We are pleased to report that Norvik Banka may consider the first six months of the year successful in its operation: for the first half of 2016 the Bank has earned 30.0 million euro in net financial income (23.8 million euro for the same period 2015), and this has led to a profit of 7.7 million euro for the first half of the year (5.8 million euro for the same period 2015).

Customer deposits as at 30 June 2016 were at 727.2 million euro.

We would like to point out that from the Bank’s balance sheet, key highlights are as follows:

• total assets as at 30 June 2016 was 904.4 million euro;
• the loan portfolio at the end of June 2016 amounted to 236.4 million euro;
• in the first half of 2016 subordinated bonds were issued for 9.4 million euro;
• the liquidity ratio for the reporting period was 62.27% (31 December 2015 – 64.22%).

Oliver Bramwell, Chairman of the Board with Norvik Banka, has stated that: “The Bank follows a liquidity management strategy that provides a high rate of return balanced for the risk assumed, whilst purposefully maintaining higher than the minimum required level of liquidity reserves (minimum required liquidity ratio is 50.00%)”.

From the income statement, key highlights are as follows:

• net commission income for the first half of 2016 showed an increase of 16.6%, increasing to 9.6 million euro compared to 8.2 million euro for the same period 2015;
• net interest income for the first half of 2016 decreased year-on-year to 5.6 million euro compared to 9.5 million euro for the same period 2015;
• in the first half of 2016 the Visa Inc. share buyback transaction was completed, wherein the Bank booked 10.7 million euro to net gains from disposal of financial instruments.

Capital ratios:

• the Bank’s capital adequacy ratio as of 30 June 2016 was 18.64% – significantly higher than 16.65% as of 31.12.2015, and 14.87% as of 30.06.2015;
• the Group's capital adequacy ratio as of 30 June 2016 was 12.56% – significantly higher than 11.49% as of the end of December 2015, and 11.04% as of the end of June 2015.

During the reporting period the Bank opened two new corporate centres at 11 Raina Boulevard and 15 Elizabetes Street, the former as the centre for servicing resident clients, and the latter as corporate headquarters and service centre for VIP and international clients. The Bank has maintained its status as the industry leader in terms of geographic coverage in Latvia by offering a convenient and complete service near clients’ homes or offices, with a 63 service centres in 16 cities including the largest client service centre in the Kurzeme region in Liepaja.

We are pleased to be the main contributor to the improvement of the public health under such an important project as the nuclear medicine centre Medvision opened in April this year for which the Bank had played a key role in financing, thus contributing to the development of healthcare, education and science.

The first six months of 2016 have been an intense period for Norvik Banka, with the focus on ensuring a balanced business model across markets, customer segments, and by product.

The Bank keeps operating successfully on the Latvian and foreign financial markets, in line with its strategic objectives.