Market announcement

Title

LHV Group results in April 2025

Message

April was a month of excellent results and strong deposit growth for LHV. The
consolidated loan portfolio of LHV Group grew by EUR 77 million, and the total
amount of deposits increased by EUR 727 million in April. The volume of funds
managed by LHV decreased by EUR 4 million over the month. Payments related to
financial intermediaries amounted to 6.5 million in April.

AS LHV Group earned EUR 10.8 million in net profit in April. By subsidiary, AS
LHV Pank earned a net profit of EUR 10.1 million, LHV Bank Ltd EUR 83 thousand,
AS LHV Kindlustus EUR 319 thousand and AS LHV Varahaldus EUR 68 thousand. The
return on equity attributable to the shareholders of LHV Group was 19.1% and the
financial plan remains.

The number of customers in LHV Pank increased by 2,800 in April. While the loan
portfolio of the bank grew by EUR 53 million, the volume of deposits increased
by EUR 574 million - strong growth compensated for the downturn of the previous
quarter. EUR 41 million of the increase in deposits came from retail customers
and EUR 212 million from corporate customers (partially temporary deposits). In
addition, platform deposits were increased by EUR 120 million. The decrease in
interest income continued in April due to the decline in Euribor. The level of
credit quality was good, and in the coming months there may be an opportunity
for a reduction in impairments.

In April, Moody's Ratings raised the ratings of LHV Pank's covered bond
programme and covered bond ratings to the highest Aaa level. In the annual
survey organised by CV-Online, LHV has been recognised as one of the leading
employers in the financial sector for the fifth consecutive year. In the overall
top-of-mind assessment, LHV ranked second.

The business volumes of LHV Bank operating in the United Kingdom continued to
grow rapidly. The loan portfolio increased by EUR 24 million and the volume of
deposits from the platforms increased by EUR 130 million over the month.
Conditions are set for the upcoming direct raising of deposits. In April, the
bank's profit was impacted by the larger marketing expense for the soon-to-be-
launched campaign for retail banking. In April, the equity capital of LHV Bank
was increased by EUR 12 million and subordinated bonds were issued in the same
amount.

LHV Kindlustus signed new insurance contracts in the amount of EUR 3.7 million
in April. Claims paid totalled EUR 2.1 million and 12,800 new claims were
registered. The loss ratio of major insurance products remained at good level,
ensuring good profitability for LHV Kindlustus.

The profitability of LHV Varahaldus met the financial plan. The month was
characterised by a tense time on the stock markets, while the pension funds
managed by LHV were able to maintain their value. The larger funds, L and XL,
declined by 0.4% and 0.3% respectively over the month, but have delivered year-
to-date returns of 3.4% and 4.1%. Index funds performed more weakly, with LHV
Pensionifond Indeks falling by 4.1% during the month.

In April, AS LHV Group issued EUR 50 million worth of Tier 1 capital, which
ensures sufficient capitalisation for the company's growth and allowed the
repurchase of AT1 bonds issued five years prior. Moody's Investors Service
reviewed LHV Group's credit ratings at the end of the month, leaving them
unchanged. LHV Group's long-term issuer rating is Baa3 with a positive outlook.

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. LHV Group's key subsidiaries are LHV Pank, LHV Varahaldus, LHV
Kindlustus, and LHV Bank Limited. The Group employs over 1,150 people. As at the
end of April, LHV's banking services are being used by 468,000 clients, the
pension funds managed by LHV have 113,000 active clients, and LHV Kindlustus
protects a total of 176,000 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
Communications Manager
Phone: +372 502 0786
Email: [email protected] (mailto:[email protected])