The overview of the activities of the Bank in 2009

In 2009, the activities of AS “Latvijas Biznesa banka” have been influenced by the global economic crisis, which has affected all spheres of the economics of Latvia, negatively influencing the condition of the banking sphere in general and banking activities in the sphere of mortgage crediting in particular. While preparing the annual report for 2009, the Bank has taken into consideration, that global economic crisis still negatively influences the economics of Latvia and the credit worthiness of borrowers, performing a more conservative evaluation of the quality of credit portfolio, as well as increasing the reserves for possible loan losses.

Altogether, the losses of the bank for 2009 have amounted to 6,18 million LVL. In this connection, as well as in order to increase the capitalization of the Bank, in March 2010, the main shareholder - the open joint-stock company "Bank of Moscow" - has granted a subordinated loan in the amount of 5,06 million LVL to AS “Latvijas Biznesa banka”.

During 2009, AS “Latvijas Biznesa banka” has constantly maintained the current liquidity level of no less than 37%, the normative being 30%.

Notwithstanding the outer environment negatively influencing the banking activities, the level of confidence of clients in the Bank has increased, as evidenced by the fact, that in 2009, the number of the clients of AS “Latvijas Biznesa banka” has increased by 12%, the joint amount of the deposits of clients has increased by 14,7%, the number of savings accounts has increased by 41%, while the number of active Interbank users has increased by 69%.

Altogether, in 2009, the assets of the consolidated group of AS “Latvijas Biznesa banka” and AS „Eesti Krediidipank” have increased by 1,52%; as of the end of the year, they have amounted to 373 million LVL.

In order to increase the operating efficiency of the subsidiary banks, as well as to improve the quality and range of services in the Baltic region, the main shareholder of AS “Latvijas Biznesa banka” - the open joint-stock company "Bank of Moscow" - has adopted the decision to consolidate the banks and to create a branch of the Estonian bank AS „Eesti Krediidipank” on the basis of AS “Latvijas Biznesa banka”. In 2010, the main tasks of the consolidated bank will be the following: completion of integration processes, development of new products and services, as well as continuation of works on the quality increase of credit portfolio. In order to increase the competitiveness and financial opportunities of the consolidated bank, the open joint-stock company "Bank of Moscow" plans to further strengthen the capitalization of the consolidated bank.