LHV Group — Earnings Release 2022

Aug 9, 2022

LHV Group

Growth in interest income and high quality loan portfolio

Financial results, EURt	13 months	Jul 22	YTD22	YTD21	FP YTD	Δ YTD FP
Total revenue, incl.		13,929	86,616	74,283	93,723	$-7,107$
Net interest income		9,951	62,924	52,229	62,485	$+438$
Net fee and commission income		3,563	24,914	21,875	30,481	$-5,567$
Total operating expenses		7,912	47,858	35,988	46,343	$+1,515$
Earnings before impairment		6,016	38,758	38,295	47,380	$-8,623$
Impairment losses on loans and bonds		$-147$	247	2,501	5,428	$-5,181$
Income tax expense		907	6,885	5,640	7,084	$-198$
Net income, incl.		5,256	31,625	30,154	34,869	$-3,243$
attr. to shareholders		5,094	30,516	29,115	33,717	$-3,201$
Business volumes, EURm	13 months	Jul 22	YTD22	YTD21	FP YTD	Δ YTD FP
Deposits from customers		5,312	5,312	4,938	5,797	$-484$
Loans (net)		2,964	2,964	2,448	2,899	$+66$
Assets under management		1,304	1,304	1,643	1,344	$-40$
Fin. intermediaries' payments, thous. pcs		2,006	15,043	15,379	19,315	$-4,272$
Key figures	13 months	Jul 22	YTD22	YTD21	FP YTD	Δ YTD FP
Cost / income ratio (C/I)		56.8%	55.3%	48.4%	49.4%	$+5.8$ pp
Net interest margin (NIM)		1.8%	1.7%	1.6%	1.6%	$+0.0$ pp
pre-tax ROE*		18.5%	18.2%	23.8%	19.8%	$-1.5$ pp
ROE*		15.8%	14.9%	20.1%	16.9%	$-1.9$ pp
ROA		0.9%	0.8%	0.9%	0.9%	$-0.1$ pp

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Customer activity modest during summer

Financial results, EURt	13 months	Jul 22	YTD22	YTD21	FP YTD	YTD FP Λ
Total revenue, incl.		12,484	79,738	68,088	86,429	$-6,691$
Net interest income		9,893	62,999	52,315	62,662	$+337$
Net fee and commission income		2,446	17,879	15,925	23,328	$-5,449$
Total operating expenses		5,204	35,218	26,686	34,889	$+329$
Earnings before impairment		7,280	44,521	41,402	51,541	$-7,020$
Impairment losses on loans and bonds		$-147$	247	2,501	5,428	$-5,181$
Income tax expense		866	5,927	5,387	6,388	-462
Net income		6,560	38,347	33,515	39,725	$-1,378$
Business volumes, EURm	13 months	Jul 22	YTD22	YTD21	FP YTD	Δ YTD FP
Deposits from customers		5,371	5,371	4,964	5,842	$-471$
Loans (net)		2,965	2,965	2,448	2,899	$+66$
Key figures	13 months	Jul 22	YTD22	YTD21	FP YTD	Δ YTD FP
Cost / income ratio (C/I)		41.7%	44.2%	39.2%	40.4%	$+3.8$ pp
Net interest margin (NIM)		1.8%	1.7%	1.6%	1.6%	$+0.0$ pp

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High monthly return for pension funds

Financial results, EURt	13 months	Jul 22	YTD22	YTD21	FP YTD	YTD FP Δ
Total revenue		662	4,620	5,414	4,648	$-28$
Total operating expenses		597	4,297	7,083	4,013	$+284$
EBIT		65	323	$-1,669$	635	$-312$
Net financial income		278	$-30$	362	311	$-342$
Income tax expense		O	830	1,241	830	$+0$
Net income		343	$-537$	$-2,548$	116	$-653$
Business volumes	13 months	Jul 22	YTD 22	YTD21	FP YTD	YTD FP Δ
Assets under management, EURm
		1,304	1,304	1,643	1,344	$-40$
Active customers of PII funds, thous.		132	132	174	130	$+1$
Key figures	13 months	Jul 22	YTD22	YTD21	FP YTD	Δ YTD FP
Cost / income ratio (C/I)		63.5%	93.6%	122.6%	80.9%	$+12.7$ pp

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Rapidly growing business volumes support improvement in efficiency

Financial results, EURt	13 months	Jul 22	YTD22	YTD21	FP YTD	Δ YTD FP
Total revenue, incl.		177	804	605	1,396	$-593$
Net earned premiums		709	3,619	830	3,608	$+12$
Net incurred losses		468	2,543	210	1,953	$+589$
Total expenses		212	1,573	1,055	1,713	$-140$
Technical result		$-35$	$-769$	$-450$	$-317$	$-452$
Net investments income		$-2$	-1	0	41	$-41$
Net income		$-38$	-772	$-449$	$-276$	$-496$
Business volumes	13 months	Jul 22	YTD22	YTD21	FP YTD	YTD FP
Gross written premium, EURt		1,486	7,845	4,209	6,782	$+1,063$
No of Customers (thous.)		149	149	132	na	na
Key figures	13 months	Jul 22	YTD 22	YTD21	FP YTD	Δ YTD FP
Net loss ratio		66.0%	70.3%	25.3%	54.1%	$+16.1$ pp
Net expense ratio		38.9%	51.0%	128.9%	54.6%	$-3.6$ pp

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee