Best bank
Vilniaus Bankas Best debt house
Vilniaus Bankas
Best equities house
Hansabankas
Best M&A house
VB Vilfima Joint
Best local partner
Suprema Securities and Zabolis & Partners
The two dominant banks in Lithuania are Vilniaus Bankas and Hansabankas. Vilniaus Bankas, is fully owned by SEB, and is this year?s best bank. It maintains its dominant market shares in both lending and deposits but Hansabankas is hot on its heels.
Vilniaus Bankas increased net profit by 4.6% to reach Lit132.3 million ($46.4 million), the highest annual profit earned by a Lithuanian bank. The group also grew its assets by 29.1% to Lit8.6 billion.
Vilniaus Bankas increased its loan portfolio 1.5 times to reach Lit4.8 billion. Its corporate loans portfolio grew faster than the market itself. The bank has also forged ahead in setting up a new branch with automated safe deposit boxes and was selected by more than 100 European banks to act as agent bank. It also had the highest turnover in debt securities on the local exchange and the second highest turnover in equities.
The biggest primary debt market deal was a e600 million Republic of Lithuania issue. UBS and Citigroup acted as bookrunners. However, Vilniaus Bankas wins best debt house for the level of its involvement in the primary debt markets and its activity on the local exchange.
Another notable deal was the Lit500.3 million club-type loan for NDX Energija. This loan was used to finance NDX?s acquisition of local energy grid AB Vakaru Skirstomieji Tinklai when it was privatized. It was the largest transaction of its kind executed by Lithuanian banks, and Hansbankas and Vilniaus Bankas contributed Lit131.4 million each.
Vilniaus Bankas was also involved in several other large transactions. Vereins-und Westbank AG and Vilniaus Bankas refinanced a loan of $150 million issued by the state to AB Mazeikiu Nafta. Vilniaus Bankas also allocated Lit67.5 million of the Lit135 million syndicated loan for the privatization of Stumbras AB.
The bank organized financing for the acquisition of Lit130 million-worth of shares in Rokiskio Suris AB, the most complex transaction in the bank?s history.
Vilniaus Bankas had the highest percentage of total turnover in debt securities on the Vilniaus exchange at 28%. At the end of 2003 the bank started publishing its Lithuanian Debt Market review and introduced Eurobond brokerage services for institutional and retail clients.
Hansabankas wins best equities house for its involvement in the biggest deal as well as having the dominant market share on the local stock exchange. The firm was sole adviser to LUKoil Baltija in the trade sale of its fully owned road passenger transport company, AB Tolimojo Keleivinio Transporto Kompanija, in December.
But local firm Finasta is hot on Hansabankas?s heels. Finasta advised MG Baltic Investment when it lowered its stake in Apranga in May. Apranga shares were placed through the National Stock Exchange of Lithuania for e4.8 million, one of few such placements in the history of the exchange. Although Finasta does not have the highest market share in terms of total turnover, it deserves a mention for having the highest share in terms of Litas amount in the central market at e68.98 million equivalent.
Vilniaus Bankas is also commended for its online real-time e-brokerage solution that is unique among local banks. The bank says that the only other firm providing real-time e-brokerage is private brokerage house Jusu Tarpininkas. Vilniaus Bankas was also the most active on the stock exchange in terms of number of trades.
VB Vilfima scoops best M&A house in Lithuania and Suprema Securities and Zabolis and Partners win best local partner for advising the government on privatization deals and acting as a local partner to foreign advisers.
VB Vilfima advised on two of the largest transactions. When Lithuania?s Western Electricity Distribution Network (AB Vakaru Skirstomieji Tinklai) was privatized in December, VB Vilfima advised the consortium of investors that purchased the shares, NDX Energija, in a e156.3 million deal. This was the largest strategic acquisition by local business people.
Suprema Securities advised the government and Zabolis and Partners was a member of the advisory consortium led by CA IB and performed local investment banking advisory functions.
Suprema won a mandate to assist the government in its privatization of four local alcohol companies. The sale of leading alcohol producer Stumbras was the second-largest deal, worth e44 million. Suprema advised the government and VB Vilfima advised the buy side on financing.
Zabolis and Partners, the former VB Vilfima corporate finance team, was also involved in some notable deals. Z&P was a member of the consortium led by BNP Paribas that advised the Lithuanian government in its negotiations with Gazprom, which bought 34% of the country?s largest natural gas supplier and distributor, AB Lietuvos Dujos, when it was privatized.
