In October, AS LHV Group earned EUR 6.1 million in consolidated net profit. AS LHV Pank earned EUR 6.4 million in net profit, EUR 1.6 million of which was from serving clients associated with the United Kingdom branch. AS LHV Varahaldus earned EUR 0.4 million in net profit, and the net loss of AS LHV Kindlustus was EUR 26 thousand.
The Group’s consolidated volume of deposits grew by EUR 374 million in October, with the volume of the loan portfolio growing by EUR 41 million and the volume of funds managed by LHV growing by EUR 37 million. In October, the number of payments processed in relation to clients who are financial intermediaries reached 2.5 million payments.
The bank’s results of the month were affected by higher fee and commission income and client activity, especially the activity of using investment services. The number of bank clients increased by over 8,400, with the number of clients who use settlements growing by 4,200. The number of clients with an investment contract increased by more than 10,000 in October. This was affected by an active time at stock markets and the listing of Enefit Green shares.
From the EUR 41 million growth of the loan portfolio, EUR 23 million originated from corporate loans and EUR 18 million from retail loans. The quality of the loan portfolio remains good. Majority of the bank’s EUR 399 million deposit growth was comprised of deposits of financial intermediaries, which increased by EUR 374 million. The profitability of the bank was increased by higher than expected fee and commission income and lower discounts.
Regarding the United Kingdom business, the emphasis in October was on recruiting key people and preparations for applying for a credit institution licence.
The net profit of Varahaldus surpassed the financial plan and was related to the increase in value of own units of pension funds in October. Due to the disbursements of the II pension pillar, the depreciation of client agreements was somewhat quicker than expected. The volumes of the II pillar increased by EUR 34 million within the month; the number of active clients remained at around 139 thousand.
In terms of insurance (AS LHV Kindlustus), the increase in business volumes and clients continued, and the development of new products and insurance coverage also went ahead. The number of insurance clients exceeded 140 thousand. Satisfaction with claims handling remains at a high level.
In the consolidated view of the Group, the net profit of the company is ahead of the financial plan by EUR 2.9 million. In October, the listing of the recently issued shares on the stock exchange was completed, and the number of shareholders of the Group has increased to about 18,600 investors.
AS LHV Group reports are available at: https://investor.lhv.ee/aruanded.
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. LHV employs over 630 people. As at the end of October, LHV’s banking services are used by 310,000 clients, the pension funds managed by LHV have 139,000 active clients, and LHV Kindlustus protects a total of 140,000 clients. LHV’s UK branch offers banking infrastructure to 180 international financial services companies, via which LHV’s payment services reach clients around the world.
LHV Communications Manager
Phone: +372 502 0786