Bank improves year-on-year financial performance and sets new goals

March 21, 2017

2016 was a financially successful year for the bank. The fiscal year was closed with a profit of EUR 7.8 million. Timely analysis of market developments and the ability to make appropriate adjustments have enabled the bank to maintain its pace of development and introduce new solutions.

According to audited data, income from the bank’s core activities during the reporting period increased by 21%, reaching EUR 44.6 million. Equity (including subordinated capital) reached EUR 84 million, which is 8% higher than the year before. The amount of assets held by the bank (including assets under management) constituted EUR 674 million at year-end.

The bank’s key financial performance indicators have remained high: liquidity at the end of the reporting period stood at 70.03%, with capital adequacy at 21.04%, return on equity (ROE) at 13.7 %, and return on assets (ROA) at 1.1%.

Lending volumes exhibited a substantial increase, with loans granted to clients of the bank for a total of EUR 63.1 million. This represented a year-on-year increase of 56% of total issued loans and granted loan issue obligations, to EUR 170 million. Almost half of the loans (46%) are invested in the economy of Latvia, contributing valuably to the development of local businesses, and the remaining 54% were allocated to clients’ international projects.

During the reporting period, considerable investments were allocated to technological initiatives. The bank developed solutions for using a variety of communications channels and expanded its online banking functionality substantially.

To encourage recognition as an international financial platform, the bank is gradually entering the retail service market. In 2017, the bank will be using a new brand – BlueOrange – for its financial activities. Simplicity, affordability and convenience were the cornerstones of this innovative business model. In-house intellectual resources were put to use developing and implementing effective IT solutions.

The bank’s new website was launched to coincide with the new brand. It provides new ways for clients to interact with the bank remotely, making services more accessible. Thanks to the new mobile Digipass app, clients no longer have to carry a dedicated device with them.

Last year, interest for e-commerce increased considerably. In this area, the bank actively engaged with local business. In cooperation with partners, the bank introduced dedicated service packages. Plans for 2017 include expansion of services to trade and service companies by installing POS terminals and providing digital invoicing capabilities.

“These results clearly demonstrate how the bank offers its clients the most useful and efficient solutions. It intends to maintain the pace of technological development to enable clients to conduct business successfully and manage their assets from anywhere in the world,” mentioned Dmitrijs Latiševs, the bank’s CEO.

The bank’s priorities for 2017 are: automation of business processes and development of technological platforms; implementation of a state of the art full-featured mobile app and web platform for trading –; the launch of an API for the bank’s systems that will power its cooperation with high-tech companies; continued investments in consolidating and boosting the bank’s growth as a financial institution.

In 2016, 50 new professionals joined the bank’s team for a total staff of 320, which is solid evidence of the bank’s continued growth and development.

Ingrīda Šmite,
Head of the Public Relations and Communication Department