Even in the first three quarters of 2008, the bank managed profits of €105m, accounting for 36% of all Latvian banking sector profits for the period.
“As the key drivers for outstanding results we consider stable margins, efficient cost management and professional risk management,” says Maris Avotins, CEO and chairman. Conservative credit policies have helped the bank to weather the storm, with overdue loans rising from 0.46% at the end of 2007 to 0.74% in the first half of 2008 – just one third of the national average for the period.
“In the future, Swedbank’s focus in Latvia will be maintaining profitability of the existing products, as well as finding new sources of revenues. For example, we are establishing a non-life insurance business in 2009,” says Mr Avotins.
“Also, following implementation of a single brand name in the three Baltic countries, more integration activities are being implemented at a pan-Baltic and Swedbank group level, which will allow us to leverage on existing capabilities and further improve our service quality.
“Following extraordinary growth years in 2006 and 2007, the market in Latvia has entered a steady growth stage, when true client relationships are formed and maintained. This is the time when Swedbank can benefit from investments made into organisational development and demonstrate its internal strength and quality.”
