LHV Group — Interim / Quarterly Report 2021

Mar 16, 2021

LHV Group

Business volumes growing faster than expected

Financial results, EURt	13 months	Feb-21	YTD21	YTD20		FP YTD A YTD FP
Total revenue, incl.		8,946	18,489	14,655	18,358	+131
Net interest income		6.561	13,278	10,595	13.425	-147
Net fee and commission income		2.474	5.506	4,068	4,583	+923
Total operating expenses		4,304	8,615	7,237	8,930	-315
Earnings before impairment		4,642	9,873	7,418	9,427	+446
Impairment losses on loans		982	1,812	88	1,093	+719
Income tax		578	1,199	178	1.169	+30
Net profit, incl.		3,082	6,863	6,552	7,165	-302
attr. to shareholders		3,003	6,622	6,066	6,744	-122
Business volumes, EURm	13 months	Feb-21	YTD21	YTD20	FP YTD	A YTD FP
Deposits from customers		4,776	4,776	2,845	4.115	+661
Loans (net)		2,280	2,280	1.744	2,221	+59
Assets under management		1,573	1,573	1,374	1,591	-18
Key figures	13 months	Feb-21	YTD21	YTD20	FP YTD	A YTD FP
Cost / income ratio (C/I)		48.1%	46.6%	49.4%	48.6%	2.0 pp
pre-tax ROE*		19.1%	19.4%	20.1%	19.9%	0.5 pp
ROE*		16.2%	16.5%	17.8%	17.0%	0.4 pp
Net interest margin (NIM)		1.6%	1.6%	2.1%	1.7%	0.1 pp -

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High customer activity

Financial results, EURt	13 months	Feb-21	YTD21	YTD20		FP YTD A YTD FP
Total revenue, incl.		8,373	17,179	13,160	16,714	+465
Net interest income		6,691	13,535	10,545	13,568	-33
Net fee and commission income		1,751	3,977	2,580	3,087	+890
Total operating expenses		3,562	7,189	6,127	7,330	-141
Earnings before impairment		4,811	9,989	7,033	9,384	+605
Impairment losses on loans		982	1,812	88	1,093	+719
Income tax		543	1,129	178	1,169	-40
Net profit		3,286	7,049	6,167	7,122	-73
Business volumes, EURm	13 months	Feb-21	YTD21	YTD20	FP YTD	A YTD FP
Deposits from customers		4,804	4,804	2,858	4.136	+668
Loans (net)		2,280	2,280	1,744	2,221	+59
Key figures	13 months	Feb-21	YTD21	YTD20	FP YTD	A YTD FP
Cost / income ratio (C/I)		42.5%	41.9%	46.6%	43.9%	2.0 pp
Net interest margin (NIM)		1.6%	1.6%	2.1%	1.7%	0.1 pp

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LHV Asset Management Significantly less customers leaving the II pillar than in January

Financial results, EURt	13 months	Feb-21	YTD21	YTD20		FP YTD
Total revenue		708	1,578	1,441	1,557	+21
Total expenses		567	1,133	990	1,062	+71
Earnings before taxes		141	445	451	496	-50
Income tax		O	O	O	O	+0
Net profit		141	445	451	496	-50
Business volumes	13 months	Feb-21	YTD21	YTD20		FP YTD △ YTD FP
Assets under management, EURm		1,573	1,573	1,374	1,591	-18
Active customers of PII funds, thous.		179	179	171	177	+2
Key figures	13 months	Feb-21	YTD21	YTD20		FP YTD Δ YTD FP
Cost / income ratio (C/I)		80.1%	71.8%	66.5%	68.2%	+ 3.6 pp

• · Management fees of the largest actively managed LHV funds decreased from 0.6% to 0.576%, fees of LHV index funds almost halved
• · Largest funds L and XL grew by 0.4% and 0.7%, respectively, pension fund Roheline decreased by 2.8%, while Index grew by 2.3%
• · Customers in early retirement pension age and pensionable age leaving the II pillar. The submission pace of applications for money withdrawal slower than predicted
• · Monthly profit 141 EURt, expenses and revenues in line with the financial plan

Preparations for starting with sales activities

Financial results, EURt	13 months	Feb-21	YTD21	YTD20		FP YTD Δ YTD FP
Total revenue, incl.		-1	-3	0	244	-248
Net earned premiums		-1	-4	0	580	-584
Net incurred losses		0	O	0	145	-145
Total expenses		121	236	0	298	-62
Earnings before taxes		-122	-239	0	-54	-185
Income tax		0	0	0	0	+0
Net profit		-122	-239	0	-54	-185
Business volumes	13 months	Feb-21	YTD21	YTD20		FP YTD
Gross written premium		13	17	0	4,325	-4,309
No of Customers		147	147	0	na	na
Key figures	13 months	Feb-21	YTD21	YTD20		FP YTD Δ YTD FP
Net loss ratio		na	na	na	25.0%	na
Net expense ratio		na	na	na	84.3%	na

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee