Signet Bank shows stable business results in Q1 2023

In the first quarter of this year, Signet Bank provided financing to Latvian entrepreneurs in the amount of 20.6 mln EUR, which led to an increase in the bank’s loan portfolio at the end of the first quarter by 10%, compared to December 31, 2022, and reached 118 mln EUR.

The arrangement of bond issues and initial public offerings (IPOs) is an important line of activity for Signet Bank. As a result of the bond issue, 26.6 mln EUR were raised for clients in the first quarter. We see a growing interest in investments in the capital market, especially in bonds of local companies.

Signet Bank continued to increase its capital in the first quarter of 2023 to ensure more active development of lending. In February 2023, the second phase of the AT1 capital instrument issue was carried out, increasing the Signet Bank Group’s capital by another 2 mln EUR. In total, the Signet Bank Group’s equity for the 1st quarter of 2023 increased by 11%, reaching 29.1 mln EUR. As a result, despite the increase in the loan portfolio, the Signet Bank Group’s capital adequacy ratio increased to 17.74%, while the liquidity coverage ratio was 147%.

In the first quarter of 2023, the Signet Bank Group’s profit amounted to 860 thousand EUR, providing a return on equity (ROE) of 16%.

Signet Bank is a financial institution focused on sustainable development. Also this year, we continue to implement and integrate sustainability principles into our day-to-day operations in accordance with strategic objectives of Signet Bank. In the first quarter, our main focus was on improving the methodology to find out the preferences and profiles of our customers regarding sustainability. In addition, we also plan internal initiatives to strengthen the sustainability culture among our employees, raise awareness of sustainability issues and promote sustainable actions to reduce our direct impact on the environment. We think about sustainability ourselves and encourage our customers to think about it too.

Also in 2023, the bank’s management sees significant development prospects. In addition to lending and arranging bond issuance, Signet Bank has clear growth opportunities in servicing corporate clients and providing investment services.