The results of Šiaulių bankas Group's performance over the three quarters of 2013
- The Bank earned LTL 8 million of the net profit; the Bank Group generated LTL 14.3 million.
- The declining price of resources led to the significant increase of the net interest income.
- The bigger number of the clients as well as their activity made a significant impact on the result gained from the transactions in foreign currency and growth of the net service income and commission fee.
- The loan portfolio increased, however impairments made the negative impact on the result.
- The agreement with the European Investment Bank amounting to EUR 40 million has been signed.
- One of the key stages of the Agreement on Transfer of Ūkio bankas' assets and liabilities has been completed .
The bank earned LTL 8.0 million of the unaudited net profit over the nine months of the current year which is by 27 per cent less than over the same period last year. The unaudited result of Šiaulių bankas' Group comprised LTL 14.3 million. The unaudited net profit earned by the Bank Group over the respective period last year amounted to LTL 11.1 million.
Over the third quarter of 2013 Šiaulių bankas' Group was improving its performance in all key areas. The declining price of the resources led to the significant growth of the net interest income. This type of income grew by 10 per cent over the third quarter, while the net interest income had increased by 18 per cent since the beginning of the year comparing with the respective period in 2012. The Bank Group's income from the net service and commission fee had been further growing, i.e. the increase was 7 per cent comparing to the second quarter while over the period of nine months the net service income and commission fee increased by 83 per cent and reached up to LTL 10.9 million. The bigger number of the clients and their activity made a positive impact on the result gained from the net service income and commission fee as well as from the transactions in foreign currency. The quarterly result increased nearly twice and amounted to LTL 2.2 million, whereas, the profit from transactions in foreign currency gained over the nine months increased by 43 per cent in comparison with the respective period in 2012 and comprised LTL5.1 million.
Comparing to the second quarter no significant changes in operating expenses have been recorded over the third quarter, however the impairment of loans and other assets is still adversely affecting the result of the Bank Group's. The impairments accounted for almost LTL 10.0 million over the third quarter and for LTL 19.1 million from the beginning of the year.
Despite the increased one-off expenses related to integration of the Ūkio bankas' part, the income of Šiaulių bankas' Group was growing faster than expenses and resulted in the increase of the business efficiency at the end of the third quarter. The cost to income ratio has decreased by 4.5 percentage points over the quarter and reached 73.5 per cent at the end of September. The return on equity comprised 6.1 per cent while the return on assets was 0.4 per cent.
"Though the bank's result gained over the nine month of the current year is smaller comparing to the respective period in 2012, I am really pleased with the positive trends in all key areas of the bank's activities such as increasing net interest income, net service income and commission fee. Despite the incurred one-off expenses related to the integration of processes taking over the part of Ūkio bankas assets and liabilities, the efficiency of Šiaulių bankas performance is improving. I hope that this trend of growth will remain in the future", - said Audrius Žiugžda, Chief Executive Officer of Šiaulių bankas.
The assets of the Bank Group reached almost LTL 5.3 billion at the end of the third quarter. The loan portfolio grew by LTL 51.9 million over the quarter and comprised almost LTL 2.5 billion placing Šiaulių bankas to the sixth position among the banks operating in Lithuania in terms of the loan portfolio with 5.2 per cent of the Lithuanian loan market. The deposit portfolio, accounting for the major share of liabilities, reached LTL 4.4 billion as of 30 September 2013. The share of the deposit market managed by Šiaulių bankas comprised 9.9 per cent and ensured the fourth position among the banks operating in Lithuania.
On 13 September 2013 the European Investment Bank (EIB), as the manager of the holding fund JESSICA in Lithuania, signed the loan agreement with Šiaulių bankas amounting to EUR 40 million for renovation of the multi-apartment houses. This is already the third agreement the purpose of which is to increase the efficiency of consumption of energy in multi-apartment buildings. In close collaboration with the EIB, Ministry of Environment, working together with municipalities and other institutions the active efforts are made to accelerate the implementation of energy-saving programmes in Lithuania.
On 11 October 2013 the KPMG Baltics provided Šiaulių bankas with the final valuation report of the assets and liabilities transferred from Ūkio bankas. It was established that the value of the liabilities taken over by Šiaulių bankas comprise LTL 2725 million, while the value of the taken over assets is LTL 1798 million. The state enterprise "Deposit and Investment Insurance" undertakes to cover the difference of LTL 128 million in value to Šiaulių bankas AB which occurred between the final and preliminary valuation.