Announcement View
Company AS LHV Group
Type Company Release
Category Other corporate action
Publicize date 19 Jan 2022 16:30:00 +0200
Languages
Kell English
Currency
Title Outcome of Supervisory Review and Evaluation Process by the FSA and AS LHV Group’s internal capital targets
Content
In January, the Estonian FSA, Finantsinspektsioon, presented LHV Group with the
outcome of Supervisory Review and Evaluation Process (SREP) capital adequacy
calculation. In comparison with earlier the Pillar 2 capital requirement and the
systemic importance buffer have been raised.

According to the decision of the FSA, an additional requirement for own funds in
the amount 2.74% applies to LHV Group, of which at least 1.54% must be covered
by Core Tier 1 own funds and at least 2.06% by Tier 1 capital.

The Supervisory Board of LHV Group based on the FSA decision and adding to it
internal buffers decided to set total CAD target ratio at 16.50%, Tier 1 ratio
at 13.50% and Core Tier 1 ratio to 11.50%.

Underneath is the target split into components:

                                            Core Tier 1   Tier 1   Total CAD
-----------------------------------------------------------------------------
  Base requirement                                4.50%    6.00%       8.00%
-----------------------------------------------------------------------------
  Pillar 2 capital requirement                    1.54%    2.06%       2.74%
-----------------------------------------------------------------------------
  Total SREP requirement                          6.04%    8.06%      10.74%
-----------------------------------------------------------------------------
  Capital conservation buffer                     2.50%    2.50%       2.50%
-----------------------------------------------------------------------------
  Systemic importance buffer (O-SII)              1.50%    1.50%       1.50%
-----------------------------------------------------------------------------
  Systemic risk buffer                            0.00%    0.00%       0.00%
-----------------------------------------------------------------------------
  Discretionary counter-cyclical buffer           0.00%    0.00%       0.00%
-----------------------------------------------------------------------------
  Total combined buffer                           4.00%    4.00%       4.00%
-----------------------------------------------------------------------------
  Total minimal regulatory requirement           10.04%   12.06%      14.74%
-----------------------------------------------------------------------------
  Additional internally decided buffers           1.46%    1.44%       1.76%
-----------------------------------------------------------------------------
  Group's internal capitalization targets        11.50%   13.50%      16.50%




Priit Rum
LHV Communication Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee (mailto:priit.rum@lhv.ee)