LHV Group — Earnings Release 2023

Jun 13, 2023

LHV Group

A strong month from the banks in terms of growth and profitability

Financial results, EURt	13 months	May 23	YTD23	YTD22		FP YTD A YTD FP
Total net income, incl.		25,399	116,957	60,313	102,519	+14,438
Net interest income		21.793	97,056	43,919	81,800	+15,255
Net fee and commission income		3.934	19,773	17.727	20.491	-718
Total operating expenses		10,859	51,364	32,570	48,576	+2,788
Earnings before impairment		14.540	65,593	27,742	53,943	+11,650
Impairment losses		545	-1,543	443	9,841	-11,384
Income tax expense		1,916	9,955	5,044	7,887	+2,068
Net profit, incl.		12,080	57,181	22,255	36,215	+20,966
attr. to shareholders		11,936	56,480	21,489	35,638	+20,842
Business volumes, EURm	13 months	May 23	YTD23	YTD22	FP YTD	A YTD FP
Deposits from customers		5,044	5,044	5,360	5,461	-417
Loans (net)		3,259	3,259	2,843	3,197	+62
Assets under management		1,444	1,444	1,289	1,462	-18
Fin. intermediaries' payments, thous. pcs		3,855	16.477	10,946	12.002	+4.475
Key figures	13 months	May 23	YTD23	YTD22	FP YTD	A YTD FP
Cost / income ratio (C/I)		42.8%	43.9%	54.0%	47.4%	- 3.5 pp
Net interest margin (NIM)		4.2%	3.9%	1.6%	3.1%	+ 0.8 pp
pre-tax ROE*		35.8%	36.5%	19.4%	24.4%	+ 12.1 pp
ROE*		30.8%	31.0%	15.8%	20.0%	+ 11.0 pp
ROA		2.3%	2.2%	0.8%	1.4%	+ 0.9 pp

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A month with a strong growth

Financial results, EURt	13 months	May 23	YTD23	YTD22		FP YTD A YTD FP
Total net income, incl.		21,194	101,426	55,754	91,223	+10,203
Net interest income		19,438	90,327	44,036	79,027	+11,300
Net fee and commission income		2,007	10,988	12,977	12.140	-1,152
Total operating expenses		6,925	33,650	24,639	32,154	+1,496
Earnings before impairment		14,268	67,776	31,115	59,069	+8,707
Impairment losses		358	-1,742	443	9.667	-11,409
Income tax expense		1,823	8,688	4,167	6,391	+2,296
Net profit		12,087	60,830	26,505	43,011	+17,819
Business volumes, EURm	13 months	May 23	YTD23	YTD22	FP YTD	A YTD FP
Deposits from customers		5,123	5,123	5,384	5,448	-324
incl. banking services' deposits		1,137	1,137	1,692	1,567	-429
Loans (net)		3,269	3,269	2,843	3,213	+56
Key figures	13 months	May 23	YTD23	YTD22	FP YTD	A YTD FP
Cost / income ratio (C/I)		32.7%	33.2%	44.2%	35.2%	2.1 pp

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Market lead by biggest tech companies, in other sectors more complicated

Financial results, EURt	13 months	May 23	YTD23	YTD22		FP YTD A YTD FP
Total net income		748	3,607	3,317	3,573	+33
Total operating expenses		525	2,939	3,118	2,906	+33
EBIT		224	668	199	668	+0
Net financial income		-24	92	-50	249	-156
Income tax expense		0	488	830	488	-0
Net profit		200	272	-681	428	-156
Business volumes	13 months	May 23	YTD23	YTD22	FP YTD	A YTD FP
Assets under management, EURm		1,444	1,444	1,289	1,462	-18
Active customers of PII funds, thous.		129	129	130	131	-2
Key figures	13 months	May 23	YTD23	YTD22	FP YTD	A YTD FP
Cost / income ratio (C/I)		72.4%	79.5%	95.4%	76.0%	+ 3.4 pp

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Growth of insurance portfolio continued

uuenda

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Loan portfolio growth will start to presume active raise of deposits

Financial results, EURt	13 months	May 23	YTD23	YTD22		FP YTD A YTD FP
Total net income, incl.		2,952	9,722	-52	6,599	+3,123
Net interest income		2,548	7,666	-51	658	+7,008
Net fee and commission income		438	2,108	0	5.941	-3,833
Other net income		-35	-52	-2	O	-52
Total operating expenses		2,686	11,213	2,851	10,170	+1,043
Earnings before impairment		266	-1,491	-2,903	-3,571	+2,080
Impairment losses		6	19	0	174	-156
Net profit		259	-1,510	-2,903	-3,746	+2,236
Business volumes, EURm	13 months	May 23	YTD23	YTD22		FP YTD
Loans (net)		29	29	O	32	-3

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee