LHV Group — Interim / Quarterly Report 2024

Apr 23, 2024

Interim Report January – March 2024 Summary of Results

Q1 2024 in comparison with Q4 2023

• Net profit EUR 40.7 m (EUR 32.8 m), of which EUR 40.5 m (EUR 32.5 m) is attributable to owners of the parent
• Earnings per share EUR 0.13 (EUR 0.10)
• Net income EUR 85.4 m (EUR 85.7 m)
• Operating expenses EUR 35.5 m (EUR 37.9 m)
• Loan and bond provisions EUR 2.9 m (EUR 9.4 m)
• Income tax expenses EUR 6.2 m (EUR 5.6 m)
• Return on equity 28.5% (24.5%)
• Capital adequacy 21.7% (23.5%)

Q1 2024 in comparison with Q1 2023

• Net profit EUR 40.7 m (EUR 33.1 m), of which EUR 40.5 m (EUR 32.7 m) is attributable to owners of the parent
• Earnings per share EUR 0.13 (EUR 0.1)
• Net income EUR 85.4 (EUR 68.4 m)
• Operating expenses EUR 35.5 m (EUR 30.6 m)
• Loan and bond provisions EUR 2.9 m (EUR -1.6 m)
• Income tax expenses EUR 6.3 m (EUR 6.3 m)
• Return on equity 28.5% (30.4%)
• Capital adequacy 21.7% (22.2%)

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 9
Overview of AS LHV Pank Consolidation Group 12
Overview of LHV Bank Limited 15
Overview of AS LHV Varahaldus 16
Overview of AS LHV Kindlustus 18
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 19
Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income19
Condensed Consolidated Interim Statement of Financial Position20
Condensed Consolidated Interim Statement of Cash Flows21
Condensed Consolidated Interim Statement of Changes in Equity22
Notes to the Condensed Consolidated Interim Financial Statements 23
NOTE 1 Accounting Policies 23
NOTE 2 Business Segments23
NOTE 3 Risk Management 26
NOTE 4 Breakdown of Financial Assets and Liabilities by Countries26
NOTE 5 Breakdown of Assets and Liabilities by Contractual Maturity Dates 27
NOTE 6 Open Foreign Currency Positions28
NOTE 7 Fair Value of Financial Assets and Liabilities29
NOTE 8 Breakdown of Loan Portfolio by Economic Sectors and by Stages 30
NOTE 9 Net Interest Income31
NOTE 10 Net Fee and Commission Income32
NOTE 11 Operating Expenses32
NOTE 12 Balances with the Central Bank, Credit Institutions and Investment Companies 33
NOTE 13 Deposits of Customers and Loans Received 33
NOTE 14 Accounts payable and other liabilities34
NOTE 15 Contingent Liabilities 34
NOTE 16 Basic Earnings and Diluted Earnings Per Share34
NOTE 17 Capital Management 35
NOTE 18 Transactions with related parties 36
NOTE 19 Tangible and intangible assets 37
NOTE 20 Subordinated debts 38
NOTE 21 Changes in impairments38
Supervisory Boards and Management Boards of AS LHV Group and its Subsidiaries 40
Signatures of the Management Board to the Condensed Consolidated Interim Report 41

Summary of financial results

The Group's consolidated net profit in Q1 2024 was EUR 40.7 million, having grown by EUR 7.9 million compared to Q4 2023 and by EUR 7.6 million compared to Q1 2023. The profit for the Group's shareholders was EUR 40.5 million in Q1 2024, which was EUR 8.0 million more than in Q4 2023.

The Group's Q1 2024 consolidated net income was EUR 85.4 million, which decreased by EUR 0.3 million compared to Q4 2023 and increased by EUR 17 million compared to Q1 2023.

The Group's net interest income grew by 2% in Q1 2024 compared to Q4 2023, amounting to EUR 68.9 million (EUR 67.7 million in Q4 2023). Compared to Q1 2023, the Group's net interest income grew by 25%.

Net service fee income decreased by 5%, amounting to EUR 15.5 million (EUR 16.3 million in Q4 2023). Compared to Q1 2023, the Group's net service fee income grew by 31%. In total, the Group's net income decreased by 0.3% in Q1 2024 compared to Q4 2023, amounting to EUR 85.4 million (EUR 85.7 million in Q4 2023).

Operating expenses amounted to EUR 35.5 million in Q1, having decreased by EUR 2.3 million compared to Q4 2023 and increased by EUR 4.9 million compared to Q1 2023.

The Group's Q1 operating profit was EUR 49.9 million (EUR 47.8 million in Q4 2023). Write-downs amounted to EUR 2.9 million in Q1 (EUR 9.4 million in Q4 2023).

Income tax expense on future disbursements of dividends by subsidiaries at the consolidated level was EUR 0.2 million in Q1.

The Group's Q1 net profit was EUR 40.7 million (EUR 32.8 million in Q4 2023).

Return on equity owned by LHV shareholders was 28.5% in Q1 2024, which increased by 4.0 percentage points from Q4 2023 (24.5%) and decreased by 1.9 percentage points compared to Q1 2023 (30.4%).

The Group's loan volume grew to EUR 3 645 million by the end of Q1 (EUR 3 562 million in Q4 2023), having grown by 2% or EUR 83 million in a quarter (a growth of EUR 186 million in Q4 2023). Compared to Q1 2023, the Group's loan volume has grown by 16%.

The volume of deposits increased by EUR 203 million in a quarter (an increase of EUR 415 million in Q4 2023). The volume of deposits engaged from deposit platforms grew the most: by EUR 98 million. The growth was driven by UK platform deposits. The volume of the deposits of ordinary clients as well as that of financial intermediaries also grew. Of the deposits, EUR 3 775 million (EUR 3 788 million in Q4 2023) were call deposits, EUR 1,492 million (EUR 1 372 million in Q4) term deposits and EUR 668 million (EUR 570 million in Q4) platform deposits.

Across business units, AS LHV Pank's consolidated net profit amounted to EUR 36.8 million in Q1, the net loss of AS LHV Varahaldus amounted to EUR 0.2 million and the net profit of AS LHV Kindlustus amounted to EUR 0.3 million. The net profit of LHV Bank was EUR 4.9 million. The net profit of AS LHV Paytech was EUR 0.2 million. Viewed separately, LHV Group made a net profit of EUR 79.6 million which resulted from the dividends received from subsidiaries.

The Bank's net profit at the consolidated level was EUR 36.8 million in Q1 2024, which is EUR 3.2 million more than the result in the previous quarter (EUR 33.6 million in Q4 2023) and EUR 0.5 million less than the net profit of Q1 2023. The number of the Bank's clients grew by 10 500 in a quarter (10,100 in Q4 2023), amounting to a total of 428´000.

The Bank's loan portfolio grew by EUR 1 million in Q1 (EUR 97 million in Q4 2023), reaching EUR 3 549 million. LHV Bank Ltd repaid the loan in the amount of EUR 66.4 million.

The deposits of the Bank's clients increased by EUR 136 million in Q1, while the balance of the deposits of payment intermediaries increased by EUR 38 million, platform deposits decreased by EUR 23 million, and the deposits of the remaining clients grew. The total volume of deposits was EUR 5 671 million at the end of Q1.

As at the end of Q1 2024, the net loan portfolio of LHV Bank amounted to EUR 95 million and the volume of deposits was EUR 378 million. The net profit of LHV Bank was EUR 4.9 million in Q1 2024 (EUR 3.0 million in Q4 2023). The net income of LHV Bank was EUR 11.5 million in Q1 2024 (EUR 12.0 million in Q4 2023).

The net loss of LHV Varahaldus was EUR 0.2 million in Q1 2024 (a profit of EUR 0.5 million in Q4 2023). The service fee income of LHV Varahaldus amounted to EUR 2.2 million (EUR 2.3 million in Q4 2023). The operating expenses of LHV Varahaldus were EUR 1.5 million in Q1 2024 (EUR 1.5 million in Q4 2023). Expenses related to non-current assets (including depreciation on client agreements) were EUR 0.4 million in Q1 2024 (EUR 0.4 million in Q4 2023).

The total volume of funds managed by LHV increased by EUR 21 million in a quarter (an increase of EUR 68 million in Q4 2023). The number of active 2nd pillar clients decreased by 3 300 in a quarter (a decrease of 1,200 in Q4 2023).

The net profit of LHV Kindlustus was EUR 0.3 million in Q1 2024 (EUR 0.4 million in Q4 2023). The volume of gross premiums increased by EUR 2.6 million in the quarter, reaching EUR 10.8 million. Income from insurance activities at LHV Kindlustus decreased by EUR 0.4 million in the quarter, to EUR 1.4 million.

There is only one class of shares issued by LHV, each share gives 1 voting right. The shares of LHV Group is traded on NASDAQ Tallinn main list since May 2016. Graph below presents LHV Group share performance against OMX Tallinn index and OMX Baltics benchmark index over last three years. LHV Group share has outperformed both indexes and has raised 57%, when comparison indexes have increased by 16% and 21% respectively. LHV Group share price has been 3.53 euros in the end of year and based on the stock price, LHV's market value was EUR 1 129 million.

Business volumes		Year
EUR million	Q1 2024	Q4 2023	over quarter	Q1 2023	over year
Loan portfolio	3 644.6	3 561.8	2%	3 149.2	16%
Financial investments	245.8	335.1	-27%	297.0	-18%
Deposits of customers	5 934.4	5 731.0	4%	4 866.9	22%
incl. deposits of financial intermediates	1 375.5	1 317.7	4%	1 435.6	-4%
Equity (including minority interest)	598.7	556.4	8%	453.9	32%
Equity (owners' share)	591.3	548.4	8%	446.9	32%
Volume of funds managed	1 539.8	1 519.1	1%	1 451.0	6%
Client securities	3 640.1	3 504.0	4%	3 459.6	5%

Income statement			Quarter	Q1	Year			Year
EUR million	Q1 2024	Q4 2023	over quarter	2023	over year	3M 2024	3M 2023	over year
Net interest income	68.92	67.67	2%	55.11	25%	68.92	55.11	25%
Net fee and commission income	15.54	16.30	-5%	11.88	31%	15.54	11.88	31%
Other financial income	0.54	0.48	13%	1.39	-61%	0.54	1.39	-61%
Total net operating income	85.00	84.45	1%	68.38	24%	85.00	68.38	24%
Other income	0.42	1.24	-66%	0.01	4 100%	0.42	0.01	4 100%
Operating expenses	-35.53	-37.85	-6%	-30.63	16%	-35.53	-30.63	16%
Loan and bond portfolio gains/(-losses)	-2.85	-9.43	-70%	1.58	NA	-2.85	1.58	NA
Income tax expenses	-6.34	-5.64	12%	-6.28	1%	-6.34	-6.28	1%
Net profit	40.70	32.77	24%	33.06	23%	40.70	33.06	23%
Including attributable to owners of the parent	40.54	32.54	25%	32.65	24%	40.54	32.65	24%

Ratios EUR million			Quarter over		Year over			Year over
	Q1 2024	Q4 2023	quarter	Q1 2023	year	3M 2024	3M 2023	year
Average equity
(attributable to owners of the parent)	569.9	531.5	38.4	429.9	140.0	569.9	429.9	140.0
Return on equity (ROE), %	28.5	24.5	4.0	30.4	-1.9	28.5	30.4	-1.9
Return on assets (ROA), %	2.2	1.9	0.3	2.2	0.0	2.2	2.2	0.0
Interest-bearing assets, average	7 167.7	6 763.0	404.7	6 044.9	1 122.8	7 167.7	6 044.9	1 122.8
Net interest margin (NIM) %	3.85	4.00	-0.15	3.65	0.20	3.85	3.65	0.20
Price spread (SPREAD) %	3.56	3.77	-0.21	3.59	-0.03	3.56	3.59	-0.03
Cost/income ratio %	41.6	44.2	-2.6	44.8	-3.2	41.6	44.8	-3.2
Profit attributable to owners before income tax	46.8	38.2	8.6	39.1	7.7	46.8	39.1	7.7

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

World economic growth slowed in 2023, but remained more resilient than feared. Inflation has receded faster than expected and the labour market has remained strong, which has bolstered consumers' real purchasing power. In the beginning of 2024, global economic activity surged, as showed by economic output ramping up to seven-month highs. Yet global growth and further lowering of inflation continue to face risks that dampen the outlook for rapid growth. The fraught geopolitical situation has led to disruptions in key supply chains; and if the war in the Middle East expands, economic impacts may rear their head in the form of rising oil and natural gas prices. Meanwhile, pressure on monetary policy continues from the central banks' restrictive measures, and the longer-term influences have not yet become visible. According to forecasts, world economic growth is set to slow in 2024, falling to 2.9-3.1%¹ .

Yet the disparities between the regions of the world remain significant. Stronger growth in the US and developing regions kept the world's economy as a whole resilient, yet in most European countries, the economy slowed. The Chinese economy is expected to slow from 5.2% to 4.6%¹ in 2024, hurt by the weakness of the Chinese real estate sector, low consumer confidence, deflation and worsening of relations with the West. Among high-income countries, the US has performed stronger than expected, with economic growth of 2.5% in 2023. By 2024, the US economy is projected to slow to 2.1% growth, in anticipation of latent effects of strict monetary policy materializing, tighter government fiscal policy and decreasing demand. European economic growth remained near zero in the second half of 2023, and the economy continued to be shaky in Q1 of 2024. Nor is the forecast for 2024 especially optimistic for the Eurozone, with growth of 0.6% projected. The situation in the UK economy, which experienced a 0.3% contraction, is similar to that of the Eurozone. As to Japan, where benchmark rates have been negative, interest rates entered positive territory in Q1 of 2024 with pressure mounting from inflation still above 2%.

The rise in the world's biggest stock market indices continued in Q1 of 2024. The S&P 500 rose by 10.2% over the quarter, reaching historical highs. The Tokyo stock exchange continued the rapid rise that started last year and the Nikkei 225's growth reached 20.6%. The European stock market index STOXX 600 saw 7% first-quarter growth. At the end of March 2024, the

1 IMF. World Economic Outlook, January 2024 [WWW] https://www.imf.org/en/Publications/WEO/Issues/2024/01/30/wo rld-economic-outlook-update-january-2024

London stock index FTSE 100 was nevertheless short of its historical peak, growing 2.8% during the quarter. The Shanghai exchange bounced back in February and its value was 2.2% higher by the end of March.

In Europe, economic stagnation could still be felt in Q1 of 2024 in Europe. Low consumer confidence, after-effects of high energy prices and weakness of investments and interest-sensitive companies. Unlike the rest of the world, trade and business activity stayed weak in the Eurozone, but the first signs of a recovery could be seen in February. The labour market in the Eurozone has remained strong and unemployment is near record lows, 6.5%. Inflation continued to slow in Q1, and stood at 2.4% in March² . Higher prices of services are the main factor contributing to rising prices: the fact that wage growth continues prevents inflation from slowing enough. At the same time, there are still major differences between inflation figures in various Eurozone countries. In Q1, inflation was lowest in Lithuania, Latvia and Finland, just 1% year-over-year in March. On the other hand, in Croatia, Austria and Estonia, inflation was still high, 4.9%, 4.2% and 4.1% respectively.

Inflation in the Eurozone in Q1 of 2024 remained higher than the European Central Bank (ECB)'s target of 2%. The ECB Governing Council continued to hold course as far as restrictive monetary policy and made no changes to interest rates. The rate on main refinancing operations stayed at 4.5%, the deposit facility at 4%, and the marginal lending facility at 4.75%. In Q4 of 2023, the 6 month Euribor began dropping; it was relatively volatile in Q1 of this year, varying between 3.822 and 3.944% and reaching 3.851% by the end of March. Markets are anticipating a lowering of reference interest rates in the second half of 2024, considering that in Q4 of 2023, the 12-month Euribor fell below the 3- and 6 month Euribor.

According to forecasts, economic growth in the Eurozone is poised to gradually recover during 2024, above all due to easing restrictive monetary policy influences, recovering purchasing power, slowing inflation and improving trade. The ECB believes geopolitical tensions in the Red Sea will not cause additional significant disruptions in supply chains and export should improve thanks to strengthening foreign demand. Overall, the Eurozone

en/index.html?itemId=/content/publication/0fd73462 en#section-d1e46-28b1e449af

OECD. Economic Outlook, Interim Report February 2024 [WWW] https://www.oecd-ilibrary.org/sites/0fd73462-

² Eurostat. HICP – monthly data (annual rate of change), prc_hicp_manr.

economy is forecasted to grow 0.6% in 2024 and average inflation will drop from 5.4% to 2.3%.³

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. Prices remained higher than in the Eurozone, although inflation continued to slow falling to 3.2% in March. Since inflation is still above the target, the Bank of England, like its counterpart ECB, left rates unchanged at 5.25% at the last meeting of the year. Signs in the direction of weakening can also be seen on the labour market. Although unemployment was largely stable compared to the last quarter – 3.9% – the falling labour force participation rate is prompting concern. The outlook for the UK economy is also more modest than that of the Eurozone. Growth of 0.2% to 0.7% is forecasted for British economy for 2024⁴ .

Economic growth in Estonia's main trading partners is held in check by weak demand. The Latvian and Lithuanian economy grew slowly in 2023, but for several consecutive quarters. Finland and Sweden have seen multiple quarters of recession and the slump in the construction sector continues. Low investment and falling demand have started to be reflected in the labour market as well in Sweden and Finland. Unemployment is the highest it has been since the end of 2021, 8.2% in Sweden and 7.6% in Finland.

The Estonian economy shrank 3.1% in 2023 and statistics for the first months do not clearly signal economic recovery. Consumer and business confidence is at its lowest level since the pandemic started in spring 2020. General confidence has seen weak growth, since economic sentiment improved slightly in the first three months of 2024.

Value.-added has fallen in most fields of activity, dropping 3.2% as a whole during 2023. The bulk of the economic contraction of the last two years has been seen in a narrow range of sectors, above all energy, processing industry and transport and warehousing. In February 2024, total industrial output was 5.7% lower than it was a year earlier. At the same time, in early 2024, expectations for industrial and construction sector output fell back to the level of previous months. Business cycle indicators are still weak and companies must cut costs and if possible slash prices to remain competitive.

The consumer price index has retreated from the 2023 peak and inflation was down to 3.9% in March 2024. Nevertheless, tax hikes implemented at the start of 2024 have kept Estonian inflation higher than the Eurozone average. Core inflation, which excludes food and energy prices, has remained high due to prices of services rising.

The impact of the recession on the labour market remains limited and brisk wage growth outstripped the rise in consumer prices. As of late 2023, unemployment was 6.3%, but the number of registered unemployed on file has slowly increased at the start of this year. Still, the higher workforce cost per production unit is forcing some companies to raise production efficiency. Because of that; unemployment is forecasted to rise slightly in 2024, to 7.6%.⁵

The financial situation faced by households and ability to put money in savings has started to improve a bit, but a recovery will take time. Households' savings deposits grew 5.9% in February; corporate deposits, 2.3%. 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 3.75%. Since the last quarter of 2023, the loan market has stabilized and the growth rate of housing loans issued and loans to companies has remained 5.9% and 6.2%, respectively. The average interest rate on housing loans has been around 5.5%, while the average interest rate on long-term loans to companies rose to 7%. The complicated economic situation has raised banks' risk assessments, 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 housing loans in arrears rose from 0.1% of the entire loan portfolio to 0.2% during the quarter. Loans in arrears for companies remained at 0.25% of the total.

The outlooks for the Estonian economy for 2024 continue to be weak, but the conditions for returning to growth have improved. According to the Estonian central bank forecast⁵ , the economy will contract 0.6% in 2024, but a new growth cycle should start in the second half of the year. The main factor behind the drop is lower external demand, and the continuing Russia-Ukraine war. Competitiveness on foreign markets remains low but is expected to get better in future. At the same time, the forecasted slowing of price growth in 2024 to 3.2% is a positive development, and will also increase people's purchasing power.

³ ECB. ECB staff macroeconomic projections for the euro area, March 2024 [WWW] https://www.ecb.europa.eu/press/projections/html/ecb.projectio

ns202403_ecbstaff~f2f2d34d5a.en.html

⁴ Office for Budget Responsibility, Economic and fiscal outlook, March 2024 [WWW] https://obr.uk/efo/economic-and-fiscal-outlookmarch-2024/

⁵ Eesti Pank. Rahapoliitika ja Majandus, 1/2024 [WWW] https://www.eestipank.ee/publikatsioonid/rahapoliitika-jamajandus/2024/rahapoliitika-ja-majandus-12024

The Group's Liquidity, Capitalisation and Asset Quality

As at 31 March 2024, the Group's own funds stood at EUR 524.4 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 21.7% (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 Q1 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 31 March 2024, MREL-TREA ratio was 33.13% (31.12.2023: 35.68%) and MREL-LRE was 12.12% (31.12.2023: 12.62%).

The Group's liquidity coverage ratio (LCR), as defined by the Basel Committee, stood at 198.4% as at the end of March (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 462.1% (31.12.2023: 449.9%). The Group recognises cash and bond portfolios as liquidity buffers. These accounted for 49% of the balance sheet (31 December 2023: 48%). The ratio of loans to deposits stood at 59% as at the end of the first quarter (31 December 2023: 60%). Group's maturity structure is presented in Note 5.

Capital base	31.03.2024 31.12.2023 31.12.2022
Paid-in share capital	31 983	31 983	31 542
Share premium	143 372	143 372	141 186
Statutory reserves transferred from net profit	4 713	4 713	4 713
Other reserves	-122	-996	-1 441
Retained earnings	359 027	229 287	170 010
Intangible assets (subtracted)	-21 088	-21 278	-23 333
Net profit for the reporting period (COREP)	0	129 740	46 180
Other adjustments	-5	-8	-369
Dividends to be distributed	-41 578	-41 578	0
CET1 capital elements or deductions	-3 200	-382	0
CET1 instruments of financial sector entities where the institution has a significant investment	-3 666	-3 496	-3 351
CET1 instruments of financial sector entities where the institution has not a significant investment	0	0	-181
Tier 1 capital	469 436	471 357	364 956
Additional Tier 1 capital	55 000	55 000	55 000
Total Tier 1 capital	524 436	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	594 436	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	9 237	12 316	11 553
Companies under standard method	1 338 941	1 300 707	1 204 523
Retail claims under standard method	227 583	226 592	219 031
Public sector under standard method	13 857	0	0
Housing real estate under standard method	626 763	610 181	513 483
Overdue claims under standard methods	18 462	19 759	8 004
Investment funds' shares under standard method	188	188	186
Other assets under standard method	109 607	109 295	102 697
Total capital requirements for covering the credit risk and counterparty credit risk	2 344 638	2 279 038	2 059 477
Foreign currency risk	6 298	1 793	18 324
Interest position risk	0	0	0
Equity portfolio risk	778	746	740
Credit valuation adjustment risk	2 316	1 966	2 228
Operational risk under base method	385 579	259 437	197 920
Total risk weighted assets	2 739 609	2 542 980	2 278 689
Capital adequacy (%)	21.70	23.45	21.72
Tier 1 capital ratio (%)	19.14	20.70	18.43
Core Tier 1 capital ratio (%)	17.14	18.54	16.02

The credit quality of the group remained at a good level. A loan discount reserve of 31.8 million euros was formed in the balance sheet at the end of March to cover estimated loan losses. As of the end of the first quarter, the fair value of the collateral of the loan portfolio is 7% higher than the book value of the loan portfolio.

Loan portfolio distribution	Over-collateralized loans		Under-collateralized loans	Total
	Carrying value	Fair value of collateral	Carrying value	Fair value of collateral	Carrying value	Fair value of collateral
Stage 1	1 619 634	2 563 897	1 670 687	948 529	3 290 321	3 512 426
Corporate Lending	662 752	937 163	1 223 632	633 943	1 886 384	1 571 106
Consumer Financing	0	0	85 044	0	85 044	0
Investment Financing	7 239	27 237	2 683	2 228	9 922	29 465
Leasing	19 098	27 879 1 571	116 395	87 478	135 493	115 357
Private Lending	930 545	618	242 933	224 880	1 173 478	1 796 498
Stage 2	181 266	282 214	159 497	96 148	340 763	378 362
Corporate Lending	113 107	154 500	114 201	73 692	227 308	228 192
Consumer Financing	0	0	15 485	0	15 485	0
Investment Financing	0	4	31	27	31	31
Leasing	5 326	8 980	20 906	15 109	26 232	24 089
Private Lending	62 833	118 730	8 874	7 320	71 707	126 050
Stage 3	10 318	20 614	3 198	2 363	13 516	22 977
Corporate Lending	5 747	8 575	2 330	1 983	8 077	10 558
Consumer Financing	0	0	457	0	457	0
Investment Financing	5	11	0	0	5	11
Leasing	758	1 479	411	380	1 169	1 859
Private Lending	3 808	10 549	0	0	3 808	10 549

• • Net profit EUR 36.8 million
• The volume of loans grew by EUR 1 million, LHv Bank Ltd repaid loan in the amount of EUR 66,4 million
• LHV Savings account
• LHV Business Lounge in airport
• Chat GPT
• The title of the Top Employer

EUR million	Q1 2024	Q4 2023	Change %	Q1 2023	Change %	From the beginning of 2024	From the beginning of 2023	Change %
Net interest income	60.25	59.58	1%	52.90	14%	60.25	52.90	14%
Net fee and commission income	7.87	8.44	-7%	7.55	4%	7.87	7.55	4%
Other financial income	0.38	2.37	-84%	1.18	-68%	0.38	1.18	-68%
Total net operating income	68.50	70.39	-3%	61.63	11%	68.50	61.63	11%
Other income	0.29	1.16	-75%	0.03	867%	0.29	0.03	867%
Operating expenses Loan and bond portfolio	-22.79	-22.87	0%	-20.78	10%	-22.79	-20.78	10%
gains/(-losses)	-2.81	-9.59	-71%	1.59	-277%	-2.81	1.59	-277%
Income tax expenses	-6.38	-5.52	16%	-5.15	24%	-6.38	-5.15	24%
Net profit	36.81	33.57	10%	37.32	-1%	36.81	37.32	-1%
Loan portfolio	3 549	3 549	0%	3 127	13%
Financial investments	233	327	-29%	281	-17%
Deposits of customers incl. deposits of financial	5 671	5 535	2%	4 919	15%
entities	1 341	1 230	9%	1 488	-10%
Subordinated liabilities	114	114	0%	114	0%
Equity	491	530	7%	423	16%

LHV Pank earned net interest income of EUR 60.2 million and EUR 7.9 million in net service fee income in Q1. Net financial income amounted to EUR 0.4 million in Q1. In total, the Bank's income was EUR 68.8 million and expenses were EUR 22.8 million. Net income rose by 12% and expenses increased by 10% over the year. The discounts of loans and bonds amounted to EUR 2.8 million in Q1. We made forward-looking discounts and the volume of the portfolio grew. 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 6.2 million in Q1. Income tax expense on future disbursements of dividends by subsidiaries at the consolidated level was EUR 0.2 million in Q1.

The Bank's Q1 profit amounted to EUR 36.8 million, which is 10% more than in Q4 2023 (33.6) and 1% less than in Q1 2023 (37.3).

Of the various service fees, income from settlements, currency exchange, cards and the receipt of card payments contributed the largest amount.

The total volume of the Bank's loan portfolio was more than EUR 3 549 million by the end of Q1 (Q4 2023: EUR 3 549 million). The volume of loans grew by EUR 1 million in Q1 (Q4 2023: a growth of EUR 97 million). LHV Bank Ltd repaid the loan in total of EUR 66.4 million. The net retail loan portfolio grew by 2% during the quarter, reaching EUR 1 625 million (Q4 2023: EUR 1 595 million). The net corporate loan portfolio grew by 2% during the quarter, reaching EUR 1,924 million (Q4 2023: EUR 1,887 million).

The volume of deposits at the Bank increased by EUR 136 million from the previous quarter and stood at EUR 5 671 million (Q4 2023: EUR 5 535 million). The volume of payment intermediaries' deposits grew by EUR 38 million during the quarter. Of the deposits, EUR 3 734 million were call deposits, EUR 1 497 million term deposits and EUR 440 million platform deposits. The volume of the deposits of private customers amounted to EUR 1 717 million as at the end of the quarter, having grown by 2% in a quarter.

The Bank's expense-income ratio was 33.2% in Q1, which was 0.5 percentage points lower than in Q1 2023 (33.7%).

The corporate credit portfolio, which includes loans and guarantees, grew EUR 262.5 million over the year (+14%) with quarter-over-quarter growth of EUR 60.6 million (+3%). The greatest source of the growth was loans issued to the power, gas, steam and conditioned air sector, which grew by EUR 111.3 million (+106%) over the year. Next came loans to companies in the transport and warehousing sector, which grew EUR 43.8 million from the year before (+300%) and loans issued to companies in the real estate sector, which grew EUR 31.8 million (+4%) over the year.

Compared to Q4 2023, the portfolio growth was most influenced by the sector engaged in real estate activities (quarterly growth EUR 33.4 million; +4%), followed by arts, entertainment and recreation (EUR 13.1 million; +23%) and the construction sector (EUR 8.4 million; +13%).

The majority of corporate loans were granted to the real estate sector, which makes up 38% 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 20% of development projects. LHV's market share of new development financing in Tallinn made up about one-third by estimate at the end of Q1 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 58%.

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.

Over the quarter, the number of the bank's clients grew by 10 000. Client activity at the beginning of the year was more modest than in earlier periods. Deposits grew by EUR 136 million over the quarter and loans increased by EUR 1 million.

Ordinary clients' deposits grew by EUR 121 million during the quarter, deposits from deposit platform decreased by EUR 23 million and financial intermediaries' deposits increased by EUR 38 million. The financial situation faced by households and their savings capacity has started to improve a bit, but a recovery will take time. Annual growth of households savings reached 5.9% in February; corporate deposits, 2.3%. We have outpaced market growth by offering appealing interest rates and landing new customers. The growth of term deposits has slowed in anticipation of lower interest rates, and the average market interest rate in February was down to 3.75%. Up to the end of Q1, we kept our rates at a higher level. Financial intermediaries with larger deposits have been impacted by the lower activity level on the market, volatility is down, but clients are diversifying their clients' deposits among different banks.

Loans to companies outside the LHV group grew by EUR 37 million and consumer loans increased by EUR 30 million. Since the last quarter of 2023, the loan market has stabilized and the growth rate of housing loans issued and loans granted to companies has remained 5.9% and 6.2%, respectively. The beginning of the year is usually calmer, but a very successful home loan refinancing campaign and lower amortization are behind the strong growth. The home loan refinancing campaign helps clients switch banks without notary fees, which has helped us set records for new sales for several months. These contracts appear as portfolio growth with some latency. The campaign will also continue in Q2.

Net profit for the quarter was EUR 36.8 million. The strong firstquarter result was influenced in a positive direction mainly by interest income. The growth in interest income is slowing, since the interest paid on deposits are growing faster. Due to higher interest income and lower discounts, net profit exceeded the planned target by EUR 6.8 million by the end of the quarter. Income from service charges is slightly lagging behind target and expenses are at the planned levels.

Loan impairments in the first quarter were EUR 2.8 million. As the macroeconomic environment has changed compared to the end of the year, we performed model-based forward-looking writedowns. The write-downs have also impacted rating changes for individual clients. Yet the outlook for the macroeconomic environment in Q2 tends positive, and the bank envisages impairments as being conservative. 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.

In Q1, we also introduced a number of new features in user friendliness and launched a new product on the market. In the internet bank, we updated the portfolio overview and added a watchlist feature. Additionally, we updated the pension function and added the option of submitting an application for larger contributions. We fleshed out our private banking value offer with

the MasterCard Airport Security Fast Track service and added ordinary account investments to the pre-filled data in the automated tax declaration. January was the market launch of our LHV Savings Account, which allows customers to put money aside in an interactively fun way. It's easy to use the product and clients earn higher interest rates this way. The product has had a great reception. In March, we launched a bank service offer for teachers in order to publicly recognize education workers.

To increase our visibility, we launched cooperation with Tallinn Airport. We are the name sponsor for the re-opened business lounge, Airport LHV Lounge. The Youth Bank is now on TikTok and Instagram.

To increase internal efficiency, we adopted the use of ChatGPT to find new ways of simplifying everyday work and to generate more value-added.

LHV Pank was selected as the Top Employer in an annual survey conducted by Estonia's leading job portal and recruitment agency, CV.ee (CV-Online). In other news, the Dive bank customer service evaluation survey once again found us to be the bank with the best customer service, this time with record-high results. The Ministry of Culture and the Estonian Olympic Committee bestowed the title of Friend of Sport for 2024 on LHV Pank.

Overview of LHV Bank Limited

In Q1, the bank focused on attracting savings. The bank joined its third savings and investment platform, Hargreaves Lansdown. By the end of the quarter, the bank had more than 4000 depositors. Deposits grew by EUR 139 million over the quarter. That allowed the bank to completely repay its loan from LHV Pank and achieve independent financing status. In future, deposits will be raised as needed by adjusting interest rates to keep interest expenses incurred by deposits optimal.

Loans grew by EUR 16 million over the quarter. In both Q1 and Q2, the first priority is to increase the network of brokers and loan account managers, with the goal of doubling their number by the end of the first half-year. As at the end of the quarter, the total in loans approved by the Credit Committee but yet-to-be-issued stood at EUR 79 million. Since the process of disbursing loans is lengthy, taking up to several months, the approved loans are beginning to be released in Q2. To speed up the issuing process, the network of law offices was significantly expanded and mapping and optimization of processes within the company were launched. A fixed-interest-rate product, Specialist Buy to Let, was introduced to the market, meant for larger investors for financing purchases of residential real estate for the purpose of leasing it out.

Business volumes of Banking Services clients' payments set record levels by the end of the quarter. New agreements were concluded and a number of new clients were activated.

Net profit for the quarter was EUR 4.9 million. Net profit included an extraordinary recognition of tax assets generated last year, in the amount of EUR 1.8 million. By the end of the quarter, the bank's share capital was increased by EUR 24 million to EUR 86 million.

Work continued toward developing the retail banking services, (the mobile bank and the new website. To stick to the schedule, the planned functionality of the services was critically reviewed and the necessary decisions were made in regard to the minimum requirements needed for market launch.

The bank started the process of joining EBA Clearing to enable euro payments directly to its clients in future.

In the beginning of the year, managers of a number of important business areas joined the organisation and the team gained experienced members. The bank adopted the Enterprise version of ChatGPT for all employees and started the first test project for implementing artificial intelligence in work processes.

EUR million	Q1 2024	Q4 2023	change %
Net interest income	8.80	9.65	-9%
Net fee and commission income	2.56	2.20	16%
Other financial income	-0.03	0.0	NA
Total net operating income	11.33	11.85	-4%
Other income	0.16	0.11	45%
Operating expenses Loan and bond portfolio	-8.40	-8.88	-5%
gains/(-losses)	-0.04	-0.03	33%
Income tax expenses	1.82	0.0	NA
Net profit	4.87	3.05	60%
Loan portfolio	95.2	79.4	20%
Deposits of customers	377.7	239.0	58%
Equity	83.8	53.5	57%

Overview of AS LHV Varahaldus

• Profit before income tax in Q1 EUR 0.6 million
• Net loss EUR -0.2 million, due to the EUR 0.8 million income tax expense paid on EUR 4.9 million in dividends
• 120 thousand active second-pillar clients by the end of the quarter
• Volume of assets in second-pillar funds more than EUR 1.4 billion, increase of EUR 14 million in the quarter
• The number of third-pillar clients more than 35 thousand, the volume of third-pillar funds EUR 90 million by the end of March

EUR million	Q1 2024	Q4 2023	Change %	Q1 2023	Change %	3M 2024	3M 2023	Change %
Net fee and commission income	2.19	2.25	-3%	2.13	3%	2.19	2.13	3%
Net financial income	0.22	0.12	83%	0.17	29%	0.22	0.17	29%
Operating expenses	-1.46	-1.48	-1%	-1.32	11%	-1.46	-1.32	11%
Depreciation of non-current assets	-0.37	-0.35	6%	-0.40	-8%	-0.37	-0.40	-8%
Profit	0.58	0.54	7%	0.58	0%	0.58	0.58	0%
Financial investments	6.0	6.0	0%	8.0	-25%
Equity	18.0	23.0	-22%	20.0	-10%
Assets under management	1 540.0	1 519.0	1%	1 451.0	6%

In Q1, the operating income of LHV Varahaldus amounted to EUR 2.2 million and profit before income tax was EUR 0.5 million. The operating income was on the same scale with the previous quarter and largely met the financial plan, the second-pillar management fee being marginally lower than expected was related to weaker yields in January and February when the management fee charged on volumes was lower. Expenses also largely corresponded to the budget, the main differences were the personnel expenses being nearly 5% lower than planned and the depreciation expense on intangible assets related to client contracts being 9% higher than expected. Net financial income or income earned from the increase of value of own shares was EUR 0.2 million in Q1, the yields of major funds met expectations after a strong March. The net profit was strongly affected by the EUR 4.9 million paid as dividend to the shareholder in March, and the related income tax expense of EUR 0.8 million.

The year began with a strong tailwind for the major equity markets. Measured in euros, SP500 grew by 12.9%, MSCI World by 11.4% and Euro Stoxx 50 by 12.8% in three months. Over the past six months, the growth has been around 20% in most markets and unlike in 2023 in general when the yield was primarily narrowly driven by the biggest technology shares, the growth has in the past couple of quarters been more broad-based.

Almost all the funds managed by LHV Varahaldus also reached a positive yield in Q1. The values of the shares of M, L and XL pension funds grew in Q1 by 1.5%, 2.9% and 2.9%, respectively. The more conservative S and XS grew by 1.6% and 1.5% in three months, while the yield of the Indeks pension fund amounted to 8.7%. The yields of the major actively managed funds either correspond to the budget or exceed it a little. The portfolios are diversified across different asset classes and a lower proportion of shares means that a certain periodical underperformance compared to index-based funds during very strong equity markets is to be expected. The quarter was weaker for the actively managed thematic second-pillar pension fund Roheline, which decreased by 5.3% in the quarter. The yields of third-pillar funds remained similar to those of the second-pillar funds of similar strategy – the yield of Indeks III was 8.7%, Roheline III dropped by 6.0%, and LHV's pension fund Aktiivne III grew the value of the clients' assets by 3.0%.

The number of LHV active second-pillar clients was negatively influenced by the second-pillar exits in January (nearly 1,500 people withdrew their money) as well as the fund-changing season being weaker than expected. The number of active clients dropped by nearly three thousand people in the quarter, with more than 120 thousand people making regular payments by the end of March. The volume of assets in second-pillar funds was more than EUR 1.4 billion by the end of the quarter, an increase of EUR 14 million in a quarter despite disbursements and the movements of clients.

After a very active Q4 2023, the growth of third-pillar volumes and client numbers was lower in the past three months, as expected. The number of clients grew by a couple of hundred and the volume of assets by EUR 5 million.

The growth of the reference index which depends on the receipt of social tax, i.e. is a function of salary and employment increase, decelerated notably in Q1. While in 2022 and 2023 the growth was 12.6% and 11.3%, respectively, the growth in the first three months of 2024 was 7.4%, 7.6% and 6.6%, respectively. In the financial plan, we expect the average annual growth to be around 5%, which makes earning a performance fee significantly more probable.

The receipt of applications for increasing the monthly secondpillar payments started on 1 January, allowing clients to increase the regular payments from the former 2%+4% to 4%+4% or 6%+4%. In the first quarter, 4,300 LHV clients have filed that application, whereas the majority of them have chosen the 6%+4% option.

By the end of the quarter, the portfolio of the actively managed funds M, L and XL as well as the distribution of asset classes largely correspond to the long-term goal – private capital, real estate and unlisted bonds primarily to Estonian enterprises make up a large part of the M, L and XL portfolio, while the rest is distributed between listed shares and bonds. We shall continue making investments into unlisted asset classes also in the coming quarters, while also taking into account changes in fund volumes and the necessary liquidity.

Overview of AS LHV Kindlustus

The Q1 sales results of AS LHV Kindlustus increased compared to the previous quarter. The growth was mainly driven by health, all-risks and motor TPL insurance. Gross insurance premiums increased by 31.5%, while net earned premiums grew by 8% compared to Q4 2023. The volume of insurance premiums from the health insurance product solution marketed in cooperation with Confido was EUR 4 619 thousand in Q1. The number of insurance contracts has reached a certain level of stability and the active growth stage has ended. As at the end of Q1, 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. A great focus was on improving cooperation and making processes more efficient with other LHV Group companies. One of the main focuses in 2024 is on improving the effectiveness of internal cross-sales in the Group. During the quarter, some product terms and conditions were updated and a new product was launched: private person's liability insurance.

As at 31 March 2024, LHV Kindlustus had 233 thousand valid insurance contracts and 164 thousand customers.

The volume of gross insurance premiums was EUR 10 788.5 thousand and the net earned insurance premiums totalled EUR 7 237 thousand in Q1. The share of health insurance grew in the insurance portfolio, while the share of other major products decreased a little.

During Q1, 22 874 new loss events were registered and claims adjustment was completed for 22 400 events. As at the end of the quarter, a total of 2 688 claim files were open. The net losses incurred in the period together with indirect claims adjustment costs were EUR 4 873 thousand.

Considering the season, loss frequency was relatively low in the quarter. While in January both the number and the frequency of loss events were high, both figures were lower than expected in the remaining months of the quarter. The gross loss ratio was notably good in home insurance. One larger than average loss event took place in the quarter. The company's profit in Q1 was EUR 256 thousand. The volume of the company's operating expenses as at 31 March 2024 was below the planned level.

EUR thousand	Q1 2024	Q4 2023	Change %	Q1 2023	Change %
Gross insurance premiums	10 789	8 198	32%	7 712	40%
Net earned insurance premiums	7 237	6 700	8%	4 499	61%
Net losses incurred	4 873	4 102	19%	3 509	39%
Total net operating expenses	2 259	2 154	5%	1 505	50%
Underwriting result	106	299	-65%	-515	NA
Net profit	256	423	-39%	-450	NA

As of the end of Q1, LHV Kindlustus employed 51 people.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

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

(in thousands of euros)	Note	Q1 2024	3M 2024	Q1 2023	3M 2023
Interest income		106 762	106 762	64 477	64 477
Interest expense		-37 843	-37 843	-9 369	-9 369
Net interest income	9	68 919	68 919	55 108	55 108
Fee and commission income		20 046	20 046	15 644	15 644
Fee and commission expense		-4 503	-4 503	-3 767	-3 767
Net fee and commission income	10	15 543	15 543	11 877	11 877
Net gains from financial assets measured at fair value		321	321	-115	-115
Foreign exchange rate gains/losses		215	215	1 500	1 500
Net gains from financial assets		536	536	1 385	1 385
Other income		425	425	20	20
Other expense		-7	-7	-7	-7
Total other income		418	418	13	13
Staff costs		-20 275	-20 275	-15 667	-15 667
Administrative and other operating expenses		-15 253	-15 253	-14 955	-14 955
Total expenses	11	-35 528	-35 528	-30 622	-30 622
Profit before impairment losses		49 888	49 888	37 761	37 761
Impairment losses on loans and bonds	21	-2 851	-2 851	1 583	1 583
Profit before income tax		47 037	47 037	39 344	39 344
Income tax expense		-6 335 -6 335	-6 335 -6 335	-6 281 -6 281	-6 281 -6 281
Net profit for the reporting period	2	40 702	40 702	33 063	33 063
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		874	874	296	296
Total profit and other comprehensive income for the
reporting period		41 576	41 576	33 359	33 359
Total profit of the reporting period attributable to:
Owners of the parent		40 544	40 544	32 654	32 654
Non-controlling interest		158	158	409	409
Total profit for the reporting period	2	40 702	40 702	33 063	33 063
Total profit and other comprehensive income attributable to:
Owners of the parent		41 418	41 418	32 950	32 950
Non-controlling interest		158	158	409	409
Total profit and other comprehensive income for the
reporting period		41 576	41 576	33 359	33 359
Basic earnings per share (in euros)	16	0.13	0.13	0.10	0.10
Diluted earnings per share (in euros)	16	0.12	0.12	0.10	0.10

The Notes on pages 23 to 38 are an integral part of the condensed consolidated interim financial statements.

(in thousands of euros)	Note	31.03.2024	31.12.2023
Assets
Due from central bank	4, 5, 6, 12	3 357 715	3 052 890
Cash and cash equivalents	4, 5, 6, 12	33 907	52 145
Due from investment companies	4, 6, 12	9 866	12 509
Due from credit institutions		850	1 850
Financial assets at fair value through profit or loss	4, 6, 7	17 744	18 453
Financial assets at amortized cost	7	232 225	321 888
Loans and advances to customers	4, 6, 8, 21	3 644 600	3 561 791
Receivables from customers		22 932	49 505
Other financial assets		275	273
Other assets		6 307	8 184
Financial investment		1 000	1 000
Tangible assets	19	20 448	22 109
Intangible assets	19	13 555	13 843
Goodwill		9 148	9 150
Total assets	2	7 370 572	7 125 590
Liabilities
Deposits of customers	13	5 934 354	5 731 005
Loans received and debt securities in issue	13	568 355	563 728
Financial liabilities at fair value through profit or loss	7	242	1 843
Accounts payable and other liabilities	14	141 208	145 995
Subordinated debt	6, 20	127 567	126 653
Total liabilities	2	6 771 838	6 569 224
Owner's equity
Share capital		31 983	31 983
Share premium		143 372	143 372
Statutory reserve capital		4 713	4 713
Other reserves		11 700	9 333
Retained earnings		399 573	359 029
Total equity attributable to owners of the parent		591 341	548 430
Non-controlling interest		7 394	7 936
Total equity		598 734	556 366
Total liabilities and equity		7 370 572	7 125 590

Condensed Consolidated Interim Statement of Financial Position

The Notes on pages 23 to 38 are an integral part of the condensed consolidated interim financial statements.

Condensed Consolidated Interim Statement of Cash Flows

(in thousands of euros)	Note Q1 2024	3M 2024	Q1 2023	3M 2023
Cash flows from operating activities
Interest received	107 031	107 031	62 652	62 652
Interest paid	-20 722	-20 722	-5 732	-5 732
Fees and commissions received	20 040	20 040	15 646	15 646
Fees and commissions paid	-4 504	-4 504	-3 767	-3 767
Other income received	154	154	-323	-323
Staff costs paid	-18 057	-18 057	-13 563	-13 563
Administrative and other operating expenses paid	-10 552	-10 552	-12 122	-12 122
Income tax	-5 930	-5 930	-6 801	-6 801
Cash flows from operating activities before change in operating
assets and liabilities	67 460	67 460	35 990	35 990
Net increase/decrease in operating assets:
Net increase/(decrease) in financial assets at fair value through profit or loss	820	820	-2 401	-2 401
Loans and advances to customers	-88 405	-88 405	70 363	70 363
Mandatory reserve at central bank	-1 213	-1 213	-251	-251
Other assets	25 340	25 340	-6 560	-6 560
Deposits with more than 3 months maturity	1 000	1 000	0	0
Net increase/decrease in operating liabilities:
Demand deposits of customers	-27 109	-27 109	-305 383	-305 383
Term deposits of customers	213 976	213 976	269 947	269 947
Prepayments of loans received	0	0	-48 591	-48 591
Financial liabilities held for trading at fair value through profit and loss	-1 491	-1 491	-149	-149
Other liabilities	1 115	1 115	1 220	1 220
Net cash generated from/used in operating activities	191 493	191 493	14 185	14 185
Cash flows from investing activities
Purchase of non-current assets	-1 154	-1 154	-1 288	-1 288
Net changes of investment securities at fair value through profit or loss and
of investment securities at amortized cost	89 911	89 911	-78 873	-78 873
Net cash flows from/used in investing activities	88 757	88 757	77 585	77 585
Cash flows from financing activities
Dividends paid	-700	-700	-1 225	-1 225
Repayments of the principal of lease liabilities	-1 620	-1 620	-523	-523
Net cash flows from/used in financing activities	-2 320	-2 320	-1 748	-1 748
Effect of exchange rate changes on cash and cash equivalents	6 4 801	4 801	1 616	1 616
Net increase/decrease in cash and cash equivalents	282 731	282 731	91 638	91 638
Cash and cash equivalents at the beginning of the period	3 061 645	3 061 645	2 433 599	2 433 599
Cash and cash equivalents at the end of the period	12 3 344 376	3 344 376	2 525 237	2 525 237

The Notes on pages 23 to 38 are an integral part of the condensed consolidated interim financial statements

						Total equity
						attributable	Non
			Statutory			to owners	controlli
	Share	Share	reserve	Other	Retained	of LHV	ng
(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
Dividends paid	0	0	0	0	0	0	-1 225	-1 225
Share options	0	0	0	1 141	0	1 141	0	1 141
Profit for the reporting period Other comprehensive	0	0	0	0	32 654	32 654	409	33 063
income/loss	0	0	0	296	0	296	0	296
Total profit and other comprehensive income for the
reporting period	0	0	0	296	32 654	32 950	409	33 359
Balance as at 31.03.2023	31 542	141 186	4 713	7 120	262 318	446 879	7 009	453 888
Balance as at 01.01.2024	31 983	143 372	4 713	9 333	359 029	548 430	7 936	556 366
Dividends paid	0	0	0	0	0	0	-700	-700
Share options	0	0	0	1 493	0	1 493		0 1 493
Profit for the reporting period Other comprehensive	0	0	0	0	40 544	40 544	158	40 702
income/loss	0	0	0	874	0	874		0 874
Total profit and other comprehensive income for the
reporting period	0	0	0	874	40 544	41 418	158	41 576
Balance as at 31.03.2024	31 983	143 372	4 713	11 700	399 573	591 341	7 394	598 734

Condensed Consolidated Interim Statement of Changes in Equity

The Notes on pages 23 to 38 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 the international financial reporting standard 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, except for the treatment of the liquidity portfolio treated at the market price. We reclassified this portfolio to accounting at amortized cost at the beginning of the second quarter. It was a fundamental change in the risk taken by the business line.

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 EveryPay (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.

Q1 2024	Retail banking	Corporate banking	Asset manage ment	Hire purchase and consumer finance in Estonia	Financial intermediates	Insura nce	LHV Bank Ltd	Other activities	Total
Interest income	23 982	41 341	48	3 842	-5 930	182	11 822	31 474	106 762
Interest expense Intrabank interest	-12 571	-15 503	0	-1 959	-2 412	-65	-3 025	-2 307	-37 843
income/-expense	15 442	-1 687	0	2	10 803	0	0	-24 560	0
Net interest income Fee and commission	26 852	24 151	48	1 885	2 461	117	8 797	4 607	68 919
income Fee and commission	8 163	3 403	2 187	228	984	1 451	3 044	586	20 046
expense	-4 139	-983	0	-190	-236	-12	-482	1 538	-4 503
Net fee and commission income	4 024	2 421	2 187	38	748	1 439	2 562	2 124	15 543
Other income	-10	252	0	0	0	-4	157	23	418

Net income	30 867	26 824	2 235	1 923	3 209	1 552	11 516	6 755	84 880
Net gains from financial assets Administrative and	-1	0	171	0	0	37	-33	362	536
other operating expenses, staff costs	-10 434	-7 052	-1 826	-905	-2 213	-1 333	-8 390	-3 375	-35 528
Operating profit Impairment losses on	20 431	19 772	580	1 018	995	256	3 093	3 742	49 888
loans and advances	-252	-2 063	0	-1 138	0	0	-44	646	-2 851
Income tax	-2 594	-2 389	-800	-326	-733	0	1 819	-1 312	-6 335
Net profit	17 585	15 321	-220	-445	262	256	4 868	3 075	40 702

3M 2024	Retail banking	Corporate banking	Asset manage ment	Hire purchase and consumer finance in Estonia	Financial intermediates	Insu rance	LHV Bank Ltd	Other activities	Total
Interest income	23 982	41 341	48	3 842	-5 930	182	11 822	31 474	106 762
Interest expense Intrabank interest	-12 571	-15 503	0	-1 959	-2 412	-65	-3 025	-2 307	-37 843
income/-expense	15 442	-1 687	0	2	10 803	0	0	-24 560	0
Net interest income Fee and commission	26 852	24 151	48	1 885	2 461	117	8 797	4 607	68 919
income	8 163	3 403	2 187	228	984	1 451	3 044	586	20 046
Fee and commission expense	-4 139	-983	0	-190	-236	-12	-482	1 538	-4 503
Net fee and commission income	4 024	2 421	2 187	38	748	1 439	2 562	2 124	15 543
Other income	-10	252	0	0	0	-4	157	23	418
Net income	30 867	26 824	2 235	1 923	3 209	1 552	11 516	6 755	84 880
Net gains from financial assets Administrative and other operating	-1	0	171	0	0	37	-33	362	536
expenses, staff costs	-10 434	-7 052	-1 826	-905	-2 213	-1 333	-8 390	-3 375	-35 528
Operating profit Impairment gains/(- losses) on loans and	20 431	19 772	580	1 018	995	256	3 093	3 742	49 888
bond portfolio	-252	-2 063	0	-1 138	0	0	-44	646	-2 851
Income tax	-2 594	-2 389	-800	-326	-733	0	1 819	-1 312	-6 335
Net profit	17 585	15 321	-220	-445	262	256	4 868	3 075	40 702
Total assets 31.03.2024	2 768 626	3 956 782	19 122	89 221	7	24 096	475 023	37 696	7 370 572
Total liabilities 31.03.2024	4 200 594	915 576	1 520	72 783	1 158 908	18 589	391 180	12 688	6 771 838

Q1 2023	Retail banking	Corporate banking	Asset manage ment	Hire purchase and consumer finance in Estonia	Financial inter mediates	Insurance	LHV UK Ltd	Other activities	Total
Interest income	17 410	27 518	0	3 795	-2 209	25	2 832	15 106	64 477
Interest expense Intragroup interest income/-	-3 433	-3 023	0	-1 246	-824	-26	-69	-749	-9 369
expense Net interest	14 703	-8 528	0	0	7 917	0	0	-14 092	0
income Fee and commission	28 681	15 967	0	2 549	4 884	-1	2 763	265	55 108
income Fee and commission	7 424	1 295	2 125	246	3 481	552	724	-203	15 644
expense Net fee and commission	-3 809	-702	0	-184	-241	0	-24	1 193	-3 767
income	3 616	593	2 125	62	3 239	552	700	989	11 877
Other income	-1	3	0	0	0	-3	0	14	13
Net income	32 295	16 563	2 125	2 611	8 124	548	3 463	1 269	66 998
Net gains from financial assets
Administrative and other operating expenses, staff	-37	0	172	0	1	33	-1	1 218	1 385
costs	-9 722	-4 426	-1 722	-942	-3 978	-1 031	-5 964	-2 837	-30 622
Operating profit Impairment gains/(-losses) on loans and bond	22 537	12 137	575	1 669	4 146	-450	-2 502	-351	37 761
portfolio	-263	2 739	0	-829	0	0	-9	-55	1 583
Income tax	-1 766	-2 113	-488	-166	-104	0	0	-1 644	-6 281
Net profit	20 508	12 762	87	674	4 042	-450	-2 511	-2 049	33 063

3M 2023	Retail banking	Corporate banking	Asset manage ment	Hire purchase and consumer finance in Estonia	Financial intermediates	Insurance	UK LHV Ltd	Other activities	Total
Interest income	17 410	27 518	0	3 795	-2 209	25	2 832	15 106	64 477
Interest expense Intragroup interest income/-expense	-3 433 14 703	-3 023 -8 528	0 0	-1 246 0	-824 7 917	-26 0	-69 0	-749 -14 092	-9 369 0

Net interest income	28 681	15 967	0	2 549	4 884	-1	2 763	265	55 108
Fee and commission income	7 424	1 295	2 125	246	3 481	552	724	-203	15 644
Fee and commission expense	-3 809	-702	0	-184	-241	0	-24	1 193	-3 767
Net fee and commission income	3 616	593	2 125	62	3 239	552	700	989	11 877
Other income	-1	3	0	0	0	-3	0	14	13
Net income	32 295	16 563	2 125	2 611	8 124	548	3 463	1 269	66 998
Net gains from financial assets Administrative and	-37	0	172	0	1	33	-1	1 218	1 385
other operating expenses, staff costs	-9 722	-4 426	-1 722	-942	-3 978	-1 031	-5 964	-2 837	-30 622
Operating profit Impairment losses on	22 537	12 137	575	1 669	4 146	-450	-2 502	-351	37 761
loans and advances	-263	2 739	0	-829	0	0	-9	-55	1 583
Income tax	-1 766	-2 113	-488	-166	-104	0	0	-1 644	-6 281
Net profit	20 508	12 762	87	674	4 042	-450	-2 511	-2 049	33 063
Total assets 31.03.2023	2 559 201	3 280 893	21 469	93 140	0	35 159	39 847	60 831	6 090 540
Total liabilities 31.03.2023	3 624 712	551 628	1 156	77 009	1 342 054	30 756	6 318	3 019	5 636 652

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.

Fortunately, the impact on personnel risk has been minimal, LHV was ready to work in home offices and almost all employees worked for two months from home offices. This reduced social interaction and the chances of being exposed to the virus.

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 9 quarters. 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.

NOTE 4 Breakdown of Financial Assets and Liabilities by Countries

31.03.2024	Estonia	Germany	Other EU	USA	UK	Other	Total
Due from banks and investment
companies	2 482 285	0	530 800	24 161	364 527	565	3 402 338
Financial assets at fair value	7 424	5 197	5 096	22	1	4	17 744
Financial assets at amortized cost	81 731	0	150 494	0	0	0	232 225
Loans and advances to customers	3 514 546	1 358	26 267	682	96 549	5 198	3 644 600
Receivables from customers	22 932	0	0	0	0	0	22 932

Other financial assets	175	0	0	100	0	0	275
Total financial assets	6 109 093	6 555	712 657	24 965	461 077	5 767	7 320 114
Deposits of customers and loans
received	4 103 641	124 559	1 099 202	78 227	482 426	46 299	5 934 354
Loans received and bonds issued	0	0	568 355	0	0	0	568 355
Subordinated debt	127 567	0	0	0	0	0	127 567
Financial liabilities at fair value	353	0	0	0	0	0	353
Accounts payable and other financial
liabilities	121 342	0	0	0	0	0	121 342
Total financial liabilities	4 352 903	124 559	1 667 557	78 227	482 426	46 299	6 751 971

Unused loan commitments in the amount of EUR 533 965 thousand are for the residents of Estonia.

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
31.03.2024	demand	months	months	years	years	Total
Liabilities by contractual maturity dates
Deposits from customers	3 769 863	881 909	1 238 652	63 667	334	5 954 425
Loans received and bonds issued	0	568	211 453	387 488	0	599 509
Subordinated debt	0	22 725	8 419	125 044	0	156 188
Rental payables	0	11 884	0	0	0	11 884
Accounts payable and other financial liabilities	0	109 458	0	0	0	109 458
Unused loan commitments	533 965	0	0	0	0	533 965
Financial guarantees by contractual amounts	0	58 578	0	0	0	58 578
Foreign exchange derivatives (gross settled)	0	177 542	0	0	0	177 542
Financial liabilities at fair value	0	353	0	0	0	353
Total liabilities	4 303 828	1 263 017	1 458 524	576 199	334	7 601 902
Financial assets by contractual maturity dates
Due from banks and investment companies	3 401 488	0	850	0	0	3 402 338
Financial assets at fair value and at amortised
cost (debt securities)	0	103 736	57 842	75 893	5 236	242 707
Loans and advances to customers	0	207 324	602 783	2 682 766	1 715 501	5 208 374
Receivables from customers	0	22 932	0	0	0	22 932
Foreign exchange derivatives (gross settled)	0	177 542	0	0	0	177 542

Other financial assets	275	0	0	0	0	275
Total financial assets	3 401 763	511 534	661 475	2 758 659	1 720 737	9 054 168
Maturity gap from financial assets and liabilities	-902 065	-751 483	-797 049	2 182 460	1 720 403	1 452 266
	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

31.03.2024	EUR	CHF	GBP	SEK	USD	Other	Total
Assets bearing currency risk
Due from banks and investment companies	3 010 874	697	369 581	1 649	13 963	5 574	3 402 338
Financial assets at fair value and at amortised cost	244 753	1	1	5 189	24	2	249 969
Loans and advances to customers	3 541 239	20	95 348	212	7 334	448	3 644 600
Receivables from customers	-3 649	1	25 018	138	1 027	397	22 932
Other financial assets	100	0	175	0	0	0	275
Total assets bearing currency risk	6 793 317	718	490 122	7 188	22 347	6 421	7 320 114
Liabilities bearing currency risk
Deposits from customers	5 367 747	6 844	382 551	8 903	159 384	8 925	5 934 354
Loans received and bonds issued	568 355	0	0	0	0	0	568 355
Financial liabilities at fair value	353	0	0	0	0	0	353
Accounts payable and other financial liabilities	101 329	45	12 810	146	6 920	92	121 342
Subordinated debt	127 567	0	0	0	0	0	127 567
Total liabilities bearing currency risk	6 165 351	6 889	395 361	9 049	166 304	9 017	6 751 971
Open gross position derivative assets at contractual value	23 360	6 144	0	1 909	143 280	2 849	177 542
Open gross position derivative liabilities at contractual value	154 153	0	23 389	0	0	0	177 542
Open foreign currency position	497 173	-27	71 373	48	-677	254	568 144

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

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	31.03.2024	Level 1	Level 2	Level 3	31.12.2023
Financial assets at fair value through profit and loss
Shares and fund units*	740	6 028	0	6 768	745	5 856	0	6 601
Bonds at fair value through profit and loss	10 425	0	0	10 425	11 551	0	0	11 551
Interest rate swaps and foreign exchange
forwards	0	551	0	551	0	301	0	301
Total financial assets	11 165	6 579	0	17 744	12 296	6 157	0	18 453
Financial liabilities at fair value through profit and loss
Interest rate swaps and foreign exchange	0	353	0	353	0	1 843	0	1 843
forwards Total financial liabilities	0	353	0	353	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 6 028 (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 March 31, 2024, the liquidity portfolio in the amount of EUR 232 225 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 22 thousand. The estimated market value of the liquidity portfolio as of March 31, is EUR 216 705 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)
• 1. 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 31.03.2024 the fair value of corporate loans and overdraft is EUR 65 301 thousand (3.14%) 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 31 March 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

31.03.2024	Stage 1	Stage 2	Stage 3	Provision	Total	%
Individuals	1 293 620	91 367	7 704	-7 115	1 385 576	38,0%
Agriculture	87 175	15 118	6	-382	101 917	2,8%
Mining and Quarrying	844	560	48	-63	1 389	0,0%
Manufacturing	140 228	34 118	12 024	-5 996	180 374	4,9%
Energy	174 689	1 306	12	-1 268	174 739	4,8%
Water and sewerage	16 774	0	0	-197	16 577	0,5%
Construction	80 269	14 896	77	-1 557	93 685	2,6%
Wholesale and retail trade	158 032	25 444	1 337	-2 549	182 264	5,0%
Transportation and storage	67 281	9 237	9	-684	75 843	2,1%
Accommodation and catering	22 434	3 463	388	-188	26 097	0,7%
Information and communication	13 806	1 459	127	-71	15 321	0,4%
Financial activities	118 511	591	0	-691	118 411	3,2%
Real estate activities	795 613	110 261	818	-6 811	899 881	24,7%
Professional, scientific and technical activities	81 455	3 947	170	-247	85 325	2,3%
Administrative and support service activities	99 348	2 192	81	-571	101 050	2,8%
Local municipalities	55 209	4 746	0	-248	59 707	1,6%
Education	4 884	3 277	2	-1 339	6 824	0,2%
Health care	35 098	906	0	-175	35 829	1,0%
Arts and entertainment	44 466	27 696	0	-1 596	70 566	1,9%
Other service activities	11 789	1 525	5	-94	13 225	0,4%
Total	3 301 525	352 109	22 808	-31 842
Provision	-11 202	-11 347	-9 293

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	Q1 2024	3M 2024	Q1 2023	3M 2023
From balances with credit institutions and investment	368	368	1 839	1 839
companies From central bank	32 508	32 508	13 554	13 554
From debt securities	2 738	2 738	530	530
Leasing	3 254	3 254	2 344	2 344
Leverage loans and lending of securities	397	397	367	367
Consumer loans	3 054	3 054	2 892	2 892
Hire purchase	788	788	904	904
Corporate loans	43 211	43 211	28 144	28 144
Credit card loans	294	294	232	232
Mortgage loans	18 543	18 543	12 428	12 428
Private loans	1 004	1 004	842	842
Other loans	603	603	404	404
Total	106 762	106 762	64 477	64 477
Interest expense
Deposits of customers and loans received	-29 985	-29 985	-4 676	-4 676
Other interest expense	-217	-217	-218	-218
Subordinated liabilities	-7 641	-7 641	-4 475	-4 475
including loans between related parties	-76	-76	-89	-89

Total	-37 843	-37 843	-9 369	-9 369
Net interest income	68 919	68 919	55 108	55 108
Interest income on loans by customer location	19 893	68 492	13 270	47 388
(interest on bank balances and bonds excluded):	Q1 2024	3M 2024	Q1 2023	3M 2023
Estonia	69 080	69 080	48 137	48 137
Great Britain	2 068	2 068	417	417
Total	71 148	71 148	48 554	48 554

NOTE 10 Net Fee and Commission Income

Fee and commission income	Q1 2024	3M 2024	Q1 2023	3M 2023
Security brokerage and commissions paid	1 757	1 757	1 108	1 108
Asset management and similar fees	3 930	3 930	3 674	3 674
Currency exchange fees conversion revenues	2 148	2 148	1 429	1 429
Fees from cards and payments	9 012	9 012	7 461	7 461
Other fee and commission income	3 199	3 199	1 972	1 972
Total	20 046	20 046	15 644	15 644
Fee and commission expense
Security brokerage and commissions paid	-807	-807	-604	-604
Expenses related to cards	-1 699	-1 699	-1 373	-1 373
Expenses related to acquiring	-1 614	-1 614	-1 703	-1 703
Other fee and commission expense	-383	-383	-87	-87
Total	-4 503	-4 503	-3 767	-3 767
Net fee and commission income	15 543	15 543	11 877	11 877
Fee and commission income by customer location:	Q1 2024	3M 2024	Q1 2023	3M 2023
Estonia	17 630	17 630	13 858	13 858
Great Britain	2 416	2 416	1 786	1 786
Total	20 046	20 046	15 644	15 644

NOTE 11 Operating Expenses

	Q1 2024	3M 2024	Q1 2023	3M 2023
Wages, salaries and bonuses	14 869	14 869	12 722	12 722
Social security and other taxes*	5 406	5 406	2 945	2 945
Total personnel expenses	20 275	20 275	15 667	15 667
IT expenses	3 100	3 100	3 136	3 136
Information services and bank services	463	463	427	427
Marketing expenses	658	658	809	809
Office expenses	555	555	579	579
Transportation and communication expenses	171	171	148	148
Staff training and business trip expenses	386	386	351	351
Other outsourced services	2 701	2 701	2 715	2 715
Other administrative expenses	3 907	3 907	4 489	4 489
Depreciation of non-current assets	2 995	2 995	1 985	1 985
Operational lease payments	17	17	146	146

Other operating expenses	300	300	170	170
Total other operating expenses	15 253	15 253	14 955	14 955
Total operating expenses	35 528	35 528	30 622	30 622

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

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

	31.03.2024	31.12.2023
Demand and term deposits with maturity less than 3
months*	43 773	49 466
Statutory reserve capital with the central bank	57 112	55 899
Demand deposit from central bank*	3 300 603	3 012 179
Total	3 401 488	3 117 544
*Cash and cash equivalents in the Statement of Cash
Flows	3 344 376	3 061 645

The breakdown of receivables by countries has been presented in Note 4. Demand deposits include receivables from investment companies in the total amount of EUR 9 866 thousand (31 December 2023: EUR 12 509 thousand). All other demand and term deposits are held with credit institutions and the central bank. The minimum reserve requirement as at 31 March 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 Loans Received

Deposits by type	Individuals	Financial entities	Non-financial	entities Public sector	31.03.2024
Demand deposits	767 480	1 253 525	1 658 418	90 440	3 769 863
Term deposits	1 177 605	122 022	818 007	46 857	2 164 491
Total	1 945 085	1 375 547	2 476 425	137 297	5 934 354
		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

Loans received 31.03.2024	Covered bonds	Preferred senior bond	Total loans received and dept securities in issue
Loans received	249 853	318 502	568 355
Total	249 853	318 502	568 355
Loans received 31.12.2023	Covered bonds	Preferred senior bond	Total loans received and dept securities in issue
Loans received	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	31.03.2024	31.12.2023
Trade payables and payables to merchants	5 024	2 131
Other short-term financial liabilities	19 491	16 288
Lease liabilities	11 884	13 415
Payments in transit	68 709	48 632
Financial guarantee contracts issued	1 712	615
Liabilities from insurance services	14 522	47 375
Subtotal	121 342	128 456
Not financial liabilities
Performance guarantee contracts issued Non-financial liabilities	1 560	1 750
Tax liabilities	12 087	10 630
Payables to employees	5 434	4 408
Other short-term liabilities	785	751
Subtotal	19 866	17 539
Total	141 208	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 31 March
2024	74 938	58 578	164	533 965	667 645
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.

	Q1 2024	3M 2024	Q1 2023	3M 2023
Total profit (incl. discontinued operations) attributable to
owners of the parent (EUR thousand)	40 544	40 544	40 544	32 654
Weighted average number of shares (in thousands of units)	319 833	319 833	319 833	315 425
Basic earnings per share (EUR) Weighted average number of shares used for calculating the	0.13	0.13	0.10	0.10
diluted earnings per shares (in thousands of units)	325 416	325 416	321 411	321 411
Diluted earnings per share (EUR)	0.12	0.12	0.10	0.10

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 31.03.2024 was 594 436 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	31.03.2024	31.12.2023
Paid-in share capital	31 983	31 983
Share premium	143 372	143 372
Reserves	4 713	4 713
Other reserves	-122	-996
Accumulated loss	359 027	229 287
Intangible assets (subtracted)	-21 088	-21 278
Profit for the reporting period (COREP)	0	129 740
Other adjustments	-5	-8
Dividends to be distributed	-41 578	-41 578
CET1 capital elements or deductions	-3 200	-382
CET1 instruments of financial sector entities where the institution has a significant investment	-3 666	-3 496
CET1 instruments of financial sector entities where the institution has not a significant
investment	0	0
Total Core Tier 1 capital	469 436	471 357

Additional Tier 1 capital	55 000	55 000
Total Tier 1 capital	524 436	526 357
Subordinated liabilities	70 000	70 000
Total Tier 2 capital	70 000	70 000
Total net own funds	594 436	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	Q1 2024	3M 2024	Q1 2023	3M 2023
Interest income	705	705	81	81
incl. management	68	68	46	46
incl. shareholders that have significant influence	637	637	35	35
Fee and commission income	69	69	58	58
Incl. management	9	6	8	8
incl. shareholders that have significant influence	60	60	50	50
Interest expenses from deposits	34	34	22	22
incl. management	21	21	2	2
incl. shareholders that have significant influence	13	13	20	20
Interest expenses from subordinated loans	76	76	89	89
incl. management	1	1	2	2
incl. shareholders that have significant influence	75	75	87	87

Balances	31.03.2024	31.12.2023
Loans and receivables as at the year-end	37 692	28 579
incl. management	4 847	4 717
incl. shareholders that have significant influence	32 845	23 862
Deposits as at the year-end	6 535	9 351
incl. management	2 687	2 448
incl. shareholders that have significant influence	3 848	6 903
Subordinated loans as at the year-end	3 587	4 462
incl. management	78	172
incl. shareholders that have significant influence	3 509	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 Q1, salaries and other compensations paid to the management of the parent AS LHV Group and its subsidiaries totalled EUR 804 thousand (Q1 2023: EUR 690 thousand), including all taxes. As at 31.03.2024, remuneration for March 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 31.03.2024 and 31.12.2023 (pension liabilities, termination benefits, etc.). In Q1 2024, the remuneration paid to the members of the Group's Supervisory Board totalled EUR 39 thousand (Q1 2023: EUR 30 thousand).

Management is related to the share-based compensation plan. In Q1 2024 the share-based compensation to management amounted to EUR 594 thousand (Q1 2023: EUR 482 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
	Tangible	Right of use	Total tangible	Intangible	customer	intangible
(in thousands of euros)	assets	assets	assets	assets	contracts	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
Tangible and intangible assets added by
the acquisition of a subsidiary	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	175	0	175	796	0	796
Depreciation/amortisation charge	-831	-1 009	-1 840	-826	-329	-1 155
Recalculation of the accumulated	-15	19	4	-112	0	-112
Exchange rate differences amortisation	0	-592	-592	0	0	0
Capitalised selling costs	0	0	0	0	183	183
Balance as at 31.03.2024
Cost	19 356	20 455	39 811	19 744	18 653	38 397
Accumulated depreciation and amortisation	-8 777	-10 586	-19 363	-13 060	-11 782	-24 842
Carrying amount 31.03.2024	10 579	9 869	20 448	6 684	6 871	13 555

NOTE 20 Subordinated debts

Subordinated debts (in thousands of euros)

	Year of 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	2019	20 000	8.0%	Perpetual
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 31.03.2024		125 000
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 31.03
Corporate loans	-21 068	-4 451	2 915	-22 604
Consumer loans	-4 310	-1 449	883	-4 876
Investment financing	-11	-5	1	-15
Leasing	-2 107	-268	230	-2 145
Private loans	-2 229	-446	473	-2 202
Total 2024	-29 725	-6 619	4 502	-31 842
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
Private loans	-1 014	-1 688	473	-2 229

Shareholders of AS LHV Group

AS LHV Group has a total of 319 832 743 ordinary shares, with a nominal value of 0.1 euro.

As at 31 March 2024, AS LHV Group has 39 117 shareholders:

• 146 928 273 aktsiat (45.94 %) were held by members of the Supervisory Board and Management Board, and related parties.
• 172 904 470 aktsiat (54.06 %) were held by Estonian entrepreneurs and investors, and related parties.

Top ten shareholders as at 31 March 2024:

Number of	Participation	Name of shareholder
shares 37 162 070	11,6%	AS Lõhmus Holdings
33 910 370	10,6%	Viisemann Investments AG
25 449 470	8,0%	Rain Lõhmus
12 446 070	3,9%	Krenno OÜ
11 310 000	3,5%	AS Genteel
10 875 280	3,4%	AS Amalfi
10 828 210	3,4%	Ambient Sound Investments OÜ
7 188 990	2,3%	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 1 228 440 shares.

Martti Singi holds 850 659 shares and Unitas OÜ holds 77 540 shares.

Meelis Paakspuu holds 603 300 shares.

Jüri Heero holds 788 980 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 545 840 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 EveryPay

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 March 2024 period the condensed consolidated interim financial statements of AS LHV Group for the 3-months period ended 31 March 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.

23.04.2024

Madis Toomsalu

Martti Singi

Meelis Paakspuu

Jüri Heero