Audited JSC Development Finance Institution Altum Consolidated and Separate Annual Report for the year ended 31 December 2018
01 April 2019
According to the audited report in 2018 JSC Development Finance Institution Altum Group (hereinafter – Altum Group) has operated at 4.092 million euros profit. The parent company of the Group - JSC Development Finance Institution Altum (hereinafter – the Company) recorded a profit of EUR 4.462 mln.
Reinis Bērziņš, CEO of Altum:
“The successful performance of Altum during the last year is an indicator of gradual economic growth of Latvian business community and people, facilitated by our funding, understanding and service. Good financial performance is achieved thanks to increasing business volume and cost-efficiency.
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.
In March of this year, the credit rating agency Moody’s re-affirmed the long-term credit rating of Altum to the high Baa1 level and upgraded the baseline credit assessment to baa3. This shows the Altum growth, realizing the special role in the field of financial services. At the same time such rating improves our efficiency in dealing with investors and in our ability of raising funds in capital markets for financing sustainable business projects that are vital for the national economy.”
In order to eliminate the differences between consolidated and separate (the Company’s) financial statements the financial accounting principles for investments in venture capital funds have been unified as of 2018.
The volume of the guarantees portfolio exceeded the volume of the loan portfolio in the 2nd quarter of 2018, which is in line with the objective of Altum Strategy set for 2016 – 2018: to substantially increase the volume of operations by shifting the focus toward indirect financial instruments (guarantees).