BluOr Bank successfully completes 2022 and publishes the audited annual report
March 20, 2023
BluOr Bank strengthens its strategic positioning in the provision of services to Latvian enterprises
In 2022, significant geopolitical upheavals occurred throughout Europe, and in particular in the countries neighboring Latvia, bringing major changes in business and overall market situation. In the first half of the year, the Bank made significant adjustments in risk management and planning, and continued to strengthen its strategic positioning in providing services to Latvian enterprises. The Bank successfully completed the reporting period, in accordance with the planned indicators for the most important areas of the Bank’s activities.
As the audited data show, the Bank completed 2022 with a profit of EUR 10.5 million, which is 7% more than in 2021. Net operating income of the Bank during the reporting period amounted to EUR 26 million. The amount of the Bank’s equity capital is EUR 80.3 million. Total assets of the Bank at the end of the year were EUR 685 million.
The Bank’s liquidity at the end of 2022 was 72%. Other key indicators of the Bank’s financial performance are also successful: return on equity (ROE) – 13.2% and return on assets (ROA) – 1.3%.
Given the fact that maintaining the pace of lending is an important tool for stimulating the national economy, BluOr Bank, in accordance with its business strategy, continued to provide financing to Latvian companies as a priority in 2022, as evidenced by its lending indicators. In 2022, the Bank signed new loan agreements worth EUR 104 million, thereby contributing to the development of specific industries, the development of new export markets and the use of new business opportunities for the Latvian economy during a difficult period. Under the loan agreements, the Bank will gradually increase its financial support for projects aimed at green energy and reducing environmental impact. The total loan portfolio at the end of the reporting period was EUR 365 million.
Considering the role of small and medium-sized enterprises (SMEs) in stabilizing and growing the Latvian economy, for the third year now, the Bank has been implementing the funds availability program for this business segment. Lending to SMEs in 2022 accounted for 86% of the total volume of loans issued by the Bank. Among them, several projects were implemented in successful cooperation with the state-owned development finance institution ALTUM.
The Bank has been purposefully improving financial services for legal entities. As a result, there was a steady growth in the number of the Bank’s clients – Latvian legal entities: a 28% increase in the reporting period. At the end of 2022, 98% of the total client base accounted for clients from Latvia, the Baltic States and Europe.
In order to make financial services even more accessible and convenient, the Bank continues to develop the latest technologies, focusing on providing services also online. During the reporting period, both Baltic and European companies used the opportunity to remotely open business accounts with improved identification functions. Also, clients actively used the opportunity to make term deposits remotely.
By issuing subordinated bonds in May last year, BluOr Bank raised more than EUR 4.8 million in financial resources, including these funds in the Bank’s capital. Raising additional capital is one of the preconditions for further growth of the Bank, which, in turn, allows to successfully, on the most favourable terms, provide wider financial support to companies whose business development is the major driving force for the entire economy.
On June 2, 2022, the Bank’s bonds were included in the Nasdaq Riga Baltic Bond List. The listing of the Bank’s bonds on the stock exchange confirms its stability, growth and successful implementation of its strategic tasks, as evidenced by the high confidence of investors, including a significant number of individuals. The Bank’s management continues to see a significant potential for strengthening the capital of BluOr Bank in future through stock exchange opportunities and investment instruments.
Developing a range of services for both large corporate clients and medium and small enterprises, the Bank began to provide factoring services in the reporting period, contributing to the continuity and faster business development of its clients.
The Bank continues to develop the latest technologies. Since May 2022, it has been providing its clients with a new modern and technological solution Blue KEY. It is a convenient technological tool for client interaction with the Bank and a reliable replacement for the usual code calculators.
In order to provide even more convenient and extensive payment options for both buyers and e-merchants, as well as considering the growing popularity of Revolut in Latvia, BluOr Bank has expanded online payment options for its clients: from December 2022, e-merchants can accept direct payments from Revolut bank accounts, and buyers can pay for purchases using their current account at any of the five banks – Swedbank, SEB, Citadele, Luminor, and Revolut.
Following the wishes of clients and the latest trends in the development of website design, during the reporting period, the Bank switched to a more modern Internet Bank design, which at the same time provides more convenient functionality and allows using the Internet Bank on any device.
In order to emphasize the status of the Bank and strengthen its positioning in the Latvian and Baltic markets, as well as in other countries, the Bank has unified its brand and legal name, and has started using a new brand, BluOr Bank, since March 2022, and changed its name to BluOr Bank AS. The development of the Bank’s brand follows the latest global trends towards simplicity and conciseness in the digital environment.
The Bank consistently maintains a high priority status on all issues of risk management and compliance, for which additional internal resources were allocated in the reporting period.
For the second year in a row, the Bank has been ranked among institutions in Latvia that meet the status of “other systemically important financial institutions” in the financial sector under the Credit Institution Law. This means that the Bank demonstrates stable upward growth through its purposeful work and contribution to the Latvian financial market. This status also imposes additional requirements, introduction of stricter norms and criteria, which is a necessary factor for the future development of the Bank.