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Medicinos Bankas reports first quarter net profit of EUR 293 thousand

Despite the changes that affected the balance sheet of Medicinos Bankas after conducting a comprehensive assessment of its assets and loan portfolio last year, the bank started this year on a good footing: in the first three months of the year, its unaudited net profit amounted to EUR 293 thousand (compared to EUR 242 thousand for the same period last year). Meanwhile, Medicinos Bankas Group reported net income of EUR 296 thousand for the same period (compared to EUR 213 thousand in 1Q 2014).


 “From a formal perspective, the bank’s income growth was not substantial, but if we look at the figures within the context of the changes that affected us last year, formal assessment is not appropriate in this case.  The positive results we have achieved serve as an important testimony to the success of our team efforts in stabilizing our performance, managing risks and improving results. And all this was achieved under conditions that were not very favourable for us,” Gintaras Treinys, Chairman of the Board of Medicinos Bankas  said.


The net interest income for the reporting period amounted to EUR 1231 thousand, or 6.25 percent lower than in the same period last year. As at the end of March 2015, the loan portfolio amounted to EUR 127.59 million, and deposits amounted to EUR 213.22 million, a 2.76 percent decrease (EUR 131.21 million) and a 3.7 increase (EUR 205.71 million), respectively, compared to the same period last year. The net value of securities transactions amounted to EUR 138 thousand.


In the first quarter of the year, Medicinos Bankas generated EUR 1.6 million from net services, commission income and foreign currency transactions, or 34.61 percent less than in the same period last year (EUR 2.456 million). A decrease in the income from these activities is partially the result of the banks’ obligation to exchange Litas to Euro free of charge. Medicinos Bankas is the most active participant in the retail currency exchange market and expects to provide currency exchange service free of charge until the end of the year. Also, a decrease in income has also resulted from decreased revenue from international payments in euro.


Over the period of one year, the number of customers of Medicinos Bankas Group grew to nearly 65,000, a 13 percent increase compared to the results as of the end of the first quarter of 2014. As from the start of this year, the Bank’s assets decreased by 2.19 percent and amounted to EUR 245.78 as of the end of March this year.


The Bank complies with all the risk limits established by the Bank of Lithuania. The bank’s total capital adequacy ratio as of 1 April 2015 was 11.9 percent (the requirement being 10 percent.


As already announced, this year Medicinos Bankas will strengthen its capital base by EUR 2 million. An additional capital is needed as a risk reduction measure and is also required by the Fourth Capital Requirements Directive.

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