LHV Group — Earnings Release 2024

Sep 17, 2024

LHV Group results for August 2024

In August, LHV's lending continued at a faster than planned pace, which had a
positive impact on the company's profit number. The consolidated loan portfolio
of AS LHV Group increased by EUR 87 million over the month. Deposits increased
by EUR 254 million on a consolidated basis. The volume of the funds managed by
LHV grew by EUR 4 million in August. Payments related to financial
intermediaries amounted to 6.1 million per month.

In August, the consolidated net profit of AS LHV Group was EUR 12.2 million.
Among the subsidiaries, AS LHV Pank earned EUR 11.8 million, LHV Bank Ltd EUR
13 thousand, AS LHV Varahaldus EUR 240 thousand, and AS LHV Kindlustus EUR 129
thousand in net profit over the month.

The number of the LHV Pank clients increased by 3,600. Strong results were
driven by client activity and good home loan lending performance. Of the
increase of EUR 50 million in the loan portfolio, retail loans accounted for EUR
36 million and corporate loans for EUR 14 million. In August, the deposits of
retail clients increased by EUR 40 million, the deposits of financial
intermediaries by EUR 93 million, and the volume of deposits raised through
platforms also increased by EUR 35 million. Write-downs remained lower than
planned due to the constant credit quality.

In August, LHV Pank entered into an agreement for the partial acquisition of the
loan portfolio of TBB Pank worth approximately EUR 36 million. The transaction
is expected to be completed by the end of Q3. In August, LHV Pank started
accepting student loan applications again.

For LHV Bank, which operates in the United Kingdom, August was the month with
the fastest loan portfolio and growth in the volume of deposits to date. The
loan portfolio grew by EUR 37 million and the deposits increased by EUR 85
million. At the same time, business volumes are still at a lower level than the
financial plan, and therefore interest income is also behind schedule. The
active development of LHV Bank's retail banking offering is underway, which has
increased costs. The mobile app is scheduled to be opened to staff for testing
as early as October.

Due to the volatility on the markets, the volume of funds managed by LHV
Varahaldus remained essentially at the same level as last month, increasing by
EUR 4 million. The net profit of Varahaldus corresponds to the financial plan;
however, the volume of funds is below the plan. The acceptance of applications
for increasing the amount of second pillar payments is continuing, with 7,300
clients having submitted applications by the end of August.

LHV Kindlustus is continuing at a steady and slightly faster than planned pace.
In August, 15,600 new insurance contracts were concluded in the amount of EUR
2.2 million. The number of policies increased to 244,000. Loss events were
compensated for in the amount of EUR 1.8 million. The number of loss events
remained stable.

By the end of August, LHV Group outperformed the financial plan in terms of net
profit by EUR 20.2 million. The financial plan remains unchanged.

To access the reports of AS LHV Group, please visit the website at
https://investor.lhv.ee/en/reports/.

LHV Group is the largest domestic financial group and capital provider in
Estonia. The key subsidiaries of LHV Group are LHV Pank, LHV Varahaldus, LHV
Kindlustus, and LHV Bank Limited. The Group employs over 1,100 people. As at the
end of August, LHV's banking services are being used by 441,000 clients, the
pension funds managed by LHV have 118,000 active clients, and LHV Kindlustus
protects a total of 168,000 clients. LHV Bank Limited, a subsidiary of the
Group, holds a banking license in the United Kingdom and provides banking
services to international financial technology companies, as well as loans to
small and medium-sized enterprises.

Priit Rum
Communications Manager
Phone: +372 502 0786
Email: [email protected] (mailto:[email protected])