About

Balance Sheet as of December 31

Unaudited profit of Rietumu bank in 2009 accounted for LVL 9.2 million (EUR 13 million).

The bank’s total assets remained stable within the year and as of 31 December 2009 totaled LVL 1 billion (EUR 1.4 billion) decreasing by 12 percent as compared to the end of 2008.

While the amount of attracted resources including customer deposits and customer account balances as well as resources attracted in financial markets, accounted for LVL 835 million (EUR 1.2 billion) falling by 14 percent due to repayment of interbank obligations in the amount of LVL 143.5 million. The attracted customer resources grew by 1 percent in 2009.

Over the year Rietumu credit portfolio decreased. This has been primarily attributed to Rietumu conservative strategy in lending area and overall economic situation, including uncertainty of the future development in Latvia.

Loans granted for promoting projects beyond the Baltic States including Russia and Belarus make over a third part of the total credit portfolio. As of the end of 2009, Rietumu credit portfolio totalled LVL 489 million (EUR 690 million) with a 14 percent fall for the year.

The amount of free cash assets increased significantly in 2009, amounting to LVL 340 million (EUR 484 million) as of the year-end – a 20% increase compared to the end of 2008.

The bank’s equity and reserves totaled LVL 134 million (EUR 190 million).

Capital adequacy ratio accounted for 16% exceeding requirements of international and local regulators twofold.

The bank’s management is fully satisfied with the results of 2009. Despite the economic crisis, scarce financial resources in global markets and tough situation in Latvia, Rietumu successfully ended the year, having maintained its status of the most effective bank in the Baltics.

Audited financial results of Rietumu will be published in several weeks. The audit is being completed by KPMG.

Position	31-DEC-2009 (LVL)	31-DEC-2008 (LVL)
Cash and balances with central banks	38 979 620	45 673 548
Demand balances due from credit institutions	210 830 981	226 439 836
Financial assets held for trading	74 199 272	153 157 870
Financial assets available for sale	22 786 079	10 779 064
Loans and advances to customers	513 772 310	586 490 677
Held-to-maturity investments	93 892 503	33 168 959
incl.      balances due from credit institutions	87 429 012	9 699 944
security investments	6 463 491	23 469 015
Accrued income and deferred expenses	5 921 283	5 811 856
Property, plant and equipment	5 413 103	33 963 341
Investment property	5 802 804	5 094 234
Non-material assets	2 968 842	3 383 616
Investments in subsidiaries and associated entities	16 497 239	16 197 239
Tax assets	2 361 321	1 126 731
Other assets	20 445 123	22 649 003
Total assets	1 013 870 480	1 143 935 974
Demand deposits due to credit institutions	3 158 855	2 349 952
Financial liabilities held for trading (derivative financial liabilities)	356 178	511 440
Financial liabilities at amortised value	760 088 500	807 540 997
incl.      deposits	674 781 141	656 439 155
term deposits due to credit institutions	84 412 849	149 802 673
issued debt securities	894 510	1 299 169
Amounts payable under repurchase agreements	72 989 988	150 096 681
Deferred income and accrued expense	5 593 615	10 177 690
Provisions	28 905 871	18 255 289
Tax liabilities	808 010	1 156 377
Other liabilities	8 193 784	21 302 700
Total liabilities	880 094 801	1 011 391 126
Shareholder's equity	133 775 679	132 544 848
incl.      Share capital	100 000 000	22 500 000
Share premium	4 809 393	4 809 393
Legal reserve	20 016 104	16 104
Retained earnings/losses	5 429	82 826 473
Profit/Loss for the period	9 155 209	22 311 919
Property revaluation reserve	1 754 129	80 959
Revaluation reserve of financial assets available-for-sale	-1 964 585
Total liabilities and shareholder's equity	1 013 870 480	1 143 935 974
Contingent liabilities	4 643 616	7 303 194
Financial commitments (unutilised credit lines)	51 254 142	63 998 843
Liquidity ratio	56.41%	44.59%
Capital adequacy ratio	16.14%	14.25%