LHV Group results in April 2025
April was a month of excellent results and strong deposit growth for LHV. The consolidated loan portfolio of LHV Group grew by EUR 77 million, and the total amount of deposits increased by EUR 727 million in April. The volume of funds managed by LHV decreased by EUR 4 million over the month. Payments related to financial intermediaries amounted to 6.5 million in April.
AS LHV Group earned EUR 10.8 million in net profit in April. By subsidiary, AS LHV Pank earned a net profit of EUR 10.1 million, LHV Bank Ltd EUR 83 thousand, AS LHV Kindlustus EUR 319 thousand and AS LHV Varahaldus EUR 68 thousand. The return on equity attributable to the shareholders of LHV Group was 19.1% and the financial plan remains.
The number of customers in LHV Pank increased by 2,800 in April. While the loan portfolio of the bank grew by EUR 53 million, the volume of deposits increased by EUR 574 million – strong growth compensated for the downturn of the previous quarter. EUR 41 million of the increase in deposits came from retail customers and EUR 212 million from corporate customers (partially temporary deposits). In addition, platform deposits were increased by EUR 120 million. The decrease in interest income continued in April due to the decline in Euribor. The level of credit quality was good, and in the coming months there may be an opportunity for a reduction in impairments.
In April, Moody’s Ratings raised the ratings of LHV Pank’s covered bond programme and covered bond ratings to the highest Aaa level. In the annual survey organised by CV-Online, LHV has been recognised as one of the leading employers in the financial sector for the fifth consecutive year. In the overall top-of-mind assessment, LHV ranked second.
The business volumes of LHV Bank operating in the United Kingdom continued to grow rapidly. The loan portfolio increased by EUR 24 million and the volume of deposits from the platforms increased by EUR 130 million over the month. Conditions are set for the upcoming direct raising of deposits. In April, the bank’s profit was impacted by the larger marketing expense for the soon-to-be-launched campaign for retail banking. In April, the equity capital of LHV Bank was increased by EUR 12 million and subordinated bonds were issued in the same amount.
LHV Kindlustus signed new insurance contracts in the amount of EUR 3.7 million in April. Claims paid totalled EUR 2.1 million and 12,800 new claims were registered. The loss ratio of major insurance products remained at good level, ensuring good profitability for LHV Kindlustus.
The profitability of LHV Varahaldus met the financial plan. The month was characterised by a tense time on the stock markets, while the pension funds managed by LHV were able to maintain their value. The larger funds, L and XL, declined by 0.4% and 0.3% respectively over the month, but have delivered year-to-date returns of 3.4% and 4.1%. Index funds performed more weakly, with LHV Pensionifond Indeks falling by 4.1% during the month.
In April, AS LHV Group issued EUR 50 million worth of Tier 1 capital, which ensures sufficient capitalisation for the company’s growth and allowed the repurchase of AT1 bonds issued five years prior. Moody’s Investors Service reviewed LHV Group’s credit ratings at the end of the month, leaving them unchanged. LHV Group’s long-term issuer rating is Baa3 with a positive outlook.
To access the reports of AS LHV Group, please visit the website at https://investor.lhv.ee/en/reports.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1,150 people. As at the end of April, LHV’s banking services are being used by 468,000 clients, the pension funds managed by LHV have 113,000 active clients, and LHV Kindlustus protects a total of 176,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the United Kingdom and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.
Priit Rum
Communications Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee
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