Market news
Q1 2009, financial institutions in brief
18/06/2009 | Market newsFinancial performance of FBFs and MCs
According to the data submitted to the Securities Commission (LSC), assets of FBFs at the end of Q1, 2009 were worth LTL 45.8 m having lost in value over the quarter by LTL 8.5 m, or 15.7 percent. The shareholder equity totalling LTL 29.0 m, decreased during the quarter concerned by LTL 1.4 m, or 4.7 percent, while the liabilities decreased by LTL 7.1 m, or 29.8 percent, and were reported at the end of the period to be worth LTL 16.8 m.
At the end of Q 1, 2009, the assets of MCs were worth LTL 75.7 m, recording a decrease of LTL 6.9 m. The shareholder equity during the same period lost in value LTL 3.5 m, or 5.9 percent and was reported to be worth LTL 56.3 m, while the liabilities decreased by LTL 3.4 m, i.e., 15.1 percent and were worth LTL 19.4 m.
In general the performance of Lithuanian FBFs and MCs during Q 1, 2009 was loss making, except with some profits earned by 4 FBFs and MCs.
In the period surveyed FBFs incurred loss of LTL 607.300 to the largest extent due to decline in revenues from customer servicing activity that were reported during the period at LTL 3.7 m, or by 60.6 percent down on y-o-y basis. The related costs as compared with Q1 2008 were less by LTL 0.2 m, or 12.8 percent (LTL 1.2 m). During the first quarter of the last year FBFs incurred loss of LTL 6.8 m, largely caused by the costs related to marking-to-market of financial instruments.
Over the accounting quarter Lithuanian MCs incurred loss of LTL 628.100, the reason being a reduction in revenues from customer servicing that have decreased as compared with Q 1, 2008 by LTL 3.5 m or 26.7 percent and were reported to be worth LTL 10.6 m, which on a y-o-y basis represented a decrease by LTL 2.3 m, or accounted for LTL 4.6 m.
| FBS | MC | |
| Assets as of 31 March 2008, LTL m | 144.7 | 76.8 |
| Assets as of 31 December 2008, LTL m* | 54.3 | 82.7 |
| Assets as of 31 March 2009, LTL m | 45.8 | 75.7 |
| Net profit (loss), 31 March 2008, LTL m | -6.8 | 1.0 |
| Net profit (loss), 31 December 2008, LTL m* | -52.8 | 2.6 |
| Net profit (loss), 31 March 2009, LTL m | -0.6 | -0.6 |
* Audited data.
Client assets managed by FBFs and MCs
The value of client assets managed by FBFs and MCs, as well as commercial banks providing investment services at the end of Q1, 2009 accounted for LTL 4,119.5 m, having decreased in the course of the accounting period by LTL 39.0 m (or 0.9 percent).
At the close of the accounting period FBFs, MCs and CBs were managing the financial instrument portfolios of 389 clients the total worth whereof accounted for LTL 1,622.0 m. During the period reviewed the number of such portfolios decreased by 46, furthermore, it lost in value by LTL 203,7 m.
The major financial portfolio managers were MCs (79.9 percent of all client portfolios), managing financial instrument portfolios of 192 clients worth LTL 1,295.4 m. During Q1, 2009 the number of financial instrument portfolios managed by MCs decreased by 31, and their value – by LTL 196.2 m (13.2 percent).
| 2nd pillar pension funds | 3nd pillar pension funds | Collective investment undertakings | Financial instrument portfolios managed by MCs | Financial instrument portfolios managed by FBFs | Financial instrument portfolios managed by CB | |
| Managed funds, LTL m | 2,075.2 | 58.2 | 364.1 | 1,295.4 | 158.8 | 167.8 |
| Total investors | 795,8 | 21,3 | 42,2 | 192 | 60 | 137 |
FBFs and CBs: turnover of financial instruments
In the course of Q1, 2009, the turnover of FBFs and CBs in the Lithuanian and foreign markets of financial instruments reached the value of LTL 5.6 bn and was by LTL 1.4 bn lower than in the previous year.
The turnover in financial instruments of the clients in Lithuania accounted for LTL 2.9 bn making up 52.0 percent of the total turnover in financial instruments. As compared to Q4, 2008 in the course of the accounting quarter the turnover in financial instruments of clients decreased by LTL 1.3 bn, i.e., 31.3 percent.
The turnover of financial instruments of FBFs and CBs in foreign markets accounted for LTL 2.7 bn, representing 48 percent of the total turnover in financial instruments of clients. As compared with the Q4, 2008, the data showed a decline by 4.0 percent, i.e., LTL 0.1 bn.
| Residents | Non-residents | Total | |||||||
| Natural persons | Financial institutions | Other | Total | Natural persons | Financial institutions | Other | Total | ||
| Turnover in Lithuania, LTL m | 394.9 | 1,327.5 | 1,024.3 | 2,746.7 | 0.6 | 193.4 | 3.0 | 197.0 | 2,943.7 |
| Turnover abroad, LTL m | 387.3 | 2,008.6 | 226.0 | 2,622.1 | 1.4 | 0.7 | 88.9 | 91.0 | 2,713.1 |
| Turnover total, LTL m | 782.2 | 3,336.1 | 1,250.3 | 5,368.6 | 2.0 | 194.1 | 91.9 | 288.0 | 5,656.6 |
As of 31 March, 2009 there were 12 financial brokerage firms operating in the market (3 A category FBFs, 8 – B category FBFs, and 1 C category FBF), 13 management companies and 9 commercial banks providing investment services.
