LHV Group — Interim / Quarterly Report 2021

Jun 8, 2021

LHV Group

Month with strong results and growth

Financial results, EURt	13 months	May-21	YTD21	YTD20		FP YTD A YTD FP
Total revenue, incl.		11,418	50,079	37,057	47,049	+3,030
Net interest income		7.764	35.193	26,683	34,239	+954
Net fee and commission income		3,301	14,572	10,585	11.901	+2,671
Total operating expenses		5,013	23,679	18,374	22,754	+925
Earnings before impairment		6,405	26,400	18,683	24,295	+2,105
Impairment losses on loans		648	2,249	7,198	3,850	-1,601
Income tax		825	3.602	2,809	2,895	+708
Net profit, incl.		4,932	20,548	8,677	17,551	+2,998
attr. to shareholders		4,774	19,895	7,898	16,921	+2,974
Business volumes, EURm	13 months	May-21	YTD21	YTD20	FP YTD	A YTD FP
Deposits from customers		5.187	5.187	3,197	4,028	+1.159
Loans (net)		2,356	2,356	1,768	2,323	+33
Assets under management		1,617	1,617	1,418	1,628	-11
Key figures	13 months	May-21	YTD21	YTD20	FP YTD	A YTD FP
Cost / income ratio (C/I)		43.9%	47.3%	49.6%	48.4%	- 1.1 pp
pre-tax ROE*		26.4%	23.0%	12.3%	19.4%	+ 3.6 pp
ROE*		22.6%	19.6%	9.3%	16.9%	+ 2.7 pp
Net interest margin (NIM)		1.6%	1.5%	2.1%	1.7%	- 0.1 pp

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Customer activity high in all business lines

Financial results, EURt	13 months	May-21	YTD21	YTD20		FP YTD △ YTD FP
Total revenue, incl.		10,529	46,320	33,286	42,840	+3,481
Net interest income		7,892	35,835	26,569	34,606	+1,229
Net fee and commission income		2,527	10,765	7,016	8,084	+2,681
Total operating expenses		4,131	19,602	15,439	18,462	+1,141
Earnings before impairment		6,398	26,718	17,847	24,378	+2,340
Impairment losses on loans		648	2,249	7,198	3,850	-1,601
Income tax		790	3,419	1,964	2,895	+525
Net profit		4,960	21,050	8,685	17,634	+3,416
Business volumes, EURm	13 months	May-21	YTD21	YTD20	FP YTD	A YTD FP
Deposits from customers		5,211	5,211	3,212	4,052	+1,160
Loans (net)		2,356	2,356	1,768	2,323	+33
Key figures	13 months	May-21	YTD21	YTD20	FP YTD	△ YTD FP
Cost / income ratio (C/I)		39.2%	42.3%	46.4%	43.1%	0.8 pp
Net interest margin (NIM)		1.6%	1.6%	2.0%	1.7%	0.1 pp

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Volume of assets under management continues to grow

Financial results, EURt	13 months	May-21	YTD21	YTD20		FP YTD
Total revenue		873	4,088	3,642	3,969	+119
Total expenses		518	2,837	2,591	2,791	+45
Earnings before taxes		355	1,251	1,052	1,177	+74
Income tax		0	1,241	844	1,241	+0
Net profit		355	10	207	-64	+74
Business volumes	13 months	May-21	YTD21	YTD20		FP YTD A YTD FP
Assets under management, EURm		1,617	1,617	1,418	1,628	-11
Active customers of PII funds, thous.		174	174	172	178	-3
Key figures	13 months	May-21	YTD21	YTD20		FP YTD △ YTD FP
Cost / income ratio (C/I)		59.4%	69.4%	72.6%	70.3%	0.9 pp

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Launch of casco and MTPL insurance products

Financial results, EURt	13 months	May-21	YTD21	YTD20		FP YTD Δ YTD FP
Total revenue, incl.		161	379	0	640	-261
Net earned premiums		201	432	0	1,626	-1,194
Net incurred losses		39	50	0	502	-452
Total expenses		195	712	66	805	-93
Earnings before taxes		-34	-333	-66	-165	-168
Income tax		0	0	0	0	+0
Net profit		-34	-333	-66	-165	-168
Business volumes	13 months	May-21	YTD21	YTD20	FP YTD	A YTD FP
Gross written premium, EURt		314	3,197	0	6,260	-3,063
No of Customers (thous.)		129	129	0	na	na
Key figures	13 months	May-21	YTD21	YTD20	FP YTD	A YTD FP
Net loss ratio		19.2%	11.7%	na	30.9%	19.2 pp
Net expense ratio		97.9%	165.5%	na	79.3%	+ 86.3 pp

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee