In the 1st quarter of 2007 the rapid growth of the loan portfolio of Balti
Investeeringute Grupi Pank AS continued both in Estonia as well as in Latvia.
There were no significant changes regarding the provided services, customer
groups or distribution channels in the 1st quarter. Proceeding from the rapid
growth of the loan market of private persons, also the marketing activity of the
company was rather active when compared to the 1st quarter of the previous year.
During the 1st quarter of 2007 the volume of the assets of Balti Investeeringute
Grupi Pank AS Group increased by 17% and by the end of the quarter amounted to 1
421.99 million kroons. Compared to the 1st quarter of 2006 the volume of assets
increased by 110%. The portfolio of loan customers increased respectively by 15%
in the 1st quarter of 2007 and when compared to the same period of the previous
year the growth was 143%. By the end of the 1st quarter the loan portfolio of
group's customers stood at 1 254.5 million kroons, accounting for 88% of the
group's total assets.
At the same time the number of loan customers of the BIG group has increased
approximately by three times with the year and as at 31 March 2007 there were
approximately 60.000 active loan contracts concluded by them.
Issued bonds in the volume of 661.15 million kroons formed the majority of the
external financing, accounting for 63% of the liabilities. As of the end of the
quarter the liabilities to credit institutions amounted to 192.22 million kroons
or 18% of all liabilities. In the 1st quarter of 2007 the volume of liabilities
has altogether increased by 18% and by 112% in comparison with the 1st quarter
of 2006. In the 1st quarter of 2007 the owners' equity increased to 364.603
million kroons, or by 17% and by 103% when compared to the previous year. The
adequacy of the group's capital at the end of the 1st quarter of 2007 formed
29.12% and the adequacy of the parent company's capital was 33.71%, thus
exceeding the norm set by the financial supervision nearly three times.
In the 1st quarter of 2007 the net profit of the BIG group totalled to 56.704
million kroons, which is 64% more in comparison with the same period in 2006.
The net profit of the parent company in the 1st quarter of 2007 was higher than
the net profit of the group, because the Latvian subsidiary paid dividends to
the parent company in the sum of 22 million kroons. Interest income increased to
107.157 million kroons by the end of 1st quarter of 2007, or by 110% within the
year, and the interest expenditure increased by 184%. Interest expenditure
formed 11.8% of the interest income in the 1st quarter. The administrative
expenditure of the group increased by 100% during the year and in the 1st
quarter amounted to 28.172 million kroons.
The number of employees of the BIG group has increased by 160% with the year,
amounting to 304 as at 31 March, 180 of who are working in Estonia. The number
of employees of the group will keep increasing also in the future according to
the growth of the volume of loans. However, the number of the loan offices of
the BIG group increased from 14 to 26 within the year, whereas the number of the
BIG offices in Latvia increased even by 9; as at the end of the 1st quarter of
2007 there were 12 offices in Latvia.
--------------------------------------------------------------------------------
| Group's Balance Sheet | In millions of | In millions of euros |
| | kroons | |
--------------------------------------------------------------------------------
| (in millions of kroons) | 31.03.200 | 31.12.20 | 31.03.200 | 31.12.20 |
| | 7 | 06 | 7 | 06 |
--------------------------------------------------------------------------------
| Assets | | | | |
--------------------------------------------------------------------------------
| Cash on hand | 0.009 | 0.005 | 0.001 | - |
--------------------------------------------------------------------------------
| Receivables | 1 325.385 | 1 | 84.707 | 72.387 |
| | | 132.608 | | |
--------------------------------------------------------------------------------
| Receivables from central bank | 93.550 | 96.186 | 5.979 | 6.148 |
--------------------------------------------------------------------------------
| Receivables from credit | 7.797 | 44.728 | 0.498 | 2.859 |
| institutions | | | | |
--------------------------------------------------------------------------------
| Receivables from credit | 881.771 | 767.363 | 56.355 | 49.043 |
| institutions' customers | | | | |
--------------------------------------------------------------------------------
| Receivables from leasing | - | - | - | - |
| institutions' customers | | | | |
--------------------------------------------------------------------------------
| Receivables from direct | - | - | - | - |
| insurance and reinsurance | | | | |
| activities | | | | |
--------------------------------------------------------------------------------
| Other receivables | 372.729 | 245.150 | 23.822 | 15.668 |
--------------------------------------------------------------------------------
| Doubtful receivables and | - 30.462 | - 20.819 | - 1.947 | - 1.331 |
| loans (-) | | | | |
--------------------------------------------------------------------------------
| Bonds and fixed rate | - | - | - | - |
| securities | | | | |
--------------------------------------------------------------------------------
| Shares and other securities | - | - | - | - |
--------------------------------------------------------------------------------
| Shares in subsidiaries | - | - | - | - |
--------------------------------------------------------------------------------
| Shares in related companies | - | - | - | - |
--------------------------------------------------------------------------------
| Other shares | - | - | - | - |
--------------------------------------------------------------------------------
| Derivatives | - | - | - | - |
--------------------------------------------------------------------------------
| Intangible assets | 7.793 | 6.388 | 0.498 | 0.408 |
--------------------------------------------------------------------------------
| Consolidated goodwill | - | - | - | - |
--------------------------------------------------------------------------------
| Other intangible assets | 7.793 | 6.388 | 0.498 | 0.408 |
--------------------------------------------------------------------------------
| Tangible assets | 19.153 | 18.087 | 1.224 | 1.156 |
--------------------------------------------------------------------------------
| Investment properties | 5.323 | 5.358 | 0.340 | 0.342 |
--------------------------------------------------------------------------------
| Transactions with shareholders | - | - | - | - |
--------------------------------------------------------------------------------
| Other assets | - | - | - | - |
--------------------------------------------------------------------------------
| Accrued income and prepaid | 64.327 | 48.551 | 4.111 | 3.103 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Total assets | 1 421.990 | 1 | 90.881 | 77.396 |
| | | 210.997 | | |
--------------------------------------------------------------------------------
| Liabilities and owners' equity | | | | |
--------------------------------------------------------------------------------
| Payable | 366.958 | 287.371 | 23.451 | 18.365 |
--------------------------------------------------------------------------------
| Payable to central bank | - | - | - | - |
--------------------------------------------------------------------------------
| Payable to credit institutions | 192.217 | 159.250 | 12.284 | 10.177 |
--------------------------------------------------------------------------------
| Payable to credit | 173.666 | 126.970 | 11.098 | 8.115 |
| institutions' customers | | | | |
--------------------------------------------------------------------------------
| Payable to direct insurance | - | - | - | - |
| and reinsurance activities | | | | |
--------------------------------------------------------------------------------
| Other payables | 1.075 | 1.151 | 0.069 | 0.073 |
--------------------------------------------------------------------------------
| Liabilities represented by | 485.400 | 481.687 | 31.023 | 30.785 |
| securities | | | | |
--------------------------------------------------------------------------------
| Issued bonds | 485.400 | 481.687 | 31.023 | 30.785 |
--------------------------------------------------------------------------------
| Derivatives | - | - | - | - |
--------------------------------------------------------------------------------
| Other liabilities represented | - | - | - | - |
| by securities | | | | |
--------------------------------------------------------------------------------
| Other liabilities | - | - | - | - |
--------------------------------------------------------------------------------
| Accrued expenses and deferred | 29.276 | 22.106 | 1.871 | 1.413 |
| income | | | | |
--------------------------------------------------------------------------------
| Provisions | - | - | - | - |
--------------------------------------------------------------------------------
| Technical provisions of | - | - | - | - |
| insurance activities | | | | |
--------------------------------------------------------------------------------
| Long-term pension provisions | - | - | - | - |
--------------------------------------------------------------------------------
| Other provision | - | - | - | - |
--------------------------------------------------------------------------------
| Subordinated liabilities | 175.753 | 108.030 | 11.233 | 6.904 |
--------------------------------------------------------------------------------
| Minority interest | - | - | - | - |
--------------------------------------------------------------------------------
| | | | - | |
--------------------------------------------------------------------------------
| Total liabilities | 1 057.387 | 899.194 | 67.578 | 57.467 |
--------------------------------------------------------------------------------
| Share capital | 80.000 | 80.000 | 5.113 | 5.113 |
--------------------------------------------------------------------------------
| Share premium | - | - | - | - |
| | | | | |
--------------------------------------------------------------------------------
| General banking reserve | - | - | - | - |
--------------------------------------------------------------------------------
| Legal reserve | 4.000 | 4.000 | 0.256 | 0.256 |
--------------------------------------------------------------------------------
| Other reserves | - | - | - | - |
--------------------------------------------------------------------------------
| Unrealised exchange | - 2.739 | 0.437 | - 0.175 | 0.028 |
| differences | | | | |
--------------------------------------------------------------------------------
| Retained profit | 226.638 | 53.537 | 14.485 | 3.422 |
--------------------------------------------------------------------------------
| Profit for the current | 56.704 | 173.829 | 3.624 | 11.110 |
| accounting year | | | | |
--------------------------------------------------------------------------------
| Own shares | - | - | - | - |
--------------------------------------------------------------------------------
| | | | - | |
--------------------------------------------------------------------------------
| Total owners' equity | 364.603 | 311.803 | 23.303 | 19.929 |
--------------------------------------------------------------------------------
| | | | - | |
--------------------------------------------------------------------------------
| Total liabilities and owners' | 1 421.990 | 1 | 90.881 | 77.396 |
| equity | | 210.997 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group's Income Statement | In millions | In millions of |
| | of kroons | euros |
--------------------------------------------------------------------------------
| | 1Q200 | 1Q200 | 1Q200 | 1Q2006 |
| | 7 | 6 | 7 | |
--------------------------------------------------------------------------------
| Interest income | 107.1 | 50.91 | 6.848 | 3.254 |
| | 57 | 0 | | |
--------------------------------------------------------------------------------
| Interest income from credit institution's | 77.76 | 43.08 | 4.969 | 2.754 |
| operations | 4 | 4 | | |
--------------------------------------------------------------------------------
| Interest income from leasing operations | - | - | - | - |
--------------------------------------------------------------------------------
| Other interest income | 29.39 | 7.826 | 1.879 | 0.500 |
| | 3 | | | |
--------------------------------------------------------------------------------
| Interest expenditure | 12.65 | 4.463 | 0.808 | 0.285 |
| | 9 | | | |
--------------------------------------------------------------------------------
| Interest expenditure from credit | 12.49 | 4.360 | 0.799 | 0.279 |
| institution's operations | 9 | | | |
--------------------------------------------------------------------------------
| Interest expenditure from leasing | - | - | - | - |
| operations | | | | |
--------------------------------------------------------------------------------
| Other interest expenditure | 0.160 | 0.103 | 0.009 | 0.006 |
--------------------------------------------------------------------------------
| Net interest income | 94.49 | 46.44 | 6.040 | 2.969 |
| | 8 | 7 | | |
--------------------------------------------------------------------------------
| Income and expenses from insurance | - | - | - | - |
| operations | | | | |
--------------------------------------------------------------------------------
| Insurance premiums (net) | - | - | - | - |
--------------------------------------------------------------------------------
| Insurance indemnities and change in | - | - | - | - |
| provisions (net) | | | | |
--------------------------------------------------------------------------------
| Income from securities | - | - | - | - |
--------------------------------------------------------------------------------
| Profit/loss calculated using equity method | - | - | - | - |
--------------------------------------------------------------------------------
| Profit/loss from sale of long-term | - | - | - | - |
| financial investment | | | | |
--------------------------------------------------------------------------------
| Dividends on securities acquired for | - | - | - | - |
| long-term holding | | | | |
--------------------------------------------------------------------------------
| Net service charges | - | 0.018 | - | 0.001 |
| | 0.031 | | 0.002 | |
--------------------------------------------------------------------------------
| Income from service charges | 0.037 | 0.048 | 0.002 | 0.003 |
--------------------------------------------------------------------------------
| Expenditure on service charges | 0.068 | 0.030 | 0.004 | 0.002 |
--------------------------------------------------------------------------------
| Net profit/loss from financial transactions | 0.195 | - | 0.013 | - |
| | | 0.010 | | 0.001 |
--------------------------------------------------------------------------------
| Profit/income | 1.903 | - | 0.122 | - |
--------------------------------------------------------------------------------
| Loss/expenditure | 1.708 | 0.010 | 0.109 | 0.001 |
--------------------------------------------------------------------------------
| Administrative expenditures | 28.17 | 14.07 | 1.801 | 0.899 |
| | 2 | 3 | | |
--------------------------------------------------------------------------------
| Wages and salaries | 8.911 | 3.935 | 0.570 | 0.251 |
--------------------------------------------------------------------------------
| Social tax, health insurance contribution | 2.704 | 1.251 | 0.173 | 0.080 |
--------------------------------------------------------------------------------
| Pension (non-state) | - | - | - | - |
--------------------------------------------------------------------------------
| Other administrative expenditures | 16.55 | 8.887 | 1.058 | 0.568 |
| | 7 | | | |
--------------------------------------------------------------------------------
| Change in the value of investment | - | - | - | - |
| properties, tangible and intangible assets | 1.100 | 0.504 | 0.070 | 0.032 |
| (+/ -) | | | | |
--------------------------------------------------------------------------------
| Profit/income | - | - | - | - |
--------------------------------------------------------------------------------
| Loss/expenditure | 1.100 | 0.504 | 0.070 | 0.032 |
--------------------------------------------------------------------------------
| Change in the value of receivables and | - | 0.409 | - | 0.026 |
| off-balance-sheet liabilities (+/ -) | 10.10 | | 0.646 | |
| | 1 | | | |
--------------------------------------------------------------------------------
| Profit/income | - | 0.636 | - | 0.041 |
--------------------------------------------------------------------------------
| Loss/expenditure | 10.10 | 0.227 | 0.646 | 0.015 |
| | 1 | | | |
--------------------------------------------------------------------------------
| Change in the value of long-term financial | - | - | - | - |
| investments (+/ -) | | | | |
| | | | | |
--------------------------------------------------------------------------------
| Income | - | - | - | - |
--------------------------------------------------------------------------------
| Expenditure | - | - | - | - |
--------------------------------------------------------------------------------
| Other operating income and expenditures | 3.491 | 3.349 | 0.223 | 0.214 |
| (+/-) | | | | |
--------------------------------------------------------------------------------
| Other operating income | 8.874 | 4.912 | 0.567 | 0.314 |
--------------------------------------------------------------------------------
| Other operating expenditures | 5.383 | 1.563 | 0.344 | 0.100 |
--------------------------------------------------------------------------------
| Extraordinary income/ expenditures (+/-) | - | - | - | - |
--------------------------------------------------------------------------------
| Extraordinary income | - | - | - | - |
--------------------------------------------------------------------------------
| Extraordinary expenditures | - | - | - | - |
--------------------------------------------------------------------------------
| Profit/loss before tax | 58.78 | 35.63 | 3.757 | 2.278 |
| | 0 | 6 | | |
--------------------------------------------------------------------------------
| Income tax expenditure | 2.076 | 1.031 | 0.133 | 0.066 |
--------------------------------------------------------------------------------
| Income tax for the accounting period | 2.076 | 1.031 | 0.133 | 0.066 |
--------------------------------------------------------------------------------
| Change in potential income tax liability | - | - | - | - |
--------------------------------------------------------------------------------
| Minority interest's part of profit | - | - | - | - |
--------------------------------------------------------------------------------
| Net profit/loss for the accounting period | 56.70 | 34.60 | 3.624 | 2.212 |
| (+/-) | 4 | 5 | | |
--------------------------------------------------------------------------------
The full Public Interim Report for Q1 2007 is available on the website of the
Tallinn Stock Exchange and on the website of Balti Investeeringute Grupi Pank AS
at http://www.big.ee.
Additional information:
Targo Raus
Balti Investeeringute Grupi Pank AS
CEO
Tel: +372 735 0923
