In the first half of the current year, AS Balti Investeeringute Grupp (BIG) posted a net profit exceeding EEK 2 million owing to the growth of the loan portfolio in Estonia as well as in Latvia.
According to Ingo Põder, chairman of the management board of BIG, the half-year profit has been gained on account of growth in the loan portfolio, and, more specifically, an increase in the volume of housing loans.
Compared to last year, the total volume of loans in the first six months of this year rose about 7%, amounting to approximately EEK 67 million. Compared to last year, BIG's housing loan portfolio grew by 79% in the first half of 2001, amounting to EEK 9 million.
"The majority of loans granted in the first half of the year were consumption-orientated small-scale loan products with above-average yield, which ensure the high yield of loan the portfolio," said Põder and added that all in all BIG granted more than 530 loans within the half-year, which is about 30% more than in the first half of 2000.
Compared to the year 2000, BIG's bonds portfolio has also increased by 11%, totalling more than EEK 40 million. In six months, the total assets of the company grew more than 8%, reaching EEK 87 million mainly due to the positive changes in the bonds portfolio.
Compared to the end of last year, the balance sheet total of BIG has gained close to EEK 7 million, the sum being EEK 87.1 million.
The loan portfolio of AS Vidzemes Kredits, the Latvian subsidiary of BIG, has increased by 34%, bringing the total loans granted to EEK 19 million. Compared to the number of loan transactions and average indicators concerning the loans granted in the first half of 2000, loans granted have grown twice in the first six months of the current year.
According to Aldis Aksiks, vice president of AS Vidzemes Kredits, lat-based loans tied to RIGIBOR have become considerably more expensive in the Latvian loan market in a short period of time due to the deficit of Latvian lats, and transactions with immovables have become slower because of rearrangements in the land registry. Responding to market demand, Vidzemes Kredits followed BIG's example in autumn 2000 and started to grant loans against private person suretyship, which do not require the registration of pledge transactions at registry services. At that time, Vidzemes Kredits was the first and only financial institution in Latvia to do so.
AS Balti Investeeringute Grupp is the greatest lender of money to private persons in the Baltic States after banks and leasing companies. At present, the financing company has close to 2600 clients.
AS Balti Investeeringute Grupp was founded in Tartu in 1992. In 1993 the company expanded to Tallinn and in 1994 to Pärnu. The first foreign branch was established in Riga in 1996. The name of the subsidiary is AS Vidzemes Kredits and its main areas of operation are similar to those of the parent company.
The year 2000 audited net profit of BIG exceeded EEK 5 million, which is three times more than the EEK 1.6 million profit of 1999.
Further information:
Ingo Põder
Chairman of the management board of AS Balti Investeeringute Grupp
Tel. 07 441 950
