LHV Group results in April 2021
In April, the consolidated net profit of LHV Group reached EUR 4.2 million. Within the month, LHV Pank earned EUR 4.3 million in net profit, including EUR 0.5 million from servicing clients related to the United Kingdom branch. The net profit of LHV Varahaldus was EUR 0.2 million in April.
The number of bank clients increased by 4,300 in April. Client activity was good, and we could see especially high activity in applications for home loans. Within the month, the LHV loan portfolio increased by EUR 16.5 million, half of which originated from housing loans. Due to the reduction of deposits of deposit platforms, the volume of deposits decreased by a total of EUR 33 million, while the deposits of financial intermediaries and private clients both increased.
In April, LHV Finance introduced a refinancing loan to the market, which enables clients to comfortably join several consumer loans into a single loan. The NPS Benchmark recommendation index survey by the survey company Kantar Emor showed that LHV’s internet bank holds first place on the leaderboard of service experience in Estonian online environments.
The number of clients of LHV Varahaldus decreased in April, mainly due to people in early retirement and pensionable age leaving the II pillar, while the activity of leaving the II pillar has significantly decreased in April. On the markets, it was a volatile month, but the volume of funds managed by LHV increased to a record level of nearly EUR 1.6 billion.
In April, LHV Kindlustus made preparations for introducing motor own damage insurance and motor third party liability insurance to the market, and for commencing the active offering of insurance products. From 10 May, LHV home insurance, motor third party liability insurance and motor own damage insurance are all available, and the insurance undertaking is ready to offer a strong alternative in the insurance market that has so far mainly been occupied by foreign capital. With taking over the additional warranty portfolio and the bank card travel insurance, the number of clients of LHV Kindlustus had already grown to 128,000 clients by the end of April. The profitability of the company is increasing.
Increasing of the share capital of LHV Group in relation to realising the options programme of current and former employees also took place in April.
In the beginning of May, the rating agency Moody’s Investors Service affirmed LHV Pank’s investment grade credit rating at Baa1, but changed the outlook of long-term deposit ratings from stable to positive.
LHV’s financial plan stands, all business volumes are slightly better than planned. The net profit is ahead of the financial plan by EUR 1.7 million. The success is mainly the result of better service fees and quality of the credit portfolio than expected.
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. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, and LHV Kindlustus. LHV employs over 570 people. LHV’s banking services are used by 279,000 clients, the pension funds managed by LHV have 175,000 active clients, and LHV Kindlustus protects a total of 128,000 clients. LHV’s UK branch offers banking infrastructure to 150 international financial services companies, via which LHV’s payment services reach clients around the world.
Priit Rum
LHV Communication Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee
Attachment
