Luminor Bank AS has published an interim report for the fourth quarter of 2021. During that time, the bank has increased its business volumes and net profit compared to the same period last year.
In the fourth quarter of this year, the volume of loans issued to business customers increased, and the bank continued to play an important role in the development of the Baltic capital market by organizing the first issue of green bonds to its customers. The volume of services provided to individuals also increased, and the volume of housing loans issued in November in the Baltics was the highest in the bank’s history. Luminor introduced digital wallets to its customers and upgraded its ATM network. The Bank has also conducted its first Environmental, Social Responsibility and Governance Assessment (ESG).
The bank’s net profit in the fourth quarter reached 20.7 million euros, compared to 18.6 million in the same period last year. The increase in profit was mainly due to an increase in income and a decrease in expenses, which was facilitated by a decrease in provisions for non-performing loans. The bank’s return on equity increased to 5% compared to 4.5% in the same period last year. After a dividend payout of € 190 million in the fourth quarter, Luminor’s Tier 1 capital ratio (CET1) remained stable at 20.5% on 31 December, excluding 2021 earnings.
“Despite the impact of Covid-19 and growing concerns about inflation, Luminor experienced excellent growth in the fourth quarter. I am convinced of the further development of the bank, because our priority remains to improve our customers and efficiency, while fulfilling our obligations to society and the environment. We have made great strides in implementing our strategy, and the good results clearly show that. The hard work of our employees has contributed to the increase in profits, and I am very proud of their investment and efforts. The work will continue, but I am already pleased with what has been achieved so far, especially in the area of lending, ”says Peter Bosek, Chairman of the Board of Luminor Bank.
“In the last quarter of last year, the population remained very interested in purchasing real estate, which facilitated housing lending. Companies have also increasingly used financing opportunities for their development. In total, the amount of loans issued by Luminor in Latvia at the end of the year increased by 175 million euros, reaching 2.9 billion euros, compared to the end of 2020. Also this year, we will continue to support our customers by issuing financing for both the purchase of housing and the development of companies. The pandemic has also accelerated the demand for digital services, and we will continue to work on automating processes, expanding digital services and increasing productivity with the latest technological tools, ”he said. Kerli Gabrilovica, Head of Luminor in Latvia.
Luminor’s Q4 2021 report is available in English here.
Luminor
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