Market announcement

Title

LHV Group’s audited annual report and dividend proposal for 2021

Message

The Supervisory Board of AS LHV Group approved the 2021 audited annual report
and will submit it to the Annual General Meeting (AGM) for approval. Compared to
the unaudited interim report published on 8 February, there are no differences
in the audited financial results.

The 2021 consolidated annual report of AS LHV Group is attached to this notice
and will be made available on the LHV investor page
at https://investor.lhv.ee/en/reports/#annual-reports.

In 2021, AS LHV Group generated net income of EUR 140.4 million (+36%), while
total expenses amounted to EUR 65.2 million (+48%), and loan provisions amounted
to EUR 3.9 million (-64%). For the year as a whole, the Group's consolidated net
profit amounted to EUR 60.3 million (+51%), of which EUR 58.3 million (+54%)
were attributable to Group's shareholders. The return on equity attributable to
the shareholders of LHV Group was 21.1% in 2021.

LHV Group's assets grew by 38% to EUR 6.84 billion in 2021. The Group's
consolidated deposits grew by 41% to EUR 5.81 billion and loans by 21% to EUR
2.68 billion. The volume of funds managed by LHV decreased by 12% over the year
to EUR 1.35 billion due to the pension reform. The number of payments related to
financial intermediaries increased by 70% over the year to 27.4 million.

Across business units, AS LHV Pank generated a net profit of EUR 64.1 million
(+85%) in 2021, of which EUR 12.2 million (+129%) were generated from servicing
clients related to the UK branch. AS LHV Varahaldus earned a net profit of EUR
0.7 million for the year (-92%). AS LHV Kindlustus had a net loss of EUR 0.8
million in 2021 and LHV UK Limited had a net loss of EUR 3.0 million. LHV Group
as a separate entity generated a profit of EUR 8.9 million in 2021, which the
company earned from dividends paid by its subsidiaries.

Dividend proposal

The Management Board of AS LHV Group proposes to the Annual General Meeting
(AGM) to distribute the profit for 2021 as follows:

  * to pay dividends of EUR 0.40 per share for a total amount of EUR 11.946
    million; the income tax payable on dividends would be EUR 2.986 million;
  * to add the profit of the reporting period, attributable to the parent
    company, in the amount of EUR 46.363 million, to the retained earnings.

The list of shareholders entitled to dividends will be fixed as at the close of
business of the settlement system on 14 April 2022. Consequently, the day of
change of the rights attaching to the shares (ex-dividend date) is set to
13 April 2022. From that date, the person who acquired the shares will not be
entitled to receive dividends for the financial year 2021. Dividends will be
paid to shareholders on 20 April 2022.

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 670 people. As of January, LHV's banking services
are being used by 327,000 clients, the pension funds managed by LHV have
135,000 active clients, and LHV Kindlustus protects a total of 145,000 clients.
LHV's UK branch offers banking infrastructure to 180 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]
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