TKB Has Summed Up Its Results of 2014

01.04.2015

 

On 26 March 2015, the Council of AS „TRASTA KOMERCBANKA” approved the Bank’s performance results of 2014.
 

The Bank ended 2014 with a loss of EUR 12.75 million as a result of provisions made for a range of loans mostly related to the Ukrainian market, as well as for real estate loans in Bulgaria. The Bank's operating profit was EUR 5.4 million. Accordingly, the Bank's capital and reserves decreased by EUR 12.63 million, and as at 31 December 2014 amounted to EUR 41.92 million. „Thanks to the prudent dividend payment policy in the pre-crisis years, at the beginning of 2014, the Bank had at its disposal the retained earnings reserve in the amount of EUR 28.31 million. Thus, the current-year losses will be covered by the prior years’ undistributed profit, leaving at the Bank’s disposal the remainder of EUR 15.56 million”, said the chairman of TKB Board Gundars Grieze.


The Bank’s assets as at 31 December amounted to EUR 581.11 million, which is by EUR 166.0 million more than the final figure of 2013. During the reporting period the amount of attracted deposits reached EUR 500.22 million, which is an increase of 164.74 million compared to the final figure of 2013. In 2014, the Bank actively worked to recover its non-performing loans and to improve the quality of its loan portfolio, consequently, the Bank’s loan portfolio in the reporting year shrank by EUR 14.61 million, reaching EUR 98.82 million at the end of 2014.


The amount of Group’s assets as at the end of the reporting period was EUR 574.13 million, which is by EUR 157.44 million more than the final figure of 2013. The Group ended the reporting year with a loss of EUR 14.01 million. The Bank's consolidation group consists of the subsidiary companies: „TKB Nekustamie īpašumi”, „TKB Līzings” and its subsidiary „TKB Leasing Tajikistan”, „TKB LU” and „Project 1”; and also „Heckbert C7 Holdings” and its subsidiary „Ferrous Kereskedelmi KFT”.


As one of the priorities of the Bank's activities in 2014 was the capital strengthening through the issue of subordinated bonds in the amount of EUR 10 million. The issue was successfully completed and the subordinated bonds were purchased by 47 investors, including 38 individuals and 9 legal entities. Based on „NASDAQ OMX Riga” Board decision, on 16 December 2014, the bonds of AS „TRASTA KOMERCBANKA” were included in the Baltic list of debt securities. Issue of bonds is an attractive alternative for increasing of capital, and from investors’ perspective, such fixed-income assets as corporate bonds are the financial instruments that are suitable for diversification of investment portfolio by both private and institutional investors. In 2015, the Bank intends to continue the strengthening of its capital.


In 2014, the Bank continued to develop its activities not only in Latvia, but also abroad, as evidenced by the fact that the Baltic-Hong Kong Trade Association awarded TKB a certificate attesting to a special membership status of the Bank in the organization. As acknowledged by the Association management, this status is granted to companies for special merits in the development of the Association. TKB is still the only bank in the Baltic States, which has its representative office in Hong Kong.


Thinking about further possibilities that can be offered to Bank's customers in the acquisition of new export markets, in 2014, the Bank continued its activities in the Latvian Chamber of Commerce and Industry (LCCI). This membership provided an opportunity to hear opinions of business people, problems and needs of export undertakings, as well as to share Bank's experience in the execution of safe and effective trade finance operations, which the Bank has been providing to its customers for a decade as the sole representative of the international factoring organization Factors Chain International (FCI) in Latvia.


In 2014, the Bank began to work on increasing the range of services offered to existing and new customers. The Bank conducted a survey among its customers to find out their wants and wishes. The proposals made by customers served as impetus for the development of such new services as customer packages. In 2014, the Bank continued to work on the development of new products, especially in the Life Style segment. A special loyalty programme was created offering Bank's cardholders the opportunity to use great offers in the best places of recreation in Latvia and aboard.


Last year, the Bank continuously maintained high standards of customer service and quality of payments. The excellent quality of Bank's international payments was once again recognized by its business partners. The largest German banks Deutsche Bank and Commerzbank for the ninth consecutive year awarded their annual prizes STP Award 2013 and STP Excellence Award 2013 to the Bank. Thus, the Bank once again received the acknowledgment of the professional work of its team and excellent customer service rendered in the previous period of work.


According to the US Foreign Account Tax Compliance Act (FATCA), the Bank successfully registered with the US Internal Revenue Service Register as a member of FATCA and received special registration numbers. Bank's participation in the FATCA programme allows for making dollar payments in standard mode.


In 2014, the Bank continued to develop technologies which secure access of Bank's customers to their accounts from anywhere in the world with the highest degree of security. It also started the process for changing the image of the Bank to update the company logo and corporate style. The Bank's new slogan "Open Private Banking" means that we are open for cooperation with a wide range of customers, and TKB is planning to further improve the quality of customer service.


In 2015, the Bank is planning to pay special attention to upgrading of information systems and technologies having an enhanced focus on the development of its online banking and website, which will be not only up-to-date and comfortable but also easily adaptable to mobile devices. In parallel, internal changes have been planned in order to reduce business risks and improve staff qualification.


The management of the Bank is grateful to all customers, shareholders and employees of the Bank for their loyalty, support and successful performance.



Elīna Bikuļča
Public Relations Division

BACK TO NEWS


« Changes in the Consolidated Price List TKB Chairman of the Council Igors Buimisters on... »

Contact

I have read Terms and Conditions

Unfortunately the message wasn't sent. Please, fill all required fields and try again

Thank You!

Your message has been sent. We will get in touch with you soon.