Market announcement

Title

LHV Group Results October 2024

Message

LHV's loan portfolio and other business volumes continued to grow strongly in
October, thereby balancing the impact of faster than planned falling interest
rates on interest income.

The LHV Group's consolidated loan portfolio increased by EUR 105 million in
October. The total volume of deposits increased by EUR 182 million, and the
funds managed by LHV increased by EUR 13 million. Payments related to financial
intermediaries amounted to 6.4 million in October.

Furthermore, AS LHV Group earned EUR 10.2 million in consolidated net profit in
October. Regarding its subsidiaries, AS LHV Pank earned EUR 10.1 million, AS LHV
Varahaldus EUR 233 thousand, AS LHV Kindlustus EUR 107 thousand in net profit.
The net loss of LHV Bank Ltd was EUR 326 thousand.

The number of the clients of LHV Pank increased by 3,800 in October. Both client
activity and a record number of home loans contributed to good results. The
bank's loan portfolio increased by EUR 77 million, with retail loans accounting
for EUR 40 million and corporate loans for EUR 37 million. Credit quality is
strong, while the bank makes forward-looking write-downs.

Over the month, the deposits of LHV Pank increased by EUR 192 million, while
deposits of regular clients grew by EUR 103 million. In order to diversify its
sources of financing, LHV Pank issued covered bonds worth EUR 250 million at the
annual interest rate of 3.09%. Covered bonds are listed on the Dublin Stock
Exchange.

The October net loss of LHV Bank, which operates in the United Kingdom, was due
to the IT costs incurred, but also from lower deposits of financial
intermediaries and the sharing of costs with LHV Pank. The loan portfolio showed
a still strong growth of EUR 29 million, with the outstanding loan amount being
EUR 180 million. The loan-to-deposit ratio became more efficient, as the volume
of platform deposits was reduced by EUR 11 million in October.

The October result of LHV Varahaldus was influenced by more subdued stock
markets. The funds managed by LHV moved in different directions. At the same
time, the growth of the benchmark index of the second pillar pension funds
reached the lowest level of 4.8% in the last 3.5 years. The net profit of
Varahaldus slightly outperformed the financial plan, while business volumes and
the number of clients remained at the planned level. The acceptance of
applications to increase second pillar payments continued, and by the end of
October, 9,000 clients had sent their requests.

For LHV Kindlustus, October was a good month for sales, when 16,800 new
insurance agreements worth of EUR 3.8 million were concluded. Damages were
indemnified in the amount of EUR 2.1 million in October. The increase in loss
events was driven by travel insurance. By the end of October, insurance is ahead
of the financial plan in terms of both business volumes and profitability.

In October, the construction of LHV's new main office began in Tallinn. The
developer of the building is Estconde Invest, and the builder is Merko Ehitus.

At the end of the month, LHV Group started offering subordinated bonds to
finance growth. The offering of subordinated bonds with a 6% interest rate will
continue until 12 November.

By the end of October, LHV Group is EUR 1.4 million below the financial plan
disclosed at the beginning of October in terms of net profit. The financial plan
stands.

To access the reports of AS LHV Group, please visit the website 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 1,200 people. As at the
end of October, LHV's banking services are being used by 448,000 clients, the
pension funds managed by LHV have 116,000 active clients, and LHV Kindlustus
protects a total of 169,000 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 Head of Communications
Phone: +372 502 0786
Email: [email protected] (mailto:[email protected])