In 2nd quarter of 2007 the expansion of the activity of Balti Investeeringute
Grupi Pank AS (BIG) continued.
Within the quarter the total balance sheet increased by 60%, and as of
30.06.2007 amounted to 2 269.4 million kroons. The volume of customers' loan
portfolio totalled to 1 614.5 million kroons (growth 29%). In addition to the
rapid growth of the loan portfolio the liquid assets have significantly
increased (assets in credit institutions and in Bank of Estonia), accounting for
24.9% of the balance sheet total as of 30 June 2007 (compared to the 7.9% as of
30 June 2006). As of the end of the period the owner's equity amounted to 382.1
million kroons (growth of 82.7% within a year).
In the first half-year of 2007 the company issued bonds in the total volume of
62.7 million euros (981 million kroons) in foreign markets. These issues have
also been listed on Stockholm Stock Exchange. In addition, the growth of the
volume of deposits continued, amounting to 192 million kroons by the end of the
quarter.
In the 2nd quarter of 2007 the interest income totalled to 129.8 million kroons
(236.9 million kroons from the beginning of the year). In the 2nd quarter the
net profit amounted to 32.6 million kroons (89.3 million kroons from the
beginning of the year).
In the 2nd quarter of 2007 there were no changes in the composition of the
group or in the management of the companies belonging to the group. On 1 August
2007 there was a change in the Management Board: Kaido Saar, Head of Sales and
Marketing became a member of the Management Board. Starting from 1 August 2007
the members of the Management Board are Veiko Kandla, Kaido Saar, Targo Raus.
In the first half-year of 2007 preparations were initiated for commencing the
activity of the bank in Lithuanian market. The Representation Office of the
bank, which will complete the preparatory activities for opening the branch and
for commencing business, was registered in Lithuanian commercial register on
25th of July. It is planned to start with the activity as a branch in the second
half-year of 2007.
Lithuanian consumer loan market has developed similarly to Estonian and Latvian
markets. In terms of volume, Lithuanian consumer loan market exceeds Estonian
market, however, the volume of consumer loans per resident and also as a ratio
to gross domestic product Lithuania is significantly being overridden by the
respective figures of Estonia and Latvia. Proceeding from the abovementioned
Balti Investeeringute Grupi Pank AS has decided to enter the Lithuanian market.
By the end of the 2nd quarter of 2007 the network of offices of Balti
Investeeringute Grupi Pank had increased to 29 offices, including 17 in Estonia
and 12 in Latvia.
As of 30 June 2007 there are 354 employees working in the group. In the first
half-year of 2007 the fees paid to the members of the Management Board of the
group totalled to 1.280 million kroons and the fees paid to the members of
Supervisory Board totalled to 0.332 million kroons.
--------------------------------------------------------------------------------
| Group's Balance Sheet | | |
--------------------------------------------------------------------------------
| | (in millions of kroons) |
--------------------------------------------------------------------------------
| | 30.06.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
| Assets | | |
--------------------------------------------------------------------------------
| Cash on hand | 0.008 | 0.005 |
--------------------------------------------------------------------------------
| Receivables | 2 127.491 | 1 132.608 |
--------------------------------------------------------------------------------
| Receivables from central bank | 164.524 | 96.186 |
--------------------------------------------------------------------------------
| Receivables from credit institutions | 400.276 | 44.728 |
--------------------------------------------------------------------------------
| Receivables from credit institutions' customers | 1 063.352 | 767.363 |
--------------------------------------------------------------------------------
| Other receivables | 551.146 | 245.150 |
--------------------------------------------------------------------------------
| Allowance for credit losses (-) | - 51.807 | - 20.819 |
--------------------------------------------------------------------------------
| Bonds and fixed rate securities | 18.759 | - |
--------------------------------------------------------------------------------
| Intangible assets | 8.053 | 6.388 |
--------------------------------------------------------------------------------
| Tangible assets | 20.338 | 18.087 |
--------------------------------------------------------------------------------
| Investment properties | 5.297 | 5.358 |
--------------------------------------------------------------------------------
| Other assets | 1.719 | - |
--------------------------------------------------------------------------------
| Accrued income and prepaid expenses | 87.695 | 48.551 |
--------------------------------------------------------------------------------
| Total assets | 2 269.360 | 1 210.997 |
--------------------------------------------------------------------------------
| Liabilities and owners' equity | | |
--------------------------------------------------------------------------------
| Payable | 343.659 | 287.371 |
--------------------------------------------------------------------------------
| Payable to credit institutions | 150.480 | 159.250 |
--------------------------------------------------------------------------------
| Payable to credit institutions' customers | 192.180 | 126.970 |
--------------------------------------------------------------------------------
| Other payables | 0.999 | 1.151 |
--------------------------------------------------------------------------------
| Liabilities represented by securities | 1 345.276 | 481.687 |
--------------------------------------------------------------------------------
| Issued bonds | 1 345.276 | 481.687 |
--------------------------------------------------------------------------------
| Accrued expenses and deferred income | 28.215 | 22.106 |
--------------------------------------------------------------------------------
| Subordinated liabilities | 170.121 | 108.030 |
--------------------------------------------------------------------------------
| Total liabilities | 1 887.271 | 899.194 |
--------------------------------------------------------------------------------
| Share capital | 80.000 | 80.000 |
--------------------------------------------------------------------------------
| Legal reserve | 8.000 | 4.000 |
--------------------------------------------------------------------------------
| Other reserves | - | - |
--------------------------------------------------------------------------------
| Unrealised exchange differences | 3.775 | 0.437 |
--------------------------------------------------------------------------------
| Retained profit | 200.980 | 53.537 |
--------------------------------------------------------------------------------
| Profit for the current accounting period | 89.334 | 173.829 |
--------------------------------------------------------------------------------
| Total owners' equity | 382.089 | 311.803 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities and owners' equity | 2 269.360 | 1 210.997 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group's Balance Sheet | | |
--------------------------------------------------------------------------------
| | (in millions of euros) |
--------------------------------------------------------------------------------
| | 30.06.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
| Assets | | |
--------------------------------------------------------------------------------
| Cash on hand | 0.001 | - |
--------------------------------------------------------------------------------
| Receivables | 135.971 | 72.387 |
--------------------------------------------------------------------------------
| Receivables from central bank | 10.515 | 6.148 |
--------------------------------------------------------------------------------
| Receivables from credit institutions | 25.582 | 2.859 |
--------------------------------------------------------------------------------
| Receivables from credit institutions' customers | 67.960 | 49.043 |
--------------------------------------------------------------------------------
| Other receivables | 35.225 | 15.668 |
--------------------------------------------------------------------------------
| Allowance for credit losses (-) | - 3.311 | - 1.331 |
--------------------------------------------------------------------------------
| Bonds and fixed rate securities | 1.199 | - |
--------------------------------------------------------------------------------
| Intangible assets | 0.515 | 0.408 |
--------------------------------------------------------------------------------
| Tangible assets | 1.300 | 1.156 |
--------------------------------------------------------------------------------
| Investment properties | 0.338 | 0.342 |
--------------------------------------------------------------------------------
| Other assets | 0.110 | - |
--------------------------------------------------------------------------------
| Accrued income and prepaid expenses | 5.605 | 3.103 |
--------------------------------------------------------------------------------
| Total assets | 145.039 | 77.396 |
--------------------------------------------------------------------------------
| Liabilities and owners' equity | | |
--------------------------------------------------------------------------------
| Payable | 21.964 | 18.365 |
--------------------------------------------------------------------------------
| Payable to credit institutions | 9.617 | 10.177 |
--------------------------------------------------------------------------------
| Payable to credit institutions' customers | 12.283 | 8.115 |
--------------------------------------------------------------------------------
| Other payables | 0.064 | 0.073 |
--------------------------------------------------------------------------------
| Liabilities represented by securities | 85.979 | 30.785 |
--------------------------------------------------------------------------------
| Issued bonds | 85.979 | 30.785 |
--------------------------------------------------------------------------------
| Accrued expenses and deferred income | 1.803 | 1.413 |
--------------------------------------------------------------------------------
| Subordinated liabilities | 10.873 | 6.904 |
--------------------------------------------------------------------------------
| Total liabilities | 120.619 | 57.467 |
--------------------------------------------------------------------------------
| Share capital | 5.113 | 5.113 |
--------------------------------------------------------------------------------
| Legal reserve | 0.511 | 0.256 |
--------------------------------------------------------------------------------
| Other reserves | - | - |
--------------------------------------------------------------------------------
| Unrealised exchange differences | 0.241 | 0.028 |
--------------------------------------------------------------------------------
| Retained profit | 12.845 | 3.422 |
--------------------------------------------------------------------------------
| Profit for the current accounting period | 5.710 | 11.110 |
--------------------------------------------------------------------------------
| Total owners' equity | 24.420 | 19.929 |
--------------------------------------------------------------------------------
| | - | |
--------------------------------------------------------------------------------
| Total liabilities and owners' equity | 145.039 | 77.396 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group's Income Statement | | | | |
--------------------------------------------------------------------------------
| | (in millions of kroons) |
--------------------------------------------------------------------------------
| | 2Q2007 | 2Q2006 | 1H 2007 | 1H2006 |
--------------------------------------------------------------------------------
| Interest income | 129.787 | 63.474 | 236.944 | 114.385 |
--------------------------------------------------------------------------------
| Interest income from credit | 86.391 | 54.005 | 164.155 | 97.090 |
| institution's operations | | | | |
--------------------------------------------------------------------------------
| Other interest income | 43.396 | 9.469 | 72.789 | 17.295 |
--------------------------------------------------------------------------------
| Interest expenditure | 35.362 | 6.085 | 48.021 | 10.548 |
--------------------------------------------------------------------------------
| Interest expenditure from | 35.247 | 5.931 | 47.746 | 10.291 |
| credit institution's | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
| Other interest expenditure | 0.115 | 0.154 | 0.275 | 0.257 |
--------------------------------------------------------------------------------
| Net interest income | 94.425 | 57.389 | 188.923 | 103.837 |
--------------------------------------------------------------------------------
| Net service charges | - 0.024 | - 0.081 | - 0.055 | -0.062 |
--------------------------------------------------------------------------------
| Income from service charges | 0.061 | 0.024 | 0.098 | 0.073 |
--------------------------------------------------------------------------------
| Expenditure on service | 0.085 | 0.105 | 0.153 | 0.135 |
| charges | | | | |
--------------------------------------------------------------------------------
| Net profit/loss from | - 1.647 | - 0.086 | - 1.452 | -0.098 |
| financial transactions | | | | |
--------------------------------------------------------------------------------
| Profit/income | 0.271 | - 0.008 | 2.174 | - |
--------------------------------------------------------------------------------
| Loss/expenditure | 1.918 | 0.078 | 3.626 | 0.098 |
--------------------------------------------------------------------------------
| Administrative expenditures | 38.142 | 18.676 | 66.314 | 32.791 |
--------------------------------------------------------------------------------
| Wages and salaries | 12.799 | 5.640 | 21.710 | 9.577 |
--------------------------------------------------------------------------------
| Social tax, health insurance | 3.945 | 1.795 | 6.649 | 3.044 |
| contribution | | | | |
--------------------------------------------------------------------------------
| Pension (non-state) | - | - | - | - |
--------------------------------------------------------------------------------
| Other administrative | 21.398 | 11.241 | 37.955 | 20.170 |
| expenditures | | | | |
--------------------------------------------------------------------------------
| Change in the value of | - 1.339 | - 0.596 | - 2.439 | -1.099 |
| investment properties, | | | | |
| tangible and intangible | | | | |
| assets | | | | |
--------------------------------------------------------------------------------
| Profit/income | - | - | - | - |
--------------------------------------------------------------------------------
| Loss/expenditure | 1.339 | 0.596 | 2.439 | 1.099 |
--------------------------------------------------------------------------------
| Change in the value of | - 22.741 | - 3.466 | - 32.842 | -3.057 |
| receivables and | | | | |
| off-balance-sheet | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Profit/income | 0.016 | 0.360 | 0.016 | 0.319 |
--------------------------------------------------------------------------------
| Loss/expenditure | 22.757 | 3.826 | 32.858 | 3.376 |
--------------------------------------------------------------------------------
| Other operating income and | 5.103 | 2.773 | 8.594 | 6.164 |
| expenditures (+/-) | | | | |
--------------------------------------------------------------------------------
| Other operating income | 12.171 | 5.289 | 21.045 | 10.244 |
--------------------------------------------------------------------------------
| Other operating expenditures | 7.068 | 2.516 | 12.451 | 4.080 |
--------------------------------------------------------------------------------
| Profit/loss before tax | 35.635 | 37.257 | 94.415 | 72.894 |
--------------------------------------------------------------------------------
| Income tax expenditure | 3.005 | 0.874 | 5.081 | 1.928 |
--------------------------------------------------------------------------------
| Income tax for the | 3.005 | 0.874 | 5.081 | 1.928 |
| accounting period | | | | |
--------------------------------------------------------------------------------
| Net profit/loss for the | 32.630 | 36.383 | 89.334 | 70.966 |
| accounting period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group's Income Statement | | | | | |
--------------------------------------------------------------------------------
| | (in millions of euros) |
--------------------------------------------------------------------------------
| | 2Q2007 | 2Q2006 | 1H2007 | 1H2006 |
--------------------------------------------------------------------------------
| Interest income | 8.292 | 4.054 | 15.143 | 7.310 |
--------------------------------------------------------------------------------
| Interest income from | 5.520 | 3.451 | 10.491 | 6.205 |
| credit institution's | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
| Other interest income | 2.773 | 0.604 | 4.652 | 1.105 |
--------------------------------------------------------------------------------
| Interest expenditure | 2.260 | 0.389 | 3.069 | 0.674 |
--------------------------------------------------------------------------------
| Interest expenditure from | 2.253 | 0.379 | 3.051 | 0.674 |
| credit institution's | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
| Other interest expenditure | 0.007 | 0.010 | 0.018 | 0.016 |
--------------------------------------------------------------------------------
| Net interest income | 6.032 | 3.665 | 12.074 | 6.636 |
--------------------------------------------------------------------------------
| Net service charges | - 0.001 | - 0.005 | - 0.004 | - 0.004 |
--------------------------------------------------------------------------------
| Income from service | 0.004 | 0.002 | 0.006 | 0.005 |
| charges | | | | |
--------------------------------------------------------------------------------
| Expenditure on service | 0.005 | 0.007 | 0.010 | 0.009 |
| charges | | | | |
--------------------------------------------------------------------------------
| Net profit/loss from | - 0.106 | - 0.006 | - 0.092 | - 0.006 |
| financial transactions | | | | |
--------------------------------------------------------------------------------
| Profit/income | 0.017 | - 0.001 | 0.139 | - 0.001 |
--------------------------------------------------------------------------------
| Loss/expenditure | 0.123 | 0.005 | 0.231 | 0.005 |
--------------------------------------------------------------------------------
| Administrative | 2.438 | 1.193 | 4.237 | 2.096 |
| expenditures | | | | |
--------------------------------------------------------------------------------
| Wages and salaries | 0.818 | 0.360 | 1.387 | 0.612 |
--------------------------------------------------------------------------------
| Social tax, health | 0.252 | 0.115 | 0.425 | 0.195 |
| insurance contribution | | | | |
--------------------------------------------------------------------------------
| Pension (non-state) | - | - | - | - |
--------------------------------------------------------------------------------
| Other administrative | 1.368 | 0.718 | 2.426 | 1.289 |
| expenditures | | | | |
--------------------------------------------------------------------------------
| Change in the value of | - 0.038 | - 0.156 | -0,156 | -0,07 |
| investment properties, | | | | |
| tangible and intangible | | | | |
| assets | | | | |
--------------------------------------------------------------------------------
| Profit/income | - | - | - | - |
--------------------------------------------------------------------------------
| Loss/expenditure | 0.038 | 0.156 | 0,156 | 0,07 |
--------------------------------------------------------------------------------
| Change in the value of | - 1.453 | - 0.222 | - 2.099 | - 0.196 |
| receivables and | | | | |
| off-balance-sheet | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Profit/income | 0.001 | 0.023 | 0.001 | 0.020 |
--------------------------------------------------------------------------------
| Loss/expenditure | 1.454 | 0.245 | 2.100 | 0.216 |
--------------------------------------------------------------------------------
| Other operating income and | 0.326 | 0.177 | 0.549 | 0.394 |
| expenditures (+/-) | | | | |
--------------------------------------------------------------------------------
| Other operating income | 0.778 | 0.338 | 1.345 | 0.655 |
--------------------------------------------------------------------------------
| Other operating | 0.452 | 0.161 | 0.796 | 0.261 |
| expenditures | | | | |
--------------------------------------------------------------------------------
| Profit/loss before tax | 2.322 | 2.260 | 6.035 | 4.657 |
--------------------------------------------------------------------------------
| Income tax expenditure | 0.192 | 0.056 | 0.325 | 0.123 |
--------------------------------------------------------------------------------
| Income tax for the | 0.192 | 0.056 | 0.325 | 0.123 |
| accounting period | | | | |
--------------------------------------------------------------------------------
| Net profit/loss for the | 2.130 | 2.204 | 5.710 | 4.534 |
| accounting period | | | | |
--------------------------------------------------------------------------------
Full copy of Public Interim report is available on Tallinn Stock Exchange
internet page and at the home page of Balti Investeeringute Grupi Pank AS at
http://www.big.ee.
Targo Raus
Balti Investeeringute Grupi Pank AS
Chairman of the Board
Phone: 735 0923
