Market announcement

Title

LHV Group results in May 2024

Message

May was a productive month for all LHV Group companies, having been affected by
the faster-than planned growth of the loan portfolio.

The consolidated loan portfolio of AS LHV Group increased by EUR 94 million in
May. The volume of consolidated deposits decreased by EUR 51 million over the
month. The volume of the funds managed by LHV decreased by EUR 41 million in
May. A total of 6.1 million payments related to financial intermediaries were
made during the month.

In May, AS LHV Group earned EUR 12.5 million in consolidated net profit. The net
profit of AS LHV Pank was EUR 11.6 million; the net profit of LHV Bank Ltd was
EUR 302 thousand; the net profit of AS LHV Varahaldus was EUR 337 thousand; and
the net profit of AS LHV Kindlustus was EUR 86 thousand.

The number of LHV Pank clients increased by 3,100 in May. The bank's
profitability was increased by EUR 67 million over the month by an increased
loan portfolio, while retail loans increased by EUR 37 million and corporate
loans by EUR 30 million. Credit quality continues to remain at a good level,
which is why the level of discounts was lower than planned. The total volume of
bank deposits decreased by EUR 9 million due to the decrease in deposits of
financial intermediaries and deposit platforms, while the deposits of regular
customers increased by EUR 47 million.

In May, LHV Pank signed a cooperation agreement with the European Investment
Fund, which made it possible to start offering more favourable credit offers to
small and medium-sized enterprises, apartment associations, and those acquiring
electric cars.

The loan portfolio of LHV Bank, which operates in the United Kingdom, also grew
rapidly in May, by a total of EUR 27 million. The Credit Committee has approved
a further EUR 85 million in loan projects. Deposits raised from platforms
increased by EUR 40 million. The Bank's financial intermediary clients are
showing signs of activity and their number is growing. The development of a
retail offer is still ongoing, with the first test payment for the new mobile
bank taking place in May.

All pension funds managed by LHV Varahaldus had a positive rate of return in
May. This also had a positive effect on the company's profits and business
volumes. The income and expenses of Varahaldus corresponded to the financial
plan. By the end of May, more than 5,700 clients of LHV pension funds had
submitted an application for increasing their II pillar contributions.

In May, LHV Kindlustus concluded 13,900 new insurance contracts in the amount of
EUR 2.7 million. Losses were compensated for in the amount of EUR 1.6 million.
The net loss ratio continues on a downward trend. As of the end of the month,
LHV Kindlustus has 239,000 valid policies.

AS LHV Group issued EUR 300 million of unsecured bonds, which are eligible debt
obligations within the meaning of the MREL regulation.

In May, the return on equity held by the group's shareholders was 25.5%. By the
end of the month, LHV Group outperformed the financial plan by EUR 15.1 million
in terms of net profit.

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. The LHV Group's key subsidiaries are LHV Pank, LHV Varahaldus, LHV
Kindlustus, and LHV Bank Limited. The Group employs over 1,100 people. As of
May, LHV's banking services are being used by 435,000 clients, the pension funds
managed by LHV have 119,000 active clients, and LHV Kindlustus protects a total
of 168,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking
licence in the United Kingdom and provides banking services to international
financial technology companies, as well as loans to small and medium-sized
enterprises.



Priit Rum
LHV Communications Manager
Phone: 502 0786
Email: priit.rum@lhv.ee