Deposits Placed with BIB Increased by 36% over 9 Months, 2011
OREANDA-NEWS. November 30, 2011. According to 3Q 2011 financial results, Bank has shown a significant growth across the majority of its items (positions). Since the beginning of the year, Bank’s total assets have grown by 31 percent to reach LVL 220.9 million as at 30 September 2011 (according to the unaudited financial information). The strong asset growth was primarily driven by the increase in the deposit base. By the end of 3Q, Customer deposits totalled LVL 181.3 million, a 36 percent increase over the figure recorded at 2010-end, reported the press-centre of BIB.
“In consideration of volatility in global financial markets, clients stay focused on wealth preservation and reasonable capital growth. Therefore, traditional cash deposits still remain a popular choice. Throughout the year, however, we have seen the growing customer interest in the stock market. Consequently, brokerage is becoming an ever more sought out service. Our Gold Investment Program is enjoying great popularity as well”, says the Board Chairperson Ilona Gulchak.
Bank’s loan portfolio increased by 24 percent and reached LVL 74.4 million. As yet, the portfolio makes up one-third of the total assets to comply with Bank’s conservative strategy.
Bank’s unaudited profit over the first 9 months of 2011 is LVL 1.3 million. Bank’s operational effectiveness has improved considerably. Operating income increased almost by 39 percent, largely due to the rise in the net commission income (up 73 percent). Bank continues to keep liquidity levels high: 88.5-percent liquidity ratio as at 30 September 2011. A percentage share of securities within the structure of liquid assets totals 6 percent, which is indicative of a low market liquidity risk.
Bank’s capital adequacy ratio stands at 16.6 percent. A 1.7 percentage point rise in the ratio (as compared to 31/12/2010) is directly attributed to the increase of Bank’s paid-in share capital by LVL 3.9 million.
During 3Q 2011, Bank placed special focus on areas such as asset structuring & protection, tax planning, and legal advice. As Bank intends to develop these services, it established a subsidiary BIB Consulting specifically for this purpose.
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