Luminor Bank AS reported improved business performance in the first quarter. The bank also confirmed it has no significant exposure to Russia, Belarus or Ukraine.

The first quarter was overshadowed by the geopolitical and economic impacts of the invasion of Ukraine, with the bank focused on ensuring continuity of service to customers – individuals and enterprises resident in the Baltic countries – while supporting its staff and assisting the efforts to help displaced Ukrainians arriving in the region. As Luminor adjusted its operations to reflect the new operating environment, the bank improved its business performance, raised its efficiency and increased net profits as compared to the same quarter last year. Following an evaluation of the bank’s credit portfolio, Luminor also confirmed that it has no direct exposure to companies domiciled in Russia, Belarus or Ukraine.

Loans to customers grew in the quarter, and the bank continued to innovate, launching instant payments in Lithuania, and progressing the modernisation of its ATM network. Luminor also signed an agreement to acquire Maksekeskus, the leading e-commerce payments service provider in the Baltic region to help broaden its digital payment solutions. The bank enhanced its evaluation of ESG risk, drafting new strategies for those sectors judged to be most exposed to climate risk.

Net profit in the first quarter was 15 million EUR, up from 5.8 million EUR in the same period last year. This improvement was driven by growth in revenues and reduction in expenses, which followed the completion of several planned initiatives in 2021, offset partially by higher credit loss allowances. The bank’s return on equity improved to 3.9%, from 1.4% in the same period last year and its capital position remains strong with the Common Equity, Tier 1 and Total Ratios at 21.2% at quarter end.

Luminor Bank CEO, Peter Bosek, said:

Luminor’s priority in the first quarter was to ensure the continued delivery of services to our customers, supporting our employees, and assisting those most affected following the invasion of Ukraine.

Despite the geopolitical climate, Luminor continued its growth during the first quarter, making good progress against our strategy. While there is still work ahead of us, I am proud of the efforts, dedication and commitment of our staff and have renewed confidence in our path forward, in particular the sustained growth of our business.

Luminor Bank AS, Interim report Q1 2022