LHV Group — Earnings Release 2023

Feb 14, 2023

LHV Group

Successful start to the year

Financial results, EURt	13 months	Jan 23	YTD 23	YTD22	FP YTD	Δ YTD FP
Total revenue, incl.		21,887	21,887	11,678	19,001	$+2,885$
Net interest income		17,334	17,334	8,675	15,048	$+2,286$
Net fee and commission income		3,965	3,965	3,284	3,910	$+55$
Total operating expenses		9,173	9,173	5,878	9,401	$-228$
Earnings before impairment		12,713	12,713	5,800	9,601	$+3,113$
Impairment losses		147	147	49	1,739	$-1,592$
Income tax expense		1,864	1,864	831	1,396	$+469$
Net profit, incl.		10,702	10,702	4,919	6,466	$+4,237$
attr. to shareholders		10,612	10,612	4,767	6,406	$+4,206$
Business volumes, EURm	13 months	Jan 23	YTD 23	YTD22	FP YTD	Δ YTD FP
Deposits from customers		4,958	4,958	5,850	5,098	$-140$
Loans (net)		3,204	3,204	2,720	3,188	$+16$
Assets under management		1,435	1,435	1,305	1,407	$+28$
Fin. intermediaries' payments, thous. pcs		2,949	2,949	2,232	2,149	$+800$
Key figures	13 months	Jan 23	YTD 23	YTD22		FP YTD A YTD FP
Cost / income ratio (C/I)		41.9%	41.9%	50.3%	49.5%	$-7.6$ pp
Net interest margin (NIM)		3.3%	3.3%	1.5%	2.9%	$+0.5$ pp
pre-tax ROE*		35.1%	35.7%	20.9%	22.3%	$+13.4$ pp
ROE*		29.9%	30.4%	17.9%	18.4%	$+12.0$ pp
ROA		2.0%	2.0%	0.8%	1.2%	$+0.8$ pp

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Competition for deposits is increasing

Financial results, EURt	13 months	Jan 23	YTD 23	YTD22	FP YTD	YTD FP
Total revenue, incl.		20,463	20,463	11,090	18,131	$+2,333$
Net interest income		17,436	17,436	8,731	15,346	$+2,090$
Net fee and commission income		2,726	2,726	2,494	2,773	$-48$
Total operating expenses		6,241	6,241	4,812	6,562	$-321$
Earnings before impairment		14,222	14,222	6,278	11,569	$+2,653$
Impairment losses		147	147	49	1,739	$-1,592$
Income tax expense		1,824	1,824	791	1,355	$+469$
Net profit		12,252	12,252	5,438	8,475	$+3,777$
Business volumes, EURm	13 months	Jan 23	YTD23	YTD22	FP YTD	∆ YTD FP
Deposits from customers		5,014	5,014	5,892	5,144	$-130$
Loans (net)		3,183	3,183	2,720	3,198	$-16$
Key figures	13 months	Jan 23	YTD 23	YTD22	FP YTD	∆ YTD FP
Cost / income ratio (C/I)		30.5%	30.5%	43.4%	36.2%	$-5.7$ pp
Net interest margin (NIM)		3.4%	3.4%	1.5%	2.9%	$+0.4$ pp

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Strong start to the year, good returns of the funds

Financial results, EURt	13 months	Jan 23	YTD23	YTD22	FP YTD	Δ YTD FP
Total revenue		710	710	635	706	$+4$
Total operating expenses		551	551	531	540	$+11$
EBIT		158	158	104	166	-8
Net financial income		271	271	$-137$	49	$+222$
Income tax expense		$\Omega$	0	0	0	$+0$
Net profit		430	430	$-32$	215	$+214$
Business volumes	13 months	Jan 23	YTD23	YTD22	FP YTD	Δ YTD FP
Assets under management, EURm		1,435	1,435	1,305	1,407	$+28$
Active customers of PII funds, thous.		129	129	135	130	-1
Key figures	13 months	Jan 23	YTD 23	YTD22	FP YTD	Δ YTD FP
Cost / income ratio (C/I)		56.2%	56.2%	106.4%	71.5%	$-15.3$ pp

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Increased volumes support the decline in net loss ratio

uuenda

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Started selling corporate loans

Financial results, EURt	13 months	Jan 23	YTD 23	YTD22	FP YTD	FP $+1D$
Total revenue, incl.		84	84	0	149	$-65$
Net interest income		86	86	0	149	-62
Other net income		$-2$	$-2$	0	0	$-2$
Total operating expenses		1 635	1 635	269	1 695	$-60$
Earnings before impairment		$-1551$	$-1, 551$	$-269$	$-1.547$	$-5$
Net profit		$-1551$	$-1551$	$-269$	$-1547$	$-5$
Business volumes, EURm	13 months	Jan 23	YTD 23	YTD 22	FP YTD	YTD FP Λ
Loans (net)		22	22	0	21	$^{+}$

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee