2012 was a successful year for Baltikums Bank. The Bank demonstrated its best financial performance to date, increasing efficiency and ramping up all of its core lines of business, in every region where it is active. We have taken forward positions among financial institutions in Latvia across a whole range of key indicators such as the rate of growth of assets and funds under management, as well as return on equity.

The Bank’s Chairman of the Board and CEO Dmitrijs Latiševs noted: “During the reporting period, we have carried out a series of important activities which, coupled with positive results brought about by the Bank’s efficient growth strategy have laid the groundwork for continued dynamic development. We have made a considerable step forward on the way to achieving our strategic goals: increased profit and return on equity.”

Key audited financial performance indicators of Baltikums Bank as of 31 December 2012

• Net profit reached LVL 7.12 million (EUR 10.12million), a year-on-year increase 3.2 times;
• Gross revenue constituted LVL 20.86 million (EUR 29.681 million), or 48% higher than for the same period of 2011;
• The Bank’s assets, including assets under management, as of the reporting date have increased by 46% to reach LVL 404.28 million (EUR 575.24 million), including a 18% increase in the amount of assets under management in the past 12 months (by LVL 11.84 million, or EUR 16.84 million);
• Deposits totalled LVL 288.66 million (EUR 410.73 million), a 56% increase since the beginning of the year;
• Loans granted to businesses and financial institutions at the end of the period constituted LVL 33.54 million (EUR 47.72 million);
• The Bank’s capital adequacy ratio as of 31 December 2012 was 20%, whereas its liquidity ratio was 78%;
• ROA at the end of December was 2.66%, with a ROE of 27%;
• The capital and reserves of Baltikums Bank grew in the past ten months to LVL 29.35 million (EUR 41.76 million), with a 32% increase from 31 December 2011.

“These results were achieved in an environment of high uncertainty concerning the global economy and unstable financial markets, reaffirming the correct growth strategy selected by Baltikums Bank, the Bank’s ability to demonstrate robust growth across all of its lines of business”, added Latiševs.

The Bank is thankful to its customers and partners for their confidence and is looking forward to future cooperation.

You can view the Bank’s full audited financial report for 2012 on the Bank’s website, www.baltikums.eu.

         Uldis Zandars
         Baltikums Bank AS
         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