LHV Group — Interim / Quarterly Report 2022

Sep 13, 2022

LHV Group

Impairment of investment and strong outlook for interest income growth

Financial results, EURt	13 months	Aug 22	YTD22	YTD21	FP YTD	△ YTD FP
Total revenue, incl.		14,306	100,922	85,074	107,878	$-6,956$
Net interest income		10,615	73,538	60,099	71,933	$+1,605$
Net fee and commission income		3,572	28,487	24,740	35,067	$-6,581$
Total operating expenses		6,672	54,530	40,487	53,691	$+839$
Earnings before impairment		7,635	46,392	44,587	54,187	$-7,795$
Impairment losses		3,116	3,362	2,856	6,189	$-2,827$
Income tax expense		1,242	8,128	6,541	8,051	$+76$
Net income, incl.		3,277	34,902	35,190	39,947	$-5,045$
attr. to shareholders		3,087	33,603	33,984	38,595	$-4,992$
Business volumes, EURm	13 months	Aug 22	YTD22	YTD21	FP YTD	Δ YTD FP
Deposits from customers		5,189	5,189	5,207	5,859	$-670$
Loans (net)		3,017	3,017	2,479	2,939	$+79$
Assets under management		1,308	1,308	1,654	1,359	$-50$
Fin. intermediaries' payments, thous. pcs		1,926	16,970	17,671	22,677	$-5,707$
Key figures	13 months	Aug 22	YTD22	YTD21	FP YTD	Δ YTD FP
Cost / income ratio (C/I)		46.6%	54.0%	47.6%	49.8%	$+4.3$ pp
Net interest margin (NIM)		2.0%	1.7%	1.6%	1.6%	$+0.1$ pp
pre-tax ROE*		13.1%	17.7%	24.0%	19.6%	$-1.9$ pp
ROE*		9.4%	14.3%	20.3%	16.8%	$-2.4$ pp
ROA		0.6%	0.8%	0.9%	0.9%	$-0.1$ pp

• •
• •
• •
• •
• •
• •
• •

Loan portfolio exceeded 3 billion euros

Financial results, EURt	13 months	Aug 22	YTD 22	YTD21	FP YTD	YTD FP
Total revenue, incl.		13,257	92,996	77,956	99,443	$-6,447$
Net interest income		10,630	73,629	60,232	72,129	$+1,500$
Net fee and commission income		2,499	20,379	17,876	26,812	$-6,434$
Total operating expenses		5,364	40,581	30,043	40,469	$+112$
Earnings before impairment		7,894	52,414	47,913	58,974	$-6,560$
Impairment losses on loans and bonds		116	362	2,856	6,189	$-5,827$
Income tax expense		1,202	7,129	6,252	7,315	$-187$
Net income		6,577	44,924	38,804	45,470	$-546$
Business volumes, EURm	13 months	Aug 22	YTD22	YTD21	FP YTD	Δ YTD FP
Deposits from customers		5,246	5,246	5,227	5,903	$-658$
Loans (net)		3,018	3,018	2,479	2,939	$+79$
Key figures	13 months	Aug 22	YTD22	YTD21	FP YTD	Δ YTD FP
Cost / income ratio (C/I)		40.5%	43.6%	38.5%	40.7%	$+2.9$ pp
Net interest margin (NIM)		2.0%	1.7%	1.6%	1.6%	$+0.1$ pp

• •
• •
• •
• •

Weaker month on stock markets, LHV pension funds held value

Financial results, EURt	13 months	Aug 22	YTD22	YTD21	FP YTD	YTD FP
Total revenue		677	5,297	6,220	5,341	$-43$
Total operating expenses		566	4,863	7,579	4,526	$+337$
EBIT		111	434	$-1,359$	815	$-381$
Net financial income		$-15$	$-45$	420	357	$-402$
Income tax expense		0	830	1,241	830	$+0$
Net income		96	$-441$	$-2,180$	342	$-782$
Business volumes	13 months	Aug 22	YTD22	YTD21	FP YTD	YTD FP
Assets under management, EURm		1,308	1,308	1,654	1,359	$-50$
Active customers of PII funds, thous.		132	132	175	130	$+2$
Key figures	13 months	Aug 22	YTD 22	YTD21	FP YTD	Δ YTD FP
Cost / income ratio (C/I)		85.5%	92.6%	114.1%	79.4%	$+13.2$ pp
Funds average return		$-0.4%$	$-0.3%$	6.9%	4.5%	$-4.7$ pp

• •
• •
• •
• •
• •

Rapidly growing business volumes support improvement in efficiency

Financial results, EURt	13 months	Aug 22	YTD22	YTD21	FP YTD	YTD FP
Total revenue, incl.		115	919	725	1,648	$-729$
Net earned premiums		788	4,407	1,065	4,323	$+84$
Net incurred losses		608	3,151	314	2,366	$+785$
Total expenses		234	1,807	1,243	1,967	$-160$
Technical result		$-119$	-888	$-518$	$-319$	$-569$
Net investments income		9	8	O	57	-49
Net income		$-111$	-883	$-517$	$-262$	$-620$
Business volumes	13 months	Aug 22	YTD22	YTD21	FP YTD	YTD FP Δ
Gross written premiums, EURt		1,539	9,384	4,688	7,689	$+1,695$
No of Customers (thous.)		149	149	136	na	na
Key figures	13 months	Aug 22	YTD22	YTD21	FP YTD	YTD FP Δ
Net loss ratio		77.2%	71.5%	29.5%	54.7%	$+16.8$ pp
Net expense ratio		37.9%	48.7%	119.2%	52.7%	$-4.0$ pp

• •
• •
• •
• •

Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee