Financial Results of Rietumu Bank in 2018
28-Feb-2019, 16:00 / Financial Results Unaudited results of operation of the bank and the Rietumu Group in 2018 have been published.
In accordance with the data of the Financial Statements, net profit of the bank is EUR 33.7 million, which slightly exceeds the results of the previous year.
As of 31 December 2018, assets of the bank amount to EUR 1.5 billion, deposits of customers are EUR 1 billion and shareholders’ equity is EUR 470 million. The bank continues supporting a high level of efficiency - its return on assets ratio (ROA) equals 1.78% and the return on equity ratio (ROE) is 7.22%. The bank secures the highest liquidity coverage ratio (LCR) of 1290.09% (the minimum standard ratio being 100%).
The year 2018 has been extremely eventful for the Latvian financial industry. The banks had to perform cardinal transformations within the shortest terms in order to meet new standards set by the competent international structures and the regulator.
In particular, in the first half of the year, Rietumu Bank terminated relations with some of its clients, who were incapable of transforming the organisation of their business and bringing it into conformity with the introduced standards within the set term. The work conducted by Rietumu Bank in this respect has been positively assessed and supported by the government, the supervisory bodies and the international partners.
The updated business model and strategy of Rietumu Bank was formed and started to be implemented in practice. The bank is expanding its services, on both the local and common European markets, by focusing on servicing and crediting businesses in the field of real estate development, manufacturing, services, logistics, new technologies and other fields. The work with high net worth individuals is continuing as well, by offering them a wide range of wealth management services.
“Last year has been momentous for both the financial industry of Latvia and for Rietumu Bank as one of the leading participants of the market. Rapid changes in the requirements and the subsequent reduction of the number of customers has naturally affected the volume of assets and deposits. The bank’s strategy has been aligned accordingly.
Looking at the results of the year, the updated strategy of Rietumu Bank has proven to be successful. We retain the positions of the biggest private bank in Latvia and the Baltics, support a stable capital base and have the highest liquidity. Throughout the entire year, we continued earning, opening accounts for new customers, accepting their business projects for consideration and financing,” said Chairman of the Board Rolf Fuls.
Rietumu Bank also retains its characteristic individual and unconventional approach to the consideration of projects, which allows its customers to solve their business issues efficiently and implement their non-standard and promising ideas with the support of the bank.
Complete Financial Statements are published on our website.
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