July was characterised by strong growth in business volumes. The LHV Group's consolidated loan portfolio increased by EUR 33 million month-on-month, reaching EUR 5.03 billion. Deposit volume increased by EUR 260 million, reaching EUR 7.62 billion. The volume of the funds managed by LHV increased by EUR 33 million, reaching EUR 1.60 billion. Payments related to financial intermediaries amounted to 6.8 million in July.
In July, AS LHV Group earned EUR 10.5 million in consolidated net profit. Among subsidiaries, AS LHV Pank earned EUR 10.4 million, LHV Bank Ltd 0.4 million, AS LHV Kindlustus EUR 0.3 million and AS LHV Varahaldus EUR 0.3 million of net profit. The return on equity attributable to the shareholders was 17.0% in July.
The number of customers of LHV Pank increased by 2,800 in July, reaching 476,000. Loan volumes increased by EUR 16 million and the loan portfolio amounted to EUR 4.45 billion. The retail loan portfolio increased by EUR 28 million, while the corporate loan portfolio decreased by EUR 12 million. The quality of the loan portfolio remains strong. Deposits increased by EUR 227 million, reaching EUR 6.79 billion. Interest on deposits is falling slower than interest on loans, which is why interest income is lagging behind the plan. The leading international business and finance magazine Euromoney named LHV Pank the best bank in Estonia, awarding it the prize for its strong economic results, rapid customer base growth and active new sales.
LHV Bank, which operates in the United Kingdom, continued to grow its business volumes in July. Loan volumes increased by EUR 16 million and the loan portfolio reached EUR 586 million as at the end of July. Deposits increased by EUR 32 million month-on-month and total deposits reached EUR 1.05 billion. Deposits continue to be mainly raised through deposit platforms. At the same time, the retail banking offer continues to evolve, with the latest development being the launch of the Apple Pay solution.
LHV Kindlustus signed new insurance contracts worth EUR 3.5 million in July. As at the end of July, there are approximately 284,000 insurance contracts in force. Loss events were compensated for in the amount of EUR 2.2 million and 10,000 new claims were registered. Insurance profitability remains at a good level.
The funds of LHV Varahaldus showed a good rate of return in July. Larger funds L and XL increased by 0.9% and 1.0%, respectively, over the month. Since the beginning of the year, the rate of return of both are the best in the II pillar market this year at 5.7% and 8.4%, respectively. LHV Pensionifond Indeks increased by 4.5%, and LHV Pensionifond Roheline by 2.4%. Due to the good performance of the funds, the net profit of LHV Varahaldus is outperforming the financial plan, with the size of the funds and the number of customers lagging slightly behind the plan.
The financial plan of LHV Group continues to stand firm. In terms of net income, the result of the current year exceeds the financial plan by EUR 2.4 million and in terms of net profit also by EUR 2.4 million. As at the end of July, the loan portfolio exceeds the financial plan by EUR 62 million and the volume of deposits by EUR 430 million.
To access the reports of AS LHV Group, please visit the website at https://investor.lhv.ee/aruanded.
LHV Group is the largest domestic financial group and capital provider in Estonia. The LHV Group's key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1,100 people. As at the end of July, the services of LHV Pank are being used by 476,000 customers, the pension funds managed by LHV have 109,000 active customers, and LHV Kindlustus protects a total of 177,000 customers. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the United Kingdom and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.
Investor Relations
Sten Hans Jakobsoo
Head of Investor Relations and Corporate Development
E-mail: stenhans.jakobsoo@lhv.ee
Media and Communications
Paul Pihlak
Head of Communications
E-mail: paul.pihlak@lhv.ee
