Danske Bank Latvia’s core banking results in the first quarter 2017

“Our focused and consistent strategy yields results and we see growing cooperation with both long-term and new corporate customers. This allows us to achieve solid core banking results in Latvia, despite the fact that we continue to operate in a low interest rate environment,” says Raivis Kakānis, CEO of Danske Bank Latvia. “Our corporate customer loan portfolio increased 30%, and total income was up 26% in the first quarter of 2017. We are determined to continue to strengthen our relations with business customers and to be a reliable financial partner for them.”

• Profit before impairment charges: EUR 1.0 million, up 11% from the level in the first quarter of 2016
• Net profit: EUR 0.7 million, down 22%
• Total income: EUR 2.4 million, up 26%
• Loans: EUR 319 million, up 30%
• Deposits: EUR 399 million, up 112%


 3m 2017

 3m 2016 


Net interest income 1.9 1.4 136
Net fee income 0.5 0.5 100
Net trading income 0 0 -
Other income 0 0 -
Total income 2.4 1.9 126
Operating expenses (1.3) (1.0) 130
Profit before loan impairment charges 1.0 0.9 111
Loan impairment charges (0.4) (0) -
Profit before tax 0.7 0.9 78
Tax 0 0 -
Net profit for the period 0.7 0.9 78
Loans (end of period) 318.6 245.5 130

Deposits (end of period)

399.2 188.0 212
Net profit / average allocated capital (%) 4.5 8.9 -
Cost/income ratio (%) 56.5 52.0 -

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

Financial results for core banking in 1Q 2017 vs 1Q 2016
In the first quarter of 2017, Danske Bank Latvia’s profit before impairment charges for core activities rose 11% to EUR 1.0 million (against EUR 0.9 million for the year-earlier period). Net profit was EUR 0.7 million (EUR 0.9 million), decreasing 22%.

As a result of growing business volumes, total income rose 26% to EUR 2.4 million. Net interest income grew 36% to EUR 1.9 million. Net fee income stood at EUR 0.5 million.

Expenses grew 30% from the level in the first quarter of 2016 to EUR 1.3 million. One reason was the sale of our retail business, completed last year, and the resulting larger share of expenses now allocated to core activities. Another reason was expenses related to the upcoming launch of a single platform for Baltic operations. The single platform will allow us to further improve internal processes, and we thus expect to see lower expense growth next year.

The deposit portfolio doubled to EUR 399.2 million, with increases in deposits from both institutional and corporate customers.

The loan portfolio for core segment customers rose 30% to EUR 318.6 million.

Danske Bank is committed to continuing to increase its business banking volume in Latvia. We pursue this goal 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 quarter of 2017. Further information is available at 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.


Media contact
Ieva Zauere
Head of Communications
Danske Bank Latvia
Tel.: +371 2 948 5726