Operating results of Šiaulių Bankas and the Bank’s group for 2009
According to unaudited data, Šiaulių bankas incurred a loss of LTL 30.1 million over 2009. Due to worsening assets quality, LTL 45 million was allocated for special provisions during the year.
The Bank earned from the operations LTL 7.7 million (without regard the impact of subsidiaries, special provisions, and profit taxes) during the year.
“Special provisions for bad loans have increased - such results of the Bank reflect the situation of the country’s economy. During the difficult period the provisions are essential seeking to guarantee stability, to solve problems that arose due to the financial difficulties of the clients, - Chairman of the Board of Šiaulių bankas Algirdas Butkus stated.”
The Bank’s assets increased by LTL 10 million (0.5 per cent) over the year compared to the end of 2008, while the assets of the banks operating in the country decreased by 6.1 per cent over the period. The loan portfolio of Šiaulių bankas decreased in net value nearly by LTL 69 million, i.e. 4 per cent (the decrease in the banking sector amounted to 14.1 per cent) and which was LTL 1 606 million as of the year-end.
According to A. Butkus, declining net interest income, which dropped by 35 per cent (LTL 15 million) compared to 2008, became an important factor affecting the Bank’s operating result. Although the Bank earned by 4 per cent more income from interest in 2009 (a total of LTL 140 million) than in the previous year, interest expenses increased by 23 per cent and amounted to almost LTL 113 million for 2009. Increasing interest expenses were caused by growing expensive resources. Over 2009, the deposit portfolio grew by 21.4 per cent (LTL 269 million) and amounted to LTL 1 529 million as of the year-end (deposit funds held in the banking sector increased by 7.4 per cent over the year).
While strengthening liquid assets base, Šiaulių bankas was increasing the securities portfolio during 2009. Over the year, the portfolio increased by 28 per cent (LTL 46.7 million) and reached LTL 214.4 million.
In 2009, the efficiency of the existing branches and Customer Service Centres was evaluated and economically unsound divisions were closed. At the end of the year, the total headcount of Šiaulių Bankas including its branches amounted to 475 employees or 9 per cent less than the number of the end 2008. During 2009, the Bank repaid LTL 157.1 million of loans and signed new ones for LTL 222.9 million:
- EUR 30 million convertible loan with the European Bank for Reconstruction and Development EBRD;
- EUR 20 million with the European Investment Fund (EIF) for the financing of micro, small- and medium-sized enterprises;
- LTL 42 million with the Ministry of Agriculture of the Republic of Lithuania and Investicijų ir Verslo Garantijos UAB for the financing of small- and medium-sized business;
- EUR 2.4 million with the Rural Credit Guarantee Fund for the provision of preferential loans to the agricultural sector.
The unaudited result of the group of Šiaulių bankas for the year comprises a loss of LTL 35.6 million.