LHV Group's January 2025 Financial Overview
As January progressed, LHV Group experienced a naturally more tempered set of results following a strong finish to the previous year. Throughout the month, the consolidated loan portfolio saw a decrease of EUR 8 million, while clients’ total deposit volume also declined, dropping by EUR 15 million. Additionally, the managed funds fell by EUR 10 million. Notably, LHV processed a significant 6.6 million payments linked to financial intermediaries, further exemplifying the company’s operational scale.
Consolidated Financial Results
In terms of profitability, AS LHV Group reported a consolidated net profit of EUR 9 million for January. Breaking it down, AS LHV Pank stood out with a net profit of EUR 6.9 million, followed by LHV Bank Ltd at EUR 1.4 million, AS LHV Varahaldus earning EUR 363 thousand, and AS LHV Kindlustus contributing EUR 249 thousand. The company remains dedicated to its disclosed financial plan, which was made public in the previous month.
Performance of LHV Pank
Focusing more closely on LHV Pank, there was a reported decrease in the loan portfolio by EUR 23 million. However, it is worth mentioning that retail loans increased by EUR 27 million. This uptick contrasts sharply with a substantial reduction of EUR 50 million in corporate loans, predominantly due to the anticipated loan repayment from a significant client. Although the overall credit quality remained stable, the month’s results were influenced by a temporary rise in provisions, linked to a downgrade in a client's rating.
The loss in total deposit volume—amounting to EUR 11 million—primarily stemmed from a EUR 78 million reduction in deposits from regular clients. In contrast, deposits from financial intermediaries had increased during this period.
Growing Client Base
In a positive turn, LHV Pank welcomed 4,000 new clients into its fold in January. Marking a high point, research conducted by Dive declared LHV Pank as the top-performing bank in Estonia for customer service, a title it has held for the ninth consecutive time in areas such as call handling and branch visits.
Growth at LHV Bank Limited
Across international borders, LHV Bank Limited, which operates in the UK, noted an upward trend in its loan portfolio, expanding by EUR 16 million in January. Furthermore, the total approved but not yet disbursed loans saw an increase, reaching EUR 186 million. The Bank successfully raised an additional EUR 25 million through deposit platforms during the month. By the end of January, LHV Bank had opened accounts for its first 100 retail clients, with intentions to broaden its offerings tailored for this segment. The net income exceeded the planned targets for January, driven in part by heightened revenues from their financial intermediary services.
LHV Varahaldus Achievements
Starting the year with promising outcomes, LHV Varahaldus recorded notable growth in its pension funds. The M, L, and XL funds grew by 1.8%, 2.6%, and 3.7% respectively, while the Indeks fund increased by 3.7% and the Roheline fund saw growth of 1.3%. Conservative funds S and XS also performed well, rising by 1.2% and 0.7%. In January, LHV Varahaldus introduced the new LHV Euro Bond Fund, which captured the interest of over 1,000 investors during its initial public offering, achieving a total of EUR 9.6 million in subscriptions.
Insurance Successes at LHV Kindlustus
In the insurance sector, January was a fruitful month for LHV Kindlustus, with clients entering into 17,500 new insurance policies amounting to EUR 6.6 million. Particularly strong sales were noted in vehicle, home, and travel insurance products. The firm handled compensation claims amounting to EUR 2 million during the month, making January a solid start for LHV Kindlustus.
About LHV Group
LHV Group stands as the leading domestic financial group and capital provider in Estonia. Key subsidiaries such as LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited underpin the group's vast array of services. With a workforce exceeding 1,200, LHV serves around 460,000 banking clients while managing pension funds for 112,000 active customers, along with providing protection for 172,000 clients through LHV Kindlustus. Notably, LHV Bank Limited holds a banking license in the UK, catering to the needs of international financial technology firms and small to medium-sized enterprises.
Frequently Asked Questions
What were LHV Group's financial results for January 2025?
LHV Group reported a consolidated net profit of EUR 9 million for January 2025, despite a reduced loan portfolio and deposits.
How did LHV Pank perform in January?
LHV Pank generated a net profit of EUR 6.9 million, while also adding 4,000 new clients during the month.
What new products did LHV Varahaldus launch?
LHV Varahaldus launched a new LHV Euro Bond Fund, attracting EUR 9.6 million from over 1,000 investors.
What is the client base of LHV Group?
LHV Group currently serves approximately 460,000 banking clients and manages pension funds for 112,000 active clients.
What challenges did LHV face in January?
LHV faced a decrease in its loan portfolio and total deposits, primarily influenced by the planned loan repayment from a significant client.
