OREANDA-NEWS. November 01, 2008. In the environment of Lithuania’s slowing economic growth AB DnB NORD Bankas earned an un-audited net profit of LTL 98.8 million over the first nine months of 2008, the result calculated in accordance with the International Financial Reporting Standards, reported the press-centre of AB DnB NORD Bankas.

That represents a 22.9 percent or LTL 18.4 million rise compared with the same period a year ago when the bank’s un-audited net profit stood at LTL 80.3 million.

The bank’s profit before income tax increased 17.4 percent year-on-year to LTL 113.7 million as at the end of September. The bank‘s cost income ratio rose to 49.4 percent while the return on equity made 15.5 percent as at the end of September.

 “The financial result was achieved through constant focus on operating efficiency, enhanced attention to risk management and our efforts to keep costs in check that helped us to offset the impact of slowing economy growth. We are particularly pleased that the number of our customers topped important 600 thousand benchmark in the third quarter of the year as that clearly indicates that our efforts to provide high quality banking services and flexibly respond to changing customer needs delivers the result. We strongly believe that during periods of economic slowdown, our customers more than ever need financial advice and professional service and we must offer them the best possible guidance to ensure their further success and the success of our business, “said Werner Schilli, the president and the chairman of the management board of AB DnB NORD Bankas.

According to un-audited data AB DnB NORD Bankas’ assets rose 35.1 percent or LTL 3.36 billion year-on-year up to LTL 12.93 billion as at the end of September 2008.
 
AB DnB NORD Bankas’ loan portfolio grew 38.6 percent year-on-year up to LTL 11.11 billion as at the end of September. The bank’s loans to individuals rose 36.4 percent year-on-year to LTL 5.09 billion as at the end of September. The bank’s loan portfolio to corporates recorded 40.5 percent increase year-on-year and for the first time in the bank’s history topped LTL 6 billion mark as at the end of September.

Compared with the same period a year ago, the savings and investments at AB DnB NORD Bankas rose 8.0 percent to LTL 5.3 billion as at the end of September 2008.

To ensure further balanced growth of the bank AB DnB NORD Bankas registered the increase of the bank’s authorised share capital to LTL 591 million in the third quarter of 2008. The bank’s shareholders also voted to allocate additional contributions to increase the bank’s authorised share capital to LTL 622 million.

Due to proper risk management AB DnB NORD Bankas met all prudential requirements of the Bank of Lithuania. On October 7 the international ratings agency Fitch Rating affirmed the bank’s long-term borrowing rating A with stable Outlook. Fitch Ratings also affirmed AB DnB NORD Bankas' short-term IDR ‘F1', individual rating at C/D and the support rating '1'.

AB DnB NORD Bankas is part of DnB NORD banking group that was established by the Norway’s largest bank DnB NOR and North Germany’s largest bank NORD/LB. DnB NORD Bankas runs three subsidiaries in Lithuania: asset management firm UAB DnB NORD Investiciju Valdymas, leasing arm UAB DnB NORD Lizingas and real estate brokerage UAB DnB NORD Bustas.