There are still some banks in the Latvian market with which “Signet Bank“Shareholders could talk about the merger in the future,” said the chairman of the board of Signet Bank Robert Idelson.
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“For some time now, in addition to organic growth, the acquisition opportunities of another market player have been evaluated. We have not only evaluated”Expobank“and we see the potential for consolidation in the future,” Idelson said.
In turn, the merger with Expobank, the acquisition of which was announced by Signet Bank in mid-February, is expected to be completed by the autumn. After the merger, the bank’s assets will be approximately 420 million euros.
“There are now a few months left before the merger is complete, and we will all be in the same building soon, which will speed up integration. In addition, this is not as complex a merger as it was, for example.”Nordea” a “DNB Bank “, which were large and complex institutions. Our situation is much simpler, and that is why this transaction took place, because we saw a good way to grow our business. than planned, “said Idelson.
Asked why the decision was made to buy the whole bank and not, for example, a certain portfolio of the bank’s assets, Idelson said the owner of Expobank wanted to sell the whole bank in order to leave the market. Signet Bank also saw positive things in the merger, as the merger of the two banks’ infrastructure and teams creates a synergy effect.
“There are four biggest players in the Latvian banking sector, followed by Rietumu banka and BluOr Bank (formerly”BlueOrange Bank “), which are also large enough. This is followed by a group of small banks, the largest of which is currently Signet Bank. “It is also not necessary for all banks to easily change their business model after 2018. Therefore, we see that there is potential for further consolidation, and we are clearly interested in and able to promote this consolidation,” said Idelsons.
He pointed out that the Latvian banking sector after 2018, when “ABLV Bank“liquidation and overhaul” of the financial system must go through a certain period of evolution.
“And [tirgus] players who see no prospects in the new realities want to leave this market, and I think “Rigensis Bank“It will not be the only bank that will make such a decision. On the other hand, there are new entrants. The reality is that change is relatively slow. Banks are highly regulated, so processes are not as dynamic as in other sectors. So if we talk about “In my opinion, after ten years there will be far fewer banks in Latvia and there will be some new banks or the shareholders of some banks will have changed,” Idelsons predicted.
He stated that even after the merger with Expobank, Signet Bank’s main line of business will still be related to servicing Latvian entrepreneurs and their medium-sized companies.
“We are an alternative to large and perhaps slightly bureaucratic banks because we are more dynamic and offer a wider range of services directly in attracting funding. In recent years, we have achieved good results in organizing bond issues and the direction of the capital market is clearly our priority. we see quite a lot of potential. (..) That ‘s why we are able to grow independently without acquiring other banks, “said Idelson.
He pointed out that last year “Signet Bank” organized bond issues in the amount of more than 150 million euros, but a total of 200 million euros in financing has been attracted to clients.
“Signet Bank” was founded in 1992 under the name “Latvijas Biznesa banka”. In July 2013, the bank changed its name to Bank M2M Europe, while in September 2017, when the majority shareholders of the bank became a group of Latvian and international investors, which includes Hansalink, Fin.lv and Signet Acquisition III, the bank became Signet Bank.
At the end of 2021, Signet Bank had assets of € 354.731 million and an audited loss of € 316,000.
In February 2012, it became the sole owner of Expobank Russia businessman Igor Kim, who was previously also a shareholder in the bank’s previous owner, MDM Bank. On April 28, 2012, LTB Bank changed its name to Expobank. The bank was established in 1991 under the name “Trade Bank”, but later it operated under the names “Latvian Trade Commercial Bank” and “Latvian Trade Bank”.
According to audited data, Expobank’s assets at the end of 2021 amounted to EUR 78.629 million. Last year, the bank made a loss of 2.113 million euros.
At the end of 2021, Signet Bank was the eighth largest bank in Latvia, while Expobank was the smallest bank in Latvia.
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