Unaudited results of operation of the bank and the Rietumu Group in 2019 have been published.
In accordance with the financial statement, in 2019, the bank’s net profit amounted to EUR 18.5 million, and the profit of the Rietumu Group reached EUR 23.7 million.
Over the past year, such key indicators as the amount of assets and the amount of Rietumu Bank customers’ deposits grew dynamically. The bank’s assets increased by 11.4% during the year and amounted to EUR 1.7 billion as of 31 December 2019. Customer deposits increased by 29%, amounting to EUR 1.3 billion.
In 2019, Rietumu Bank completed an important stage in its work related to the development of its loan portfolio in accordance with the current conditions. The share of local and European loans increased significantly. The bank began cooperation with a number of new customers in Latvia and other Baltic states. Among them there are enterprises which implement promising projects in the fields of residential and commercial real estate, hospitality, trade, transport, and elsewhere.
The loan portfolio of Rietumu Bank amounted to EUR 639 million at the end of 2019. Moreover, the share of loans issued to new customers exceeds 15% of the total portfolio.
The bank’s capital and reserves amounted to EUR 308 million. The capital adequacy ratio remains high, at the level of 19.82%.
Indicators relating to the bank’s efficiency and stability are traditionally high. The return on assets (ROA) is 1.11%, and the return on equity (ROE) is 4.79%. The liquidity coverage ratio is 639.66% (the regulatory minimum being 100%). All this data convincingly demonstrates Rietumu Bank’s vast potential for expanding lending and investment.
“Last year, we reached a number of important goals defined in the updated bank strategy that had been previously developed. By consistently focusing on providing services to Latvian and European business customers, we built good business relations with many successful enterprises of the region. Including companies with significant export potential in a wide variety of “real” and “virtual” industries, from food production to high tech.
As a result, the amount of Rietumu Bank’s assets and deposits increased significantly. The bank maintains its stability and the high quality of its loan portfolio. Last year, we paid over EUR 7.3 million of taxes to the state budget.
It is clear that these results provide an excellent basis for the further development of Rietumu Bank. They reflect the appropriateness of the chosen course and the presence of key conditions for its implementation: financial and intellectual resources, a solid capital base and modern technologies. Our goals for the future, including this year, 2020, are as ambitious – but realistic – as always”, says Rolf Fuls, Chairman of the Board of Rietumu Bank.
