OREANDA-NEWS. March 04, 2008. In 2007 DnB NORD Banka continued successful and stable development, approaching the Bank's strategic goal - to become one of the top banks in Latvia. Within the year the Bank's assets increased by 37% up to LVL 1,798 million, reported the press-centre of DnB NORD Banka.

The Bank's deposit portfolio grew by 11% up to LVL 353 million. Over the last years the growth ratio of DnB NORD Banka has been 1,5 – 2 times higher than in the banking sector on average; due to the macroeconomic situation in Latvia in 2007 the Bank's lending policy was based on rather prudent principles, and therefore last year the development of DnB NORD Banka was in line with the average performance of the banking sector: the Bank's loan portfolio grew by 39% as compared to the beginning of the year and amounted to LVL 1,557 million.

Amount of loans to legal entities amounted to LVL 679 million, and to private individuals to LVL 860 million, comprising 55% of the Bank's total loan portfolio.

The audited profit of 2007 amounts to LVL 19,58 million, which is considerably more as compared to the profit that was earned in 2006 in amount of LVL 9,8 million.

The year 2007 brought success also to the Bank's subsidiaries - the Asset Management Company DnB NORD Fondi and the Leasing Company DnB NORD Lizings. The assets of DnB NORD Fondi within the year piled up more than threefold, amounting up to LVL 11,4 million. Rapid development trend was followed also by DnB NORD Lizings: the company increased its market share from 10,9% up to 12,1%, the company's total assets amounting to LVL 200 million.

In 2008 the Bank will continue to operate as an universal bank, focusing on three key strategic directions - retail bank for private individuals, a bank for large, medium, and small enterprises as well as an investment bank. 

In 2008 the Bank is going to follow prudent lending policy, and according to expectations the loan portfolio should grow by at least 22%. Since further stable development of Latvian economy will to a large extent depend on development of small and medium enterprises (SME) as well as export and manufacturing industries, this year the Bank is going to concentrate on development and improvement of financial products and services required by SME. 

In order to provide the Bank's customers with new opportunities and to facilitate increase of the Bank's output DnB NORD Banka is going to considerably update the Bank's IT systems. IT development-related costs and investments in 2008 are expected in amount of LVL 4,8 million.

This year the Bank will pay particular attention to further development of savings and investment products, by issuing index-linked notes, offering new savings opportunities as well as life insurance services in conjunction with Vital Life Latvija.