Market announcement

Title

LHV Group results in February 2023

Message

In February, against the background of an uncertain economic environment, the
growth of LHV's loan portfolio and volume of deposits slowed down, but the
quality of the credit portfolio remained at a good level.

The consolidated deposits of AS LHV Group decreased by EUR 42 million over the
month, mainly due to a decline in deposits from payment intermediaries. The
consolidated loan portfolio decreased by EUR 57 million over the month. Although
retail loans increased by EUR 4 million, corporate loans were at a decrease. The
volume of funds managed by LHV remained almost the same in February, only
decreasing by EUR 1 million. In February, 2.8 million payments related to
financial intermediary clients were processed.

In February, AS LHV Group earned EUR 8.9 million in consolidated net profit. AS
LHV Pank earned EUR 11.0 million in net profit, of which EUR 2.5 million was
from servicing clients related to the United Kingdom branch. The net profit of
AS LHV Varahaldus was EUR 65,000. AS LHV Kindlustus generated a net loss of EUR
97,000 in February, and LHV UK Limited generated a net loss of EUR 1.8 million.

For LHV Pank, February was characterised by increased competition in terms of
deposits, and a deceleration in the growth of the loan portfolio. Clients are
moving from demand deposits to fixed-term deposits, facilitated by the increase
of the interest rate to up to 2.5% per year. By the end of February, the volume
of fixed-term deposits increased by EUR 69 million. Although model-based
discounts of the bank's loan portfolio were reduced, reserves were created in a
similar extent, which were reflected as expenses in the financial results of the
month.

In its survey of the field, survey company Dive designated LHV Pank as the bank
with the best service quality in Estonia. In addition, CV-online's Top Employer
survey showed that people see LHV as the most desirable employer in Estonia. The
number of bank clients increased by 4,100 in February.

A significantly more modest month on the markets had an effect on the results of
LHV Varahaldus. Pension funds were slightly in the red in February, with the
decline of the larger funds M, L and XL being 0.5%, 0.6% and 0.8%, respectively.
Pensionifond Indeks decreased by 1.4%, Pensionifond Roheline lost 2.5% in value.
At the same time, the number of pension clients increased by over 600 in
February.

LHV Kindlustus continued to increase the volume of contracts in all main types
of insurance. A total of 11,700 insurance contracts were concluded in February,
with a volume of EUR 2.4 million. Loss events were compensated for in the amount
of EUR 0.8 million. The increase in average insurance premiums is supporting the
improvement of efficiency indicators.

In the United Kingdom, LHV UK Limited continued with active sales of corporate
loans via brokers and direct contacts. Correspondence with supervisory bodies to
obtain a banking licence and the coordination of documents also continued.

In February, LHV published the company's new financial plan and the five-year
financial forecast. The financial plan currently stands. Also, LHV Group has
called the annual general meeting of the shareholders
(https://view.news.eu.nasdaq.com/view?id=b33d78d3e6d53230dce8811cb20621eff&lang=
et), which will be held on 22 March at 13.00 in Tallinn, in the Hilton Tallinn
Park Hotel.

AS LHV Group's reports are available at: https://investor.lhv.ee/en/reports/.

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's companies employ more than 910 people. As at February,
LHV's banking services are being used by 387,000 clients, the pension funds
managed by LHV have 130,000 active clients, and LHV Kindlustus protects a total
of 155,000 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
Communication Manager
Phone: +372 502 0786
E-mail: [email protected] (mailto:[email protected])