LHV Group — Earnings Release 2024

Sep 17, 2024

LHV Group

Loan portfolio growth along with deposits keeps profitability high

Financial results, EURt	13 months	Aug 24	YTD24	YTD23		FP YTD A YTD FP
Total net income, incl.		28,392	229,647	196,976	206,284	+23,362
Net interest income		22,538	184,558	163,171	162.174	+22,384
Net fee and commission income		5,451	43,090	32,519	42,913	+17
Total operating expenses		12,574	97,387	85,392	94,303	+3,085
Earnings before impairment		15,818	132,259	111,583	111,982	+20,278
Impairment losses		1,626	12,226	1,169	13,901	-1,675
Income tax expense		2,012	16,433	16,002	14,640	+1,793
Net profit, incl.		12.181	103,601	94,412	83,442	+20,159
attr. to shareholders		12,031	102,880	93,366	83,012	+19,868
Business volumes, EURm	13 months	Aug 24	YTD24	YTD23	FP YTD	A YTD FP
Deposits from customers		6,223	6,223	5,345	6,442	-219
Loans (net)		4,081	4,081	3,324	3,815	+266
Assets under management		1.558	1,558	1,501	1,610	-52
Fin. intermediaries' payments, thous. pcs		6,141	48,691	28,924	37,947	+10.744
Key figures	13 months	Aug 24	YTD24	YTD23	FP YTD	A YTD FP
Cost / income ratio (C/I)		44.3%	42.4%	43.4%	45.7%	- 3.3 pp
Net interest margin (NIM)		3.5%	3.7%	3.9%	3.2%	+ 0.5 pp
pre-tax ROE*		26.9%	30.6%	35.9%	25.5%	+ 5.1 pp
ROE*		23.1%	26.4%	30.7%	21.7%	+ 4.7 pp

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Customer activity contributed to strong results

Financial results, EURt	13 months	Aug 24	YTD24	YTD23	FP YTD	A YTD FP
Total net income, incl.		23,131	184,499	166,536	164,075	+20,425
Net interest income		20,006	160,833	148,831	138,734	+22,099
Net fee and commission income		2,712	22,130	16,446	24,611	-2,481
Total operating expenses		8,057	60,822	55,248	59,664	+1,159
Earnings before impairment		15,075	123,677	111,288	104,411	+19,266
Impairment losses		1,306	11,858	855	13.729	-1,872
Income tax expense		1,960	16,235	14,612	13,165	+3,071
Net profit		11,809	95,584	95,821	77,517	+18,067
Business volumes, EURm	13 months	Aug 24	YTD24	YTD23	FP YTD	A YTD FP
Deposits from customers		5,769	5,769	5,243	5,962	-193
incl. banking services' deposits		1,015	1,015	971	1,060	-45
Loans (net)		3,875	3,875	3,412	3,594	+280
Key figures	13 months	Aug 24	YTD24	YTD23	FP YTD	A YTD FP
Cost / income ratio (C/I)		34.8%	33.0%	33.2%	36.4%	- 3.4 pp
Net interest margin (NIM)		3.4%	3.5%	3.6%	3.0%	+ 0.5 pp

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Historically fastest growth in loans and deposits

Financial results, EURt	13 months	Aug 24	YTD24	YTD23	FP YTD	A YTD FP
Total net income, incl.		3,434	29,895	20,477	32,506	-2,611
Net interest income		2,583	23,163	16,112	28,709	-5,546
Net fee and commission income		863	6,685	4,424	3,791	+2,888
Other net income		-12	48	-59	0	+48
Total operating expenses		3,096	24,686	19,815	22,302	+2,384
Earnings before impairment		337	5,209	662	10,204	-4,994
Impairment losses		320	368	134	171	+197
Income tax expense		4	-786	0	186	-971
Net profit		13	5,627	528	9,847	-4,220
Business volumes, EURm	13 months	Aug 24	YTD24	YTD23	FP YTD	A YTD FP
Deposits from customers		585	585	145	609	-24
Loans (net)		207	207	55	221	-14
Key figures	13 months	Aug 24	YTD24	YTD23	FP YTD	A YTD FP
Cost / income ratio (C/I)		90.2%	82.6%	96.8%	68.6%	+ 14.0 pp
Net interest margin (NIM)		4.9%	6.8%	12.8%	8.2%	1.4 pp

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Net profit after eight months in accordance with the financial plan

Financial results, EURt	13 months	Aug 24	YTD24	YTD23	FP YTD	A YTD FP
Total net income		765	5,954	5,867	6,056	-102
Total operating expenses		510	4,756	4,587	4,770	-13
EBIT		255	1,197	1,281	1,286	-89
Net financial income		-15	455	204	369	+87
Income tax expense		0	801	488	801	-0
Net profit		240	852	996	854	-2
Business volumes	13 months	Aug 24	YTD24	YTD23	FP YTD	A YTD FP
Assets under management, EURm		1,558	1,558	1,501	1,610	-52
Active customers of PII funds, thous.		118	118	127	120	-2
Key figures	13 months	Aug 24	YTD24	YTD23	FP YTD	A YTD FP
Cost / income ratio (C/I)		68.0%	74.2%	75.5%	74.2%	0.0 pp

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5

Key indicators maintain a positive trend

uuenda

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee