LHV Group — Investor Presentation 2024

Oct 1, 2024

LHV Group

Financial plan assumptions

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Rapid growth of credit portfolio with higher interest income

		Updated		Previous
Financial results, EURt	2023	FP2024	A YoY	FP2024	△ upd. FP
Total net income, incl.	310.458	349.397	+38,939	309.089	+40,308
Net interest income	253,819	279,333	+25,514	238,649	+40,684
Net fee and commission income	54.146	66,642	+12,496	68,598	-1,956
Total operating expenses	134.321	150,903	+16,582	143,568	+7,335
Earnings before impairment	176,137	198.495	+22,358	165,522	+32,973
Impairment losses	11,539	23.676	+12.137	23,390	+286
Earnings before taxes	164,598	174,818	+10,220	142,131	+32,687
Income tax expense	23.660	24.515	+855	22.051	+2,464
Net profit, incl.	140,938	150,304	+9,366	120,081	+30,223
attr. to shareholders	139,602	149.372	+9.770	119.176	+30,196
		Updated		Previous
Business volumes, EURm	2023	FP2024	A YoY	FP2024	△ upd. FP
Deposits from customers	5,731	6.667	+936	6.674	- /
Loans (net)	3.562	4.343	+781	4.037	+305
Assets under management	1,519	1,573	+54	1,668	-95
Fin.intermediaries' payments, mil. pcs	49	69	+19	62	+7
		Updated		Previous
Key figures	2023	FP2024	A YoY	FP2024	△ upd. FP
Cost / Income ratio (C/I)	43.3%	43.2%	- 0.1 pp	46.4%	- 3.3 pp
Pre-tax ROE*	34.1%	28.8%	- 5.3 pp	24.0%	+ 4.8 pp
ROE*	29.2%	24.8%	- 4.4 pp	20.3%	+ 4.5 pp
T1 capital adequacy	20.7%	17.7%	- 3.0 pp	19.4%	- 1.6 pp
Total capital adequacy	23.5%	20.5%	- 3.0 pp	22.5%	- 2.0 pp

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3

Business volumes and income growth

		Updated		Previous
Financial results, EURt	2023	FP2024	A YoY	FP2024	△ upd. FP
Total net income, incl.	260,077	280.432	+20,356	246,104	+34,329
Net interest income	228.470	242,950	+14.480	204,386	+38,564
Net fee and commission income	27,217	34,757	+7,539	40.615	-5,859
Total operating expenses	85,235	94.722	+9,487	90.895	+3,827
Earnings before impairment	174,841	185,710	+10,869	155,209	+30,501
Impairment losses	11,372	23,056	+11,684	23,056	-0
Earnings before taxes	163,469	162,654	-815	132,153	+30,502
Income tax expense	22,107	23,507	+1,400	19,139	+4,368
Net profit	141,363	139,147	-2,215	113,013	+26,134
		Updated		Previous
Business volumes, EURm	2023	FP2024	A YoY	FP2024	△ upd. FP
Deposits from customers	5,535	6.152	+617	6,094	+58
Loans (net)	3,549	4,044	+496	3,738	+306
		Updated		Previous
Key figures	2023	FP2024	A YoY	FP2024	△ upd. FP
Cost / Income ratio (C/I)	32.8%	33.8%	+ 1.0 pp	36.9%	- 3.2 pp
Pre-tax ROF*	35.8%	30.1%	5.8 pp	24.7%	+ 5.3 pp
ROE*	30.9%	25.7%	- 5.2 pp	21.2%	+ 4.5 pp
T1 capital adequacy	19.8%	17.4%	- 2.3 pp	20.5%	- 3.1 pp
Total capital adequacy	22.2%	19.5%	2.7 pp	21.4%	- 1.9 pp

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Loan volumes and launch of retail banking as planned

		Updated		Previous
Financial results, EURt	2023	FP2024	A YoY	FP2024	△ upd. FP
Total net income, incl.	36,755	45,602	48,847	49,402	-3,800
Net interest income	28,917	34,954	+6,037	43,302	-8,348
Net fee and commission income	7,807	10,600	+2,793	6.100	+4,500
Total operating expenses	31,300	37,651	+6,351	34,038	+3,613
Earnings before impairment	5.455	7,951	+2,496	15,364	-7,413
Impairment losses	176	621	+445	334	+286
Earnings before taxes	5,279	7,330	+2,051	15,030	-7,700
Income tax expense	0	-163	-163	1,435	-1,598
Net profit	5,279	7.493	+2,215	13,595	-6,101
		Updated		Previous
Business volumes, EURm	2023	FP2024	A YoY	FP2024	△ upd. FP
Deposits from customers	239	588	+349	693	-106

มันที่มีอิโรง ปีที่ 6 นิวเมที่ 1915	LUJ	JUU	1 ประจุฬา	USJ
Loans (net)	79	299	+219	299
Fin.intermediaries' payments, mII. pcs	49	69	+19	62

		Updated		Previous
Key figures		2023	A YoY		FP2024
Cost / Income ratio (C/I)	85.2%	82.6%	- 2.6 pp	68.9%	+ 13.7 pp
Pre-tax ROE*	12.8% -	9.5%	- 3.3 pp	19.9%	- 10.4 pp
ROE*	12.8%	9.7%	- 3.1 pp	18.0%	- 8.3 pp
Total capital adequacy	28.3% -	25.6% -	- 2.7 pp	25.9%	- 0.3 pp

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Focus on increasing second pillar contributions at year-end

		Updated		Previous
Financial results, EURt	2023	FP2024	A YoY	FP2024	△ upd. FP
Total net income	9,137	9,584	+447	9,790	-206
Total operating expenses	6,997	7,321	+324	7,312	+9
Earnings before taxes	2,140	2,263	+123	2,478	-215
Income tax expense	488	801	+312	801	-0
Net profit	1,652	1,462	-189	1,677	-215
		Updated		Previous
Business volumes	2023	FP2024	A YoY	FP2024	△ upd. FP
Assets under management, EURm	1,519	1,573	+54	1,668	-95
Active customers of PII funds, thous.	123	120	-3	120	+0
				Previous
		Updated
Key figures	2023	FP2024	A YoY	FP2024	△ upd. FP
Cost / Income ratio (C/I)	76.6%	76.4%	0.2 pp	74.7%	1.7 pp +
Pre-tax ROE*	9.8%	11.5%	+ 1.7 pp	12.6%	1.1 pp
ROE*	7.5%	7.4%	0.1 pp	8.5%	1.1 pp

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Expanding revenue base according to plan

		Updated		Previous
Financial results, EURt	2023	FP2024	A YoY	FP2024	△ upd. FP
Total net income	5,070	6,650	+1,580	6,825	-175
Total expenses	4,766	5,613	+848	5,793	-180
Earnings before taxes	305	1,036	+732	1,031	+5
Income tax expense	0	0	+0	0	+0
Net profit	305	1,036	+732	1,031	+5
		Updated		Previous
Business volumes	2023	FP2024	A YoY	FP2024	‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍‍
Contract premiums written, EURm	31	37	+5	36	+0
		Updated		Previous
Key figures	2023	FP2024	A YoY	FP2024	△ upd. FP
Cost / Income ratio (C/I)	94.0%	84 6%	- 9.4 pp	84.9%	0.3 pp
Net loss ratio	66.8%	66.3%	- 0.5 pp	65.2%	1.1 pp +
Net expense ratio	32.2%	31.2%	- 1.0 pp	31.8%	0.7 pp -
Pre-tax ROE*	6.4%	17.6%	+ 11.2 pp	18.2%	0.6 pp
ROE*	6.4%	17.6%	+ 11.2 pp	18.2%	0.6 pp

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Madis Toomsalu madis.toomsalu@lhv.ee

Meelis Paakspuu meelis.paakspuu@lhv.ee