On 17 May the
commercial bank Šiaulių Bankas (AB
Šiaulių bankas), the fourth largest of Lithuania
Šiaulių Bankas’s non-consolidated
total assets and net profit/loss for the most recent 6 quarters
Quarter
|
Total assets at end of quarter (LTL)
|
Net profit for quarter (LTL)
|
1Q 2013
|
5,422,443,000
|
3,415,000
|
4Q 2012
|
2,931,466,000
|
3,863,000
|
3Q 2012
|
2,853,258,000
|
3,986,000
|
2Q 2012
|
2,792,161,000
|
3,718,000
|
1Q 2012
|
2,756,654,000
|
3,305,000
|
4Q 2011
|
2,731,566,000
|
2,083,000
|
The
earnings result was in line with profits obtained in previous quarters, but a
glance at the bank’s level of total assets shows that something significant
happened in 1Q 2013. As noted previously
in this column, on 12 February the country’s central bank, the Bank of
Lithuania (Lietuvos bankas), revoked the license of the commercial bank
Ūkio Bankas (AB Ūkio bankas), and before the end of the month Šiaulių
Bankas had signed an agreement with the deposit insurance fund (Valstybės
įmonė “Indėlių ir investicijų draudimas”) and the temporary administrator
for Ūkio Bankas according to which certain assets and liabilities of Ūkio
Bankas would be transferred to Šiaulių Bankas.
The
management of Šiaulių Bankas gives details on the transfer of assets and
liabilities in its interim financial report for 1Q 2013 published on 17 May:
On 23 February 2013, an
agreement was signed between Ūkio Bankas AB registered in Lithuania (legal
entity‘s code 112020136, hereinafter Ūkio Bankas), Šiaulių Bankas AB (legal
entity‘s code 112025254) and a state-owned enterprise Indėlių ir Investicijų
Draudimas (legal entity‘s code 110069451, hereinafter Deposit Insurance Fund)
on the transfer of assets, rights, transactions and liabilities of Ūkio Bankas,
based on which a part of assets, rights, transactions and liabilities of Ūkio
Bankas was transferred to Šiaulių Bankas. Under the agreement, Šiaulių Bankas
takes over LTL 1.9bn assets (rights) and LTL 2.7bn liabilities from Ūkio
Bankas. The difference of LTL 800m between the liabilities and the assets taken
over will be covered by the Deposit Insurance Fund. The assets of Ūkio Bankas
transferred to Šiaulių Bankas are based on a preliminary valuation carried out
by an audit company, the results of which have been approved by the Board of the
Bank of Lithuania. To have an accurate estimation of assets and liabilities
transferred, a more detailed final valuation of assets and liabilities
transferred will be carried out within 3 months after the date of signing the
agreement. If the results of the final valuation show that the value of the
assets transferred is higher than that established during the preliminary valuation,
Šiaulių Bankas will refund to Ūkio Bankas the difference between the values of
the assets established during the preliminary and the final valuations. If the
results of the final valuation show that the value of the assets transferred is
lower than that established during the preliminary valuation, IDF will pay to
Šiaulių Bankas the difference between the values of the assets established
during the preliminary and the final valuations (the total amount payable by
IDF cannot exceed LTL 800m). In addition, the agreement provides for the
possibility for the creditors of Ūkio Bankas to sell four different portfolios
of assets within 9 months after the date of signing the agreement: (a)
portfolio of real estate transferred into the ownership of Šiaulių Bankas, (b)
portfolio of higher risk (potentially lower-quality performance) loan groups,
(c) portfolio of subsidiaries of Ūkio Bankas engaged in real estate development
activities and (d) portfolio of shares of subsidiaries of Ūkio Bankas engaged
in other activities – Ūkio Banko Lizingas UAB and life insurance company Bonum
Publicum UAB. Another very important clause in the agreement says that in the
event the value of the assets transferred to Šiauliai Bankas increases after 2
years, Šiaulių Bankas will have to refund a part of such increase in the value
of the assets to the creditors of Ūkio Bankas. This is applicable to lower risk
(potentially higher-quality performance) loan groups and collateral real estate
repossessed and sold. In this case the Bank bears no risk, because portfolio of
the assets would be fully exchanged in another form of asset – cash, also
covering all related administration, financing and other expenses which are
foreseen in the agreement.
The transactions had not been
fully completed as of 31 March 2013 as according to the agreement dated 20
April 2013 the remaining part of assets and liabilities were transferred at
their preliminary values. Sigining the supplement of the agreement resulted in
one more assets‘ option consisting of the loans exposed to increased risk and
assets foreclosed under recovery loans into the bank‘s balance sheet.
In related news, on
16 May the country’s Department of Enterprise Bankruptcy Management (Įmonių
bankroto valdymo departamentas) published an announcement that a firm
closely associated with Ūkio Bankas and its owner Vladimir Romanov – the firm ŪBIG
(UAB “Ūkio banko investicinė grupė”) – had formally declared itself
unable to pay its creditors. Ūkio Bankas
had granted considerable loans to ŪBIG, and ŪBIG had in turn granted
considerable loans to one of its better-known subsidiaries, Heart of Midlothian
Plc, owner of the soccer team “Heart of Midlothian Football Club” (“Hearts”) of
Edinburgh, Scotland, but also owner of the alumina plant “Birač” («Бирач» а.д.) in Zvornik,
Bosnia, and the commercial bank Balkan Investment Bank («Балкан
Инвестмент Банк» а.д.) in Banja Luka , Bosnia
In earlier news, on
28 March a general meeting of Šiaulių
Bankas’s
shareholders approved a proposal to use the bank’s own funds to increase the
bank’s authorized capital by LTL 15,142,467 (€ 4,385,562) through the issuing
of 15,142,467 new shares of common stock, to be distributed free of charge to
existing shareholders on a proportional basis.
Principal sources:
Šiaulių
Bankas – Financial statements in Lithuanian: AB
Šiaulių banko ir banko grupės finansinės ataskaitos
Šiaulių
Bankas – 1Q 2013 financial statements in English: Interim
financial report Šiaulių bankas AB and the bank’s Group for 1 quarter 2013
(2013-05-17 08:37:25)
Insolvency
declaration by ŪBIG: Įmonių,
negalinčių arba neketinančių vykdyti įsipareigojimus, sąrašas
Šiaulių
Bankas – General meeting of shareholders approves capital increase: Šiaulių
bankas iš banko lėšų didina įstatinį kapitalą 15 mln. litų (2013-03-28)
In earlier news, on
2 May the Bank of Lithuania (Lietuvos
bankas) announced that it would for the first time begin publishing financial
data for individual banks. Until now information
for each of the country’s 7 commercial banks has only been brought together in
one place on the website of the Association of Lithuanian Banks (Lietuvos
bankų asociacija - LBA). The central
bank will be publishing data on individual banks on a quarterly basis, based on
mandatory supervisory filings with the central bank. The central bank will publish quarterly data
within 35 days after the end of a quarter, and annual data by 15 May of the
year following. Individual data will be
given for each bank that is licensed by the Bank of Lithuania, but data for
foreign-based branch banks operating in Lithuania
The central bank
created its first such data files – for yearend-2012 and for 1Q 2013 – on 6
May, and published them on its website exclusively in Lithuanian. On the basis of these first examples it is
possible to compare the quarterly files published by the Association of
Lithuanian Banks with those published by the central bank:
|
|
Association of
Lithuanian Banks
|
Bank of
|
|
Banks for which
individual data are provided:
|
„Citadele“ bankas
Danske Bank –
Lithuanian branch
DNB bankas
Medicinos bankas
Nordea Bank
SEB bankas
Šiaulių bankas
Swedbank
UniCredit Bank –
Lithuanian branch
|
„Citadele“ bankas
DNB bankas
bankas „FINASTA“
Medicinos bankas
SEB bankas
Šiaulių bankas
Swedbank
|
|
Data provided:
|
Assets – broken
down into 27 categories
Liabilities –
broken down into 24 categories
Total equity and
minority interest
Issued capital
Off-balance sheet
items – 2 categories
Revenues – broken
down into 14 categories
Expenses – broken
down into 12 categories
Profit – broken
down into 5 categories
Additional
information on number of branches, employees, payment cards, ATMs, POS
terminals, active retail clients, active commercial clients, registered
internet banking users, registered SMS banking users, value of investment
funds managed, number of fund owners, as well as detailed data on factoring
|
Assets – broken
down into 11 categories
Liabilities –
broken down into 9 categories
Total equity
Current year
profit (loss)
ROA, ROE, capital
adequacy ratio, liquidity ratio, maximum loan amount to a single borrower,
maximum loan amount to parent company, maximum open position in currency and
precious metals, maximum open position in a single currency (with currency identified,
e.g., USD, GBP, LVL)
|
Principal sources:
Bank of Lithuania press release: Vartotojams
– daugiau informacijos apie kiekvieną banką ir kiekvieną kredito uniją
(2013-05-02)
Bank of Lithuania data files: Pagrindiniai
bankų veiklos rodikliai
Association of Lithuanian Banks data files: Statistika
Mark Pleas
[contact]
