PAREX BANKA
Positive results and initiatives marked 2005 for Parex. Net profits doubled to reach another record high and RoE strengthened to 19.6% from 12.1% the previous year.
Besides being central and eastern Europe’s 37th largest bank by Tier 1 capital, which grew by 25.2%, the bank showed significant increases in assets and local retail deposits, which grew by 29% and 41.5% respectively. The loan portfolio also showed strong expansion, increasing by 24%, including a 47% rise in mortgage lending.
Parex continued its international expansion by opening a branch in Berlin, the first financial institution of the new EU member states to start operating in western Europe. It also issued local public notes and Eurobonds for the first time.
“It is a great pleasure for us that The Banker magazine has named Parex banka the Bank of the Year in Latvia for the fourth time. 2005 was another year of great success and significant developments for the Bank,” says Valery Kargin, president and chairman of the board. “Facing a demanding market, we managed to steadily improve our positions in all major fields; we became the fastest growing retail bank in Latvia.
“In our view, this award is an important indicator of the quality of our activities not only in our home markets, but also in the international arena. Since 2000, Parex banka has received 29 awards from international business magazines worldwide, highlighting the confidence in and recognition of the bank in the international banking community.”
