2008 was the year of rapid events and changes in Latvia and in entire world, but exactly this year on 23 April, concluding the integration of AS Baltic Trust Bank and AS GE Money, operations in Latvian financial market started a bank of the General Electric corporation - AS “GE Money Bank”. General Electric (GE) is one of the world largest, most respected and safest companies operating in five business sectors with 130-year experience in more than 160 countries, employing more than 300,000 attractive, energetic and creative employees. Since 1896 and up to now GE has been included in the Dow Jones Industrial index, company's Y2008 profit was 18 billion USD, but in terms of income it was the third best year in the GE history with 183 billion dollars in revenues. GE Money is one of General Electric businesses wherein the corporation has already been operating for 78 years in more than 50 countries. It's one of the most rapidly growing GE sectors trusted by 130 million customers thanks to work of more than 60,000 employees and a full range of financial services provided. Operating activity of the bank in 2008 For GE Money Bank in Latvia 2008 was the year of investments and changes as the principal objective was creation of an operational and technological base for the newly established bank. In order to ensure stable long-term development of the bank the business strategy was changed, significant investment in different projects were made, the organizational structure reshaped, changes in the board, council took place, the branch network improved, the bank's brand changed, various processes and resources optimized, as well as business efficiency increased. In addition the bank actively reacted to the previous year's economic events, significantly improving risk management infrastructure in the company that allows regular identification, monitoring and management of bank's financial risks with the help of different methods including forecasts of macroeconomic scenarios and stress testing of related risks. A very conservative approach was implemented in customer solvency risk assessment and active credit portfolio reserves in the amount of 11.3 million LVL or 5.4% of the credit portfolio was created, thus securing the bank also against the future economic changes. Based on this conservative business approach and investments in GE Money Bank future growth, the bank concluded the previous year with unaudited loss of 14.961 million LVL. At the end of 2008 Bank's assets comprised 253.8 million LVL, 197.3 million LVL were allocated in loans, the deposit volume was 204.4 million LVL. Despite numerous challenges, the bank has gained trust of Latvian consumers. The number of GE Money Bank customers has grown with each month - 7,000 commercial customers and 159,000 private customers trust the bank at the moment. Latvian research data acknowledge that GE Money Bank is the fourth most recognized bank, the fifth most admired bank and the most energetic or the most rapidly growing bank in Latvia. The biggest values of GE Money Bank to the Latvian society are its rich international experience in various markets all over the world, security and reliability, a team of highly professional employees, a wide offer of products and services, and one of the largest branch networks in Latvia. Subsidiary companies As a part of the Bank “GE Money Assets Management” and the stock joint company „GE Money Atklātais pensiju fonds” operate as well. Upon establishment of the new bank in Latvia - GE Money Bank - the following products were introduced: the 2nd pillar pension plans “Džezs” and “Blūzs”, the 3rd pillar pension plans “Rumba” and “Tvists”, investment funds “GE Money Eastern Europe Balanced fund”, „GE Money European Bond fund” and „GE Money Eastern Europe Equity fund”. In 2008 the total assets volume grew more than two times and reached 9.1 million LVL. The number of customers doubled to 24,000. The 2nd pillar pension plans comprised 2% of the market at the end of the year. Corporate citizenship The goal of GE Money Bank in any country and also in Latvia is not just to offer products to the society, but also to get involved in the public sphere by providing support to it. This year with the aggravating economic situation GE Money Bank has taken active part and provided support to development of operations of the nongovernmental organization Money Planning Center in the field of society's financial education on personal budget planning (the organization was established in May 2007 by AS GE Money, a company of the GE Money companies group in Latvia, in cooperation with the Riga International School of Economics and Business Administration). With the help of GE Money Bank there was created financial literacy web page www.vissparnaudu.lv, organised different projects and activities to make people understand financial matters and budget planning, as well as an innovative solution in personal budget planning was introduced - a downloadable program in mobile phones “Money Controller”. GE Money Bank has allocated financial support to different events for wide public groups - for example, town festivals in Latvia's regions, GE Money Streetball competition, GE Money Grand Prix sport dance festival and other. The Bank has willingly shared it international experience by taking part in different seminars, conferences, actively providing comments to mass media and cooperating with state and regulatory institutions. GE Money Bank in any country and also in Latvia provides support to the society not only with bank's financial resources, but also by voluntary involvement of its employees. For example, this year the bank organized voluntary project “Responsibility Week” caring for society's security - bank organized sawing down of dangerous trees in several Latvia's towns, tidying up the surrounding area with the help of more than 50 employees and delivering wood to pensioners. Employees of the bank have also made many donations to Latvia's low-income people organizations. The bank also considers its employees as it's biggest value therefore significant work in favor of employees has been done in the company - reshaping the organizational structure for more effective operations, improving processes and procedures, establishing GE Money Bank Training Centre for employees with a wide offer of training programs and developing the internal communication environment by creating new information channels, traditions, a film about GE Money Bank establishment and other activities. Financial stability and future growth Bank's stability and future growth is acknowledged also by positions of its owner General Electric - a very high credit rating and funding provided to the bank. Thus GE Money Bank is one of the safest banks in Latvia at the moment as it mostly gains funding from diversified business corporation. The total funding from GE reached 110.78 million EUR at the end of the year (available within the concluded agreements - 300 million EUR) that testifies significant shareholder support to the Bank and assent on the chosen operational strategy. The shareholder resolved to increase the capital of the bank for the purpose of securing the bank in the current situation even more - the subordinate capital of 11 million EUR in December 2008 and 30 million LVL investment in the bank's equity capital in Q1 2009. Also according to requirements of the Finance and Capital Market Commission the capital position of GE Money Bank is very good - the capital adequacy indicator as of the end of the year is 11.68% and upon the capital increase in Q1 2009 the capital adequacy indicator is forecast within 20% that almost 2.5 times exceeds the standard defined by the Financial and Capital Market Commission. While the bank maintains the liquidity indicator above 40% (the standard is 30%) and bank's liquidity is secured also by availability of the long-term GE credit line the volume of which is equal to the volume of the deposit base. General Electric has significant experience in periods of economic changes in different countries therefore the operational strategy followed by GE Money Bank is strictly monitored to ensure its compliance to the best international practices and the present situation. General Electric sees growth in Latvia as Latvia's GE Money Bank was joined to the GE Money Central and Eastern Europe region this year, which is one of the most strategically important GE Money regions in the world. Between the balance date and the date of singing this financial report there have been no events that could significantly influence the results of the reporting period. Concluding the report we would like to express gratitude to employees of the Bank for work contributed to bank's growth and to customers for trust and loyalty to the bank! Chairman of the board Dmitrijs Cimbers Board member Inga Vagele Tija Ezeriņa Press secretary GE Money Bank Ph: +371 67 110 448 Mob. ph.: +371 27876080 8b G.Astras Street, Riga, LV-1082
AS "GE Money Bank" non-audited financial statement for period until 31.12.2008
| Source: GE Money Bank