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In February, AS LHV Group earned EUR 3.2 million in consolidated net profit. AS LHV Pank earned EUR 4.0 million in net profit, EUR 0.6 million of which was from serving clients associated with the UK branch. AS LHV Varahaldus earned EUR 144,000 in net profit, and the net loss of AS LHV Kindlustus was EUR 155,000. The net loss of LHV UK Limited reached EUR 0.7 million in February.
February was characterised by volatility and an anxious geopolitical situation that decreased client activity. Revaluation of bonds in the liquidity portfolio decreased the profit in February by EUR 1.0 million. Quality of the loan portfolio remained good, which is why discounts of loans turned out to be lower than expected.
As a result of planned deposit reduction by payment intermediaries, the volume of consolidated deposits of LHV Group decreased by EUR 371 million in February. The consolidated loan portfolio increased by EUR 13 million, mainly on account of retail loans. The volume of funds managed by LHV increased by EUR 23 million over the month. In February, the number of payments processed in relation to clients who are financial intermediaries reached 2 million payments.
In February, the bank gained 4,700 new client, and introduced a new product – a virtual card that can be opened and used in only a few moments. In addition, a sector survey by the survey company Dive once again confirmed the quality of service at LHV Pank as the best in Estonia. Russia’s war against Ukraine has forced millions of people to flee from their homes. LHV supports aiding the refugees, and started providing banking services under simplified procedure and for free to Ukrainian refugees that have made it to Estonia. The EUR 500,000 donated by LHV to the Estonian Refugee Council will have an effect on the financial results of March.
The results of Varahaldus were affected by market volatility. The monthly return of pension funds M, L and XL turned out to be 0.9%, 1.6%, and 0.9%, respectively. Compared to other funds on the market, LHV’s actively managed funds have maintained and increased their value better during the anxious time. The results of Varahaldus were positively affected by the growth of value of own units. The number of pension clients remained at the same level as in January.
A growth in business volumes, but also the continuing effect of the pandemic on insurance losses are reflected in the February results of LHV Kindlustus. Satisfaction with loss adjustment remains at a high level, and development of new products continues.
Regarding LHV UK, the main emphasis was on recruiting key personnel, and after a year of preparation, LHV UK Limited applied for a banking licence in the United Kingdom.
In February, LHV Group published the new financial plan and the five-year financial forecast. The financial plan stands. On 30 March, LHV is organising a general meeting of shareholders which, among other items, will decide on amendments to the Articles of Association, dividend payments, and acquisition of EveryPay AS.
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. LHV employs over 690 people. As at February, LHV’s banking services are being used by 332,000 clients, the pension funds managed by LHV have 135,000 active clients, and LHV Kindlustus protects a total of 145,000 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 Rum
Communication Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee
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