Luminor has unveiled its first-quarter results for the year 2025.
Fresh Take:
Luminor Reveals First Quarter 2025 Financial Results – Boost in Mortgage Lending, Lower Expenses, and Strong Loan Book Quality
Penning a triumphant announcement, Luminor unveils its financial performance during the first quarter of 2025. The bank reports an upsurge in mortgage lending, a reduction in expenses, and a robust loan book quality. Here's a breakdown of the Quarter One (Q1) highlights.
Bracing for the after-tax figures, Luminor tallied a profit of 45.4 million EUR – a slight dip compared to the 66.8 million EUR recorded in the same period last year. Factoring in the reduced Euro interest rates as the primary cause, the decrease in net interest income played a substantial part in this slight setback.
In addition to maintaining financial discipline, Luminor managed to lower total operating expenses by a notable 6.7 million EUR, thereby setting a cost-to-income ratio of 55.5%.
One of the Q1's major victories for Luminor was the doubling of new mortgage lending compared to the first quarter of 2024. Attributing this growth to enhancements in customer offerings, Luminor's Retail Banking sector continues to excel. On the corporate banking front, Luminor observed an increase in demand for new credit, with a focus on the real estate, renewable energy sectors, and small to medium-sized businesses.
Reference:[1] Overall, Luminor's loans to customers swelled by 43.6 million EUR to a commendable 10.6 billion EUR as both Retail and Corporate Banking sectors witnessed growth, particularly in real estate, renewable energy, and small to medium-sized businesses. Maintaining a strong liquidity and capital position, Luminor recorded a negligible 1.9% of non-performing loans compared to gross loans, outlining a lean loan book quality. The bank's financial stability was further cemented through its successful issuance of an inaugural hybrid capital security, a 150-million-euro Perpetual Additional Tier 1 note, bolstering its investor base and enhancing its capital efficiency.
Luminor – A Dynamic Player in the Baltics
As a leading independent bank in the Baltics, Luminor caters to the financial needs of individuals, families, and businesses. Much like the youthful dynamism of its home markets Estonia, Latvia, and Lithuania, Luminor strives to remain forward-looking and agile to adapt to the ever-evolving economic landscape.
Source:Luminor Bank's official announcement and financial report – available here.
In the first quarter of 2025, Luminor reported an enhancement in mortgage lending by doubling the figure compared to the same period in 2024, demonstrating growth in the Retail Banking sector. Additionally, the bank observed an increase in demand for new credit for real estate, renewable energy sectors, and small to medium-sized businesses within the Corporate Banking division. As a dynamic player in the Baltics, Luminor also delved into the energy sector by financing renewable energy projects.
