CEO Meets InvestorsVytautas Sinius03/05/2016. Vilnius
MILESTONES
1992
2005
EBRD becameThe largest shareholder
2010
Šiaulių Bankas entered into
relationship with the EIB and the EIF
2013
Šiaulių Bankas assumed part of
liabilities and assets of Ūkio bankas
2014
Development in leasing and life insurance
markets
HIGHLIGHTS FOR 2015
The Group earned a net profit of EUR 23.8 million. the Bank - EUR 21.2 million
The Group's loan portfolio increased by 17 % (EUR 135 million)
Reorganization of the bank Finasta and brokerage firm Finasta was completed. companies merged with Šiaulių Bankas
The Bank of Lithuania recognized Šiaulių Bankas as Other Systemically Important Institution (O-SII)
Saving and investment services. Platform for trading in securities in the Baltic markets (to be started on 12 May 2016)
The Banker and Global Finance awarded Šiaulių Bankas as the best bank in Lithuania
2015
SHAREHOLDERS
18.24 % 21.17 % 39.12 % 21.47 %
3 667 Shareholders
The European Bank for
Reconstruction and Development
Other parties of the Shareholders Agreement (17)
Other legal entities (170)
Other private individuals (3 479)
Share capital exceeds EUR 90 million
BANKING SECTOR
Market share Net profit (mEUR)
16.8
16.4
20.1
11.8
65.3
108.0
11.9
19.3
21.4
23.8
62.1
85.0
DANSKE
DNB
NORDEA
ŠIAULIŲ BANKAS
SEB
SWEDBANK
2015
2014
Swedbank
Loans24.8
Deposits30.9
Citadele bankas
Loans1.5
Deposits1.9
SEB bankas AB
Loans30.1
Deposits27.3
DNB bankas AB
Loans18.1
Deposits13.4 Šiaulių Bankas
Loans5.7
Deposits8.3
Medicinos bankas
Loans0.9
Deposits1.2
Increasing bank awareness
Mission We come from the same roots. By providing financial services. we increase the well-being of Lithuania’s people and businesses. and we grow together with them.
Values Trust. Professionalism. Respect. Responsibility
Exclusivity We are fast. simple. flexible and professional
Active marketing strategy related to the brand strengthening and re-branding had positive results:
remarkably increased brand awareness -the bank has become easily recognized. well-known and recommended
increased customers' trust
mass media refers to the bank as the fastest growing bank in Lithuania
according to the assessments of the Lithuanian market payers made in 2016 the bank is one of the most promisingcompanies on the Baltic Stock Exchange with great potential.
GROUP STRUCTURE
Finance lease and consumer credits
SB Leasing
Life insurance
BONUM PUBLICUM
Investment management activities
Investicijų valdymas
Real estate management activities
Turto fondas. Minera. SBTF
Development of residential apartment area
Pavasaris
Participants of Housing Renovation
projects
Small and new
businesses. farmers
working people of 40+
and their family
members. seniors
Municiplaities and their
undertakings
SME
CUSTOMER SEGMENTS
Investing. successful
career people
APPs
861Employees
On-linebankingsystem
216ATMs
70Branches
Contactcenter
CUSTOMER SEGMENTS
CUSTOMER SERVICE QUALITY
Šiaulių Bankas 90.3% (sector average 87.6%)
3rd place among banks (2014 – 7)
The biggest progress among the banks in Lithuania (5.5 %)
Medicinos bankas DNB Nordea Swedbank Šiaulių bankas SEB Citadele
72.7 %
91.8 %88.3 %
83.8% 84.8 %
92.7 %89.3 %
79.8 %84.5 %
86.9% 87.1 % 90.3 % 91.1 % 93.8 %
2015
2014
According to the research of customer service quality in banking sector conducted by Dive Lietuva (Slapto
pirkėjo tyrimai UAB) in November – December 2015:
Sector average
BRAND AWARENESS
According to the research of Synopticom conducted on 23 December 2015 :
Brand awareness of Šiaulių Bankas increased from 58% to 62%
Citadele Medicinosbankas
Danske Bank Nordea Šiaulių bankas DNB SEB Swedbank
34 %41 %
28 %
42 %
62 %
76 %
89 % 91 %
December 2015
May 2015
December 2014
CUSTOMER RECOGNITION
Consistently growing number of customers. In 2015:
The number of corporate clients increased by 9 per cent -up to 26 thou.
The number of private clients increased by 7 per cent - up to 361 thou.
Bank's accessibility via various channels
Wide range of services.
Their suitability to customers.
High quality of servicing
Increasing bank awareness
CAPITAL REQUIREMENT
Capital buffers:
Countercyclical capital buffer: rate currently applied in Lithuania is 0%; Capital conservation buffer: rate of 2.5% is applied; Additional capital requirement of 2.0% (this requirement is subject to annual review in the process of
supervisory review and evaluation (SREP)); On 17/12/2015 the Bank of Lithuania recognized Šiaulių Bankas O-SII – an extra buffer of 0.5% will apply
to the Bank starting from 31 December 2016.
* According to preliminary data.
12.7812.15 12.18 11.94
12.28 11.99
14.38 14.59
15.65*
7
8
9
10
11
12
13
14
15
16
17
31/03/2014 30/06/2014 30/09/2014 31/12/2014 31/03/2015 30/06/2015 30/09/2015 31/12/2015 31/03/2016
%
Bank Group Minimal requirement
LOAN PORTFOLIO
769 773796
774 775
832
891909
927
3,39%
0,00%
0,50%
1,00%
1,50%
2,00%
2,50%
3,00%
3,50%
4,00%
400
450
500
550
600
650
700
750
800
850
900
950
1 000
1 050
1 100
2014-03-31 2014-06-30 2014-09-30 2014-12-31 31/03/2015 30/06/2015 30/09/2015 31/12/2015 31/03/2016
mEUR
Loans Yield on loans
EUR -17m
(-2%)
EUR +135m
(+17%)
EUR +17m
(+2%)
LOAN PORTFOLIO
Agriculture;8.9%
Manufacturing;12.1 % Construction;
6.0%
Road construction; 2.2%
Trade; 10.6%
Transport;3.6%
Hotels and restaurants;
2.8%
Financial;1.0%
Real estate;11.5%Public administration;
13.3%
Health and social work;3.6%
Individuals;11.6%
Other;12.8%
LOAN PORTFOLIO
NPL impaired+not impaired but past due more than 60 days
15.13 15.1313.46
11.39 11.219.99
9.118.63 8.62 8.82
16.60 16.70 15.70
13.3012.92 12.25
11.5910.64 10.19 10.33
31/13/2013 31/14/2014 30/14/2014 30/14/2014 31/14/2014 31/15/2015 30/15/2015 30/15/2015 31/15/2015 31/16/2016
Bank Group
LIABILITIES STRUCTURE
1 3251 340
1 359
1 418 1 4141 400
1 4351 445
1 436
0,81%
0,00%
0,50%
1,00%
1,50%
2,00%
2,50%
1 250
1 275
1 300
1 325
1 350
1 375
1 400
1 425
1 450
2014-03-31 2014-06-30 2014-09-30 2014-12-31 31/03/2015 30/06/2015 30/09/2015 31/12/2015 31/03/2016
mEUR
Deposits Costs of deposits, incl. insurance
EUR +104m
(+8%)
EUR +21m
(+1%)
EUR -8m
(-1%)
LIABILITIES STRUCTURE
Other liabilities3 %
Equity9 %
Due to banksand financial institutions
4 %
Demanddeposits
28 %
Term depositsof corporate
3 %
Term depositsof individuals
53 %
FEE AND COMMISSION
1 100
2 429
4 210
6 505
1 216
3 201
5 657
8 039
2 229
201403
201406
201409
201412
201503
201506
201509
201512
201603
Net fee and commission income (kEUR) Fee and commission income structure
for administration of loans of third parties (housing
renovation)34 %
for settlement services
24 %
for cash operations
15 % for payment administration
9 %
for guarantees. letters of credit.
documentary collection…
for services related to
securities…
Other9 %
Šiaulių Bankas is a leading player with 60% market share in housing renovation programme in
Lithuania
Under the multi-apartment renovation programme decisions made to 1 243 units (EUR
303m), out of which 865 units (EUR 193m) already signed
Renovation
INCOME & EXPENSES CHANGES (2014-2015)
Income. % Cost. %
65
11 11 13
72
12
610
Net interestincome
Net fee andcommission
income
Net tradingincome
Otherincome
58
3
57
6
Staff Marketing
20152014
Other expenses changed
insignificantly
5 %
7 %
1 %
3 %
1 %
3 %
PROFIT
5,363
11,773
23,819
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
18,0
20,0
22,0
24,0
26,0
01/03/2013 01/07/2013 01/11/2013 01/03/2014 01/07/2014 01/11/2014 01/03/2015 01/07/2015 01/11/2015
mEUR
+41 %
+120 %
+102 %
PROFITABILITY
52.7
38.7 38.7
62.1
50.6 52.2
2013 2014 2015
0.2
0.7
1.3
0.3
0.7
1.4
2013 2014 2015
3.4
10.4
17.1
5.8
11.5
19.0
2013 2014 2015
ROAA % ROAE % Cost/ Income. %
Bank Group
2016 – YEAR OF CONSOLIDATION
After active previous years’ development consolidating new companies, activity optimization processes are awaiting this year.
The Bank will continue to operate in the low interest rate environment. stable net interest margin will be maintained - downward pressure on loan interest rates and debt securities yield will be balanced by lower costs of term deposits.
Higher income from operations with securities and investment products is expected.
Rapid growth of the importance of technology in the Bank's activities will result in increased focus on the IT risk management.
After significant impairment losses from the loan portfolio incurred in 2014-2015, lower impairment losses are expected.
No capital increases by additional contributions are included in the plan; the major portion of the profits earned will be retained to strengthen the capital base.
BEGINNING OF 2016 - A SUCCESSFUL START
Plans set out for 2016 are being fulfilled:
active provision of financing services to private and corporate customers (especially to SMEs)
active participation in multi-apartment housing modernization programme gaining speed with investment service options to be offered to private
customers
An outcome of the continues performance is a splendid result of Q1 2016:
The Group earned 17.7 million euros, the Bank - 20.7 million euros of net profit
According to the information published by the commercial banks operating in Lithuania for Q1 2016, Šiaulių Bakas is among the leaders by earned profit compared to the bigger market players.
SHARE PRICE
2012 2013 2014 2015 2016/04/26
Turnover, EUR mln 54.20 66.50 71.80 93.70 115.10
Turnover. mln. Eur 2.80 5.50 8.10 12.70 5.03
Market value/ Book value 0.60 0.71 0.67 0.68 0.74
Share dividends. % 6.45 8.00 8.60 20.00
Cash dividends. % 0.50 - 0.25 0.69
EUR
0.207
0,306
0,160
0,180
0,200
0,220
0,240
0,260
0,280
0,300
0,320
01/01/2015
01/02/2015
01/03/2015
01/04/2015
01/05/2015
01/06/2015
01/07/2015
01/08/2015
01/09/2015
01/10/2015
01/11/2015
01/12/2015
01/01/2016
01/02/2016
01/03/2016
01/04/2016
SAB OMXBBGI
+22 %+23 %
Thank you