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LHV Group Earnings Release 2025
2219_rns_2025-02-18_b865638b-b33c-473a-b70b-52f3b068f6e0.pdf
Earnings Release
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LHV Group
January results 18 February 2025
LHV Group Moderate start to the year
| Financial results, EURt | 13 months | Jan 25 | YTD25 | YTD24 | FP YTD A YTD FP | |
|---|---|---|---|---|---|---|
| Total net income, incl. | 28,597 | 28,597 | 28,471 | 27,295 | +1,302 | |
| Net interest income | 21,527 | 21,527 | 23,974 | 22,163 | -636 | |
| Net fee and commission income | 4,899 | 4,899 | 4,505 | 4,894 | +5 | |
| Total operating expenses | 13,228 | 13,228 | 11,733 | 12,811 | +417 | |
| Earnings before impairment | 15,369 | 15,369 | 16,738 | 14,484 | +885 | |
| Impairment losses | 4,312 | 4,312 | 956 | 1,161 | +3,151 | |
| Income tax expense | 2,041 | 2,041 | 2,168 | 2,384 | -342 | |
| Net profit, incl. | 9,016 | 9,016 | 13,615 | 10,940 | -1,924 | |
| attr. to shareholders | 8,816 | 8,816 | 13,623 | 10,790 | -1,973 | |
| Business volumes, EURm | 13 months | Jan 25 | YTD25 | YTD24 | FP YTD | A YTD FP |
| Loans (net) | 4,544 | 4,544 | 3,602 | 4,572 | -28 | |
| Deposits from customers | 6,895 | 6,895 | 5,825 | 6,810 | +85 | |
| Assets under management | 1,548 | 1,548 | 1,464 | 1,507 | +41 | |
| Fin. intermediaries' payments, thous. pcs | 6,640 | 6,640 | 5,719 | 6,224 | +417 | |
| Key figures | 13 months | Jan 25 | YTD25 | YTD24 | FP YTD | A YTD FP |
| Cost / income ratio (C/I) | 46.3% | 46.3% | 41.2% | 46.9% | 0.7 pp - |
|
| Net interest margin (NIM) | 2.9% | 3.0% | 4.1% | 3.1% | - 0.1 pp | |
| pre-tax ROE* | 18.9% | 19.3% | 34.0% | 23.4% | - 4.1 pp | |
| ROF* | 15.4% | 15.7% | 29.4% | 19.2% | 3.5 pp |
- Three companies ahead of plans, LHV Pank's result impacted by loan impairments
- Loan portfolio declined by 8 EURm, including 23 EURm decrease in LHV Pank and 16 EURm increase in LHV Bank
- Deposits from customers decreased by 15 EURm
- Monthly net profit 9.0 EURm and ROE 15.4%
- Financial plan holds
LHV Pank Month impacted by loan impairments
| Financial results, EURt | 13 months | Jan 25 | YTD25 | YTD24 | FP YTD A YTD FP | |
|---|---|---|---|---|---|---|
| Total net income, incl. | 20,842 | 20,842 | 23,862 | 21,270 | -428 | |
| Net interest income | 17,192 | 17,192 | 21,635 | 18.418 | -1,226 | |
| Net fee and commission income | 2,915 | 2,915 | 2,201 | 2,790 | +125 | |
| Total operating expenses | 8,459 | 8,459 | 8,283 | 8,028 | +432 | |
| Earnings before impairment | 12,383 | 12,383 | 15,578 | 13,242 | -855 | |
| Impairment losses | 3,951 | 3,951 | 932 | 762 | +3,189 | |
| Income tax expense | 1,531 | 1,531 | 2,120 | 2,277 | -746 | |
| Net profit | 6,901 | 6,901 | 12,526 | 10,203 | -3,302 | |
| Business volumes, EURm | 13 months | Jan 25 | YTD25 | YTD24 | FP YTD A YTD FP | |
| Loans (net) | 4,181 | 4,181 | 3,512 | 4,223 | -42 | |
| Deposits from customers | 6,282 | 6,282 | 5,585 | 6,167 | +116 | |
| incl. banking services' deposits | 1,419 | 1,419 | 1,028 | 1,201 | +218 | |
| Key figures | 13 months | Jan 25 | YTD25 | YTD24 | FP YTD A YTD FP | |
| Cost / income ratio (C/I) | 40.6% | 40.6% | 34.7% | 37.7% | + 2.8 pp | |
| Net interest margin (NIM) | 2.6% | 2.6% | 3.8% | 2.8% | - 0.2 pp |
- The number of bank customers increased by 4,000
- Loan portfolio decreased by 23 EURm, incl. retail loans increased by 27 EURm and corporate loans decreased by 50 EURm due to planned repayment by single client
- Deposits decreased by 11 EURm, incl. regular customers' deposits decreased by 78 EURm, financial intermediaries' deposits increased by 64 EURm
- Loan impairment impacted by downgrade of single client's rating
LHV Bank Year started with strong growth and revenues
| Financial results, EURt | 13 months | Jan 25 | YTD25 | YTD24 | FP YTD A YTD FP | |
|---|---|---|---|---|---|---|
| Total net income, incl. | 5,941 | 5,941 | 3,834 | 4,431 | +1,510 | |
| Net interest income | 4,119 | 4,119 | 2,610 | 3,498 | +621 | |
| Net fee and commission income | 806 | 806 | 1,090 | વેરૂડિ | -127 | |
| Other net income | 1,017 | 1,017 | 135 | 0 | +1,017 | |
| Total operating expenses | 3,774 | 3,774 | 2,476 | 3,842 | -68 | |
| Earnings before impairment | 2,167 | 2,167 | 1,358 | 589 | +1,578 | |
| Impairment losses | 361 | 361 | 24 | 399 | -38 | |
| Income tax expense | 452 | 452 | -1,819 | 48 | +404 | |
| Net profit | 1,355 | 1,355 | 3,153 | 143 | +1,212 | |
| Business volumes, EURm | 13 months | Jan 25 | Y D25 | YTD24 | FP YTD | A YTD FP |
| Deposits from customers | 697 | 697 | 325 | 691 | +6 | |
| Loans (net) | 364 | 364 | 90 | 349 | +15 | |
| Key figures | 13 months | Jan 25 | YTD25 | YTD24 | FP YTD | A YTD FP |
| Cost / income ratio (C/I) | 63.5% | 63.5% | 64.6% | 86.7% | 23.2 pp | |
| Net interest margin (NIM) | 6.2% | 6.3% | 8.5% | 5.4% | + 1.0 pp |
- Loan portfolio increased by 16 EURm. Loans approved by Credit Committee but not yet disbursed amount to 186 EURm
- Platform deposits increased by 25 EURm, in total over 13,400 depositors
- Without marketing, first 100 retail customers have opened accounts with small initial balance. Account opening automation and term deposits in final development phase
- Net income exceeded plan due to higher-than-expected income from financial intermediaries'
LHV Varahaldus Year started with strong results
| Financial results, EURt | 13 months | Jan 25 | YTD25 | YTD24 | FP YTD A YTD FP | |
|---|---|---|---|---|---|---|
| Total net income | 745 | 745 | 744 | 750 | -4 | |
| Total operating expenses | 565 | 565 | 564 | રેકેટિંગ | -4 | |
| EBIT | 181 | 181 | 180 | 181 | -0 | |
| Net financial income | 182 | 182 | -38 | 46 | +136 | |
| Income tax expense | 0 | 0 | 0 | 0 | +0 | |
| Net profit | 363 | 363 | 141 | 227 | +136 | |
| Business volumes | 13 months | Jan 25 | YTD25 | YTD24 | FP YTD A YTD FP | |
| Assets under management, EURm | 1,548 | 1,548 | 1,464 | 1,507 | +41 | |
| Active customers of PII funds, thous. | 112 | 112 | 121 | 112 | +1 | |
| Key figures | 13 months | Jan 25 | YTD25 | YTD24 | FP YTD | |
| Cost / income ratio (C/I) | 60.9% | 60.9% | 80.0% | 71.5% | - 10.6 pp |
- Strong month for stock markets, particularly on major European exchanges
- M, L and XL increased by 1.8%, 2.6% and 3.7%, respectively. Indeks rose by 3.7% and Roheline by 1.3%. Conservative funds S and XS grew by 1.2% and 0.7%
- Profitability exceeded plan due to financial income earned from fund holdings
- New LHV Euro Bond Fund was launched in January, accessible to all retail investors
LHV Kindlustus Highly profitable month
| Financial results, EURt | 13 months | Jan 25 | YTD25 | YTD24 | FP YTD A YTD FP | |
|---|---|---|---|---|---|---|
| Insurance service revenue | 3,246 | 3,246 | 2,709 | 3,256 | -10 | |
| Commissions expense | 402 | 402 | 342 | 453 | -50 | |
| Gross incurred losses | 2,030 | 2,030 | 2,072 | 2,094 | -64 | |
| Operating expenses | 482 | 482 | 445 | 464 | +18 | |
| Insurance result without reinsurance | 332 | 332 | -150 | 245 | +87 | |
| Reinsurance result | ਰੇਰੇ | ਰੇਰੇ | -5 | 41 | +58 | |
| Total result from insurance activities | 233 | 233 | -145 | 204 | +29 | |
| Net other income | 16 | 16 | 86 | 0 | +17 | |
| Net profit | 249 | 249 | -59 | 204 | +45 | |
| Business volumes, EURt | 13 months | Jan 25 | YTD25 | YTD24 | FP YTD A YTD FP | |
| Contract premiums written | 6,553 | 6,553 | 5,078 | 6,446 | +107 | |
| No of customers (thous.) | 172 | 172 | 163 | na | na | |
| Key figures | 13 months | Jan 25 | YTD25 | YTD24 | FP YTD A YTD FP | |
| Net loss ratio | 64.1% | 64.3% | 75.3% | 65.4% | 1.1 pp l |
|
| Net expense ratio | 28.7% | 28.7% | 31.4% | 28.4% | + 0.3 pp |
- 17,500 insurance contracts with a volume of 6.6 EURm were signed. Very good sales results in vehicle, home and travel insurance
- Claims paid out totalled 2 EURm. As expected for January, more vehicle-related claims
- Key profitability indicators remained at very strong level
Madis Toomsalu LHV Group CEO [email protected]
Meelis Paakspuu LHV Group CFO [email protected]
