From GlobeNewswire: 2025-04-23 07:35:00

The auditors proposed to improve the financials by reflecting decided but unpaid dividends as a liability, affecting indicators of liabilities, equity, and return on equity. LHV saw rapid business growth in Q1 but also a decrease in profit due to falling interest rates and increased discounts.

In Q1 2025, AS LHV Group earned a net profit of €29.2 million, with AS LHV Bank at €25.2 million, LHV Bank Ltd at €2.1 million, LHV Asset Management at €103 thousand, and LHV Insurance at €665 thousand. The Group’s return on equity was 17.0% in Q1.

LHV’s consolidated revenues in Q1 2025 totaled €79.4 million, down 6% from the previous quarter and 5% from a year ago. Net interest income was €62.0 million, and net fee income was €14.1 million. Operating costs were €37.5 million, down 8% from the previous quarter, but up 10% from Q1 2024. Net profit was 20% lower than the previous quarter and 28% lower year-on-year.

As of the end of March, LHV Group’s consolidated assets were €8.51 billion, up 15% annually. The loan portfolio grew by 4% to €4.73 billion, while deposits decreased by 4% to €6.60 billion. The fund volume managed by LHV increased slightly to €1.56 billion. The number of client payments in Q1 reached a record 20.1 million, up 1% from Q4 2024.

LHV’s profitability was impacted by lower interest rates and higher temporary provisions at the beginning of 2025. However, slightly better-than-expected revenues supported by business growth and client activity helped offset lower profits at LHV Bank.

In Q1, LHV Bank’s loan portfolio increased by €35 million, with a focus on active mortgage lending. The quality of the loan portfolio remained strong overall, with model-based provisions improving. Two non-performing clients led to higher provisions, affecting profitability.

LHV Bank’s loan portfolio in the UK reached €490 million, with approved but unissued loans totaling €167 million. To support loan growth, the bank increased its share capital by €12 million in March. Deposits also rose by €115 million.

LHV Asset Management’s active funds outperformed competitors in Q1, with pension funds achieving quarterly returns of 3.0% to 4.5%. The company’s business revenues and net profit exceeded financial plans, driven by investment returns but reduced by dividend tax payments.

LHV Insurance continued its growth trend in Q1 despite a market-wide decrease in insurance premiums. The number of policies and clients increased, with an uptick in average-sized claims. Active policy growth is proportional to the increased number of claims.

LHV Group remains well capitalized, meeting all capital targets. Dividends of 9 cents per share were paid to shareholders on April 10. The company slightly missed its Q1 net profit target but maintains financial plans.

LHV Group CEO Madis Toomsalu highlighted global trade uncertainties and the need for a supportive business environment. LHV aims to increase active clients, enhance business initiatives, and expand retail offerings in the UK.

AS LHV Group reports are available online. The company will host a webinar on April 22 at 9:00 AM to present financial results. Registration is required for the Zoom webinar.

LHV Group, Estonia’s largest financial group, includes LHV Bank, LHV Asset Management, LHV Insurance, and LHV Bank Limited in the UK. The Group employs over 1,160 people and serves 465,000 bank clients, 113,000 pension clients, and 174,000 insurance clients.



Read more at GlobeNewswire:: LHV Groupi 2025. aasta I kvartali