Latvijas Hipoteku un zemes banka
Mortgage and land bank of Latvia interim finansial statements for the 6 months period
Latvijas Hipoteku un zemes banka / 20.08.2010 14:37 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. --------------------------------------------------------------------------- In the first half of the year 2010, Hipoteku banka continued active lending within the framework of state aid programmes. In the first half of the year 2010, Latvijas Hipoteku un zemes banka continued active lending within the framework of state aid programmes, made a repayment of 49.1 million lats of syndicated and other loans and has accrued funds for repayments scheduled for the second half of the year. The range of Hipoteku banka's promotional programmes was expanded by Agricultural working capital lending programme in May 2010, and 77 loans of the total of 2 million lats were granted under the programme by the end of June. Loans of 126.5 million lats were granted under the Programme for Improvement of the Competitiveness of Businesses by the end of June 2010, including 41.26 million lats from the Loan fund, constituted by funds of the bank and the ERDF. Hipoteku banka has granted microloans of the total amount of 602 thousand lats under the Microlending programme. Within the European Social Fund programme 'Support to Self-employment and Business Start-ups', financial aid was granted to 130 projects for the total amount of 2 million LVL. By the end of June, 56 loans for the total of 3.65 million lats had been granted under the SME growth lending programme, which was launched in February 2010 for development of micro, small and medium-sized enterprises and co-operative unions providing agricultural services. The promotional loans portfolio, at the end of the first six months of 2010, makes up already 40% of Hipoteku banka's total loan portfolio. Says the Chairman of the Board of Hipoteku banka Rolands Paņko, 'By means of these promotional programmes, Hipoteku banka provides aid in areas that the Government regards as top priority, supporting which is essential to development of the national economy of Latvia and improvement of competitiveness. We are pleased that the interest in opportunities of receiving loans to start and expand businesses under the programmes implemented by the bank, despite the adverse economic environment, has been rather high, therefore we may hope that when the economic situation in the country becomes stable, this interest in options of receiving aid would grow larger.' The volume of gross assets of Hipoteku banka decreased by 28.9 million lats or by 3%, reaching 937.8 million lats in the 1st half of the year 2010. Within the first 6 months of 2010, the gross loan portfolio of Hipoteku banka has decreased by 7%, reaching 663 million lats, constituted by the portfolio of development loans of 264 million lats (40% of the portfolio) and the portfolio of commercial loans of 399 million lats. The volume of deposits in the respective timeframe has grown by 1% reaching 329 million lats. In the first six months, the Bank made provisions of 41 million lats for doubtful assets, as a result of which, the audited losses were 39.3 million lats. The ratio of provisions built by the Bank and the loan portfolio was 14.3% on 30 June of this year. In April 2010, the equity capital of the Bank was increased by 70.28 million lats. The equity capital was increased by means of the state taking over the liabilities of Hipoteku banka towards the Nordic Investment Bank and investing the respective amount into the equity capital of the bank. The funds of the Nordic Investment Bank are being used for lending under the Programme for Improvement of the Competitiveness of Businesses. The capital adequacy ratio was 20.0% at the end of June, which considerably exceeds the statutory minimum of 8% as directed by the Law on Credit Institutions. Hipoteku banka was established in 1993. In November of 2009, the Government approved the concept of establishment of Development bank on the fundaments of Hipoteku banka within the period of time until 2013. The priority of the Bank is providing aid to small and medium businesses and enabling economic activity in all regions of Latvia. Please see attached Mortgage and land bank of Latvia Interim Condensed Consolidated and Bank Financial Statements for the 6 months period ended 30 June 2010 in accordance with International Accounting Standard 34 as adopted by European Union. For further information: Ms. Signe Eisaka Public Relations Specialist, Hipoteku banka signe.eisaka@hipo.lv phone: +371 6777 4159 www.hipo.lv News Source: NASDAQ OMX 20.08.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP. 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 News DGAP News-Service ---------------------------------------------------------------------------
Latest News
Latest Reports
No Reports found
Upcoming Events
No Events found
Webcasts
No Webcasts found