Signet Bank Group closes 2023 with solid financial results

Signet Bank Group closes 2023 with solid financial results, historically best financial results. In 2023, Signet Bank Group (the “Group”) has not only managed to significantly increase its business volume indicators – number of customers, deposits and loan portfolio, but also to significantly expand its business development scope and strengthen its position in the banking sector by making strategically important acquisitions.

In 2023, the Group’s total operating income amounted to EUR 25 million. Deposits grew to EUR 481 million, the loan portfolio grew to EUR 167 million. Total customer funds under management and administration (AUMA) increased by 35% to EUR 1.4 billion. The Group’s capital adequacy ratio stood at 17.7% at the end of 2023, while the liquidity coverage ratio was 143%. The Group’s profit after tax in 2023 amounted to EUR 5.4 million.

At the end of last year, Signet Bank acquired 100% of the voting shares of AS LPB Bank, becoming its parent company. The acquisition will increase the Group’s business, strengthen its digital solutions, and significantly expand and diversify the range of financial services and products offered to customers. In addition, Signet Bank’s subsidiary, Signet Pension Management IPS, started operations in the area of management of state funded pension plans.

“2023 is the best year ever for the Signet Bank Group, both in terms of financial results and business development. The group’s capital markets business also had a successful year in 2023, with 11 bond and equity issues, raising EUR 149 million in funding, an 81 percent increase on 2022. Bond issues and initial public offerings (IPO) for Baltic companies, as well as providing financing to local companies in the form of loans have been key areas of activity for us for several years. The Group will continue to focus on these products, making an important contribution to the development of the Latvian capital market and access to finance,”

says Roberts Idelsons, Chairman of the Board of Signet Bank.

The Group’s long-term goal to be a leader in the capital market is also confirmed by Nasdaq Baltic 2023 data on total capital market activity in the Baltics. For the second year in a row, Signet Bank retains the leading position in the Latvian bond market in terms of the volume of organized bond issues, accounting for 57% of the total market. Signet Bank is also the Nasdaq Baltic leader in 2023 in terms of bond trading volume in the Baltics.

The Group continues to develop its activities in line with sustainability principles. In 2023, a Sustainability Strategy 2023-2025 was developed to effectively integrate sustainability at all levels of the organization and promote the availability of sustainable financial solutions. A major development in the past year was the launch of cooperation with the European Energy Efficiency Fund (eeef) to develop and finance energy efficiency projects in Latvia. The cooperation with eeef will allow the Group to improve its financing offer to local companies, strengthen its expertise in developing sustainable projects and promote solutions to mitigate climate change.

As a socially responsible company, the Group supported a number of cultural, sporting and educational initiatives and launched the Capital Market Academy, an educational and social project to provide local companies with the knowledge, resources and support they need to grow their businesses effectively by taking advantage of the opportunities offered by the capital market.