OREANDA-NEWS. July 31, 2013. Despite the increased one-off expenses related to integration of the Ukio bankas' part, Siauliu bankas' Group earned LTL 6.5 million of unaudited net profit over the first half of the current year. 

The unaudited net profit earned by the Bank Group over the respective period in 2012 comprised LTL 7.0 million. The Bank's unaudited net profit earned over the first half of the current year reached almost LTL 6.3 million or by 11 per cent less in comparison with the respective period last year.

Comparing to the respective period of 2012 the net interest income of the Bank Group increased by 7 per cent and exceeded LTL 29.8 million.  The Bank Group's income from net service and commission fee had grown significantly over the half a year - it comprised LTL 6.5 which is by 74 per cent more than during the respective period last year. This was influenced by a significant increase in the number of customers and the increase in the bank's business scope.

At the end of June significantly falling prices in the all securities markets had a negative impact on the result of transactions in securities over the second quarter by reducing the half - year securities operations profit of the Group to LTL 4.9 million.

The changes in the operating expenses were caused by the take-over of the part of Ukio bankas' assets and liabilities and the increased number of employees.  Over the second quarter the Bank' Group incurred expenses which exceeded the expenses incurred during the first quarter by 14 per cent, while the expenses incurred over the half a year reached LTL 48.1 million.  Consistent and conservative assessment of the borrower's financial status led to additionally formed special provisions amounting to LTL 5.2 million during the second quarter while the expenses on special provisions formed since the beginning of the year comprised LTL 9.1 milion.

Increasing expenses related to integration of Siauliu bankas' processes made the impact on the Bank Group's profitability ratios as well.  The cost to income ratio over the second quarter increased by 6 percentage points and comprised 78.1 per cent at the end of June. The ROE and ROA ratios comprised 4.2 per cent and 0.3 per cent respectively after the first half of a year.

According to the data as of the end of the half a year, Siauliu bankas takes the sixth position in terms of loan portfolio and manages 5 per cent of the loan market. The lending became more active during the second quarter and, despite the repaid loans, the newly issued credits allowed to increase the Bank's loan portfolio up to LTL 68 million.  At the end of June the loan portfolio comprised LTL 2.79 billion. After taking over the assets of Ukio bankas the structure of assets generating interests has changed.  The increase in debt securities portfolio the share of which in the Bank Group's assets has almost doubled - up to 33 per cent will allow actively increasing the loan portfolio in the future.