Banks, Financial Services, Latvia

In 2016, the bank set aside impairment allowances of EUR 7.65 mln, basically in respect of restructured loans and loans in the process of recovery. In addition, the bank re-evaluated its investment in the exposure in Great Britain. The bank's management recognized the impairment allowance totalling EUR 3.27 mln.

The assets of the bank reached EUR 308.4 mln at the end of 2016, down 44 % or EUR 242.037 mln from the end of 2015.

The operating income increased to reach EUR 28.25 mln having demonstrated a 42.8 % growth over the previous year. "The positive dynamics of the income growth was primarily fostered by trade transactions whose income increased by EUR 8.57 mln. The operating income saw a positive significant impact attributed largely to a one-time gain on sale of Visa Europe Ltd share, the sale proceeds totalled EUR 2.79 mln.

The fee and commission income shrank by 24.14 %, mainly because of suspension of e-commerce operations. Income gained from brokerage operations. Income gained from brokerage operations surged by 23.4 %," the bank's management said.

The bank's operating expense saw increase of up to EUR 16.49 mln, a 9.3 % rise over the past year.

ln 2016, the composition of the group underwent significant changes. The bank discontinued its equity participation in BIB Consulting while acquiring Claim Management whose core business purpose is to manage and exercise the right of claim. According to the new strategy, the bank established its subsidiary BIB Altemative Investment Management on December 5, 2016. The subsidiary will manage altemative investment funds. In 2017, the bank intends to apply for the licence and to register the first altemative investment fund. The group still comprises BIB Real Estate, Gaujas Ipasumi and Global Investments whose core business activity is real estate management.

The bank's liquidity ration at the end of last year was 70.01 %, while the capital adequacy stood at 16.48%.

In 2015, Baltic International Bank sustained loss worth EUR 1.797 mln, while the group's loss was EUR 1.864 mln.

The key shareholders of Baltic International Bank are Valerijs Belokons (69.9%) and Vilorijs Belokons (30%). At the end of 2016, Baltic International Bank was the 13th largest bank in Latvia in terms of assets, according to the data of the Latvian Association of Commercial Banks.