AS "GE Money Bank" non-audited financial statement for period until 31.12.2008

2008 was the year of rapid events and changes in Latvia and in entire world,
but exactly this year on 23 April, concluding the integration of AS Baltic
Trust Bank and AS GE Money, operations in Latvian financial market started a
bank of the General Electric corporation - AS “GE Money Bank”. 
General Electric (GE) is one of the world largest, most respected and safest
companies operating in five business sectors with 130-year experience in more
than 160 countries, employing more than 300,000 attractive, energetic and
creative employees. Since 1896 and up to now GE has been included in the Dow
Jones Industrial index, company's Y2008 profit was 18 billion USD, but in terms
of income it was the third best year in the GE history with 183 billion dollars
in revenues. 
GE Money is one of General Electric businesses wherein the corporation has
already been operating for 78 years in more than 50 countries. It's one of the
most rapidly growing GE sectors trusted by 130 million customers thanks to work
of more than 60,000 employees and a full range of financial services provided. 

Operating activity of the bank in 2008
For GE Money Bank in Latvia 2008 was the year of investments and changes as the
principal objective was creation of an operational and technological base for
the newly established bank. In order to ensure stable long-term development of
the bank the business strategy was changed, significant investment in different
projects were made, the organizational structure reshaped, changes in the
board, council took place, the branch network improved, the bank's brand
changed, various processes and resources optimized, as well as business
efficiency increased. 
In addition the bank actively reacted to the previous year's economic events,
significantly improving risk management infrastructure in the company that
allows regular identification, monitoring and management of bank's financial
risks with the help of different methods including forecasts of macroeconomic
scenarios and stress testing of related risks. A very conservative approach was
implemented in customer solvency risk assessment and active credit portfolio
reserves in the amount of 11.3 million LVL or 5.4% of the credit portfolio was
created, thus securing the bank also against the future economic changes. 
Based on this conservative business approach and investments in GE Money Bank
future growth, the bank concluded the previous year with unaudited loss of
14.961 million LVL. At the end of 2008 Bank's assets comprised 253.8 million
LVL, 197.3 million LVL were allocated in loans, the deposit volume was 204.4
million LVL. 
Despite numerous challenges, the bank has gained trust of Latvian consumers.
The number of GE Money Bank customers has grown with each month - 7,000
commercial customers and 159,000 private customers trust the bank at the
moment. Latvian research data acknowledge that GE Money Bank is the fourth most
recognized bank, the fifth most admired bank and the most energetic or the most
rapidly growing bank in Latvia. 
 The biggest values of GE Money Bank to the Latvian society are its rich
international experience in various markets all over the world, security and
reliability, a team of highly professional employees, a wide offer of products
and services, and one of the largest branch networks in Latvia. 

Subsidiary companies
As a part of the Bank “GE Money Assets Management” and the stock joint company
„GE Money Atklātais pensiju fonds” operate as well. Upon establishment of the
new bank in Latvia - GE Money Bank - the following products were introduced:
the 2nd pillar pension plans “Džezs” and “Blūzs”, the 3rd pillar pension plans
“Rumba” and “Tvists”, investment funds “GE Money Eastern Europe Balanced fund”,
„GE Money European Bond fund” and „GE Money Eastern Europe Equity fund”. 
In 2008 the total assets volume grew more than two times and reached 9.1
million LVL. The number of customers doubled to 24,000. The 2nd pillar pension
plans comprised 2% of the market at the end of the year. 

Corporate citizenship 
The goal of GE Money Bank in any country and also in Latvia is not just to
offer products to the society, but also to get involved in the public sphere by
providing support to it. 
This year with the aggravating economic situation GE Money Bank has taken
active part and provided support to development of operations of the
nongovernmental organization Money Planning Center in the field of society's
financial education on personal budget planning (the organization was
established in May 2007 by AS GE Money, a company of the GE Money companies
group in Latvia, in cooperation with the Riga International School of Economics
and Business Administration). With the help of GE Money Bank  there was created
financial literacy web page www.vissparnaudu.lv, organised different projects
and activities to make people understand financial matters and budget planning,
as well as an innovative solution in personal budget planning was introduced  -
a downloadable program in mobile phones “Money Controller”. 
GE Money Bank has allocated financial support to different events for wide
public groups - for example, town festivals in Latvia's regions, GE Money
Streetball competition, GE Money Grand Prix sport dance festival and other. 
The Bank has willingly shared it international experience by taking part in
different seminars, conferences, actively providing comments to mass media and
cooperating with state and regulatory institutions. 
GE Money Bank in any country and also in Latvia provides support to the society
not only with bank's financial resources, but also by voluntary involvement of
its employees. For example, this year the bank organized voluntary project
“Responsibility Week” caring for society's security - bank organized sawing
down of dangerous trees in several Latvia's towns, tidying up the surrounding
area with the help of more than 50 employees and delivering wood to pensioners.
Employees of the bank have also made many donations to Latvia's low-income
people organizations. 
The bank also considers its employees as it's biggest value therefore
significant work in favor of employees has been done in the company - reshaping
the organizational structure for more effective operations, improving processes
and procedures, establishing GE Money Bank Training Centre for employees with a
wide offer of training programs and developing the internal communication
environment by creating new information channels, traditions, a film about GE
Money Bank establishment and other activities. 

Financial stability and future growth
Bank's stability and future growth is acknowledged also by positions of its
owner General Electric - a very high credit rating and funding provided to the
bank. Thus GE Money Bank is one of the safest banks in Latvia at the moment as
it mostly gains funding from diversified business corporation. 
The total funding from GE reached 110.78 million EUR at the end of the year
(available within the concluded agreements - 300 million EUR) that testifies
significant shareholder support to the Bank and assent on the chosen
operational strategy. The shareholder resolved to increase the capital of the
bank for the purpose of securing the bank in the current situation even more -
the subordinate capital of 11 million EUR in December 2008 and 30 million LVL
investment in the bank's equity capital in Q1 2009. 
Also according to requirements of the Finance and Capital Market Commission the
capital position of GE Money Bank is very good - the capital adequacy indicator
as of the end of the year is 11.68% and upon the capital increase in Q1 2009
the capital adequacy indicator is forecast within 20% that almost 2.5 times
exceeds the standard defined by the Financial and Capital Market Commission.
While the bank maintains the liquidity indicator above 40% (the standard is
30%) and bank's liquidity is secured also by availability of the long-term GE
credit line the volume of which is equal to the volume of the deposit base. 
General Electric has significant experience in periods of economic changes in
different countries therefore the operational strategy followed by GE Money
Bank is strictly monitored to ensure its compliance to the best international
practices and the present situation. General Electric sees growth in Latvia as
Latvia's GE Money Bank was joined to the GE Money Central and Eastern Europe
region this year, which is one of the most strategically important GE Money
regions in the world. 
Between the balance date and the date of singing this financial report there
have been no events that could significantly influence the results of the
reporting period. 

Concluding the report we would like to express gratitude to employees of the
Bank for work contributed to bank's growth and to customers for trust and
loyalty to the bank! 


Chairman of the board Dmitrijs Cimbers
Board member Inga Vagele



Tija Ezeriņa
Press secretary
GE Money Bank
Ph: +371 67 110 448
Mob. ph.: +371 27876080
8b G.Astras Street, Riga, LV-1082