MANAGEMENT REPORT ON THE BANK'S AND THE GROUP'S OPERATIONS DURING HALF A
YEAR
2010 

Dear customers, partners, shareholders and colleagues,

During
the first half of 2010 Latvian economy have continued downturn, however
early
signs of stabilization have been observed. Still, continued downturn
impacted
negatively profitability and growth of Latvian banking sector. 

GE Money
Bank continued strategy with main objective to ensure safe and
stable
position. In the first six months of the year, the main focus of the
Bank was
to ensure high capital adequacy and liquidity, efficient risk
management and
debt collection systems and improved effectiveness of
compliance and
controllership. 

The Bank continued rigorous approach to
risk assessment. The total amount of
reserves on June 30th, 2010 comprised LVL
39,490 thousands. In total, reserves
comprised 24% of the credit portfolio. As
a result the Bank concluded first
half of the 2010 with audited losses of LVL
11,395 thousands. The Bank's total
assets in the first half of the year
comprised LVL 219,671 thousands, including
loan portfolio of LVL 123,353
thousands and deposit portfolio of LVL 194,516
thousands. 

On June 30th,
2010 the Bank's capital adequacy ratio was 11.28% that exceeded
the
requirement established by the Capital and Financial Market Commission
(FCMC)
of 8%, while the liquidity ratio was 93.84%, which was significantly
higher
than FCMC requirement of 30%. In June, 2010 shareholder extraordinary
meeting
resolved to increase Bank's share capital. 

The Bank continued to support
independent, non governmental organization “Money
Planning Centre” (MPC).
MPC's mission is educated Latvian society in financial
matters. In April,
2010, MPC presented first electronic teaching aid in Latvia
regarding money
for various age groups - “Study of Money”. This teaching aid is
available to
all schools in Latvia free of charge. 

During the next six months of 2010,
the Bank will continue to manage company
through current economic cycle
focusing on this year's strategy, applying
conservative risk management
approach and continuing to ensure safe and stable
position. The Bank will
continue to leverage on experience of its owner,
General Electric Company, one
of the largest corporations in the world. 

Between the reporting 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 Ezerina
Head of Communication
division
GE Money Bank Latvia

Ph.: +371 67024704
Mob.: +371
27876080
E-mail: tija.ezerina@ge.com