Interim Report January – June 2024 Summary of Results

Q2 2024 in comparison with Q1 2024

Net profit EUR 38.6 m (EUR 40.7 m), of which EUR 38.3 m (EUR 40.5 m) is attributable to owners of the parent
Earnings per share EUR 0.12 (EUR 0.13)
Net income EUR 87.3 m (EUR 85.4 m)
Operating expenses EUR 37.6 m (EUR 35.5 m)
Loan and bond provisions EUR 5.0 m (EUR 2.9 m)
Income tax expenses EUR 6.1 m (EUR 6.2 m)
Return on equity 25.8% (28.5%)
Capital adequacy 20.9% (21.7%)

Q2 2024 in comparison with Q2 2023

Net profit EUR 38.6 m (EUR 35.6 m), of which EUR 38.3 m (EUR 35.4 m) is attributable to owners of the parent
Earnings per share EUR 0.12 (EUR 0.11)
Net income EUR 87.3 (EUR 74.9 m)
Operating expenses EUR 37.6 m (EUR 33.0 m)
Loan and bond provisions EUR 5.0 m (EUR 0.8 m)
Income tax expenses EUR 6.1 m (EUR 5.4 m)
Return on equity 25.8% (30.7%)
Capital adequacy 20.9% (23.8%)

Earnings per share and return on equity ratios are based on the profit attributed to the shareholders and equity of AS LHV Group and do not include non-controlling interest.

Summary of financial results 3
Operating Environment 7
The Group's Liquidity, Capitalisation and Asset Quality 10
Overview of AS LHV Pank Consolidation Group 13
Overview of LHV Bank Limited 16
Overview of AS LHV Varahaldus 17
Overview of AS LHV Kindlustus 19
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 20
Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income20
Condensed Consolidated Interim Statement of Financial Position21
Condensed Consolidated Interim Statement of Cash Flows22
Condensed Consolidated Interim Statement of Changes in Equity23
Notes to the Condensed Consolidated Interim Financial Statements 24
NOTE 1 Accounting Policies 24
NOTE 2 Business Segments24
NOTE 3 Risk Management 27
NOTE 4 Breakdown of Financial Assets and Liabilities by Countries27
NOTE 5 Breakdown of Assets and Liabilities by Contractual Maturity Dates 28
NOTE 6 Open Foreign Currency Positions29
NOTE 7 Fair Value of Financial Assets and Liabilities30
NOTE 8 Breakdown of Loan Portfolio by Economic Sectors and by Stages 31
NOTE 9 Net Interest Income32
NOTE 10 Net Fee and Commission Income33
NOTE 11 Operating Expenses33
NOTE 12 Balances with the Central Bank, Credit Institutions and Investment Companies 33
NOTE 13 Deposits of Customers and Loans Received 34
NOTE 14 Accounts payable and other liabilities35
NOTE 15 Contingent Liabilities 35
NOTE 16 Basic Earnings and Diluted Earnings Per Share35
NOTE 17 Capital Management 36
NOTE 18 Transactions with related parties 36
NOTE 19 Tangible and intangible assets 38
NOTE 20 Subordinated debts 39
NOTE 21 Changes in impairments39
Supervisory Boards and Management Boards of AS LHV Group and its Subsidiaries 41
Signatures of the Management Board to the Condensed Consolidated Interim Report 42

Summary of financial results

The Group's consolidated net profit in Q2 2024 was EUR 38.6 million, having decreased by EUR 2.1 million compared to Q1 2024 and grown by EUR 3.0 million compared to Q2 2023. The profit for the Group's shareholders was EUR 38.3 million in Q2 2024, which was EUR 2.3 million less than in Q1 2024.

The Group's consolidated net income in Q2 2024 amounted to EUR 87.3 million, having grown by EUR 1.9 million compared to Q1 2024 and by EUR 12.4 million compared to Q2 2023.

The Group's net interest income grew by 2% in Q2 2024 compared to Q1 2024, amounting to EUR 70.4 million (EUR 68.9 million in Q1 2024). The Group's net interest income grew by 12% compared to Q2 2023.

Net service fee income grew by 5%, amounting to EUR 16.3 million (EUR 15.5 million in Q1 2024). The Group's net interest income grew by 32% compared to Q2 2023. In total, the Group's net income increased by 2.2% in Q2 2024 compared to Q1 2024, amounting to EUR 87.3 million (EUR 85.4 million in Q1 2024).

Operating expenses amounted to EUR 37.6 million in Q2, having grown by EUR 2.1 million compared to Q1 2024 and by EUR 4.5 million compared to Q2 2023.

The Group's Q2 operating profit was EUR 49.7 million (EUR 49.9 million in Q1 2024). Write-downs amounted to EUR 5.0 million in Q2 (EUR 2.9 million in Q1 2024).

Income tax expense on future disbursements of dividends by subsidiaries at the consolidated level was EUR 0.4 million in Q2.

The Group's Q2 net profit was EUR 38.6 million (EUR 40.7 million in Q1 2024).

The return on equity owned by LHV's shareholders was 25.8% in Q2 2024, which was 2.6 percentage points higher than in Q1 2024 (28.5%) and 4.9 percentage points lower than in Q2 2023 (30.7%).

The Group's loan volume grew to EUR 3 891 million by the end of Q2 (EUR 3 645 million in Q1 2024), having grown by 7% or EUR 246 million in a quarter (a growth of EUR 83 million in Q1 2024). Compared to Q2 2023, the Group's loan volume has grown by 20%.

The volume of deposits decreased by EUR 150 million in a quarter (an increase of EUR 203 million in Q1 2024). The volume of deposits of clients who are financial intermediaries decreased the most by EUR 228 million. The volume of deposits of ordinary clients increased by EUR 138 million and the volume of platform deposits decreased by EUR 60 million. Of the deposits, EUR 3 660 million (EUR 3 775 million in Q1 2024) were call deposits, EUR 1 517 million (EUR 1 492 million in Q1) term deposits and EUR 607 million (EUR 668 million in Q1) platform deposits.

By business units, AS LHV Pank's consolidated net profit amounted to EUR 34.8 million in Q2 and that of AS LHV Varahaldus amounted to EUR 0.7 million. AS LHV Kindlustus earned a net profit of EUR 0.4 million. The net profit of LHV Bank was EUR 0.9 million. The net profit of LHV Paytech was EUR 0.2 million. Viewed separately, LHV Group made a net profit of EUR 1.6 million.

Management emphasized better-than-expected performance in business volumes and profitability, with net profit exceeding financial plans and better than results in last year. LHV Group is 16.2 EURm ahead of financial plan. Looking at business lines, LHV Pank is 13.7 EURm ahead, LHV Bank 1.3 EURm behind, LHV Varahaldus 0.2 EURm ahead, and LHV Kindlustus 0.3 EURm ahead of financial plan. We expect that all business lines will fulfill their 2024. financial targets.

LHV Management has acknowledged the importance of maintaining quality in the loan portfolio amidst rapid growth, especially in negatiive GDP growth environment. This is the largest factor generating volatility in profitability.

The Bank's net profit at the consolidated level amounted to EUR 34.8 million in Q2 2024, which was EUR 2.0 million less than in the previous quarter (EUR 36.8 million in Q1 2024) and EUR 0.4 million more than in Q2 2023. The number of the Bank's clients grew by 5,400 in a quarter (10 500 in Q1 2024), amounting to a total of 433 000.

The Bank's loan portfolio grew by EUR 194 million in Q2 (EUR 1 million in Q1 2024), reaching EUR 3 744 million.

The deposits of the Bank's clients decreased by EUR 211 million in Q2, while the balance of the deposits of payment intermediaries decreased by EUR 176 million, platform deposits decreased by EUR 60 million, and the deposits of the remaining clients grew by EUR 25 million. The total volume of deposits was EUR 5 459 million at the end of Q2.

As at the end of Q2 2024, the net loan portfolio of LHV Bank amounted to EUR 147 million and the volume of deposits was EUR 446 million. The net profit of LHV Bank was EUR 0.9 million in Q2 2024 (EUR 4.9 million in Q1 2024). The net income of LHV Bank was EUR 12.0 million in Q2 2024 (EUR 11.5 million in Q1 2024).

The net profit of LHV Varahaldus was EUR 0.7 million in Q2 2024 (EUR 0.2 million in Q1 2024). The service fee income of LHV Varahaldus amounted to EUR 2.2 million (EUR 2.2 million in Q1 2024). The operating expenses of LHV Varahaldus amounted to EUR 1.4 million in Q2 2024 (EUR 1.5 million in Q1 2024). Expenses related to non-current assets (including depreciation on client agreements) were EUR 0.3 million in Q2 2024 (EUR 0.4 million in Q1 2024).

The total volume of funds managed by LHV decreased by EUR 11 million in a quarter (an increase of EUR 21 million in Q1 2024). The number of active 2nd pillar clients decreased by 1 600 in a quarter (a decrease of 3 300 in Q1 2024).

The net profit of LHV Kindlustus was EUR 0.4 million in Q2 2024 (EUR 0.3 million in Q1 2024). The volume of gross premiums decreased by EUR 1.8 million in the quarter, reaching EUR 9.0 million. Income from insurance activities at LHV Kindlustus increased by EUR 0.4 million in the quarter, to EUR 1.8 million.

Business volumes			Quarter		Year
EUR million	Q2 2024	Q1 2024	over quarter	Q2 2023	over year
Loan portfolio	3 890.5	3 644.6	7%	3 253.5	20%
Financial investments	151.6	245.8	-38%	370.3	-59%
Deposits of customers	5 783.9	5 934.4	-3%	5 062.4	14%
incl. deposits of financial intermediates	2 572.0	1 375.5	87%	1 265.8	103%
Equity (including minority interest)	602.3	598.7	1%	481.8	25%
Equity (owners' share)	594.6	591.3	1%	474.5	25%
Volume of funds managed	1 529.3	1 539.8	-1%	1 464.8	4%
Client securities	3 604.5	3 640.1	-1%	3 513.8	3%

Income statement			Quarter	Q2	Year			Year
EUR million	Q2 2024	Q1 2024	over quarter	2023	over year	6M 2024	6M 2023	over year
Net interest income	70.42	68.92	2%	62.90	12%	139.34	118.01	18%
Net fee and commission income	16.26	15.54	5%	12.35	32%	31.80	24.23	31%
Other financial income	-0.04	0.54	NA	-0.55	-93%	0.50	0.84	-40%
Total net operating income	86.64	85.00	2%	74.70	16%	171.64	143.08	20%
Other income	0.64	0.42	52%	0.20	220%	1.06	0.21	405%
Operating expenses	-37.59	-35.53	6%	-33.05	14%	-73.12	-63.68	15%
Loan and bond portfolio gains/(-losses)	-5.04	-2.85	77%	-0.81	522%	-7.89	0.77	NA
Income tax expenses	-6.07	-6.34	-4%	-5.42	12%	-12.41	-11.70	6%
Net profit	38.58	40.70	-5%	35.62	8%	79.28	68.68	15%
Including attributable to owners of the parent	38.29	40.54	-6%	35.35	8%	78.83	68.00	16%

Ratios			Quarter		Year			Year
EUR million	Q2 2024	Q1 2024	over quarter	Q2 2023	over year	6M 2024	6M 2023	over year
Average equity
(attributable to owners of the parent)	593.0	569.9	23.1	460.7	132.3	571.5	443.7	127.8
Return on equity (ROE), %	25.8	28.5	-2.7	30.7	-4.9	27.6	30.7	-3.1
Return on assets (ROA), %	2.1	2.2	-0.1	2.3	-0.2	2.2	2.2	0.0
Interest-bearing assets, average	7 291.7	7 167.7	124.0	6123.6	1 168.1	7 153.2	6147.7	1 005.5
Net interest margin (NIM) %	3.86	3.85	-0.01	4.11	-0.25	3.90	3.84	0.06
Price spread (SPREAD) %	3.52	3.56	-0.04	4.01	-0.49	3.59	3.77	-0.18
Cost/income ratio %	43.1	41.6	1.5	44.1	-1.0	42.3	44.4	-2.1
Profit attributable to owners before income tax	44.3	46.8	-2.5	40.7	3.6	91.1	79.8	11.3

Explanations to ratios (quarterly ratios have been expressed on an annualised basis)

Average equity (attributable to owners of the parent) = (equity as at the end of the reporting period + equity as at the end of the previous reporting period) / 2 Return on equity (ROE) = net profit for the quarter (share of owners of the parent) / average equity (attributable to owners of the parent) *100 Return on assets (ROA) = net profit for the quarter (share of owners of the parent) / average assets*100 Net interest margin (NIM) = net interest income / interest-bearing assets, average *100 Price spread (SPREAD) = interest yield from interest-bearing assets – cost of external capital Interest yield from interest-bearing assets = interest income / interest-bearing assets, average *100 Cost of external capital = interest expenses / interest-bearing liabilities, average *100 Cost/income ratio = total operating cost / total income *100

Operating Environment

The world's economy stayed resilient in Q2 of 2024 and growth steady. By the end of the quarter, economic activity was near the 12-month peak, then slowed¹ . The outlook for output, new orders and the pace of growth of services were pared back, mainly due to political uncertainty in the UK, France, US and India. Nevertheless, economic activity by sectors became broad-based for the first time in three years. Global inflation has started to fall toward the 2% target level, although it will be a bumpy road to get there. Some central banks have moved toward easing monetary policy and initiated the first cuts to prime interest rates (e.g. central banks of Switzerland, Sweden, Canada, ECB). Yet the differences between various parts of the world are still considerable and, in some places, interest rate cuts have been postponed (e.g. US, UK, Norway, Australia) while in others (e.g. Japan) monetary policy has been tightened outright.

Risks to the global outlook have in general been offset, but they have not vanished. Geopolitical tensions, including the Russo-Ukrainian War and Israel-Hamas War may lead to a new rise in energy prices (oil, electricity, natural gas) and certain food commodities prices (olive oil, sugar). Secondly, labour markets remain strong, which keeps the growth in prices of services higher than desired. This in turn may lead central banks to keep interest rates high for a longer period. Global economic growth will most likely remain modest in the coming years, since many countries are tightening fiscal policy measures, raising taxes and cutting government spending. World economic growth is forecasted to be around 3.2% in 2024-2025² .

In Q1 of 2024, the US economy grew 1.3% and its continued strength has buoyed growth forecasts – now expected to be 2.7% in 2024. The fact that inflation is stubbornly higher than expected introduces some uncertainty. The Chinese economy is forecasted to slow from 5.2% to 4.6% growth in 2024, hampered by a weak real estate sector, low consumer confidence, deflation and worsening of relations with the West. In Japan, where benchmark rates have been negative, interest rates entered positive territory in Q1 of 2024 due to mounting pressure from inflation in excess of 2%.

The gains on the world's biggest stock market indices slowed down in Q2 of 2024. The S&P 500 did decline in April but gains resumed in May; the index rose 3.9% overall for the quarter. The Tokyo stock exchange's rapid rise that started last year reversed in Q2 and the Nikkei 225 declined by 1.9% during the quarter. The European stock market index STOXX 600 grew in April, then started moving laterally and by the end of the quarter growth was near zero at -0.2%. London's FTSE 100 hit a new high in May, then underwent a weak correction, closing the quarter in positive territory, 2.5%. Shanghai's SSE Composite Index got off to a strong start in Q2, then declined, shedding 2.4% over the quarter.

In the first quarter of 2024, the European economy grew slightly – 0.4% – year over year. Although the economy improved in most Eurozone countries, there was wide variation from one member to another, and still contracted in some countries (e.g. Germany, Austria and Netherlands). The latest information suggests that the slow recovery will continue and that economic growth in 2024 should be 0.9%. Still, business profit growth is expected to taper in 2024, since wage expenses and general price level remain high.

The Eurozone economy is still shackled by low consumer confidence, the after-effects of high energy prices and weakness of investment and of interest-sensitive companies. Unlike in the rest of the world, trade and business activity remained on a weaker footing in the Eurozone. The steep drop in production volumes in June and outlook for new orders point to growth slowing, yet the general outlook is still positive³ . As a whole the labour market in the Eurozone has remained strong and unemployment is near record lows, 6.4%. Inflation rose somewhat in Q2 and was 2.5%, 0.1 percentage point above what it was at the end of the last quarter. Higher prices of services are the main factor contributing to rising prices, wage growth preventing inflation from slowing enough. At the same time, there are still major disparities between the inflation figures for Eurozone countries. In Q2, inflation was lowest in Finland and Italy – about 1% year-over-year in June. In Belgium, on the other hand, inflation was driven upward by rising energy prices, to 5.5% in

¹ S&P Global. J.P.Morgan Global Composite PMI®, July 2024. [WWW]

https://www.pmi.spglobal.com/Public/Home/Press Release/544a5619274f4c0e800163086c5c0de4

2 IMF. World Economic Outlook, April 2024. [WWW] https://www.imf.org/en/Publications/WEO/Issues/ 2024/04/16/world-economic-outlook-april-2024
³ S&P Global. HCOB Flash Eurozone PMI®, June 2024. [WWW]

https://www.pmi.spglobal.com/Public/Home/Press Release/c60d9fc0c66a4b0f9daaf2f3ac10292f#:~: text=HCOB%20Flash%20Eurozone%20Composit e%20PMI,52.6%20(May%3A%2053.2).

June. In Spain, Netherlands and Croatia as well, inflation remained close to 3.5%.

The European Central Bank (ECB) lowered key interest rates by 25 basis points in June, but the effect on the 6-month Euribor remained limited, and the rate was 3.682% at the end of the quarter. Nevertheless, the inflation outlook for the Eurozone persists relatively high, since domestic price pressure is strong due to rising wages. Inflation is expected to remain higher than the target until the second half of 2025, the forecasts for headline inflation being 2.5% for 2024, 2.2% for 2025 and 1.9% for 2026.4 The ECB is expected to keep interest rates where they are for at least a few months, but future interest expectations are based on the inflation outlook and transmission extent of monetary policy. Financial markets are pricing in 1-2 reference interest rate cuts in the coming quarters.

The UK economy is contending with problems similar to that of the Eurozone, but is in a less favourable position in regard to inflation and economic growth. The British economy grew by 0.3% in Q1. Prices remained higher than in the Eurozone, although inflation continued to slow, falling to 2.8% in May. Since inflation is still above the target, the Bank of England left rates unchanged at 5.25%. Signs in the direction of weakening can also be seen on the labour market, which overall still remains strong. Unemployment rose to 4.4% in Q1 of 2024 but more concern was prompted by the lower rate of participation in the workforce. The outlook for the UK economy is also more modest than that of the Eurozone. Growth of 0.6%⁵ is forecasted for British economy for 2024.

The economic environments in Estonia's main trading partners are moving in different directions. A new growth cycle has started in Latvia and Lithuania, where economic growth was 0.9% and 3% in Q1 of 2024. The Finnish economy shrank by 1.4%, but has started recovering from the crisis and people's purchasing power is on the upswing. Recovery will be slow, however, and the Finnish economy may contract 0.5% this year. According to the Finnish central bank's forecast, housing construction will continue its steep decline and corporate investments will decrease due to

⁴ Eurosystem staff macroeconomic projections for the euro area, June 2024. [WWW] https://www.ecb.europa.eu/press/projections/html /ecb.projections202406_eurosystemstaff~ee3c69 d1c5.en.html

⁵ HM Treasury. Forecasts for the UK economy: a comparison of independent forecasts, May 2024. [WWW] https://assets.publishing.service.gov.uk/media/66 4347aaf34f9b5a56adc6aa/Forecasts_for_the_UK _economy_-_May__with_cover_.pdf

stringent monetary policy and uncertain economic outlook⁶ . In the coming years, starting from 2025, the outlook for investments will improve and both housing construction and corporate investments should start to rise. The Swedish central bank has started lowering interest rates and the economy is in better position than Finland's – Q1 economic growth was 0.3%. In 2024, the Swedish economy should grow 1.0%, mainly propelled by increasing private consumption. Public sector investments and some major business real estate transactions offer some relief to the construction sector. At the same time, growth in the construction sector's production volumes is forecasted to slow to 2% in 2024 and then shed another 1.1% in 2025.⁷ General demand for housing continues to be weak. Growth in housing construction is not expected until inflation and interest rates have remained low for a longer period.

The Estonian economy has been contracting since Q2 of 2022. The drop continued in Q1 of 2024 – 2.1% year-over-year in Q1 of 2024. The statistics for Q2 of 2024 do not yet exhibit definitive signs of economic recovery but some positive indications have appeared. The energy sector, manufacturing, transport and warehousing are responsible for the decline. Scandinavia's unstable economy is also still putting pressure on exports. In Q2 2024, the drop in production volumes did slow, reaching to negative -1.2% in May compared to the previous year. Confidence has risen in most sectors in the last few months although it is still close to historical lows. Confidence among businesses in sectors that have the greatest influence on the economy (manufacturing, construction) has not deteriorated significantly in the first half of 2024; it has tended to stay at the same level. This indicates that the initial impact of the crisis has already materialized for businesses in the given sector, but the second half of the year will probably continue to be complicated. Consumer confidence remains very low, which is also reflected in the rate of decline in retail sales volumes speeding up.

Estonia's labour market continues to be in good shape. Unemployment did rise to 7.8% in Q1 2024, but is still near the historical average. Unemployment will rise this year to an average

⁶ Bank of Finland (2024). Forecast for the Finnish economy – June 2024. [WWW] https://www.bofbulletin.fi/en/2024/3/finland-seconomy-is-gradually-moving-out-of-recession/

⁷ Sveriges Riksbank (2024). Monetary Policy Report – June 2024. [WWW] https://www.riksbank.se/globalassets/media/rapp orter/ppr/penningpolitiska-rapporter-ochuppdateringar/engelska/2024/monetary-policyreport-june-2024.pdf

of 8%, according to the forecast from Eesti Pank, and then fall again. The number of employees is down the most in areas of activity related to construction, real estate, manufacturing and water supply. Wage growth has begun to recede, being 8.8% in Q1 of 2024. Nor has consumer purchasing power recovered completely from the high prices – the return of real wages to 2021 levels may only happen by late 2025. The consumer price index is down from its peak in 2023 and inflation fell to 2.8% in June 2024. Nevertheless, tax hikes implemented at the start of 2024 have kept Estonian inflation higher than the Eurozone average.

The financial situation faced by domestic households and ability to put money in savings has started to improve a bit, but a recovery will take time. Households' savings deposits grew 7.6% in May; corporate deposits, 0.6%. Still, growth rate is clearly lower than the long-term level and growth is not broad-based. The average interest rate on term deposits dropped to 3.58% for households and 3.63% for companies. Since the last quarter of 2023, the loan market has stabilized and the growth rate of housing loans issued has stayed around 6.0%. The increase in loans granted to companies decreased slightly to 5.6%. The average interest rate on housing loans has fallen to 5.3%, the average interest rate on long-term loans to companies rose to 6.6%. Banks' risk assessments are elevated due to the hard times in the economy, but this is counterbalanced by some competitive pressure growth and the fact that companies and households have managed well to pay off loans. The share of the loan portfolio made up by overdue housing loans remained at 0.2%, while the respective share of loans to companies fell a little to 0.2%.

The outlook for the Estonian economy for 2024 continues to be weak, but the conditions for returning to growth have improved. According to the Estonian central bank forecast⁸ , the economy will contract 0.4% in 2024, but conditions for growth should improve in the second half of the year. The main factor behind the drop is lower foreign demand in Scandinavia, and the continuing Russia-Ukraine war. Competitiveness on foreign markets remains low but is expected to get better in future. At the same time, a positive development is seen in the continuing growth of purchasing power, which should gradually also start nudging private consumption upward.

⁸ Eesti Pank. Rahapoliitika ja Majandus, 2/2024 [WWW] https://haldus.eestipank.ee/sites/default/files/202 4-06/rpm2024-2_est.pdf

The Group's Liquidity, Capitalisation and Asset Quality

As at 30 June 2024, the Group's own funds stood at EUR 539.7 million (31 December 2023: EUR 526.4 million). LHV Group own funds are calculated based on regulative requirements.

Compared to Group's internal capital adequacy ratio target 19.7%, the Group is capitalised good enough as at the end of the reporting period, with the capital adequacy ratio is amounting to 20.9% (31 December 2023: 23.5%). In addition to total capital adequacy targets the Group has also set internal targets for the core Tier 1 capital adequacy ratio to 14.70% and Tier 1 capital adequacy ratio to 16.85%. The internal targets were approved in December 2023 by the Group's Supervisory Board, after the completion of the annual supervisory assessment by the ECB. LHV Group includes only that part of the current year's profit for which the European Central Bank has given permission as part of its own funds. Obtaining the permit is done with the referrer, but it is also applied to the reporting quarter afterwards, which is why the capitalization ratios also change, and the Group reflects them in the next report.

The minimum requirement for own funds and eligible liabilities (MREL) is a building block of the resolution plan and LHV has to maintain sufficient own funds and qualifying liabilities which can be used to cover losses in resolution planning. On 21st of June 2021 Estonian FSA set two separate MREL ratios on the consolidation group level for LHV Group. MREL-TREA is calculated based on total risk weighted assets. MREL-LRE is calculated based on total assets. Each year regulator reviews the targets and recalibrates the requirements, if needed. As at the end of Q2 2024 the regulatory targets are 19.08% (MREL-TREA) and 5.91% (MREL-LRE). Group needs to meet higher MREL-TREA target to distribute dividends. This target is equal to sum of regulatory minimum requirement and combined buffer which is 25.08%. As at 30 June 2024, MREL-TREA ratio was 37.23% (31.12.2023: 35.68%) and MREL-LRE was 14.59% (31.12.2023: 12.62%).

The Group's liquidity coverage ratio (LCR), as defined by the Basel Committee, stood at 214.6% as at the end of June (31 December 2023: 194.2%). Financial intermediates' deposits in Bank are covered 100% with liquid assets. Excluding the financial intermediates deposits the Groups LCR is 457.4% (31.12.2023: 449.9%). The Group recognises cash and bond portfolios as liquidity buffers. These accounted for 46% of the balance sheet (31 December 2023: 48%). The ratio of loans to deposits stood at 65% as at the end of the second quarter (31 December 2023: 60%). Group's maturity structure is presented in Note 5.

Capital base		30.06.2024 31.12.2023 31.12.2022
Paid-in share capital	32 419	31 983	31 542
Share premium	146 958	143 372	141 186
Statutory reserves transferred from net profit	4 713	4 713	4 713
Other reserves	732	-996	-1 441
Retained earnings	320 757	229 287	170 010
Intangible assets (subtracted)	-20 934	-21 278	-23 333
Net profit for the reporting period (COREP)	28 448	129 740	46 180
Other adjustments	-7	-8	-369
Dividends to be distributed	0	-41 578	0
CET1 capital elements or deductions	-4 429	-382	0
CET1 instruments of financial sector entities where the institution has a significant investment	-3 960	-3 496	-3 351
CET1 instruments of financial sector entities where the institution has not a significant investment	0	0	-181
Tier 1 capital	504 697	471 357	364 956
Additional Tier 1 capital	35 000	55 000	55 000
Total Tier 1 capital	539 687	526 357	419 956
Subordinated debt	70 000	70 000	75 000
Total Tier 2 capital	70 000	70 000	75 000
Net own funds for capital adequacy	609 697	596 357	494 956
Risk weighted assets
Central governments and central bank under standard method	0	0	0
Credit institutions and investment companies under standard method	8 734	12 316	11 553
Companies under standard method	1 362 979	1 300 707	1 204 523
Retail claims under standard method	202 001	226 592	219 031
Public sector under standard method	16 077	0	0
Housing real estate under standard method	726 083	610 181	513 483
Overdue claims under standard methods	24 529	19 759	8 004
Investment funds' shares under standard method	188	188	186
Other assets under standard method	101 000	109 295	102 697
Total capital requirements for covering the credit risk and counterparty credit risk	2 441 591	2 279 038	2 059 477
Foreign currency risk	88 276	1 793	18 324
Interest position risk	0	0	0
Equity portfolio risk	1 221	746	740
Credit valuation adjustment risk	1 384	1 966	2 228
Operational risk under base method	385 579	259 437	197 920
Total risk weighted assets	2 918 051	2 542 980	2 278 689

Capital adequacy (%)	20.89	23.45	21.72
Tier 1 capital ratio (%)	18.50	20.70	18.43
Core Tier 1 capital ratio (%)	17.30	18.54	16.02

The credit quality of the group remained at a good level. A loan discount reserve of 35.3 million euros was formed in the balance sheet at the end of June to cover estimated loan losses. As of the end of the second quarter, the fair value of the collateral of the loan portfolio is 5% higher than the book value of the loan portfolio.

Loan portfolio distribution				Under-collateralized	Total
		Over-collateralized loans loans
				Fair value
	Carrying value	Fair value of collateral	Carrying value	of collateral	Carrying value	Fair value of collateral
			1 757
Stage 1	1 743 195	2 706 765	322	945 789	3 500 517	3 652 554
Corporate Lending	729 541	1 004 649	1 285 851	612 674	2 015 392	1 617 323
Consumer Financing	0	0	84 105	0	84 105	0
Investment Financing	7 001	28 507	2 486	2 000	9 487	30 507
Leasing	19 102	27 569	130 624	95 987	149 726	123 556
Private Lending	987 551	1 646 040	254 256	235 128	1 241 807	1 881 168
Stage 2	191 795	297 907	179 290	114 456	371 085	412 363
Corporate Lending	114 766	153 376	133 803	92 735	248 569	246 111
Consumer Financing	0	0	15 408	0	15 408	0
Investment Financing	4	5	60	19	64	24
Leasing	5 894	9 462	17 724	12 503	23 618	21 965
Private Lending	71 131	135 064	12 295	9 199	83 426	144 263
Stage 3	14 734	26 552	4 208	2 861	18 942	29 413
Corporate Lending	10 807	15 848	2 403	1 592	13 210	17 440
Consumer Financing	0	0	457	0	457	0
Investment Financing	5	10	0	0	5	10
Leasing	953	1 747	1 348	1 269	2 301	3 016
Private Lending	2 969	8 947	0	0	2 969	8 947

Overview of AS LHV Pank Consolidation Group

Net profit EUR 34.8 million
The volume of loans grew by EUR 195 million

EUR million	Q2 2024	Q1 2024	Change %	Q2 2023	Change %	From the beginning of 2024	From the beginning of 2023	Change %
Net interest income	60.06	60,06	0%	56.09	7%	120.31	108.99	10%
Net fee and commission income	8.23	8,23	5%	5.51	49%	16.10	13.06	23%
Other financial income	-0.17	-0,17	-146%	-0.44	-60%	0.21	0.74	-72%
Total net operating income	68.12	68,12	-1%	61.17	11%	136.62	122.80	11%
Other income	0.66	0,66	128%	0.22	206%	0.95	0.25	287%
Operating expenses Loan and bond portfolio	-23.23	-23,23	2%	-21.08	10%	-46.02	-41.86	10%
gains/(-losses)	-4.86	-4,86	73%	-0.60	706%	-7.67	0.99	-877%
Income tax expenses	-5.86	-5,86	-8%	-5.25	12%	-12.24	-10.40	18%
Net profit	34.84	34,84	-5%	34.45	1%	71.65	71.77	0%
Loan portfolio	3 744	3 744	5%	3 276	14%
Financial investments	143	143	-39%	323	-56%
Deposits of customers incl. deposits of financial	5 459	5 459	-4%	5 133	6%
entities	1 184	1 184	-12%	1 336	-11%
Subordinated liabilities	114	114	0%	114	0%
Equity	527	527	7%	458	15%

LHV Pank earned EUR 60.1 million in net interest income and EUR 8.2 million in net service fee income in Q2. Net financial income amounted to EUR -0.2 million in Q2. In total, the Bank's income was EUR 68.8 million and expenses were EUR 23.2 million. Net income rose by 12% and expenses increased by 10% over the year. The discounts of loans and bonds amounted to EUR 4.9 million in Q2. We made forward-looking specific and general discounts. We are keeping a very close eye on developments in the credit portfolio.

LHV Pank accounts for and recognises in expenses a 14% advance income tax which was EUR 5.6 million in Q2. Income tax expense on future disbursements of dividends by subsidiaries at the consolidated level was EUR 0.3 million in Q2.

The Bank's Q2 profit amounted to EUR 34.8 million, which is 5% less than in Q1 2024 (36.8) and 1% more than in Q2 2023 (34.4).

Income from currency exchange, settlements and investment services contribute the most into service fees.

The total volume of the Bank's loan portfolio reached EUR 3,744 million by the end of Q2 (Q1 2024: EUR 3,549 million). The volume of loans grew by EUR 194 million in Q2 (Q1 2024: a growth of EUR 1 million). The net retail loan portfolio grew by 6% during the quarter, reaching EUR 1,719 million (Q1 2024: EUR 1,625 million). The net corporate loan portfolio grew by 5% during the quarter, reaching EUR 2024 million (Q1 2024: EUR 1,924 million).

The volume of deposits at the Bank decreased by EUR 211 million from the previous quarter and stood at EUR 5,459 million at the end of the quarter (Q1 2024: EUR 5,671 million). The volume of payment intermediaries' deposits dropped by EUR 176 million during the quarter. Of the deposits, EUR 3,677 million were call deposits, EUR 1,521 million term deposits and EUR 261 million platform deposits. The volume of the deposits of private persons amounted to EUR 1,569 million as at the end of the quarter, having decreased by 9% in a quarter.

The Bank's expense-income ratio was 33.8% in Q2, decreasing by 0.6 percentage points from Q2 2023 (34.3%).

The corporate credit portfolio, which includes loans and guarantees, grew EUR 287.8 million over the year (+15%) with a quarter-over-quarter growth of EUR 90.8 million (+4%). Loans granted to companies in the sector of real estate related activities were the largest source of growth, growing by EUR 139.2 million (20%) in a year. Next came loans to companies in the transport and warehousing sector, which grew EUR 43.1 million from the year before (+279%) and loans issued to companies in the manufacturing industry, which grew EUR 40.9 million (+25%) over the year.

Compared to Q1 2024, the portfolio growth was most influenced by the sector engaged in real estate activities (quarterly growth EUR 59.6 million; +8%), followed by the manufacturing industry (EUR 14.7 million; +8%) and the construction sector (EUR 13.6 million; +18%).

The majority of corporate loans were granted to the real estate sector, which makes up 39% of the Bank's corporate loan portfolio. Of real estate loans, the principal part was issued to projects with high-quality rental streams, with real estate developments making up a much smaller share. Most of the financed real estate developments are located in Tallinn, while projects located in other major Estonian cities and in the vicinity of Tallinn made up about 25% of development projects. LHV's market share of new development financing in Tallinn made up about one-third by estimate at the end of Q2 2024. The LHV real estate development portfolio is well-positioned in case market trends should change – the financed developments are in good locations and the risk to planned sales price ratio averages 56%.

After the real estate sector, the largest amount of credit has been issued to companies in the power, gas, steam and conditioned air sector (10%) and to manufacturing industry companies (9%). Of sectors that usually run a higher credit risk, construction makes up 4%, transport and warehousing 3% and HoReCa 2% of the total volume of the portfolio.

During the quarter, the number of the bank's clients grew by 5400. The deletion of companies from the Commercial Register – we terminated agreements with 4200 companies as a result – was one reason that the increase in the number of companies was more modest this quarter. New clients accrued at a rate similar to the start of the year and client activity was at a good level. Deposits decreased by EUR 211 million over the quarter, and loans increased by EUR 194 million.

Ordinary clients' deposits grew by EUR 137 million during the quarter and financial intermediaries' deposits decreased by EUR 176 million. The financial situation faced by domestic households and ability to put money in savings has started to improve a bit, but a recovery will take time. Households' savings deposits grew 7.6% year-over-year in May; corporate deposits, 0.6%. Still, the growth rate is clearly lower than the long-term level and the growth is not very broad-based. Deposits are still in the focus, but in Q2, we were more conservative in the interest rates we offered on term deposits. Additionally, we reduced platform deposits by EUR 180 million. Our goal is to raise deposits from the Estonian market. Using the platform, we can quickly grow the deposit volume if necessary.

Loans to non-LHV-Group companies grew by EUR 100 million and consumer loans increased by EUR 94 million. Since the last quarter of 2023, the loan market has stabilized and the growth rate of housing loans issued has stayed around 6.0%. The growth in loans granted to companies slowed slightly – to 5.6%. We outpaced market growth. The strong results were due to both the continuation of the home loan refinancing campaign and active approach to corporate customers. We signed a cooperation agreement with the European Investment Fund (EIF), which allows LHV to offer small and medium-sized companies loans, loans for apartment association renovation projects, and provide leasing enabling private clients to buy electric vehicles and companies to purchase electric vehicles and hybrid vehicles in the context of the EIF's Sustainable Loan sub-programme. Over three years, the programme will allow us to provide EUR 200 million of financing to companies and individuals, which translates to about 150 renovated apartment buildings, and 100 companies investing into more energy efficient solutions or about 500 electric vehicles.

The net profit for the quarter was EUR 35 million. The strong second-quarter result was mainly the result of interest income. The growth in net interest income is slowing, since the expenses paid on deposits are growing faster. Due to higher interest income and lower write-downs, net profit exceeded the planned target by EUR 13.6 million by the end of the quarter. Income from service charges is lagging slightly behind the target while expenses are a bit higher than planned, but remain under control.

Loan impairments increased by EUR 2.1 million during the quarter. The outlook for the Estonian economy for 2024 continues to be weak, but the conditions for returning to growth have improved. Due to the continuing fragility of the environment, we also made model-based forward-looking write-downs in Q2. The write-downs have also impacted rating changes for individual clients. As a whole, the quality of the bank's loan portfolio has stayed strong and the share of overdue loans continues to be very low. We are seeing growth in consumer loans, but the levels are reasonable and in line with expectations. Compared to the financial plan, write-downs were EUR 1.8 million lower.

Also in Q2, we introduced a number of new features in user friendliness and launched a new product on the market. We automated trading of Baltic bonds, allowing clients to execute transactions over LHV's digital channel in seconds; the trade is sent to the exchange automatically. Moreover, the internet bank now allows delivery versus payment (DVP) transfers of securities to be made without needing assistance from a bank employee. We introduced the LHV instalment payment product, which broadens the choice of payment solutions for merchants even further. Now clients can pay for goods and services in instalments without signing a credit agreement.

We brought home five eggs from the Golden Egg Awards marketing awards competition – two of them gold, one silver and two bronze – for three of our advertisements ("Freedom to Move On", "Where Are You?" and "Bungee Jump"). The annual LHV May Run, a unique running race for women only, drew a record number of entrants. June witnessed the Youth Investment Festival and 30 summer interns started their internships at LHV.

The Kantar Emor employer reputation survey for 2024 revealed that LHV is seen as university students' first choice as an employer.

Overview of LHV Bank Limited

The second quarter proved to be a very successful one for LHV Pank in terms of growing business volumes. Both the loan portfolio and retail deposits grew by more than 50% over the three months. By the end of the quarter, the bank had more than 6000 depositors. Retail deposits grew by EUR 119 million over the quarter. Deposits are being successfully attracted from three deposit platforms. Deposits are attracted by adjusting interest rates on the deposits as needed to optimize the interest expenses incurred.

Loans grew by EUR 52 million over the quarter. The network of loan brokers was expanded significantly in Q2 and additional loan account managers were hired. As at the end of the quarter, loans approved by the Credit Committee but yet to be issued stood at EUR 141 million. The quarter also saw the issue of the first fixedinterest-rate loans intended for purchasing residential real estate and leasing it out to major investors. The quality of the loan portfolio was strong and as of the end of the quarter, there were no overdue debts. The LHV brand has become significantly better known among loan brokers. Q2 also saw the beginning of active public communication over loan brokers' channels, and appearances at a number of seminars and conferences.

Business volumes from financial intermediaries' payments remained higher than planned, but deposits decreased due to stiffer competition in pricing deposits as well as because of targeted offers made by competitors.

Net profit for the quarter was EUR 0.9 million. Net profit was lower than planned, since an income tax asset formed at the beginning of the year was reversed at the end of Q2. Bank net income largely conformed to plans, but expenses were greater than planned due to increased development costs on entering the retail banking market.

Work continued toward developing a new website, mobile bank and retail banking services. The first payments and card transactions were tested and executed. The opening of the mobile bank for employees is planned for October, followed by the public launch in December. Direct debits and cards are slated to be ready by Q1 of 2025.

In early July, the bank joined the SEPA system of ordinary payments. Preparations have begun for joining the SEPA instant payment system in December.

EUR million	Q2 2024	Q1 2024	change %
Net interest income	9.63	8.80	9%
Net fee and commission income	2.44	2.56	-5%
Other financial income	-0.03	-0.03	0%
Total net operating income	12.04	11.33	6%
Other income	0.00	0.16	NA
Operating expenses	-9.82	-8.40	17%
Loan and bond portfolio
gains/(-losses)	-0.19	-0.04	375%
Income tax expenses	-1.09	1.82	NA
Net profit	0.94	4.87	-81%
Loan portfolio	146.8	95.2	54%
Deposits of customers	446.2	377.7	18%
Equity	83.8	83.8	0%

Overview of AS LHV Varahaldus

Net profit for Q2 was EUR 0.7 million
Number of active second-pillar clients at the end of the quarter – more than 118 thousand
Volume of assets in second-pillar funds by the end of the first half of the year – EUR 1,426 million
Third-pillar net assets continue to grow, with the volume standing at EUR 96 million at the end of June

EUR million	Q2 2024	Q1 2024	Change %	Q2 2023	Change %	From the beginning of 2024	From the beginning of 2023	Change %
Net fee and commission income	2.24	2.19	2%	2.21	1%	4.43	4.34	2%
Net financial income	0.17	0.22	-23%	0.01	1 600%	0.39	0.18	117%
Operating expenses Depreciation of non-current	-1.37	-1.46	-6%	-1.45	-6%	-2.83	-2.77	2%
assets	-0.30	-0.37	-19%	-0.35	-14%	-0.67	-0.75	-11%
Profit	0.74	0.58	28%	0.42	76%	1.32	1.00	32%
Financial investments	6.0	6.0	0%	8.0	-25%
Equity	19.0	18.0	62%	21.0	-10%
Assets under management	1 529.0	1 540.0	-1%	1 465.0	4%

In Q2, the operating income of LHV Varahaldus amounted to EUR 2.2 million and the net profit was EUR 0.7 million. The operating income largely corresponds to the financial plan, with operating expenses being EUR 151 thousand lower than planned. Profitability has been positively influenced by a good yield of major funds in the first half of the year and the resulting financial income earned from a growth in the value of own shares was a little bit less than EUR 0.2 million in Q2. After two quarters, Varahaldus exceeds the financial plan by EUR 0.2 million in terms of net profit.

Particularly supported by a strong June, the success of major technology shares continued in Q2, which in turn drove a growth in indexes covering primarily US shares, but also broad-based indexes of global shares. There were both winners and losers in the European markets. Measured in euros, the values of MSCI World and SP500 grew by 3.4% and 4.7%, respectively, while EuroStoxx decreased by 2.1% instead. The main keywords closely watched on major markets are inflation as well as reductions of interest rates that have already taken place in some countries, but are currently still expected in the US market, and developments in the labour market. An eye is definitely also kept on elections – the triumph of the Labour Party in the UK, further developments in France and, of course, the US presidential elections may bring various changes also in the markets. Particularly the US market is characterised by a historically high price level and an almost record high concentration of large enterprises, as well as their importance in broad indexes.

The quarter was generally positive for LHV's largest actively managed funds, with all the major asset classes generating a positive yield. The values of M, L and XL shares grew in Q2 by 2.2%, 2.8% and 2.2%, respectively. Pension fund Roheline generated good results in May, but gave up all the previously earned yield in June and ended the past three months in minus 0.4%. The yield of pension fund Indeks was 4.7% in Q2. The conservative funds S and XS rose by 1.4% and 1.2%, respectively. Compared to previous years, the growth of the receipt of social tax which acts as a reference index has considerably decreased in recent months compared to the preceding year, the growth was lower than 6% in both May and June.

Of investments in major funds, we are currently keeping a closer eye on listed and non-listed bonds, as well as equity markets. The long-prepared extensive renovation and extension of the White House also started in June.

The number of LHV's active second-pillar clients at the quarter's end was more than 118 thousand, having dropped by around two thousand in the three months. The drop was mainly caused by clients who left the second pillar at the beginning of May, but the sales figures have also been more modest compared to previous quarters. The rate of clients leaving the second pillar continues to be low and looking at the figures at the end of Q2, the next fourmonth window for applications for leaving the second pillar which ends in July may prove to be lower than the previous ones. The volume of assets managed by LHV Varahaldus was EUR 1,529 million by the end of the quarter. Clients also continue actively increasing the second pillar payments – by the end of June, 6,200 LHV pension fund clients had submitted the respective application.

Long-term Management Board member and fund manager of LHV Varahaldus, Joel Kukemelk leaves his position on 31 July. The Management Board will continue with two members from August and the other members of the investment team will take over the management of the Roheline and the index funds in both the second and the third pillar.

The portfolio of all actively managed funds and distribution of asset classes largely correspond to the long-term goal, where M, L and XL portfolio are mainly invested in unlisted asset classes less dependent on stock markets. We keep a close eye on developments on the stock market and are prepared to quickly adjust our positions depending on the conditions. We also devote extra attention to liquidity to ensure capability to more aggressively invest and naturally make disbursements to customers if they change or exit funds.

Overview of AS LHV Kindlustus

The Q2 2024 sales results of AS LHV Kindlustus decreased from the previous quarter, which was foreseen in the financial plan of the current year. Of insurance products, the results were the best in home and travel insurance, with stable results in all-risks and motor TPL insurance. The volume of insurance premiums from the health insurance product solution marketed in cooperation with Confido was EUR 2,121 thousand in Q2. The number of insurance contracts has reached a certain level of stability and the active growth stage has ended. As at the end of Q2, the company exceeded the main goals of the 2024 financial plan.

The development of insurance information systems continued. Since the beginning of 2024, we are developing and operating our claims adjustment software with our internal team who added important new functionalities to our systems in Q2. A great focus continues to be on improving cooperation and making processes more efficient with other LHV Group companies. The first image campaign of LHV Kindlustus was also held in Q2, with advertisements in digital, TV and outdoor media.

As at 30 June 2024, LHV Kindlustus had 241 thousand valid insurance contracts and 168 thousand clients. Both indicators grew from the previous quarter.

The volume of gross insurance premiums was EUR 8,963 thousand and the net earned insurance premiums totalled EUR 7,564 thousand in Q2. The proportions of the products in the insurance portfolio remained the same as in the previous quarter.

During Q2, 25,832 new loss events were registered, and claims adjustment was completed in 25,668 incidents. As at the end of the quarter, a total of 2,842 claim files were open. The net losses incurred in the period together with indirect claims adjustment costs were EUR 4,767 thousand.

Considering the season, the Q2 loss frequency was a little bit below the average, but the number of large loss events was greater. Of insurance products, the gross loss ratios were good in home, all-risks and travel insurance. The company's profit in Q2 was EUR 428 thousand. The volume of the company's operating expenses as at 30 June 2024 was below the planned level.

EUR thousand	Q2 2024	Q1 2024	Change %	Q2 2023	Change %
Gross insurance premiums	8 963	10 789	-17%	7 978	12%
Net earned insurance premiums	7 564	7 237	5%	5 540	37%
Net losses incurred	-4 767	4 873	-2%	3 692	29%
Total net operating expenses	-2 411	2 259	7%	1 850	30%
Underwriting result	385	106	263%	-2	NA
Net profit	428	256	67%	33	1 197%

As of the end of Q2, LHV Kindlustus employed 52 people.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income

(in thousands of euros)	Note	Q2 2024	6M 2024	Q2 2023	6M 2023
Interest income		111 243	218 005	79 312	143 789
Interest expense		-40 819	-78 662	-16 412	-25 781
Net interest income	9	70 424	139 343	62 900	118 008
Fee and commission income		21 120	41 166	17 150	32 794
Fee and commission expense		-4 858	-9 361	-4 798	-8 565
Net fee and commission income	10	16 262	31 805	12 352	24 229
Net gains from financial assets measured at fair value		1 254	1 575	-535	-650
Foreign exchange rate gains/losses		-1 291	-1 076	-12	1 488
Net gains from financial assets		-37	499	-547	838
Other income		646	1 071	207	227
Other expense		-8	-15	-10	-17
Total other income		638	1 056	197	210
Staff costs		-21 108	-41 383	-15 851	-31 518
Administrative and other operating expenses		-16 479	-31 732	-17 189	-32 144
Total expenses	11	-37 587	-73 115	-33 040	-63 662

Profit before impairment losses		49 700	99 588	41 862	79 623
Change in financial investments		0	0	-180	-180
Impairment losses on loans and bonds	21	-5 043	-7 894	-629	954
Profit before income tax		44 657	91 694	41 053	80 397
Income tax expense		-6 335 -6 071	-6 335 -12 406	-6 281 -5 422	-6 281 -11 703
Net profit for the reporting period	2	38 586	79 288	35 631	68 694
Other comprehensive income/loss:	0	1 038 3 324	39 846 78	561	27 092
Items that may be reclassified subsequently to profit or loss:
Unrealized exchange differences arising on the
translation of the financial statements of foreign
operations		853	1 727	819	1 115
Total profit and other comprehensive income for the
reporting period		39 439	81 015	36 450	69 809
Total profit of the reporting period attributable to:
Owners of the parent		38 286	78 830	35 353	68 007
Non-controlling interest		300	458	278	687
Total profit for the reporting period	2	38 586	79 288	35 631	68 694
Total profit and other comprehensive income attributable to:
Owners of the parent		39 139	80 557	36 172	69 122
Non-controlling interest		300	458	278	687
Total profit and other comprehensive income for the
reporting period		39 439	81 015	36 450	69 809
Basic earnings per share (in euros)	16	0.12	0.25	0.11	0.21
Diluted earnings per share (in euros)	16	0.12	0.24	0.11	0.21

The Notes on pages 24 to 39 are an integral part of the condensed consolidated interim financial statements.

(in thousands of euros)	Note	30.06.2024	31.12.2023

Assets
Due from central bank	4, 5, 6, 12	3 177 531	3 052 890
Cash and cash equivalents	4, 5, 6, 12	30 098	52 145
Due from investment companies	4, 6, 12	8 218	12 509
Due from credit institutions		1 600	1 850
Financial assets at fair value through profit or loss	4, 6, 7	22 501	18 453
Financial assets at amortized cost	7	134 631	321 888
Loans and advances to customers	4, 6, 8, 21	3 890 544	3 561 791
Receivables from customers		15 919	49 505
Other financial assets		277	273
Other assets		5 607	8 184
Financial investment		1 000	1 000
Tangible assets	19	19 294	22 109
Intangible assets	19	13 355	13 843
Goodwill		9 148	9 150
Total assets	2	7 329 723	7 125 590
Liabilities
Deposits of customers	13	5 783 929	5 731 005
Loans received and debt securities in issue	13	735 281	563 728
Financial liabilities at fair value through profit or loss	7	43	1 843
Accounts payable and other liabilities	14	100 668	145 995
Subordinated debt	6, 20	107 519	126 653
Total liabilities	2	6 727 441	6 569 224
Owner's equity
Share capital		32 419	31 983
Share premium		146 958	143 372
Statutory reserve capital		4 713	4 713
Other reserves		10 909	9 333
Retained earnings		399 589	359 029
Total equity attributable to owners of the parent		594 588	548 430
Non-controlling interest		7 694	7 936
Total equity		602 282	556 366
Total liabilities and equity		7 329 723	7 125 590

Condensed Consolidated Interim Statement of Financial Position

The Notes on pages 24 to 39 are an integral part of the condensed consolidated interim financial statements.

Condensed Consolidated Interim Statement of Cash Flows

(in thousands of euros)	Q2 2024	6M 2024	Q2 2023	6M 2023
Cash flows from operating activities
Interest received	111 591	218 622	78 249	140 901
Interest paid	-37 474	-58 196	-9 860	-15 592
Fees and commissions received	21 157	41 197	17 200	32 846
Fees and commissions paid	-4 867	-9 371	-4 798	-8 565
Other income received	589	743	-49	-372
Staff costs paid	-19 114	-37 171	-14 642	-28 205
Administrative and other operating expenses paid	-13 036	-23 588	-14 673	-26 795
Income tax	-6 149	-12 079	-5 568	-12 369
Cash flows from operating activities before change in operating
assets and liabilities	52 697	120 157	45 859	81 849
Net increase/decrease in operating assets:
Net increase/(decrease) in financial assets at fair value through profit or loss	-2 012	-1 192	1 799	-602
Loans and advances to customers	-243 321	-331 726	-104 966	-34 603
Mandatory reserve at central bank	2 066	853	-1 674	-1 925
Other assets	-26 884	-1 544	-7 638	-14 198
Net changes of investment securities at fair value through profit or loss and
of investment securities at amortized cost	96 048	185 959	-74 437	4 436
Deposits with more than 3 months maturity	-750	250	0	0
Net increase/decrease in operating liabilities:
Demand deposits of customers	-64 723	-91 832	-335 798	-641 181
Term deposits of customers	-86 701	127 275	526 283	796 230
Financial liabilities held for trading at fair value through profit and loss	-310	-1 801	-3 143	-3 292
Other liabilities	-34 830	-33 715	26 648	27 868
Net cash generated from/used in operating activities	-308 720	-27 316	23 868	116 926
Cash flows from investing activities
Purchase of non-current assets	-1 326	-2 480	-4 134	-5 422
Net cash flows from/used in investing activities	-1 326	-2 480	-4 134	-5 422
Cash flows from financing activities
Paid in share capital (incl. share premium)	4 021	4 021	2 627	2 627
Dividends paid	-41 578	-42 278	-12 617	-13 842
Loans received	300 000	300 000	18 631	18 631
Prepayments of loans received	-137 170	-137 170	-49 065	-97 656
Repayments of the principal of lease liabilities	-694	-2 314	-428	-951
Net cash flows from/used in financing activities	124 579	122 259	8 213	6 465
Effect of exchange rate changes on cash and cash equivalents	6 1 892	6 693	311	1 927
Net increase/decrease in cash and cash equivalents	-183 575	99 156	28 258	119 896
Cash and cash equivalents at the beginning of the period	3 344 376	3 061 645	2 525 237	2 433 599
Cash and cash equivalents at the end of the period	12 3 160 801	3 160 801	2 553 495	2 553 495

The Notes on pages 24 to 39 are an integral part of the condensed consolidated interim financial statements

						attributable	Non
			Statutory			to owners	control
	Share	Share	reserve	Other	Retained	of LHV	ling
(in thousands of euros)	capital	premium	capital	reserves	earnings	Group		interest Total equity

Balance as at 01.01.2023	31 542	141 186	4 713	5 683	229 817	412 941	7 908	420 849
Paid in share capital	441	2 186	0	0	0	2 627	0	2 627
Dividends paid	0	0	0	0	-12 617	-12 617	-1 225	-13 842
Change in accounting methods	0	0	0	0	-153	-153	-83	-236
Share options	0	0	0	230	2 379	2 609	0	2 609
Profit for the reporting period Other comprehensive	0	0	0	0	68 007	68 007	687	68 694
income/loss	0	0	0	1 115	0	1 115	0	1 115
Total profit and other comprehensive income for the
reporting period	0	0	0	1 115	68 007	69 122	687	69 809
Balance as at 30.06.2023	31 983	143 372	4 713	7 028	287 433	474 529	7 287	481 816
Balance as at 01.01.2024	31 983	143 372	4 713	9 333	359 029	548 430	7 936	556 366
Paid in share capital	436	3 586	0	0	0	4 022		0 4 022
Dividends paid	0	0	0	0	-41 578	0	-700	-42 278
Share options	0	0	0	-151	3 308	3 157		0 3 157
Profit for the reporting period Other comprehensive	0	0	0	0	78 830	78 830	458	79 288
income/loss	0	0	0	1 727	0	1 727		0 1 727
Total profit and other comprehensive income for the
reporting period	0	0	0	1 727	78 830	80 557	458	81 015
Balance as at 30.06.2024	32 419	146 958	4 713	10 909	399 589	594 588	7 694	602 282

Condensed Consolidated Interim Statement of Changes in Equity

Total equity

The Notes on pages 24 to 39 are an integral part of the condensed consolidated interim financial statements

Notes to the Condensed Consolidated Interim Financial Statements

NOTE 1 Accounting Policies

The condensed consolidated interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting", as adopted by the European Union, and consists of condensed consolidated financial statements and selected explanatory notes.

The accounting policies and methods of computation used in the preparation of the interim report are the same as the accounting policies and methods of computation used in the annual report for the year ended 31 December 2023, which comply with the International Financial Reporting Standards, as adopted by the European Union (IFRS EU).

These condensed consolidated interim financial statements have not been reviewed, not audited and do not contain the entire range of information required for the preparation of complete financial statements. The condensed consolidated interim financial statements should be read in conjunction with the Annual Report prepared for the year ended 31 December 2023, which has been prepared in accordance with the International Financial Reporting Standards (IFRS EU).

The applicable accounting policies have not changed compared to the previous financial year.

The financial figures of the condensed consolidated interim financial statements have been presented in thousands of euros, unless otherwise indicated. The interim financial statements have been consolidated and include the results of AS LHV Group and its subsidiaries AS LHV Varahaldus (100% interest), AS LHV Pank (100% interest), LHV Bank Ltd (100% interest), AS LHV Paytech (100% interest) and AS LHV Finance (65% interest) and AS LHV Kindlustus (65% interest).

NOTE 2 Business Segments

The Group divides its business activities into segments according to its legal structure, except LHV Pank divides its business activities by 3 main business segments: retail banking, corporate banking and financial intermediates. Financial intermediates segment also includes the fee sharing on the basis of the cooperation agreement concluded with LHV Bank Ltd. The business segments form a part of the Group, with a separate access to financial data and which are subject to regular monitoring of operating profit by the Group's decision-maker. The Management Board of AS LHV Group has been designated as the decision-maker responsible for allocation of funds and assessment of the profitability of the business activities. The result posted by a segment includes revenue and expenditure directly related to the segment.

The revenue of a reported segment includes gains from transactions between the segments, i.e. loans granted by AS LHV Pank to other group companies. The division of interest income and fee and commission income by customer location has been presented in Notes 9 and 10. The breakdown of interest income by customer location does not include the income from current accounts, deposits and investments in securities. The Group does not have any customers, whose income would account for more than 10% of the corresponding type of revenue.

Q2 2024	Retail banking	Corporate banking	Asset manage ment	Hire purchase and consumer finance in Estonia	Financial intermediates	Insura nce	LHV Bank Ltd	Other activities	Elimina tions	Total
Interest income	24 371	42 793	25	3 725	-6 008	141	13 851	42 736	-10 390	111 243
Interest expense Intrabank interest	-13 369	-16 560	0	-1 936	-2 606	-75	-4 224	-12 439	10 390	-40 819
income/-expense	16 458	-2 126	0	2	10 451	0	0	-24 785	0	0
Net interest income	27 459	24 107	25	1 791	1 837	66	9 627	5 512	0	70 424
Fee and commission income	8 192	3 817	2 235	215	1 088	1 808	2 933	2 394	-1 562	21 120
Fee and commission expense	-4 489	-936	0	-176	-255	-16	-491	9	1 497	-4 858
Net fee and commission income	3 703	2 881	2 235	38	832	1 792	2 442	2 403	-65	16 262
Other income	10	591	0	0	0	-4	0	61	-20	638
Net income	31 172	27 579	2 260	1 829	2 669	1 854	12 069	7 976	-85	87 324

Net gains from financial assets Administrative and	-35	0	156	0	-1	1	-33	-125	0	-37
other operating expenses, staff costs	-11 857	-7 823	-1 672	-926	-2 479	-1 433	-9 820	-1 663	85	-37 587
Operating profit Impairment losses on	19 280	19 756	744	903	190	422	2 216	6 189	0	49 700
loans and advances	-138	-3 968	0	-779	0	0	-185	27	0	-5 043
Income tax	-2 422	-2 241	0	-241	-558	0	-1 093	885	-402	-6 071
Net profit	16 720	13 547	744	-116	-368	422	938	7 101	-402	38 586

				Hire purchas e and
6M 2024	Retail banking	Corporate banking	Asset manage ment	consume r finance in Estonia	Financial inte rmedia tes	Insu rance	LHV Bank Ltd	Other activities	Elimi nations	Total
Interest income	48 353	84 134	73	7 567	-11 938	323	25 673	83 474	-19 654	218 005
Interest expense Intrabank interest	-25 940 31 899	-32 063 -3 812	0 0	-3 895 4	-5 018 21 254	-140 0	-7 249 0	-5 482 -49 345	1 126 0	-78 662 0
income/-expense Net interest income Fee and commission	54 311	48 259	73	3 676	4 298	183	18 424	28 647	-18 528	139 343
income Fee and commission expense	16 355 -8 628	7 220 -1 919	4 422 0	443 -367	2 071 -491	3 259 -28	5 977 -973	4 606 -13	-3 188 3 058	41 166 -9 361
Net fee and commission income	7 727	5 302	4 422	76	1 580	3 231	5 004	4 592	-130	31 805
Other income	0	843	0	0	0	-8	157	112	-48	1 056
Net income	62 039	54 403	4 495	3 753	5 878	3 406	23 585	33 351	-18 706	172 204
Net gains from financial assets Administrative and	-36	-1	327	0	-1	38	-66	82 738	-82 500	499
other operating expenses, staff costs	-22 291	-14 874	-3 498	-1 831	-4 692	-2 766	-18 210	-5 130	177	-73 115
Operating profit Impairment gains/(- losses) on loans and	39 712	39 528	1 324	1 922	1 185	678	5 309	110 959	-101 029	99 588
bond portfolio	-390	-6 031	0	-1 916	0	0	-229	673	0	-7 894
Income tax	-5 017	-4 629	-800	-566	-1 291	0	726	-888	59	-12 406
Net profit	34 305	28 868	524	-561	-106	678	5 806	110 744	-100 970	79 288
Total assets 30.06.2024 Total liabilities	2 707 522	3 923 848	19 217	87 941	0	24 142	539 482	943 675	-916 105	7 329 723
30.06.2024	3 476 811	1 670 602	692	70 795	975 954	18 194	455 701	716 615	-657 921	6 727 441

Q2 2023	Retail banking	Corporate banking	Asset manage ment	Hire purchase and consumer finance in Estonia	Financial inter mediates	Insurance	LHV UK Ltd	Other activities	Elimi nations	Total
Interest income	20 700	31 549	1	3 866	-6 473	81	7 755	27 385	-5 551	79 312
Interest expense Intrabank interest	-7 541	-4 498	0	-1 440	-1 406	-36	-336	-6 705	5 551	-16 410
income/-expense Net interest	18 210	-7 835	0	2	8 408	0	0	-18 785	0	0
income Fee and commission	31 369	19 216	1	2 428	529	45	7 419	1 895	0	62 900
income Fee and commission	8 589	1 651	2 211	233	786	1 260	2 253	1 151	-985	17 150
expense Net fee and commission	-4 790	-764	0	-214	114	0	-45	-26	928	-4 798
income	3 799	887	2 211	19	900	1 260	2 208	1 125	-57	12 352
Other income	2	187	0	0	0	-3	0	26	-16	197
Net income	35 170	20 290	2 212	2 447	1 429	1 302	9 627	3 046	-73	75 449
Net gains from financial assets
Administrative and other operating expenses, staff	58	0	6	0	0	-49	-66	-495	0	-547
costs	-10 460	-4 722	-1 797	-1 002	-2 957	-1 219	-7 958	-2 998	73	-33 040
Operating profit Impairment gains/(-losses) on loans and bond	24 768	15 568	421	1 445	-1 528	34	1 603	-447	0	41 862
portfolio	330	365	0	-874	0	0	-26	-604	0	-809
Income tax	-2 420	-1 891	0	-186	-497	0	0	-306	-122	-5 422
Net profit	22 678	14 043	421	385	-2 025	34	1 577	-1 358	-122	35 631

6M 2023	Retail banking	Corporate banking	Asset manage ment	Hire purchase and consumer finance in Estonia	Financial inter mediates	Insurance	UK LHV Ltd	Other activi ties	Elimi nations	Total
Interest income	38 110	59 067	1	7 661	-8 682	106	10 587	47 567	-10 627	143 789
Interest expense Intrabank interest	-10 973	-7 520	0	-2 686	-2 230	-62	-405	-12 530	10 627	-25 779
income/-expense	32 913	-16 363	0	2	16 325	0	0	-32 877	0	0
Net interest income Fee and commission	60 050	35 183	1	4 977	5 413	44	10 182	2 160	0	118 008
income Fee and commission	16 013	2 946	4 336	479	4 267	1 812	2 977	2 188	-2 225	32 794
expense	-8 599	-1 466	0	-398	-127	0	-69	-22	2 117	-8 565
Net fee and commission income	7 415	1 480	4 336	81	4 139	1 812	2 908	2 165	-108	24 229

Other income	190	0	0	0	-6	0	55	-31	210	190
Net income	67 465	36 853	4 337	5 058	9 553	1 850	13 090	4 380	-139	142 447
Net gains from financial assets Administrative and	21	0	178	0	1	-16	-67 -13	8 273	-7 550	838
other operating expenses, staff costs	-20 182	-9 148	-3 519	-1 944	-6 935	-2 250	922	-5 898	136	-63 662
Operating profit Impairment losses on	47 305	27 705	996	3 114	2 618	-416	-899	6 755	-7 553	79 623
loans and advances	67	3 104	0	-1 703	0	0	-35	-659	0	774
Income tax	-4 186	-4 004	-488	-352	-601	0	0	-1 377	-695	-11 703
Net profit	43 186	26 805	508	1 059	2 017	-416	-934	4 719	-8 248	68 694
Total assets 30.06.2023	2 603 783	3 350 502	21 654	94 692	0	43 158	97 059	766 418	669 951	6 307 315
Total liabilities 30.06.2023	3 912 052	635 236	642	77 698	1 132 701	38 633	61 032	423 161	455 656	5 825 499

NOTE 3 Risk Management

The Group's activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The condensed interim financial statements do not include all financial risk management information and disclosures required in the annual financial statements; they should be read in conjunction with the group's annual financial statements as at 31 December 2023. There have been no major changes in the risk management department or in any risk management policies since the year end.

To reduce liquidity risk, LHV Pank has issued mortgage bonds and involved funds from deposit platforms.

The escalated conflict in Ukraine in early 2022, did not have direct impact to LHV credit portfolio, because of historical restrictive lending to customers exposed to risks outside EU. However, changed environment needs to be considered, when issuing credits both to corporates and retail clients going forward.

The Estonian economy has been in recession for 3 years. So far, the cooling economy has had no significant negative impact on the credit portfolio quality. LHV is continuously monitoring credit portfolio quality and is in close dialog with customers, so that in case of a need, potential risks could be mitigated.

30.06.2024 Estonia Germany Other EU USA UK Other Total Due from banks and investment companies 2 583 058 0 241 568 16 606 375 871 344 3 217 447 Financial assets at fair value 8 752 597 13 114 31 1 6 22 501 Financial assets at amortized cost 56 348 0 78 283 0 0 0 134 631 Loans and advances to customers 3 707 631 1 358 27 373 677 148 288 5 217 3 890 544 Receivables from customers 15 919 0 0 0 0 0 15 919 Other financial assets 177 0 0 100 0 0 277 Total financial assets 6 371 885 1 955 360 338 17 414 524 160 5 567 7 281 319 Deposits of customers and loans received 4 345 916 37 753 819 021 40 677 389 724 150 737 5 783 828 Loans received and bonds issued 0 0 735 281 0 0 0 735 281 Subordinated debt 107 519 0 0 0 0 0 107 519 Financial liabilities at fair value 43 0 0 0 0 0 43 Accounts payable and other financial liabilities 71 533 0 0 0 9 562 0 81 095

Total financial liabilities 4 525 011 37 753 1 554 302 40 677 399 286 150 737 6 707 766 Unused loan commitments in the amount of EUR 546 267 thousand are for the residents of Estonia.

NOTE 4 Breakdown of Financial Assets and Liabilities by Countries

31.12.2023	Estonia	Germany	Other EU	USA	UK	Other	Total
Due from banks and investment
companies	2 444 445	0	367 348	27 363	280 092	146	3 119 394
Financial assets at fair value	8 998	6	9 140	303	1	5	18 453
Financial assets at amortized cost	166 205	0	155 683	0	0	0	321 888
Loans and advances to customers	3 448 545	845	25 917	560	80 913	5 011	3 561 791
Receivables from customers	49 505	0	0	0	0	0	49 505
Other financial assets	173	0	0	100	0	0	273
Total financial assets	6 117 871	851	558 088	28 326	361 006	5 162	7 071 304
Deposits of customers and loans
received	4 028 335	132 432	1 023 330	72 933	372 131	101 844	5 731 005
Loans received and bonds issued	0	0	563 728	0	0	0	563 728
Subordinated debt	126 653	0	0	0	0	0	126 653
Financial liabilities at fair value	1 843	0	0	0	0	0	1 843
Accounts payable and other financial
liabilities	128 456	0	0	0	0	0	128 456
Total financial liabilities	4 285 287	132 432	1 587 058	72 933	372 131	101 844	6 551 685

Unused loan commitments in the amount of EUR 495 653 thousand are for the residents of Estonia.

NOTE 5 Breakdown of Assets and Liabilities by Contractual Maturity Dates

	On	0-3	3-12	1-5	Over 5
30.06.2024	demand	months	months	years	years	Total
Liabilities by contractual maturity dates
Deposits from customers	3 659 675	886 948	1 216 527	39 585	334	5 803 069
Loans received and bonds issued	0	63 697	276 078	469 171	0	808 946
Subordinated debt	0	3 769	21 975	107 719	0	133 463
Rental payables	0	11 246	0	0	0	11 246
Accounts payable and other financial liabilities	0	69 849	0	0	0	69 849
Unused loan commitments	546 267	0	0	0	0	546 267
Financial guarantees by contractual amounts	0	60 535	0	0	0	60 535
Foreign exchange derivatives (gross settled)	0	132 096	0	0	0	132 096
Financial liabilities at fair value	0	43	0	0	0	43
Total liabilities	4 205 942	1 228 183	1 514 580	616 475	334	7 565 514

Financial assets by contractual maturity dates
Due from banks and investment companies	3 215 847	0	1 600	0	0	3 217 447
Financial assets at fair value and at amortised	0	59 933	38 280	49 846	1 024	149 083
cost (debt securities)
Loans and advances to customers	0	226 102	647 937	2 825 606	1 816 152	5 515 797
Receivables from customers	0	15 919	0	0	0	15 919
Foreign exchange derivatives (gross settled)	0	132 096	0	0	0	132 096
Other financial assets	277	0	0	0	0	277
Total financial assets	3 216 124	434 050	687 817	2 875 452	1 817 176	9 030 619

Maturity gap from financial assets and liabilities	-989 818	-794 133	-826 763	2 258 977	1 816 842	1 465 105
	On	0-3	3-12	1-5	Over 5
31.12.2023	demand	months	months	years	years	Total
Liabilities by contractual maturity dates
Deposits from customers	3 789 133	578 393	1 328 891	70 035	339	5 766 791
Loans received and bonds issued	0	318	211 703	379 056	0	591 077
Subordinated debt	0	1 806	28 809	127 368	0	157 983
Accounts payable and other financial liabilities	0	128 456	0	0	0	128 456
Unused loan commitments	0	495 653	0	0	0	495 653

Financial guarantees by contractual amounts	0	55 061	0	0	0	55 061
Foreign exchange derivatives (gross settled)	0	148 397	0	0	0	148 397
Financial liabilities at fair value	0	1 843	0	0	0	1 843
Total liabilities	3 789 133	1 409 927	1 569 403	576 459	339	7 345 261

Financial assets by contractual maturity dates
Due from banks and investment companies	3 117 544	0	1 850	0	0	3 119 394
Financial assets at fair value and at amortised
cost (debt securities)	0	98 658	153 577	79 856	1 380	333 471
Loans and advances to customers	0	234 191	542 038	2 641 711	1 692 834	5 110 774
Receivables from customers	0	49 505	0	0	0	49 505
Foreign exchange derivatives (gross settled)	0	148 397	0	0	0	148 397
Other financial assets	273	0	0	0	0	273
Total financial assets	3 117 817	530 751	697 465	2 721 567	1 694 214	8 761 814

Maturity gap from financial assets and liabilities -671 316 -879 176 -871 938 2 145 108 1 693 875 1 416 553 It is possible to take a short-term loan from the central bank against the security of the majority of instruments in the bond portfolio.

All cashflows from financial assets and –liabilities except derivatives include all contractual cash flows.

NOTE 6 Open Foreign Currency Positions

30.06.2024	EUR	CHF	GBP	SEK	USD	Other	Total
Assets bearing currency risk
Due from banks and investment companies	2 814 874	887	386 446	1 353	8 688	5 199	3 217 447
Financial assets at fair value and at amortised cost	150 559	1	1	6 533	35	3	157 132
Loans and advances to customers	3 736 654	11	146 949	210	6 443	277	3 890 544
Receivables from customers	10 002	1	1 888	312	3 550	166	15 919
Other financial assets	100	0	177	0	0	0	277
Total assets bearing currency risk	6 712 190	899	535 462	8 408	18 715	5 644	7 281 319
Liabilities bearing currency risk
Deposits from customers	5 169 258	7 126	453 191	8 563	134 807	10 985	5 783 929
Loans received and bonds issued	735 281	0	0	0	0	0	735 281
Financial liabilities at fair value	43	0	0	0	0	0	43
Accounts payable and other financial liabilities	67 503	35	8 483	599	4 111	364	81 095
Subordinated debt	107 519	0	0	0	0	0	107 519
Total liabilities bearing currency risk	6 079 604	7 161	461 673	9 162	138 918	11 349	6 707 867
Open gross position derivative assets at contractual value	0	6 280	0	792	119 010	6 014	132 096
Open gross position derivative liabilities at contractual value	132 096	0	0	0	0	0	132 096
Open foreign currency position	500 491	18	73 789	37	-1 192	309	573 452

31.12.2023	EUR	CHF	GBP	SEK	USD	Other	Total
Assets bearing currency risk
Due from banks and investment companies	2 810 963	1 047	283 486	1 480	13 570	8 849	3 119 394
Financial assets at fair value and at amoritsed cost	334 032	1	0	6 275	31	2	340 341
Loans and advances to customers	3 473 113	23	79 674	189	8 676	116	3 561 791
Receivables from customers	47 706	0	1 494	168	1 822	-1 685	49 505
Other financial assets	100	0	173	0	0	0	273
Total assets bearing currency risk	6 665 914	1 071	364 827	8 112	24 099	7 281	7 071 304

Open foreign currency position	475 427	-94	43 601	100	-497	1 082	519 619
Open gross position derivative liabilities at contractual value	94 218	0	54 179	0	0	0	148 397
Open gross position derivative assets at contractual value	0	8 359	0	1 334	133 071	5 633	148 397
Total liabilities bearing currency risk	6 096 269	9 524	267 047	9 346	157 667	11 832	6 551 685
Subordinated debt	126 653	0	0	0	0	0	126 653
Accounts payable and other financial liabilities	107 544	30	11 775	479	6 597	2 031	128 456
Financial liabilities at fair value	1 843	0	0	0	0	0	1 843
Loans received and bond issued	563 728	0	0	0	0	0	563 728
Deposits from customers	5 296 501	9 494	255 272	8 867	151 070	9 801	5 731 005
Liabilities bearing currency risk

NOTE 7 Fair Value of Financial Assets and Liabilities

The Management Board of the Group has determined the fair value of assets and liabilities recognised at amortised cost in the balance sheet. To determine the fair value, future cash flows are discounted based on the market interest curve.

The below table provides an overview of the assessment techniques, which depend on the hierarchy of assets and liabilities measured at fair value:

	Level 1	Level 2	Level 3	30.06.2024	Level 1	Level 2	Level 3	31.12.2023
Financial assets at fair value through profit and loss
Shares and fund units*	901	6 186	0	7 087	745	5 856	0	6 601
Bonds at fair value through profit and loss	14 419	0	0	14 419	11 551	0	0	11 551
Interest rate swaps and foreign exchange
forwards	0	995	0	995	0	301	0	301
Total financial assets	15 320	7 181	0	22 501	12 296	6 157	0	18 453
Financial liabilities at fair value through profit and loss
Interest rate swaps and foreign exchange	0	43	0	43	0	1 843	0	1 843
forwards Total financial liabilities	0	43	0	43	0	1 843	0	1 843

*Shares and fund units include the Group companies' AS LHV Varahaldus investment into pension fund units in the amount of EUR 6 186 (31.12.2023: 5 856) thousand. Pursuant to the Investment Funds Act, the mandatory shares of LHV Varahaldus as the management company is 0.5% of the number of units in each of the mandatory pension fund managed by it.

As of June 30, 2024, the liquidity portfolio in the amount of EUR 134 631 thousand is reflected in the amortised cost and the loss from the revaluation of the portfolio is refleced in the income statement in the line Impairment losses on loans and bonds in the total amount of EUR 24 thousand. The estimated market value of the securites recorded in the amortised cost as of June 30, is EUR 133 385 thousand.

Hierarchy levels:

1. Level 1 the price quoted on active market
1. Level 2 a technique which uses market information as
input (rates and interest curves of arms-length transactions) 3. Level 3 – other methods (e.g. discounted cash flow
method) with estimations as input

Interest rate swaps are instruments, where the fair value is determined via the model-based approach by using the inputs available on the active market. The fair value of such non-market derivatives is calculated as a theoretical net present value (NPV), by using independent market parameters and without assuming the presence of any risks or uncertainties. The NPV is discounted by using the risk-free profitability rate available on the market.

As at 30.06.2024 the fair value of corporate loans and overdraft is EUR 82 995 thousand (3.72%) higher than their carrying amount (31.12.2023: 78 899 thousand, 3.90% higher). Loans are issued in the bank's business segments on market conditions. Therefore, the fair value of retail loans does not materially differ from their carrying amount as at 30 June 2024 and 31 December 2023. In determining the fair value of loans, considerable management judgements are used (discounted cash flow method with current market interest is used for the valuation). Loans issued are thus categorised under hierarchy level 3.

Lease interest rates offered to customers generally correspond to interest rates prevailing in the market for such products. Considering that the interest rate environment has been relatively stable since the Group started to provide leasing, consequently the fair value of lease agreements does not materially differ from their carrying amount. As significant management judgment is required to determine fair value, leases are classified as level 3 in the fair value hierarchy.

Leveraged loans, hire-purchase and credit cards granted to customers are of sufficiently short-term nature and they have been issued at market terms, therefore the fair market rate of interest and also the fair value of loans do not change significantly

during the loan term. The fair value level of leveraged loans, hirepurchase, credit cards and consumer loans is 3 as significant judgmental assumptions are used for the valuation process.

Other receivables from customers, along with accrued expenses and other current receivables have been generated in the course of ordinary business and are subject to payment over a short period of time. Their fair value does not thus differ from the carrying amount. These receivables and payables do not bear any interest. The fair value of accounts payable, accrued expenses and other payables is determined based on hierarchy level 3.

Customer deposits with fixed interest rates are mostly short-term with the deposits priced pursuant to market conditions. The majority of the customer deposits include demand deposits. The fair value of the deposits determined via discounting future cash flows does not thus materially differ from the carrying amount. In determining the fair value of customer deposits, considerable management judgements are used. Customer deposits are thus categorised under hierarchy level 3.

Subordinated loans were issued on market terms and considering the movements in loan and interest market, we can say that the market conditions are similar as they were when issuing the subordinated loans so that the fair value of the loans does not materially differ from their carrying value. In determining the fair value of loans, considerable management judgements are used. Subordinated debt are thus categorised under hierarchy level 3.

NOTE 8 Breakdown of Loan Portfolio by Economic Sectors and by Stages

30.06.2024	Stage 1	Stage 2	Stage 3	Provision	Total	%
Individuals	1 361 561	103 023	6 890	-7 444	1 464 030	37,6%
Agriculture	87 180	15 494	5	-334	102 345	2,6%
Mining and Quarrying	771	494	42	-13	1 294	0,0%
Manufacturing	152 894	25 029	19 700	-8 776	188 847	4,9%
Energy	174 901	1 488	0	-1 336	175 053	4,5%
Water and sewerage	29 580	182	0	-388	29 374	0,8%
Construction	87 354	13 189	74	-1 184	99 433	2,6%
Wholesale and retail trade	151 026	28 545	1 445	-2 289	178 727	4,6%
Transportation and storage	68 338	8 896	7	-682	76 559	2,0%
Accommodation and catering	24 698	3 027	163	-164	27 724	0,7%
Information and communication	22 890	1 527	122	-94	24 445	0,6%
Financial activities	126 365	1 403	0	-741	127 027	3,3%
Real estate activities	873 729	133 055	2 294	-6 794	1 002 284	25,8%
Professional, scientific and technical activities	81 315	7 367	342	-296	88 728	2,3%
Administrative and support service activities	110 722	2 377	65	-672	112 492	2,9%
Local municipalities	49 649	7 363	0	-172	56 840	1,5%
Education	5 080	3 254	1	-1 271	7 064	0,2%
Health care	43 905	496	0	-202	44 199	1,1%
Arts and entertainment	47 329	25 292	0	-2 393	70 228	1,8%
Other service activities	12 745	1 178	16	-88	13 851	0,4%
Total	3 512 032	382 679	31 166	-35 333
Provision	-11 515	-11 594	-12 224
Total loan portfolio	3 500 517	371 085	18 942		3 890 544	100%

31.12.2023	Stage 1	Stage 2	Stage 3	Provision	Total	%
Individuals	1 266 071	89 683	7 593	-6 572	1 266 071	38.1%
Agriculture	96 489	4 410	6	-341	96 489	2.8%
Mining and Quarrying	915	583	54	-81	915	0.0%
Manufacturing	137 540	28 214	12 816	-5 035	137 540	4.9%
Energy	176 400	170	12	-1 078	176 400	4.9%
Water and sewerage	17 619	25	0	-209	17 619	0.5%
Construction	84 648	15 426	33	-1 607	84 648	2.8%

Wholesale and retail trade	184 463	14 518	1 336	-1 903	184 463	5.6%
Transportation and storage	67 992	9 586	0	-695	67 992	2.2%
Accommodation and catering	22 591	2 862	406	-183	22 591	0.7%
Information and communication	15 434	551	45	-59	15 434	0.4%
Financial activities	103 638	174	0	-599	103 638	2.9%
Real estate activities	784 846	87 849	824	-7 356	784 846	24.3%
Professional, scientific and technical activities	81 198	3 307	376	-268	81 198	2.4%
Administrative and support service activities	100 311	2 746	17	-584	100 311	2.9%
Local municipalities	58 391	4 946	0	-275	58 391	1.8%
Education	4 954	3 300	3	-1 384	4 954	0.2%
Health care	22 701	504	0	-109	22 701	0.6%
Arts and entertainment	37 591	21 657	0	-1 309	37 591	1.6%
Other service activities	12 858	827	7	-78	12 858	0.4%
Total	3 276 650	291 338	23 528	-29 725
Provision	-11 906	-9 766	-8 053
Total loan portfolio	3 264 744	281 572	15 475		3 561 791	100%

NOTE 9 Net Interest Income

Interest income	Q2 2024	6M 2024	Q2 2023	6M 2023
From balances with credit institutions and investment	468	836	1 603	3 442
companies From central bank	35 363	67 871	18 388	31 755
From debt securities	1 697	4 435	2 650	3 194
Leasing	3 358	6 612	2 645	4 989
Leverage loans and lending of securities	409	806	312	679
Consumer loans	2 992	6 046	2 988	5 880
Hire purchase	733	1 521	878	1 782
Corporate loans	45 107	88 318	32 923	61 237
Credit card loans	297	591	245	477
Mortgage loans	19 044	37 587	15 198	27 624
Private loans	967	1 971	904	1 746
Other loans	808	1 411	580	984
Total	111 243	218 005	79 312	143 789
Interest expense
Deposits of customers and loans received	-32 171	-62 156	-11 692	-16 368
Other interest expense	-169	-3 86	-92	-310
Subordinated liabilities	-8 479	-16 120	-4 628	-9 103
including loans between related parties	-76	-152	-89	-178
Total	-40 819	-78 662	-16 412	-25 781
Net interest income	70 424	139 343	62 900	118 008
Interest income on loans by customer location	19 893	68 492	13 270	47 388
(interest on bank balances and bonds excluded):	Q2 2024	6M 2024	Q2 2023	6M 2023

Estonia	71 032	140 112	56 227	104 537
Great Britain	2 683	4 751	444	861
Total	73 715	144 863	56 671	105 398

NOTE 10 Net Fee and Commission Income

Fee and commission income	Q2 2024	6M 2024	Q2 2023	6M 2023
Security brokerage and commissions paid	1 562	3 319	1 046	2 154
Asset management and similar fees	4 052	7 982	3 810	7 484
Currency exchange fees conversion revenues	2 229	4 377	1 275	2 704
Fees from cards and payments	9 451	18 463	7 769	15 230
Other fee and commission income	3 826	7 025	3 250	5 222
Total	21 120	41 166	17 150	32 794
Fee and commission expense
Security brokerage and commissions paid	-734	-1 541	-626	-1 230
Expenses related to cards	-1 966	-3 665	-2 461	-3 834
Expenses related to acquiring	-1 752	-3 366	-1 693	-3 396
Other fee and commission expense	-406	-789	-18	-105
Total	-4 858	-9 361	-4 798	-8 565
Net fee and commission income	16 262	31 805	12 352	24 229
Fee and commission income by customer location:	Q2 2024	6M 2024	Q2 2023	6M 2023
Estonia	19 295	36 925	12 933	26 755
Great Britain	1 825	4 241	4 217	6 039
Total	21 120	41 166	17 150	32 794

NOTE 11 Operating Expenses

	Q2 2024	6M 2024	Q2 2023	6M 2023
Wages, salaries and bonuses	15 617	30 486	11 677	23 347
Social security and other taxes*	5 491	10 897	4 174	8 171
Total personnel expenses	21 108	41 383	15 851	31 518
IT expenses	3 471	6 571	3 747	6 883
Information services and bank services	449	912	403	830
Marketing expenses	973	1 631	1 087	1 896
Office expenses	609	1 164	982	1 533
Transportation and communication expenses	166	337	130	278
Staff training and business trip expenses	446	832	401	752
Other outsourced services	3 391	6 092	3 113	5 828
Other administrative expenses	3 510	7 417	4 889	9 376
Depreciation of non-current assets	2 739	5 734	1 974	3 959
Operational lease payments	319	336	215	389
Other operating expenses	406	706	248	420
Total other operating expenses	16 479	31 732	17 189	32 144
Total operating expenses	37 587	73 115	33 040	63 662

*lump-sum payment of social, health and other insurances

NOTE 12 Balances with the Central Bank, Credit Institutions and Investment Companies

30.06.2024	31.12.2023

*Cash and cash equivalents in the Statement of Cash Flows	3 160 801	3 061 645
Total	3 215 847	3 117 544
Demand deposit from central bank*	3 122 485	3 012 179
Due from investment companies*	8 218	12 509
Statutory reserve capital with the central bank	55 046	55 899
months*	30 098	49 466
Demand and term deposits with maturity less than 3

The breakdown of receivables by countries has been presented in Note 4. The minimum reserve requirement as at 30 June 2024 was 1% (31 December 2023: 1%) of all financial resources (customer deposits and loans received). The reserve requirement is to be fulfilled as a monthly average in euros or in the foreign financial assets approved by the central bank.

NOTE 13 Deposits of Customers and Debt Securities in issue

Deposits by type	Individuals	Financial entities	Non-financial	entities Public sector	30.06.2024
Demand deposits	815 298	1 049 569	1 714 031	80 777	3 659 675
Term deposits	1 100 441	119 164	857 937	46 712	2 124 254
Total	1 915 739	1 168 733	2 571 968	127 489	5 783 929

		Financial	Non-financial
Deposits by type	Individuals	entities		entities Public sector	31.12.2023
Demand deposits	745 430	1 220 273	1 747 979	74 778	3 788 460
Term deposits	1 040 349	97 380	761 184	43 632	1 942 545
Total	1 785 779	1 317 653	2 509 163	118 410	5 731 005

Dept securities in issue	Covered bond	Preferred senior bond	30.06.2024
Dept securities	249 738	485 543	735 281
Total	249 738	485 543	735 281
Dept securities in issue	Covered bond	Preferred senior bond	31.12.2023
Dept securities	249 718	314 010	563 728
Total	249 718	314 010	563 728

In June 2020, LHV Pank made a successful debut issue of EUR 250 million in covered bonds to international investors. 31 institutional investors participated in the 5-year issue and the interest rate was 0.12%. The issue by LHV Pank was the first debut issue since the beginning of the COVID-19 crisis. The issue received an Aa1 rating from Moodys and was listed on the Dublin Stock Exchange.

In September 2021, LHV Group issued EUR 100 million of preferred bonds with a four-year maturity, which includes the option to call back the transaction after the third year. The issue received a Baa3 rating and was listed on the Dublin Stock Exchange.

In November 2022, LHV Group Carried out a tap issue of senior unsecured bonds with a maturity date in September 2025. As a result, LHV raised additional funds in the amount of EUR 88 million.

In the second quarter of 2023, MREL eligible unsubordinated bonds were issued in the amount of 18 million euros, and in the fourth quarter, an additional issue in the amount of EUR 100 million took place.

The nominal interest rate of the deposits of customers and loans granted equals to their effective interest rate, as no other significant fees have been implemented.

NOTE 14 Accounts payable and other liabilities

Financial liabilities	30.06.2024	31.12.2023
Trade payables and payables to merchants	6 155	2 131
Other short-term financial liabilities	8 034	16 288
Lease liabilities	11 246	13 415
Payments in transit	40 095	48 632
Financial guarantee contracts issued	1 290	615
Liabilities from insurance services	14 275	47 375
Subtotal	81 095	128 456
Not financial liabilities
Performance guarantee contracts issued Non-financial liabilities	1 772	1 750
Tax liabilities	10 815	10 630
Payables to employees	6 095	4 408
Other short-term liabilities	891	751
Subtotal	19 573	17 539
Total	100 668	145 995

Payables to employees consist of unpaid salaries; bonus accruals and vacation pay accrual for the reporting period and the increase in liabilities is caused by the increase in the number of employees during the year. Payments in transit consist of foreign payments and payables to customers related to intermediation of securities transactions. All liabilities, except for financial guarantees, are payable within 12 months and are therefore recognised as current liabilities.

NOTE 15 Contingent Liabilities

Irrevocable transactions	Performance guarantees	Financial guarantees	Letter of credit	Unused loan commitments	Total
Liability in the contractual amount as at 30 June
2024	85 206	60 535	3 253	546 267	695 261
Liability in the contractual amount as at 31
December 2023	56 217	55 061	3 732	495 653	610 663

NOTE 16 Basic Earnings and Diluted Earnings Per Share

In order to calculate basic earnings per share, net profit attributable to owners of the parent has been divided by the weighted average number of shares issued. The dilution effect when calculating the Diluted earnings per share comes from the share options granted to management and key employees.

	Q2 2024	6M 2024	Q2 2023	6M 2023
Total profit attributable to owners of the parent (EUR
thousand)	38 286	78 830	35 353	68 007
Weighted average number of shares (in thousands of units)	322 911	320 922	317 629	316 527
Basic earnings per share (EUR) Weighted average number of shares used for calculating the	0.12	0.25	0.11	0.21
diluted earnings per shares (in thousands of units)	327 494	326 505	323 313	322 513
Diluted earnings per share (EUR)	0.12	0.24	0.11	0.21

NOTE 17 Capital Management

The goal of the Group's capital management is to:

✓ ensure continuity of the Group's business and ability to generate return for its shareholders;
✓ maintain a strong capital base supporting the development of business;
✓ comply with capital requirements as established by supervision authorities.

The amount of capital that the Group managed as of 30.06.2024 was 609 697 thousand euros (31.12.2023 596 357 thousand euros). The goals of the Group's capital management are set based on both the regulative requirements and additional internal buffer.

The Group follows the general principles in its capital management:

The Group must be adequately capitalized at all times, ensuring the necessary capital to ensure economic preservation in all situations;
The main focus of the capital management is on tier 1 own funds, because only tier 1 own funds can absorb losses. All other capital layers in use are dependent of tier 1 own funds volume;
Capital of the Group can be divided in two: 1) regulative minimum capital and 2) capital buffer held by the Group. In order to reach its long-term economic goals the Group must on one hand strive towards proportional lowering of the regulative minimumcapital (through minimizing risks and high transparency). On the other hand, the Group must strive towards sufficient and conservative capital reserve, which will ensure economic preservation even in the event of severe negative risk scenario;
The risk appetite set by the Group is an important input to capital management planning and capital goal setting. Higher risk appetite requires marinating higher capital buffer.

Capital base	30.06.2024	31.12.2023
Paid-in share capital	32 419	31 983
Share premium	146 958	143 372
Reserves	4 713	4 713
Other reserves	732	-996
Accumulated loss	320 757	229 287
Intangible assets (subtracted)	-20 934	-21 278
Profit for the reporting period (COREP)	28 448	129 740
Other adjustments	-7	-8
Dividends to be distributed	0	-41 578
CET1 capital elements or deductions	-4 429	-382
CET1 instruments of financial sector entities where the institution has a significant investment	-3 960	-3 496
CET1 instruments of financial sector entities where the institution has not a significant
investment	0	0
Total Core Tier 1 capital	504 697	471 357
Additional Tier 1 capital	35 000	55 000
Total Tier 1 capital	539 697	526 357
Subordinated liabilities	70 000	70 000
Total Tier 2 capital	70 000	70 000
Total net own funds	609 697	596 357

The Group has complied with all regulative capital requirements during the financial year and in previous year.

NOTE 18 Transactions with related parties

In preparing the financial statements of the Group, the following entities have been considered related parties:

owners that have significant impact on the Group and the entities related to them;
members of the management board and legal entities controlled by them (together referred to as management);
members of the supervisory board;
close relatives of the persons mentioned above and the entities related to them.

Transactions	Q2 2024	6M 2024	Q2 2023	6M 2023
Interest income	739	1 445	97	178
incl. management	67	135	34	80
incl. shareholders that have significant influence	672	1 310	63	98
Fee and commission income	25	94	58	116
Incl. management	9	18	8	16
incl. shareholders that have significant influence	16	76	50	100
Interest expenses from deposits	60	94	22	44
incl. management	14	35	2	4
incl. shareholders that have significant influence	46	59	20	40
Interest expenses from subordinated loans	76	152	89	181
incl. management	1	2	2	4
incl. shareholders that have significant influence	75	150	87	174

Balances	30.06.2024	31.12.2023
Loans and receivables as at the year-end	37 274	28 579
incl. management	4 917	4 717
incl. shareholders that have significant influence	32 357	23 862
Deposits as at the year-end	16 377	9 351
incl. management	1 541	2 448
incl. shareholders that have significant influence	14 836	6 903
Subordinated loans as at the year-end	1 587	4 462
incl. management	78	172
incl. shareholders that have significant influence	1 509	4 290

The table provides an overview of the material balances and transactions involving related parties. All other transactions involving the close relatives and the entities related to members of the management board and supervisory board and the minority shareholders of the parent company AS LHV Group have occurred according to the overall price list. The management and shareholders with significant influence include also their related entities and persons.

Loans granted to related parties are issued at market conditions.

In Q2, salaries and other compensations paid to the management of the parent AS LHV Group and its subsidiaries totalled EUR 805 thousand (Q2 2023: EUR 832 thousand), including all taxes. As at 30.06.2024, remuneration for June and accrued holiday pay in the amount of EUR 202 thousand (31.12.2023: EUR 179 thousand) is reported as a payable to management. The Group did not have any long-term payables or commitments to the members of the Management Board and the Supervisory Board as at 30.06.2024 and 31.12.2023 (pension liabilities, termination benefits, etc.). In Q2 2024, the remuneration paid to the members of the Group's Supervisory Board totalled EUR 29 thousand (Q2 2023: EUR 27 thousand).

Management is related to the share-based compensation plan. In Q2 2024 the share-based compensation to management amounted to EUR 614 thousand (Q2 2023: EUR 588 thousand).

The Group has signed contracts with the members of the Management Board, which do not provide for severance benefits upon termination of the contract. In any matters not regulated by the contract, the parties adhere to the procedure specified in the legislation of the Republic of Estonia.

NOTE 19 Tangible and intangible assets

					Costs incurred for
					the acquisition of	Total
(in thousands of euros)	Tangible assets	Right of use assets	Total tangible assets	Intangible assets	customer contracts	intangible assets
Balance as at 31.12.2022
Cost	15 815	12 165	27 980	15 421	17 595	33 016
Accumulated depreciation and amortisation	-6 264	-4 858	-11 122	-9 006	-10 156	-19 162
Carrying amount 31.12.2022	9 551	7 307	16 858	6 415	7 439	13 854
Purchase of non-current assets	3 422	8 766	12 188	3 838	0	3 838
Depreciation/amortisation charge	-1 753	-5 344	-7 097	-3 427	-1 297	-4 724
Recalculation of the accumulated
amortisation	86	14	100	537	0	537
Write-off of on-current assets	-56	116	60	-736	0	-736
Capitalised selling costs	0	0	0	0	875	875
Balance as at 31.12.2023
Cost	19 181	21 047	40 228	19 060	18 470	37 530
Accumulated depreciation and amortisation	-7 931	-10 188	-18 119	-12 234	-11 453	-23 687
Carrying amount 31.12.2023	11 250	10 859	22 109	6 826	7 017	13 843
Purchase of non-current assets	599	0	599	1 414	0	1 414
Depreciation/amortisation charge	-1 691	-1 786	-3 477	-1 655	-602	-2 257
Recalculation of the accumulated
amortisation	10	53	63	-112	0	-112
Exchange rate differences	36	-530	-494	0	0	0
Capitalised selling costs	0	0	0	0	467	467
Balance as at 30.06.2024
Cost	19 816	20 517	40 333	20 362	18 937	39 299
Accumulated depreciation and amortisation	-9 648	-11 391	-21 039	-13 889	-12 055	-25 944
Carrying amount 30.06.2024	10 168	9 126	19 294	6 473	6 882	13 355

NOTE 20 Subordinated debts

Subordinated debts (in thousands of euros)

	Year issue	Amount	Interest rate	Maturity date
Subordinated Tier 2 liabilities	2020	35 000	6.0%	September 30 2030
Subordinated Tier 2 liabilities	2023	35 000	10.5%	September 29 2033
Additional subordinated Tier 2 liabilites	2020	15 000	9.5%	Perpetual
Additional subordinated Tier 2 liabilites	2022	20 000	10.5%	Perpetual
Subordinated debt as at 30.06.2024		105 000
Subordinated debt as at 31.12.2023		125 000

NOTE 21 Changes in impairments

Changes in impairments	Balance as at 01.01	Impairment provisions/reversals set up during the year	Written off during the reporting perion	Balance as at 30.06
Corporate loans	-21 068	-9 446	5 150	-25 364
Consumer loans	-4 310	-2 546	1 779	-5 077
Investment financing	-11	-4	4	-11
Leasing	-2 107	-790	355	-2 542
Private loans	-2 229	-911	802	-2 338
Total 2024	-29 725	-13 697	8 090	-35 332

Changes in impairments	Balance as at 01.01	Impairment provisions/reversals set up during the year	Written off during the reporting perion	Balance as at 31.12
Corporate loans	-15 498	-14 602	9 032	-21 068
Consumer loans	-2 108	-3 231	1 029	-4 310
Investment financing	-13	-5	7	-11
Leasing	-2 009	-758	660	-2 107

Total 2023 -20 642 -20 284 11 201 -29 725

Shareholders of AS LHV Group

AS LHV Group has a total of 324 188 933 ordinary shares, with a nominal value of 0.1 euro.

As at 30 June 2024, AS LHV Group has 39 197 shareholders:

147 883 563 aktsiat (45.62%) were held by members of the Supervisory Board and Management Board, and related parties.
176 305 370 aktsiat (54.38%) were held by Estonian entrepreneurs and investors, and related parties.

Top ten shareholders as at 30 June 2024:

Number of	Participation	Name of shareholder
shares 37 162 070	11,5%	AS Lõhmus Holdings
33 910 370	10,5%	Viisemann Investments AG
25 449 470	7,9%	Rain Lõhmus
12 446 070	3,8%	Krenno OÜ
11 310 000	3,5%	AS Genteel
10 875 280	3,4%	AS Amalfi
10 828 210	3,3%	Ambient Sound Investments OÜ
7 188 990	2,2%	SIA Krugmans
6 691 020	2,1%	Bonaares OÜ
6 037 590	1,9%	OÜ Merona Systems

Shares held by members of the Management Board and Supervisory Board

Madis Toomsalu holds 1 568 980 shares.

Martti Singi holds 1 042 209 shares and Unitas OÜ holds 77 540 shares.

Meelis Paakspuu holds 816 140 shares.

Jüri Heero holds 980 530 shares and Heero Invest OÜ holds 306 820 shares.

Rain Lõhmus holds 25 449 470 shares, AS Lõhmus Holdings 37 162 070 shares and OÜ Merona Systems 6 037 590 shares.

Andres Viisemann holds 564 760 shares. Viisemann Holdings OÜ holds 1 300 000 shares and Viisemann Investment AG holds 33 910 370 shares.

Tauno Tats does not hold shares. Ambient Sound Investments OÜ holds 10 828 210 shares.

Tiina Mõis holds 49 880 shares. AS Genteel holds 11 310 000 shares.

Heldur Meerits does not hold shares. AS Amalfi holds 10 875 280 shares.

Raivo Hein does not hold shares. OÜ Kakssada Kakskümmend Volti holds 5 003 370 shares, Astrum OÜ holds 3 890 shares and Lame Maakera OÜ holds 483 120 shares.

Liisi Znatokov does not hold shares.

Supervisory Boards and Management Boards of AS LHV Group and its Subsidiaries

AS LHV Group

Supervisory board: Rain Lõhmus, Andres Viisemann, Tiina Mõis, Heldur Meerits, Raivo Hein, Tauno Tats, Liisi Znatokov Management board: Madis Toomsalu, Martti Singi, Meelis Paakspuu, Jüri Heero

AS LHV Varahaldus

Supervisory board: Madis Toomsalu, Andres Viisemann, Kadri Kiisel Management board: Vahur Vallistu, Joel Kukemelk, Eve Sirel

AS LHV Pank

Supervisory board: Madis Toomsalu, Rain Lõhmus, Andres Viisemann, Tiina Mõis, Heldur Meerits, Raivo Hein Management board: Kadri Kiisel, Jüri Heero, Annika Goroško, Meelis Paakspuu, Indrek Nuume, Martti Singi

AS LHV Finance

Supervisory board: Kadri Kiisel, Madis Toomsalu, Veiko Poolgas, Jaan Koppel Management board: Heidy Kütt

AS LHV Kindlustus

Supervisory board: Madis Toomsalu, Erki Kilu, Veiko Poolgas, Jaan Koppel Management board: Martti-Sten Merilai, Taavi Lehemaa

LHV UK Limited

Board of Directors: Erki Kilu, Andres Kitter Directors: Madis Toomsalu, Paul Hancock, Keith Butcher, Sally Veitch

AS LHV Paytech

Supervisory board: Kadri Kiisel, Madis Toomsalu, Erki Kilu, Andres Kitter Management board: Lauri Teder

Signatures of the Management Board to the Condensed Consolidated Interim Report

The Management Board has prepared the summary of results for January to June 2024 period the condensed consolidated interim financial statements of AS LHV Group for the 6-months period ended 30 June 2024.

The management board confirms that according to their best knowledge the interim report presents a fair view of LHV Group AS's assets, liabilities, financial position and profit or loss of the issuer and the entities involved in the consolidation as a whole and contains a description of the main risks and doubts.

23.07.2024

Madis Toomsalu

Martti Singi

Meelis Paakspuu

Jüri Heero