Slide 1: LHV Group Q3 2020 results
LHV Group Q3 2020 results October 20, 2020
Slide 2: Busy quarter, the effects of the crisis were modest
Busy quarter, the effects of the crisis were modest For customers Pension funds • Best Bank recognition from Euromoney • Pension fund Roheline strong return. Other funds • Full-service payment collection service with a positive return • Contactless payments for Fitbit and • Low customer activity in
Slide 3: Quarter with good results and growth
LHV Group Quarter with good results and growth • Loans, deposits and funds grew during the quarter • Credit portfolio remains strong, grace periods due in September were slightly extended. The remaining grace periods end by April 2021 • Loan provisions were partially reduced • LHV Group efficiency i
Slide 4: LHV Group – comparison with financial plan
LHV Group – comparison with financial plan Net profit +8.3 EURm ahead of financial plan • Revenues exceed current financial plan in terms of both interest and commission income. Expenses lower than the financial plan • Loan provisions lower than the financial plan, provisions mainly model-based • In
Slide 5: LHV Banking: Deposits volume above 3 EURb and loans volume above 2 EURb
LHV Banking Deposits volume above 3 EURb and loans volume above 2 EURb EURm Deposits 3,257 • 11,000 new customers. Record levels in retail 3200 customer activity and business volumes 2,542 2400 • Deposits increased by 153 EURm, incl. retail customers by 233 EURm, payment 1600 intermediaries by 57 EU
Slide 6: LHV Banking: Record levels in business volumes, net profit and efficiency indicators
LHV Banking Record levels in business volumes, net profit and efficiency indicators • Net profit 10.7 EURm, incl. advance income tax expense 0.5 EURm on the expected dividends • Loan provisions at the same level. The credit rating of some corporate banking customers directly affected by the crisis h
Slide 7: LHV Banking – comparison with financial plan
LHV Banking – comparison with financial plan Net profit ahead of financial plan by +8.2 EURm • Deposits exceeded financial plan by 326 EURm and loans by 61 EURm • Net profit exceeded financial plan due to higher interest income from larger loan portfolio, higher securities transaction fees due to hi
Slide 8: LHV Asset Management: Very strong performance of pension fund Roheline
LHV Asset Management Very strong performance of pension fund Roheline EURm customers (th.) Assets under management and customers • The volume of assets under 1800 1,496 200 management nearly 1.5 EURb by the 1500 1,328 190 end of Q3, with 13% YoY increase 1200 180 900 • Growth in stock market slowed
Slide 9: LHV Asset Management: Net profit 0.8 EURm, active customers growing
LHV Asset Management Q2 Net profit 0.8 EURm, the number of active customers is growing • Net profit in Q3 is 0.8 EURm. Compared to Q2 operating income increased, general expenses decreased and the change in the value of own shares had a smaller effect on profit • Pillar II pension funds net assets i
Slide 10: LHV Asset Management – comparison with financial plan
LHV Asset Management – comparison with financial plan Net profit, number of customers and volume of funds ahead of the financial plan • The best performing pension fund on the market is Roheline • Final merger of pension funds Estonia and L • After the funds merger 2.4 EURm worth of pension fund uni
Slide 11: 21.8 EURm net profit, growth in business volumes
LHV Group 9 months 21.8 EURm 15.4% Net profit Pre-tax ROE Growth in business 33,400 volumes Bank customers increase Acquisition of Danske portfolio 11
Slide 12: Annexes
Annexes
Slide 13: LHV Group: Strong liquidity and capitalization
LHV Group Strong liquidity and capitalization EURm % % LCR Loan-deposit ratio • Liquidity and capitalization of the 200 183 4000 100 Group are strong and sufficient to 80 150 3000 take over Danske’s portfolio planned 60 for Q4 2000 100 40 1000 50 20 • 200 EURm raised in Q3 in the 0 0 TLTRO III progr
Slide 14: LHV Group: The debt ratio remains low
LHV Group The debt ratio remains low % EURm 40 Corporate loans by ratings Corporate loans overdue porfolio • Economic situation in Q3 better than 21 excpected, no additional provisions 32 14 made 24 7 1.2 16 0 0.7 • Grace period to customers are -10.8 8 -7 coming to an end. Almost all -14 customers
Slide 15: LHV Group: Stock information
LHV Group Stock information EUR LHV stock price and turnover EURt • Q3 closing share price 13.50 EUR 1,000 LHV daily turnover (EURt) 14 LHV stock closing price (EUR) 750 • 5,482 trades were made with LHV 12 shares during Q3 on the market with a 500 turnover of 5.0 EURm, which gave the 10 stock an av
Slide 16: Madis Toomsalu, Meelis Paakspuu contact details
Madis Toomsalu LHV Group Managing Director madis.toomsalu@lhv.ee Meelis Paakspuu LHV Group CFO meelis.paakspuu@lhv.ee AS LHV GROUP TARTU MNT 2, TALLINN 6 802 670 INFO@LHV.EE LHV.EE