The Q2 2020 financial statement of the bank and the Rietumu Group has been published.
According to the statement, the bank’s net profit during the first six months of this year was 9.7 million euros.
Throughout the entire first half of the year, there has been a positive trend in all major financial indicators of Rietumu Bank. As of 30 June 2020, assets of the bank amounted to EUR 1.6 billion, deposits of customers were EUR 1.2 billion, loans were EUR 656 million, capital and reserves were EUR 305 million.
Interest payments have the largest share in the structure of income – 57% (in June 2019 – 40%). In absolute terms, the growth in net interest income is 7%, and in net fee and commission income – 17%.
Return on equity after tax (ROE) is 6.45%, return on assets (ROA) is 1.22%. The bank secures the highest liquidity coverage ratio (LCR) of 689.65% (the minimum standard ratio being 100%).
“Closing the first quarter, we certainly anticipated the negative effect that the pandemic would have on the world's economies. The inevitable decline in business activities, including among our customers, resulted in the suspension of some important projects and the temporary “freeze” of some of the business plans.
The situation has changed by now. And although it is premature to make long-term forecasts, we note positive trends in the economy and in business sentiment in Latvia and the Baltics. The number of new deals is growing. The bank receives and considers new promising credit and investment projects; on a number of them, positive decisions have already been made and the financial resources necessary for the restoration and further development of enterprises have been allocated. We will continue this work, we have the means, desire and experience for this, and, moreover, we are independent in our assessments and decisions,” says Rolf Fuls, Chairman of the Board of Rietumu Bank.
The full version of the financial statement can be found
on our website.
