Signet Bank has completed its LPB Bank acquisition deal, as confirmed by the bank’s representatives.
The bank notes that after receiving permission from the Bank of Latvia and the European Central Bank, as well as coordination from the Competition Council, the deal in which Signet Bank acquires LPB Bank was successfully completed on Monday, the 11th of December.
It is planned for Signet Bank and LPB Bank to continue operating as separate entities. Currently there are no plans for any changes to everyday operations and customer services.
The bank explains that from now on LPB Bank will continue operations as a Signet Bank subsidiary. The credit institution will retain its licence and will focus on FinTech services,
Banking as a Service (BaaS) services and innovative digital financial products. LPB Bank’s brand will be changed.
LPB Bank clients who use classic bank products will be offered to establish cooperation with Signet Bank.
LPB Bank’s future development plans will be announced separately.
According to the bank, this deal offers the opportunity to expand Signet Bank Group’s business capacity, enhance digital solutions, as well as significantly increase various customer-focused financial services and products.
“The acquisition of LPB Bank was one of the strategic steps towards the development of Signet Bank Group, which will also allow us to use growth potential in FinTech area. Innovative and effective, high technology financial solutions will be the driving force behind the banking sector in the future, and the integration of LPB Bank’s digital solutions will help strengthen Signet Bank Group’s financial potential,” explains Signet Bank board chairman Roberts Idelsons.
He also mentioned that Latvia still lacks bank products focused on FinTech services and promotion of innovations of the financial system.
LPB Bank council chairman Biomins Kajems mentions the decision to sell shares was made after evaluating the resources, wishes and vision for the development of the group.
“After evaluating our resources, plans and vision for the group’s development, we made the decision to sell the bank’s shares. This decision did not come easy. This deal provides LPB Bank an opportunity to continue growing and developing in a new, innovative and dynamic environment,” says Kajems.
Latvian Finance and Capital Market Commission (FKTK), which merged with the Bank of Latvia in 2023, permitted Signet Bank and Expobank to merge in July 2022.
In nine months of 2023 Signet Bank operated with profits equal to EUR 4.319 million. The group’s overall profits reached EUR 3.794 million. Signet Bank assets were worth EUR 385.373 million as of the 30th of September 2023, which is 2.3% less when compared to the end of 2022 (EUR 394.307 million).
Signet Bank shareholders include nine Latvian and international private investors, including Signet Acquisition III (24.5%), whose sole shareholder is US investors Alexandr Solovey, RIT Group (19.51%), which is owned by Rapoport family, and Reglink LLC (15.93%), whose founder is Irīna Pīgozne.
LPB Bank operated with profits of EUR 789 000 in nine months of 2023, which is 3.9 times less when compared to the same period of 2022. The bank’s assets were worth EUR 168.906 million at the end of September 2023, which is 2.4% more when compared to the end of 2022.
LPB Bank’s sole owner is Mono. Mono is owned by Mikhails Ulmans (49.43%), US citizen Alexander Plotkin (32.67%) and Kajems (17.9%), according to information from Firmas.lv.
Asset-wise LPB Bank was the smallest bank in Latvia at the end of 2022, according to information published by the Bank of latvia.
Also read: Dombrovskis: Latvia should commit to reducing budget deficit in coming years
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