LHV Group (LHV1T) Investor presentation summary

Financial performance highlights

• August was the strongest month of the year, with net profit exceeding EUR 10m and reaching EUR 10.7m, up EUR 2.1m month-over-month.

• Year-to-date net profit stands at EUR 63.8m, EUR 4.6m below the financial plan, mainly due to lower fee income and higher costs.

• Net interest income increased to EUR 23.3m, supported by loan growth and a stable margin; net interest margin improved to 2.8%.

• Operating expenses rose slightly to EUR 14.1m, reflecting seasonal factors, and remain above plan year-to-date.

• Credit quality remained strong, with a net impairment release of EUR 0.2m and year-to-date impairments EUR 2.6m below plan.

Business segment performance

• LHV Pank delivered a net profit of EUR 10.2m, with stable fee income and improved cost/income ratio at 41.4%.

• LHV Bank reported a net profit of EUR 0.3m, down month-over-month, with loan portfolio exceeding EUR 1bn and deposits up EUR 106m.

• LHV Varahaldus achieved a net profit of EUR 0.3m, slightly ahead of plan, driven by strong fund returns and AUM growth of EUR 54m.

• LHV Kindlustus returned to profit with EUR 0.3m, as claims normalized and net loss ratio improved to 66.5%.

Business volumes and customer metrics

• Loan portfolio grew by EUR 58m to EUR 5.9bn, with balanced growth in Estonia and the UK.

• Deposits remained stable at EUR 7.7bn, with regular customer inflows offsetting decreases in banking services deposits.

• Assets under management increased by EUR 54m to EUR 1.85bn, slightly ahead of plan.

• Customer base expanded, with LHV Pank reaching 514,000 customers and LHV Kindlustus at 244,000.