Shareholders of Šiaulių bankas decided to allocate the retained earnings for strengthening of capital base


During General Meeting of Shareholders of Šiaulių bankas AB held on 29 March, a consolidated annual report of the bank group and auditor‘s conclusions were announced; the financial statements of the bank for the year 2009 and consolidated financial statements of the bank group were approved.

General Meeting of Shareholders approved the distribution of retained earnings, where it is provided for not to pay dividends to the shareholders for 2009. From the retained earnings intended for distribution in the amount of LTL 8.8 million, LTL 441 thousands are distributed into the compulsory reserve, whereas from the bank’s capital base LTL 8.4 million of non-distributed profits remained for the strengthening of the bank’s capital base.  The bank will also not going to pay tantieme for the Bank management.

During the Annual Meeting of Shareholders of Šiaulių bankas a new member of Supervisory Council - Michael Anthony Hesketh was elected, suggested by the European Bank for Reconstruction and Development (EBRD), substituting Matti Hyyrynen, who was working in Supervisory Council.

Chairman of Šiaulių bankas Board Algirdas Butkus while presenting activity results for the General Meeting of Shareholders reported that in 2009 Šiaulių bankas implemented all the prudential requirements limiting the activity risk set by the Bank of Lithuania. The Bank’s liquidity ratio remained high and comprised 38.23 per cent. Capital adequacy ratio was 13.9 per cent - this allowed to successfully amortize the incurred losses, which during reporting period reached LTL 30.1 million.

“Expensive borrowing resources and decreasing loan market affected the Bank‘s borrowing volume. In case of decrease of the companies‘ and people income the Bank‘s loan portfolio decreased almost by LTL 68.9 million or 4.1 per cent”, A. Butkus stated.

Within 2009 the Bank formed by 5.5 times more special provisions to cover  bad loans to compare with 2008  - in total more than LTL 40 million. Special provisions had negative impact also on the results of the group of Šiaulių bankas - during reporting period the Bank’s Group formed provisions for more than LTL 47 million; due to this fact it incurred the loss in the amount of LTL 35.6 million.

The biggest part of the Bank‘s liabilities was deposits portfolio. During 2009 the clients‘ deposits sum placed in the Bank had grown by 21.4 per cent and exceeded LTL 1.5 billion. Within 2009 the assets of Šiaulių bankas, which at the end of the year amounted more than  LTL 2 billion, was growing.

Šiaulių bankas actively participated while submitting requests for the selections under economic stimulation programs, supported by the Lithuanian Government, as well as attracting resources from International Institutions. According to the Chief Executive Officer of the Bank, by strengthening the capital base, the relevant convertible loan in the amount of LTL 30 million provided by the European Bank for Reconstruction and Development (EBRD) allowed ensuring sufficient capital reserve.

Last year Šiaulių bankas won the first and second stages tender of Small credits announced by the Ministry of Economy and Investicijų ir verslo garantijos UAB (Investment and Business Guarantee) as well as won the selection of the banks announced by the Ministry of Finance to grant state supported credits to students and signed the agreement with the Credit fund regarding the target credit, granting preference credits to the agricultural sector. Besides, Šiaulių Bankas, in cooperation with the European Investment Fund (EIF), started to implement a new financial instrument, which allowed simplify financing of micro enterprises as well as small and medium-sized enterprises. Šiaulių Bankas was selected by the EIF for extension of shared risk loans, and the EIF intended to allocate up to EUR 20 million to the Bank from the JEREMIE Holding Fund. Within 2009 Šiaulių bankas signed the loans with different institutions regarding attraction of LTL 223 million and returned LTL 157 Litas.

Authorized capital of Šiaulių bankas comprises more than LTL 180 million. 77.06 per cent of it belongs to the enterprises and private clients registered in Lithuania. The largest shareholder of the Bank - EBRD owns 16.06 of shares. At the end of 2009 Šiaulių bankas owned 52 Client Service Centers in 32 Lithuanian towns - the Bank‘s network includes the main Republic towns as well as financially active regions.

Annual report of Šiaulių bankas AB and the bank’s Group for 2009