We use cookies to make your browsing experience better. Agree and share a cookie with us!
Luminor Bank AS today publishes its interim report for the fourth quarter of 2019, which shows that the bank finished the year with a significantly improved funding position, being on track with its transformation.
Luminor’s funding position improved with the loan-to-deposit ratio standing at 99.9 % at the end of the fourth quarter, down from 126.5% a year ago. The deposit portfolio increased by 12.9% and loan portfolio decreased by 10.9% over the past twelve months, while assets under management reached EUR 1.45 billion, increasing by 20%. In light of exceptional costs mainly related to necessary IT investment, Luminor’s net profit for the last quarter of 2019 ended at EUR 4 million, a slight increase compared to the same period last year.
In the fourth quarter, Luminor also made good progress with building the payment infrastructure and information systems independent of its former parent banks, having completed the carve-out of SEPA payment flows and making significant progress in establishing an independent correspondent banking network.
Another important step in reaching a fully independent funding structure was receiving a license to issue covered bonds, issued to Luminor by the European Central Bank in December.
Luminor Bank CEO Erkki Raasuke said that the last quarter of 2019 marked the ending of yet another stage in Luminor’s transformation. “We have improved our funding position and the implementation of the new operational model is progressing according to plan. The favourable macro conditions in the Baltics provide a good backdrop for Luminor to now enter a growth stage, contributing to sustainable economic growth of our home region.”
Luminor is the third-largest provider of financial services in the Baltics, with approximately 1 million clients, 2500 employees, and market share of 16.6% in deposits and 18.7% in lending as at the end of the fourth quarter of 2019. Total shareholders’ equity amounts to EUR 1.6 billion and Luminor is capitalised with a CET1 ratio of 19.7%.