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LHV Group Interim / Quarterly Report 2021

Apr 20, 2021

2219_ip_2021-04-20_a31f2ae5-4961-48ec-9f79-c8e293b49231.pdf

Interim / Quarterly Report

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LHV Group

Quarter with decent growth in business volumes

For customers

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Other

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All-time high quarterly results, excluding performance fee

Financial results, EURt	9 quarters	$Q1 - 21$	Q4-20	$\Delta$ quarter
Net interest income	. . .	20,372	19,893	$+478$
Net fee and commission income	a a se a se film	8,640	14,183	$-5,543$
Other income	_	$-246$	1,373	$-1,619$
Total revenue	. 1 . .	28,765	35,449	$-6,684$
Total expenses	.	13,760	11,427	$+2,333$
Earnings before impairment	a a a a san An	15,005	24,023	$-9,018$
Impairment losses on loans	_ __	1,601	2,243	$-642$
Income tax expense	a do de la cidad	1,988	3,741	$-1,753$
Net income	anna an Eir	11,417	18,039	$-6,623$
Business volumes, EURm	9 quarters	$Q1 - 21$	Q4-20	$\Delta$ quarter
Deposits from customers		4,734	4,120	$+614$
Loans (net)	.	2,304	2,209	$+96$
Assets under management		1,587	1,537	$+50$
Customers, thous.		469	411	$+58$
Key figures	9 quarters	$Q1 - 21$	Q4-20	$\Delta$ quarter
Cost / income ratio (C/I)	.	47.8%	32.2%	$+15.6$ pp
pre-tax ROE*	an an an Ailt	21.3%	36.1%	$-14.8$ pp
ROE*	ana ang Kin	18.2%	31.3%	$-13.1$ pp

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Net profit ahead of financial plan by +0.9 EURm

Financial results, EURt	13 months	Mar-21	YTD21	YTD ₂₀	FP YTD	Δ YTD FP
Total revenue, incl.		10,277	28,765	22,477	27,734	$+1,031$
Net interest income		7,094	20,372	16,323	20,347	$+24$
Net fee and commission income		3,134	8,640	6,507	6,863	$+1,777$
Total operating expenses		5,145	13,760	11,174	13,495	$+265$
Earnings before impairment		5,132	15,005	11,303	14,239	$+766$
Impairment losses on loans		$-211$	1,601	1,011	1,954	$-353$
Income tax		789	1,988	2,809	1,732	$+255$
Net profit, incl.		4,554	11,417	7,484	10,553	$+863$
attr. to shareholders		4,421	11,043	7,079	10,324	$+719$

Business volumes, EURm	13 months	Mar-21	YTD21	YTD20	FP YTD	Δ YTD FP
Deposits from customers		4,734	4,734	2,953	4,091	$+643$
Loans (net)		2,304	2,304	1,739	2,253	$+51$
Assets under management		1,587	1,587	1,344	1,599	$-12$
Key figures	13 months	Mar-21	YTD21	YTD ₂₀	FP YTD	Δ YTD FP
Cost / income ratio (C/I)		50.1%	47.8%	49.7%	48.7%	$-0.8$ pp
pre-tax ROE*		24.8%	21.3%	19.0%	19.4%	$+1.9$ pp
ROE*		21.2%	18.2%	14.0%	17.2%	$+1.0$ pp
Net interest margin (NIM)		1.5%	1.5%	2.2%	1.7%	$-0.1$ pp

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Deposits volume close to 5 EURb and loans volume 2.3 EURb

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High customer activity and very high quality of loan portfolio

Financial results, EURt	9 quarters	$Q1 - 21$	Q4-20	$\Delta$ quarter
Net interest income	. .	20,757	20,420	$+337$
Net fee and commission income	--------	6,365	5,719	$+646$
Other income	--- - -".	$-437$	1,079	$-1,516$
Total revenue	---------	26,684	27,218	$-534$
Total expenses	.	11,448	9,260	$+2,188$
Earnings before impairments	a a como Mil	15,237	17,958	$-2,721$
Impairment losses on loans	_____ _ ___	1,601	2,243	$-642$
Income tax expense	a sa shekarar 19	1,874	2,709	$-835$
Net income	. . .	11,762	13,005	$-1,244$
Business volumes, EURm	9 quarters	$Q1 - 21$	Q4-20	$\Delta$ quarter
Deposits from customers		4,766	4,141	$+625$
Loans (net)	-------	2,304	2,209	$+96$
Customers, thous.		296	282	$+14$
Key figures	9 quarters	$Q1 - 21$	Q4-20	$\Delta$ quarter
Cost / income ratio (C/I)	La Bara	42.9%	34.0%	$+8.9$ pp
pre-tax ROE*	an an Lith	24.6%	29.3%	$-4.8$ pp
ROE*	.	21.2%	25.5%	$-4.3$ pp
Net interest margin	.	1.6%	1.8%	$-0.3$ pp

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Net profit ahead of financial plan by +1.2 EURm

Financial results, EURt	13 months	Mar-21	YTD21	YTD ₂₀	FP YTD	YTD FP Δ
Total revenue, incl.		9,505	26,684	20,547	25,240	$+1,444$
Net interest income		7,222	20,757	16,248	20,565	$+191$
Net fee and commission income		2,388	6,365	4,334	4,587	$+1,778$
Total operating expenses		4,258	11,448	9,432	10,963	$+485$
Earnings before impairment		5,247	15,237	11,115	14,278	$+959$
Impairment losses on loans		$-211$	1,601	1,011	1,954	$-353$
Income tax		745	1,874	1,964	1,732	$+142$
Net profit		4,713	11,762	8,140	10,592	$+1,170$
Business volumes, EURm	13 months	Mar-21	YTD21	YTD20	FP YTD	Δ YTD FP
Deposits from customers		4,766	4,766	2,958	4,122	$+645$
Loans (net)		2,304	2,304	1,739	2,253	$+51$
Key figures	13 months	Mar-21	YTD21	YTD20	FP YTD	Δ YTD FP
Cost / income ratio (C/I)		44.8%	42.9%	45.9%	43.4%	$-0.5$ pp
T1 capital adequacy		15.0%	15.0%	14.1%	14.0%	$+1.0$ pp
Total capital adequacy		18.2%	18.2%	17.6%	17.3%	$+0.9$ pp
Net interest margin (NIM)		1.5%	1.6%	2.1%	1.7%	$-0.1$ pp

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Continuing growth in fund volumes, slight drop in number of customers

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Net profit affected by dividend related income tax

Financial results, EURt	9 quarters	$Q1 - 21$	Q4-20	$\Delta$ quarter
Total revenue	. . .	2,307	8,464	$-6,157$
Total expenses	.	1,755	1,686	$+69$
EBIT	------- I -	553	6,778	$-6,226$
Net financial income	---- _- L---	113	305	$-192$
Income tax expense	× H.	1,241	$\Omega$	$+1,241$
Net profit	_ _	$-576$	7,084	$-7,659$

Business volumes	9 quarters	$Q1 - 21$	$Q4-20$	$\Delta$ quarter
Pillar II pension funds	.	1,547	1,502	$+45$
Pillar III pension funds	.	36	31	$+4$
Eurofunds	. .	5	4	$+1$
Active customers of PII funds, th.		177	180	-3

Key figures	9 quarters	$Q1 - 21$	Q4-20	$\Delta$ quarter
Cost / income ratio (C/I)	.	72.5%	19.9%	$+52.6$ pp
pre-tax ROE	------- I I.	9.0%	95.5%	$-86.5$ pp
ROE	------ 1 -	$-7.7\%$		$95.5\% - 103.2$ pp

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Less people leaving II pillar in September than planned

Financial results, EURt	13 months	Mar-21	YTD21	YTD20	FP YTD	YTD FP
Total revenue		842	2,420	1,846	2,367	$+53$
Total expenses		622	1,755	1,565	1,685	$+70$
Earnings before taxes		220	666	281	683	$-17$
Income tax		1,241	1,241	844	1,241	$+0$
Net profit		$-1,021$	$-576$	$-563$	$-559$	$-17$

Business volumes	13 months	Mar-21	YTD21	YTD20	FP YTD	Δ YTD FP
Assets under management, EURm		1,587	1,587	1,344	1,599	$-12$
Active customers of PII funds, thous.		177	177	172	178	$-1$
Key figures	13 months	Mar-21	YTD21	YTD ₂₀	FP YTD	YTD FP $\Lambda$
Cost / income ratio (C/I)		73.9%	72.5%	72.0%	71.2%	$+1.3$ pp

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Volume of gross written premium 2.1 EURm, rapid growth in number of customers

Financial results, EURt	13 months	Mar-21	YTD21	YTD20	FP YTD	Δ YTD FP
Total revenue, incl.		93	89	0	366	$-277$
Net earned premiums		94	91	0	875	$-784$
Net incurred losses				0	221	$-219$
Total expenses		129	365	0	455	-90
Earnings before taxes		$-36$	-276	$\mathbf{0}$	-89	$-187$
Income tax		0	O	Ω	O	$+0$
Net profit		$-36$	-276	$\mathbf 0$	$-89$	$-187$
Business volumes	13 months	Mar-21	YTD21	YTD20	FP YTD	YTD FP
Gross written premium, EURt		2,119	2,136	0	4,642	$-2,506$
No of Customers		128	128	0	na	na
Key figures	13 months	Mar-21	YTD21	YTD20	FP YTD	Δ YTD FP
Net loss ratio		1.4%	1.4%	na	25.2%	$-23.8$ pp
Net expense ratio		137.4%	403.1%	na		$84.9\% + 318.2$ pp

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Annexes

Liquidity and capitalization strong as planned

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The debt ratio on historically lowest level

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Stock information

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Madis Toomsalu [email protected]

Meelis Paakspuu [email protected]