In the first half of 2007, the Group's core business continued expansion, bringing along increase in main financial indicators.
Compared to a year ago, the balance sheet total expanded 2.6-fold to 2,269.4 million kroons and the loan portfolio grew 2.1 times to 1,614.5 million kroons.
Interest income surged to 236.9 million kroons, a two-fold improvement on a year ago. Net income for the period rose to 89.3 million kroons.
BIG's term deposits portfolio increased to 192.2 million kroons by the end of the half-year, which is a 51% increase compared to the beginning of the year. BIG's strategy is to continue offering best interest rates for term deposits among Estonian banks.
The Group's structure and the managements of group entities remained the same throughout the period.
On 1 August 2007, the membership of the Parent company's management board changed as Head of Sales and Marketing Kaido Saar ascended to the board. Since 1 August 2007, members of the management board have been Veiko Kandla, Kaido Saar, and Targo Raus
In 2007, the Group began preparing for penetration of the Lithuanian market. On 25 July, a representation was registered with the Lithuanian Company Register. The representation will complete the activities required for opening a branch and launching business operations. A branch should be opened in the second half of 2007.
The development of the Lithuanian consumer loan market has been following the pattern of Estonia and Latvia. Although the Lithuanian market is considerably larger than the Estonian one, the average consumer credit per person and the ratio of consumer loans to GDP are significantly lower than the corresponding figures for Estonia and Latvia. These are the factors which underpin our decision to enter the Lithuanian market.
In the first half of 2007, the number of bank offices operated by Balti Investeeringute Grupi Pank AS increased to 29, including 17 in Estonia and 12 in Latvia. In 2nd half-year BIG has opened another two offices in Estonia and one in Latvia.
At period-end, the Group employed 354 people. Payments made to the Group's management and supervisory board members in the first half of 2007 totalled 1.280 million kroons and 0.332 million kroons respectively.
During the reporting period, Balti Investeeringute Grupi Pank AS issued bonds of 62.7 million euros (981 million kroons) in an international market. The bonds are listed on Stockholm Stock Exchange. In the second half-year, we intend to continue enhancing the efficiency of our internal processes by upgrading our IT solutions, improving management accounting and developing other operations.
The audited interim report for H1 2007 is available in full copy at the internet page of Tallinn Stock Exchange and at the home page of Balti Investeeringute Grupi Pank AS at http://www.big.ee
Targo Raus
Balti Investeeringute Grupi Pank AS
Chairman of the Board
Phone: 735 0923
