Sunday 22 January 2017

Pre-tax profits at Rietumu soar to €19m

Published 06/02/2012 | 05:00

Pre-tax profits at Rietumu Banka -- the Latvian bank in which businessman Dermot Desmond has a one-third stake -- soared over 270pc to €19m (13.3m Lat) last year as its impairment losses shrank.

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New accounts for the business, one of the biggest banks in the Baltic country, show that interest income rose 8.5pc in 2011 to €48.8m.

The bank also generated €27.2m in commission and fee income last year compared to €24.2m in 2010. Administrative expenses at the bank climbed from €26.7m to €33m, but its impairment losses declined from €27.5m to €15.1m.

The bulk of Rietumu's profits were generated in the second half of the year. In the first half of 2011 it reported a pre-tax profit of about €4.7m.

Bailed out by the IMF and the EU nearly four years ago, the Latvian government imposed draconian measures -- including massive pay cuts for civil servants. The country has seen its economy surge since last year, when it grew 4.5pc.

Irish Independent

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