OREANDA-NEWS. December 09, 2014. Although varying trends were observed in the world economy and economic growth slowdown was observed in some countries, Latvian economic indicators are continuing being among the best in the European Union.

In Q3 2014, Latvian real gross domestic product (GDP), according to data without seasonal adjustment, grew by 2.1%. Q3 2014 was favourable for ABLV Bank, AS, and the group. The business volume continued to grow and the bank’s profit amounted to EUR 50.0 million.

In Q3 2014, we continued a gradual substitution of long-term deposits with investments in bonds by performing more issues of ABLV Bank, AS bonds. So far we have performed 25 public bond issues. including the redeemed bonds. Currently, 19 bond issues are included in the Nasdaq Riga list of debt securities.

All major performance indicators evidence the growth of business:

ABLV Bank, AS, profit for 9 months of 2014 reached EUR 50.0 million.

The bank’s operating income for 9 months of 2014 before allowances for credit losses amounted to EUR 89.1 million.

During 9 months of 2014, the amount of deposits with the bank has grown by 11.0%, reaching EUR 3.08 billion.

As at 30 September 2014, the amount of the bank’s assets totalled EUR 3.80 billion.

The bank’s loan portfolio amounts to EUR 827.3 million, and the amount of commercial loans has increased to reach EUR 462.2 million.

The bank’s capital and reserves amounted to EUR 219.9 million.

As at 30 September 2014, the bank’s capital adequacy ratio was 16.71%, whereas liquidity equalled 85.22%.

ROE reached 34.14%, and ROA –1.86%.

The bank continued investing available funds in securities. The total amount of the securities portfolio equalled to EUR 1.99 billion, as at 30 September 2014. The bank’s securities portfolio is mostly composed of fixed-income debt securities. Securities having credit rating AA- and higher constitute 71.4% of the total securities portfolio. In terms of the countries, investments are allocated as follows: USA – 24.4%, Germany – 13.3%, Russia – 10.3%, Latvia – 10.2%, Canada – 9.4%, Sweden – 9.3%, Netherlands – 3.2%, and Norway – 2.1%. Whereas 5.8% is constituted by securities issued by international institutions – the European Commission, EBRD, etc. In the reporting period, annual yield of the securities portfolio amounted to 1.6%.

Significant deals were concluded in the sector of business financing. At the end of August, with the participation of ABLV Bank,AS, the deal of selling capital shares of Ventamonjaks terminal, dealing with transhipment of liquid ammonia at Ventspils Free Port, was successfully completed. The mentioned deal was one of the most significant deals in the transit and cargo transportation area recently – the deal amount equalled EUR 55 million, with the financing of ABLV Bank constituting EUR 33 million.

Whereas in September LNK Group used ABLV Bank financing of EUR 8.1 million to acquire office building at 15 J.Dalina Street for more than EUR 10.5 million.