LHV Group results for August 2024
In August, LHV’s lending continued at a faster than planned pace, which had a positive impact on the company’s profit number. The consolidated loan portfolio of AS LHV Group increased by EUR 87 million over the month. Deposits increased by EUR 254 million on a consolidated basis. The volume of the funds managed by LHV grew by EUR 4 million in August. Payments related to financial intermediaries amounted to 6.1 million per month.
In August, the consolidated net profit of AS LHV Group was EUR 12.2 million. Among the subsidiaries, AS LHV Pank earned EUR 11.8 million, LHV Bank Ltd EUR 13 thousand, AS LHV Varahaldus EUR 240 thousand, and AS LHV Kindlustus EUR 129 thousand in net profit over the month.
The number of the LHV Pank clients increased by 3,600. Strong results were driven by client activity and good home loan lending performance. Of the increase of EUR 50 million in the loan portfolio, retail loans accounted for EUR 36 million and corporate loans for EUR 14 million. In August, the deposits of retail clients increased by EUR 40 million, the deposits of financial intermediaries by EUR 93 million, and the volume of deposits raised through platforms also increased by EUR 35 million. Write-downs remained lower than planned due to the constant credit quality.
In August, LHV Pank entered into an agreement for the partial acquisition of the loan portfolio of TBB Pank worth approximately EUR 36 million. The transaction is expected to be completed by the end of Q3. In August, LHV Pank started accepting student loan applications again.
For LHV Bank, which operates in the United Kingdom, August was the month with the fastest loan portfolio and growth in the volume of deposits to date. The loan portfolio grew by EUR 37 million and the deposits increased by EUR 85 million. At the same time, business volumes are still at a lower level than the financial plan, and therefore interest income is also behind schedule. The active development of LHV Bank’s retail banking offering is underway, which has increased costs. The mobile app is scheduled to be opened to staff for testing as early as October.
Due to the volatility on the markets, the volume of funds managed by LHV Varahaldus remained essentially at the same level as last month, increasing by EUR 4 million. The net profit of Varahaldus corresponds to the financial plan; however, the volume of funds is below the plan. The acceptance of applications for increasing the amount of second pillar payments is continuing, with 7,300 clients having submitted applications by the end of August.
LHV Kindlustus is continuing at a steady and slightly faster than planned pace. In August, 15,600 new insurance contracts were concluded in the amount of EUR 2.2 million. The number of policies increased to 244,000. Loss events were compensated for in the amount of EUR 1.8 million. The number of loss events remained stable.
By the end of August, LHV Group outperformed the financial plan in terms of net profit by EUR 20.2 million. The financial plan remains unchanged.
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. The key subsidiaries of LHV Group are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1,100 people. As at the end of August, LHV’s banking services are being used by 441,000 clients, the pension funds managed by LHV have 118,000 active clients, and LHV Kindlustus protects a total of 168,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking license 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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