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Kerli Gabrilovica
On 30 August 2018 Luminor Group’s and country interim reports for Q2 2018 were published.
During the Q2 2018, Luminor Latvia has strengthened its position of being the second largest financial services provider on the Latvian market. Net profit earned in Q2 2018 was 17.6 million euro and lending volumes are stable. Return on equity amounted to 13.22% in Q2 2018 which is 6.3% above Q1 2018 result.
Luminor Latvia Q2 2018 interim report.
Kerli Gabrilovica, Country Manager of Luminor Latvia
“Despite a wave of pessimism earlier this year, so far in 2018 the Latvian economy has maintained the growth pace achieved last year, expanding by ca. 4.5% in the first half. We expect only a minor slowdown in the remainder of the year. This means that people of Latvia are enjoying higher living standards than ever before, the volume and diversity of entrepreneurial activity is like never before. This presents financial sector with new opportunities and challenges. The volume of savings is growing, which we have to carefully manage to ensure that we are promoting the growth of our economy and enterpreneurs,” comments Kerli Gabrilovica, Country Manager of Luminor Latvia.
“There have been many significant achievements during the last quarter for Luminor as well, but the greatest one is seeing that we have maintained and strengthened our customer base and both - the number of active customers and the overall customer activity - are growing. During the Q2 2018, we have improved customer service and the overall customer experience. Products and services via remote channels have been actively introduced, allowing clients to organise their financial life remotely and save time.
Expectations regarding the ease of use and speed of everyday transactions are growing at lightning speed. We can see that we are on the right track - we want to be simple in the way we work and bring our customers the most efficient services in line with their wishes and in the shortest possible delay. We look forward to introducing our customers to new digital solutions that will change the way we all use financial services.”
During the Q2 2018, Luminor Latvia has established a new Progressive pension plan and merged two pension companies that will contribute to the growth of customer pension savings, allowing a reduction in fees by 15% on average. Luminor has also been selected as one the financial services providers that will implement new state aid financial support for entrepreneurs – portfolio guarantees – that will allow for improved speed and accessibility in receiving financing.
In the Q2 2018 Luminor Group reported solid operating results and client activity across all business segments, exceeding the last quarter’s performance. The main drivers are an increased utilisation of daily banking products and offerings, as well as the stronger sales results and higher utilisation of trading and hedging instruments.
Good developments are backed with favourable market conditions (in all Baltic countries GDP growth is above 3%) as the economic stabilities are high and tailwind in customer bases is strong and continuing.
Comments by Erkki Raasuke, CEO of Luminor Group:
“Our main challenge is to balance daily customer services with a massive transformation agenda. We are merging six organisations in three countries, creating a new structure and simplifying our work. At the same time, we are building the foundation for our future growth and development. This is a unique undertaking in the Baltics in terms of both its scope and complexity. I am deeply thankful to our patient customers and hard-working colleagues,” says Erkki Raasuke, CEO of Luminor Group.
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