LHV Group (LHV1T) Q4 2023 earnings summary

Executive summary

• FY 2023 net profit was €140.9m, with €139.6m attributable to owners, versus €61.4m and €59.8m in 2022, respectively.

• Q4 net profit was €32.8m, up 35% YoY and down 17% QoQ; Q4 net income reached €85.7m, up 49% YoY.

Financial highlights

• FY net interest income rose 97% YoY to €253.8m; net fee and commission income grew 21% to €54.1m.

• FY total net operating income increased 78% to €308.7m; operating expenses rose 50% to €134.3m.

• FY loan and bond portfolio losses were €11.5m, up 43% YoY; Q4 write-downs were €9.4m versus €2.9m in Q3.

• Basic EPS was €0.44 for FY 2023 versus €0.19 in 2022; Q4 EPS was €0.10 versus €0.08 YoY.

Outlook and guidance

• Eesti Pank forecast a 0.4% contraction in Estonia in 2024; eurozone growth was forecast at 0.9%, while global growth was forecast at 2.7%–2.9%.

• Asset management plans continued investment in unlisted assets, while a campaign will promote higher second-pillar contributions that become available from 2025.