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BTB: Audited annual report 2009 of AS "GE Money Bank"

Spekuliantai.lt | 2010-03-31 | NASDAQ OMX biržų naujienos | perskaitė: 1613
BTB: Audited annual report 2009 of AS "GE Money Bank"

GE Money Bank Annual report/ annual accounts 31.03.2010

Audited annual report 2009 of AS "GE Money Bank"


Dear customers, partners, shareholders and colleagues,

In year 2009, AS “GE Money Bank” (further “Bank”) succeeded to accomplish its
goals and attained planned results, despite very challenging macro and banking
market environment in Latvia.

Bank conducted several actions to ensure safety and stability for its
customers, and guaranteed that by high liquidity and capital base that exceeds
regulatory requirements. In addition, Bank offered several innovative and
beneficial products and services that are in line with our responsible lending

GE Money Bank leveraged on experience of its owner, General Electric Company,
one of the largest and most financially secure corporations in the world. GE
announced a profit for 2009 of US$ 11,2 billion.

Driving growth via safety and stability
In 2009, in order to manage business through economic environment, Bank changed
and improved its risk management systems, simplified Bank's structure, thus
enhancing operational rhythm, introduced several IT projects, as well as
optimized costs.
During accounting period - at a time when the total deposit market was falling,
Bank succeeded in increasing resident deposit base by 26% since the beginning
of 2009. Thus we also increased our deposit market share.

Such growth was attained mostly due to Bank's offered deposit products and
several successful deposit campaigns. Reacting on consumer demand, Bank was
first to launch in Latvian market flexible savings product - high yield savings
account “Account of Opportunity” provided availability of customers' funds and
attractive interest rate.

Similarly, beneficial interest rates were offered also for term deposits.
Thinking of growth and stability of Latvian companies last year the Bank
started offering also beneficial packages for legal entities “Corporate savings
package” and “Active businessman package”. These bundles have been one of the
best offers in the market.

As a result, expanding the range of offered products, continuing to invest in
service quality enhancement and training of employees, the Bank increased
number of served customers. At the end of the year 2009, 170 thousand private
and more than 7,5 thousand legal entities entrusted their financial needs to
the Bank.

Considering the economic situation, the Bank has used a more rigorous approach
to risk assessment and continued creating reserves. The total number of
reserves in 2009 comprises LVL 25,072 thousand. In total reserves comprise 19%
of the credit portfolio. As a result the Bank concluded the year 2009 with
audited losses LVL 21,279 thousand. Company's operating income before tax and
provisions was LVL 3,438 thousand.

Bank's total assets in 2009, compared with previous year, on average have
increased up to LVL 257,973 thousand, LVL 143,157 thousand were allocated in
loans; at the same time deposit volume reached LVL 212,903 thousand.

One of the most significant strategic directions in 2009 was ensuring stability
and safety to Bank's customers and preparing for future challenges. In March,
own capital of the Bank was increased by LVL 30 million. Having regard of this,
as well as amount of deposits attracted by the Bank its capital adequacy
indicator on 31.12.2009 was 15.92%, which nearly two times exceeds the
requirement established by the Capital and Financial Market Commission
(hereinafter - FCMC) of 8%, while the liquidity ratio was 97.37%, which was
more than three times as compared to FCMC standard 30%.

Subsidiary companies - number of customers and assets increased
Ensuring a wide range of banking products to its customers the joint stock
company „GE Money Atklātais pensiju fonds” also continued operations within the
Bank's concern offering to customers 3rd pillar pension plans “Rumba” and
“Tvists”. While the investment management company „GE Money Asset Management”
managed 2nd pension pillar plans “Džezs” and “Blūzs” and customer investment in
three investment funds - “GE Money Eastern Europe Balanced fund”, „GE Money
European Bond fund” and „GE Money Eastern Europe Equity fund”.

During 2009, the total amount of managed assets increased more than two times
and reached LVL 18,500 thousand. The number of customers for the Group in this
line of business increased from 24 thousand to 37 thousand. The managed 2nd
pillar pension plans comprised 2.3% of the market share at the end of the year.

With responsible attitude towards society and employees
The Bank realizes its obligation of being a socially responsible employer and a
company in general - it's a part of Bank's operational strategy both here in
Latvia and elsewhere in the world. In Latvia this strategy is realized in two
principle directions - by fostering public financial literacy and implementing
the family friendly company's policy.

Bank continued providing support to an independent non-profit organization
“Money Planning Centre” (hereinafter - MPC). Primary goal of MPC is educating
society in different financial matters. AS “GE Money” established MPC already
in 2007 reacting to the public demand and also implementing philosophy of
responsible lending.

In 2009, Bank supported MPC both with financial and intellectual resources - in
a year's time several projects were realized and innovative budget planning
tools offered to the public, Bank's experts have provided virtual consultations
and have participated in several seminars organized by MPC explaining
peculiarities and opportunities of savings products.

“GE Money Bank INTELLECTICUS” - university student Olympiad - was Bank's next
step in educating the society. In 2009, the second Olympiad was organized with
the topic “Savings solutions for ensuring financial stability”. The Bank
started the Olympiad tradition in cooperation with the Ministry of Education of
Science of the Republic of Latvia in 2008, wishing to share its international
expertise, pragmatism and also creativity.

According to our conviction, Bank's employees is our biggest value therefore
within the entire year different family friendly company's activities were
offered as well as increasing number of new training programs were developed
and envisaged exclusively for General Electric employees.

Bank's employees were also actively involved in several charity activities
supporting the society.

Our wish is to secure safety, stability and beneficial services to customers,
as well as implemented corporate social responsibility activities in 2009 were
appreciated as Bank's reputation constantly improved. In 2009, the Bank's brand
ranked 5th in the Latvian banking sector - by the “Kapitāls” magazine and the
“DDB Consulting” agency. In the reputation TOP2009 by the newspaper “Diena” and
“Porter Novelli” the Bank ranked four positions higher vs. 2008 - on 66th place
among all companies in Latvia. This is a significant achievement taking into
account that reputation of only two banks improved their positions in that
ranking last year.

Stable platform for development and growth also in the future
We expect that also in 2010 both Bank's customers and the banking sector will
still face economic challenges and for this reason the principle strategic
direction of the Bank is to continue managing the company through the current
economic cycle thus ensuring Bank's security and stability to its customers.
Therefore our focus is to ensure high capital adequacy and liquidity base,
healthy deposit base, ensuring efficient risk management and debt collection

Given our wish to concentrate in these areas, our business operations in Latvia
will be more focused; that will allow us to emerge a stronger market player in
the period when the economic situation stabilizes and market will begin to grow

We are convinced that GE business management experience during different
economic cycles as well as Bank's professional management and employees' team
and rigorous approach to risk management will ensure company's further
development in 2010.

Between the reporting date and the date of signing this financial report there
have been no events that could significantly influence the results of the
reporting period.

In conclusion, we would like to express gratitude to the employees of the Bank
for work contributed to the Bank's growth and to the customers and partners for
their trust and loyalty to the Bank!

Contact information:
Tija Ezeriņa
Head of Communication division
GE Money Bank Latvia
T.: +371 7024704
Mob.: +371 27876080
E-mail: tija.ezerina@ge.com

1. fs_31 12 2009_eng_final_eur.pdf
2. fs_31_12_2009_eng_lvl_final.pdf

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