AS “GE Money Bank” closed the first half of 2008 with 1,891 million lats in loss, and in virtue of considerable this year's investments it is not planned to conclude the total year 2008 with profit. AS „GE Money Bank” is the company of the US corporation General Electric (GE), which was registered in Latvia under this name on 25 April 2008. Previously the company operated under the name of AS „ Baltic Trust Bank”, and GE acquired it at the end of 2006. In 2007 active integration of AS “Baltic Trust Bank” took place introducing policies, procedures and best practices defined by the GE corporation as well as restructuring company's operations, harmonizing products and getting ready for re-branding. The basic objective of bank's shareholders in 2008 is creation of the operational and technological base - making investments to ensure stable future development of the bank therefore the bank is devoting the year 2008 to significant investments in different projects, transformation of its organizational structure, making improvements in branch network and investing in the new brand of the bank. Events, which influenced financial results of the bank: - A new operational strategy has been created for the Bank this year, which envisages focusing on local market operations and suspending of operations in certain segments, which previously ensured significant share of commission and other operating income. Therefore in the first half of 2008 net interest income has stayed in the previous level, but net operating income has decreased by 6% compared to the first six months last year. - Grounds for new bank's future growth and development are motivated employees and effective organizational structure therefore in 2008 significant attention is paid to improvement of company's internal functionality, creation of new functions, transformation of its organizational structure and investments in personnel. The Bank has made investments in Customer service call center modernization and expansion, considerable changes in structural units of risk, marketing and product development, as well as other structures. In total in the first six months this year 134 new employees have started work. The Bank is actively attracting high-level specialists, and regularly reviews employees' motivation level according to market tendencies. In the result of these processes compared to the first half of the year 2007 personnel costs have increased by 40%, but compared to the end 2007 they have increased on average by 15%. - The most significant bank's investment in the first six months of 2008 was re-branding from AS „Baltic Trust Bank” to AS „GE Money Bank” and branch network reorganization, which will continue in the second half of the year as well. In the result of these operations as well as in the result of operations mentioned above administrative costs in total grew by 33% compared to the first half of 2007. - In order to achieve set targets and development plans in Latvia, AS “GE Money Bank” pays great attention to creation of stable and perspective customer base, which would ensure further bank's development. Compared to the end of 2008 the number of customers has increased by 7%. - Credit portfolio reserves creation had the most significant influence on financial results of the first half of 2008. Taking into account the current Latvian economic situation, the bank is creating big credit portfolio reserves in a very deliberate way. After careful evaluation of potential future risks the Bank decreased its credit portfolio, which caused loss in a short term in order to protect the bank from potentially bigger loss in future. AS “GE Money Bank” will proceed with its active reserves creation policy in the future as well. Despite the Bank has not projected to close the year 2008 with profit, AS “GE Money Bank” has a very stable capital position. Capital efficiency result for end of the year is planned within 12%, which is by 4% more than the defined rate of 8%. Besides AAA credit rating of AS „GE Money Bank” shareholder GE and GE's given funding is a safe basis for bank's stability and future growth. On 30.06.08 bank's assets were 275,985 million lats, market share of Latvian banks' assets 1,2%. On 30.06.08."GE Money Bank" had given 201,622 million lats in credits, had attracted deposits in amount of 219,841 million lats. On 30.06.08. bank's assets and reserves were 32,563 million lats. Tija Ezerina GE Money Bank PR Secretary, Ph. +371 67110448, Mob.ph., +371 27876080, e-mail tija.ezerina@ge.com