LPB Bank profit in the 4th quarter reached EUR 2.39 M
07.02.2023.

LPB Bank has compiled its operational reporting at the end of the 4th quarter of 2022. All the Bank’s key operational and commercial performance indicators are at a good and stable level. The Bank continues to develop proactively, focusing on e-commerce and lending services while also developing successful cooperation with the fintech sector. The efficiency of the Bank’s business model, the active development of the Bank’s strategy, and the professional work of the entire team contributed to the growth of the Bank. It made it possible to earn a profit of EUR 2.39 million.

Key financial performance indicators of LPB Bank for the end of the 4th quarters of 2022 (unaudited):

  • Assets – EUR 165.01 million;
  • Operating income – EUR 14.44 million;
  • Capital and reserves – EUR 31.86 million;
  • Profit – EUR 2.39 million;
  • Liquidity coverage ratio – 141.24%;
  • Capital adequacy ratio – 19.90%.

The Bank maintained high liquidity coverage and capital adequacy ratios in the 4th quarter of 2022.

The volume of liquid assets retained a significant proportion of the Bank’s asset structure, emphasising investments in debt securities. The share of the debt securities portfolio in assets increased to 54%, of which 91% were with an investment-grade credit rating. 12% of the Bank’s assets consisted of claims on banks, including the Bank of Latvia. The volume of customer loans did not change significantly and accounted for 26% of assets.

The Bank’s loan portfolio at the end of the year amounted to EUR 52.6 million, while issued new loans – EUR 15.6 million. As a result of the rapid growth of the EURIBOR, the average interest rate across the Bank’s loan portfolio increased from 5.0% at the end of 2021 to 6.5% at the end of 2022, which increased the profitability of the loan portfolio. This has resulted in increased loan revenues for the Bank, which carefully tracks indicators of borrower credit risk to adopt appropriate decisions for classifying risk-bearing transactions.

Despite the decrease in e-commerce turnover during the 1st quarter caused by new challenges – the war in Ukraine, record inflation, and uncertainty about business development in many areas – electronic commerce’s operating profit at the end of Q42022 amounted to EUR 5.07 million.

During the reporting period, the Bank continuously improved its services and developed all the necessary infrastructure to provide a full range of services to fintech companies. LPB Bank is the only bank in Latvia that offers a comprehensive Banking as a Service (BaaS) solution. Within the framework of the BaaS solution, LPB Bank provides everything a payment system (PI, EMI or PSP) might need to roll out a new product and start servicing customers.

The Bank’s leading specialists were active in several international conferences and fairs, where they attracted new clients and partners and shared their knowledge and expertise. The Bank was represented at the Berlin Affiliate Meet Markt networking event and the SiGMA Europe international gaming conference in Malta.

Continuing a seven-year tradition, LPB Bank also cooperated with the Children’s Hospital Foundation. The Bank donated to improve the services provided by the Children’s Clinical University Hospital.

The Board of LPB Bank is grateful to its shareholders and clients for their continuing trust and support and to all its employees for contributing to the Bank’s growth!

You are welcome to read the financial statement here.