TKB Summed Up its Results of 2013
OREANDA-NEWS. April 07, 2014. TKB closed 2013 with profit amounting to 1.3 million lats (1.85 million euros), which led to growth of its equity capital. In addition, last year the Bank increased its subordinated capital to 10.9 million lats and expanded its customer base by 14% (the number of customers-individuals – by 7%).
In 2013 the Bank increased its revenues in all key sectors: interest and commission fees, income from transactions with securities and foreign exchange, while as to interest liabilities, on the contrary, we were able to reduce them. Bank's capital adequacy and liquidity ratios at the end of 2013 were 16.65% and 71.95%, respectively, well above the established standards and planned budget figures.
The Bank's capital and reserves as of December 31, 2013 amounted to 38.34 million lats (54.55 million euros). On December 31, 2013 the Bank's total assets were 291.7 million lats (415.11 million euros), which is 10.2 million (14.54 million euros) less than the closing number of 2012. The total amount of deposits in the accounting period was 235.78 million lats (335.48 million euros), while the Bank's loan portfolio was 79.72 million lats (113.44 million euros).
With a decision of TKB shareholders’ meeting on 28 March 2014, the composition of the Supervisory Council was changed. Artemiy Yershov, an economist with 20 years of experience in managerial positions in foreign financial structures, became a member of the Council. Besides, on 28 March, the Bank’s Supervisory Council approved the appointment of a new Board member. Edgars Diure, a specialist with work experience in FCMC, joined the TKB Board. He will take charge of the compliance function at the Bank, including the set of measures for prevention of money laundering.
Last year, the Bank continuously maintained high standards of customer service and quality of payments. Excellent quality of Bank's international payments was once again confirmed by Bank's business partners. The largest German banks Deutsche Bank and Commerzbank for the eighth consecutive year awarded the Bank with the annual prizes STP Award 2012 and STP Excellence Award 2012.
Taking care of those customers of the Bank who are seeking to accumulate and diversify their capital, in June of 2013 the Bank started offering a new service – Investment Gold, which is the facilitation of investments in purchasing gold bullions of eight different denominations of the highest purity (999.9 parts per thousand, or 24 carat) and storing them in the Bank's safe vault.
A new, elite payment card – World Elite™ MasterCard® – was added to the range of Bank's payment cards in 2013. The Bank offers this elite card with the widest spectrum of exclusive privileges to its most dedicated customers as appreciation of the long-term and fruitful cooperation.
In October of 2013, the international rating agency Moody's Investors Service reviewed the Bank's ratings and left them unchanged. Thus, the Bank's rating for long-term deposits in foreign and national currency remained the same, i.e., B3. The agency kept the following ratings at the previous level: Bank's financial strength rating, the rating of short-term liabilities in foreign and national currency, and the rating outlook.
To improve customer convenience in using online trading platform TKB TRADER, in 2013 the Bank created platform mobile applications for tablet and mobile phone users, which enable fast, convenient and easy work in the global financial markets by using mobile devices running in iOS and Android operating systems.
In preparation for the introduction of the euro in Latvia on January 1, 2014, the Bank implemented an extensive set of measures in 2013 to ensure ultimately convenient, inexpensive and easy transition to the euro for its customers, minimizing service disruptions and facilitating cashless and remote banking services. The Bank provided its customers with all necessary information about the transition period, in due time introduced display of prices in both currencies, took care of supplying euro cash ahead of time, and joined the initiative of Latvian business people called "Honest euro introducer", this way affirming the Bank's commitment to fair transition to the euro.
The Bank will celebrate its 25th anniversary in 2014, which in itself is a testimony of the Bank's experience, stability and successful operation on Latvian and foreign financial markets. During the upcoming year, the Bank will continue to grow in line with its business strategy which was approved by the Board during the fourth quarter of 2013. The Bank will continue to perfect its performance, with an emphasis on improving and expanding the range of services, service quality, and in-depth study of customer needs. In 2014 the Bank intends to pay special attention to improvement of information systems and technologies and also focus on the development of the Internet bank Trast.Net and TKB web page.
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