In May 2020, AS LHV Group earned a net profit of EUR 2.8 million. AS LHV Pank earned EUR 2.6 million and AS LHV Varahaldus EUR 0.3 million as net profit.
After an unsettled April due to the emergency situation, May was characterized by recovering business volumes and moving towards the finishing line with many important projects. The loan portfolio, deposits as well as volume of funds are all increasing. Corporate loan portfolio increased by EUR 12 million and retail loan portfolio grew by EUR 10 million. Consolidated deposits increased by EUR 159 million, including payments intermediaries deposits by EUR 116 million and retail deposits by EUR 17 million.
Otherwise normal month regarding revenue and expenses was influenced by the EUR 0.3 million financial expense from the revaluation of the liquidity portfolio of the bank. Because of the EUR 2.8 million profit helped along by lower impairment losses, LHV is EUR 2.6 million ahead of the financial plan.
LHV pension funds performance was very good in May. The volume of second pillar funds increased by EUR 15 million in May and the number of customers increased for the fourth month in a row.
In May, we introduced LHV’s green action plan – we have started to implement principles for sustainable banking in all areas of the company’s activity, we have also launched new green financial products: a pension fund, home loan, leasing and hire purchase. As an important event, we again started providing Estonian resident private individuals and legal entities with USD payments.
In the beginning of June we have already announced reaching important milestones with two major projects: we issued covered bonds in the amount of EUR 250 million and signed an agreement to acquire Danske Bank’s credit portfolio of Estonian corporate clients and the public sector. Issuing covered bonds will reduce interest expenses for LHV. Finalising the transaction to acquire the credit portfolio will presumably take place in October and will raise LHV’s volume of loans by 15%.
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 and LHV Varahaldus. LHV employs about 470 people. LHV’s banking services are used by more than 221,000 clients, and pension funds managed by LHV have over 178,000 active clients. Additionally, LHV’s UK branch offers banking infrastructure to more than 120 financial service providers, that in turn intermediate LHV’s payment services to their customers around the world.