The Baltic Investment Group Bank AS (BIG) group continued its successful expansion in 2005 into the small and retail loans market. The volume of loans given to its clients grew by 102% during the year to 473.7 million EEK. BIG’s balance sheet total increased during that period by 102% as well, comprising 561.4 million kroons as of the end of the year. In 2004 BIG’s balance sheet total was 276.5 million kroons.
In 2005 BIG earned 63.3 million kroons in profit – 30.4 million kroons more than in 2004.
The main factors that led to these increases were continued rapid economic growth, the positive assessments of consumers of developments in the economic situation, expansion of our branch network, and our active marketing activities. A comparable increase in volume was observed in BIG’s Latvian subsidiary, AS Baltijas Izaugsmes Grupa.
The most important economic event for BIG in 2005 took place on 28 September when the company obtained its credit institution licence, which ensures additional supervision of our activities and raises the level of our financial reliability. Financial reliability is also boosted by the holding of our legal reserve in the Bank of Estonia, which comprises on average 13% of extraneous resources involved, excluding liabilities to national credit institutions. Obtaining our credit institution licence also led to intensive change and development in the company’s internal procedures and regulations.
In September 2005 the share capital of BIG was increased by 72.816 million kroons to 80 million kroons in order to ensure its compliance with the capital requirements of credit institutions. The share capital increase was in the form of a bonus issue of both the undistributed profit from previous periods and the partial profit of the financial year.
During 2005 BIG opened four new branches in Estonia. As of the end of that year, BIG had a total of 11 branches in Estonia and 3 branches in Latvia.
BIG was an active issuer of debt instruments on the Estonian finance market. The volume of debt securities issued by BIG reached 295 million kroons by the end of the year, comprising 53% of the group’s balance sheet total and 70% of involved extraneous resources. Since 29.11.05 the Tallinn Stock Exchange bonds listing has included 450,000 Baltic Investment Group Bank bonds with a nominal value of 100 kroons (ISIN EE3300077015). BIG’s Latvian subsidiary is not involved in the issuance of debt instruments.
The average number of employees in the group in 2005 was 85, with total gross salaries paid amounting to 12.122 million kroons. Management fees in the same period came to 3.046 million kroons and board fees to 0.572 million kroons.
The bank’s goals for 2006 are to continue to develop the group\'s internal procedures, to expand its sales network, to improve its reputation generally and increase its recognition, and to guarantee stable, long-term inclusion of financial instruments.
Baltic Investment Group Bank AS is a credit institution specialising in small and retail loans. Unlike universal banks, BIG does not directly offer additional services that are not connected with its main activities. The group’s advantages on the market are its highly qualified and development-minded team, its flexibility in client relations, its contemporary IT solutions and its range of products, which well suit its clients.
Our Latvian subsidiary, AS Baltijas Izaugsmes Grupa, offers the same loan services as its parent company, and the main activity of OÜ Rüütli Majad is the management of real estate required for bank operations.
The balance sheet and income statement are available here.
The complete public annual report for 2005 is available on the websites of the Tallinn Stock Exchange at www.omxgroup.com/tallinn and the Baltic Investment Group Bank at www.big.ee.
Eero Varkki
Baltic Investment Group Bank AS
Chief Financial Officer
Phone: +372 737 7599
