Luminor announces preliminary results for the full year 2024

Luminor generated a profit after tax of 202.2 million EUR for 2024, an increase of 3.9% compared to year before. The net fee and commission income increased by 5.9% over the year, amounting to 89.6 million EUR, while we maintained good cost discipline during the period.  The bank recorded a cost to income ratio of 54.3% and generated an annualised return on equity of 11.7%.
 
Luminor’s liquidity and capital positions remained strong, and the quality of loan book improved, with non-performing loans reducing to 1.8% of gross lending. 
 
During the past year we invested in our organisation, processes and systems, and continued to improve our customer experience. Our dedicated efforts were recognised with a significant increase in customer satisfaction.
 
Our renewed customer offering helped loans to individuals increase by 2.9% over the year, deposits from individuals increased by 5.3%. New sales volumes for mortgage loans grew by 36% from the previous year.
 
In Corporate Banking, we maintained a strong deposit base and our loan portfolio remained well diversified across sectors and types with continued good loan quality and a strong pipeline of potential lending deals. We launched tailored loan and lease offerings under our agreement with the European Investment Bank to facilitate lending for SMEs and support the green transition of the Baltic economies.
 
Luminor developed its capital and investor base with the launch of three new issues. These included the inaugural non-euro issue, a 500-million SEK-denominated three-year senior bond, and the bank’s first capital security, a 200 million EUR Tier 2, 11-year subordinated bond.
 
Moody’s upgraded their long-term senior unsecured rating of Luminor to A2.
 
Wojciech Sass, Luminor Bank Chief Executive, said: 
“Looking at the past year, I am proud to say that the dedicated efforts of our employees were recognised by our customers through significant increase in satisfaction scores across all segments and countries.  We grew new mortgage lending and supported Baltic companies in growing and adjusting their businesses.
 
Our focus remains on our customers. We will continue to work on improving our value proposition, becoming more efficient and growing our lending in line with customer demand.”