LHV Group results for August 2023
August for LHV was characterised by LHV Pank’s active and profitable operations, and as an in-house event, the transfer of financial intermediaries' business to LHV Bank, together with the implementation of new systems.
The consolidated deposits of AS LHV Group increased by EUR 152 million in August. Fixed-term deposits increased by EUR 121 million, while demand deposits increased by EUR 31 million. The consolidated loan portfolio of the Group increased by EUR 43 million in August. Retail loans increased by EUR 14 million, while corporate loans increased by EUR 29 million. The volume of funds managed by LHV increased by EUR 4 million over the month. 4.5 million payments from financial intermediary clients were processed in the course of the month.
In August, the consolidated net profit of AS LHV Group was EUR 12.2 million. AS LHV Pank also earned EUR 12.2 million in net profit in August, while AS LHV Varahaldus generated EUR 88 thousand in net profit, AS LHV Kindlustus EUR 34 thousand, and LHV Bank Limited EUR 74 thousand. The Group’s return on equity was 28.7%.
On 22 August, the business of the UK branch of LHV Pank was successfully transferred to LHV Bank. This involved moving the servicing of pound payments for UK clients from the existing branch to the new bank. LHV Bank also took over the interfaces to the pound payment systems and the contracts related to the servicing of pound payments. Also, a part of the deposits of clients is now reflected in the balance of LHV Bank.
The number of clients of LHV Pank decreased in August by 1,000, as there was a one-off closure of inactive accounts which had not been used in two years and which clients had no interest in keeping open. At the same time, 3,800 new clients joined the bank, and the number of clients using settlements increased by 1,100. August was a good month for the bank in terms of newly concluded loans; the quality of the loan portfolio remains strong.
Together with the transfer of business, LHV Bank in the United Kingdom adopted a new core system for the bank. At the end of the month, they started raising deposits via the Raisin UK platform and also adopted a new loan system. LHV Bank increased its loan portfolio by EUR 8 million in August.
In August, the volume of funds managed by LHV Varahaldus surpassed the EUR 1.5 billion threshold. The revenues, operating expenses and net profit of the company largely corresponded to the plan; the company’s performance is affected by the volatility of markets.
In August, LHV Kindlustus concluded a total of 13,900 insurance contracts, with a volume of EUR 2.3 million. 5,300 insurance cases were registered, and losses were compensated for in the amount of EUR 1.4 million. The premiums earned continue to increase steadily.
In relation to surpassing the financial plan published in February, LHV published its updated Financial Plan for 2023 on 7 September. Both revenues and expenses were in accordance with the updated financial plan by the end of August, while profit was slightly ahead of the plan.
To access the reports of AS LHV Group, please visit the website at .
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 over 990 people. As at the end of August, LHV’s banking services are used by 403,000 clients, the pension funds managed by LHV have 127,000 active clients, and LHV Kindlustus protects a total of 160,000 clients. LHV Bank, a subsidiary of the Group, holds a banking licence in the UK and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.
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