Ukio NOT In Trouble

[Guest GhostHunter]

http://www.balticbusinessnews.com/Default2.aspx?ArticleID=a5a7c1c7-7106-417f-842e-144e4bdb27b3&ref=lastadd&readcomment=1

 

10.09.2008 16:12

AB Ukio Bankas, Lithuania's third- biggest publicly traded bank, said profit rose 40 pct through the first eight months of this year, without giving a reason for the increase, Bloomberg reports.

 

Net income increased to LTL 85.8 million, compared with LTL 61.3 millioni for the same period a year earlier, the Kaunas-based bank said in a statement to the Vilnius Stock Exchange today.

[werwolf]

http://www.balticbusinessnews.com/Default2.aspx?ArticleID=a5a7c1c7-7106-417f-842e-144e4bdb27b3&ref=lastadd&readcomment=1

 

Shhh..

You'll upset the doom & gloom merchants

[Everybody loves Baz]

Shhh..

You'll upset the doom & gloom merchants

 

 

They're not doom & gloomers,

 

They're just people who live in the real world don't you know ?

[Examiner]

Darn, just loaded my hedge for the buy out too!

 

Still, I'm sure we can still fret over UBIG - must be something there shurely?

[Kenbo]

Thats about 18 odd Milliion ? is it not? Doesnt seem that much for a financial institution does it?

[Examiner]

Thats about 18 odd Milliion ? is it not? Doesnt seem that much for a financial institution does it?

 

I think its about ?500m more profit than HBOS this year, Lehman Bros possibly would have liked it too - who knows?

[Munch]

If you click on the one comment posted on that site it says the Bank sold 27 million worth of property in Moscow in July, the Russian property market must still be thriving.

Good on you Vlad, that should silence the dodgy Press monkeys.

[Guest GhostHunter]

Full Q2 report here for anyone interested

 

http://www.baltic.omxnordicexchange.com/upload/reports/ukb/2008_q2_en_ltl_con_ias.pdf

[Gavsy Van Gaverson]

I think its about ?500m more profit than HBOS this year, Lehman Bros possibly would have liked it too - who knows?

 

It was RBS.

[Kenbo]

I think its about ?500m more profit than HBOS this year, Lehman Bros possibly would have liked it too - who knows?

 

 

Ahh, that puts it into perspective - cheers, will get back in me box

[topcat]

Thats about 18 odd Milliion ? is it not? Doesnt seem that much for a financial institution does it?

 

The Lita is pegged to the Euro, 3.4528 LIT = 1 EUR

Profits have risen from 17.75m EUR to 24.85m EUR

 

Thanks to the Rise of the Euro against the pound to around 80p

http://www.ecb.int/stats/exchange/eurofxref/html/eurofxref-graph-gbp.en.html

it was more like ?20m when it was declared at the start of the month(slightly less now)

 

In terms of their Sterling value profits are up around 60% from about ?12.4m last year.

[Coco]

I think that the events of the last 2 weeks should suggest that anyone using historic results to confidently say that a financial institution is not in trouble can easily be caught out.

 

Ukio Bankas share price is down by 57% in the last year. Not the worst performance by banks globally of course and the analysts who cover Ukio Bankas suggest that it is operating quite well.

 

The really important issue for Hearts however is the solvency/business of UBIG. And they don't release any data to even judge on their historic performance.

[H J Simpson]

Of course their profits are up - they have stopped paying their employees

[Jam Tarts 1874]

They're not doom & gloomers,

 

They're just people who live in the real world don't you know ?

 

No, it is the wrist-slashers who do not pay any attention to the real world. It is the wrist-slashers who believe any negative, un-substantiated gossip made up by the media or spread around by doom-mongers on here.

 

I have worked for some of the UK's largest financial institutions over the years and on 3 occassions was not paid due to an HR admin ******-up, none of these institutions have so far gone bust!

[JohnT74]

Thats about 18 odd Milliion ? is it not? Doesnt seem that much for a financial institution does it?

 

And 50% of that would be made up from the Craig Gordon money. Then there's the Bednar money.

 

It makes you wonder just how much Ukio would have made if HMFC wasn't being bled dry.

[Coco]

And 50% of that would be made up from the Craig Gordon money. Then there's the Bednar money.

 

It makes you wonder just how much Ukio would have made if HMFC wasn't being bled dry.

 

You are confusing the institutions - UBIG is not the same as Ukio Bankas.

[luckystrike]

The bosnian bauxite operation doesn't appear to be faring too well though, someone (admittedly a hobo) took great delight in emailing me this earlier

 

http://seenews.com/news/latestnews/bosnianaluminaplantbiracreducescapitalby98_tocoverlosses-111039/

 

Being neither a hoboconomist or an accountant i have absolutely no idea of the implications, perhaps someone could shed some light on it.

[Mon]

Just had a look at this. It affects UBIG rather than Ukio:

 

http://seenews.com/news/latestnews/bosnianaluminaplantbiracreducescapitalby98_tocoverlosses-111039/

 

I don't think things are going well at all.

[JohnT74]

You are confusing the institutions - UBIG is not the same as Ukio Bankas.

 

So the players transfer money went where?

[Tom Heaney]

Of course their profits are up - they have stopped paying their employees

 

That will certainly be the Daily Records spin on it

[Geoff Kilpatrick]

So the players transfer money went where?

 

Er, it will be in the next set of accounts.

[Geoff Kilpatrick]

The bosnian bauxite operation doesn't appear to be faring too well though, someone (admittedly a hobo) took great delight in emailing me this earlier

 

http://seenews.com/news/latestnews/bosnianaluminaplantbiracreducescapitalby98_tocoverlosses-111039/

 

Being neither a hoboconomist or an accountant i have absolutely no idea of the implications, perhaps someone could shed some light on it.

 

It sounds a bit like our debt for equity swap. Another Australian based poster had stated that this plant was buying bauxite from the spot market rather than drawing up a contract to fix the price, which wasn't exactly the wisest idea.

 

I've no idea how much of Vlad's "empire" is made up of this plant. It is telling though that Gareth was sent to manage it!

[footieman]

It is telling though that Gareth was sent to manage it!

 

Its funny thats the exact thing that just crossed my mind.

[JohnT74]

Er, it will be in the next set of accounts.

 

Er, I'm sure it will. But that ?11.3m is surely also reflected somewhere in the overall figure, which is what we're talking about here.

 

A profit of ?18m has been made at a time when ?11.3m was made in transfers through HMFC. That money wasn't subsequently spent on players, as you may have noticed. It seems that 63% of that profit was generated by the sales of Gordon and Bednar.

[topcat]

That seenews link doesn't work for me but I did find this on Reuters

SARAJEVO, Aug 22 (Reuters) - Birac, owner of Bosnia's sole alumina refinery, moved into profit in the first half of the year after completing a restructuring of the plant.

 

"During the first half of 2008 the new management team of Birac has started (an) effective restructuring process, which helped ... achieve the consolidated profit of 968,000 Bosnian marka (495,000 euro, $735,800)," Birac said in a statement late on Thursday.

 

Birac reported a loss of 9.5 million marka ($7.2 million) in 2007 and a loss of 3.75 million marka in the first quarter of this year, in a financial statement published on the Banja Luka Stock Exchange website (http://www.blberza.com).

 

It reported a profit of 26,000 marka in 2006.

 

Birac, majority owned by Lithuania's Ukio Bank Investment Group (UKB1L.VL: Quote, Profile, Research, Stock Buzz), said it had made a loss in previous years because of its need to invest in the plant.

 

The company said it spent 27 million marka in 2006 to repair equipment and boost output.

 

Since 2006, the plant, based in the eastern town of Zvornik, has operated using only 50 percent of its installed capacity of 600,000 tonnes because of low global alumina prices and the high cost of the electricity and gas needed in its production.

 

Output at Birac fell to about 300,000 tonnes of alumina in 2006 and 2007, from around 470,000 tonnes in 2005, and earlier this month the company laid off 245 workers.

"At this moment, optimal production amounts to 330,000 tonnes a year," Virginius Vajega, acting general manager, told Reuters.

 

"The situation with (the cost of) gas is not favourable for us. We could not ignore the general economic climate and had to make difficult decisions. At the moment, the optimal workforce for Birac is 950 employees," Vajega said.

 

Birac abandoned earlier plans to double annual production at the site to 750,000 tonnes after the privatisation authorities last year prevented it from bidding for a majority stake in the Aluminij Mostar aluminium plant, in the south of the country.

 

It also gave up plans to secure power supplies either through the building of a 50 million euro power plant or by the purchase of surplus electricity from the Serb Republic under a five-year contract.

 

"These investments are no longer under consideration," Vajega told Reuters.

 

However, the need to secure cheaper energy price remains a key concern for Birac, which faces competition from companies with access to cheaper energy supplies and lower costs, Birac CEO Martynas Ugianskis said in a separate statement.

 

Last month, the company asked the government of the Serb Republic, where Birac is based, to re-programme its debt of 9 million marka as part of its long-term consolidation strategy.

[footieman]

Er, I'm sure it will. But that ?11.3m is surely also reflected somewhere in the overall figure, which is what we're talking about here.

 

A profit of ?18m has been made at a time when ?11.3m was made in transfers through HMFC. That money wasn't subsequently spent on players, as you may have noticed. It seems that 63% of that profit was generated by the sales of Gordon and Bednar.

 

When did Ukio Bankas become the parent company? I thought it was UBIG.

[Coco]

Er, I'm sure it will. But that ?11.3m is surely also reflected somewhere in the overall figure, which is what we're talking about here.

 

A profit of ?18m has been made at a time when ?11.3m was made in transfers through HMFC. That money wasn't subsequently spent on players, as you may have noticed. It seems that 63% of that profit was generated by the sales of Gordon and Bednar.

 

Ukio Bankas doesn't own Hearts and so any profit on the transfers of Gordon and Bednar would not be reflected as a profit for them (unless there was some incredibly convoluted player registration ownership situation - Tevez style).

 

Where it might impact is that the Gordon/Bednar sales and debt for equity swap by Hearts has improved the capital position of Hearts - and meant that fewer provisions against Hearts default are required by Ukio Bankas.

 

Perhaps someone can confirm - but I don't think that Ukio Bankas have even been charging Hearts a commercial interest rate for much of the time that they have been involved?

[Mon]

The link didn't give as much information. If you can't use the link this is basically what it says:

 

Bosnian Alumina Plant Birac Cuts Capital By 98% To Cover Losses

BANJALUKA (Bosnia and Herzegovina), August 22 (SeeNews) ? Bosnia?s sole alumina plant Birac, owned by Lithuanian Ukio Banko Investment Group, said on Friday it will reduce its capital by 98% to 15.45 million marka ($11.8 million/7.9 million euro) to cover outstanding losses

[topcat]

Er, I'm sure it will. But that ?11.3m is surely also reflected somewhere in the overall figure, which is what we're talking about here.

 

A profit of ?18m has been made at a time when ?11.3m was made in transfers through HMFC. That money wasn't subsequently spent on players, as you may have noticed. It seems that 63% of that profit was generated by the sales of Gordon and Bednar.

 

Are you just pretending to be a bit dim or do you really need this explained?

[luckystrike]

Capital would, in this instance i think, refer to resource. so in effect it sounds like they have laid off 98% of their work force ???

[portobellojambo1]

If you click on the one comment posted on that site it says the Bank sold 27 million worth of property in Moscow in July, the Russian property market must still be thriving.

Good on you Vlad, that should silence the dodgy Press monkeys.

 

Not got any real interest in what is happening behind the scenes at UKIO but if there profits for last year was around ?18 million, and this year they are sitting at ?20 million, which seems to include the sale for ?27 million of offices in Moscow (which were on the market for around ?50 million less than 2 years ago) I am not sure that is particularly good figures to be returning, in real terms, excluding the sale of property, it suggests a rather healthy loss, which is more in keeping with present market trends.

 

No financial institution, no company, is going to escape what is happening in the World at the moment.

[topcat]

This is the Release on the Ukios Bank website

 

 

Ūkio bankas reports 8-months net profit of LTL 85.8 million

During eight months this year Ūkio bankas earned LTL 85.8 million net unaudited profit which exceeds the profit earned during the same period in 2007 (LTL 61.3 million) by 39.9 percent.

 

?Ūkio bankas pursues the main objective to ensure the balance between operational growth and the quality of services. To this end clients were offered financial solutions that reflect market conditions and great attention was paid to the qualification of client service officers. The growing number of clients as well as stable and efficient lending policy also added to the Bank?s success,? said Ūkio bankas Board chairwoman Edita Karpavičienė.

 

According to Ūkio bankas Board chairwoman, this year the Bank will continue investing into new services, take part in prospective business projects and build trust and loyalty of the present and potential Ūkio bankas clients.

 

Ūkio bankas provides a wide range of services both to private and business customers. The Bank has 12 branches and 44 client service units across Lithuania.

[vilenin]

No, it is the wrist-slashers who do not pay any attention to the real world. It is the wrist-slashers who believe any negative, un-substantiated gossip made up by the media or spread around by doom-mongers on here.

 

I have worked for some of the UK's largest financial institutions over the years and on 3 occassions was not paid due to an HR admin ******-up, none of these institutions have so far gone bust!

 

Bloody hell - you must have worked for some right dodgy punters. In 25 years I've never not been paid on time by any employer, except once - and the company involved went bust within months.

 

I've no idea what the players not getting paid means in wider terms, but to suggest that being concerned about it is a sign of being a wrist-slasher is unthinking head in the sand material even by the standards of the blindly pro-Romanov..

[JohnT74]

Who is it we're paying ?5000 a day in interest to to service the debt? Ukio or UBIG? The ?11.3m in transfers will have gone the same way.

[Geoff Kilpatrick]

This is the Release on the Ukios Bank website

 

 

Ūkio bankas reports 8-months net profit of LTL 85.8 million

During eight months this year Ūkio bankas earned LTL 85.8 million net unaudited profit which exceeds the profit earned during the same period in 2007 (LTL 61.3 million) by 39.9 percent.

 

?Ūkio bankas pursues the main objective to ensure the balance between operational growth and the quality of services. To this end clients were offered financial solutions that reflect market conditions and great attention was paid to the qualification of client service officers. The growing number of clients as well as stable and efficient lending policy also added to the Bank?s success,? said Ūkio bankas Board chairwoman Edita Karpavičienė.

 

According to Ūkio bankas Board chairwoman, this year the Bank will continue investing into new services, take part in prospective business projects and build trust and loyalty of the present and potential Ūkio bankas clients.

 

Ūkio bankas provides a wide range of services both to private and business customers. The Bank has 12 branches and 44 client service units across Lithuania.

 

They've gone awfully quiet on opening in Edinburgh.

[topcat]

Who is it we're paying ?5000 a day in interest to to service the debt? Ukio or UBIG? The ?11.3m in transfers will have gone the same way.

 

Hearts were paying interest on two distinct blocks of debt. Twelve million pounds was owed to UBIG and the remainder to Ukios. The UBIG debt has been traded in for more shares so we will now only paying interest on the remainder that is owed to UBIG (mostly the legacy debt from HBOS). The precise level of the current debt and hence current interest payments is unknown but it will be substantially less. My informed guess would be between ?2,500 and ?3,000 a day, but it will depend on how much of the transfer revenue has been swallowed by the wage bill.

 

As far as interest payments from Hearts contributing to Ukios' profits goes that's a bit of a red herring when you consider:

 

Firstly:

The lender is presumably having to pay depositors some of that money as interest and the bank could make similar returns far more easily by simply buying government bonds.

 

And Secondly:

The fall in the value of sterling means that the value of the Debt in Euros, and hence Litas, will have fallen by about 12.5% over the last year meaning that Ukios' losses on the depreciation will be bigger than the interest payments.

[Tasavallan]

Just had a look at this. It affects UBIG rather than Ukio:

 

http://seenews.com/news/latestnews/bosnianaluminaplantbiracreducescapitalby98_tocoverlosses-111039/

 

I don't think things are going well at all.

Correct. Hearts are part of UBIG. UBIG is not a bank. UBIG make their money through investment. Their main investment is in Bauxite/Aluminium.

 

While Romanov will personaly have loads of money squirrelled away, UBIG may well be short of funds.

 

[Tasavallan]

I have worked for some of the UK's largest financial institutions over the years and on 3 occassions was not paid due to an HR admin ******-up, none of these institutions have so far gone bust!

I work for one of the top three privately owned companies in the world. As recently as the end of August my salary was not paid on time. The accountant 'forgot' to transfer the money. After some irate phonecalls the payment went through by a same day CHAPS payment.

 

It's not just small companies that have glitches.

 

However, current events would suggest that UBIG are waiting for a cash influx so they can pay the salaries. Maybe a loan from big daddy.

 

[luckystrike]

I work for one of the top three privately owned companies in the world. As recently as the end of August my salary was not paid on time. The accountant 'forgot' to transfer the money. After some irate phonecalls the payment went through by a same day CHAPS payment.

 

It's not just small companies that have glitches.

 

However, current events would suggest that UBIG are waiting for a cash influx so they can pay the salaries. Maybe a loan from big daddy.

 

 

So on the basis that your pay was transferred on the same day using chaps, why is it that this couldn't be done with the players wages. Even more bizarre when you conider the intrinsic link with a bank.

 

On that basis i can only concur that their must be some sort of liquidity problem, which is a real concern.

[Guest GhostHunter]

So the players transfer money went where?

 

To Hearts.

[Coco]

They've gone awfully quiet on opening in Edinburgh.

 

http://www.hmfckickback.co.uk/showthread.php?t=26231