Market announcement

Title

LHV Group 2020 Audited Annual Report and Dividend Proposal

Message

The AS LHV Group Supervisory Board approved the 2020 audited annual report
presented by the company's management board and will submit it to the Annual
General Meeting for approval. There are no differences in the audited accounts
as regards the financial results, compared to the unaudited interim report
(https://cns.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=1003543&m
essageId=1256865)published on 9 February.

The AS LHV Group 2020 Consolidated Annual Report has been appended to the
announcement and will be made available on LHV's investor webpage at
https://investor.lhv.ee/en/reports/#annual-reports
(https://investor.lhv.ee/aruanded/#aastaaruanded).

The pre-tax profit of AS LHV Group in 2020 amounted to EUR 48.7 million (yearly
increase +55%) and the consolidated net profit was EUR 39.8 million (+47%). The
profit attributable to the Group's shareholders was EUR 38.0 million. In 2020,
the pre-tax rate of return on the equity owned by LHV Group's shareholders was
20.5%, while the return on equity based on net profit was 17.3%.

In 2020, the Group earned EUR 103.5 million in net income (+40%), whereas total
costs were EUR 44.0 million (+12%) and loan allowances were made within the
amount of EUR 10.9 million (3.4 times more compared to 2019). The volume of the
LHV Group's assets grew by 64%, to EUR 4.97 billion in 2020. The LHV Group's
consolidated loan portfolio increased by 31%, to EUR 2.21 billion and deposits
by 53%, to EUR 4.12 billion year-on-year. The volume of funds managed by LHV
increased over the year by 12%, to EUR 1.54 billion.

In 2020, AS LHV Pank earned EUR 34.6 million in net profit, with EUR 5.3 million
coming from the servicing of clients associated with the United Kingdom branch.
AS LHV Varahaldus earned EUR 8.3 million in net profit during the year. LHV
Group as a separate entity earned EUR 5.7 million in profit as a result of
dividends paid by subsidiaries to the LHV Group.

The annual report provides a more thorough insight into LHV's commitment to
sustainability. The environmental impact from LHV Group office operations in
2020 was 865 tonnes of CO2 eq., which is 29% less than the year before.

Dividend proposal

The AS LHV Group Management Board proposes that the Annual General Meeting
allocate the profit for 2020 as follows:

  * pay dividends of EUR 0.29 per share in the total sum of EUR 8.358 million;
    the income tax payable on dividends would be EUR 1.654 million.
  * Add the profit of the reporting period, attributable to the parent company,
    in the amount of EUR 29.592 million, to the retained earnings.

The list of shareholders entitled to receive dividends will be established as at
7 April COB. Consequently, the day of change of the rights attaching to the
shares (ex-dividend date) is set to 6 April 2021. From this day onwards, a
person acquiring the shares will not have the right to receive dividends for the
financial year 2020. Dividends will be paid to the shareholders on 9 April 2021.

LHV Group is the largest domestic financial group and capital provider in
Estonia. LHV Group's key subsidiaries are LHV Pank, LHV Varahaldus, and LHV
Kindlustus. LHV employs over 520 people. LHV's banking services are used by
264,000 clients, and pension funds managed by LHV have 180,000 active clients.
LHV's UK branch offers banking infrastructure to 140 international financial
services companies, via which LHV's payment services reach clients around the
world.




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