Parex bank to open Baku branch

The net profit of Parex banka in 2006 amounts to LVL 48 million (85 mln euros), which is a 59% year on year increase, according to the results audited by Ernst & Young and approved on 26 March, 2007, at the Bank's Annual General Shareholder Meeting.

Parex bank's assets grew by 34 % and amounted to LVL 2.35 billion in 2006. The amount of attracted deposits has increased by 17 % and reached LVL 1.46 billion, while the loan portfolio of the Bank has been increased by 62 %, amounting to LVL 1.32 billion.

Parex President Valery Kargin said Latvia enjoyed fast growth in banking sector and was the leader among the EU members for the GDP growth rate.

"In parallel, Latvia was a leader for the rate of inflation," he added.

He said the group intends to expand its activity abroad.

He said that Hamburg (Germany) and Malmo (Sweden) are on the main targets. The bank has branches in Berlin and Stockholm.

"We applied the National Bank of Azerbaijan for license to open a branch there. Our Parex Leasing and Factoring Company is operating in Baku, and has become the largest leasing company in this country. We rely on Ilham Aliyev's promises he made during his visit to Latvia," Valery Kargin said.

With EUR 3.4 billion in assets, Parex banka is one of the leading banks in the Baltic States, offering integrated client services, including lending, payment card services, leasing, asset management and securities brokerage. The Bank is represented in 15 countries through its wide network of representative offices, branches and subsidiaries, including a subsidiary in Switzerland, AP Anlage und Privatbank AG.

Parex banka is rated Baa3 by Moody's Investors Service, BB+ by Fitch Ratings and BBB by Capital Intelligence. APA-Economics