Market announcement
AS LHV Group
LEI code
529900JG015JC10LED24
Size of the entity
Large group
Economic activities
Financial and Insurance Activities
Industry sector(s)
Credit institution
Country of registered office
Estonia
General information
Categories
Half-yearly financial report
Unique data record identifier
10088
Attachments
Submission date and time
07.02.2023 08:00:00
Content of announcement in Estonian
Title
LHV Groupi 2022. aasta IV kvartali ja 12 kuu auditeerimata majandustulemused
Message
AS-i LHV Group 2022. aasta konsolideeritud puhaskasumiks kujunes 61,4 miljonit eurot ehk 1,2 miljonit eurot rohkem kui 2021. aastal (+2%). LHV Groupi aktsionäridele kuuluva omakapitali tootlus oli 2022. aastal 16,4%. AS LHV Pank teenis aastaga 80,9 miljonit eurot puhaskasumit, sealhulgas 13,0 miljonit eurot Ühendkuningriigi filiaaliga seotud klientide teenindamisest. Aastaga kasvas panga kasum 16,8 miljoni euro võrra (26%). AS LHV Varahaldus teenis 2022. aastal 103 tuhat eurot puhaskahjumit ning AS LHV Kindlustus 1,7 miljonit eurot puhaskahjumit. LHV UK Limited-i puhaskahjumiks kujunes 2022. aastal pangalitsentsi ettevalmistamisega seotud kulude tõttu 11,7 miljonit eurot. Grupi konsolideeritud tulud ulatusid 2022. aastal 173,5 miljoni euroni ehk kasvasid 24% võrreldes 2021. aastaga. Seejuures kujunes intressitulude kogusummaks 129,1 miljonit eurot (aastane kasv +33%) ning teenustasutulu kogunes 44,9 miljonit eurot (+3%). Konsolideerimisgrupi kulud ulatusid 2022. aastal kokku 89,6 miljoni euroni, mis tähendab 38% kasvu võrreldes eelmise aastaga. 2022. aasta lõpuks oli LHV Groupi konsolideeritud varade maht 6,14 miljardit eurot, aastaga kahanes varade maht 710 miljoni euro võrra (-10%). Aastaga vähenesid grupi konsolideeritud hoiused, peamiselt finantsvahendajate arvel, 907 miljoni euro võrra (-16%) 4,9 miljardi euroni. IV kvartalis kahanesid grupi konsolideeritud hoiused 268 miljoni euro võrra (-5%; -198 miljonit eurot III kvartalis). Seejuures vähenesid tavaklientide hoiused kvartaliga 27 miljoni euro võrra ja finantsvahendajate omad 241 miljoni euro võrra. Konsolideeritud laenuportfell kasvas 2022. aastal kokku 531 miljoni euro võrra (+20%). IV kvartaliga suurenes laenude maht 114 miljoni euro võrra 3,21 miljardi euroni (+4%; +170 miljonit eurot III kvartalis). Portfelli kasvust 58 miljonit eurot tuli panga jaelaenudest ja 34 miljonit eurot ettevõtete panganduse laenudest, 22 miljonit eurot Ühendkuningriigi laenudest. LHV poolt juhitud fondide koondmaht langes 2022. aastal 17 miljoni euro võrra 1,33 miljardi euroni (-1%). IV kvartalis suurenes fondide maht 66 miljoni euro võrra (+5%; +7 miljonit eurot III kvartalis). Finantsvahendajatest klientidega seotud töödeldud maksete arv aasta peale kokku oli 26,1 miljonit makset, seda oli 1,3 miljoni võrra vähem kui 2021. aastal (- 5%). Finantsvahendajate maksete arv ulatus IV kvartalis 7,3 miljoni makseni (+26% võrreldes 5,68 miljoni maksega III kvartalis). AS LHV Group teenis 2022. aasta IV kvartalis konsolideeritult 24,3 miljonit eurot puhaskasumit. AS LHV Pank teenis IV kvartalis puhaskasumit 29,9 miljonit eurot puhaskasumit, sellest 5,3 miljonit eurot Ühendkuningriigi filiaaliga seotud klientide teenindamisest. AS LHV Varahaldus teenis kvartaliga 0,5 miljonit eurot puhaskasumit. AS LHV Kindlustuse puhaskahjum oli IV kvartalis 0,5 miljonit eurot ja LHV UK Limited teenis 5,1 miljonit eurot puhaskahjumit. Grupi omakapitali tootlus (ROE) oli IV kvartalis 24%. Aasta viimastel kuudel tõusid oluliselt panga intressitulud, samal ajal püsis laenuportfell kvaliteetsena, see tingis ajaloo parima kvartali LHV Groupi ja LHV Panga jaoks. Võrreldes eelmise kvartaliga kasvas grupi puhaskasum 13,6 miljoni euro võrra (+126%) ning võrreldes aasta taguse ajaga 5,0 miljoni euro võrra (+26%). Kasumiaruanne, tuhandetes eurodes IV kv 2022 IV kv 2021 12 kuud 2022 12 kuud 2021 ------------------------------------------------------------------------------- Neto intressitulu 44 098 28 163 129 111 97 319 ------------------------------------------------------------------------------- Neto teenustasutulu 11 549 15 252 44 900 43 478 ------------------------------------------------------------------------------- Neto finantstulud 836 -913 -594 -946 ------------------------------------------------------------------------------- Muud tegevustulud 75 177 126 530 ------------------------------------------------------------------------------- Tulud kokku 56 558 42 679 173 543 140 381 ------------------------------------------------------------------------------- Personalikulu -13 170 -8 638 -46 795 -31 322 ------------------------------------------------------------------------------- Kontorikulud 263 -453 -2 097 -1 836 ------------------------------------------------------------------------------- IT kulud -2 740 -1 271 -8 151 -4 407 ------------------------------------------------------------------------------- Turunduskulud -1 084 -791 -3 261 -2 506 ------------------------------------------------------------------------------- Muud tegevuskulud -10 149 -7 095 -29 333 -25 113 ------------------------------------------------------------------------------- Kulud kokku -26 881 -18 249 -89 638 -65 185 ------------------------------------------------------------------------------- Ärikasum 29 677 24 431 83 905 75 197 ------------------------------------------------------------------------------- Kasum enne allahindlusi 29 677 24 431 83 905 75 197 ------------------------------------------------------------------------------- Laenude allahindlus -251 -1 694 -8 052 -3 948 ------------------------------------------------------------------------------- Tulumaksukulu -5 112 -3 395 -14 421 -10 986 ------------------------------------------------------------------------------- Puhaskasum 24 315 19 342 61 432 60 263 ------------------------------------------------------------------------------- Vähemusosaluse osa 237 485 1 624 2 002 ------------------------------------------------------------------------------- Emaettevõtte aktsionäride osa kasumist 24 078 18 856 59 808 58 261 Bilanss, tuhandetes eurodes dets.22 sept.22 dets.21 --------------------------------------------------------------------- Raha ja raha ekvivalendid 2 482 288 2 735 080 3 987 312 --------------------------------------------------------------------- Finantsvarad 373 584 373 749 135 856 --------------------------------------------------------------------- Laenud klientidele 3 229 214 3 115 239 2 696 210 --------------------------------------------------------------------- Laenude allahindlus -20 642 -20 537 -19 049 --------------------------------------------------------------------- Nõuded klientide vastu 21 019 12 785 9 746 --------------------------------------------------------------------- Muud varad 49 539 46 099 34 859 --------------------------------------------------------------------- Varad kokku 6 135 002 6 262 414 6 844 933 --------------------------------------------------------------------- Nõudmiseni hoiused 4 644 843 5 053 834 5 648 013 --------------------------------------------------------------------- Tähtajalised hoiused 255 672 114 319 159 609 --------------------------------------------------------------------- Saadud laenud 586 254 496 239 546 280 --------------------------------------------------------------------- Võlgnevused klientidele 5 486 768 5 664 393 6 353 901 --------------------------------------------------------------------- Muud kohustused 96 541 91 626 55 853 --------------------------------------------------------------------- Allutatud laenud 130 843 110 652 110 378 --------------------------------------------------------------------- Kohustused kokku 5 714 152 5 866 671 6 520 133 --------------------------------------------------------------------- Omakapital 420 850 395 743 324 801 --------------------------------------------------------------------- sh vähemusosaluse osa 7 908 7 671 8 384 --------------------------------------------------------------------- Kohustused ja omakapital kokku 6 135 002 6 262 414 6 844 933 Aasta lõppu iseloomustasid LHV jaoks intressitulude kasv ja laenuportfelli jätkuvalt hea kvaliteet, kuigi majanduskeskkond on nõrgenemas. Tänu nendele täitis grupp aastaks seatud kasumlikkuse eesmärgi. Finantsplaanist kõrgemad kulud olid seotud eelkõige riskiüksuste värbamistega ja EveryPay lisandumisega gruppi aprillis. LHV Panga jaoks oli aasta edukas. Pangaklientide hulk suurenes aastaga enam kui 56 000 võrra (+18%) 378 000 pangakliendini. Seejuures ligikaudu 14 000 pangaklienti lisandus IV kvartalis. Klientide aktiivsus arvelduste ja kaardikasutuse osas jäi heale tasemele. Samas klientide laenunõudlus neljandas kvartalis vähenes märgatavalt. 2022. aastal finantseeris LHV majandust kokku 1,73 miljardi euro mahus. Aasta jooksul ületas panga kodulaenu portfell 1 miljardi euro piiri. 16% kõigist uutest kodulaenudest olid A-energiaklassi eluasemetele. Laenuportfelli kvaliteet on tugev, vaid üksikud kliendid on jälgimise all. Hoiuste vähenemine 2022. aastal oli eelkõige seotud finantsvahendajate hoiuste oodatust suurema 970 miljoni eurose vähenemisega. Kiiresti muutunud intressikeskkond on oluliselt suunanud panga fookuse hoiuste kaasamisele. Kogu aasta vältel oli LHV turuliidrina aktiivne investeerimisteenuste pakkuja. LHV Panga kliendid sooritasid 2022. aastal 490 miljoni euro eest tehinguid Balti aktsiabörsidel, mis moodustas 39% Baltikumi aktsiabörside kogukäibest. Samas suunasid LHV kliendid suunasid aasta jooksul üle 150 miljonit eurot uute investeeringute tegemiseks, millest ligi 50 miljonit eurot suunati Balti ettevõtete aktsiatesse. IV kvartal tõi pangale mitu tunnustust. CVKeskus.ee uuringu kohaselt on 2022. aasta Eesti ihaldusväärseim tööandja just LHV Pank. Samas rahvusvaheline pangandusväljaanne The Banker nimetas LHV Panga neljandat aastat järjest parimaks pangaks Eestis. Aasta lõpuks ületas AS LHV Pank seatud finantsplaani 10,5 miljoni euro võrra. Puhaskasumi ja 32,2% ROE poolest oli aasta viimane kvartal tugevaim panga ajaloos. LHV Varahalduse jaoks oli aastalõpp edukas, kuivõrd aktiivselt juhitud pensionifondid M, L ja XL olid aasta kokkuvõttes ainukesed positiivset tootlust pakkunud II samba fondid Eestis. IV kvartalis olid nende fondide tootlused vastavalt 1,6%, 2,8% ja 4,9%. Üldiselt oli kvartal aktsiaturgudel taas keeruline, mis väljendus passiivselt juhitud fondide madalamas tootluses. Aktiivsete II samba klientide arv püsis kasvutrendis, kvartaliga lisandus ligi 2000 uut klienti. Aasta kokkuvõttes aga vähenes aktiivsete pensioniklientide arv 8000 võrra. Aasta lõpuks oli LHV Varahalduse pensionifondide turuosa mahu järgi enam kui 31%, klientide arvu järgi püsib turuosa 25% juures. Aasta lõpetas LHV Varahaldus väikese kahjumiga. Kuigi äritulud vastasid suuresti finantsplaanile, olid ärikulud mõnevõrra suuremad eelkõige II sambast lahkumiste tõttu. Aktiivselt juhitud pensionifondid 2022. aastal võrdlusindeksi kasvu ei ületanud, mistõttu edukustasu ei teenitud. LHV Kindlustus jätkas ärimahtude kasvatamist, tehes seda kõrgel 97% tasemel klientide rahuloluga kahjukäsitlusega. Stabiilselt suurenevad ka teenitud preemiad. IV kvartalis lisandus tooteportfelli tervisekindlustus. Müügitulemused olid aastalõpule kohaselt head, samas tõusid ka ilmastikuoludest tingituna kindlustuskahjud. Ettevõte jäi finantsplaanile aasta kokkuvõttes alla peamiselt planeeritust suuremate tekkinud kahjude tõttu. Ühendkuningriigis jätkus tegus ettevõtte arendamine, lisaks pangalitsentsi taotlemisele, alustas LHV UK Limited laenutegevusega pärast 21 miljoni eurose laenuportfelli soetamist. Laenud alates suurusest 0,5 miljonit naela on tagatud ärikinnisvara ja muude tagatistega. IV kvartalisse jäi ka grupi kapitaliseerituse tugevdamine läbi 88 miljoni euro mahus MREL kohustuste ning 20 EURm ulatuses täiendavate esmaste omavahendite kaasamise kaudu. Olulise muutusena läks LHV 2023. aastast alates Euroopa Keskpanga otsejärelevalve all. LHV Groupi juhatuse esimehe Madis Toomsalu kommentaar: "Kiire hinnatõusu tagajärjel on Eesti majandus jõudnud langusesse. Sama riskiga peavad arvestama ka eurotsooni riigid ja Ühendkuningriik. Kindlustustunde langus koos suurenevate kuludega ei jäta mõjutamata koduostjate otsuseid või ettevõtete investeerimisplaane. Hinnatõusu pidurdamiseks kasvanud intressimäärad on lõpetanud varasema nullintressimäärade ajastu, mis on olnud anomaalia ja majanduslikes otsustes vale motivatsiooni tekitav. Rahapoliitika karmistumise tõttu peavad pangad taas pingutama hoiuste pärast ning suurenenud on pankade kapitalinõuded. Vastuolulises majanduskeskkonnas on LHV jätkanud Eesti majanduse finantseerimist. Väljastasime 2022. aastal Eesti ettevõtetele laenusid 1,31 miljardit eurot ning eraisikutele 420 miljonit eurot. Seejuures väljastasime 16% kõigist uutest kodulaenudest A-energiaklassi eluasemetele. Alustasime laenutegevusega Ühendkuningriigis. Aasta jooksul töötlesime üle 50 miljoni makse, aasta lõpuks kasutab 34% e-kaupmeestest LHV maksete kogumise teenust." AS-i LHV Group aruanded on saadaval aadressil: https://investor.lhv.ee/aruanded. Uue finantsplaani 2023. aastaks ja viieaastase prognoosi avalikustab LHV Group 14. veebruaril. Kvartali- ja 12 kuu tulemuste tutvustamiseks korraldab LHV Group veebiseminaride keskkonna Zoom kaudu investorkohtumise. Virtuaalne investorkohtumine toimub enne turu avanemist 7. veebruaril kell 9.00. Esitlus tehakse eesti keeles. Palume registreeruda aadressil: https://lhvbank.zoom.us/webinar/register/WN_YX3_I6cEQZac98aB5eJOJw. LHV Group on suurim kodumaine finantskontsern ja kapitali pakkuja Eestis. LHV Groupi peamised tütarettevõtted on LHV Pank, LHV Varahaldus ja LHV Kindlustus. Grupi ettevõtetes töötab üle 880 inimese. LHV pangateenuseid kasutab detsembri lõpu seisuga 378 000 klienti, LHV hallatavatel pensionifondidel on 131 000 aktiivset klienti ja LHV Kindlustusega on kaitstud 150 000 klienti. LHV Ühendkuningriigi filiaal pakub panganduse taristut enam kui 200 rahvusvahelisele finantsteenuste ettevõttele, mille kaudu jõuavad LHV makseteenused klientideni üle terve maailma. Priit Rum LHV kommunikatsioonijuht Telefon: 502 0786 E-post: [email protected] (mailto:[email protected])
Content of announcement in English
Title
Unaudited financial results of LHV Group for Q4 and 12 months of 2022
Message
The consolidated net profit of AS LHV Group in 2022 was EUR 61.4 million, which constitutes EUR 1.2 million more than in 2021 (+2%). The return on equity attributable to the shareholders of LHV Group was 16.4% in 2022. Within the year, AS LHV Pank earned EUR 80.9 million in net profit, including EUR 13.0 million from servicing clients related to the United Kingdom branch. Over the year, the Bank's profit increased by EUR 16.8 million (+26%). In 2022, AS LHV Varahaldus generated EUR 103 thousand in net loss, and AS LHV Kindlustus generated EUR 1.7 million in net loss. The net loss of LHV UK Limited in 2022 due to costs related to the preparation of the banking licence amounted to EUR 11.7 million. In 2022, the consolidated revenues of the Group amounted to EUR 173.5 million, i.e. an increase of 24% compared to 2021. At the same time, the total amount of interest income turned out to be EUR 129.1 million (+33% year-on-year growth) and fee and commission income totalled EUR 44.9 million (+3%). In 2022, the consolidated costs of the Group amounted to EUR 89.6 million in total, referring to an increase of 38% compared to the previous year. By the end of 2022, the consolidated assets of LHV Group stood at EUR 6.14 billion euros, declining by EUR 710 million (-10%) over the year. Over the year, the consolidated deposits of the Group, mainly with financial intermediaries, decreased by EUR 907 million (-16%) to EUR 4.9 billion. In Q4, the consolidated deposits of the Group decreased by EUR 268 million (-5%; EUR -198 million in Q3). At the same time, deposits of regular clients decreased by EUR 27 million over the quarter, while deposits of financial intermediaries fell by EUR 241 million. The consolidated loan portfolio increased by a total of EUR 531 million (+20%) in 2022. During Q4, the volume of loans increased by EUR 114 million to EUR 3.21 billion (+4%; EUR +170 million in Q3). Of the increase in the portfolio, EUR 58 million came from the Bank's retail loans and EUR 34 million from corporate banking loans, while EUR 22 million from loans in the United Kingdom. The aggregate volume of funds managed by LHV decreased by EUR 17 million to EUR 1.33 billion (-1%) in 2022. In Q4, the volume of funds increased by EUR 66 million (+5%; EUR +7 million in Q3). The total annual number of processed payments related to clients who were financial intermediaries was 26.1 million payments, i.e. 1.3 million fewer than in 2021 (-5%). The number of payments by financial intermediaries reached 7.3 million in Q4 (+26% compared to 5.68 million payments in Q3). In Q4 2022, AS LHV Group earned EUR 24.3 million in consolidated net profit. In Q4, AS LHV Pank generated EUR 29.9 million in net profit, of which EUR 5.3 million was from servicing clients related to the United Kingdom branch. AS LHV Varahaldus earned a net profit of EUR 0.5 million for the quarter. AS LHV Kindlustus had a net loss of EUR 0.5 million and LHV UK Limited of EUR 5.1 million in Q4. The Group's return on equity (ROE) in Q4 was 24%. In the last few months of the year, the Bank's interest income increased significantly, while at the same time the loan portfolio remained of high quality, resulting in the best quarter in history for LHV Group and LHV Pank. The Group's net profit increased by EUR 13.6 million (+126%) compared to the previous quarter and by EUR 5.0 million (+26%) compared to a year ago. Income statement, EUR thousand Q4-2022 Q4-2021 12 months 2022 12 months 2021 ------------------------------------------------------------------------------- Net interest income 44 098 28 163 129 111 97 319 ------------------------------------------------------------------------------- Net fee and commission income 11 549 15 252 44 900 43 478 ------------------------------------------------------------------------------- Net gains from financial assets 836 -913 -594 -946 ------------------------------------------------------------------------------- Other income 75 177 126 530 ------------------------------------------------------------------------------- Total revenue 56 558 42 679 173 543 140 381 ------------------------------------------------------------------------------- Staff costs -13 170 -8 638 -46 795 -31 322 ------------------------------------------------------------------------------- Office rent and expenses 263 -453 -2 097 -1 836 ------------------------------------------------------------------------------- IT expenses -2 740 -1 271 -8 151 -4 407 ------------------------------------------------------------------------------- Marketing expenses -1 084 -791 -3 261 -2 506 ------------------------------------------------------------------------------- Other operating expenses -10 149 -7 095 -29 333 -25 113 ------------------------------------------------------------------------------- Total operating expenses -26 881 -18 249 -89 638 -65 185 ------------------------------------------------------------------------------- EBIT 29 677 24 431 83 905 75 197 ------------------------------------------------------------------------------- Earnings before impairment losses 29 677 24 431 83 905 75 197 ------------------------------------------------------------------------------- Impairment losses on loans and advances -251 -1 694 -8 052 -3 948 ------------------------------------------------------------------------------- Income tax -5 112 -3 395 -14 421 -10 986 ------------------------------------------------------------------------------- Net profit 24 315 19 342 61 432 60 263 ------------------------------------------------------------------------------- Profit attributable to non- controlling interest 237 485 1 624 2 002 ------------------------------------------------------------------------------- Profit attributable to share holders of the parent 24 078 18 856 59 808 58 261 Balance sheet, EUR thousand Dec 2022 Sept 2022 Dec 2021 ---------------------------------------------------------------------------- Cash and cash equivalents 2 482 288 2 735 080 3 987 312 ---------------------------------------------------------------------------- Financial assets 373 584 373 749 135 856 ---------------------------------------------------------------------------- Loans granted 3 229 214 3 115 239 2 696 210 ---------------------------------------------------------------------------- Loan impairments -20 642 -20 537 -19 049 ---------------------------------------------------------------------------- Receivables from customers 21 019 12 785 9 746 ---------------------------------------------------------------------------- Other assets 49 539 46 099 34 859 ---------------------------------------------------------------------------- Total assets 6 135 002 6 262 414 6 844 933 ---------------------------------------------------------------------------- Demand deposits 4 644 843 5 053 834 5 648 013 ---------------------------------------------------------------------------- Term deposits 255 672 114 319 159 609 ---------------------------------------------------------------------------- Loans received 586 254 496 239 546 280 ---------------------------------------------------------------------------- Loans received and deposits from customers 5 486 768 5 664 393 6 353 901 ---------------------------------------------------------------------------- Other liabilities 96 541 91 626 55 853 ---------------------------------------------------------------------------- Subordinated loans 130 843 110 652 110 378 ---------------------------------------------------------------------------- Total liabilities 5 714 152 5 866 671 6 520 133 ---------------------------------------------------------------------------- Equity 420 850 395 743 324 801 ---------------------------------------------------------------------------- Minority interest 7 908 7 671 8 384 ---------------------------------------------------------------------------- Total liabilities and equity 6 135 002 6 262 414 6 844 933 For LHV, the end of the year was characterised by an increase in interest income and the continued high quality of the loan portfolio, despite a weakening economic environment. As a result, the Group met its profitability target for the year. Costs higher than the financial plan were mainly due to the recruitment of risk units and the addition of EveryPay to the Group in April. The year was a successful one for LHV Pank. The number of bank clients increased by more than 56,000 (+18%) to 378,000 clients. At the same time, approximately 14,000 bank clients were added in Q4. Client activity in terms of settlement and card usage remained at a good level. However, the clients' demand for credit declined significantly in Q4. In 2022, LHV financed the economy with EUR 1.73 billion in total. During the year, the Bank's home loan portfolio exceeded EUR 1 billion. 16% of all new home loans were for energy class A housing. The quality of the loan portfolio is strong, with only a few clients under monitoring. The decrease in deposits in 2022 was mainly related to a larger-than-expected decrease of EUR 970 million in deposits from financial intermediaries. The rapidly changing interest rate environment has significantly shifted the Bank's focus towards involvement of deposits. Throughout the year, LHV as the market leader was an active provider of investment services. In 2022, the clients of LHV Pank performed transactions worth EUR 490 million on the Baltic stock exchanges, which accounted for 39% of the total turnover of the Baltic stock exchanges. At the same time, the clients of LHV forwarded more than EUR 150 million into new investments during the year, of which nearly EUR 50 million were forwarded into shares in Baltic companies. In Q4, the Bank was recognised several times. According to a survey carried out by CVKeskus.ee, LHV Pank was the most attractive employer in Estonia in 2022. Furthermore, an international banking magazine, The Banker, named LHV Pank the best bank in Estonia for the fourth year in a row. By the end of the year, AS LHV Pank exceeded its financial targets by EUR 10.5 million. In terms of net profit and 32.2% ROE, the last quarter of the year was the strongest in the Bank's history. The end of the year was a successful for LHV Varahaldus, as the actively managed pension funds M, L, and XL were the only II pillar funds in Estonia to offer positive rate of return for the year as a whole. In Q4, the rate of return of these funds were 1.6%, 2.8%, and 4.9%, respectively. In general, the quarter was another challenging one for equity markets, expressed in lower rate of return for passively managed funds. The number of active II pillar clients continued to grow, with nearly 2,000 new clients added over the quarter. However, for the year as a whole, the number of active pension clients decreased by 8,000. By the end of the year, the market share of pension funds of LHV Varahaldus by volume was more than 31%, while its market share by number of clients remained at 25%. LHV Varahaldus ended the year with a minor loss. While operating revenues were broadly in line with the financial plan, operating expenses were somewhat higher, mainly due to the withdrawals from the II pillar. Actively managed pension funds did not outperform the benchmark in 2022, therefore, no performance fee was earned. LHV Kindlustus continued to grow business volumes with a high 97% client satisfaction rate with claims handling. Earned premia are also steadily increasing. Health insurance was added to the product portfolio in Q4. Sales results were good for the end of the year, but weather-related insurance losses also increased. The company fell short of its financial plan for the year as a whole, mainly due to higher than planned losses incurred. In the United Kingdom, in addition to applying for a banking licence, LHV UK Limited continued its active business development and commenced lending activities following the acquisition of a EUR 21 million loan portfolio. Loans starting from GBP 0.5 million are secured by commercial real estate and other collateral. Q4 also saw the strengthening of the Group's capitalisation through the mobilisation of EUR 88 million of MREL liabilities and EUR 20 million of additional core capital. As a major change, LHV went under the direct supervision of the European Central Bank at the beginning of 2023. Comment by Madis Toomsalu, the CEO of LHV Group: "As a result of the rapid price rise, the Estonian economy has entered recession. Eurozone countries and the United Kingdom also face the same risk. The decline in the sense of confidence, accompanied by rising costs, does not leave the decisions of home buyers or business investment plans unaffected. Increased interest rates to curb price rise have ended the previous era of zero interest rates, which has been an anomaly and a false incentive for economic decisions. The tightening of financial policy has put banks under renewed pressure for deposits and imposed increased capital requirements on banks. In a contrasting economic environment, LHV has continued to finance the Estonian economy. In 2022, we provided Estonian companies with corporate loans in the amount of EUR 1.31 billion and private persons with EUR 420 million. At the same time, we issued 16% of all new home loans for energy class A housing. We started our loan activities in the United Kingdom. During the year, we processed more than 50 million payments, and by the end of the year, 34% of e-merchants were using the LHV payment collection service." AS LHV Group reports are available at: https://investor.lhv.ee/en/reports/. LHV Group will disclose the new financial plan for 2023, with a five-year forecast, on 14 February. In order to introduce the quarterly and 12-month results, LHV Group will be organising an investor meeting via the Zoom webinar environment. The virtual investor meeting will take place on 7 February at 9.00, before the market opens. The presentation will be in Estonian. We kindly ask you to register at the following address: https://lhvbank.zoom.us/webinar/register/WN_YX3_I6cEQZac98aB5eJOJw. LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group's key subsidiaries are LHV Pank, LHV Varahaldus, and LHV Kindlustus. The Group employs more than 880 people. As at the end of December, LHV's banking services are being used by 378,000 clients, the pension funds managed by LHV have 131,000 active clients, and LHV Kindlustus protects a total of 150,000 clients. LHV's UK branch offers banking infrastructure to 200 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: [email protected] (mailto:[email protected])