In the 1st quarter of 2024, Luminor Bank improved its performance and strengthened its liquidity and capital positions. The quality of the bank’s loan portfolio remains very good – non-performing loans make up only 2 percent. of all loans.
In the first quarter, Luminor earned 66.8 million. EUR profit, ie 10.8 percent. more than in the same period last year. Meanwhile, the amount of taxes paid by the bank increased from 10.3 million up to 11.6 million euros.
Luminor has improved its retail banking product offering and continued to develop its business in order to provide the highest possible quality services to clients. The bank maintained normal lending volumes and further increased the volumes of the fixed deposit portfolio. In the area of business banking, Luminor continued to support the development of the capital markets of the Baltic countries and the transition to sustainable finance and issued a new issue for the renewable energy sector. The bank also implemented an agreement with the European Investment Bank to facilitate additional lending to small and medium-sized enterprises in the Baltic States and to support a sustainable economy.
Luminor bank improved the net interest rate to 3.64 percent, reduced the cost-to-income ratio to 47.5 percent. and reached 14.8 percent. annual rate of return on equity. The bank’s operating profit grew by 8.4 percent. due to increasing net interest income. Operational costs increased by 4.4 percent due to the improvement of IT systems.
Luminor Bank’s liquidity and capital positions are strong, with a liquidity coverage ratio of 207.6 percent at the end of the quarter, and a common equity Tier 1 and total capital adequacy ratio, including net profit for the period, of 25.4 percent. Luminor paid out 194.5 million in April. EUR dividends. Taking into account the dividend payment, the bank’s pro forma capital adequacy ratio would be 22.6 percent at the end of the quarter.
April 30 international rating agency Moody’s Ratings (Moody’s) announced that the long-term senior unsecured debt rating of Luminor Bank was upgraded from Baa1 to A3.
Luminor Bank CEO Wojciech Sass:
“During the first two months of working at Luminor Bank, I had the opportunity to get to know our clients better, I was impressed by my colleagues and inspired by the opportunities available. We have a long way to go to be successful with our customers, but we can start from a strong foundation, built on the character of our employees and what they achieved under previous CEO Peter Bosek. From the very beginning, I have focused on the quality of our services and the improvement and efficiency of the bank’s IT systems.”
Head of Luminor Bank in Lithuania Jonas Urbonas:
“Although the market is still living in the anxious mood of last year, when the economies of the Baltic countries were clearly at a standstill, in the first quarter we have already seen shoots of optimism foretelling spring in one place or another and we have recorded a revival of business. The high quality of the loan portfolio demonstrates the resilience and ability of Baltic business and private clients to rationally plan and act in any circumstances.”
Luminor 2024 You can find the interim report for the first quarter here.
About Luminor:
Luminor is the leading independent bank in the Baltic States and the third largest provider of financial services in the region. We serve the financial needs of individuals, families and businesses. Like our home markets – Estonia, Latvia and Lithuania – we are young, dynamic and forward-looking.
More information:
Agnė Mažeikytė-Šmeliova
Luminor communication project manager
Phone: +370 673 46337
[email protected]
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