Baltic States – CIS, Banks, Financial Services, Latvia

The amount of the bank's assets decreased in 2014 in part due to market prices and because of devaluation of the Russian ruble at the end of 2014, which had a significant impact on some of the Norvik group's deals.

The bank's principal operations were nevertheless successful in 2014 – profit before provisions amounted to EUR 9 million, but the amount of provisions was EUR 52 million, hence the loss of EUR 43 million. The provisions were meant to offset the bank's past investments and the impact of the economic downturn in Russia in 2014. The bank's activities aimed at increasing its market share and consolidating its reputation, as well as additional investments in share capital have created solid foundations for further development. The bank knows very well what risks and opportunities there are in Russia and Europe, and sees great potential for growth on the C.I.S. and Russian markets in the medium term, said Norvik banka’s CEO Oliver Ronald Bramwell.

2014 was an overall successful development year for Norvik banka, according to the bank's audited annual report. Net losses notwithstanding, the bank's income from main operations and assets increased last year.

Norvik banka’s assets increased 23.1% or EUR 183 million in 2014, amounting to EUR 976 million. Norvik group's assets increased 49% to EUR 1.16 billion as of December 31, 2014.

The amount of deposits attracted by the bank increased 17.7% to EUR 126 million, and the bank's management is pleased with the bank's performance in 2014, added Bramwell.

Norvik banka has the largest number of branches and customer service centers in Latvia – the head offices, six branches, and 67 customer service centers in 16 Latvian cities and towns.

The bank's capital adequacy ratio was 14.48% at the end of December 2014 – up from 10.76% at the end of 2013.

Norvik group's capital adequacy ratio was 8.46% at the end of last year, up from 8.02% in December 2013.