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Ettevõte AS LHV Group
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Kategooria Juhtkonna vaheteadaanne või kvartaalne finantsaruanne
Avaldamise aeg 29 jaan 2019 13:13:50 +0200
Manused
ASLHV-10001458181-en.pdf
ASLHV-10001458182-en.pdf
ASLHV-10001458183-en.pdf
ASLHV-10001458185-et.pdf
ASLHV-10001458186-et.pdf
ASLHV-10001458187-et.pdf
Keeleversioonid
Keel English
Valuuta
Pealkiri CORRECTION: LHV Group unaudited results for Q4 and 12 months of 2018
Tekst
   [Corrections in the Balance sheet: figures of September 2018 have been
renewed]

In the last quarter of 2018, AS LHV Group earnt a consolidated net profit of EUR
6.7 million: the bank's net profit was EUR 5.3 million and profit from asset
management EUR 1.9 million. Pre-tax return on equity, owned by the shareholders
of LHV Group was 17.5% in Q4.

The consolidated net profit of LHV Group in Q4 2018 was EUR 0.6 million higher
compared to Q3 and EUR 0.1 million lower compared to year on year. Impairment of
loans in Q4 amounted to EUR 0.5 million and advance corporation tax was paid in
the amount of EUR 0.5 million.

In Q4, the Group's consolidated loan portfolio increased by EUR 107 million
(+13%; +35 million in Q3), to EUR 919 million. Consolidated deposits decreased
by EUR 215 million (-13%; +95 million in Q3), to EUR 1,422 million. At the same
time, the deposits related to payment intermediaries decreased by EUR 318
million over the quarter. The deposits of the rest of the clients, however,
showed a strong growth of EUR 114 million.

The volume of funds managed by LHV increased by EUR 11 million during the
quarter (+1%; +37 million in Q3), to EUR 1,214 million.

The consolidated net profit of AS LHV Group in 2018 was EUR 27.2 million, i.e.
EUR 5.0 million more than in 2017 (+23%). The bank earnt a profit of EUR 18.4
million, asset management EUR 6.8 million and the sale of the Lithuanian
business unit increased the profit by EUR 3 million. Pre-tax return on equity,
owned by the shareholders of LHV Group was 20.9% and the return on equity based
on net profit 18.4% in 2018.

The loan portfolio of LHV Group increased by EUR 187 million year on year (+26%)
and deposits decreased by EUR 115 million (-7%). The volume of funds managed by
LHV grew by EUR 112 million (+10%) year on year.

According to Madis Toomsalu, CEO of LHV Group, LHV had a strong quarter:
"Our business demonstrated strong growth throughout the last year. The number of
LHV bank customers increased by 7,500 in the last quarter totalling 28,000 new
customers for the entire year. We are especially pleased about the loan growth
that expanded our loan portfolio by more than a quarter compared to the
beginning of the year. We reached a record level by activity indicators: we have
more customers than ever before whose salary is received in LHV bank, who keep
their assets here; more payments are made than before, more LHV bankcards are
used, more investment contracts have been concluded. Increased use of banking
services is also well reflected in the fast growth of retail deposits - year on
year growth was EUR 310 million.

As one of the most important events of the quarter, Moody's assigned AS LHV Pank
an investment-grade rating on the level of Baa1 with a stable outlook. The
rating ensures the acceptance of LHV bank guarantees by beneficiaries outside
Estonia. Furthermore, it facilitates the establishment of correspondent
relationships.

Among the loans, loans to businesses grew the most. Although, the results of the
last year were affected by the impairment of loans related to one customer, it
does not characterise the business environment or our loan portfolio in any way,
which remains strong.

In December, we signed a contract for purchasing the Versobank loan portfolio.
The total sum of claims arising from the loan portfolio against Estonian
corporate customers is nearly EUR 17 million and against Estonian private
residents nearly EUR 3 million.

By the end of 2018, the total volume of investment funds managed by LHV
Varahaldus exceeded the threshold of EUR 1.2 billion. The investment strategy of
LHV pension funds is clearly distinguished from competitors and our actively
managed pension funds were able to preserve the assets in 2018, which was a
complicated year on the markets, in a way that the rates of return of LHV
pension funds were once again among the best. The number of active II pillar
customers grew by nearly 600, to 178 thousand over the quarter.

In 2019, the asset management activity will be influenced by the Investment
Funds Act, amended in December, which notably reduces the fixed fees of the
funds and creates a possibility for a success fee. There is a significant
decrease in investment restrictions, allowing the funds to invest in OTC
companies with a higher expected rate of return. The amendments will be
introduced from September 2019.

In November, we conducted a subordinated bond issue of LHV Group with an issue
size of EUR 20 million. Interest was strong and altogether, nearly 1,700
investors subscribed to LHV's subordinated bonds in an amount exceeding EUR 51
million. The bonds form a part of our EUR 45 million bond programme, which will
ensure the achievement of our growth targets.

Also. the sustained healthy economic environment has contributed to the strong
quarter of LHV. In terms of long-term outlook, our biggest concern is the
variance of development speed in different European regions and overregulation
causing stagnation. Thinking about the next few years, the main scenario is
still the continued growth of the economy in the eurozone by a couple
percent per year.

LHV's growth trends are also supported by the Estonian business environment.
Economic growth has been solid and the internal policy risks are managed by a
balanced budget, low public sector debt and positive foreign balance. We are
expecting slow economic growth, while forecasting the surrounding economies is
becoming increasingly complicated. As national risks, we should consider the
tense situation on the labour market, unstable tax environment and increasing
risks in the building and trade sectors.

The credit market has still remained solid. The financial health of households
is rather on the strong side, the loan-to-deposit ratio is improving. The share
of overdue loans on the market has fallen below 1%, being largely covered with
allowances."



 Income statement, EUR t          Q4-2018 Q3-2018 12 months 2018 12 months 2017
-------------------------------------------------------------------------------
    Net interest income            10 289   9 454         38 151         30 361
-------------------------------------------------------------------------------
    Net fee and commission income   6 094   6 147         25 045         20 989
-------------------------------------------------------------------------------
    Net gains from financial
 assets                               104      90            443            979
-------------------------------------------------------------------------------
    Other income                      108     770            862           -146
-------------------------------------------------------------------------------
 Total revenue                     16 595  16 461         64 501         52 183
-------------------------------------------------------------------------------
    Staff costs                    -4 293  -3 779        -15 756        -12 991
-------------------------------------------------------------------------------
    Office rent and expenses         -536    -429         -1 830         -1 483
-------------------------------------------------------------------------------
    IT expenses                      -735    -565         -2 322         -1 743
-------------------------------------------------------------------------------
    Marketing expenses               -599    -522         -2 023         -3 656
-------------------------------------------------------------------------------
    Other operating expenses       -2 621  -2 636        -10 212         -7 525
-------------------------------------------------------------------------------
 Total operating expenses          -8 783  -7 931        -32 143        -27 398
-------------------------------------------------------------------------------
 EBIT                               7 811   8 530         32 358         24 785
-------------------------------------------------------------------------------
 Earnings before impairment
 losses                             7 811   8 530         32 358         24 785
-------------------------------------------------------------------------------
    Impairment losses on loans
 and advances                        -543  -1 859         -4 879         -3 154
-------------------------------------------------------------------------------
    Income tax                       -544    -501         -3 614         -1 248
-------------------------------------------------------------------------------
 Net profit for the reporting
 period from continued operations   6 725   6 170         23 865         20 384
-------------------------------------------------------------------------------
 Profit/-loss from discontinued
 operations                             0       0          3 324          1 927
-------------------------------------------------------------------------------
 Net profit                         6 725   6 170         27 189         22 311
-------------------------------------------------------------------------------
    Profit attributable to non-
 controlling interest                 676     455          1 953          2 575
-------------------------------------------------------------------------------
   Profit attributable to share
 holders of the parent              6 049   5 715         25 236         19 736
-------------------------------------------------------------------------------





 Balance sheet, EURt                            Dec 2018 Sept 2018  Dec 2017
----------------------------------------------------------------------------
    Cash and cash equivalents                    682 658   965 494   961 212
----------------------------------------------------------------------------
    Financial assets                              47 153    48 829    56 634
----------------------------------------------------------------------------
    Loans granted                                929 037   822 696   740 169
----------------------------------------------------------------------------
    Loan impairments                             -10 276   -10 745    -8 125
----------------------------------------------------------------------------
    Receivables from customers                     3 721     7 372     9 802
----------------------------------------------------------------------------
    Other assets                                  24 807    23 776    13 165
----------------------------------------------------------------------------
 Total assets                                  1 677 100 1 857 421 1 772 856
----------------------------------------------------------------------------
       Demand deposits                         1 304 265 1 513 113 1 409 662
----------------------------------------------------------------------------
       Term deposits                             117 933   124 476   127 267
----------------------------------------------------------------------------
       Loans received                             21 584    12 289     6 000
----------------------------------------------------------------------------
    Loans received and deposits from customers 1 443 782 1 649 877 1 542 929
----------------------------------------------------------------------------
    Other liabilities                             24 655    26 024    71 073
----------------------------------------------------------------------------
    Subordinated loans                            50 900    30 900    30 900
----------------------------------------------------------------------------
 Total liabilities                             1 519 337 1 706 802 1 644 902
----------------------------------------------------------------------------
 Equity                                          157 763   150 620   127 955
----------------------------------------------------------------------------
    Minority interest                              4 123     3 447     7 894
----------------------------------------------------------------------------
 Total liabilities and equity                  1 677 100 1 857 421 1 772 856
----------------------------------------------------------------------------



AS LHV Group reports are available at https://investor.lhv.ee/en/reports/
(https://www.globenewswire.com/Tracker?data=ebmuil0S7nxcuw06MHKwKIPF9Uya-
_595YHuJA6bogWNfetfUIaEfdMyq9GwGEE8bNKZf9LhIkSZFgNEVFkQrl0SAsDo1FaPu_TOb0qVkIlb_
k2SApzJTXpRf_eCrAf_).

LHV organises an investor meeting for introducing the quarterly results, to be
held on 29 January at 18.00 in LHV Tallinn office (Tartu mnt 2, I floor). The
presentation will be made in Estonian. To participate, please register
at https://fp.lhv.ee/academy/533
(https://www.globenewswire.com/Tracker?data=ebmuil0S7nxcuw06MHKwKM5cfHeXgi1VsN8b
IvSLDu_g4Y1jobks_oxBnfPbFdXRjXnbEGkow9vXR6ktS6efxsgDL8VaMrl44ZsO7n9A0bcPC-
ZeQIAJJhwk-WT9EnwF). A real-time video broadcast is made of the investor meeting
on LHV's Facebook page www.facebook.com/LHVPank
(https://www.globenewswire.com/Tracker?data=PJYwHcle7h46xLnjt_VbPa5bj44r9DvYx4F3
UQPw6Lz7yilI6Y2tai2HowR6hjko0jKIzxmqcgjlL_YM0w6xI6pTy6y2yrV6uRKQ2X6bFsY=).

LHV Group is the largest domestic financial group and capital provider in
Estonia. LHV Group's key subsidiaries are LHV Pank and LHV Varahaldus. LHV
employs over 390 people, and more than 161,000 customers use LHV's banking
services. Pension funds managed by LHV have 178,000 active clients.



Priit Rum
Communication Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee
(https://www.globenewswire.com/Tracker?data=Ys5yhqqsF--zWtyvIfpvrfjfidhcso30Qsly
zi2geLugebQvT4hJi0-7QFIO-nNji-ZVjoHitFKA_YuCD6jz8A==)

Attachments

  * Factbook ENG 2018-Q4 (https://ml-
    eu.globenewswire.com/Resource/Download/21ec253e-048f-4c80-a4cb-aca5ec8521e6)
  * LHV Group Interim Report 2018-Q4 (https://ml-
    eu.globenewswire.com/Resource/Download/3b771285-6662-40d0-8be2-a90339533f2c)
  * LHV Group 2018-Q4 Investor presentation EN (https://ml-
    eu.globenewswire.com/Resource/Download/cda073df-5f60-4eab-882f-59592ed73444)