Šiaulių bankas is further increasing its capital


A resolution to increase the bank’s authorized capital by LTL 19.324.021 and to issue the same number of ordinary registered shares with the par value of LTL1 each was made during the General Shareholders’ Meeting of Šiaulių bankas AB held on March 27th 2007. The bank’s shareholders have voted for the authorized capital increase from the bank’s own funds for the sixth year in turn already. After all the general procedures and registering the amended Charter, the authorized capital of Šiaulių bankas shall reach LTL 180 million, i.e. shall increase by 12 per cent.

According to the shareholders’ resolution the newly issued shares shall be allocated to the shareholders free of charge in proportion to the number of shares owned on the meeting day - they will receive 12 per cent from the total par value of the owned shares.

“Last year the bank commemorated the 15th anniversary of its successful activities, however it also was the year of great challenges marked by the country’s strained economical climate, constantly increasing infliction caused by growing prices as well as financial market crisis. Despite all these external factors, which demanded the intensive work with the company itself, the activities of Šiaulių bankas and the Group were efficient and fruitful last year”, - said Algirdas Butkus, Chairman of the Board of Šiaulių bankas, summarizing the results.

The General Shareholders’ Meeting of Šiaulių bankas has approved financial statements for 2007.Calculating in accordance with the international accounting standards Šiaulių bankas has earned LTL 27,248 million in audited net profit, which is almost twice as big as in 2006. The stable operations of all the companies belonging to the Group last year led to LTL 24,402 million of consolidated net profit approved by the independent auditors and, in comparison with the previous year, increased by 6 per cent.

The shareholders decided to assign the amount of LTL 3,221 million from the distributable profit to dividends. 2 centas of dividends fall per one ordinary registered share with LTL 1 par value, i.e. the same as it was paid in 2006.

A portion of the bank’s profit in the amount of LTL 1,96 million was allocated to the obligatory reserve. The shareholders’ decision to leave LTL 34 million in the undistributed profit indicates the responsible attitude of the bank’s shareholders towards capital base strengthening. “Such a strategy allows further expanding activities, improving the bank’s indicators and gives a boost to active development of the bank”, - says the Chairman of the Board.

During the Meeting shareholders elected the following five previous members of the Supervisory Council to the new tenure - Sigitas Baguckas, Vygintas Butkus, Vytautas Junevičius, Arvydas Salda and Kastytis Jonas Vyšniauskas. While Gintaras Kateiva and Matti Hyyrynen became the new members of the Council. The latter represents the European Bank for Reconstruction and Development (EBRD), i.e. the major shareholder of Šiaulių bankas. The EBRD owns 16.06 per cent of the bank’s shares and votes.

Moreover, the shareholders of Šiaulių bankas voted to choose an external audit company to perform the inspection on the bank’s consolidated financial statements of 2008 and 2009 as well as on the consolidated annual report. It was decided that the bank should be further audited by “PricewaterhouseCoopers” UAB.
According to A.Butkus all the results that were achieved last year exceed the projections. The assets managed by Šiaulių bankas’ Group increased by one and a half time or by LTL 667 million in comparison with 2006 and late in the year grew up to LTL 2,052 billion. The cost/income ratio of the bank’s Group reached 49.94 per cent, the average return on equity was 10.93 per cent while return on assets comprised 1.42 per cent.

The bank has increased its share of the occupied market and improved the conditions of the loan portfolio by attracting credit lines from the foreign banks. Last year Šiaulių bankas signed an agreement with the Council of Europe Development Bank regarding the credit line of EUR 10 million to finance small and medium-sized business, also it received a syndicated loan in the amount of EUR 30 million from thirteen European banks, which is used to finance the bank’s corporate purposes.

As of December 31st 2007 the shareholders equity of Šiaulių bankas’ Group comprised LTL 289 million, i.e. it grew by 54 per cent during the year. At the end of the accounting period Šiaulių bankas’ Group managed the loan portfolio of LTL 1,507 billion, which was increased by 54 per cent in the course of the year, and the leasing portfolio of LTL 121,6 million, which grew by 56 per cent.

“Though loan granting conditions were stiffened last year and loan interest rates were constantly growing, Šiaulių bankas increased its loan share in the country’s total loan market and focused its attention to those financial services, which promoted the name of Šiaulių bankas as the partner for small and medium-sized business”, - indicated the CEO.  The major share of the loan portfolio - 81 per cent - consisted of the loans to small and medium-sized businesses. The total customer loan portfolio increased by 55 per cent in 2007 and grew up to almost LTL 1,541 billion. The residents’ loan portfolio increased by more than 78 per cent and reached LTL 258 million.

The clients’ deposits with the bank have also grown. Last year for the first time the deposit amount exceeded one billion and reached LTL 1,217 billion - calculating from December 31st 2006 to the last day of the previous year the deposit amount increased by 30 percent. The residents’ deposit portfolio has grown by 39 per cent up to LTL 797 million.

In comparison with the last year net interest income grew by 40 per cent up to LTL 42,6 million. Šiaulių bankas income/cost ratio improved due to the faster grow of income in comparison with expenses - during the accounting period it has decreased up to 47.11 per cent. The bank’s liquidity ratio comprises 44.03 per cent while the capital adequacy ratio reached 15,31 percent.