Es­to­nian in­vest­ment com­pa­nies’ vol­ume of as­sets ex­ceeds 1 bil­lion Eu­ros

The Baltic Times - - OUR COMMENTARY - BNS/TBT Staff

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.

Newspapers in English

Newspapers from Latvia

© PressReader. All rights reserved.