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LHV Group Interim / Quarterly Report 2023
2219_ip_2023-07-18_80b4f7a7-6067-4821-b8be-692e745d7a40.pdf
Interim / Quarterly Report
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LHV Group
All subsidiaries of LHV Group are profitable
Business volumes are growing as expected
| Financial results, EURt | 9 quarters | Q2-23 | Q1-23 | A quarter |
|---|---|---|---|---|
| Net interest income | 62,900 | 55.108 | +7,792 | |
| Net fee and commission income | 12,352 | 11,877 | +476 | |
| Other income | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -350 | 1,398 | -1,749 |
| Total net income | 74,902 | 68,383 | +6,519 | |
| Total operating expenses | 33,040 | 30,622 | +2,418 | |
| Earnings before impairment | ============================================================================================================================================================================== | 41,862 | 37,761 | +4,101 |
| Impairment losses | ----- | 809 | -1,583 | +2,393 |
| Income tax expense | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 5,422 | 6,281 | -860 |
| Net profit | ============================================================================================================================================================================== | 35,631 | 33,063 | +2,568 |
| Business volumes, EURm | 9 quarters | Q2-23 | Q1-23 | A quarter |
| Deposits from customers | 5,062 | 4,867 | +195 | |
| Loans portfolio (net) | 3.253 | 3.149 | +104 | |
| Assets under management | 1,465 | 1,451 | +14 | |
| Customers, thous. | 575 | 568 | +1 | |
| Fin. intermediaries' payments, thous. pcs | 11,202 | 9.124 | +2,078 | |
| Key figures | 9 quarters | Q2-23 | Q1-23 | A quarter |
| Cost / income ratio (C/I) | 44.1% | 44.8% | - 0.7 pp | |
| Net interest margin (NIM) | 4.1% | 3.6% | + 0.5 pp | |
| pre-tax ROE* | 35.4% | 36.3% | - 1.0 pp | |
| ROE* | 30.7% | 30.4% | + 0.3 pp |
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Strongest quarter in the history
| Financial results, EURt | 13 months | Jun 23 | YTD23 | YTD22 | FP YTD A YTD FP | |
|---|---|---|---|---|---|---|
| Total net income, incl. | 26,328 | 143,285 | 72,687 | 125,615 | +17,671 | |
| Net interest income | 20,953 | 118,008 | 52,972 | 100,472 | +17,537 | |
| Net fee and commission income | 4.456 | 24,229 | 21,351 | 24,864 | -635 | |
| Total operating expenses | 12,299 | 63,662 | 39,946 | 58,341 | +5,321 | |
| Earnings before impairment | 14,029 | 79,623 | 32,741 | 67,273 | +12,349 | |
| Impairment losses | 769 | -114 | 394 | 11,998 | -12,772 | |
| Income tax expense | 1,748 | 11,703 | 5,978 | 9,484 | +2,219 | |
| Net profit, incl. | 11,513 | 68,694 | 26,369 | 45.791 | +22,903 | |
| attr. to shareholders | 11,527 | 68,007 | 25,423 | 45.104 | +22,902 | |
| Business volumes, EURm | 13 months | Jun 23 | YTD23 | YTD22 | FP YTD | A YTD FP |
| Deposits from customers | 5,062 | 5,062 | 5,367 | 5,544 | -481 | |
| Loans (net) | 3,253 | 3,253 | 2,925 | 3,226 | +28 | |
| Assets under management | 1.465 | 1,465 | 1,259 | 1,480 | -16 | |
| Fin. intermediaries' payments, thous. pcs | 3,849 | 20,326 | 13,037 | 14,779 | +5,547 | |
| Key figures | 13 months | Jun 23 | YTD23 | YTD22 | FP YTD | A YTD FP |
| Cost / income ratio (C/I) | 46.7% | 44.4% | 55.0% | 46.4% | - 2.0 pp | |
| Net interest margin (NIM) | 4.1% | 3.8% | 1.6% | 3.1% | + 0.7 pp | |
| pre-tax ROE* | 34.5% | 36.0% | 18.0% | 25.3% | 10.7 pp + |
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| ROE* | 29.9% | 30.7% | 14.7% | 20.9% | + 9.8 pp |
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Deposits and loans again in growth trend
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Quality of loan portfolio stays strong
| Financial results, EURt | 9 quarters | Q2-23 | Q1-23 | A quarter |
|---|---|---|---|---|
| Net interest income | 56,094 | 52,900 | +3,194 | |
| Net fee and commission income | 5.510 | 7.548 | -2.038 | |
| Other income | -224 | 1,212 | -1.436 | |
| Total net income | 61,380 | 61,660 | -280 | |
| Total operating expenses | ============================================================================================================================================================================== | 21,083 | 20,786 | +297 |
| Earnings before impairment | 40,297 | 40,874 | -577 | |
| Impairment losses | ============================================================================================================================================================================== | 603 | -1,592 | +2,195 |
| Income tax expense | 5,247 | 5,147 | +100 | |
| Net profit | ============================================================================================================================================================================== | 34,447 | 37,318 | -2,872 |
| Business volumes, EURm | 9 quarters | Q2-23 | Q1-23 | A quarter |
| Deposits from customers | 5.133 | 4,919 | +213 | |
| incl. banking services' deposits | 1,010 | 1,183 | -174 | |
| Loans (net) | 3,276 | 3.127 | +149 | |
| Customers, thous. | 401 | 391 | +10 | |
| Key figures | 9 quarters | Q2-23 | Q1-23 | △ quarter |
| Cost / income ratio (C/I) | 34.3% | 33.7% | + 0.6 pp | |
| Net interest margin (NIM) | 3.7% | 3.5% | + 0.2 pp | |
| pre-tax ROE* | 36.2% | 42.1% | - 5.8 pp | |
| ROE* | ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������ | 31.4% | 36.8% | - 5.3 pp |
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Income higher than planned
| Financial results, EURt | 13 months | Jun 23 | YTD23 | YTD22 | FP YTD A YTD FP | |
|---|---|---|---|---|---|---|
| Total net income, incl. | 21,614 | 123,040 | 67,252 | 110,613 | +12,427 | |
| Net interest income | 18,667 | 108,994 | 53,106 | 96,187 | +12,807 | |
| Net fee and commission income | 2,071 | 13,058 | 15,433 | 14,359 | -1,300 | |
| Total operating expenses | 8,219 | 41,869 | 30,011 | 38,294 | +3,576 | |
| Earnings before impairment | 13,395 | 81,171 | 37,241 | 72,319 | +8,852 | |
| Impairment losses | 753 | -989 | 394 | 11,766 | -12,755 | |
| Income tax expense | 1.707 | 10,395 | 5.061 | 7,948 | +2,447 | |
| Net profit | 10,935 | 71,765 | 31,787 | 52,606 | +19,159 | |
| Business volumes, EURm | 13 months | Jun 23 | YTD23 | YTD22 | FP YTD | A YTD FP |
| Deposits from customers | 5.133 | 5,133 | 5,425 | 5,526 | -393 | |
| incl. banking services' deposits | 1,010 | 1,010 | 1,755 | 1,600 | -590 | |
| Loans (net) | 3,276 | 3,276 | 2,925 | 3,238 | +38 | |
| Key figures | 13 months | Jun 23 | YTD23 | YTD22 | FP YTD | A YTD FP |
| Cost / income ratio (C/I) | 38.0% | 34.0% | 44.6% | 34.6% | - 0.6 pp | |
| Net interest margin (NIM) | 3.7% | 3.6% | 1.6% | 3.0% | + 0.5 pp | |
| T1 capital adequacy | 20.1% | 20.1% | 15.6% | 19.2% | + 0.9 pp | |
| Total capital adequacy | 22.7% | 22.7% | 18.4% | 21.8% | + 0.9 pp |
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Volumes of funds continue to grow
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Income and profitability in slight growth trend
| uuendada | uuendada | ||
|---|---|---|---|
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First half of the year largely in line with the financial plan
| Financial results, EURt | 13 months | Jun 23 | YTD23 | YTD22 | FP YTD | A YTD FP |
|---|---|---|---|---|---|---|
| Total net income | 730 | 4,336 | 3,959 | 4,302 | +35 | |
| Total operating expenses | 581 | 3,520 | 3,700 | 3,484 | +35 | |
| EBIT | 149 | 817 | 258 | 817 | -1 | |
| Net financial income | 87 | 179 | -308 | 299 | -120 | |
| Income tax expense | 0 | 488 | 830 | 488 | -0 | |
| Net profit | 236 | 508 | -880 | 628 | -120 | |
| Business volumes | 13 months | Jun 23 | YTD23 | YTD22 | FP YTD | A YTD FP |
| Assets under management, EURm | 1,465 | 1,465 | 1,259 | 1,480 | -16 | |
| Active customers of PII funds, thous. | 128 | 128 | 131 | 132 | -3 | |
| Key figures | 13 months | Jun 23 | YTD23 | YTD22 | FP YTD | A YTD FP |
| Cost / income ratio (C/I) | 71.1% | 77.9% | 101.4% | 75.7% | + 2.2 pp |
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A quarter with positive result
| Financial results, EURt | 9 quarters | Q2-23 | Q1-23 | A quarter |
|---|---|---|---|---|
| Total net income | 1,260 | 552 | +708 | |
| Total expenses | ============================================================================================================================================================================== | 1,220 | 1,031 | +188 |
| Technical result | 40 | -479 | +519 | |
| Net investments income | -4 | 32 | -35 | |
| Other operating income and expenses | -3 | -3 | -0 | |
| Net profit | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | રૂડિ | -450 | +484 |
| Business volumes, EURt | 9 quarters | II kv-23 | 1 kv-23 | A kvartal |
| Gross written premiums | 7,978 | 7,712 | +266 | |
| No of Customers (thous.) | 159 | 155 | +4 | |
| Key figures | 9 quarters | II kv-23 | l kv-23 | A kvartal |
| Net loss ratio | 66.6% | 78.0% | 11.4 pp | |
| Net expense ratio | 33.4% | 33.4% | 0.1 pp |
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| pre-tax ROE | 3.0% | -38.0% | + 41.0 pp | |
| ROE | 3.0% | -38.0% | + 41.0 pp |
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Steady growth in volumes continues
| Financial results, EURt | 13 months | Jun 23 | YTD23 | YTD22 | FP YTD A YTD FP | |
|---|---|---|---|---|---|---|
| Total net income, incl. | 478 | 1,812 | 627 | 1,927 | -116 | |
| Net earned premiums | 1,927 | 10,038 | 2,911 | 8,546 | +1,492 | |
| Net incurred losses | 1,235 | 7,200 | 2,075 | 5,825 | +1,375 | |
| Other net income | 213 | 1,027 | 209 | 794 | +232 | |
| Total expenses | 476 | 2,251 | 1,361 | 2,085 | +166 | |
| Technical result | 2 | -439 | -734 | -157 | -282 | |
| Net investment income | 10 | 28 | 1 | 27 | +1 | |
| Other operating income and expenses | 2 | 6 | 1 | 0 | +6 | |
| Net profit | 10 | -417 | -734 | -130 | -286 | |
| Business volumes, EURt | 13 months | Jun 23 | YTD23 | YTD22 | FP YTD | A YTD FP |
| Gross written premiums | 2,780 | 15,690 | 6,359 | 12,518 | +3,171 | |
| No of customers (thous.) | 159 | 159 | 149 | na | na | |
| Key figures | 13 months | Jun 23 | YTD23 | YTD22 | FP YTD | A YTD FP |
| Net loss ratio | 64.1% | 71.7% | 71.3% | 68.2% | + 3.6 pp | |
| Net expense ratio | 36.1% | 33.4% | 53.9% | 33.7% | - 0.3 pp |
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First quarter as a bank profitable
| Financial results, EURt | 9 quarters | Q2-23 | Q1-23 | A quarter |
|---|---|---|---|---|
| Total net income, incl. | 9,561 | 3,462 | +6,099 | |
| Net interest income | 7,418 | 2,763 | +4,655 | |
| Net fee and commission income | 2,209 | 699 | +1.509 | |
| Other net income | -66 | -1 | -65 | |
| Total operating expenses | 7,957 | 5,965 | +1,992 | |
| Earnings before impairment | 1,604 | -2,503 | +4,107 | |
| Impairment losses | 26 | 8 | +18 | |
| Net profit | 1,578 | -2,512 | +4,089 | |
| Business volumes, EURm | Q2-23 | Q1-23 | A quarter | |
| Loans (net) | 31 | 23 | +8 |
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Higher interest rates are supporting income growth and profitability
| uuendada | |||
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6 months
Annexes
Strong quality of the portfolio
LHV Finance loans overdue porfolio Retail banking loans overdue portfolio
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LHV capitalisation and liquidity is strong
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Share information
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Madis Toomsalu [email protected]
Meelis Paakspuu [email protected]