Latvijas Hipoteku un zemes banka
Operational Results of Mortgage Bank for 4 Months of 2011 – the Bank has been working with a profit of 2 million lats
Latvijas Hipoteku un zemes banka 11.05.2011 10:38 Dissemination of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Riga, 2011-05-11 10:38 CEST (GLOBE NEWSWIRE) -- Improvement of the economic situation, implementation of prudent financial policy at the bank and operational optimization carried out in the previous periods find their reflection in the operational results of the state-owned JSC 'Mortgage and Land Bank of Latvia' - the Bank has closed the first 4 months of the year 2011 with a profit of 2 million lats. Rolands Paņko - Board Chairman of Mortgage Bank: 'The crisis's effect on the operational results of the bank has softened and Mortgage Bank returns to growth in 2011. We are pleased to announce that this year the business start-ups have been granted by 63% more financing from the Start-ups Programme than in the respective period last year. It shows that revival of the economy is matched with increase of entrepreneurial activities and nourishes optimism about further growth of the national economy. In 2011, being in the process of transformation to a development financial institution, the Mortgage Bank proceeds with targeted implementation of the state aid programmes. At the end of April we completely up-took the appropriations of the Programme for Working Capital Loans to Farmers in the amount of 10 mln lats. Now the programme is continued by on-lending the repaid resources. In March, using only its own funds, the Mortgage Bank repaid in full all foreign syndicated loans maintaining a high liquidity ratio. It was achieved by implementation of prudent financial policy.' Operational Results The Mortgage Bank's profit before provisions and taxes was 2.8 mln lats that was by 54% more than in the respective period last year. In the first 4 months of this year income amounted to 7.5 mln lats which was by 8% more than in the same period in year 2010. In the first 4 months of this year the profit of the Mortgage Bank was 2 mln lats. Assets In the first 4 months of year 2011 the gross assets have decreased by 65 mln lats or 8% reaching 742.9 mln lats at the end of April. The gross loans' portfolio shrunk by 4.3% falling to 566.1 mln lats split between development loans' portfolio amounting to 232.2 mln lats (41 % of the portfolio) and commercial loans' portfolio amounting to 333.9 mln lats (59% of the portfolio). Deposits In the first 4 months of this year, compared with the respective period last year, the total deposits increased by 6.7% reaching 349 mln lats. The volume of term deposits increased by 1.5%. Number of Customers The number of Mortgage Bank's corporate customers keeps increasing due to active implementation of the state aid programmes carried out by the bank. In the first 4 months of this year the number of corporate customers has risen by 40% compared to the same period last year, whereas the number of active corporate customers has increased by 6%. Capital Adequacy and Liquidity The Mortgage Bank maintains constantly high capital adequacy and liquidity ratios that exceed considerably the statutory minimum required by Credit Institution Law. As at 30 April the capital adequacy ratio was 16.1% (statutory minimum is 8%) and liquidity ratio - 63% (minimum is 30%). Implementation of State Aid Programmes The Mortgage Bank continues lending to business start-ups and their growth and developing new programmes. In total the Programme for Improvement of Competitiveness of Businesses has granted loans in the amount of 149 mln lats. The European Social Fund's programme 'Support to Self-employment and Business Start-ups' has financed 404 projects for 5.1 mln lats and trained more than 870 new entrepreneurs. The SME Growth programme has granted loans for 12.7 mln lats, whereas the Programme for Working Capital Loans to Farmers has been fully consumed and now it operates from the repaid funds. 7 projects totalling to 2.4 mln lats have been financed from the Credit Fund. The Mortgage Bank was established in 1993. Its priorities are support to small and medium enterprises and promotion of economic activity in all regions of Latvia. The Mortgage Bank offers state aid target programmes for various needs of entrepreneurs, like business investment loans, working capital loans as well as loans for starting a business. Sandra Eglīte PR Officer of Mortgage Bank sandra.eglite@hipo.lv telephone: +371 67774244, +371 26577810 www.hipo.lv News Source: NASDAQ OMX 11.05.2011 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Latvijas Hipoteku un zemes banka Latvia Phone: Fax: E-mail: Internet: ISIN: LV0000800092 WKN: End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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