First Quarter 2021 Presentation to Investors - May 19 2021 - Luminor
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First Quarter 2021 Presentation to Investors May 19 2021
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2
Key Financial Highlights
Moody’s Senior Rating: Baa21(positive outlook) and Covered Bond Rating: Aa1
EUR 14.6bn EUR 9.5bn EUR 11.4bn EUR 1.7bn
Total assets Gross loans Customer deposits Shareholders’ equity
10.8% 197% 159% 23.4%
Leverage Ratio Liquidity Coverage Ratio Net Stable Funding Ratio CET1 Ratio
Source: Luminor Bank Q1 2021 consolidated financial report
1 Baa2 long-term senior unsecured debt rating with positive outlook (outlook was changed to positive 16 February 2021)
3
◆ Luminor Snapshot
Baltic Banking Market
Financial Performance
Capital, Funding & Liquidity
Appendix
4
Introduction to Luminor
ESTONIA
Customers ~124,000
Service Centres 6
11% 7%
Loans1 Deposits
€2.4bn €1.8bn
Third largest bank in the Baltic region
Operates as a single bank across all LATVIA
three Baltic countries, serving Customers ~213,000
individuals, families and businesses Service Centres 8
Largest asset class are loans to 22% 16%
Loans1
customers, which are wholly funded €2.8bn
Deposits
€2.9bn
Finland
by deposits from customers
Blackstone-led consortium owns Norway
60.1%, Nordea and DNB own the Sweden
Estonia LITHUANIA
remainder Customers ~535,000
CET1 / Tier 1 / Total Capital ratio of Latvia
Service Centres 11
23.4% at 31 Match 2021
Lithuania 19% 20%
Loans1 Deposits
€4.2bn €6.7bn
Source: Luminor Bank Q1 2021 consolidated financial report, Central Bank of Estonia, Central Bank of Latvia, Market share of Luminor
Central Bank of Lithuania, Finance Latvia Association
1 Net loans
5
Strategy
2017-2020 2021-
Luminor created from DNB and Nordea’s Baltic The full focus of Luminor turned to customers and
operations business growth
Operations restructured into a single bank with its Grow our lending, especially in mortgages and SME
headquarters in Estonia customers
Standalone systems carved out from former parents Increase our customers’ satisfaction
Re-priced and right-sized loan portfolios Raise our level of digitalisation and automation
Diversified funding and repaid facility from DNB and Fulfil our wider obligations to our communities and
Nordea the environment
Managed down NPLs to 3.2% of gross loans Maintain strong financial standing and our prudent
risk management
Regulated by the ECB
Commitment to preventing financial crime
6An Experienced Leadership Team
Peter Bosek
Palle Nordahl
Chief Executive Officer
Chief Financial Officer, joined from May 1st
Peter joined Luminor from Erste Group where he was the Group's
Over 20-years’ experience in the financial sector, based in
Chief Retail Officer and Chief Executive Officer of Erste's Austrian
Copenhagen, London and Stockholm, with the past 10-years
subsidiary.
in finance leadership roles at FIH and Nykredit
Peter has unique expertise across Retail banking and led the
growth of Erste’s highly respected digital banking platform across
Europe, in addition to overseeing the group’s Fintech and digital
innovation units Kristina Siimar
A native of Vienna, Peter holds a Doctorate in Law from the city's Head of Luminor Products and Offerings
university Member of the Management Board
Over 20 years of experience in financial sector:
various managerial positions at Swedbank Group and CFO at
Swedbank Estonia
Nils Melngailis
Chairman of the Supervisory Council
Former Operating Executive at Centerbridge Partners, CEO and Kerli Gabrilovica
Chairman at Parex Bank and Lattelecom; Senior positions at Head of Retail Banking / Luminor Latvian branch
IBM, PwC and Alvarez&Marsal Member of the Management Board
Over 20 years of experience in strategy execution and
implementation; former Board Member of Lattelecom
Georg Kaltenbrunner
Chief Risk Officer Andrius Nacajus
Member of the Management Board Head of Corporate Banking / Luminor Lithuanian branch
Former Chief Operational Risk Officer of Nordea Group; Member of the Management Board
Chief Operating Officer of Nordea Group Finance & Treasury; More than 15 years of experience in financial sector; former
Member of the Board of Directors of Nordea Funds Ltd; former managerial positions in Corporate Banking and Markets in DNB
Partner at McKinsey & Company Bank Lithuania
7Preventing Financial Crime
We continue taking measures to minimise risks Deposits split by residency as at Q1’21
relating to compliance and financial crime, and are
continuously investing into our systems and
processes 0.7%
0.8%
Focus on local customers with 99.2% residents of
the Baltic countries and other EU/EEA (based on
deposit volumes)
Principle not to accept any non-resident customers Deposits
without legitimate connection to our local markets EUR 11.4bn
A high degree of transparency towards regulators
and markets
98.5%
Continuous awareness raising on AFC, business
conduct and regulatory compliance matters Baltic Non-EU Other-EU
Source: Luminor Bank Q1 2021 consolidated financial report 8Luminor Snapshot
◆ Baltic Banking Market
Financial Performance
Capital, Funding & Liquidity
Appendix
9Baltic Open and Resilient Economies Continue
Catch-up with Western Europe
Real GDP growth above Euro-area average
Baltic countries have been part of the European
Union and NATO since 2004 5%
The Euro was adopted between 2011 and 2015 0%
GDP growth yoy (%)
2016 2017 2018 2019 2020 2021
Compare favourably in terms of economic growth -5%
Baltic private and public sector debt to GDP among -10%
the lowest in Europe
-15%
Estonia Latvia Lithuania Euro area
Baltics remain well-positioned in Europe in terms of credit ratings Low government debt
Aaa
Aaa
Aaa
Aaa
Aaa
Aa1
Aa1
Aa2
Moody’s sovereign credit ratings1
156%
Aa3
134%
A1
Debt / GDP ratio (%),
Baa1
A2
A2
A2
A2
A3 120%116%
Baa3
Baa3
98%
Q4 2020
84%
70% 69%
60% 58% 55%
47% 46% 44% 42% 40%
25% 18%
LVA
PRT
AUT
DEU
IRL
ESP
FRA
LTU
NOR
Euro area
EST
FIN
POL
ITA
NLD
DNK
SWD
LUX
DEU
AUT
IRL
LVA
ESP
PRT
NOR
FRA
LTU
EST
FIN
ISL
DNK
NLD
ITA
SWD
GBR
POL
Source: Moody’s and Eurostat (latest available)
1 Metric used is Long Term Issuer Rating or Foreign Currency Long Term Debt
10Baltic Countries’ Economic Forecasts
Growth outlook improves in H2
H1 2020 2020 2021 F 2022 F
Estonia Real GDP -3.3 -2.9 2.6 3.8
CPI (Inflation) 0 -0.4 1.2 2.1
Unemployment rate 5.9 6.8 6.1 5
Latvia Real GDP -4.8 -3.6 3.5 3.1
CPI (Inflation) 0.6 -0.5 1.5 1.9
Unemployment rate 7.8 9 8 7.5
Lithuania Real GDP -1.2 -0.8 2.2 3.1
CPI (Inflation) 1.6 1.1 1.7 1.8
Unemployment rate 7.4 9 7.5 6.9
Euro area Real GDP -9 -6.6 3.8 3.8
CPI (Inflation) 0.6 0.4 1.4 1.3
Unemployment rate 7.5 8.3 9.1 8.4
Source: Eurostat, IMF, ECB
11Baltics in the Beginning of Credit Cycle with Low
Levels of Indebtedness
After significant deleveraging, the sector is back on a …with relatively low indebtedness and room for further
growth trajectory… credit growth
Baltics banking sector loan evolution (EURbn) Loans1/GDP (2020)
-3.5% +2.8%
188%
51.8 53.1 52.4
51.3 50.1 50.4 165%
47.8 46.6 156%
45.9 44.9 44.5
114%
78%
44% 42%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Denmark Norway Sweden Finland Estonia Latvia Lithuania
Lithuania Estonia Latvia
Baltic loan portfolio Baltic loan portfolio
CAGR (2010 – 2014) CAGR (2014 – 2020)
Source: ECB, local central bank data
1 All loans provided by credit institutions to private and corporate non-financial customers (excl. government sector and financial institutions)
12Well Funded Baltic Banking Sector with Attractive
Profitability Profile
Loans to Deposits Ratio of the banking sector (Q1 ‘21) Baltic banking market shares by lending volume (Q1 ‘21)
’14 - Q1 ’21
4.5% 8.0% 4.5% 10.9% 5.7% 6.2% 11.8% deposit
CAGR
252%
162% Other
136%
87% 83% 33%
74% 62%
Denmark Sweden Finland Estonia Norway Latvia Lithuania
Return on Average Assets of the banking sector (2019¹) 17%
1.1% 1.1%
1.0%
0.8% 27%
0.6%
0.5%
0.3%
Luminor – 9.4bn2 SEB – 14.8bn Swedbank - 18.4bn
1
Estonia Lithuania Latvia Norway Sweden Denmark Finland
Source: ECB Statistical Warehouse, Statistics Norway, Luminor, SNL Financials, Finance Latvia Association, Association of Lithuanian Banks, Estonian Financial Supervision Authority
1 Latest available on comparable basis; Norway based on 2017 figures; 2 Net loans 3 Return on average equity based on Q1 2021 reporting. Based on SEB and Swedbank group reporting (allocated equity for Swedbank Baltics, business equity for SEB Baltics)
13Attractive and Growing Baltic Mortgage Market
Mortgage market in the Baltics in the development phase Very low mortgage penetration²
Although ownership percentage of dwellings in Baltics is high 100
18 20 10 16 20
30 29
(80-90%), the proportion of mortgage loans is relatively low 80 39 36
20
compared to EU average and in particular to the Nordics 60
45 59
67 78 72
14 12 30
40
Commercial lenders are the main originators of residential 20
25
47 51 60
42
23 13
mortgage loans in Baltics 0 12 12
Highly concentrated market with Swedbank, SEB, and Luminor
dominating the Baltic mortgage market
Majority of mortgage loans issued with floating interest rate Owner (with mortgage) Owner (no outstanding mortgage) Tenant
(mostly based on 6 month Euribor)
Very concentrated market: household loans Q4 2020¹ Mortgage market in the Baltics¹
20.8 22.0
100% 19.6
17% 9% 18.8
18% 17.8
80% 23% 16.8 17.0 17.0
11% 9.1
8.4
In bn EUR
28% 7.2 7.8
60% 5.9 6.0 6.1 6.6
27%
29%
19% 4.2 4.3 4.2
40% 5.1 4.9 4.6 4.5 4.5
20% 45% 6.7 7.1 7.6 8.1 8.7
35% 39% 5.9 6.1 6.3
0%
Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2018 Q4 2019 Q4 2020
Estonia Latvia Lithuania
Estonia Latvia Lithuania
Swedbank SEB Luminor Others
1 CentralBanks of Estonia, Latvia and Lithuania; Estonian Financial Supervision Authority, Finance Latvia Association, Association of Lithuanian Banks
² Eurostat
14Luminor Snapshot
Baltic Banking Market
◆ Financial Performance
Capital, Funding & Liquidity
Appendix
15Financial Performance Q1’21 vs Q1’20
Successfully executing our strategy
Profit and loss, EUR mln Q1’21 Q1’20 Increased market share of new mortgage
Total Income 76.9 80.3 lending in Q1’21 of EUR 175 mln compared to
Total Expenses -70.5 -71.5
Credit loss allowance -0.1 -28.0
EUR 92 mln EUR in Q1’20
Other items 0.2 0.2 Deposits growth to EUR 11.4 bn focused on
Operating Profit before Tax 6.5 -19.0 more granular deposits
Tax On Profit -0.7 -2.2
Reported Net Income 5.8 -21.2 Improved daily banking offering and simplified
Of which exceptional costs -26.1 -30.6 infrastructure
Q1’21 Net Profit of EUR 5.8 mln (1.4% ROE),
Balance sheet, EUR mln 31.03.21 31.03.20 Key Ratios1 Q1’21 Q1’20
including exceptional costs of EUR 26.1 mln
Cash and Balances with Central Banks 4,603 2,756 Loans to Deposits Ratio 82% 100%
Cost to Income Ratio
EUR 0.1 mln net credit impairments
Loans to customers 9,393 9,928 92% 89%
(reported) Decrease in Non-Performing Loans Ratio to
Other Assets 555 563 Underlying C/I Ratio2 58% 51% 3.1% from 3.9% this time last year
Total Assets 14,551 13,247 ROE (reported) 1.4% -5.3%
Loans to Deposits Ratio 82.4%
Deposits from customers 11,404 9,958 Underlying ROE 6.8% 1.2%
CET1 Ratio 23.4%
Debt securities issued 1,201 1,156 NPL Ratio 3.1% 3.9%
Other Liabilities 275 523 Parent Funding, EUR mln 0 150
Total Liabilities 12,880 11,637 CET 1 23.4% 20.5%
LCR 197% 144%
Total Equity 1,671 1,610
¹Key Ratios are based on Q1 2021 and Q1 2020 profit and balance changes
NSFR 159% 126% (31.03.2021 vs. 31.12.2020) and (31.03.2020 vs. 31.12.2019)
2 Exceptional costs definition was amended in 2020
Source: Luminor Bank Q1 2021 consolidated financial report 16Improving Asset Quality
Baltic NPL portfolio development NPL portfolio breakdown
6.2% 5.3% 4.3% 3.8% 4.0%
Active management of legacy NPL
6.1% 3.7% 3.2% 3.1% 2.8% 5.0% 1.9% 3.1%
portfolio with a clear workout plan
in million EUR
Legacy portfolio primarily related to
in million EUR
seasoned exposures from 2008-2010
291
740** 726
Since creation of Luminor NPL Ratio
654* 620 69 142 116
476
80
390 394 362 10
305 291 74
59 68 32
48
175
has decreased from 6.2% to 3.1%
Q4'17 Q2'18 Q4'18 Q2'19 Q4'19 Q2'20 Q3'20 Q4'20 Q1'21 EE LV LT Baltic
NPL ratio1 Corporate Retail NPL ratio1
NPLs covered with sufficient
provisions and collateral
NPL portfolio fully covered with provisions and collateral NPL portfolio impacted by
implementation of IFRS 9
in million EUR
Provisions 291
for loan
losses 175
-78 116
NPL
portfolio net 243 -51 -27
213
of 124 140 89 103
provisions
Total Collateral Corporate Collateral Retail Collateral Source: Luminor Bank Q1 ‘21 consolidated financial report
*Based on IAS 39; **IFRS 9 pro-forma;
1 Ratio calculated as stage 3 loans divided by total gross loans;
2 Ratio calculated as stage 3 allowance for impairment divided by gross
loans individually determined to be impaired
17Limited Direct Exposure to COVID-19
Directly affected sectors as of Q1 2021* Direct exposure by asset quality as of Q1 2021*
% of Total Total Net
Industry Net Exposure
Exposure (EUR mln)
Travel agencies 0.1% 7 Stage 3,
Food service and 30%
0.5% 44
accommodation
Arts, entertainment,
0.1% 11
sport Stage 1 + 2,
TOTAL 0.7% 62 70%
Only 0.7% (of net credit portfolio) exposure to directly affected sectors (travel, food services, accommodation,
entertainment)
*Based on total net exposure
Source: Luminor Bank Q1 2021 consolidated financial report
18Balanced and Diversified Loan Portfolio
Lending: 42% Corporate and 58% Household
Electricity, gas, water supply
1%
Financial Other industries
5%
Public sector intermediation
2% 2%
Private individuals
Construction (Mortgage loans)
2% 49%
Agriculture 3%
Transport, storage,
communication
3%
Manufacturing
5% Net loan portfolio
by sector
EUR 9.4 bn
Wholesale and retail
trade
7%
Real estate activities
12%
Private
Individuals
(Other loans)
Source: Luminor Bank Q1 2021 consolidated financial report
9%
19COVID-19 Impact
Customer Service Centres have remained open through-out the pandemic
Operations 3 out of every 4 employees are working remotely
Significantly increased activity in remote channels
Where requested, loans subject to grace period on repayment of principal
Supporting our
Majority of grace periods have expired with no adverse effect on loan quality
Customers
Also supported customers with loans involving state support schemes
Steady deposit volumes and strong liquidity
Funding
Balances at central banks and cash of EUR 4.6bn
Q1 net profit EUR 5.8mln
Net profit Exceptional costs of EUR 26.1mln as part of financial plan
EUR 0.1mln credit impairments
CET1 up to 23.4%
Capital
Capital relief measures introduced by ECB and local central banks
Minimal exposure to directly affected sectors (travel, food services, accommodation,
Credit Quality entertainment)
Decrease in Non-Performing Loans Ratio to 3.1% from 3.9% this time last year
Source: Luminor Bank Q1 2021 consolidated financial report
20Luminor Snapshot
Baltic Banking Market
Financial Performance
◆ Capital, Funding & Liquidity
Appendix
21Well Capitalized with Diversified Funding
Issuance activity mainly driven by MREL Requirement
23.4% CET1 and Total Capital Ratio Diversified Funding On schedule to meet MREL by Q2’223
23.4%
0.3 Other2
Debt Securities Issued 17.3%
1.2
17.0% 15.5%
Total Capital Ratio
2.5 Public Sector Deposits
14.5%1 Target
0.8bn4 Senior
2.0% Tier 2 unsecured
0.6bn
CET1 capital 1.5%
AT1 4.5 Retail Deposits
2.0%
O-SII buffer
in bn EUR
2.5%
Conservation Subordination
buffer target CET1 capital
2.0% 1.6bn
Pillar 2 add-on 4.4 Corporate Deposits 1.7bn4
4.5% CET1 minimum
requirement 1.7 Total Equity
Total Capital Ratio Total Capital Q1'21 MREL Requirement Eligible Instruments Q1'21
Q1'21 Requirements
1 The prudential requirements, which are the Pillar 2 requirement set by the ECB in the 2019 Joint Decision on Capital, and the Systemic Risk Buffer and Countercyclical Risk Buffer requirements set by the Latvian, Estonian and Lithuanian Supervisory Authorities,
obliged Luminor to hold capital exceeding 10.1% of CET1, a Tier 1 ratio above 12.0% and 14.5% of Total Capital as at 31 March 2021. 2 Including TLTRO and all other liabilities; 3 MREL requirement of 17.28% and a subordination requirement of 11.97% versus Total
Liabilities and Own Funds (TLOF) to be met by 30 June 2022. 4 Calculated based on Total Liabilities and Own funds (TLOF) as at 31 March 2021.
Source: Luminor Bank Q1 2021 consolidated financial report, 2020 annual report
22Strong Funding and Liquidity Ratios
Liquidity Coverage Ratio Net Stable Funding Ratio Loans to Deposits Ratio
159% 159% 139%
197% 197% 126%
189%
123%
119%
157% 114% 100%
150%
80% 82%
Q4'17 Q4'18 Q4'19 Q4'20 Q1'21 Q4'17 Q4'18 Q4'19 Q4'20 Q1'21
Q4'17 Q4'18 Q4'19 Q4'20 Q1'21
23
Source: Luminor Bank Q1 2021 consolidated financial report, annual reportsMoody’s Ratings
On 13 September 2018, Moody’s assigned a first-
time senior unsecured debt rating Baa2 to Luminor
Bank AS Covered Bonds Rating Aa1
On 11 March 2020, Moody’s assigned a definitive Senior Unsecured Debt Rating Baa2
Aa1 rating to the mortgage covered bonds issued
by Luminor Bank AS under the Estonian Covered
Deposit Rating Baa1
Bonds Act
On 16 February 2021 Moody’s affirmed Luminor Positive Outlook
Bank’s ratings and changed its outlook on its ratings to
positive, citing
higher level of capitalization
reduced dependency on its former parents for funding
successful reduction of problem loans
strategic challenges involved in returning the bank to
growth
low profitability and need for continued IT investments
24Luminor Cover Pool as of Q1 20211
Key Statistics Cover Pool distribution by seasoning (in months)1
Rating ( Moody's) Aa1 1400.00 1250
Issued Covered Bonds EUR 500 mln 1200.00
1000.00
in million EUR
Total Cover Assets* EUR 2.556 mln
800.00
Property Type 100% residential 600.00 428
350
OC (%) 411% 400.00 282
171
200.00
Loans Country Estonia, Latvia, Lithuania
0.00
Number of debtors 54,230 Up to 12m > 12 - 24 - 36 - 60m
Number of Mortgage Loans 58,289
Indexed LTV as of Q1 2021
Average Current Balance (by Loan) €42,600
WA Current Indexed LTV (%) 53.60%
800 705.1
WA Residual life (years) 10.5 700
600
Loan interest type 97.8% floating 500 437.2
in million EUR
390.8
400 347.1
Loans Currency denomination 100% Euro 290.7
300 214.3
Principal Payment Type 100% amortizing 200
95.4
100 0.0
Regulatory Over Collateralisation
∼5% / ∼10% 0
(Nominal OC) / Moody’s
* incl liquid assets
1 Based on Harmonized Transparency Template https://luminor.ee/investors# 25Luminor Cover Pool as of Q1 20211
Cover Pool distribution by country Cover Pool distribution by outstanding loan balance
250
200
28.2% 150
in million EUR
40.3%
100
50
0
31.5%
Estonia Latvia Lithuania
Cover Pool distribution by region Cover Pool distribution by property type
Tallinn,
Other 12.2%
Lithuania,
21.7%
37.8%
Other
Estonia,
16.0%
Vilnius,
18.6% 62.2%
Riga,
Other 14.7%
Latvia,
16.8% o/w Apartments o/w Houses
1Based on Harmonized Transparency Template https://luminor.ee/investors# 26Luminor Snapshot
Baltic Banking Market
Financial Performance
Capital, Funding & Liquidity
◆ Appendix
27Luminor in Estonia
Market share by product
Households
Estonian banking market Lending Deposits
4%
Well-capitalised and profitable banking market with adequate liquidity profile 10 %
Swedbank, SEB and Luminor account for c. 75% of deposits and 81% of lending as of December
2020, according to the market data
Corporates
Lending Deposits
Deposits Loan portfolio Deposits by
by residency1 by customer type customer type1 12 % 11 %
Non-EU residents Other EU residents
Local residents Public sector Financial
2% institutions
0.7% 1.6% Public sector
4%
Individual 18%
customers
28%
Business
Financial Total
institutions
Individual customers
8% Lending Deposits
customers 43%
51% 11 % 7%
Business
97.7%
customers
46%
Total loans: EUR 2.4 billion Total deposits: EUR 1.8 billion
Luminor’s market share (management estimate)
Source: Luminor, Central Bank of Estonia, Estonia Financial Supervision Authority
Data presented as at Q1 2021
1 Based on deposit volumes
28Luminor in Latvia
Market share by product
Households
Latvian banking market
Lending Deposits
The top five banks (Swedbank, SEB, Luminor and local banks Citadele and Rietumu) make up
13 %
c. 90% in deposits and 91% in lending as of December 2020
29 %
Corporates
Lending Deposits
Deposits Loan portfolio Deposits by
by residency1 by customer type customer type1 17 % 18 %
Non-EU residents Other EU residents
Local residents Public sector Financial Public sector
2% institutions
1.0% 1.5% 1%
7% Financial
institutions
Business 3%
customers
42% Total
Individual
customers
Individual 48% Lending Deposits
customers Business
55% customers 22 % 16 %
42%
97.5%
Total loans: EUR 2.8 billion Total deposits: EUR 2.9 billion
Luminor’s market share (management estimate)
Source: Luminor, Central Bank of Latvia, Finance Latvia Association
Data presented as at Q1 2021
1 Based on deposit volumes
29Luminor in Lithuania
Market share by product
Households
Lithuanian banking market Lending Deposits
14 %
Consists primarily of three major players (Swedbank, SEB, and Luminor) which accounting c. 88% of 22 %
deposits and 86% of lending as of December 2020
Corporates
Lending Deposits
Deposits Loan portfolio Deposits by
by residency1 by customer type customer type1 17 %
28 %
Non-EU residents Other EU residents
Local residents Public sector
Financial
0.7% 0.8% 2% institutions
1%
Public sector
Business 29%
customers Total
34%
Individual Lending Deposits
customers
39% Financial 19 % 20 %
Individual institutions
customers 2%
63%
Business
98.5% customers
30%
Total loans: EUR 4.2 billion Total deposits: EUR 6.7 billion
Luminor’s market share (management estimate)
Source: Luminor, Central Bank of Lithuania, Association of Lithuanian Banks
Data presented as at Q1 2021
1 Based on deposit volumes
30Legal Structure
We operate as a single bank with our
headquarters in Estonia, and branches in
Latvia and Lithuania
On 30 September 2019 the Braavos
BidCo consortium, led by private equity funds
managed by Blackstone, completed the acquisition of
a majority stake in Luminor
Nordea and DNB each retain 19.95% equity stake in
Luminor and are represented on the Supervisory
Council
Braavos BidCo Limited has agreed with Nordea to
purchase their remaining stake over the coming years
There is no ultimate beneficial owner (natural person) owning directly or indirectly 10% or
more of the capital or interest in Luminor Bank AS
31Luminor Compares Favourably to Peers
Common Equity Tier 1 Ratio Leverage Ratio
23.4% 23.0% 14.8% 14.7%
22.4%
19.2% 19.0% 18.9% 12.6%
16.6% 16.6% 10.8% 10.5%
14.9% 14.3% 14.2% 9.2%
13.6% 8.5%
7.4%
6.8%
6.2% 6.1% 6.0%
Luminor Lands. Arion Islands. PKO AIB mBank Pekao BoI Erste Bawag RBI Lands. Arion Islands. Luminor PKO AIB Pekao mBank BoI Erste Bawag RBI
Liquidity Coverage Ratio Net Stable Funding Ratio
159%
239% 230% 229% 228% 148%
202% 197% 142% 141%
192% 189% 138% 138% 135% 135%
172% 169% 165%
153% 124%
119% 118%
111%
Pekao mBank Bawag PKO Lands. Luminor Arion Erste Islands. AIB RBI BoI Luminor AIB mBank Pekao Bawag BoI PKO Erste RBI Islands. Lands. Arion
Source: Luminor Bank Q1 2021 consolidated financial report, company filings, Capital IQ
Notes: Figures as of Q1 2021 or latest available 32COVID-19 in the Baltics
New COVID-19 cases per 100k inhabitants during 14 days
1600
1400
1200
1000
800
600
400
200
0
Estonia Latvia Lithuania EU/EEA (total)
Source: WHO, public data
33Investor Relations Nick Turnor Head of Investor Relations and Sustainable Finance E-mail: ir@luminorgroup.com Website https://www.luminor.ee/en/investors
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