Luminor reports increased profits in the third quarter of 2021
Luminor Bank AS today publishes its interim report for the third quarter of 2021. The bank boosted its business performance and increased net profits as compared to the same quarter last yea
New sales volumes in mortgages were double those as compared to the prior year, while loans to business customers grew during the quarter. Luminor continued to play a pivotal role in developing the Baltic capital markets including leading two new bonds from debut issuers. In addition, to advance its ESG agenda, Luminor became the first Baltic financial institution to join PCAF, the partnership for carbon accounting financials.
Net profit increased to 26.7 million EUR compared with 22.3 million EUR in the same quarter last year. This improvement was driven principally by an increased net reversal of credit loss allowances and resulted in an improved return on equity of 6.2%, as compared to 5.4% in the third quarter of 2020. Luminor has a CET1 ratio of 22.3%, as compared to its internal target Total Capital Ratio of 17%. Once again, the bank retained the profit it generated in the quarter.
Luminor Bank CEO, Peter Bosek, said:
‘The third quarter saw the continued expansion of the Baltic economies despite COVID‑19. We continue to monitor the pandemic and the effect of new restrictions on our customers, the societies we serve, and our staff.’
‘I continue to be encouraged by our progress in realizing our strategy, evidenced by the third quarter results and made possible by the dedicated work of our employees. Although there is still much work ahead, I am once again pleased to highlight particularly the positive developments in new sales volumes in mortgages and loans to business customers in line with our risk appetite, as well as our role in advancing the Baltic capital markets.’
Luminor’s third quarter 2021 report can be found here.
Luminor is the leading independent bank in the Baltics and the third‑largest provider of financial services in our region. We serve the financial needs of individuals, families, and companies. Just like our home markets of Estonia, Latvia, and Lithuania we are young, dynamic, and forward looking.
Further information about us can be found at luminor.ee.