Luminor_Bank

Luminor Bank

Luminor Bank

Company based in Estonia

Luminor Bank AS is a bank headquartered in Tallinn, Estonia, with branches in Latvia and Lithuania.[3] It is the third-largest bank in the Baltics[2] and in Estonia.[4] Luminor has a deposit market share of 16% and lending market share of 22%.[1]

Quick Facts Industry, Predecessors ...
Lithuanian HQ in Vilnius CBD

Luminor was founded in August 2017 on the basis of the Baltic operations of Nordea and DNB.[2] Luminor took over 930,000 of DNB's former customers and 350,000 of Nordea former customers.[2] The merger was completed on 1 January 2019.[1]

Originally, Nordea owned 56.5% and DNB owned 43.5% of Luminor.[2][5] In September 2018, it was announced that 60% of Luminor's shares will be sold to the Blackstone Group led consortium.[5] The transaction was approved by the European Commission in January 2019.[2] The transaction was completed in September 2019.[6] After the transaction, Nordea and DNB own of 20% stakes both.[6][2] Blackstone and Nordea have agreed that Blackstone would also purchase Nordea's remaining 20% in Luminor.[3] In December 2021 Blackstone acquired 8.4 % of Nordea’s shares and in September 2022 bought the remaining 11.6 %.[7]

The CEO of Luminor is Peter Bosek and the chairman of the supervisory board is Nils Melngailis.[1][5] Kerli Gabrilovica is head of the Latvian branch and Andrius Načajus is head of the Lithuanian branch.[1] As of 2018, Luminor had 3,000 employees.[2] In February 2019, the bank announced that, due to consolidation, it would reduce its staff by 130 employees in Estonia, 250 employees in Latvia, and 420 employees in Lithuania.[3] The bank also closed 26 of their 61 customer service centers in the Baltic states in 2019.[8] Luminor has over €15 billion of assets.[2]

Luminor has been designated in 2017 as a Significant Institution under the criteria of European Banking Supervision, and as a consequence is directly supervised by the European Central Bank.[9] In 2019, with 12.9 billion EUR, Luminor issued the highest total amount of loans in Estonia.[10]

References

  1. [1]
    "Luminor merger complete, nothing to change for clients, says bank". ERR. 2019-01-02. Retrieved 2019-02-06.
  2. [2]
    "European Commission clears Blackstone to buy Luminor". ERR. BNS. 2019-01-22. Retrieved 2019-02-06.
  3. [3]
    Shah, Shakhil (2019-02-06). "Luminor to lay off around 800 staff in Baltics". Emerging Europe. Retrieved 2019-02-06.
  4. [4]
    Major Banks of Estonia
  5. [5]
    "Blackstone to acquire €1 billion majority stake in Luminor". ERR. 2018-09-13. Retrieved 2019-02-06.
  6. [6]
    "Blackstone closes €1 billion acquisition of Baltic bank Luminor". LSM. 2019-09-30. Retrieved 2019-09-30.
  7. [7]
    "U.S. investment company Blackstone becomes owner of 80.05% of Luminor Holding shares". Baltic News Network. 2022-09-01. Retrieved 2024-03-15.
  8. [8]
    "Luminor Bank to cut number of customer service centers in Baltics". www.baltictimes.com. Retrieved 2024-03-15.
  9. [9]
    "List of supervised entities" (PDF). European Central Bank. 1 January 2023.
  10. [10]
    "Swedbank has most deposits, Luminor loans". ERR. 2020-04-05. Retrieved 2024-03-15.


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