0KC0 Siauliu Bankas Ab

• Profit. Šiaulių Bankas earned a net profit of €43.0 million
• Return on capital. Achieved a return on equity (RoE) of 16.2%
• Loan portfolio. New loan financing contract volumes grew rapidly, with the loan portfolio exceeds €3 billion
• Asset quality. The cost of risk (CoR) of the loan portfolio was 0.29%
• Net fee and commission income. Net fee and commission income amounted to €13.7 million, an increase of 41% compared to the same period last year

"Following the ambitious strategy outlined earlier this year, we’ve gained significant momentum. We achieved robust growth across all business segments, from increased lending to both corporate and private clients to expanded investment opportunities. Customers appreciate our efforts, as evidenced by our highest customer satisfaction and reputation scores in five years," says Vytautas Sinius, CEO.

Šiaulių Bankas Group earned an unaudited net profit of €43.0 million in the first half of 2024, which is 4% more than in the corresponding period of 2023. Operating profit before impairment and income tax amounted to €57.1 million, a 5% decrease compared to operating profit of €60.1 million in the first half of 2023.

Net interest income grew by 7% compared to the first half of 2023 to €80.6 million, while net fee and commission income grew by 41% to €13.7 million.

All loan book segments grew in the first half of the year, with the total loan portfolio increasing by 9% (€256 million) to €3.19 billion (growth of 5% or €143 million in Q2). New credit agreements worth €791 million were signed during the half-year, 7% more than in the corresponding period of 2023 (€740 million).

The quality of the loan portfolio remains strong with provisions of €3.9 million made in the first half of the year due to the revision of the parameters in line with updated macroeconomic forecasts, compared to provisions of €5.3 million in the first half of 2023. The cost of risk (CoR) of the loan portfolio for H1 2024 was 0.29% (0.36% in H1 2023).

The deposit portfolio grew by 5% (€162 million) over the half-year period and exceeded €3.34 billion at the end of June (growth of 2% or €80 million in Q2). The share of time deposits continued to increase. At the end of June, term deposits exceeded 53% of the total portfolio.

The capital structure of the bank was strengthened by the issue of subordinated bonds of €25 million in the second quarter of this year with oversubscription of almost 4 times. Investor confidence is reinforced by the Bank's Baa1 credit rating, the highest in its history, and its stable outlook, as confirmed by Moody's.

Šiaulių Bankas maintained a high level of operational efficiency, in line with the target level. The group's cost-to-income ratio reaching 45.4%¹ (35.0%¹ in the first half of 2023). Cost-to-income ratio was affected by the €2.2 million one-off adjustment of windfall tax for 2023, which was added to other operating expenses in the second quarter of the year.

Return on equity of 16.2% achieved (18.6% in the first half of 2023) and the capital and liquidity position remained strong and prudential ratios were met by a wide margin. The capital adequacy ratio (CAR) stood at 20.0%² and the liquidity coverage ratio (LCR) at 198.9%².

Overview of Business Segments

This year Šiaulių Bankas recorded the highest reputational growth among major banks operating in Lithuania. The bank's reputation index has reached its highest level in the last five years, according to Civitta consultancy which provides nationwide business reputation survey together with its partners. Šiaulių Bankas enjoys strong support from both decision-makers and the general public. According to the survey, the bank is perceived as an organized business with a strong management team and significant contribution to the prosperity of Lithuania.

Corporate Client Segment

The volume of new business financing contracts increased by 5% to €461 million in the first half of this year. A record €253 million of new business financing contracts were concluded in the second quarter alone, 12% more than in the same period in 2023. The total corporate lending portfolio grew by 10% (€145 million) over the half-year to reach €1.7 billion.

The €200 million SB Modernization Fund 2, set up to finance the renovation of apartment buildings, which started its operations this year, concluded new modernization contracts worth €123 million in the second quarter of this year.

Private Client Segment

Demand for mortgages is showing a positive trend in the market, with new contract volumes increasing by 15% to €111 million in the first half of this year. The bank's total housing loan portfolio grew by 9% (€69 million) to over €0.8 billion.

Consumer finance is also active, with the volume of new contracts increasing by 12% to €126 million in the first half of the year. The total consumer loan portfolio grew by 15% (€43 million) to over €0.3 billion.

Investment Client Segment

Population in Lithuania is increasingly focusing on investing: the value of investments held in the bank amounted to €1.9 billion at the end of June, 10% higher than at the end of the first half of 2023. Debt capital markets (DCM) services surged, with the bank organizing €92 million in 15 corporate bond issues in Q2.

Assets under management by SB Asset Management exceeded EUR 1.32 billion at the end of the second quarter of 2024 and grew by EUR 57 million in the Q2 of this year alone. Most of the gain was driven by the return on investments of the funds under management, which generated a profit of €35 million for clients. Tier II pension funds generated 2.8% return in the second quarter of this year and have maintained a very high average annual return rate of 10.1% in the last five years since the start of the pension reform of 2019.

SB Asset Management launched the third alternative investment fund in its series, SB Alternative Investment Fund III, with initial investments made in June. Unlike previous funds, this open-ended fund allows investors to both contribute and withdraw capital throughout its lifecycle.

Šiaulių Bankas has started offering its clients convenient access to SB Asset Management funds through its securities trading platform. Clients can now buy and sell fund units without additional fees or minimum investment amounts, streamlining the investment process.

¹ eliminating the impact of the client portfolio if SB draudimas
² preliminary data
³ includes Asset Management and Modernisation Funds AuM

Šiaulių Bankas invites shareholders, investors, analysts and all interested parties to a webinar presentation of the financial results and highlights for the second quarter of 2024. The webinar will start on 29 July 2024 at 16.00 (EEST). The webinar will be held in English. Please register here.

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Additional information:
Donatas Savickas, CFO
donatas.savickas@sb.lt

Attachment

• 2024-2Q EN

Siauliu Bankas Ab (LSE:0KC0)
Gráfica de Acción Histórica
De Oct 2024 a Nov 2024

Siauliu Bankas Ab (LSE:0KC0)
Gráfica de Acción Histórica
De Nov 2023 a Nov 2024