A short overview of the Bank’s operation in 2005

Increase of the fixed capital of the Bank to ensure successful operation in the future.

In February 2005 fixed capital of AS “Latvijas Biznesa banka” (LBB) was increased by 3,4 million lats and presently amounts to 10,8 million lats.

Increase of the fixed capital shows the serious intention of the Bank's main shareholder (Bank of Moscow) to continue active work on the financial market of Latvia, with the aim to expand range of products offered by LBB.

A daughter company.

During year 2005 the Bank in addition to the already owned by the Bank shares of Estonian bank AS “Eesti Krediidipank” purchased 15,5% more shares, and now LBB owns 59,8% of share capital. “Eesti Krediidipank” was established in 1992, it is a stable financial institution that services its clients through 21 branches through all of the Estonia, and whose controlling interest is owned by LBB.

LBB is proud of its deposit advertising campaigns and considers them a great success!

In 2005 considerable amount of funds was attracted from private persons in form of term deposits. Advertising campaigns that were organized three times in the course of the previous year helped to increase the amount of funds attracted from private persons more that twice, in comparison to 2004.

During New Year campaigns two years in a row LBB offers the highest interest rates for deposits with a term of one year, and the clients, of course, choose the most advantageous offer.

Increase of the Bank’s profit and income.

As a result of development of the Bank's main activities the total amount of the Bank’s income increased 1,6 times, including,

-         income from loans increased 1,7 times,

-         income from transactions with securities  - 1,6 times,

-         income from transactions with foreign currencies – 1,7 times.

LBB’s  profit in 2005 at least twice exceeded the bank’s profit in 2004.