LHV Group (LHV1T) Q2 2026 earnings summary

Executive summary

• Q2 2026 net profit was EUR 24.7 million, up 25% quarter-over-quarter but 20% below Q2 2025's elevated base; net income reached EUR 79 million, a 7% increase year-over-year.

• Net interest income rose 5% quarter-over-quarter and 8% year-over-year, with positive trends in loan and asset management growth.

• All business segments were profitable in Q2, with notable improvements in Estonia and the U.K.; ROE at 13.1%, below target but improving.

• Group is on track to meet 2026 financial plan targets, with loans ahead of plan and deposits slightly behind but controlled.

• Operating expenses decreased quarter-over-quarter but rose year-over-year, mainly due to personnel and one-off costs.

Financial highlights

• Net profit reached EUR 24.7m in Q2 2026, up 25% from Q1 but down 20% from Q2 2025; net income EUR 79.0m (+7% YoY).

• Loan portfolio grew 15% year-over-year to EUR 5.77bn; deposits up 3% YoY to EUR 7.56bn.

• Net interest margin at 2.6% in Q2, up from 2.4% in Q1; cost/income ratio at 55.2% (+0.4pp YoY).

• Loan impairment charges of EUR 5.6m–5.8m recognized, mainly from one corporate client and higher model provisions.

• Assets under management increased to EUR 1.79bn; insurance business returned to profit in Q2.

Outlook and guidance

• Expectation of continued positive trends in net interest income and loan growth in coming quarters; margin pressure easing.

• Anticipate higher loan volumes in Q3, especially in the U.K.; asset management and insurance expected to remain on plan.

• Group expects to fulfill all 2026 financial plan targets based on current trajectory; financial results YTD are broadly in line with the plan.

• Management remains optimistic due to strong interest income and higher-than-expected market rates.

• Estonian economic growth forecast at 2.2% for 2026, with inflation at 3.3%.