Parex banka’s unaudited financial results show that as of September 30, 2009, the loan portfolio of the bank and the Group was worth LVL 1.54 and 1.76 billion respectively, with deposits of LVL 1.62 and 1.76 billion, total assets of LVL 2.67 and 2.79 billion, and capital and reserve volumes of LVL 160.5 and 154 million.

The deposit indicators and improvements in the bank’s liquidity (a 42% indicator in October) show that clients are loyal to the bank and that trust in the institution is increasing. During the third quarter of 2009, the bank worked successfully to attract new clients and to develop new deposit products for private persons and legal entities.

During the first nine months of the year, the bank paid LVL 31.4 million to the State Treasury for its deposits, as well as to the Privatisation Agency as interest on its subordinated loan.

The bank and the Group completed the first nine months of the year with net losses of LVL 76.9 and LVL 85.3 million respectively. As was the case in the entire bank sector, these results were largely affected by provisions to cover a loss in asset value – LVL 75 and LVL 71.8 million respectively.

During the first nine months of the year, the bank has substantially optimised costs, particularly in the area of administrative expenditures. Personnel costs are down by 30%, travel expenses have been cut by 93%, advertising, marketing and representation costs are down by 85%, transport costs have been reduced by 68%, office expenses by 61%, and communications costs by 28%.

 

Founded in 1992, Parex banka currently employs some 2,000 people at branches all over Latvia and offers universal banking services throughout the Baltic region, the CIS and other European nations such as Germany, Switzerland and Sweden. Parex Group companies operate across the banking, finance, leasing, asset management and life insurance sectors. Currently, the Latvian Privatisation Agency is the majority shareholder of Parex banka, holding 73.4% of the Bank’s shares, but 22.4% are controlled by the European Bank for Reconstruction and Development. Parex banka has signed up to the European Code of Conduct on housing loans.

 

 

For more information:

Inga Saleniece, acting director

Corporate Communications Department

Telephone: +371 67778870 or +371 26564629

E-mail: pr@parex.lv