Holm celebrates its anniversary with the most successful year in its history

Holm, Estonia’s youngest and fastest-growing bank, which is marking the 5th anniversary of obtaining its banking licence this April, issued a record number of new loans in 2023, strongly boosted its deposit portfolio and successfully completed its first bond issue. The net loan portfolio of the company, which operates in Estonia and Latvia, grew by 41%, while its deposits increased by 49% and the company earned a record net profit of €1.6 million.

CEO Kaspar Kalvet says the record results were achieved due to extensive investments in business development in recent years, the launch of innovative new products and the bank keeping its promise of the highest interest rate on deposits for consumers.

“After we gained our banking licence, we started developing the new core of the bank and also acquired a 100% stake in our Latvian subsidiary,” he explained. “We then started issuing business loans in Estonia and Latvia, launched leasing solutions for both private and corporate clients, and a refinancing loan, home loan and home energy loan in Estonia. We also developed an innovative hire-purchase solution that makes it possible to request hire purchase based on a photo of the product, and a unique credit card solution that guarantees €100 credit without interest or any other additional charges. Demand for all these services has been high, and as a result our loan portfolio has increased by almost 50% compared to last year.”

Holm’s net loan portfolio at the end of 2023 was €139.6 million, of which the Estonian portfolio comprised €98.8 million (a 45% increase compared to 2022) and the Latvian portfolio €40.9 million (a 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 a low 2.3%, similar to that of 2022.

Kalvet says the amounts of interest paid out to term deposit holders also increased considerably. “By more than 2.5 times compared to the payouts made in 2022,” he noted. “In the new year we’ll continue to actively raise deposits in Estonia and abroad. Whereas most banks have already sharply reduced their interest rates on term deposits, Holm continues to offer earning potential of over 4% for the most popular periods.”

In 2023, Holm also successfully expanded its investor base by issuing subordinated bonds. “We’re entering the next stage of our growth journey and have started to open up opportunities for investors to be part of our development story,” said Kalvet. “The bond issue reinforced our already strong capital and liquidity position, which will allow us to press ahead with our ambitious growth plans in 2024. Even though a headwind will probably continue blowing in the economy during the year, Holm is in very good shape. We’ll continue supporting our private and corporate clients in getting their plans off the ground.”

Holm Bank AS is an Estonian-owned bank with an operating licence issued by the European Central Bank. Holm Bank owns the trademarks Liisi and Holm. The bank’s services include term deposits, physical and virtual credit cards, retail and corporate financing and hire purchase. The bank also offers term deposits in Germany and Austria and owns Holm Bank Latvia SIA, a financial services provider in Latvia.