Luminor Bank AS today publishes its interim report for the third quarter of 2019, which shows that the bank has made continuous improvement in its funding position, while also making headway with separating from the systems of its parent banks.

Luminor’s funding position continued to improve, with the loan-to-deposit ratio standing at 108.4 % at the end of the third quarter, down from 139.4% a year ago. Deposit portfolio increased by 16,7% in the third quarter over the same quarter of last year. As anticipated, net profit decreased for the period, driven by the cost of our ongoing transformation. Total net profit for the third quarter of this year was 16.9 million euros.

The highlight of the third quarter of 2019 was the completion of the acquisition of a 60% majority stake in Luminor by a consortium led by private equity funds managed by Blackstone. The transaction, worth 1 billion euros, represents one of the largest investments in Baltic history.

Luminor Bank CEO Erkki Raasuke said that Luminor also made good progress in the third quarter with separating itself from the payment infrastructure and information systems of its parent banks. “As a result of finalising the first phase of migration in Latvia and Lithuania, we have successfully transferred nearly 24% of our active legacy Nordea customers, taking us closer to our objective of achieving an independent payment infrastructure. I am glad to note that we are in a strong position to continue with our transformation as planned, with Blackstone as an ideal partner for this extensive undertaking”, he stated.

Luminor unaudited Q3 2019 report can be found here.