OREANDA-NEWS. October 28, 2009. According to preliminary data AB DnB NORD Bankas earned a pre-tax operating profit before provisions of LTL 192.6 million in the first nine months of 2009, a 37.2 percent rise compared to the same period a year ago. With customer risks remaining high, due to the country’s deep and protracted economic contraction, AB DnB NORD Bankas set aside LTL 196 million in special provisions in the third quarter of 2009, the amount commeasurable with the provisioning level the quarter before. As a result AB DnB NORD Bankas net financial result was LTL 237.2 million loss for the first nine months of 2009, reported the press-centre of DnB NORD Bankas.

To ensure balanced performance of the bank in the adverse economic environment, the bank’s share capital has been increased to LTL 656.7 million and the bank’s largest shareholder Bank DnB NORD invested EUR 15 million to the bank’s reserve capital in the third quarter of the year. AB DnB NORD Bankas met all prudential requirements of Bank of Lithuania and maintained sound capital and liquidity positions.

”Our focus on operating efficiency through streamlining measures, strict cost control and the ability to exploit emerging business opportunities in the recession-stricken economy helped ease the impact of the increased risk costs on the bank’s nine month result. In the third quarter of the year customer risks remained high due to Lithuania’s deep and protracted economic contraction, however intense credit monitoring and restructuring efforts brought about some stabilization in the bank’s mortgage credit and leasing portfolios. Our efforts to build long-term relationships and to respond quickly to changing customer needs resulted in sustained growth of total income and the number of the bank’s customers, a fact we are particularly proud of,” said Werner Schilli, president and the chairman of the management board of AB DnB NORD Bankas.

Lifted by particularly strong commission income from trade with securities and derivatives, AB DnB NORD Bankas total income rose 13.7 percent year-on-year to LTL 329.2 million in the first nine months of 2009. Through streamlining measures the bank’s operating expenses were reduced 11.1 percent year-on-year to LTL 123.8 million. The constant focus on operating efficiency and productivity resulted in a cost/income ratio of 36.3 percent, the bank’s best ever so far.

Due to declining credit demand and a smaller number of projects that met the credit risk criteria, AB DnB NORD Bankas net loan portfolio decreased 5.3 percent year-on-year to LTL 10.5 billion at the end of September.

As at the end of September, the savings and investments at AB DnB NORD Bankas stood at LTL 4.5 billion, of which issued debt securities amounted to LTL 807 million and customers‘deposits were LTL 3.7 billion. Offering an attractive investment option to the bank’s institutional and private customers, the bank placed fixed rate one year government bills worth EUR 309.3 million on the secondary market in the first nine months of 2009 and co-managed sovereign bond issue of Lithuanian Republic on international capital markets.

The number of AB DnB NORD Bankas customers rose by 37.7 thousand in the first nine months of 2009 and the bank provided comprehensive range of financial services to 662 thousand individual and corporate customers as at the end of September.

AB DnB NORD Bankas, a part of DnB NORD financial group, a joint venture owned 51% Norway’s largest bank DnB NOR (Standard & Poor's long term AA- rating) and 49% by North Germany’s largest bank NORD/LB (FitchRatings long term A rating), maintained the highest creditworthiness rating among Lithuanian banks assigned by FitchRatings (long term A rating).