LHV Group — Interim / Quarterly Report 2022

Mar 15, 2022

LHV Group

Loan portfolio increasing, while customer activity average

Financial results, EURt	13 months	Feb-22	YTD22	YTD21		FP YTD A YTD FP
Total revenue, incl.		9,996	21,673	18,489	25,561	-3,888
Net interest income		7,821	16.497	13,278	16.999	-502
Net fee and commission income		3,174	6.458	5,503	8,357	-1,899
Total operating expenses		6,208	12,085	8,615	12,006	+79
Earnings before impairment		3,788	9,588	9,873	13,555	-3,967
Impairment losses on loans		-153	-104	1,812	1.477	-1,581
Income tax		715	1,547	1,199	1,904	-357
Net profit, incl.		3,226	8,145	6,863	10,173	-2,029
attr. to shareholders		3,116	7,883	6,622	9,878	-1,996
Business volumes, EURm	13 months	Feb-22	YTD22	YTD21	FP YTD	A YTD FP
Deposits from customers		5,479	5,479	4,776	5.489	-10
Loans (net)		2,733	2.733	2,280	2.718	+15
Assets under management		1,327	1,327	1,573	1,333	-6
Fin. intermediaries' payments, thous. pcs		2,025	4,257	4,356	4,856	-599
Key figures	13 months	Feb-22	YTD22	YTD21	FP YTD	A YTD FP
Cost / income ratio (C/I)		62.1%	55.8%	46.6%	47.0%	+ 8.8 pp
Net interest margin (NIM)		1.5%	1.5%	1.6%	1.6%	- 0.1 pp
pre-tax ROE*		15.3%	17.5%	19.4%	21.3%	- 3.8 pp
ROE*		12.6%	14.8%	16.5%	18.4%	- 3.7 pp
ROA		0.6%	0.7%	0.8%	0.9%	- 0.2 pp

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Revenue base affected by geopolitical situation

Financial results, EURt	13 months	Feb-22	YTD22	YTD21		FP YTD
Total revenue, incl.		9,130	20,220	17,179	23,673	-3,453
Net interest income		7,876	16,607	13,535	17,093	-486
Net fee and commission income		2,348	4,842	3,977	6,454	-1,612
Total operating expenses		4,586	9,398	7,189	9,265	+133
Earnings before impairment		4,544	10,822	9,989	14,408	-3,586
Impairment losses on loans		-153	-104	1,812	1,477	-1,581
Income tax		675	1,466	1,129	1,823	-357
Net profit		4,022	9,460	7,049	11,108	-1,648
Business volumes, EURm	13 months	Feb-22	YTD22	YTD21	FP YTD	A YTD FP
Deposits from customers		5,507	5,507	4,804	5,521	-15
Loans (net)		2,733	2,733	2,280	2,718	+15
Key figures	13 months	Feb-22	YTD22	YTD21		FP YTD A YTD FP
Cost / income ratio (C/I)		50.2%	46.5%	41.9%	39.1%	+ 7.3 pp
Net interest margin (NIM)		1.5%	1.5%	1.6%	1.6%	0.1 pp

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Funds' returns good despite a challenging month

Financial results, EURt	13 months	Feb-22	YTD22	YTD21		FP YTD
Total revenue		621	1,256	1,529	1,251	+6
Total expenses		566	1,097	1,133	1,141	-44
Operating profit		55	159	396	109	+50
Net financial income		89	-48	49	88	-135
Net profit		144	112	445	197	-85
Business volumes	13 months	Feb-22	YTD22	YTD21	FP YTD	A YTD FP
Assets under management, EURm		1,327	1,327	1,573	1,333	-6
Active customers of PII funds, thous.		135	135	179	136	-1
Key figures	13 months	Feb-22	YTD22	YTD21		FP YTD Δ YTD FP
Cost / income ratio (C/I)		79.8%	90.8%	71.8%	85.3%	+ 5.5 pp

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Growing business volumes, Covid-19 impact on travel insurance claims lasts

Financial results, EURt	13 months	Feb-22	YTD22	YTD21		FP YTD △ YTD FP
Total revenue, incl.		65	65	-3	337	-272
Net earned premiums		398	793	-4	766	+27
Net incurred losses		318	682	0	374	+308
Total expenses		220	418	236	425	-7
Earnings before taxes		-155	-353	-239	-88	-265
Net profit		-155	-353	-239	-88	-265
Business volumes	13 months	Feb-22	YTD22	YTD21	FP YTD	A YTD FP
Gross written premium, EURt		546	1,067	17	1,492	-425
No of Customers (thous.)		145	145	0	na	na
Key figures	13 months	Feb-22	YTD22	YTD21	FP YTD	A YTD FP
Net loss ratio		79.8%	85.9%	na	48.8%	+ 37.2 pp
Net expense ratio		62.1%	59.9%	na	63.0%	3.1 pp

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee