Šiaulių bankas’ group earned LTL 6.3 million of net profit within the half-year period

Šiaulių bankas controlled by the Lithuanian investors and the European Bank for Reconstruction and Development (EBRD) continued its growth and improved its results within the second quarter of 2011.

During the first half-year operating profit of the bank before profit taxand special provisions to bad loans was by almost twice as much compared with the result of the same period last year and amounted to LTL 10.4 million. Net profit of the bank for the half-year grew to LTL 6.4 million, while during the same period of last year the bank incurred a loss of LTL 11.1 million. The Group of the Bank earned LTL 6.3 million of net profit this year.

Active crediting activity and increasing interest margin had the greatest impact on the achieved result. Over just the second quarter the loan portfolio of the bank increased by 9 per cent and totaled to nearly LTL 1.9 billion. Since the beginning of the year the loan portfolio of Šiaulių bankas increased by LTL 232 million, while deposits - by LTL 134 million. Net interest income grew by 27.6 per cent within the quarter, while comparing with the half-year of the last year - even by 70 per cent.

An increasing number of customers allowed to earn more net service and commission income as well as profit from operations in foreign currency. Comparing with the first quarter they increased by 14 and 42 per cent respectively.

 “I am glad that more and more new customers choose Šiaulių bankas as the main bank, are pleased with the services provided by our bank as well as our attitude towards a client. A growing number of customers not only positively influences the results of the bank, but also creates expectations that these tendencies will be sustainable and long-lasting”, said Audrius Žiugžda, the Chief Executive Officer of Šiaulių bankas.

While financial state of the majority of the bank’s customers has stabilized and is improving, the bank managing the risk exposure conservatively assesses the loan portfolio. Due to this reason within the second quarter it was additionally formed provisions of LTL 3.1 million to cover doubtful assets.

During the second quarter of this year Šiaulių bankas successfully offered a new share issue, which was issued for the increase of the authorized capital of the bank with additional contributions of LTL 30 million. Soon the amended charter of Šiaulių bankas with the authorized capital of LTL 234.9 million will be registered. The increased capital will provide conditions for successful future growth of the bank.

About  Šiaulių bankas

Šiaulių bankas 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. Šiaulių bankas’ Group possesses the bank and five subsidiary enterprises 100 per cent controlled by it.