LHV Group — Interim / Quarterly Report 2024

Mar 12, 2024

LHV Group

The year has started with strong results

Financial results, EURt	13 months	Feb 24	YTD24	YTD23		FP YTD A YTD FP
Total net income, incl.		27,076	56,021	43.343	51,326	+4,695
Net interest income		21,910	45,884	34,879	41,256	+4,628
Net fee and commission income		5,106	9,940	7,815	9,775	+165
Total operating expenses		11,498	23,705	21,695	23,520	+185
Earnings before impairment		15,578	32,316	21,649	27,806	+4,510
Impairment losses		-225	731	-1,513	2,414	-1,684
Income tax expense		2,241	4,408	3,589	3,508	+900
Net profit, incl.		13.563	27.177	19,573	21.883	+5,294
attr. to shareholders		13,488	27,112	19,465	21,863	+5,249
Business volumes, EURm	13 months	Feb 24	YTD24	YTD23	FP YTD	A YTD FP
Deposits from customers		5,918	5,918	4,916	5,898	+20
Loans (net)		3,611	3,611	3.147	3.575	+36
Assets under management		1,482	1.482	1,434	1,507	-25
Fin. intermediaries' payments, thous. pcs		5,578	11,297	5,754	9,241	+2,056
Key figures	13 months	Feb 24	YTD24	YTD23	FP YTD	A YTD FP
Cost / income ratio (C/I)		42.5%	42.3%	50.1%	45.8%	- 3.5 pp
Net interest margin (NIM)		3.9%	3.9%	3.4%	3.5%	+ 0.4 pp
pre-tax ROE*		34.7%	33.5%	32.7%	27.1%	+ 6.4 pp
ROE*		29.9%	28.9%	27.6%	23.4%	+ 5.5 pp

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Higher business volumes and steady interest environment

Financial results, EURt	13 months	Feb 24	YTD24	YTD23	FP YTD	A YTD FP
Total net income, incl.		22,281	46,143	40,860	40,716	+5,427
Net interest income		19,371	41,006	35,075	34,990	+6,015
Net fee and commission income		2,856	5,057	5,319	5,542	-485
Total operating expenses		7,197	15,480	15,767	14,952	+528
Earnings before impairment		15,084	30,662	25,093	25,764	+4,898
Impairment losses		-243	689	-1,649	2,389	-1,700
Income tax expense		2,194	4,314	3,507	3,415	+900
Net profit		13,133	25,659	23,235	19,960	+5,699
Business volumes, EURm	13 months	Feb 24	YTD24	YTD23	FP YTD	A YTD FP
Deposits from customers		5,629	5,629	4,974	5,565	+64
incl. banking services' deposits		1,048	1,048	1,264	987	+60
Loans (net)		3,517	3,517	3,127	3,471	+46
Key figures	13 months	Feb 24	YTD24	YTD23	FP YTD	A YTD FP
Cost / income ratio (C/I)		32.3%	33.5%	38.6%	36.7%	- 3.2 pp

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Priority is loan portfolio growth

Financial results, EURt	13 months	Feb 24	YTD24	YTD23	FP YTD	A YTD FP
Total net income, incl.		3,289	7,123	164	7.747	-624
Net interest income		2,659	5,268	166	6,932	-1,663
Net fee and commission income		631	1,721	0	815	+905
Other net income		0	134	-1	0	+134
Total operating expenses		2,897	5,373	3,411	5,492	-119
Earnings before impairment		392	1,750	-3,247	2,255	-505
Impairment losses		17	42	136	26	+16
Income tax expense		0	-1,819	0	0	-1,819
Net profit		375	3,528	-3,383	2,229	+1,298
Business volumes, EURm	13 months	Feb 24	YTD24	YTD23	FP YTD	A YTD FP
Deposits from customers		340	340	0	383	-43
Loans (net)		94	94	21	104	-10
Key figures	13 months	Feb 24	YTD24	YTD23	FP YTD	A YTD FP
Cost / income ratio (C/I)		88.1%	75.4%	2080.8%	70.9%	+ 4.5 pp
Net interest margin (NIM)		8.7%	8.4%	2.9%	10.4%	- 2.0 pp

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LHV Varahaldus

Increasing second pillar contributions has started at a good pace

Financial results, EURt	13 months	Feb 24	YTD24	YTD23		FP YTD A YTD FP
Total net income		688	1,432	1,380	1,461	-30
Total operating expenses		605	1,169	1,080	1,209	-40
EBIT		84	263	301	252	+11
Net financial income		49	11	194	103	-93
Net profit		133	274	495	356	-82
Business volumes	13 months	Feb 24	YTD24	YTD23	FP YTD	A YTD FP
Assets under management, EURm		1,482	1,482	1,434	1,507	-25
Active customers of PII funds, thous.		121	121	130	122
Key figures	13 months	Feb 24	YTD24	YTD23	FP YTD	A YTD FP
Cost / income ratio (C/I)		82.0%	81.0%	68.6%	77.3%	+ 3.8 pp
Funds average return		0.6%	-0.1%	1.8%	1.2%	1.3 pp

• · The performance of the largest actively managed funds at the beginning of the year was more modest than expected. The pension fund L increased by 0.3% in a month, value of XL remained at the same level
• · Revenues and expenses largely in line with the plan. Net profit and AUM impacted by returns of funds
• · The increase of the benchmark index was more modest compared to previous periods, annual growth of 7.8% in February
• · By February end, more than 3,000 customers had increased their second pillar contributions

LHV Kindlustus A month with stable results

Financial results, EURt	13 months	Feb 24	YTD24	YTD23		FP YTD A YTD FP
Total net income, incl.		444	744	524	980	-236
Net earned premiums		2,305	4,721	2,848	4,581	+140
Net incurred losses		1,565	3,384	2,054	2,972	+412
Other net income		-296	-594	-270	-628	+35
Total expenses		427	883	686	978	-96
Technical result		17	-139	-162	2	-141
Net investment income		9	112	0	13	+99
Other operating income and expenses		-5	-11	-1	-10
Net profit		21	-38	-163	5	-43
Business volumes, EURt	13 months	Feb 24	YTD24	YTD23		FP YTD A YTD FP
Gross written premiums		2,941	8,020	5,592	7,507	+513
No of customers (thous.)		164	164	155	na	na
Key figures	13 months	Feb 24	YTD24	YTD23	FP YTD	A YTD FP
Net loss ratio		67.9%	71.7%	72.1%	64.9%	+ 6.8 pp
Net expense ratio		31.5%	31.6%	34.5%	35.3%	3.7 pp

• · 11,700 insurance contracts with a volume of 2.9 EURm were signed
• · by 5% in monthly comparison
• Expenses decreased by 28 EURt in a month
• · Claims were compensated in the amount of 1.6 EURm and 7,750 new insurance cases were registered

Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee