Despite the slow economic development and geopolitical events in the world, that influenced Latvian economic growth, 2014 was a successful year for the DNB group in Latvia. The net profit of DNB group in Latvia amounted to EUR 20 million, so it has almost doubled in comparison to the net profit at the end of 2013 (EUR 10.6 million).

“DNB group in Latvia succeeded to finish year 2014 with positive results, and for what we would like to thank all our clients, who have showed loyalty to our bank. We anticipate that the Latvian banking sector and DNB will face challenges in 2015 because of the slow rate of economic development in Latvia and the world, as well as because of the prevailing geopolitical situation.  Nevertheless it must be stressed that DNB group in Latvia will continue its stable development, continuing to increase banking efficiency and facilitating client satisfaction with the DNB banka’s financial products and services,” says CEO of DNB banka Atle Knai.

DNB group in Latvia earned operating income of EUR 60.2 million by the end of December 2014.  Despite increased income in several areas, overall income was hindered by the introduction of the euro.  One of the DNB banka’s priorities in 2014 was facilitating efficiency to improve results.  Various projects were implemented in this regard, and that allowed the DNB group in Latvia to reduce total expenses by 11% in comparison to the previous period reaching EUR 40.2 million.

During the course of 2014 DNB banka continued to pursue balanced lending policies and to improve the quality of its lending portfolio. Therefore, during the respective year it was possible to recover previously established provisions for loans in amount of EUR 0.6 million, which is substantially better result compared to additionally established provisions in the value of EUR 15.6 million during previous reporting period.

Year 2014 was successful also for both subsidiaries of DNB banka which are offering financial services - SIA DNB līzings and IPAS DNB Asset Management. SIA DNB Līzings maintained its market share in 2014 thanks to successful partnerships with all major car dealers. IPAS DNB Asset Management is one of the largest 2^nd level pension plan administrators in Latvia offering a conservative, balanced and active pension plans. Last year the DNB Active investment plan earned 7.93% for its clients, thus being the most profitable pension plan of all in Latvia. The Balanced investment plan earned 6.41%, which was the best indicator among all balanced pension plans.

The stability and success of the DNB banka and its shareholder are appreciated by local residents and by Latvian and international enterprises. The number of clients for whom DNB is the home bank increased by 5,400 individuals in 2014.  DNB banka has a competitive offer, an individual approach, high-quality client service level, competent employees and clearly defined corporate social responsibility standards, and that has led several major companies that are of essential importance to the Latvian economy to choose DNB as their bank.  The number of transactions in 2014 rose by 18% in comparison to last year.

The shareholder of DNB banka in Latvia – the largest financial institution in Norway DNB – recorded profits of EUR 2.28 billion in 2014, an increase of EUR 343 million from 2013. “Our strong profit performance enables us to continue to build up equity and further improve the bank’s financial strength. It also demonstrates that there is a continued positive development for Norwegian companies and private individuals, who enjoy a strong financial position. This is good news for our customers, shareholders, employees and not least society at large,” says Rune Bjerke, DNB group chief executive.