LHV Group results for July 2024
LHV’s loan portfolios and other business volumes continued to grow in July. AS LHV Group’s consolidated loan portfolio increased by EUR 103 million over the month. Consolidated deposits showed an increase of EUR 185 million. The volume of funds managed by LHV increased by EUR 25 million in July. A total of 6.4 million payments associated with financial intermediaries were made over the month.
The consolidated net profit of AS LHV Group was EUR 12.1 million in July. Among subsidiaries, AS LHV Pank generated a net profit of EUR 12.1 million over the month, AS LHV Varahaldus EUR 88 thousand, and AS LHV Kindlustus EUR 126 thousand. LHV Bank Ltd generated a net loss of EUR 192 thousand in July.
The number of the LHV Pank’s clients increased by 3,600 in July. LHV Pank's results were affected by faster-than-planned loan portfolio growth, leading to higher interest income. Of the EUR 81 million increase in the loan portfolio, EUR 43 million originated from corporate loans and EUR 38 million from retail loans. The month was marked by excellent home loan sales. As a result of credit quality remaining at a good level, discounts have remained lower than expected. Among deposits, both the deposits of LHV Pank’s regular clients (+ EUR 89 million) and the deposits of financial intermediaries (+EUR 69 million) increased.
The loan portfolio of LHV Bank operating in the United Kingdom increased by EUR 23 million in July, and the total of loans approved but not yet granted increased to EUR 147 million. Platform deposits raised from a total of 6,800 depositors increased by EUR 39 million over the month. The volume of deposits of financial intermediaries, which decreased significantly in June, reduced interest income in July. LHV Bank’s profits were affected by higher than planned operating expenses, originating from the active development of the retail banking offer.
In the context of volatile markets, larger funds managed by LHV Varahaldus showed positive returns in July. At the same time, the increase of the reference index has reached the most modest level in recent years (annual increase of 5.0% in July). The revenues and profitability of the asset management company were broadly in line with the financial plan, costs were increased by a one-off staff expense. The number of active pension clients decreased slightly in July, to 118,000 clients.
LHV Kindlustus showed great sales results in July, concluding 14,200 new insurance contracts with a total volume of EUR 3.4 million. Loss events were compensated for in the amount of EUR 1.8 million. The profitability of the insurance company is outperforming the financial plan; the net loss ratio is stable, while the expenditure ratio is exhibiting a downward trend.
The net profit of the LHV consolidation group is outperforming the financial plan by EUR 17.7 million. The financial plan stands.
AS LHV Group’s reports are available at: .
LHV Group is the largest domestic financial group and capital provider in Estonia. The LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1,100 people. As at the end of July, LHV’s banking services are being used by 437,000 clients, the pension funds managed by LHV have 118,000 active clients, and LHV Kindlustus protects a total of 167,000 clients. 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.
Priit Rum
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