Luminor announced today its financial results for 2Q25, reporting increased lending, decreased expenses, and an improvement in the quality of its loan book. The bank’s liquidity and capital positions remained strong.

Luminor generated a profit after tax of 46.2 million EUR in the quarter as compared to 45.1 million EUR in the same period last year. Total operating income decreased by 24.6 million EUR due mainly to a decrease in net interest income, as reference interest rates reduced. The bank maintained its cost discipline and reduced total operating expenses by 2.4 million EUR. The bank reported a cost to income ratio of 63.0%, and generated a return on equity of 10.5%.

Luminor maintained its strong liquidity and capital positions and improved the quality of its loan book, with non-performing loans reducing to 1.7% of gross loans.

In Retail Banking, overall demand for mortgage lending increased supported by Luminor’s special offer of financing for energy-efficient buildings. In Corporate Banking the bank saw continued demand for credit, particularly from small and medium-sized enterprises.

Loans to customers increased by 241.5 million EUR to 10.8 billion EUR. An increase of 158.3 million EUR in lending to individuals, driven principally by growth in mortgage lending, was complemented by growth in loans to companies of 83.2 million EUR.

“Lending volumes in Latvia continue to grow: residents are increasingly regaining the desire to make long-term decisions about investments in their future. In this half-year, Luminor’s housing lending volume in Latvia has increased by 63% compared to the same period last year, and the number of applications from customers has increased by more than half. Lending is mainly driven by the fall in EURIBOR rates, and the increase in lending is a clear signal of growing public confidence in economic development. At the same time, the activity of entrepreneurs is also growing – the number of newly issued business loans in Latvia in the first half of the year has increased by more than a third compared to the situation last year. These indicators confirm that both households and companies are currently actively using opportunities for development, and the bank’s role is essential in implementing these plans,” says Gita Juršāne, Deputy Branch Manager of Luminor Latvia.

Wojciech Sass, Luminor Bank Chief Executive, said: “Our home markets of Estonia, Latvia, and Lithuania continued to benefit from lower interest rates and improved performance of Nordic export markets. Through the commitment of our employees we generated good, broad-based demand for new lending and increased Loans to customers over the quarter.

We remain focused on our customers and continue to work on improving our value proposition, become more efficient and grow our lending in line with customer demand.”

Luminor’s Q2 2025 interim report can be found here.