Šiaulių Bankas Group results for 3Q 2020

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

• Šiaulių Bankas Group earned EUR 34.2 million of unaudited net profit during three quarters of 2020
• Due to active household lending activities, housing and consumer finance portfolio grew by 6% in 3Q and amounted to EUR 431 million
• In the first 9 months of this year, more than EUR 200 million of new business loan agreements were signed
• Updated digital services - on-line banking and mobile application - were introduced to clients

Šiaulių Bankas Group earned EUR 34.2 million of unaudited net profit during three quarters of this year (EUR 40.6 million at the same time last year). Operating profit before impairment losses and income tax for the nine months of this year amounted to EUR 51.3 million, which is by 2% less than in the corresponding period last year.

Net interest income increased by 8% compared to the same period in 2019 and amounted to EUR 56.6 million. Net fee and commission income for the three quarters of this year was EUR 12 million, which is by 8% less than in the first three quarters of last year.

Mainly due to negative country’s macroeconomic outlook for this year, additional provisions of EUR 0.8 million were recognised for possible impairment losses. Provisions for the three quarters amount to EUR 9.1 million, compared to EUR 4.9 million for the first nine months of last year. At the end of 3Q, the cost of risk ratio (CoR) stood at 0.7% (compared to 0.4% at the end of 3Q last year).

The operating efficiency of the Group remains high - the cost / income ratio at the end of 3Q was less than 38.8% (39.9% in the corresponding period of the previous year) and the return on equity (ROE) was 13.9% (19.1% at the end of 3Q last year).

The capital and liquidity positions remain sound and prudential requirements are met with a large reserve - the liquidation coverage ratio (LCR) increased from 223% to 309%* during the third quarter and the capital adequacy ratio (CAR) is at 18.7%*.

Overview of Business Segments

Business and Private Clients Financing

As household expectations and consumption continued increasing, we recorded a strong demand for household lending - the mortgage and consumer financing portfolio grew by 6% to EUR 431 million over the quarter (increased by 86% compared to the end of 3Q last year). The mortgage portfolio alone grew by 8% to EUR 267 million during the quarter.