Luminor almost triples Q1 earnings to EUR 15 million

• Published date: 05 May 2022
• Publication title: LETA

TALLINN, May 5 (LETA--BNS) - Luminor earned a net profit of EUR 15 million in the first quarter of 2022, compared to a profit of EUR 5.8 million posted for the same period last year.

The improvement was driven principally by an 8 percent increase in revenue as the bank grew net interest income, and a 23 percent reduction in expenses following the completion of several planned initiatives during 2021, offset in part by higher credit loss allowances. Return on equity improved to 3.9 percent from 1.4 percent in the first quarter of 2021.

The management said in the remarks published with the interim report that the first quarter was overshadowed by the geopolitical and economic impacts of the invasion of Ukraine, following which the bank focused on ensuring continuity of service to customers -- individuals and enterprises resident in the Baltic countries -- and supporting its staff, while working with others to assist displaced Ukrainians arriving in the region.

"As we adjusted our way of doing business to reflect this new operating environment, we improved our business performance, raised our efficiency, and so boosted our net profits as compared to the same quarter last year," CEO Peter Bosek said.

"We also evaluated our credit portfolio. We have no direct exposure to companies domiciled in Russia, Belarus or Ukraine, and next to no exposure to residents of these countries. Despite an insignificant...