Šiaulių bankas is Concentrating Strengths for the Rapid Growth
On March 29th 2007 the shareholders of Šiaulių bankas resolved to increase the bank’s authorized capital by almost LTL 52 million. The authorized capital is to be increased from the bank’s own funds and by the additional contributions. It is expected that the capital increased up to LTL 161 million will be registered in summer.
During the General Shareholders’ Meeting the shareholders were presented with the conclusion of the auditor from the “PricewaterhouseCoopers” UAB as well as with the consolidated annual report of Šiaulių bankas for 2006, also, they confirmed the company’s financial statements for 2006 and allocated profits.
In the course of the year Šiaulių bankas is going to pay LTL 2.181 million in dividends, i.e. two cents for a bank’s share with a 1 LTL par value. Last year the dividends carried the same value, i.e. 2 per cent from the par value of the share.
The General Shareholders’ Meeting made the resolution to increase the bank’s authorized capital from LTL 109 million to LTL 161 million from the bank’s own funds and by the additional contributions. The bank’s authorized capital is going to be increased from the capital reserve issuing 11.994.312 ordinary registered shares with LTL 1 par value that are to be distributed to the shareholders free of charge in proportion to the total par value of the shares owned by them on the Meetings day. The free shares will comprise 11 per cent from the share amount possessed on 29/03/2007. 40 million of ordinary registered shares with LTL 1 par value are to be issued in order to increase the authorized capital by LTL 40 million by additional contributions. An established issue price reaches LTL 2.30 per share. In compliance with the resolution made on the Shareholders’ Meeting a new share issue is assigned to the existing shareholders. During the first stage of dissemination the shareholders will be able to acquire the shares in proportion to the number of shares owned by the on the Meeting day. “The Bank has ambitious plans, it promises to work actively in the financial markets and is searching for more opportunities concerning stable development”, - said the Chairman of the Board of Šiaulių bankas, Chief Executive Officer, Algirdas Butkus while speaking about the projected increase of the authorized capital.
The net profit of Šiaulių bankas for 2006 which has been approved by shareholders and audited comprised LTL 13.657 million and was by 68 per cent bigger than previous year. In comparison with 2005 the amount of deposits with the bank has increased by one fourth and reached LTL 921.499 million. Loans granted to the clients have grown by 36 per cent and totaled in LTL 898.618 million. In 2006 77 per cent of the Bank’s total Loan Portfolio was allocated to the small and medium-sized business which claims to be the Bank’s main focus. “The results achieved in 2007 allow optimistic prospects for 2007 as well as the Bank is planning to earn twice as much in profits, i.e. LTL 26 million, - stated the Chairman of the Board Algirdas Butkus. Šiaulių bankas has exceeded the earlier declared net profit projections by 18 per cent (earlier it was planned to earn LTL 22 million).
Late in last year the Bank’s assets reached LTL 1.35 billion. In 2007 the Bank projects to increase this indicator by 37 per cent up to LTL 1.85 billion. The General Shareholders’ Meeting has also been presented with such an asset growth prognosis which is bigger than being projected.
The shares of AB Šiaulių bankas are quoted, starting from the end of 2006, on the Main List of the Vilnius Stock Exchange (VSE). Nearly 100,000 customers availed themselves of the services rendered by Šiaulių bankas, including some 7,000 corporate customers. The Bank’s authorized capital which was LTL 74.7 million at the beginning of the accounting year has increased up to LTL 109 million late in the year. During the same period the shareholders’ equity has increased by 69 per cent up to LTL 152.2 million.
The growth in the number of users of the Bank’s internet banking system "SB linija" was remarkably fast and consistent throughout the year as 13.930 customers were recorded as regular users of "SB linija“, i.e., 71 percent more than at the same time in 2005. Last year more than 60 percent of all payments have been executed through “SB linija”. In 2006, the number of payment cards issued by the Bank exceeded 38.000 - 52 percent more than in 2005. The number of the users of the telephone banking service “SMS bank” has sky-rocketed having increased by 178 percent.
Šiaulių bankas AB operates 49 customer service divisions in 29 cities and towns in Lithuania. Four of these divisions (in Biržai, Ukmergė, Jonava and one more additional division in Šiauliai) were opened in the course of 2006. Although the development of the principal framework of the service network in Lithuania is nearly complete, with the view of the further optimisation of customer servicing, the Bank anticipates opening several other customer service divisions this year.
The major shareholder of AB Šiaulių bankas - the European Bank for Reconstruction and Development (EBRD) currently holds 16.06 percent of the Bank‘s authorised capital. AB Šiaulių bankas further remains one of the major holders of domestic capital with 71 per cent of its authorised capital owned by Lithuanian residents, companies and private individuals.
Šiaulių bankas AB currently controls 100 per cent of shares of “Šiaulių banko lizingas” UAB (SB Leasing) and “Šiaulių banko investicijų valdymas” UAB (SB Investment Mangement), 53.1 per cent of shares of “Šiaulių banko turto fondas” UAB (SB Assets Fund) and 99.9 per cent of “Pajūrio alka” UAB.
In 2006, Šiaulių bankas Group earned LTL 22.7 million in net profits, i.e., a tripling of the 2005. The Groups‘ assets increased by one third and reached LTL 1.39 billion. The major share of the Bank's assets is represented by its loan portfolio, the volumes whereof, during the year reviewed increased by 40 percent. Net interest revenues jumped up by 37 percent. As of 31 December 2006, the equity of Šiaulių bankas Group shareholders was valued at LTL 187 million representing an increase of 82 percent.
It has been emphasized in the consolidated annual report approved by the Audit that Šiaulių bankas and the enterprises belonging to the Group successfully grew and developed their activities throughout the previous year. Transparent and consistent performance of the Bank in 2006 have been duly appreciated by the international rating agency Moody’s. In February 2007, Moody’s assigned higher ratings to AB Šiaulių bankas, i.e. a long-term Ba2 deposit rating and a financial strength rating D, leaving a short-term deposit rating NP, and assessed the long-term rating outlooks as stable.