LHV Group — Interim / Quarterly Report 2024

Nov 12, 2024

LHV Group

A month with strong loan growth

Financial results, EURt	13 months	Oct 24	YTD24	YTD23		FP YTD A YTD FP
Total net income, incl.		27.481	285,086	252,322	288,651	-3,565
Net interest income		21,911	228,681	209,086	232,194	-3,514
Net fee and commission income		5,332	53,458	42,213	53,748	-290
Total operating expenses		14,002	124,363	108,033	124,227	+136
Earnings before impairment		13,479	160,722	144,289	164.424	-3,702
Impairment losses		1.647	16,818	5,083	18.573	-1.755
Income tax expense		1,605	19,691	19,880	20,216	-525
Net profit, incl.		10,228	124,213	119,326	125,635	-1,422
attr. to shareholders		10,066	123,281	118,040	124,810	-1,528
Business volumes, EURm	13 months	Oct 24	YTD24	YTD23	FP YTD	A YTD FP
Loans (net)		4,232	4,232	3,425	4,234	-2
Deposits from customers		6,469	6,469	5,386	6,414	+55
Assets under management		1,534	1,534	1,452	1,536	-2
Fin. intermediaries' payments, thous. pcs		6,420	61,347	38,750	59,326	+2,022
Key figures	13 months	Oct 24	YTD24	YTD23	FP YTD	A YTD FP
Cost / income ratio (C/I)		51.0%	43.6%	42.8%	43.0%	+ 0.6 pp
Net interest margin (NIM)		3.2%	3.6%	3.9%	3.7%	- 0.1 pp
pre-tax ROE*		21.6%	28.8%	35.3%	29.2%	- 0.5 pp
ROE*		18.7%	24.9%	30.2%	25.2%	- 0.3 pp

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Volume growth significantly reduces the impact of declining interest rates

Financial results, EURt	13 months	Oct 24	YTD24	YTD23		FP YTD A YTD FP
Total net income, incl.		21,954	229,283	211,776	231,506	-2,223
Net interest income		18,948	199,247	189,899	202,051	-2,804
Net fee and commission income		2,808	27,651	20,640	27,324	+327
Total operating expenses		8,675	77,536	69,363	77,903	-367
Earnings before impairment		13,278	151,747	142,413	153,603	-1,857
Impairment losses		1,556	16,314	4,738	18,091	-1,778
Income tax expense		1,666	19,649	18,409	19,630	+19
Net profit		10,056	115,784	119,266	115,882	-98
Business volumes, EURm	13 months	Oct 24	YTD24	YTD23		FP YTD A YTD FP
Loans (net)		3,980	3,980	3,492	3,980	+0
Deposits from customers		5,908	5,908	5,274	5,894	+14
incl. banking services' deposits		ે 53	റിട്ട്	879	1,050	-98
Key figures	13 months	Oct 24	YTD24	YTD23		FP YTD A YTD FP
Cost / income ratio (C/I)		39.5%	33.8%	32.8%	33.7%	+ 0.2 pp
Net interest margin (NIM)		3.1%	3.4%	3.6%	3.5%	0.1 pp

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Loan to deposits ratio moving towards higher efficiency

Financial results, EURt	13 months	Oct 24	YTD24	YTD23		FP YTD A YTD FP
Total net income, incl.		3,475	36,369	28,687	37,658	-1,289
Net interest income		2,717	28,353	22,435	28,973	-620
Net fee and commission income		759	7,993	6,319	8,637	-643
Other net income		-1	22	-68	48	-26
Total operating expenses		3,819	32,021	25,485	31,156	+865
Earnings before impairment		-343	4,348	3,201	6,502	-2,154
Impairment losses		91	504	164	481	+23
Income tax expense		-109	-1,035	0	-491	-544
Net profit		-326	4,879	3,037	6,511	-1,633
Business volumes, EURm	13 months	Oct 24	YTD24	YTD23	FP YTD	A YTD FP
Loans (net)		252	252	66	254	-2
Deposits from customers		625	625	184	563	+62
Key figures	13 months	Oct 24	YTD24	YTD23	FP YTD	A YTD FP
Cost / income ratio (C/I)		109.9%	88.0%	88.8%	82.7%	+ 5.3 pp
Net interest margin (NIM)		4.5%	6.4%	13.1%	6.9%	- 0.5 pp

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Net profit ahead of the plan, volumes and number of customers as planned

Financial results, EURt	13 months	Oct 24	YTD24	YTD23		FP YTD A YTD FP
Total net income		760	7,433	7,344	7,439	-6
Total operating expenses		547	5,827	5,698	5,971	-144
EBIT		213	1,606	1,646	1,468	+138
Net financial income		21	535	39	546	-11
Income tax expense		0	801	488	801	+0
Net profit		233	1,340	1,196	1,213	+127
Business volumes	13 months	Oct 24	YTD24	YTD23		FP YTD A YTD FP
Assets under management, EURm		1,534	1,534	1,452	1,536	-2
Active customers of PII funds, thous.		116	116	124	115	+0
Key figures	13 months	Oct 24	YTD24	YTD23		FP YTD Δ YTD FP
Cost / income ratio (C/I)		70.1%	73.1%	77.2%	74.8%	1.6 pp

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A month with strong sales result

uuenda

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee