Financial information
Financial reports
2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
---|---|---|---|---|---|---|---|---|
Key financial data | (audited) | (audited) | (audited) | (audited) | (audited) | (audited) | (corrected) Due to change of accounting policy on investments in venture capital funds and adoption of IFRS 9 requirements that effects the accounting of public funding risk coverage the comparatives for 2017 and 2016 have been restated. | (corrected) Due to change of accounting policy on investments in venture capital funds and adoption of IFRS 9 requirements that effects the accounting of public funding risk coverage the comparatives for 2017 and 2016 have been restated. |
Net interest income (EUR ’000) | 17 765 | 16 974 | 16 717 | 14 572 | 11 569 | 11 302 | 11 602 | 11 024 |
Operating profit (EUR ’000) | 17 810 | 11 484 | 13 829 | 5 539 | 8 131 | 4 092 | 8 709 | 2 170 |
Profit for the period (EUR ’000) | 17 810 | 11 484 | 13 829 | 5 539 | 8 131 | 4 092 | 8 709 | 2 170 |
Cost to income ratio (CIR) | 26.34% | 38.83% | 39.46% | 47.51% | 52.58% | 74.84% | 50.30% | 88.40% |
Employees | 255 | 234 | 226 | 211 | 203 | 222 | 230 | 242 |
Total assets (EUR ’000) | 1 316 086 | 1 099 588 | 976 204 | 850 704 | 560 061 | 495 939 | 453 668 | 443 400 |
Financial debt (EUR ’000) | 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) TMA includes off-balance sheet item outstanding guarantees. | 23.4% | 27.0% | 33.82% | 33.56% | 29.40% | 31.70% | 35.10% | 36.50% |
Equity and reserves (EUR ’000) | 389 353 | 395 983 | 440 736 | 382 594 | 232 738 | 221 590 | 222 848 | 210 406 |
Total risk coverage: (EUR ’000) | 370 211 | 297 218 | 285 954 | 180 205 | 87 456 | 77 815 | 67 593 | 66 508 |
Risk coverage reserve | 315 649 | 230 524 | 159 196 | 112 567 | 99 778 | 85 276 | 62 651 | 63 636 |
Risk coverage reserve used for provisions | (42 078) | (38 039) | (29 496) | (28 197) | (27 829) | (19 268) | (4 753) | (4 323) |
Portfolio loss reserve (specific reserve capital) | 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 | 53 | (5 246) | (3 446) | (6 429) | - | - | - | - |
Liquidity ratio for 180 days The calculation of liquidity ratio takes into account the previous experience and management estimate of the expected amount and timing of guarantee claims | 430% | 366% | 518% | 464% | 582% | 227% | 482% | 449% |
Net Cash flows from operating activities (EUR ’000) | 35 724 | 89 535 | 49 555 | 21 966 | 39 813 | 7 997 | (10 146) | 34 518 |
Net Cash flows from financing activities (EUR ’000) | 9 009 | 3 525 | 43 768 | 165 800 | 18 700 | 12 013 | 22 299 | 5 560 |
Net Cash flow from investing activities (EUR ’000) | (18 467) | (8 437) | 4 553 | (4 016) | (11 230) | 8 307 | 3 891 | 759 |
Support instruments gross value (EUR ’000), of which | 1 101 797 | 1 064 821 | 979 130 | 872 302 | 667 649 | 553 628 | 465 724 | |
Financial instruments gross value (EUR ’000) Taking into account the significance of the volume, the Land Fund portfolio, which consists of 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 leaseback transactions are accounted for under the loans, the loan volume in this table has been reduced for the volume of the leaseback transactions as it is recorded under the Land Fund portfolio. | ||||||||
Loans (excluding sales and leaseback transactions) | 359 246 | 311 844 | 315 674 | 302 481 | 225 144 | 210 208 | 207 065 | 217 429 |
Guarantees | 480 025 | 481 013 | 414 978 | 359 605 | 284 232 | 236 895 | 182 376 | 147 175 |
Venture capital funds | 97 456 | 90 277 | 85 973 | 73 165 | 68 331 | 59 698 | 62 299 | 64 785 |
Land Fund, of which: | 96 938 | 80 542 | 79 163 | 68 258 | 39 634 | 21 717 | 11 328 | 4 635 |
- sales and leaseback transactions | 28 692 | 27 089 | 32 999 | 31 500 | 15 268 | 6 923 | 520 | - |
- investment properties | 68 246 | 53 453 | 46 164 | 36 758 | 24 366 | 14 794 | 10 808 | 4 635 |
Total | 1 033 665 | 963 676 | 895 788 | 803 509 | 617 341 | 528 518 | 463 068 | 434 024 |
Number of transactions | 35 260 | 33 796 | 30 978 | 26 578 | 22 437 | 18 603 | 14 655 | 11 561 |
Volumes issued (EUR ’000) (by financial instrument) Taking into account the significance of the volume, the Land Fund portfolio, which consists of 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 leaseback transactions are accounted for under the loans, the loan volume in this table has been reduced for the volume of the leaseback transactions as it is recorded under the Land Fund portfolio. | ||||||||
Loans (excluding sales and leaseback transactions) | 141 993 | 95 820 | 100 966 | 138 238 | 64 320 | 59 608 | 51 349 | 59 465 |
Guarantees | 99 440 | 153 067 | 126 997 | 137 425 | 98 240 | 88 765 | 68 615 | 56 109 |
Venture capital funds | 23 920 | 18 526 | 29 158 | 14 014 | 9 022 | 4 149 | 2 638 | 21 356 |
Land Fund, of which: | 17 676 | 7 414 | 10 595 | 28 191 | 16 384 | 10 823 | 6 359 | 3 704 |
- sales and leaseback transactions | 7 916 | 3 105 | 3 254 | 16 796 | 7 239 | 6 835 | 520 | - |
- investment properties | 9 760 | 4 309 | 7 341 | 11 395 | 9 145 | 3 988 | 5 839 | 3 704 |
Total | 283 029 | 274 827 | 267 716 | 317 868 | 187 966 | 163 345 | 128 961 | 140 634 |
Number of transactions | 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) | 946 008 | 765 577 | 791 646 | 696 306 | 531 661 | 460 045 | 370 560 | 359 706 |
Leverage for raised private funding | 229% | 123% | 177% | 114% | 142% | 162% | 185% | 162% |
Volume of support programmes funding per employee (EUR ’000) | 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 | - |
Definitions of ratios
“Net income from interest, fees and commission” is equal to the item “Net interest income” in the Statement of Comprehensive Income. Until 2018 this ratio included the following items of the Statement of Comprehensive Income: “Net interest income” and “Net income from fees and commissions”. In 2019 following the industry practise Fee and commission income from lending activities is reclassified to Interest income from “Net income from fees and commissions”. Subsequently the fee and commission income not related to lending activities is reclassified within Other income and as such is not included in this ratio. The item “Net income from fees and commissions” is not applicable in The Statement of Comprehensive Income anymore. The comparatives have been reclassified accordingly. ALTUM uses this indicator as the key financial metric for profitability by evaluating ALTUM Group’s net income amount generated by the portfolio of financial instruments and recognised in the Statement of Comprehensive income. ALTUM management measures and monitors the actual performance of this indicator on a quarterly basis compared to the approved level in ALTUM Group’s budget.
“Operating profit” is calculated by deducting “Operating expenses” from “Operating income before operating expenses” included in the Statement of Comprehensive Income. “Operating expenses” is calculated as the sum of “Staff costs”, “Administrative expense”, “Amortisation of intangible assets and depreciation of property, plant and equipment” and “Impairment gain / (loss), net” included in the Statement of Comprehensive Income.
“Cost to income ratio” (CIR) is calculated by dividing the amount of “Staff costs”, “Administrative expense”, “Amortisation of intangible assets and depreciation of property, plant and equipment” by “Operating income before operating expenses” included in the Statement of Comprehensive Income. ALTUM uses CIR to evaluate the operational efficiency. This is one of the measures of operational efficiency which ALTUM management assesses on a quarterly basis in the management reports to evaluate the outputs from different operational activities and efficiency improving measures.
“Financial debt” is calculated as the sum of “Due to credit institutions”, “Due to general government entities”, “Financial liabilities at amortised cost – issued debt securities” and “Support programme funding” included in the Statement of Financial Position less difference between “Risk Coverage Reserve” and “Risk Coverage Reserve Used for Provisions”.
“Risk Coverage Reserve” is disclosed in the Note on Support Programme Funding to the Financial statements of ALTUM Group. “Risk Coverage Reserve Used for Provisions” is the amount of “Risk Coverage Reserve” allocated to and used for provisioning for impairment loss on loan portfolio and guarantees which in its turn is disclosed in the Note on Support Programme Funding to the Financial statements of ALTUM Group.
“Tangible Common Equity” (TCE) is calculated by subtracting the revaluation reserve of available for sale investments from total equity.
The amount of “Total managed assets” (TMA) is calculated by adding the guarantees shown as off-balance sheet items to the total assets of ALTUM Group taking into account provisions for these guarantees and subtracting “Deferred expense”, “Accrued income”, “Property, plant and equipment”, “Intangible assets”, “Other assets” and “Assets held for sale”.
Data for the calculation of both indicators (TCE, TMA) are obtained from ALTUM Group’s Financial statements: Statement of Financial Position and Consolidated Statement of Changes in Equity, notes - Off balance sheet items and contingent liabilities and Provisions. ALTUM uses the ratio “TCE/TMA” to evaluate ALTUM Group’s capital position adequacy and to measure ALTUM Group’s tangible common equity in terms of ALTUM Group’s tangible managed assets including the off-balance sheet item Guarantee portfolio. The Risk and Liquidity Management Committee of ALTUM monitors its level on a quarterly basis.
“Total Risk Coverage” is the net funding available for covering the expected credit losses of the State aid programmes implemented by ALTUM. “Total Risk Coverage” is calculated as the total of “Risk Coverage Reserve” and “Portfolio Loss Reserve” (Specific Capital Reserves) less “Risk Coverage Reserve Used for Provisions” and “Portfolio loss reserve used to compensate provisions upon approval of the annual report”. The expected losses are estimated before implementation of the respective State aid programme and part of the public funding received under respective State aid programme for coverage of expected losses on credit risk is transferred either to “Portfolio Loss Reserve” as ALTUM Group’s specific capital reserve or accounted separately as provisions for risk coverage under liabilities item “Risk Coverage Reserve”. “Portfolio Loss Reserve” (specific capital reserve) is disclosed in the Note on Reserves to the Financial statements of the ALTUM Group. “Risk Coverage Reserve” is disclosed in the Note on Support Programme Funding to the Financial statements of ALTUM Group. “Risk Coverage Reserve Used for Provisions” is the amount of “Risk Coverage Reserve” allocated to and used for provisioning for impairment loss on loan portfolio and guarantees which in its turn is disclosed in the Note on Support Programme Funding to the Financial statements of ALTUM Group. “Portfolio loss reserve used to compensate provisions upon approval of the annual report” is disclosed in the Note on Reserves to the Financial statements of the ALTUM Group.
“Total Risk Coverage” is key indicator to be used for assessment of ALTUM’s risk coverage on implemented programmes and long-term financial stability.
“180-days-liquidity ratio” is calculated by dividing the amount of the balances “Due from other credit institutions and the Treasury” with a maturity of up to 1 month and “Financial assets at fair value through other comprehensive income and Investment securities” by the amount of the total liabilities maturing within 6 months and total financial commitments maturing within 6 months (off-balance sheet items). The data required for the calculation of the “180-days liquidity ratio” is disclosed in the following ALTUM Group’s Financial statements: Statement of Financial Position and notes – Maturity profile of assets and liabilities under the section of Risk Management, Off-balance sheet items and contingent liabilities. ALTUM uses the “180-days-liquidity ratio” to assess and monitor ALTUM Group’s ability to fulfil ALTUM Group’s contractual and/or contingent liabilities during 6 (six) month with the currently available liquidity resources. “180-days-liquidity ratio” helps to manage ALTUM Group’s liquidity risk in line with ALTUM Group’s/ALTUM’s funding management objectives and risk framework. Risk and Liquidity Management Committee of ALTUM monitors its level on a quarterly basis.
“Support instruments gross value” is calculated as the sum of the gross values of the portfolios of grants, loans, guarantees, venture capital funds and Land Fund
The 'Total contribution to the economy, including the participation of the final recipients, by volumes issued in the period’ is calculated by adding to the volumes issued by ALTUM the financing provided by the private co-financier and the project promoter.
“Leverage for raised private funding” indicates the amount of additional private funds invested in a project in addition to ALTUM’s financing. “Leverage for raised private funding” is determined considering the financing invested by a private co-financier and a project’s implementer, which, on average, makes up to 50 per cent for loans, up to 70 per cent for guarantees and venture capital (except for housing loan guarantees’ programme for the first instalment with a ratio of 795 per cent) in addition to ALTUM’s funding.
Average number of employees in the report period excluding members of the Council and the Audit Committee.
"Support programmes funding per employee" is calculated by dividing the gross value of the Financial Instruments Portfolio by the average number of employees during the period, excluding members of the Supervisory Council and the Audit Committee.
The Venture Capital Funds presented at their gross value.
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 2023 (available on altum.lv section Corporate governance), which is part of the audited Annual Report 2023.