Banks, Financial Services, Latvia

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Signet Bank reports EUR 3 mln unaudited loss for 2017

BC, Riga , 06.03.2018.Print version
Latvia’s Signet Bank (previously Bank M2M Europe) closed last year with a loss of EUR 3.084 mln in contrast to profit a year before, according to unaudited data, reports LETA/BNS.

The banking group sustained a loss of EUR 3.104 mln in 2017 contrast to profit earned in 2016.

The bank’s management said in the report that the company suffered the loss as it was writing off a deferred tax liability and as a result of a revaluation of financial instruments.

As at December 31, 2017, Signet Bank’s assets were worth EUR 171.8 mln, down 2.8% from the end of 2016 when the bank’s assets stood at EUR 176.835 mln.

Signet Bank’s loan portfolio contracted 26 % from the end of 2016 to EUR 44.082 mln at the end of last year.

The bank’s management indicated that Signet Bank’s strategy had not changed and focused on serving wealthy individuals. At present, the bank counts 506 families as its clients.

The bank’s management also noted that in order to demonstrate compliance with the best international practice, Signet Bank has hired independent international auditors to examine its AML/CTF program.

U.S.-based companies Exiger LLC and Lewis Baach Kaufmann Mdlemiss examined the bank’s anti-money laundering program at the end of 2016. By now, Signet Bank has already implemented over 90% of the recommendations provided by the auditors. In December 2017, the bank initiated an additional examination of its internal AML/CTF control system.

At the end of 2017, the bank’s liquidity ratio was 86.56% against the minimum requirement of 60%.

In 2016, Signet Bank earned EUR 311,000 in profit, while the banking group’s profit was EUR 336,000.

The bank was established in 1992 under the name Latvian Business Bank. Since 2013, when it was acquired by VMHY co-owner Andrey Vdovin, the bank operated under the name of Bank M2M Europe. Its strategy was focused on servicing international high net worth clients. In September 2017, the bank was renamed to Signet Bank as Signet Global Investors Limited, Hansalink and became its principal owners.

At the end of September 2017, Bank M2M Europe was the 19th largest bank in Latvia by assets, according to information from the Association of Latvian Commercial Banks.

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