The third quarter of 2011 - one of the most successful periods in the history of Šiaulių bankas’ activity
Over the third quarter of 2011 Šiaulių bankas managed by the Lithuanian investors and European Bank for Reconstruction Development (EBRD) experienced a period of balanced growth and further improvements in the activity results.
Active performance has assisted in attracting new clientele and increasing the generated profit - the net profit earned by the Bank has reached LTL 10.73 million over the three quarters of the current year while the Bank’s Group has earned LTL 10.72 of net profit. The Bank and the Bank’s Group incurred loss over the relevant period last year.
All the results of the Bank’s key activities have improved over the third quarter of this year. The net interest income has reached LTL 34.67 million, i.e. it has increased by 77 per cent in comparison with the same period in 2010. The net service and commission fee has exceeded the value of the relevant period in previous year by 7 per cent and reached LTL 6,19 million. The profit from foreign currency transactions has grown by 134 per cent.
The Bank’s operating profit generated over nine months exceeded the operating result of the same period last year by 62 per cent and reached LTL 18.83 million before the corporation tax and special provisions.
Good results have been achieved despite the fact that applying conservative assessment of risks the Bank has further formed additional special provisions for the loan portfolio and other assets. Over the mentioned quarter LTL 3.5 million of special provisions were formed additionally thus comprising LTL 6.45 million calculating since the beginning of the year.
In the third quarter Šiaulių bankas finished a successful dissemination of the new share issue and registered the capital increased by LTL 30 million. Currently the Bank’s authorized capital reaches LTL 234.86 million which enables the Bank to grow further and overcome the threats arising from possible renewing of the world economy crisis.
“I am very satisfied with the quarterly results. Moreover, I suppose that being a Lithuanian bank, adopting quick and simple decisions, being close to its clients and paying much attention to them, Šiaulių bankas has a unique opportunity to strengthen its position within the market”, - says the Chief Executive Officer of Šiaulių bankas Audrius Žiugžda.
Increasing income improved the profitability indicators on its turn. The cost to income ratio has improved from 62.2 per cent in 2010 to 56.8 per cent in the third quarter of the current year. The return on capital ratio increased up to 5.3 per cent while at the relevant period last year this ratio was negative.
During the third quarter Šiaulių bankas had been growing consistently and was one of the banks in the country that were rapidly increasing their market share. The Bank’s loan portfolio and deposits were growing at around similar pace - they have increased by 6.7 per cent and 6.4 per cent respectively over the third quarter. The loans granted to clients have exceeded LTL 2.02 billion (increased by 22 per cent since the beginning of the year). The span of the loan to corporate clients has increased the most. The increase of corporate clients’ funds in bank accounts and growing number of natural entities led to increase in deposits - they have comprised LTL 1.92 billion (increased by 15 per cent since the beginning of the year).The Bank’s assets have grown by 17 per cent up to LTL 2.74 over nine months.
In the third quarter of 2011 Šiaulių bankas covered 3.45 per cent of loan market share in Lithuania, i.e. it increased by 0.6 per cent over the nine-month period. The Bank’s share in deposit market has comprised 4.2 percent which is by 0.35 per cent more than in the beginning of the year.
The number of Šiaulių bankas clients has grown as well - as of September 30, 2011 it reached 136 thou which is by 8 thou more than in the beginning of the year.