OREANDA-NEWS. February 03, 2014. According to its 2013 results, Baltikums Bank continued to increase its profits at an unrelenting pace, justifying its reputation as a leading private asset management institution in Latvia.

With a net profit of 12.4 million euros (after tax) in 2013, Baltikums Bank is among Latvia’s best in terms of profitability, return on equity and return on assets (26/8% and 2.25%), liquidity and capital adequacy (78.90% and 19.12%). Gross income in 2013 reached a record EUR 32.5 mio.
 
Continuing with its strategy of expanding an international network and providing flawless private banking service, the bank acquired a financial company in Luxemburg, opened a representative office in Kyrgyzstan, and founded brokerage company BB Broker Systems, SIA.
 
The bank’s team grew to include more than 30 new highly qualified staff – client relationship directors, private bankers, investment managers and consultants.
 
The increase in assets under management during the year equalled 37%, with an average return on managed assets of 6.2%, which is nearly twice the industry average on the investment portfolio management market.
 
Fiduciary deposits placed by customers increased by 65%; this type of savings is unusual for Latvia but did yield high returns – in excess of 8% per annum.
 
The bank also organised and executed several issues of corporate bonds totalling more than EUR 10 mio. Furthermore, in cooperation with leading international financial organisations, Baltikums Bank took active part in organising syndicated loans for Eastern European and CIS banks.
 
The bank continued to expand its correspondent banking network: it now works with over 40 financial institutions in more than 20 countries. There are more options for making transfers in U.S. dollars, the bank’s customers are able to execute international payments in Turkish liras.
 
An important event in December 2013 was the establishment of the Baltikums Foundation charity in Latvia. This foundation will continue implementing initiatives to support socially important projects in a systemic, planned manner.
 
In their press statement, founder and Chairman of the Council Aleksandrs Peskovs and Chairman of the Board Dmitrijs Latisevs noted: “Overall, the business environment remained complicated for the entire year, although we were able to make the market work to our advantage: to the advantage of the bank, its clients and partners. Therefore, the excellent financial performance achieved by the bank is good cause for celebration. Clients and counterparties appreciated the image of Latvia as a stable European financial centre and the bank’s efforts in shaping a favourable commercial climate. Many of them have already made use of the bank’s mediation in making major investments and establishing holding companies in Latvia.
 
We thank our customers and partners for their trust and their support. We hope to continue developing relations that work in 2014.”
 
The full Baltikums Bank annual report for 2013 will be available on the bank’s website, www.baltikums.eu, once the audit is completed.