Šiaulių Bankas Group results for 1H 2021 - Seite 2

At the end of the H1, the cost-to-income ratio of the Group (excluding the impact from the investment result of the SB Draudimas assets under unit-linked contracts) was 40.4% (39.0% in the corresponding period of the previous year) and the return on equity was 15.4% (13.2% in H1 2020). Capital and liquidity positions remain sound and prudential regulations are met with the solid buffers – the liquidity coverage ratio (LCR) is 234%* and the capital adequacy ratio (CAR) is 18.6%*.

Overview of Business Segments

Financing of Business and Private Customers

With the further increase in economic certainty and the ease of quarantine restrictions, both private and business clients were actively financed. New credit agreements worth over EUR 600 million were signed in the first half of the year, i.e. 140% more than in the same period last year. The total loan and leasing portfolio of the Group increased by 5% (EUR 93 million) during the quarter and grew by 8% (EUR 149 million) since the beginning of the year (up to EUR 1.91 billion).

Almost three times more business financing loans (worth EUR 351 million) were signed compared to the first half of the previous year. The strong growth in the volume of new agreements observed for several quarters in a row will contribute to higher interest income in the upcoming quarters. The business financing portfolio grew by 3% (EUR 36 million) during the quarter and 6% (EUR 66 million) since the beginning of the year and reached EUR 1.12 billion.

In terms of sales volumes, both the second quarter and the entire half-year were again at a record high in the residential mortgage loan sector. New credit agreements worth EUR 96 million (132% more than in H1 2020) were signed. The number of applications continues to grow (35% more compared to Q1), which gives reasonable hope that sales volumes will remain stable. The mortgage loan portfolio increased by 12% (EUR 40 million) and by 24% (EUR 70 million) since the beginning of the year and reached EUR 367 million.

Fewer restrictions on customer service in the physical places and increased volumes of consumer credits issued have contributed to the growth of the consumer financing portfolio; over the quarter, the portfolio grew by 3% and reached EUR 161 million. In the first half of the year, consumer financing agreements worth EUR 59 million were signed.

The demand for the financing of energy-efficient projects remains high – in the first half of the year, multi-apartment modernisation agreements worth EUR 60 million (113% more than last year) were signed; in total, the Bank has already signed renovation agreements for EUR 640 million. The Bank has received more interest than expected from investors wishing to contribute funds to the new EUR 200 million multi-apartment house renovation fund. It is planned to complete negotiations with investors and establish the fund at the end of 2021 or the beginning of next year.