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LHV Group results in May 2022
In May, the consolidated net profit of LHV Group amounted to EUR 4.7 million. AS LHV Pank earned EUR 5.6 million in net profit, EUR 0.7 million of which was from serving clients associated with the UK branch. AS LHV Varahaldus generated a net profit of EUR 29,000 and, for the first time, AS LHV Kindlustus also generated a positive financial result of EUR 6,000. The net loss of LHV UK Limited reached EUR 0.6 million in May.
By the end of May, the activity of LHV clients had reached its normal level. The results were also affected by the good quality of the loan portfolio, and the lower-than-planned loan provisions resulting from that.
LHV Group’s consolidated loan portfolio grew by EUR 42 million in May, with corporate loans increasing by EUR 5 million and retail loans by EUR 37 million. In May, the volume of consolidated deposits increased by EUR 76 million, mainly on account of deposits of retail clients. The volume of funds managed by LHV decreased by EUR 75 million over the month. In May, 2.3 million payments from financial intermediary clients were processed.
LHV Pank’s business volumes increased and client activity improved: the number of bank clients increased by 4,700, and new home loans, consumer loans, and loans to apartment associations were granted in a record amount. Interest income remained on the regular level in May, while fee and commission income increased. LHV Finance improved the consumer loan conditions for its clients, and started offering a green hire-purchase for solar panels, with an interest of 4.9%.
The business revenues of Varahaldus corresponded to plan in May. Results were affected by a negative month on stock markets. The larger actively managed LHV pension funds underwent a slight decline: M, L and XL declined by 0.7%, 1.4% and 1.1%, respectively. Over the month, pension fund Roheline increased by 1.1%; Indeks lost 3.2% in value. In the last couple of months, it was positive to see a significant decrease in the number of people leaving the II pension pillar, with more people joining than leaving in April and May.
The quick increase in business volumes of LHV Kindlustus continues and in May, the company reached a positive financial result for the first time. The volume of losses has decreased, the premiums earned are starting to surpass the financial plan. Client satisfaction with claims handling has remained at a high level of 96%. The company continues to hire new people.
LHV’s financial plan remains unchanged.
From 18 May to 1 June, LHV Group raised additional capital through an secondary share offer. The offering to investors was a successful one; a total of 11,694 investors subscribed to LHV shares in the amount of EUR 43.6 million. LHV raised EUR 35 million, which will be used to finance the new bank being established in the United Kingdom and to increase the company’s capital buffers.
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, and LHV Kindlustus. The Group employs more than 770 people. As of May, LHV’s banking services are being used by 347,000 clients, the pension funds managed by LHV have 130,000 active clients, and LHV Kindlustus protects a total of 148,000 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
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