OREANDA-NEWS. July 10, 2009. According to preliminary data AB DnB NORD Bankas, company code 112029270, VAT payer code LT120292716, registered office at J. Basanaviciaus St. 26, Vilnius, the data is collected and stored at the Register of Legal Entities, earned a pre-tax operating profit before provisions of LTL 129 million (EUR 37.4 million) in the first six months of 2009, a 37.1 percent rise compared to the same period a year ago, reported the press-centre of DnB NORD Bankas.

Taking into account a negative impact of a sharp macro economic downturn on Lithuania's real economy, the bank continued to pursue a conservative customer risk valuation and set aside LTL 189 million (EUR 54.7 million) in provisions in the second quarter of 2009 alone. As a result AB DnB NORD Bankas recorded LTL 136.4 million (EUR 39.5 million) loss for the first six months of 2009. To ensure the bank's balanced performance in the recession affected economy, the bank's shareholders invested LTL 102 million (EUR 29.5 million) and fully subscribed to the new share issue worth LTL 71.4 million (EUR 20.7 million) during the first six months of the year.
 
AB DnB NORD Bankas pre-tax operating profit before provisions was LTL 94.1 million (EUR 27.3 million) in the first six months of 2008 and its net profit was LTL 68.6 million (EUR 19.9 million) in that period.
 
„The bank's financial result mirrors troubled macro economic developments in Lithuania that we offset somewhat through growth of the bank's income, tight spending control, constant efforts to streamline the bank's business lines and further improvement of operating efficiency,” said Werner Schilli, president and the chairman of the management board of AB DnB NORD Bankas.
 
AB DnB NORD Bankas first half 2009 total income rose 13.6 percent year-on-year to 220.9 million (EUR 64.0 million) while its operating expenses were reduced 10.9 percent year-on-year to LTL 83.5 million (EUR 24.2 million). Constant focus on increasing operating efficiency helped the bank to improve its cost income ratio to 39.5 percent, compared to 49.7 percent in the same period a year ago. The bulk of provisions, that totaled LTL 294.6 million (EUR 85.3 million) in the first six months of the year, were set aside on loans extended to customers operating in real estate development, construction and transport sectors.
 
In the adverse economic environment characterized by increasing number of corporate bankruptcies that also negatively affected labor market and household income, the backing of our strong shareholders and their long-term commitment to the Lithuanian market helped the bank to maintain strong capital and liquidity positions. In the first six months of the year the bank's shareholders reinvested the 2008 profit, injected EUR 10 million (LTL 34.5 million) to the bank's reserve capital and fully subscribed to the new share issue worth LTL 71.4 million (EUR 20.7 million). The payment for the new share issue was transferred to AB DnB NORD Bankas capital account on 7 July 2009. AB DnB NORD Bankas met all prudential requirements of the Bank of Lithuania.