Market announcement

AS LHV Group

LEI code

529900JG015JC10LED24

Size of the entity

Large group

Economic activities

Financial and Insurance Activities

Industry sector(s)

Credit institution

Country of registered office

Estonia

General information

Categories

Management interim statement or quarterly financial report

Unique data record identifier

6318

Submission date and time

24.10.2017 08:00:00

Content of announcement in Estonian

Title

LHV Groupi 2017. aasta III kvartali ja 9 kuu auditeerimata majandustulemused

Message

LHV teenis üheksa kuuga 15,4 miljonit eurot puhaskasumit
Kolmandas kvartalis teenis AS LHV Group 5,5 miljonit eurot konsolideeritud
puhaskasumit: panga kasum oli 4,0 miljonit eurot, varahalduse kasum 1,7
miljonit eurot ja Leedu äriüksuse Mokilizingase kasum 0,1 miljonit eurot. LHV
Groupi aktsionäridele kuuluva omakapitali tootlus oli kolmandas kvartalis
18,1%. 

Konsolideerimisgrupi kasum oli kolmandas kvartalis 0,6 miljoni euro võrra
suurem kui II kvartalis ja 0,3 miljonit eurot väiksem kui aasta tagasi. 

Grupi konsolideeritud laenuportfell kasvas teises kvartalis 49 miljoni euro
võrra (+8%; +60 miljonit eurot II kvartalis) 656 miljoni euroni.
Konsolideeritud hoiused kasvasid rekordilised 260 miljonit eurot (+26%; +210
miljonit eurot II kvartalis) 1268 miljoni euroni. Hoiuste kasvu peamine allikas
oli üks maksevahendajast klient, kelle puhul on ootuspärane ka hoiuste
vähenemise võimalus lähiajal. 

LHV poolt juhitud fondide maht kasvas kvartaliga 33 miljoni euro võrra (+3%;
+14 miljonit eurot II kvartalis), ulatudes 1067 miljoni euroni. Laenude
allahindluse kulu oli III kvartalis 1,3 miljonit eurot (1,8 miljonit eurot II
kvartalis). 

AS-i LHV Group 2017. aasta esimese üheksa kuu konsolideeritud kasum oli 15,4
miljonit eurot: pank teenis sellest 11,6 miljonit eurot, varahaldus 4,0
miljonit eurot ja Leedu äriüksus 0,6 miljonit eurot. Üheksa kuu kasum on 1,2
miljonit eurot suurem kui eelmisel aastal. 

LHV Groupi juhataja Madis Toomsalu pidas ettevõtte kolmandat kvartalit tugevaks:
"Suutsime kvartali jooksul kinnistada teesi, et Eestis on meil ruumi kasvada
mitu korda. Panga klientide arv suurenes ligikaudu 5 000 ning laenuportfell 48
miljoni euro võrra. LHV tugevaid alustrende on toetamas ka Eesti
majanduskeskkond. Hea on see, et pikaajalisest potentsiaalile alla jäänud
aktiivsest vindumise faasist on Eesti välja jõudnud tugeva majanduskasvu
perioodi. Krediiditurg on püsinud tugevana. 

Samas näeme ennast üha enam ettevõttena, kes soovib hakkama saada tugevas
rahvusvahelises konkurentsis ja leida uusi ärivõimalusi muutuvas maailmas. LHV
eelistab käia muutuste esirinnas ning seepärast oleme tegemas jätkuvaid
pingutusi laienemaks Ühendkuningriigi turule. LHV Panga filiaali avamine
Londonis aitab paremini teenindada sealseid finantstehnoloogia ettevõtteid.
Meie roll on olla neile vahelüliks tehnoloogiaettevõtete ja panganduse
infrastruktuuri vahel. 

Panga tegemistest sooviks eraldi esile tõsta videotuvastuse pakkumise
suhteliselt head algust. Muu hulgas võiks videotuvastuse võimalus sobida ka
nende linnade klientidele, kus oleme juba kohal pangaautomaadi ja kodulaenu
võimekusega nagu näiteks Pärnu, Viljandi ja Rakvere. Panustasime ka
elektrooniliste teenuste mugavamaks muutmisele – laenulepingud on nüüd nii
internetipangas kui ka mobiilipangas. Panga kolmandat kvartalit iseloomustas
jätkuv tugev klientide aktiivsus ning laenude ja hoiuste kasv. Kvartaliga
kasvas uute klientide hulk 5000 võrra ja klientide koguarv ületas 128 000. LHV
roll Eesti panganduses on kasvanud – Eesti Pank on indikeerinud et 2018. aasta
algusest saab pank üheks neljast süsteemselt olulisest pangast Eestis ja
hädaolukorra seaduse järgi neljandaks elutähtsat teenust osutavaks pangaks
Eestis. 

LHV pensionifondid eristuvad konkurentidest aktiivse juhtimise poolest, mis on
väljendunud viimaste kvartalite suuremates börsivälistes investeeringutes
Eestisse. Aktiivne juhtimine tähendab muu hulgas, et investeerimisel on meie
fookus uutel projektidel, mitte olemasoleva vara ostmisel. Erinevus
investeerimisstrateegias tähendab ka erinevust tootlustes. Usume, et kõrgelt
hinnastatud väärtpaberiturgude taustal on meie valitud investeerimisstrateegia
klientide pikaajalistes huvides. 

II samba aktiivsete klientide arv suurenes kvartaliga 0,3 tuhande võrra (II
kvartalis vähenes 0,9 tuhande võrra) 178 000-ni. Kvartali jooksul toimusid
mitmed fonde puudutavad muudatused: ühendati kaks kolmanda samba fondi,
muutusid kahe fondi tingimused ja depoopank ning teavitasime aktiivselt juhitud
pensionifondide tingimuste muutumisest alates 2018. 

Meie Leedu äriüksuse Mokilizingase kasum oli III kvartalis 0,1 miljonit eurot, 
mis on 0,1 miljoni euro võrra vähem kui eelmises kvartalis.
Finantseerimisportfell suurenes kvartaliga 4,2 miljoni euro võrra ja oli
kvartali lõpuks 38 miljonit. Portfelli krediidikvaliteet püsib stabiilsena. 

LHV väljavaade ülejäänud aastaks on hea. Soovime kasvada kõigis oma
ärisuundades. Üheksa kuu kokkuvõttes edestame veebruaris avaldatud
finantsplaani puhaskasumi osas 0,3 miljoni euro võrra, 21,8 miljoni euro
suurust kasumiprognoosi me hetkel muutmas pole." 



Kasumiaruanne, EURt                    III kv     II kv     9 kuud     9 kuud   
                                        2017       2017      2017       2016    
--------------------------------------------------------------------------------
Neto intressitulu                          8 863     8 607     25 634     21 714
--------------------------------------------------------------------------------
Neto teenustasutulu                        5 695     5 213     16 193     13 339
--------------------------------------------------------------------------------
Neto finantstulud                             74       930      1 400      1 794
--------------------------------------------------------------------------------
Muud tegevustulud                            -36       -84       -143         95
--------------------------------------------------------------------------------
Tulud kokku                               14 596    14 665     43 084     36 942
--------------------------------------------------------------------------------
Personalikulu                             -3 508    -3 621    -10 719     -9 778
--------------------------------------------------------------------------------
Kontorikulud                                -406      -374     -1 217     -1 113
--------------------------------------------------------------------------------
IT kulud                                    -466      -438     -1 320     -1 286
--------------------------------------------------------------------------------
Turunduskulud                             -1 281    -1 118     -3 505     -3 098
--------------------------------------------------------------------------------
Muud tegevuskulud                         -2 177    -2 376     -6 698     -5 812
--------------------------------------------------------------------------------
Kulud kokku                               -7 838    -7 926    -23 459    -21 087
--------------------------------------------------------------------------------
Ärikasum                                   6 759     6 739     19 625     15 856
--------------------------------------------------------------------------------
Kasum enne allahindlusi                    6 759     6 739     19 625     15 856
--------------------------------------------------------------------------------
Laenude allahindlus                       -1 261    -1 839     -3 193     -1 497
--------------------------------------------------------------------------------
Tulumaksukulu                                -42       -21     -1 046       -201
--------------------------------------------------------------------------------
Aruandeperioodi puhaskasum                 5 456     4 878     15 385     14 159
 jätkuvatelt tegevustelt                                                        
--------------------------------------------------------------------------------
Kasum/-kahjum lõpetatud tegevustelt            0         0          0          0
--------------------------------------------------------------------------------
Puhaskasum                                 5 456     4 878     15 385     14 159
--------------------------------------------------------------------------------
Vähemusosaluse osa                           429       458      1 468      1 240
--------------------------------------------------------------------------------
Emaettevõtte aktsionäride osa              4 420     4 420      8 890      7 574
 kasumist                                                                       
--------------------------------------------------------------------------------



Bilanss, EURt                   sept.17    juuni.17   sept.16
-------------------------------------------------------------
Raha ja raha ekvivalendid         696 392    488 630  315 316
-------------------------------------------------------------
Finantsvarad                       61 583     60 676   77 681
-------------------------------------------------------------
Laenud klientidele                663 941    613 366  483 597
-------------------------------------------------------------
Laenude allahindlus                -8 409     -7 314   -5 297
-------------------------------------------------------------
Nõuded klientide vastu              8 745      4 352    2 739
-------------------------------------------------------------
Muud varad                         12 933     11 551   11 850
-------------------------------------------------------------
Varad kokku                     1 435 184  1 171 261  885 886
-------------------------------------------------------------
Nõudmiseni hoiused              1 144 114    868 348  578 488
-------------------------------------------------------------
Tähtajalised hoiused              124 036    139 706  162 465
-------------------------------------------------------------
Saadud laenud                          16        190      836
-------------------------------------------------------------
Võlgnevused klientidele         1 268 166  1 008 244  741 789
-------------------------------------------------------------
Muud kohustused                    15 214     17 749   11 372
-------------------------------------------------------------
Allutatud laenud                   30 900     30 900   30 900
-------------------------------------------------------------
Kohustused kokku                1 314 279  1 056 893  784 061
-------------------------------------------------------------
Omakapital                        120 905    114 368  101 824
-------------------------------------------------------------
sh vähemusosaluse osa               6 787      6 358    4 481
-------------------------------------------------------------
Kohustused ja omakapital kokku  1 435 184  1 171 261  885 886
-------------------------------------------------------------



AS-i LHV Group aruanded on saadaval aadressil:
https://investor.lhv.ee/et/aruanded/. 

LHV Group korraldab III kvartali majandustulemuste tutvustamiseks
investorkohtumise, mis leiab aset 24. oktoobril 2017 algusega kell 18 LHV
Tallinna kliendikontoris (Tartu mnt 2, I korrus). Osalemiseks palume
registreeruda aadressil https://fp.lhv.ee/academy/464. 

LHV Group on suurim kodumaine finantskontsern ja kapitali pakkuja Eestis. LHV
Groupi peamised tütarettevõtted on LHV Pank ja LHV Varahaldus. LHV-s töötab
ligi 350 inimest ja LHV pangateenuseid kasutab üle 128 000 kliendi. LHV
hallatavatel pensionifondidel on rohkem kui 178 000 aktiivset klienti. 


         Priit Rum
         LHV kommunikatsioonijuht
         Telefon: 502 0786
         E-post: [email protected]

Content of announcement in English

Title

LHV Group's 2017 third quarter and 9 months unaudited financial results

Message

In nine months, LHV earned a net profit of EUR 15.4 million
AS LHV Group earned a consolidated net profit of EUR 5.5 million in Q3. The
profit of the bank was EUR 4.0 million, asset management’s profit amounted to
1.7 million and the Lithuanian business unit Mokilizingas earned EUR 0.1
million. LHV Group's return on equity belonging to the shareholders was 18.1%
in Q3. 

The group’s profit was EUR 0.6 million higher than in Q2 and EUR 0.3 million
lower than a year ago in Q3 of 2016. 

The group’s consolidated loan portfolio grew by EUR 49 million (+8%; +EUR 60
million in Q2) and reached EUR 656 million. The consolidated deposits grew by a
record EUR 260 million (+26%; +EUR 210 million in Q2) reaching EUR 1,268
million. The main source of deposit growth was one payment service provider,
the possibility of a decrease in the client’s deposit in the near future is
likely. 

During the quarter the volume of funds managed by LHV rose by EUR 33 million
(+3%; EUR 14 million in Q2) and reached EUR 1,067 million. In Q2, the cost of
the discount of loans was EUR 1.3 million (EUR 1.8 million in Q2). 

AS LHV Group posted a nine month consolidated profit of EUR 15.4 million. The
bank earned a profit of EUR 11.6 million, asset management EUR 4.0 million and
the Lithuanian business unit EUR 0.6 million. The nine month profit exceeds the
results from last year by EUR 1.2 million. 

According to Madis Toomsalu, CEO of LHV Group, the third quarter was a strong
one: 
„We succeeded in proving the hypothesis that there is enough room in Estonia
for LHV to grow multiple times. The Bank's customer base grew by 5,000 and the
loan portfolio by EUR 48 million. LHV's strong underlying trends are also
supported by the Estonian economic environment. Estonia has succeeded in
overcoming the long period of active lethargy, failing to reach its potential,
and moved on to a period of strong economic growth. The credit market has
remained strong. 

At the same time, we see ourselves more and more as a company who wishes to
succeed in tight international competition and seize new business opportunities
in a changing world. LHV prefers to be one of the leaders of change. We are
therefore making a continual effort to expand to the British market. Opening an
LHV Bank branch in London will help us to better serve our customers in the
financial technology industry. Our role is to serve as a link between
technology companies and infrastructure. 

One of the highlights of the bank’s activities was the relatively good start to
offering video identification. Among others, video identification could be a
good choice for customers in cities already accommodating LHV's ATMs and
benefiting from our housing loan capacity (e.g. Pärnu, Viljandi and Rakvere).
We also made an effort to enhance the convenience of our electronic services.
Loan agreements can now be accessed via both the internet bank and the mobile
bank. The bank’s Q3 is characterised by strong customer activity and a growth
in loans and deposits. New customer numbers grew by 5,000 during the quarter,
with the total number of customers exceeding 128,000. LHV’s role in Estonian
banking is growing: Bank of Estonia has indicated that as of beginning of 2018
the bank will become one of four systemically important banks in Estonia and
the fourth provider of vital banking service as set in the Emergency Act. 

LHV's pension funds are actively managed and stand apart from those of its
competitors in this regard. This is evident in the major OTC investments in
Estonia in the last quarters. Among other things, active management means that,
when it comes to investing, our focus lies above all on new projects, rather
than the purchase of existing assets. The difference in the pension fund
investment strategy also means a difference in yield. We believe that, against
the backdrop of a high-priced securities market, our investment strategy serves
the long-term interests of our customers. 

The number of active 2nd-pillar customers grew by 0.3 thousand (decreased by
0.9 thousand in Q2) reaching 178,000. Several changes occurred in the funds
during the quarter: two 3rd-pillar funds were merged; the conditions and the
depot bank of two funds were changed; we also published the information on the
amendment of the conditions of the actively managed pension funds as of 2018. 

Our Lithuanian business unit Mokilizingas posted EUR 0.1 million in profit in
Q3, which is EUR 0.1 million less than in the previous quarter. The financing
portfolio grew by EUR 4.2 million during the quarter, amounting to EUR 38
million at the end of the quarter. The credit quality remains stable. 

LHV’s outlook for the year ahead is good. We pursue growth in all business
directions. The profit posted in the nine months of 2017 is EUR 0.3 million
higher than the net profit estimated in the financial plan published in
February 2017. We are not changing the profit forecast of EUR 21.8 million.” 

Income statement, EUR t                   Q3-201  Q2-201  9 months    9 months  
                                          7       7        2017        2016     
--------------------------------------------------------------------------------
Net interest income                        8 863   8 607      25 634      21 714
--------------------------------------------------------------------------------
Net fee and commission income              5 695   5 213      16 193      13 339
--------------------------------------------------------------------------------
Net gains from financial assets               74     930       1 400       1 794
--------------------------------------------------------------------------------
Other income                                 -36     -84        -143          95
--------------------------------------------------------------------------------
Total revenue                             14 596  14 665      43 084      36 942
--------------------------------------------------------------------------------
Staff costs                               -3 508  -3 621     -10 719      -9 778
--------------------------------------------------------------------------------
Office rent and expenses                    -406    -374      -1 217      -1 113
--------------------------------------------------------------------------------
IT expenses                                 -466    -438      -1 320      -1 286
--------------------------------------------------------------------------------
Marketing expenses                        -1 281  -1 118      -3 505      -3 098
--------------------------------------------------------------------------------
Other operating expenses                  -2 177  -2 376      -6 698      -5 812
--------------------------------------------------------------------------------
Total operating expenses                  -7 838  -7 926     -23 459     -21 087
--------------------------------------------------------------------------------
EBIT                                       6 759   6 739      19 625      15 856
--------------------------------------------------------------------------------
Earnings before impairment losses          6 759   6 739      19 625      15 856
--------------------------------------------------------------------------------
Impairment losses on loans and advances   -1 261  -1 839      -3 193      -1 497
--------------------------------------------------------------------------------
Income tax                                   -42     -21      -1 046        -201
--------------------------------------------------------------------------------
Net profit for the reporting period from   5 456   4 878      15 385      14 159
 continued operations                                                           
--------------------------------------------------------------------------------
Profit/-loss from discontinued                 0       0           0           0
 operations                                                                     
--------------------------------------------------------------------------------
Net profit                                 5 456   4 878      15 385      14 159
--------------------------------------------------------------------------------
Profit attributable to non-controlling       429     458       1 468       1 240
 interest                                                                       
--------------------------------------------------------------------------------
Profit attributable to share holders of    4 420   4 420       8 890       7 574
 the parent                                                                     
--------------------------------------------------------------------------------



Balance sheet, EURt                         Sept 2017  June 2017  Sept 2016
---------------------------------------------------------------------------
Cash and cash equivalents                     696 392    488 630    315 316
---------------------------------------------------------------------------
Financial assets                               61 583     60 676     77 681
---------------------------------------------------------------------------
Loans granted                                 663 941    613 366    483 597
---------------------------------------------------------------------------
Loan impairments                               -8 409     -7 314     -5 297
---------------------------------------------------------------------------
Receivables from customers                      8 745      4 352      2 739
---------------------------------------------------------------------------
Other assets                                   12 933     11 551     11 850
---------------------------------------------------------------------------
Total assets                                1 435 184  1 171 261    885 886
---------------------------------------------------------------------------
Demand deposits                             1 144 114    868 348    578 488
---------------------------------------------------------------------------
Term deposits                                 124 036    139 706    162 465
---------------------------------------------------------------------------
Loans received                                     16        190        836
---------------------------------------------------------------------------
Loans received and deposits from customers  1 268 166  1 008 244    741 789
---------------------------------------------------------------------------
Other liabilities                              15 214     17 749     11 372
---------------------------------------------------------------------------
Subordinated loans                             30 900     30 900     30 900
---------------------------------------------------------------------------
Total liabilities                           1 314 279  1 056 893    784 061
---------------------------------------------------------------------------
Equity                                        120 905    114 368    101 824
---------------------------------------------------------------------------
Minority interest                               6 787      6 358      4 481
---------------------------------------------------------------------------
Total liabilities and equity                1 435 184  1 171 261    885 886
---------------------------------------------------------------------------



Reports of AS LHV Group are available at https://investor.lhv.ee/en/reports/.

To present the results in Q3 interim report LHV will hold an investor meeting,
that will take place on 24 October 2017 6.00 p.m. in LHV Tallinn client office
(Tartu mnt 2, CityPlaza building, 1st floor). The presentation will be made in
Estonian. All participants please register at https://fp.lhv.ee/academy/464. 

LHV Group is the largest domestic financial group and capital provider in
Estonia. LHV Group's key subsidiaries are AS LHV Pank and AS LHV Varahaldus.
LHV employs about 350 people and over 1258,000 customers use LHV’s banking
services. Pension funds managed by LHV have over 178,000 active customers. 


         Priit Rum
         Communication Manager
         Phone: +372 502 0786
         Email: [email protected]