Holm Bank, celebrating the fifth anniversary of acquiring a banking license in April, issued a record amount of new loans in 2023, vigorously grew the deposit portfolio and successfully carried out its first bond issue. The net loan portfolio of the company operating in Estonia and Latvia grew by 41%, the volume of deposits by 49%, and the company earned a record 1.6 million net profit.
According to Kaspar Kalvet, chairman of the board of Holm, extensive investments in business development in recent years, bringing innovative new products to the market and keeping the promise of the highest deposit interest to consumers led to record results.
“After receiving the banking license, we started the development of a new bank core and also acquired a 100% stake in our Latvian subsidiary. We have subsequently come up with business loans in Estonia and Latvia, introduced leasing solutions for both private and business customers, refinancing loans, home loans, home energy loans to the market in Estonia. In addition, a new installment payment solution, which allows you to request an installment payment based on a picture of the product, and a unique credit card solution that guarantees a 100-euro credit without interest or any other additional fees. There has been a strong demand for all these services, thanks to which our loan portfolio is almost half the size of last year,” explained Kalvet.
By the end of 2023, Holm’s net loan portfolio was 139.6 million euros, of which the Estonian portfolio was 98.8 million euros (45% increase compared to 2022) and the Latvian portfolio was 40.9 million euros (32% increase compared to 2022). Despite the increase in the volume of loans, the quality of loans remained high – the share of non-performing loans was at a low level of 2.3%, similar to 2022.
“The amount of interest paid out to fixed-term depositors also made a big jump, which increased by more than 2.5 times compared to the 2022 payouts. In the new year, we will continue to actively attract deposits both in Estonia and on foreign markets. While most banks have already sharply reduced the interest on term deposits today, Holm continues to offer the most popular periods an opportunity to earn more than 4%,” said Kalvet.
In 2023, Holm also successfully expanded the investor base by issuing subordinated bonds. “We are reaching the next phase of our growth path and have started to offer investors the opportunity to take part in our development story. The inclusion of the bonds helped further secure our strong capital and liquidity position, enabling us to move forward with our ambitious growth plans in 2024. Although there will probably still be headwinds in the economy in 2024, Holm is in very good shape. We continue to support both private and business customers in implementing their good plans,” said Kalvet.
Holm Bank AS is a bank based on Estonian capital, licensed by the European Central Bank. Holm bank owns the brands Liisi and Holm. The bank’s services include term deposits, physical and virtual credit cards, financing for private and business customers, and installment payments. The bank also offers term deposits in Germany and Austria and owns Holm Bank Latvia SIA, which operates as a financial service provider in Latvia.
2024-04-09 07:29:27
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