In the First Half-year “Hansabankas” Group Earned LTL 60,7 Million
2005-08-18 Back
| I half-year of 2005 | Goal of 2005 | |
| Return on equity | 18.6% | Over 20% |
| Cost-benefit ratio | 66.2% | Up to 60% |
| Profit growth (before taxes) | 15.4% | Over35% |
| Risk costs * | <0% | Up to 0,5% |
| *(written off loans – recoveries)/loan portfolio | ||
"Hansabankas" belonging to the largest financial group in the Baltics, in the first half of 2005 earned LTL 60,7 million of not audited net consolidated profit. That is by LTL 7,8 million or about 14,8 per cent more than during the same period of the last year when the Bank earned profit of LTL 52,8 million. "Hansabankas" return on equity (the ratio of profit to average equity for the reporting period) in the first half of 2005 amounted to 18,6 per cent (in the first half of 2004 – 20,9%).
Like in previous periods, growth of "Hansabankas" Group profit was mostly conditioned by rapidly increasing loan portfolio. In the first half-year of 2005, "Hansabankas" Group in Lithuania earned LTL 127 million of net interest income – that is by 38,7 per cent or by LTL 35,4 million more than in the first half year of 2004. Net income from commissions in the first half year of 2005 were by 39,0 per cent, or by LTL 17,5 million larger than during the same period of 2004 and amounted to LTL 62,4 million. Cost-benefit ratio of the first half of 2005 stood at 66,2 per cent, that is by 4,2 percentage point less than during the same period of 2004.
"Development of the country’s financial market met our expectations and enabled to achieve the envisaged results and to increase our market shares in great majority of areas. Modern products and servicing channels allowed increasing the efficiency of activities. Development of Lithuania’s economy, growing earnings of individuals and enterprises continue facilitating our investments into innovative products and quality of services. This tendency should be maintained in future," – said Giedrus Dusevičius, Chairman of the Board of "Hansabankas".
Annual growth of consolidated assets of "Hansabankas" was 38,1 per cent, or LTL 2,7 billion per year, and by the end of the first quarter of 2005 reached LTL 9,6 billion (on 30 June 2004 consolidated assets of the Bank amounted to LTL 6,96 billion). The growth of "Hansabankas" consolidated assets was mostly conditioned by the increase of loan portfolio. As of 30 June 2005, consolidated shareholders’ equity of "Hansabankas" reached LTL 685,9 million. In a year, consolidated shareholders’ equity grew to LTL 118,3 million, or 20,8 per cent.
Since 30 June 2004, loan portfolio was supplemented by LTL 2,2 billion (51,8 per cent growth) and on 30 June 2005 stood at LTL 6,6 billion. Private individuals’ portfolio grew as much as by 90,1 per cent (LTL 886 million) and reached LTL 1,9 billion. Business loans portfolio grew by 37,4 per cent (LTL 742 million) and amounted to LTL 2,7 billion. "Hansabank" Group’s factoring portfolio increased by 44,9 per cent (LTL 115 million) and accounted for LTL 372 billion. Leasing portfolio grew by LTL 499 million and was LTL 1,6 billion on 30 June 2005.
Amount of deposits held with "Hansabankas" increased by LTL 1,7 billion, or by 34,8 per cent during a year and reached LTL 6,7 billion on 30 June 2005.
By end-June, loan market share occupied by "Hansabankas" was 23,2 per cent. In the market of loans to individuals "Hansabankas" managed the largest share – 30,2 per cent. On 30 June 2005, "Hansabankas" held 30,9 per cent of deposit market, and in the market of individual deposits it also occupied the most prominent share – even 39,4 per cent.
Results of the first quarter do not include the enforced new requirements of the International Accounting Standard No. 39 regarding formation of provisions against loans (results are presented in observance of requirements of the Bank of Lithuania). Methodology of the formation of "Hansabank" Group provisions against loans has been changed with a view to harmonising it with the International Accounting Standards (IAS 39). Due to such change the balance sheet amount of provisions for loans was reduced by LTL 22,5 million and this was the reason why the profit of the first quarter of 2005 increased by LTL 3,138 million, and equity – by LTL 19,4 million.
"Hansabankas" belongs to the largest group of financial services in the Baltic States -"Hansabank", whose strategic investor is the Swedish Bank "Swedbank". In Lithuania "Hansabankas" Group includes "Hansa gyvybės draudimas", "Hansa lizingas" ir "Hansa investicijų valdymas", "Baltijos autolizingas", "Hansa draudimo brokeris" and "Hansa valda".
