AI Magazine Issue 1 2017

26 Acquisition International - January 2017 Acquisition Intl. magazine has named Šiaulių Bankas 2016 Bank of the Year - Lithuania, and figures for last year show the bank had its best performance yet. In 2017, Šiaulių Bankas plans to continue its expansion and deliver a double-digit return on capital for the fourth year in a row reveals the CEO, Vytautas Sinius in this interview. n the history of Šiaulių Bankas, 2016 will go down as a year of records. In the first three quarters of the year, the bank’s net profit jumped 115% from the same period a year before to €37 million, and its return on capital (ROAE) hit a record 31.5%. The bank’s loan and financial lease portfolio, meanwhile, crossed the billion-euro threshold for the first time ever. “The last several years have been exceptional for Šiaulių Bankas,” CEO Vytautas Sinius remarked. “We’ve expanded both by acquiring other market players and also organically – by attracting more customers and boosting the scale of lending along with revenue from other activities. Within a few short years we’ve developed into a significant Lithuanian financial institution,” he explained. Šiaulių Bankas has managed to increase profit even in unfavourable circumstances. Since Lithuania joined the euro zone in 2015, the country’s commercial banks have faced the challenges of low interest rates. At the same time, geopolitical factors and global macroeconomic developments have negatively impacted the country’s export-oriented economy. EBRD impetus In a quarter of a century, Šiaulių Bankas has grown from being a small regional lender to become Lithuania’s fourth-largest bank. It made a qualitative leap when in 2005 the European Bank for Reconstruction and Development (EBRD) became its largest shareholder. According to Vytautas Sinius, the EBRD strengthened Šiaulių Bankas’s capital base, brought superior new corporate governance standards, and increased the bank’s reliability. Acquisitions have also provided impetus. In 2013 Šiaulių Bankas took over part of the assets and liabilities of the bankrupt Ū kio Bankas, and in 2015 it acquired Bankas Finasta. These important undertakings broadened Šiaulių Bankas’s sphere of operations and gave it solid footing in business areas where it previously lacked any real presence. The successful completion of these transactions gave the bank valuable experience in mergers and acquisitions, its CEO noted. While the bank’s strategy takes an organic approach to growth, it is watching the market and does not rule out further purchases of institutions or asset portfolios, he said. Key growth driver – SMEs Šiaulių Bankas concentrates its operations in three main areas: consumer finance services, saving and investment solutions, and financing for small and medium-sized enterprises (SMEs). The focus on SME financing goes back to the very origins of Šiaulių Bankas and has proved a very effective strategic direction. Financing for the SME segment is the bank’s biggest source of revenue and loans to SMEs make up nearly 70% of its credit portfolio. “The larger part of all business in Lithuania is done by small companies, so by financing SMEs we contribute quite heavily to the country’s economic development. This is an area that demands specific know-how and experience, and over the years we’ve earned the trust of the business community. SME financing is a strategic focus for the bank,” Vytautas Sinius commented. In recent times, Lithuania’s other main banks have also sought to establish themselves as providers of SME financing, but Šiaulių Bankas stands out for its expertise and experience, according to its CEO. Also, “since our capital is Lithuanian, Šiaulių Bankas makes decisions fast and locally,” he added. Name: Vytautas Sinius Company: Šiaulių bankas AB Email: [email protected] Web: www.sb.lt Address: Tilžės str.149, LT-76348 Šiauliai Phone: +370 41 595 607 No Stopping for Lithuania’s Fastest Growing Bank I 1701AI57 “We’re constantly expanding our range of services for individuals and for business.”