Luminor Bank AS today publishes its interim report for the third quarter of 2020. The bank continues to make progress with its transformation programme and the results demonstrate the bank’s strong financial position, which provides a good platform for growth.

Luminor reported an increase of 11.6% in deposits compared to the same quarter last year. The share of non-performing loans was reduced further to 3.7% and the loan to deposit ratio also improved from 108% to 87% over the past year. Net profit in the third quarter amounted to 22.3 million EUR, a significant improvement from Q2 2020.

The improved funding structure and reduced lending volumes achieved over time has made it possible for Luminor to become fully self-funded with no outstanding funding from its former parent banks during the quarter. We also made progress with the carve-out of services from the DNB and Nordea systems across all three countries. We already operate fully independent technology platforms in Latvia and Lithuania. In the third quarter, the new banking platform was launched for internal pilot users in Estonia in preparation for the market launch and migration of all of Luminor’s Estonian customers in by the end of the year.

The health and safety of Luminor’s employees and customers has continued to be a major area of focus for the bank. Our strong financial standing allows us to support customers through this challenging period. We have enhanced our organisational capabilities and operational resilience to ensure we are prepared as the COVID-19 crisis evolves. 

Luminor Bank CEO, Erkki Raasuke, said:

“The Baltic economies were strong when they entered the pandemic and have demonstrated greater stability and flexibility compared to other countries in the euro area. While we need to stay cautious and monitor the pandemic closely, Luminor is progressing with its transformation programme and remains on-track.

We have focused on becoming more efficient, improving our profitability and funding position and becoming a standalone bank. After completing the migration of our Estonian customers, we will be able to invest all our energy in developing our products and services and improving our customer experience.”