Estonian investment companies’ volume of assets exceeds 1 billion Euros
The volume of assets of the customers managed by investment companies operating in Estonia soared 20 per cent in the fourth quarter of 2016 to 1.1 billion euros. The volume of assets of the investment companies themselves increased 15 per cent to 47 million Euros in the fourth quarter of 2016. As the customers were given a loan for buying securities, the loan portfolio grew by one half and constitutes 39 per cent of all assets, the Financial Supervision Authority reported. Half of the assets were made up of savings in banks and financial institutions. In addition, investment companies held 8.5 per cent of their assets in debenture bonds to fill the liquidity standard. The bond portfolio increased by 20 per cent in the fourth quarter.
The earned profit and collected revenue in the fourth quarter of 2016 were much bigger than usual. The quarterly profit reached 3.7 million Euros. As the sector experienced a loss in the first three quarters, the total profit for 2016 totaled 2.6 million Euros. Despite the bad start to the year, the yearly profit was 88 per cent greater than in 2015.
The net income of the fourth quarter was 7.6 million Euros, nearly three times as much as in the third quarter. This increase was supported by the significant increase in the profit made from trading with derivative instruments. Despite the particularly large revenue, the sector earned approximately the same in net income as they did in 2015, as the first three quarters of 2016 saw a consistent decrease in income.