- Profit. Šiaulių
Bankas Group achieved a record net profit ofEUR 75.4 million last year. - Dividends. Šiaulių
Bankas Group intends to propose a distribution of nearly 43% of its 2023 net profit, orEUR 0.0485 dividend per share. - Portfolio. Loan portfolio grew steadily by 11% year-on-year to over
EUR 2.9 billion . - Deposits. Client deposits grew by 14% year-on-year to reach almost
EUR 3.2 billion by the end of 2023. - Transaction. Šiaulių Bankas and Invalda INVL successfully completed the merger of their retail businesses.
- Strategy. Šiaulių Bankas has announced its 2024-2029 strategy, aspiring to become the best bank in
Lithuania by 2029.
“In 2023, we achieved successful growth by strengthening our retail client business through a successful merger with INVL Retail and by sustaining steady levels of financing. To significantly reduce our environmental impact, we have joined the international SBTi initiative and committed to becoming a climate-neutral bank by 2050.
Last year established a robust groundwork for executing Šiaulių Bankas' updated 2024–2029 strategy, propelling us toward our aspiration of becoming the best bank in Lithuania” says
Šiaulių
The net profit for Q4 2023 was
The bank’s revenue from operating activities grew rapidly throughout the year. Compared to 2022, net interest income grew by 47% to
The revision of the parameters for the calculation of provisions in the light of updated macroeconomic forecasts resulted in provisions of
Šiaulių Bankas maintained high operational efficiency – the cost-to-income ratio was 41.7%1 (43.4% in 20221) and return on equity – 15.5% (16.1% in 2022). Capital and liquidity position remains sound and regulatory requirements are met with the solid buffers – the liquidity coverage ratio (LCR) was 217%, and the capital adequacy ratio (CAR) was 20.7%2.
The Management Board of the Bank, in view of the successful year, the strong capital position and the foreseeable operating environment, intends to consider and submit for approval to the Bank’s Ordinary General Meeting of Shareholders a decision to pay a dividend of almost 43% of the net profit for 2023, i.e.,
Income Statement (€'m) | FY2023 | FY2022 | % ∆ | Q4'2023 | Q4'2022 | % ∆ |
Net Interest Income | 156.9 | 106.8 | 47% | 40.8 | 31.7 | 29% |
20.3 | 18.7 | 8% | 5.7 | 4.7 | 21% | |
Other | 21.1 | 20.8 | 2% | 7.5 | 11.0 | (32%) |
Total Revenue | 198.2 | 146.3 | 35% | 53.9 | 47.3 | 14% |
Salaries and Related Expenses | (36.2) | (30.7) | 18% | (10.7) | (8.1) | 33% |
Other Operating Expenses | (51.0) | (30.2) | 69% | (25.4) | (16.5) | 54% |
Total Operating Expenses | (87.2) | (61.0) | 43% | (36.1) | (24.6) | 47% |
Operating profit | 111.0 | 85.3 | 30% | 17.9 | 22.7 | (21%) |
Allowance for Impairment Losses | (15.2) | (4.9) | 208% | (6.8) | (2.5) | 169% |
Income Tax Expense | (20.4) | (12.9) | 58% | (1.4) | (2.6) | (49%) |
Net Profit | 75.4 | 67.5 | 12% | 9.7 | 17.6 | (45%) |
Balance Sheet Metrics (€'m) | % ∆ | |||||
Total Loans | 2,932 | 2,634 | 11% | |||
Total Assets | 4,809 | 4,183 | 15% | |||
Total Deposits | 3,178 | 2,799 | 14% | |||
Total Equity | 543 | 443 | 23% | |||
Assets under Management3 | 1,556.1 | 1,197.7 | 30% | |||
Assets under Custody | 1,943.2 | 839.8 | 131% | |||
Key Ratios | FY2023 | FY2022 | ∆ | |||
NIM | 4.0% | 3.1% | +0.9pp | |||
C/I Ratio1 | 41.7% | 43.4% | -1.7pp | |||
RoE | 15.5% | 16.1% | -0.7pp | |||
CoR | 0.5% | 0.2% | +0.3pp | |||
CAR2 | 20.7% | 16.1% | +4.6pp |
Corporate and Private Client Financing
All financing segments experienced growth in 2023. The loan portfolio increased by 1% in Q4 2023 and by 11% year-on-year to over
Business lending volumes remained stable at the end of the year, with new business loan agreements signed for
Despite the increase in base interest rates and continued uncertainty, Šiaulių Bankas expanded its mortgage financing portfolio, which increased by 3% in the quarter and by 17% since the beginning of the year, reaching almost
Slower domestic consumption and a more cautious attitude of the population towards borrowing for consumption and purchases led to decelerated portfolio growth by the end of the year. The consumer financing portfolio expanded by 2% in Q4 2023 and by 29% for the whole of 2023, reaching almost
The bank continues to play an active role in financing energy efficiency projects, particularly through the renovation of multi-apartment buildings in
As a pioneer of securitisation in
Daily Banking
In Q4 2023, 7,100 new private and business clients started using the bank’s services, and since the beginning of the year, more than 30 thousand have joined the bank. The number of active clients of Šiaulių Bankas at the end of the year exceeded 180 thousand. Following the merger with INVL Retail, the total number of clients of Šiaulių
Throughout 2023, Šiaulių Bankas placed great emphasis on digitisation and new more convenient smart solutions. In response to client needs, the bank has enhanced digital channels as well as services in the
The bank continues to provide the highest quality of customer service. In a mystery shopper survey conducted by Dive Lietuva in 2023, the bank received the maximum score for the quality of customer service, both in person at branches and over the phone.
Saving and Investing
Seeing the increased demand from clients to protect their savings against inflation, we have been offering our clients some of the highest interest rates on term deposits among the major banks in
Šiaulių Bankas asset management company, SB Asset Management, generated over
In the last quarter alone, clients invested over
1 After eliminating the impact of the client portfolio of SB Draudimas
2 Preliminary data
3 SB Asset Management started operations on
Šiaulių Bankas invites shareholders, investors, analysts, and other stakeholders to join the presentation of financial results and current events of 2023 at a webinar scheduled on
Additional information:
donatas.savickas@sb.lt
Attachment
- 2023-4Q EN
© OMX, source