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LHV Group Earnings Release 2023

Apr 18, 2023

2219_ip_2023-04-18_816f1adc-7c8d-45dc-9d7c-5439997f642b.pdf

Earnings Release

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LHV Group

Highest capitalisation in history together with interest income growth

Interest income growth and strong capitalisation

Financial results, EURt	9 quarters	$Q1 - 23$	Q4-22	$\Delta$ quarter
Net interest income	.	55,108	44,098	$+11,010$
Net fee and commission income	an Luther	11,877	11,549	$+328$
Other income	---- _- -----	1,398	910	$+488$
Total net income	an an am Bh	68,383	56,557	$+11,826$
Total operating expenses	an mul	30,622	26,881	$+3,741$
Earnings before impairment	an tha a th	37,761	29,676	$+8,085$
Impairment losses	______ I __	$-1,583$	250	$-1,833$
Income tax expense	المحدد	6,281	5,112	$+1,169$
Net profit	an tha an El	33,063	24,315	$+8,748$
Business volumes, EURm	9 quarters	$Q1 - 23$	Q4-22	$\Delta$ quarter
Deposits from customers	n Mu	4,867	4,901	$-34$
Loans portfolio (net)	.	3,149	3,209	$-59$
Assets under management	1 H H H	1,451	1,332	$+119$
Customers, thous.	.	568	556	$+12$
Fin. intermediaries' payments, thous. pcs	i i bin e l	9,124	7,293	$+1,830$
Key figures	9 quarters	$Q1 - 23$	Q4-22	$\Delta$ quarter
Cost / income ratio (C/I)	n in Linn	44.8%	47.5%	$-2.7$ pp
pre-tax ROE*	a Harall	36.3%	29.1%	$+7.3$ pp
ROE*	u Husil	30.4%	24.0%	$+6.3$ pp

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Profitability better than planned

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Activity of customers is on good level

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Strongest quarter in LHV Pank's history

Financial results, EURt	9 quarters	$Q1 - 23$	Q4-22	$\Delta$ quarter
Net interest income	--------	52,900	44,388	$+8,512$
Net fee and commission income	an India	7,548	8,259	$-711$
Other income	⋍⋍⋍∎µ⋍⋍ ^≡∎	1,212	791	$+421$
Total net income	an na T	61,660	53,438	$+8,222$
Total operating expenses	u u u U	20,786	18,101	$+2,686$
Earnings before impairment	an martil	40,874	35,337	$+5,536$
Impairment losses	وماليمانية	$-1,592$	430	$-2,022$
Income tax expense	السمين	5,147	4,990	$+158$
Net profit	an martil	37,318	29,918	$+7,401$
Business volumes, EURm	9 quarters	$Q1 - 23$	Q4-22	$\Delta$ quarter
Deposits from customers	.	4,919	4,957	$-38$
Loans (net)	.	3,127	3,187	$-60$
Customers, thous.	.	391	378	$+13$
Key figures	9 quarters	$Q1 - 23$	Q4-22	$\Delta$ quarter
Cost / income ratio (C/I)	lini Lin	33.7%	33.9%	$-0.2$ pp
pre-tax ROE*	al II an III	42.1%	37.5%	$+4.6$ pp
ROE*	al II an II	36.8%	32.2%	$+4.6$ pp
Net interest margin (NIM)	an an Alb	3.5%	2.9%	$+0.6$ pp

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Revenues higher than planned

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Quarterly growth of assets under management 119 EURm

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3 EURm dividends paid to LHV Group in March

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Revenues, expenses and profit slightly ahead of the plan

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Growing volumes are supporting efficiency improvement

Financial results, EURt	9 quarters	$Q1 - 23$	Q4-22	$\Delta$ quarter
Total net income	an a bhf	552	397	$+155$
Total expenses	.	1,031	922	$+109$
Technical result	79 H	$-479$	$-526$	$+46$
Net investments income		32		$+30$
Other operating income and expenses		$-3$	-3	$+0$
Net profit	٠ w	$-450$	$-527$	$+77$
Business volumes, EURt	9 quarters	I kv-23	IV $kv-22$	$\Delta$ kvartal
Gross written premiums		7,712	6,029	$+1,683$
No of Customers (thous.)		155	150	$+6$
Key figures	9 quarters	I kv-23	IV kv-22	$\Delta$ kvartal
Net loss ratio		78.0%	78.0%	$-0.0$ pp
Net expense ratio		33.4%	38.8%	$-5.4$ pp
pre-tax ROE		$-38.0%$	$-39.5%$	$+1.5$ pp
ROE		$-38.0\%$	$-39.5%$	$+1.5$ pp

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Negative impact of large fire case to monthly result

Financial results, EURt	13 months	Mar 23	YTD ₂₃	YTD22	FP YTD	A YTD FP
Total net income, incl.		28	552	142	739	$-187$
Net earned premiums		1,651	4,499	1,263	4,030	$+469$
Net incurred losses		1,455	3,509	1,030	2,850	$+659$
Other net income		168	438	91	441	-3
Total expenses		346	1,031	642	976	$+55$
Technical result		$-317$	$-479$	$-500$	$-237$	$-242$
Net investment income		32	32		9	$+23$
Other operating income and expenses		2	3	0	0	$+3$
Net profit		$-287$	$-450$	$-499$	$-228$	$-222$
Business volumes, EURt	13 months	Mar 23	YTD ₂₃	YTD22	FP YTD	Δ YTD FP
Gross written premiums		2,120	7,712	1,748	5,825	$+1,886$
No of customers (thous.)		155	155	147	na	na
Key figures	13 months	Mar 23	YTD ₂₃	YTD22	FP YTD	Δ YTD FP
Net loss ratio		88.1%	78.0%	81.6%	70.7%	$+7.3$ pp
Net expense ratio		31.5%	33.4%	58.0%	35.2%	$-1.8$ pp

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Started sharing banking services' revenues and expenses with LHV Pank

Financial results, EURt	9 quarters	$Q1 - 23$	Q4-22	$\Delta$ quarter
Total net income, incl.		3,462	162	$+3,300$
Net interest income		2,763	157	$+2,607$
Net fee and commission income		699	0	$+699$
Other net income	واللورواء	-1	5	-6
Total operating expenses	_	5,965	5,266	$+699$
Earnings before impairment		$-2,503$	$-5,104$	$+2,601$
Impairment losses		8	O	$+9$
Net profit		$-2,512$	$-5,104$	$+2,592$
Business volumes, EURm		$Q1 - 23$	Q4-22	$\Delta$ quarter
Loans (net)		23	22	$+1$

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Profit exceeds the financial plan due to higher interest income

Financial results, EURt	13 months	Mar 23	YTD ₂₃	YTD22	FP YTD	YTD FP
Total net income, incl.		3,298	3,462	-1	2,370	$+1,092$
Net interest income		2,598	2,763	0	402	$+2,361$
Net fee and commission income		700	699	0	1,967	$-1,268$
Other net income		O	-1	$-1$	0	$-1$
Total operating expenses		2,554	5,965	1,636	5,728	$+237$
Earnings before impairment		744	$-2,503$	$-1,638$	$-3,359$	$+855$
Impairment losses		$-127$	8	0	58	$-50$
Net profit		871	$-2,512$	$-1,638$	$-3,417$	$+905$
Business volumes, EURm	13 months	Mar 23	YTD ₂₃	YTD22	FP YTD	Δ YTD FP
Loans (net)		23	23	0	24	-1

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3 months

Annexes

Strong quality of the portfolio

Retail banking loans overdue portfolio

LHV capitalisation is at all times high level

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Share information

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Madis Toomsalu [email protected]

Meelis Paakspuu [email protected]