Signet Bank acquires LPB Bank

Following the approval of the Bank of Latvia and the European Central Bank, and the approval of the Competition Council, on 11 December 2023 a transaction was completed whereby a local investment bank, AS Signet Bank, acquired AS LPB Bank. 

LPB Bank in the transaction result will be rebranded. LPB Bank will continue to operate as a subsidiary of the Signet Bank Group, retaining its existing credit institution license, and focusing on FinTech companies, Banking as a Service (BaaS) and innovative digital financial products. 

This transaction will enable Signet Bank Group to increase its business volumes, strengthen its digital solutions and significantly increase and diversify the range of financial services and products offered to customers.

"The LPB Bank transaction stands as one of several strategic moves for Signet Bank Group, unlocking growth opportunities in FinTech. Innovative and efficient, high-tech digital financial solutions are the driving force of the future in the banking sector, and integrating LPB Bank's digital investments will elevate Signet's high-tech financial solutions, effectively addressing market gaps in Latvian finance. There is still a lack of banking products in Latvia that are focused on serving FinTech companies and driving innovation in the financial system - this transaction is poised to modestly impact the current landscape while playing a pivotal role in shaping the future development of Signet Bank Group," says Roberts Idelsons, Chairman of the Board of Signet Bank. 

Biomin Kayem, Chairman of the Supervisory Board of LPB Bank, comments on the decision to sell the bank: “15 years is a long period and an important base to take a thoughtful and deliberate step forward. After assessing all our resources, wishes and vision for the development of our group, we took the decision to sell the Bank's shares, which, I must admit, did not come easily. This transaction gives LPB Bank the opportunity to continue to grow and develop in a new, innovative and dynamic environment. We are confident that Signet Bank Group, as a strong owner, will give the bank the opportunity to grow and expand its services in digital finance.”

Signet Bank and LPB Bank will continue to operate as separate credit institutions and there will be no current changes in the day-to-day handling and servicing of customers. 

Once the preparatory work is completed, LPB Bank customers who use traditional banking products will be offered to start cooperation with Signet Bank. In turn 

LPB Bank will focus on servicing FinTech companies, offering them a wider range of products. 

LPB Bank customers will receive timely information about the planned changes. 

Further development plans of LPB Bank will be announced separately.

About Signet Bank

Signet Bank was founded in 1991 and is one of Latvia’s first independent banks. The bank’s strategy focuses on providing financing and capital management services to local entrepreneurs and their businesses. Since the start of 2021, Signet Bank has provided customers with almost EUR 500 million of financing in the form of loans and bonds. Signet Bank’s shareholders are nine Latvian and international private investors, of whom the biggest is Signet Acquisition III (25%), whose sole shareholder is US investor Aleksandrs Solovejs; AS RIT Group (19.50 %), a Latvian company owned by the Rapoport family, and SIA Reglink (15.93 %), founded by banker Irīna Pīgozne.