LHV Group results in July 2022

·3-min read
AS LHV Group
AS LHV Group

AS LHV Group generated a consolidated net profit of EUR 5.3 million in July this year. AS LHV Pank generated a net profit of EUR 6.6 million in July, of which EUR 0.7 million was from servicing clients related to the United Kingdom branch. The net profit of AS LHV Varahaldus was EUR 0.3 million. AS LHV Kindlustus had a net loss of EUR 38,000 in July and LHV UK Limited had a net loss of EUR 0.9 million in July.

July’s financial results were driven by decent growth in the bank’s interest income, but also by the good quality of the loan portfolio, which has kept write-downs lower than planned.

LHV Group’s consolidated loan portfolio increased by EUR 40 million in July, with corporate loans up by EUR 15 million and retail loans up by EUR 25 million. Consolidated deposits decreased by EUR 54 million, with deposits from payment intermediaries falling by EUR 109 million as deposits from regular clients increased by EUR 55 million over the month. The volume of funds managed by LHV increased by EUR 45 million over the month. In July, 2 million payments from financial intermediary clients were processed.

The number of bank clients increased by 3,800 in July, while client activity remained modest, typical for mid-summer. The bank’s interest income is at a good level and fee and commission income is improving. In terms of net profit, the bank’s results are approaching the financial plan. In July, the international magazine Euromoney once again named LHV Pank the best bank in Estonia.

For LHV Varahaldus, July was positive. It was a positive month for all major pension funds, with M, L, and XL pension funds having a rate of return of 1.1%, 2.2%, and 3.1%, respectively. The number of applications to leave the II pillar remained lower than in the previous season, with fewer clients leaving than new clients joining. Although revenues were in line with the plan in July, LHV Varahaldus still falls short of the financial plan in terms of profit.

The business volumes of LHV Kindlustus continue to grow and the company delivered a very good sales performance in July. A total of 12.4 thousand insurance contracts were signed, with a volume of EUR 1.8 million. Premiums are ahead of the financial plan and satisfaction with the quality of claims handling remains high. The company’s efficiency is improving. At the same time, the number of travel losses remains higher than usual.

All in all, the shortfall of EUR 3.2 million from the financial plan decreased compared to the previous month. The plan remains. At the beginning of July, the LHV Group’s share split process was successfully completed, with the aim of improving investor access and share liquidity. The number of LHV shareholders has exceeded 28,000.

To access the reports of AS LHV Group, please visit the website at https://investor.lhv.ee/en/reports/.

LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, and LHV Kindlustus. The Group employs more than 820 people. As of July, LHV’s banking services are being used by 354,000 clients, the pension funds managed by LHV have 132,000 active clients, and LHV Kindlustus protects a total of 149,000 clients. LHV’s UK branch offers banking infrastructure to 200 international financial services companies, via which LHV’s payment services reach clients around the world.

Priit Rum
LHV Communication Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee