LHV Group — Earnings Release 2022

Dec 13, 2022

LHV Group

Successful emission of additional own funds

Financial results, EURt	13 months	Nov 22	YTD22	YTD21		FP YTD A YTD FP
Total revenue, incl.		19,340	153,672	122,548	150,928	+2,744
Net interest income		14.698	113.016	86.400	100.556	+12.461
Net fee and commission income		4,016	40,989	36,610	49.119	-8,131
Total operating expenses		9,436	80,739	59,032	76,246	+4.493
Earnings before impairment		9,904	72,933	63,516	74,682	-1,749
Impairment losses		180	8,594	2,362	8.466	+128
Income tax expense		1,650	12,227	9,576	11,047	+1,180
Net profit, incl.		8,075	52,112	51,578	55,169	-3,057
attr. to shareholders		8,168	50,640	49,742	53,166	-2,526
Business volumes, EURm	13 months	Nov 22	YTD22	YTD21	FP YTD	A YTD FP
Deposits from customers		4,900	4,900	6,003	6,047	-1.147
Loans (net)		3,200	3,200	2,621	3.057	+143
Assets under management		1,335	1,335	1,334	1,375	-40
Fin. intermediaries' payments, thous. pcs		2,583	23,271	25,140	33,602	-10,330
Key figures	13 months	Nov 22	YTD22	YTD21	FP YTD	A YTD FP
Cost / income ratio (C/I)		48.8%	52.5%	48.2%	50.5%	+ 2.0 pp
Net interest margin (NIM)		3.0%	1.9%	1.6%	1.6%	+ 0.3 pp
pre-tax ROE*		29.7%	18.9%	23.6%	19.1%	- 0.2 pp
ROE*		24.8%	15.3%	19.9%	16.4%	- 1.1 pp
ROA		1.6%	0.9%	0.9%	0.9%	+ 0.0 pp

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Net profit exceeding the financial plan

Financial results, EURt	13 months	Nov 22	YTD22	YTD21		FP YTD A YTD FP
Total revenue, incl.		18,119	142,443	113,253	139,204	+3,239
Net interest income		14,816	113,217	86,694	100,965	+12,252
Net fee and commission income		2,879	29,489	27,593	37,549	-8,060
Total operating expenses		6,359	58,780	44,509	57,171	+1,609
Earnings before impairment		11,759	83,663	68,743	82,033	+1,630
Allowance for credit losses		180	3,291	2,362	8,466	-5,174
Income tax expense		1,609	11,106	9,182	10,190	+917
Net profit		9,971	69,266	57,199	63,378	+5,888
Business volumes, EURm	13 months	Nov 22	YTD22	YTD21		FP YTD
Deposits from customers		4,958	4,958	6,047	6.094	-1,136
Loans (net)		3,180	3,180	2,621	3.057	+123
Key figures	13 months	Nov 22	YTD22	YTD21		FP YTD A YTD FP
Cost / income ratio (C/I)		35.1%	41.3%	39.3%	41.1%	+ 0.2 pp
Net interest margin (NIM)		3.0%	1.9%	1.6%	1.6%	+ 0.3 pp

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Pension funds M, L and XL are the only ones with positive return this year

Financial results, EURt	13 months	Nov 22	YTD22	YTD21	FP YTD	A YTD FP
Total revenue		661	7,262	8,108	7,379	-117
Total operating expenses		611	6,657	9,503	6,316	+341
EBIT		50	605	-1,395	1,063	-458
Net financial income		209	22	620	495	-473
Income tax expense		0	830	1,241	830	+0
Net profit		259	-204	-2,017	727	-931
Business volumes	13 months	Nov 22	YTD22	YTD21	FP YTD	A YTD FP
Assets under management, EURm		1,335	1,335	1,334	1,375	-40
Active customers of PII funds, thous.		131	131	138	130	+1
Key figures	13 months	Nov 22	YTD22	YTD21	FP YTD	A YTD FP
Cost / income ratio (C/I)		70.2%	91.4%	108.9%	80.2%	+ 11.2 pp
Funds average return

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Growth in net earned premiums continues

uuenda

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee