Danske Bank Latvia’s core financial results

“Danske Bank is focusing on fulfilling its corporate customers’ business needs, and professional advice, tailored solutions and quick decisions are the keys for success,” says Raivis Kakānis, CEO of Danske Bank Latvia. “At the end of the third quarter, our loan portfolio had grown 12% over the level the year before. I am pleased that we also achieved very solid core banking results in the first nine months of the year, including a net profit of EUR 2.7 million.”

•Profit before impairment charges: EUR 2.5 million, up 7%, y-o-y
•Net profit: EUR 2.7 million, up 30%
•Total income: EUR 6.1 million, up 9%
•Loans: EUR 286.9 million, up 12%
•Deposits: EUR 390.3 million, up 26%

CORE BANKING, LATVIA1 (EUR millions) 9M 2016 9M 2015 Index
Net interest income  4,4 4,0 112
Net fee income 1,5 1,6 97
Net trading income 0,1 0,1 100
Other income 0 0 100
Total income 6,1 5,3 109
Operating Expenses (3,6) (3,2) 111
Profit before loan impairment charges 2,5 2,4 107
Loan impairment charges 0,2 (0,3) -
Profit before tax 2,7 2,1 130
Tax 0 0 100
Net profit for the period 2,7 2,1 130
Loans (end of period) 286,9 255,4 112
Deposits (end of period) 390,3 308,8 126

1 The activities related to corporate customers and associated private individuals are reported as core activities. Activities related to other personal customers are not reported in this press release. Full results are presented in the Danske Bank Group financial report, consolidated Baltic results.

First nine months of 2016 vs first nine months of 2015

In the first nine months of 2016, Danske Bank Latvia’s profit before impairment charges for core activities rose 7% to EUR 2.5 million (against EUR 2.4 million a year before). The net profit increased 30% to EUR 2.7 million (EUR 2.1 million).

As a result of growing business volumes, total income rose 9% to EUR 6.1 million. Net interest income grew 12% to EUR 4.4 million. Net fee income fell 3% to EUR 1.5 million.

The bank’s expenses grew 11% from the level in the first nine months of 2015 to EUR 3.6 million. Because of the sale of our retail business, a larger share of the expenses is now allocated to the bank’s core activities. At the same time, the bank has improved its internal processes, so we now expect lower expense growth.

The bank’s deposit portfolio grew 26% to EUR 390.3 million, with increases in deposits from both institutional and corporate customers.

The loan portfolio for core segment customers rose 12% to EUR 286.9 million.

Danske Bank is committed to continuing to increase its business banking volume in Latvia. We pursue this by offering customers sophisticated advice and tailor-made financing solutions. We also focus on the efficient use of capital in order to compete successfully and provide the best offerings to our customers.

Danske Bank Group’s financial results

Danske Bank today announced its financial results for the first nine months of 2016. Further information is available at www.danskebank.com/reports

Danske Bank Latvia serves corporate and private banking customers. Danske Bank Latvia has earned recognition for its responsible operations and was ranked in the Bronze category in the Sustainability Index 2016.

Danske Bank Latvia is part of Danske Bank Group.

Danske Bank is a Nordic universal bank with strong regional roots and bridges to the rest of the world. We serve more than 3.4 million personal, business and institutional customers, and in addition to banking services, we offer life insurance and pension, mortgage credit, wealth management, real estate and leasing services and products.

Our vision is to be recognised as the most trusted financial partner. We are driven by a desire to make important financial decisions and daily banking easy, and our aim is to create long-term value for our customers and investors and the societies we are a part of.

Danske Bank is headquartered in Copenhagen and is listed on Nasdaq Copenhagen.

For further information:
Ieva Zauere
Head of Communications
Danske Bank Latvia
Tel.: +371 2 948 5726