Banks, Financial Services, Good for Business, Latvia

International Internet Magazine. Baltic States news & analytics Tuesday, 26.05.2020, 08:50

Rietumu Banka posts EUR 18.431 mln in 2019 audited profit

BC, Riga, 31.03.2020.Print version
Rietumu Banka last year earned EUR 18.431 mln in audited profit, which is by 14.2% less than in 2018, according to the information published by the bank.

Rietumu Banka's assets on December 31, 2019,  stood at EUR 1.719 bn, which is by 11.4% or EUR 176.319 mln more than at the end of 2018.

The bank's management said in its report that the 2019 results reflect the bank's growth trends.

"New customers continue to come to the Bank, and every month we open accounts for several dozens of Latvian companies, including both promising developing enterprises and leaders in manufacturing, real estate development, logistics and other fields of economy. All of this confirms the correctness of the measures and plans that our bank has consistently put into practice over the last one and a half years, according to the new conditions and requirements implemented in Latvian financial sector, taking into account the position of regulatory bodies and international partners," the bank said in its report. 

As a result of the uncertain environment in the region the Bank has substantially scaled down its commercial lending in the CIS countries and currently has become more active in lending of medium-large scale corporates in the Baltics. 

 In addition, the Group focused on reducing concentration risks of large lending projects. This resulted in the lending portfolio being diversified over a large group of medium sized loans  rather than the portfolio being concentrated in a smaller group of larger loans. Volume of loan portfolio has stabilized in 2019. Loans and receivables to customers reached EUR 585 mln showing only slight decrease compared to the balance of 2018 of EUR 618 mln. This year the Bank plans moderate portfolio growth. The effective average interest rate for 2019 was 3.88 %. 

The results that the Bank and the Group has reached provide an excellent basis for the further development of the Bank and the Group. They reflect the appropriateness of the chosen course and the presence of key conditions for its implementation: financial and intellectual resources, a solid capital base and modern technologies, the bank said in its report.

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