LHV Group — Earnings Release 2023

May 16, 2023

LHV Group

A month with good results

Financial results, EURt	13 months	Apr 23	YTD23	YTD22		FP YTD A YTD FP
Total net income, incl.		23,175	91,558	47,023	79,832	+11,726
Net interest income		20.154	75,262	34.755	63.618	+11,644
Net fee and commission income		3.957	15,800	13.751	16.033	-233
Total operating expenses		9,883	40,505	25,322	38,850	+1,655
Earnings before impairment		13,292	51,053	21,701	40,981	+10,072
Impairment losses		-504	-2,087	378	7,495	-9,583
Income tax expense		1,758	8,038	3,768	6,328	+1,711
Net profit, incl.		12.038	45,101	17,556	27.158	+17,943
attr. to shareholders		11,891	44,544	16,968	26,686	+17,858
Business volumes, EURm	13 months	Apr 23	YTD23	YTD22	FP YTD	A YTD FP
Deposits from customers		4,796	4,796	5,284	5,331	-534
Loans (net)		3,167	3,167	2,801	3.168	-0
Assets under management		1,458	1.458	1,364	1,461	-3
Fin. intermediaries' payments, thous. pcs		3,499	12,622	8,687	9,350	+3,273
Key figures	13 months	Apr 23	YTD23	YTD22	FP YTD	A YTD FP
Cost / income ratio (C/I)		42.6%	44.2%	53.9%	48.7%	- 4.4 pp
Net interest margin (NIM)		4.1%	3.8%	1.6%	3.0%	+ 0.7 pp
pre-tax ROE*		37.0%	36.7%	19.1%	23.5%	+ 13.2 pp
ROE*		32.3%	31.0%	15.7%	18.9%	+ 12.1 pp
ROA		2.4%	2.2%	0.8%	1.3%	+ 1.0 pp

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2

Quality of loan portfolio is strong

Financial results, EURt	13 months	Apr 23	YTD23	YTD22		FP YTD A YTD FP
Total net income, incl.		18,572	80,232	43,524	71,775	+8,458
Net interest income		17,989	70,889	34,820	61,957	+8,932
Net fee and commission income		1,433	8,981	10,184	9,774	-793
Total operating expenses		5,938	26,725	19,020	25,905	+820
Earnings before impairment		12,634	53,508	24,504	45,870	+7,638
Impairment losses		-508	-2,100	378	7,379	-9,479
Income tax expense		1,717	6,865	3,194	4,873	+1,992
Net profit		11,425	48,743	20,931	33,617	+15,125
Business volumes, EURm	13 months	Apr 23	YTD23	YTD22	FP YTD	A YTD FP
Deposits from customers		4,848	4,848	5,304	5,369	-521
incl. regular customers' deposits		3,795	3,795	3,618	3,836	-4-1
Loans (net)		3,157	3,157	2,801	3,188	-30
Key figures	13 months	Apr 23	YTD23	YTD22	FP YTD	A YTD FP
Cost / income ratio (C/I)		32.0%	33.3%	43.7%	36.1%	- 2.8 pp

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Modest month on the markets, larger funds with small positive yield

Financial results, EURt	13 months	Apr 23	YTD23	YTD22		FP YTD A YTD FP
Total net income		733	2,858	2,649	2,824	+34
Total operating expenses		693	2,415	2,541	2,341	+74
EBIT		40	444	108	483	-40
Net financial income		-55	117	13	198	-82
Income tax expense		0	488	830	488	-0
Net profit		-15	72	-710	193	-121
Business volumes	13 months	Apr 23	YTD23	YTD22	FP YTD	A YTD FP
Assets under management, EURm		1,458	1,458	1,364	1,461	-3
Active customers of PII funds, thous.		131	131	135	132	-2
Key figures	13 months	Apr 23	YTD23	YTD22	FP YTD	A YTD FP
Cost / income ratio (C/I)		102.2%	81.2%	95.5%	77.4%	+ 3.7 pp

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First profitable month

uuenda

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Banking licence received

Financial results, EURt	13 months	Apr 23	YTD23	YTD22		FP YTD A YTD FP
Total net income, incl.		3,308	6,770	-2	4,486	+2,285
Net interest income		2,354	5.117	0	541	+4,577
Net fee and commission income		970	1,6669	0	3,945	-2,276
Other net income		-16	-17	-2	0	-11
Total operating expenses		2,562	8,527	2,306	7,938	+589
Earnings before impairment		747	-1,757	-2,308	-3,452	+1,695
Impairment losses		4	12	0	116	-104
Net profit		743	-1,769	-2,308	-3,568	+1,799
Business volumes, EURm	13 months	Apr 23	YTD23	YTD22		FP YTD A YTD FP
Loans (net)		23	23	O	28	-5

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee