Slide 1: LHV Group Second quarter 2016 results
LHV Group Second quarter 2016 results 19 July 2016
Slide 2: Productive second quarter
Productive second quarter • Public offering and listing of shares on Nasdaq Tallinn Stock Exchange • Asset Management acquired AS Danske Capital, assets under management within quarter by 294 EURm • Increase in banking volumes. New product microloan launched to legal entities • Sale of Visa Europe s
Slide 3: LHV Banking: Loan portfolio increased 37 EURm QoQ
LHV Banking Loan portfolio increased 37 EURm QoQ EURm Deposits • Record number of new accounts 750 682 +32% were opened and number of new 600 517 clients reached 7,700 450 300 • Deposits increased by 27 EURm. Growth came from demand 150 deposits, time deposits remained 0 on same level Q2-14 Q3-14 Q4
Slide 4: LHV Banking: Strong results in banking, net profit 3,490 EURt and ROE above 20%
LHV Banking Strong results in banking, Net profit 3,490 EURt and ROE above 20% • Increase in loan portfolio supports net interest income growth. Margins have remained stable. Negative EURIBOR increases cost of keeping liquidity portfolio • Net fee income has dropped due to limits set to payment card
Slide 5: LHV Asset Management: Assets under management increased by 294 EURm
LHV Asset Management Asset under management increased by 294 EURm EURm Assets under management and customers customers (th.) • Asset management completed 1000 891 200 purchase of AS Danske Capital. The 800 180 final purchase price was 10,952,087 euros 600 528 160 400 140 • The number of Pension II P
Slide 6: LHV Asset Management: Large volumes and larger profit
LHV Asset Management Large volumes and larger profit • Danske Capital results increased II quarter incomes by 703 EURt and expenses 376 EURt • Increase in costs came from reorganizing the Danske Capital organizational structure and technical systems to match Asset Management setup • Off-site pension
Slide 7: Mokilizingas: Changes in regulations affects new sale
Mokilizingas Changes in regulations affects new sale • Lithuanian Central bank tightened the evaluation of client’s creditworthiness. These changes have negatively affected hire EURm Loans (net) purchase and small loans new sales 40 +4% in whole market 33 35 30 • Slow second quarter followed the 20
Slide 8: Mokilizingas: Smaller new sales have reduced the profit
Mokilizingas Smaller new sales have reduced the profit • Smaller business volumes have put pressure on incomes – QoQ decrease 64 EURt • Lithuanian overall economic situation is positive. Credit quality remains strong. • Second quarter profit was 314 EURt and ROE 23% 8
Slide 9: Strong quarter, increase in volumes and extraordinary profit shift profit to 4,900 EURt
LHV Group Strong quarter, increase in volumes and extraordinary profit shift profit to 4,900 EURt • Bank is main driver in Group’s profit with good interest income and stabile credit quality • After purchase of Danske Capital, the Asset management’s volumes and profit increased sharply • With extrao
Slide 10: Annexes
Annexes
Slide 11: LHV Group: Loan to deposit ratio 70%, IPO increased capital adequacy
LHV Group Loan to deposit ratio 70%, IPO increased capital adequacy % EURm Loan-deposit ratio % LCR 400 700 100 • Group’s liquidity and capitalization are 560 80 strong. Liquidity Coverage Ratio was 300 262 end of quarter 262%, two and half 420 60 200 times higher than the requirement 280 40 100 140
Slide 12: LHV Group: Asset quality remains solid
LHV Group Asset quality remains on solid % Corporate loans by ratings EURm Corporate loans overdue porfolio 30 6 • Corporate banking loan portfolio 25 quality remains strong. The share of 20 4 overdues below 90-day dropped to 15 2 0.4 0.18% and over 90-days overdues 10 0.6 dropped to 0.13% from port
Slide 13: Erkki Raasuke, LHV Group Managing Director
Erkki Raasuke LHV Group Managing Director erkki.raasuke@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