Hansabankas group earned LTL 34.8m in the first-quarter of 2005
2005-04-28 Back
Hansabankas that belongs to the largest financial group in the Baltics earned LTL 34.8m in (interim/unaudited) net profit in the first-quarter of 2005. Compared with Q1 of 2004 (when the net profit ran at LTL 25.1m), it grew 38.5 percent (LTL 9.7m). Return on equity was 21.9 percent (compared with 17% achieved in Q1 of 2004).
The nearly 40% net profit growth was thanks to the rapidly increasing loan portfolio and a more pro-active use of bank services by its customers. In Q1, net interest income stood at LTL 60.8m - 39.1% (LTL 17.1m) up from the first-quarter of the previous year. The net fee income went up 28.5 percent (LTL 6.1m) and totaled LTL 27.5m. Cost/income ratio was 58.3% - 6.1 percentage points down from the first-quarter of 2004.
"During the first-quarter of 2005, the loan interest margins in the country experienced further contraction and came close to the EU level. Already to-date, individuals and companies can borrow from Lithuanian banks under the same terms and conditions as borrower taking out loans in EU. Attractive prices offered by the Bank to our customers and our focus on the service quality were largely behind an impressive 54% growth of the Bank's loan portfolio", - said Giedrius Dusevicius, Chairman of Board of Hansabankas. According to him, as Hansabankas' results met all expectations, its activity priorities will remain unchanged, i.e. the Bank is going to offer tailored services and products that can meet customers' needs and expectations best of all and increase business volumes in the expanding domestic financial market.
Hansabankas' consolidated assets jumped in 2004 by 34.4% (LTL 2.2bn) and totaled LTL 8.7bn at the end of the first quarter of 2005 (compared with LTL 6.5bn as of 31 March 2004). As at 31 March 2005, the consolidated equity stood at LTL 659.9m. During 2004, it rose by LTL 170.1m (34.7%).
From 31 March 2004 to 31 March 2005, the loan portfolio increased by LTL 2bn (53.4%) and climbed to LTL 5.8bn (as of 31 March 2005). Personal loans portfolio growth skyrocketed as high as 80.5% (LTL 673m) and was LTL 1.5bn. At the same time, the business loans portfolio grew 37.9% (LTL 696m) and stood at LTL 2.5bn. Hansabankas group' factoring portfolio experienced a 43.1% (LTL 104m) rise and amounted to LTL 345m. The Bank's leasing portfolio expanded by LTL 551m and was LTL 1.4bn as at 31 March 2005.
Deposits held with Hansabankas increased by LTL 1.4bn (28.6%) and were worth LTL 6.1bn as of 31 March 2005.
As at end of the first quarter of 2005, Hansabankas' market share in the domestic lending market stood at 22.7 percent. Besides, the Bank dominated the personal loans market with a market share of 28.6%. As of 31 March 2005, Hansabankas had 30.5% domestic deposit market share and dominated the personal deposits market with a market share of 39.6%.
Other financial indicators are as follows:
| First-quarter of 2005 | Target for 2005 | |
|---|---|---|
| Return on equity | 21.9% | Above 20% |
| Cost/income ratio | 58.3% | Up to 60% |
| Growth of profit | 38.9% | Above 40% |
| Risks cost* | <0% | Up to 0,5% |
*(written-off loans - recoveries)/loan portfolio
Hansabankas belongs to Hansabank Group, the largest financial service group in the Baltics, whose strategic investor is Swedish bank, Swedbank . Lithuanian Hansabankas group consists of Hansa Lizingas, Hansa Gyvybes Draudimas (life assurance company), Hansa Investiciju Valdymas (an investment management company), Baltijos Autolizingas, Hansa Draudimo Brokeris (an insurance brokerage company) and Hansa Valda.
