LHV Group — Interim / Quarterly Report 2021

Aug 10, 2021

LHV Group

Month with strong results

Financial results, EURt	13 months	Jul-21	YTD21	YTD20		FP YTD △ YTD FP
Total revenue, incl.		12,684	74,283	52,534	67,936	+6,347
Net interest income		8,930	52,229	37.434	49,385	+2,844
Net fee and commission income		3,528	21,267	15,046	17,181	+4,086
Total operating expenses		4,303	35,988	25,267	36,387	-399
Earnings before impairment		8,381	38,295	27,268	31,549	+6,746
Impairment losses on loans		1,691	2,501	8.144	5,994	-3,493
Income tax		867	5,640	3,544	4,209	+1,431
Net profit, incl.		5,822	30,154	15,580	21,347	+8,808
attr, to shareholders		5,663	29,115	14,303	20,279	48,831
Business volumes, EURm	13 months	Jul-21	YTD21	YTD20		FP YTD A YTD FP
Deposits from customers		4,938	4,938	3,070	4,027	+911
Loans (net)		2.448	2,448	1,828	2.403	+45
Assets under management		1.643	1,643	1,455	1.644	-1
Fin. intermediaries' payments, thous. pcs		1,755	13,834	8,084	na	na
Key figures	13 months	Jul-21	YTD21	YTD20	FP YTD	A YTD FP
Cost / income ratio (C/I)		33.9%	48.4%	48.1%	53.6%	- 5.1 pp
Net interest margin (NIM)		1.8%	1.6%	2.1%	1.7%	- 0.1 pp
pre-tax ROE*		29.7%	23.8%	14.6%	20.0%	+ 3.8 pp
ROE*		25.9%	20.1%	11.9%	14.3%	+ 5.1 pp
ROA		1.2%	0.9%	0.8%	0.7%	+ 0.2 pp

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Customer activity high in all business lines

Financial results, EURt	13 months	Jul-21	YTD21	YTD20		FP YTD
Total revenue, incl.		11,052	68,088	47,245	61,886	+6,202
Net interest income		8,246	52,315	37,391	49,882	+2,434
Net fee and commission income		2,746	15,925	10,032	11,798	+4,127
Total operating expenses		3,307	26,686	21,085	26,032	+654
Earnings before impairment		7,744	41,402	26,161	35,854	+5,548
Impairment losses on loans		1,691	2,501	8,144	5,994	-3,493
Income tax		832	5,387	2,699	4,209	+1,178
Net profit		5,221	33,515	15,317	25,652	+7,863
Business volumes, EURm	13 months	Jul-21	YTD21	YTD20	FP YTD	A YTD FP
Deposits from customers		4,964	4,964	3,087	4,044	+920
Loans (net)		2,448	2,448	1,828	2,403	+45
Key figures	13 months	Jul-21	YTD21	YTD20	FP YTD	A YTD FP
Cost / income ratio (C/I)		29.9%	39.2%	44.6%	42.1%	2.9 pp
Net interest margin (NIM)		1.7%	1.6%	1.9%	1.7%	0.1 pp

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AUM decreasing less than expected in September

Financial results, EURt	13 months	Jul-21	YTD21	YTD20	FP YTD	A YTD FP
Total revenue		867	5,776	5,226	5,595	+181
Total expenses		544	7,083	3,674	8,184	-1,101
Earnings before taxes		323	-1,307	1,552	-2,589	+1,282
Income tax		0	1,241	844	1,241	+0
Net profit		323	-2,548	708	-3,831	+1,282
Business volumes	13 months	Jul-21	YTD21	YTD20		FP YTD
Assets under management, EURm		1,643	1,643	1,455	1.644
Active customers of PII funds, thous.		174	174	174	179	-5
Key figures	13 months	Jul-21	YTD21	YTD20	FP YTD	A YTD FP
Cost / income ratio (C/I)		62.7%	122.6%	73.3%	146.3%	23.6 pp

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Continuing growth in sales volumes and record level in customer satisfaction

Financial results, EURt	13 months	Jul-21	YTD21	YTD20		FP YTD △ YTD FP
Total revenue, incl.		gg	605	0	997	-392
Net earned premiums		213	830	0	2,556	-1,726
Net incurred losses		106	210	0	880	-670
Total expenses		160	1,055	128	1,172	-17
Earnings before taxes		-62	-449	-128	-175	-275
Net profit		-62	-449	-128	-175	-275
Business volumes	13 months	Jul-21	YTD21	YTD20		FP YTD Δ YTD FP
Gross written premium, EURt		433	4,209	0	8,069	-3,860
No of Customers (thous.)		132	132	O	na	na
Key figures	13 months	Jul-21	YTD21	YTD20		FP YTD Δ YTD FP
Net loss ratio		49.7%	25.3%	na	34.4%	- 9.1 pp

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee