Ab Artea Bankas · OMXVSE:ROE1L
Ab Artea Bankas — Šiaulių Bankas — Q1 2025 Earnings Presentation
44 slides from Ab Artea Bankas's earnings presentation, Apr 29, 2025
Slide 1: Q1'25 Financial Results
Šiaulių Bankas Q1`25 Financial Results April 29, 2025
Slide 2: Key Financial and Strategic Highlights
Key Financial and Strategic Highlights ▪ Quarterly performance is in line with the bank’s budget expectations – we are reiterating the full-year 2025 guidance Q1 2025 ▪ Loan portfolio grew by 2% QoQ, reflecting slower growth attributable to seasonality factors ▪ Net fee and commission (NFC) income s
Slide 3: Šiaulių Bankas Rebrands as Artea
Šiaulių Bankas Rebrands as Artea New brand was unanimously approved by the General Meeting of Shareholders on 31 March 2025 Official new brand launch date is 5th of May Artea, our new brand, reinforces our dedication to the Lithuanian people, their needs, and their goals, aiming to become the top ch
Slide 4: Shareholder Returns
Shareholder Returns Record High Dividend Paid Buybacks Set to Resume ▪ In October 2024, Šiaulių Bankas updated its dividend policy, raising the payout ratio to a minimum of 50% of the previous year’s net earnings Buyback up to 2.65 Buyback up to 4.5 ▪ The Ordinary General Meeting of Shareholders app
Slide 5: Macroeconomic Overview
Macroeconomic Overview Section I
Slide 6: Lithuania's Economy Proved to be Resilient in the Times of Turmoil
Lithuania’s Economy Proved to be Resilient in the Times of Turmoil Sound Fundamentals, Dynamic Recent Performance, Low Credit Risks, Nearshoring Competitiveness and Favorable Growth Outlook Lithuania’s Exports Remained Resilient as the Country is Living Within Its Means Strong Export Diversification
Slide 7: Lithuania's Foreign Trade Relations With the U.S. Are Not Close
Lithuania`s Foreign Trade Relations With the U.S. Are Not Close Export structure of goods of Lithuanian origin to the U.S. in 2024, % LT-origin export to US share in 2024, % 30.6 29.0 Chemicals 27.2 6.8% of all exports of LT origin goods went Optical, photo, cinemato, measuring, to the U.S. testing,
Slide 8: Simulated Tariff-war Effects on EU Economy Pale Against Recent Crises
Simulated Tariff-war Effects on EU Economy Pale Against Recent Crises Bruegel: EU Can Manage Trump Tariffs; China Trade Fears Overstated ▪ An overall GDP drop of about 0.3 percentage points is unlikely to push Exposure of regional EU employment to tariffs the EU economy into a recession as the EU wa
Slide 9: Recent Trends and Macroeconomic Outlook
Recent Trends and Macroeconomic Outlook GDP to Grow 2.9% in 2025, Though Political Risks Persist Lithuania's macroeconomic forecasts, % ▪ Lithuania's economy began 2025 on a high note. Higher-frequency data suggests that, despite external headwinds, the country’s economic growth has remained 2022 br
Slide 10: Q1'25 Financial Results
Q1`25 Financial Results Section II
Slide 11: Financial Performance Highlights
Financial Performance Highlights Income Statement In €`m Q1`25 Q4`24 %∆ QoQ Q1`25 Q1`24 %∆ YoY Net Interest Income 34.4 39.2 (12%) 34.4 39.6 (13%) ▪ Net interest income growth slowed early in the year - Net Fee & Commission Income 7.6 8.1 (6%) 7.6 6.5 17% 13% QoQ due to declining rates and weaker lo
Slide 12: Net Interest Income
Net Interest Income Key Highlights Net Interest Margin (NIM) Dynamics Net Interest Income YoY (€`m) 6.5% 6.5% 6.4% ▪ Net interest income growth slowed 6.0% 5.5% due to ongoing rate declines and seasonally muted loan originations 39.6 early in the year 3.9% 3.9% 34.4 3.6% 3.3% 9.7 3.0% 7.1 ▪ Cost of
Slide 13: Loan Portfolio
Loan Portfolio Key Highlights Loan Yields 10.1% 9.9% 10.0% 9.5% ▪ Loan book +15% YoY with main growth areas being corporate and mortgage segments 7.5% 7.4% ▪ New loans origination was seasonally slow in the beginning of 2025 but we have seen 7.0% 7.2% 6.2% significant pick-up during March and expect
Slide 14: Net Fee & Commission Income
Net Fee & Commission Income Key Highlights Net Fee & Commission Income YoY (€`m) ▪ Net fees & commission income (NFCI) increased by 17% compared to the previous year ▪ Continued strong performance in the renovation segment, robust asset management +17% +44% business and strong capital markets perfor
Slide 15: Operating Expenses
Operating Expenses (1) Key Highlights Operating Expenses Development YoY (€`m) 42.1% 52.6% ▪ 1Q25 exhibited an increase in operating expenses, 41.1% 2 48.4% 2 driven by rising salary expenses (larger headcount following the merger with INVL Retail and expanding organisation) and several one-off expe
Slide 16: Asset Quality
Asset Quality Key Highlights Stage 2 and Stage 3 Dynamics 61% 59% 60% 72% 77% ▪ Non-performing loan (NPL) ratio reached its lowest level in the past five years ▪ The NPL ratio declined to 2.0% in 1Q25, driven largely by the closure of non-performing loans during the quarter, which also enhanced over
Slide 17: Funding
Funding Key Highlights Funding Portfolio Breakdown (Q1`25) Cost of Funding ▪ Cost of funding is decreasing, with a sharper decline Due to Other 2.90% expected in 2Q25 Other 6% 2.61% 2.70% Banks 1% 2.55% 2.50% ▪ Successfully issued €300 million in senior preferred Debt Securities 14% Term Deposits no
Slide 18: Capital Ratios and Requirements
Capital Ratios and Requirements Key Highlights Sufficient Capital to Support Growth Going Forward CET 1 Tier 1 Total Capital ▪ Capital position remains robust and supportive of future growth and capital distributions Surplus 4.35% 4.25% 4.53% ▪ As planned, during the quarter the bank redeemed a subo
Slide 19: Reiterating The Outlook
Reiterating The Outlook 2025 2026 2027 2028-29 COMMITMENT TO Growth Loan Book €4.1bn €4.6bn €5.3bn CAGR: ~8% SHAREHOLDER VALUE Deposits €3.9bn €4.4bn €4.8bn CAGR: ~10% Total Operating Income1 €222m €256m €288m CAGR: ~10% 50% NFCI €30m €33m €37m CAGR: ~25% Minimum Dividend Pay-out Efficiency C/I Rati
Slide 20: Q2'25 Investor Relations Calendar
Q2’25 Investor Relations Calendar Subscribe to Investor May 5, 2025 Vilnius New brand launch Relations Newsletter May 22, 2025 Tallinn Investor Toomase Investment Club Click May 26-29, 2025 Warsaw The Finest CEElection Equity Investor Subscribe Conference Subscribe or Scan June 2, 2025 Vilnius Nasda
Slide 21: Expanding Broker Coverage Highlights Strong Upside Potential
Expanding Broker Coverage Highlights Strong Upside Potential Key Highlights Analyst Assessments Imply Average Upside of 33% ▪ During the quarter, we expanded our +50% +41% +41% +36% +31% +18% +13% equity research coverage in the CEE region: 1.6 - Signet Bank, a leading investment bank in Latvia, has
Slide 22: Business Segment Results
Business Segment Results Section III
Slide 23: Corporate Clients Segment Development
Corporate Clients Segment Development Key Highlights Corporate Loans1 (Q1`25) (€`m) Corporate Loans by Sectors1 (Q1`25) +15% Renovation 10% ▪ The corporate loan book expanded by 15% Other 4% Real Estate 26% YoY 2,092 2,099 2,132 Healthcare 3% 1,856 1,928 Utilities 6% ▪ The volume of new business fin
Slide 24: Private Clients Segment Development
Private Clients Segment Development Key Highlights Private Loans (Q1`25) (€`m) New Mortgage Agreements (Q1`25) (€`m) +18% 72.0 75.6 76.0 ▪ In Q1 2025, the volume of new mortgage contracts increased by 90% to €76 million 1,267 1,311 1,186 1,262 compared to the same period last year 1,112 39.0 ▪ Mortg
Slide 25: Investment Clients Segment Development
Investment Clients Segment Development Key Highlights Life Insurance (€`m) ▪ At the end of Q1 2025, the AUM remained above €1.4 billion Life Insurance Risk Under Management (RuM) (€`m) 15.0 ▪ The performance of the managed pension funds continues to rank among the best 1,685 1,701 compared to compet
Slide 26: Investment Clients Segment Development
Investment Clients Segment Development Key Highlights Bonds Originated by the Bank in Primary Market (Q1`25) (€`m) 92 ▪ In Q1 2025, the value of bonds issued on behalf of corporate clients amounted to €64 million 62 64 ▪ The bank worked with multiple well known local companies during the quarter hel
Slide 27: Appendix
Appendix SIAULIY % BANKAS e@ Artea
Slide 28: Key Investment Highlights
Key Investment Highlights A Profitably Growing Lithuanian Banking Franchise with New Strategic Expansion Initiatives 1 Operating in a structurally attractive market with strong growth potential 2 Differentiated and diversified business mix 3 A strategic focus on selected lending areas is generating
Slide 29: Organisational Structure and Reporting Segments
Organisational Structure and Reporting Segments Corporate Clients Private Clients Investment Clients ▪ Daily banking – Comprehensive financial solutions ▪ Comprehensive daily banking solutions for corporate including current accounts, payments, and card services ▪ Asset management business – among t
Slide 30: Income Statement
Income Statement Q1`25 Q1`24 %∆ YoY In €'000 Interest income 54,978 59,541 (8%) Other similar income 6,015 5,940 1% Interest expense (26,582) (25,901) 3% Net interest income 34,412 39,580 (13%) Fee and commission income 9,752 8,710 12% Fee and commission expense (2,191) (2,227) (2%) Net fee and comm
Slide 31: Statement of Financial Position
Statement of Financial Position Mar`25 Mar`24 %∆ YoY In €'000 ASSETS Cash and cash equivalents 702,241 675,561 4% Securities in the trading book 225,202 221,928 1% Due from other banks 2,615 2,629 (1%) Derivative financial instruments 476 660 (28%) Loans to customers 3,184,284 2,759,453 15% Finance
Slide 32: Life Insurance Income Reconciliation
Life Insurance Income Reconciliation Net Interest Income In €'m Q1`25 Q1`24 %∆ Revenue related to insurance activities €3.9m Net gain from trading activities (unit-linked contacts) €(3.6m) Interest income 54.7 59.2 (8%) Interest income (unit-linked contacts) €0.3m Interest income (unit-linked contra
Slide 33: Robust Loan Portfolio
Robust Loan Portfolio Loan Portfolio Rate Type Top Loans Concentration1 Loan Book Split by Risk Groups 55% 10% Fixed Rate 17% 51% 51% 51% 50% 50% 9% 50% 8% 46% 46% 7% 45% 46% 47% 46% 6% 40% 4% 5% 33% 4% 4% 4% 4% 26% 35% 3% 3% 13% 30% 2% Top 10 Top 30 Top 50 1Q`24 2Q`24 3Q`24 4Q`24 1Q`25 Floating Rat
Slide 34: Conservative and Diversified CRE portfolio
Conservative and Diversified CRE portfolio CRE: Underlying Property Types CRE: High Geographic Diversification Top 20 Corporate Real Estate Client Breakdown by Asset Class (Q1`25) CRE Split by Region (Q1`25) Other CRE 22% Shopping Centers Siauliai 13% 18% Public Gyms 5% Klaipeda 17% Vilnius 48% Rese
Slide 35: Loan Portfolio Segments Performance
Loan Portfolio Segments Performance Corporate Lending – Portfolio1 Mortgage – Portfolio Consumer Financing – Portfolio m`€ m`€ m`€ 2 000 7.1% 7.2% 7.1% 7.0% 7.5% 6.0% 5.9% 1 900 6.8% 1 000 5.8% 5.8% 5.6% 6% 6.6% 6.6% 7.0% 5.2% 380 10% 1 800 5.3% 10.1% 10.1% 6.5% 900 6% 10.0% 1 700 5.8% 340 9.9% 10%
Slide 36: Sticky Local Deposits
Sticky Local Deposits Share of Insured Deposits Top 10 Depositors1 Term Deposits with Auto-Rollover (Mar-25) 67% 12% 66% 10% 25% 65% 8% 64% 6% Term deposit Auto-Rollover 63% 4% Term deposit w/o Auto- 62% 2% Rollover 61% 0% 75% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q
Slide 37: Solid Liquidity Position
Solid Liquidity Position Securities Portfolio (Q1`25) Securities Portfolio (Q1`25) By Security Type, Bank-only By Accounting Method, Bank-only Corporate Bonds Fair Value Trading Book 6% 6% 1% Government Bonds Amortised Cost 94% 93% Liquid Assets (€`m) Strong Liquidity Position (Q1`25) Group Figures
Slide 38: Šiaulių Bankas Market Share in Lithuania
Šiaulių Bankas Market Share in Lithuania Loan Portfolio Market(1) Corporate Lending(1) 21.1% 17.9% 23.8% SEB SEB 25.1% Swedbank Swedbank 11.2% Luminor Luminor 15.0% Šiaulių Bankas Šiaulių Bankas 30.6% Others 28.1% Others 16.6% 10.6% Mortgage(1) Consumer Financing(1) 9.4% 26.9% 42.2% Šiaulių Bankas S
Slide 39: Group Shareholder Structure
Group Shareholder Structure Shareholder Structure (Mar`25) Number of Shareholders Other Domestic 19.9% Investors 19,087 19,287 32.7% 18,524 18,774 9.0% 16,573 7.3% 5.3% 5.1% 20.8% Other Foreign Algirdas Butkus Investors (One of the Founders) 9,053 Listed Baltic asset management group established in
Slide 40: Capital Ratios and Requirements
Capital Ratios and Requirements CET1 Ratio T1 Ratio Total Capital Ratio MREL Subordinated MREL Surplus 4.35% 4.25% 4.53% 3.81% 17.24% 45.08% Other EL MB 0.39% 22.27% 22.81% 27.84% 22.81% 19.00% 19.89% T2 Capital 2.92% MB 0.78% 18.01% AT1 capital 18.28% AT1 capital 1.88% 1.88% 15.64% MB (including P2
Slide 41: Debt Securities in Issue
Debt Securities in Issue Type ISIN Code Volume of Issue Interest rate Maturity Issue date Currency Senior Preferred XS3025213102 300,000,000 4.60% Jun 25, 2030 Mar 25, 2025 EUR AT1 XS2922133363 50,000,000 8,75% Oct 17, 2029 Oct 17, 2024 EUR Senior Preferred XS2887816564 300,000,000 4.85% Dec 5, 2028
Slide 42: Management Board
Management Board Vytautas Sinius Šiaulių Bankas: Šiaulių Bankas: 12 years Daiva Šorienė 25 years ▪ Chief Executive Officer of Šiaulių Bankas ▪ Head of Corporate Clients ▪ Chairman of the Management Board of Šiaulių Bankas Financial Industry: Financial Industry: ▪ Deputy Chief Executive Officer of Ši
Slide 43: Board of Directors (Supervisory Council)
Board of Directors (Supervisory Council) Valdas Vitkauskas Mindaugas Raila ▪ Chairman of the Supervisory Council of Šiaulių Bankas since August 2022 ▪ Chairman at Willgrow, Girteka Logistics and SIRIN Development ▪ Member of the Supervisory Council of Šiaulių Bankas since June 2022 ▪ Member of the S
Slide 44: Disclaimer
Disclaimer General The material in this presentation has been prepared by AB Šiaulių Bankas (Šiaulių Bankas) and solely for use at this presentation. The information provided in this presentation pertaining to Šiaulių Bankas, its business assets, strategy and operations is for general informational