LHV Group results in April 2024
May 14 2024 - 1:00AM
LHV Group results in April 2024
On the backdrop of a strong increase in business volumes, April
for LHV was characterised by high profitability, with results still
being driven by the growing loan portfolio and the interest income
earned. It was a strong month for all companies of the Group.
In April, AS LHV Group’s consolidated deposits grew by EUR 236
million, and the consolidated loan portfolio by EUR 94 million. The
volume of the funds managed by LHV grew by EUR 23 million in April.
A total of 6 million payments related to financial intermediaries
were made in the month.
In April, AS LHV Group earned EUR 15.8 million in consolidated
net profit. AS LHV Pank generated EUR 13 million in net profit, AS
LHV Bank Ltd EUR 1.3 million, AS LHV Varahaldus EUR 259 thousand,
and AS LHV Kindlustus EUR 64 thousand. In April, the return on
equity attributable to the shareholders of LHV Group was 33.3%.
The number of clients of LHV Pank increased by 3,550 over the
month, with the issuance of new bank loans reaching a record level.
At that, retail loans increased by EUR 26 million, while corporate
loans increased by EUR 56 million. As the credit quality persisted
to be on a good level, discounts remained lower than planned. Of
the EUR 135 million increase in the bank’s deposits, the deposits
of regular clients accounted for EUR 110 million and the deposits
of financial intermediaries for EUR 111 million, while the volume
of deposits raised from platforms decreased by EUR 43 million, and
the deposits of the Group’s companies also decreased.
LHV Bank Ltd, which operates in the United Kingdom, also
continued to actively raise deposits: the deposits of financial
intermediaries increased by EUR 17 million, while an additional EUR
39 million in deposits were raised from platforms. The interest
rates on deposits remained below the central bank’s interest rates.
In April, the loan portfolio of LHV Bank increased by EUR 13
million, while the pre-approved loan projects reached the extent of
EUR 85 million. The focus of LHV Bank remains on growing the loan
portfolio and developing the offering of retail banking
services.
Despite falling stock markets, April still provided good rates
of return for the actively managed funds of LHV Varahaldus. The
rates of return of the funds also had a positive effect on the
profit of LHV Varahaldus; the revenues and expenses remained on the
planned level. In April, the number of active clients of the II
pillar increased by 300, while as at the end of April, 5,000
clients had declared their wish to increase their II pillar
contributions.
A positive increase trend continued for LHV Kindlustus. In
April, they concluded 13,600 new insurance contracts, and the
number of valid policies increased to 237,000. Over the month, they
registered 9,500 new loss events, which were indemnified in the
total amount of EUR 1.6 million. The net loss ratio continues on a
downward trend.
In April, Moody’s Ratings confirmed the new ratings of AS LHV
Pank and AS LHV Group, raising the rating of LHV Pank’s long-term
bank deposits from the current level of Baa1 to A3 (positive
outlook), and the rating outlook of LHV Group from the earlier
stable to positive, confirming the strong financial position and
capitalisation of LHV and expressing expectations of the continued
strengthening of creditworthiness.
As at the end of April, the net profit of the consolidation
group was ahead of the published financial plan by EUR 14.1
million. The financial plan stands.
AS LHV Group reports are available 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, LHV Kindlustus, and LHV Bank Limited. The Group employs
over 1,100 people. As at the end of April, LHV’s banking services
are being used by 432,000 clients, the pension funds managed by LHV
have 120,000 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 UK and provides banking services to
international financial technology companies, as well as loans to
small and medium-sized enterprises.
Priit RumCommunications ManagerPhone: +372 502 0786Email:
priit.rum@lhv.ee