LHV Group — Interim / Quarterly Report 2023

Mar 14, 2023

LHV Group

Uncertainty in economic environment continues

Financial results, EURt	13 months	Feb 23	YTD23	YTD22		FP YTD
Total revenue, incl.		21,457	43,343	21,673	37,626	+5,717
Net interest income		17.545	34,879	16,497	29.817	+5,062
Net fee and commission income		3.824	7,789	6.458	7,721	+68
Total operating expenses		12,521	21,695	12,085	18,910	+2,785
Earnings before impairment		8,935	21,649	9,588	18,716	+2,933
Impairment losses		-1,660	-1.513	-104	3.401	-4,914
Income tax expense		1,725	3,589	1,547	2,734	+854
Net profit, incl.		8,870	19,573	8,145	12,580	+6,992
attr. to shareholders		8,853	19,465	7,883	12,423	+7,042
Business volumes, EURm	13 months	Feb 23	YTD23	YTD22	FP YTD	A YTD FP
Deposits from customers		4,916	4,916	5,479	5,175	-259
Loans (net)		3.147	3,147	2,733	3.187	-40
Assets under management		1,434	1,434	1,327	1,425	+9
Banking Services payments, thous. pcs		2,805	5,754	4,257	4,423	+1,331
Key figures	13 months	Feb 23	YTD23	YTD22	FP YTD	A YTD FP
Cost / income ratio (C/I)		58.4%	50.1%	55.8%	50.3%	- 0.2 pp
Net interest margin (NIM)		3.7%	3.5%	1.5%	3.0%	+ 0.6 pp
pre-tax ROE*		32.1%	32.7%	17.5%	21.7%	+ 11.0 pp
ROE*		26.9%	27.6%	14.8%	17.7%	+ 9.9 pp
ROA		1.9%	2.0%	0.7%	1.2%	+ 0.7 pp

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Growth in loan portfolio slows down, competition for deposits increases

Financial results, EURt	13 months	Feb 23	YTD23	YTD22		FP YTD A YTD FP
Total revenue, incl.		20,397	40,860	20,220	35,763	+5,098
Net interest income		17,639	35,075	16,607	30.418	+4,657
Net fee and commission income		2,593	5,319	4,842	5,324	-5
Total operating expenses		9,526	15,767	9,398	13,149	+2,619
Earnings before impairment		10,871	25,093	10,822	22,614	+2,479
Impairment losses		-1,795	-1,649	-104	3,401	-5,050
Income tax expense		1,684	3,507	1,466	2,653	+854
Net profit		10,983	23,235	9,460	16,560	+6,675
Business volumes, EURm	13 months	Feb 23	YTD23	YTD22		FP YTD A YTD FP
Deposits from customers		4,974	4,974	5,507	5,222	-248
Loans (net)		3,127	3,127	2,733	3,203	-76
Key figures	13 months	Feb 23	YTD23	YTD22		FP YTD A YTD FP
Cost / income ratio (C/I)		46.7%	38.6%	46.5%	36.8%	+ 1.8 pp
Net interest margin (NIM)		3.8%	3.6%	1.5%	3.0%	+ 0.5 pp

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Compared to January significantly more modest month on the markets

Financial results, EURt	13 months	Feb 23	YTD23	YTD22	FP YTD	A YTD FP
Total revenue		671	1,380	1,256	1,365	+15
Total operating expenses		528	1,080	1,097	1,124	-45
EBIT		142	301	159	241	+59
Net financial income		-77	194	-48	08	+95
Income tax expense		0	0	0	0	+0
Net profit		65	495	112	340	+155
Business volumes	13 months	Feb 23	YTD23	YTD22	FP YTD	A YTD FP
Assets under management, EURm		1.434	1,434	1,327	1,425	+9
Active customers of PII funds, thous.		130	130	135	131	-1
Key figures	13 months	Feb 23	YTD23	YTD22		FP YTD A YTD FP
Cost / income ratio (C/I)		89.0%	68.6%	90.8%	76.8%	- 8.2 pp

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4

A stable gowth in volumes continues

uuenda

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Continued selling corporate loans

Financial results, EURt	13 months	Feb 23	YTD23	YTD22		FP YTD A YTD FP
Total revenue, incl.		80	164	-3	275	-111
Net interest income		80	166	0	275	-109
Other net income			-1	-3	O
Total operating expenses		1,776	3.411	1,011	3,401	+9
Earnings before impairment		-1,695	-3,247	-1,014	-3,126	-121
Impairment losses		136	136	0	O	+136
Net profit		-1,831	-3,383	-1,014	-3,126	-256
Business volumes, EURm	13 months	Feb 23	YTD23	YTD22		FP YTD A YTD FP
Loans (net)		21	21	0	21	-0

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee