Impressive Growth in Business Volumes
LHV Group has reported significant growth in its business volumes for the recent month. The consolidated loan portfolio witnessed a notable increase of EUR 49 million, now totaling EUR 5.28 billion. Additionally, deposits surged by EUR 47 million, bringing the total to EUR 7.50 billion. The management of funds by LHV also grew, seeing an increase of EUR 38 million, and now stands at EUR 1.66 billion. Payments associated with financial intermediaries reached EUR 8.1 million in the reported month.
Robust Earnings Performance
For the month, AS LHV Group realized a consolidated net profit of EUR 8.9 million. Among its subsidiaries, AS LHV Pank achieved a profit of EUR 9.5 million, AS LHV Varahaldus recorded EUR 0.2 million in profit, while AS LHV Kindlustus earned EUR 0.1 million. Conversely, LHV Bank Ltd experienced a net loss of EUR 0.3 million this month. The return on equity attributed to shareholders was reported at 13.5%, indicating solid financial health.
Customer Base Expansion
The number of customers at LHV Pank rose by 3,400, reaching an impressive total of 486,000. Loans advanced during the month increased by EUR 37 million, with the overall loan portfolio now at EUR 4.61 billion. The portion dedicated to private individuals expanded by EUR 26 million, while the corporate loan sector grew by EUR 11 million. Despite this growth, deposit volumes fell by EUR 39 million, leading to a new total of EUR 6.60 billion, attributed largely to declines among major depositors and platform deposits.
International Expansion in the UK Markets
LHV Bank’s operations in the UK also reflect positive growth trends, with loan volumes increasing by EUR 13 million, culminating in a loan portfolio of EUR 673 million by the end of October. An additional EUR 224 million in loans has been approved by the credit committee but remains unissued. Deposits saw a substantial rise of EUR 76 million, summing up to EUR 1.08 billion. The introduction of direct debits along with the development of Easy Access deposits signifies the bank’s adaptive approach in the competitive market.
Progress in Insurance Services
LHV Kindlustus has successfully written new insurance contracts amounting to EUR 4.1 million during October. The total number of active insurance contracts reached approximately 293,000, with loss reimbursements totaling EUR 2.4 million and 13,500 new claims entered, showcasing the stability of their insurance services.
Performance of Fund Management
The month of October brought favorable conditions for stock markets, benefiting LHV Varahaldus’s largest asset management funds. Both the Ettevõtlik and Julge funds achieved monthly increases of 1.0% and 1.6% respectively. Returns for other funds, Tasakaalukas and Rahulik, were noted at 0.9% and 0.7%. Furthermore, the LHV pension fund Indeks soared by 4.6%, reaffirming confidence in LHV’s investment strategies.
Year-to-Date Financial Overview
As of the current year, LHV Group's net income trails the financial plan by EUR 4.7 million, equivalent to a 2% shortfall, with the yearly result underperforming by EUR 5.1 million or 5%. Nevertheless, key metrics show the loan portfolio exceeds projections by EUR 95 million, while deposits surpass expectations by EUR 98 million.
Frequently Asked Questions
What were the total deposits for LHV Group in October?
The total deposits for LHV Group in October reached EUR 7.50 billion, reflecting an increase of EUR 47 million from the previous month.
How much profit did LHV Group report in October?
LHV Group recorded a consolidated net profit of EUR 8.9 million for the month of October.
What is the current loan portfolio value of LHV Pank?
The loan portfolio of LHV Pank reached EUR 4.61 billion, driven by an increase of EUR 37 million in loans issued.
How did LHV Bank perform in the UK?
LHV Bank in the UK grew with a loan portfolio reaching EUR 673 million and deposits rising by EUR 76 million, demonstrating continued business expansion.
What strategies are being implemented for LHV Varahaldus's funds?
LHV Varahaldus updated its pension investment account product and price lists, aiming to provide a more favorable investment solution compared to competing funds.
