On 29 May 2018 the Luminor Estonia interim report for Q1 2018 was published.
“The macroeconomic backdrop remains favourable, with strong and broad-based GDP growth (+5.3% y/y Q4 17) accompanied by the expected deceleration in inflation (+3.1% y/y in Q1 18),” explained Gunnar Toomemets, Country Manager of Luminor Estonia. “This overall favourable growth environment translates into strong consumer and business appetite for investment, supporting Luminor Estonia in achieving operational business results. We earned a net profit of 2.9 million euros in Q1 2018. Our lending volumes are stable and by the end of Q1 the deposits of household clients had increased by 7%. Next to that we have also achieved good growth in the corporate client segment, and our lending portfolio grew by 5.8% in Q1.”
Luminor in Estonia is performing as expected in the leasing and pensions segments. Luminor Liising continues to be the market leader in new sales, providing leasing services to both private individuals and business clients. Luminor Pensions Estonia fund assets had grown by 6.7% by the end of Q1 2018.
“In Estonia we are focusing on promoting the employer pension,” said Toomemets. “We strongly believe that in light of Estonia’s aging population, higher life expectancy and longer retirement, expectation that pensions will support Estonian people’s future well-being is very important. Luminor Pensions Estonia has developed a self-service portal www.pensionifondid.ee where everyone can see how much they will actually get as a pension by the time they retire and how to improve their retirement.”
Luminor Estonia Q1 2018 interim report is available here.
Comments by Erkki Raasuke, CEO of Luminor Group: "The first two quarters of existence have been busy for Luminor. We are merging six organisations in three countries, executing heavy regulatory agenda and building the foundation for our future growth. Bust most importantly, we are serving our large customer base and ensuring that their daily banking operations are carried on uninterrupted and with increased quality. Considering our transformation related challenges, I would argue that we have managed our work well. I am deeply thankful to many Luminor employees, who have worked very hard to take us here.
Luminor’s goal is to become contemporary financial service provider for Baltic companies and financially active people. We are building on existing sizable business but we also realise the magnitude of the task and our humble starting position in many areas. We are determined to invest into renewal of our offering, to re-build the digital channels and to put our target customer in the centre of everything we do. We do it for our customers as much as we are doing it for our community and for ourselves. Luminor has all the ingredients to be the most exiting change journey in the Baltic financial services market.”
Luminor is a contemporary, new-generation bank and financial services provider in Estonia, Latvia and Lithuania with a local understanding of its home markets and customer needs. Built on the extensive experience of the two leading Nordic banks, Nordea and DNB, Luminor is the third-largest financial services provider in the Baltic region, with a market share of 16% in deposits and 23% in lending. With its customer base of 1.3 million clients and its team of 3000 professionals, Luminor aims to become a leading financial services provider for Baltic businesses and entrepreneurial people.