BluOr Bank’s Activity Report for the First Half of 2022

BluOr Bank continues to develop financial services for Latvian companies

In the 1st half of 2022, significant geopolitical shocks occurred throughout Europe and, in particular, in Latvia’s neighbouring countries, resulting in major changes in business and the overall market situation. During the reporting period, for the Bank as a financial institution, this meant the need to make significant adjustments to risk management and planning. BluOr Bank has successfully coped with these tasks, effectively completing the first half of the year according to the planned indicators for its main activities.

The Bank ended the reporting period with a profit of EUR 4.1 million. The Bank’s operating net income in the 1st half of 2022 reached EUR 10.5 million. The amount of the Bank’s equity capital is EUR 78 million, and the total amount of assets is EUR 756 million.

The Bank’s liquidity as of June 30, 2022, was 198% (LCR). Other key indicators of the Bank’s financial performance are also successful: return on equity (ROE) – 10.4% and return on assets (ROA) – 1.0%.

In six months, the Bank signed new loan agreements in the amount of EUR 54 million. The total portfolio of loans granted and issued as of June 30, 2022, was EUR 381.5 million, which is 3.1% more than in the corresponding period last year.

In 2022, the Bank purposefully continued to develop its strategic priority area of activity – provision of services to enterprises, as evidenced by the continuous growth in the number of the Bank’s clients – legal entities. It has grown by 15% in the first half of the year, and this is the fourth six-month period in a row, during which there has been a steady increase in the number of legal entities.

This May, as a result of issuing subordinated bonds, BluOr Bank raised funds in the amount of more than EUR 4.8 million, 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 favorable terms, provide wider financial support to companies whose business development is the major driving force for the entire economy.

On June 2, 2022, the listing of the Bank’s bonds on the Nasdaq Riga Baltic Bond List was launched. The listing of the Bank’s bonds on the stock exchange testifies to its stability, growth and successful implementation of its strategic tasks, as evidenced by the high level trust from investors, including a significant number of individuals. The Bank’s management sees significant BluOr Bank capital strengthening potential also in future through stock exchange opportunities and investment instruments.

Developing the range of services for both large corporate clients and medium and small enterprises, the Bank started to provide factoring services in the reporting period, promoting continuity and faster development of its clients’ business.

The Bank continues to develop the latest technologies. Since May 2022, it has been providing 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.

Taking into account the wishes of clients and following the latest trends in website design, during the reporting period the Bank has 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 from March 21, 2022, started to use a new brand – BluOr Bank and changed the name to BluOr Bank AS. The development of the brand follows the latest global trends towards simplicity and conciseness in the digital environment.

To preserve the cultural and historical heritage located in the territory adjacent to the Bank’s building on 6 Smilšu Street, the Bank has carried out damp-proofing of a protected cultural monument of national significance – the portal dating to the 18th century.

In line with its business strategy, the Bank will continue to provide funding for Latvian companies as a priority in the second half of 2022, with a particular focus on projects aimed at reducing environmental impacts, green energy, development of environmentally friendly materials, recycling and other solutions, following the common objective in the context of European climate change and energy efficiency.

BluOr Bank consistently maintains a high priority status for all risk management and compliance issues.