In This Article:
The shorter month of February brought lower interest income than usual, but LHV’s result was supported by increased business volumes. In February, the consolidated loan portfolio of LHV Group increased by EUR 65 million, EUR 19.5 million of which was due to the growth of the loan portfolio in Estonia and EUR 45.3 million from the United Kingdom. The volume of consolidated deposits decreased by EUR 285 million. The volume of funds managed by LHV increased by EUR 14 million. In February, 6.4 million payments were made related to financial intermediaries.
The net profit of AS LHV Group was EUR 10.7 million in February. AS LHV Pank earned a net profit of EUR 9.8 million and LHV Bank Ltd EUR 472,000. In February, the net profit of AS LHV Varahaldus was EUR 159,000 and the net profit of AS LHV Kindlustus was EUR 36,000. The financial plan published in February remains unchanged.
Nasdaq named LHV Group the Best company for investor relations on the Baltic stock exchanges for the third time in February. At the same time, LHV Pank was declared the Stockbroker of the year.
The number of LHV Pank clients increased by 2,700 in February. Activity was increased by the start of income tax declaration period. In the loan portfolio, retail loans increased by EUR 27.5 million, while corporate loans decreased by EUR 8 million. Bank deposits decreased by EUR 305 million, while regular clients reduced deposits by EUR 48 million and financial intermediaries by EUR 230 million. Deposits from deposit platforms were also reduced. The loan write-downs reflected the repayments of individual clients’ loans.
The strong growth of the loan portfolio of LHV Bank in the UK continued and it is increasing interest income. While the loan portfolio increased by EUR 45 million, there are still loans approved but not issued in the amount of EUR 161 million. Deposits from platforms increased by EUR 26 million. The volumes of payments and deposits in the business line of financial intermediaries largely corresponded to the business plan.
Development of the Bank’s retail offerings continued: in February, the ordering of cards and making of card payments was opened to a smaller test group in the app. The entire development of the mobile app is taking place in-house, with the development team fully assembled.
In February, LHV Varahaldus announced that it would stop selling pension funds in shopping centres in March. In the future, Varahaldus will focus on other sales channels. In February, the company’s expenses and revenues largely corresponded to the financial plan. Of the managed pension funds, M, L, and XL increased by 0.5%, 0.7%, and 0.8%, respectively, over the month. Pensionifond Indeks lost 1.7% in value and Roheline 1.6%. Conservative funds S and XS increased their value by 0.7%.