LHV Group — Interim / Quarterly Report 2022

May 10, 2022

LHV Group

Activity of customers increasing

Financial results, EURt	13 months	Apr 22	YTD22	YTD21		FP YTD Δ YTD FP
Total revenue, incl.		12,238	47,023	38.661	52,344	-5,321
Net interest income		8.968	34.755	27.429	34,877	-122
Net fee and commission income		3.405	13,751	11,489	17,049	-3,298
Total expenses		6,456	25,322	18,666	25,328	-6
Earnings before impairment		5,782	21,701	19,994	27,017	-5,316
Impairment losses on loans		-357	378	1,601	3.061	-2,683
Income tax expense		ପିରିଟି	3,768	2,778	4,169	-401
Net income, incl.		5,173	17,556	15,616	19,787	-2,231
attr. to shareholders		5,088	16,968	15,121	19,171	-2,203
Business volumes, EURm	13 months	Apr 22	YTD22	YTD21	FP YTD	A YTD FP
Deposits from customers		5,284	5,284	4,701	5,612	-327
Loans (net)		2,801	2,801	2,321	2.779	+23
Assets under management		1,364	1,364	1,595	1,364	+0
Fin. intermediaries' payments, thous. pcs		2,092	8,684	8,961	10,195	-1,511
Key figures	13 months	Apr 22	YTD22	YTD21	FP YTD	A YTD FP
Cost / income ratio (C/I)		52.8%	53.9%	48.3%	48.4%	+ 5.5 pp
Net interest margin (NIM)		1.7%	1.6%	1.5%	1.6%	- 0.0 pp
pre-tax ROE*		22.1%	19.1%	22.1%	21.1%	2.0 pp
ROE*		18.7%	15.7%	18.8%	17.9%	2.2 pp
ROA		1.0%	0.8%	0.9%	0.9%	0.1 pp

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Recovery in loan portfolio growth

Financial results, EURt	13 months	Apr 22	YTD22	YTD21		FP YTD Δ YTD FP
Total revenue, incl.		11,293	43,526	35,792	48,356	-4,830
Net interest income		8,945	34,820	27,943	35,004	-184
Net fee and commission income		2,394	10,184	8,237	13,102	-2,918
Total expenses		4,644	19,022	15,472	19,162	-140
Earnings before impairment		6,649	24,504	20,320	29,193	-4,690
Impairment losses on loans		-357	378	1,601	3,061	-2,683
Income tax expense		926	3,194	2,629	3,596	-401
Net income		6,081	20,931	16,090	22,537	-1,606
Business volumes, EURm	13 months	Apr 22	YTD22	YTD21	FP YTD	A YTD FP
Deposits from customers		5,304	5,304	4,727	5,636	-332
Loans (net)		2,801	2,801	2,321	2,779	+23
Key figures	13 months	Apr 22	YTD22	YTD21	FP YTD	A YTD FP
Cost / income ratio (C/I)		41.1%	43.7%	43.2%	39.6%	+ 4.1 pp
Net interest margin (NIM)		1.7%	1.6%	1.6%	1.6%	0.0 pp

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Stock markets falling, pension funds L and M retained its' value

Financial results, EURt	13 months	Apr 22	YTD22	YTD21		FP YTD Δ YTD FP
Total revenue		690	2,649	3,066	2,617	+32
Total operating expenses		664	2,541	2,318	2,345	+196
EBIT		26	108	747	272	-164
Net financial income		-90	13	149	176	-164
Income tax expense		0	830	1,241	830	+0
Net income		-64	-710	-345	-382	-328
Business volumes	13 months	Apr 22	YTD22	YTD21		FP YTD △ YTD FP
Assets under management, EURm		1,364	1,364	1,595	1,364	+0
Active customers of PII funds, thous.		135	135	175	135	-0
Key figures	13 months	Apr 22	YTD22	YTD21	FP YTD	A YTD FP
Cost / income ratio (C/I)		110.6%	95.5%	72.1%	83.9%	11.5 pp +
Funds average return		-0.4%	1.9%	3.6%	2.2%	- 0.3 pp

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Growing business volumes, customer satisfaction remains high

Financial results, EURt	13 months	Apr 22	YTD22	YTD21		FP YTD Δ YTD FP
Total revenue, incl.		45	187	218	697	-510
Net earned premiums		492	1,755	230	1,687	+68
Net incurred losses		412	1,442	12	863	+579
Total expenses		236	878	517	ರಿನ ಕಿರಿ	-81
Technical result		-191	-691	-299	-262	-429
Net investments income		10	11	0	11	+1
Net income		-182	-680	-298	-252	-428
Business volumes	13 months	Apr 22	YTD22	YTD21	FP YTD	A YTD FP
Gross written premium, EURt		1,926	3,674	2,882	3,983	-310
No of Customers (thous.)		148	148	127	na	na
Key figures	13 months	Apr 22	YTD22	YTD21	FP YTD	A YTD FP
Net loss ratio		83.7%	82.1%	5.1%	51.1%	+ 31.0 pp
Net expense ratio		55.2%	57.2%	224.6%	64.4%	- 7.2 pp

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee