From GlobeNewswire: 2025-04-22 01:00:00

LHV Group reported a net profit of 29.2 million euros for the first quarter of 2025. LHV Bank earned 25.2 million euros, LHV Bank Ltd earned 2.1 million euros, LHV Asset Management earned 103 thousand euros, and LHV Insurance earned 665 thousand euros. The Group’s consolidated profit was 20% lower than the previous quarter and 28% lower than the same period last year.

Consolidated revenues for LHV in the first quarter of 2025 were 79.4 million euros, a 6% decrease from the previous quarter and a 5% decrease from a year ago. Net interest income was 62.0 million euros and net service fee income was 14.1 million euros. Total Group expenses were 37.5 million euros, 8% lower than the previous quarter but 10% higher than the first quarter of 2024. The Group’s net profit in the first quarter was 20% lower than the previous quarter and 28% lower than the same period a year earlier.

LHV Group’s consolidated assets amounted to 8.51 billion euros at the end of March 2025, with a 15% annual growth. The consolidated loan portfolio increased by 177 million euros to 4.73 billion euros, a 30% increase from the previous year. Deposits decreased by 306 million euros to 6.60 billion euros, a 4% decrease from the previous quarter but an 11% increase from the previous year. The total number of client payments in the first quarter reached a record 20.1 million, a 1% increase from the fourth quarter of the previous year.

LHV Bank’s profitability in the first quarter of 2025 was affected by a decrease in interest rates and higher provisions for individual clients. Despite this, revenues were slightly better than planned, supported by growth in business volumes and strong client activity. LHV Bank’s modest profit was compensated by higher profitability at LHV Bank.

LHV Bank saw an increase of 9,700 clients in the quarter, with active use of payment cards and bank accounts. The number of business account users exceeded 30,000 during the quarter. While deposits decreased by 309 million euros due to reductions in financial intermediaries and platform deposits, deposit growth remains a focus for the bank. LHV Bank was recognized as the bank with the best service in Estonia by the research firm Dive.

LHV Bank’s loan portfolio increased by 35 million euros in the first quarter, with active mortgage lending leading to a 81 million euro increase in the mortgage portfolio. The overall quality of the loan portfolio remained strong, with improvements in model-based provisions. However, the reclassification of two clients as non-working resulted in significantly higher provisions which impacted profit compared to financial plans.

LHV Bank’s loan portfolio in the UK reached a record 490 million euros in the first quarter, with approved but unissued loans totaling 167 million euros, signaling continued growth. To support the rapid growth of the loan portfolio, the bank increased its share capital by 12 million euros in March.

LHV Bank’s deposits increased by 115 million euros, with several hundred clients joining the mobile banking app. Efforts were focused on integrating and activating new financial intermediary clients to drive payment volume growth in the second half of the year.

LHV Asset Management’s actively managed pension funds outperformed competitors, with quarterly returns of 3.0%, 3.8%, and 4.5% for the M, L, and XL funds, respectively. Conservative XS and S funds saw returns of 1.5% and 2.1%, while the Index Fund decreased by 4.1% and the Green Fund lost 5.2% in value.

LHV Asset Management exceeded business revenue and net profit targets due to financial income from fund returns. However, profits were reduced by tax payments on dividends in March. The company launched the LHV Euro Bond Fund in January and ended in-store sales of pension funds after 17 years, seeking new sales promotion opportunities.

LHV Insurance continued its growth trend in the first quarter, with an increase in sales of 2.1 million euros compared to the previous year. Net earned premiums continued to rise, with no major claims but an increase in medium-sized claims, particularly in travel insurance. The number of active insurance contracts and clients increased.

LHV Group remains well capitalized with all capital targets sufficiently met. Dividends of 9 cents per share were paid out to shareholders for the previous year, with the financial plan slightly below the target for the first quarter. A virtual investor meeting will be held on April 22nd to present financial results.

LHV Group, the largest domestic financial conglomerate in Estonia, includes LHV Bank, LHV Asset Management, LHV Insurance, and LHV Bank Limited. The group has over 1,160 employees, and as of March, 465,000 clients use LHV banking services, 113,000 active clients use pension funds, and 174,000 clients are protected by LHV Insurance. LHV Bank holds a UK banking license and offers services to international fintech companies and SMEs.



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