The Audited Profit of AS “Akciju komercbanka “Baltikums”” for the First Half of the Year Amounted to LVL 0.71 Million


The international auditor company KPMG Baltic has performed audit of concern AS
“Akciju komercbanka “Baltikums”” (Baltikums Banka). 

In the first half of 2010, Baltikums Banka continued its stable growth, which
is proved by key financial indicators and improvement of its position in the
chosen niches. 

Conservative approach to risk management, persistency in the strategic
objectives, and establishment of long-term relations with customers - these are
the three pillars of success of the dynamically growing and modern Baltikums
Banka. 

On the tenth year of its operations, the bank successfully functions in Riga,
Limassol, Kyiv, and Almaty, as well as has representation in Russia. Baltikums
Banka and its foreign branches employ an international team of 180
professionals. 

Financial results

The audited profit of Baltikums Banka for the first half of the year amounted
to LVL 0.71 million. As of 30 June this year, the Bank's assets made up LVL
132.98 million. At the end of June, Baltikums Banka issued LVL 27.16 million in
loans and in mortgage loans - just LVL 13 thousand. The amount of attracted
deposits was LVL 107.05 million by the end of June. 

Such results became possible thanks to the Bank's well-thought-out and precise
strategy and its professional team. Despite a decrease in the assets resulting
from a drop in the bank customers' turnover Baltikums Banka is one of the
Latvian banks that continue operating with profit, the number of opened
customer accounts keeps growing, efficiency of operations increases, funds are
invested in information technologies and expansion of the Bank's international
branch as competition drops during the crisis. 

Baltikums Banka still maintains very high liquidity and balance structure
indicators and the high capital adequacy significantly exceeds that required by
supervisory authorities. 

Major achievements

Currently, the Bank focuses on three basic trends of its operations: Private
Banking, Corporate Banking and Wealth Management. 

Under the concept Relations That Work, Baltikums Banka set an objective to
establish such relations with its customers that would allow most prompt and
clear execution of the customers' orders. In the first half of the year,
Baltikums Banka updated the enhanced Internet Bank version that is one of the
crucial elements in relations among the customer and the Bank. Having improved
the design and functionality of the Internet Bank the Bank offered a solution
that is more convenient, personified, and adjusted to needs of the customers. 

This year, Baltikums Banka has successfully redeemed the third issue bonds.
Earlier the Bank successfully redeemed its first and second issues, as well as
the first issue of credit-linked notes in Latvia. 

The investors who purchased the Bank's bonds receive stable regular income from
them. The bank's bonds have stable business prospects in future improving the
Bank's competitive advantages in the chosen niches of Corporate Banking and
Private Banking. The performance results achieved by Baltikums Banka shows that
the Bank has been successfully implementing its potential in rendering its
services to companies and wealthy individuals. 

In the future, the Bank might consider more bond issues depending on the
situation in the financial markets and customer demand for financing of
promising projects. 

German Commerzbank AG highly rated quality of commercial payments and transfers
among financial institutions executed by Baltikums Banka and awarded it with
the STP Award 2009 - Excellent Quality in the Delivery of Commercial Payments
and Financial Institution Transfers. The award proves the professionalism of
the Bank employees and quality of the banking technologies that ensure
automatic execution of payments. 

Baltikums Banka constantly improves its business model introducing latest
technologies and methodology. However, our philosophy and business approach
remain unchanged. Baltikums Banka is an independent private bank and a family
business. The Bank has Latvian origin and its objective is to join leading
independent private banks in the European Union by providing modern and sought
after banking products, services and solutions aimed at facilitating business
and at keeping and growing wealth of our customers. 

Baltikums Banka is famous for its consequent approach to establishing and
maintaining mutually beneficial relations with its customers. Paying close
attention to research and new developments, we create products, services, and
solutions that are sought after, first of all, because they are created in our
customers' interests and represent our response to the customers' needs and
desires. Baltikums Banka was established as a commercial bank and its
entrepreneur's spirit is close and familiar to customers: private
entrepreneurs, high net worth individuals, and professional investors. 

Besides, the Bank's objective is not only provide its customers with
professional and quality service but also to join forces in order to create
environment for business, capital, assets, and risks management, to give our
customers, in addition to financial benefits, more stability and confidence
regarding their, their families', and their partners' future. Here we see our
responsibility as private bankers. 

Our values remain unchanged as before: independence and objective approach,
security, responsibility, and comprehensive protection of our customer's
interests. We are grateful to all our customers for cooperation and trust in
these complicated times and look forward to continuing our successful
cooperation in the future. 

Subsidiaries

Baltikums Banka concern includes “ASIPS Baltikums Asset Management”, SIA
„Baltikums Līzings”, SIA „Konsulting Invest”, ООО «Балтикумс Траст» (Kiev), ООО
«Балтикумс Траст» (St.Petersburg), OOO „Baltikums Trast” (Moscow) un AAS
„Baltikums”. The profit of Baltikums Banka group amounted to LVL 0.76 million
in this first half of the year, whereas the assets reached LVL 135.43 million
in this period. 

About Baltikums Banka concern

Baltikums Banka is a counterpart of the Latvian banking group Baltikums Bankas
Grupa and is by 100% owned by family holdings of the group's shareholders. The
objective of Baltikums Banka is to join the European leading independent
private banks by providing modern and sought-after products, services, and
solutions for business development, for keeping and enhancing wealth of our
customers. 

Uldis Zandars
AS „Akciju komercbanka „Baltikums””
Deputy of Head of the Product Development and Marketing Department
Tel.: +371 67 031 408, +371 29 206 536
E-mail: uldis.zandars@baltikums.eu

Attachments

pusgada_parskats_en_10_06_30.pdf