Rating agency upgrades Šiaulių Bankas' ratings


On 16 June 2016 international rating agency Moody‘s Investors Service announced about upgrading of Šiaulių bankas AB deposit rating to Ba1 from Ba2. The outlook on the long-term deposit ratings is stable.

According to Moody's this rating action reflects the improvement of Šiaulių Bankas in terms of capital and profitability as well as reduced risks.

"In upgrading ratings the agency has also taken into account that the bank has been reinforcing its capital buffer in order to comply with regulatory and prudential capital requirements. Significantly improved profitability, positive development of asset risk and non-performing loans in line with the reinforced bank's customer-focused strategy were the indicators leading to this upgrading", - says Chief Executive Officer of Šiaulių Bankas Vytautas Sinius.

The rating agency has also upgraded such indicators as the bank's baseline credit assessment (BCA) and adjusted BCA to ba3 from ba1, the bank's short-term Counterparty Risk Assessment to P-3(cr) from NP(cr) and long-term Counterparty Risk Assessment to   Baa3(cr) from Ba1 (cr).

Earlier in June 2015, Moody's upgraded Šiaulių bankas deposit rating by two notches to Ba2 from B1.

In 2015, Šiaulių Bankas AB earned EUR 21.2 million of the net profit while the Bank Group generated EUR  23.8 million. Šiaulių Bankas Group's return on equity grew up to 19 per cent  while return on assets reached 1.4 per cent. The Group's loan and finance lease portfolio grew by 17 per cent, the Groups' deposit portfolio also showed some positive development. Among banks operating in Lithuania,  Šiaulių Bankas currently ranks fourth  both in the loan and deposit markets.

International finance and business magazines - The Banker and Global Finance - recognized Šiaulių Bankas as the best bank in Lithuania in 2015. At present the bank has 69 regional customer service points operating in 38 cities and towns of Lithuania. Šiaulių Bankas is the bank with the largest share of Lithuanian capital.  The major shareholder of the Bank is the European Bank for Reconstruction and Development (EBRD).