LHV Group — Earnings Release 2022

Jun 14, 2022

LHV Group

Successful share issue

Financial results, EURt	13 months	May 22	YTD22	YTD21		FP YTD Δ YTD FP
Total revenue, incl.		13,290	60.313	50,079	66,129	-5,816
Net interest income		9.164	43.919	35.193	44.102	-184
Net fee and commission income		3,976	17,727	14,951	21,499	-3,772
Total operating expenses		7,248	32,570	23,679	32,178	+392
Earnings before impairment		6,042	27,742	26,400	33,950	-6,208
Impairment losses on loans		65	443	2,249	3,860	-3,417
Income tax expense		1,277	5,044	3,602	5,156	-111
Net income, incl.		4,700	22,255	20,548	24,934	-2,679
attr. to shareholders		4,521	21,489	19,895	24,150	-2,660
Business volumes, EURm	13 months	May 22	YTD22	YTD21	FP YTD	A YTD FP
Deposits from customers		5,360	5,360	5,187	5.672	-312
Loans (net)		2,843	2,843	2,356	2,818	+25
Assets under management		1,289	1,289	1,617	1,316	-27
Fin. intermediaries' payments, thous. pcs		2,259	10,946	11,434	13,075	-2,129
Key figures	13 months	May 22	YTD22	YTD21	FP YTD	A YTD FP
Cost / income ratio (C/I)		54.5%	54.0%	47.3%	48.7%	+ 5.3 pp
Net interest margin (NIM)		1.7%	1.6%	1.5%	1.6%	+ 0.0 pp
pre-tax ROE*		20.2%	19.4%	23.0%	21.0%	- 1.6 pp
ROE*		15.9%	15.8%	19.6%	17.9%	- 2.1 pp
ROA		0.9%	0.8%	0.9%	0.9%	- 0.1 pp

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Strong growth in business volumes

Financial results, EURt	13 months	May 22	YTD22	YTD21		FP YTD
Total revenue, incl.		12,230	55,756	46,320	61,043	-5,286
Net interest income		9,216	44,036	35,835	44.247	-211
Net fee and commission income		2,793	12,977	10,765	16.482	-3,505
Total operating expenses		5,619	24,641	19,602	24,284	+358
Earnings before impairment		6,611	31,115	26,718	36,759	-5,644
Impairment losses on loans		65	443	2,249	3,860	-3,417
Income tax expense		973	4,167	3,419	4,542	-375
Net income		5.573	26,505	21,050	28,357	-1,852
Business volumes, EURm	13 months	May 22	YTD22	YTD21		FP YTD
Deposits from customers		5,384	5,384	5,211	5,696	-312
Loans (net)		2,843	2,843	2,356	2,818	+25
Key figures	13 months	May 22	YTD22	YTD21		FP YTD A YTD FP
Cost / income ratio (C/I)		45.9%	44.2%	42.3%	39.8%	+ 4.4 pp
Net interest margin (NIM)		1.7%	1.6%	1.6%	1.6%	+ 0.0 pp

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Pace of exiting II pillar has significantly slowed down in the past months

Financial results, EURt	13 months	May 22	YTD22	YTD21		FP YTD △ YTD FP
Total revenue		668	3,317	3,852	3,305	+12
Total operating expenses		577	3,118	2,837	2,869	+249
EBIT		91	199	1,015	437	-238
Net financial income		-62	-50	236	221	-271
Income tax expense		0	830	1,241	830	+0
Net income		29	-681	10	-172	-508
Business volumes	13 months	May 22	YTD22	YTD21	FP YTD	A YTD FP
Assets under management, EURm		1,289	1,289	1,617	1,316	-27
Active customers of PII funds, thous.		130	130	174	130	+1
Key figures	13 months	May 22	YTD22	YTD21	FP YTD	A YTD FP
Cost / income ratio (C/I)		95.2%	95.4%	69.4%	81.3%	+ 14.1 pp

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Rapidly growing business volumes, first-time positive financial result

Financial results, EURt	13 months	May 22	YTD22	YTD21		FP YTD Δ YTD FP
Total revenue, incl.		235	422	378	920	-498
Net earned premiums		563	2,318	432	2,286	+31
Net incurred losses		285	1,726	50	1,200	+526
Total expenses		227	1,105	712	1,221	-116
Technical result		8	-683	-334	-301	-383
Net investments income		-2	10	0	17	-8
Net income		6	-674	-334	-284	-390
Business volumes	13 months	May 22	YTD22	YTD21		FP YTD △ YTD FP
Gross written premium, EURt		1,237	4,910	3,197	4,903	+1
No of Customers (thous.)		148	148	127	na	na
Key figures	13 months	May 22	YTD22	YTD21		FP YTD
Net loss ratio		50.6%	74.5%	11.7%	52.5%	+ 22.0 pp
Net expense ratio		48.0%	55.0%	165.5%	60.7%	5.7 pp

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee