Luminor on Track with its Transformation in the Second Quarter of 2019

Luminor Bank AS today publishes its audited interim report for the second quarter of 2019, which proves it to be well on track with its transformation programme.

Luminor’s funding position continued to improve during the second quarter with the loan-to-deposit ratio improving to 117.1% from 142.7% a year ago. Deposits from customers have grown by more than 1 billion euros from the same quarter of 2018. The non-performing loan ratio also improved significantly to 4.3% from 6.1% a year before. The costs of the transformation meant that net profit fell as planned from 43.6 million euros the year before to 6.7 million.
 
Luminor has also widened its investor base further, issuing its second public senior unsecured bond of 300 million euros in June. The bond issue attracted orders in excess of 600 million euros from 75 individual investors across Europe, of which more than 80% were non-Baltic accounts. The scale of the interest among investors proves that Luminor’s financial profile is strong and that Luminor as a credit institution is viewed across a broad European investor universe as a solid and emerging investment case.
 
Luminor Bank CEO Erkki Raasuke said that in the second quarter of 2019, Luminor came close to achieving full implementation of the new operating model. “By simplifying our structure and our decision-making process, consolidating our IT, and strengthening our controls, we have become a more efficient organisation. I am glad to note that we are on schedule with our transformation”, he stated.
 
Luminor is the third-largest provider of financial services in the Baltics, with approximately 1 million clients, 2566 employees, and market share of 16.4% in deposits and 20.2% in lending as at the end of the second quarter of 2019. Total shareholders’ equity amounts to EUR 1.6 billion and Luminor is capitalised with a CET1 ratio of 18%. Luminor’s vision is to become the best financial ecosystem for its customers.

Luminor audited Q2 2019 report can be found here.