Operating results of Šiaulių bankas for 2010 is a basis for a further growth


According to the unaudited results Šiaulių bankas earned LTL 15 million operating profit before profit tax and special provisions in 2010, i.e. by almost twice as much compared with 2009, when operating result totaled LTL 7.7 million (without evaluation of dividends paid by subsidiaries to the Bank).

Since the beginning of 2010 the most important Bank’s operating income - net interest income - were growing gradually growing each quarter. In 2010 net interest income totaled LTL 28.9 million or was by 5 per cent bigger comparing with the year before. Net interest and commission income decreased by 7 per cent and comprised LTL 7.9 million; this fall was influenced by the decrease of the clients’ activity and number of transactions. However, other and financial operations income grew by almost twice as much to LTL 6.8 million. In 2010 total Bank’s net income increased by one tenth and totaled LTL 43.6 million.

In 2010 Šiaulių bankas paid particular attention to the operational efficiency; it allowed to reduce operating costs by 10 per cent, which comprised LTL 28.6 million. The Bank’s efficiency indicator improved by 12 percentage points: at the beginning of 2010 cost/income ratio amounted to 63.8 per cent.

As in 2009, last year volumes of loans impairment remained high enough: within the last year special provisions of LTL 43.9 million were formed (in 2009 - LTL 45 million). Special provisions expenses influenced negative financial operating result of the Bank: the Bank ended 2010 with LTL 24.1 million unaudited net loss. Šiaulių bankas’ Group incurred a loss of LTL 28.3 million over 2010.

“Improvement of the Bank’s financial results is observed during the whole last year. The increased interest income, in particular in the last quarter of the year, decreased special provisions for covering bad loans, strict management of operating costs: these are features showing that the Bank is strengthening and moving towards the right direction,” said Chief Executive Officer of Šiaulių bankas Audrius Žiugžda.

The assets of the Bank grew by 13 per cent to LTL 2 335 million over the year, while, the assets of the whole banking sector decreased by 3 per cent. Strengthening a base of liquid assets, the Bank was increasing securities portfolio during 2010, which increased even by 74 per cent over the year - to LTL 374 million.

The major part of the Banks assets was comprised of loans - 71 per cent. Despite of the fact that the loan portfolio of the whole banking sector was decreasing by 5.2 per cent, Šiaulių bankas was improving business conditions to its customers and increasing lending volumes. Last year the loan portfolio grew by 3 per cent, i.e. LTL 52 million and at the end of the year comprised LTL 1 658 million. Šiaulių bankas by strengthening its positions as a financial partner of SME, was successfully participating in the economy stimulation programmes initiated by the Government of the Republic of Lithuania and expanding cooperation with international financial institutions.

Customers’ deposits were also increasing in Šiaulių bankas. Deposits in the Bank increased by 9.4 per cent to LTL 1 672 million over the year. Deposits of residents increased by 6 per cent, while, deposit portfolio of corporate clients increased by 20 per cent over 2010.

Authorized capital of the Bank was increased by LTL 24.5 million by issuing a new share issue, which was redeemed by the European Bank for Reconstruction and Development (EBRD) and other major shareholders of the Bank. At the end of the last year the capital of the Bank comprised LTL 256 million. Capital adequacy ratio was 14.06 per cent. The Bank’s liquidity remained sufficient and comprised 46 per cent.

Chief Executive Officer of Šiaulių bankas Audrius Žiugžda:
“I am glad that the Bank in many areas of its activity was increasing its market share. The Bank’s and the whole Bank Group’s results show positive tendencies of the loan portfolio, growing number of clients, thus, we are expecting a further income increase. This creates a base for the expansion of the Bank and strengthens belief that a business situation is stabilizing, while the economy of the country is recovering gradually”.

About Šiaulių bankas
Šiaulių bankas controlled by the Lithuanian investors and the European Bank for Reconstruction and Development (EBRD) directs its activity towards the SME and provision of financial services to individuals. Šiaulių bankas is one of the banks having the largest share of the Lithuanian capital in the country: companies registered in Lithuania and individuals possess 71 per cent of the Bank’s authorised capital. The Bank possesses 52 territorial outlets operating throughout the Lithuania.