Likvidējamā ABLV Bank, AS
Annual Financial Report
Audited Report of ABLV Bank, AS in Liquidation for Year 2019
Riga, Latvia, 2020-03-09 14:38 CET --
Liquidation Committee of ABLV Bank, AS in liquidation (hereinafter - the Company) has approved the audited financial report of the Company for the year 2019. The audit of the 2019 Financial Report was carried out by Nexia Audit Advice, SIA, a firm of sworn auditors.
Since 12 June 2018, the voluntary liquidation (hereinafter – liquidation) of ABLV Bank, AS is managed by the Liquidation Committee, which currently consists of five liquidators. In 2019, the Liquidation Committee of ABLV Bank, AS in liquidation (hereinafter – the Company) continued the liquidation process in close cooperation with the stakeholders, including state institutions, thus ensuring professional management, transparency and openness of the liquidation process under the supervision of the Financial and Capital Market Commission (hereinafter – the FCMC). The objective of liquidation process remains unchanged – to satisfy the claims of all recognized creditors of the Company to full extent, unless there are legal obstacles precluding the payout.
Creditor review process was commenced in the reporting period. The Company is obligated to carry out creditor review in accordance with the applicable statutory requirements in the field of prevention of money laundering, as well as terrorism and proliferation financing. The reviews are carried out by a team of Ernst&Young consultants (hereinafter – EY) comprised of experts from five countries. In order to fulfil its tasks, EY introduced appropriate IT tools, developed necessary procedures, as well as formed and trained a team of specialists. The Company implemented support procedures. In 2019, 488 creditor reviews have been initiated with the total amount of creditor claims exceeding EUR 100 million. By the end of the reporting period, EY has completed review of transactions of creditors and their affiliated parties in the amount of EUR 243 million.
On the grounds of the initial results of the review, in October 2019, first payouts ware made to creditors falling into the groups 2 to 6 (inclusive) in accordance with Clauses 11 to 5 of Section 192 of the Credit Institutions Law (the wording of the Law that was in force until 14 November 2018). At the end of the reporting period 858 creditors were ranked in these groups with EUR 352 million of admitted claims. These groups are comprised of depositors that are natural persons, small and medium-sized enterprises, as well as state institutions.
Meanwhile, until the end of 2019 the guaranteed compensations were paid to more than 13 800 clients. So far, EUR 444.6 million have been disbursed to clients in the form of guaranteed compensations, which is 92.6% of the total amount transferred by the Company to the Deposit Guarantee Fund.
From the commencement of its operation until 31 December 2019, the Liquidation Committee has recovered assets in the amount of EUR 749.2 million, including EUR 444 million from issued loans and EUR 273 million from securities, thus reducing the size of securities portfolio to EUR 33 million.
The amount of Company’s assets is sufficient to cover all creditor claims in full, which was the most significant prerequisite for the regulators (the European Central Bank and the FCMC) to approve the liquidation. At the end of the reporting period, 83.5% of all creditor claims were covered by the recovered assets held with Latvijas Banka (Central Bank of Latvia) (incl. assets in fiduciary accounts).
In order to recover the remaining assets necessary for satisfying creditor claims, professional management of the EUR 397 million loan portfolio and the EUR 144 million investments in subsidiaries will remain critical.
The key financial indicators as of 31 December 2019 are the following:
total amount of assets: EUR 2.35 billion;
creditor claims filed: EUR 2.01 billion;
available cash: EUR 1.71 billion
capital and reserves: EUR 289.8 million.
Head of Communication Department
ABLV Bank, AS in Liquidation
Tel.: +371 6700 2432