnB NORD Group was established in late 2005 by Norway's leading financial group, DnB NOR, and Northern Germany's largest bank, NORD/LB. The agreement on the joint venture stated that the DnB NOR would be given a chance to buy back all shares in the DnB NORD Group.

Because of the strong belief that the Baltic States and Poland, where the DnB NORD Group is represented, have greater growth opportunities than most other countries in Europe, and wishing to expand its operations in the region, DnB NOR took over all shares in the DnB NORD Group in late 2010.

In order to ensure more intensive integration among the banks in the group, DnB NOR decided that in the late autumn of this year, the branding of the banks in the DnB NORD Group and of DnB NOR itself will be changed.  Beginning at that time, the whole group will use the brand name DNB.

Andris Ozolins:  "DnB NOR is the leading bank in Norway, and it has taken advantage of the opportunities that have come along with the global financial crisis to develop in a stable way and to become the second largest bank in the entire Nordic region.  I am certain that now that 100% of shares in DnB NORD are in the hands of DnB NOR, it will be possible for the DnB NORD Banka in Latvia to find additional advantages in terms of shareholder support, knowledge and new opportunities.  The beneficiaries of this will certainly be our customers!"