Alternative Performance Measures
Alternative performance measures included in the regulated information disclosures of Šiaulių bankas and its website allow the users to assess the value of bank‘s shares and operating efficiency:
| Performance measure | Formula and components used for the calculation: | Interpretation |
|---|---|---|
| Return on average assets (ROAA), % | Net profit for the year / Average total assets Net profit for the year – presented in the income statement*; Average total assets – calculated as a average of the total assets (presented in statement of financial position) for the last four quaters. *Note: Net profit is converted to annual by multiplying it by a coefficient according to the financial reporting period, i.e. net profit for Q1 is multiplied by 4, net profit for H1 is multiplied by 2, profit for three quarters multiplied by 4/3 |
The ratio shows the percentage return the company earns from assets. The higher the ratio, the more efficient use of assets |
| Return on average equity (ROAE), % | Net profit for the year / Average total equity Net profit for the year – presented in the income statement*; Average total equity – calculated as a average of the total equity (presented in statement of financial position) for the last four quaters. *Note: Net profit is converted to annual by multiplying it by a coefficient according to the financial reporting period, i.e. net profit for Q1 is multiplied by 4, net profit for H1 is multiplied by 2, profit for three quarters multiplied by 4/3 |
The ratio shows the percentage return the company earns from equity. Higher ROAE ratio is considered as better |
| Cost to income ratio, % | Operating costs / Operating income Operating costs (which is a total of income statement lines): + Salaries and related expenses; + Depreciation and amortization expenses; + Expenses related to insurance activities; + Other operating expenses. Operating income (which is a total of income statement lines): + Net interest income; + Net fee and commission income; + Net gain from trading activities; + Net gain (loss) from derecognition of financial assets; + Net gain (loss) from disposal of tangible assets; + Revenue related to insurance activities; + Other operating income. |
The ratio indicates the amount of cost used to earn one euro of income. Lower cost to income ratio is considered as better |
| Cost to income ratio (adjusted due to the impact of the SB draudimas clients' portfolio), % | Operating costs (adjusted due to the impact of the SB draudimas clients' portfolio) / Operating income (adjusted due to the impact of the SB draudimas clients' portfolio) Operating costs (which is a total of income statement lines): + Salaries and related expenses; + Depreciation and amortization expenses; + Expenses related to insurance activities; + Other operating expenses; - Part of the change of the technical insurance provisions that covers the result of investment of assets under unit-linked contracts {presented in the notes of financial statements} Operating income (which is a total of income statement lines): + Net interest income; + Net fee and commission income; + Net gain from trading activities; + Net gain (loss) from derecognition of financial assets; + Net gain (loss) from disposal of tangible assets; + Revenue related to insurance activities; + Other operating income; - Investment result of the insurance company assets under unit-linked contracts {presented in the notes of financial statements} *Note: ratio is calculating from 2020-03 |
The indicator shows the cost spent per euro of income, eliminating the impact of SB Draudimas customer portfolio on both the cost and income side. A lower value of the indicator shows the efficiency / ability of the company to generate higher income. The influence of SB Draudimas customer portfolio is eliminated because in aggregate it is always zero: the investment result of the assets under unit-linked contracts is identical, only with the opposite sign reflected on the cost side as part of the change in technical insurance provisions. Adding identical amounts to income / expenses, depending on the direction of market changes, significantly distorts the values of the cost-income ratio, this elimination allows better comparison of them in the time entry |
| Non-recurring earnings | Operating profit before impairment losses – Non-recurring earnings Operating profit before impairment losses – presented in the income statement; Non-recurring earnings calculated as a total of income statement lines: + Net loss from other derivatives; + Net loss from changes in fair value of subordinated loan; + Net gain from derecognition of financial assets; + Net gain from disposal of tangible assets; + Realized profit from held-to-maturity securities Note: This ratio was calculated to provide a more accurate understanding of the financial position, where fluctuations in the bank's performance were largely determined by changes in the fair value of the EBRD's subordinated loan. Following the completion of the EBRD's subordinated loan conversion process at the end of 2018, this indicator lost its relevance and it was decided not to publish it |
Non-recurring earnings is a non-IFRS performance measure used for Bank’s analysis. It aims to show a part of earnings that is attributable to one-off transactions or transactions that are not typical to the Group’s main activity |
| Price to book (P/BV) value ratio | Share price / Book value per share Share price – presented in Nasdaq Vilnius stock exchange; Book value per share – calculated as ratio between total equity (statement of financial position) and number of shares (annual report) |
The ratio indicates the price investors pay for one euro of total equity |
| Price/Earnings (P/E) indicator of the Group | Share price / Earnings per share Share price – presented in Nasdaq Vilnius stock exchange; Earnings per share – presented in the income statement. |
The price-earnings ratio indicates the price investors pay for one euro of the company’s earnings |
| Dividends to net profit, % | Amount of dividends per share / Earnings per share Amount of dividends per share – presented in explanatory notes to the financial statements; Earnings per share – presented in the income statement |
The ratio indicates the share of company‘s earnings that is distributed in a form of dividends |
| Dividend yield, % | Amount of dividends per share / Share price Amount of dividends per share – presented in explanatory notes to the financial statemets; Share price – presented in Nasdaq Vilnius stock exchange. |
The ratio indicates level of return that is generated from dividends |
| Loan to deposit ratio, % | Loans /Deposit Loans – Sum of amounts of loans granted to customers and receivables from Financial Lease (presented in the statement of financial position); Deposits - Amounts due to customers (presented in the statement of financial position) |
The indicator compares issued loans to accepted deposits, showing the Bank's liquidity. A higher value of the indicator indicates that the Bank is in a higher risk area. |
|
Cost of risk (CoR), % |
Allowance for impairment losses on loans / Average Loan portfolio Allowance for impairment losses on loans - sum of allowance for impairment losses on loans and finance lease (presented in the notes of financial statements) Average Loan portfolio – calculated as a average of the total loans and finance lease (presented in statement of financial position) for the last four quarters *Note: Allowance for impairment losses on loans is converted to annual by multiplying it by a coefficient according to the financial reporting period, i.e. net profit for Q1 is multiplied by 4, net profit for H1 is multiplied by 2, profit for three quarters multiplied by 4/3 |
The ratio indicates the loan portfolio's risk. |
The bank does not publish performance measures related to future reporting periods in its regulated information disclosures.