Attīstības finanšu institūcija Altum
Annual Financial Report
Audited JSC Development Finance Institution Altum Consolidated and Separate Annual Report for the year ended 31 December 2019
Inside information, 2020-04-02 12:43 CEST --
In accordance with the audited report JSC “Development Finance Institution Altum” Group (hereinafter referred to as - Altum Group) has made a profit of 8.1 million euros in 2019 that is a double profit increase in comparison with the year 2018 when the Group made a profit of 4.1 million euros.
Since the beginning of the year, Altum Group’s financial instruments portfolio has grown by 15.4% (79 million euros) in terms of volume and by 20.5% (3,742 projects) in terms of the number of projects. Among financial instruments, the fastest growth is seen in the guarantee portfolio, which has grown by 20% (47 million euros) in terms of volume and by 31% in terms of the number of projects. A focused improvement of the product range and the continuous increasing of the company’s efficiency has resulted in the increase of financial instruments portfolio from 350 million euros up to almost 600 million euros within a period of 5 years reaching a record profit in 2019.
Outstanding financial instruments portfolio (gross) is of 593 million euros as at 31 December 2019, comprised by 22,022 contracts, including:
guarantees portfolio of 284 million euros, the total number of contracts 15,615;
loan portfolio of 240 million euros, the total number of contracts 6,166;
investments in venture capital funds for the total amount of 68 million euros, the total number of projects financed by funds – 241.
Reinis Bērziņš, Chairman of the Management Board of Altum:
“The successful Altum’s performance of 2019 is an indicator of gradual economic growth of Latvian business community and people in the past period, which we have facilitated with funding, understanding and service. Good financial performance is achieved due to increasing business volume and cost-efficiency.
The first quarter of 2020 has been marked by a turbulence created by the rapid spreading of coronavirus all over the world. In these difficult circumstances of the spreading of Covid-19 in Europe and the whole global society, Altum has become the one of pillars for the support of entrepreneurs affected by the crisis. When predicting the development of the situation and reacting to the processes in Latvia and whole world as efficiently as possible, Altum as one of the first development finance institutions in the European Union designed special financial instruments for the support of the entrepreneurs affected by the crisis in order to help enterprises of all sizes to survive the crisis and stimulate the recovery of their financial health regardless of the industry after the situation will return to normal. Altum acted promptly and has been ensuring credit guarantee and loan finance instruments on especially favourable terms to the enterprises affected by the crisis as of 25th of March. The total amount is 450 million euros and the positive influence to the Latvian economy will be approximately 900 million euros.
Considering the rapid escalation of the situation, we are especially focused on making Altum’s financial instruments available to the enterprises affected by the crisis as quickly as possible. At the same time, we are ensuring all the rest of ALTUM’s financial instruments including start-up loans, funding to SMEs, loans for purchasing agricultural land, Land fund services and other services used by enterprises for development according to their specifics and needs. Continuing our course of action, in the current year we aim at becoming increasingly effective by optimising programme management costs and making the customer application assessment more effective as well by focusing on sustainable fund raising for financial instruments.”
JSC Development Finance Institution Altum is a Latvia state-owned company that ensures access of the enterprises and households to the financial resources by means of support financial instruments - loans, guarantees, investments in venture capital funds - in the areas defined as important and to be supported by the state, thus developing the national economy and enhancing mobilization of the private capital and financial resources. On 25 March 2019 Moody’s Investors Service (Moody’s) reconfirmed Altum’s Baa1 long-term issuer rating, with outlook stable. The baseline credit assessment (BCA) was upgraded to investment grade rating baa3. The assigned Moody’s rating of Altum is one of the highest credit ratings assigned to corporate entities in Latvia. On 24 October 2017 the bonds issued by Altum were listed on a regulated market – Baltic Bond List of Nasdaq Riga. Altum was the winner of Stock Exchange Event of the Year award in Nasdaq Baltic Awards 2019.
JSC Development Finance Institution Altum
Investors Relationships Division
Tel.: +371 67774023, +371 26165699