LHV Group results in July 2021
In July, AS LHV Group earned EUR 5.8 million in consolidated net profit. LHV Pank earned EUR 5.2 million in net profit, including EUR 1.1 million from serving clients associated with the United Kingdom branch, and EUR 0.3 million from LHV Varahaldus. LHV Kindlustus earned a net profit of EUR 62,000 in July. LHV Group will reveal the updated financial plan for the current year on 17 August.
The Group’s consolidated volume of deposits grew in July by EUR 17 million, with its loan portfolio growing by EUR 47 million and the fund volume growing by EUR 23 million. In July, the bank’s clients in the form of financial intermediaries made a total of 1.8 million payments.
The activity of the bank’s clients remained high in July. The bank added 4000 clients, with the number of clients who use settlements growing by 1800. The number of LHV Youth Bank clients exceeded the 50,000 threshold in July, while the number of entrepreneur account clients exceeded 5000.
EUR 27 million of the loan portfolio growth was due to loans issued to businesses and EUR 20 million from private loans. Credit quality remains good. At the same time, deposits by financial intermediaries decreased by EUR 102 million during the month and deposits from platforms by EUR 8 million, while deposits by regular clients increased by EUR 127 million.
The most important events during July included Euromoney once again declaring LHV Pank the best bank in Estonia, the bank transferring its provision of investment services to the new foreign broker Citigroup Global Markets Europe AG, and lowering the age limit for bank cards from seven to six.
The volume of funds led by Varahaldus grew in July, mainly due to their rates of return. In July, the rates of return for the biggest funds, L and XL, were 1.4% and 1.2%, respectively. In September, the volume of pension funds will decrease by slightly less than one-fifth due to exits from the pillar.
In connection with goals to strengthen the Group’s capital structure and ensure stable access to additional capital, in order to support the continuing growth of the company internationally and in Estonia, and to ensure a conservative capital buffer for the Group’s companies, LHV is planning a new public offering of shares. The plan is to issue 905,000 new shares in September, and in doing so to raise EUR 25 million. A decision on the organisation of the offering of shares is planned for the extraordinary general meeting of shareholders, set for 23 August. Additional information: https://investor.lhv.ee/en/general-meetings/.
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 620 people. LHV’s banking services are used by 290,000 clients, the pension funds managed by LHV have 174,000 active clients, and LHV Kindlustus protects a total of 132,000 clients. LHV’s UK branch offers banking infrastructure to 160 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
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