PNB Banka closes the year 2018 with profit. Unaudited financial results have been published.

PNB Banka has prepared and published (unaudited) financial results for the year 2018. The data show that AS PNB Banka has closed the year 2018 with profit. The financial results are available on the Bank’s home page under Section “About Bank / Financial results”.
The preparation of PNB Banka’s audited report for the financial year 2018 is currently in the final phase. The audit company PricewaterhouseCoopers has approved all the financial data of the Bank. However, due to the fact that this June a group of US and European investors decided to join the composition of the shareholders of AS PNB Banka by acquiring a controlling interest in the Bank, the auditors have to perform additional audit procedures related to the change of the shareholders. The audited annual report will be published as soon as the final conclusion of PricewaterhouseCoopers auditors is received and the Bank’s shareholders meeting approves the report.  
The Chairman of the Board of PNB Banka Oliver Bramwell noted that the year 2018 had been important for all of the Bank’s structures. The Latvian Banking business line was developed and expanded to strengthen the Bank’s position on the local market, while the regulatory requirements and legislative developments made the Bank revise significantly and change the structure of work with international clients. “The financial indicators of 2018 show that we have been working effectively to implement our business strategy on both local and international markets. Despite the fact that indicators under several items have fallen, in general, the overall balance sheet is positive, which proves that we are still a stable and competitive bank. I am confident that through improvement and implementation of our business development strategy, which includes long-term investments in the widening of the range of products and services and in the development of modern banking technologies, the Bank’s financial indicators will remain positive”, - said Mr Bramwell.
Key results:
In 2018, the Bank’s net operating income was EUR 35.4 million (in 2017 – EUR 44.5 million). In comparison with the previous year, the Bank’s net operating income decreased by 20%.  
The Bank’s main balance sheet figures are as follows:
  • total assets as of 31 December 2018 reached EUR 569.5 million, a decrease by 28% comparing to the indicators as of 31 December 2017;
  • clients’ loan portfolio at the end of 2018 was EUR 179.2 (a 16% decrease year-on-year);
  • the liquidity ratio at the end of the reporting period was 64.61% (as of 31 December 2017 – 61.33%).
As regards equity, key highlights are as follows:
  • the Bank’s capital adequacy ratio as of 31 December 2018 was 12.48%, compared to 14.24% in December 2017;
  • the Group’s capital adequacy ratio as of 31 December 2018 was 11.26%, compared to 10.41% in December 2017;
  • the Bank’s/Group’s capital adequacy ratio as of 31 December 2018 was, accordingly, 12.48% and 11.26%.
The Bank’s profit for 2018 was EUR 1.1. million.