Banks, Financial Services, Insurance, Legislation, Lithuania

Siauliu Bankas refused its intention to sell such subsidiary companies as UAB Ukio Banko Lizingas and life insurance company UAB Bonum Publicum which have previously been taken over from the failed bank Ukio Bankas and used to be listed as companies held for sale so far, and decided to classify them as consolidated subsidiary companies, Siauliu Bankas said in a statement.

"For our customers it is important to receive marketable high-quality financial services. Retail leasing and life insurance perfectly complement the traditional banking services rendered by Siauliu Bankas, therefore, there is no doubt we will be able to provide even more benefits and opportunities to our customers. Two new companies have joined the Bank Group's structure leading to a huge synergistic effect which will allow realising even more ambitious goals of the Group," said Chief Executive Officer of Siauliu Bankas Vytautas Sinius.

According to him Ukio Banko Lizingas takes a leading position in retail banking in Lithuania while Siauliu Banko Lizingas belonging to the Bank's Group focuses on undertakings and larger-scale leasing projects, thus, activities of these two leasing companies will organically complement each other.

On 3 March 2013 Siauliu Bankas acquired Ukio Banko Lizingas and Bonum Publicum, subsidiary companies controlled by the bank under 100 percent, alongside with another nine undertakings under the agreement on transfer of Ukio Bankas' assets, rights, transactions and liabilities based on which the part of assets, rights, transactions and liabilities of Ukio Bankas was transferred to Siauliu Bankas. The call option rights of failed Ukio Bankas to acquire the part of the assets taken over by Siauliu Bankas from Ukio Bankas expired at the beginning of 2014 – as neither of call options had been realised, the assets of Ukio Bankas went to disposal of Siauliu Bankas.

The other remaining companies taken over from Ukio Bankas are still included in the list of subsidiaries held for sale. The major share of the latter engaged in non-banking activities Siauliu Bankas' Group is planning to realise during 2015.

Over nine months of this year Siauliu Bankas earned LTL 32.9 million (EUR 9.5 million) of the unaudited net profit when during the analogical period last year the bank's net profit reached LTL 8 million (EUR 2.3 million). The unaudited net profit of Siauliu Bankas' Group over the same period this year comprised LTL 35.2 million (EUR 10.2 million) which exceeds the net profit generated over the respective period in 2013 by 2.4 times.