OREANDA-NEWS. In the first nine months of 2014 DNB group in Latvia has earned net profit in amount of 14.8 million euro, which is 4.7 times more than in the respective period a year ago.

The operational income in the same period amounted to 47 million euro. Costs have been decreased by 6%, reaching 31.4 million euro. The amount of loan loss provisions has also decreased significantly making only 321 thousand euro compared to 12.7 million euro a year ago.

The amount of deposits attracted by DNB banka at the end of September reached 1.05 billion euro, which is 7% more than at the end of respective period a year ago. The amount of deposits of private individuals has increased even more, by 11% in comparison with the respective period of 2013. The increase of the deposit portfolio has allowed to improve the local funding ratio, which reached 65% at the end of the third quarter 2014 (at the end of third quarter of 2014 it was 58%).

Entire banking sector is experiencing the decrease of loan portfolio due to loan portfolio amortization and the low overall demand from households and companies for new lending. Due to the factors mentioned previously, as well as the continuous work of DNB banka aimed at improving the quality of its loan portfolio, the net loan portfolio of DNB in Latvia has decreased by 0.1 billion during the first nine months of 2014, reaching 1.6 billion euro at the end of September 2014.

In the third quarter of 2014 DNB banka continued to pay special attention to widening and modernization of distribution channels of the banking products and services, as well as educating the customers on the necessity to use electronic channels in order to receive financial services more quickly and conveniently. The number of purchases, using payment cards issued by DNB, has increased by 23% during nine months of 2014, and the number of money transfers in internet bank of DNB has increased by 5%, thus proving that the customers of DNB appreciate the possibility to use non-cash solutions and remote services in ensuring everyday financial necessities.

In the second quarter of 2014 DNB banka began to sell white label insurance, giving the possibility to its customers to receive the most significant financial services connected to purchase of real estate or car together in one place – both mortgage loan and leasing, and real estate and KASKO insurance.

The subsidiary of DNB banka, IPAS DNB Asset Management has worked successfully in the first nine month of 2014 as well. The pension plans managed by DNB Asset Management have increased by 16% in the respective period, amounting to 191 million euro. The profitability of pension plans managed by DNB Asset Management has been the highest (among balanced and active plans) or the second highest (among conservative plans) among all managers of 2nd pension pillar funds in Latvia.