Šiaulių Bankas Group Results for the Year 2024
-
Financial targets. Šiaulių Bankas Group demonstrated strong
performance and successfully achieved all its financial targets for
2024, delivering on its guidance
-
Profit. Šiaulių Bankas Group earned a record net profit of
€78.8 million
- Loan
portfolio. The loan portfolio grew by 17% year-on-year to over
€3.4 billion
-
Deposits. The deposit portfolio grew by 12% over the year to
almost €3.6 billion at the end of 2024
- Fee
& commission income. Net fee and commission income grew by
44% year-on-year to over €29 million
-
Dividends. Šiaulių Bankas Group intends to propose a
distribution of 50% of its 2024 net profit, or €0.061 dividend per
share
- Share
buybacks. Will allocate up to 5% of the 2024 net profit for own
share buybacks
-
Rebranding. A rebranding of Šiaulių Bankas will be proposed
for the upcoming shareholders' meeting
“In 2024, we have successfully integrated INVL's
retail business into Šiaulių Bankas Group, updated our long-term
vision and strategy, and initiated a business transformation that
we believe will bring greater value to our customers, shareholders,
and society.
While launching strategic projects such as the
replacement of the core banking platform and rebranding
preparation, we maintained high profitability and service quality,
effectively managing risk and costs.
The successful implementation of our first
international bond issuances and the updated dividend policy
demonstrate our commitment to efficient capital utilization and
delivering high returns to shareholders during the transformation
period," says Vytautas Sinius, CEO of Šiaulių Bankas.
Šiaulių Bankas Group earned an unaudited net
profit of €78.8 million in 2024 which is 5% more than in 2023.
Operating profit before allowance for impairment losses and income
tax amounted to €107.3 million, a 3% decrease compared to operating
profit of €111.0 million in 2023.
Net interest income grew by 2% year-on-year to
€160.2 million, while net fee and commission income grew by 44% to
over €29 million. The latter increased 11% in the last quarter of
2024 alone, compared to Q3 2024.
All loan book segments grew during the year,
with the total loan portfolio increasing by 17% (€503 million) to
€3.43 billion. New credit agreements worth €1.5 billion were signed
during the year, 14% more than in 2023 (€1.3 billion).
The quality of the loan portfolio remains
strong, with provisions of €11.3 million made in 2024, €4 million
less than in 2023. The Cost of Risk (CoR) of the loan portfolio for
year 2024 was 0.35% (0.54% for the 2023).
The deposit portfolio grew by 12% since the
beginning of the year (€383 million) and exceeded €3.5 billion at
the end of the year. The amount of term deposits grew by 22% (€348
million) to over €1.9 billion during the year and their share in
the total deposit portfolio increased by 5 percentage points to
54%.
The bank's capital structure was enhanced by an
additional issue of Tier 1 (AT1) bonds of €50 million in the fourth
quarter. All issuances made in 2024 have significantly strengthened
and diversified the capital base, which allows for continued rapid
growth while ensuring high returns for investors.
The Bank’s Management Board, taking into the
account the updated dividend policy, the bank’s strong performance
in 2024, its robust capital position, and the favourable outlook
for the operating environment, has decided to propose a dividend of
50% of the 2024 net profit (€0.061 per share) for approval at the
Bank’s Annual General Meeting.
Šiaulių Bankas has repurchased own shares worth
€10.2 million and is planning to continue with buyback programmes,
in line with the existing the European Central Bank's (ECB's)
authorisation granted on 15th August 2024. The bank will also
propose to allocate up to 5% of its 2024 net profit for the share
buybacks for the capital reduction purpose, and to grant shares as
part of the deferred variable remuneration for the employees of the
Šiaulių Bankas Group.
The group's cost/income ratio (C/I) was
49.0%1 (41.2%1 in 2023) and the return on
equity (RoE) was 14.0% (15.5% in 2023) at the end of the year. The
capital and liquidity position remained strong and prudential
ratios are being met by a wide margin. The capital adequacy ratio
(CAR) stood at 22.8%2 and the liquidity coverage ratio
(LCR) at 232%2.
|
Income Statement (€'m) |
FY2024 |
FY2023 |
% ∆ |
| |
|
|
|
| Net Interest
Income |
160.2 |
156.9 |
2% |
| Net Fee &
Commission Income |
29.1 |
20.3 |
44% |
| Other Income |
34.4 |
19.3 |
78% |
|
Total Revenue |
223.7 |
196.5 |
14% |
| |
|
|
|
| Salaries and
Related Expenses |
(49.5) |
(36.2) |
37% |
| Other Operating
Expenses |
(66.9) |
(49.3) |
36% |
|
Total Operating Expenses |
(116.4) |
(85.5) |
36% |
| |
|
|
|
| Operating
Profit |
107.3 |
111.0 |
(3%) |
| Allowance for
Impairment Losses |
(10.9) |
(15.2) |
(28%) |
| Income Tax
Expense |
(17.7) |
(20.4) |
(13%) |
| |
|
|
|
|
Net Profit |
78.8 |
75.4 |
5% |
|
|
|
|
|
|
Balance Sheet Metrics (€'m) |
Dec 2024 |
Dec 2023 |
% ∆ |
| |
|
|
|
| Loans |
3
435 |
2
932 |
17% |
| Total Assets |
4
923 |
4
808 |
2% |
| Deposits |
3
561 |
3
178 |
12% |
| Equity |
585 |
543 |
8% |
| |
|
|
|
| Assets under
Management3 |
1,977 |
1,556 |
27% |
| Assets under
Custody |
1,936 |
1,943 |
0% |
|
|
|
|
|
| Key
Ratios |
FY2024 |
FY2023 |
∆ |
| |
|
|
|
| Net Interest
Margin (NIM) |
3.3% |
4.2% |
-93bps |
| Cost-to-Income
ratio (C/I)1 |
49.0% |
41.2% |
+779bps |
| Return on Equity
(RoE) |
14.0% |
15.5% |
-146bps |
| Cost of Risk
(CoR) |
0.3% |
0.5% |
-19bps |
| Capital Adequacy
Ratio (CAR)2 |
22.8% |
22.4% |
+36bps |
| |
|
|
|
|
Overview of Business Segments
Corporate Client Segment
Šiaulių Bankas has significantly increased the
volume of corporate financing over the year – in 12 months new
corporate financing agreements worth of €960 million were signed in
2024, 29% increase compared to previous year. In the 2024 the
portfolio has grown by 20% (€308 million) to over €1.8 billion.
Growth has been well-diversified across several strategic sectors,
including manufacturing, retail, and renewable energy. A favourable
business environment has encouraged investment and created
additional opportunities for expansion.
Šiaulių Bankas continued its commitments to
promote sustainability and signed amendments to the Pre-financing
and Contingent loan agreements with the European Investment Bank
(EIB) concluded in 2016 to increase the Bank's investment up to
€255 million from €195 million – to finance the modernization
programme of multi-apartment buildings in Lithuania.
Private Client Segment
In 2024, Šiaulių Bankas has successfully
implemented key strategic initiatives that strengthened its market
position and ensured sustainable growth. The successful integration
of INVL retail business was a major accomplishment, which enabled
the bank to expand its service offering and provide customers with
even more opportunities. The implementation of new core banking
platform is on track, promising a greater efficiency and an
improves customer experience.
To strengthen its image and further meet the
expectations of its customers, Šiaulių Bankas has also started
preparations for the rebranding. A rebranding of Šiaulių Bankas
will be proposed for the upcoming shareholders' meeting.
The volume of new mortgage contracts in 2024
increased by 21% year-on-year to €213 million. In 2024 the mortgage
portfolio has grown by 17% (€136 million) reaching €0.9 billion.
The volume of new consumer loan contracts increased by 5%
year-on-year to €232 million. Since the beginning of 2024, the
consumer loan portfolio has grown by 19% (€57 million) to over
€0.35 billion.
Investment Client Segment
The bank has remained active in the local
corporate bond market, originating €42 million in corporate bonds
across 10 issuances for its clients in Q4 2024. Total corporate
bond issuance for the year reached €227 million. According to
Nasdaq Baltics, Šiaulių Bankas is leading security issuer in
Lithuania and the Baltic States and maintains the largest share of
securities trading on the Lithuanian stock exchange.
Šiaulių Bankas demonstrated strong performance
in asset management business in 2024. Client assets under
management (AuM) reached €1.46 billion and grew by €277 million
year-on-year. Growth was driven by new client investment flows and
investment performance. In 2024, Šiaulių Bankas asset management
company, earned €164.4 million for Tier II pension fund clients and
€19.8 million for Tier III clients. In total, the profit generated
for clients during the year was €184.2 million.
SB Alternative Investment Fund III, providing
new investment opportunities for Lithuanian retail investors, has
enjoyed a successful launch, attracting over €6 million in 2024.
Distribution of units of the investment fund is ongoing.
The Life Insurance segment also showed steady
growth, Risk Under Management (RUM) reaching EUR 1.7 billion in the
fourth quarter, EUR 174 million more than a year ago.
1 after eliminating the impact of
the client portfolio of SB Draudimas
2 preliminary data
3 includes Asset Management and Modernisation Funds
AuM
Šiaulių Bankas invites shareholders,
investors, analysts and all interested parties to a webinar
presentation of the financial results and highlights for the 2024.
The webinar will start on 27 February 2025 at 8.30 am (EET). The
webinar will be held in English. Please
register here. Please find
attached the information that will be presented at the
webinar.
If you would like to receive Šiaulių
Bankas' news for investors directly to your inbox, subscribe to
our newsletter.
Additional information:
Tomas Varenbergas
Head of Investment Management Division
tomas.varenbergas@sb.lt
- Siauliu Bankas Q4`24 earnings results presentation
- _2024-4Q EN FINAL
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