The distributed profit of Šiaulių bankas

2009-03-27

The financial statements of the bank and the bank’s group for 2008 as well as distribution of the bank’s profit were approved during the General Shareholder’s Meeting held on March 27th 2009. In accordance with the approved distribution of profit neither dividends nor bonuses will be paid. The total distributable profit of LTL 51,5 million will be allocated to the development of the bank’s activities, further strengthening of the capital base and increase of the lending volume.

The shareholders of Šiaulių bankas assigned LTL 10 million to the general reserves prefigured in the Charter of the Bank to cover possible losses in assets and LTL 2,6 million were allocated to the statutory reserves. The retained earnings of Šiaulių bankas remain LTL 38,9 million.

According to the audited data the bank’s activities were profitable in 2008 - the bank earned LTL 17,5 million in net profit. Excluding the profit gained in 2007 through the onetime transaction, which the bank generated selling the shares of its subsidiary, the result of the financial activities of Šiaulių bankas in 2008 was by 7 per cent lower comparing to 2007 (when the bank’s net profit reached LTL 18,8 million). The entire Group of Šiaulių bankas AB earned LTL 15,8 million in net profit during the accounting year. The assets managed by Šiaulių bankas AB Group comprised LTL 2 080 million as of December 31st 2008 and had grown by more than LTL 28 million in the course of the year. During the reporting period of 2008 the authorized capital of Šiaulių bankas increased by 12 per cent and exceeded LTL 180 million.

“Last year was marked with the exceptional events in the financial markets which had corrected the curves of economic growth drawn by the companies at the beginning of the year. The changes in the financial markets influenced the activities of Šiaulių bankas as well, however the global issues had not disturbed its operations and the bank ended the year of 2008 profitably, - said the Chairman of the Bank’s Board Algirdas Butkus. - The optimal structure of the capital, the  professional management of the risks, the properly chosen strategy of the retail banking fused together into the fundamental power allowing Šiaulių bankas to reach good activity results and to increase shareholders’ equity.”

According to A.Butkus the bank has paid much attention not only to its business development but also to the efficiency of its operations and improvement of various risk management systems. In 2008 Šiaulių bankas was performing in compliance with all the prudential requirements set by the Bank of Lithuania. The capital adequacy ratio had exceeded the minimal 8 per cent standard set by the Bank of Lithuania almost twice and reached 15.08 per cent. The liquidity ratio had exceeded the minimal activity risk standard set by the Bank of Lithuania by almost 9 per cent and reached 38.75 per cent.

„The changed economic situation and the financial status of inhabitants will impact the banking sector in the nearest future as well. However, despite the economic uncertainty prevailing in the country Šiaulių bankas is planning to work profitably in 2009”, - said the CEO during the Shareholder’s Meeting.

Last year Šiaulių bankas opened 10 new client service centres all over Lithuania - currently the bank has 59 outlets in 33 towns of the country. The bank renders services to 124 thou of natural and legal entities. 75.83 per cent of the authorized capital of Šiaulių bankas are owned by the companies and individuals registered in Lithuania while 16.06 per cent belong to the bank’s biggest shareholder - the European Bank for Reconstruction and Development (EBRD). The shares of Šiaulių bankas are listed on the main trading list of NASDAQ OMX Vilnius.