LHV Group — Earnings Release 2024

Dec 17, 2024

LHV Group results in November 2024

For AS LHV Group, November was marked by a strong increase in loan volumes.

LHV Group's consolidated loan portfolio increased by EUR 162 million in
November. The total volume of client deposits increased by EUR 48 million and
the funds managed by LHV increased by EUR 26 million. Payments related to
financial intermediaries amounted to 6.3 million in November.

In November, AS LHV Group earned EUR 10.2 million in consolidated net profit.
Out of the subsidiaries, AS LHV Pank earned EUR 9.0 million, LHV Bank Ltd EUR
743 thousand, AS LHV Varahaldus EUR 231 thousand, and AS LHV Kindlustus EUR 108
thousand in net profit during the month.

LHV Group has put its existing own funds to work to a maximum extent, which is
reflected in the record growth of the loan portfolio. At the same time, the
environment with high capital requirements and rapid changes in interest rates
still requires a strong response on the expenditure side, which is why LHV Pank
plans to reduce the number of positions in the near future.

The number of clients of LHV Pank increased by 3,700 during the month and
business volumes increased to the highest level. Of the EUR 124 million increase
in the bank's loan portfolio, 28 million came from retail loans and 96 million
from corporate loans. Deposits from retail clients decreased by EUR 71 million,
while deposits from financial intermediaries showed an increase of EUR 199
million. The credit quality of the bank remained at a strong level, and
impairments were applied in a forward-looking manner.

In November, the bank paid out a record support of EUR 165,000 to 146 football
clubs across Estonia, collected by football fans using the LHV Football Card.
The bank also signed a cooperation agreement with the Estonian Biathlon
Federation, according to which LHV will be the main sponsor of Estonian biathlon
until at least 2027.

For LHV Bank Limited, November also saw strong growth in both corporate loans
and financial intermediaries. The loan portfolio increased by EUR 37 million,
however, there are undisbursed loans worth EUR 172 million approved by the
credit committee. Net interest income remained at a lower level than planned due
to lower deposits of financial intermediaries and a smaller loan portfolio in
previous months. Fee and commission income has decreased somewhat due to price
pressures in the market.

November was also an active month for LHV Varahaldus. By the end of November,
nearly 14,000 clients of LHV pension funds had submitted an application for
increasing contributions to the II pension pillar. The total number of active
pension savers was 114,000. In the stock markets, November was a very strong
month in the winds of the US elections, with II pillar funds showing positive
returns. The profit of LHV Varahaldus somewhat outperformed the financial plan.

For LHV Kindlustus, the stable profitable growth continued when 18,200 new
insurance contracts were concluded in the amount of EUR 3 million. Damages were
compensated in the amount of EUR 2.1 million, more motor third party liability
insurance events were registered than usual. In terms of both business volumes
and profit, the insurance company is outperforming the financial plan.

The LHV Group's public offering of subordinated bonds, which ended in November,
was subscribed to by 2,293 investors, from whom the company raised EUR 20
million. The volume of the issue was oversubscribed 2.5 times.

By the end of November, LHV Group's net profit was EUR 3 million lower than the
financial plan disclosed at the beginning of October. The financial plan stands.

AS LHV Group reports are available at: https://investor.lhv.ee/en/reports/.

LHV Group is the largest domestic financial group and capital provider in
Estonia. LHV Group's key subsidiaries are LHV Pank, LHV Varahaldus, LHV
Kindlustus, and LHV Bank Limited. The Group employs over 1,200 people. As at the
end of November, LHV's banking services are being used by 452,000 clients, the
pension funds managed by LHV have 114,000 active clients, and LHV Kindlustus
protects a total of 170,000 clients. LHV Bank Limited, a subsidiary of the
Group, holds a banking licence 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])