Rauno Klettenberg, the chairman of the management board of the Estonian-owned Holm Bank AS, says that in spite of the coronavirus crisis the bank managed to post an impressive result for 2020: the bank’s total assets grew by 38.5% to reach 77.7 million euros by the end of the year, during which it earned almost 1.1 million euros in profit from its operations on the Estonian, Latvian and Swedish markets.
According to a survey conducted by Holm Bank, around half of small businesses feel that banks would not assist them in resolving issues they needed help with. According to the CEO of Holm Bank, the results highlight how disproportionate the market is: banks tend to focus on big, successful companies, while small and micro-companies, which are also major players in driving economic growth, are often ignored.
Holm Bank has conducted a survey of 300 Estonian micro-businesses which has revealed that almost half (47%) of all enterprises with up to 10 workers have decided not to investing in their business in 2021. The investment confidence of enterprises owned by Russian-speaking business people and firms operating in the north-eastern part of the country has been hit especially hard.
According to the manager of Holm Bank Rauno Klettenberg, providing services primarily to private clients and small enterprises, the crisis has been less damaging to many people than originally anticipated, e.g. a survey conducted by Holm Bank indicates that only one in five small enterprises needed state aid. However, Klettenberg points out that the pandemic still caused a lot of investment plans to be put on hold.
A survey carried out among businesses with fewer than 10 employees has shown that Estonian micro-businesses have survived the 2020 coronavirus crisis better than initially feared. More than 40% of the businesses surveyed stated that the crisis has not had any impact on their turnover, while almost a quarter have only seen a 20% decrease in turnover.
Holm Bank AS, based 100% on Estonian capital, started providing services on the Latvian and Swedish markets. In Latvia, Holm offers hire-purchase services, hire-purchase cards, and consumer loans under its own brand, and on the Swedish market, the company is launching a digital credit card solution as its first service.