Vilniaus Bankas Annual Report 2001

Transcription

Vilniaus Bankas Annual Report 2001
01
Contents
Chairman’s and President’s Report
2
Supervisory Council / Executive Board
6
Structure of the Group
7
Major Events / Ratings
8
Review of the Group’s Results
10
Review of Business Environment
36
Contacts
45
Auditor’s Report (PricewaterhouseCoopers)
51
Financial Statements
52
V I L N I A U S
B A N K A S
CHAIRMAN’S AND PRESIDENT’S REPORT
A B
Chairman’s and President’s Report
In view of the Lithuanian Law on Public Circulation of Securities, Art. 5, Prg. 4, we
declare that the shareholder of AB Vilniaus Bankas, Skandinaviska Enskilda Banken, holds
15,270,191 shares of AB Vilniaus Bankas, i.e. 98.89% of all votes and share capital.
Vilniaus bankas Group net profit for 2001, according to the International Accounting
Standards (IAS), was LTL 95.2 million, or 15.8% higher than in year 2000. Earnings per
share were LTL 6.16 (LTL 5.40 a year ago). On the other hand, the projected result (LTL
108.2 million) was basically not reached due to the fact that administrative expenses in
2001 were by LTL 15.0 million higher than expected. The largest share of these present the
employee bonuses of LTL 9.0 million for year 2000 which were accounted for in 2001, and
the bonuses of LTL 10.0 million accrued for 2001. Besides, real lending volumes at the end
of the year were lower than had been planned.
During 2001, total assets of the Group increased by LTL 0.7 billion, or by 11.8%, and
equalled LTL 6.2 billion. Mainly, such increase was determined by larger investments into
Treasury Bills – LTL 430 million, i.e. increase of 97.5% compared to the end of 2000. Also,
loans to customers and financial institutions increased by LTL 403 million, or by 16.8%.
Net loans to customers at the end of 2001 stood at LTL 2.7 billion, or 13.0% higher than
a year ago. The loan portfolio quality improved in 2001: at the start of 2001, provisions for
loan losses in the customer loan portfolio accounted for 6.3%, while at the end of 2001 – for
4.6%.
The largest increase on the liabilities side is a substantial rise in customer deposits – at
the end of period they accounted for LTL 4.2 billion, i.e. 14.7% higher than a year ago.
Among these, a larger share is the customer accounts and demand deposits – LTL 2.4
billion, or 57.7%. Compared to the end of 2000, these deposits increased by LTL 475 million,
or by 24.6%.
In 2001, the Group returned LTL 87.0 million of subordinated loans, which were granted
to strengthen the Group’s capital base at the beginning of its activity. At the end of reporting
period, the Group’s subordinated loans amounted to LTL 181 million.
At the end of 2001, the Group’s shareholders’ equity reached LTL 684.7 million, which
is nearly 17%, or by LTL 98.9 million, higher than in 2000.
Net interest income increased by LTL 8.5 million, or by 4.3%. Net commission and
other income increased by LTL 30.9 million, or by 35.0%. As the Bank’s assets grew, its
yield on assets decreased from 10.3% to 8.3% compared to 2000. Similarly, the Bank’s cost
of funds decreased from 4.3% in 2000 to 3.1% in 2001. Interest margin during the year
decreased, too – from 5.2% to 4.7% at the end of 2001.
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During 2001, additional provisions for loan losses accounted for LTL 13.2 million (LTL
24.0 million in 2000). Net interest income after the provisions increased by 9.9% in 2001
and reached LTL 190.5 million.
The Bank’s Treasury Department produced good results in 2001: the profit of LTL 12.6
million was earned from operations in debt securities and financial instruments. The Bank’s
market share in debt securities operations was 39%, and total turnover reached LTL 2 billion.
Income from foreign exchange exceeded LTL 45 million, its turnover accounted for LTL 51
billion, and its market share was 29%. The money market operations turnover reached
almost LTL 60 billion, the market share of these operations was 34%. In August 2001, the
Treasury Department was reorganized and Treasury Product Sales Unit was established
with a main function of working directly with the most important customers in performing
treasury operations and consulting on the issues of market risk management.
The Securities Custody Department was the largest custodian in Lithuania according
to total capitalization in nominal value of securities in its custody. The capitalization of the
securities under custody in nominal value as of 31 December 2001 was LTL 3 billion, i.e.
28.4% of all the securities in custody on the market. In the area of these services the Bank
competes not only with the other commercial banks but also with the brokerage companies
active in Lithuania.
The Bank was quite successful in pursuing its aim to focus more on retail banking. The
number of private individual customers increased almost by 30% during the year and
reached 275.7 thousand. By the end of the year, the Bank had more than 40% market share
in consumer loans – the consumer loan portfolio was LTL 20.6 million, which presented
73% increase compared to the end of 2000.
The mortgage loan portfolio increased to LTL 260 million at the end of the year, i.e. rose
by 33.3% compared to the year 2000. The share of mortgage loans in all loans portfolio
increased from 7.64% in 2000 to 9.18%. The total loans to private individuals portfolio as of
31 December 2001, was LTL 295 million, i.e. 35.3% increase since the end of 2000.
The Bank kept the position of the market leader in payment card area – its market share
was 48.4%. At the end of the year, the Bank had 432.8 thousand payment cards in force, i.e.
by 64.2% larger number than in 2000. All cardholder payments increased by over 66%
during the year and reached nearly LTL 2.4 billion. The bank cards were serviced at 184
ATMs (32 new ATMs during the year), 162 bank cashiers, 4,487 POS terminals (887 new
ones) and 164 Lithuanian Post offices.
The number of business customers (legal entities) increased as well to reach 52.4
thousand at the end of the year which is a 10% rise from year 2000. The loan portfolio to the
large corporate customers of the Corporate Customer Department increased by LTL 48
million, or by 5% compared to 2000.
E-banking saw further successful expansion: the number of the internet banking, VB
Internet@s, users went over 50 thousand by the end of the year and showed 4.5 times increase
during the year. VB Telebankas, a PC banking solution was used by 2.4 thousand corporate
customers (26% increase from last year); VB Linija, a phone banking service had 44.5
thousand customers (50% increase). In October, a GSM phone service, VB Linija 1528, was
introduced and its customers reached 4.5 thousand in the last three months of the year.
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The Bank’s service network included 18 branches, 40 sub-branches (three new subbranches opened and 2 closed during the year) and a Cash Collection branch. Total number
of the Bank’s customers was 328 thousand, nearly 1 million different accounts were handled by the Bank at the end of 2001.
During last few years, the Bank has made substantial investments into the shares of the
following companies:
1. Lietuvos ûemés úkio bankas AB (Lithuanian Agricultural Bank) – 123,835 nominal shares
which represent 11.44% of the bank’s share capital.
2. Öiauliù bankas AB (Bank of Öiauliai) – 141,552 nominal shares which represent 20.8% of
the bank’s share capital.
3. VB Lizingas UAB (Bank’s leasing subsidiary) – 28,501 shares representing 100% of the
company’s share capital.
4. VB Vilfima FMÌ UAB (Bank’s corporate finance subsidiary) – 497,980 shares representing 70% of the company’s share capital.
5. VB Rizikos kapitalo valdymas UAB (Bank’s venture capital management subsidiary) –
250,000 shares representing 100% of the company’s share capital.
6. VB Gyvybés draudimas UAB (Bank’s life insurance subsidiary) – 573,355 shares representing 100% of the company’s share capital.
7. IVKÌ Investicijù valdymas UAB (Bank’s investment management subsidiary) – 120,000
shares representing 100% of the company’s share capital.
Not all subsidiaries of the Bank were successful in 2001 – their total loss was LTL 38
thousand. The life insurance company showed LTL 3.6 million income from life insurance
operations and its net profit was LTL 760 thousand. VB Vilfima earned a net profit of LTL
860 thousand, and the venture capital management company – LTL 215 thousand. The
investment management subsidiary had a loss of LTL 311 thousand, while the loss of VB
Lizingas was LTL 1.3 million. The additional provisions for leasing contracts determined
the negative result. At the same time, total leasing portfolio increased by 56.4% to reach
LTL 378 million, the number of contracts signed by the company as well as their value
increased two-fold compared to the year 2000. The sharp increase was mainly determined
by the need in the market for the financing of cargo and passenger cars as well as equipment and real estate.
In 2001 Vilniaus Bankas fulfilled all the regulatory requirements of the Bank of Lithuania.
In May, 2001, the international rating agency Fitch upgraded the Bank’s long-term rating up from BB+ to BBB- , and short-term rating up from B to F3. The outlook for these
ratings is Stable. The long-term local currency rating, both sovereign and Vilniaus Bankas’,
remained unchanged at BBB+. The agency also assigned support rating 3 to the Bank. In
November, the agency assigned individual rating C/D to the Bank and confirmed the previous short-, long-term and support ratings. Considering the rating agency’s evaluation
and foreign experts’ opinion, the popular international finance and banking magazines
Global Finance and Euromoney named Vilniaus Bankas as the Best Domestic Bank in 2001.
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It were the Group’s employees who helped a great deal in achieving these positive
results. At the end of 2001, there were 1,783 employees in the Bank and 1,905 people working for the whole Group. A new Executive Board member, Mr Kari Lainio, SEB representative, was appointed by the Council to head the strategically important area of Retail banking in which he has a long-standing experience from Sweden and is able to share his skills.
With the purpose to adopt SEB culture, business vision and know-how, nineteen VB employees were trained in SEB on professional and leadership subjects. Similar number of the
Bank’s staff participated in training events arranged by SEB experts on management, IT
and new product development. Three VB people participated in SEB’s long-term studies
on credit, treasury and risk management, while eight SEB specialists trained VB staff on
private banking, cash management and strategic planning. All the Bank’s employees who
had a possibility to be trained at SEB in Sweden or by SEB trainers in Lithuania had a good
chance to sense SEB spirit, share common views on business, values and management. The
combined know-how is eventually directed towards cost-saving, higher liquidity and, ultimately, new shareholder value.
Lithuanian economy had to revive during the year 2000 after the impact of the Russian
crisis, and in 2001 it clearly showed strong performance. The estimated surprising increase
of the GDP of 5.7% is a really good achievement having in mind a general slowdown of the
world economies. Having good contacts with its customers, Vilniaus Bankas clearly felt the
rise in Lithuanian businesses. These close customer contacts allow us to predict that the
year 2002 will be also as successful as the previous year, and in the sense of local market
and financial sector development even better than 2001. We have concrete and ambitious
plans for the future: during the years 2002 through 2004, we will increase our loan portfolio
by 50%, increase customer deposits by 90%, reach five-fold rise in the number of e-banking
customers, and almost double our profit by the end of 2004 compared to 2001.
In order to achieve these goals, we will have to focus more on our customers: we will
have to exceed their expectations, strive to establish long-term relationships with the customers, offering customer-focused services and qualified advisory services based on our
high competence. We are a local bank providing all banking services and being a part of
the international network. Both for Lithuanian and foreign customers who have business
needs in the country and abroad, we will be able to offer more and more opportunities
provided by the international network of SEB.
Mats Kjaer
Julius Niedvaras
Chairman of the Council
President and CEO
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SUPERVISORY COUNCIL / EXECUTIVE BOARD
A B
Supervisory Council
MATS KJAER
CHARLOTTTE HAGBERG
LIUDVIKAS MIÖKINIS
Chairman
SEB Baltic Holding, President
Skandinaviska Enskilda Banken
Deputy Chairman
DR. ANDREAS ZEISLER
FREDRIK BOHEMAN
TORD MARTIN OLOFSSON
ALGIMANTAS KAZLAUÆIÚNAS
Deutsche Investitions- und
Entwicklungsgesellschaft mbH
Skandinaviska Enskilda Banken
Swedfund Financial Markets
President
Gamatonas UAB
Executive Board
JULIUS NIEDVARAS
President & CEO
MATTIAS STYRMAN
KARI LAINIO
Executive Vice President
Head of Finance
Head of Retail Banking
RAIMONDAS KVEDARAS
ARTURAS FEIFERAS
Head of Corporate Banking
and Treasury
Head of Credit,
IT and Operations
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Structure of Vilniaus Bankas Group
Shareholders Meeting
Supervisory Council
Board of Directors
PRESIDENT - CHAIRMAN OF THE BOARD
Advisers to the President
Human Resourses Department
Marketing Department
Legal Department
Secretariat
Internal Audit Department
Information Security Unit
Retail Banking
Division
Business Development
Department
Distribution Channels
Department
Product Development
Department
Credit & Support
Division
Corporate Banking &
Treasury Division
Finance
Division
Credit Department
Treasury Department
Credit Workout Department
Treasury Operations
Management Unit
Risk Management
Department
Property Valuation Department
Country and Financial Institutions
Risk Assessment Unit
IT Department
Branches
Operations Department
Corporate Clients Department
Planning & Control
Department
Financial Institutions Department
Accounting & Reporting
Department
Securities Services &
Custody Department
Procurement Department
Cash Collection Branch
General Affairs Department
Organizational Department
SUBSIDIARIES
SUBSIDIARIES
VB Life Insurance
VB Venture Capital Management
VB Leasing
VB Vilfima
VB Investment Management
VB I Pension Fund (to be established)
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Major Events 2001
January: Vilniaus Bankas – most successful broker.
The Securities Trade Unit (STU) of the Bank was the most successful trader on the
National Stock Exchange (NSE) in 2000, leading the market both by the volume of share and
debenture deals.
May: Fitch ratings upgraded.
The international credit rating agency Fitch announced that it upgraded VB short-term
and long-term ratings due to the upgrade of Lithuania’s sovereign ratings. VB now has a
short-term rating of ‘F3’ (up from ‘B’) and a long term rating of ‘BBB-’ (up from ‘BB+’). The
long-term local currency rating remained unchanged at ‘BBB+’. The long and short-term
foreign currency ratings were constrained by the sovereign rating. The outlook for these
ratings (both sovereign and VB) is Stable.
May: New card in euros.
Vilniaus Bankas started to offer a new Eurocard/MasterCard Business payment card in
euros. It is a Europay International card issued to the Bank’s corporate customers and
used to pay for goods and services globally, where Eurocard/MasterCard is accepted.
June: Support Rating to Vilniaus Bankas.
Fitch has assigned a 3 Support rating to Vilniaus Bankas (VB), now 97.99% held by SEB.
VB’s Long-term and Short-term ratings were recently upgraded to BBB- (BBB minus) and
F3 respectively following the upgrade in the sovereign ratings.
July: Internet banking customers total 30,000.
Vilniaus Bankas signed the 30,000th agreement on banking services via the Internet. The
figure also stands for the preliminary projected target for the year-end 2001. It made about
10 per cent of the Bank’s entire customer base.
July: 10,000 VB Linija phone banking customers.
VB phone banking service VB Linija customers reached 10,000 since April last year
when the service was expanded considerably to include all account balances (only payment
card account balances had been given since its introduction in April 1997), account history,
currency rates, etc.
July: Euromoney’s Best Bank in Lithuania Award.
London-based financial magazine’s EUROMONEY Best Bank in Lithuania and the Best
Equity House awards went “to the country’s largest player, Vilniaus Bankas, which has a
40% market share”, as reported in the magazine’s announcement for its July issue. The
Best M&A House award went to Vilniaus subsidiary, VB VILFIMA.
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September: Internet banking customers reached 40,000.
Vilniaus Bankas signed the 40,000th agreement on banking services via the Internet. It
makes approximately 13% of the Bank’s entire customer base ( 9% as of June 1).The Internet
banking service was introduced on 4 September, 2000 and in three and a half months the
number of its users totalled 10, 000 or three times higher than projected.
October: Mobile phone service VB Linija 1528 launched.
VB Linija 1528 is a brand new Vilniaus Bankas short message system (SMS) for mobile
phone holders and users of Omnitel or Bité GSM phone service providers.
October: Fitch Individual Rating for Vilniaus Bankas.
Fitch has assigned an Individual rating of ‘C/D’ to Vilniaus Bankas (VB). The agency
also affirmed the Short-term, Long-term and Support ratings at ‘F3’, ‘BBB-’ (minus) and ‘3’
respectively. The Long-term rating Outlook is Stable.
October: Vilniaus Bankas - Leader on Payment Cards Market.
Vilniaus Bankas, increasing its market share from 49% as of 1 January to 50.3% as of
beginning of October, traditionally remained the leader of the Lithuanian payment card
market. Besides, Vilniaus Bankas controled 59.4% of the international payment cards market
and remained the sole leader.
October: New personal bankig service VB Asmeninis bankas.
Individual customers of Vilniaus Bankas are offered a new way of service - VB Asmeninis
Bankas (Personal Banking). This new method of integrated banking and investment
management services is ment for the people who have special financial needs to manage
large amounts of financial resources.
November: Over 100,000 accounts handled via VB Internet@s.
Over 100 thousand accounts were handled by customers who had signed up for and
took advantage of VB Internet@s. It made 14% of accounts total with Vilniaus Bankas and
the average number of accounts per customer was 2.2.
December: 50,000 customers of VB Interneta@s.
The new number of 50,000 customers accounts for 15% of total customer base (9% on
June 1, 2001). Since the start of this year, the number of Internet customers increased by
almost 40,000. Nearly 60% of the customers were younger than 30.
Vilniaus Bankas Fitch Ratings
Short-term
F3
(up from ‘B’)
Long term
BBB -
(up from ‘BB+’)
Long-term local currency
BBB+
Outlook
Stable
Support rating
3
Individual rating
C/D
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REVIEW OF GROUP’S RESULTS
A B
Review of the Group’s Results
• Net profit
LTL 95.2 million
• Earnings per share
LTL 6.16
• Return on average equity 15.06%
• Return on average assets
1.70%
In 2001 the Group adopted IAS 39 Financial Instruments: Recognition and Measurement. The financial effects of adopting IAS 39 are reported in the Statement of Changes in
Equity. Detailed information on the accounting principles is disclosed in accounting policies for Derivative financial instruments, Trading securities, Investment securities and related Notes.
Prior to adoption of IAS 39, all debt and equity securities, except for trading securities,
were measured at amortised cost or cost respectively, providing only for other than temporary value impairments. IAS 39 has been applied prospectively in accordance with the
requirements of this standard and therefore comparative financial information has not
been restated. Even though the prior year figures have been regrouped under the new
format adopted in the current financial statements, it should be noted that the financial
data disclosed in the prior period financial statements is not fully comparable to the financial data as of 31 December 2001.
Viniaus Bankas Group’s result of 2001 calculated in accordance with the Bank of Lithuania rules and Lithuanian legislation was LTL 92.6 million.
Balance Sheet
During 2001, total assets of the Group increased by LTL 0.7 billion, or by 11.8%, and
equalled LTL 6.2 billion. Mainly, such increase was determined by larger investments into
Treasury bills – LTL 430 million, i.e. increase of 97.5% compared to the end of 2000. Also,
loans to customers and financial institutions increased by LTL 403 million, or by 16.8%.
Total leasing portfolio increased also – as of end of 2001 it amounted to LTL 378 million, or
56.4% more than as of end of 2000.
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Net loans to customers at the end of 2001 stood at LTL 2.7 billion, or 13.0% higher than
a year ago. The loan portfolio quality improved in 2001: at the start of 2001, provisions for
loan losses in the customer loan portfolio accounted for 6.3%, while at the end of 2001 – for
4.6%. LTL 24.5 million of total LTL 134.3 million provisions was general provision for loan
losses.
The largest increase on the liabilities side is a substantial rise in customer deposits – at
the end of period they accounted for LTL 4.2 billion, i.e. 14.7% higher than a year ago.
Among these, a larger share is the customer accounts and demand deposits – LTL 2.4 billion, or 57.7%. Compared to the end of 2000, these deposits increased by LTL 475 million,
or by 24.6%.
In 2001, the Group returned LTL 87.0 million of subordinated loans, which were granted
to strengthen the Group’s capital base at the beginning of its activity. At the end of reporting
period, the Group’s subordinated loans amounted to LTL 181 million or 32.5% less than a
year ago.
As of 31 December 2001, the Group’s shareholders’ equity reached LTL 684.7 million,
which is nearly 17%, or by LTL 98.9 million, higher than in 2000.
Profit and Loss Account
Vilniaus bankas Group net profit for 2001, according to the International Accounting
Standards (IAS), was LTL 95.2 million, or 15.8% higher than in year 2000. Earnings per
share were LTL 6.16 (LTL 5.40 a year ago).
Net interest income increased by LTL 8.5 million, or by 4.3%. Net commission and
other income increased by LTL 30.9 million, or by 35.0%. As the Bank’s assets grew, its
yield on assets decreased from 10.3% to 8.3% compared to 2000. Similarly, the Bank’s cost
of funds decreased - from 4.3% in 2000 to 3.1% in 2001. Interest margin during the year
decreased, too – from 5.2% to 4.7% at the end of 2001.
During 2001, additional provisions for loan losses accounted for LTL 13.2 million (LTL
24.0 million in 2000). Net interest income after the provisions increased by 9.9% in 2001
and reached LTL 190.5 million.
During the same period the Group earned LTL 12.6 million from operations with debt
securities and financial instruments compared to LTL 6.2 million during 2000.
The Group’s administrative expenses in 2001 were by LTL 15.0 million higher. The
largest share of these present the employee bonuses of LTL 9.0 million for year 2000 which
were accounted for in 2001, and the bonuses of LTL 10.0 million accrued for 2001.
Not all subsidiaries of the Bank were successful in 2001 – their total loss was LTL 38
thousand. The life insurance company showed LTL 3.6 million income from life insurance
operations and its net profit was LTL 760 thousand. VB Vilfima earned a net profit of LTL
860 thousand, and the venture capital management company – LTL 215 thousand. The
Investment management subsidiary had a loss of LTL 311 thousand, while the loss of VB
Lizingas was LTL 1.3 million. The additional provisions for leasing contracts determined
the negative result. At the same time, total leasing portfolio increased by 56.4% to reach
LTL 378 million, the number of contracts signed by the company as well as their value
increased two-fold compared to the year 2000. The sharp increase was mainly determined
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by the need in the market for the financing of cargo and passenger cars as well as equipment and real estate.
In 2001 Vilniaus Bankas fulfilled all the regulatory requirements of the Bank of Lithuania.
Retail Banking
Retail banking is one of the top priorities of the Bank’s development. Its potential depends very much on the customers’ growing interest in modern services, the increasing
need to save and invest, the Bank’s improved possibilities to issue loans, and the development of electronic, telephone, and virtual banking.
Retail banking services are provided to all customers of the Bank, with the exception of
over 100 major corporate customers, which are being serviced by the Corporate Customer
Department. At the close of 2001, the Bank had a vast retail banking network of 18 branches
and 40 customer service outlets, spread over Lithuania in pro rata to the customers’ needs.
Last year, the Bank continued transformation of its retail banking strategy. Emphasis
on the product was replaced by emphasis on the customer. To achieve better customer
satisfaction, services were developed to take account of the diverse needs of different customer groups.
Last year, retail banking paid a lot of attention to modern technologies and Internet
banking. In 2001, the Bank considered loans to corporate and individual customers, deposits, e-banking, and payments cards as strategic products and placed a great deal on emphasis on sales of subsidiaries’ products via its branch network.
Last year, the Bank focused on individual customer service. In addition to improvement of products for individual customers and development of individual customer service, the Bank offered something else for its financially active customers – VB Asmeninis
Bankas (Personal Banking) – a service, which was virtually new in the Lithuanian banking
Loan Portfolio
Diversification, %
26
10
4
5
7
9
30
9
Trade and wholesale
Real estate
Transport and communications
Government
Utilities
Housing
Processing industry
market. Customer of VB Asmeninis Bankas receive personal service, each customer has their
own manager, who advises them on issues of application of the Bank’s products, and arranges consultations on investment of funds. In 2001, the VB Asmeninis Bankas service was
made available, among other, at Vilnius, Kaunas, Klaipéda, and Öiauliai branches (a total
of 9 branches), and will be extended to the rest of the Bank’s branches in 2002, as projected.
When the Bank started selling SEB funds to its customers in 2001, this service was first of
all offered to the customers of VB Asmeninis Bankas.
Loans
At the close of 2001, the loan portfolio of the Bank stood at LTL 2.7 billion, going up by
13.0% over the year. Although loans to private individuals at the close of 2001 accounted
for just 10.1% of the total loan portfolio, this particular portfolio grew at an even more
remarkable pace, going up by 22.4% to LTL 287.5 million as of the year-end. Just like in
2000, mortgage loans accounted for the majority of the loans to private individuals. Loans
to retail banking customers totalled LTL 1.7 billion, growing by 4.9% over the year. Loans
to corporate customers amount to 84.9% of the loans to retail banking customer total.
Other
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The growth of the retail banking loan portfolio was very much influenced by several
factors – the improving Lithuanian economy, and the growing number of corporate customers. Last year, the number of Vilniaus Bankas corporate customer went up by 4.6 thousand to 52.4 thousand. The lending products that the Bank had to offer to its customers
were undergoing continuous development. Last, year, Vilniaus Bankas offered improved
terms and conditions of overdraft to its corporate customers, and better mortgage loans
terms and conditions to the individual customers.
Deposits
At the close of 2001, the amount of deposits held with the Bank totalled LTL 4.2 billion,
growing by 14.7% during the year. As of the year-end of 2001, time deposits stood at LTL
1.8 billion, with deposits from the public accounting for the major portion (83.6%) thereof.
During the year, deposits from the public increased by 15.8%.
To make deposits more attractive, the Bank in 2001 offered new products to the customers
and was developing the existing ones. Last year, the Bank undertook a large funds management service development project, and in the second half-year was able to present a
deposit refund scheme to its corporate customers. According to the scheme, all accounts of
a customer and its subsidiaries are handled as one account, providing a possibility to earn
higher interest on balances of accounts. To its corporate and individual customers, the
Bank offered new mixed deposit services, with the customer’s option to select different
interest accrual and disbursement schedules. Furthermore, the Bank improved savings
deposits, which bear the characteristics of a current account and a time deposit.
e-banking
During the year 2001, e-banking development exceeded all expectations. In the year
2001 number of VB Internetas customers increased by almost 40 thousand - from 11,262 to
50,783 customers. Steady growt allowed Vilniaus Bankas to keep during the year 83% Internet
banking market share. As of 31st of December 2001 more that 15.5% of Vilniaus Bankas
customers have been using VB Internetas, 87% of them were private customers, 58.8% of
them are younger than 30 years. Over VB Internetas customers are managing more than
110 thousand accounts – more than 2.2 accounts per user.
Number of Internet Banking Customers
60000
50000
40000
30000
20000
10000
0
Dec Jan
2000 2001
Feb Mar Apr May Jun
Jul
2001 2001 2001 2001 2001 2001
Aug Sep
Oct Nov Dec
2001 2001 2001 2001 2001
13
A n n u a l
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V I L N I A U S
B A N K A S
A B
In addition to the existing Internet banking applications – information on accounts
balances and transactions, funds transfer, local and international payments, foreign exchange operations – in year 2001 have been launched new applications – utility and Lietuvos
Telekomas telephone services bill payments. These new applications were very well accepted by VB Internetas private users and increased Internet banking popularity.
As of 31st of December 2001 the Bank had reached 44,500 VB Linija (telephone banking)
customers. In October 2001 GSM banking system VB Linija 1528 was launched. VB Linija
1528 customers can access their account information by simply sending SMS request to
short number 1528 from any part of the world, and in few seconds they receive account
balance and latest transactions. Within three months from service launch number of users
reached 4,500.
Despite of VB Internetas customer growth, number of VB Telebankas (PC banking)
customers increased by 518 - from 1,881 to 2,399. All of them are business users. VB Telebankas
is is primarily designed for users who are doing big number of payments - corporate and
SME customers.
More and more payments are made over e-channels. By the end of year 2001 more than
40% of all payments and foreign exchange operations were made over VB Internetas and
VB Telebankas.
ATM and POS terminal network. During the year 2001 number of ATMs increased by
20% and number of POS terminals at Merchant sites increased by 30%. However customer
usage of this out side Bank equipment increased by 88% for ATM transaction volume and
by 85% for ATM transaction number and by 78% for POS transaction volume and number
respectively. By the end of 2001 each second Vilniaus Bankas issued payment card transaction was processed for payment instead of cash withdrawal therefore generating over 20%
of total transaction volume.
VB Cardholders Expediture, LTL thous.
Payment Cards
During the year 2001, Vilniaus Bankas has issued 169,256 payment cards, including:
Abroad
In Lithuania
31 12 2000
31 12 2001
2500000
VB Banko
5,106
5,973
2000000
Visa Business
Visa Classic
6,276
9,921
7,254
11,673
1500000
Visa Gold
Visa Electron
741
210,175
799
356,640
1000000
Visa Electron/Statoil extra
EC/MC Standard
15,720
5,346
19,253
6,954
EC/MC Business
Maestro
10,271
461
23,805
263,556
432,812
500000
Total
0
31 12 2000
Growth
64.2%
31 12 2001
14
A n n u a l
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V I L N I A U S
B A N K A S
A B
Customer Service Network
Maûeikiai
N.Akmené
Birûai
Joniökis
Pasvalys
Telöiai
Palanga
Kretinga
Öiauliai
Plungé
Kupiökis
Radviliökis
Klaipéda
Rokiökis
Pakruojis
Zarasai
Panevéûys
Visaginas
Kelmé
Anyköæiai
Gargûdai
Utena
Öilalé
Nida
Ignalina
Raseiniai
Öiluté
Kédainiai
Ukmergé
Molétai
Övenæionys
Tauragé
Jonava
Jurbarkas
Öakiai
Öirvintos
Kaunas
Vilkaviökis
Prienai
Kaiöiadorys
Elektrénai
Trakai
VILNIUS
Lentvaris
Marijampolé
Vilniaus Bankas branches (19)
Vilniaus Bankas sub-branches (40)
Vilniaus Bankas ATMs (184)
Post offices (164)
Alytus
Varéna
Lazdijai
Druskininkai
Corporate Banking
Corporate Deposits
The Corporate Banking Division was established with the principal goal to offer com1%
7%
92%
plex financial, cash management, etc. solutions to customers in addition to the regular
services currently provided to major customers. During 2001 basis of the Division customers has expanded. The division now provides services to 30 separate companies and 26
groups of companies (total - 230 clients) representing various businesses. 95 companies
from the TOP 100 are the clients of the Bank.
The Corporate Banking Division earned most of its income from interest on loans. At
the close of 2001, the loan portfolio totaled LTL 1,072 mill., accounting for 38.7% of the
Bank’s total loan portfolio. Interest income made 61.7% of the Division’s total income.
In 2001, the trend of companies’ increasing interest in new cash management products
Treasury
Corporate Banking Division
could be observed. A cash pooling model was under development, range of traditional
banking products were tailored to the needs of particular client.
Branches
15
A n n u a l
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Financial Institutions
Increased Volumes of International Payments
To stand up to its reputation of a bank that sets international requirements in the Lithuanian banking market, Vilniaus Bankas has been offering services aimed at meeting the increasing demand of the customers for rapid integration of Lithuania’s business society
into European Union markets.
As compared to year 2000, the volumes of international payments by the customers of
Vilniaus Bankas have increased by 24.46%. International payment orders by the Bank’s customers grew as if to reflect the increasing foreign trade volumes of Lithuania, and topped
the respective ratios of last year by 14.13%.
The substantial escalation of the incoming international payment orders and the turnovers by 37.43% and 29.81% against the last year, respectively, nothing but confirms the
trends of growing exports of 2001 as announced by the official statistics.
Number of Outgoing Payments
by Currency, 2001
2%
2%
1%
2%
5%
International payments serviced by Vilniaus Bankas during 2001 have shown that the
customers maintain most intense business relations with partners in Germany, the USA,
Great Britain, Sweden, Latvia, Russia and Denmark. These countries accounted near 60%
of total international payments turnover. As compared to the results of the last year, most
significant increase was reported in settlements with the USA (64%), Latvia (46%), Russia
(39%) and Sweden (34%).
Payments Turnover (USD mill.) with the Main Partnering Countries
42%
2000
46%
2001
1000
800
GBP
SEK
DKK
RUR
Other
USD
EUR
600
400
200
0
Germany
USA
Great Britain Sweden
Latvia
Russia
Denmark
Finland Switzerland Poland Netherlands
International payments are still dominated by volumes in US dollars, which account
for 66% of total outgoing payment orders, however, in the number of outgoing foreign
payments, the predominance of US dollars has been replaced by euros, which accounted
for 46% of total payment orders, while 42% of the same were nominated in US dollars.
Cooperation with Financial Institutions
Vilniaus Bankas is paying exclusive attention to LORO correspondent banks and international payments in national currency. In spite of the Litas re-pegging policy as had been
16
A n n u a l
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V I L N I A U S
B A N K A S
A B
announced by the Bank of Lithuania, foreign partners have further shown their confidence
in Lithuania’s national currency and the quality of services provided by Vilniaus Bankas –
turnovers on LORO correspondent accounts during the last year have increased by 9.12%,
and the total number of payment orders has gone up by 28.05%. Payments in Litas made
89% of total payments through LORO accounts.
Growth of Business with LORO Correspondents, LTL bill.
Number of LORO correspondents
Turnover on LORO accounts (right scale)
250
45
200
40
35
30
25
20
15
150
100
10
5
50
0
0
1999
1998
2000
2001
The number of financial institutions and banks which maintain LORO accounts in our
books continued increasing during the year 2001 and reached 236 (217 a year ago or growth
by 8.7%). Total turnover on the accounts has grown by 12.7%, thus reaching LTL 38.1 billion during the year 2001. Domestically, Vilniaus Bankas maintained its foreign currency
payments clearer’s positions, as to date almost all Lithuanian banks have their multicurrency
accounts with us.
Documentary Settlements and Guarantees
With the expand of Vilniaus Bankas customers’ import and export transactions the demand of letters of credit, collection orders and bank guarantees grew significantly.
The number of issued import letters of credit in 2001 increased by 38% as compared to
2000 and was equal to 606, value of them increased by 114% and made LTL 266 million.
Compared with 1999 results the number and volume of import letters of credit during 2001
exceeded nearly twice (respectively 314 units and LTL 319 million). Received export letters
of credit increased slightly from 534 units in 2000 to 542 in 2001.
The number of collection orders during 2001 was 12% greater (1,143) than during 2000
(1,024) and value grew by 4% (from LTL 113 million to LTL 118 million).
Within the reporting period, the number of issued guarantees went up especially significantly. Bank issued 1,614 guarantees with a total value of LTL 176 million which exceeded
the adequate volume of 2000 by 188% and 76% respectively. If compared with 1999, the
number of guarantees during 2001 was almost seven times and value three times higher.
17
A n n u a l
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Volumes of Documentary Settlements and Guarantees, LTL mill.
Letters of credit
Guarantees
Collections
Turnover on LORO accounts (right scale)
1800
1000
1500
800
600
1000
400
500
200
0
1998
2000
2001
0
Issue of Lietuvos Telekomas AB Eurobonds
Vilniaus Bankas AB together with Credit Suisse First Boston (Europe) and FMÌ Suprema
UAB has arranged and on 19th of March, 2001, successfully distributed a first issue of
Eurobonds nominated in national currency and issued by Lithuanian corporate. Lietuvos
Telekomas AB 3-years Eurolitas issue is registrated in Luxembourg Stock Exchange.
Discounting
In 2001 the turnover of discounted bills of exchange, promissory notes and documentary credits documents has grown up to LTL 25.4 million. In comparison with the turnover
of 2000 the business increased by more than 2 fold.
Vilniaus Bankas concludes forfeiting transactions and signs limit agreements with Lithuanian customers as well as with foreign corporates, having stable counterparties in Lithuania.
Prepayment of Subordinated Loans
LTL 79 million of subordinated loans have been prepaid by the Bank in 2001.
Energy Efficiency and Housing Pilot Project
In May 2001 Vilniaus Bankas has been elected by the Ministry of Finance of Republic of
Lithuania to be the sole on-lender of funds, repaid under Energy Efficiency and Housing
Pilot Project (started in 1996). In 2001 Vilniaus Bankas has on-lended to homeowners
associassions and individual housowners LTL 30 million. The credits eligible under the
project are partially compensated and guaranteed by the State. LTL 3 million has been onlended from the repaid funds.
Ratings for Vilniaus Bankas AB Upgraded by Fitch
On May 16, 2001, the International rating agency Fitch upgraded Long and Short-term
foreign currency ratings for Vilniaus Bankas AB to “BBB-“ and “F3” from “BB+” and “B”.
The outlook for these ratings is stable. Fitch is the first rating agency upgraded Vilniaus
Bankas AB to investment grade rating which corresponds the Sovereign rating of Lithuania.
18
A n n u a l
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Factoring Operations
Factoring operations continued to grow in 2001 and became one of the most popular
working capital financing tools among Vilniaus Bankas customers. Factoring turnover increased more than 11 times and reached LTL 280.5 million by the end of 2001. Factoring
portfolio grew from LTL 9.7 million to LTL 75 million during last year. The number of
factoring agreements signed increased from 50 to 195 and the value of agreements signed
grew from LTL 18.1 million to LTL 111.5 million.
Due to increasing export and import volumes of Vilniaus Bankas customers international factoring has taken a significant role in 2001. International factoring made almost
28% of total factoring turnover and 21% of total factoring portfolio. In order to fulfil clients
needs Vilniaus bankas has been successfully cooperating with insurance companies “Lietuvos
Draudimo” Kreditù Draudimas UAB and Lietuvos Eksporto ir Importo Draudimas UAB. Since
2002 Vilniaus Bankas became a member of FCI (Factors Chain International) and entered
global factors network.
Factoring Portfolio Dynamics in 2001, LTL mill.
80000000
70000000
60000000
50000000
40000000
30000000
20000000
10000000
0
Jan
Interbank Interests Rates
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Treasury
VILIBOR
Vilniaus Bankas treasury department in 2001 was reorganized pursuing to offer wider
12
range and higher quality services to bank’s clients. All customer service functions were
transferred to Treasury sales unit, which offers to Vilniaus Bankas clients all treasury prod-
10
ucts, provides information and consultations in securities trading, interest rate, risk and
liquidity management field. There was established Derivatives unit in the department,
USD LIBOR
which will offer new ways to manage financial risk.
8
Money Market
6
Interest rates decreased significantly of all major currencies last year. In 2001 Federal
Reserve System (the Fed) cut target for the federal fund rate eleven times from 6.50% to
1.75% in order to stop slowdown and to stimulate growth of the economy. 12-month matu-
4
rity interbank USD LIBOR rates reacting to serial cuts also decreased from 5.94% to 2.44%
last year. The same maturity Lithuanian interbank rates VILIBOR in tandem with LIBOR
2
0
01.01.02
01.05.02
01.03.02
01.09.02
01.07.02
01.11.02
dropped by 3.95% points to 5.73%. Besides that, spread between VILIBOR and LIBOR shrink
by about 1.0% point over last year. This shows decreasing country risk, which was sup-
19
A n n u a l
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A B
ported by stable economical and political situation, steady central bank’s politics, smooth
Litas repeg process and improved economy (preliminary Lithuanian GDP rose by 5.7% in
VB Share in Lithuanian Interbank Money
Market. Deposits Operation in LTL, LTL mill.
VB
Other banks
10000
2001). For these reasons money supply increased by 24%, while time and savings deposits
rose by 30% last year, though government moved all its treasury accounts to the Bank of
Lithuania on July 1, 2001 and money supply was reduced sharply in interbank market.
Overall money market turnover increased by 48.3% and amounted to LTL 207 billion
last year. And Vilniaus Bankas money market operations turnover totaled LTL 80.4 billion
or 52% more than in 2000.
Vilniaus Bankas – the major market participant – deposit transactions in litas reached
8000
LTL 3,954 million or 31.2% of the market. Swap transactions turnover came to LTL 6,884.9
million or 32.7% of the market.
6000
Due to decreasing interest rates Vilniaus Bankas deposit portfolio yield in 2001 decreased
by 3.1% and stood at 2.27% at the end of the year; bank also made some heavy syndicate
4000
loans and credits repayments – bank covered more than LTL 0.5 bln of liabilities last year,
and refunded these positions with money market transactions. Therefore revenues from
deposits transactions amounted to LTL 25 million or 56.2% less than in 2000.
2000
Capital Market
0
2000
2001
In 2001 Vilniaus Bankas remained securities trading market leader, it was active in international markets too. Securities portfolio increased by 11.3% to LTL 916.9 million from
LTL 824 million in 2000. Portfolio structure was significantly changed as interest rates
dropped and issuers’ risk increased due to global slowdown.
Vilniaus Bankas earned LTL 12 million from securities trading, 2.2 times more than in
2000. Interest revenues came to LTL 54.8 million or 42% more than 2000. Securities trading
turnover amounted to LTL 1.9 billion.
VB Securities Portfolio, %
Stocks
Treasuries
Vilniaus Bankas turnover on Lithuanian treasuries trading was biggest in 2001 and
amounted for 71% of all trading in securities. Demand on treasuries remained high and
that was the main reason of yields falling - 1-year maturity treasuries slipped by 3.53% and
3-year bonds yield reduced by 3.19%.
Bonds
100
Vilniaus Bankas persisted its market maker position on trading with Litas nominated
80
treasuries - it has done 27% of all transactions in primary market and 52% on secondary. At
the end of the year 2001, treasury portfolio amounted to LTL 840,9 million with the average
60
yield to maturity of 7.78%.
40
debt market, where turnovers totaled LTL 527.4 million or 27% of all bank’s security trading.
Trade portfolio at the end of the year 2001 reached LTL 12 million (LTL 262 million on
20
30 12 2000). As result trading income reached LTL 8.2 million and received LTL 7.8 million
as accrued interest.
While restructuring securities portfolio, Vilniaus Bankas actively traded on international
0
2000
2001
In 2001 was very active local corporate debt securitization. Lithuanian Telecom (LTL 150
million 3 year eurobonds), Lithuanian Gas (EUR 30 million) and Lithuanian Energy (LTL 10
million short term securities) made successful bonds issues.
20
A n n u a l
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VB Interbank Deposits Portfolio
by Currencies (31 12 2001)
Debt Portfolio
by Currencies (31 12 2001)
58%
63%
12%
38%
23%
2%
2%
2%
SPOT Turnover, LTL mill.
VB share
Market
Vilniaus Bankas
140000
USD
Treasuries in Litas
EUR
Treasuries in currency
LTL
Other debt sucurities in currencies
Other
Other debt sucurities in Litas
60%
120000
100000
40%
80000
Foreign Exchange
32%
60000
22%
40000
20%
Vilniaus Bankas foreign exchange turnover increased by 33% over the year 2001 (from
LTL 50.7 billion up to LTL 67.6 billion). Such sharp increase was caused by markedly
increased amount of trades with financial institutions. Turnover with financial institutions
increased by 50%, while turnover with clients increased by 9%.
20000
By product, the largest share of FX turnover took spot trades (53% from 72% in 2000).
0
2000
2001
0
Derivatives Turnover, LTL mill.
VB share
Market
Vilniaus Bankas
50000
60%
The spot turnover totaled LTL 35.6 billion. The total of swap turnover last year reached
LTL 31.3 billion (up by 135% from LTL 13 billion) and made 46% of the Bank’s FX turnover
(26% in 2000).
In spite of decreased turnover of spot trades Vilniaus Bankas earned LTL 44 million
profit form FX operations (LTL 40 million in 2000). LTL 12 mln from that amount were
made from USD trade, LTL 28 million were made from euro zone currencies trade and
LTL 4 million were made from trade in other currencies.
51%
40000
45%
40%
30000
20000
20%
10000
0
2000
2001
0
21
A n n u a l
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B A N K A S
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Brokerage
In 2000, Vilniaus Bankas maintained leading position trading in securities and over the
year it processed 11,587 client’s orders and had 30.67 % (LTL 515.4 million) market share in
VB Share in Lithuanian Brokerage Market
by Products, LTL mill.
Total (24 Brokerage Companies)
equity trading on National Stock Exchange of Lithuania and 39.43% (LTL 789.5 million) in
fixed income instruments trading, respectively. The total market volume amounted to LTL
1.305 billion and market share as 35.43%. Over the year 2001 the Vilniaus Bankas generated
gross incomes in amount of LTL 1.07 million from securities trading.It would be reasonable
to stress the participation of VB in the few most significant transactions such as the private
placement of LTL 150 million eurobonds of Lietuvos Telekomas nominated in Litas as well
VB Brokerage
4000
as the assistance to the Danish Brewery Group acquiring the control stake of 86.6 % in the
third largest brewery Kalnapilis in October.
3500
3000
Securities Services and Custody
2500
Securities Services and Custody Department (SSCD) has had some structural changes
2000
1500
35%
1000
500
0
types of clients: global custodians, investment banks and funds, local banks, companies,
private investors, etc. The number of private individual customers at the end of 2001 has
39%
31%
Shares
T-Bills
in the year 2001 that allowed to spur custody activities and to expand its customer base.
SSCD operates as a separate unit within Vilniaus Bankas and provides services to different
Total
reached 25.5 thousand (21.7 thousand at the end of 2000), business clients almost 1.2
thousand (about 1 thousand at the end of 2000). Net service charges during the year 2001
went up more than two times and reached LTL 1.5 million.
Securities Safekeeping and Custody Services
Highly qualified experienced SSCD team maintaining the long-term relationship and
commitment to the clients assures strong leading position in the market. Ranking of Lithuanian securities market intermediaries by value of securities under safekeeping with Central Securities Depository of Lithuania, as of 31 December 2001, was as follows:
Central Securities Depository of Lithuania, LTL mill.
3500
3000
2500
2000
1500
1000
500
0
Vilniaus
Bankas
FBC
Finasta
LTB
FBC
Sinkus
FBC
Kapitalo
srautai
LZÚB
FBC
Suprema
Hansa-Ł
FBC
bankas Jungtiné
maklerio
kontora
Other
Source: Central Securities Depository of Lithuania
In addition, significant part of Vilniaus Bankas and its clients’ international securities
(over LTL 500 million as at the end of 2001) was held under safekeeping with the world’s
largest securities clearing and settlement system Euroclear Bank.
22
A n n u a l
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Issuer Services
In August 2001 Issuer Services Unit was established within SSCD in order to provide
full range of securities issue related services: shareholders administration, securities income administration, documentation of new issues, regulatory reporting, consultancy services, etc.
As of 31 December 2001, 13 public stock companies (total nominal value of securities
more than LTL 1.5 billion) from different economy’s sectors have chosen Vilniaus Bankas as
a provider of issuer services.
RISK MANAGEMENT
General Risk Management Policy and Responsibilities
The operations of Vilniaus Bankas and its subsidiaries are based on the Lithuanian legislation. The Bank of Lithuania and other regulators have determined the minimum requirements for managing risks rising from financial activities. Operations of Vilniaus Bankas
are determined in its Articles of Association following the best banking practices, and are
guided by generally accepted risk principles.
The risk management of Vilniaus Bankas and its subsidiaries is centralized at the Head
Office to ensure the implementation of consistent risk management policies at all levels of
the organization. The main types of risk resulting from the operational activity of Vilniaus
Bankas are: credit risk, liquidity risk, market risk and operational risk.
The Bank’s management delegated the responsibility of risk management to the following committees:
1. Asset-Liability Management Committee (ALCO)
2. Credit Committee.
The ALCO is responsible for the following areas of activity:
1) capital management
2) profitability management
3) asset-liability management, asset allocation
4) liquidity risk management
5) funding strategy
6) market risk management and measurement methods
7) credit portfolio risk management.
The Credit Committee is in charge of the development and implementation of the Bank’s
credit policy and responsible for the management of the credit risk resulting from selling
loan products as well as for the adoption of resolutions on loan products exceeding the
business area limits established by the Management Board.
Credit Risk
The Counterparty or credit risk is the risk of potential losses due to inability of any of
Vilniaus Bankas Group counterparty to meet its obligations towards the Group.
23
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The following credit portfolio regulatory requirements and internal limits are applied:
• maximum exposure to a single borrower shall not exceed 25% of the Bank’s capital
and total sum of carried risk of the companies when individual risk of each company
is larger than 10% of the Bank’s capital shall not exceed 800% of the Bank’s capital
(regulatory requirement);
• related party lending shall not exceed 10% of the Bank’s capital (regulatory
requirement);
• credit exposure limits to a single sector of economic activity (internal limits).
The Bank’s credit policy is based on a prudent approach, consistent with sound
counterparty risk management practices. During 2001 the process of integration with SEB
has accelerated in terms of adaptation of SEB credit policy and risk measurement standards to the Lithuanian market conditions as well as involving the Baltic Credit Committee
and SEB Group Credit Committee into the credit decision making process with respect to
credit matters of compositions, remission of claims, take-over and disposal of assets.
The prudent credit policy has been continued and proactive measures have been undertaken on problematic and doubtful loans. It resulted in the improvement of the loan
portfolio performance: the ratio of non-performing loans (risk class 4 and 5) to loan portfolio decreased significantly to 5.5% as of 31 December 2001 comparing with 9.4% at the
beginning of 2001. Provisions decreased respectively to LTL 110 million or 4.7% of loan
portfolio at the end of 2001 from LTL 138 million or 6.3% in the beginning of the year.
Simultaneously the gross value of the credit portfolio increased by 11.11% to LTL 2.8 billion.
Taking into consideration the re-peg of national currency starting from 2nd of February,
2002, the Bank has been undertaking the effective measures in advising its credit customers to match the currencies of corporate earnings and liabilities already in the beginning of
the year 2001. Moreover, the most of the significant credits already include “currency buffer”
for amortization of the possible exchange rate fluctuations over the maturity of credits.
During the year the Bank has been developing the counterpart default probability model
in the framework of the New Capital Accord 2004.
Liquidity Risk
The liquidity risk is the risk that the Bank will be unable to meet its payment commitments without delay or may not be able to finance or liquidate its assets in a given period
at acceptable cost.
The Bank’s policy is to maintain the liquidity level sufficient to meet its on-going financial obligations, keep sufficient level of obligatory reserves with the Bank of Lithuania, maintain higher than required liquidity ratio established by the Bank of Lithuania, while having
payment capacity for unexpected events. Historically being conservative, the Group has
always had a strong liquidity position keeping a high liquidity ratio: short-term assets to
current liabilities 47.15% and 42.95% respectively (regulatory requirement minimum 30%)
at the end of 2000 and 2001. The principal instruments of liquidity risk management are
money market deals, repos, FX forwards and swaps, long-term funding and collateralized
24
A n n u a l
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B A N K A S
A B
short-term borrowings from the Bank of Lithuania. Being member of the SEB Group, the
Bank has the substantial credit line facilities as additional liquidity source from its parent
bank and other financial institutions.
The liquidity risk is managed by constant monitoring of the Bank’s liquidity profile,
compliance with external requirements and internal liquidity risk limits and by analyzing
the on balance sheet and off balance sheet item structure by their maturity, currency as
well as concentration of funding sources. For extraordinary events, the Bank has developed a contingency plan, ensuring that even very strained liquidity situations can be handled in a satisfactory manner.
The cash flow method is used as a principal tool and is based on projections of shortterm cash flows (up to 1 month) and long-term cash flows (up to 1 year). The method is
based on constant monitoring of the actual cash flows and the projections based on assessment of stability, durability, sensitivity of the Bank’s assets and liabilities. The Bank has
established the internal limits determining the projected negative cash flows within the
corresponding period of time. Additionally the liquidity ratios are used for the purpose of
the assessment of the current liquidity position of the Bank.
Market Risk
The market risk is the risk of unexpected losses arising on the Bank’s assets, liabilities
and off-balance sheet items following adverse changes in interest rates, foreign exchange
rates and equity prices. According to the risk factors the market risk is divided into the
following risk categories: foreign exchange risk, interest rate risk, equity price risk.
The Risk Management Department in cooperation with SEB is adapting the Daily Value
at Risk model covering all market risks that is implemented in SEB. The zero coupon yield
curve model based on Nelson Siegel method was introduced in 2001. The curves will be
used to compute the market interest rate volatilities and correlations.
Due to the luck of liquidity in the Baltic financial markets the standard VaR methods
require the certain liquidity adjustments for the assurance of proper measurement of market risk positions of the Bank. However, the Bank has employed the standard VaR technology for some components of the market risk having adequate liquidity.
The following instruments are used for market risk management: money market deals,
long term funding facilities, FX derivatives (swaps, outright forwards).
Foreign Exchange Risk
Foreign exchange risk arises then the Bank has an open foreign currency position. In
accordance with current requirements of the Bank of Lithuania the total open currency position can’t exceed 25% and single open currency position 15% of the Bank’s capital base
calculated in accordance with the capital adequacy requirements.
In addition to the external requirements Vilniaus Bankas is managing the foreign exchange risk by establishing the following internal limits of the acceptable risk level as of
the end of 2001:
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• total open currency position 25% of the capital
• single open currency position of:
• USD - 15% of capital
• Other hard currencies – 5% of capital
• Soft currencies – 1% of capital
Due to re-peg of national currency litas from USD to EUR starting from February 2,
2002 the ALCO has approved in January 2002 the new open EUR position limit of 15% of
capital base instead of USD.
The foreign exchange risk is measured by applying the Value-at-Risk concept based on
statistical methods that express the maximum potential loss that can arise at a chosen level
of probability during a certain period of time. The Bank has implemented the variance/
covariance method allowing to measure the daily VaR on of FX positions. For daily VaR
calculations the Bank has chosen a 99% probability level and one day time horizon. As 31th
of December, 2001 the Bank has had the following daily VaR on FX positions:
LTL thous.
Sum of Stand Alone VaR
Correlated VaR
The Bank
The Group
174
65
225
104
Historical data are based on 90 days for volatilities and correlations. In addition to the
daily VaR, stress test is used to cover extreme events that are not taken into account by VaR
calculations.
Interest Rate Risk
The interest rate risk is one of the most important risks arising in the Bank’s activity. It
occurs due to the fact that reprising periods of assets, liabilities and off balance sheet items
do not coincide. The Interest rate risk management is implemented by analyzing, forecasting the market interest rates and managing the mismatch between the assets and liabilities
by reprising maturity. The interest rate GAP analysis is performed by grouping assets and
liabilities and off balance sheet items by reprising maturity and main currencies.
The Bank applies the interest rate risk method allowing to measure the Bank’s sensitivity to interest rate changes by computing the impact to yearly net interest income (called
∆NII) and the net effect to the market value of shareholders equity (called delta 1%) in case
of parallel shift by percentage point in the yield curve. As of December 31, 2001 the Bank
had the following interest rate sensitivity ratios: ∆NII = LTL 5.5 million, delta 1% = LTL
33.1 million. The Bank’s has established the limits defining the acceptable level of interest
rate risk that are monitored on a regular basis.
Equity Price Risk
The equity price risk is managed by setting the limits establishing the acceptable level
of the equity price risk estimating the possible losses due to volatility of market prices,
defining the equity portfolio structure. Seeking to estimate the current and projected share
value the equity research is performed on a regular basis. In 2001 the Bank was exposed to
the equities listed on the National Stock Exchange. The Lithuanian equity market can be
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treated as illiquid. The standard VaR technology is not applicable to many of equity positions
due to lack of liquidity in the market. The Bank will continue the development of a methodology enabling to ensure the proper measurement of daily volatility on equity positions.
Operational Risk
The operational risk is the risk of unexpected losses or reduce of confidence in the
Group due to errors, fraud and other illegal acts made and/or committed by the Group’s
management and staff, inadequate internal procedures, information systems and technologies and insufficient internal controls at the Group.
The objective of the management of this type of risk is to ensure the knowledge of the
management about the errors, fraud, excess of authorities made by employees, inadequate
procedures and instructions documenting the processes within the Group, inadequate
automation and internal control system, seeking to adopt necessary decisions that would
ensure stable activity of the Group and would allow to avoid unexpected losses.
The operational risk is managed by:
• ensuring proper internal control system;
• segregating the functions related with acceptance of financial obligations and payment of funds and accounting of asset and liabilities;
• assuring that all transactions made by the Group would be performed in compliance
with procedures and given authorities approved by the management;
• regulating the organizational structure of the Group, i.e. clearly defining the functions and responsibility of the employees;
• regulating the accounting procedures;
• ensuring that new products/financial instruments of the Group will be applied having approved all necessary sale, accounting procedures and valuation methodology
and are reconcilable with the corresponding risk management policies and procedures valid in the Group.
Information Technologies
Lotus Notes Document Administration System
Vilniaus Bankas developed most powerful in Lithuania paperless document
administration system based on Lotus Notes technology. Last year saw the future
development of the system – infrastructure and functionality. All branch offices are
interconnected into WAN and every employee may access important information
immediately. Project started to interconnect Customer Service outlets. Mobile work places
developed enabling to access Lotus Notes Data Bases by Notebooks and mobile telephone
connection. E-mail and e-fax integrated into LN infrastructure and incomming and local
mail is hadled the same way – by Lotus Notes technology. Paper document scanning and
archiving technology developed. Fax integration into LN infrastructure. All incomming
documents are scanned, archived on computer hard disk and distributed to recipients via
Lotus Notes infrastructure.
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In 2001 Correspondence multi-server architecture, Assignment/substitution module,
Reporting BIS, OTD, Platon, Correspondence modules, Internal service request modules
were developed and implemented.
Future plans for 2002 include development and implementation of Central management
and system administration, Customer feedback analysis, non-BAIS information distribution
in LN infrastructure (Bank reports, payment card account statements), BAIS archiving and
Customer feedback analysis modules.
Voice over IP
The Bank’s branch offices of Karoliniökés, Utena, Alytus as well as Elektrénai, Visaginas,
Varéna, Druskininkai sub-branches voice communications are routed via IP. By this
substantial decrease of long distance call expenses was reached. Project progress is
temporary suspended due to Lithuanian Telecom changing phone numbering system in
Lithuania. Project will be resumed as soon as the Lithuanian Telecom will complete the
process of renumbering.
Payment Cards/ATM/POS Network
Payment Card IT system upgraded to a new platform to handle up to 1 mln. cards. 31
new ATM installed. New ATM communication protocol TCP/IP tested. Migration
procedure from X.25 to TCP/IP protocol developed. Electronic transaction journal installed
in all ATM’s. New POS authorisation protocol ISO8583 implemented. Pilot project for
authorising payment cards via cash registers completed. Project with MKS company for
local switching and clearing was in the final stage of testing. New security module HSM,
RACAL 7100 implemented in IT system “Online”, handling payment authorisation
functionality. New e-commerce protocol e-DHI implemented in IT system “Online”. Delphi
Payment Gateway interfacing with IT system “Online” was brought to the final stage of
testing.
VB Internet@s
VB Internet@s project is listed among most successful projects of Vilniaus Bankas and as
a success story of Hewlett Packard company. Started in 2000, launched in September 2000,
this project is at full speed of adding new functionality, upgrading computing power and
handling more and more customers. More than 50.000 customers enjoy VB Internet@as
services. Utility/bill payment modules were developed and implemented. Information
interchange interface with the Department of Statistics was developed and implemented.
Interfaces with internal VB IT systems such as Data Warehouse were developed as well.
Call Centre /Help Desk/ Central Management System
Help desk services launched for internal customers late spring of 2001. Lotus Notes
monitoring system is in the final stage of testing. VB Internet@s system monitoring module
was developed and implemented. Help desk for customer Incomming call’s module
implementation is in progress. HP Open View monitoring system modules integrated for
VB Internet@s server monitoring. New IVR functionality was developed.
28
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Other Projects
New National clearing system implementation. Project was not on the list for 2001, but
was initiated by the Bank of Lithuania (the National Bank) to modernise domestic clearing
system.
Euro project: Vilniaus Bankas IT systems were enhanced to handle new currency, the
euro. Introduction of the euro in Vilniaus Bankas was void of any problem.
Core banking application IT system Platon modifications related to new Vilniaus Bankas
chart of accounts were implemented in 2001. New functionality was added to Core system
Platon: new version of direct debit function, payment collection module, new version of
credit accounting modules were developed and implemented, international payment
modules were modified, new Bank accounts developed.
Firs version of Cash pooling modules were developed.
New version of Account manager’s IT system developed and implemented. System is
centralised and enables data access from any Vilniaus Bankas account manager work place..
New functionality added to VB Leasing IT system: direct debit and closing turnovers.
Final implementation of Swift Alliance Access interface completed, including Branch
offices.
Staff of Vilniaus Bankas Group, 31 12 2001
Human Resources
Vilniaus Bankas Group
People are the most important resource in Vilniaus Bankas as it is in all leading successful companies. By the end of 2001, Vilniaus Bankas had 1,783 employees.
1905
Vilniaus Bankas
1783
Leasing
VB Lizingas
61
Venture Capital Management
VB Rizikos kapitalo valdymas
3
Comparing to the same period of the previous year, number of employees increased by
97 – Vilniaus Bankas is still growing and strives to attract employees with leading competence. Statistics of our staff proves high level of our employees’ education.
Number of Staff, 1997 - 2001
2000
1686
Investment Management
VB Investicijù valdymas
5
1500
1000
Corporate Finance
VB Vilfima
1783
871
938
1031
1997
1998
1999
11
500
Life Insurance
VB Gyvybés draudimas
42
0
2000
2001
Our staff is quiet young, but also respects and uses experience of elder generation,
which took part in establishment of the bank and spent their efforts for it’s success.
What is the goal of Vilniaus Bankas human resources policy in 2001 and further on? It
might be defined in two concepts: continuous development and customer focus. Seeking
to put the policy into life, HR department has applied several instruments: performance
29
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Number of Employees by Age and Sex, 31 12 2001
Duration of Employment in the Bank
Men
1000
Women
400
800
400
350
293
300
600
319
295
250
200
400
150
162
163
91
100
60
50
200
0
> 29
30-39
40-49
50 <
0
up to
3 years
3-5 years
more than
5 years
appraisal, long term training programms, employee satisfaction survey, work climate
surveys.
VB Long Term Training
According to annual performance appraisal results, activity of 84% of VB staff was
54%
21%
estimated as meeting requirements. They are “good performers”. We have 13% of “potential stars”, whose activity exceeds expectations and 3% of our staff is “stars” with outstanding
performance. This estimation was made by the managerial staff of VB. Training programs
designed for “good performers” develops professional knowledge and sales skills; training
goals for “potential stars” and “stars” adds personal growth.
14%
11%
Training programs for managers has faced upper level. Mainly it involves skills of
teambuilding, team leadership and motivation of employees’.
Since Client focus is one of the most important strategic points of the Bank and human
Products and services
resources policy, the weight and prestige has been moving from Head office towards front
office, which is mostly in our branches.
Sales and customer service
Staff by Education
Management
Other
7%
2%
11%
Number of Staff
23%
19%
61%
77%
Secondary school
At University
Higher secondary school
Head office
College graduates
Branches
University graduates
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Sponsorship and Donation
The Bank’s sponsorship/donation areas traditionally include health care, secondary and
higher education, orphanages and foster homes, the most important cultural events such
as yearly international music festival “Vilnius Festival 2001”.
1
World-famous conductor Valerij
Gergiev (St. Petersburg Mariinsky
Theatre).
2
3
4
The violin virtuoso, Maksim Vengerov.
5
Donation grants to children in foster
homes and orphanages.
6
6. Bank’s personal computers as gifts
for secondary school and college
classes.
1
2
3
American jazz legend, Herbie Hancock.
Opera The Masked Ball (Un Ballo in
Machera) by G.Verdi.
4
5
6
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Subsidiares
VB Leasing (VB Lizingas)
The year 2001 was successful both for the company VB Lizingas and the whole leasing
market in Lithuania. The growth of country’s export, industry production and consumption trends as well as sharp decline of interest rates during the year has returned a considerable increase of the demand for financial services. Therefore leasing, being one of the
most simple and thus, efficient business financing options, showed an impressive growth
in volumes.
The total leasing portfolio of VB Lizingas has increased by 56% to LTL 420 million thus
over-striping the growth rate of the market. The number of new contracts signed has doubled while the value of the contracts has increased by 104% to LTL 430 million. The best
performance showed leasing of the conventional assets, such as trucks, cars, production
equipment and the real estate.
The operating result however was negatively affected by the higher than expected provision level and therefore the Company have suffered a pre-tax loss of LTL 0.4 million for
the year 2001.
During 2001 the company has devoted lots of energy and efforts for further introduction and development of new products and services. The new partnership project PATS
VBL Lease Portfolio
as of 31 December 2001
(excl. Cross-border Lease)
was introduced that enables the customer to lease a new car at the show-room of the dealer
with no direct contacts and procedures with VB Lizingas. The new website of the company
with more user-friendly navigation simplifies and spurs the search for required information and allows the client to fill-in the leasing application. While working in close coopera-
28%
23%
tion with the partners of the company, VB Lizingas has participated in 13 joint marketing
or sales - promotional campaigns for leasing cars, trucks, office and production equip-
16%
ment.
The flexibility, promptitude and focus on quality of the services allowed the company
22%
5%
1%
5%
to remain as one of the leading leasing companies in the country with significant market
share of 39%. In 2001 there was a strong increase in demand for operating lease service in
Lithuania. The trend has also resulted in VB Lizingas’ operating lease portfolio growth by
50%. While expecting operating lease activity to boost in the nearest future, the company
intends to play an important role in this business with the main goal of being the leading
operating lease provider in Lithuania.
Trucks
Cars
Production equipment
Real estate
Shop equipment
Agricultural equipment
Other assets
The important event that took place in mid 2001 was the change in the company’s top
management. The new management team paid great attention on these three strategic
issues: quality (both services and lease portfolio), new products and services and efficiency.
More considerable efforts are foreseen as far as the cooperation with Vilniaus Bankas
branches, regional representational offices and informational support of the society are
concerned.
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2001
2000
Change, %
2,913
1,444
101.7
The value of new contracts signed, LTL mill.
430
211
103.8
Income, LTL mill.
45.9
33.2
15.7
2.2
1.5
50.7
(1.3)
0.3
-
31 12 2001
31 12 2000
Change, %
Financial lease portfolio
378.6
242.2
56.3
Operating lease portfolio
41.6
27.8
49.6
Total lease portfolio
420.2
270.0
55.6
Cross-border lease
14.1
12.0
5.0
482.3
301.1
60.2
Number of contracts signed
Gross profit before provisions, LTL mill.
Net profit, LTL mill.
in LTL mill.
Assets
VB Venture Capital Management (VB Rizikos kapitalo valdymas)
Year 2001 for VB Rizikos kapitalo valdymas (Venture Capital Management) was profitable, though the profit of two hundred fifteen thousand did not meet our expectations.
Due to general slow-down of the economy in European markets, and in particular in construction industry, acquisition investments were suspended, which in turn resulted in suspension of our share sale in Júrés medis AB. And sales of these shares were supposed to
generate the result of 2001. We expect that profit bearing shares of Júrés medis AB shall find
their buyer already in the year 2002.
The new projects implemented in the beginning of the year, i.e. investment into prefabricated house factory Nordic Hus & Hytter UAB (previously Linoco UAB) and into the
wholesaler of drugs and medicals Litfarma ir partneriai UAB, are successfully strengthening their positions in the market. The depth of our participation in these projects is 49% of
the capital in Nordic Hus & Hytter UAB, and 27.2% in Litfarma ir partneriai UAB. Both investments are long term and fully conform to the requirements set for venture capital
projects. By the end of the year our portfolio was supplemented with shares of Vievio
paukötynas AB.
In the second half of the year VB Rizikos kapitalo valdymas sold its share in Panevéûio
pienas AB and Info-tec UAB. Sale of these shares was not very profitable. By the end of the
year the decision was made to sell shares in Malsena AB, based on the agreement signed
with Danish company. Successful completion of this deal (share sales agreement was signed
in 2002) would provide significant profit.
The future plans of our Company – further diversification of investment portfolio,
searching for promising projects and seeking high returns of the portfolio.
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VB Life Insurance (VB Gyvybés draudimas)
VB Gyvybés draudimas is one of the most fast growing life insurance companies of the
country. The third year in insurance business Vilnius Bankas daughter company has reached
the biggest and working longer in insurance market companies.
In 2001, the number of new policies issued by VB Gyvybés draudimas was 5,176 and net
written premium was LTL 11.3 million. The company earned LTL 644,000 in annual profit.
Now VB Gyvybés draudimas is the second largest life insurance company according to
the number of new policies issued.
Company offers worldwide recognized and popular insurance products. VB Gyvybés
draudimas has expanded rapidly the scope of provided products, starting from four insurance products in 1999 now the company is offering 10 insurance products to the clients, i.e.
all the main products that exist on the life, health and personal accident insurance market.
VB Gyvybés draudimas was the first among all the life insurance companies of Lithuania
to offer unit-linked life insurance to its clients. Unit-linked life insurance premiums represent 85% of the total written life insurance premium of the company.
Insurance products, such as Unit-Linked Group Life Insurance and Health Insurance,
aimed at corporate clients are quickly gaining popularity. In 2001, 17 companies in the
country bought unit-linked life insurance for their employees, whereas health insurance
was enjoyed in 64 companies.
The biggest VB Gyvybés draudimas insurance benefits: life insurance – 164 000 LT, personal accident insurance - 300 000 LT, critical illness insurance – 20 000 LT.
Since its establishment VB Gyvybés draudimas has been co-operating with Swiss Re, which
is the largest and most reliable reinsurer in the world.
At the end of 2001 the company had more than 17.5 thousand clients.
2000
2001
4.6
11.33
Number of clients (policies in force)
7,181
17,560
Insurance benefits paid (LTL mill.)
0.47
0.94
-697.3
664.4
Premium written (LTL mill.)
Profit (LTL thous.)
VB Investment Management (VB Investicijù valdymas)
VB Investment Management, Vilniaus Bankas subsidiary, is engaged in investment management and consulting activity.
With about LTL 28.648 million at the end of the year of assets under management (appr.
- EUR 8.304 million), the SEB Group is the largest asset manager in Lithuania. The VB
group asset management arm, VB Investment Management (VBIM), offers investment
products for institutional, corporate and retail clients, ranging from low-risk to equity based
portfolios Year 2001 was the first fully operational year for VBIM. Despite of turmoil in
international capital markets in year 2001 our company faced strong growth of asset under
management. During the year 2001 VBIM assets under management rose from LTL 7.860
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to 28.648 million, i.e. 3.64 times. Especially significantly rose private clients assets - from
LTL 1.262 to 13.563 million, i.e. 10.75 times.
A very important VBIM business part in year 2001 was preparation for SEB Investment
funds public distribution. VBIM was the main driver of this project within VB group. VB
obtained Lithuanian Securities Commission licenses on public distribution of 4 Luxembourg based SEB IF in the beginning of December of 2001. Public distribution of SEB IF will
be started in the beginning of 2002.
In 2001 VBIM has been reached main goals – creation and development of performance
standards and rapid growth of assets under management and stable client assets inflows.
Successful VBIM performance in year 2001 has created good background for fulfillment
of very ambitious task in year 2002. Essential result of 2001 is that VBIM has very successfully entered Lithuanian market and as a result took definitive leader position.
VB Vilfima
VB Vilfima, the leading corporate finance team in Lithuania, advising on mergers, acquisitions, capital raisings and privatisations offers the highest standards in professionalism,
competence and confidentiality.
In 2001 the company has upheld its leading position by participating in privatisation
of the Lithuanian gas company Lietuvos Dujos, major on-going privatisation in Lithuania;
leading the advisory consortium on long term lease of the largest district utility of the
country – Vilnius District Heating Company.
During 2001 local market showed demand for new services such as venture capital
financing and LBO. VB Vilfima entered the buyout business by completing Senukai Association LBO, executed a few more successful transactions.
In July VB Vilfima received Euromoney Award for Excellence as the best M&A house in
Lithuania.
Birûù APB
Senukai Association
Debt restructuring &
sale to strategic investor
LBO
Advisor to
Vilniaus Bankas AB
2001
Vilniaus Öilumos Tinklai
SPAB
Lietuvos Dujos AB
Privatisation
Rehabilitation
Advisor to shareholders
of Senukai Association
2001
Leader of advisory
consortium
2001-2002
Member of
advisory consortium
2000-2002
35
A n n u a l
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REVIEW OF BUSINESS ENVIRONMENT
A B
Review of Business Environment
Updated Economic Forecasts
Taking into consideration the prevailing trend of economic slowdown in Western Europe, Northern America and other countries, the International Monetary Fund (IMF) has
made downward revisions of its economic growth forecasts for the year 2002. The forecast
for the European Union (EU) has been downgraded from 2.2% to 1.4% and for the global
economy – from 3.5% to 2.4%. Due to the possible impact of economic difficulties in the
world, the Ministry of Finance is of the opinion that in the year 2002 the growth of Lithuanian economy will be slower than that projected in the spring of 2001. The growth forecasts
for the years 2001 and 2002 were updated in November 2001.
The growth of real GDP in the year 2001 is expected to come to 4.8% and in the year
2002 – 4.0% (the previous forecasts announced in April 2001 for the year 2001 made up
3.7% and for the year 2002 – 4.7%). It is projected that the figure of nominal GDP in 2001
will amount to LTL 48.010 billion and in 2002 – LTL 51.406 billion. In 2003, the real GDP
growth is forecasted to reach nearly 4.9% (the former forecast – 5.1%) and in 2004 – about
5.3% (the former forecast – 5.5%). The previous forecast for the average growth of real GDP
in a 5-year horizon was not revised and stands at 5%.
The Ministry of Finance precisely projected the average inflation rate in 2001 that came
to 1.3%. The forecasted change in the level of prices in the year 2002 was revised from 2.1%
to 2.6%. In 2003, the rate of inflation is expected to stand at 2.1% and in 2004 – 4.2% (instead
of the earlier projected 2.2% growth during 2003- 2004).
The Department of Statistics has expected that real GDP will grow by 4.2-4.5% in the
year 2001.
The Bank of Lithuania has projected a 4.6% increase in real GDP in 2001. The respective GDP forecast for 2002 is a 4.3% rise. The rate of inflation projected for 2002 comes to
2.5%.
In the opinion of Vilniaus Bankas analysts, real GDP will grow by 5.0% in 2001, by
4.5% in 2002 and by 4.8% in 2003. It is worth noting that the economists of Vilniaus bankas
were quite close in predicting inflation for the previous year. Their forecast for inflation at
the end of December 2001, as compared to December 2000, reached 1.8%, whereas the
actual figure was 2.0%. Over the year 2002, the price level is expected to increase at a rate of
2.8%. The forecast for inflation in 2003 is the same as in 2002.
The European Commission considers that in 2001 the Lithuania’s GDP will grow by
4.5% and in 2002 – by 3.5%. The average inflation rate in 2001 was forecasted fairly well, i.e.
1.4%, while the actual result came to 1.3%, as it is already mentioned above. In 2002, the
average inflation rate is expected to reach 2.8%.
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The European Bank for Reconstruction and Development (EBRD) forecasts the real
GDP growth of 4.0% in 2001.
The IMF announced its forecasts for the growth of Lithuanian economy in World Economic Outlook issued in mid-December of last year. The projection for the real GDP growth
in the year 2001 stood at 3.9% (the earlier forecast – 3.6%). In 2002, the Lithuanian economy
was expected to grow not so robustly as expected earlier: the real GDP growth was forecasted to make 4.3% instead of the formerly projected 4.7%. In its evaluations of Lithuania’s economic growth announced in January 2002, the IMF revised the real GDP growth
forecast for 2001 up to about 4.5%.
The latest edition of Baltic Outlook prepared by SEB indicates that Lithuania’s GDP
growth will make 5% in 2001 and 4.5% in 2002. The average rate of inflation in 2002 is
forecasted to come to 2.5%.
Forecasts for Lithuanian Economic Growth
(Growth of real GDP and inflation)
GDP
Ministry of Finance of
the Republic of Lithuania
2001
2002
Average
inflation rate
2002
4.8%
4.0%
2.6%
4.2-4.5%
4.6%
4.3%
2.5%
Vilniaus Bankas AB
IMF
5.0%
4.5%
4.5%
4.3%
2.8%*
SEB
European Commission
5.0%
4.5%
4.5%
3.5%
2.5%
2.8%
Department of Statistics
Bank of Lithuania
* Year-on-year change as of December 2002
GDP Increased
It looks like the above-stated forecasts for economic growth in the year 2001 are overly
pessimistic. According to the preliminary estimate of the Department of Statistics, GDP at
constant prices showed an annual increase of 5.7%. Nominal GDP amounted to LTL 47.8
billion. During the 1st quarter of 2001, real GDP grew by 4.4%, in the 2nd quarter – by 5.7%,
in the 3rd quarter – by 5.0% and in the 4th quarter – by 7.9%.
The increasing outputs of industrial, construction and trading activities were the main
determinants of GDP growth in 2001. The sector of gas, water and electricity supply also
demonstrated an improvement. Agriculture had negative influence on the GDP growth, as
the output of agricultural products was lower than that in the year 2000.
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Real GDP Growth, %
2001
1999
2000
10
5
0
-5
-10
IQ
II Q
III Q
IV Q*
* GDP growth in the 4th quarter of 2001 is a preliminary estimate.
Inflation Staid Negligible
The average annual inflation rate in the year 2001 made up 1.3% (in 2000, the average
annual inflation was 1.0%), whereas year-on-year inflation as recorded at the end of December stood at 2.0%.
In 2001, inflation was mainly predetermined by rising prices of both communication
services (an annual increase of 21.1%) and food products and beverages (an annual increase of 6.2%). In contrast, transportation services went down in price by 10.9% and wearing apparel and footwear – by 2.9%.
Inflation, %
2000
2001
2.0
1.5
1.0
0.5
0.0
-0.5
-1.0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Unemployment Continued to Be High
At the close of December 2001, the unemployment rate was 12.9%. The average unemployment rate made up 12.5% (in 2000, 11.5%). It is projected that in 2002 unemployment
should go down to 11.3%.
38
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REVIEW OF
BUSINESS
ENVIRONMENT
Business
Environment
A B
As of 1 January 2002, the number of the unemployed in the country totalled 224 thousand (according to the data of Labour Exchange). Starting from 1 November 2001, the unemployment rate is being estimated according to the new reduced labour force figure submitted by the Department of Statistics.
Unemployment Rate, %
2000
2001
15
10
5
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Retail Trade Grew
According to the data of the Department of Statistics, the volume of retail trade during
January – November 2001 increased by 6.8% and amounted to LTL 12.538 billion.
The turnover of restaurants, bars and other catering companies in the same period
totalled LTL 321.9 million (VAT not included) and, as compared to the respective period of
2000, showed a decrease of 0.9%.
Privatisation Proceeded
During the year 2001, the State Property Fund (SPF) sold 842 objects that were formerly
owned by the state or municipalities for LTL 468 million. In 2000, income from privatisation totalled LTL 901.5 million.
The sales deals of Lithuanian Shipping Company (LISCO) and of Lithuanian Savings Bank
signed with investors from abroad were the largest in the year 2001. Lithuanian investors
acquired companies sold for more than half of a million (in LTL) such as Vilma, Vilniaus
farmacijos fabrikas, Biosintezé, Sportas hotel, etc.
Industrial Production Sales Pointed Upward
According to the data of the Department of Statistics, in the year 2001, as compared to
the year 2000, the output of the entire industry (as measured in constant prices) increased
by 16.9% (in 2000, the respective figure came to 5.3%). The expansion of the oil processing
industry, namely, the output volumes of Maûeikiù nafta, was the main determinant of the
overall industrial growth. The output of Maûeikiù nafta constitutes almost one-fourth of the
Lithuania’s industrial output.
In 2001, as compared to 2000, the sales of the mining industry were by 37.0% higher,
the sales of the manufacturing industry – by 16.5% higher and the sales of the gas, electricity and water supply sector – by 16.0% higher.
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Business Environment
Shipping of Goods Declined
According to the Department of Statistics, in the year 2001, as compared to the year
2000, the flow of cargos by railroad and by waterways dropped, but transportation by
airways slightly increased.
In 2001, the volume of cargo transported by Lithuanian railways totalled 29.273 million
tons and was by 4.7% lower than in 2000. The volume of cargos loaded or unloaded into or
from seagoing vessels in 2001 came to 22.364 million tons. The number of loaded and unloaded ships summed 6,197, i.e. a decline of 6.0% as compared to the year 2000. Last year
the passenger and goods traffic by waterways showed a decrease of 36.3% as compared to
2000.
Transportation of cargos by air in 2001 totalled 3,303 thousand tons and increased by
0.9% as compared to the year 2000, whereas the number of passengers carried totalled 363
thousand and was by 6.0% higher than a year ago.
Foreign Direct Investment Went Up
Over nine months of 2001, foreign direct investment (FDI) in Lithuania went up by
11.5% (or LTL 1.075 billion) from LTL 9.338 billion as of January 1st to LTL 10.413 billion as
of October 1st. At the end of last year, FDI per capita reached LTL 2,983 (or USD 746).
Based on the data of the Department of Statistics, major foreign direct investors in
Lithuania are Denmark (LTL 1.882 billion or 18.1% of total FDI), Sweden (LTL 1.632 billion
or 15.7%), Estonia (LTL 1.058 billion or 10.2%), Germany (LTL 963 million or 9.2%) and the
United States (LTL 943 million or 9.1%). As compared to January 1st, 2001, Estonia’s FDI
almost doubled, though it is worth mentioning that this is mainly Scandinavian capital
flowing into the country through Estonian companies. FDI by Germany showed an increase
of 38.5%, respectively.
FDI mainly went into the sectors of: manufacturing – 26.8%, domestic trade – 20.4%,
financial intermediation – 19.2% and communication services – 15.4%.
Export Structure
(11 months of 2001)
10.5%
6.3%
9%
5.3%
16.3%
24.1%
28.5%
Foreign Trade Showed an Increase
During eleven months of 2001, as compared to the same period in 2000, the country’s
export growth was 21.3%, whereas imports showed an increase of 15.1%. Total export
volume during eleven months of 2001 reached LTL 16.979 billion, total import volume
amounted to LTL 22.683 billion, and trade deficit was LTL 5.704 billion.
Lithuania’s main export partners during January through November 2001 were the
United Kingdom (14.4%), Latvia (12.8%), Germany (12.8%), and Russia (10.5%), and main
import partners – Russia (26.0%), Germany (17.0%), Poland (4.9%), and Italy (4.2%).
Machinery and appliances
Chemical products
Transport equipment
Wood products
Textiles
Mineral products
During eleven months of 2001, the largest volume of goods was exported to the EU
countries (48.4% of total exports). The volume imported from this region (44.1%) was the
largest as well. Export to the CIS countries made up 19.0%, and imports - 30.2%.
An increase in exports to the EU and the CIS countries, as compared to January - November 2000, was, respectively, 22.5% and 43.3%. Imports from the EU went up by 16.7%,
and those from the CIS countries – by 10.5%.
Other
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The major share in the export structure, as before, was made up by mineral products
(24.1% of total exports), textile (16.3%), machinery, mechanical and electric equipment
(10.5%); the import structure was also dominated by mineral products (21.8%), machinery,
mechanical and electric equipment, video and high-quality audio equipment (16.6%), transport equipment (11.2%).
State Budget: Targets Attained
In 2001, the state budget income was LTL 6,344.789 million, i.e. 9.7% or LTL 563.5 million more than in 2000.
Import Structure
(11 months of 2001)
16.6%
9.4%
11.2%
1.3%
9%
21.8%
30.7%
Machinery and appliances
Chemical products
Transport equipment
According to the preliminary data of the Ministry of Finance, by the end of December
2001 the state budget deficit was LTL 734.9 million (the targeted deficit reached LTL 906
million).
Over 2001, receipts of municipal budgets came to LTL 2,867.1 million, or 3.4% less
than planned.
The national budget income over 2001 was LTL 9,211.9 million, or 2.8% less than envisaged.
The planned state budget income over 2002 is LTL 8.868 billion, expenses – LTL 10.003
billion. The state budget deficit is targeted at LTL 1.135 billion. In December 2001, the
Budget Law was adopted.
Over 2002, the national budget income is planned to reach LTL 10.331 billion, whereas
expenses are planned to be LTL 11.466 billion.
Wood products
Textiles
State Debt: Less than Expected
Mineral products
On 31 December 2001, the state debt was LTL 12.903 billion (a 1.4% annual increase)
and made up 27.0% of the GDP forecasted for 2001 (LTL 47.8 billion).
Other
The government targeted at the state debt of LTL 13.513 billion or 28.8% of GDP by the
end of 2001.
According to the data of the Ministry of Finance, at the end of December direct liabilities of the state, i.e. assumed in the name of the state, were LTL 10.724 billion, whereas
indirect liabilities, i.e. loans guaranteed by the state, amounted to LTL 2.18 billion.
On 31 December 2001, total foreign debt was LTL 9.856 billion, or 76.4% of total state
debt. Total domestic debt was LTL 3.047 billion, or 23.6% of total state debt.
At the end of December 2001, Lithuania’s obligations in foreign currency to the World
Bank, the EBRD, European and Nordic investment banks and other international organisations amounted to LTL 2.095 billion, to governing institutions of foreign countries - LTL
743.0 million, to the IMF– LTL 603.8 million, to other creditors – LTL 6.414 billion.
Increased Official International Reserve
At the end of December 2001, Lithuania’s official international reserves totalled USD
1.669 billion and showed an increase of USD 310.5 million, or 22.9% since the beginning of
2001. This growth was the primary result of the following: an increase of USD 155.6 million
in the central government deposits in foreign currencies with the Bank of Lithuania, an increase of USD 51.6 million in repo transactions by the Bank of Lithuania with non-residents
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and excess sales of USD (the difference between sales and purchases of USD by banks
came to 20.5 million) by commercial banks to the Bank of Lithuania.
Current Account Deficit Shrank
During nine months of 2001, the current account deficit (CAD) went down to LTL 1.19
billion, making up 3.3% of GDP (in 2000, the respective figure was LTL 1.683 billion, making up 5% of GDP). In the whole year 2000, the CAD constituted 6.0% of GDP.
Banking
Litas Re-pegged to the Euro
The Board of the Bank of Lithuania, upon approval of the Government of the Republic of
Lithuania, has established that starting with 2 February 2002 the euro shall be the anchor
currency of the litas with the official exchange rate of the litas and the euro being fixed at
3.4528:1. The official exchange rate of the litas and the euro has been calculated on the basis
of the exchange rate of the USD and the euro announced by the European Central Bank on 1
February 2002, namely, 0.8632.
The decision on re-pegging the litas from the USD to the euro is based on the fact that
the Lithuanian economy has been increasingly related to the economy of both the European Union member states and candidate countries.
Growth Prospects of Lithuanian Banks: Moody’s Review
Moody’s Investors Service has produced its first review of the Lithuanian banking sector. It is considered that growth prospects of Lithuanian banks are favourable due to the
following: strategic investors from Western countries that already control 80% of the entire
banking system, expanding banking services and consolidation of banks. It is noted in the
review that Lithuanian banks are currently in a period of transition, and due to economic
stabilisation processes as well as due to the presence of foreign investors, banks are able to
successfully develop banking activities associated with both lending and deposits. It is
forecasted that over the coming years there will be a fast increase in the demand for more
sophisticated e-banking products in Lithuania.
In sum, the review concludes that the activities of the banking sector in 2002 will largely
depend on the ability of Lithuania to resist the impact of a potential decline in the world
economy.
Ratings Cancelled
In the beginning of November 2001, Fitch, an international rating agency, cancelled its
credit ratings assigned to the Lithuanian Savings Bank (LTB). Ratings were cancelled at the
request of the Bank itself due to the reorganisation in progress.
After becoming a member of Hansabank Group, LTB enjoys the benefit of higher ratings
assigned to the entire Group: Standard & Poor’s long-term liabilities – BBB, and short-term
liabilities - A2; Moody’s long-term liabilities - BAA1, and short-term liabilities - Prime2.
For the first time, Fitch assigned ratings to LTB in March 2000, and in June 2001 the
ratings were increased from B to F3 to short-term liabilities and from BB to BBB- to longterm liabilities.
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Hansa-LTB Emerged
At the end of 2001, the process of reorganisation of Hansabankas and LTB (through
merging Hansabankas to LTB) was in fact completed. Later, the License issued to the LTB
was replaced with a new one. The new License contains the new name of the bank: HansaLTB. The strategy of Hansa-LTB is to become one of the leaders among Lithuanian banks.
The number of Hansa-LTB customers is about 1.5 million.
Merita Bank Permitted to Operate
Early in March 2001, the Board of the Bank of Lithuania resolved on issuing a permit to
the Vilnius branch of Merita Bank Plc, a Finnish bank, to operate in Lithuania.
A new permit will be issued upon a merger of Finnish banks Merita Bank Plc and NCF
Bank Plc. After the completion of banks’ reorganisation, the emerging bank will be Nordea
Bank Finland Plc.
After the merger of the banks, the Vilnius branch of Merita Bank Plc will continue to
operate and its name will remain unchanged.
The Vilnius branch of Merita Bank started operating in Lithuania in May 2000, upon
acquisition of business from French bank Societe Generale.
Partial Amendments to Guidelines for Foreign Reserves Investment
At the end of 2001, the Bank of Lithuania resolved on partial amendments to the Guidelines for Foreign Reserves Investment. Amendments were made in order to take into account the new anchor currency of the litas – it will be necessary to change the foreign
reserves management policy ensuring the stability of the national currency and to increase
the share of foreign reserves denominated in euros.
Consumer Credit Market Growth
The development of the consumer credit market in Lithuania has been fast. At the end
of 2001, consumer credits issued by the country’s commercial banks totalled LTL 51.2 million, i.e. 2.6 times higher as compared to end - 2000. There are several banks – Vilniaus
Bankas, Hansa-LTB, Snoras and Lithuanian Agricultural Bank – issuing consumer credits.
The major share of the consumer credit market is held by Vilniaus Bankas: at the end of
2001, its consumer credit portfolio made up 40.3% of total consumer credits granted by the
banks.
Successful Intermediation
In 2001, the Securities Trading Unit of Vilniaus Bankas (VSTU) took the leading position
in trading on the National Stock Exchange of Lithuania (NSEL). According to the data of
NSEL, VSTU of Vilniaus Bankas held a 30.67% share in the equity market (LTL 515.4 million) and a 39.43% share in the debt market (LTL 789.5 million). Based on the total turnover
of transactions on the NSEL (LTL 1.305 billion), the market share of VSTU of Vilniaus Bankas
constituted 35.43% (in 2000, 41.60%).
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Introduction of Investments into Mutual Funds by Vilniaus Bankas
On 7 December 2001, the Securities Committee issued a permit to Vilniaus Bankas for
placement of financial instruments of four mutual funds of the SEB Group. The Bank will
introduce investment units of funds registered in Luxembourg, namely: SEB Lux (F), SEB
Lux Equity Fund, SEB Lux Bond Fund, and SEB Lux Short Bond Fund.
Skandinaviska Enskilda Banken (SEB), the general placement agent, has granted Vilniaus
Bankas special authorisations to arrange the placement and redemption of the said investments.
Vilniaus Bankas about to Establish a Mortgage Bank
Vilniaus Bankas will entirely own the new entity called VB MORTGAGE BANK. Authorised capital of the new Bank will be LTL 20 million. VB Mortgage Bank will be a specialised bank, and its core activities will be lending with a real estate mortgage. Instead of
retail deposits, the Bank’s credit resources will be funds borrowed in the inter-bank market and an issue of mortgage bonds. Mortgage bonds will be new financial instruments
backed with a claim on issued mortgage loans.
Vilniaus Bankas together with the German bank Bausparkasse Schwaebisch Hall are going
to establish one more bank, namely, Home Finance Bank.
Result of Lithuanian Commercial Banks’ Activities in 2001: a Loss of LTL
23 million
According to the data of the Bank of Lithuania, in 2001 all commercial banks operating in
Lithuania as well as branches of foreign banks sustained a total unaudited loss of LTL 23.3
million (in 2000, total result of the entire banking system was an audited profit of LTL 52.7
million).
According to the data of unaudited financial reports, last year six banks (seven in 2000)
and one foreign bank branch (Kredyt Bank S.A.) operated successfully and earned a LTL
115 million total profit. In 2001, Vilniaus Bankas was the best performer, earning a profit of
LTL 92.6 million.
Three banks (Hansa-LTB, Parex and Sampo) and three foreign bank branches (Merita
Bank Plc, Norddeutsche Landesbank Girozentrale and Vereins-und Westbank) sustained a total
loss of LTL 138.3 million.
Over the year 2001, as a result of revaluation of long-term tangible assets and additional expenses of LTL 85.5 million, Hansa-LTB incurred the largest loss among Lithuanian
banks, i.e. LTL 114 million.
New Owner of Lithuanian Agricultural Bank
Negotiations on the privatisation of Lithuanian Agricultural Bank are finished.
Norddeutsche Landesbank Girozentrale will acquire 76.1% of Lithuanian Agricultural Bank’s
share capital.
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CONTACTS
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Contacts
Head office
12 Gedimino av., LT-2600 Vilnius, Lithuania
Info ph. +370 2 682800, fax +370 2 626557
REUTERS: VIBK
SWIFT: CBVI LT 2X
E-mail: [email protected]
Website: www.vb.lt
President & CEO:
Mr. Julius Niedvaras
Ph. +370 2 682514, fax. +370 2 626557
Advisers to the President:
Mr. Gitanas Nauséda
Ph. +370 2 682517
Mrs. Vanda Paliené
Ph.+370 2 682504
Mrs. Audroné Narkauskiené
Ph. +370 2 682440
Mr. Romualdas Æesnaviæius
Ph. +370 2 682350
Mr. Linas Staniulis
Ph. +370 2 682380
Human Resourses Department:
Mrs. Dalia Kaminskaité, Director
Ph. +370 2 682450
Marketing Department:
Mrs. Dalia Öiukötiené, Director
Ph. +370 2 682450
Marketing Department, Public Relations:
Mr. Aleksandras Federas, Head
Ph. +370 2 682445
Marketing Department, Advertising:
Mr. Kèstutis Tuménas, Head
Ph. +370 2 682435
Internal Audit Department:
Mrs. Irena Æepaité, Director
Ph. +370 2 682545
Legal Department:
Mr. Andrius Ignotas, Director
Ph. +370 2 681034
Secretariat:
Mrs. Rasa Suûiedeliene, Head
Ph. +370 2 682421
Information Security Unit:
Mr. Gintautas Ûintelis, Head
Ph. +370 2 682422
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Retail Banking Division:
Mr. Kari Lainio
Ph. +370 2 682415
Business Development Department:
Mrs. Maryté Jociené, Director
Tel .+370 2 682418
Product Development Department:
Mr. Ûilvinas Milerius, Director
Ph. +370 2 682325
Distribution Channels Department:
Corporate Banking and Treasury
Division:
Mr. Raimondas Kvedaras
Ph. +370 2 682512
Treasury Department:
Mr. Jonas Irûikeviæius, Director
Ph. +370 2 682355
Treasury Operations Management Unit:
Mrs. Rita Lodiené, Head
Ph. +370 2 682351
Mr. Gediminas Valanæius, Director
Ph. +370 2 682432
Corporate Clients Department:
Credit, IT and Operations Division:
Financial Institutions Department:
Mr. Arturas Feiferas
Ph. +370 2 682502
Mr. Öarúnas Nedzinskas, Director
Ph. +370 2 681003
Credit Department:
Mr. Dalius Aleksandraviæius, Director
Ph. +370 2 682424
Mr. Jonas Braûdûionis, Director
Ph. +370 2 682300
Mr. Aivaras Karalius, Director
Ph. +370 2 682419
Security Services & Custody Department:
Credit Workout Department:
Finance Division:
Mr. Vytautas Juozas Ûemaitaitis, Director
Ph. +370 2 682330
Mr. Mattias Styrman
Ph. +370 2 682505
Property Valuation Department:
Mrs. Daiva Albertaviæiené, Director
Ph. +370 2 682310
E-mail:[email protected]
Country and Financial Institutions Risk
Assessment Unit:
Ph. +370 2 682411
Operations Department:
Mrs. Dalyté Poteliúnaité, Director
Ph. +370 2 682550
IT Department:
Mr. Arúnas Barauskas, Director
Ph. +370 2 682700
Risk Management Department:
Mr. Darius Bagdonas, Director
Ph. +370 2 682426
Accounting and Reporting Department:
Mr. Vytautas Buæas, Director
Ph. +370 2 682525
Procurement Department
Mr. Vygintas Leipus, Director
Ph. +370 2 682561
Organizational Department:
Mrs. Laima Godeliené, Director
Ph. +370 2 682785
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General Affairs Department:
Mr. Algirdas Starkeviæius, Director
Ph. +370 2 682485
Subsidiaries
VB Lizingas UAB (Leasing)
General Manager: Mr. Audrius Ûiugûda
70 Ûirmúnù st., Vilnius.
Ph. +370 2 390444; fax: +370 2 390450
VB Gyvybés draudimas UAB
(Life Insurance)
General Manager: Mrs. Baiginat Kamuntaviæiené
9/1 Jogailos st., Vilnius.
Ph. +370 2 681557; fax: +370 2 681556
VB Vilfima UAB (Corporate Finance)
General Manager: Mr. Alvydas Ûabolis
Ph. +370 2 681400; fax: +370 2 681499
VB Rizikos kapitalo valdymas UAB
(Venture Capital Management)
VB Investicijù valdymas UAB
(Investment Management)
General Manager: Mr. Saulius Raceviæius
Ph. +370 2 681579; fax: +370 2 681575
General Manager: Mrs. Asta Sungailiené
10 Jogailos st., Vilnius.
Ph. +370 2 682408; fax: +370 2 682402
Branches and Sub-Branches
ALYTUS Branch
Ukmergé Sub-branch
4 Pulko st., LT-4580 Alytus
Ph. +370 35 55 301
Fax +370 35 7 37 89
4 Vytauto st., 4120 Ukmergé
Ph. +370 11 6 33 18
Fax +370 11 6 33 19
Druskininkai Sub-branch
16 Vilniaus av., LT-4690 Druskininkai
Ph. +370 33 5 58 91
Fax +370 33 5 58 29
Varéna Sub-branch
5 Vasario 16-osios st., 4640 Varéna
Ph. +370 60 3 10 70
Fax +370 60 3 10 86
BIRÛAI Branch
8 Rotuöés st., LT-5280 Birûai
Ph. +370 20 32 277,
Fax.+370 20 32 277
Pasvalys Sub-branch
6 Vytauto Didûiojo st., Pasvalys
Ph. +370 20 32 277,
Fax.+370 20 32 277
ANYKÖÆIAI Branch
4 J. Biliúno st., 4930 Anyköæiai
Ph. +370 51 5 26 78
Fax +370 51 5 92 34
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KAUNAS Branch
KÉDAINIAI Branch
82/17 Laisvés av., LT-3000 Kaunas
Ph. +370 7 30 70 70
Fax +370 7 30 70 07
11 Radvilù st., LT-5030 Kédainiai
Ph. +370 57 5 63 85
Fax +370 57 5 09 14
Raudondvaris Sub-branch
Jonava Sub-branch
162 Raudondvario av., LT-3000 Kaunas
Ph. +370 7 36 25 50
Fax +370 7 36 25 50
22 J.Basanaviæiaus st. / 28 Prezidento st.,
LT-5000 Jonava
Ph. +370 19 69 001
Fax. +370 19 69 003
Taika Sub-branch
141 Taikos av., LT-3000 Kaunas
Ph. +370 7 313 185
Fax +370 7 313 185
Savanoriai Sub-branch
319a Savanoriù av., LT-3009 Kaunas
Ph. +370 7 311 622
Fax +370 7 311 545
Aleksotas Sub-branch
150 Veiveriù st., LT-3018 Kaunas
Ph. +370 7 39 22 96
Fax +370 7 39 14 06
Murava Sub-branch
435 Savanoriù st., LT-3041 Kaunas
Ph. +370 7 408 014
Fax +370 7 408 016
KLAIPÉDA Branch
13 Darûù st., LT-5800 Klaipéda
Ph. +370 6 31 09 25
Fax +370 6 31 09 24
Daukantas Sub-branch
10 Daukanto st., LT-5800 Klaipéda
Ph./Fax +370 6 31 22 09
Taika Sub-branch
81 Taikos av., LT-5800 Klaipéda
Ph./Fax +370 6 31 35 82
Öiluté Sub-branch
Kaiöiadorys Sub-branch
18 Lietuvininkù st., LT-5730 Öiluté
Ph. +370 41 61 556
Fax +370 41 61 564
12a Gedimino st., LT-4230 Kaiöiadorys
Ph. +370 56 52 113
Fax +370 56 52 113
KLAIPÉDOS SENAMIESÆIO Branch
KAUNO SANTAKA Branch
38 Kèstuæio st., LT-3000 Kaunas
Ph. +370 7 20 15 53
Fax +370 7 22 74 84
Petraöiúnai Sub-branch
98 R. Kalantos st., LT-3000 Kaunas
Ph. +370 7 37 01 34
Fax +370 7 37 02 51
Öilainiai Sub-branch
23 Ûemaiæiù av., LT-3040 Kaunas
Ph. +370 7 37 70 33
Fax +370 7 37 73 69
Laisvés aléja Sub-branch
43 Vilniaus st., LT-3040 Kaunas
Ph. +370 7 75 00 40
Fax. +370 7 75 00 40
15 Turgaus st., LT-5800 Klaipéda
Ph. +370 6 31 03 33
Fax +370 6 31 00 62
Naikupé Sub-branch
18 Naikupés st., LT-5800 Klaipéda
Ph. +370 6 34 46 87
Fax +370 6 34 46 87
Vytautas Sub-branch
24 Vytauto st., LT-5800 Klaipéda
Ph. +370 6 31 31 57
Fax +370 6 31 31 57
Kretinga Sub-branch
1 Birutés st., LT-5700 Kretinga
Ph. +370 58 7 79 29
Fax +370 58 7 80 12
Palanga Sub-branch
61 Vytauto st., LT-5720 Palanga
Ph. +370 36 4 91 41
Fax +370 36 4 91 40
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Gargûdai Sub-branch
Joniökis Sub-branch
29 Gamyklos st. , LT-5840 Gargûdai
Ph. +370 6 47 17 21
Fax +370 6 47 17 25
1 Vilniaus st., LT-5150 Joniökis
Ph. +370 96 6 12 57
Fax +370 96 6 12 53
MARIJAMPOLÉ Branch
11/9 Vytauto st., LT-4520 Marijampolé
Ph. +370 43 9 11 02
Fax +370 43 9 28 28
TAURAGÉ Branch
61a/25a Vytauto/Prezidento st. ,
LT-5900 Tauragé
Ph. +370 46 20 222
Fax +370 46 20 220
Raseiniai Sub-branch
MAÛEIKIAI Branch
44/1 Laisvés st., LT-5500 Maûeikiai
Ph. +370 93 9 81 00
Fax +370 93 9 81 09
26 Maironio st., LT-4400 Raseiniai
Ph. +370 28 70 406
Fax +370 28 70 407
Telöiai Sub-branch
UTENA Branch
11 Kèstuæio st., LT-5610 Telöiai
Ph. +370 94 6 06 15
Fax +370 94 6 06 17
15 Utenio st., LT-4910 Utena
Ph. +370 39 6 39 01
Fax +370 39 6 12 50
Plungé Sub-branch
Visaginas Sub-branch
21 Vytauto st., LT-5640 Plungé
Ph. +370 18 5 59 21
Fax +370 18 5 33 14
6 Sedulinos av., LT-4761 Visaginas
Ph. +370 66 6 10 50
Fax +370 66 6 09 38
PANEVÉÛYS Branch
VILNIUS Branch
20 Ukmergés st., LT-5319 Panevéûys
Ph. +370 5 50 54 00
Fax +370 5 46 37 61
60 Gedimino av., LT-2600 Vilnius
Ph. +370 2 68 20 01
Fax +370 2 22 02 93
Gediminas Sub-branch
ROKIÖKIS Branch
17 Vytauto st., LT-4820 Rokiökis
Ph. +370 78 5 16 93
Fax +370 78 7 13 19
ÖIAULIAI Branch
103a Vytauto st., LT-5400 Öiauliai
Ph. +370 1 59 29 01
Fax +370 1 59 29 29
Dainos Sub-branch
12 Gedimino av., LT-2600 Vilnius
Ph. +370 2 68 28 12
Fax +370 2 68 28 12
Öermuköniai Sub-branch
3 Öermuköniù st., LT-2600 Vilnius
Ph. +370 2 68 28 13
Fax +370 2 68 22 59
Ûirmúnai Sub-branch
2 Ûirmúnù st., LT-2600 Vilnius
Ph. +370 2 75 72 04, 75 72 05
Fax +370 2 75 72 04, 75 72 05
2 Gardino st., LT-5410 Öiauliai
Ph. +370 1 50 14 40
Fax +370 1 50 14 50
49
A n n u a l
Re p o r t
2 0 01
V I L N I A U S
B A N K A S
CONTACTS
A B
VILNIAUS NAUJAMIESÆIO Branch
KAROLINIÖKÉS Branch
9a Jogailos st., LT-2001 Vilnius
Ph. +370 2 68 14 14
Fax +370 2 68 13 55
51 V.Maciuleviæiaus st., LT-2050 Vilnius
Ph. +370 2 68 29 01
Fax: +370 2 70 60 13
Senamiestis Sub-branch
Saltoniökés Sub-branch
9 Vokieæiù st., LT-2001 Vilnius
Ph./fax +370 2 62 78 69
29 Saltoniökiù st., LT-2034 Vilnius
Ph. +370 2 77 18 70
Fax +370 2 72 10 43
Antakalnis Sub-branch
41 Antakalnio st., LT-2055 Vilnius
Ph. +370 2 34 42 77
Fax +370 2 70 98 85
Ûalgiris Sub-branch
98 Kalvarijù st., LT-2042 Vilnius
Ph. +370 2 75 37 48
Fax +370 2 75 37 48
Verkiai Sub-branch
29 Verkiù st., LT-2012 Vilnius
Ph. +370 2 72 29 01
Fax +370 2 72 29 01
Stotis Sub-branch
Savanoriai Sub-branch
187 Savanoriù pr., LT-2053 Vilnius
Ph. +370 2 32 22 39
Fax +370 2 32 22 39
Fabijoniökés Sub-branch
2a Fabijoniökiù st., LT-2026 Vilnius
Ph. +370 2 37 51 63
Fax +370 2 37 51 66
Elektrénai Sub-branch
8 Rungos st., LT-4061 Elektrénai
Ph. +370 38 39 664, 39 668
Fax +370 38 39 665
22 Sodù st., LT-2006 Vilnius
Ph./Fax +370 2 33 71 10
Naugardukas Sub-branch
55a Naugarduko st., LT-2600 Vilnius
Ph. +370 2 33 94 64
Fax +370 2 33 94 61
50
A n n u a l
Re p o r t
2 0 01
© 2002 All rights reserved. Vilniaus Bankas AB
Designed by RIC

Vilniaus Bankas Annual Report 2001

Transcription

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