LHV Group 2023 Audited Annual Report and Dividend Proposal
The Supervisory Board of AS LHV Group approved the 2023 audited annual report and will submit it to the Annual General Meeting for approval. Compared to the unaudited interim report published on 6 February, there are no differences in the audited financial results. The 2023 consolidated annual report of LHV Group is attached to this notice and will be made available on the LHV Group investor page at https://investor.lhv.ee/en/reports/#annual-reports.
LHV Group generated consolidated revenues of EUR 310.5 million (+79%) in 2023. Of the revenue, net interest income accounted for EUR 253.8 million (+97%), and net fee and commission income EUR 54.1 million (+21%). The expenses of the consolidation group in 2023 amounted to EUR 134.3 million (+50%). The consolidated net profit of LHV Group in 2023 amounted to EUR 140.9 million, i.e., 129% more than in 2022. LHV Group’s annual cost/income ratio was a good 43.3% and the return on equity was 29.0%. Ordinary earnings per share in 2023 amounted to EUR 0.44 and diluted earnings per share to EUR 0.43.
As at the end of 2023, the consolidated assets of LHV Group stood at EUR 7.13 billion, growing by 16%, i.e., EUR 991 over the year. The Group’s consolidated deposits grew by 17% over the year to EUR 5.73 billion. The Group’s consolidated loan portfolio increased by EUR 3.56 billion, i.e.,11% in 2023. The aggregate volume of funds managed by LHV increased by 14% over the year, to EUR 1.52 billion. The number of payments processed in relation to clients who are financial intermediaries reached 49.5 million payments in 2023 (+89%).
The number of LHV Pank clients increased to 417,000 in 2023. Over the year, the number of bank clients increased by 39,500, i.e., more than 10%. As at the end of the year, the number of active II pillar pension clients at LHV stood at 123,000 (-6%), and 161,000 clients had insurance from LHV Kindlustus (+8%).
Among the subsidiaries, AS LHV Pank earned a net profit of EUR 141.4 million in 2023 (+75% compared to EUR 90.9 million in 2022), UK Bank Ltd EUR 5.3 million (loss of EUR 11.7 million in 2022), AS LHV Varahaldus EUR 1.7 million (loss of EUR 103,000 in 2022) and AS LHV Kindlustus a total net profit of EUR 305,000 for 12 months (loss of EUR 1.7 million in 2022). LHV Group as a separate unit generated EUR 723,000 in profit in 2023.
Dividend proposal
The Management Board of LHV Group proposes that the Annual General Meeting distribute the profit for 2023 as follows:
- to pay a dividend of EUR 0.13 per share and EUR 41,578 thousand in total, the related income tax would amount to EUR 10,395 thousand;
- to transfer the profit for the reporting period attributable to the shareholders of the parent of EUR 98,858 thousand to retained earnings.
The list of shareholders entitled to dividends will be fixed as at the close of business of the Nasdaq CSD settlement system on 5 April 2024. Consequently, the day of change of the rights attaching to the shares (ex-dividend date) is set to 4 April 2024. From this day onwards, a person acquiring the shares will not have the right to receive dividends for the financial year 2023. Dividends will be paid to shareholders on 12 April 2024.
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 1,080 people. As at the end of January, LHV’s banking services are being used by 421,000 clients, the pension funds managed by LHV have 121,000 active clients, and LHV Kindlustus protects a total of 163,000 clients. LHV Bank, a subsidiary of the Group, holds a banking licence in the UK and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.
Priit Rum
Communication Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee
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