Baltikums Bank displays stable performance and expands its service offering

February 29, 2016

The year 2015 was a year of success and stability for Baltikums Bank AS. According to final financial data, income from the bank’s activities during the reporting period reached EUR 36.9 million, with net profit of EUR 7.4 million. The bank’s main performance indicators were also high: liquidity at the end of the reporting period was 77.39 % and capital adequacy constituted 21.7 %; return on equity (ROE) during the year was at 14.0 % and the bank’s return on assets (ROA) – was 1.1 %.

Compared to the previous reporting period, there was growth across a number of important items in 2015: client assets grew by 21% to reach EUR 671.7 million; the bank’s total assets also increased by more than 18 %, to EUR 774.1 million. Furthermore, it should be noted that the bank’s capital (including subordinated liabilities) increased by 20%, totalling EUR 77.9 million. 

Baltikums Bank continued to expand enterprise lending during the reporting period, by offering clients trade finance, factoring and investment loans. Loans totalling EUR 58.5 million were granted to clients in 2015, 56% more than during the previous reporting period. New markets were explored actively; more than half of the loans by volume were allocated to projects for developing international trade and manufacturing. With the bank’s financial assistance, clients have been able to successfully implement their projects, in European markets as well as in more remote countries of Asia and Africa. 

Baltikums Bank was acknowledged with the Nasdaq Riga 2015 award for arranging issues of debt securities. The volume of issues arranged last year totalled EUR 67 million. 

During the reporting period, the bank continued to develop remote servicing. Its geographical reach has expanded significantly, servicing new clients in Central Europe and East Asia and strengthening its bonds with long-time partners from these regions. 

In an era of rapid digitalisation, aware of how the financial services industry could change in the near future, the bank implemented a range of technological projects aimed at improving client comfort, service availability, and reliability of financial transactions. 

A new Internet Bank was introduced with a greater range of options for client service, alongside an Internet Bank mobile app. New platforms have been created for remote servicing, including a mobile multifunctional client service centre. Significant investment in developing new technologies will continue in 2016, updating and developing new communications channels. The range of services provided online is on track to expand considerably. 

(According to the Statement of the Council and Board of Baltikums Bank AS on 25 February 2016)