Banks, Financial Services, Latvia
International Internet Magazine. Baltic States news & analytics
Wednesday, 24.04.2024, 04:28
Luminor makes 17.6 mln euros in Q2 profit
The bank’s representatives informed that the merger of the DNB and Nordea branches had little effect on the Luminor Group’s financial results. The banking group’s
second-quarter results cannot be directly compared with the second-quarter
result in 2017 as they comprise the results of the two banks involved in the
merger, which is why Luminor offers a
comparison with the results of the first quarter of this year.
In the first quarter of 2018, Luminor
made an 8.96 mln euros profit.
The banking group’s ROE (return of capital) rose from 6.3% in the first
quarter to 13.22% in the second quarter of 2018. Net commissions income dropped
from 6.4 mln euros to 6 mln euros.
The banking group’s loan portfolio was worth 3.4 bln euros at the end of
June 2018, with corporate loans making up 44% and personal loans 53% of the
total amount. The bank’s share in the Latvian lending market was approximately
25%.
Deposits at Luminor totaled 2.7
bln euros at the end of June 2018, with corporate deposits making up 31% of the
total deposit portfolio and personal deposits accounting for 30%.
The loan-to-deposit ratio (LDR) was down to 125% in the second quarter of
this year. The bank aims to increase the share of deposits, especially the
share of stable deposits. Luminor’s
share in the Latvian deposit market was roughly 16%.
As reported, DNB and Nordea merged their businesses in all
three Baltic states to create a new combined bank called Luminor. As part of the merger, the Latvian branch of Nordea Bank has turned its assets over
to DNB Banka.