LHV Group results for July 2024
August 13 2024 - 1:00AM
UK Regulatory
LHV Group results for July 2024
LHV’s loan portfolios and other business volumes continued to
grow in July. AS LHV Group’s consolidated loan portfolio increased
by EUR 103 million over the month. Consolidated deposits showed an
increase of EUR 185 million. The volume of funds managed by LHV
increased by EUR 25 million in July. A total of 6.4 million
payments associated with financial intermediaries were made over
the month.
The consolidated net profit of AS LHV Group was EUR 12.1 million
in July. Among subsidiaries, AS LHV Pank generated a net profit of
EUR 12.1 million over the month, AS LHV Varahaldus EUR 88 thousand,
and AS LHV Kindlustus EUR 126 thousand. LHV Bank Ltd generated a
net loss of EUR 192 thousand in July.
The number of the LHV Pank’s clients increased by 3,600 in
July. LHV Pank's results were affected by faster-than-planned
loan portfolio growth, leading to higher interest income. Of the
EUR 81 million increase in the loan portfolio, EUR 43 million
originated from corporate loans and EUR 38 million from retail
loans. The month was marked by excellent home loan sales. As a
result of credit quality remaining at a good level, discounts have
remained lower than expected. Among deposits, both the deposits of
LHV Pank’s regular clients (+ EUR 89 million) and the deposits of
financial intermediaries (+EUR 69 million) increased.
The loan portfolio of LHV Bank operating in the United Kingdom
increased by EUR 23 million in July, and the total of loans
approved but not yet granted increased to EUR 147 million. Platform
deposits raised from a total of 6,800 depositors increased by EUR
39 million over the month. The volume of deposits of financial
intermediaries, which decreased significantly in June, reduced
interest income in July. LHV Bank’s profits were affected by higher
than planned operating expenses, originating from the active
development of the retail banking offer.
In the context of volatile markets, larger funds managed by LHV
Varahaldus showed positive returns in July. At the same time, the
increase of the reference index has reached the most modest level
in recent years (annual increase of 5.0% in July). The revenues and
profitability of the asset management company were broadly in line
with the financial plan, costs were increased by a one-off staff
expense. The number of active pension clients decreased slightly in
July, to 118,000 clients.
LHV Kindlustus showed great sales results in July, concluding
14,200 new insurance contracts with a total volume of EUR 3.4
million. Loss events were compensated for in the amount of EUR 1.8
million. The profitability of the insurance company is
outperforming the financial plan; the net loss ratio is stable,
while the expenditure ratio is exhibiting a downward trend.
The net profit of the LHV consolidation group is outperforming
the financial plan by EUR 17.7 million. The financial plan
stands.
AS LHV Group’s reports are available at:
https://investor.lhv.ee/en/reports.
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, LHV’s
banking services are being used by 437,000 clients, the pension
funds managed by LHV have 118,000 active clients, and LHV
Kindlustus protects a total of 167,000 clients. 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.
Priit Rum
Communications Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee