Q1 2025 Siauliu Bankas AB Earnings Call Transcript
Key Points
- Siauliu Bankas AB (FRA:ZH5) reported a net profit of €17.7 million for Q1 2025, with an adjusted net profit of €19.4 million, indicating strong financial performance.
- The bank achieved a 17% year-on-year growth in net fee commission, showcasing robust revenue diversification.
- Asset quality remains strong with the lowest non-performing loan (NPL) ratio in five years, highlighting effective risk management.
- Successful issuance of €300 million in senior preferred bonds with high oversubscription, demonstrating strong investor confidence.
- The bank made its largest dividend payout in history, reflecting a commitment to returning value to shareholders.
- Net interest income declined due to changing interest rates, impacting overall revenue.
- Operating expenses increased due to inflationary pressures and higher headcounts, affecting cost efficiency.
- The bank is undergoing a costly rebranding process, with expenses projected to be around €5 million.
- The consumer credit market is competitive, requiring strategic pricing to maintain margins.
- Potential impacts from US tariffs are not yet accounted for in the bank's impairment expense model, posing future risk.
Good day investors. Welcome to Siauliu Bankas Webinar, of the first quarter of 2025. As you see in the presentation, we already have marked with our new name out there, so I both a bit sentimental, but much more excited about the change, and the next webinar would only be with a new name.
So let's get started. Let's move on to the key financial and strategic highlights. So I would like to mention that our net profit generated during the first quarter is â¬17.7 million. If not, if we take adjusted net profit, it would be closer to â¬20 million return on equity 2,012.4 and 13.6% respectively.
The quarterly performance is in line with the bank's budget expectation and we t in the full year, guidance as we presented earlier this year. So Lopo is picking up, so 2% on a quarterly growth, slightly lower than we're expecting, at the beginning, but, as I mentioned, before that we are expecting the growth to catch up and we'll be, in line with our budget of growth, for the 2025.
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