OREANDA-NEWS. August 10, 2010. The results for the second quarter reflect the optimism that comes into sight due to the economy recovery. The Bank within the reference quarter earned LTL 4.5 million operating profit before tax, dividend and provisions or by 2.2 times more comparing to the relevant quarter of the previous year, reported the press-centre of Siauliu Bankas.

The operating profit for the first half-year of 2010 grew by 7 per cent and comprised LTL 5.3 million comparing to the first half-year of 2009.

Final result of the Bank is continued to be determined by special provisions being formed. During the second quarter special provisions in the amount of LTL 9.7 million were formed, during January - June they totaled LTL 18.6 million or by 36 per cent more than during the relevant period of last year. Thus, the Bank incurred loss in the amount of LTL 11.1 million within the first half-year of this year.

Operating results of the Bank’s Group for the first half-year before tax, dividend and provisions totaled LTL 5.0 million or by 37 per cent less comparing to the relevant period of 2009 when the Group earned LTL 7.9 million. This year special provisions of LTL 20.1 million were formed and they influenced the final loss in the amount of LTL 13 million.

Within the second quarter the Bank received LTL 11.2 million operating profit, i.e. by 37 per cent more than within the first quarter. It was determined by the increased net interest income, which in its turn was influenced by resources more frequently becoming cheaper than interest-earning assets.

Higher interest earning assets was increasing more significantly in April-June. Debt securities portfolio increased by 14.1 per cent (LTL 43.8 million) within a quarter, the growth totaled 65.3 per cent (LTL 140 million) within six months. Loan balances (without evaluation of special provisions, tax and accrued interest) grew by LTL 22 million within a quarter. This growth slightly exceeded a decrease of loan portfolio that was recorded in the first quarter. Siauliu bankas became one of the few banks operating in Lithuania, which loan portfolio is increasing within 2010.

On 22 June 2010 the amended Charter of Siauliu bankas AB with an increased authorized capital up to LTL 204.9 million (EUR 59.4 million) was registered in the Register of Legal Entities. The increased capital base of the Bank not only improves the indexes assessing operational risk but also allows increasing crediting volume.