Industra Bank's consolidated profit reached 0.3 million euros in the first quarter of 2022
In the first quarter of 2022, Industra Bank operated with a consolidated profit of 285 thousand euros, continuing to invest in the services’ development. An eye-catching and modern internet bank will soon reach the bank's customers, which will make management of their daily finances much more convenient.
In the first quarter of 2022, Industra Bank earned a consolidated profit of 285 thousand euros, compared to 44 thousand euros in the corresponding period previous year.
The bank’s interest income amounted to 508 thousand euros in the first quarter of 2022, increasing by 26.7% during the year and having a positive impact on the overall results. Commission income, on the other hand, decreased by 4.4% in the first quarter of this year, reaching 2.4 million euros, compared to 2.5 million euros in the same period last year. The commission's revenue fell mainly because of the sanctions imposed on Russia and Belarus, which led to a significant reduction in payments to and from these countries, and this aspect will continue to be valid in the coming months.
Certainly, we will be able to assess the real impact of current events on the business environment retrospectively only. In response to the war in Ukraine, we have closed correspondent bank accounts in Russia and Belarus. Quite a few companies have made decisions to reduce business in these countries. In support of the citizens of Ukraine, we have been opening accounts and issuing payment cards for Ukrainian war refugees following an eased procedure and free of charge since February 28. So far, we have opened accounts for 335 Ukrainian citizens.
At the same time, we are looking for solutions to replace income – we are working more actively to facilitate issuing new loans to Latvian companies.
Raivis Kakānis, Chairman of the Board of Industra Bank, points out: “We need to ensure the transformation to a bank focused on issuing loans and other services that provide added value to our customers much faster. We currently work on attracting new employees to speed up the loan review and issuance process. We have also improved the process of an escrow account service; thus, we can get from the receipt of the application to the signed escrow account agreement much faster, allowing the parties to protect themselves from unpleasant surprises. We are also working on introduction of the operating income account, which is very much awaited by the representatives of the creative professions in connection with the changes in the legal framework, which will come into force at the beginning of next year. We plan to launch this service on October 1. These and other development projects are increasing the bank's cost base now, but they will significantly improve our offering to customers and strengthen our competitiveness in the future.”
About Industra Bank:
Industra Bank is a Latvian credit institution founded in 1994 with more than 18 thousand customers - over a thousand legal entities and 17 thousand private individuals. To reflect the change in the bank's strategy, in January 2020 the bank changed its name from Meridian Trade Bank to Industra Bank. The bank is owned by the local entrepreneurs, and it focuses on servicing Latvian small and medium-sized enterprises. For the convenience of customers, the bank offers eight service centers - four of them located in Rīga, while the rest in Daugavpils, Liepāja, Ventspils and Jelgava.