AS LHV Group intends to appoint Erki Kilu as the Head of a subsidiary to be
established in the United Kingdom, i.e. a new bank. In this regard, the
Supervisory Board of AS LHV Pank plans to elect Kadri Kiisel as the new Chairman
of the Management Board of AS LHV Pank. According to the plans, the changes in
the Management of the company will take effect on 20 January 2021.
Pursuant to the stock exchange announcement of 23 October
(https://cns.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=959585&me
ssageId=1209029), LHV is more clearly separating the business operations of LHV
Pank in the United Kingdom and the business in Estonia, and is going to set up a
new credit institution for providing services to its clients who are
international payment intermediaries. The establishment of a subsidiary is
currently in process, followed by manning, capitalisation and application for
the activity licence of the credit institution.
According to Madis Toomsalu, CEO of LHV Group, the internal changes enable
further rapid development of various strategic business lines. "In addition to
Estonia, our long-term profitable growth target of LHV can be achieved through
international markets as well. Our operations in the United Kingdom in providing
services to international payment intermediaries are growing and profitable. A
technologically demanding business line with no established competition and
concentration on the fintech business models of the new era demands strong
focus, but will also bring along the potential to increase business volumes.
Separating this business line into an independent credit institution will create
value for both the clients as well as the investors of LHV.
I am pleased that in the form of Erki Kilu, we have a leader with the necessary
experience for creating and managing the new bank. The experience of Erki Kilu
in applying for the banking licence, building up a modern and technologically
capable organisation and previous management of a growing bank with strong
results provides a good basis for succeeding in the United Kingdom as well.
On the other hand, LHV Pank is also going to have the best possible CEO,
considering Kadri Kiisel's experience in managing LHV's retail banking and LHV
Finance which focuses separately on small-scale financing, former activities in
leading major projects and focusing on the best client satisfaction. Under the
leadership of Kadri, the bank will continue its long-term profitable growth of
client numbers and business volumes and providing the best service and constant
innovation to clients," said Madis Toomsalu.
Erki Kilu has managed AS LHV Pank as Chairman of the Management Board since its
foundation in 2008. He is the Chairman of the Supervisory Board of AS LHV
Finance, Member of the Supervisory Board of AS LHV Varahaldus and AS LHV
Kindlustus, and Member of the Management Board of the Estonian Banking
Association. In 2001, he received a Master's degree in Business Administration
from the University of Tartu Faculty of Economics and in 2018 a Master's degree
in Engineering Science from the Institute of Computer Science. Erki Kilu holds
100,036 shares of AS LHV Group. He has the opportunity to acquire a total of
87,214 shares of AS LHV Group for the options issued in 2018, 2019 and 2020.
"In two years, we have extended the number of customer of the United Kingdom
branch of LHV Pank to 130 payment intermediaries who, in turn, have over 10
million clients all over the world. These are cutting-edge and leading tech
companies that expect from their banking partner the most advanced digital
solutions, international operations and adequate risk management in offering
payment services. We are uniquely positioned in the entire European banking
industry, where we are able to simultaneously offer real-time euro and pound
payments to international clients, being a direct member of these payment
systems. I am glad that our United Kingdom branch already has a strong team and
our branch is profitable.
Creating a new bank in the United Kingdom and separating international business
from LHV Pank organisationally as well as technologically, and continuing its
rapid further development sets sufficiently big challenges, but since they are
also time-consuming, they require complete commitment to just these topics.
Obtaining banking licence in the United Kingdom may take a couple of years
considering the economic situation, movement restrictions and withdrawal of the
United Kingdom from the European Union. Founding and structuring a new bank is
unique as once again it can be done under LHV's name. The new bank will carry on
LHV's culture and the synergy between the LHV banks operating in Estonia and the
United Kingdom will most definitely be strong," Erki Kilu said.
Kadri Kiisel has been managing retail banking of AS LHV Pank since 2018 as a
Member of the Management Board and has also been the CEO of AS LHV Finance. From
2011, Kiisel worked as the manager of the LHV Pank Tallinn branch and since
2017 she was the Head of branches of LHV Pank. Kadri Kiisel has a Master's
degree in Financial Management from the University of Tartu. Kadri Kiisel does
not hold managerial positions in other companies. She holds 2,094 shares of AS
LHV Group and has the right to acquire a total of 39,826 shares of AS LHV Group
based on options issued in 2018, 2019 and 2020.
"LHV Pank's growth has been fast and impressive and we have one of the three
largest banks in everyday banking. Today, we have already more than 240,000
clients throughout Estonia who can use banking services conveniently without
leaving their home. I want the bank to continue its fast growth; however, no
compromises can be made regarding quality. We are continuing to focus on
providing the best banking experience to clients and will find ways to surprise
them. LHV is a unique organisation and I have had the privilege of working with
such a highly motivated team with a strong sense of mission. No challenge is
ever too big with such a team," said Kadri Kiisel.
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 500 people. LHV's banking services are used by more than 240,000
clients, and pension funds managed by LHV have more than 184,000 active clients.
LHV's UK branch offers banking infrastructure to 130 international financial
services companies, via which LHV's payment services reach clients around the
world.
Priit Rum
LHV Communication Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee (mailto:priit.rum@lhv.ee)
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