LHV Group results for July 2024

LHV’s credit portfolios and other business volumes continued to grow in July. The consolidated credit portfolio of AS LHV Group increased by EUR 103 million during the month. Consolidated deposits showed an increase of EUR 185 million. The volume of funds managed by LHV increased by EUR 25 million in July. A total of 6.4 million payments related to financial intermediaries were made during the month.

AS LHV Group’s consolidated net profit amounted to EUR 12.1 million in July. Among the subsidiaries, AS LHV Pank generated a net profit of EUR 12.1 million during the month, AS LHV Varahaldus EUR 88 thousand and AS LHV Kindlustus EUR 126 thousand. LHV Bank Ltd generated a net loss of EUR 192 thousand in July.

The number of LHV Pank customers increased by 3,600 in July. LHV Pank’s results were influenced by a faster-than-planned growth in the loan portfolio, which led to higher interest income. Of the EUR 81 million growth in the loan portfolio, EUR 43 million came from corporate loans and EUR 38 million from retail loans. The month was characterised by excellent sales of housing loans. As a result of maintaining the credit quality at a good level, discounts remained lower than expected. In terms of deposits, both deposits from regular LHV Pank customers (+ EUR 89 million) and deposits from financial intermediaries (+ EUR 69 million) increased.

The loan portfolio of the UK-based LHV Bank increased by EUR 23 million in July, with the total amount of approved but not yet granted loans increasing to EUR 147 million. Platform deposits collected from a total of 6,800 depositors increased by EUR 39 million during the month. The volume of deposits from financial intermediaries, which fell significantly in June, reduced interest income in July. LHV Bank’s profits were hit by higher than planned operating costs resulting from the active development of the retail banking offer.

In the context of volatile markets, larger funds managed by LHV Varahaldus showed positive returns in July. At the same time, the growth of the reference index reached the most modest level in recent years (annual increase of 5.0% in July). The revenues and profitability of the asset management company were largely in line with the financial plan, costs increased by a one-off employee expense. The number of active pension clients fell slightly in July to 118,000 clients.

LHV Kindlustus showed a strong sales performance in July, with 14,200 new insurance contracts concluded for a total value of EUR 3.4 million. Loss events were compensated by EUR 1.8 million. The insurance company’s profitability is above the financial plan; the net loss ratio is stable, while the expense ratio is on a downward trend.

The story continues

The net profit of the LHV consolidation group exceeds the financial plan by EUR 17.7 million. The financial plan is in force.

AS LHV Group reports are available at: https://investor.lhv.ee/en/reports.

LHV Group is the largest domestic financial group and capital provider in Estonia. The main subsidiaries of LHV Group are LHV Pank, LHV Varahaldus, LHV Kindlustus and LHV Bank Limited. The Group employs over 1,100 people. At the end of July, 437,000 customers used LHV banking services, pension funds managed by LHV have 118,000 active customers and LHV Kindlustus protects a total of 167,000 customers. LHV Bank Limited, a subsidiary of the Group, has a banking license in the UK and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.

Priytov Rum
Communications Manager
Phone: +372 502 0786
E-mail address: [email protected]

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