OREANDA-NEWS. September 10, 2013. In H1 2013 increased customer activity was observed, and therefore, compared to H1 2012, operating income has increased by 24.4%.

The number of active corporate and private banking customers has grown as well – by 9.9%, compared to the beginning of the period. Whereas allowances for credit losses were the lowest during the last 5 years. Therefore we managed to increase efficiency and actively make investments in future development.

One of the most significant events during the reporting period was another issue of ABLV Bank, AS, shares performed, and the bank's equity was increased by LVL 11.5 million (EUR 16.4 million) consequently. The sale price of one newly issued share equalled LVL 1 755 (EUR 2 499), 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. The funds obtained as a result of the share issue will be invested in the bank’s further development.

Continuing gradual replacement of long-term deposits with bonds, there were several new bond issues performed during the reporting period. In total, this year we have already performed three issues of subordinated 10-year bonds for the sake of raising the capital, their amount being USD 40 million and EUR 20 million, as well as four issues of straight 2-year bonds, amounting to USD 100 million and EUR 40 million. These bonds have been also included in the NASDAQ OMX Riga stock exchange list of debt securities. After the issues, the investors own ABLV Bank, AS, bonds worth LVL 217.5 million (EUR 309.5 million). Since the end of 2011, we have already performed 16 public bond issues in total.

We planned to create the total of 90 new jobs this year. In H1 2013 the ABLV Group staff was increased by 56 officers, and 43 of those started their work at the bank’s units. As at 30 June 2013, there were 664 officers working in ABLV Group, and 556 of those – in the bank. The office building that the bank rented before – at 4a Mednieku Street – became insufficient. Therefore, a decision on moving part of the bank’s structural units to new business centre Jupiter Centre, at 7 Skanstes Street, was taken. Now moving is completed, the bank has two administrative buildings in Riga – at 23 Elizabetes Street and 7 Skanstes Street, and the room for development in the following years is completely ensured.

Intensive preparation takes place to ensure that ABLV Bank, AS, subsidiary bank in Luxembourg begins active offering of its services. ABLV Luxembourg, S.A. has already obtained banking licence, equipped office premises and employed key specialists.

"First half of the year was very successful for us in all major lines of ABLV Group business. The growth was considerably furthered by historical decision on Latvia’s accession to the eurozone, substantially increasing competitiveness of Latvian financial sector, especially given the lack of stability in many other European countries. We managed to even more strengthen our already very good key financial performance indicators. Therefore, we look to the future with confidence and increase investments in development of the bank and the whole ABLV Group,” said ABLV Bank Chief Executive Officer (CEO) Ernests Bernis.