The performance results of Šiaulių Bankas Group for 2015

2016-02-29
  • The Group earned 23.8 million euros, the Bank - 21.2 million euros of the pre-audited net profit. The Group’s return on equity made up 19 per cent
  • The Group's loan and finance lease portfolio grew by 17 per cent, the Group‘s deposit portfolio grew likewise
  • The transaction of the bank Finasta and financial brokerage company Finasta AB acquisition was closed in less than a year
  • Šiaulių Bankas was recognized  as The Best Bank in Lithuania' 2015

In 2015 Šiaulių Bankas offered a weighty contribution to the changes important to the whole country – it actively participated in the euro introduction at the beginning of the year and in the accession to the Single Euro Payments Area (SEPA) at the end of the year.  Challenges were numerous, nonetheless, the Bank managed to align its efforts reaching the exclusive performance results.

Šiaulių Bankas Group generated EUR 23.8 million of the pre-audited net profit, which by 2 times exceeded the result achieved in 2014 when the net profit amounted to EUR 11.8 million. The pre-audited net profit of the Bank compiled EUR 21.2 million in 2015, which was also twice more than in 2014. The return on equity ratio grew up to 19 per cent, return on assets reached 1.4 per cent.

„The year 2015 may be called a record year beyond any doubt – similarly like the earlier quarters the fourth one could also be characterized by a remarkable growth. Last year, the Bank was involved in several active developments – it acquired two companies rendering investment services and, thus, expanded a range of services provided by the Bank. At the same time the Bank accomplished its structural rearrangements and gained much experience in shaping the value-based organizational structure. Such customer focused strategy appeared to be successful – a number of our customers and the customer service quality continue to grow. I do believe we’ve laid a strong foundation for the Bank’s further sustainable and responsible performance which would assist our customers realizing their ambitions and potential for further growth“, - says Vytautas Sinius, Chief Executive Officer of Šiaulių Bankas.

Net profit of the Bank and the Group, 2011-2015, EUR thousand:

The assets of Šiaulių Bankas Group grew by more than 3 per cent up to EUR 1.7 billion over the year. In 2015 the companies and households borrowed more – the loan and finance lease portfolio grew by 17 per cent reaching EUR 909 million. Despite a very low interest rate environment, deposits still remained the popular means of saving. The deposit portfolio of Šiaulių Bankas Group exceeded EUR 1.44 billion and increased by 2 per cent per year. Integration of the bank Finasta AB also made an impact on the deposit portfolio growth. Among banks operating in Lithuania, the Bank currently ranks fourth both in the loan and deposit markets.

Accelerating lending fostered the interest income increase - grew by 4 per cent per annum. Constantly decreasing costs of the term deposits led to 28 per cent lower interest expenses comparing to 2014. The net interest income grew by 23 per cent and amounted to EUR 48.8 million at the end of the year.

The net fee and commission income of Šiaulių Bankas Group also changed significantly in 2015 – it amounted to EUR 8 million which was by 24 per cent more than in 2014. Increased number of customers, product permeability, and income from housing renovation programme financing compensated the fee and commission income loss related to the euro adoption.

During that active period of performance   the expenses of Šiaulių Bankas Group grew by 15 per cent - operating expenses amounted to EUR 42.9 million. Nonetheless, the Bank and the Group maintained a decent cost to income ratio which at the end of the year reached 39 per cent and 52 per cent respectively.

After registration of the increased authorized capital of Šiaulių Bankas in autumn and implementation of other capital strengthening measures, the Bank’s compliance with the capital adequacy ratios were aligned with a comfortable cushion - the capital adequacy ratio exceeded 14.3 per cent at the end of the year.

One of the largest transactions in the market last year was closed in less than a year – the bank Finasta AB and financial brokerage company Finasta AB had been acquired by way of merger with Šiaulių Bankas.  Šiaulių Bankas expanded a range of its services with investment, securities trading and brokerage services.

Last year Šiaulių Bankas renewed its brand and introduced a new image strategy and even more fortified its leading position in multi-apartment renovation financing programme.

According to the data of the customer service quality survey conducted in the banking sector by company Dive Lietuva at the end of the year, the customer service quality at Šiaulių Bankas  was higher than the banking sector’s average and accounted for the largest improvement among all the banks operating in Lithuania, i.e. it jumped up by four positions. The overall customer service quality ratio of Šiaulių Bankas comprised 90.3 per cent reaching the highest level of the customer service quality.

Assessing the bank's activities over the last year as well as earlier period of its performance including the  financial indicators, the influential  international magazine The Banker issued by The Financial Times recognized the Šiaulių Bankas as The Best Bank in Lithuania' 2015. Such a prestigious award has been assigned to Šiaulių bankas for the second time.