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

7219

Submission date and time

16.04.2019 08:00:00

Content of announcement in Estonian

Title

LHV Groupi 2019. aasta I kvartali auditeerimata majandustulemused

Message

2019. aasta jaanuaris, veebruaris ja märtsis teenis AS LHV Group kokku 5,0
miljonit eurot konsolideeritud puhaskasumit. Pank teenis I kvartalis
puhaskasumit 4,2 miljonit eurot ja varahaldus 1,2 miljonit eurot. LHV Group
maksis esimeses kvartalis tulumaksu summas 2,3 miljonit eurot. Grupi omakapitali
tootluseks kujunes 12,2%.

Konsolideerimisgrupi I kvartali puhaskasum oli 1,7 miljoni euro võrra väiksem,
kui 2018. aasta IV kvartalis, kuid kasvas võrreldes eelmise aasta I kvartaliga
0,7 miljoni euro võrra.

Grupi konsolideeritud netolaenuportfell kasvas kvartaliga 72 miljoni euro võrra
(+8%; +107 miljonit eurot 2018. aasta IV kvartalis) 991 miljoni euroni.
Konsolideeritud hoiused kasvasid 145 miljoni euro võrra (+10%; -215 miljonit
eurot IV kvartalis) 1567 miljoni euroni. Seejuures kasvasid maksevahendajatega
seotud hoiused 33 miljoni ja tavaklientide hoiused 112 miljoni euro võrra.

LHV poolt juhitud fondide koondmaht kasvas kvartaliga 43 miljonit eurot (+4%;
+11 miljonit eurot IV kvartalis) ja jõudis 1257 miljoni euroni.

LHV Groupi juhataja Madis Toomsalu kommentaar:
"Esimeses kvartalis oli meie ärimahtude kasv laiapõhjaline ja rekordiliselt
kiire. Panga klientide arv suurenes 9500 võrra, seejuures märtsis liitus meiega
üle 3600 kliendi. Palgalaekumisi, varadega kliente, makseid, pangakaartide
kasutamist, investeerimislepinguid on rohkem kui kunagi varem. LHV laenuportfell
jõudis 1 miljardi euroni ja klientide hoiused kasvasid jõudsalt. LHV Panga
klientide koguarv ületas 170 000 kliendi piiri.

Kvartali olulisemateks sündmusteks olid ettevõtluskontoga ja väljuvate
välkmaksetega alustamine ning Verso laenuportfelli omandamine summas 13,2
miljonit eurot. Märtsis laiendasime oma sularahaaautimaatide võrku, et järjest
rohkem kõnetada kliente üle Eesti.

Jaanuaris valiti LHV Group Nasdaq Balti börsidel parimate investorsuhetega
ettevõtteks, lisaks tunnustati LHV Panka kui aasta parimat maaklerfirmat. Kõige
parem meel on siiski hinnangu üle meie teeninduse kvaliteedile. Nimelt hindas
uuringufirma Dive LHV Panka parimat teenindust pakkuvaks pangaks Eestis.

LHV Groupi kasumit ja kapitali tootlikkust mõjutas oluliselt dividendidega
seotud tulumaksu tasumine. Kokku maksis LHV tulumaksu 2,3 miljonit eurot ja
seetõttu oli omakapitali tootlus 2019. aasta esimeses kvartalis 12,2%.

I kvartali lõpuks ületas LHV Varahalduse poolt juhitud investeerimisfondide
koondmaht 1,25 miljardi euro piiri, mahu kasvust suure osa moodustas
väärtpaberiturgude taastumine IV kvartali langusest. LHV aktiivselt juhitud
pensionifondides on jätkuvalt madalam börsidega seotud hinnarisk, kuna fookus on
eeskätt börsiväliste investeeringute tegemisel. Veebruarist rakendus iga-aastane
mahu kasvuga seotud II samba fondide haldustasumäärade alanemine, mistõttu
äritulud vähenesid. II samba fondide uued haldustasumäärad on vahemikus 0,39%
kuni 1,20%. Kvartali lõpus oli LHV II samba pensionifondides aktiivseid kliente
üle 177 tuhande inimese

LHV kasvutrende on toetamas Eesti majanduskeskkond. Majanduskasv on olnud hea,
siseriiklike riske maandavad tasakaalus eelarve, avaliku sektori madal võlatase
ning positiivne välistasakaal.

Ootame aeglase majanduskasvu jätkumist, samas on muutunud ümberkaudsete
majanduste prognoosimine järjest keerulisemaks. Ka krediiditurg  on püsinud
tugevana. Kasvamas on kõik peamised krediiditooted, sh ettevõtete laenud ja
kodulaenud. Kodumajapidamiste finantstervis on pigem tugev, hoiuste ja laenude
suhe on paranemas.

Küll aga on sektorit üha enam mõjutamas regulatiivsed teemad, nagu mõne erakonna
II pensionisamba lammutamise soov. Heites süsteemile ette ebapiisavat tootlust,
ei tegeleta tootluse parandamisega, vaid soovitakse lammutada hoopis sõnumit
säästmise vajalikkusest ja antakse tagasikäik Eesti kapitali ja kapitaliturgude
arengule. Plaanitavad muudatused maksab kinni järgmine põlvkond koos
maksutõusudega. See ei saa olla eesmärk. Loodame avalikkuse ja otsustajate vahel
mõistliku dialoogi saavutamist."

?

+-----------------------------------------------+---------+----------+---------+
|Kasumiaruanne, EURt                            |I kv 2019|IV kv 2018|I kv 2018|
+-----------------------------------------------+---------+----------+---------+
|   Neto intressitulu                           |   10 945|    10 289|   10 195|
+-----------------------------------------------+---------+----------+---------+
|   Neto teenustasutulu                         |    6 225|     6 094|    6 232|
+-----------------------------------------------+---------+----------+---------+
|   Neto finantstulud                           |      178|       104|      -87|
+-----------------------------------------------+---------+----------+---------+
|   Muud tegevustulud                           |      -23|       108|       -4|
+-----------------------------------------------+---------+----------+---------+
|Tulud kokku                                    |   17 324|    16 595|   16 337|
+-----------------------------------------------+---------+----------+---------+
|   Personalikulu                               |   -4 553|    -4 293|   -4 142|
+-----------------------------------------------+---------+----------+---------+
|   Kontorikulud                                |     -229|      -536|     -494|
+-----------------------------------------------+---------+----------+---------+
|   IT kulud                                    |     -629|      -735|     -552|
+-----------------------------------------------+---------+----------+---------+
|   Turunduskulud                               |     -708|      -599|     -890|
+-----------------------------------------------+---------+----------+---------+
|   Muud tegevuskulud                           |   -2 987|    -2 621|   -2 802|
+-----------------------------------------------+---------+----------+---------+
|Kulud kokku                                    |   -9 105|    -8 783|   -8 880|
+-----------------------------------------------+---------+----------+---------+
|Ärikasum                                       |    8 219|     7 811|    7 457|
+-----------------------------------------------+---------+----------+---------+
|Kasum enne allahindlusi                        |    8 219|     7 811|    7 457|
+-----------------------------------------------+---------+----------+---------+
|   Laenude allahindlus                         |     -951|      -543|   -1 186|
+-----------------------------------------------+---------+----------+---------+
|   Tulumaksukulu                               |   -2 265|      -544|   -2 014|
+-----------------------------------------------+---------+----------+---------+
|Aruandeperioodi puhaskasum jätkuvatelt         |         |          |         |
|tegevustelt                                    |    5 002|     6 725|    4 256|
+-----------------------------------------------+---------+----------+---------+
|Kasum/-kahjum lõpetatud tegevustelt            |        0|         0|        0|
+-----------------------------------------------+---------+----------+---------+
|Puhaskasum                                     |    5 002|     6 725|    4 256|
+-----------------------------------------------+---------+----------+---------+
|   Vähemusosaluse osa                          |      312|       676|      306|
+-----------------------------------------------+---------+----------+---------+
|  Emaettevõtte aktsionäride osa kasumist       |    4 690|     6 049|    3 951|
+-----------------------------------------------+---------+----------+---------+



+--------------------------------+------------+----------------+------------+
| Bilanss, EURt                  | märts 2019 | detsember 2018 | märts 2018 |
+--------------------------------+------------+----------------+------------+
|    Raha ja raha ekvivalendid   |    764 778 |        682 658 |  1 071 822 |
+--------------------------------+------------+----------------+------------+
|    Finantsvarad                |     26 205 |         47 153 |     57 091 |
+--------------------------------+------------+----------------+------------+
|    Laenud klientidele          |  1 001 963 |        929 037 |    774 760 |
+--------------------------------+------------+----------------+------------+
|    Laenude allahindlus         |    -11 216 |        -10 276 |     -9 111 |
+--------------------------------+------------+----------------+------------+
|    Nõuded klientide vastu      |      7 275 |          3 721 |     12 250 |
+--------------------------------+------------+----------------+------------+
|    Muud varad                  |     29 308 |         24 807 |     24 028 |
+--------------------------------+------------+----------------+------------+
| Varad kokku                    |  1 818 313 |      1 677 100 |  1 930 839 |
+--------------------------------+------------+----------------+------------+
|       Nõudmiseni hoiused       |  1 422 922 |      1 304 265 |  1 598 606 |
+--------------------------------+------------+----------------+------------+
|       Tähtajalised hoiused     |    144 082 |        117 933 |    126 749 |
+--------------------------------+------------+----------------+------------+
|       Saadud laenud            |     21 638 |         21 584 |      6 018 |
+--------------------------------+------------+----------------+------------+
|    Võlgnevused klientidele     |  1 588 642 |      1 443 782 |  1 731 373 |
+--------------------------------+------------+----------------+------------+
|    Muud kohustused             |     22 325 |         24 655 |     26 796 |
+--------------------------------+------------+----------------+------------+
|    Allutatud laenud            |     50 900 |         50 900 |     30 900 |
+--------------------------------+------------+----------------+------------+
| Kohustused kokku               |  1 661 866 |      1 519 337 |  1 789 069 |
+--------------------------------+------------+----------------+------------+
| Omakapital                     |    156 447 |        157 763 |    141 770 |
+--------------------------------+------------+----------------+------------+
|    sh vähemusosaluse osa       |      3 234 |          4 123 |      7 027 |
+--------------------------------+------------+----------------+------------+
| Kohustused ja omakapital kokku |  1 818 313 |      1 677 100 |  1 930 839 |
+--------------------------------+------------+----------------+------------+



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

LHV Group korraldab I kvartali majandustulemuste tutvustamiseks
investorkohtumise, mis leiab aset 16. aprillil algusega kell 18 LHV Tallinna
kliendikontoris (Tartu mnt 2, I korrus). Osalemiseks palume registreeruda
aadressil https://fp.lhv.ee/academy/558. Investorkohtumisest tehakse reaalajas
videoülekanne LHV Facebooki lehel www.facebook.com/LHVPank
(http://www.facebook.com/LHVPank).

LHV Group on suurim kodumaine finantskontsern ja kapitali pakkuja Eestis. LHV
Groupi peamised tütarettevõtted on LHV Pank ja LHV Varahaldus. LHV-s töötab ligi
400 inimest. LHV pangateenuseid kasutab 171 000 klienti ja LHV hallatavatel
pensionifondidel on üle 177 000 aktiivse kliendi.


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

Content of announcement in English

Title

LHV Group unaudited results for Q1 of 2019

Message

In January, February and March 2019, AS LHV Group altogether earnt EUR 5.0
million in consolidated profit. In Q1, the bank earnt EUR 4.2 million and
Varahaldus EUR 1.2 million as net profit. LHV Group paid EUR 2.3 million as
income tax in Q1. Group's equity ratio was 12.2%.

The Q1 net profit of the consolidation group was EUR 1.7 million less than in Q4
of 2018, however it has increased by EUR 0.7 million y-o-y.

During the quarter, the Group's consolidated net loan portfolio increased by EUR
72 million (+8%; +107 million in Q4 of 2018), to EUR 991 million. Consolidated
deposits increased by EUR 145 million (+10%; -215 million in Q4), to EUR 1,567
million. At the same time, the deposits related to payment intermediaries
increased by EUR 33 million and those of the regular customers by EUR 112
million.

The volume of funds managed by LHV increased by EUR 43 million over the quarter
(+4%; +11 million in Q4), to EUR 1,257 million.

Comment of Madis Toomsalu, the CEO of LHV Group:
"In the first quarter, the growth of our business volumes has been broad-based,
while also showing an all-time rapid pace. The number of the bank's customers
grew by 9,500, with more than 3,600 customers joining us in March. The number of
salary receipts, customers with assets, payments, use of bankcards, investment
contracts is higher than ever. LHV's loan portfolio reached EUR 1 billion and
the customers' deposits thrived. The total number of LHV's customers exceeded
the threshold of 170,000.

The most important highlights of the quarter were the launch of the entrepreneur
account and outgoing instant payments, as well as the acquisition of Verso's
loan portfolio amounting to EUR 13.2 million. In March, we expanded our ATM
network, to speak to a growing number of customers all over Estonia.

In January, LHV Group was chosen as the company with the best investor relations
on the Nasdaq Baltic Stock Exchange. We are still most happy about the
assessment given to our service quality. To be specific, the survey company Dive
rated LHV Pank as the bank offering the best service in Estonia.

LHV Group's profit and profitability were notably influenced by the payment of
income tax relating to dividends. All in all, LHV paid EUR 2.3 million as income
tax and accordingly, the equity ratio was 12.2% in Q1 of 2019.

By the end of Q1, the consolidated volume of investment funds managed by LHV
Varahaldus exceeded the threshold of EUR 1.25 billion; a great part of the
growth originated from the recovery of securities markets after the Q4 decline.
LHV's actively managed pension funds still have the lowest price risk related to
stock exchanges, as the focus is primarily on making OTC investments. From
February, there was an annual decline of 2nd pillar pension fund management fees
related to volume growth, as a result of which the operating income decreased.
The new management fee rates of 2nd pillar funds range from 0.39% to 1.20%. By
the end of the quarter, the number of LHV's active 2nd pillar customers exceeded
177 thousand.

LHV's growth trends are supported by the Estonian business environment. The
economic growth has been solid and the internal policy risks are managed by the
balanced budget, low public sector debt and positive foreign balance.

We expect the slow economic growth to continue; at the same time, forecasting of
the surrounding economies has become increasingly complicated. Also, the credit
market has remained strong. All of the main credit products, incl. corporate
loans and home loans, are growing. The financial health of households is on the
strong side, the loan-to-deposit ratio is improving.

Yet, the sector is increasingly influenced by regulatory issues, such as the
wish of certain parties to dismantle the 2nd pillar pension. By accusing it of
having an insufficient rate of return, productivity is not being improved, but
instead, the intention is to destroy the message that we need to save and thus,
the development of Estonian capital and capital markets is reversed. The planned
changes will be paid by the next generation together with tax increases. This
cannot be a goal. We hope that a reasonable dialogue is achieved between the
public and those making the decisions."


+------------------------------------------------------+-------+-------+-------+
|Income statement, EUR t                               |Q1-2019|Q4-2018|Q1-2018|
+------------------------------------------------------+-------+-------+-------+
|   Net interest income                                | 10 945| 10 289| 10 195|
+------------------------------------------------------+-------+-------+-------+
|   Net fee and commission income                      |  6 225|  6 094|  6 232|
+------------------------------------------------------+-------+-------+-------+
|   Net gains from financial assets                    |    178|    104|    -87|
+------------------------------------------------------+-------+-------+-------+
|   Other income                                       |    -23|    108|     -4|
+------------------------------------------------------+-------+-------+-------+
|Total revenue                                         | 17 324| 16 595| 16 337|
+------------------------------------------------------+-------+-------+-------+
|   Staff costs                                        | -4 553| -4 293| -4 142|
+------------------------------------------------------+-------+-------+-------+
|   Office rent and expenses                           |   -229|   -536|   -494|
+------------------------------------------------------+-------+-------+-------+
|   IT expenses                                        |   -629|   -735|   -552|
+------------------------------------------------------+-------+-------+-------+
|   Marketing expenses                                 |   -708|   -599|   -890|
+------------------------------------------------------+-------+-------+-------+
|   Other operating expenses                           | -2 987| -2 621| -2 802|
+------------------------------------------------------+-------+-------+-------+
|Total operating expenses                              | -9 105| -8 783| -8 880|
+------------------------------------------------------+-------+-------+-------+
|EBIT                                                  |  8 219|  7 811|  7 457|
+------------------------------------------------------+-------+-------+-------+
|Earnings before impairment losses                     |  8 219|  7 811|  7 457|
+------------------------------------------------------+-------+-------+-------+
|   Impairment losses on loans and advances            |   -951|   -543| -1 186|
+------------------------------------------------------+-------+-------+-------+
|   Income tax                                         | -2 265|   -544| -2 014|
+------------------------------------------------------+-------+-------+-------+
|Net profit for the reporting period from continued    |       |       |       |
|operations                                            |  5 002|  6 725|  4 256|
+------------------------------------------------------+-------+-------+-------+
|Profit/-loss from discontinued operations             |      0|      0|      0|
+------------------------------------------------------+-------+-------+-------+
|Net profit                                            |  5 002|  6 725|  4 256|
+------------------------------------------------------+-------+-------+-------+
|  Profit attributable to non-controlling interest     |    312|    676|    306|
+------------------------------------------------------+-------+-------+-------+
|  Profit attributable to share holders of the parent  |  4 690|  6 049|  3 951|
+------------------------------------------------------+-------+-------+-------+


+---------------------------------------------+----------+---------+----------+
|Balance sheet, EURt                          |March 2019|Dec 2018 |March 2018|
+---------------------------------------------+----------+---------+----------+
|   Cash and cash equivalents                 |   764 778|  682 658| 1 071 822|
+---------------------------------------------+----------+---------+----------+
|   Financial assets                          |    26 205|   47 153|    57 091|
+---------------------------------------------+----------+---------+----------+
|   Loans granted                             | 1 001 963|  929 037|   774 760|
+---------------------------------------------+----------+---------+----------+
|   Loan impairments                          |   -11 216|  -10 276|    -9 111|
+---------------------------------------------+----------+---------+----------+
|   Receivables from customers                |     7 275|    3 721|    12 250|
+---------------------------------------------+----------+---------+----------+
|   Other assets                              |    29 308|   24 807|    24 028|
+---------------------------------------------+----------+---------+----------+
|Total assets                                 | 1 818 313|1 677 100| 1 930 839|
+---------------------------------------------+----------+---------+----------+
|      Demand deposits                        | 1 422 922|1 304 265| 1 598 606|
+---------------------------------------------+----------+---------+----------+
|      Term deposits                          |   144 082|  117 933|   126 749|
+---------------------------------------------+----------+---------+----------+
|      Loans received                         |    21 638|   21 584|     6 018|
+---------------------------------------------+----------+---------+----------+
|   Loans received and deposits from customers| 1 588 642|1 443 782| 1 731 373|
+---------------------------------------------+----------+---------+----------+
|   Other liabilities                         |    22 325|   24 655|    26 796|
+---------------------------------------------+----------+---------+----------+
|   Subordinated loans                        |    50 900|   50 900|    30 900|
+---------------------------------------------+----------+---------+----------+
|Total liabilities                            | 1 661 866|1 519 337| 1 789 069|
+---------------------------------------------+----------+---------+----------+
|Equity                                       |   156 447|  157 763|   141 770|
+---------------------------------------------+----------+---------+----------+
|   Minority interest                         |     3 234|    4 123|     7 027|
+---------------------------------------------+----------+---------+----------+
|Total liabilities and equity                 | 1 818 313|1 677 100| 1 930 839|
+---------------------------------------------+----------+---------+----------+


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

LHV will organize an investor meeting to introduce the quarterly results, to be
held on 16 April at 18.00 in LHV Tallinn office (Tartu mnt 2, I floor). The
presentation will be made in Estonian. To participate, please register at
https://fp.lhv.ee/academy/558. A real-time video broadcast is made of the
investor meeting on LHV's Facebook page www.facebook.com/LHVPank
(http://www.facebook.com/LHVPank).

LHV Group is the largest domestic financial group and capital provider in
Estonia. LHV Group's key subsidiaries are LHV Pank and LHV Varahaldus. LHV
employs about 400 people. More than 171,000 customers use LHV's banking
services. Pension funds managed by LHV have over 177,000 active clients.


Priit Rum
Communications Manager
Phone: +372 502 0786
Email: [email protected] (mailto:[email protected])