On the results of DNB banka and DNB group during the Q3 of 2013

DNB group’s profit before provisions and taxes at the end of the first nine months of 2013 was at a level of LVL 11.1 million due to stabile interest and commission income, as well as thorough cost control. The profit after provisions and taxes reached LVL 2.2 million. The total operational income of DNB group in Latvia amounted to LVL 36 million.

 

The number of customers of DNB banka in a year’s period has increased by 8%. The number of attracted legal entities was more than 4.5 thousand and almost 31 thousand private persons chose to become the customers of DNB.

 

DNB group’s deposit portfolio at the end of Q3 was LVL 702 million, or 13% more than in the respective period of 2012. The deposits made by private customers during the first nine months of 2013 were 14% higher than during the respective period of 2012.The amount of deposits of large companies in the period increased by 13%. The local funding ratio of DNB has increased from 49% in the end of September 2012 to 58% in the end of September 2013.

 

According to the statistics of the Bank of Latvia, in eight months of 2013 the aggregate portfolio of bank loans granted to domestic non-financial institutions has contracted by 6.7% with the loans granted to households having dropped by 7.8%.  The net loan portfolio of DNB group in Latvia has decreased just by 2%.

 

The quality of the loan portfolio continued to strengthen in the third quarter of 2013 – the proportion of loans with delayed payments over 90 days and the amount and proportion of insecure loans decreased significantly, and the amount of provisions made was lower than in the previous quarters. 

 

The newly signed loans in the first three quarters of 2013 have amounted to 170 million lats or 12% of the total loan portfolio. 41% of the newly signed loans were issued to private entities and 59% - to corporate customers including such leading Latvian companies as “Latvijas finieris” and “Rīgas siltums”.

 

During the first nine months of 2013 DNB banka paid special attention to developing and widening its customer service channels. In the spring the new and modern internet bank was launched, the capacity of 24/7 Contact centre was increased, and the network of ATMs of DNB banka is constantly increased as well. The bank is working intensively also on preparing for transition to euro in order to guarantee a smooth and easy transition to euro for all the customers of DNB banka in Latvia.