Lhv Group As · OMXTSE:LHV1T
Lhv Group As — Q4 2019 Earnings Presentation
17 slides from Lhv Group As's earnings presentation, Feb 4, 2020
Slide 1: LHV Group Q4 2019 results
LHV Group Q4 2019 results February 4, 2020
Slide 2: 2019 — the year of double growth
2019 — the year of double growth The assets of LHV Pank doubled in 2019 reaching 3 EURb. By the end of the year, we have serviced 202,000 customers and became the third largest bank in Estonia with 10% market share in daily banking. Bank acquired Danske private customers loan portfolio and increased
Slide 3: Danske deal ensured strong quarterly growth
Danske deal ensured strong quarterly growth For customers Other ¢ LHV Pank is the third largest bank in . Estonia for daily banking * Loan application through the mobile . bank * Best Bank recognition by The Banker ° Records in business volumes * Customer numbers * Loans . * Deposits * Funds « Payme
Slide 4: Quarter with the fastest loan portfolio growth quarters
LHV Group Quarter with the fastest loan portfolio growth 9 quarters Financial results, EURt Net interest income Net fee and cammission income Other income Total revenue Total expenses Earnings before impairment Impairment losses on loans Income tax expense Net income Business volumes, EURm Deposits
Slide 5: Comparison with financial plan
LHV Group — comparison with financial plan Net profit exceeds financial plan by 1.5 EURm Financial results, EURt Total revenue, incl. Net interest income Net fee and commission income Total operating expenses Earnings before impairment Impairment losses on loans Income tax Net profit, incl. attr. to
Slide 6: LHV Banking
LHV Banking Third bank in Estonia with the daily banking market share of almost 10% EURm 2800 2100 = g ia 700 ie) Q4-17 Q1-18 2-18 Regular customers’ deposits EURm a4 Qt 2018 a2 Corporate loans Deposits 2713 ne s eg ® 1448 |_| = = Q3-+18 Q4-18 Q119 Q2-19 Q3+19 Q4-19 "Financial intermediaries' deposi
Slide 7: LHV Banking
LHV Banking Acquired portfolio significantly increased revenues starting from the end of Q4 Financial results, EURt 9 quarters Q4-19 Net interest incame 13,234 Net fee and commission income 3,987 Other income 143 Total revenue 17,363 Total expenses 9,575 Earnings before impairments 7,788 Impairment
Slide 8: LHV Banking — comparison with financial plan
LHV Banking — comparison with financial plan Net profit ahead of financial plan by +1.8 EURm Financial results, EURt 13 months Total revenue, incl. ~~ Net interest income ~~” Net fee and commission income———* Total operating expenses —_——— Earnings before impairment. ———~_/ Impairment losses on loan
Slide 9: LHV Asset Management
LHV Asset Management Great year for stock markets and index funds customers (th.) Assets under management and customers + The volume of assets under 1500 oy eda 200 management ca 1.4 EURb by the 1200 —_ _—OUlCU 190 end of fourth quarter, with 13% YoY increase 900 180 600 170 q * Incontrast to 2018,
Slide 10: LHV Asset Management
LHV Asset Management EBIT of Q4 0.8 EURm Financial results, EURt 9 quarters Q4-19 Q3-19 A quarter . EBIT in Q4 is 0.8 EURm Total revenue 2,440 3,303 -864 Total operating expenses 1,634 1,470 +164 P ae + Fund management fees for the EBIT 806 1,833 -1,028 i ; re : largest funds fell by 40% starting Ne
Slide 11: LHV Asset Management — comparison with financial plan
LHV Asset Management — comparison with financial plan Net profit for year 2019 is 6.1 EURm Financial results, EURt 13months __Dec-19__-YTD19_—_—YTDi8_ FPYTD_A YTD FP * Average return on funds under Total revenue —r 857 13,189 13,750 13,290 =101 : ones Total expenses we 603 «6,097 «5,823 «6,028 +68 m
Slide 12: 12 months
LHV Group 12 months 27.1 EURm 16.2% Net profit Pre-tax ROE Best bank in Estonia 40,800 Euromoney / The Banker Bank customer increase
Slide 13: Annexes
Annexes
Slide 14: Strong liquidity and capitalization
LHV Group Strong liquidity and capitalization % LCR 200 180 106 50 ° aoa @ «3 a a 2018 2019 % Ti capital adequacy 2 16 a2 foc} 145 a4 TTT a4 a1 a2 a3 a at 2018 2019 > LHV internal Tier 4 ratio limit 14 a2 g EURM Loan-deposit ratio * 2,800 00 2,100 7s 1,400 60 700 25 ° 0 ° a a @ G@ &@ a a cw a 2018 2
Slide 15: The quality of the loan portfolio is strong
LHV Group The quality of the loan portfolio is strong % Corporate loans by ratings 40 2 2 16 : i. 13 468 7 8 9 1012 13 08-48 = 03-19 54-19 EURm LHV Finance loans overdue porfolio 18 =- ] aoeee = 1.2 ff 0.68 0.0 0.6 | | | ] | | | | a a4 a1 a2 a3 GF Cl G2 a8 2018 2019 = loan impairments _® over 90 day
Slide 16: Stock information
LHV Group Stock information EUR LHV stock price and tumover FURT 1 1 Sey daily turnover (EURT) om LHV stock closing price (EUR) | Werree lad lll ub ibs dial uika i cul Aprt6 Aug16 Deci6 Apri7 Aug17 Deci7 Ap 18 Aug18 Dect8 Apr19 Aujy19 Dec 19 Dynamics of LHV stock price and comparison indexes —LHV st
Slide 17: AS LHV Group contact details
AS LHV GROUP TARTU MNT 2, TALLINN 6 802 670 INFO@LHV.EE LHV.EE