Operating Earnings of NORVIK BANKA Increased by 67%
OREANDA-NEWS. April 08, 2013. Bank’s 2012 profit before impairment and tax achieved LVL 10.4 million, which is the best historical result the Bank showed in the post crisis period.
During the last year, the Bank continued to develop business and as a result the Bank’s operating earnings significantly increased. Bank’s operating earnings achieved LVL 26.3 million exceeding last year result by 13.4% when Bank’s operating earnings achieved LVL 23.1 million.
In 2012, the Bank accumulated substantial reserves and cleared Banks balance from problematic assets by LVL 43 million recognizing it in annual report. As a result of implemented strictly conservative business strategy by the Bank?s management the Bank’s 2012 profit before impairment exceeded last year results by 67%.
The Bank?s shareholders have significantly strengthened capital base – the Bank’s capital was increased by LVL 18.1 million in 2012 and by LVL 1.4 million in 2013.
The Bank’s capital adequacy ratio at the end of the year 2012 was 8.34% but at the end of the first quarter 2013 it achieved 8.6%. Liquidity ratio is consistently maintained at 45% -50%.
Developing the quality of services and ensuring consistently high level of service to its customers, the Bank continued to show an increasing trend in the number of customers and business volume. During many years the Bank sustains its market position being 9th biggest Latvian Bank in term of assets and 8th biggest one in term of customers’ deposits.
In 2012, the Bank continued to work on the clients deposit base development. As a result amount of subordinated deposits increased by 9% and reached LVL 19.4 million. Total amount of deposits reached LVL 465 million.
In 2012, the Bank’s international activity got rewarded by Banking Association for Central and Eastern Europe (BACEE) for the outstanding achievements in the area for developing co-operation between banks and financial institution of the European Union, Central and Eastern Europe and the CIS countries.
In 2012, the Bank continued its work on the development of the Bank?s accessibility to its clients. During the last year 4 new customer service centers were opened. Now Norvik Banka has the largest network of branches in Latvia – overall 80 customer service centers operates and the Bank is represented in 17 Latvian cities.
In 2013, the Bank is focused on increase of deposit base and operating profits by facilitating the commission business and reducing the risky business. The Bank’s operating earnings at the end of first quarter 2013 achieved LVL 700 thousand, demonstrating the effectiveness of the strategy chosen.
Maximum fast and ensure convenient payment services to Latvian and international clients remains the highest priority of the Bank.