Management Report on BluOr Bank Activities in H1 2025

BluOr Bank’s activities in the first half of 2025 are characterized by stability and targeted development in accordance with the Bank’s business model and strategic goals.

The Bank ended the reporting period with a profit of EUR 7.8 million. In the first half of 2025, the Bank’s net operating income amounted to EUR 21.2 million. The amount of the Bank’s equity capital is EUR 122.8 million, and the total amount of assets is EUR 1 106.6 million.

In the first six months of 2025, the Bank raised EUR 1 million in new Tier 1 capital through its own bond offering.

As of June 30, 2025, the Bank’s liquidity coverage ratio (LCR) stood at 136.37% (LCR), and the capital adequacy ratio – 18.80%. Other key indicators of the Bank’s financial performance for six months are also successful: return on equity (ROE) – 16.54% and return on assets (ROA) – 1.49%.

The Bank successfully implements its business strategy focused on providing services to Latvian corporate clients: over the past 12 months, the number of clients – Latvian companies has increased by 26%.

BluOr Bank continues to actively provide loans to companies, offering financing to entrepreneurs from a wide variety of industries. Over a six-month period, the Bank signed new loan agreements worth EUR 148.4 million, representing a 68% increase compared to the first half of the previous year. Of this amount, 87.3% was allocated to lending and business development for small and medium-sized enterprises (SMEs) in both Riga and the regions of Latvia.

As of June 30, 2025, the total loan portfolio (loans granted and disbursed) reached EUR 667.8 million.

As a bank founded by Latvian entrepreneurs, BluOr Bank focuses on long-term relationships with its clients, therefore it continuously improves and develops existing financial services in accordance with the needs of both companies and individuals. In response to the growing demand for accessing all financial services within a single banking institution, BluOr Bank has significantly accelerated the issuance of mortgage loans for home purchases during the reporting period. This marks a new phase in the Bank’s development — alongside its established business services, the Bank is now strategically expanding its presence in the retail segment.

In addition to issuing new mortgage loans, the Bank has previously offered the option to refinance mortgage loans from other banks. This activity intensified notably in the first half of 2025, and the Bank plans to continue providing refinancing options in the second half of the year for clients who have already taken out a mortgage loan with another bank. This approach enables the Bank to offer more favourable terms and a wider range of choices.

To streamline payment processes, the Bank transitioned from the MasterCard payment system to the VISA payment system in the early months of the year.

The Bank has incorporated sustainability goals into its operational strategy, taking into account environmental, social, and governance (ESG) criteria, and is actively implementing this commitment through practical measures. One such initiative is the signing of a guarantee agreement with the European Investment Fund (EIF) under the InvestEU programme, aimed at promoting green investment financing for SMEs in Latvia. With the support of the EIF guarantee, the Bank can offer financing of up to EUR 30 million for projects that contribute to achieving the European Union’s green and sustainable economic development goals and help mitigate the impact of climate change.

During the first half of the year, BluOr Bank actively developed its payment card acquiring business. The number of new clients grew significantly, resulting in a 40% increase in card transactions compared to the same period last year. At the same time, cooperation with partner banks in the Baltic states was expanded, enabling the introduction of new payment solutions across the Baltic region. A key step in this direction has been the implementation of Google Pay and Apple Pay payment systems, providing the Bank’s clients with modern and convenient payment options.

With the aim of providing clients with safer, more convenient, and more efficient payment solutions, BluOr Bank has initiated a partnership with Nets — a leading payment processing service provider in Northern Europe and part of the Nexi Group, a top European payment technology company. Within the scope of the partnership, Nets provides BluOr Bank with card issuance transaction and payment processing services. To enhance service security and availability, the Bank also employs Nets’ fraud prevention solutions, the 3D Secure protocol for secure e-commerce transactions, as well as call centre support outside of banking hours to assist with card-related inquiries.

Having steadily increased its market share in Latvia each year, the Bank plans to purposefully expand its range of services for retail clients. Gradually evolving from a specialized business partner to a full-service commercial bank, BluOr Bank is becoming the first among systemically important Latvian capital banks to offer a high-quality and comprehensive range of services to both businesses and individual clients.

The Bank continues to maintain high priority status on all issues related to risk management and operational compliance, keeping a close eye on all changes on the international scene.