In a few weeks an official list of the most profitable Lithuanian banks will be prepared. According to the latest data bankers can conclude that this year the incomes of the Lithuanian banks are lower than the last year. Privatisation continues.

In a few weeks an official list of the most profitable Lithuanian banks will be prepared. And it gets interesting if it is possible to sell LTB (Lietuvos Taupamasis Bankas) and LÞUB (Lietuvos Þemës Ûkio Bankas) at a high price.

These days all the financiers are working on the financial accounts. And according to the latest data “Vilniaus Bankas” is at the position of the leader now. Primary calculations show it has 47 millions Lt of income (for the first half-year). Two years ago because of the large Scandinavian investments VB was released of income-tax. It won’t pay income-tax during next three years, too.

According to the latest data bankers can conclude that this year the incomes of the banks are lower than the last year. Such statistics can be explained by the fact that the banks have put more money to their reserves, just in case. If, for example, unsuccessful investments are made or unsuccessful loan is given; though it seems the years of crisis have already passed.

Another aspect - the client perhaps is interested in is the discount and interest rates. Statistics show that the situation here is better than it was last year. But it is also known that the branches of the foreign banks in Lithuania pay less interest; this they motivate with the better security.

The situation when one bank wants to get loan from another one differs a little bit. Here the discount rate is less. The problem is too much money, which weren’t invested because the bank waited for the problem of the year 2000.

This is not the first year we are expecting to sell “Lietuvos taupomasis bankas” (LTB) and to make some kind of innovations. Everything began when LTB was given an opportunity to make profit of the money the state received for the sale of “Lietuvos Telekomas”. This money was transferred to the LTB, it was expected that LTB would pay out compensations for the rouble deposits. Then during one of the interviews the Board of directors of the bank was trying to explain that these millions do not relieve the situation, but on the contrary; because there is the question where to invest this money. But the economists claim this only helps. Before this money was transferred the data showed losses.

The state has thought up another way to sell the bank as expensive as possible. State securities will be sold to the bank. For these securities the government can receive more interest than usually. This should raise the price of LTB. Though in such case the government itself raises its internal debt. So it would be very pity if after such efforts LTB was sold very cheaply

Now the negotiations with those who are going to buy Lietuvos Þemës Ûkio Bankas (LÞÛB) are taking place. Association of the Polish bank “Pekao SA” and Italian one “UniCredito Italiano” are going to buy 76% of it. During the first meeting Lithuanian side didn’t even hide that this process would last very long. And foreigners are clutching to everything in order to beat down the price. The optimists suppose the negotiations will be over in September.

Polish and Italians are not the first foreigners who are willing to buy LÞÛB. Four years ago the largest Latvian bank "Parex" had such an idea, too. At that time “Parex” was the only buyer and for portfolio offered one million Lt. Suggestion was refused.

Later “Parex” bought “Industrijos bankas”, which is engaged in the retail banking. This bank is the smallest one in Lithuania. And this year it has also been written down into the list of unprofitable ones. In spite of that “Industrijos bankas” got down to brass lending money to “Lietuvos avialinijos”, 30 millions Lt were borrowed from it. By the way, “Lietuvos avialinijos” are also in the list of those that are going to be sold.

Returning to our topic it should be added that it is quite possible that in the nearest future “Industrijos” bankas will be given the name of its Latvian investor. Though some of the experts claim only big banks have future in the market, the managers of “Parex” declare good future of the small banks.

For already several years it is being talked how different foreign banks establish their branches in Lithuania and buy up the shares of our banks. Perhaps it would be interesting to get known that the Lithuanian Ûkio bankas decided to occupy the markets of Bosnia-Herzegovina. The branch establishment of Lithuanian “Ûkio bankas” will be the first foreign bank on the Serbian soil. It will be called “Balkan Investment Bank AD”.