OREANDA-NEWS. On March 27, 2008 the ordinary general shareholders’ meeting approved the 2007 Financial Statements of AB Ukio bankas and the Bank’s Group, reported the press-centre of Ukio bankas.

The AB Ukio bankas 2007 audited net profit approved by the shareholders amounts LTL 82,72 million, showing a 75 percent increase compared to the year 2006 (LTL 47,38 million). In 2007 Ukio bankas Group earned LTL 77,35 million in unaudited net profit, i. e. 78 percent more than in 2006.

“The year 2007 was the record-profit year for Ukio bankas. Intensive activities and major focus on clients, relevant products and services introduced on a regular basis as well as expansion and improvement of a client service network allowed us to considerably exceed the target and increase value for the shareholders,” Edita Karpaviciene, chairwoman of Ukio bankas Board, said.

By the resolution of the shareholders’ meeting, Ukio bankas allotted more than LTL 3,9 million for the dividend payment from the profit earned last year – LTL 0,02 per Bank’s share of LTL 1 par value. This year, the dividends to Ukio bankas shareholders will be paid out for the fourth year in a row.

Over the year 2007, the Bank’s assets mounted by LTL 994 million or 33 percent and reached LTL 4 billion at the end of the year. During 2007, the Group’s assets rose by LTL 1,13 billion or 35 percent and amounted to LTL 4,3 billion at the end of the year. At the end of 2007, Ukio bankas was ranked fifth by the size of capital and seventh by the assets managed in Lithuania.

The major portion of the Group’s assets, 50 percent, was comprised of loans and finance lease receivables from clients, which surged 2,2 times and totalled LTL 2,1 billion at the end of the year. Deposits with banks and other financial institutions decreased by LTL 73 million and accounted for 19 percent of the Group’s assets. At the end of 2007, the securities portfolio amounted to LTL 0.6 billion and accounted for 15 percent of the Group’s assets.

On 31 December 2007, the major portion of the Group’s liabilities, 72 percent, was comprised of clients’ deposits, which over the year surged by LTL 617 million or 29 percent and reached LTL 2.7 billion. Deposits from banks and other financial institutions accounted for 19 percent of the Group’s liabilities. From the beginning of the year, deposits from banks and other financial institutions increased by LTL 129 million or 22 percent and amounted to LTL 0.7 billion at the end of the year. In 2007, upon taking a 10-year maturity subordinated loan, the subordinated loans surged by LTL 93 million and reached LTL 0.10 billion, which accounted for 3 percent of the Group’s liabilities at the end of the year. During 2007, the Group’s equity surged by 34 percent up to LTL 517 million. The main reasons of growth in shareholders’ equity were the profit earned and a new share issue.

In 2007, Ukio bankas shares were among the most realizable ones on the Vilnius Stock Exchange and were distinguished by an exceptional growth in turnover. Compared to the year 2006, the turnover jumped by 80 percent and reached the record amount of nearly LTL 470 million. High liquidity and high trust of investors along with perfect growth prospects of Ukio bankas ensured leading positions for the Bank’s shares on the Vilnius Stock Exchange where they took a second place by turnover in 2007. As maintained by many professional investors, Ukio bankas shares further remain among the most attractive shares of the finance sector in Eastern and Central Europe.

Ukio bankas progress also earned recognition from international rating agencies. In February 2007, the international credit rating agency Moody’s upgraded its ratings assigned to Ukio bankas. Deposit rating was upgraded to Ba3/NP (former – B1/NP), financial strength eating – D- (former – E+). The outlooks of both ratings are stable. In September 2007, the international rating agency Standard&Poor’s for the first time assigned ratings to Ukio bankas: the long-term credit rating BB and the short-term credit rating B. The outlooks of both ratings are stable.

The fact that Ukio bankas is well-known and considered a strong and reliable partner was testified by another contract signed in November 2007 under which 21 foreign banks extended a syndicated loan of EUR 48 million (nearly LTL 166 million) to Ukio bankas. The initial loan amount set at EUR 25 million was exceeded due to big interest of the international loan market’s participants and reached even EUR 48 million. This already a third syndicated loan extended to Ukio bankas during two recent years.

In 2007, Ukio bankas was actively strengthening its capital base in this way ensuring preconditions for further rapid growth. In QIII 2007 the Bank successfully distributed the share issue of LTL 20 million par value, which was distributed at the price that was LTL 42 million above the par value. Another step in this field – a 10-year maturity subordinated loan of EUR 27 million (LTL 93 million) taken in December, which received the authorisation to be included into the Bank’s Tier II capital. The share issue, good performance and the obtained subordinated loan strengthened Ukio bankas capital base and created preconditions for its further rapid growth. In 2007, the Group’s adequacy ratio increased from 13,33 percent at the beginning of the year to 14,83 percent at the end of the year.

Ukio bankas focuses on the quality of client service. With this aim in view, last year the Bank expanded its client service and ATMs network, and organised training for client service officers. One of the most important steps in this field – the establishment of a Private Banking Department. Ukio bankas is the first bank in Lithuania to provide private banking services not only in Vilnius but in all major cities of Lithuania as well.

In a year the Bank opened 6 new client service units. At the end of 2007, Ukio bankas held 12 branches and 40 client service units throughout Lithuania. During 2007, the number of the Bank’s active clients surged by 28 percent and amounted to 121 thousand at the end of the year.

Searching for new and prospective business niches for successful competition, last year Ukio bankas founded a subsidiary, UAB Ukio banko rizikos kapitalo valdymas (Ukio bankas venture capital management). The new company was established with the aim of financing prospective, innovative and rapidly growing companies or separate innovation projects of companies.

The year 2007 was very successful for the leasing company Ukio banko lizingas, which strengthened its leading positions on the consumer leasing market. Last year Ukio banko lizingas subsidiaries earned LTL 2,7 million in net profit.

“We are happy to see that an increasing number of clients choose, actively use and show trust in Ukio bankas services. This year, Ukio bankas and the Group plan to operate successfully and profitably by ensuring efficient and rational activities, Mrs. Karpaviciene noted.

The plan of Ukio bankas is to earn LTL 91,5 million in net profit in 2008. According to the plan the Bank’s assets should reach LTL 5,47 billion at the end of 2008.