Luminor profits down over 60 percent on year to Q3 2019 ({{contentCtrl.commentsTotal}})

Luminor headquarters in Tallinn.
Luminor headquarters in Tallinn. Source: (Rene Suurkaev/ERR)

Estonian bank Luminor made a net profit of 16.9 million in the third quarter of 2019, down from €43.1 million at the same period in 2018, Baltic News Service reports.

Luminor says the fall in profits results from the cost of ongoing transformation.  

At the same time, a consortium led by private equity funds and managed by Blackstone acquired a 60 percent stake in Luminor, valued at €1 billion, in the third quarter.

Luminor also reports improvements in its loan-to-deposit ratio, from 139.4 percent this time last year, to 108.4 percent at present.

Deposit portfolio also increased 16.7 percent year-on-year, the bank says.

The bank also reports progress in migration of payment infrastructure and information systems.

"As a result of finalizing the first phase of migration in Latvia and Lithuania, we have successfully transferred nearly 24 percent of our active legacy Nordea customers," Luminor Bank CEO Erkki Raasuke said, according to BNS.

Luminor has a market share of 16.8 percent in deposits and 19.5 percent in lending in Estonia, to end of Q3 2019, according to BNS.

Luminor was founded in August 2017 on the basis of the Baltic operations of Scandinavian banks Nordea and DNB.

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Editor: Andrew Whyte

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