LHV Group's 2024 Financial Highlights
The Supervisory Board of AS LHV Group has completed its review of the audited annual report for 2024, which will be presented at the upcoming Annual General Meeting for approval. Crucially, the findings mirror those reported in the interim figures disclosed earlier in the year.
Robust Revenue Growth
In 2024, LHV Group achieved a consolidated revenue of 338.3 million euros, reflecting an 11% increase compared to the previous year. This includes net interest income of 273.3 million euros — an 8% rise — alongside net fee and commission income that surged by 24% to 60.3 million euros. The group's operational expenses also saw a rise, totaling 146.9 million euros for the year, which is a 14% increase.
Profitability Metrics
The net profit reported for 2024 reached 150.3 million euros, equating to a 7% increase year-over-year. LHV Group demonstrated solid operational efficiency with a cost/income ratio of 43.4% and a robust return on equity at 24.5%. Earnings per share were reported as 0.46 euros for ordinary shares, while diluted earnings came in at 0.45 euros.
Asset and Deposit Growth
As of the end of 2024, LHV Group's consolidated assets grew significantly by 23% to 8.74 billion euros, marking an increase of 1.64 billion euros over the year. Deposits from clients rose by 21%, landing at 6.91 billion euros, whereas the total loan portfolio swelled to 4.55 billion euros, representing a 28% growth.
Client Engagement and Payment Processing
Client engagement also saw upward momentum, with LHV Pank's client base increasing to 455,000. This marks a notable rise of over 9% year-on-year. The number of processed payments reached 74.8 million, an impressive 51% increase as LHV continued to support financial intermediaries through efficient processing capabilities.
Dividend Proposal and Shareholder Returns
The Management Board has put forth a proposal to distribute profits for the fiscal year. This includes a dividend payout of 0.09 euros per share, amounting to a total of approximately 29.2 million euros. Associated taxes on these dividends are projected to be around 8.2 million euros. The remainder of the profit will be attributed to retained earnings, promoting long-term growth.
Shareholder Information
For those investors interested in the dividend, the cutoff date for determining eligible shareholders is set for 9 April 2025, with dividends scheduled for distribution on 10 April 2025. Notably, shares purchased after the ex-date of 8 April will not accrue the right to dividends for the 2024 financial year.
LHV Group's Strength in the Financial Sector
LHV Group stands as the paramount financial institution and capital provider within its domestic market. Its key subsidiaries, including LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited, play crucial roles in the group's operations. By the end of January, LHV had 460,000 clients utilizing its banking services. Furthermore, its pension fund management services accounted for 112,000 active clients, with LHV Kindlustus insuring a total of 172,000 clients.
Expanding Internationally
The group's subsidiary, LHV Bank Limited, extends its reach by servicing international financial technology companies and providing necessary loans to small and medium enterprises in the UK, highlighting LHV's ambition to diversify and scale its operations beyond domestic boundaries.
Marthi Lepik
Communication Specialist
Phone: +372 5666 2944
Email: marthi.lepik@lhv.ee
Frequently Asked Questions
What were LHV Group's total revenues in 2024?
LHV Group reported total revenues of 338.3 million euros in 2024.
How much profit did LHV Group generate in 2024?
The net profit for LHV Group in 2024 amounted to 150.3 million euros.
What is the proposed dividend per share for 2024?
The Management Board proposes a dividend of 0.09 euros per share.
When will dividends be paid to shareholders?
Dividends are scheduled to be paid on 10 April 2025.
How many clients does LHV Group serve?
LHV Group serves approximately 460,000 banking clients.
