LHV Group results in May 2022
June 14 2022 - 1:00AM
LHV Group results in May 2022
In May, the consolidated net profit of LHV Group amounted to EUR
4.7 million. AS LHV Pank earned EUR 5.6 million in net profit, EUR
0.7 million of which was from serving clients associated with the
UK branch. AS LHV Varahaldus generated a net profit of EUR 29,000
and, for the first time, AS LHV Kindlustus also generated a
positive financial result of EUR 6,000. The net loss of LHV UK
Limited reached EUR 0.6 million in May.
By the end of May, the activity of LHV clients had reached its
normal level. The results were also affected by the good quality of
the loan portfolio, and the lower-than-planned loan provisions
resulting from that.
LHV Group’s consolidated loan portfolio grew by EUR 42 million
in May, with corporate loans increasing by EUR 5 million and retail
loans by EUR 37 million. In May, the volume of consolidated
deposits increased by EUR 76 million, mainly on account of deposits
of retail clients. The volume of funds managed by LHV decreased by
EUR 75 million over the month. In May, 2.3 million payments from
financial intermediary clients were processed.
LHV Pank’s business volumes increased and client activity
improved: the number of bank clients increased by 4,700, and new
home loans, consumer loans, and loans to apartment associations
were granted in a record amount. Interest income remained on the
regular level in May, while fee and commission income increased.
LHV Finance improved the consumer loan conditions for its clients,
and started offering a green hire-purchase for solar panels, with
an interest of 4.9%.
The business revenues of Varahaldus corresponded to plan in May.
Results were affected by a negative month on stock markets. The
larger actively managed LHV pension funds underwent a slight
decline: M, L and XL declined by 0.7%, 1.4% and 1.1%, respectively.
Over the month, pension fund Roheline increased by 1.1%;
Indeks lost 3.2% in value. In the last couple of months, it was
positive to see a significant decrease in the number of people
leaving the II pension pillar, with more people joining than
leaving in April and May.
The quick increase in business volumes of LHV Kindlustus
continues and in May, the company reached a positive financial
result for the first time. The volume of losses has decreased, the
premiums earned are starting to surpass the financial plan. Client
satisfaction with claims handling has remained at a high level of
96%. The company continues to hire new people.
LHV’s financial plan remains unchanged.
From 18 May to 1 June, LHV Group raised additional capital
through an secondary share offer. The offering to investors
was a successful one; a total of 11,694 investors subscribed to LHV
shares in the amount of EUR 43.6 million. LHV raised EUR 35
million, which will be used to finance the new bank being
established in the United Kingdom and to increase the company’s
capital buffers.
AS LHV Group reports are available 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 770
people. As of May, LHV’s banking services are being used by 347,000
clients, the pension funds managed by LHV have 130,000 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 RumLHV Communication ManagerPhone: +372 502 0786Email:
priit.rum@lhv.ee
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