The results of Šiaulių Bankas in 2019 were determined by increasing financing volumes and customer activity - Seite 2

In line with growing income operating efficiency of Šiaulių Bankas Group remains strong - a cost to income ratio of comprised 42.5% at the end of year. Return on equity reached 17.6% and prudential requirements are being met with appropriate breathing room.

At the end of 2019, Šiaulių Bankas issued the first subordinated bonds issue of EUR 20 million. The subordinated bonds were included in Tier 2 capital so that the bank could have more opportunities to grow sustainably and increase its shareholder returns. Also, the bonds are eligible liabilities under the MREL requirements.

Overview of Business Segments

Corporate and Private Customer Financing

The Bank Group's loan and finance lease portfolio growth in 2019 was the fastest in the last few years. Over the year, the portfolio grew by 21% and at the end of December it exceeded EUR 1.6 billion.  In 2019 more than EUR 770 million of new credit agreements were signed, i.e. by 7% more than in 2018.

The volume of the Bank's strategic direction activities - business and consumer financing - increased steadily throughout the year. The value of new business finance agreement reached EUR 540 million during the year and the portfolio grew by 18 %. The portfolio of consumer finance products grew by 41 % and the value of new agreements exceeded EUR 150 million.

In the beginning of 2019, Šiaulių Bankas took active steps in the housing market segment, which ensured rapid growth of the mortgage portfolio - the mortgage loan portfolio doubled during the year and exceeded EUR 100 million.

Daily banking

Increasing number of payments and cash operations, high customer activity in choosing service plans for private and corporate customers resulted in 17 % higher fee and commission income compared to 2018. The number of customers increased by 4 % since the beginning of the year and at the end of December reached 337 thousand with more than 308 thousand of private and 28 thousand of corporate customers. The growth of commission income was also influenced by the growing number of payment cards participating in the Security Programme which increased by 64 % compared to 2018.

Number of the payment card transactions increased by 41% in 2019. The growth of contactless payment transactions, which grew by more than 200%, contributed significantly to that growth. Currently, every other operation at physical payment point is contactless.

From June 2019, Šiaulių Bankas accepts instant payments, which in 2019 accounted for approximately 13% of all received SEPA payments. Currently, the instant payments accounts for around 22% of all SEPA payments received monthly.