LHV Group results in April 2022
May 10 2022 - 1:00AM
LHV Group results in April 2022
In April, AS LHV Group earned EUR 5.2 million in consolidated
net profit. AS LHV Pank earned EUR 6.1 million in net profit, EUR
0.8 million of which was from serving clients associated with the
UK branch. AS LHV Varahaldus earned EUR 64,000 in net loss in
April, and the net loss of AS LHV Kindlustus was EUR 182,000. The
net loss of LHV UK Limited reached EUR 0.7 million in April. Since
April, the consolidated results also include the financial results
of the new subsidiary EveryPay AS.
In April, the activity of LHV clients increased compared to
March and February. The geopolitical situation remained turbulent,
but LHV continued to actively implement its plans. The quality of
the loan portfolio remains good, resulting in lower provisions than
planned.
LHV Group’s consolidated loan portfolio grew by EUR 49 million
in April, with corporate loans increasing by EUR 28 million and
retail loans by EUR 21 million. Consolidated deposits decreased by
EUR 126 million in April, mainly due to a decline in deposits of
payment intermediaries. The volume of the funds managed by LHV grew
by EUR 2 million in April. 2.1 million payments from financial
intermediary clients were processed.
The number of bank clients grew by 4,800 in April, and client
activity is increasing. The bank’s interest income remained strong,
while fee and commission income are improving and will be helped in
the future by the increase in account management fees for financial
intermediary clients. For UK business, the focus remains on
recruiting key staff and applying for a credit institution licence.
Due to the termination of some client agreements, both the bank’s
deposits and the number of payments have decreased, but activity is
expected to pick up again in the financial intermediary
business.
April was a down month for stock markets, which also affected
the results of Varahaldus. Pension funds L and M managed to hold
their value, with XL down 0.6% over the month. These continue to be
the best-performing funds in Estonia, able to withstand the market
crash. The number of active second pillar clients remained at a
similar level as before. The number of withdrawals from the second
pillar in April was the lowest since the pension reform entered
into force.
The growth in business volumes of LHV Kindlustus accelerated in
April due to the addition of new intermediaries and an increase in
client activity. The number of clients increased by 1,200 and
satisfaction with claims handling remained very high. The impact of
COVID-19 in travel insurance losses is decreasing.
LHV’s financial plan remains unchanged. The difference
between the forecasted and actual net profit is decreasing.In
April, the Group included a new subsidiary EveryPay. In addition,
AS LHV Group made a EUR 1 million investment in Modular
Technologies, the company branded as Tuum. In accordance
with the resolutions taken at the AGM on 30 March, LHV Group is
preparing a further share issue to raise capital from investors to
finance its growth plans, mainly the capitalisation of the bank to
be established in the UK.
To access the reports of AS LHV Group, please visit the website
at https://investor.lhv.ee/en/reports/.
LHV Group is the largest domestic financial group and capital
provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV
Varahaldus, and LHV Kindlustus. The Group employs more than 740
people. As of April, LHV’s banking services are being used by
342,000 clients, the pension funds managed by LHV have 135,000
active clients, and LHV Kindlustus protects a total of
148,000 clients. LHV’s UK branch offers banking infrastructure
to 200 international financial services companies, via which LHV’s
payment services reach clients around the world.
Priit RumCommunication ManagerPhone: +372 502 0786Email:
priit.rum@lhv.ee
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