Enhanced and steadily growing throughout the year Siauliu bankas finished 2011 with profit
According to pre-audited data the annual activity plan of Siauliu bankas, owned by the European Bank for Reconstruction and Development and Lithuanian investors, has exceeded the performance result of 2010 by 61 per cent and reached LTL 24,1 million before income tax and special provisions. Siauliu bankas finished 2011 with a pre-audited net profit of LTL 12,8 million. The pre-audited annual result of the entire Siauliu bankas Group comprised LTL 13 million.
“Last year was a year of challenges to the Lithuanian banking sector on the whole. In addition, the year of 2011 was the year of organizational alterations in Siauliu bankas. The Bank set the ambitious goals. Today, reviewing the results of our performance, we can state that we’ve managed to cope with the unexpected crisis, adopt and successfully implement the important decisions and, most importantly, to ensure safe and reliable handling of the clients’ funds. The increasing number of our clients indicates the growing confidence in Siauliu bankas”, - these words of the Chief Executive Officer of Siauliu bankas Audrius Ziugzda can be supported by the 12 per cent growth of the Bank’s clientele over 2011.
Notwithstanding the short-term tension in the country’s financial sector at the end of 2011, the results of all major activities of Siauliu bankas had been improving. The Bank’s key operating income, i.e. net interest income - grew by 74 per cent in comparison with 2010 and comprised LTL 50,1 million. Such increase was influenced by the growth of the loan portfolio as well as by increasing net interest margin. The net service and commission fee grew by 6 per cent up to LTL 8,45 million. The large scope of operations in foreign currency led to the increase in profit by LTL 4,9 million which was by 80 per cent more in comparison with the previous year. Good results were achieved despite the fact that in 2011 the Bank incurred LTL 3,4 mln in loss from the operations with securities (DS), which was caused by the European debt crisis resulting in changes of prices of debt securities. The Bank‘s operating income comprised LTL 60,7 million in 2011 in total, i.e. it was by 39 per cent more than in 2010.The Bank‘s operating expenses were by 28 per cent higher and amounted to LTL 36,6 million.
Managing the risks Siauliu bankas had been further applying the conservative assessment of its loan portfolio and, thus, had formed LTL 9,6 million of net special provisions in the course of the year.
“We’ve managed taking effective measures in difficult circumstances, rationally focused our efforts and achieved good results, which are indicating that currently the Bank’s efficiency is much higher”, - says A.Ziugzda.
The Bank’s profitability ratios incurred positive changes - the cost to income ratio improved from 63,8 per cent at the beginning of 2011 to 58,9 late in the year. The Return on Capital comprised 4,6 per cent, while at the same period last year this ratio was negative. The Return on Assets, being negative last year, comprised 0,5 per cent at the end of 2011 as well.
Late in 2011, when one bank lost its operating license, the 3.3 per cent decline in banks’ assets was registered in Lithuania (eliminating the factor of “Snoras” - 6,7 per cent growth), while the assets of Siauliu bankas grew by 17 per cent in the course of the accounting year and amounted to LTL 2,7 billion. Though the same reason caused the 7,6 per cent decline in loan portfolio of all banks operating in the country in 2011 (eliminating the factor of “Snoras” - 0,3 per cent decrease), Siauliu bankas had been further expanding the volume of the lending to its clients. The total annual growth of Siauliu bankas’ loan portfolio at net value comprised 25 per cent and reached LTL 2,1 billion at the end of the year. In 2011 the deposits with Siauliu bankas also grew - comparing to the end of 2010 the amount of clients’ deposits with the bank increased by 13 per cent up to LTL 1,9 billion (during the first ten months, prior to the bankruptcy of the “Snoras”, the growth of the Bank’s deposit portfolio comprised 16 per cent).
“In the course of the year Siauliu bankas increased the managed share of the loan market by 34 per cent - up to 3,8 per cent, the Bank’s share of the deposit market grew by 18 per cent - up to 4,5 per cent . We consider such results as a solid foundation for our further activities. In 2011 assessing the strong financial status, stable cash flow, compliance with the advanced principles of European performance, the European Bank for Reconstruction and Development confirmed its plans to continue collaborating with Siauliu bankas, to render on-going support to lending rendered to the business sector paying special attention to small and medium-sized enterprises”, - says A. Ziugzda.
Siauliu bankas successfully disseminated the new share issue in 2011 and after registering the authorized capital increased by LTL 30 million became the sixth bank by size in Lithuania. The Bank’s own capital reaches LTL 297,6 million.
Further strengthening its positions Siauliu bankas made an important step in 2011 by joining the joint ATM network. Henceforth the clients of Siauliu bankas can withdraw cash even in 270 ATMs operating throughout Lithuania.
“In 2012, commemorating the twentieth anniversary of our performance we envisage the wide potential ahead. The clients themselves are fostering our development and stimulating to search for the new decisions. We would to take advantage of the new challenges so that we would be able offering simple, flexible and rational solutions to our clients as well as close relations based on mutual confidence. Our activities are planned to improve business conditions in regions, foster the growth of economy and be transparent”, - states the Chief Executive Officer of Siauliu bankas Audrius Ziugzda.
About Siauliu bankas
Siauliu bankas focuses its activities on small and medium-sized business and provision of financial services to private clients. Siauliu bankas has 52 regional outlets operating in 31 town of the country and renders banking services all over Lithuania. The biggest shareholder of Siauliu bankas is the European Bank for Reconstruction and Development (EBRD) owned by 63 countries, European Union (EU) and European Investment Bank (EIB).