OREANDA-NEWS. DNB group in Latvia has completed the first half year of 2015 with net profit of EUR  8.1 million. The net profit of the second quarter of 2015 was EUR 4 million, which was similar result as per first quarter of 2015. It was achieved due to stable interest income and commission income as well as thorough cost control.

Due to continuously balanced credit policy, DNB banka managed to keep loan loss provisions at a very low level amounting to EUR 386 thousand in the second quarter of 2015.

DNB group’s net deposit portfolio at the end of the second quarter 2015 was EUR 1.2 billion, which is 9% higher than at the end of the second quarter last year. The local funding ratio was at 74%, which is 11 percentage points higher than at the respective period of 2014.

The net loan portfolio of DNB group in Latvia composed EUR 1.53 billion at the end of June 2015. The newly issued loans in second quarter of 2015 have amounted to EUR 62 million that is 15 % higher than in the respective period of the last year.

The gross portfolio of SIA DNB L?zings, the subsidiary of DNB banka, reached EUR 129 million at the end of the second quarter of 2015, which is 2% higher than at the respective period of 2014. SIA DNB L?zings has signed new deals at EUR 33 million in the first half year of 2015.

The assets of the 2nd pillar pension plans managed by IPAS DNB Asset Management, the subsidiary of DNB banka, increased significantly (by EUR 15 million) during the first half year of 2015.

All 2nd pillar pension plans managed by IPAS DNB Asset Management showed outstanding in 1 year performance – DNB Active investment plan has earned 7.46% to its customers, and it is the most profitable pension plan both among all active pension plans and also all 2nd pillar pension plans in Latvia. DNB Balanced investment plan earned 4.64% to its customers thus reaching the best results among all balanced pension plans, and DNB Conservative investment plan earned 2.20% to its customers.

The first half year of 2015 was marked by intensive work at developing the remote channels available for customers of DNB banka. The network of cash-in and cash-out ATMs was widened; the customers were educated on the new possibilities, appreciating the new and convenient ways of receiving daily banking services. In the second quarter of 2015 the new Mobile app of DNB banka was launched as well.

In order to strengthen its position in mortgage market, in the second quarter of this year DNB banka paid continuous efforts to improving the availability of mortgage loans to customers. The mortgage lending credit policy was reviewed, placing in the center of the decisions the customer and the quality of the chosen real estate instead of the location of the real estate. DNB banka joined the State support program for home purchase for families with children as well, thus giving possibility to wider spectrum of customers to receive a beneficial mortgage loan in DNB banka.

The shareholder of DNB banka, DNB Group (Norway) recorded profits of NOK 5 062 million in the second quarter of 2015 which is up 508 million from 2014. Higher volumes, wider deposit spreads and an increase in net commissions and fees contributed to the sound performance.