Investor Conference Webinar

1

5th May 2021

Investor Conference WebinarResults for Q1 2021

Presenters

VYTAUTAS SINIUS, CEO

DONATAS SAVICKAS, CFO

Investor Conference Webinar

3

15.1 15.6

-4.9

-0.1

-1.9

-2.8

-0.3

-10

-5

0

5

10

15

20

2020 Q1 2021 Q1

mEUR

Operating profit Allowance for impairment losses

Income tax expense Discontinued operations

Q1 2021


▪ Net profit for Q1 2021 - EUR 12.4 million

▪ New three-year strategic plan is being executed

▪ NPE portfolio decreased by more than 15%

▪ Increasing number of clients are served remotely

Targets for 2021 2021 Q1

EfficiencyROE >12.2% 14.2%

Cost / Income <44.7% 44.4%*

Risk managementCAR >15.5% 19.6%**

CoR 0.6% 0.0%

KEY PERFORMANCE INDICATORS

NET PROFIT STRUCTURE

*- 42.4%, if excluding the impact from the investment result of the SB draudimas assets under unit-linked contracts

**- preliminary data

4

0

200

400

600

800

1000

1200

1400

1600

2020-25 2020-29 2020-33 2020-37 2020-41 2020-45 2020-49 2020-53 2021-04 2021-08 2021-12 2021-16

Macro & COVID situation update

• The economic recovery is above expectations

• Currently country is going through the easing of the lockdown

restrictions

• Covid-19 vaccination uptake is in line with EU average


INFLATION CHANGE, y-y %REAL GDP CHANGE, y-y %

-0.8

-6.8-6.3

1.0

-1.8 -1.7

-8

-6

-4

-2

0

2

Lithuania Euro area EU

2020 2021 Q1

1.1

0.3

0.7

1.6

1.3 1.4

0

0.5

1

1.5

2

Lithuania Euro area EU

2020 2021 Q1

CUMULATIVE NUMBER FOR 14 DAYS OF COVID 19

CASES PER 100000 (YYYY-W)

Europe 361

Lithuania 540

Graphs sources: European Commission, 3rd May; European Centre for Disease Prevention and Control, 3rd May

NUMBER OF OPERATING CLIENT SERVICE UNITS

5953 51

57

0

10

20

30

40

50

60

70

2020 Q3 2020 Q4 2021 Q1 2021 May

5

159 176 191259 249

-182

-119

-180-159 -151

-200

-150

-100

-50

0

50

100

150

200

250

2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1

mEUR

New agreements Repayments

▪ Total loan portfolio increased by 3% during Q1

▪ Another strong quarter by new agreements signed - EUR 250 million

▪ During 2020 loan market decreased by 4%, while Bank’s market share

increased by 0.8 p.p. to 8.5%

Loan portfolio dynamicsLOAN PORTFOLIO DYNAMICS

NEW AGREEMENTS SIGNED / REPAYMENTS*

14%

8%

CORPORATE FINANCING – 1,088m

+3% q-o-q

-5% y-o-y

CONSUMER FINANCING – 156m

-3% q-o-q

-4% y-o-y

MORTGAGE – 327m

+10% q-o-q

+159% y-o-y

OTHER LOANS – 247m

+0% q-o-q

+6% y-o-y

1,818mEUR

60%

9%

14%

17%

* - including loan commitments


1,667

1,7551,738

1,761

1,818

4.5% 4.6% 4.5% 4.6%4.3%

0%

1%

2%

3%

4%

5%

1,500

1,600

1,700

1,800

1,900

2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1

mEUR

Portfolio Yield

6

1,146 1,106 1,084 1,058 1,088

3.6%3.8% 3.8% 3.8%

3.6%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

800

900

1,000

1,100

1,200

1,300

2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1

mEUR

Portfolio Yield

Corporate financing


▪ Demand for the business financing returned, portfolio has

increased by 3%

▪ Banking sector corporate loan market decreased by 15%

during 2020, thus Bank’s market share increased by 0.9 p.p.

to 13.6%

▪ During Q1, a deferral period applied to EUR 24 million of

corporate loans deferred due to COVID-19 had expired and

only 1% of them have applied for additional restructuring.

EUR 17 million of corporate loans had not reached the end

of deferral period

▪ New moratoriums on temporary loan repayment deferral

were signed in January; only EUR 3 million of loans were

restructured under their terms by the end of the moratoriums

(31st March)

CORPORATE FINANCING PORTFOLIO

NEW AGREEMENTS SIGNED

81 42 61 148 148

3.9% 3.7% 3.7% 3.5%

3.1%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

0

50

100

150

200

2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1

mEUR

New agreements Interest rate

7

126

247 267297

327

2.6% 2.6% 2.6% 2.6%2.4%

1.0%

1.5%

2.0%

2.5%

3.0%

0

50

100

150

200

250

300

2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1

mEUR

Portfolio Yield

Mortgages

MORTGAGES PORTFOLIO

27.3

13.9

27.1

35.7

41.2

2.5% 2.5% 2.5%2.4% 2.3%

1.0%

1.5%

2.0%

2.5%

3.0%

0

10

20

30

40

50

2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1

mEUR

New agreements, mEUR Interest rate, %


+10%

Consumer financing

162 162 164 160 156

11.9% 11.6% 11.8% 11.6%10.8%

4%

6%

8%

10%

12%

14%

0

50

100

150

200

2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1

mEUR

Portfolio Yield

31.6 27.2 32.6 28.3 26.0

11.1%10.6% 10.9%

9.5%10.0%

4%

6%

8%

10%

12%

0

10

20

30

40

50

2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1

mEUR

New agreements, mEUR Interest rate, %


CONSUMER FINANCING PORTFOLIO

-3%


▪ The volume of new agreements signed decreased by 8% to EUR 26

million over the quarter

▪ Increased competition on consumer financing pricing

▪ SB lizingas has successfully shifted to the online purchase financing

▪ During 2020 the consumer credit market decreased by 9%, thus

Bank’s market share increased by 1.1 p.p. to 11.9%

▪ Strong demand for household lending continues

▪ Q1 record quarter by signed new mortgage agreements – EUR 41.2 million

▪ During 2020 the mortgage market increased by 9%, while Bank’s market

share increased by 2.1 p.p. to 3.4%

8

▪ NFCI increased by 2% to EUR 4.1 million compared to Q4 last year

▪ Customers' activity have been negatively affected by the national lockdown and

declined economic activity

▪ Over the last 12 months, the number of customers subscribed for service plans

with monthly commissions fees increased by more than 10% and exceeded 164

thousand; the number of payment cards increased by 6% (to 174k)

▪ A remote identification service has been introduced to customers since January

Daily bankingNET FEE AND COMMISSION INCOME (NFCI)

FEE AND COMMISSION INCOME, Y-Y CHANGE

mEUR


-3%

+69%

-10%

+2%

-28%

-3%

0.0 0.5 1.0 1.5

Other

Securities brokerage

Account administration

For administration of loans of third parties

Cash operations

Payment services

2021 Q1

2020 Q1

4.1 3.5 4.3 4.0 4.10

1

2

3

4

5

2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1

mEUR

1.7 1.6 2.0 1.7 1.50.0

0.5

1.0

1.5

2.0

2.5

2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1

mEUR

REVENUE FROM FOREIGN EXCHANGE OPERATIONS *

* excluding the impact of the SB draudimas clients' portfolio

9Funding


▪ In Q1, total deposit portfolio up by 7% to EUR 2.51bn:

▪ Term deposits EUR -19m

▪ Demand deposits EUR +174m

▪ LTD ratio 73% vs 75% (Q1 vs 2020 Q4)

▪ No participation in ECB TLTRO III auctions since June 2020 (increased limit

to EUR 628,8m; used amount EUR 150m)

▪ In February, Moody‘s affirmed long-term deposit rating Baa2 and changed its

outlook to positive from stable

▪ The Bank received permission to provide term deposit services in Austria, the

Netherlands, France and Spain. In April 2019, the Bank first offered this

service to the customers in Germany

2,1272,170

2,278

2,353

2,508

0.45% 0.45%0.38%

0.37%

0.31%

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

0.7%

0.8%

1,900

2,000

2,100

2,200

2,300

2,400

2,500

2,600

2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1

EURm

Portfolio Cost, incl. insurance

DEPOSIT PORTFOLIO

+7%

10

20.6

19.6*

4

6

8

10

12

14

16

18

20

22

2020 2021 Q1

%

CAR

CAR (interim profit incl.)Minimum requirement

Risk appetite

Capital & risk management


CAPITAL ADEQUACY RATIO

* - forecast data

▪ Capital reserve is well above minimum requirements

▪ LCR increased from 283% to 294%*

▪ AQR results will be published publicly in June 2021

▪ AGM approved dividends for the year 2020

▪ ECB recommendation on dividend payment and share buy-back is valid until

30 September 2021

20.2*

15.5%

12.6%

9.6%

13.4%

Capital requirement before release of capital buffers due to COVID-19

9.4%

12.4%

P2G

* - forecast data

11

0.7%

-0.2%

0.2%

0.5%0.6%

0.01%

-1.0%

-0.5%

0.0%

0.5%

1.0%-12

-8

-4

0

4

8

12

2016 2017 2018 2019 2020 2021 Q1

mEURLoan impairment losses CoR

Loan portfolio qualityCOST OF RISK (COR)

NPE (LOANS)


5.4%5.1%

5.1%

6.9%

5.6%

0

20

40

60

80

100

120

140

0%

2%

4%

6%

8%

10%

2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1

mEUR

Gross value Gross value / Loan portfolio

LOANS PAST DUE >30 DAYS

4.2%3.6%

3.3%3.0%

2.3%

0%

2%

4%

6%

8%

10%

2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q10

20

40

60

80

100

mEUR

Gross value Gross value / Loan portfolio

▪ No signs of significant deterioration in the loan portfolio, therefore,

provisions for possible impairment losses of EUR 0.1 million were

formed in Q1

▪ NPE's portfolio decreased by EUR 19.5 million

▪ New process for identifying customer risk groups

12

2020Y

Price -1.6%

Turnover EUR 84.5m

SHARE DATASHARE PRICE DYNAMICS

Share valuation data & ratios

* as of 4th May 2021

2016 2017 2018 2019 20202021

Q1

2021 05

04

Capitalization, mEUR 170 267 241 304 299 318 369

Turnover, mEUR 23.1 44.5 34.7 48.3 84.5 20.8 35.0

Average daily turnover, mEUR 0.09 0.18 0.14 0.19 0.34 0.34 0.42

P/BV 1.0 1.3 0.9 1.0 0.8 0.9 1.0

P/E 3.9 8.3 4.6 5.9 7.0 6.4 7.4

Capital increase from retained

earnings, %20.0 20.0 - - - - -

Dividend yield, % 1.1 0.8 6.2 - 1.0 - -

Dividend payout ratio, % 4.3 7.1 33.0 - 7.7 - -

Number of shareholders* 3 401 4 496 4 992 5 391 9 053 10 812 -

2019Y

Price +26%

Turnover EUR 48m

Daily volume, mEUR


0.614

0.0

1.0

2.0

3.0

4.0

5.0

6.0

0.30

0.35

0.40

0.45

0.50

0.55

0.60

0.65

2021 YTD*

Price +23%

Turnover EUR 35m

* - the actual number is higher (Bank has no detailed information about the number of small shareholders that accounted on nominee

(omnibus) account)

TARGET PRICE

EUR 0.65 (March 5th) EUR 0.64 - 0.68 (February 27th) EUR 0.57 (February 23rd)EUR 0.65 (March 3rd) EUR 0.48 / 0.61 / 0.75 (bear / base / bull) (March 5th)

13Q&A


14


KEY RATIOS

Annex I

* - preliminary data

2015 2016 2017 2018 2019 2020 2021 Q1

Net profit, mEUR 23.8 43.7 32.1 52.6 51.5 43.0 12.4

NIM, % 2.9 2.9 3.1 3.1 3.2 3.0 2.9

ROAA,% 1.4 2.5 1.6 2.4 2.1 1.5 1.7

ROAE,% 19.0 27.6 16.1 22.3 17.6 12.7 14.2

C / I,% 52.2 42.3 52.1 37.3 42.5 42.7 44.4

C / I,% (excl. the impact of the SB

draudimas clients‘ portfolio)51.6 41.4 51.7 37.9 40.8 42.9 42.4

CET1 ratio,% 12.1 15.0 13.9 15.0 15.0 16.1 18.6*

CAR,% 14.2 17.0 15.5 15.0 16.2 17.2 19.6*

CAR,% (interim profit incl.) 15.7 19.2 18.6 18.0 18.9 20.6 20.2*

RWA, mEUR 968 1.015 1.212 1.471 1.654 1.917 1.962

L/D ratio, % 63.3 68.5 72.2 75.1 82.2 75.0 72.6

Documents

Investor Conference Webinar