BluOr Bank continues to grow steadily and strengthens its position in the financial market

March 12, 2024

BluOr Bank’s activities in 2023 are characterized by stability and targeted development in accordance with the Bank’s business model and strategic goals.

The Bank completed 2023 with a profit of EUR 12.6 million, which is 20.1% more than in 2022. Net operating income of the Bank during the reporting period amounted to EUR 37.5 million. The amount of the Bank’s equity capital is EUR 84.7 million. Total assets of the Bank increased by 35% and amounted to EUR 924 million by the end of 2023.
At the end of 2023, the Bank’s liquidity coverage ratio reached 176.6%, the capital adequacy ratio was 16.19% (Common Equity Tier 1 adequacy ratio 14.97%). Other key indicators of the Bank’s financial performance are also successful: return on equity (ROE) – 14.68% and return on assets (ROA) – 1.67%.

Considering the important role of lending in the growth of the national economy of Latvia, BluOr Bank, in accordance with its business strategy, continued to provide financing to domestic enterprises as a priority in 2023, as evidenced by a significant increase in lending. During the reporting period, the Bank has signed new loan agreements worth EUR 227 million, which is 51% more than originally planned. Corporate lending has doubled compared to 2022: it has increased by 118%. 

During the reporting period, the Bank provided support for the growth of enterprises in various sectors and actively supported enterprises in industries such as manufacturing, agriculture and food production. In 2023, the Bank’s loan portfolio again included projects to reduce environmental impact and sustainability projects focused on green energy that are receiving increasing attention in the global context.

The total loan portfolio has increased by 38% over the past year, reaching EUR 503 million at the end of the reporting period.

Considering the importance of maintaining the growth potential of small and medium-sized enterprises (SMEs) in the context of the Latvian economy, the Bank continued to ensure the availability of financial resources for the mentioned segment of enterprises and business promotion not only in Riga, but also in several regions of Latvia. In 2023, lending to SMEs and microenterprises accounted for 80% of the total volume of loans issued by the Bank. Several of these projects were implemented in successful cooperation with the state-owned development finance institution ALTUM.

In 2023, when multiple increases in the EURIBOR rate had a significant impact on the companies’ business, the Bank, within its support measures, offered solutions that would help clients adapt to the market situation, thereby demonstrating that each client is important to the Bank and that it is interested in customer business continuity.

As a bank founded by Latvian entrepreneurs, BluOr Bank focuses on long-term relationships with its clients, therefore it continuously improves and develops existing financial services in accordance with customer needs. During the reporting period, a number of new products were introduced for entrepreneurs as well as the remote identification system was improved, providing even more convenient, secure and efficient cooperation between entrepreneurs and the Bank.

BluOr Bank successfully continues to implement its business strategy, which is focused on providing services to Latvian corporate clients. As a result, for several years there has been a steady increase in the number of the Bank’s clients – Latvian legal entities: during the reporting period, their number has increased by another 19.5%. In turn, 95% of BluOr Bank’s total client base consists of clients from Latvia, the Baltic States and Europe.

During the reporting period, the Bank has closely followed economic developments both in Latvia and internationally. Assessing the current market situation, BluOr Bank raised the term deposit rates several times during 2023, keeping them in top positions in the overall market valuation.

For several years, the Bank has been successfully cooperating with a number of European fintech companies, attracting deposits from countries such as Germany, Austria, the Netherlands and Spain. These deposits are significant additional investments in the economy of the state of Latvia – for the Bank this means the availability of additional resources and diversification of resources, and for enterprises – additional funds for development. As part of this cooperation during the reporting period, technological integration has been developed, which has provided an opportunity to offer new short-term deposits on even more favourable terms for clients.

In 2023, the Bank actively developed its e-commerce area of activity and improved the online payment function for settlements via the Internet Bank (Bankpay). In the reporting period, the total turnover of Bankpay services, compared to the previous year, has grown almost tenfold, exceeding EUR 10 million. Thanks to the increase in turnover, the number of unique transactions using Bankpay has also increased tenfold. The total e-commerce revenue has grown eight times compared to the previous year, which confirms the correctness of the service development strategy. Since last year, BluOr Bank is one of the few banks that provides support for e-commerce customers in the much-needed 24/7 mode, which has already been highly appreciated by clients.

Last December, BluOr Bank raised financial resources in the amount of almost EUR 5 million as a result of the issuance of Additional Tier 1 (AT1) bonds. Attracting additional capital is one of the prerequisites for the Bank’s further growth, which, in turn, allows it to continue providing a wider range of financial services to companies whose business development is an essential driving force for the entire national economy.

As sanctions imposed on Russia, Belarus and other countries intensify, the Bank maintains a high priority status for all risk management and operational compliance issues. It continuously improves its internal processes and information systems in the field of prevention of money laundering, terrorist financing and proliferation, and sanctions risk management, while improving the client transaction monitoring and due diligence processes.

BluOr Bank has included additional sustainability objectives in its operational strategy, in line with the environmental, social and governance (ESG) criteria. These include a clear definition of the requirements for projects that the bank is ready to support, considering global trends in achieving climate protection goals. Thus, the bank also sets out clear basic operating principles for its clients, companies and organisations, which includes environmentally friendly practices, social responsibility and good governance, promoting sustainable development and a positive impact on society and the environment.

Demonstrating its social responsibility, the bank continued to provide functional and technical support for the operation of the charity fund BeOpen. Over the past year, the fund has attracted donations from entrepreneurs and individuals in the total amount more than 620 thousand euros, providing assistance to children with severe functional disabilities.

In 2024, BluOr Bank will continue to provide financing to Latvian enterprises as a priority area of activity, as well as maintain the development and implementation of products and services promoting the business development of companies.