Lhv Group As · OMXTSE:LHV1T
Lhv Group As — Q1 2025 Earnings Presentation
22 slides from Lhv Group As's earnings presentation, Apr 22, 2025
Slide 1: LHV Group Q1 results
LHV Group Q1 results 22 April 2025
Slide 2: Strong business volume growth combined with improving efficiency
Strong business volume growth combined with improving efficiency Home loans exceeded 1.5 EURb LHV Euro Bond Fund was launched +177 EURm -24 EURm +0.2 mln Over 30,000 business account users LOANS DEPOSITS banking services’ excl. banking services PAYMENTS External sales of pension funds were discontin
Slide 3: Rapid growth in business volumes
LHV Group Rapid growth in business volumes • Number of customers increased, customer activity at good level • Loan portfolio increased by 177 EURm, growth remains strong. Portfolio quality remains good. For specific impairments related to individual customers, the goal is to reverse part of these du
Slide 4: LHV Group – comparison with financial plan
LHV Group – comparison with financial plan Delay in recognising impairments caused shortfall • Revenues slightly above plan, expenses in line with plan • Loan, payment and fund volumes ahead of plan; however, deposits fell slightly short, mainly due to elevated base in Q4 • Quality of loan portfolio
Slide 5: LHV Pank: Business growth remains in line with plan
LHV Pank Business growth remains in line with plan EURm Loans (net) • Number of bank customers +19% 4,400 4,239 increased by 9,700. Customer 3,549 activity in payments and card usage 3,300 is good 2,200 • Loans increased by 35 EURm 1,100 • Deposits decreased by 309 EURm, 0 Q1-23 Q2-23 Q3-23 Q4-23 Q1
Slide 6: LHV Pank: High customer activity
LHV Pank High customer activity • Income base remains well diversified. Interest income is still the dominant source • Customer activity remains high • Defining two customers as non- performing resulted temporarily in higher impairments, with the objective to partially reduce these within the curren
Slide 7: LHV Pank – comparison with financial plan
LHV Pank – comparison with financial plan Financial plan holds • Declining interest rates reduced interest income, partially offset by positive revaluation of bond portfolio • Expenses in line with plan • Loans according to plan. Deposit volumes declined, primarily due to financial intermediaries, w
Slide 8: LHV Bank: Record growth in loan portfolio
LHV Bank Record growth in loan portfolio Loans (net) EURm • Loan portfolio increased by 142 490 500 EURm. Loans approved by Credit +415% Committee but not yet disbursed 375 amount to 167 EURm, indicating 250 potential for continued rapid growth in second quarter 125 95 • Deposits increased by 115 EU
Slide 9: LHV Bank: First customers in retail banking app
LHV Bank First customers in retail banking app • First few hundred customers onboarded via mobile banking app • Significant improvements were made to account opening process, including launch of fixed-term deposits and card payments testing for early users • Preparations began for a broader communic
Slide 10: LHV Bank – comparison with financial plan
LHV Bank – comparison with financial plan Business volumes and profitability significantly exceeded financial plan • Net profit for quarter amounted to 2.1 EURm, with ROE reaching 9.2% • Profitability significantly outperformed financial plan, driven by additional interest income from bond portfolio
Slide 11: LHV Varahaldus: Increased uncertainty in equity markets
LHV Varahaldus Increased uncertainty in equity markets customers (th.) EURm Assets under management and number of customers • Assets under management reached +1% 1,800 1,540 1,559 240 nearly 1.6 EURb by end of quarter 1,350 205 • European markets delivered relatively 900 170 strong performance, whil
Slide 12: LHV Varahaldus: Quarterly net profit 0.1 EURm, dividend payment 2 EURm
LHV Varahaldus Quarterly net profit 0.1 EURm, dividend payment 2 EURm • Operating income and expenses remained broadly in line with previous quarter. Profit was positively impacted by financial income from performance of the funds and gains on own fund units • Net profit was impacted by 2 EURm divid
Slide 13: LHV Varahaldus – comparison with financial plan
LHV Varahaldus – comparison with financial plan Net profit exceeded financial plan • Revenue, expenses and net profit exceeded financial plan • Fund volume and customer numbers were in line with expectations • Launch of new LHV Euro Bond Fund • March marked the conclusion of almost 17 years of exter
Slide 14: LHV Kindlustus: Portfolio continues to grow at moderate pace
LHV Kindlustus Portfolio continues to grow at moderate pace Contract premiums written EURm • Q1 sales fell short of financial plan, 16 +19% primarily due to market-wide decline 12.9 10.8 in insurance premiums 12 • Compared to same period last year, 8 quarterly sales increased by 2.1 4 EURm, with str
Slide 15: LHV Kindlustus: Low cost levels supported profitability
LHV Kindlustus Low cost levels supported profitability • Net earned premiums continued to grow, while operating expenses decreased. Gross incurred losses were in line with plan, although number of travel insurance claims increased significantly • Number of active policies and customers showed a stro
Slide 16: LHV Kindlustus – comparison with financial plan
LHV Kindlustus – comparison with financial plan Month with solid profitability • Insurance contracts signed in March amounted to 2.85 EURm • Claims paid totalled 2.3 EURm, with 12,200 new claims registered • As of the end of March, number of active insurance contracts stood at 266 EURt • Solvency ra
Slide 17: LHV Group months
LHV Group 3 months ↑4% ↑1% +177 EURm +0.2 mln ↑2% LOANS ↓0.5% banking services’ ↑0.1% PAYMENTS +9,700 -24 EURm +0.7 EURm BANK CUSTOMERS DEPOSITS FUNDS excl. banking services 29 EURm 20.6% NET PROFIT PRE-TAX ROE 17
Slide 18: Risks and capitalisation
Risks and capitalisation
Slide 19: LHV Group Capitalisation
LHV Group Capitalisation Capital ratios and minimum requirements as of March 2025 • LHV Group well-capitalised and all 40% capital targets have been met with 33.10% solid buffer 30% • Strongest buffer in own funds is at 20.85% CET1 level 20% 18.19% 17.15% • Q1 net profit 21 EURm is not yet 12.98% in
Slide 20: LHV Group Liquidity and funding
LHV Group Liquidity and funding EURm Structure of liabilities 7,801 • Liquidity remains strong, with a 8,000 6,772 loans-to-deposits ratio of 72% 6,000 • Liquidity coverage ratio (LCR) 186% 4,000 2,000 • Net Stable Funding Ratio (NSFR) remains very high - at 142%, 0 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4
Slide 21: LHV Group Loan portfolio quality
LHV Group Loan portfolio quality Loan portfolio by stages (gross) EURm 4,775 • Loan portfolio is well diversified 5,000 2.8% across sectors 2.5% 3,750 2.1% • Overall portfolio quality remains 2,500 1.4% strong, although the cost of risk and 1,250 0.7% the share of Stage 3 loans increased. Both were
Slide 22: Madis Toomsalu, LHV Group CEO
Madis Toomsalu LHV Group CEO madis.toomsalu@lhv.ee Meelis Paakspuu LHV Group CFO meelis.paakspuu@lhv.ee AS LHV GROUP TARTU MNT 2, TALLINN 6 800 400 GROUP@LHV.EE LHV.EE