LHV Group — Interim / Quarterly Report 2024

Feb 11, 2025

Interim Report January – December 2024 Summary of Results

Q4 2024 in comparison with Q3 2024

• Net profit EUR 36.3 m (EUR 34.7 m), of which EUR 35.8 m (EUR 34.4 m) is attributable to owners of the parent
• Earnings per share EUR 0.11 (EUR 0.11)
• Net income EUR 84.9 m (EUR 84.9 m)
• Operating expenses EUR 40.8 m (EUR 37.2 m)
• Loan and bond provisions EUR 1.1 m (EUR 7.3 m)
• Income tax expenses EUR 6.7 m (EUR 5.7 m)
• Return on equity 22.0% (22.4%)
• Capital adequacy 20.7% (21.0%)

Q4 2024 in comparison with Q4 2023

• Net profit EUR 36.3 m (EUR 32.8 m), of which EUR 35.8 m (EUR 32.5 m) is attributable to owners of the parent
• Earnings per share EUR 0.11 (EUR 0.1)
• Net income EUR 84.9 m (EUR 85.7 m)
• Operating expenses EUR 40.8 m (EUR 37.9 m)
• Loan and bond provisions EUR 1.1 m (EUR 9.4 m)
• Income tax expenses EUR 6.7 m (EUR 5.6 m)
• Return on equity 22.0% (24.5%)
• Capital adequacy 20.7% (21.9%)

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.

Financial Summary 3
Operating Environment 7
The Group's Liquidity, Capitalisation and Asset Quality 7
Overview of AS LHV Pank Consolidation Group 13
Overview of LHV Bank Limited 16
Overview of AS LHV Varahaldus 17
Overview of AS LHV Kindlustus 19
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 20
Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income20
Condensed Consolidated Interim Statement of Financial Position21
Condensed Consolidated Interim Statement of Cash Flows22
Condensed Consolidated Interim Statement of Changes in Equity23
Notes to the Condensed Consolidated Interim Financial Statements 24
NOTE 1 Accounting Policies 24
NOTE 2 Business Segments25
NOTE 3 Risk Management 28
NOTE 4 Breakdown of Financial Assets and Liabilities by Countries28
NOTE 5 Breakdown of Assets and Liabilities by Maturity Dates (undiscounted contractual cash flows) 29
NOTE 6 Open Foreign Currency Positions30
NOTE 7 Fair Value of Financial Assets and Liabilities31
NOTE 8 Breakdown of Loan Portfolio by Economic Sectors and by Stages 33
NOTE 9 Net Interest Income34
NOTE 10 Net Fee and Commission Income34
NOTE 11 Operating Expenses35
NOTE 12 Balances with the Central Bank, Credit Institutions and Investment Companies 35
NOTE 13 Deposits of Customers and Debt Securities in issue36
NOTE 14 Accounts payable and other liabilities36
NOTE 15 Contingent Liabilities 37
NOTE 16 Basic Earnings and Diluted Earnings Per Share37
NOTE 17 Capital Management 37
NOTE 18 Transactions with related parties 38
NOTE 19 Tangible and intangible assets 39
NOTE 20 Subordinated debts 40
NOTE 21 Changes in impairments40
Supervisory Boards and Management Boards of AS LHV Group and its Subsidiaries 42
Signatures of the Management Board to the Condensed Consolidated Interim Report 43

Financial Summary

The Group's consolidated net profit in Q4 2024 was EUR 36.3 million, having grown by EUR 1.6 million compared to Q3 2024 and by EUR 3.5 million compared to Q4 2023. The profit for the Group's shareholders was EUR 35.8 million in Q4 2024, which was EUR 1.4 million more than in Q3 2024.

The Group's Q4 2024 consolidated net income was EUR 86.5 million, which increased by EUR 1.6 million compared to Q3 2024 and by EUR 0.8 million compared to Q4 2023.

The Group's net interest income decreased by 1% in Q4 2024 compared to Q3 2024, amounting to EUR 66.6 million (EUR 67.4 million in Q3 2024). The Group's net interest income decreased by 2% compared to Q4 2023.

Net service fee income grew by 18%, amounting to EUR 17.3 million (EUR 14.6 million in Q3 2024). The Group's net service fee income grew by 15% compared to Q4 2023. In total, the Group's net income increased by 1.9% in Q4 2024 compared to Q3 2024, amounting to EUR 84.9 million (EUR 83.6 million in Q3 2024).

Operating expenses amounted to EUR 40.8 million in Q4, having increased by EUR 4.9 million compared to Q3 2024 and by EUR 4.6 million compared to Q4 2023.

The Group's Q4 operating profit was EUR 44.1 million (EUR 47.7 million in Q3 2024). Write-downs amounted to EUR 1.1 million in Q4 (EUR 7.3 million in Q3 2024).

Income tax expense on future disbursements of dividends by subsidiaries at the consolidated level was EUR 0.4 million in Q4.

The Group's Q4 net profit was EUR 36.3 million (EUR 34.7 million in Q3 2024).

The return on equity owned by LHV's shareholders was 22.0% in Q4 2024, which was 0.4 percentage points lower than in Q3 2024 (22.4%) and 2.5 percentage points lower than in Q4 2023 (24.5%).

The Group's loan volume grew to EUR 4 552 million by the end of Q4 (EUR 4 126 million in Q3 2024), having grown by 10% or EUR 426 million in a quarter (a growth of EUR 236 million in Q3 2024). Compared to Q4 2023, the Group's loan volume has grown by 28%.

The volume of deposits increased by EUR 624 million in a quarter (an increase of EUR 502 million in Q3 2024). The volume of deposits of clients who are financial intermediaries grew by EUR 489.3 million. The volume of deposits of ordinary clients increased by EUR 179.1 million and the volume of platform deposits decreased by EUR 45.0 million. Of the deposits, EUR 4 433 million (EUR 3 785 million in Q3 2024) were call deposits, EUR 1 667 million (EUR 1 646 million in Q3) term deposits and EUR 810 million (EUR 855 million in Q3) platform deposits.

By business units, AS LHV Pank's consolidated net profit amounted to EUR 34.8 million in Q4 and that of AS LHV Varahaldus amounted to EUR 0.5 million. AS LHV Kindlustus earned a net profit of EUR 0.1 million. The net profit of LHV Bank was EUR 0.6 million. The net profit of LHV Paytech was EUR 0.03 million. Viewed separately, LHV Group made a net profit of EUR 0.4 million.

Management points to better-than-expected volume and profit growth, as well as an improved economic environment. In September, LHV Group updated the financial plan for 2024, increasing the profitability goals by a third. The effect of a more favorable macroeconomic environment was offset by a worse interest rate environment, where interest rates fell faster than planned. All in all, the Group exactly met all the goals, and considering the efficiency improvement decisions made at the end of the year, we are positive for the next period as well. The management of LHV recognizes that maintaining the quality of the loan portfolio in the midst of rapid growth is the most important, and on the other hand, we can only grow based on local deposits. The quality of the loan portfolio is the biggest variable that creates volatility in profitability.

The Bank's net profit at the consolidated level was EUR 34.8 million in Q4 2024, which is EUR 0.7 million more than the result in the previous quarter (EUR 34.1 million in Q3 2024) and EUR 1.2 million more than the net profit of Q4 2023. The number of the Bank's clients grew by 10,900 during the quarter (11,200 in Q3 2024) and the total number of the Bank's clients is 456,000.

The Bank's loan portfolio grew by EUR 300 million in Q4 (EUR 160 million in Q3 2024), reaching EUR 4,204 million.

The deposits of the Bank's clients increased by EUR 577 million in Q4, while the balance of the deposits of payment intermediaries increased by EUR 450 million, platform deposits decreased by EUR 66 million, and the deposits of the remaining clients grew by EUR 193 million. The total volume of deposits was EUR 6,294 million at the end of Q4.

As at the end of Q4 2024, the net loan portfolio of LHV Bank amounted to EUR 348 million and the volume of deposits was EUR 705 million. The net profit of LHV Bank was EUR 0.6 million in Q4 2024 (a loss of EUR 0.6 million in Q3 2024). The net income of LHV Bank was EUR 11.7 million in Q4 2024 (EUR 9.4 million in Q3 2024).

The net profit of LHV Varahaldus was EUR 0.5 million in Q4 2024 (EUR 0.6 million in Q3 2024). The service fee income of LHV Varahaldus amounted to EUR 2.3 million (EUR 2.3 million in Q3 2024). The operating expenses of LHV Varahaldus were EUR 1.5 million in Q4 2024 (EUR 1.5 million in Q3 2024). Expenses related to non-current assets (including depreciation on client agreements) were EUR 0.3 million in Q4 2024 (EUR 0.3 million in Q3 2024).

The total volume of funds managed by LHV grew by EUR 37 million in a quarter (a decrease of EUR 8 million in Q3 2024). The number of active 2nd pillar clients decreased by 1,900 in a quarter (a decrease of 2,400 in Q3 2024).

The net profit of LHV Kindlustus was EUR 0.07 million in Q4 2024 (EUR 0.5 million in Q3 2024). The volume of premiums from concluded contracts grew by EUR 1.4 million in the quarter, reaching EUR 9.8 million. Income from insurance activities at LHV Kindlustus decreased by EUR 0.1 million in the quarter, to EUR 1.5 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 underperformed both indexes and has dropped almost by 25%, when comparison indexes have decreased by 13% and 7% respectively.

LHV Group share price has been 3.245 euros in the end of year and based on the stock price, LHV's market value was EUR 1 052 million.

Business volumes		Year
EUR million	Q4 2024	Q3 2024	over quarter	Q4 2023	over year
Loan portfolio	4 552.1	4 126.2	10%	3 561.8	28%
Financial investments	307.3	255.2	20%	335.1	-8%
Deposits of customers	6 910.1	6 286.4	10%	5 731.0	21%
incl. deposits of financial intermediates	1 747.5	1 253.3	39%	1 317.7	33%
Equity (including minority interest)	678.7	639.8	6%	556.4	22%
Equity (owners' share)	670.1	631.7	6%	548.4	22%
Volume of funds managed	1 558.3	1 521.4	2%	1 519.1	3%
Client securities	3 707.6	3 553.8	4%	3 504.0	6%

Income statement			Quarter	Q4	Year			Year
EUR million	Q4 2024	Q3 2024	over quarter	2023	over year	12M 2024	12M 2023	over year
Net interest income	66.56	67.43	-1%	67.67	-2%	273.33	253.82	8%
Net fee and commission
income	17.32	14.63	18%	14.26	21%	60.30	48.81	24%
Other financial income	-0.20	0.80	NA	0.48	NA	1.10	0.73	51%
Net insurance income	0.05	0.36	-86%	0.37	-86%	0.97	0.36	169%
Total net operating income	83.73	83.22	1%	82.78	1%	335.70	302.99	11%
Other income	1.19	0.36	231%	1.24	-4%	2.61	1.76	48%
Operating expenses	-40.78	-35.92	14%	-36.19	13%	-146.93	-129.36	14%
Loan and bond portfolio
gains/(-losses)	-1.09	-7.28	-85%	-9.43	-88%	-16.26	-11.54	41%
Income tax expenses	-6.73	-5.68	18%	-5.64	19%	-24.82	-23.65	5%
Net profit	36.32	34.70	5%	32.77	11%	150.30	140.93	7%
Including attributable to
owners of the parent	35.75	34.39	4%	32.54	10%	148.97	139.60	7%

Ratios EUR million	Q4 2024	Q3 2024	Quarter over quarter	Q4 2023	Year over year	12M 2024	12M 2023	Year over year
Average equity
(attributable to owners of the parent)	650.9	613.2	37.7	531.5	119.4	609.3	480.7	128.6
Return on equity (ROE), %	22.0	22.4	-0.4	24.5	-2.5	24.5	29.0	-4.5
Return on assets (ROA), %	1.8	1.8	0.0	1.9	-0.1	1.9	2.1	-0.2
Interest-bearing assets, average	8 238.2	7 529.6	708.6	6 763.0	1 475.2	7 861.9	6 545.9	1 316.0
Net interest margin (NIM) %	3.23	3.58	-0.37	4.00	-0.77	3.48	3.88	-0.40
Price spread (SPREAD) %	2.97	3.30	-0.33	3.77	-0.80	3.23	3.75	-0.52
Cost/income ratio %	48.0	43.0	5.0	40.7	7.3	43.4	42.3	1.1
Profit attributable to owners before income tax	42.4	40.0	2.4	38.2	4.2	173.4	163.3	10.1

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

Global economy in Q4 2024 was marked by increasing (geo)political instability, adding to existing economic uncertainties. Despite this, economic activity improved across major economies during the quarter. However, the trajectory of further global economic recovery will largely depend on risks associated with potential deglobalization and shifts in trade patterns. Central banks maintained restrictive monetary policies, which contributed to lower global inflation rates. However, inflationary pressures persisted in the services sector, and in combination with low base energy price effects, inflation remained above the 2% target in Q4 2024. The U.S. economy demonstrated resilience, with GDP growing at an annualized rate of 3.1% in Q3. This expansion was supported by increases in consumer spending, exports, non-residential investment, and federal government expenditures.ⁱ In contrast, growth in European economies remained subdued. The UK's GDP expanded by 1.0% in Q3 year-on-yearii, while the euro area recorded a 0.9% growth rate in Q4 2024iii . Economic growth in Emerging Asia was driven by robust demand for semiconductors and electronics, supported by substantial investments in artificial intelligence. However, the region's two largest economies experienced a sustained slowdown. In India, the post-pandemic surge in demand has tapered off, while in China, the slowdown continues, driven by ongoing challenges in the real estate sector and subdued consumer confidence.iv

The world's biggest stock market indices were mixed in Q4 of 2024. The S&P 500 benefited from strong tailwinds associated with the presidential election, but closed the year on a slightly lower note with quarterly return of 2.07%. European stock markets faced declines in Q4, with the STOXX 600 down 3.45% and the London-based FTSE 100 posting a -1.41% return. The Nikkei 225 rebounded from a steep decline in September, recording a 5.24% return in Q4. Chinese SSE Composite Index traded sideways throughout Q4, posting modest return of 0.46%.

Economic activity in the euro area resumed at a moderate pace in Q4 2024, with annual GDP growth of 0.9%. Sectoral trends indicate that industrial activity continued to contract during the quarter, while the services sector maintained growth. Recent indicators suggest weakening growth in the short term, as subdued consumer confidence and high uncertainty are expected to lead to higher household savings. On the downside, persistent weakness in manufacturing sector continues to weigh on economic growth, particularly in Germany and Italy. Despite these challenges, conditions remain in place for a gradual recovery in the coming years, although geopolitical and policy uncertainty pose ongoing risks. v Economic weakness is still evident among Estonia's key trading partners in Scandinavia due to low foreign demand, including export opportunities to Germany, as well as elevated unemployment. Conversely, Lithuanian economy exhibited stronger-than-expected recovery, growing 3.6% year-on-year in Q4. Meanwhile, economic conditions remain stagnant in Latvia.

The labour market in the euro area remained tight, with the unemployment rate standing at 6.3% in Q4, slightly lower than 6.5% recorded a year earlier and close to historical averages. Employment growth continued at a modest pace but is expected to slow in the short term.vi Compensation per employee growth is estimated to have decelerated from Q3 2024. While this suggests reduced inflationary pressure from wages, growth remains above the historical average of 2.3%.

Inflation in the euro area edged higher in the Q4 2024, primarily due to base effects from energy prices. Annual inflation stood at 2.4% in December but is expected to decline toward the ECB's 2% target by the second quarter of 2025. However, inflation disparities persist, with 12 euro area members reporting inflation rates above the 2% target at the end of 2024. Core inflation, which excludes energy and food, remained relatively stable throughout the year, holding at 2.7% since Q2 2024. Non-energy industrial goods price growth moderated to below longterm averages. Services inflation, however, has remained persistent, , contributing to continued price pressures.vii

The European Central Bank (ECB) initially maintained a restrictive monetary policy to ensure inflation stabilizes at its 2% medium-term target. However, as disinflation progressed, the ECB Governing Council shifted to a more accommodative stance, implementing two 25-basis-point rate cuts in Q4 in October, and December 2024. By yearend, the deposit facility rate, which sets the interest rate for overnight bank deposits with the Eurosystem, stood at 3%. This reflects a gradual easing of monetary policy while still maintaining a moderately restrictive stance to support price stability.

Rate cuts have gradually reduced borrowing costs for new credit, though the impact of earlier rate hikes continues to affect existing credit. These monetary adjustments were reflected in market interest rates, signaling an easing of financial conditions. The 6-month Euribor, tied to many loan agreements, declined at an accelerated pace in Q4, falling from 3.1% in September to 2.6% in December. Longer-term interbank rates also decreased, with the 12 month Euribor dropping to 2.5% by December.

In Q4 2024, Estonia'sviii GDP is estimated to have declined by 0.1% year-over-year, remaining unchanged from Q3. The economy is projected to contract by 1% for the full year in 2024. Following two consecutive years of recession, conditions are gradually improving for a return to growth. However, recently introduced tax increases and budget cuts are expected to delay economic recovery, placing additional pressure on household consumption and business investment.

By year-end, signs of recovery emerged in several struggling sectors, including transportation and storage, which are expected to continue improving into 2025. In the Q4 2024, Estonian exports showed early signs of recovery. Additionally, the decline in industrial production is likely to have bottomed out, as production volumes remained nearly unchanged from Q3. However, several industrial activities continue to face challenges, reflecting ongoing structural weaknesses in the sector. Domestic demand remained weak, with declines in both investment and household consumption, while government consumption expenditure increased slightly. Despite overall weak economic performance, investments

continued to grow in key sectors such as energy, manufacturing, ICT, and transportation and storage.

In Q4 2024, Estonia's consumer price index (CPI) growth accelerated to 3.9%, marking an uptick in inflationary pressures. The increase was primarily driven by food inflation, which rose 5.5%, and services inflation, which climbed 5.7%. Food price inflation was influenced by global market price increases for key items such as coffee, juices, butter, and vegetables.

The loan market in Q4 2024 was primarily driven mainly by private individuals, with the household loan portfolio expanding at an average annual growth rate of 8.3%. Corporate loan portfolio began to accelerate towards yearend, achieving an average year-on-year growth of 8.1% in Q4. The average interest margin for loans to non-financial companies remained stable at around 3% by year-end. The margin for housing loans declined to 1.4% in December, reflecting easing borrowing conditions. Household deposits grew rapidly throughout 2024, reaching an annual growth rate of 12% by year-end. largely in anticipation of upcoming tax hikes. Corporate deposit growth was mixed in Q4, recording an annual increase of over 3% in October and November, but falling to 0% growth in December. Overdue loans remained at historically low levels throughout 2024, although there was a slight increase during the year. By year-end, the market average share of loans overdue by more than 60 days stood at 0.3%, reflecting continued stability in the credit market. However, the proportion of overdue loans to nonfinancial companies nearly doubled since January 2024, reaching 0.41% in December.

Estonia's economic continues to face challenges from reduced external demand, ongoing competitiveness issues, and the prolonged Ukraine-Russia war. However, conditions for recovery are gradually improving. Exporting companies still experience weak demand, though relief is anticipated as input and energy costs rise at a slower pace. Economic projections from Eesti Pank indicate a return to slow growth, with GDP expected to expand by 1.6% in 2025, followed by 2.9% in 2026 and 2027ix . However, the pace of recovery is slower than previously anticipated, as planned tax and excise hikes in the coming years are expected to weigh on economic activity. While

challenges remain, gradual improvements in external demand, easing cost pressures, and sectoral recovery efforts will play a crucial role in shaping Estonia's economic trajectory in the coming years.

ii Office for National Statistics (ONS). GDP first quarterly estimate, UK: July to September 2024. 15 November 2024. Available:

https://www.ons.gov.uk/economy/grossdomesticproductgdp/bu lletins/gdpfirstquarterlyestimateuk/julytoseptember2024#:~:tex t=1.,same%20quarter%20a%20year%20ago.

iii Eurostat. namq_10_gdp. Available:

https://doi.org/10.2908/NAMQ\_10\_GDP

iv Data based on: IMF. World Economic Outlook Update: Global Growth: Divergent and Uncertain. January 20245. Available:

https://www.imf.org/en/Publications/WEO/Issues/2025/01/17/ world-economic-outlook-update-january-2025

^v European Central Bank (ECB). Eurosystem staff macroeconomic projections for the euro area. December 2024. Available:

https://www.ecb.europa.eu/press/projections/html/ecb.projectio ns202412\_eurosystemstaff~71a06224a5.en.html

vi Eurostat. une_rt_m. Available:

https://doi.org/10.2908/UNE\_RT\_M

vii Eurostat. prc_hicp_manr. Available:

https://doi.org/10.2908/PRC\_HICP\_MANR

viii Data for Estonia originates from the databases of Statistics Estonia and the Eesti Pank.

ix Eesti Pank. Rahapoliitika ja Majandus 4/2024. December 2024. Available:

https://haldus.eestipank.ee/sites/default/files/2024-12/rpm2024- 4\_est.pdf

ⁱ Bureau of Economic Analysis. Gross Domestic Product (Third Estimate), Corporate Profits (Revised Estimate), and GDP by Industry, Third Quarter 2024. 19 December 2024. Available: https://www.bea.gov/news/2024/grossdomestic-product-third-estimate-corporate-profits-revisedestimate-and-gdp-1

The Group's Liquidity, Capitalisation and Asset Quality

As at 31 December 2024, the Group's own funds stood at EUR 68.4 million (31 December 2023: EUR 596.4 million). LHV Group own funds are calculated based on regulative requirements.

Compared to Group's internal capital adequacy ratio target 19.7%, the Group is capitalised good enough as at the end of the reporting period, with the capital adequacy ratio is amounting to 20.7% (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 Q4 2024 the regulatory targets are 26.30% (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 32.30%. As at 31 December 2024, MREL-TREA ratio was 33.24% (31.12.2023: 35.68%) and MREL-LRE was 12.41% (31.12.2023: 12.62%).

The Group's liquidity coverage ratio (LCR), as defined by the Basel Committee, stood at 187.5% as at the end of December (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 469.5% (31.12.2023: 449.9%). The Group recognises cash and bond portfolios as liquidity buffers. These accounted for 47% of the balance sheet (31 December 2023: 48%). The ratio of loans to deposits stood at 62% as at the end of the fourth quarter (31 December 2023: 60%). Group's maturity structure is presented in Note 5.

Capital base	31.12.2024 31.12.2023 31.12.2022
Paid-in share capital	32 419	31 983	31 542
Share premium	146 958	143 372	141 186
Statutory reserves transferred from net profit	4 713	4 713	4 713
Other reserves	2 440	-996	-1 441
Retained earnings	320 757	229 287	170 010
Intangible assets (subtracted)	-21 834	-21 278	-23 333
Net profit for the reporting period (COREP)	79 384	129 740	46 180
Other adjustments	-4	-8	-369
Dividends to be distributed	0	-41 578	0
Deferred tax assets that rely on future profitability and do not arise from temporary differences net of
associated tax liabilities	0	0	0
CET1 capital elements or deductions	-648	-382	0
CET1 instruments of financial sector entities where the institution has a significant investment	-971	-3 496	-3 351
CET1 instruments of financial sector entities where the institution has not a significant investment	-4 313	0	-181
Tier 1 capital	558 901	471 357	364 956
Additional Tier 1 capital	35 314	55 000	55 000
Total Tier 1 capital	594 215	526 357	419 956
Subordinated debt	90 196	70 000	75 000
Total Tier 2 capital	90 196	70 000	75 000
Net own funds for capital adequacy	684 411	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	9 760	12 316	11 553
Companies under standard method	1 611 717	1 300 707	1 204 523
Retail claims under standard method	227 524	226 592	219 031
Public sector under standard method	0	0	0
Housing real estate under standard method	857 765	610 181	513 483
Overdue claims under standard methods	23 074	19 759	8 004
Investment funds' shares under standard method	189	188	186
Other assets under standard method	99 646	109 295	102 697
Total capital requirements for covering the credit risk and counterparty credit risk	2 829 675	2 279 038	2 059 477
Foreign currency risk	89 260	1 793	18 324
Interest position risk	0	0	0
Equity portfolio risk	1 176	746	740
Credit valuation adjustment risk	3 526	1 966	2 228
Operational risk under base method	385 580	259 437	197 920
Total risk weighted assets	3 309 217	2 542 980	2 278 689
Capital adequacy (%)	20.68	23.45	21.72
Tier 1 capital ratio (%)	17.96	20.70	18.43
Core Tier 1 capital ratio (%)	16.89	18.54	16.02

The credit quality of the group remained at a good level. A loan discount reserve of 39.8 million euros was formed in the balance sheet at the end of December to cover estimated loan losses. As of the end of the fourth quarter, the fair value of the collateral of the loan portfolio is 3% lower than the book value of the loan portfolio.

Loan portfolio distribution			Under-collateralized
		Over-collateralized loans		loans	Total
	Carrying value	Fair value of collateral	Carrying value	Fair value of collateral	Carrying value	Fair value of collateral
Stage 1	1 699 915	2 575 502	2 363 690	1 208 946	4 063 605	3 784 448
Corporate Lending	684 575	963 334	1 793 128	772 698	2 477 703	1 736 032
Consumer Financing	0	0	66 480	0	66 480	0
Investment Financing	6 622	29 382	3 230	2 668	9 852	32 050
Leasing	20 261	29 787	135 180	97 755	155 441	127 542
Private Lending	988 457	1 552 999	365 672	335 825	1 354 129	1 888 824
Stage 2	249 333	457 386	218 194	138 160	467 527	595 546
Corporate Lending	108 950	137 211	150 885	111 696	259 835	248 907
Consumer Financing	0	0	32 217	0	32 217	0
Investment Financing	0	2	58	46	58	48
Leasing	3 948	6 028	17 152	13 297	21 100	19 325
Private Lending	136 435	314 145	17 882	13 121	154 317	327 266
Stage 3	18 044	29 063	2 917	1 111	20 961	30 174
Corporate Lending	14 892	20 296	439	112	15 331	20 408
Consumer Financing	0	0	1 305	0	1 305	0
Investment Financing	5	6	0	0	5	6
Leasing	826	1 105	1 160	999	1 986	2 104
Private Lending	2 321	7 656	13	0	2 334	7 656

Overview of AS LHV Pank Consolidation Group

• Net profit EUR 34.8 million
• Deposits increased by 577 million euros in the quarter
• Loan portfolio increased by 300 million euros in the quarter
• EUR 250 million of covered bonds were issued
• TBB loan portfolio was taken over in the amount of EUR 23 million

						From the	From the
EUR million	Q4 2024	Q3 2024	Change %	Q4 2023	Change %	beginning of 2024	beginning of 2023	Change %
Net interest income	56.75	59.99	-5%	59.58	-5%	237.05	228.47	4%
Net fee and commission income	11.60	8.74	33%	8.44	37%	36.44	27.22	34%
Other financial income	-0.27	0.65	NA	2.37	NA	0.58	2.65	-78%
Total net operating income	68.08	69.38	-2%	70.39	-3%	274.08	258.34	6%
Other income	0.70	0.39	81%	1.16	-40%	2.04	1.73	18%
Operating expenses	-26.51	-22.83	16%	-22.87	16%	-95.36	-85.23	12%
Loan and bond portfolio gains/(-losses)	-1.02	-7.09	-86%	-9.59	-89%	-15.78	-11.37	39%
Income tax expenses	-6.46	-5.74	13%	-5.52	17%	-24.44	-22.11	11%
Net profit	34.79	34.10	2%	33.57	4%	140.52	141.37	-1%
Loan portfolio	4 204	3 904	8%	3 549	18%
Financial investments	291	245	19%	327	-12%
Deposits of customers incl. deposits of financial	6 294	5 716	10%	5 535	14%
entities	1 664	1 193	39%	1 230	35%
Subordinated liabilities	135	114	18%	114	18%
Equity	598	562	6%	530	13%

LHV Pank earned net interest income of EUR 56.8 million and EUR 11.6 million in net service fee income in Q4. Net financial income amounted to EUR -0.3 million in Q4. In total, the Bank's income was EUR 68.8 million and expenses were EUR 26.5 million. Net income decreased by 4% and expenses increased by 16% over the year. The discounts of loans and bonds amounted to EUR 1.0 million in Q4. We made forward-looking specific and general discounts. We are keeping a very close eye on developments in the credit portfolio.

LHV Pank accounts for and recognises in expenses a 14% advance income tax which was EUR 5.4 million in Q4. Income tax expense on future disbursements of dividends by subsidiaries at the consolidated level was EUR 0.3 million in Q4.

The Bank's Q4 profit amounted to EUR 34.8 million, which is 2% more than in Q3 2024 (34.1) and 4% more than in Q4 2023 (33.6).

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

The total volume of the Bank's loan portfolio reached EUR 4 204 million by the end of Q4 (Q3 2024: EUR 3 904 million). The volume of loans grew by EUR 300 million in Q4 (Q3 2024: a growth of EUR 160 million). The net retail loan portfolio grew by 5% during the quarter, reaching EUR 1 930 million (Q3 2024: EUR 1 832 million). The net corporate loan portfolio grew by 10% during the quarter, reaching EUR 2 274 million (Q3 2024: EUR 2 072 million).

The volume of deposits at the Bank increased by EUR 577 million from the previous quarter and stood at EUR 6 294 million (Q3 2024: EUR 5 716 million). The volume of payment intermediaries' deposits grew by EUR 450 million during the quarter. Of the deposits, EUR 4 338 million were call deposits, EUR 1 669 million term deposits and EUR 286 million platform deposits. The volume of the deposits of private customers amounted to EUR 1 887 million as at the end of the quarter, having grown by 11% in a quarter.

The Bank's expense-income ratio was 38.5%% in Q4, increasing by 6.5 percentage points from Q4 2023 (32.0%).

The corporate credit portfolio, which includes loans and guarantees, grew by EUR 421.8 million in 2024 (+21%) with quarter-over-quarter growth of EUR 163.7 million (+7%). Loans granted to companies in the sector of real estate related activities were the largest source of growth, growing by EUR 237.1 million (+32%) in a year. Next came loans to companies in the finance and insurance sector, which grew EUR 96.1 million from the year before (+71%) and loans issued to the construction sector, which grew EUR 60.5 million (+90%) over the year.

Compared to Q3 2024, the portfolio growth was most influenced by the sector engaged in real estate activities (quarterly growth EUR 109.4 million; +12%), followed by the finance and insurance industry (EUR 83.0 million; +56%) and the professional, research and technology sector (EUR 16.2 million; +44%).

The majority of corporate loans were granted to the real estate sector, which makes up 40% of the Bank's corporate loan portfolio. Of real estate loans, the principal part was issued to projects with high-quality rental streams, with real estate developments making up a much smaller share. Most of the financed real estate developments are located in Tallinn, while projects located in other major Estonian cities and in the vicinity of Tallinn made up about 25% of development projects. LHV's market share of new development financing in Tallinn made up about one-fifth by estimate at the end of Q4 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 55%.

Besides the real estate sector, the largest amount of loans has been granted to companies related to finance and insurance activities (share 9%) and companies engaged in the supply of electricity, gas, steam and conditioned air (share 8%). Of sectors that usually run a higher credit risk, construction makes up 5%, transport and warehousing 3% and HoReCa 2% of the total volume of the portfolio.

During the quarter, the number of the bank's clients grew by close to 10,900. New clients were attracted at a good rate and their activity levels were high as well. Deposits grew by EUR 577 million and loans increased by EUR 300 million over the quarter.

Ordinary clients' deposits saw quarterly growth of EUR 180 million and financial intermediaries' deposits increased by EUR 450 million. The proportion of households' deposits on the market has reached record highs, being 12% higher in December than in the previous December. The growth was mainly influenced by the anticipated tax hikes. The growth of businesses' deposits were more modest: year-over-year growth was about 3% in October and November but fell to 0% in December. Our aim is to attract deposits from the Estonian market, which also proved successful in Q4 due to a salary direct deposit promotion and allowed us to reduce platform deposits by EUR 66 million by the end of the year. Deposits remain in the focus.

Loans to businesses grew by EUR 203 million and retail loans grew by EUR 98 million. The loan market in Q4 of 2024 was mainly driven by individuals – households' loan portfolio grew by an average of 8.3% year-over-year. Businesses' loan portfolio began growing faster toward the end of the year, achieving an average annual growth of 8.1% in Q4. Our market share of new loans granted to businesses stood at about 30% throughout last year. We also continued with a strong commitment to issuing home loans, and although client activity on the market fell somewhat at the end of the year, we managed to maintain a strong result.

Net profit for the quarter was approximately EUR 34.8 million. The strong result in Q4 was impacted mainly by interest rates rising due to larger than planned volumes in the loan portfolio. On the other hand, pressure on interest rates continues. The 6-month Euribor, which is linked to many loan contracts, began declining faster in the Q4, from 3.1% in September to 2.6% by December. Longer-term interbank lending rates fell as well, with the 12-month Euribor dropping to 2.5% in December. That provides relief for clients, but also has a noteworthy impact on profitability since interest rates paid on deposits are locked in at a high level. Income from service fees was higher than planned, and the solid result was additionally supported by investment banking consultation, which were realised at the end of the year.

Loan impairments decreased during the quarter mainly due to model-based changes implemented at the end of the year. Loans in default remained at a historical low throughout 2024, although mild growth did take place during the year. By the end of the year, the average share of loans more than 60 days past due was 0.3%, which indicates continued stability on the credit market. At the same time, the proportion of non-financial sector companies' loans in default has nearly doubled since January 2024, rising to 0.41% in December. Our portfolio also includes clients whose

ratings have worsened, but as a whole the bank's loan portfolio quality has remained stable and the share of loans past due continues to be low. The deterioration of quality in the consumer loan portfolio has stabilised as well.

In Q4, we completed the acquisition of part of TBB Bank's loan portfolio. The final size of the portfolio was EUR 23 million and the write-down was nearly EUR 4 million. For merchants, we introduced a new solution – LHV Wallet, which allows for convenient acceptance of payments over electronic channels.

With the help of the investment banking team, the privatisation of the state company Operail to the company Tiigi Keskus was completed and we helped to organise an IPO for Eleving Group and a bond issue for BluOr Bank.

We issued EUR 250 million worth of covered bonds with a fouryear term. We are selling the covered bonds, which are secured by home loans, to European institutional investors. A total of 32 institutional investors took part in the issue and it was oversubscribed twofold. The covered bonds were listed on the Dublin exchange. The expected rating for the covered bonds from Moody's Investors Service Ltd is Aa1.

In Q4, we carried out significant changes in our organisation. For the purpose of structural changes and cost-cutting, we reduced the number of positions, laying off 44 people. The expenses related to the layoffs were recognised in the results for December, and the employees' contracts will expire on 3 February 2025. In November, there was a change in Bank's management board member and head of risk as Kadri Haldre joined us, replacing Martti Singi.

Providing broad-based support for Estonian sport and athletes is very important for us. We renewed our cooperation with the Estonian Biathlon Union and the Estonian Football Association by three and five years, respectively.

Q4 also brought outside acclaim for LHV. In a survey held by the online recruitment portal CV Keskus.ee, employees once again selected LHV Bank as Estonia's most attractive employer. The Financial Times' international banking magazine The Banker picked LHV as the best bank in Estonia for 2024 – the sixth time LHV has won this honour.

Overview of LHV Bank Limited

The bank significantly increased its loan volumes in Q4, from EUR 126 million to EUR 348 million, a 56% increase. As of the end of the quarter, there were EUR 119 million in loans that had been approved by the Credit Committee but had yet to be issued. Although one loan was classified as Stage 2 and another as Stage 3 under IFRS 9 as at the end of the year, the overall quality of the loan portfolio remained strong. By the end of the year, the bank had entered into cooperation agreements with about 60 loan brokers. Name recognition of the LHV brand among loan brokers increased substantially in the course of the year.

Deposits grew by EUR 70 million to EUR 705 million, an increase of 11%. By the end of the quarter, the bank had more than 11,600 depositors from three deposit platforms.

Net profit for the quarter was EUR 0.6 million and ROE was 3.0%. Profitability for the quarter fell short of the planned level due to slower than expected growth of financial intermediaries' deposits, which in turn resulted in lower than planned interest income. By the end of the year, however, the volumes of financial intermediaries' deposits had reached the planned level and exceeded the levels from the beginning of the year.

At year's end, a retail banking solution, mobile bank and a new website were launched. The retail banking mobile bank allows private clients to open a bank account and make payments in GBP. In the first half of 2025, the bank will update the mobile bank with deposits, direct deposits and debit cards and will begin broader public communication and marketing. The addition of other currencies and opening of accounts for business clients is planned for the second half of the year.

Q4 2024	Q3 2024	change %
9.08	7.21	26%
2.14	2.23	-4%
0.51	-0.06	NA
11.73	9.38	25%
0.00	0.00	NA
-10.89	-10.0	9%
-0.07	-0.18	-61%
-0.13	0.2	NA
0.64	0.6	NA
348.3	222.7	56%
704.9	635.3	11%
86.04	84.4	2%

Overview of AS LHV Varahaldus

• Net profit for Q4 was EUR 0.5 million
• Number of active second-pillar clients at the end of the quarter –114 thousand
• Volume of assets in second-pillar funds more than EUR 1.4 billion, increase of EUR 29 million in a quarter
• Nearly 36 thousand third-pillar clients by the end of the year, the volume of funds grew by EUR 9 million in a quarter

EUR million	Q4 2024	Q3 2024	Change %	Q4 2023	Change %	From the beginning of 2024	From the beginning of 2023	Change %
Net fee and commission income	2.26	2.25	0%	2.25	0%	8.94	8.85	1%
Net financial income	0.05	0.11	-55%	0.12	-58%	0.55	0.27	104%
Operating expenses Depreciation of non-current	-1.47	-1.46	1%	-1.48	-1%	-5.76	-5.51	5%
assets	-0.33	-0.32	3%	-0.35	-6%	-1.32	-1.47	-10%
Profit	0.51	0.58	-12%	0.54	-6%	2.41	2.14	13%
Financial investments	6.0	6.0	0%	6.0	0%
Equity	20	19.0	5%	23.0	-13%
Assets under management	1 558.0	1 521.0	2%	1 519.0	3%

In Q4, the operating income of LHV Varahaldus amounted to EUR 2.3 million and the net profit was EUR 0.5 million. Operating income was almost the same as in the previous quarter, largely meeting the financial plan, while expenses remained a bit below the financial plan. Net financial income, or income from the growth in the value of own shares was marginal in Q4.

The year ended positively for the major stock markets, with the US presidential elections in November giving a proper push despite a weaker December. Measured in euros, SP500 grew by 9.9% and Nasdaq Composite, which comprises technology stocks, grew by 14.4% in the last quarter. The main US indices also contributed to the 7.6% quarterly growth of MSCI World, while the yields of other major stock markets remained more modest. On the whole, 2024 was, for the second consecutive year, a very good year for equity markets – measured in euros, SP500, Nasdaq and Euro Stoxx 50 grew by 31.8%, 37.5% and 11.0%, respectively.

Compared to market indices, the larger actively managed LHV pension funds performed somewhat more modestly both in the last quarter and in 2024 on the whole. The values of pension fund M and L shares grew by 1.0% and 0.6%, respectively, while XL declined by 1.4% in the quarter due to a weak December. Conservative strategy based pension funds S and XS showed a yield of 1.2% and 0.8%, respectively, while the value of the Indeks share grew as much as 4.2%. Pension fund Roheline, however, decreased by 5.8% on the backdrop of a weak 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 4.2%, Roheline III dropped by 5.7%, and LHV's pension fund Aktiivne III lost 2.0% in value.

The number of LHV's active second-pillar clients decreased by a thousand, with the number of clients amounting to a bit over 114 thousand by the end of the year. Compared to previous years, the number of clients wishing to exit the II pillar has decreased despite the more complex economic environment. The volume of assets in second-pillar funds was more than EUR 1.4 billion by the end of the year, and increase of EUR 29 million in a quarter.

Q4 was again marked by higher activity in the third pillar, but the number of new clients who have joined the third pillar has decreased from previous years. However, the contributions of the existing clients are higher than in previous years. By the end of the year, the third-pillar funds have more than 36 thousand people. The volume of third-pillar assets grew by EUR 9 million in a quarter, amounting to EUR 109 million by the end of the year.

The disclosure of the increased second-pillar contributions to be implemented in 2025 also ended in November. Of the client base of LHV's pension funds, nearly 14 thousand people increased their second-pillar contributions at the first opportunity.

The growth of the reference index, which depends on the receipt of social tax, or is a function of salary and employment growth, was significantly lower than in previous years – while in 2022 and 2023 the growth was 12.6% and 11.3%, respectively, in 2024 the indicator was 6.2%.

By the end of the year, 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 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 year, while also taking into account changes in fund volumes and the necessary liquidity.

Overview of AS LHV Kindlustus

The Q4 2024 sales results of AS LHV Kindlustus grew from the previous quarter, which is quite ordinary, as the clients' activity has always been higher in Q4 than in Q3. The strong sales result was influenced by the all-risks insurance campaign conducted in October, which resulted in approximately 900 new clients and an increase in the sales of cars at the end of 2024 in expectation of the car tax applicable as of 2025. Of insurance products, the results continued to be very good in home and travel insurance – the sales figures of both products have exceeded the financial plan throughout 2024. The results of all-risks and motor TPL insurance were influenced by the aforementioned market-wide increase in activity in the sales of new and used cars. During Q4, some changes were made in the pricing of various products due to a need to correct actuarial indicators. The volume of insurance premiums from the health insurance product solution marketed in cooperation with Confido was EUR 1,633 thousand in Q4. The net profit of Q4 was largely impacted by an increase in operating expenses some of which were unplanned. The number of insurance contracts continues its slow but stable growth. As at the end of Q4, the company exceeded the main goals of the 2024 financial plan.

In the development of information systems, several important updates were completed in the claims adjustment programme and in the data warehouse created to improve the company's analytical capability. The development of both projects continues in 2025, with a greater emphasis on the development of the data warehouse. A great focus continues to be on improving cooperation and making processes more efficient with other LHV Group companies. New home insurance terms and conditions entered into force in Q4.

As at 31 December 2024, LHV Kindlustus had 252 thousand valid insurance contracts and 170 thousand customers. Both indicators grew throughout 2024.

The volume of gross insurance premiums was EUR 9,821 thousand and the net earned insurance premiums totalled EUR 8,394 thousand in Q4. The proportions of the products in the insurance portfolio remained the same as in the previous quarter.

During Q4, 31,120 new loss events were registered and as at 31 December 2024, 3,207 claims files were open. The net losses incurred in the period together with indirect claims adjustment costs were EUR 5,766 thousand. Compared to the previous quarter, there was an increase both in the number of loss events and the indirect claims adjustment costs.

The quarterly loss frequency of insurance products corresponded to the financial plan. There were a few major loss events. Of insurance products, home insurance showed a good gross loss ratio. The company's Q4 profit was EUR 67 thousand, influenced the most by an increase in operating expenses. The company fulfilled all the major goals of the 2024 financial plan.

EUR thousand	Q4 2024	Q3 2024	Change %	Q4 2023	Change %
Gross insurance premiums	9 821	8 452	16%	8 198	20%
Net earned insurance premiums	8 394	7 985	5%	6 700	25%
Net losses incurred	-5 766	-5 322	8%	-4 102	41%
Total net operating expenses	-2 658	-2 304	15%	-2 154	23%
Underwriting result	-30	359	NA	299	NA
Net profit	67	452	-85%	423	-84%

.

As of the end of Q4, LHV Kindlustus employed 65 people.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

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

				Q4 2023	12M 2023
(in thousands of euros)	Note	Q4 2024	12M 2024	corrected	corrected
Interest income		113 033	443 531	100 712	336 620
Interest expense		-46 477	-170 205	-33 042	-82 801
Net interest income	9	66 556	273 326	67 670	253 819
Fee and commission income		20 573	78 675	17 404	65 390
Fee and commission expense		-3 249	-18 373	-3 140	-16 581
Net fee and commission income	10	17 324	60 302	14 264	48 809
Insurance service revenue		9 429	34 969	7 541	26 038
Insurance service expenses		-9 227	-33 038	-6 918	-24 658
Net result from reinsurance contracts held		-153	-960	-251	-1 017
Net insurance income		49	971	371	363
Net gains/losses from financial assets measured at fair value		125	803	486	-728
Foreign exchange gains/losses		-322	297	-6	1 457
Net gain/loss from financial assets		-197	1 100	480	729
Other income		1 193	2 610	1 246	1 806
Other expense		-3	-9	-3	-28
Staff costs		-22 831	-82 315	-17 765	-63 924
Administrative and other operating expenses		-17 955	-64 605	-18 422	-65 437
Profit before impairment losses on loans and
advances		44 136	191 380	47 841	176 137
Change in financial investments		0	0	189	9
Impairment losses on financial instruments	21	-1 086	-16 256	9 619	11 547
Income tax expense		-6 335 -6 732	-6 335 -24 820	-6 281 -5 643	189 -23 660
Net profit for the reporting period	2	36 318	150 304	32 768	140 938
Other comprehensive income/loss:		1 038	39 846		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		616	3 437	-60	834
Total profit and other comprehensive income for the
reporting period		36 934	153 741	32 708	141 772
Total profit of the reporting period attributable to:
Owners of the parent		35 752	148 968	32 537	139 602
Non-controlling interest		566	1 336	231	1 336
Total profit for the reporting period	2	36 318	150 304	32 768	140 938
Total profit and other comprehensive income attributable to:
Owners of the parent		36 368	152 405	32 477	140 436
Non-controlling interest		566	1 336	231	1 336
Total profit and other comprehensive income for the
reporting period		36 934	153 741	32 708	141 772
Basic earnings per share (in euros)	16	0.11	0.46	0.10	0.44
Diluted earnings per share (in euros)	16	0.11	0.45	0.10	0.43

The Notes on pages 24 to 40 are an integral part of the condensed consolidated interim financial statements.

			31.12.2023
(in thousands of euros)	Note	31.12.2024	corrected
Assets
Due from central bank	4, 5, 6, 12	3 775 554	3 068 078
Cash and cash equivalents	4, 5, 6, 12	35 813	36 957
Due from investment companies	4, 6, 12	5 938	12 509
Due from credit institutions		1 000	1 850
Financial assets at fair value through profit or loss	4, 6, 7	26 272	18 453
Investments in debt securities at amortised cost	7	283 533	321 888
Loans and advances to customers	4, 6, 8, 21	4 552 093	3 561 791
Receivables from customers		4 736	20 059
Reinsurance contract assets		2 044	1 291
Insurance contract assets		89	67
Other financial assets		281	273
Other assets		6 559	3 715
Financial investment		1 000	1 000
Property and equipment	19	18 206	22 109
Intangible assets	19	14 043	13 843
Goodwill		9 150	9 150
Total assets	2	8 736 311	7 093 033
Liabilities
Deposits of customers	13	6 910 110	5 731 005
Loans received and debt securities in issue	13	927 686	563 728
Financial liabilities at fair value through profit or loss	7	24	1 843
Accounts payable and other liabilities	14	76 818	98 664
Insurance contract liabilities		15 258	13 586
Reinsurance contract liabilities		1 499	1 188
Subordinated debt	6, 20	126 256	126 653
Total liabilities	2	8 057 651	6 536 667
Owner's equity
Share capital		32 419	31 983
Share premium		146 958	143 372
Statutory reserve capital		4 713	4 713
Other reserves		16 271	9 333
Retained earnings		469 727	359 029
Total equity attributable to owners of the parent		670 088	548 430
Non-controlling interest		8 572	7 936
Total equity		678 660	556 366
Total liabilities and equity		8 736 311	7 093 033

Condensed Consolidated Interim Statement of Financial Position

The Notes on pages 24 to 40 are an integral part of the condensed consolidated interim financial statements.

Condensed Consolidated Interim Statement of Cash Flows

(in thousands of euros)	Note Q4 2024	12M 2024	Q4 2023	12M 2023
Cash flows from operating activities
Interest received	111 141	443 783	97 567	328 464
Interest paid	-60 125	-163 447	-26 294	-57 074
Fees and commissions received	20 594	78 858	14 063	65 365
Fees and commissions paid	-3 539	-18 419	-3 139	-16 581
Other income received	1 227	2 259	-974	-1 157
Staff costs paid	-20 488	-75 258	-14 236	-57 824
Administrative and other operating expenses paid	-15 754	-55 205	-11 379	-51 846
Income tax paid	-1 460	-25 456	-6 098	-23 655
Net insurance income		277 1 948	1 367	1 367
Cash flows from operating activities before change in operating
assets and liabilities	31 873	189 063	50 877	187 059
Net increase/decrease in operating assets:
Net increase/(decrease) in financial assets at fair value through profit or loss		-874 -528	-2 887	-6 539
Loans and advances to customers	-421 534	-991 830	-195 302	-363 286
Mandatory reserve at central bank	-49 452	31 289	-64 918	41 056
Security deposits	-5 646	-7 340	-3 055	-7 211
Other assets		0 0	0	24
Net changes of investment securities at fair value through profit or loss and
of investment securities at amortized cost		363 -3 763	27 786	7 389
Deposits with more than 3 months maturity		600 850	-1 850	-1 850
Net increase/decrease in operating liabilities:
Demand deposits of customers	739 218	757 828	-27 176	-859 141
Term deposits of customers	-108 425	407 529	432 503	1 665 447
Subordinated loans received	250 000	250 000		0
Prepayments of subordinated loans received		0 0	-27	-147 547
Financial liabilities held for trading at fair value through profit and loss	-1 148	-1 819	1 408	-2 007
Other liabilities	4 164	-5 723	-9 942	29 733
Net cash generated from/used in operating activities	439 139	625 556	207 417	543 127
Cash flows from investing activities
Purchase of non-current assets	-3 212	-7 252	-10 104	-16 901
Net cash flows from/used in investing activities	-3 212	-7 252	-10 104	-16 901
Cash flows from financing activities
Paid in share capital (incl. share premium)		0 4 021	0	2 627
Dividends paid		0 -42 278	0	-13 842
Loans received		0 300 000	99 800	153 431
Prepayments of loans received		0 -200 000	-40 000	-40 000
Repayments of the principal of lease liabilities		-471 -2 111	-461	-1 945
Net cash flows from/used in financing activities		-471 59 632	59 339	100 271
Effect of exchange rate changes on cash and cash equivalents	6 1 788	14 485	-126	1 549
Net increase/decrease in cash and cash equivalents	437 244	692 421	256 526	628 046
Cash and cash equivalents at the beginning of the period	3 316 822	3 061 645	2 805 119	2 433 599
Cash and cash equivalents at the end of the period	12 3 754 006	3 754 066	3 061 645	3 061 645

The Notes on pages 24 to 40 are an integral part of the condensed consolidated interim financial statements

						attributable	Non
			Statutory			to owners	control
	Share	Share	reserve	Other	Retained	of LHV	ling
(in thousands of euros)	capital	premium	capital	reserves	earnings	Group		interest Total equity
Balance as at 01.01.2023	31 542	141 186	4 713	5 683	229 817	412 941	7 908	420 849
Paid in share capital	441	2 186	0	0	0	2 627	0	2 627
Dividends paid	0	0	0	0	-12 617	-12 617	-1 225	-13 842
Change in accounting methods	0	0	0	0	-153	-153	-83	-236
Share options	0	0	0	2 816	2 380	5 196	0	5 196
Profit for the reporting period Other comprehensive	0	0	0	0	139 602	139 602	1 336	140 938
income/loss	0	0	0	834	0	834	0	834
Total profit and other comprehensive income for the
reporting period	0	0	0	834	139 602	140 436	1 336	141 772
Balance as at 31.12.2023	31 983	143 372	4 713	9 333	359 029	548 430	7 936	556 366
Balance as at 01.01.2024	31 983	143 372	4 713	9 333	359 029	548 430	7 936	556 366
Paid in share capital	436	3 586	0	0	0	4 022		0 4 022
Dividends paid	0	0	0	0	-41 578	-41 578	-700	-42 278
Share options	0	0	0	3 501	3 308	6 809		0 6 809
Profit for the reporting period	0	0	0	0	148 968	148 968	1 336	150 304
Other comprehensive income/loss	0	0	0	3 437	0	3 437		0 3 437
Total profit and other
comprehensive income for the reporting period	0	0	0	3 437	148 968	152 405	1 336	153 741
Balance as at 31.12.2024	32 419	146 958	4 713	16 271	469 727	670 088	8 572	678 660

Condensed Consolidated Interim Statement of Changes in Equity

Total equity

The Notes on pages 24 to 40 are an integral part of the condensed consolidated interim financial statements

Notes to the Condensed Consolidated Interim Financial Statements

NOTE 1 Accounting Policies

The condensed consolidated interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting", as adopted by the European Union. The condensed consolidated interim financial statements does not contain all the information necessary to be presented in the annual report.

These condensed consolidated interim financial statements should be read in conjunction with the group's annual financial statements as at 31 December 2023. The same accounting policies and methods of computation are followed in the condensed consolidated interim financial statements as compared with the most recent annual financial statements.

There are no significant changes in risk policies of the group, all the results including estimates and judgement of expected credit losses are in line with principles described in group's annual financial statements as at 31 December 2023.

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

Correction in classification of investing and operating cash flows

Management identified a classification misstatement related to financial investments. Such purchased and sales have been previously classified under net cash flow from/used in investing activities but as these assets are operating activities in nature then the cash flows from purchases and sales should be classified under net cash generated from/used in operating activities. The presentation has been corrected by reclassifying the affected cash flow statement line items for the prior periods as follows:

	Q4 2023	Increase/(Decrease)	Q4 2023 restated
Fees and commissions received	19 400	-5 337	14 063
Other income received	-988	14	-974
Staff costs paid	-16 683	2 447	-14 236
Administrative and other operating expenses paid	-19 103	7 724	-11 379
Net insurance income	0	1 367	1 367
Cash flow from operating activities before change in operating assets and liabilities	44 662	6 215	50 877
Net change in debt and equity securities	0	-64 918	-64 918
Other assets	-4 771	32 557	27 786
Other liabilities	28 020	-37 962	-9 942
Net cash generated from/used in operating activities	264 427	-64 108	207 417
Net change in debt and equity securities	-64 918	64 918	0
Net cash flow from/used in investing activities	-75 022	64 918	-10 104

	12M 2023	Increase/(Decrease)	12M 2023 restated
Fees and commissions received	70 702	-5 337	65 365
Other income received	-1 171	14	-1 157
Staff costs paid	-60 271	2 447	-57 824
Administrative and other operating expenses paid	-59 570	7 724	-51 846
Net insurance income	0	1 367	1 367

Cash flow from operating activities before change in operating assets and liabilities	180 844	6 215	187 059
Loans and advances to customers	-357 992	-5 294	-363 286
Net change in debt and equity securities	0	41 056	41 056
Other assets	-25 168	32 557	7 389
Other liabilities	63 211	-33 478	29 733
Net cash generated from/used in operating activities	502 071	41 056	543 127
Net change in debt and equity securities	41 056	-41 056	0
Net cash flow from/used in investing activities	24 155	-41 056	-16 901

NOTE 2 Business Segments

The Group divides its business activities into segments according to its legal structure. The 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 decisionmaker. 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.

Q4 2024
(in thousands of		LHV	LHV	LHV
euros)	LHV Pank	Bank	Varahaldus	Kindlustus	Other activities	Eliminations	Total
Interest income	96 859	15 916	20	158	10 043	-9 963	113 033
Incl. intragroup	-4 437	4 654	0	4	9 742	-9 963	0
Interest expense	-40 108	-6 838	0	-75	-9 419	9 963	-46 477
Net interest income Fee and commission	56 751	9 078	20	83	624	0	66 556
income	15 154	2 770	2 262	0	2 401	-2,014	20 573
Incl. intragroup Fee and commission	-1 468	1 950	71	0	1 461	-2,014	0
expense Net fee and	-3 555	-626	0	-22	-878	1,832	-3 249
commission income	11 599	2 144	2 262	-22	1 523	-182	17 324
Net insurance
income	0	0	0	49	0	0	49
Other income	701	507	0	6	0	-24	1 190
Net gains/(-losses) from financial assets Administrative and other operating	-268	2	25	44	0	0	-197
expenses, staff costs	-26 513	-10 893	-1 799	-92	-1 694	205	-40 786
Operating profit Impairment gains/(- losses) on loans and	42 270	838	508	68	452	-140	44 136
bond portfolio	-1 019	-67	0	0	0	0	-1 086
Income tax	-6 460	-132	0	0	0	0	-6 732
Net profit	34 791	639	508	68	452	-140	36 318

12 months 2024

(in thousands of		LHV	LHV	LHV
euros)	LHV Pank	Bank	Varahaldus	Kindlustus	Other activities	Eliminations	Total
Interest income	386 906	55 114	110	585	36 731	-35 915	443 531
Incl. intragroup	-19 070	20 065	2	68	34 850	-35 915	0
Interest expense	-149 857	-20 398	0	-291	-35 574	35 915	-170 205
Net interest income Fee and commission	237 049	34 716	110	294	1 157	0	273 326
income	56 475	11 615	8 936	0	6 313	-4 664	78 675
Incl. intragroup Fee and commission	-8 208	8 645	273	0	3 954	-4 664	0
expense Net fee and	-20 032	-2 238	0	-70	0	3 967	-18 373
commission income	36 443	9 377	8 936	-70	6 313	-697	60 302
Net insurance income	0	0	0	971	0	0	971
Other income	2 039	662	0	-7	0	-93	2 601
Net gains/(-losses) from financial assets Administrative and other operating	581	-130	450	204	81 195	-81 200	1 100
expenses, staff costs	-95 373	-39 095	-7 079	-194	-5 968	789	-146 920
Operating profit Impairment gains/(- losses) on loans and	180 739	5 530	2 417	1 198	82 697	-81 201	191 380
bond portfolio	-15 777	-479	0	0	0	0	-16 256
Income tax	-24 443	794	-801	0	-293	-77	-24 820
Net profit	140 519	5 845	1 616	1 198	82 404	-81 278	150 304
Total assets 31.12.2024	7 936 527	798 900	20 771	28 910	782 896	-831 693	8 736 311
Total liabilities 31.12.2024	7 338 159	712 864	772	22 427	553 923	-570 494	8 057 651

Q4 2023

(in thousands of		LHV	LHV	LHV
euros)	LHV Pank	Bank	Varahaldus	Kindlustus	Other activities	Eliminations	Total
Interest income	89,574	12,356	31	117	6,167	-7,533	100,712
Incl. intragroup	-5,348	6,905	0	27	5,949	-7,533	0
Interest expense	-29,997	-2,709	0	-45	-7,824	7,533	-33,042
Net interest income Fee and commission	59 577	9 647	31	72	-1 657	0	67 670
income	12 606	2 305	2 252	0	1 769	-1 528	17 404
Incl. intragroup Fee and commission	-2 275	1 631	62	0	1 256	-674	0
expense Net fee and	-4 163	-108	0	0	-149	1 280	-3 140
commission income	8 443	2 197	2 252	0	1 620	-248	14 264
Net insurance
income	0	0	0	371	0	0	371
Other income	1 163	106	0	-5	0	-18	1 246

Net profit	33 573	3 045	540	421	-1 252	-3 559	32 768
Income tax	-5 521	0	0	0	0	-122	-5 643
Impairment gains/(- losses) on loans and bond portfolio	-9 588	-31	0	0	0	0	-9 619
Change in financial investment	0	0	0	0	189	0	189
Operating profit	48 682	3 076	540	421	-1 441	-3 437	47 841
Administrative and other operating expenses, staff costs	-22 870	-8 878	-1 837	-18	-1 401	-1 186	-36 190
Net gains/(-losses) from financial assets	2 369	4	94	1	-3	-1 985	480

12 months 2023

(in thousands of euros)	LHV Pank	LHV Bank	LHV Varahaldus	LHV Kindlustus	Other activities	Eliminations	Total
Interest income	305 507	33 668	50	318	18 174	-21 097	336 620
Incl. intragroup	-20 621	23 855	4	37	17 822	-21 097	0
Interest expense	-77 036	-4 750	0	-152	-21 960	21 097	-82 801
Net interest income Fee and commission	228 471	28 918	50	166	-3 786	0	253 819
income	46 234	8 030	8 845	0	5 514	-3 233	65 390
Incl. intragroup Fee and commission	-8 233	6 971	230	0	3 922	-2 890	0
expense Net fee and	-19 017	-222	0	0	-13	2 671	-16 581
commission income	27 217	7 808	8 845	0	5 501	-562	48 809
Net insurance income	0	0	0	363	0	0	363
Other income	1 737	106	0	0	0	-65	1 778
Net gains/(-losses) from financial assets Administrative and	2 652	-76	241	-87	5 257	-7 258	729
other operating expenses, staff costs	-85 235	-31 303	-6 996	-138	-4 717	-972	-129 361
Operating profit Impairment gains/(- losses) on loans and	174 842	5 453	2 140	304	2 255	-8 857	176 137
bond portfolio	-11 372	-176	0	0	9	0	-11 539
Income tax	-22 107	0	-488	0	-1 062	-3	-23 660
Net profit	141 363	5 277	1,652	304	1 202	-8 860	140 938
Total assets 31.12.2023	6 754 644	369 316	23 262	23 012	617 939	-695 140	7 093 033
Total liabilities 31.12.2023	6 224 615	315 815	725	17 767	440 648	-462 903	6 536 667

NOTE 3 Risk Management

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

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

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

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

31.12.2024	Estonia	Germany	Other EU	USA	UK	Other	Total
Due from banks and investment companies	2 965 435	0	412 219	14 143	425 221	1 287	3 818 305
Financial assets at fair value	8 094	896	16 452	427	401	2	26 272
Financial assets at amortized cost	201 148	0	82 385	0	0	0	283 533
Loans and advances to customers	4 156 287	1 164	38 344	660	349 333	6 305	4 552 093
Receivables from customers	4 736	0	0	0	0	0	4 736
Receivables from customers	2 044	0	0	0	0	0	2 044
Reinsurance contract assets	89	0	0	0	0	0	89
Other financial assets	181	0	0	100	0	0	281
Total financial assets	7 338 014	2 060	549 400	15 330	774 955	7 594	8 687 353
Deposits of customers	4 557 895	8 798	1 332 356	34 694	915 475	60 892	6 910 110
Loans received and debt securitioes in issue	0	0	927 686	0	0	0	927 686
Subordinated debt	126 256	0	0	0	0	0	126 256
Financial liabilities at fair value	50 015	0	0	0	4 778	0	54 793
Insurance contract liabilities	15 258	0	0	0	0	0	15 258
Reinsurance contract liabilities	1 499	0	0	0	0	0	1 499
Accounts payable and other financial liabilities	24	0	0	0	0	0	24
Total financial liabilities	4 750 947	8 798	2 260 042	34 694	920 253	60 892	8 035 626

NOTE 4 Breakdown of Financial Assets and Liabilities by Countries

Unused loan commitments in the amount of EUR 561 981 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	20 059	0	0	0	0	0	20 059
Receivables from customers	1 291	0	0	0	0	0	1 291
Reinsurance contract assets	67	0	0	0	0	0	67
Other financial assets	173	0	0	100	0	0	273
Total financial assets	6 089 783	851	558 088	28 326	361 006	5 162	7 043 216
Deposits of customers	4 056 689	132 432	1 023 330	72 933	402 667	42 954	5 731 005

Total financial liabilities	4 281 084	132 432	1 587 058	72 933	402 667	42 954	6 519 128
liabilities	81 125	0	0	0	0	0	81 125
Accounts payable and other financial
Reinsurance contract liabilities	1 188	0	0	0	0	0	1 188
Insurance contract liabilities	13 586	0	0	0	0	0	13 586
Financial liabilities at fair value	1 843	0	0	0	0	0	1 843
Subordinated debt	126 653	0	0	0	0	0	126 653
issue	0	0	563 728	0	0	0	563 728
Loans received and debt securitioes in

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 Maturity Dates (undiscounted contractual cash flows)

	On	0-3	3-12	1-5	Over 5
31.12.2024	demand	months	months	years	years	Total
Liabilities by contractual maturity dates
Deposits from customers	4 432 899	1 022 778	1 476 702	8 211	419	6 941 009
Loans received and debt securities in issue	0	318	283 578	723 535	0	1 007 431
Subordinated debt	0	2 625	56 638	94 106	0	153 369
Lease libility	0	10 119	0	0	0	10 119
Accounts payable and other financial liabilities
(excluding lease liability)	0	44 674	0	0	0	44 674
Insurance contract liabilities	0	15 258	0	0	0	15 258
Reinsurance contract liabilities	0	1 499	0	0	0	1 499
Unused loan commitments	561 981	0	0	0	0	561 981
Financial liabilities at fair value	0	24	0	0	0	24
Financial guarantees by contractual amounts	55 525	0	0	0	0	55 525
Foreign exchange derivatives liabilities notional
(gross settled)	0	157 710	0	0	0	157 710
Foreign exchange derivatives assets notional
(gross settled)	0	-157 710	0	0	0	-157 710
Total liabilities	5 050 405	1 097 295	1 816 918	825 852	419	8 790 889
Financial assets by contractual maturity dates
Due from central bank, banks and investment
companies	3 817 305	0	1 000	0	0	3 818 305
Financial assets at fair value and at amortised
cost (debt securities)	0	6 465	164 985	86 597	41 227	299 274
Loans and advances to customers	0	251 006	732 376	3 218 878	2 036 792	6 239 052
Receivables from customers	0	4 736	0	0	0	4 736
Reinsurance contract assets	0	2 044	0	0	0	2 044
Insurance contract assets	0	89	0	0	0	89
Other financial assets	281	0	0	0	0	281
Total financial assets	3 817 586	264 340	898 361	3 305 475	2 078 019	10 363 781
Maturity gap from financial assets and liabilities	-1 232 819	-832 955	-918 557	2 479 623	2 077 600	1 572 892
	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 debt securities in issue	0	318	211 703	379 056	0	591 077
Subordinated debt	0	1 806	28 809	127 368	0	157 983
Rendikohustised	0	13 415	0	0	0	13 415

Accounts payable and other financial liabilities
(excluding lease liability)	0	67 710	0	0	0	67 710
Insurance contract liabilities	0	13 586	0	0	0	13 586
Reinsurance contract liabilities	0	1 188	0	0	0	1 188
Unused loan commitments	495 653	0	0	0	0	495 653
Financial liabilities at fair value	0	1 843	0	0	0	1 843
Financial guarantees by contractual amounts	55 061	0	0	0	0	55 061
Foreign exchange derivatives liabilities notional
(gross settled)	0	148 397	0	0	0	148 397
Foreign exchange derivatives assets notional
(gross settled)	0	-148 397	0	0	0	-148 397
	4 339 847	678 259	1 569 403	576 459	339	7 164 307
Total liabilities
Financial assets by contractual maturity dates
Due from central bank, 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	20 059	0	0	0	20 059
Reinsurance contract assets	0	1 291	0	0	0	1 291
Insurance contract assets	0	67	0	0	0	67
Other financial assets	273	0	0	0	0	273
Total financial assets	3 117 817	354 266	697 465	2 721 567	1 694 214	8 585 329

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. Fair value of the derivative contracts is presented in balance sheet and remaining of notional cashflows in off-balance.

NOTE 6 Open Foreign Currency Positions

31.12.2024	EUR	CHF	GBP	SEK	USD	Other	Total
Assets bearing currency risk
Due from banks and investment companies	3 365 275	2 744	435 820	1 593	6 041	6 832	3 818 305
Financial assets at fair value and at amortised cost	306 300	1	1	3 472	30	2	309 805
Loans and advances to customers	4 194 563	18	348 514	198	8 572	228	4 552 093
Receivables from customers	5 394	-181	-41	421	-490	-367	4 736
Reinsurance contract assets	2 044	0	0	0	0	0	2 044
Insurance contract assets	89	0	0	0	0	0	89
Other financial assets	100	0	181	0	0	0	281
Total assets bearing currency risk	7 873 765	2 582	784 475	5 683	14 153	6 695	8 687 353
Liabilities bearing currency risk
Deposits from customers	6 032 987	7 485	701 956	7 208	148 864	11 610	6 910 110
Loans received and bonds issued	927 685	0	0	0	0	0	927 686
Financial liabilities at fair value	24	0	0	0	0	0	24
Accounts payable and other financial liabilities	33 983	39	8 993	1 448	9 996	334	54 793
Insurance contract liabilities	15 258	0	0	0	0	0	15 258
Reinsurance contract liabilities	1 499	0	0	0	0	0	1 499
Subordinated debt	126 256	0	0	0	0	0	126 256
Total liabilities bearing currency risk	7 137 692	7 524	710 949	8 656	158 860	11 944	8 035 626
Open gross position derivative assets at contractual value	0	4 983	0	3 054	144 384	5 289	157 710

Open gross position derivative liabilities at contractual value	157 710	0	0	0	0	0	157 710
Open foreign currency position	578 363	41	73 526	81	-323	40	651 727

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	18 260	0	1 494	168	1 822	-1 685	20 059
Reinsurance contract assets	1 291	0	0	0	0	0	1 291
Insurance contract assets	67	0	0	0	0	0	67
Other financial assets	100	0	173	0	0	0	273
Total assets bearing currency risk	6 637 826	1 071	364 827	8 112	24 099	7 281	7 043 216
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	60 213	30	11 775	479	6 597	2 031	81 125
Insurance contract liabilities	13 586	0	0	0	0	0	13 586
Reinsurance contract liabilities	1 188	0	0	0	0	0	1 188
Subordinated debt	126 653	0	0	0	0	0	126 653
Total liabilities bearing currency risk	6 063 712	9 524	267 047	9 346	157 667	11 832	6 519 128
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	479 896	-94	43 601	100	-497	1 082	524 088

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:

	IFRS 9	Level	Level 2	Level 3	Total
	measurement	1
31.12.2024
Cash and balances with central bank	AC	0	3 775 554	0	3 775 554
Due from banks and investment companies	AC	0	41 751	0	41 751
Debt securities	FVTPL	16 550	0	0	16 550
Debt securities	AC	0	283 533	0	283 533
Loans and advances to customers	AC	0	0	4 552 093	4 552 093
Receivables from customers	AC	0	4 736	0	4 736
Derivatives	FVTPL	0	3 415	0	3 415
Reinsurance contract assets	AC	0	2 044	0	2 044
Insurance contract assets	AC	0	89	0	89
Other financial assets	AC	0	0	281	281
Total assets		16 550	4 111 122	4 552 374	8 680 046
Deposits from customers	AC	0	6 910 110	0	6 910 110
Loans received and debt securities in issue	AC	0	927 686	0	927 686
Subordinated debt	AC	0	126 256	0	126 256
Derivatives	FVTPL	0	24	0	24

Insurance contract liabilities	AC	0	0	15 258	15 258
Reinsurance contract liabilities	AC	0	0	1 499	1 499
Accounts payable and other liabilities	AC	0	0	76 818	76 818
Total liabilities		0	7 964 076	93 575	8 057 651
31.12.2023
Cash and balances with central bank	AC	0	3 068 078	0	3 068 078
Due from banks and investment companies	AC	0	51 316	0	51 316
Debt securities	FVTPL	11 927	0	0	11 927
Debt securities	AC	0	321 888	0	321 888
Loans and advances to customers	AC	0	0	3 561 791	3 561 791
Receivables from customers	AC	0	20 059	0	20 059
Derivatives	FVTPL	0	301	0	301
Reinsurance contract assets	AC	0	1 291	0	1 291
Insurance contract assets	AC	0	67	0	67
Other financial assets	AC	0	0	273	273
Total assets		11 927	3 442 941	3 562 064	7 036 991
Deposits from customers	AC	0	5 731 005	0	5 731 005
Loans received and debt securities in issue	AC	0	563 728	0	563 728
Subordinated debt	AC	0	126 653	0	126 653
Derivatives	FVTPL	0	1 843	0	1 843
Insurance contract liabilities	AC	0	13 586	0	13 586
Reinsurance contract liabilities	AC	0	1 118	0	1 118
Accounts payable and other liabilities	AC	0	0	98 664	98 664
Total liabilities		0	6 437 933	98 664	6 536 597

As of December 31, 2024, the liquidity portfolio in the amount of EUR 283 533 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 11 thousand. The estimated market value of the securites recorded in the amortised cost as of December 31, is EUR 283 963 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

As at 31.12.2024 the fair value of corporate loans and overdraft is EUR 125 312 thousand (4.67%) 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 December 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.

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.

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

31.12.2024	Stage 1	Stage 2	Stage 3	Provision	Total	%
Individuals	1 459 694	190 727	7 146	-7 235	1 650 332	36.3%
Agriculture	42 577	14 996	31	-185	57 419	1.3%
Mining and Quarrying	105	1 022	36	-28	1 135	0.0%
Manufacturing	131 634	49 937	18 336	-13 277	186 630	4.1%
Energy	215 497	2 391	0	-1 248	216 640	4.8%
Water and sewerage	27 882	314	0	-307	27 889	0.6%
Construction	100 869	4 191	47	-702	104 405	2.3%
Wholesale and retail trade	157 574	12 691	616	-1 418	169 463	3.7%
Transportation and storage	68 223	1 890	8	-625	69 496	1.5%
Accommodation and catering	58 599	1 157	150	-311	59 595	1.3%
Information and communication	22 808	3 773	102	-177	26 506	0.6%
Financial activities	154 091	1 525	0	-782	154 834	3.4%
Real estate activities	1 222 762	128 858	8 197	-8 986	1 350 831	29.7%
Professional, scientific and technical activities	137 097	9 309	331	-334	146 403	3.2%
Administrative and support service activities	96 100	18 651	73	-647	114 177	2.5%
Local municipalities	46 572	4 086	0	-98	50 560	1.1%
Education	5 156	3 356	0	-1 029	7 483	0.2%
Health care	68 976	819	0	-200	69 595	1.5%
Arts and entertainment	40 160	31 525	0	-2 182	69 503	1.5%
Other service activities	18 614	611	14	-42	19 197	0.4%
Total	4 074 990	481 829	35 087	-39 813
Provision	-11 384	-14 303	-14 126
Total loan portfolio	4 063 606	467 526	20 961		4 552 093	100%

31.12.2023	Stage 1	Stage 2	Stage 3	Provision	Total	%
Individuals	1 266 071	89 683	7 593	-6 572	1 266 071	38.1%
Agriculture	96 489	4 410	6	-341	96 489	2.8%
Mining and Quarrying	915	583	54	-81	915	0.0%
Manufacturing	137 540	28 214	12 816	-5 035	137 540	4.9%
Energy	176 400	170	12	-1 078	176 400	4.9%
Water and sewerage	17 619	25	0	-209	17 619	0.5%
Construction	84 648	15 426	33	-1 607	84 648	2.8%
Wholesale and retail trade	184 463	14 518	1 336	-1 903	184 463	5.6%
Transportation and storage	67 992	9 586	0	-695	67 992	2.2%
Accommodation and catering	22 591	2 862	406	-183	22 591	0.7%
Information and communication	15 434	551	45	-59	15 434	0.4%
Financial activities	103 638	174	0	-599	103 638	2.9%
Real estate activities	784 846	87 849	824	-7 356	784 846	24.3%
Professional, scientific and technical activities	81 198	3 307	376	-268	81 198	2.4%
Administrative and support service activities	100 311	2 746	17	-584	100 311	2.9%

Total loan portfolio	3 264 744	281 572	15 475		3 561 791	100%
Provision	-11 906	-9 766	-8 053
Total	3 276 650	291 338	23 528	-29 725
Other service activities	12 858	827	7	-78	12 858	0.4%
Arts and entertainment	37 591	21 657	0	-1 309	37 591	1.6%
Health care	22 701	504	0	-109	22 701	0.6%
Education	4 954	3 300	3	-1 384	4 954	0.2%
Local municipalities	58 391	4 946	0	-275	58 391	1.8%

NOTE 9 Net Interest Income

Interest income	Q4 2024	12M 2024	Q4 2023	12M 2023
From balances with credit institutions and investment	749	2 825	-69	4 964
companies From central bank	31 135	132 383	29 686	86 519
From debt securities	2 377	8 515	2 467	8 372
Leasing	4 217	14 221	3 278	11 365
Leverage loans and lending of securities	439	1 682	342	1 383
Consumer loans	3 019	12 099	3 137	12 126
Hire purchase	698	2 942	813	3 450
Corporate loans	48 914	184 567	41 113	138 725
Credit card loans	328	1 239	286	1 028
Mortgage loans	19 414	76 485	18 215	62 885
Private loans	922	3 847	1 007	3 735
Other loans	821	2 726	435	2 068
Total	113 033	443 531	100 712	336 620
Interest expense
Deposits of customers and loans received	-37 000	-134 039	-24 669	-59 869
Other interest expense	-41	-438	-558	-1 016
Subordinated liabilities	-9 436	-35 728	-7 815	-21 916
including loans between related parties	-38	-146	-89	-356
Total	-46 477	-170 205	-33 042	-82 801
Net interest income	66 556	273 326	67 670	253 819
Interest income on loans by customer location	19 893	68 492	13 270	47 388
(interest on bank balances and bonds excluded):	Q4 2024	12M 2024	Q4 2023	12M 2023
Estonia	72 723	284 607	66 940	233 419
Great Britain	6 049	15 201	1 686	3 346
Total	78 772	299 808	68 626	236 765

NOTE 10 Net Fee and Commission Income

Fee and commission income	Q4 2024	12M 2024	Q4 2023	12M 2023
Security brokerage and commissions paid	2 049	7 523	1 310	4 400
Asset management and similar fees	2 695	14 795	2 675	14 059
Currency exchange fees conversion revenues	2 374	8 586	1 756	5 868
Fees from cards and payments	9 530	37 924	9 613	33 385
Other fee and commission income	3 925	9 848	2 050	7 678
Total	20 573	78 675	17 404	65 390
Fee and commission expense

34/43

Security brokerage and commissions paid	-953	-3 291	-602	-2 440
Expenses related to cards	-240	-5 980	-250	-5 993
Expenses related to acquiring	-1 983	-7 588	-1 813	-6 936
Other fee and commission expense	-73	-1 514	-475	-1 212
Total	-3 249	-18 373	-3 140	-16 581
Net fee and commission income	17 324	60 302	14 264	48 809
Fee and commission income by customer location:	Q4 2024	12M 2024	Q4 2023	12M 2023
Estonia	17 907	68 678	13 335	50 185
Great Britain	2 666	9 997	4 069	15 205
Total	20 573	78 675	17 404	65 390

NOTE 11 Operating Expenses

				12M 2023
	Q4 2024	12M 2024	Q4 2023	corrected
Wages, salaries and bonuses	16 854	60 243	13 015	46 793
Social security and other taxes*	5 977	22 072	4 750	17 131
Total personnel expenses	22 831	82 315	17 765	63 924
IT expenses	4 270	14 041	3 907	13 767
Information services and bank services	506	1 908	326	1 587
Marketing expenses	2 084	4 797	1 065	3 626
Office expenses	750	2 514	381	2 600
Transportation and communication expenses	196	709	158	561
Staff training and business trip expenses	863	2 149	752	1 810
Other outsourced services	3 466	12 762	2 593	12 445
Other administrative expenses	3 534	14 645	1 304	14 389
Depreciation of non-current assets	1 745	8 966	7 078	12 505
Operational lease payments	16	440	413	1 162
Other operating expenses	525	1 674	445	985
Total other operating expenses	17 955	64 605	18 422	65 437
Total operating expenses	40 786	146 920	36 187	129 361

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

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

	31.12.2024	31.12.2023
Demand and term deposits with maturity less than 3
months*	35 813	36 957
Statutory reserve capital with the central bank	63 239	55 899
Due from investment companies*	5 938	12 509
Demand deposit from central bank*	3 712 315	3 012 179
Total	3 817 305	3 117 544
*Cash and cash equivalents in the Statement of Cash
Flows	3 754 066	3 061 645

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

NOTE 13 Deposits of Customers and Debt Securities in issue

Deposits by type	Individuals	Financial entities	Non-financial	entities Public sector	31.12.2024
Demand deposits	1 055 141	1 591 310	1 684 385	102 063	4 432 899
Term deposits	1 359 221	156 189	918 197	43 604	2 477 211
Total	2 414 362	1 747 499	2 602 582	145 667	6 910 110
Deposits by type	Individuals	Financial entities	Non-financial	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
Debt securities in issue	Covered bond		Preferred senior bond		31.12.2024
Debt securities	500 161		427 525		927 686
Total	500 161		427 525		927 686
Debt securities in issue	Covered bond		Preferred senior bond		31.12.2023
Debt securities	249 718		314 010		563 728
Total	249 718		314 010		563 728

In June 2020, LHV Pank made a successful debut issue of EUR 250 million in covered bonds to international investors. 31 institutional investors participated in the 5-year issue and the interest rate was 0.12%. The issue by LHV Pank was the first debut issue since the beginning of the COVID-19 crisis. The issue received an Aa1 rating from Moodys and was listed on the Dublin Stock Exchange. This issue was refinanced during 2024 second and third quareter in full amount.

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

In the spring of 2024, LHV Group issued MREL eligible bonds in the amount of 300 million euros, and in the fall, LHV Pank issued covered bonds in the amount of 250 million euros.

The nominal interest rate of customer deposits and received loans is equal to their internal interest rate, as no other significant fees have been applied.

NOTE 14 Accounts payable and other liabilities

Financial liabilities	31.12.2024	31.12.2023
Trade payables and payables to merchants	4 961	2 175
Other short-term financial liabilities	4 167	15 136
Lease liabilities	10 119	13 415
Payments in transit	28 022	48 632
Financial guarantee contracts issued	6 368	1 152
Liabilities from insurance services	1 156	615
Subtotal	54 793	81 125

.

Total	76 818	98 664
Subtotal	22 025	17 539
Other short-term liabilities	988	751
Payables to employees	6 178	4 408
Tax liabilities	12 916	10 630
Performance guarantee contracts issued Non-financial liabilities	1 943	1 750
Not financial liabilities

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
December 2024	110 674	55 525	1 071	561 981	729 251
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.

	Q4 2024	12M 2024	Q4 2023	12M 2023
Total profit attributable to owners of the parent (EUR
thousand)	35 753	148 968	32 537	139 602
Weighted average number of shares (in thousands of units)	324 189	323 100	319 833	318 731
Basic earnings per share (EUR)	0.11	0.46	0.10	0.44
Weighted average number of shares used for calculating the
diluted earnings per shares (in thousands of units)	329 672	328 583	325 517	324 415
Diluted earnings per share (EUR)	0.11	0.45	0.10	0.43

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 31.12.2024 was 684 411 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	31.12.2024	31.12.2023
Paid-in share capital	32 419	31 983
Share premium	146 958	143 372
Reserves	4 713	4 713
Other reserves	2 440	-996
Accumulated loss	320 757	229 287
Intangible assets (subtracted)	-21 834	-21 278
Profit for the reporting period (COREP)	79 384	129 740
Other adjustments	-4	-8
Dividends to be distributed	0	-41 578
Deferred tax assets that rely on future profitability and do not arise from temporary differences
net of associated tax liabilities	0	0
CET1 capital elements or deductions	-648	-382
CET1 instruments of financial sector entities where the institution has a significant investment	-971	-3 496
CET1 instruments of financial sector entities where the institution has not a significant
investment	-4 313	0
Total Core Tier 1 capital	558 901	471 357
Additional Tier 1 capital	35 314	55 000
Total Tier 1 capital	564 215	526 357
Subordinated liabilities	90 196	70 000
Total Tier 2 capital	90 196	70 000
Total net own funds	684 411	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	Q4 2024	12M 2024	Q4 2023	12M 2023
Interest income	1 468	3 639	98	1 338
incl. management	20	43	30	126
incl. shareholders that have significant influence	1 448	3 596	68	1 212
Fee and commission income	36	171	14	82

Incl. management	3	6	4	26
incl. shareholders that have significant influence	33	165	10	56
Interest expenses from deposits	183	345	28	109
incl. management	10	40	20	32
incl. shareholders that have significant influence	173	305	8	77
Interest expenses from subordinated loans	37	146	89	356
incl. management	2	5	3	9
incl. shareholders that have significant influence	35	141	86	347

Balances	31.12.2024	31.12.2023
Loans and receivables as at the year-end	52 500	28 579
incl. management	770	4 717
incl. shareholders that have significant influence	51 730	23 862
Deposits as at the year-end	28 558	9 351
incl. management	917	2 448
incl. shareholders that have significant influence	37 641	6 903
Subordinated loans as at the year-end	1 904	4 462
incl. management	96	172
incl. shareholders that have significant influence	1 808	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 Q4, salaries and other compensations paid to the management of the parent AS LHV Group and its subsidiaries totalled EUR 935 thousand (Q4 2023: EUR 715 thousand), including all taxes. As at 31.12.2024, remuneration for December and accrued holiday pay in the amount of EUR 234 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 31.12.2024 and 31.12.2023 (pension liabilities, termination benefits, etc.). In Q4 2024, the remuneration paid to the members of the Group's Supervisory Board totalled EUR 42 thousand (Q4 2023: EUR 32 thousand).

Management is related to the share-based compensation plan. In Q4 2024 the share-based compensation to management amounted to EUR 560 thousand (Q4 2023: EUR 580 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
Recalculation of the accumulated
amortisation	86	14	100	537	0	537
Write-off of on-current assets	-56	116	60	-736	0	-736
Capitalised selling costs	0	0	0	0	875	875
Balance as at 31.12.2023
Cost	19 181	21 047	40 228	19 060	18 470	37 530
Accumulated depreciation and amortisation	-7 931	-10 188	-18 119	-12 234	-11 453	-23 687
Carrying amount 31.12.2023	11 250	10 859	22 109	6 826	7 017	13 843
Purchase of non-current assets	1 209	1 621	2 830	3 268	0	3 268
Depreciation/amortisation charge	-3 396	-1 371	-4 767	-3 843	-1 332	-5 175
Exchange rate differences	-177	-1 789	-1 966	953	0	953
Capitalised selling costs	0	0	0	0	1 154	1 154
Balance as at 31.12.2024
Cost	20 213	20 879	41 092	23 281	19 624	42 905
Accumulated depreciation and amortisation	-11 327	-11 559	-22 886	-16 077	-12 785	-28 862
Carrying amount 31.12.2024	8 886	9 320	18 206	7 204	6 839	14 043

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	2020	15 000	9.5%	Perpetual
Additional subordinated Tier 2 liabilites	2022	20 000	10.5%	Perpetual
Subordinated debt as at 31.12.2024		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 31.12
Corporate loans	-21 068	-17 763	7 827	-31 004
Consumer loans	-4 310	-3 238	2 637	-4 911
Investment financing	-11	-1	7	-5
Leasing	-2 107	-939	1 457	-1 589
Private loans	-2 229	-1 324	1 249	-2 304
Total 2024	-29 725	-23 265	13 177	-39 813

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

Shareholders of AS LHV Group

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

As at 31 December 2024, AS LHV Group has 38 660 shareholders:

• 141 406 459 aktsiat (43.62%) were held by members of the Supervisory Board and Management Board, and related parties.
• 182 782 474 aktsiat (56.38%) were held by Estonian entrepreneurs and investors, and related parties.

Top ten shareholders as at 31 December 2024:

Number of	Participation	Name of shareholder
shares 37 162 070	11.5%	AS Lõhmus Holdings
35 210 370	10.9%	Viisemann Investments AG
25 449 470	7.9%	Rain Lõhmus
12 446 070	3.8%	Krenno OÜ
11 310 000	3.5%	AS Genteel
10 828 210	3.3%	Ambient Sound Investments OÜ
7 188 990	2.2%	SIA Krugmans
6 691 020	2.1%	Bonaares OÜ
6 037 590	1.9%	OÜ Merona Systems
5 437 640	1.7%	AS Amalfi

Shares held by members of the Management Board and Supervisory Board

Madis Toomsalu holds 1 568 980 shares.

Kadri Haldre holds 51 540 shares.

Meelis Paakspuu holds 816 140 shares.

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

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

Andres Viisemann holds 564 760 shares and Viisemann Investment AG holds 35 210 370 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 5 437 640 shares.

Raivo Hein does not hold shares. OÜ Kakssada Kakskümmend Volti holds 5 026 370 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, Kadri Haldre, Meelis Paakspuu, Jüri Heero

AS LHV Varahaldus

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

AS LHV Pank

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

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

Directors: Madis Toomsalu, Erki Kilu, Paul Hancock, Keith Butcher, Sally Veitch, Gill Lungley, Rachelle Frewer, Andres Kitter (until 31 December 2024)

AS LHV Paytech

Supervisory board: Kadri Kiisel, Madis Toomsalu, Erki Kilu, Andres Kitter (until 31 December 2024) 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 December 2024 period the condensed consolidated interim financial statements of AS LHV Group for the 12-months period ended 31 December 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.

11.02.2025

Madis Toomsalu

Kadri Haldre

Meelis Paakspuu

Jüri Heero