Financial information
Financial reports
| 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|
| Key financial data | (audited) | (audited) | (audited) | (audited) | (audited) | (audited) | (audited) | (corrected) | (corrected) |
| Net interest income (EUR ’000) | 23 026 | 17 765 | 16 974 | 16 717 | 14 572 | 11 569 | 11 302 | 11 602 | 11 024 |
| Operating profit (EUR ’000) | 28 663 | 17 810 | 11 484 | 13 829 | 5 539 | 8 131 | 4 092 | 8 709 | 2 170 |
| Profit for the period (EUR ’000) | 28 663 | 17 810 | 11 484 | 13 829 | 5 539 | 8 131 | 4 092 | 8 709 | 2 170 |
| Cost to income ratio (CIR) | 23.32% | 26.34% | 38.83% | 39.46% | 47.51% | 52.58% | 74.84% | 50.30% | 88.40% |
| Employees | 254 | 255 | 234 | 226 | 211 | 203 | 222 | 230 | 242 |
| Total assets (EUR ’000) | 1 455 350 | 1 316 086 | 1 099 588 | 976 204 | 850 704 | 560 061 | 495 939 | 453 668 | 443 400 |
| Financial debt (EUR ’000) | 755 011 | 599 305 | 458 382 | 360 909 | 342 490 | 217 943 | 177 249 | 146 157 | 141 854 |
| Tangible common equity (TCE) / Total tangible managed assets (TMA) ¹ | 21.6% | 23.4% | 27.0% | 33.82% | 33.56% | 29.40% | 31.70% | 35.10% | 36.50% |
| Equity and reserves (EUR ’000) | 416 055 | 389 353 | 395 983 | 440 736 | 382 594 | 232 738 | 221 590 | 222 848 | 210 406 |
| Return on avarage equity (ROE) | 7.1% | 4.5% | 2.7% | 3.4% | 1.8% | 3.6% | |||
| Total risk coverage: (EUR ’000) | 309 853 | 281 355 ² | 297 218 | 285 954 | 180 205 | 87 456 | 77 815 | 67 593 | 66 508 |
| Risk coverage reserve | 269 321 | 226 793 ² | 230 524 | 159 196 | 112 567 | 99 778 | 85 276 | 62 651 | 63 636 |
| Risk coverage reserve used for provisions | (46 585) | (42 078) | (38 039) | (29 496) | (28 197) | (27 829) | (19 268) | (4 753) | (4 323) |
| Portfolio loss reserve (specific reserve capital) | 85 736 | 96 587 | 109 979 | 159 700 | 102 264 | 15 507 | 11 807 | 9 695 | 7 195 |
| Portfolio loss reserve used to compensate provisions in the distribution of annual profit | 1 381 | 53 | (5 246) | (3 446) | (6 429) | - | - | - | - |
| Liquidity ratio for 180 days ³ | 324% | 430% | 366% | 518% | 464% | 582% | 227% | 482% | 449% |
| Net Cash flows from operating activities (EUR ’000) | 135 234 | 35 724 ⁴ | 89 535 | 49 555 | 21 966 | 39 813 | 7 997 | (10 146) | 34 518 |
| Net Cash flows from financing activities (EUR ’000) | 4 579 | 9 009 | 3 525 | 43 768 | 165 800 | 18 700 | 12 013 | 22 299 | 5 560 |
| Net Cash flow from investing activities (EUR ’000) | (249 994) | (18 467) ⁴ | (8 437) | 4 553 | (4 016) | (11 230) | 8 307 | 3 891 | 759 |
| Support instruments gross value (EUR ’000), of which | 1 177 888 | 1 101 797 | 1 064 821 | 979 130 | 872 302 | 667 649 | 553 628 | 465 724 | |
| Financial instruments gross value (EUR ’000) | |||||||||
| Loans (excluding sales and leaseback transactions) | 418 079 | 359 246 | 311 844 | 315 674 | 302 481 | 225 144 | 210 208 | 207 065 | 217 429 |
| Guarantees | 523 538 | 480 025 | 481 013 | 414 978 | 359 605 | 284 232 | 236 895 | 182 376 | 147 175 |
| Venture capital funds | 97 999 | 97 456 | 90 277 | 85 973 | 73 165 | 68 331 | 59 698 | 62 299 | 64 785 |
| Land Fund, of which: ⁵ | 135 113 | 96 938 | 80 542 | 79 163 | 68 258 | 39 634 | 21 717 | 11 328 | 4 635 |
| - sales and leaseback transactions | 42 137 | 28 692 | 27 089 | 32 999 | 31 500 | 15 268 | 6 923 | 520 | - |
| - investment properties | 92 976 | 68 246 | 53 453 | 46 164 | 36 758 | 24 366 | 14 794 | 10 808 | 4 635 |
| Total | 1 174 729 | 1 033 665 | 963 676 | 895 788 | 803 509 | 617 341 | 528 518 | 463 068 | 434 024 |
| Number of transactions | 38 730 | 35 260 | 33 796 | 30 978 | 26 578 | 22 437 | 18 603 | 14 655 | 11 561 |
| Volumes issued (EUR ’000) (by financial instrument) | |||||||||
| Loans (excluding sales and leaseback transactions) | 221 741 | 141 993 | 95 820 | 100 966 | 138 238 | 64 320 | 59 608 | 51 349 | 59 465 |
| Guarantees | 142 902 | 99 440 | 153 067 | 126 997 | 137 425 | 98 240 | 88 765 | 68 615 | 56 109 |
| Venture capital funds | 15 745 | 23 920 | 18 526 | 29 158 | 14 014 | 9 022 | 4 149 | 2 638 | 21 356 |
| Land Fund, of which: ⁵ | 40 506 | 17 676 | 7 414 | 10 595 | 28 191 | 16 384 | 10 823 | 6 359 | 3 704 |
| - sales and leaseback transactions | 19 692 | 7 916 | 3 105 | 3 254 | 16 796 | 7 239 | 6 835 | 520 | - |
| - investment properties | 20 814 | 9 760 | 4 309 | 7 341 | 11 395 | 9 145 | 3 988 | 5 839 | 3 704 |
| Total | 420 894 | 283 029 | 274 827 | 267 716 | 317 868 | 187 966 | 163 345 | 128 961 | 140 634 |
| Number of transactions | 6 710 | 4 846 | 6 539 | 6 579 | 6 147 | 5 559 | 5 590 | 4 839 | 4 537 |
| Total contribution to economy, including the participation of the final recipients (EUR ’000) | 978 319 | 946 008 | 765 577 | 791 646 | 696 306 | 531 661 | 460 045 | 370 560 | 359 706 |
| Leverage for raised private funding | 129% | 229% | 123% | 177% | 114% | 142% | 162% | 185% | 162% |
| Volume of support programmes funding per employee (EUR ’000) | 4 625 | 4 054 | 4 118 | 3 964 | 3 808 | 3 041 | 2 381 | 2 013 | 1 793 |
| Long-term rating assigned by Moody’s Investors Service | Baa1 | Baa1 | Baa1 | Baa1 | Baa1 | Baa1 | Baa1 | Baa1 | - |
¹ TMA includes off-balance sheet item outstanding guarantees.
² As of Q3 2024 Risk Coverage Reserve excludes the public funding for full coverage of potential capital rebate component. Thus 1) restated comparatives for Risk Coverage Reserve as at 31 December 2023 are EUR 226 793 thousand instead of EUR 315 649 thousand and 2) restated comparatives for Total Risk Coverage as at 31 December 2023 are EUR 281 355 thousand instead of EUR 370 211 thousand.
³ Liquidity ratio calculation takes into account the previous experience and management estimate of expected amount and timing of guarantees claims.
⁴ As of Q2 2024 Term deposits increase is reclassified within Cash flows from investment activities from Cash flows from operating activities. Thus restated comparatives for Net cash flows from operating activities as at 31 December 2023 should be EUR 138 724 thousand instead of EUR 35 724 thousand and restated comparatives for Net cash flows from investing activities as at 31 December 2023 should be EUR (121 467) thousand instead of EUR (18 467) thousand.
⁵ Taking into account the significance of the volume, Latvian Land Fund portfolio, which consists of sales and leaseback transactions and investment properties, is also presented in the operational volumes for the period. As in compliance with the accounting principles and IFRS the sales and leaseback transactions are accounted for under the loans, the loan volume in this table has been reduced for the volume of the sales and leaseback transactions as it is recorded under Latvian Land Fund portfolio.
Definitions of ratios
According to the Altum’s “Mid-term Operational Strategy 2022 -2024”, the following key financial targets on Altum’s financial operations and non-financial targets driven by Altum strategic objectives, regulatory framework and policy planning documents in order to ensure the performance of functions assigned to public entity, were set:
- The Strategy anticipates a moderate increase in the volume of new transactions, with the volume of new transactions growing by 3.24% by 2024;
- Altum’s gross portfolio of financial instruments is expected to grow at an average annual rate of 10%, reaching a total portfolio size of EUR 1.3 billion by the end of 2024;
- Contribution to economy by Altum volumes issued characterises a projected increase in Altum’s impact on economic development by facilitating mobilisation of private capital and financial resources in the priority areas. In 2024, this indicator is planned at EUR 773 million level;
- Return on Equity (ROE) is planned to remain above 1.3% during the Strategy implementation period;
- Equity at the end of the reporting year is expected to show positive dynamics;
- To ensure Altum’s financial efficiency, the Cost-to-Income Ratio is planned to be no more than 65%.
Perfomance of financial and non-financial KPI’s:
Excerpt from Corporate Governance Report 2024 (available on altum.lv section Corporate governance), which is part of the audited Annual Report 2024.