Danske Bank Latvia’s core banking results for 2017

  • Total income: EUR 9.7 million, up 17%
  • Profit before impairment charges: EUR 3.7 million, up 6%
  • Net profit: EUR 1.7 million, down 68%
  • Loans: EUR 364 million, up 21%
  • Deposits: EUR 185 million, down 31%

“In 2017, we continued to strengthen relations with our business customers and demonstrated solid core banking results. Our business loan portfolio thus increased 21%, and total income was up 17% in 2017,” says Raivis Kakānis. “At the end of March, we will take the final step on our way to merging our systems and creating a new customer service platform, common to Danske Bank branches in all Baltic countries, and this will also bring new opportunities for our customers,” he adds.

 

 CORE BANKING, LATVIA[1] (EUR millions) 20172016 Index 17/16 

Net interest income

7.6

6.1

125

Net fee income

1.9

2.0

95

Net trading income

0.2

0.2

100

Other income

0.0

0.0

-

Total income

9.7

8.3

117

Operating expenses

(6.0)

(4.8)

125

Profit before loan impairment charges

3.7

3.5

106

Loan impairment charges

(0.3)

0.7

-

Profit before tax

3.4

4.2

81

Tax

(1.7)

1.1

-

Net profit for the period

1.7

5.3

32

Loans (end of period)

363.6

299.4

121

Deposits (end of period)

184.8

268.9

69

Net profit/average allocated capital (%)

2.5

11.9

-

Cost/income ratio (%)

62.3

57.9

-



[1] The activities related to business customers and associated private individuals are reported as core banking activities. Activities related to other personal customers are not reported in this press release. The full results are presented in Danske Bank Group’s Annual Report 2017, consolidated Baltic results.

 

Financial results for core banking in 2017 vs 2016
Danske Bank Latvia achieved solid results in 2017 and the bank’s profit before impairment charges for core banking activities rose 6% to EUR 3.7 million (against EUR 3.5 million for the year-earlier period). Net profit was EUR 1.7 million. 
We continued to strengthen our relationship with our business customers, and our loan portfolio thus grew 21% in 2017, reaching EUR 364 million. As a result of growing business volumes, total income rose 17% to EUR 9.7 million.
Following a prudent risk policy, we recognised additional impairment charges for selected loans in the amount of EUR 0.3 million.
The deposit portfolio decreased 31% to EUR 184.8 million.
Expenses grew 25% from the level in 2016 to EUR 6.0 million. One reason for the increase was the sale of our retail business, completed last year, and the resulting larger share of expenses now allocated to core banking activities. Another reason was expenses related to the ongoing work to launch a single platform for Baltic operations, which we plan to finalise already at the end of March.

Danske Bank Group’s financial results
Danske Bank announced its financial results for 2017 today. Further information is available at danskebank.com/reports.

 

About Danske Bank 

Danske Bank Latvia serves business 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 2017. 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, 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