Lhv Group As · OMXTSE:LHV1T
Lhv Group As — Q2 2025 Earnings Presentation
22 slides from Lhv Group As's earnings presentation, Jul 22, 2025
Slide 1: LHV Group Q2 results
LHV Group Q2 results 22 July 2025
Slide 2: Strong business volume growth combined with improving efficiency
Strong business volume growth combined with improving efficiency LHV Group’s loan portfolio reached 5 EURb, including UK portfolio exceeding 500 EURm +269 EURm +642 EURm -0.1 mln New innovative banking service, LHV Premium, was launched in Estonia LOANS DEPOSITS banking services’ excl. banking servi
Slide 3: Record business volumes
LHV Group Record business volumes • Number of customers increased, customer activity at good level • Loan portfolio increased by 269 EURm, growth remains strong. Portfolio quality remains good with an improvement during the quarter coupled with improving macroeconomic conditions, this enabled reduct
Slide 4: LHV Group – comparison with financial plan
LHV Group – comparison with financial plan Exceeding financial plan • Both revenues and expenses slightly above plan, balancing each other • Loan, payment and deposit volumes ahead of plan, while fund volumes remained slightly below • Quality of loan portfolio remains strong, improving macroeconomic
Slide 5: LHV Pank: Strong deposit growth
LHV Pank Strong deposit growth EURm Loans (net) • Number of bank customers +18% 4,600 4,429 increased by 8,300. Customer 3,744 activity in payments and card usage 3,450 is good 2,300 • Loans increased by 190 EURm 1,150 • Deposits increased by 576 EURm, of 0 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24
Slide 6: LHV Pank: Profitability is driven by interest rates
LHV Pank Profitability is driven by interest rates • Income base remains well diversified. Interest income dynamics on the liabilities being key driver • Customer activity remains high • Resolution of major problematic credit case, together with improving economic conditions, contributed to reductio
Slide 7: LHV Pank – comparison with financial plan
LHV Pank – comparison with financial plan Volumes and profitability as planned • Declining interest rates reduced interest income, as asset-side yields are decreasing faster than liabilities-side costs. Share of term deposits remains above plan • Expenses in line with plan • Loans according to plan.
Slide 8: LHV Bank: Deposit and loan volumes significantly ahead of plan
LHV Bank Deposit and loan volumes significantly ahead of plan Loans (net) EURm • Loan portfolio increased by 79 600 569 EURm. Loans approved by Credit +288% Committee but not yet disbursed 450 amount to 204 EURm. In corporate 300 loans, the goal is to continue with 147 rapid growth 150 • Deposits in
Slide 9: LHV Bank: Retail mobile bank launched to the public
LHV Bank Retail mobile bank launched to the public • Retail mobile bank was launched to the market together with larger marketing campaign. First 1,000 customers have opened accounts and deposited 17 EURm • In retail banking, the goal is to add additional everyday banking services (Apple Pay, direct
Slide 10: LHV Bank – comparison with financial plan
LHV Bank – comparison with financial plan Business volumes and profitability exceeded financial plan • Net profit for quarter amounted to 0.1 EURm. Net profit was lower due to higher-than-planned marketing expenses, participation in conferences, allocated costs, and changes in the value of interest
Slide 11: LHV Kindlustus: Stable sales and low claims ratio during the quarter
LHV Kindlustus Stable sales and low claims ratio during the quarter Contract premiums written EURm • Q2 sales fell short of financial plan. 12 +20% 10.2 Across the market, insurance 8.5 premium volumes declined 9 significantly compared to the same 6 quarter last year 3 • Quarterly sales increased by
Slide 12: LHV Kindlustus: Quarterly loss ratio at record low
LHV Kindlustus Quarterly loss ratio at record low • Net earned premiums continued to grow, while operating expenses remained at the same level compared to the previous quarter. Strongest quarter in terms of net profit • Number of active policies and customers continued to grow steadily • Net loss ra
Slide 13: LHV Kindlustus – comparison with financial plan
LHV Kindlustus – comparison with financial plan Solid monthly profitability • Insurance contracts signed in June amounted to 3.4 EURm • Claims paid totalled 1.9 EURm, with 10,300 new claims registered • As of the end of June, number of active insurance contracts stood at 278,000. Portfolio grew by 1
Slide 14: LHV Varahaldus: Stronger equity performance, with the US dollar weakening further
LHV Varahaldus Stronger equity performance, with the US dollar weakening further Assets under management and number of customers customers (th.) EURm • Assets under management was 1,800 1,529 +2% 1,563 240 nearly 1.6 EURb by end of quarter 1,350 205 • Strong recovery in the markets after 900 170 wea
Slide 15: LHV Varahaldus: Quarterly net profit 0.5 EURm
LHV Varahaldus Quarterly net profit 0.5 EURm • Operating income and expenses remained broadly in line with previous quarter. Typical quarter without major one-off effects • Volume of Pillar II pension funds was affected by withdrawals in May • Number of active Pillar II customers making monthly cont
Slide 16: LHV Varahaldus – comparison with financial plan
LHV Varahaldus – comparison with financial plan Net profit largely in line with plan • Minimal shortfall after Q2, financial plan holds • Expectations for customer numbers and consequently fund volumes are higher for the second half of the year, with focus on more effective sales • From September, c
Slide 17: LHV Group: 12-month growth summary
LHV Group 6 months ↑10% ↑1% +447 EURm +0.1 mln ↑4% LOANS ↑ 11% banking services’ ↑0.3% PAYMENTS +18,000 +617 EURm +4.4 EURm BANK CUSTOMERS DEPOSITS FUNDS excl. banking services 31 EURm 21.3% 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 June 2025 • LHV Group well-capitalised and all 40% 36.02% capital targets have been met with solid buffer 30% • Strongest buffer in own funds is at 19.80% 22.39% CET1 level, exceeding the 20% 17.79% requirement by 2.7 percentage
Slide 20: LHV Group Liquidity and funding
LHV Group Liquidity and funding EURm Structure of liabilities • Liquidity remains strong, with a 10,000 8,669 loans-to-deposits ratio of 68% 7,500 6,727 • Liquidity coverage ratio (LCR) 199% 5,000 2,500 • Net Stable Funding Ratio (NSFR) remains very high - at 155%. Both 0 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Q
Slide 21: LHV Group Loan portfolio quality
LHV Group Loan portfolio quality Loan portfolio by stages (gross) EURm • Loan portfolio is well diversified 6,000 5,038 2.8% across sectors 4,500 2.1% • Overall portfolio quality remains 1.9% 3,000 1.4% strong, although the cost of risk and 1,500 0.7% the share of Stage 3 loans remains high. Loans h
Slide 22: Madis Toomsalu, LHV Group CEO; Meelis Paakspuu, CFO
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