Šiaulių Bankas Group results for 1H 2021

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

• In the first half of the year, Šiaulių Bankas Group earned EUR 27.9 million of unaudited net profit
• The volume of financing for both business and private clients is growing – new credit agreements with the total amount exceeding EUR 600 million have been signed since the beginning of the year, and the loan portfolio has grown by 8% up to EUR 1.91 billion
• Becoming an increasingly important player in the housing loan market – a record amount of new credit agreements is signed through the Bank in the Q2
• The ECB’s comprehensive assessment results - the capital base of Šiaulių Bankas is sufficient

“While facing high economic activity and consumer consumption, we continue to work actively on the Bank’s strategic goals and directions - financing is provided to more and more business and private customers, with mortgage loan financing reaching record high sales volumes in Q2. The sustainability of the activities carried out by the Bank is further confirmed by the outcome of the ECB's comprehensive assessment - even in the particularly severe scenarios, the capital base of Šiaulių Bankas was sufficient and exceeded the set thresholds. Although pandemic challenges are still in place, we managed to adapt to the changing environment and serve our clients as promised - being closer to them and their needs” said Vytautas Sinius, CEO of Šiaulių Bankas.

In the first half of this year, Šiaulių Bankas Group earned EUR 27.9 million of unaudited net profit (34% more than a year ago, when the profit amounted to EUR 20.9 million). Profit for the second quarter was EUR 15.5 million and increased by 24% compared to the profit of EUR 12.5 million for the same period last year.

The operating revenue grew in the H1 of the year compared to the same period of 2020 - net interest income increased by 1% and reached EUR 38.0 million, net fee and commission income increased by 10% and reached EUR 8.4 million.

Provisions for possible impairment losses amounted to EUR 8.3 million in the H1 of last year. As the adverse economic forecast scenario did not materialise, the ECB’s comprehensive assessment process has been successfully completed, the majority of loans deferred due to COVID-19 reached deferral period expiration and no signs of significant deterioration of the loan portfolio were observed, provisions for possible impairment losses of EUR 0.9 million were made in the H1 of this year. At the end of the H1, the cost of risk ratio (CoR) was 0.2% (1.0% in the H1 of 2020).