LHV Group — Management Reports 2026

Feb 12, 2026

LHV Group financial plan for 2026 and the five-year financial forecast

LHV Group financial plan for 2026 and the five-year financial forecast

In 2026, LHV Group will focus on continued growth in business volumes and
customer activity, alongside improved operational efficiency. Total income is
expected to increase by approximately 9%, supported by growth in net interest
income and strong growth in net fee and commission income. Expenses are
projected to grow more slowly than income, allowing operating profitability to
improve marginally, while loan loss provisions are expected to normalise
following the exceptionally low level in 2025. As a result, net profit is
forecasted to remain broadly at the level of the previous year.

The loan portfolio is expected to grow by over 11% and deposits by more than
5%, reflecting LHV's strong position among both retail and corporate customers.
Although net interest income is growing this year, its impact is more moderate,
meaning net profit in 2026 will remain close to last year's level. At the same
time, improved efficiency and expanding business volumes provide a strong
foundation for accelerating profitability and return on equity in the coming
years.

Key indicators 2025 FP 2026 ?

Net interest income (EURm) 235.1 252.9 8%

Net fee and commission income (EURm) 63.3 77.8 23%

Total income (EURm) 304.8 333.6 9%

Profit before tax (EURm) 144.0 147.1 2%

Net profit (EURm) 117.0 117.9 1%

Deposits (EURm) 8,134 8,577 5%

Loans (EURm) 5,465 6,082 11%

Assets under management (EURm) 1,702 1,898 12%

Number of payments related to financial intermediaries
(million pcs) 86 93 8%

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Cost/income ratio 52.3% 51.3% -0.9 pp

ROE* (before tax; owners' share) 19.9% 18.7% -1.2 pp

ROE* (from net profit; owners' share) 16.1% 15.0% -1.2 pp

Capital adequacy 22.8% 20.9% -2.0 pp

*Calculated on the basis of the average end-of-month equity volumes

LHV Pank

LHV Pank's financial outlook is centred on quality-focused and return-oriented
growth. The loan portfolio is expected to increase by approximately 4%, driven
primarily by home loans and growth in SME and corporate lending. The structure
of deposits will become more stable and profitable, with demand deposits from
regular customers increasing by nearly 16%, offsetting a deliberate reduction in
deposits from financial intermediaries and platforms. Overall deposit volumes
are expected to remain broadly in line with the previous year.

Total income is forecasted to grow by more than 10%, supported by moderate
growth in net interest income and strong growth of nearly 30% in net fee and
commission income, reflecting higher customer activity and growth in the
customer base across payments, FX, investment and card services. Expenses are
expected to grow more slowly than income, allowing the cost-to-income ratio to
improve from 42.7% to 41.8%, while credit risk costs remain at a low level.

LHV Bank

LHV Bank's financial forecast for 2026 indicates accelerated growth, with
business volumes and income expanding faster than costs. Deposits are expected
to grow by approximately 37%, reflecting strong retail growth and continued
demand for term deposits. The loan portfolio is expected to increase by more
than 50%, moving purposefully towards the EUR 1 billion level.

Total income is projected to grow by nearly 20%, supported by strong growth in
net interest income and rapid growth in net fee and commission income, mainly
due to lower service fee expenses following the termination of the payment
collection service. Expenses are expected to grow more slowly than income, and
the cost-to-income ratio is projected to improve from 83% to 77%, reflecting
enhanced operational efficiency. As a result, profit before tax is expected to
increase by approximately 68% and net profit by nearly 80%, making 2026 a clear
breakthrough year in LHV Bank's profitability trajectory and creating a strong
basis for further improvement in return on equity in the coming years.

LHV Varahaldus

In 2026, LHV Varahaldus forecasts clear growth in profitability and volumes,
driven by fund returns and growth in the number of customers. Assets under
management are expected to increase by approximately 12%, supported by
competitive returns and a more effective sales and cross-selling model.

Total income is expected to grow by over 22%. Expenses will grow in a controlled
manner, without an increase in the number of FTEs, allowing the cost-to-income
ratio to improve from 61.1% to 58.4%. As a result, profit before tax is expected
to grow by nearly 30% and net profit by over 20%.

LHV Kindlustus

Gross written premiums of LHV Kindlustus are expected to grow by 12% in 2026,
reaching EUR 48 million. Growth is primarily driven by cross-selling within LHV
Group and digital mobile and web channels. Claims frequency is expected to
remain stable or slightly below the level of 2025, keeping the loss ratio under
control.

Operating expenses in 2026 are planned to increase by approximately 12%, in line
with portfolio and premium growth. The majority of the increase relates to
intra-group services and cost allocations.

Financial forecast for 2026-2030

LHV Group's financial forecast for 2026-2030 is based on a moderately improving
macroeconomic environment in both Estonia and the United Kingdom. Economic
growth is expected to stabilise and inflation to normalise at around 2-2.5%. In
Estonia, economic growth is assumed to accelerate from 2026, supported by
gradual labour market improvement, while in the United Kingdom growth is
expected to remain modest but stable, supporting consistent lending and deposit
activity. Competition in banking is expected to remain strong, particularly in
loans and deposits, underlining the importance of efficiency and disciplined
pricing.

Within this framework, LHV Group forecasts total income to increase from nearly
EUR 305 million in 2025 to over EUR 593 million by 2030, supported by growth in
both net interest income and net fee and commission income. Key business volumes
are expected to nearly double: net loans are projected to grow from
approximately EUR 5.5 billion to over EUR 10 billion, deposits from EUR 8.1
billion to nearly EUR 12.8 billion and assets under management from EUR 1.7
billion to over EUR 3 billion. Expense growth is expected to remain clearly
below income growth, allowing the cost-to-income ratio to improve from above
50% to approximately 36% by the end of the period.

Net profit is projected to double over the period to EUR 290 million, while
return on equity is expected to increase from approximately 16% to above 23% by
2030.

Key indicators FP2026 FP2027 FP2028 FP2029 FP2030

Net interest income (EURm) 252.9 315.1 362.9 409.4 464.4

Net fee and commission income (EURm) 77.8 90.8 97.0 107.1 117.7

Total income (EURm) 333.6 410.0 466.2 525.1 593.4

Profit before tax (EURm) 147.1 217.5 257.2 303.3 358.7

Net profit (EURm) 117.9 176.1 207.6 245.1 290.2

Deposits (EURm) 8,577 9,562 10,512 11,607 12,814

Loans (EURm) 6,082 7,083 8,067 9,152 10,147

Assets under management (EURm) 1,898 2,164 2,447 2,748 3,067

Number of payments related to financial
intermediaries (million pcs) 93 108 119 131 144

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Cost/income ratio 51.3% 43.1% 40.9% 38.2% 35.8%

ROE* (before tax; owners' share) 18.7% 24.7% 26.0% 27.4% 28.9%

ROE* (from net profit; owners' share) 15.0% 20.0% 21.0% 22.1% 23.4%

Capital adequacy 20.9% 20.5% 20.9% 20.8% 20.5%

*Calculated on the basis of the average end-of-month equity volumes

Comment by Mihkel Torim, Chairman of the Management Board of LHV Group:

"In Estonia, LHV Pank's focus in 2026 is on high-quality and measured growth. In
the United Kingdom, the expected growth of more than 50% in the loan portfolio
and nearly 80% in net profit is already supported by scale effects. LHV
Varahaldus continues on a strong profitability trajectory, with net profit
expected to grow by over 20%. Growth at LHV Kindlustus is primarily driven by
improved service to our existing customer base through cross-selling.

Our long-term financial forecast rests on three pillars. First, we will continue
to grow business volumes in both of our home markets. Second, our plan assumes a
moderate increase in base interest rates from 2027 onwards. Third, and most
importantly, we are continuously improving operational efficiency. The main
driver of this is the rapid development of our technological capabilities, which
requires deliberate and well-considered transformation rather than passive
expectation."

The reports of AS LHV Group are available at:
https://investor.lhv.ee/en/reports/

To introduce the financial results and the financial plan, LHV Group will
organise a webinar via Microsoft Teams on 12 February at 13:00 (EET). The
presentation will be held in English. Please register here
(https://events.teams.microsoft.com/event/e7eac8fd-b0da-
4419-8ba1-7eff3b05bbab@d7b2bdd1-6077-4f89-8708-6956b8db8f1a).

LHV Group is the largest domestic financial group and capital provider in
Estonia. LHV Group's key subsidiaries are LHV Pank, LHV Varahaldus, LHV
Kindlustus, and LHV Bank Limited. The Group employs approximately 1,200 people.
As at the end of December, the services of LHV Pank are being used by 492,000
customers, the II pillar pension funds managed by LHV have 106,000 active
customers, and LHV Kindlustus protects a total of 231,000 customers. LHV Bank
Limited, a subsidiary of the Group, holds a banking licence in the United
Kingdom and provides banking services to international financial technology
companies, as well as loans to small and medium-sized enterprises.

Investor relations
Sten Hans Jakobsoo
Head of Investor Relations and Corporate Development
Email: [email protected] (mailto:[email protected])

Media and communications
Paul Pihlak
Head of Communications
Email: [email protected]
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