Market announcement

Title

LHV Group results in July 2021

Message

In July, AS LHV Group earned EUR 5.8 million in consolidated net profit. LHV
Pank earned EUR 5.2 million in net profit, including EUR 1.1 million from
serving clients associated with the United Kingdom branch, and EUR 0.3 million
from LHV Varahaldus. LHV Kindlustus earned a net profit of EUR 62,000 in July.
LHV Group will reveal the updated financial plan for the current year on 17
August.

The Group's consolidated volume of deposits grew in July by EUR 17 million, with
its loan portfolio growing by EUR 47 million and the fund volume growing by EUR
23 million. In July, the bank's clients in the form of financial intermediaries
made a total of 1.8 million payments.

The activity of the bank's clients remained high in July. The bank added 4000
clients, with the number of clients who use settlements growing by 1800. The
number of LHV Youth Bank clients exceeded the 50,000 threshold in July, while
the number of entrepreneur account clients exceeded 5000.

EUR 27 million of the loan portfolio growth was due to loans issued to
businesses and EUR 20 million from private loans. Credit quality remains good.
At the same time, deposits by financial intermediaries decreased by EUR 102
million during the month and deposits from platforms by EUR 8 million, while
deposits by regular clients increased by EUR 127 million.

The most important events during July included Euromoney once again declaring
LHV Pank the best bank in Estonia, the bank transferring its provision of
investment services to the new foreign broker Citigroup Global Markets Europe
AG, and lowering the age limit for bank cards from seven to six.

The volume of funds led by Varahaldus grew in July, mainly due to their rates of
return. In July, the rates of return for the biggest funds, L and XL, were 1.4%
and 1.2%, respectively. In September, the volume of pension funds will decrease
by slightly less than one-fifth due to exits from the pillar.

In connection with goals to strengthen the Group's capital structure and ensure
stable access to additional capital, in order to support the continuing growth
of the company internationally and in Estonia, and to ensure a conservative
capital buffer for the Group's companies, LHV is planning a new public offering
of shares. The plan is to issue 905,000 new shares in September, and in doing so
to raise EUR 25 million. A decision on the organisation of the offering of
shares is planned for the extraordinary general meeting of shareholders, set for
23 August. Additional information: https://investor.lhv.ee/en/general-meetings/.

AS LHV Group reports are available 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, and LHV
Kindlustus. LHV employs over 620 people. LHV's banking services are used by
290,000 clients, the pension funds managed by LHV have 174,000 active clients,
and LHV Kindlustus protects a total of 132,000 clients. LHV's UK branch offers
banking infrastructure to 160 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])