In year 2009, AS “GE Money Bank” (further “Bank”) succeeded to accomplish
its
goals and attained planned results, despite very challenging macro and
banking
market environment in Latvia. 

Bank conducted several actions to
ensure safety and stability for its
customers, and guaranteed that by high
liquidity and capital base that exceeds
regulatory requirements. In addition,
Bank offered several innovative and
beneficial products and services that are
in line with our responsible lending
policy. 

GE Money Bank leveraged on
experience of its owner, General Electric Company,
one of the largest and most
financially secure corporations in the world. GE
announced a profit for 2009
of US$ 11,2 billion. 

Driving growth via safety and stability
In 2009, in
order to manage business through economic environment, Bank changed
and
improved its risk management systems, simplified Bank's structure,
thus
enhancing operational rhythm, introduced several IT projects, as well
as
optimized costs. 
During accounting period - at a time when the total
deposit market was falling,
Bank succeeded in increasing resident deposit base
by 25% since the beginning
of 2009. Thus we also increased our deposit market
share. 

Such growth was attained mostly due to Bank's offered deposit
products and
several successful deposit campaigns. Reacting on consumer
demand, Bank was
first to launch in Latvian market flexible savings product -
high yield savings
account “Account of Opportunity” provided availability of
customers' funds and
attractive interest rate. Similarly, beneficial interest
rates were offered
also for term deposits. 

Thinking of growth and
stability of Latvian companies last year the Bank
started offering also
beneficial packages for legal entities “Corporate savings
package” and “Active
businessman package”. These bundles have been one of the
best offers in the
market. 

As a result, expanding the range of offered products, continuing to
invest in
service quality enhancement and training of employees, the Bank
increased
number of served customers. At the end of the year 2009, 170
thousand private
and more than 7,500 legal entities entrusted their financial
needs to the Bank. 

Considering economic situation, the Bank has used a more
rigorous approach to
risk assessment and continued creating reserves. The
total number of reserves
in 2009 comprises LVL 25.072 million. In total
reserves comprise 19% of the
credit portfolio. As a result the Bank concluded
the year 2009 with un audited
losses LVL 21,321 million. Company's operating
income before tax and provisions
was LVL 3,751 million. 
Bank's total assets
in 2009, compared with previous year, on average have
increased up to LVL
257,973 million, LVL 143,157 were allocated in loans; at
the same time deposit
volume reached LVL 212,903 million. 

One of the most significant strategic
directions in 2009 was ensuring stability
and safety to Bank's customers and
preparing for future challenges. In March,
own capital of the Bank was
increased by LVL 30 million. Having regard of this,
as well as amount of
deposits attracted by the Bank its capital adequacy
indicator on 31.12.2009
was 15.89%, which almost two times exceeds the
requirement established by the
Capital and Financial Market Commission
(hereinafter - FCMC) of 8%, while the
liquidity ratio was 97.37%, which was
more than three times as compared to
FCMC standard. 

Subsidiary companies - number of customers and assets
increased
Ensuring a wide range of banking products to its customers the joint
stock
company „GE Money Atklātais pensiju fonds” also continued operations
within the
Bank's concern offering to customers 3rd pillar pension plans
“Rumba” and
“Tvists”. While the investment management company „GE Money Asset
Management”
managed 2nd pension pillar plans “Džezs” and “Blūzs” and customer
investment in
three investment funds - “GE Money Eastern Europe Balanced
fund”, „GE Money
European Bond fund” and „GE Money Eastern Europe Equity
fund”. 

During 2009, the total amount of managed assets increased more than
two times
and reached LVL 18,5 million. A number of customers increased from
24 thousand
to 37 thousand. The managed 2nd pillar pension plans comprised
2,3% of the
market share at the end of the year. 

With responsible attitude
towards society and employees
The Bank realizes its obligation of being a
socially responsible employer and a
company in general - it's a part of Bank's
operational strategy both here in
Latvia and elsewhere in the world. In Latvia
this strategy is realized in two
principle directions - by fostering public
financial literacy and implementing
the family friendly company's policy.


Bank continued providing support to an independent non-profit
organization
“Money Planning Centre” (hereinafter - MPC). Primary goal of MPC
is educating
society in different financial matters. AS “GE Money” established
MPC already
in 2007 reacting to the public demand and also implementing
philosophy of
responsible lending. 

In 2009, Bank supported MPC both with
financial and intellectual resources - in
a year's time several projects
realized and innovative budget planning tools
offered to publics, Bank's
experts have provided virtual consultations and have
participated in several
seminars organized by MPC explaining peculiarities and
opportunities of
savings products. 

“GE Money Bank INTELLECTICUS” - university student
Olympiad - was Bank's next
step in educating the society. In 2009, the second
Olympiad was organized with
the topic “Savings solutions for ensuring
financial stability”. The Bank
started the Olympiad tradition in cooperation
with the Ministry of Education of
Science of the Republic of Latvia in 2008,
wishing to share its international
expertise, pragmatism and also creativity.


According to our conviction, Bank's employees is our biggest value
therefore
within the entire year different family friendly company's
activities were
offered as well as increasing number of new training programs
were developed
and envisaged exclusively for General Electric employees.

Bank's employees were also actively involved in several charity
activities
supporting the society. 

Our wish is to secure safety, stability
and beneficial services to customers,
as well as implemented corporate social
responsibility activities in 2009 were
appreciated as Bank's reputation
constantly improved. In 2009, the Bank's brand
ranked 5th in the Latvian
banking sector - by the “Kapitāls” magazine and the
“DDB Consulting” agency.
In the reputation TOP2009 by the newspaper “Diena” and
“Porter Novelli” the
Bank ranked four positions higher vs. 2008 - on 66th place
among all companies
in Latvia. This is a significant achievement taking into
account that
reputation of only two banks improved their positions in that
ranking last
year. 

Stable platform for development and growth also in the future
We
expect that also in 2010 both Bank's customers and the banking sector
will
still face economic challenges and for this reason the principle
strategic
direction of the Bank is to continue managing the company through
the current
economic cycle thus ensuring Bank's security and stability to its
customers.
Therefore our focus is to ensure high capital adequacy and
liquidity base,
healthy deposit base, ensuring efficient risk management and
debt collection
systems. 

Given of our wish to concentrate on these areas,
our business operations in
Latvia will be more focused that will allow us to
emerge a stronger market
player in the period when the economic situation
stabilizes and market will
begin to grow again. 
We are convinced that GE
business management experience during different
economic cycles as well as
Bank's professional management and employees' team
and rigorous approach to
risk management will ensure company's further
development in 2010. 

Between
the balance date and the date of signing this financial report there
have been
no events that could significantly influence the results of the
reporting
period. 



Additional information:
Tija Ezeriņa
Head of Communication
division
AS  "GE Money Bank"
Ph.: +371 67024704
Mob.: +371 27876080
E-mail:
tija.ezerina@ge.com