LHV Group — Interim / Quarterly Report 2021

Nov 9, 2021

LHV Group

Strong growth in customer base and higher business volumes

Financial results, EURt	13 months	$Oct-21$	YTD21	YTD20	FP YTD	Δ YTD FP
Total revenue, incl.		12,788	110,490	77,250	108,369	$+2,122$
Net interest income		8,632	77,788	54,951	78,065	$-277$
Net fee and commission income		4,191	32,418	21,499	30,107	$+2,311$
Total operating expenses		5,807	52,743	36,977	51,237	$+1,506$
Earnings before impairment		6,982	57,748	40,273	57,132	$+616$
Impairment losses on loans		$-73$	2,180	10,061	4,790	$-2,610$
Income tax		997	8,588	5,762	8,245	$+343$
Net profit, incl.		6,058	46,980	24,451	44,097	$+2,882$
attr. to shareholders		5,878	45,283	22,523	42,546	$+2,737$
Business volumes, EURm	13 months	Oct-21	YTD21	YTD20		FP YTD A YTD FP
Deposits from customers		5,831	5,831	3,334	5,037	$+793$
Loans (net)		2,590	2,590	2,135	2,527	$+63$
Assets under management		1,321	1,321	1,496	1,334	$-12$
Fin. intermediaries' payments, thous. pcs		2,456	22,514	12,396	na	na
Key figures	13 months	$Oct-21$	YTD21	YTD20	FP YTD	Δ YTD FP
Cost / income ratio (C/I)		45.4%	47.7%	47.9%	47.3%	$+0.5$ pp
Net interest margin (NIM)		1.5%	1.6%	2.0%	1.6%	$-0.0$ pp
pre-tax ROE*		28.0%	23.8%	15.4%	22.5%	$+1.3$ pp
ROE*		24.1%	20.1%	12.8%	19.0%	$+1.1$ pp
ROA		1.1%	1.0%	0.9%	0.9%	$+0.0$ pp

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Customer activity increases fee and commission income

Financial results, EURt	13 months	$Oct-21$	YTD21	YTD 20	FP YTD	YTD FP Δ
Total revenue, incl.		11,816	101,812	69,957	100,019	$+1,793$
Net interest income		8,687	78,027	55,225	78,402	$-375$
Net fee and commission income		3,436	24,076	14,232	21,721	$+2,355$
Total operating expenses		4,504	39,573	30,740	38,734	$+839$
Earnings before impairment		7,312	62,239	39,217	61,284	$+955$
Impairment losses on loans		$-73$	2,180	10,061	4,790	$-2,610$
Income tax		962	8,229	4,616	7,847	$+382$
Net profit		6,424	51,830	24,541	48,647	$+3,182$
Business volumes, EURm	13 months	$Oct-21$	YTD21	YTD20	FP YTD	YTD FP Δ
Deposits from customers		5,876	5,876	3,368	5,083	$+793$
Loans (net)		2,590	2,590	2,135	2,527	$+63$
Key figures	13 months	$Oct-21$	YTD21	YTD 20	FP YTD	Δ YTD FP
Cost / income ratio (C/I)		38.1%	38.9%	43.9%	38.7%	$+0.1$ pp
Net interest margin (NIM)		1.5%	1.6%	1.9%	1.6%	$-0.0$ pp

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All largest pension funds showed good return

Financial results, EURt	13 months	$Oct-21$	YTD21	YTD 20	FP YTD	YTD FP
Total revenue		916	8,089	7,555	7,816	$+273$
Total expenses		559	8,797	5,236	8,846	-49
Earnings before taxes		357	$-708$	2,319	$-1,030$	$+322$
Income tax		0	1,241	844	1,241	$+0$
Net profit		357	$-1,949$	1,475	$-2,271$	$+322$
Business volumes	13 months	$Oct-21$	YTD 21	YTD 20	FP YTD	Δ YTD FP
Assets under management, EURm		1,321	1,321	1,496	1,334	$-12$
Active customers of PII funds, thous.		139	139	178	141	$-2$
Key figures	13 months	$Oct-21$	YTD 21	YTD20	FP YTD	YTD FP Δ
Cost / income ratio (C/I)		61.0%	108.8%	72.0%	113.2%	$-4.4$ pp

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Growing business volumes along with high customer satisfaction

Financial results, EURt	13 months	$Oct-21$	YTD21	YTD20	FP YTD	YTD FP $\Lambda$
Total revenue, incl.		130	981	0	971	$+10$
Net earned premiums		296	1,619	0	1,652	-34
Net incurred losses		148	581	0	530	$+50$
Total expenses		156	1,617	358	1,614	$+3$
Earnings before taxes		$-26$	$-636$	$-358$	$-643$	$+7$
Net profit		$-26$	$-637$	$-358$	-643	$+7$
Business volumes	13 months	$Oct-21$	YTD21	YTD 20	FP YTD	Δ YTD FP
Gross written premium, EURt		499	5,687	0	6,046	$-359$
No of Customers (thous.)		140	140	0	na	na
Key figures	13 months	$Oct-21$	YTD21	YTD 20	FP YTD	YTD FP Δ
Net loss ratio		50.0%	35.9%	na	32.1%	$+3.8$ pp

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee