Signet Bank Group reports 68% loan portfolio growth in H1 2026 and strengthens capital base for continued expansion

Signet Bank AS Group (hereinafter – the Group) maintained strong growth momentum in the first half of 2026, organically expanding across its key businessareas – corporate lending, investment banking and investment management products. Growth was also supported by the continued development of the Signet Baltic Bond Fund (hereinafter – the Fund) and the provision of Banking-as-a-Service (BaaS) solutions to fintech companies through AS Magnetiq Bank.

According to the Group’s consolidated audited interim report for the first half of 2026, total operating income rose EUR 26.3 million, an increase of 11.5% compared with the same period in 2025, while the Group’s comprehensive income attributable to the Bank’s shareholders amounted to EUR 5.75 million, up 24% compared with the first half of 2025. The Group’s equity increased by 34.1% year over year to EUR 65.8 million, while total assets under management and administration (AUMA) grew to EUR 1.8 billion. The Group’s return on equity (ROE) was 21.42%, while return on assets (ROA) stood at 1.53%.

The Latvian economy recorded moderate growth in the first half of 2026, with gross domestic product (GDP) increasing by 2.8% compared with the same period in 2025. At the same time, inflation remained moderate, with annual inflation reaching 2.6% in July 2026. The outstanding volume of corporate loans in Latvia continued to increase, reflecting sustained demand for financing and active lending by banks. Positive economic dynamics and continued demand created favorable conditions for further growth of the Group’s loan portfolio and the acquisition of new corporate clients seeking financing.

During the first half of 2026, the Group issued EUR 176 million in new loans to support the development of local businesses. By the end of the first half of the year, the Group’s loan portfolio had increased by 68% compared with June 30, 2025, reaching EUR 428.3 million. As a result of the strong increase in lending volumes, the Bank met the criteria for a 100% exemption from the Solidarity Contribution applicable to credit institutions in Latvia since January 1, 2025.

Access to capital will increasingly determine how quickly businesses can grow. If Latvia wants to grow faster than the European average, companies will need significantly more capital than before, and no single source of financing can meet that need. In the next stage of development, a combination of bank lending and capital markets instruments will be critical. We see Latvian companies increasingly adopting this approach, which is a positive signal both for the economy and for the development of the capital market. Our objective is to increase the amount of capital available to Latvian companies by combining traditional bank financing with capital markets opportunities. This is an area in which we see significant growth potential,

explains Roberts Idelsons, CEO of Signet Bank.

One of the Group’s key areas of development and expertise is capital markets financing – organizing bond and equity issuances for Baltic companies. Signet Bank continues to be the leading arranger of corporate bond and equity issuances in Latvia and one of the leading stock exchange brokers in the Baltics. In the first half of 2026, the Bank arranged 19 bond issuances, helping companies raise EUR 160 million in financing. Transaction activity is expected to remain stable during the second half of 2026.

The Group continues to implement its long-term growth strategy by expanding and diversifying its corporate financing solutions, broadening its range of investment products, and increasing client assets invested in the Signet Baltic Bond Fund and portfolios managed by Signet Asset Management Latvia IPS.

In its first year of operation, the Signet Baltic Bond Fund has become an important product not only within the Group’s offering but also in the Baltic capital market more broadly. During its first 12 months, the Fund delivered a 7.6% return for investors, while its assets had reached EUR 12.6 million by the end of the first half of the year. It is a unique investment product and currently the only product of its kind in the Baltic region, allowing investors to gain exposure a diversified portfolio through a single investment of Baltic corporate bonds comprising bonds from more than 50 issuers. At the same time, investors retain the ability to increase or reduce their investment at any time due to the daily liquidity provided by the Fund.

Until now, investing in Baltic corporate bonds has largely been more accessible to experienced investors with relatively large amounts of capital to invest. We saw a need to make this market more accessible to a broader range of investors, which is why we created the Signet Baltic Bond Fund. With a lower investment threshold, it provides a simpler way to invest in a diversified portfolio of Baltic corporate bonds. We expect the Fund to become an increasingly important part of the Baltic capital market in the coming years, while also helping channel private capital toward financing the growth of companies across the region. Following the admission of the Fund’s units to trading on the Nasdaq Baltic exchange, it has become an investment accessible to every resident of Latvia,

says R. Idelsons.

The Group’s other companies also continue their strategic development. Magnetiq Bank will continue investing in process automation, developing technology-driven lending solutions, and strengthening its integration into the Latvian and European Union fintech ecosystem by expanding cooperation with peer-to-peer payment platforms, crypto-asset service providers, digital lending platforms, and e-commerce businesses. Meanwhile, Primero Finance AS and SIA AgroCredit Latvia will continue developing their loan portfolios in their respective specialized market segments, complementing the Group’s overall range of financing services. 

To support further growth in the Group’s business volumes, particularly its loan portfolio, the Group completed the largest new equity raise in its history during the first half of 2026, raising a total of EUR 10.5 million in additional equity capital through three separate issuances. Following these issuances, the Group’s total number of shareholders increased to 47 local and international private investors. The Group’s capital base was further strengthened through the issuance of EUR 2.5 million in Additional Tier 1 (AT1) bonds, as well as a EUR 5 million subordinated Tier 2 loan from the European Energy Efficiency Fund.

Signet Bank Group has reached a stage of development where our priority is not only to continue growing, but also to deliberately increase the scale of that growth. A stronger capital base provides greater capacity to finance larger projects, expand our range of investment products, and continue improving access to capital markets financing for businesses. Our ambition is to strengthen the Group’s position as one of Latvia’s leading financial services groups, capable of providing companies and investors with a broad range of financing and investment solutions, while gradually increasing our role in the Baltic financial market as well,

R. Idelsons says, outlining the Group’s near-term objectives.