Published: 2019-11-05 08:00:00 CET
Siauliu Bankas
Interim information

In the nine months of this year Šiaulių Bankas Group earned 40.6 million euros of pre-audited net profit which is 5 per cent more than in the respective period last year.

Šiaulių Bankas AB, company code 112025254, domicile address Tilžės st. 149, LT-76348 Šiauliai, Lithuania.

 Successful financial performance is the result of sustainable and consistent growth. The results show that we are on the right path and, taking into account the business environment, we believe that the conditions leading to rapid development will allow Šiaulių Bankas continuing to grow", - commented Chief Executive Officer of Šiaulių Bankas Vytautas Sinius.

  • Bank Group earned 40.6 million euro of net profit
  • Recurring activity result increased 22 per cent year over year.
  • Loan and finance lease portfolio grew 17 per cent from the beginning of the year.
  • Return on equity exceeds 19 per cent.
  • The process of analysing strategic alternatives initiated.

The growth in net interest income as well as net fee and commission income significantly contributed to the improving results of recurring activities. Rapid growth in loan and finance leasing portfolio allowed maintaining stable loan yields - the Group earned EUR 53 million of net interest income in nine months of this year which is by 15% more than in the respective period last year. Net fee and commission income grew 27 per cent compared to the respective period last year and exceeded EUR  13 million.

Profit from trading activities also grew significantly - during the three quarters the Group earned EUR 5.3 million from trading in securities and EUR 5.9 million from trading in foreign exchange.

With the rapid growth in the scope of activities, operating expenses of the Group, excluding those related to insurance activities, increased by 13 per cent during the year and reached EUR  28 million. Salary expenses, which account for the bulk of the costs, grew by 8 per cent over a year. In order to ensure the continuous improvement of information technology, IT-related expenses increased by 48 per cent per year respectively.

For the loan and finance lease portfolio, the Group additionally accounted EUR 3.2 million of provisions in the third quarter, whereas from the beginning of the year these expenses totaled to EUR 4.3 million. The IFRS 9 methodology applicable since 2018 requires that part of the provisions is recognized after the loan is issued, which increases the cost of impairment as the loan portfolio grows. No significant deterioration in the credit quality of the exposure segments was observed.

The Group maintained a high level of operating efficiency - cost to income ratio for three quarters of 2019 comprised 40 per cent. Return on equity was 19.1 per cent. Capital and liquidity position remained robust - prudential requirements are implemented with adequate buffers.

Overview of Business Segments

Business and consumer finance
The Group's loan and finance lease portfolio continued to grow steadily with a 7 per cent increase in the third quarter alone and a 17 per cent increase since the beginning of the year, thus, exceeding EUR 1.6 billion at the end of September.  More than EUR 0.6 billion of new loan agreements were signed in the first nine months of the year which is by 16 per cent more that over the respective period in 2018.

As the demand for financing in the fields of business and private clients increased, the scope of the Bank's strategic directions - business and consumer financing - also expanded significantly. The value of new business finance contracts has exceeded EUR 400 million since the beginning of the year and the portfolio grew by 15 per cent.

The portfolio of consumer finance products grew steadily on a quarterly basis, growing by 32 per cent in the first nine months in total with over EUR 100 million of new contracts. 

Strong activity in the housing market segment ensured the growth of the mortgage portfolio - the mortgage portfolio grew by 27 per cent in the third quarter alone and reached EUR  82 million.

Daily banking

Although other market participants are refusing cash transactions in their bank units and the use of payment cards, on-line banking and other digital solutions is growing, Šiaulių Bankas, following the customer-focused strategy, does not plan to refuse cash transactions and currency exchange in its customer service points.

Saving and Investing

The deposit portfolio grew by 8% since the beginning of the year and at the end of September2019 it amounted to almost EUR 2 billion. With low interest rates continuing to prevail, most deposits are held in current accounts - the demand deposits rose by EUR 128 million in the first nine months of this year. The term deposit portfolio grew by 22 million with almost half of it coming from the German market. In Germany the deposit rates are decreasing especially for those of long-term, while interest rates in Lithuania have remained stable.

The first term deposit with additional interest issued three years ago expired at the beginning of October. The Bank customers earned 2.85 per cent of annual interest, which was 5 times higher than interest rate applied to the regular term deposits.  The Bank does not longer distribute such a saving product with additional interest due to the new regulation of investment services, but it may offer clients alternative savings or investment solutions.

Investments in customer service

Šiaulių Bankas continues to invest in the network of customer service units - 19 points throughout Lithuania have been renovated and modernized to date and the total amount of investments reached over  EUR  2.4 million.

This year updated customer service units of Šiaulių Bankas opened their doors in Vilnius, Kaunas, Šiauliai, Panevėžys, Marijampolė, Druskininkai, Palanga and in some other towns of the country. Last year the units were renovated in Tauragė, Vilnius, Šilutė, Kaunas and Mažeikiai with the investments reaching nearly EUR 0.4 million in total.
According to Mystery Shopper Survey conducted by “Dive Lietuva” in 2018, Šiaulių Bankas is the first bank in Lithuania by the customer service quality.

Additional information:

Head of Finance and Risk Management Division

Donatas Savickas +370 41 595 602,


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