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Luminor AGM decided yesterday not to distribute a dividend for the financial year 2019 in light of the current situation with COVID‑19.
Chairman of the Supervisory Council of Luminor Nils Melngailis: “In light of recent events in relation to COVID‑19, Luminor decided not to distribute a dividend for financial year 2019. Luminor ended 2019 with strong results and a significantly improved funding position and we are using this position to support our customers in the current situation. We will continue providing banking services and necessary financing for current, as well as new customers.”
Luminor Bank AS ended 2019 with a significantly improved funding position. At the close of 2019, Luminor’s loan‑to‑deposit ratio stood at 99.9 %, down from 126.5% in 2018. The deposit portfolio increased by 12.9%. Our focused efforts towards asset quality resulted in a 37% reduction in the non‑performing loan portfolio over the year. Pension assets under management increased by 20%. In light of significant investments and one‑off costs related to the group transformation, combined with a reduction in net loans following efforts to close the funding gap, and the review of lending portfolios, net profit for 2019 was EUR 54 million.
Luminor is the third-largest provider of financial services in the Baltics, with 940,000 clients, 2,500 employees, and market shares of 16.6% in deposits and 18.7% in lending as of the end of the year of 2019.
Total shareholders’ equity amounts to EUR 1.6 billion, and Luminor is capitalised with a CET1 ratio of 19.7 %.