GE Money Bank
AS ‘GE Money Bank’ financial statements for the 6 month period ended on 30.06.2011.

GE Money Bank 

31.08.2011 15:27
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MANAGEMENT REPORT ON THE BANK'S AND THE GROUP'S OPERATIONS DURING HALF A YEAR
2011 

In the first half of the year 2011 early signs of stabilization have been
observed in Latvian banking sector and Latvian economy seems to be out of
recession and the danger zone. Following nearly two years of loss making
operations and decline, Latvia's banking sector appears to be turning a corner.
Although macro-economic banking environment in Latvia still is very challenging
and we strongly believe in more prudent management and cost control. 

During the first half of the year the Bank conducted all the necessary actions
to ensure safety and stability for its customers, which continues to be one of
our main strategic priorities this year. It was achieved by ensuring high
liquidity and capital base that exceeds regulatory requirements. As always, GE
Money Bank in Latvia leveraged the experience of its parent company, General
Electric Company, one of the largest and most financially secure corporations
in the world. 

Bank continues to improve its risk management, compliance and controllership
systems, introduced several IT projects, as well as implemented cost
optimization actions. Exceptional results from risks, sales and collections
teams resulted in decrease of the expected losses. 

The Bank completed half-a-year 2011 with LVL 4,641 thousand of audited losses
which is 59% lower than losses in the same period of 2010. On June 30th, 2011
the Bank's capital adequacy ratio was 13.89%, while the liquidity ratio was
77.51% - both ratios well above the statutory minimum. 

The Bank's total loan portfolio on June 30th, 2011 was LVL 91,065 thousand.
Portfolio amount decreased mainly as a result of repayment of issued loans.
Total amount of reserves on June 30th, 2011 was LVL 36,836 thousand. Net loan
portfolio amount on June 30th, 2011 was LVL 54,229 thousand. 

The Bank's total assets in the first half of the year comprised LVL 129,961
thousand, deposit portfolio - LVL 111,086 thousand. 

Bank also continued providing support to an independent non-profit organization
'Money Planning Centre' (hereinafter - MPC). The primary goal of the MPC is
educating society in various financial matters. The Bank and the MPC supported
several projects and offered innovative budget planning tools to the society,
virtual consultations and seminars were organized by MPC, explaining
peculiarities and opportunities of money saving and budget planning. 

On the 28th of June GE Capital announced an agreement to sell 'GE Money Bank'
Latvia to 'OTKRITIE Financial Corporation' JSC, for an undisclosed amount. The
deal is subject to regulatory approval, and the parties anticipate closing in
the next few months. GE Capital will retain ownership of its consumer lending
and leasing company, GE Money AS, which will continue to operate in Latvia,
focusing on providing ongoing quality customer service. 

GE Capital strongly believes this transaction is positive news for the 'GE
Money Bank', and will position the Bank for future growth. This deal is in line
with GE's overall strategy to reduce the size of its financial services balance
sheet while remaining fully committed to a smaller more focused GE Capital. 

AS 'GE Money Bank' will continue operating as before ensuring uninterrupted
quality customer service. The Bank's management's focus is to ensure a smooth
transition to the future owner providing uninterrupted quality customer
service, as well as continuing to ensure the Bank's security and stability. We
continue to maintain high capital adequacy and liquidity, a healthy deposit
base, exercise prudent risk and cost management. 

In conclusion, we would like to express gratitude to the employees of the Bank
for work contributed to the Bank's development and to the customers and
partners for their trust and loyalty to the Bank! 

Between the reporting date and the date of signing this financial report there
have been no events that could significantly influence the results of the
reporting period. 


         Kristīne Rasnača
         Communications Project Manager
         GE Money Bank Latvia
         Ph.: +371 67029019
         Mob.: +371 26490696
         E-mail: kristine.rasnaca@ge.com
News Source: NASDAQ OMX



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Language:     English
Company:      GE Money Bank
              
               
              Latvia
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         LV0000800225
WKN:          
 
End of Announcement                             DGAP News-Service
 
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