Financial statement for Q4 202004.02.2021
LPB Bank Assets increased by 21%.
The fourth quarter of 2020 was beneficial for LPB Bank, despite the economic slowdown caused by the pandemic. All the most important efficiency indicators and performance of the Bank's key factors are at a good and solid level due to the implementation of the strategy chosen by the Bank, namely, the offer and development of e-commerce services, as well developing successful business relationship with Fintech companies. In December, the number of e-commerce transactions in euro increased by 86% compared to the same period previous year, while in 2020 the number of transactions in euro increased by 58%.
The most important financial indicators of LPB Bank at Q4 of 2020 (unaudited):
- The amount of the Bank’s assets - to EUR 236,5 million;
- The Bank’s operating income 13.1 EUR million;
- The Bank’s capital and reserves amounted to EUR 32,9 million;
- The Bank's liquidity coverage ratio reached 158%, while the Bank's capital adequacy ratio reached 21.08%.
During the reporting period, the Bank continued to expand the range of services in the local market: a new landing page was developed. The content of the landing page was elaborated to attract and successfully cooperate with Latvian entrepreneurs.
In October, the Bank participated in the RIGA COMM 2020 Fintech conference, by sharing its experience on the development of e-commerce and how to gain business benefits by using the latest technologies of beneficiary banks.
In cooperation with HR Optimum Solutions, the Bank began to offer a unique service to the Latvian market – a Bonus Card to Latvian companies, which includes a clear and well-thought-out employee motivation system with the possibility to regulate the amount of allocated funds individually for each employee. One of the advantages for the employer, compared to other types of bonuses, is the opportunity to receive tax benefits.
Following a tradition started five years ago, this year the Bank continued its cooperation with the Children's Hospital Foundation, supporting the development of the Children's Clinical University Hospital. The Bank donated funds for the purchase of mobile nursing workstations.
At the end of the 2020, in accordance with the standards set by the Second Payment Services Directive (PSD2) of the European Union, the Bank complied with all requirements and introduced strict authentication for online payments.
Robert Christian Schoepf, Chairman of the Board of LPB Bank says:
“We are pleased with the fourth quarter's financial results despite the severe challenges of the pandemic to each country's economy as well as to the financial sector. Undoubtedly, Covid-19 left some traces in the Bank's performance, but all financial indicators of the Bank remain at a very good level.
The Bank's assets in 2020 amounted to EUR 236.5 million, which is 21% higher than in the same period last year. The Bank's unaudited profit amounts to EUR 3.6 million. As well in the fourth quarter, the Bank continued to maintain high liquidity coverage and capital adequacy ratios.
As we have noticed, Covid-19 in some business areas served as a strong incentive and facilitated the development of e-commerce. We will continue to adapt to changes in the financial markets and the banking sector, and we are confident that we will be able to strengthen our Bank's position in the Latvian market and in our relations with customers. The Bank's goal for 2021 is to continue technological development in order to strengthen the competitiveness of the offered services.”
We would like to thank the Bank's shareholders and customers for their continued support, as well as LPB Bank employees for their loyalty and contribution to the Bank's development!
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