On 11 February 2013 the commercial bank Šiaulių
bankas (Šiaulių bankas AB) published unaudited financial statements for 4Q
2012. (One euro equaled 3.4528
Lithuanian litas (LTL) on 31 Dec. 2012 .)
The bank registered
a net profit for the year of 14.9 mln LTL (€ 4.31 mln), an increase of 16.1%
over the result of 12.8 mln LTL for 2011 and a considerable improvement over
the net loss of 24.2 mln LTL registered in 2010. Total assets at the end of 2012 were 2,931.5
mln LTL (€ 849.0 mln), up 7.5% over the previous year.
Total deposits
increased 14.3% during the year, ending the year at 2,165.9 mln LTL (€ 627.3
mln). But the additional deposits did
not end up in loans, since in 2012 the bank’s loan portfolio declined 0.6% to 2,057.7
mln LTL. Instead the funds ended up in
securities, with holdings of trading securities more than tripling in 2012 to
end the year at 51.2 mln LTL, and investment securities surging by 42% from
335.3 mln LTL to 478.4 mln LTL. Among
investment securities, held-to-maturity securities decreased 10.0% during the
year, from 303.3 mln LTL to 273.0 mln LTL, while the level of
available-for-sale securities exploded from 32.1 mln LTL to 205.4 mln LTL,
presumably indicating a reclassification by the bank of some securities from
“held to maturity” to “available for sale” status.
The largest
shareholders of Šiaulių bankas are as follows:
European Bank for Reconstruction and Development (EBRD): 19.57%
Mr. Gintaras Kateiva (member of the bank’s Supervisory Council): 6.24%
Clients of the Swedish bank Skandinaviska Enskilda Banken AB (publ):
5.53%
AB „ Eglės“ sanatorija: 5.37%
Mr. Algirdas Butkus (chairman of the bank’s Board): 4.39%
Sources:
2012
m. Šiaulių banko pelnas augo (2013-02-11)
2011
metų IV ketvirčių tarpinė AB Šiaulių banko ir banko grupės finansinė
atskaitomybė (2012-02-20 15:27:57 )
In other news, on
11 February a mission from the International Monetary Fund concluded a visit to
Lithuania Vilnius
Strengthening
the financial sector to support growth
Overall,
the banking system is profitable, liquid, and well-capitalized, but continued
vigilance is needed. The system-wide
capital adequacy ratio is nearly 15 percent and liquid assets are about 25
percent of total assets. However, non-performing loans (NPLs)—while
declining—remain high and profitability is falling. The intervention of Snoras
bank removed a major threat to financial stability, and the recent steps to
rapidly address problems in two troubled credit unions underscore the
importance of effective financial sector supervision. In this context, the Bank
of Lithuania’s (BoL) stepped-up onsite inspections, strict stress testing, and
careful monitoring of banks’ loan loss provisions are essential for the
continued health of the banking system. The BoL should continue to safeguard
financial stability, including by requiring banks to raise capital as needed.
Ongoing efforts to strengthen the supervision of credit institutions are
welcome.
The
financial sector has an essential role to play in supporting a robust and
sustainable recovery. While Lithuania
has so far been able to continue its economic recovery despite negative private
sector credit growth for nearly four years, it is important that credit is not
unduly constrained going forward. The weak economic environment and uncertainty
about growth prospects both in Lithuania and abroad have no doubt hampered
demand for credit by firms and households. At the same time, lending standards
have been tight, partly reflecting continued risk aversion of the part of
banks, lingering NPLs, and scarcer parent bank funding. NPLs appear to take a
longer time to work out in Lithuania than in some regional peers, and a review
of obstacles to timely NPL resolution should be considered. In this regard, the
new household insolvency regime and recent proposals to modify the corporate
insolvency regime are welcome.
Source:
Mark Pleas
[contact]
