Luminor Bank JSC has worked with a profit of 5.8 million euros in the first quarter of this year, according to the bank’s published report for the first quarter of 2021.
The bank’s profit increased to 5.8 million euros in the first quarter of this year, mainly due to a decrease in provisions for credit losses by 27.9 million euros. This is a significant increase compared to the first quarter of 2020, when the bank’s loss due to the impact of Covid-19 was 21.2 million euros. The share of non-performing loans in the total gross loan portfolio of the bank has decreased to 3.1%.
Luminor Priorities for the new strategic phase include boosting customer satisfaction, growth in lending, especially in the mortgage and SME sector, and increasing digitization and automation, while meeting the bank’s commitments to society and the environment.
During the first quarter of 2021, the bank made progress in achieving these goals by increasing its market share in the Baltics in the field of mortgage lending, issuing financing in the amount of 175 million euros during the quarter, which is 92 million euros more than in the same period last year. In general, at the end of the first quarter of this year Luminor The bank’s mortgage lending portfolio in the Baltics reached 4.6 billion euros.
“After 2020, full of unexpected challenges, we have started this year with optimism, continuing to provide support to our customers, residents and entrepreneurs. As one of the leading lenders, we observe that in the first months of this year, people continued to be interested in home loans. and young people are ready to make long-term plans to buy or build their own homes, many of which have also been motivated by the pandemic and teleworking, caution has also waned among business clients and there is a constant interest in accessing finance not only to develop their business, but also to develop new products and services, adapting them to existing conditions, “says Kerli Gabrilovica, Luminor manager in Latvia.
In the first quarter of this year Luminor opened a specialized loan portfolio for small and medium-sized enterprises, and organized the first commercial securities program in the region. In turn, in January this year Luminor signed a five – year partnership with IBM to accelerate the bank ‘s digital transformation.
“We are currently focusing on the next phase of the strategy, which includes increasing customer satisfaction, credit and digitalisation. We have a lot of work to do to achieve these goals, but I am pleased with the first progress in the first quarter of 2021. The Covid-19 pandemic has affected our However, we have maintained high standards of customer service, made progress in the next phase of the strategy, and improved our financial performance by returning to profit compared to the same period last year. In general, the Baltic economies have been resilient enough during the pandemic. Luminor will conclude more and more transactions with both individuals and companies in Latvia, Estonia and Lithuania, “says Peters Boseks, Luminor Chairman of the Board of the Bank.
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