Market announcement
AS LHV Group
Category
Half-yearly financial report
Attachments
Date
06.02.2024 08:00:00
Title
LHV Groupi 2023. aasta IV kvartali ja 12 kuu auditeerimata majandustulemused
Message
AS LHV Group teenis rekordiliste ärimahtudega 2023. aastal konsolideeritud puhaskasumina 140,9 miljonit eurot. Nii aasta viimasel kvartalil kui ka aasta lõikes olid kasumlikud kõik grupi tütarettevõtted. LHV Groupi 2023. aasta netotuludeks kujunes 310,5 miljonit eurot ehk 79% rohkem kui aasta varem. Neto intressitulud kasvasid 253,8 miljoni euroni (+97%) ja neto teenustasutulud 54,1 miljoni euroni (+21%). Möödunud aasta konsolideeritud kulud ulatusid kokku 134,3 miljoni euroni (+50%). LHV Groupi 2023. aasta konsolideeritud puhaskasum 140,9 miljonit eurot oli 79,5 miljonit eurot suurem kui 2022. aastal (+129%). Tütarettevõtetest AS LHV Pank teenis 2023. aastal 141,4 miljonit eurot puhaskasumit, UK Bank Limited 5,3 miljonit eurot, AS LHV Varahaldus 1,7 miljonit eurot ning AS LHV Kindlustus 12 kuu peale kokku 305 tuhat eurot puhaskasumit. 2023. aasta lõpu seisuga oli LHV Groupi konsolideeritud varade maht rekordiline 7,13 miljardit eurot, kasvades aastaga 16% ehk 990 miljoni euro võrra. IV kvartalis kasvas varade maht 8%. Grupi konsolideeritud hoiused kasvasid aastaga 830 miljoni euro võrra 5,73 miljardi euroni (+17%). IV kvartalis kasvasid hoiused 415 miljoni euro võrra ehk +8%, kasv tulenes tähtajalistest hoiustest, kuna nõudmiseni hoiuste tase jäi samaks. Seejuures kaasati hoiuseplatvormide kaudu 151 miljonit eurot. LHV konsolideeritud laenuportfell kasvas 2023. aastal 353 miljoni euro võrra 3,56 miljardi euroni (+11%). IV kvartalis kasvas laenuportfell 6% ehk 186 miljoni euro võrra. Ettevõtete laenud kasvasid 137 miljonit eurot ning jaelaenud 49 miljoni euro võrra. LHV poolt juhitud fondide koondmaht suurenes 187 miljoni euro võrra 1,52 miljardi euroni (+14%). Aasta viimane kvartal panustas kasvu 68 miljoni euroga (+5%). Finantsvahendajatest klientidega seotud töödeldud maksete arv oli 2023. aastal 49,5 miljonit makset (+89% võrreldes 26,1 miljoni maksega 2022. aastal). IV kvartalis tehti selliseid makseid 15,9 miljonit ehk viiendiku võrra rohkem kui III kvartalis. 2023. aasta IV kvartalis oli AS-i LHV Group konsolideeritud puhaskasum 32,8 miljonit eurot. See on 6,7 miljoni euro võrra väiksem kui III kvartalis (-17%) ja ületas möödunud aasta IV kvartali tulemust 35%. AS LHV Pank teenis IV kvartalis puhaskasumit 33,6 miljonit eurot, AS LHV Varahaldus 0,5 miljonit eurot ja AS LHV Kindlustus 0,4 miljonit eurot. LHV Bank Limited teenis aasta viimasel kvartalil 3,0 miljonit eurot puhaskasumit. Grupi aktsionäridele kuuluva omakapitali tootlus oli IV kvartalis 24,5%. Grupi konsolideeritud tulud kasvasid IV kvartalis võrreldes eelmise kvartaliga 5% 85,7 miljoni euroni. Neto intressitulusid teeniti 67,7 miljonit eurot ja neto teenustasutulusid 16,3 miljonit eurot. Konsolideeritud tegevuskulud olid IV kvartalis 37,9 miljonit eurot ehk 15% suuremad kui III kvartalis. Kasumiaruanne, tuhandetes eurodes IV kv 2023 IV kv 2022 12 kuud 2023 12 kuud 2022 ------------------------------------------------------------------------------- Neto intressitulu 67 670 44 098 253 819 129 111 ------------------------------------------------------------------------------- Neto teenustasutulu 16 299 11 549 54 145 44 900 ------------------------------------------------------------------------------- Neto finantstulud 480 836 729 -594 ------------------------------------------------------------------------------- Muud tegevustulud 1 243 75 1 764 126 ------------------------------------------------------------------------------- Tulud kokku 85 692 56 558 310 457 173 543 ------------------------------------------------------------------------------- Personalikulu -18 644 -13 170 -66 471 -46 795 ------------------------------------------------------------------------------- Kontorikulud -872 263 -3 949 -2 097 ------------------------------------------------------------------------------- IT kulud -4 067 -2 740 -14 330 -8 151 ------------------------------------------------------------------------------- Turunduskulud -1 117 -1 084 -3 858 -3 261 ------------------------------------------------------------------------------- Muud tegevuskulud -13 151 -10 149 -45 714 -29 333 ------------------------------------------------------------------------------- Kulud kokku -37 851 -26 881 -134 322 -89 638 ------------------------------------------------------------------------------- Ärikasum 47 841 29 677 176 135 83 905 ------------------------------------------------------------------------------- Kasum enne allahindlusi 47 841 29 677 176 135 83 905 ------------------------------------------------------------------------------- Laenude allahindlus -9 430 -251 -11 539 -8 052 ------------------------------------------------------------------------------- Tulumaksukulu -5 642 -5 112 -23 659 -14 421 ------------------------------------------------------------------------------- Puhaskasum 32 769 24 315 140 937 61 432 ------------------------------------------------------------------------------- Vähemusosaluse osa 231 237 1 336 1 624 ------------------------------------------------------------------------------- Emaettevõtte aktsionäride osa kasumist 32 538 24 078 139 601 59 808 Bilanss, tuhandetes eurodes dets.23 sept.23 dets.22 --------------------------------------------------------------------- Raha ja raha ekvivalendid 3 119 394 2 857 964 2 482 288 --------------------------------------------------------------------- Finantsvarad 340 341 269 828 373 584 --------------------------------------------------------------------- Laenud klientidele 3 591 517 3 396 048 3 229 214 --------------------------------------------------------------------- Laenude allahindlus -29 725 -20 466 -20 642 --------------------------------------------------------------------- Nõuded klientide vastu 49 505 36 873 21 019 --------------------------------------------------------------------- Muud varad 54 559 50 924 49 539 --------------------------------------------------------------------- Varad kokku 7 125 590 6 591 170 6 135 002 --------------------------------------------------------------------- Nõudmiseni hoiused 3 785 718 4 644 843 4 644 843 --------------------------------------------------------------------- Tähtajalised hoiused 1 945 287 671 361 255 672 --------------------------------------------------------------------- Saadud laenud 563 634 461 635 586 254 --------------------------------------------------------------------- Võlgnevused klientidele 6 294 639 5 777 839 5 486 768 --------------------------------------------------------------------- Muud kohustused 147 934 124 237 96 541 --------------------------------------------------------------------- Allutatud laenud 126 652 166 848 130 843 --------------------------------------------------------------------- Kohustused kokku 6 569 225 6 068 924 5 714 152 --------------------------------------------------------------------- Omakapital 556 365 522 246 420 850 --------------------------------------------------------------------- sh vähemusosaluse osa 7 937 7 706 7 908 --------------------------------------------------------------------- Kohustused ja omakapital kokku 7 125 590 6 591 170 6 135 002 Aasta lõpu tulemused olid LHV jaoks klientide aktiivsuse toel tugevad, kuid langev majandus ja nõrgenev kindlustunne suunasid konservatiivsusele. Endiselt domineerivad intressitulud, kuid üha rohkem tuleb arvestada kasvavate intressikuludega, samas näitab kasvu ka teenustasutulu. Aasta lõpuks täitis LHV finantsplaani väikese varuga. LHV Panga klientide arv kasvas IV kvartalis enam kui 10 000 võrra 417 tuhande kliendini. Aastaga suurenes panga klientide arv 39 500 võrra ehk enam kui 10%. Klientide aktiivsus igapäevapanganduse osas jäi heale tasemele, laenunõudlus on mõnevõrra kasvamas. Kliendid kasutasid aktiivselt investeerimisteenuseid. Pank laiendas kvartali lõpus soodsat pakkumist energiatõhusatele kodudele. LHV Pank valiti CVKeskus.ee uuringus Eesti ihaldusväärseimaks tööandjaks. Panga üldises fookuses oli hoiuste kaasamine - tavaklientide hoiused kasvasid aasta viimase kolme kuuga 153 miljoni euro võrra. Kliendid eelistavad järjest rohkem tähtajalisi hoiuseid, mille osakaal on kasvanud kolmandikuni kõigist hoiustest. Finantsvahendajate hoiuste osas jätkus volatiilsus. 2023. aasta jooksul finantseeris LHV Pank väljastatud laenudega Eesti majandust kokku 1,49 miljardi euroga. Sellest 321 miljonit eurot väljastati eraklientidele ja 1169 miljonit eurot ettevõtetele. Laenude väljastamine on jätkunud kergelt kasvavas tempos, aga klientide otsustusprotsessid on pikenenud. Laenuportfelli kvaliteet püsib plaanitust tugevamana, kuid makromajanduse trendide tõttu suurendas pank ettevaatavatavalt allahindlusi - IV kvartalis tehti neid summas 9,6 miljonit eurot. Intressitulule lisaks teenis pank neljandas kvartalis varasemast rohkem teenustasutulusid, mida toetasid paar suuremat investeerimispanganduse tehingut. Varahalduse jaoks iseloomustas aasta lõppu pensionifondide mahu kasv, mida toetas tugev kvartal aktsiaturgudel. LHV pensionifondide M, L ja XL tootluseks kujunes kvartalis vastavalt 2,8%, 2,2% ja 2,8%. Konservatiivsemate fondide XS ja S tootlus oli 3,7% ja 3,6%. Pensionifond Indeks tõusis 5,0%, pensionifond Roheline aga langes 0,9%. LHV turuosa pensionifondide mahu järgi oli aasta lõpus ligikaudu 30%, klientide arvu järgi 24%. Aktiivsete klientide arv IV kvartalis oluliselt ei muutunud. Varahalduse fondide maht, finantstulu ja kasum jäid finantsplaanile alla oodatust tagasihoidlikumate tootluste tõttu. Kulusid kasvatasid viimases kvartalis arendused ning valmistumine seadusemuudatuseks, mis võimaldab pensionikogujatel suunata II sambasse senisest suuremaid sissemakseid. Alates 1. jaanuarist alustas LHV koos teiste fondihalduritega võimaluse tutvustamist ja avalduste vastuvõttu. LHV Kindlustuse jaoks lõppes aasta stabiilse kasvu ja kasumlikkusega kvartaliga. Ettevõtte tulud jätkasid kasvutrendis ja kooskõlas finantsplaaniga, samal ajal kui brutopreemiad jäid plaanitule veidi alla. IV kvartali lõpu seisuga omasid kliendid 229 000 kehtivat kindlustuslepingut, kvartali jooksul registreeriti 19 300 uut kahjujuhtumit. Kindlustus täitis plaani, lõpetades aasta kokkuvõttes kasumiga. LHV Bank Limited jätkas ärimahtude kasvatamist, käivitades edukalt hoiuste kaasamise hoiuseplatvormide kaudu, tõstes hoiuste mahu 239 miljoni euroni, ning suurendades laenuportfelli 79 miljoni euroni. Ühtlasi olid Banking Services segmendi maksete mahud kvartali lõikes ajalooliselt kõrgeimal tasemel. Kuivõrd Ühendkuningriigi pank on nüüd iseseisvalt rahastatud, tagastas Bank LHV Pangale varasemalt saadud laenu summas 71 miljonit eurot. Nii intressi- kui ka teenustasutulude kasv oli aasta lõpus planeeritust kiirem. Arendustegevustest alustas Bank ettevalmistustega mobiilipanga turule toomiseks ning tugevdas meeskonda mitme olulise valdkonna juhiga. Võrreldes finantsplaaniga olid Banki kulud suuremad palgakuludest ning ühekordsetest IT- ja juriidilistest kuludest tulenevalt. LHV Groupi aastaseks kulu/tulu suhteks kujunes hea 43,3%, omakapitali tootluseks 29,0%. Grupi likviidsus ja kapitaliseeritus püsivad tugevad, kuid arvestades makromajanduslikku olukorda, on tähelepaneliku jälgimise all. IV kvartalis emiteeris LHV Group 100 miljoni euro eest MREL võlakirju. 2024. aasta finantsplaani ja viieaastase prognoosi avalikustab LHV Group 13. veebruaril. LHV Groupi juhatuse esimehe Madis Toomsalu kommentaar: "2023. aastal läks LHV-l hästi. Kasvavad ärimahud ja tõusvad intressimäärad on tulemusi tugevdanud, kuid üldine majanduslangus on teinud planeerimise keeruliseks. Intressimäärad on tsüklilised ning väga kiirele tõusule võib järgneda kiire langus. Hea tulemuse saavutamine on nõudnud tugevat pühendumist ning olulisi strateegilisi otsuseid. Viimase 12 kuu jooksul on lisaks igapäevastele tegemistele nõudnud meilt eraldi tähelepanu edukas LHV Banki käivitamine Ühendkuningriigis, kindlustusäri kasvatamine ja üleminek Euroopa Keskpanga otsese järelevalve alla. Kavatseme ambitsioonikate eesmärkidega ja strateegiliste tegevustega jätkata, et meie äritegevus püsiks efektiivne ja jätkusuutlik ka järgnevatel aastatel. Suur osa efektiivsuse suurendamisest peitub tehnoloogilise võimekuse suurendamises, millele oleme nii lõppenud kvartalil kui ka edaspidiseks pannud olulise rõhu. Läheme 2024. aastale vastu tugevana ja meile omase enesekindlusega. Häid tulemusi saavutame tugevate eelduste najal - rahulolevad töötajad, kliendid ja aktsionärid." AS-i LHV Group aruanded on saadaval aadressil: https://investor.lhv.ee/aruanded (https://www.globenewswire.com/Tracker?data=5OqXDVP_- DuP9JKTibXVFezVBUJtFFKN2Z0PkC- W2PC19kFpXtnMcOiWu0LWrTKE6sCnZ_eMv0VfmVuQ1X8I04HSoAvWJwXt- oFjw4otBnSRCPgUE1aWDIq-RauqRQUd). Majandustulemuste tutvustamiseks korraldab LHV Group veebiseminaride keskkonna Zoom kaudu investorkohtumise. Virtuaalne investorkohtumine toimub enne turu avanemist 6. veebruaril kell 9.00. Esitlus tehakse eesti keeles. Palume registreeruda aadressil: https://lhvbank.zoom.us/webinar/register/WN_g- UYp3tqThi2-L7scsxdMw# (https://lhvbank.zoom.us/webinar/register/WN_g-UYp3tqThi2- L7scsxdMw). LHV Group on suurim kodumaine finantskontsern ja kapitali pakkuja Eestis. LHV Groupi peamised tütarettevõtted on LHV Pank, LHV Varahaldus, LHV Kindlustus ja LHV Bank Limited. LHV ettevõtetes töötab üle 1060 inimese. LHV pangateenuseid kasutab detsembri lõpu seisuga 417 000 klienti, LHV hallatavatel pensionifondidel on 123 000 aktiivset klienti ja LHV kindlustusega on kaitstud 161 000 klienti. LHV Groupi tütarettevõte LHV Bank omab Ühendkuningriigi pangalitsentsi ning pakub pangateenuseid rahvusvahelistele finantstehnoloogia ettevõtetele ja laenusid väikese ja keskmise suurusega ettevõtetele.? Priit Rum LHV kommunikatsioonijuht Telefon: 502 0786 E-post: priit.rum@lhv.ee
Title
LHV Group’s unaudited financial results for Q4 and 12 months of 2023
Message
With record business volumes, AS LHV Group generated a consolidated net profit of EUR 140.9 million in 2023. All of the Group's subsidiaries were profitable, both in the last quarter and for the year as a whole. LHV Group's consolidated net income in 2023 was EUR 310.5 million, which is 79% more than a year earlier. Net interest income increased to EUR 253.8 million (+97%) and net fee and commission income to EUR 54.1 million (+21%). Last year's consolidated expenditure totalled EUR 134.3 million (+50%). LHV Group's consolidated net profit of EUR 140.9 million in 2023 was EUR 79.5 million higher than in 2022 (+129%). Among its subsidiaries, AS LHV Pank earned EUR 141.4 million in net profit in 2023, UK Bank Limited EUR 5.3 million, AS LHV Varahaldus EUR 1.7 million, and AS LHV Kindlustus earned a total of EUR 305 thousand in net profit over 12 months. As of the end of 2023, the volume of LHV Group's consolidated assets stood at a record EUR 7.13 billion, growing by 16% or EUR 990 million over the year. In Q4, the volume of assets increased by 8%. The Group's consolidated deposits increased by EUR 830 million over the year to EUR 5.73 billion (+17%). In Q4, deposits increased by EUR 415 million, or +8%; the increase was due to term deposits, as the level of demand deposits remained the same. At the same time, EUR 151 million was raised through deposit platforms. LHV's consolidated loan portfolio increased by EUR 353 million to EUR 3.56 billion (+11%) in 2023. In Q4, the loan portfolio grew by 6%, or EUR 186 million. Corporate loans increased by EUR 137 million and retail loans by EUR 49 million. The aggregate volume of funds managed by LHV increased by EUR 187 million to EUR 1.52 billion (+14%). The last quarter of the year contributed EUR 68 million to growth (+5%). The number of processed payments related to clients that were financial intermediaries amounted to 49.5 million payments in 2023 (+89% compared to 26.1 million payments in 2022). 15.9 million of such payments were made in Q4, which is one fifth more than in Q3. In Q4 2023, the consolidated net profit of AS LHV Group was EUR 32.8 million. This is EUR 6.7 million less than in Q3 (-17%), however, it exceeded Q4 of last year by 35%. AS LHV Pank earned EUR 33.6 million in net profit in Q4, AS LHV Varahaldus EUR 0.5 million, and AS LHV Kindlustus EUR 0.4 million. LHV Bank Limited earned EUR 3.0 million in net profit in the last quarter of the year. The return on equity owned by the Group's shareholders was 24.5% in Q4. The Group's consolidated revenue increased by 5% in Q4 compared to the previous quarter, namely to EUR 85.7 million. Net interest income was earned in the amount of EUR 67.7 million and net service fee and commission income in the amount of EUR 16.3 million. Consolidated operating expenses were EUR 37.9 million in Q4, which is 15% higher than in Q3. Income statement, EUR thousand Q4-2023 Q4-2022 12 months 2023 12 months 2022 ------------------------------------------------------------------------------- Net interest income 67 670 44 098 253 819 129 111 ------------------------------------------------------------------------------- Net fee and commission income 16 299 11 549 54 145 44 900 ------------------------------------------------------------------------------- Net gains from financial assets 480 836 729 -594 ------------------------------------------------------------------------------- Other income 1 243 75 1 764 126 ------------------------------------------------------------------------------- Total revenue 85 692 56 558 310 457 173 543 ------------------------------------------------------------------------------- Staff costs -18 644 -13 170 -66 471 -46 795 ------------------------------------------------------------------------------- Office rent and expenses -872 263 -3 949 -2 097 ------------------------------------------------------------------------------- IT expenses -4 067 -2 740 -14 330 -8 151 ------------------------------------------------------------------------------- Marketing expenses -1 117 -1 084 -3 858 -3 261 ------------------------------------------------------------------------------- Other operating expenses -13 151 -10 149 -45 714 -29 333 ------------------------------------------------------------------------------- Total operating expenses -37 851 -26 881 -134 322 -89 638 ------------------------------------------------------------------------------- EBIT 47 841 29 677 176 135 83 905 ------------------------------------------------------------------------------- Earnings before impairment losses 47 841 29 677 176 135 83 905 ------------------------------------------------------------------------------- Impairment losses on loans and advances -9 430 -251 -11 539 -8 052 ------------------------------------------------------------------------------- Income tax -5 642 -5 112 -23 659 -14 421 ------------------------------------------------------------------------------- Net profit 32 769 24 315 140 937 61 432 ------------------------------------------------------------------------------- Profit attributable to non- controlling interest 231 237 1 336 1 624 ------------------------------------------------------------------------------- Profit attributable to shareholders of the parent 32 538 24 078 139 601 59 808 Balance sheet, EUR thousand Dec 2023 Sept 2023 Dec 2022 ---------------------------------------------------------------------------- Cash and cash equivalents 3 119 394 2 857 964 2 482 288 ---------------------------------------------------------------------------- Financial assets 340 341 269 828 373 584 ---------------------------------------------------------------------------- Loans granted 3 591 517 3 396 048 3 229 214 ---------------------------------------------------------------------------- Loan impairments -29 725 -20 466 -20 642 ---------------------------------------------------------------------------- Receivables from customers 49 505 36 873 21 019 ---------------------------------------------------------------------------- Other assets 54 559 50 924 49 539 ---------------------------------------------------------------------------- Total assets 7 125 590 6 591 170 6 135 002 ---------------------------------------------------------------------------- Demand deposits 3 785 718 4 644 843 4 644 843 ---------------------------------------------------------------------------- Term deposits 1 945 287 671 361 255 672 ---------------------------------------------------------------------------- Loans received 563 634 461 635 586 254 ---------------------------------------------------------------------------- Loans received and deposits from customers 6 294 639 5 777 839 5 486 768 ---------------------------------------------------------------------------- Other liabilities 147 934 124 237 96 541 ---------------------------------------------------------------------------- Subordinated loans 126 652 166 848 130 843 ---------------------------------------------------------------------------- Total liabilities 6 569 225 6 068 924 5 714 152 ---------------------------------------------------------------------------- Equity 556 365 522 246 420 850 ---------------------------------------------------------------------------- Minority interest 7 937 7 706 7 908 ---------------------------------------------------------------------------- Total liabilities and equity 7 125 590 6 591 170 6 135 002 The results at the end of the year were strong for LHV, supported by client activity, but the declining economy and weakening confidence led to prudence. Interest income still dominates, but increasing interest expenses need to be taken into account, while service fee and commission income is also showing growth. By the end of the year, LHV fulfilled the financial plan by a small margin. The number of clients of LHV Pank increased by more than 10,000 to 417 thousand clients in Q4. Over the year, the number of the bank's clients increased by 39,500, or more than 10%. Client activity in everyday banking remained at a good level, and demand for loans is growing somewhat. Clients actively used investment services. At the end of the quarter, the bank expanded its favourable home loan offer to energy-efficient homes. LHV Pank was chosen as the most desirable employer in Estonia in the CVKeskus.ee survey. The bank's general focus was on taking deposits - the deposits of regular clients increased by EUR 153 million in the last three months of the year. Clients increasingly prefer term deposits, the share of which has grown to a third of all deposits. Volatility continued on the deposits of financial intermediaries. During 2023, LHV Bank financed the Estonian economy with a total of EUR 1.49 billion in issued loans. Of this, EUR 321 million was issued to private customers and EUR 1,169 million to companies. Loan originations have continued at a slightly increasing pace, but client decision-making processes have lengthened. The quality of the loan portfolio remains stronger than planned, but due to macroeconomic trends, the bank increased its write-downs in a forward- looking manner, with EUR 9.6 million in Q4. In addition to interest income, the bank earned more service fee and commission income in Q4 than before, which was supported by a couple of larger investment banking transactions. For LHV Varahaldus, the end of the year was marked by an increase in the volume of pension funds, which was supported by a strong quarter on the stock markets. The rate of return of LHV's pension funds M, L, and XL in the quarter was 2.8%, 2.2%, and 2.8%, respectively. The rate of return of the more conservative funds XS and S were 3.7% and 3.6%, respectively. Pensionifond Indeks increased by 5.0%, while Pensionifond Roheline fell by 0.9%. LHV's market share in terms of the volume of pension funds at the end of the year was approximately 30%, and 24% according to the number of clients. The number of active clients did not change significantly in Q4. The volume, financial income, and profit of LHV Varahaldus fell short of the financial plan due to more modest rates of return than expected. Expenses were increased in the last quarter by developments and preparations for an amendment to the law, which will allow pension savers to direct larger contributions to the II pillar than before. As of 1 January, LHV and other fund managers started introducing the opportunity and accepting applications. For LHV Kindlustus, the year ended with a quarter of stable growth and profitability. The company's revenue continued on a growth trend and was in line with the financial plan, while gross premiums remained slightly below what was planned. As of the end of Q4, clients owned 229,000 valid insurance contracts, and 19,300 new loss events were registered during the quarter. Kindlustus fulfilled the plan, ending the year with a profit overall. LHV Bank Limited continued to grow its business volumes, successfully launching deposit-taking through deposit platforms, increasing the volume of deposits to EUR 239 million, and increasing its loan portfolio to EUR 79 million. At the same time, the volume of payments in the Banking Services segment was at its highest level in history on a quarterly basis. As the bank in the United Kingdom is now independently financed, the Bank has repaid LHV Pank the loan previously received in the amount of EUR 71 million. The growth in both interest and service fee and commission income was faster than planned at the end of the year. Of the development activities, the Bank started preparations for the launch of the mobile bank and strengthened the team with leaders of several important divisions. Compared to the financial plan, the Bank's expenses were higher due to salary costs and one-time IT and legal costs. LHV Group's annual cost/income ratio was a good 43.3%, while the return on equity was 29.0%. The Group's liquidity and capitalisation remain strong, but given the macroeconomic situation, it is under close monitoring. In Q4, LHV Group issued MREL bonds for EUR 100 million. LHV Group will publish its financial plan and five-year forecast for 2024 on 13 February. Comment by Madis Toomsalu, Chairman of the Management Board at LHV Group: "In 2023, LHV did well. Increasing business volumes and rising interest rates have strengthened the results, but the general economic downturn has made planning difficult. Interest rates are cyclical and a very rapid rise can be followed by a rapid decline. Achieving a good result has required a strong commitment and important strategic decisions. Over the past 12 months, in addition to our daily activities, the successful launch of LHV Bank in the United Kingdom, the growth of the insurance business, and the transition to the direct supervision of the European Central Bank have required us to pay special attention. We intend to continue with ambitious goals and strategic activities so that our business activities will remain efficient and sustainable in the years to come. A large part of increasing efficiency lies in increasing technological capabilities, on which we have placed a significant emphasis both in the last quarter and in the future. We are going to face 2024 with the strength and confidence that is characteristic of us. We achieve good results on the basis of strong prerequisites - satisfied employees, clients and shareholders." To access the reports of AS LHV Group, please visit the website at https://investor.lhv.ee/en/reports. In order to introduce the financial results, LHV Group will organise an investor meeting via the Zoom webinar environment. The virtual investor meeting will take place on 6 February at 9.00, before the market opens. The presentation will be in Estonian. Please register at: https://lhvbank.zoom.us/webinar/register/WN_g- UYp3tqThi2-L7scsxdMw# (https://lhvbank.zoom.us/webinar/register/WN_g-UYp3tqThi2- L7scsxdMw). LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group's key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. LHV employs more than 1,060 people. As of the end of December, LHV's banking services are being used by 417,000 clients, the pension funds managed by LHV have 123,000 active clients, and LHV Kindlustus protects a total of 161,000 clients. LHV Bank, a subsidiary of LHV Group, holds a banking licence in the UK and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises. Priit Rum Communications Manager Phone: +372 502 0786 Email: priit.rum@lhv.ee (mailto:priit.rum@lhv.ee)