LHV Group — Earnings Release 2023

Sep 12, 2023

LHV Group

Profitability in line with the updated higher financial plan

Financial results, EURt	13 months	Aug 23	YTD23	YTD22		FP YTD A YTD FP
Total net income, incl.		27,103	196.976	100,922	196,010	+965
Net interest income		22,766	163,171	73,538	162,007	+1,164
Net fee and commission income		3,987	32,537	28,487	32,739	-202
Total operating expenses		11,845	85,392	54,530	85,229	+163
Earnings before impairment		15,259	111.583	46,392	110,781	+802
Impairment losses		607	1,169	3,362	2,061	-892
Income tax expense		2,453	16,002	8,128	15,394	+608
Net profit, incl.		12.199	94,412	34,902	93,326	+1,086
attr. to shareholders		12,048	93,366	33,603	92,505	+862
Business volumes, EURm	13 months	Aug 23	YTD23	YTD22	FP YTD	A YTD FP
Deposits from customers		5,345	5,345	5,189	5,243	+102
Loans (net)		3,324	3,324	3,017	3.343	-19
Assets under management		1,501	1,501	1,308	1,514	-13
Fin. intermediaries' payments, thous. pcs		4,548	28,924	16,970	27,232	+1,692
Key figures	13 months	Aug 23	YTD23	YTD22	FP YTD	A YTD FP
Cost / income ratio (C/I)		43.7%	43.4%	54.0%	43.5%	- 0.1 pp
Net interest margin (NIM)		4.1%	3.9%	1.7%	3.9%	- 0.0 pp
pre-tax ROE*		34.5%	35.9%	17.7%	35.5%	+ 0.4 pp
ROE*		28.7%	30.7%	14.3%	30.4%	+ 0.2 pp

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A month with a good loan sales

Financial results, EURt	13 months	Aug 23	YTD23	YTD22		FP YTD A YTD FP
Total net income, incl.		22,408	166,536	92,994	164,593	+1,943
Net interest income		20,328	148,831	73,629	146,463	+2,367
Net fee and commission income		1,571	16,446	20,379	17,156	-/10
Total operating expenses		7,281	55,248	40,579	55,527	-279
Earnings before impairment		15,127	111,288	52,414	109,066	+2,222
Impairment losses		523	855	362	1,570	-715
Income tax expense		2,412	14,612	7,129	13,948	+664
Net profit		12,192	95,821	44,924	93,549	+2,273
Business volumes, EURm	13 months	Aug 23	YTD23	YTD22	FP YTD	A YTD FP
Deposits from customers		5,243	5,243	5,246	5,090	+153
incl. banking services' deposits		971	971	1,416	897	+75
Loans (net)		3,412	3,412	3,018	3,348	+64
Key figures	13 months	Aug 23	YTD23	YTD22	FP YTD	A YTD FP
Cost / income ratio (C/I)		32.5%	33.2%	43.6%	33.7%	- 0.6 pp
Net interest margin (NIM)		3.7%	3.6%	1.7%	3.6%	- 0.0 pp

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Assets under management crossed 1.5 EURb

Financial results, EURt	13 months	Aug 23	YTD23	YTD22		FP YTD A YTD FP
Total net income		768	5,867	5,297	5,868	-0
Total operating expenses		582	4,587	4,863	4,660	-73
EBIT		186	1,281	434	1,208	+73
Net financial income		-98	204	-45	356	-152
Income tax expense		0	488	830	488	+0
Net profit		88	996	-441	1,075	-79
Business volumes	13 months	Aug 23	YTD23	YTD22	FP YTD	A YTD FP
Assets under management, EURm		1,501	1,501	1,308	1,514	-13
Active customers of PII funds, thous.		127	127	132	127	+0
Key figures	13 months	Aug 23	YTD23	YTD22		FP YTD A YTD FP
Cost / income ratio (C/I)		86.9%	75.5%	92.6%	74.1%	+ 1.4 pp

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Key indicators have reached a stable level

uuenda

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Business activities transferred from branch to LHV Bank

Financial results, EURt	13 months	Aug 23	YTD23	YTD22		FP YTD A YTD FP
Total net income, incl.		3,361	20,477	-83	19,519	+958
Net interest income		2,678	16,112	-86	15,683	+429
Net fee and commission income		699	4,424	0	3,903	+521
Other net income		-16	-59	3	-67	+8
Total operating expenses		3,203	19,815	5,437	19,176	+639
Earnings before impairment		159	662	-5,520	343	+319
Impairment losses		84	134	0	311	-177
Net profit		74	528	-5,520	32	+496
Business volumes, EURm	13 months	Aug 23	YTD23	YTD22		FP YTD A YTD FP
Deposits from customers		145	145	0	197	-51
Loans (net)		55	55	0	14	-19
Key figures	13 months	Aug 23	YTD23	YTD22		FP YTD A YTD FP
Cost / income ratio (C/I)		95.3%	96.8%	na	98.2%	1.5 pp
Net interest margin (NIM)		14.2%	12.8%	-0.6%	13.1%	0.3 pp

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee