OREANDA-NEWS. The results of Q1 allow expecting achievement of the objectives set for 2013. All the bank’s major performance indicators remain high, including capital adequacy and liquidity ratios.

One of the most significant events in the reporting period was the shareholders’ decision on distribution of ABLV Bank, AS profit for 2012, paying LVL 16.4 million (EUR 23.3 million) in the form of dividends. The amount paid per share constituted LVL 122.5 (EUR 174.3).At the same time was performed another issue of ABLV Bank, AS shares in March and April as a result were issued 6,570 ordinary registered voting shares and bank’s equity increased by LVL 11.5 million (EUR 16.4 million)..After completing the issue, the bank’s share capital is comprised of 127 170 ordinary voting shares and 13 400 employee shares without voting rights attached. The sale price of one newly issued share equalled LVL 1 755 (EUR 2499), and 38 current shareholders of the bank participated in the issue. Compared to the share issue performed in 2010, the price of one share of the bank increased 2.7 times. This clearly evidences financial return ensured by the shareholders’ contribution to the bank’s capital. As a result of the share issue, we now have required funds for further development of the bank.

Continuing gradual replacement of long-term deposits with bonds, in the reporting period there were ten-year subordinated bonds issued amounting to USD 20 million for the sake of raising capital ,as well as were performed two issues of straight two-year bonds, amounting to USD 50 million and EUR 20 million. These bonds are also included in the NASDAQ OMX Riga stock exchange list of debt securities. Since 2011, three bond issues performed under ABLV Bank, AS, First Offer Programme and nine bond issues under ABLV Bank, AS, Second Offer Programme have been included in stock exchange listings. In terms of the face value of the bonds, the total amount of the said issues exceeds LVL 180 million (EUR 256 million).

Financial results

The bank’s financial performance in the first quarter of 2013 evidences stable growth:

The bank’s profit in Q1 2013 amounted to LVL 8.3 million (EUR 11.8 million). Whereas in Q1 2012 it was equal to LVL 5.3 million (EUR 7.5 million).

The bank’s operating income before allowances for credit losses totalled LVL 17.6 million (EUR 25.1 million). Compared to Q1 2012, operating income has increased by 15.8%.

The bank’s amount of deposits and assets continued to grow. Since the beginning of 2013, the amount of deposits has increased by LVL 108.4 million (EUR 154.2 million), i.e., 5.8% to reach LVL 1.98 billion (EUR 2.81 billion).

The amount of issued debt securities reached LVL 173.2 million (EUR 246.4 million).

As at 31 March 2013, the amount of the bank’s assets equalled LVL 2.33 billion (EUR 3.31 billion). Since the beginning of the year, the amount of assets has grown by 8.7%, the total assets increasing by LVL 185.8 million (EUR 264.4 million).

The bank’s loan portfolio equalled LVL 524.9 million (EUR 746.9 million), as at the end of March.

The bank’s capital and reserves amounted to LVL 108.2 million (EUR 153.9 million).

As at 31 March 2013, the bank’s capital adequacy ratio was 13.98%, whereas liquidity equalled 61.00%.

ROE reached 31.03%, and ROA – 1.46%, as at 31 March 2013.

The bank continued investing in securities. The total amount of the securities portfolio was equal to LVL 975.1 million (EUR 1.39 billion), as at 31 March 2013. The bank’s securities portfolio is mostly composed of fixed-income debt securities, and 71.4% of the portfolio is constituted by securities having credit rating AA- and higher. In terms of the major countries, securities are allocated as follows: USA – 22.9%, Russia – 14.7%, Canada – 14.4%, Germany – 11.4%, Sweden – 7.7%, Latvia – 5.6%, Netherlands – 4.0%, Norway – 2.1%, Great Britain – 1.5%. Whereas 7.4% is constituted by securities issued by international institutions – the European Commission, ERAB, etc. In the reporting period, annual yield of the securities portfolio amounted to 1.84%.

ABLV Bank, AS is the largest independent private bank in Latvia. The bank’s majority shareholders — Olegs Fils, Ernests Bernis and Nika Berne – directly and indirectly hold 86% of the bank's share capital. ABLV Group includes ABLV Bank, AS; ABLV Bank Luxembourg, S.A.; ABLV Capital Markets, IBAS; ABLV Asset Management, IPAS; Pillar Holding Company, KS; ABLV Consulting Services, AS; ABLV Corporate Services, SIA; New Hanza City, SIA, and other companies. ABLV Group has representative offices in Moscow, St. Petersburg, Yekaterinburg, Kiev, Odessa, Minsk, Almaty, Dushanbe, Baku, and Tashkent.