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ALTUM Investoru prezentācija, Septembris 2021 (full screen)

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ALTUM Investoru prezentācija, Septembris 2021 (full screen)

  1. 1. INVESTOR PRESENTATION Partner and financial expert in economic development September 2021
  2. 2. DISCLAIMER This presentation and any materials distributed or made available in connection herewith (collectively, the “presentation”) have been prepared solely for your use and benefit for information purposes only and are the sole responsibility of Akciju sabiedrība "Attīstības finanšu institūcija ALTUM" (the “Company”), and have not been verified, approved or endorsed by any lead manager, bookrunner, underwriter or adviser retained by the Company. This presentation do not contain all of the information that is material to an investor. By accessing, downloading, reading or otherwise making available to yourself any content of the presentation, in whole or in part, you agree to be bound by the following limitations and accept the terms and conditions as set out below. You are only authorized to view, print and retain a copy of the presentation solely for your own use. No information contained in the presentation may be copied, photocopied, duplicated, reproduced, passed on, redistributed, published, exhibited or the contents otherwise divulged, released or disseminated, directly or indirectly, in whole or in part, in any form by any means and for any purpose. The presentation does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or any member of its group, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. If any such offer or invitation is made, it will be done pursuant to separate and distinct documentation in the form of a prospectus and any decision to purchase or subscribe for any securities pursuant to such offer or invitation should be made solely on the basis of such prospectus and not this presentation. Any person considering the purchase of any securities of the Company must inform himself or herself independently before taking any investment decision. By accessing this presentation the recipients will be deemed to represent that they possess, either individually or through their advisers, sufficient investment expertise to understand the risks involved in any purchase or sale of any financial instrument or any other information contained herein. This presentation should not be construed as legal, tax, investment or other advice and any recipient is strongly advised to seek their own independent advice in respect of any related investment, financial, legal, tax, accounting or regulatory considerations. The presentation has been provided to you solely for your information and background and is subject to amendment. Further, the information in this presentation has been compiled based on information from a number of sources and reflects prevailing conditions as of its date, which are subject to change. The information in this presentation is subject to verification, completion and change without notice and the Company is not under any obligation to update or keep current the information contained herein. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of their respective members, directors, officers, advisers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation, and any reliance you place on such information or opinions will be at your sole risk. Neither the Company nor any of its respective members, directors, officers, advisers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise arising in connection therewith. This presentation includes "forward-looking statements," which include all statements other than statements of historical facts, and involve known and unknown risks, uncertainties and other important factors beyond the Company’s control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward- looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Accordingly, any reliance you place on such forward-looking statements will be at your sole risk. These forward-looking statements speak only as at the date as of which they are made. Past performance of the Company cannot be relied on as a guide to future performance. No statement in this presentation is intended to be a profit forecast. This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO THE UNITED STATES, AUSTRALIA, JAPAN, HONG KONG, SOUTH AFRICA, SINGAPORE OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL. This presentation and the information contained herein are not an offer of securities for sale in the United States. No securities have been or will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or with any securities regulatory authority of any state or other jurisdiction of the United States and securities may not be offered, sold or delivered within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws and may only be sold outside of the United States in reliance on Regulation S under the Securities Act and otherwise in compliance with all applicable laws and regulations in each country or jurisdiction in which any such offer, sale or delivery of securities is made. The Company does not intend to register or to conduct a public offering of any securities in the United States. This presentation and its contents may not be viewed by persons within the United States (within the meaning of Regulation S under the Securities Act).
  3. 3. PRESENTER Reinis Bērziņš Chairman of the Board Elīna Salava Financial advisor of the Board
  4. 4. General information Portfolio overview Operation Model and Performace Sustainable financing Financial Profile Appendix
  5. 5. ALTUM – STRATEGIC ENGINE FOR LATVIA’S ECONOMIC DEVELOPMENT • provides access to finance in the areas prioritized by the government and implements the state policy in the national economy; • operates in 5 regional centers 15 consulting offices in LV. • 100% LV state-owned financial institution, with shareholders as follows: OWNERSHIP ACTIVITY • operates in accordance with a special law issued by Republic of Latvia Saeima / Law on Development Financial Institution; • unique position in the market with high entry barriers. UNIQUE STANDING IN THE INDUSTRY * Loans, Guaranties, Venture Capital Funds, Land Fund ** Tangible common equity/Total tangible managed assets, including the outstanding guarantees accounted for in the off-balance sheet Data as of 30.06.2021 Ministry of Economics 30% Ministry of Agriculture 30% Ministry of Finance 40% Financial instruments* 859 MEUR Risk Coverage 233 MEUR Contracts # 28 951 Rated by Moody’s Baa1 TCE/TMA** 34.7% KEY PARAMETERS Loans 38% Guarantees 44% VC 10% Land Fund 8% Financial instruments 49% 7% 8% 13% 23% Funding sources Equity Credit institutions Debt securities General governments Public funding
  6. 6. KEY MILESTONES OF ALTUM ESTABLISHED RATING FIRST BOND ISSUE On 15 June 2017 Moody`s assigned to ALTUM an investment grade rating Baa1with a stable outlook On 15 April 2015 three state owned companies were merged into ALTUM Design and implementation of crisis finical instruments for SME and Midcap – credit guarantees and working capital loans In October 2017 ALTUM issued EUR 20M bond, becoming the first national development institution in the CEE countries that has issued green bonds In Q2 2018 the volume of guarantee portfolio exceeded the loan portfolio Development of mid-term Strategy for next 3 years ESG roadmap workout GUARANTEES EXCEEDED LOAN PORTFOLIO PILLAR ROLE 3 YEAR STRATEGY 2015 2017 2017 2018 2020 2021 Volume of guarantees Covid-19 response mandate Strategy for 2022 - 2024
  7. 7. STRONG CORPORATE GOVERNANCE Company regulated by its special law - Law on Development Financial Institution; Follows Corporate Governance code endorsed by the Corporate Governance Advisory Board of the Ministry of Justice as of 2021 (the best international practices in corporate governance). At the Nasdaq Baltic stock exchanges’ initiative Nasdaq Baltic Awards 2021, ALTUM scored 81.47 (Baltic average 69.52) out of 100 in terms of transparency, sound corporate governance and excellence in investor relations. Cabinet of Ministers Shareholders meeting Internal Audit Supervisory Board Audit Committee Management Board
  8. 8. EXPERIENCED MANAGEMENT INESE ZĪLE Member of the Management Board Master’s degree in international economics and business management. 20 years of experience in the financial sector including more than 15 years of experience in managing different departments as well as work experience in the public sector. Main responsibilities: corporate governance, marketing and public relations, development of ALTUM’s national support programmes and export guarantees. A Member of the Council of the Finance Latvia Association and Member of the Supervisory Board at JSC Sadales tīkls. REINIS BĒRZIŅŠ Chairman of the Management Board Master’s degree in international banking and finance as well as in business management (in Swiss Business School) and a degree in law. Main responsibilities: oversight of units responsible for financial and resource management, legal and human resources and energy efficiency of enterprises. He has been managing ALTUM since 12 October 2015. A Member of the Supervisory Board at Three Seas Initiative Investment Fund S.A. SICAV-RAIF. IEVA JANSONE-BUKA Member of the Management Board Professional master's degree in business (the Riga School of Economics); A bachelor's degree in social sciences in management and political science (the University of Latvia). Work experience: financial sector, leading positions at IPAS Indexo, SIA IJ Birojs and Nordea Bank Finland Plc. Latvia branch, senior management positions in SIA Clean R and SIA Vides Pakalpojumu Grupa. JĒKABS KRIEVIŅŠ Member of the Management Board Master’s degree in business and institutional management, a bank employment certificate and a bachelor’s degree in economics. More than 25 years of experience in the sector of commercial banks and national financial institutions in organizing and managing business crediting processes. Main responsibilities: the development of IT and technologies, ALTUM’s customer and regional service centres as well as supervisory of the Latvian Land Fund. ALEKSANDRS BIMBIRULIS Member of the Management Board Graduated from the Faculty of Law of University of Latvia, the vocational master’s degree in law in Turība University More than 20 years of experience in the banking and financial sector. Main responsibilities: the risk management and internal control system quality, administrative management, as well as organizing and managing of the crediting process.
  9. 9. 65 MEUR 62 MEUR 60 MEUR 68 MEUR 73 MEUR 84 MEUR 217 MEUR 207 MEUR 210 MEUR 225 MEUR 302 MEUR 323 MEUR 147 MEUR 182 MEUR 237 MEUR 284 MEUR 360 MEUR 380 MEUR 5 MEUR 11 MEUR 22 MEUR 40 MEUR 68 MEUR 72 MEUR 2016 2017 2018 2019 2020 1H 2021 Land Fund Guarantees Loans Venture Capital 443 MEUR 454 MEUR 496 MEUR 560 MEUR 851 MEUR 896 MEUR TOTAL ASSETS BUSINESS MODEL AT A GLANCE Long-term profitability Extra credit risk covered by public funding – Risk coverage reserve and Portfolio loss reserve Guarantees issued by ALTUM have 270 MEUR back-up guarantee in the Latvian state budget No dividend payments by law Pillar role for Covid-19 financial instruments (no standstill grants!) and Recovery and Resilience Facility (RRF) instruments to SME and Midcap Manager of AIF ALTUM Capital Fund -100 MEUR fund with largest Latvian private pension funds in all segments MID TERM TENDENCIES Modest growth
  10. 10. MACROECONOMIC FUNDAMENTALS GDP dropped sharply in 2020, however, it was one of the slowest declines in the EU. It is expected that GDP growth will be strong in 2021, exceeding 5 per- cent. Inflation decreased in 2020 due to lower commodity prices and subdued demand but is rebounding in 2021. Unemployment increased in 2020 due to COVID-19 restrictions. Further increase in unemployment was limited by the government’s financial support for downtime. The job market is recovering this year but could return to pre-COVID levels only in 2022. Budget deficit and government debt expanded in 2020 on fiscal stimulus expenses. This trend is expected to continue also in 2021, as the government continues to support economy. Source: Eurostat https://ec.europa.eu/eurostat/data/database /updated on 8th of August 2021/ * Luminor forecast September 2021, ** Ministry of Finance Forecast, August 2021 Latvia macroeconomic figures 2016 2017 2018 2019 2020 2021F* Real GDP growth % 2.4 3.3 4.0 2.0 -3.6 5.1 Inflation, HICP % 0.1 2.9 2.6 2.7 0.1 2.7 Unemployment rate % 9.6 8.7 7.4 6.3 8.1 7.6 General government balance % of GDP 0.2 -0.8 -0.8 -0.6 -4.5 -8.0 Government gross debt % of GDP 40.4 39.0 37.1 37.0 43.5 49.6** Current account balance % of GDP 1.6 1.3 -0.3 -0.6 3.0 0.0 Credit rating (the Republic of Latvia) Fitch A- A- A- A- A- A- Moody’s A3 A3 A3 A3 A3 A3 Standart&Poor’s A- A- A A A+ A+
  11. 11. General information Portfolio overview Operation Model and Performace Sustainable financing Financial Profile Appendix
  12. 12. +7% towards the end of year PORTFOLIO -12% in 1H2021 YoY, when the Covid-19 products reached its top volumes, which has decreased 2 times during this period. +14% 1H2021 YoY for ordinary products New transactions in 1H 2021 +15% growth in 1H2021, 22% of the portfolio, 24% of the new volumes, mostly - Housing and Energy efficiency guarantees INDIVIDUALS The largest segment 43% of the portfolio, 48% of the new volumes, mostly - investment loans and corporate guarantees under ordinary products SMEs and Mid-caps +6% growth in 1H2021, the second largest segment 26% of the portfolio, 18% of the new volume, mostly - loans and Land fund activities, segment with historical sentiment AGRICULTURE CLIENT SEGMENTS MEUR 107 139 164 189 141 167 209 221 220 243 253 251 104 114 61 69 73 84 0 100 200 300 400 500 600 700 800 900 1,000 2018 2019 2020 1H 2021 MEUR Portfolio 39 44 42 16 32 37 41 66 33 24 83 94 196 41 42 58 21 4 9 14 3 13 0 50 100 150 200 250 300 350 2018 2019 2020 1H 2020 1H 2021 Volumes Financial intermediaries SME and Midcap (Covid-19 instruments) SME and Midcap Agriculture Individuals
  13. 13. 22 MEUR 40 MEUR 68 MEUR 72 MEUR 7,818 ha 13,413 ha 20,104 ha 21,622 ha 2018 2019 2020 1H 2021 14 MEUR 9 MEUR 4 171 ha VIDZEME 2 MEUR 37 MEUR 10 MEUR PORTFOLIO 72 MEUR 21 622 ha SALES AND LEASE BACK 34 MEUR 10 084 ha INVESTMENT PROPERTIES 38 MEUR 11 538 ha 1 510 ha LATGALE 4 518 ha KURZEME 8 098 ha ZEMGALE 3 325 ha RIGA Data as of 30.06.2021 LATVIAN LAND FUND
  14. 14. General information Portfolio overview Operation Model and Performace Sustainable financing Financial Profile Appendix
  15. 15. • Impairment allowance for Covid-19 working capital loans 2.4 MEUR (y/e 2020) and 2.9 MEUR (p/e 1H2021) • Impairment overlay on segment portfolio 0.3 MEUR (y/e 2020) and 0.8 MEUR (p/e 1H 2021) • Refusal rate – 44% (2020) and 38% (1H2021) • Follow EBA guidlines on portfolio monitoring and moratorium • Pillar role for Covid-19 financial instruments (no standstill grants!) to SMEs and Midcaps; • Full scope of products for mitigating Covid-19 effects; • AIF Altum Capital Fund set up. • Continued to provide all services remotely. Increased activity in remote channels. Introduced «work from home» concept. 98% of employees able to work remotely • Net interest income: 1.5 MEUR (2020) and 1.4 MEUR (1H2021) • Mostly public funding - covers credit risk via Portfolio loss reserve • Co-financing from EIB (Covid-19 response loan) • Capital injection 145 MEUR (2020) and 22.6 MEUR (1H2021) Although delayed exits of VC and moratoriums granted to customers, liquidity position remains strong COVID-19 IMPACT 168 181 65 68 10 15 2020 1H 2021 "Sensitive industries" Covid-19 working capital loans Loan portfolio of SMEs and Midcaps segment PRODUCTS TO CUSTOMERS OPERATIONS FUNDING LIQUIDITY CAPITAL INCOME CREDIT QUALITY
  16. 16. IMPROVING OPERATIONAL EFFICIENCY • Employees decreased from 282 in 2015 to 224 in 1H2021 leading to lower O/H’s along with significant volume increase • In 2020 considerable Covid-19 portfolio as well as high volume of ordinary products • Good trend in 2021: Covid-19 portfolio 26 MEUR in 1H2021 vs 58 MEUR YoY. Ordinary products 106MEUR in 1H2021 vs 93 MEUR YoY • In early 2020 completed the streamline of «small loan» workflow process - used as basis for Covid-19 loan assessment process for speed and quality • Centralized loan assessment of «small loans» • Continued digitalization of guarantee process – automated data input for corporate guarantees as of early 2021 • With the same staff number: along with Covid-19 portfolio, in regions ordinary loans volume +30M (+5.6%), +393 deals (+3.4%) in 2020 YoY • Average deal with steady increase up to 77 TEUR in 1H2021 vs 72 TEUR in 1H2019 • In 1H2021 38% of ordinary loans approved remotely without involvement of regions HIGHER VOLUME MORE EFFICIENT BACK-OFFICE PROCESSES REGIONAL CAPACITY RESTRUCTURED 395 434 463 529 617 804 859 3.2% 3.0% 2.4% 2.2% 1.2% 1.0% 0.5% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 0 100 200 300 400 500 600 700 800 2015 2016 2017 2018 2019 2020 1H2021 Financial Instruments Portfolio Year overheads vs portfolio
  17. 17. WELL-BALANCED DEBT STRUCTURE According to Cabinet of Ministers Regulations the public financing funds can be prolonged. In practice, the funds remain on ALTUM balance sheet and are used to finance new programmes Most of the borrowings are of medium or long term (from 5 to 15 years and beyond) Total liabilities include Public funding in the amount of 198 MEUR, of which 111 MEUR is intended to cover various expenses (credit risk 98 MEUR and programmes management costs 13 MEUR) 16 4 1 22 45 65 26 63 199 25.9 72 98 18.6 35 53 35 28 62 Loans from International Financial Institutions Bond issued Loans from State Treasury and Rural Support Service EU structural funds and State budget Total liabilities Funding maturity profile by type of funding source in million euros, as at 30.06.2021 < 1 year 1-5 years 5-10 years 10-15 years > 15 years
  18. 18. QUALITATIVE ASSESSMENT OF THE LOAN PORTFOLIO AND RISK COVERAGE 8.9% 8.4% 6.2% 6.2% 17.2% 15% 8.3% 7.4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2018 2019 2020 6/30/2021 Loan portfolio Ratio of provisions to portfolio (%) Loans which have objective evidence of impairment (Extended Stage 3) TEUR 2018 2019 2020 30.06.2021 Loan portfolio, gross 217 131 240 412 333 981 357 538 Provisions covered by Risk Coverage 4 951 5 367 8 853 9 755 ALTUM’s share of provisions 14 426 14 916 11 860 12 450 Total provisions 19 376 20 283 20 713 22 205
  19. 19. QUALITATIVE ASSESSMENT OF THE GUARANTEE PORTFOLIO AND RISK COVERAGE 10.2% 10.8% 8.7% 8.3% 2.7% 2.5% 1.7% 1.5% 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2018 2019 2020 6/30/2021 Guarantees Total provisions Guarantees (Stage 1) Guarantees (Stage 3) 97% 97% 96% 94% TEUR 2018 2019 2020 30.06.2021 Guarantees, gross 236 895 284 232 359 605 379 602 Provisions covered by Risk Coverage 13 162 21 312 24 070 25 222 ALTUM’s share of provisions 10 982 9 294 7 343 5 465 Total provisions 24 144 30 607 31 413 30 687
  20. 20. General information Portfolio overview Operation Model and Performace Sustainable financing Financial Profile Appendix
  21. 21. 1H 2021 Done 2021 Dec 2021 Mar 2023 1H 2022 Dec 2022/ 1H 2023 Sustainability recognition Compliance with SFDR requirements for ALTUM Capital Fund Sustainable financing ambition on ALTUM’s portfolio Covers all processes Mandate for Recovery and Resilience Facility Funding to SME – good start Revisit existing products Highlights the importance of sustainable financing and ESG aspects Loan origination Portfolio monitoring Valuation of collateral Start with SME’s and Midcap’s The highest scoring category – Platinum was awarded on the LV Sustainability Index Sustainability criterias for selecting financing projects and sustainability KPI’s to be reached In-house revisit during 2022 External approval via CoM directions in 2023 In brown projects Social vs Green to be considered Joins Nasdaq Sustainability Bonds Network Green Bond Framework updated and aligned with GB Principles June 2021 Strategy for 2022 - 2024 NEW Sustainable financing Excluding toxic / brown Integration of ESG aspects in credit risk mng SUSTAINABLE FINANCING AND COMMITMENT TO ESG
  22. 22. General information Portfolio overview Operation Model and Performace Sustainable financing Financial Profile Appendix
  23. 23. KEY FINANCIAL AND PERFORMANCE INDICATORS Key Financial data (TEUR) 1H 2021 1H 2020 2020 2019 Net interest income 8 298 6 319 14 572 11 569 Profit for the period 5 947 738 5 539 8 131 Cost to income Ratio (CIR) 46.24% 52.85% 47.5% 52.6% Employees 222 205 211 203 Total assets 896 486 700 967 850 704 560 061 Tangible Common Equity(TCE)/Tangible Managed Assets (TMA) 34.7% 34.5% 33.6% 29.4% Equity 414 970 332 769 382 594 232 738 Total risk coverage: 232 725 195 453 180 205 87 456 - Risk coverage reserve 127 364 109 441 112 567 99 778 - Risk coverage reserve used for provisions (29 434) (29 495) (28 197) (27 829) - Portfolio loss reserve within Reserves (specific reserve capital) 135 704 115 507 102 264 15 507 - Portfolio loss reserve used to compensate provisions in the distribution of annual profit (909) (6 429) - Liquidity Ratio 180 days 346% 348% 464% 582%
  24. 24. KEY FINANCIAL AND PERFORMANCE INDICATORS Financial instruments (gross value), TEUR 1H 2021 1H 2020 2020 2019 Outstanding (by financial instrument) Loans (excluding sales and leaseback transactions) 323 275 264 316 302 481 225 144 Guarantees 379 602 321 987 359 605 284 232 Venture capital funds 83 620 68 589 73 165 68 331 Land Fund, of which: 72 411 52 304 68 258 39 634 - sales and leaseback transactions 34 263 18 814 31 500 15 268 - investment properties 38 148 33 490 36 758 24 366 Total 858 908 707 196 803 509 617 341 Number of contracts 28 951 24 085 26 578 22 437 Volumes granted (by financial instrument) Loans 59 492 66 606 138 238 64 320 Guarantees 55 671 68 734 137 425 98 240 Venture capital funds 13 222 2 939 14 014 9 022 Land Fund, of which: 3 870 12 501 28 191 16 384 - sales and leaseback transactions 2 214 3 528 16 796 7 239 - investment properties 1 656 8 973 11 395 9 145 Total 132 255 150 780 317 868 187 966 Number of contracts 3 270 2 729 6 147 5 559 Leverage for raised private funding 163% 93% 114% 142%
  25. 25. General information Portfolio overview Operation Model and Performace Sustainable financing Financial Profile Appendix
  26. 26. APPENDIX
  27. 27. • Housing guarantees • Housing loans • Housing energy efficiency guarantees • Housing energy efficiency loans Individuals ALTUM PORTFOLIO MAP • Land purchase loans • Land fund (Reverse rent and IP) • Loan guarantees • Investment and working capital loans Agriculture • Venture capital funds – 4 generations, BIF and BIF 2 • Altum Capital Fund • Three Sea Fund • Loans Financial intermediaries • Investment and working capital loans • Energy efficiency & renewables loans • Loan guarantees • Export credit guarantees SME and MidCap SME and MidCap Agriculture[CELLRANGE] Individuals Financial intermediaries Loans 181 Guarantees 169 Export credit guarantees 16 Loans 135 Guarantees 14 Land fund 72 Guarantees 181 Loans 7 Venture capital 72 Altum Capital Fund 5 Three See Fund 7 Data as of 30.06.2021
  28. 28. “Risk coverage, total” is net funding available for coverage of expected credit losses of development programmes implemented by ALTUM Adequate risk coverage for expected credit losses available before launching new programmes or products For that purpose, respective portion of public funding is allocated at full or partial extent of total expected credit losses. After public funding is available, it is assigned either to - to Specific support program’s reserve capital as part of ALTUM’s reserve capital or - accounted separately as provisions for risk coverage “Risk Coverage Reserve” as part of the liabilities RISK COVERAGE MEUR 2018 2019 2020 1H 2021 Risk Coverage, total 78 88 180 233 Risk Coverage Reserve 85 100 113 127 Risk Coverage Reserve used for provisions (19) (28) (28) (29) Portfolio Loss reserve within Reserves (specific reserve capital) 12 16 102 136 Portfolio loss reserve used to compensate provisions in the distribution of annual profit (6) (1)
  29. 29. www.altum.lv

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