Luminor reports increased net profit of 20.7 million EUR for the fourth quarter of 2021

Luminor Bank AS today publishes its interim report for the fourth quarter of 2021. The bank boosted its business performance and increased net profits as compared to the same quarter last year.

In the quarter, loans to business customers grew and the bank was once again at the heart of developments in the Baltic capital markets, lead managing two inaugural green bonds for its customers. Retail banking also saw strong performance and in November Luminor achieved its highest ever monthly sales of mortgages. The bank introduced digital wallets and enhanced its ATM network. In addition, Luminor conducted its first ESG materiality assessment amongst key stakeholders.

Net profit in the fourth quarter was 20.7 million EUR, up from 18.6 million EUR in the same period last year. This improvement was driven predominantly by an increase in revenues and reduction in expenses, offset partially by credit loss allowances, compared to a net reversal of credit loss allowances in the fourth quarter of 2020. The bank’s return on equity improved to 5.0%, up from 4.5% in the same period last year. After payment of 190 million EUR dividend during the quarter, Luminor’s capital position remains strong with a CET 1 ratio at 31 December of 20.5%, not including the profit for 2021.

Luminor Bank CEO, Peter Bosek, said: 

‘Luminor saw good growth in the fourth quarter despite the impact of COVID-19 and rising concerns around inflation. I am confident about our progress, as we remain focused on our customers and improving our efficiency while fulfilling our wider obligations to our communities and the environment.

‘We have made great steps in executing our strategy which is demonstrated by these results. All this progress has been driven by the dedication and hard work of our staff and I'm very proud of their efforts. There is still work ahead of us, but I am encouraged by the headway we have made, in particular the sustained growth of our lending business.

Luminor’s fourth quarter 2021 report can be found here.