LHV Group — Earnings Release 2024

Aug 13, 2024

LHV Group

Loan portfolio growth underpins the strong results

Financial results, EURt	13 months	Jul 24	YTD24	YTD23		FP YTD A YTD FP
Total net income, incl.		28,550	201,254	169.872	180,388	+20,865
Net interest income		22,676	162,020	140.405	142,336	+19,684
Net fee and commission income		5,834	37,639	28,531	37,012	+627
Total operating expenses		11,696	84,813	73,547	82,225	+2,589
Earnings before impairment		16,853	116,441	96,325	98.165	+18,276
Impairment losses		2,706	10,600	562	11,696	-1,096
Income tax expense		2,015	14,421	13,549	12,791	+1,630
Net profit, incl.		12,132	91,420	82,213	73,678	+17,742
attr, to shareholders		12,020	90,850	81,318	73,330	+17,520
Business volumes, EURm	13 months	Jul 24	YTD24	YTD23	FP YTD	A YTD FP
Deposits from customers		5,969	5,969	5.193	6,358	-389
Loans (net)		3,994	3,994	3,281	3,764	+229
Assets under management		1,554	1,554	1,496	1,591	-37
Fin. intermediaries' payments, thous. pcs		6,414	42,550	24,376	33,023	+9,527
Key figures	13 months	Jul 24	YTD24	YTD23	FP YTD	A YTD FP
Cost / income ratio (C/I)		41.0%	42.1%	43.3%	45.6%	- 3.4 pp
Net interest margin (NIM)		3.6%	3.8%	3.9%	3.3%	+ 0.6 pp
pre-tax ROE*		27.5%	31.2%	36.1%	25.9%	+ 5.3 pp
ROE*		23.6%	26.9%	30.9%	22.1%	+ 4.9 pp

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Very strong growth in loans and deposits

Financial results, EURt	13 months	Jul 24	YTD24	YTD23	FP YTD	A YTD FP
Total net income, incl.		23,802	161,368	144,127	143,179	+18,189
Net interest income		20,518	140,827	128,502	121,392	+19,435
Net fee and commission income		3,315	19,418	14,875	21,147	-1,728
Total operating expenses		6,737	52,766	47,966	52,107	+6559
Earnings before impairment		17,065	108,602	96,161	91,072	+17,531
Impairment losses		2,887	10,552	332	11,558	-1,006
Income tax expense		2,033	14,275	12,200	11,548	+2,727
Net profit		12,145	83,775	83,629	67,965	+15,810
Business volumes, EURm	13 months	Jul 24	YTD24	YTD23	FP YTD	A YTD FP
Deposits from customers		5,597	5,597	5,269	5,913	-316
incl. banking services' deposits		922	922	1,040	1,052	-130
Loans (net)		3,824	3,824	3,302	3,564	+260
Key figures	13 months	Jul 24	YTD24	YTD23	FP YTD	A YTD FP
Cost / income ratio (C/I)		28.3%	32.7%	33.3%	36.4%	- 3.7 pp
Net interest margin (NIM)		3.5%	3.5%	3.5%	3.0%	+ 0.6 pp

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Loans and deposits growing steadily

Financial results, EURt	13 months	Jul 24	YTD24	YTD23		FP YTD A YTD FP
Total net income, incl.		2,942	26,461	17,116	28,109	-1,648
Net interest income		2,155	20,580	13,434	24,882	-4,301
Net fee and commission income		818	5,822	3,725	3,228	+2,594
Other net income		-31	60	-43	0	+60
Total operating expenses		3,379	21,590	16,612	19,357	+2,233
Earnings before impairment		-437	4,872	503	8,752	-3,881
Impairment losses		-181	48	50	138	-90
Income tax expense		-64	-790	0	0	-190
Net profit		-192	5,613	453	8,614	-3,001
Business volumes, EURm	13 months	Jul 24	YTD24	YTD23	FP YTD	A YTD FP
Deposits from customers		500	500	0	575	-75
Loans (net)		170	170	47	200	-31
Key figures	13 months	Jul 24	YTD24	YTD23	FP YTD	A YTD FP
Cost / income ratio (C/I)		114.9%	81.6%	97.1%	68.9%	+ 12.1 pp
Net interest margin (NIM)		4.6%	7.5%	33.2%	8.4%	0.8 pp

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Despite volatile markets, LHV's larger funds with positive returns

Financial results, EURt	13 months	Jul 24	YTD24	YTD23	FP YTD	A YTD FP
Total net income		766	5,188	5,099	5,262	-74
Total operating expenses		747	4,246	4,005	4,164	+82
EBIT		19	942	1,095	1,098	-156
Net financial income		ട്ടു	471	302	325	+146
Income tax expense		0	801	488	801	-0
Net profit		88	612	909	622	-10
Business volumes	13 months	Jul 24	YTD24	YTD23	FP YTD	A YTD FP
Assets under management, EURm		1,554	1,554	1,496	1,591	-37
Active customers of PII funds, thous.		118	118	127	120	-2
Key figures	13 months	Jul 24	YTD24	YTD23	FP YTD	A YTD FP
Cost / income ratio (C/I)		89.4%	75.0%	14.1%	74.5%	+ 0.5 pp

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A month with good sales results

uuenda

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee