Alternative performance measures

Alternative performance measures included in the regulated information disclosures of Šiaulių bankas and its website allow the users to assess the value of bank‘s shares and operating efficiency:

Performance measure

Formula and components used for the calculation:

Interpretation

Non-recurring earnings

Non-recurring earnings calculated as a total of income statement lines:

• Net loss from other derivatives.

• Net loss from changes in fair value of subordinated loan.

• Net gain from derecognition of financial assets.

• Net gain from disposal of tangible assets.

 

Note: Amounts from other income statement lines can be included if treated as non-recurring.

 Non-recurring earnings is a non-IFRS performance measure used for Bank’s analysis. It aims to show a part of earnings that is attributable to one-off transactions or transactions that are not typical to the Group’s main activity. 

Price/Earnings (P/E) indicator of the Group

Share price
Earnings per share

• Share price – presented in Nasdaq Vilnius stock exchange.

• Earnings per share – presented in the income statement.

The price-earnings ratio indicates the price investors pay for one euro of the company’s earnings.

Dividends to net profit, %

 

 

Amount of dividends per share
 Earnings per share

• Amount of dividends per share – presented in explanatory notes to the financial statements.

• Earnings per share – presented in the income statement.

The ratio indicates the share of company‘s earnings that is distributed in a form of dividends.

Dividend yield, %

Amount of dividends per share
Share price

• Amount of dividends per share – presented in explanatory notes to the financial statemets

• Share price – presented in Nasdaq Vilnius stock exchange.

The ratio indicates level of return that is generated from dividends.

Return on average assets, (ROAA)

Net profit for the year
Average total assets

• Net profit for the year – presented in the income statement.

• Average total assets – calculated as a average of the total assets (presented in statement of financial position) for the last four quaters.

The ratio shows the percentage return the company earns from assets. The higher the ratio, the more efficient use of assets.

Return on average equity, (ROAE)

Operating costs
Operating income

• Net profit for the year – presented in the income statement. 

• Average total equity – calculated as a average of the total equity (presented in statement of financial position) for the last four quaters.

The ratio shows the percentage return the company earns from equity. Higher ROAE ratio is considered as better.

Cost to income ratio, %

Operating costs
Operating income

Operating costs (which is a total of income statement lines):

• Salaries and related expenses. 

• Depreciation and amortization expenses. 

• Expenses related to other activities of Group companies. 

• Other operating expenses. 

Operating income (which is a total of income statement lines):

• Net interest income. 

• Net fee and commission income. 

• Net gain from operations with securities. 

• Net gain from foreign exchange and related derivatives. 

• Net loss from other derivatives. 

• Net loss from changes in fair value of subordinated loan. 

• Net gain from derecognition of financial assets. 

• Net gain from disposal of tangible assets. 

• Revenue related to other activities of Group companies. 

• Other operating income. 

The ratio indicates the amount of cost used to earn one euro of income. Lower cost to income ratio is considered as better.

Price to book (P/BV) value ratio 

 

Share price
Book value per share

• Share price – presented in Nasdaq Vilnius stock exchange.

• Book value per share – calculated as ratio between total equity (statement of financial position) and number of shares (annual report).

The ratio indicates the price investors pay for one euro of total equity.

The bank does not publish performance measures related to future reporting periods in its regulated information disclosures.