Significant Growth in Business Volumes for LHV Group
In a recent update, LHV Group showcased remarkable growth across its operations. The total consolidated loan portfolio reached a significant EUR 5.03 billion, showing an increase of EUR 33 million from the previous month. In parallel, the overall deposit volume saw a surge, climbing by EUR 260 million to achieve a total of EUR 7.62 billion. Furthermore, LHV's managed funds experienced a monthly increase of EUR 33 million, bringing their total to EUR 1.60 billion. Additionally, payments made to financial intermediaries totaled 6.8 million during this period.
Strong Net Profit and Business Expansion
The financial performance for July marked a notable achievement for AS LHV Group, with a consolidated net profit of EUR 10.5 million. Among its subsidiaries, AS LHV Pank recorded a significant profit of EUR 10.4 million, while LHV Bank Ltd, AS LHV Kindlustus, and AS LHV Varahaldus each contributed net profits of EUR 0.4 million, EUR 0.3 million, and EUR 0.3 million, respectively. This success resulted in a return on equity attributable to shareholders of 17.0%, underscoring the robust financial health of the group.
Customer Base Growth
AS LHV Pank experienced a noteworthy expansion in its customer base, adding approximately 2,800 new clients, bringing the total number to 476,000. The loan volumes increased by EUR 16 million, resulting in a loan portfolio of EUR 4.45 billion. Notably, while the retail loan portfolio grew by EUR 28 million, the corporate loan segment saw a decrease of EUR 12 million. Nevertheless, the overall quality of the loan portfolio remains solid. Deposits surged by EUR 227 million, aiming to reach a total of EUR 6.79 billion. It is worth mentioning that the interest rates on deposits are declining more slowly than those for loans, contributing to a slight lag in interest income.
Acknowledgements and Awards
Highlighting its commitment to excellence, LHV Pank was honored as the best bank in Estonia by the renowned international business and finance magazine Euromoney. The award recognized LHV Pank for its impressive economic results, rapid growth in its customer base, and dynamic sales approach.
Continued Growth in the UK Market
LHV Bank, catering to clients in the United Kingdom, also reported positive growth figures for July. The bank's loan portfolio at the end of July reached EUR 586 million, propelled by an increase of EUR 16 million. Deposits saw a rise of EUR 32 million from the previous month, totaling EUR 1.05 billion. The bank continues to attract deposits primarily through innovative platforms. Additionally, LHV Bank has evolved its retail banking offerings, recently introducing the Apple Pay solution to enhance customer convenience.
Advancements in Insurance Services
LHV Kindlustus expanded its reach by signing new insurance contracts worth EUR 3.5 million in July. By the end of the month, the company had approximately 284,000 active insurance contracts. Claims were compensated at a total of EUR 2.2 million, accompanied by the registration of 10,000 new claims. The profitability of the insurance segment continues to remain strong.
Investment Funds Performance
Moreover, LHV Varahaldus showcased a good return on its investment funds in July, with larger funds L and XL increasing by 0.9% and 1.0% respectively. Year-to-date, these funds have recorded the highest returns in the II pillar market at 5.7% and 8.4%. Other funds, including LHV Pensionifond Indeks and LHV Pensionifond Roheline, recorded increases of 4.5% and 2.4% respectively. Consequently, LHV Varahaldus's net profit has exceeded financial expectations, although the total volume of funds and the number of customers have slightly lagged.
Robust Financial Standing for LHV Group
LHV Group’s financial strategy remains strong, with the current year’s net income outperforming the financial plan by EUR 2.4 million. The net profit also exceeded projections by the same amount. By the end of July, the loan portfolio surpassed the financial plan estimate by EUR 62 million, while the deposit volume was higher by an impressive EUR 430 million. These figures reflect LHV Group's commitment to maintaining its robust financial health and expanding its services effectively.
Frequently Asked Questions
What were LHV Group's key financial figures in July?
In July, LHV Group reported a consolidated net profit of EUR 10.5 million, with total loans reaching EUR 5.03 billion and deposits increasing to EUR 7.62 billion.
How did LHV Pank's customer base change in July?
LHV Pank added approximately 2,800 new customers in July, bringing the total customer count to 476,000.
What recent award did LHV Pank receive?
LHV Pank was recognized as the best bank in Estonia by Euromoney for its strong economic performance and growth in customer base.
What new services did LHV Bank launch recently?
LHV Bank recently introduced Apple Pay to enhance its retail banking offerings for its customers in the UK.
How is LHV Varahaldus performing in the investment funds market?
LHV Varahaldus has reported strong returns, with significant growth in several funds, maintaining a competitive edge in the II pillar market this year.
