LHV Group

Decent growth with strong results

+97 EURm		+188 EURm
LOANS		DEPOSITS		NUMBER OF PAYMENTS
	+33 EURm		+11 600
FUNDS			BANK CUSTOMERS

All-time high quarterly results, excluding performance fee

Financial results, EURt	9 quarters	Q2-21	Q1-21	A quarter
Net interest income		22,927	20,372	+2,556
Net fee and commission income		9,098	8.640	+458
Other income	------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	809	-246	+1.055
Total revenue		32,834	28,765	+4,069
Total expenses	■■■■■■■■■	17,925	13,760	+4.165
Earnings before impairment		14,910	15,005	-95
Impairment losses on loans		-791	1,601	-2,392
Income tax expense	I	2.785	1.988	+798
Net income		12,916	11,417	+1,499
Business volumes, EURm	9 quarters	Q2-21	Q1-21	A quarter
Deposits from customers		4,921	4,734	+188
Loans (net)		2.401	2.304	+97
Assets under management		1,620	1,587	+33
Customers, thous.		490	482	+8
Fin. intermediaries' payments, thous. pcs		6,054	6.025	+28
Key figures	9 quarters	Q2-21	Q1-21	A quarter
Cost / income ratio (C/I)		54.6%	47.8%	+ 6.8 pp
pre-tax ROE*	��	24.0%	21.3%	+ 2.7 pp
ROF*	------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	19.7%	18.2%	+ 1.5 pp

Net profit ahead of financial plan by +7.6 EURm

Financial results, EURt	13 months	Jun-21	YTD21	YTD20	FP YTD	A YTD FP
Total revenue, incl.		11,521	61,599	44,516	56,813	+4,786
Net interest income		8.106	43,299	31,868	41,221	+2,078
Net fee and commission income		3.166	17.738	12,696	14.458	+3,280
Total operating expenses		8,006	31,685	21,835	31,663	+22
Earnings before impairment		3,515	29,915	22,681	25,151	+4,764
Impairment losses on loans		-1.439	810	8,683	4,907	-4,098
Income tax		1,170	4,773	2,964	3,469	+1,304
Net profit, incl.		3,784	24,332	11,034	16,775	+7,557
attr. to shareholders		3,557	23.452	10,014	15,940	+7,512
Business volumes, EURm	13 months	Jun-21	YTD21	YTD20	FP YTD	A YTD FP
Deposits from customers		4,921	4,921	3,087	4,010	+911
Loans (net)		2,401	2.401	1,804	2,363	+38
Assets under management		1,620	1,620	1,440	1,636	-16
Fin. intermediaries' payments, thous. pcs		1,712	12,079	6,869	na	na
Key figures	13 months	Jun-21	YTD21	YTD20	FP YTD	A YTD FP
Cost / income ratio (C/I)		69.5%	51.4%	49.0%	55.7%	- 4.3 pp
Net interest margin (NIM)		1.7%	1.6%	2.1%	1.7%	- 0.1 pp
pre-tax ROE*		22.6%	22.8%	12.4%	19.3%	+ 3.5 pp
ROE*		17.1%	19.1%	9.8%	13.3%	+ 5.8 pp
ROA		0.8%	0.9%	0.7%	0.7%	+ 0.2 pp

Deposits volume 4.9 EURb and loans volume 2.4 EURb

High customer activity and very good quality of loan portfolio

Financial results, EURt	9 quarters	Q2-21	Q1-21	△ quarter
Net interest income		23,313	20,757	+2,556
Net fee and commission income	==============================================================================================================================================================================	6,814	6,365	+449
Other income	- - -	226	-437	+663
Total revenue		30,352	26,684	+3,668
Total expenses		11,931	11,448	+483
Earnings before impairment	==============================================================================================================================================================================	18,421	15,237	+3,185
lmpairment losses on loans	------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	-791	1,601	-2,392
Income tax expense	------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	2,680	1,874	+806
Net income	------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	16,532	11,762	+4,771
Business volumes, EURm	9 quarters	Q2-21	Q1-21	Δ quarter
Deposits from customers		4,947	4,766	+181
Loans (net)	==============================================================================================================================================================================	2.401	2,304	+97
Customers, thous.		307	296	+10
Key figures	9 quarters	02-21	Q1-21	△ quarter
Cost / income ratio (C/I)		39.3%	42.9%	- 3.6 pp
pre-tax ROE*		33.0%	24.6%	+ 8.4 pp
ROF*		28.4%	21.2%	+ 7.2 pp
Net interest margin		1.6%	1.6%	+ 0.1 pp

Net profit ahead of financial plan by +7.2 EURm

Financial results, EURt	13 months	Jun-21	YTD21	YTD20		FP YTD Δ YTD FP
Total revenue, incl.		10,716	57,037	39,993	51,714	45,323
Net interest income		8,234	44,069	31,789	41,660	+2,409
Net fee and commission income		2.414	13.179	8,422	9,873	+3,306
Total operating expenses		3,777	23,379	18,246	22,239	+1,140
Earnings before impairment		6,940	33,658	21,747	29,475	+4,183
Impairment losses on loans		-1,439	810	8,683	4,907	-4,098
Income tax		1,135	4,554	2,120	3,469	+1,086
Net profit		7,244	28,294	10,944	21,099	+7,195
Business volumes, EURm	13 months	Jun-21	YTD21	YTD20		FP YTD A YTD FP
Deposits from customers		4,947	4,947	3,104	4,034	+913
Loans (net)		2,401	2,401	1,804	2,363	+38
Key figures	13 months	Jun-21	YTD21	YTD20	FP YTD	A YTD FP
Cost / income ratio (C/I)		35.2%	41.0%	45.6%	43.0%	- 2.0 pp
Net interest margin (NIM)		1.7%	1.6%	1.9%	1.7%	0.1 pp
l 1 capital adequacy		15.0%	15.0%	14.7%	14.8%	+ 0.2 pp
Total capital adequacy		18.0%	18.0%	18.2%	17.9%	+ 0.2 pp

Continuing growth in fund volumes, good return of pension funds

Pillar II comparable pension funds NAV change (YTD)

•

Net profit affected by amortisation from II pillar customer contracts

Financial results, EURt	9 quarters	Q2-21	Q1-21	Δ quarter
Total revenue	1	2,310	2,307	+2
Total expenses		4,784	1,755	+3,030
EBIT		-2,474	553	-3,027
Net financial income	- - - - -	179	113	+66
Income tax expense		0	1,241	-1,241
Net profit		-2,296	-576	-1,720

Business volumes	9 quarters	Q2-21	Q1-21	Δ quarter
Pillar II pension funds		1,575	1,547	+28
Pillar III pension funds	==============================================================================================================================================================================	39	36	+4
Eurofunds		6	5	+1
Active customers of PII funds, th.		175	177	-2

Key figures	9 quarters	Q2-21	Q1-21	A quarter
Cost / income ratio (C/I)	------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	192.3%		72.5% + 119.8 pp
pre-tax ROE	-----	-36.6%	9.0%	- 45.6 pp
ROE		-36.6%	-7.7%	- 28.9 pp

Impact of pension reform smaller than expected in the financial plan

Financial results, EURt	13 months	Jun-21	YTD21	YTD20	FP YTD	A YTD FP
Total revenue		821	4,909	4,427	4,767	+142
Total expenses		3,702	6,539	3,160	7,587	-1,048
Earnings before taxes		-2,881	-1,630	1,267	-2,820	+1,190
Income tax		0	1,241	844	1,241	+0
Net profit		-2,881	-2,871	423	-4,061	+1,190


Business volumes	13 months	Jun-21	YTD21	YTD20	FP YTD	A YTD FP
Assets under management, EURm		1,620	1,620	1,440	1,636	-16
Active customers of PII funds, thous.		175	175	173	178	-3

Key figures	13 months	Jun-21	YTD21	YTD20	FP YTD	A YTD FP
Cost / income ratio (C/I)		451.0%	133.2%	73.9%	159.2%	26.0 pp

Volume of gross written premium 1.6 EURm, product selection and sales channels expanding

Financial results, EURt	9 quarters	Q2-21	Q1-21	Δ quarter
Total revenue		417	89	+328
Total expenses	1	530	365	+165
Net technical result		-112	-276	+163
Net investments income	1	0	O	+0
Net profit		-112	-276	+163

Business volumes	9 quarters	Q2-21	Q1-21	Δ quarter
Gross written premium, EURt		1,640	2.136	-496
No of Customers (thous.)	1	128	126	+2

Key figures	9 quarters	Q2-21	Q1-21	△ quarter
Net loss ratio		19.5%	1.4%	+ 18.1 pp
Net expense ratio		101.9%	403.1%	301.2 pp -
pre-tax ROE		-6.3%	-15.1%	+ 8.8 pp
ROE		-6.3%	-15.1%	+ 8.8 pp

Volume of gross written premium 0.6 EURm, customer satisfaction remains high

Financial results, EURt	13 months	Jun-21	YTD21	YTD20		FP YTD △ YTD FP
Total revenue, incl.		127	507	0	812	-305
Net earned premiums		185	617	0	2,065	-1,448
Net incurred losses		54	104	0	670	-566
Total expenses		182	894	90	988	-94
Earnings before taxes		-55	-388	-90	-176	-211
Net profit		-55	-388	-90	-176	-211

Business volumes	13 months	Jun-21	YTD21	YTD20		FP YTD
Gross written premium, EURt		579	3,776	0	7.134	-3,358
No of Customers (thous.)		128	128	0	na	na
Key figures	13 months	Jun-21	YTD21	YTD20		FP YTD
Net loss ratio		29.0%	16.9%	na	32.4%	15.6 pp