Luminor announced today its financial results for 1Q25, reporting increased mortgage lending, decreased expenses, and continued quality of its loan book. The bank’s liquidity and capital positions remained strong.
Luminor generated a profit after tax of 45.4 million EUR in the quarter as compared to 66.8 million EUR in the same period last year. Total operating income decreased by 34.7 million EUR, mainly due to a decrease in Net interest income driven by lower euro interest rates. The bank maintained its cost discipline and lowered total operating expenses by 6.7 million EUR. The bank recorded a cost to income ratio of 55.5% and generated an annualised return on equity of 10.7%.
Luminor retained its strong liquidity and capital positions and the quality of its loan book, with non-performing loans at 1.9% of gross loans.
Loans to customers increased by 43.6 million EUR to 10.6 billion EUR. In Retail Banking, the enhancements made to our customer offering led to a doubling of new mortgage lending as compared to the first quarter 2024. Corporate Banking saw improved customer sentiment and increased demand for new credit, notably in the real estate and renewable energy sectors, and from small and medium sized businesses, complemented by growth in loans to the public sector.
Luminor issued its inaugural hybrid capital security in the first quarter, a 150-million-euro Perpetual Additional Tier 1 note. The issue extends the bank’s liability structure, increases the efficiency of its capital, and builds its investor base.
Wojciech Sass, Luminor Bank Chief Executive, said:
‘In the first quarter our home markets of Estonia, Latvia, and Lithuania benefitted from lower interest rates and improvements in the performance of Nordic export markets. Through the commitment of our employees over the quarter we generated good demand for new lending and increased Loans to customers. ‘We remain focused on our customers and continue to work on improving our value proposition, become more efficient and grow our lending in line with customer demand.
Luminor Q1 2025 Report is available here.
About Luminor:
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.
