Financial indicators of AB bankas Hansabankas are consistent with plans and efficiency keeps growing
2008-10-23 Back
"Achieved results show that the strategy chosen by the Bank for the improvement of its performance efficiency and reliable lending policy guarantee the profitability of the Bank's operations", - summarises the results of three quarters of this year Antanas Danys, the Board Chairman of the Bank in Lithuania. "This can be illustrated by the fact that in Q3 2008 the Bank generated the largest income in its history - LTL 274.6 million, while its expenses of LTL 102.3 million were the lowest during the last four quarters", - continues the Chairman.Financial and performance indicators of the Bank Group
|
|
Q3 2008 |
Change % |
Q3 2007 |
|
Assets |
LTL 26.1 billion |
16,4 |
LTL 22.4 billion |
|
Financial portfolio |
LTL 20.2 billion |
16,7 |
LTL 17.3 billion |
|
Portfolio of loans to private individuals |
LTL 7.4 billion |
20,1 |
LTL 6.2 billion |
|
Portfolio of business loans |
LTL 7.1 billion |
12,6 |
LTL 6.3 billion |
|
Leasing and factoring portfolio |
LTL 5.7 billion |
17,6 |
LTL 4.9 billion |
|
Deposit amount |
LTL 12.6 billion |
10,2 |
LTL 11.4 billion |
|
Individual deposits |
LTL 8.7 billion |
7,4 |
LTL 8.1 billion |
|
Corporate deposits |
LTL 3.9 billion |
16,9 |
LTL 3.3 billion |
|
Group profit (net) |
LTL 332.6 million |
11,9 |
LTL 297.2 million |
|
Bank profit (net) |
LTL 299.7 million |
32,7 |
LTL 225.9 million |
|
Operating profit of the Group |
LTL 464.0 million |
20,2 |
LTL 385.9 million |
|
Provisions |
LTL 68.3 million |
172,2 |
LTL 25.1 million |
|
ROE (%) |
23.8 |
|
30.1 |
|
Expense-to-income ratio (%) |
40.6 |
|
41.6 |
|
Consolidated shareholders' equity |
LTL 2.2 billion |
49,0 |
LTL 1.5 billion Lt |
|
Net interest income |
LTL 558.7 million |
29,9 |
LTL 430.1 million |
|
Net commission income |
LTL 140.1 million |
11,1 |
LTL 126.1 million |
|
Loan and deposit ratio (%) |
160 |
|
151 |
|
Staff number |
3,310 |
-4,4 |
3,461 |
Achievements in deposit and loan market
During the last 12 months deposits in the Bank went up by 10% or LTL 1.2 billion to LTL 12.6 billion, i.e. 29.1% of the market. "The leading share of the market of current private clients deposits 48,1 % - is guaranteed by considerable attention paid to electronic banking and by the development of this service. However, during 9 months the market of demand deposits subtracted by 8%, because expenses from accounts of individuals exceeded receipts. This can be explained by growing inflation and higher interest rates on time deposits", - comments the Chief Executive of the Bank in Lithuania. Term deposits of individuals in the market experienced growth of 34%. At the end of 9 months of 2008 the Bank held LTL 8.7 billion deposits to private individuals and 3.9 billion business deposits which during the year augmented by 7 and 17%, respectively.
Growth of loan portfolio during the same period was LTL 2.9 billion, of which LTL 1.25 billion comprised loans to private individuals and 1.6 billion - to business clients. After Q3, the Bank's loans to private individuals accounted for LTL 7.4 billion and to business clients (including leasing) - LTL 12.8 billion. After three quarters of 2008 the Bank occupies 24.7% of loan market in Lithuania.
The quality of loan portfolio reflects market situation
Net profit of the Bank was predetermined by larger expenses for covering possible loan losses, which accounted for LTL 68.3 million in 9 months. Specific provisions at the end of period stood at LTL 197.9 million and accounted for 1% of the total loan portfolio.
"It is normal in this cycle of economic development and such expenses have been expected in advance", - evaluates A.Danys implications of market situation for the Bank's performance. "The share of defaulting clients at the end of period accounted for 0,62% of the total loan portfolio. While in global terms this share is acceptable, we can see some signs of its growth tendency. Therefore, we continue systematically adjusting our lending conditions with due regard to the macroeconomic indicators of the country, funds necessary for subsistence, overall income level and development of these and other indicators. Still we believe that attempt of the Bank to be a financial partner and advisor to its clients and tempt to find the best solutions for both - client and bank- are also conducive to retaining a relatively small and sufficiently stable number of defaulting clients", - says A.Danys.
ZOOM - the most successful customer care and education programme
"We have never expected that the number of ZOOM programme participants will reach almost 100,000 by end-Q3. The most attractive in this programme which exists for less than one year are youth cards (111,000 card holders) and card design contest, while ZOOM investment game has more than 12,000 participants (+40% per Q)", - explains A.Danys feeling happy about success of the programme.
The amount of active clients increased 7% and reached 1,29 millions.
Swedbank is a new name of Hansabankas. Swedbank Group is operating in 14 countries of the world. In Lithuania, Latvia, Estonia, Russia and Sweden Swedbank has more than 9.2 million of private and about 530,000 of business clients, 459 branches in Sweden and 299 - in the Baltic States. Swedbank employs more than 22,000 staff with over 3,000 employees in Lithuania. In Lithuania the Logo of Swedbank is used by AB bankas Hansabankas, UAB Hansa lizingas, UAB Baltijos autolizingas, UADBB Hansa draudimo brokeris, UAB Hansa investicijų valdymas, UAB Hansa gyvybės draudimas, and UAB Hansa valda. Legal names of the companies will be changed in spring of 2009.
