Latvijas Krajbanka                                              22.06.2005



AS "Latvijas Krajbanka" informs about current events



The Latvian economy has recently demonstrated fast growth trends which are

reflected in the highest growth rate of the general domestic product in the

European Union, as well as in the rise of living standards. Latvijas

Krājbanka believes that the Latvian domestic market is therefore very

promising, and the Bank will henceforward unreservedly focus on it, with a

special emphasis on servicing the local companies and individuals, providing

the services of a universal bank.



The increase of the volume of loans and deposits also reflects the rapid

development. As at 1 June, 133 million lats have been issued in loans, which

is by 9% more than at the beginning of the year when the volume of issued

loans was 122 million lats. 



The volume of deposits with Latvijas Krājbanka has grown even faster. It has

now reached 185 million lats, which is an increase by 17% from the 158 million

lats at the beginning of the year. 



“These data show that Latvian inhabitants become financially more and more

active and that not only the crediting volumes are growing, but the volume of

deposits is also growing which is an evidence of higher savings and rising

living standards in the country. The current situation is especially beneficial

for focusing on that part of the market which in Latvia does not yet use the

services of any bank, but is just now standing at crossroads. Latvijas Krājbanka,

as the bank traditionally closest to the population, will continue to develop

and offer its customers competitive services needed by the people in Latvia,

focusing on the issue of consumer and mortgage loans, on card products, remote

usage products based on internet and mobile technologies,” said Mr. Andris

Nātriņš, the President of Latvijas Krājbanka.



The number of customers of Latvijas Krājbanka has also grown. While it was 271

thousand at the beginning of the year, the number of Latvijas  Krājbanka’s

customers had already reached 275 thousand at the beginning of June. Especially

strong was the rise in the number of individuals using the services of Latvijas

Krājbanka – from 263 thousand at the beginning of the year to 266 thousand on 1

June. 



“Unfortunately, as experience shows, large banks are reluctant to serve small

customers, declaring it as their priority only in words. Therefore Krājbanka is

exactly the bank where the people can feel welcome even if their incomes are not

high,” said Mr. Andris Nātriņš.



From its very beginnings, Latvijas Krājbanka has been the bank of the Latvian

people, where they have kept their savings and made their payments through it.

Likewise, the vast network of customer service centers makes the bank accessible

to almost all the country’s population. Therefore, Latvijas Krājbanka has prepared

a plan of measures for even further increasing the individual market segment. At

the same time, Latvijas Krājbanka has passed a strategic decision to abstain from

any investments or contributions towards attracting the residents of other

countries as its customers, from opening accounts for residents of other countries

which are not connected with the already existing customers, tested in accordance

with the best practice of know your customer, providing for a gradual reduction of

the proportion of these transactions at the bank. The decision on restricting the

opening of nonresident accounts will bring the advantage that the bank will align

its activities with the newest changes in the legislation, will in the best possible

way comply with the decisions, instructions and requirements passed by the Council

of the Financial and Capital Markets Commission, with special attention on and

monitoring the same. Currently, the total number of nonresidents exceeds only half

a percentage point of the total number of Latvijas Krājbanka’s customers.



To highlight the boosting of its activities in the domestic market, even more

attention will be paid to the small and medium business both in Riga as well as

especially in Latvian provinces. Latvijas Krājbanka is aware that the small and

medium business is the basis for the development of the Latvian economy.



“The small and medium enterprises form the backbone of the Latvian economy, providing

jobs to most of the people both in cities as well as in the countryside. The mission

of the Latvian banks is to support the work of these enterprises, as this will promote

the welfare of the country as a whole and of its population. It is also crucial, if we

look from the point of view of the individual market segment development,” Mr. Andris

Nātriņš stressed. 



The audited profit of Latvijas Krājbanka last year was 1,302 million lats which is by

51% more than the year before. Te profit of the first quarter of this year is 625

thousand lats, which significantly exceeds the profit plan for the first quarter of

this year. 



Ieva Bethere

A/s "Latvijas Krājbanka"

Public Relations and Advertising Board

Press secretary

Tālr.:7092055, mob.6300621