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LHV Group Interim / Quarterly Report 2024
2219_ip_2024-04-23_38ffedb1-f7fb-401a-b309-fa0467bbebce.pdf
Interim / Quarterly Report
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LHV Group
Strong growth in business volumes
A quarter with strong result
| Financial results, EURt | 9 quarters | Q1-24 | Q4-23 | △ quarter |
|---|---|---|---|---|
| Net interest income | 68,918 | 67,670 | +1,248 | |
| Net fee and commission income | 15,543 | 16,299 | -756 | |
| Other income | ------- | 954 | 1,723 | -769 |
| Total net income | 85,415 | 85,693 | -277 | |
| Total operating expenses | ■■■■■■■■■ | 35,528 | 37,852 | -2,324 |
| Earnings before impairment | 49,888 | 47,841 | +2,047 | |
| Impairment losses | 2,850 | 9.430 | -6,579 | |
| Income tax expense | 6,335 | 5,642 | +693 | |
| Net profit | 40,702 | 32,769 | +7,933 | |
| Business volumes, EURm | 9 quarters | Q1-24 | Q4-23 | △ quarter |
| Deposits from customers | 5,934 | 5,731 | +203 | |
| Loans portfolio (net) | 3.645 | 3.562 | +83 | |
| Assets under management | 1,540 | 1,519 | +21 | |
| No of customers, thous. | 595 | 587 | +8 | |
| Fin. intermediaries' payments, thous. pcs | 17,821 | 15,914 | +1,906 | |
| Key figures | 9 quarters | Q1-24 | Q4-23 | A quarter |
| Cost / income ratio (C/I) | 41.6% | 44.2% | - 2.6 pp | |
| Net interest margin (NIM) | ============================================================================================================================================================================== | 3.8% | 4.0% | - 0.2 pp |
| pre-tax ROE* | 32.9% | 28.7% | + 4.1 pp | |
| ROE* | 28.5% | 24.5% | + 4.0 pp |
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Both profitability and business volumes better than planned
| Financial results, EURt | 13 months | Mar 24 | YTD24 | YTD23 | FP YTD A YTD FP | |
|---|---|---|---|---|---|---|
| Total net income, incl. | 29,394 | 85,415 | 68,383 | 77,528 | +7,887 | |
| Net interest income | 23,034 | 68,918 | 55.108 | 62.142 | +6,776 | |
| Net fee and commission income | 5,603 | 15,543 | 11,877 | 14,941 | +602 | |
| Total operating expenses | 11,823 | 35,528 | 30,622 | 35,211 | +316 | |
| Earnings before impairment | 17,572 | 49,888 | 37,761 | 42,317 | +7,571 | |
| Impairment losses | 2,120 | 2,850 | -1,583 | 3,906 | -1,056 | |
| Income tax expense | 1,927 | 6,335 | 6,281 | 5,531 | +804 | |
| Net profit, incl. | 13.525 | 40.702 | 33,063 | 32,880 | +7,823 | |
| attr, to shareholders | 13,433 | 40,544 | 32,654 | 32,808 | +7,737 | |
| Business volumes, EURm | 13 months | Mar 24 | YTD24 | YTD23 | FP YTD | A YTD FP |
| Deposits from customers | 5,934 | 5,934 | 4,867 | 5,977 | -42 | |
| Loans (net) | 3,645 | 3,645 | 3,149 | 3,587 | +58 | |
| Assets under management | 1,540 | 1,540 | 1.451 | 1,526 | +14 | |
| Fin. intermediaries' payments, thous. pcs | 6,524 | 17,821 | 9,124 | 13,916 | +3,905 | |
| Key figures | 13 months | Mar 24 | YTD24 | YTD23 | FP YTD | A YTD FP |
| Cost / income ratio (C/I) | 40.2% | 41.6% | 44.8% | 45.4% | - 3.8 pp | |
| Net interest margin (NIM) | 3.7% | 3.8% | 3.6% | 3.5% | + 0.4 pp | |
| pre-tax ROE* | 31.0% | 32.9% | 36.3% | 27.1% | + 5.8 pp | |
| ROE* | 27.1% | 28.5% | 30.4% | 23.2% | + 5.2 pp |
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Loan volumes ahead of the plan
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The quality of the loan portfolio remains good
| Financial results, EURt | 9 quarters | Q1-24 | Q4-23 | A quarter |
|---|---|---|---|---|
| Net interest income | 60,249 | 59,576 | +673 | |
| Net fee and commission income | 7,871 | 8.444 | -573 | |
| Other income | 667 | 3,531 | -2,864 | |
| Total net income | 68,786 | 71,551 | -2,765 | |
| Total operating expenses | 22,804 | 22,870 | -67 | |
| Earnings before impairment | 45,983 | 48,681 | -2,698 | |
| Impairment losses | 2,807 | 9,588 | -6,781 | |
| Income tax expense | --------- | 6,382 | 5,520 | +861 |
| Net profit | 36,794 | 33,572 | +3,222 | |
| Business volumes, EURm | 9 quarters | Q1-24 | Q4-23 | △ quarter |
| Deposits from customers | 5,671 | 5.535 | +136 | |
| incl. banking services' deposits | 1,029 | 991 | +38 | |
| Loans (net) | 3.549 | 3.549 | +1 | |
| No of customers, thous. | 428 | 417 | +11 | |
| Key figures | 9 quarters | Q1-24 | Q4-23 | △ quarter |
| Cost / income ratio (C/I) | 33.2% | 32.0% | + 1.2 pp | |
| Net interest margin (NIM) | 3.5% | 3.7% | - 0.1 pp | |
| pre-tax ROE* | 34.1% | 30.8% | + 3.3 pp | |
| ROE* | 29.1% | 26.4% | + 2.7 pp |
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All main indicators surpassed the financial plan
| Financial results, EURt | 13 months | Mar 24 | YTD24 | YTD23 | FP YTD A YTD FP | |
|---|---|---|---|---|---|---|
| Total net income, incl. | 22,643 | 68,786 | 61,660 | 61,469 | +7,317 | |
| Net interest income | 19,243 | 60,249 | 52,900 | 52,668 | +7,581 | |
| Net fee and commission income | 2,814 | 7,871 | 7,548 | 8,524 | -653 | |
| Total operating expenses | 7,323 | 22,804 | 20,786 | 22,487 | +317 | |
| Earnings before impairment | 15,320 | 45,983 | 40,874 | 38,983 | +7,000 | |
| Impairment losses | 2,118 | 2,807 | -1,592 | 3,865 | -1,058 | |
| Income tax expense | 2,067 | 6,382 | 5,147 | 5,077 | +1,304 | |
| Net profit | 11,135 | 36,794 | 37,318 | 30.040 | +6,754 | |
| Business volumes, EURm | 13 months | Mar 24 | YTD24 | YTD23 | FP YTD | A YTD FP |
| Deposits from customers | 5,671 | 5.671 | 4,919 | 5,605 | +66 | |
| incl. banking services' deposits | 1,028 | 1,028 | 1,183 | 984 | +44 | |
| Loans (net) | 3,549 | 3,549 | 3,127 | 3.472 | +77 | |
| Key figures | 13 months | Mar 24 | YTD24 | YTD23 | FP YTD | A YTD FP |
| Cost / income ratio (C/I) | 32.3% | 33.2% | 33.7% | 36.6% | - 3.4 pp | |
| Net interest margin (NIM) | 3.3% | 3.5% | 3.5% | 3.1% | + 0.4 pp | |
| T1 capital adequacy | 18.5% | 18.5% | 20.9% | 19.0% | 0.5 pp - |
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| Total capital adequacy | 20.8% | 20.8% | 23.7% | 21.4% | 0.6 pp - |
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Strong deposit-raising capability
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Productive and active quarter
| Financial results, EURt | 9 quarters | Q1-24 | Q4-23 | |
|---|---|---|---|---|
| Total net income, incl. | 11,483 | 11,952 | -469 | |
| Net interest income | 8,797 | 9,647 | -850 | |
| Net fee and commission income | 2,562 | 2.195 | +367 | |
| Other net income | 124 | 110 | +13 | |
| Total operating expenses | 8,390 | 8,875 | -485 | |
| Earnings before impairment | 3,093 | 3,078 | +15 | |
| Impairment losses | 1 | 44 | 31 | +13 |
| Income tax expense | -1,819 | 0 | -1,819 | |
| Net profit | 4,868 | 3,046 | +1,822 | |
| Business volumes, EURm | Q1-24 | Q4-23 | △ quarter | |
| Deposits from customers | 378 | 239 | +139 | |
| Loans (net) | તેરી | 79 | +16 | |
| Key figures | Q1-24 | Q4-23 | △ quarter | |
| Cost / income ratio (C/I) | 73.1% | 74.3% | - 1.2 pp | |
| Net interest margin (NIM) | 8.6% | 11.2% | - 2.6 pp | |
| pre-tax ROE | 17.8% | 23.4% | 5.7 pp | |
| ROE | 28.4% | 23.4% | + 4.9 pp |
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First quarter slightly more modest than the ambitious financial plan
| Financial results, EURt | 13 months | Mar 24 | YTD24 | YTD23 | FP YTD A YTD FP | |
|---|---|---|---|---|---|---|
| Total net income, incl. | 4,359 | 11,483 | 3,462 | 11,702 | -219 | |
| Net interest income | 3,528 | 8.797 | 2,763 | 10.476 | -1.680 | |
| Net fee and commission income | 842 | 2,562 | 699 | 1,225 | +1,337 | |
| Other net income | -11 | 124 | -1 | 0 | +124 | |
| Total operating expenses | IMV | 3,017 | 8,390 | 5,965 | 8,122 | +268 |
| Earnings before impairment | 1,342 | 3,093 | -2,503 | 3,580 | -487 | |
| Impairment losses | 2 | 44 | 8 | 42 | +2 | |
| Income tax expense | 0 | -1.819 | 0 | 0 | -1,819 | |
| Net profit | 1,340 | 4,868 | -2,512 | 3,538 | +1,330 | |
| Business volumes, EURm | 13 months | Mar 24 | YTD24 | YTD23 | FP YTD | A YTD FP |
| Deposits from customers | 378 | 378 | 0 | 424 | -46 | |
| Loans (net) | 95 | 95 | 23 | 115 | -20 | |
| Key figures | 13 months | Mar 24 | YTD24 | YTD23 | FP YTD | A YTD FP |
| Cost / income ratio (C/I) | 69.2% | 73.1% | 172.3% | 69.4% | + 3.7 pp | |
| Net interest margin (NIM) | 9.8% | 8.6% | 32.4% | 10.0% | - 1.4 pp | |
| T1 capital adequacy | 44.4% | 44.4% | na | 24.6% | + 19.8 pp | |
| Total capital adequacy | 44.4% | 44.4% | na | 24.6% | + 19.8 pp |
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Very strong start to the year in stock markets
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Quarterly pre-tax profit 0.6 EURm
| Financial results, EURt | 9 quarters | Q1-24 | Q4-23 | Δ quarter |
|---|---|---|---|---|
| Total net income | 2,187 | 2,252 | -66 | |
| Total operating expenses | 1,825 | 1,838 | -13 | |
| EBIT | 361 | 415 | -53 | |
| Net financial income | 219 | 125 | +94 | |
| Income tax expense | 801 | 0 | +801 | |
| Net profit | = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = | -220 | 539 | -760 |
| Business volumes, EURm | 9 quarters | Q1-24 | Q4-23 | A quarter |
| Pillar II pension funds | 1,442 | 1,428 | +14 | |
| Pillar III pension funds | 90 | 84 | +6 | |
| Furofunds | 7 | 7 | +0 | |
| Active customers of PII funds, th. | 120 | 123 | -3 | |
| Key figures | 9 quarters | Q1-24 | Q4-23 | △ quarter |
| Cost / income ratio (C/I) | 75.9% | 77.3% | 1.4 pp - |
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| pre-tax ROE | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 11.6% | 9.7% | + 1.8 pp |
| ROE | -4.4% | 9.7% | - 14.1 pp |
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Net profit and fund volumes slightly ahead of the financial plan
| uuendada | |||
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Optimal growth continues
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A quarter with strong results
| Financial results, EURt | 9 quarters | 01-24 | Q4-23 | △ quarter |
|---|---|---|---|---|
| Total net income | 1,451 | 1,705 | -254 | |
| Total expenses | 1,333 | 1,350 | -18 | |
| Technical result | 118 | 355 | -237 | |
| Net investments income | 154 | 73 | +81 | |
| Other operating income and expenses | -16 | -5 | -11 | |
| Net profit | 256 | 423 | -166 | |
| Business volumes, EURt | 9 quarters | Q1-24 | Q4-23 | A quarter |
| Gross written premiums | 10,788 | 8,198 | +2,591 | |
| No of customers (thous.) | 164 | 161 | +4 | |
| Key figures | 9 quarters | Q1-24 | Q4-23 | △ quarter |
| Net loss ratio | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 67.3% | 61.2% | + 6.1 pp |
| Net expense ratio | 31.3% | 32.1% | 0.7 pp | |
| pre-tax ROE | "שמש" | 19.1% | 33.6% | 14.5 pp |
| ROE | 19.1% | 33.6% | 14.5 pp |
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A month with a low loss frequency
| Financial results, EURt | 13 months | Mar 24 | YTD24 | YTD23 | FP YTD A YTD FP | |
|---|---|---|---|---|---|---|
| Total net income, incl. | 707 | 1,451 | 552 | 1,506 | -55 | |
| Net earned premiums | 2,516 | 7,237 | 4,499 | 6,916 | +322 | |
| Net incurred losses | 1,489 | 4,873 | 3,509 | 4,514 | +359 | |
| Other net income | -320 | -913 | -438 | -895 | -18 | |
| Total expenses | 450 | 1,333 | 1,031 | 1,460 | -128 | |
| Technical result | 257 | 118 | -479 | 45 | +73 | |
| Net investment income | 42 | 154 | 32 | 23 | +131 | |
| Other operating income and expenses | -5 | -16 | -3 | -15 | ||
| Net profit | 294 | 256 | -450 | 53 | +203 | |
| Business volumes, EURt | 13 months | Mar 24 | YTD24 | YTD23 | FP YTD | A YTD FP |
| Gross written premiums | 2,769 | 10,788 | 7,712 | 10,014 | +/ / 4 | |
| No of customers (thous.) | 164 | 164 | 155 | na | na | |
| Key figures | 13 months | Mar 24 | YTD24 | YTD23 | FP YTD | A YTD FP |
| Net loss ratio | 59.2% | 67.3% | 78.0% | 65.3% | + 2.1 pp | |
| Net expense ratio | 30.9% | 31.3% | 33.4% | 34.3% | - 3.0 pp |
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3 months
Risks and capitalisation
Capitalisation
Capital ratios and minimum requirements as of March 2024
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Loan portfolio quality
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Liquidity and funding
Loans-to-deposits ratio LCR and NSFR
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Madis Toomsalu [email protected]
Meelis Paakspuu [email protected]
