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
9015
Submission date and time
25.08.2021 08:00:00
Content of announcement in Estonian
Title
LHV Group viis lõpuni investeeringu Bank Northis osaluse omandamiseks
Message
AS LHV Group viis lõpuni tehingu, millega investeeris 4,455 miljonit naela Ühendkuningriigi panka Bank North (varasema nimega B-North) ja omandas ettevõttes 9,9% osaluse. Bank North kaasas edukalt vajaminevad investeeringud A- seeria rahastamisvoorus ja sai pangalitsentsi Ühendkuningriigi järelevalveasutuse Prudential Regulation Authority poolt (AWR ehk väljastatud piirangutega). Lisaks AS-le LHV Group investeerisid Bank Northi ka AS LHV Varahalduse poolt juhitavad pensionifondid. Lisaks osalesid esimeses investeerimisvoorus investorid nagu Skipton Building Society, Channel 4 Ventures ja Greater Manchester Combined Authority. Rahastus toetab Bank Northi tehnoloogia arendamisel ning annab vajaliku kapitali laenutegevuste alustamiseks. LHV Groupi investeeringut suurusega 4,455 miljonit naela rahastatakse esimese taseme põhiomavahenditest. Investeering vähendab lühiajaliselt LHV Groupi kapitalipuhvreid, ent kuna Bank Northi kasumlikkuse eesmärgid on sarnased LHV Groupi eesmärkidele, on selle tulemused eraldi investeeringuna positiivsed. Investeering on arvesse võetud LHV Groupi 2021. aasta uuendatud finantsplaanis. Tehingu järel valitakse LHV Groupi juhataja Madis Toomsalu Bank Northi nõukogu liikmeks. AWR-panganduslitsentsi saamisega muutub 2018. aastal asutatud finantsettevõte Commercial and Northern Ltd nüüd Bank Northiks. Seda arendatakse Ühendkuningriigi ettevõtete laenuturgu teenindavaks kohalikuks pangaks, mis vastab peamiselt väike- ja keskmise suurusega ettevõtete vajadustele. Bank Northi ärimudel on ainulaadne, põhinedes sujuvalt integreeritud pilvepõhisel pangandustehnoloogial, mille platvormil asuvad piirkondlikud üksused, kus kogenud pankurid pakuvad ettevõtetele rahastamist kuni kümme korda kiiremini kui valdkonna standard Ühendkuningriigis. Detsentraliseeritud mudel võimaldab kohandamist iga kliendi asjaolude järgi, kohalikku otsustamist ja kohalikku täitmist - erinedes Ühendkuningriigi tugevalt tsentraliseeritud ja standardiseeritud pangandussüsteemist. Bank North plaanib avada oma esimese laenamisüksuse Manchesteris käesoleval aastal, enne üle kogu Ühendkuningriigi toimuvat juhitud väljaarendamist. Üksus alustab laenude andmist 2021. aasta oktoobris. Rohkem teavet on leitav aadressil: https://b-north.co.uk/. LHV Groupi juhataja Madis Toomsalu kommentaar: "Kogenud meeskonna ja suurte kasvuambitsioonidega Bank Northil on tugev valmidus äritegevuse alustamiseks ning selle eesmärk on raputada 150 miljoni naelas suurust Ühendkuningriigi VKE-dele laenamise turgu. Haarasime sellest investeerimisvõimalusest, et laiendada LHV kohaolu Ühendkuningriigis ning vahetada teadmisi LHV ja Bank Northi vahel. LHV eesmärk on parem ligipääs finantsteenustele ja kapitalile ning me näeme selgeid paralleele Bank Northi ja LHV panga senise teekonna vahel. Bank Northi plaan pakkuda kohalikele VKE-dele laenusid konkurentidest tõhusamalt, kombineerides parimad tehnoloogilised lahendused suhtepangandusega, on suure kasvupotentsiaaliga ärisuund, nagu LHV on näidanud. See teenus on pandeemia mõjudest taastumise ajal Ühendkuningriigi ettevõtete seas nõutud." LHV Group on suurim kodumaine finantskontsern ja kapitali pakkuja Eestis. LHV Groupi peamised tütarettevõtted on LHV Pank, LHV Varahaldus ja LHV Kindlustus. LHV-s töötab üle 620 inimese. LHV pangateenuseid kasutab 290 000 klienti, LHV hallatavatel pensionifondidel on 174 000 aktiivset klienti ja LHV Kindlustusega on kaitstud 132 000 klienti. LHV Ühendkuningriigi filiaal pakub panganduse taristut enam kui 160 rahvusvahelisele finantsteenuste ettevõttele, mille kaudu jõuavad LHV makseteenused klientideni üle terve maailma. Priit Rum LHV kommunikatsioonijuht Telefon: 502 0786 E-post: [email protected] (mailto:[email protected])
Content of announcement in English
Title
LHV Group finalises investment to acquire a share in Bank North
Message
AS LHV Group finalised an investment of £4.455 million in Bank North (previously B-North) and acquired a 9.9% share in the company after Bank North closed a successful 'Series A' funding round and was granted its banking licence by the UK Prudential Regulatory Authority (Authorised with Restrictions - 'AWR'). In addition to AS LHV Group also pension funds managed by AS LHV Varahaldus invested in Bank North. The other participants in the 'Series A' funding round included the likes of Skipton Building Society, Channel 4 Ventures and the Greater Manchester Combined Authority. The round will support Bank North in further developing its technology as well as delivering operating capital to kick off its lending activities. LHV Group's investment size of £4.455 million is funded from core tier 1 capital. In the short time frame the investment lowers LHV Group's capital buffers, but as Bank North's profitability targets are similar to those of LHV Group, the results will be positive as a stand alone investment. The investment has been taken into account in LHV Group's updated Financial Plan for 2021. Following the investment, Madis Toomsalu, CEO of LHV Group, will be elected a member of Bank North's supervisory board. With receiving the AWR banking licence the financial company Commercial and Northern Ltd established in 2018 now becomes Bank North. It is being developed to serve the UK business lending market as a local bank catering mainly to the needs of SME-s. Bank North's model is unique, built on seamlessly-integrated, cloud-native banking technology, which powers a network of regional pods, where experienced bankers will deliver committed finance to businesses up to ten times faster than the industry standard in the UK. A de-centralised model allows for tailoring to the circumstances of each customer, locally decisioned and locally delivered - differentiating it from UK's heavily centralised, standardised banking system. Bank North plans to open the doors of its first lending pod in Manchester later this year, before a managed roll-out across the UK. It will start lending in October 2021. More information available: https://b-north.co.uk/. Comments by Madis Toomsalu, CEO of LHV Group: "With an experienced team and high growth ambitions Bank North has a strong readiness to commence business activities, and aims to disrupt the £150 billion UK SME lending market. We seized this investment opportunity in order to broaden LHV's presence in the UK and interchange insight between LHV and Bank North. The mission of LHV is a better access to financial services and capital and we see clear parallels between plans of Bank North and the journey of LHV bank so far. Bank North's plan to provide necessary credit to local SME-s more efficiently than competitors, combining the best technological solutions with relationship banking is a business of great growth potential, as proven by LHV. This service is sought after by UK businesses at the time of recovering from the effects of the pandemic." 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])