Norvik Banka has seen significant positive changes in 2015 in its revenue drivers and balance sheet structure: for the full-year net operating income increased by 44% on the previous year, and total assets increased by 3%.
Therefore, it may be affirmed beyond a doubt that the Bank’s management team is satisfied with the operational results of 2015 and convinced that the long-term development strategy is showing just rewards over the short-term.
The Bank’s main balance sheet figures last year are as follows: total asset amount reached EUR 1 006 million at the end of 2015 (increase by EUR 29.4 million if compared to the indices as of 31.12.2014); the loan portfolio at the end of 2015 reached EUR 245.9 million (increase by EUR 9 million on the previous year); and the liquidity ratio at the end of the reporting period reached 64.22% (compared to 58.75% in December 2014).
Norvik Banka follows a liquidity management strategy that provides a high rate of return balanced for the risk assumed, whilst purposefully maintaining significantly higher than the minimum required level of reserves.
The Bank’s net interest income for 2015 increased year-on-year to EUR 16.6 million compared to EUR 7.4 million in 2014. The successful implementation of a conservative lending program through the previous period led to significant improvement in this line item and gives a solid foundation for the coming years.
However, net commission income for 2015 showed a limited decrease of 6.6% due to increased external pressures and decreased transaction volumes, decreasing to EUR 16.9 million compared to EUR 18.1 million in 2014.
In 2015, on increased market volatility the Bank earned EUR 14.4 million on financial instrument trading and foreign exchange rates compared to EUR 8.2 million in 2014.
Norvik Banka’s profit prior to recognition of asset value decrease and taxes in 2015 was EUR 18.6 million (compared to net profit in the amount of EUR 8.7 million in 2014).
In 2015, the Bank recognised losses from the asset value decrease in the amount of EUR 28 million, incl. EUR 11.6 million caused by the geopolitical situation and the Russian rouble’s fall.
The increases in capital and liquid resources enabled the Bank to diversify its total assets – to both increase the loan portfolio, and focus on increasing returns on investment securities in the capital markets unit.
The Bank continues to work on improving the equity/capital position to meet its strategic goals.
The bank distributed non-audited financial results on 31 March 2016, while the audited financial reports will be available in mid-April.
Considering complex structure of the Bank’s group, a large number of companies included in consolidation, variety of their industries, as well as the fact that a substantial part of the assets is located in third countries, the Bank needed additional time to prepare and process information for the annual audit.