Šiaulių Bankas Group results for 3M 2025

Core Viewpoint - Šiaulių Bankas is undergoing a significant rebranding to become Artea, aimed at enhancing relationships with clients and positioning itself as the preferred bank in Lithuania [1][14]. Financial Performance - The bank reported an unaudited net profit of €17.7 million in Q1 2025, a decrease of 21% compared to €22.5 million in Q1 2024 [3][9]. - Operating profit before impairment and income tax was €24.5 million, down 18% from €30.0 million in the same period last year [3][10]. - Total revenue decreased by 16% year-on-year to €48.3 million, driven by a 13% decline in net interest income to €34.4 million and a 44% drop in other income [10]. Loan Portfolio and Deposits - The total loan portfolio increased by 2% (€76 million) to €3.5 billion, with all loan segments showing growth [4][9]. - The customer deposit portfolio grew by 1% (€45 million) to exceed €3.6 billion, with demand deposits rising by 4% during the quarter [5][9]. Cost and Efficiency Metrics - The cost-to-income ratio rose to 52.6% from 42.1% in Q1 2024, indicating increased operational costs relative to income [7][10]. - Return on equity (RoE) decreased to 12.4% from 17.6% year-on-year [7][10]. Capital and Funding - The bank strengthened its funding structure with a €300 million senior preferred bond issue and redeemed a €20 million subordinated bond [6][9]. - The Capital Adequacy Ratio (CAR) improved to 22.8%, while the Liquidity Coverage Ratio (LCR) stood at 254% [7]. Business Segments Overview - In the corporate client segment, the business loan portfolio grew by 2% to nearly €1.9 billion, maintaining high quality with a Cost of Risk (CoR) of -0.21% [11]. - The private client segment saw a 90% increase in new mortgage contracts to €76 million, while consumer finance contracts fell by 9% to €49 million [13]. - The investment client segment reported €64 million in bonds issued for corporate clients, with assets under custody nearing €2 billion [15]. Shareholder Returns - The bank plans to continue share buybacks, having requested ECB authorization to repurchase up to 4.5 million shares [8][9].