Šiaulių Bankas’ Shareholders approved increase of the authorized capital


A resolution to increase the Bank's authorized capital by 6.73 million euro from the Bank's own funds was passed at the General Meeting of Shareholders of Šiaulių Bankas held on 27 March. After a share issue authorized capital of Šiaulių bankas will grow up to 85 million euro.

Shareholders resolved to increase the authorized capital issuing 23,220,000 of ordinary registered shares with with the par value of 0.29 euro per share. The issued shares will be distributed to the shareholders free of charge in proportion to the total nominal value of shares owned by them. 8.6 new shares will be allocated to each shareholder for already owned 100 shares.

Increasing the Bank's authorized capital from the Bank's own funds the newly issued shares will be distributed to shareholders free of charge which, consequently, ensures growth of their investments even if a share market value remains stable. Šiaulių Bankas is consistent with such a strategy and those investors that have been holding the Bank's shares for a longer period of time have already commended it as an advantage", - said Chief Executive Officer of Šiaulių Bankas Vytautas Sinius.

V. Sinius illustrated gains generated by the Bank to its investors by providing a following example: if an investor owned 100 Bank's shares in 2002 then this year the number of his shares will reach 239. Assuming that a share market price remained at its nominal size all the time we can come to the conclusion that over the thirteen-year period the investment value grew by 139 per cent.

Following the shareholders' resolution the authorized capital of Šiaulių Bankas will be increased from the share premium amounting to 3.68 million euro and from f the part of retained earnings comprising 3.05 million euro. At the annual Shareholders' Meeting in May last year the authorized capital was increased by 20 million litas (5.8 million euro) from share premium only. Last year, shareholders received 8 free new shares for already owned 100 shares.

Šiaulių Bankas’ Shareholders approved financial statements and profit allocation for the year 2014. The allocation of profit reflects the Bank's shareholders' willingness to support the capital-building strategy of the Bank. 1 million euro from 20.3 million euro of distributable profit is assigned to mandatory reserve while the amount of 0.2 million euro goes to dividends.   Size of dividends comprise 0.25 per cent of par value per share. Retained earnings remain at 19.1 million euro. Once a new issue of free shares is registered, 3.05 million euro from this amount will be used for the authorized capital, i.e. it will be distributed to the shareholders in the form of shares.

Shareholders have passed a resolution regarding amendments of the Charter of the Bank.  These amendments will be related to the authorized capital increase, decline of the number of members of the Bank's Management Board from 8 to 7 and, also, seeking to adjust functions of the Supervisory Council of the Bank.

Despite uncertain geopolitical circumstances prevailing  in 2014 the Bank's Group achieved good performance result. Both the Bank Group and Šiaulių Bankas itself continued to grow and improved their results several times over. The biggest Lithuanian-capital bank successfully consolidated its positions in the financial market and continues to expand its activities", - said Vytautas Sinius during the Shareholders' Meeting.

The Group during 2014 earned a net profit of 11.77 million euro, or 2.2 times the 2013 level. The net profit of the Bank was 10.6 million euro, which is 3.4 times the previous year’s level.

65.21 of the Bank's authorized capital is owned by the private persons and companies incorporated in Lithuania. The major shareholder of Šiaulių bankas - the European Bank for Reconstruction and Development (EBRD) owns 19.57 of the Bank's shares.