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

“In the first half-year of 2017, we continued to strengthen business relations with our customers, and our corporate customer loan portfolio increased 28%. Total income was up 18% in the first half of 2017,” says Raivis Kakānis, CEO of Danske Bank Latvia.
“We have taken an important step in reaching our objective – to become the bank with the best customer service for business customers. Over the last weekend of June, Danske Bank Latvia migrated to its new customer service platform. With the new platform, we can offer, for example, faster payments between Latvia and Lithuania as well as improved functionality and security for payment card users. The full range of improvements will be available next year, when the Danske Bank branches in all three of the Baltic countries will start operating on the new platform,” he adds.

  • Total income: EUR 4.7 million, up 18%
  • Profit before impairment charges: EUR 1.7 million, down 11%
  • Net profit: EUR 1.9 million, down 17%
  • Loans: EUR 353 million, up 28%
  • Deposits: EUR 369 million, up 14%

CORE BANKING1, LATVIA (EUR millions) First half 2017 First half 2016 Index 17/16
Net interest income 3.6 2.9 124
Net fee income 1.0 1.0 100
Net trading income 0.1 0.1 100
Other income 0 0 -
Total income 4.7 4.0 118
Operating expenses -3.0 -2.1 143
Profit before loan impairment charges 1.7 1.9 89
Loan impairment charges 0.2 0.4 50
Profit before tax 1.9 2.3 83
Tax 0 0 -
Net profit for the period 1.9 2.3 83
Loans (end of period) 352.8 276.3 128
Deposits (end of period) 369.3 322.8 114
Net profit / average allocated capital (%) 6.1 10.5 -
Cost/income ratio (%) 63.5 52.5 -

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 H1 2017 vs H1 2016
In the first half of 2017, Danske Bank Latvia’s profit before impairment charges for core activities decreased 11% to EUR 1.7 million (against EUR 1.9 million for the year-earlier period). Net profit was EUR 1.9 million (EUR 2.3 million), decreasing 17%.

As a result of growing business volumes, total income rose 18% to EUR 4.7 million. Net interest income grew 24% to EUR 3.6 million. Net fee income stood at EUR 1.0 million.

Expenses grew 43% from the level in the first half of 2016 to EUR 3.0 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 launch of a single platform for Baltic operations. The single platform allows us to further improve internal processes and lower expenses.

The deposit portfolio grew 14% to EUR 369.3 million, with increases in deposits from both institutional and corporate customers.

The loan portfolio for core segment customers rose 28% to EUR 352.8 million. In the first six months of 2017, we issued new loans and guarantees to businesses in the amount of EUR 104 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 half 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 Silver 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.

danskebank.com

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