Luminor publishes its Interim Report for the second quarter of 2022
Luminor reported improved performance despite uncertain environment. Luminor published inaugural sustainability report and commits to net zero targets.
The second quarter continued to be affected by the geopolitical and economic impacts of the invasion of Ukraine. Luminor focused on ensuring continuity of service to its customers – individuals and companies resident in the Baltic countries – and supporting its employees and their families.
As Luminor adjusted its operations to the new operating environment, the bank improved its business performance, raised its efficiency which resulted in an increase in net profits compared to the same quarter last year. The bank confirmed that it has no direct, and marginal indirect, exposure to Russia, Belarus or Ukraine.
Despite the challenging environment, the bank supported its customers by increasing the loans to individuals and companies. Luminor also continued to innovate, launching instant payments and establishing a joint ATM network for rural areas in Lithuania. During the quarter, Luminor issued its inaugural sustainability report and published its ESG targets, committing to net zero greenhouse gas emissions by 2050. On 1 July the bank completed the previously announced acquisition of Maksekeskus, the leading e commerce payment service provider in the Baltic region.
Net profit in the second quarter was 29.4 million EUR; the improvement was driven principally by an increase in revenues as the bank increased its net interest and net fee income, supported by a 21% reduction in expenses. The bank’s return on normalised equity improved to 9.6%, from 7.1% in the same period last year. Its capital position remains strong, with Common Equity, Tier 1 and Total capital ratios, including net profit for the period, at 21.3% at quarter end.
Luminor Bank CEO, Peter Bosek, said: “Our priority in the second quarter was to ensure the continued delivery of services to our customers, support our employees, and assist those most affected following the invasion of Ukraine.
“The outlook for the Baltic region is strong despite the near-term challenges. Luminor’s current position, path and ambitions are clear. In these less certain times, we are here for our customers. I look forward to Luminor doing more business, more effectively, with more individuals and companies across our home markets. In so doing, we will maintain our strong financial standing, exercise prudent risk management, and fulfil our wider obligations to our key stakeholders.”