LHV Group — Earnings Release 2023

Aug 15, 2023

LHV Group

All companies profitable

Financial results, EURt	13 months	Jul 23	YTD23	YTD22		FP YTD A YTD FP
Total net income, incl.		26,587	169,872	86,616	150,862	+19,010
Net interest income		22,397	140.405	62,924	121,311	+19,094
Net fee and commission income		4,321	28,550	24,914	29.220	-670
Total operating expenses		9,885	73,547	47,858	67,889	+5,658
Earnings before impairment		16,702	96,325	38,758	82,973	+13,351
Impairment losses		1,336	562	247	14,169	-13,607
Income tax expense		1,846	13,549	6,885	11,353	+2,196
Net profit, incl.		13.519	82,213	31,625	57.451	+24,762
attr. to shareholders		13,312	81,318	30,516	56,647	+24.671
Business volumes, EURm	13 months	Jul 23	YTD23	YTD22	FP YTD	A YTD FP
Deposits from customers		5,193	5.193	5,312	5,317	-124
Loans (net)		3,281	3,281	2,964	3,254	+28
Assets under management		1,496	1,496	1,304	1.499	-3
Fin. intermediaries' payments, thous. pcs		4,050	24,376	15,043	17,683	+6,693
Key figures	13 months	Jul 23	YTD23	YTD22	FP YTD	A YTD FP
Cost / income ratio (C/I)		37.2%	43.3%	55.3%	45.0%	- 1.7 pp
Net interest margin (NIM)		4.2%	3.9%	1.6%	3.3%	+ 0.6 pp
pre-tax ROE*		37.0%	36.1%	18.2%	26.6%	+ 9.5 pp
ROE*		32.6%	30.9%	14.9%	22.2%	+ 8.8 pp

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For a July a month with a high level of activity

Financial results, EURt	13 months	Jul 23	YTD23	YTD22	FP YTD	A YTD FP
Total net income, incl.		21,087	144,127	79,736	131,610	+12,518
Net interest income		19,508	128,502	62,999	115,060	+13,442
Net fee and commission income		1,816	14,875	17,879	16,471	-1,596
Total operating expenses		6,097	47,966	35,216	44,060	+3,906
Earnings before impairment		14,990	96,161	44,521	87,549	+8,612
Impairment losses		1,321	332	247	13,878	-13,547
Income tax expense		1,806	12,200	5,927	9,776	+2,424
Net profit		11,864	83,629	38,347	63,895	+19,734
Business volumes, EURm	13 months	Jul 23	YTD23	YTD22	FP YTD	A YTD FP
Deposits from customers		5,269	5,269	5,371	4,969	+300
incl. banking services' deposits		1,040	1,040	1,646	1,000	+40
Loans (net)		3,302	3,302	2,965	3,232	+70
Key figures	13 months	Jul 23	YTD23	YTD22	FP YTD	A YTD FP
Cost / income ratio (C/I)		28.9%	33.3%	44.2%	33.5%	- 0.2 pp
Net interest margin (NIM)		3.7%	3.5%	1.6%	3.2%	+ 0.3 pp

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A month with strong results, all funds with positive yield

Financial results, EURt	13 months	Jul 23	YTD23	YTD22		FP YTD A YTD FP
Total net income		763	5,099	4,620	5,063	+37
Total operating expenses		485	4,005	4,297	4,018	-14
EBIT		278	1,095	323	1,044	+50
Net financial income		123	302	-30	350	-48
Income tax expense		0	488	830	488	-0
Net profit		401	909	-537	906	+3
Business volumes	13 months	Jul 23	YTD23	YTD22	FP YTD	A YTD FP
Assets under management, EURm		1,496	1,496	1,304	1,499	-3
Active customers of PII funds, thous.		127	127	132	133	-6
Key figures	13 months	Jul 23	YTD23	YTD22	FP YTD	A YTD FP
Cost / income ratio (C/I)		54.7%	74.1%	93.6%	74.2%	- 0.1 pp

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Growth of insurance portfolio continued

uuenda

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Monthly growth of the loan portfolio 16 EURm

Financial results, EURt	13 months	Jul 23	YTD23	YTD22		FP YTD A YTD FP
Total net income, incl.		4,093	17,116	-75	12,145	+4,971
Net interest income		3,252	13,434	-14	2,144	+11,290
Net fee and commission income		817	3,725	0	10,001	-6,276
Other net income		24	-43	-2	0	-43
Total operating expenses		2,691	16,612	4,540	15,053	+1,559
Earnings before impairment		1,403	503	-4,615	-2,908	+3,411
Impairment losses		15	50	0	291	-241
Net profit		1,387	453	-4,615	-3,199	+3,652
Business volumes, EURm	13 months	Jul 23	YTD23	YTD22		FP YTD Δ YTD FP
Loans (net)		47	47	0	40	+1
Key figures	13 months	Jul 23	YTD23	YTD22		FP YTD A YTD FP
Cost / income ratio (C/I)		65.7%	97.1%	-6013.8%	123.9%	26.9 pp

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee