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

Other corporate action

Unique data record identifier

7798

Submission date and time

21.02.2020 08:02:00

Content of announcement in Estonian

Title

Finantsinspektsiooni järelevalveline hinnang kapitalile ja AS-i LHV Group sisemised kapitalieesmärgid

Message

Jaanuari keskel esitas Finantsinspektsioon LHV Groupile järelevalvelise hinnangu
ja täiendava omavahendite nõude (SREP) kapitali adekvaatsuse arvutuses.
Võrreldes varasemaga on muutunud täiendava omavahendite nõude koosseis ning
nõuete suurused.

Vastavalt Finantsinspektsiooni otsusele rakendub LHV Groupile konsolideeritud
tasemel täiendav omavahendite nõue summas 1,73% (võrrelduna 1,53% 2018. aasta
SREP-s), millest vähemalt 0,42% (2018. aastal 0,39%) peab olema kaetud esimese
taseme põhiomavahenditega ja vähemalt 0,56% (2018. aastal 0,52%) kaetud esimese
taseme omavahenditega. Lisaks jäi kehtima lisakapitalinõue välisriikides
asutatud finantseerimisasutustelt kaasatud hoiuste summalt ning selleks on 0,2%.

19. veebruaril toimunud koosolekul otsustas LHV Groupi nõukogu lähtudes
Finantsinspektsiooni hinnangust ning lisades sellele sisemised puhvrid,
kehtestada minimaalseks koguomavahendite suhtarvuks 16,00% (senikehtinud
15,50%), minimaalseks esimese taseme omavahendite suhtarvuks 12,46%
(senikehtinud 12,10%) ning minimaalseks esimese taseme põhiomavahendite
suhtarvuks 10,63% (senikehtinud 10,40%).

Antud suhtarvude komponentide jaotus on järgmine:

                                Esmase taseme    Esmase taseme             Kogu
                              põhiomavahendid      omavahendid     kapitalinõue
-------------------------------------------------------------------------------
 Baasnõue                               4,50%            6,00%            8,00%
-------------------------------------------------------------------------------
 Pillar 2 kapitalinõue                  0,42%            0,56%            1,73%
-------------------------------------------------------------------------------
 Mitteresidenditest
 finantsvahendajate
 hoiused vastavalt
 finantsplaanile                        0,10%            0,10%            0,10%
-------------------------------------------------------------------------------
 Kokku SREP kapitalinõue                5,02%            6,66%            9,83%
-------------------------------------------------------------------------------
 Kapitali säilitamise
 puhver                                 2,50%            2,50%            2,50%
-------------------------------------------------------------------------------
 Süsteemselt olulisuse
 (O-SII) puhver                         1,00%            1,00%            1,00%
-------------------------------------------------------------------------------
 Süsteemse riski puhver                 1,00%            1,00%            1,00%
-------------------------------------------------------------------------------
 Vastutsükliline puhver                 0,00%            0,00%            0,00%
-------------------------------------------------------------------------------
 Kombineeritud puhver
 kokku                                  4,50%            4,50%            4,50%
-------------------------------------------------------------------------------
 Minimaalne regulatiivne
 nõue                                   9,52%           11,16%           14,33%
-------------------------------------------------------------------------------
 Sisemised lisapuhvrid
 kokku                                  1,11%            1,30%            1,67%
-------------------------------------------------------------------------------
 Grupisisene minimaalne
 kapitalinõue                          10,63%           12,46%           16,00%


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

Content of announcement in English

Title

Outcome of Supervisory Review and Evaluation Process by the FSA and AS LHV Group’s internal capital targets

Message

In the middle of January, the Estonian FSA, Finantsinspektsioon, presented LHV
Group with the outcome of Supervisory Review and Evaluation Process (SREP)
capital adequacy calculation. In comparison with earlier there are some changes
in composition of additional own funds and in required targets.

According to the decision of the FSA, an additional requirement for own funds in
the amount 1.73% applies to LHV Group (compared to 1.53% in the 2018 SREP), of
which at least 0.42% (0.39% in 2018) must be covered by Core Tier 1 own funds
and at least 0.56% (0.52% in 2018) by Tier 1 capital. In addition, an added
capital requirement of 0.2% on deposits taken in from foreign financial
institutions remained in place.

In a council meeting on 19 February, the Supervisory Board of LHV Group based on
the FSA decision and adding to it internal buffers decided to set total CAD
target ratio at 16.00% (previously 15.50%), Tier 1 ratio at 12.46% (previously
12.10%) and Core Tier 1 ratio to 10.63% (previously 10.40%).

Underneath is the target split into components:

                                                   Core Tier 1 Tier 1 Total CAD
-------------------------------------------------------------------------------
 Base requirement                                        4.50%  6.00%     8.00%
-------------------------------------------------------------------------------
 Pillar 2 capital requirement                            0.42%  0.56%     1.73%
-------------------------------------------------------------------------------
 Non-resident financial intermediaries' deposits
 according to Financial plan                             0.10%  0.10%     0.10%
-------------------------------------------------------------------------------
 Total SREP requirement                                  5.02%  6.66%     9.83%
-------------------------------------------------------------------------------
 Capital conservation buffer                             2.50%  2.50%     2.50%
-------------------------------------------------------------------------------
 Systemic importance buffer (O-SII)                      1.00%  1.00%     1.00%
-------------------------------------------------------------------------------
 Systemic risk buffer                                    1.00%  1.00%     1.00%
-------------------------------------------------------------------------------
 Discretionary counter-cyclical buffer                   0.00%  0.00%     0.00%
-------------------------------------------------------------------------------
 Total combined buffer                                   4.50%  4.50%     4.50%
-------------------------------------------------------------------------------
 Total minimal regulatory requirement                    9.52% 11.16%    14.33%
-------------------------------------------------------------------------------
 Additional internally decided buffers                   1.11%  1.30%     1.67%
-------------------------------------------------------------------------------
 Group's internal capitalization targets                10.63% 12.46%    16.00%


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