LHV Group’s unaudited financial results for Q3 and nine months of 2025
The third quarter of 2025 was characterised by an increase in business volumes, with continued pressure on revenues and profitability for the LHV Group.
In Q3 2025, LHV Group earned EUR 26.3 million in net profit. LHV Pank posted a net profit of EUR 24.5 million, LHV Bank Ltd EUR 1.0 million, LHV Kindlustus EUR 0.7 million and LHV Varahaldus EUR 0.8 million. The return on equity attributable to the shareholders of the Group was 14.3% in Q3.
On a consolidated basis, LHV Group earned net income of EUR 72.7 million in Q3 2025, which was 2% less than in the previous quarter and 13% less than a year ago. Of the net income in Q3 of this year, EUR 55.5 million was net interest income and EUR 15.3 million net fee and commission income. Expenses totalled EUR 38.8 million, which was 4% less than in the previous quarter and 8% more than a year ago. Loan impairment in Q3 amounted to EUR 1.7 million due to few customers. The Group’s net profit of EUR 26.3 million was 14% lower in Q3 than in the previous quarter and 24% less than in the same period of the previous year.
As at the end of September, LHV Group’s consolidated assets amounted to EUR 9.53 billion, which was 2% more than in the previous quarter and 22% more than in the same period last year. The consolidated loan portfolio grew by EUR 236 million, or 5%, to EUR 5.23 billion. LHV Group’s consolidated deposits increased by EUR 89 million, or 1%, to EUR 7.45 billion. The volume of funds managed by LHV increased by EUR 57 million, to EUR 1.62 billion. The number of payments made by customers who are financial intermediaries was 21.3 million in Q3, which exceeded the previous quarter by 1.4 million payments.
LHV Group’s consolidated net income for the first 9 months of 2025 totalled EUR 226.0 million, which is EUR 27.4 million, or 11% less than in the same period last year. Expenses totalled EUR 116.8 million, which was EUR 10.7 million, or 10% more. The Group’s consolidated net profit for the first nine months was EUR 86.2 million, which is EUR 27.8 million or 24% less than a year earlier. LHV Pank posted a net profit of EUR 79.4 million in 9 months, LHV Bank Ltd EUR 3.3 million, LHV Kindlustus EUR 2.4 million and LHV Varahaldus EUR 1.4 million. LHV Group’s ROE was 16.1% for 9 months.
Based on the 9 months of 2025, LHV Group is EUR 2.8 million (-1%) behind the financial forecast given the level of net income and EUR 2.7 million (-3%) behind the plan at the level of net profit.
| Income statement, thousands of euros | Q3 2025 | Q2 2025 | Q3 2024 adjusted |
| Net interest income | 55,532 | 57,643 | 67,427 |
| Net fee and commission income | 15,296 | 15,579 | 14,629 |
| Net financial income | 1,167 | 380 | 798 |
| Result of the insurance service | 627 | 1,065 | 356 |
| Other operating income and expense | 39 | 0 | 355 |
| Total net income | 72,661 | 73,907 | 83,565 |
| Staff costs | -22,351 | -22,901 | -19,499 |
| Office expenses | -730 | -679 | -801 |
| IT costs | -3,837 | -4,017 | -3,612 |
| Marketing expenses | -1,140 | -1,526 | -1,297 |
| Other operating expenses | -10,704 | -11,387 | -10,701 |
| Total expenses | -38,762 | -40,510 | -35,910 |
| Operating profit | 33,899 | 33,397 | 47,655 |
| Profit before loan impairment | 33,899 | 33,397 | 47,655 |
| Loan impairment | -1,673 | -4,152 | -7,276 |
| Income tax expense | -5,916 | -6,784 | -5,682 |
| Net profit | 26,310 | 30,765 | 34,697 |
| Minority holding | 606 | 716 | 312 |
| Profit attributable to shareholders of the parent company | 25,703 | 30,049 | 34,385 |
| Net profit per share, euros | 0.08 | 0.09 | 0.11 |
| Diluted net profit per share, euros | 0.08 | 0.09 | 0.10 |
| Balance sheet, thousands of euros | Sept 25 | June 25 | Sept 24 |
| Cash and due from banks | 3,837,093 | 3,867,487 | 3,376,016 |
| Financial assets | 402,971 | 454,979 | 259,933 |
| Loans to customers | 5,279,528 | 5,038,379 | 4,168,778 |
| Loan impairment reserve | -45,277 | -39,734 | -42,543 |
| Trade receivables | 12,403 | 16,626 | 10,598 |
| Other assets | 42,980 | 46,058 | 47,567 |
| Total assets | 9,529,699 | 9,383,795 | 7,820,349 |
| Demand deposits | 4,862,458 | 4,669,435 | 4,160,516 |
| Term deposits | 2,590,440 | 2,694,906 | 2,125,844 |
| Loans received | 1,048,556 | 1,037,347 | 679,550 |
| Trade payables and loans received | 8,501,454 | 8,401,688 | 6,965,910 |
| Accrued expenses and other liabilities | 84,143 | 105,692 | 108,605 |
| Subordinated debt | 207,001 | 161,155 | 106,079 |
| Total liabilities | 8,792,598 | 8,668,535 | 7,180,594 |
| Owners’ equity | 737,101 | 715,260 | 639,755 |
| incl. minority holding | 8,456 | 7,850 | 8,006 |
| Total liabilities and owner’s equity | 9,529,699 | 9,383,795 | 7,820,349 |
LHV Group’s net income in Q3 was affected by the impact of interest rate dynamics. Due to the negative delay period, interest rates on loans have fallen faster than on deposits, which has therefore put net interest income under pressure. Profitability was affected by the increase in loan impairments related to individual customers compared to the previous quarter. Loan volumes and deposits continued to grow in Q3, having increased by EUR 236 million and EUR 89 million, respectively, compared to the previous quarter.
The number of LHV Pank customers grew by 9,200 during the quarter. Customer activity is good when it comes to settlements and card usage. During the same period, the bank’s deposits increased by EUR 79 million, of which only EUR 1 million came from the deposits of financial intermediaries. The bank’s deposits amounted to EUR 6.64 billion at the end of September. The share of term deposits remains higher than planned. The focus remains on activating deposits and customers. Euromoney, a leading international business magazine, named LHV Pank the best bank in Estonia. In addition, employer branding agency Instar conducted a survey on job expectations and employer reputation, which revealed that LHV Pank is the preferred employer among economics students and the working-age population in 2025.
The loan portfolio of LHV Pank increased by EUR 145 million compared to the previous quarter and amounted to EUR 4.57 billion. The quality of the portfolio remained strong, with loan impairment attributable to few customers. High competition in the loan market is putting downward pressure on loan margins. As at 9 months, the net profit of LHV Pank was EUR 79.4 million, which is EUR 2.8 million below the financial plan.
LHV Bank’s loan portfolio in the United Kingdom increased by EUR 91 million, to EUR 660 million. At the same time, loans worth more than EUR 200 million have been approved by the Credit Committee but not yet been issued, which is also a prerequisite for the rapid growth of loan volumes in the next quarter.
The deposits taken by LHV Bank decreased by 20 million quarter-on-quarter and amounted to EUR 1.0 billion. Apple Pay and push notifications were added to the offer in Q3, and direct debits and additional deposit products are planned to be launched in the next quarter. After the addition of new products, the plan is to make the pricing of deposits more attractive and start a new marketing and communication campaign. In order to support the rapid growth of the loan portfolio, the share capital was increased by EUR 12 million. As at 9 months, LHV Bank’s net profit was EUR 3.3 million, exceeding the financial plan by EUR 0.8 million.
The sales results of LHV Kindlustus for Q3 were slightly below the financial plan. The volume of insurance premiums across the market decreased significantly compared to the same period last year. Quarterly sales increased by EUR 1.7 million year-on-year due to good sales in home and travel insurance. As at the end of September, the number of valid insurance contracts stood at 289,000, which has increased by 12,000 over the quarter. As at 9 months, the net profit of LHV Kindlustus was EUR 2.4 million, exceeding the financial plan by EUR 0.7 million.
The growth of financial markets and the strong rise in the price of gold in Q3 were also reflected in LHV pension funds, which all offered a strong positive return. The rates of return of LHV pension funds Ettevõtlik, Julge and Tasakaalukas were 5.2%, 5.8%, and 3.1%, respectively in the quarter. The conservative fund Rahulik rose by 1.7%. The pension fund Indeks rose by 8.4%. In 9 months, the net income of LHV Varahaldus remained largely the same as in the previous quarter, and net profit increased. The number of second pillar customers making active monthly contributions was 107,000 by the end of the quarter.
LHV Group is well capitalised and all capital objectives are met with sufficient margin. In Q3, LHV Group issued EUR 80 million worth of subordinated bonds. Moody’s upgraded the non-subordinated debt rating of LHV Group to Baa2.
Comment by Mihkel Torim, Chairman of the Management Board at LHV Group:
“The third quarter was a period in which falling interest rates and competitive pressure on margins affected LHV’s results. Nevertheless, we continued to grow our key business volumes at a solid pace: our loan portfolio increased by 27% year-on-year to €5.2 billion, while the number of clients, the volume of payments processed for financial intermediaries, and the assets managed by our funds all grew. Deposits also showed strong growth, reaching €7.5 billion, providing a solid foundation for our future lending activities. We remain well-capitalised, and the recent bond issuance further strengthens our position going forward.”
To access the reports of AS LHV Group, please visit the website at https://investor.lhv.ee/en/reports/.
In order to present the results of the quarter, LHV Group will organise an investor meeting via the Zoom webinar platform. The virtual investor meeting will take place on 21 October at 9.00, before the market opens. The presentation will be in Estonian. To participate in the webinar, please register in advance.
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 1,100 people. As at the end of September, the services of LHV Pank are being used by 483,000 customers, the pension funds managed by LHV have 107,000 active customers, and LHV Kindlustus protects a total of 227,000 customers. 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.
Investor relations
Sten Hans Jakobsoo
Head of Investor Relations and Corporate Development
E-mail: stenhans.jakobsoo@lhv.ee
Media and Communication
Paul Pihlak
Head of Communications
E-mail: paul.pihlak@lhv.ee
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