- Profit. Šiauliu Bankas Group earned a net profit of €17.7 million
- Fee and commission income. Net fee and commission income exceeded €7.5 million, up 17% year-on-year
- Loan portfolio. The loan portfolio exceeded €3.5 billion, up 15% year-on-year
- Financing structure. The bank successfully placed €300 million bond issue on the international markets
- Buybacks. The bank has requested the ECB for authorisation to purchase 4.5 million of own shares
- Rebranding. Šiauliu Bankas will become Artea as of 5 May 2025.
"We are about to take a historic step by becoming Artea in early May. This is more than just a new name. It is a strategic initiative to strengthen our relationship with private and corporate clients, the public and investors, and to become the first choice bank for customers in Lithuania.
We are fully focused on this important strategic change from the beginning of the year, which we believe will support long-term business. Our first quarter were in line with our market guidance," says Vytautas Sinius, Chief Executive Officer of Šiauliu bankas.
Šiauliu Bankas Group earned unaudited net profit of €17.7 million in the first quarter of 2025, which is 21% less than in the corresponding period of 2024. Operating profit before impairment and income tax amounted to €24.5 million, down 18% compared to an operating profit of €30.0 million in the corresponding period of 2024.
Net fee and commission income in Q1 2025 grew by 17% y-o-y to over €7.5 million, while net interest income decreased by 13% y-o-y to €34.4 million.
All loan book segments grew during the quarter, with the total loan portfolio increasing by 2% (€76 million) to €3.5 billion. New credit agreements signed in the first quarter amounted to €0.4 million, 6% more than in the corresponding period of 2024 (€0.37 million).
The quality of the loan portfolio remains very strong, with loan provisions of €1.9 million in Q1 2025 (€2.2 million in the corresponding period of 2024). The Cost of Risk (CoR) of the loan portfolio was 0.2% in Q1 2025 (0.4% in the corresponding period of 2024).
The customer deposit portfolio grew by 1% (€45 million) since the beginning of the year and exceeded €3.6 billion at the end of the quarter. Demand deposits grew by 4% (€67 million) during the quarter to over €1.7 billion.
In the first quarter of this year, the bank's funding structure was reinforced by €300 million senior preffered bond issue. As planned, the bank redeemed a subordinated bond issue of €20 million after the end of the quarter.
The group's cost-to-income ratio at the end of the quarter was 52.6%1 (Q1 2024: 42.1%1) and the return on equity was 12.4% (Q1 2024: 17.6%). The group has accumulated capital and liquidity reserves, which include a contingent reserve for changes in CRR3 regulatory requirements to be implemented by June 30, 2025. Preliminary prudential ratios - the Capital Adequacy Ratio (CAR) stood at 22.8%2, while the Liquidity Coverage Ratio (LCR) stood at 254%2.
The bank's strong and sustainable capital base has enabled it not only to pay out a record dividend for 2024 (50% of 2024 net profit, €0.061 per share), but also to achieve a higher return to shareholders through the use of a buybacks of its own shares. The bank plans to continue its own share buybacks under the ECB's authorisation and intends to buy back up to 2.65 million shares. In the first quarter of 2025 the bank has also submitted an additional request for ECB authorisation to purchase up to 4.5 million own shares
Income Statement (€'m) | 2025 3M YTD | 2024 3M | % ? |
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| ||
Net Interest Income | 34.4 | 39.6 | -13% |
Net Fee and Commission Income | 7.6 | 6.5 | 17% |
Other Income | 6.4 | 11.4 | -44% |
Total Revenue | 48.3 | 57.4 | -16% |
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Salaries and Related Expenses | -14.0 | -11.3 | 24% |
Other Operating Expenses | -9.9 | -16.1 | -39% |
Total Operating Expenses | -23.8 | -27.4 | -13% |
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Operating Profit | 24.5 | 30.0 | -18% |
Provisions | -2.2 | -2.2 | 1% |
Income Tax Expense | -4.6 | -5.4 | -14% |
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Net Profit | 17.7 | 22.5 | -21% |
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Balance Sheet Metrics (€'m) | 2025.03.31 | 2024.12.31 | % ? |
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Loan Portfolio | 3 511 | 3 435 | 2% |
Total Assets | 5 286 | 4 923 | 7% |
Deposits | 3 606 | 3 561 | 1% |
Equity | 561 | 585 | -4% |
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Assets under Management3 | 1 957 | 1 977 | -1% |
Assets under Custody | 1 964 | 1 936 | 1% |
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Key indicators | 2025 3M YTD | 2024 3M | ? |
|
| ||
Net Interest Margin (NIM) | 3.0% | 3.9% | -94bp |
Cost-to-Income Ratio (C/I)1 | 52.6% | 42.1% | +1054bp |
Return on Equity (RoE) | 12.4% | 17.6% | -521bp |
Cost of Risk (CoR) | 0.2% | 0.4% | -15bp |
Capital Adequacy Ratio (CAR)2 | 22.8% | 21.1% | +169bps |
Overview of Business Segments
Corporate Client Segment
The volume of new business finance contracts in Q1 2025 was €0.2 billion, the same as a year before. Since the beginning of the year, the business loan portfolio grew by 2% (€33 million) to almost €1.9 billion. The strong growth is maintained by the high quality of the loan portfolio, with a partial release of provisions on the corporate loan portfolio Q1 2025, with a Cost of Risk (CoR) of -0.21%.
The bank's continues to diversify growth across strategic sectors such as manufacturing, retail and renewable energy. The favourable business environment has stimulated investment and created additional opportunities for expansion.
Private Client Segment
In Q1 2025, the volume of new mortgage contracts increased by 90% to €76 million compared to the same period last year. Since the beginning of the year, the housing loan portfolio has grown by 5% (€43 million) to almost €1 billion.
The volume of new consumer finance contracts fell by 9% year-on-year to €49 million in Q1 2025 compared to the same period last year. Since the beginning of the year, the consumer loan portfolio grew by 1% (€5 million) to almost €0.4 billion.
The bank continues to implement strategically important projects, modernising its core banking platform in line with the plan and rebranding. Šiauliu bankas will becomes Artea as of 5 May.
Investment Client Segment
In an environment of decreasing base rates, customers continue to invest and save actively. In Q1 2025, the value of bonds issued on behalf of corporate clients amounted to €64 million. At the end of the quarter, the value of assets under custody amounted to almost €2 billion.
At the end of Q1 2025, the assets managed by SB Asset Management remained above €1.4 billion. The performance of the managed pension funds continues to rank among the best compared to competitors, both since the beginning of the year and over longer 3- and 5-year periods. Thanks to the applied Index Plus investment strategy-where part of the funds is allocated to private debt, real estate, and other private assets-the funds experience lower volatility during turbulent periods, while maintaining high returns.
1 eliminating the impact of SB Insurance's client portfolio
2 Preliminary data
3 includes assets managed by asset management and modernisation funds
Šiauliu bankas invites shareholders, investors, analysts and all interested parties to a webinar presentation of the financial results for the first quarter of 2025. The webinar will start at 08:30 (EEST) on 29 April 2025. The webinar will be held in English. Please register here.
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Additional information:
Tomas Varenbergas
Head of Investment Management Division
tomas.varenbergas@sb.lt, +370 610 44447
