Corrections: Report from the Bank’s (Group’s) Senior Management, Income statement and The Bank’s performance ratios as well as message text were changed.
In the first quarter of 2018 Baltic International Bank continued to implement the responsible investment-based strategy being approved in the autumn 2016. The Bank had implemented de-risking activities during entire 2017, and basing on the recent events in the Latvian banking sector, we paid special attention to de-risking and diversification of clients.
The business model of the Bank is based on wealth management and investment services, and the Bank’s goal is to increase business volumes in the area, simultaneously implementing de-risking activities according to legislation requirements.
We are pleased that our efforts have positive results - in 1Q 2018, the total of customer funds reached EUR 432 million. By the end of 1Q 2018, the assets under management reached EUR 63.37 million. The volume of financial instruments in brokerage service has also showed a positive dynamics - by the end of 1Q 2018, the volume reached EUR 132.09 million, a 9.4-percent increase from the end of 2017.
By the end of 1Q 2018, the operating income totalled EUR 2.59 million, nevertheless due to transition to the new business model and de-risking activities, the losses of the Bank at the end of Q1 amounted to EUR 727 thousand. The structure of the Bank’s operating income was heavily dominated by the net fee and commission income totalling 46.2 percent. In 1Q 2018, the percentage of the net fee and commission income increased by 16.6 percent compared to the same period last year. The net interest income totalled 26.3 percent. Administrative expenses reached EUR 3.54 million.
The assets of Baltic International Bank reached EUR 279.91 million at the end of first quarter of 2018. The Bank’s high-quality liquid assets (assets carrying investment-grade credit rating and balances due from the Bank of Latvia) totalled EUR 145.29 million or 51.9 percent of the total assets. Investments in government bonds totalled EUR 16.7 million or 5.97 percent of the total assets.
The Bank maintains a well-diversified structure of liquid assets represented by bonds (16 percent), due from credit institutions (12 percent), due from the Bank of Latvia (71 percent) and cash (1 percent). The liquidity coverage ratio (LCR) totalled 245.42 percent (245.47 percent). The liquidity ratio reached 80.86%. The net stable funding ratio (NSFR), characterizing the availability of a stable funding profile in relation to the composition of assets and off-balance sheet activities, reached 135.76 percent.
As of 31 March 2018, the Bank’s own funds totalled EUR 25.73 million. The Bank’s Tier I capital ratio (CETI) was 9.78 percent. The total SREP ratio (TSCR ratio) reached 13.06 percent.
While actively supporting the strategy implemented by Baltic International Bank, the switch-over to the new business model and diversification of target markets, in the beginning of 2018 the Bank’s shareholders decided to increase the Bank’s share capital by EUR 6 million.
In 1Q 2018, Baltic International Bank continued to support the projects of national significance specifically embracing Latvia’s literature, culture and arts. The Bank sponsored the publication of the book „Kā gūt panākumus Latvijā” (How to Prosper in Latvia) whose authors are Kārlis Ozols and Laura Vanaga – Mickeviča. The book tells the readers about 14 outstanding Latvians who have accomplished great things in their life and their success stories.
Baltic International Bank also supported the presentation of the Annual Latvian Literary Award (LALIGABA) arranged to honour the most outstanding Latvian litterateurs.
Teika Lapsa
Head of Marketing and Communication Department
Phone: (+371) 6 7000 444
Email: teika.lapsa@bib.eu
