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
Management interim statement or quarterly financial report
Unique data record identifier
9880
Attachments
Submission date and time
18.10.2022 08:00:00
Content of announcement in Estonian
Title
LHV Groupi 2022. aasta III kvartali ja 9 kuu auditeerimata majandustulemused
Message
AS-i LHV Group konsolideeritud puhaskasum oli käesoleva aasta III kvartalis 10,7 miljonit eurot. Pank teenis kvartaliga puhaskasumit 19,2 miljonit eurot, sellest 2,8 miljonit eurot Ühendkuningriigi filiaaliga seotud klientide teenindamisest. Varahaldus teenis III kvartalis 237 tuhat eurot puhaskasumit, kindlustus 432 tuhat eurot puhaskahjumit ning LHV UK Limited'i puhaskahjumiks kujunes 2,8 miljonit eurot. Konsolideerimisgrupi omakapitali tootlus oli III kvartalis 10,8%. Ettevõtte tulemusi mõjutasid ühelt poolt intressi- ja majanduskeskkonna muutused, teisalt grupi finantsinvesteeringu allahindlused summas 5,2 miljonit eurot. III kvartali puhaskasum oli 5,8 miljoni euro võrra väiksem kui eelmisel aastal samal ajal (- 35%) ja 3,2 miljoni euro võrra väiksem kui II kvartalis (-23%). Grupi konsolideeritud tulud olid III kvartalis rekordilised 44,3 miljonit eurot ehk 8,2 miljonit eurot suuremad kui aasta varem (+23%) ja 6,4 miljonit eurot suuremad kui II kvartalis (+17%). Samas kasvasid kvartali kulud 22,8 miljoni euroni, mida oli 7,6 miljonit eurot enam kui aasta varem (+50%) ja 1,7 miljonit eurot rohkem kui II kvartalis (+8%). LHV Groupi varade maht kahanes III kvartali lõpuks 6,26 miljardi euroni. Grupi konsolideeritud hoiused vähenesid kvartaliga 198 miljoni euro võrra 5,17 miljardi euroni (-4%; -44 miljonit eurot II kv). Konsolideeritud laenuportfell kasvas 170 miljoni euro võrra 3,1 miljardi euroni (+6%; +172 miljonit eurot II kv). LHV poolt juhitud fondide koondmaht kasvas kvartaliga 7 miljoni euro võrra 1,27 miljardi euroni (+1%; -103 miljonit eurot II kv). Finantsvahendajate maksete arv ulatus III kvartalis 5,8 miljoni makseni (-10% võrreldes 6,4 miljoni maksega II kvartalis). AS-i LHV Group 2022. aasta 9 kuu konsolideeritud puhaskasum oli 37,1 miljonit eurot ehk 3,8 miljoni euro võrra vähem kui 2021. aasta 9 kuu tulemus (-9%). AS LHV Pank teenis 9 kuuga 51 miljonit eurot puhaskasumit, sealhulgas 7,6 miljonit ÜK filiaaliga seotud klientide teenindamisest. AS LHV Varahaldus teenis 9 kuuga 0,6 miljonit eurot puhaskahjumit ja AS LHV Kindlustus 1,2 miljonit eurot puhaskahjumit. LHV UK Limited'i kahjumiks kujunes 9 kuuga 6,6 miljonit eurot. III kvartali lõpuks jääb AS LHV Group kehtivast finantsplaanist maha puhaskasumi osas 7,7 miljoni euroga, kuid intressimäärade tõusu tingimustes finantsplaani mahajäämus aasta lõpuks oluliselt väheneb, samas oleneb lõpptulemus krediidikvaliteedist. Kasumiaruanne, tuhandetes | | | | eurodes |III kv 2022|II kv 2022|9 kuud 2022|9 kuud 2021 --------------------------------+-----------+----------+-----------+----------- Neto intressitulu | 32 041| 27 185| 85 013| 69 156 --------------------------------+-----------+----------+-----------+----------- Neto teenustasutulu | 12 000| 11 005| 33 351| 28 227 --------------------------------+-----------+----------+-----------+----------- Neto finantstulud | 228| -345| -1 430| -34 --------------------------------+-----------+----------+-----------+----------- Muud tegevustulud | 29| 57| 51| 353 --------------------------------+-----------+----------+-----------+----------- Tulud kokku | 44 298| 37 903| 116 985| 97 702 --------------------------------+-----------+----------+-----------+----------- Personalikulu | -11 631| -11 746| -33 626| -22 683 --------------------------------+-----------+----------+-----------+----------- Kontorikulud | -914| -923| -2 360| -1 383 --------------------------------+-----------+----------+-----------+----------- IT kulud | -2 201| -1 561| -5 411| -3 136 --------------------------------+-----------+----------+-----------+----------- Turunduskulud | -565| -655| -2 177| -1 715 --------------------------------+-----------+----------+-----------+----------- Muud tegevuskulud | -7 502| -6 195| -19 184| -18 018 --------------------------------+-----------+----------+-----------+----------- Kulud kokku | -22 813| -21 080| -62 759| -46 936 --------------------------------+-----------+----------+-----------+----------- Kasum enne allahindlusi | 21 485| 16 822| 54 227| 50 766 --------------------------------+-----------+----------+-----------+----------- Laenude allahindlus | -7 407| 341| -7 801| -2 254 --------------------------------+-----------+----------+-----------+----------- Tulumaksukulu | -3 331| -3 177| -9 309| -7 591 --------------------------------+-----------+----------+-----------+----------- Puhaskasum | 10 747| 13 986| 37 116| 40 921 --------------------------------+-----------+----------+-----------+----------- Vähemusosaluse osa | 441| 444| 1 387| 1 516 --------------------------------+-----------+----------+-----------+----------- Emaettevõtte aktsionäride | | | | osa kasumist | 10 307| 13 543| 35 729| 39 405 Bilanss, tuhandetes eurodes | sept.22 | juuni.22 | sept.21 ---------------------------------+-----------+-----------+----------- Raha ja raha ekvivalendid | 2 735 080 | 3 054 953 | 3 769 432 ---------------------------------+-----------+-----------+----------- Finantsvarad | 373 749 | 492 539 | 138 800 ---------------------------------+-----------+-----------+----------- Laenud klientidele | 3 115 239 | 2 943 373 | 2 566 887 ---------------------------------+-----------+-----------+----------- Laenude allahindlus | -20 537 | -18 838 | -18 024 ---------------------------------+-----------+-----------+----------- Nõuded klientide vastu | 12 785 | 9 183 | 6 240 ---------------------------------+-----------+-----------+----------- Muud varad | 46 099 | 49 646 | 32 279 ---------------------------------+-----------+-----------+----------- Varad kokku | 6 262 414 | 6 530 857 | 6 495 615 ---------------------------------+-----------+-----------+----------- Nõudmiseni hoiused | 5 198 733 | 4 658 731 | 5 198 733 ---------------------------------+-----------+-----------+----------- Tähtajalised hoiused | -30 579 | 707 834 | 257 838 ---------------------------------+-----------+-----------+----------- Saadud laenud | 496 239 | 497 048 | 563 203 ---------------------------------+-----------+-----------+----------- Võlgnevused klientidele | 5 664 393 | 5 863 613 | 6 019 774 ---------------------------------+-----------+-----------+----------- Muud kohustused | 91 626 | 172 082 | 86 137 ---------------------------------+-----------+-----------+----------- Allutatud laenud | 110 652 | 110 368 | 110 383 ---------------------------------+-----------+-----------+----------- Kohustused kokku | 5 866 671 | 6 146 064 | 6 216 294 ---------------------------------+-----------+-----------+----------- Omakapital | 395 743 | 384 793 | 279 321 ---------------------------------+-----------+-----------+----------- sh vähemusosaluse osa | 7 671 | 7 231 | 7 899 ---------------------------------+-----------+-----------+----------- Kohustused ja omakapital kokku | 6 262 414 | 6 530 857 | 6 495 615 Kasumlikkuse suhtarvud |III kv 2022|II kv 2022|9 kuud 2022|9 kuud 2021 -------------------------------+-----------+----------+-----------+----------- Omakapitali tootlus | 10,8%| 15,3%| 13,5%| 20,7% -------------------------------+-----------+----------+-----------+----------- Kulude ja tulude suhe (C/I)| 51,5%| 55,6%| 53,6%| 48,0% -------------------------------+-----------+----------+-----------+----------- Riskikulumäär | 1,0%| 0,0%| 0,3%| 0,1% Kvartalit iseloomustas laenumahtude kasv ja klientide aktiivne kaasamine, suuremate äriüksuste tulemused olid head. Kvartal sisaldas finantsinvesteeringu Bank Northi allahindlust 5,2 miljoni euro ulatuses, kuid uue kvartali alguses teatas LHV selle Ühendkuningriigi finantsasutuse äritegevuse ostust. LHV UK Limited soetas 17,9 miljoni naelase väike- ja keskmise suurusega ettevõtete laenuportfelli, 20 töötaja töölepingud, kliendisuhete ja laenuportfelli juhtimiseks mõeldud infotehnoloogia süsteemi ning koostöösuhted laenumaakleritega. Tehingu lõplikuks hinnaks kujunes 19,7 miljonit naela. LHV UK finantseerib tehingut olemasolevatest omavahenditest. Selle sammuga sisenes LHV UK Limited ÜK ettevõtete laenu turule ja ühtlasi alustas intressitulu teenimist. Samal ajal jätkab ÜK äriüksus finantsvahendajate teenindamist ning LHV UK Limited pangalitsentsi taotlemist. LHV Panga jaoks oli tegemist seni edukaima kvartaliga. Panga klientide arv kasvas 14 000 võrra (üheksa kuuga on lisandunud 43 000 klienti; +13%). Klientide aktiivsus püsis sõjaeelsel tasemel. Kuigi äriklientide aktiivsus on kõrge, on septembri lõpust märgata mõningast eraisikute kindlustunde langust. Hoiuste vähenemine tulenes finantsvahendajate hoiustest, samas on LHV Panga laenuportfelli täielikult finantseeritud Eesti ettevõtete ja eraisikute hoiustest. Panga laenuportfelli 170 miljoni eurosest kasvust tulenes 93 miljonit eurot ettevõtete laenudest ja 77 miljonit eurot jaelaenudest. Laenuportfelli kvaliteet tervikuna on püsinud tugevana ja maksetähtaja ületanud laenude osakaal on jätkuvalt madal. Ettevaatavalt suurendati laenude allahindlusi. Kvartali jooksul alustas LHV õppelaenu pakkumist uute senisest soodsamate tingimustega. See on kasvatanud huvi toote vastu: õppelaenu väljastati septembris viis korda enam kui eelmise aasta samal kuul. Vastavalt Instari atraktiivsete tööandjate uuringule on LHV Pank majandustudengite ja kogenud töötajate hinnangul atraktiivseim tööandja Eestis. Rahvusvaheline majandusajakiri Euromoney tunnistas LHV viiendat korda Eesti parimaks pangaks. LHV Varahaldus näitas aktsiaturgude jaoks keerulisel kvartalil konkurentidest paremaid tulemusi, kui suurimate aktiivselt juhitud LHV pensionifondide M, L ja XL tootluseks kujunes kvartalis vastavalt 0,7%, 1,2% ja 1,2%. Hallatavate varade mahtusid mõjutas septembris ka II sambast väljumine, aktiivsete II samba klientide arv kahanes 1% võrra 130 tuhandele. Samas on suurenenud LHV turuosa: fondide mahu järgi oli see kvartali lõpuks ligi 31%, klientide arvu järgi 25%. Lisaks kiitis valitsus heaks eelnõu, mille alusel kompenseerib riik vahepeal peatatud II samba maksed ühes osas 2023. aasta jaanuaris. See samm kasvatab LHV fondide mahtu ligi 110 miljoni euro võrra. LHV Kindlustuse jaoks oli III kvartal ärimahtude kiire kasvu aeg, kui klientide arv kasvas 152 tuhandeni. Kehtivate kindlustuslepingute arv küündis kvartali lõpuks 219 tuhandeni. Kahjude maht oli planeeritust kõrgem sõiduki- ja kodukindlustuses. Klientide rahulolu kahjukäsitlusega püsib kõrgel 97% tasemel ka kasvavate mahtude tingimuses. LHV Groupi juhataja Madis Toomsalu kommentaar: ?Muutused Euroopa majanduskeskkonnas koos kaasneva hinnatõusuga suurendavad pankade jaoks laenuportfellide riske ja hoiustega seotud pikaajalisi kulusid. Samas on LHV laenuportfell püsinud seni kvaliteetsel tasemel, mis koos baasintressimäärade kasvuga lubab eeldada tulude ja kasumlikkuse kasvu lähitulevikus. Leiame end täna kindlustusäri ja Ühendkuningriigi äritegevusega tuttavas kohas, kuna oleme ka varem uute strateegiliste tegevustega alustanud just keerulises majandusseisus. Kindlustustegevusega oleme küll juba hästi alustanud, kuid pikaajaliselt on suurem osa kasvust ees. Ühendkuningriigis oleme seni keskendunud finantsvahendajatele, mida praegune majanduskeskkond on mõjutanud ärimahtude lühiajalise vähenemise kaudu. Olulisem on siiski mahtude langusest edasine taastumine ning meie soov alustada pärast pangalitsentsi saamist ettevõtetele mõeldud laenutegevusega. Bank Northi äritegevuse ostmisega saime allahinnatud finantsinvesteeringu asemel testitud ja täielikus valmiduses Ühendkuningriigi ettevõtete laenutegevuse. Oleme tulemusega rahul, sest saame alustada laenutegevusega tingimustes, kus meil on olemas kindel strateegia, kontrollitud nõudlus, head inimesed, maaklerlepingud, tehnoloogia ja täiendav kontor Manchesteris. LHV Panga puhul tasub esile tõsta laenuportfelli kasvu. Meie kodulaenuportfelli maht ületas miljardi euro ning laenuportfell tervikuna 3 miljardi euro piiri." AS-i LHV Group aruanded on saadaval aadressil: https://investor.lhv.ee/aruanded (https://www.globenewswire.com/Tracker?data=y9pRinh9yrr2IZBkWSCX6PQpVd4Y_- DcBwvJMBysrYAQ18pf2bSFVdvfy5XCf5dJIvLzp9Y79uUQeV63lqa4eh3BNfX2lq5QluDrfT7PhIfEWm _u9vvzbBC5NMkpDmbF). Kvartalitulemuste tutvustamiseks korraldab LHV Group veebiseminaride keskkonna Zoom kaudu investorkohtumise. Virtuaalne investorkohtumine toimub enne turu avanemist 18. oktoobril kell 9.00. Esitlus tehakse eesti keeles. Palume registreeruda aadressil https://lhvbank.zoom.us/webinar/register/WN_lgrCuIaSQBydC8D0NksMog. LHV Group on suurim kodumaine finantskontsern ja kapitali pakkuja Eestis. LHV Groupi peamised tütarettevõtted on LHV Pank, LHV Varahaldus ja LHV Kindlustus. Grupi ettevõtetes töötab üle 840 inimese. LHV pangateenuseid kasutab septembri seisuga 364 000 klienti, LHV hallatavatel pensionifondidel on 130 000 aktiivset klienti ja LHV Kindlustusega on kaitstud 152 000 klienti. LHV Ühendkuningriigi filiaal pakub panganduse taristut enam kui 200 rahvusvahelisele finantsteenuste ettevõttele, mille kaudu jõuavad LHV makseteenused klientideni üle terve maailma. Marthi Lepik LHV kommunikatsioonispetsialist Telefon: 5666 2944 E-post: [email protected] (mailto:[email protected])
Content of announcement in English
Title
LHV Group’s unaudited financial results for Q3 and nine months of 2022
Message
Consolidated net profit of AS LHV Group was EUR 10.7 million in Q3 of this year. Within the quarter, AS LHV Pank earned EUR 19.2 million in net profit, of which EUR 2.8 million was from servicing clients related to the United Kingdom branch. Varahaldus generated a net profit of EUR 237 thousand in Q3, Kindlustus a net loss of EUR 432 thousand, and LHV UK Limited a net loss of EUR 2.8 million. The Group's return on equity was 10.8% in Q3. The company's results were influenced, on the one hand, by changes in the interest rate and economic environment and, on the other hand, by write-downs on the Group's financial investments amounting to EUR 5.2 million. Net profit for Q3 was EUR 5.8 million lower than in the same period last year (-35%) and EUR 3.2 million lower than in Q2 (-23%). The Group's consolidated revenues in Q3 were a record EUR 44.3 million, EUR 8.2 million higher than a year earlier (+23%) and EUR 6.4 million higher than in Q2 (+17%). At the same time, costs increased to EUR 22.8 million in the quarter, which was EUR 7.6 million more than a year earlier (+50%) and EUR 1.7 million more than in Q2 (+8%). By the end of Q3, LHV Group's volume of assets decreased to EUR 6.26 billion. The Group's consolidated deposits decreased by EUR 198 million over the quarter to EUR 5.17 billion (-4%; EUR -44 million in Q2). The consolidated loan portfolio increased by EUR 170 million to EUR 3.1 billion (+6%; EUR +172 million in Q2). The total volume of funds managed by LHV increased by EUR 7 million over the quarter to EUR 1.27 billion (+1%; EUR -103 million in Q2). The number of payments by financial intermediaries reached EUR 5.8 million in Q3 (-10% compared to 6.4 million payments in Q2). AS LHV Group's consolidated net profit for the first nine months of 2022 was EUR 37.1 million, which is EUR 3.8 million less than the result for the first nine months of 2021 (-9%). In the first nine months of the year, AS LHV Pank generated a net profit of EUR 51 million, including EUR 7.6 million from servicing clients related to the UK branch. AS LHV Varahaldus incurred a net loss of EUR 0.6 million in the first nine months and AS LHV Kindlustus incurred a net loss of EUR 1.2 million. LHV UK Limited incurred a loss of EUR 6.6 million in the first nine months. By the end of Q3, AS LHV Group was behind in its financial plan in terms of net profit by EUR 7.7 million, but in a context of rising interest rates, the shortfall in the financial plan will be significantly reduced by the end of the year, while the final result will depend on credit quality. Income statement, EUR thousand |Q3-2022|Q2-2022|9 months 2022|9 months 2021 -----------------------------------+-------+-------+-------------+------------- Net interest income | 32 041| 27 185| 85 013| 69 156 -----------------------------------+-------+-------+-------------+------------- Net fee and commission income | 12 000| 11 005| 33 351| 28 227 -----------------------------------+-------+-------+-------------+------------- Net gains from financial assets| 228| -345| -1 430| -34 -----------------------------------+-------+-------+-------------+------------- Other income | 29| 57| 51| 353 -----------------------------------+-------+-------+-------------+------------- Total revenue | 44 298| 37 903| 116 985| 97 702 -----------------------------------+-------+-------+-------------+------------- Staff costs |-11 631|-11 746| -33 626| -22 683 -----------------------------------+-------+-------+-------------+------------- Office rent and expenses | -914| -923| -2 360| -1 383 -----------------------------------+-------+-------+-------------+------------- IT expenses | -2 201| -1 561| -5 411| -3 136 -----------------------------------+-------+-------+-------------+------------- Marketing expenses | -565| -655| -2 177| -1 715 -----------------------------------+-------+-------+-------------+------------- Other operating expenses | -7 502| -6 195| -19 184| -18 018 -----------------------------------+-------+-------+-------------+------------- Total operating expenses |-22 813|-21 080| -62 759| -46 936 -----------------------------------+-------+-------+-------------+------------- Earnings before impairment losses | 21 485| 16 822| 54 227| 50 766 -----------------------------------+-------+-------+-------------+------------- Impairment losses on loans and | | | | advances | -7 407| 341| -7 801| -2 254 -----------------------------------+-------+-------+-------------+------------- Income tax | -3 331| -3 177| -9 309| -7 591 -----------------------------------+-------+-------+-------------+------------- Net profit | 10 747| 13 986| 37 116| 40 921 -----------------------------------+-------+-------+-------------+------------- Profit attributable to non- | | | | controlling interest | 441| 444| 1 387| 1 516 -----------------------------------+-------+-------+-------------+------------- Profit attributable to share | | | | holders of the parent | 10 307| 13 543| 35 729| 39 405 Balance sheet, EUR thousand |Sept 2022|Jun 2022 |Sept 2021 ----------------------------------------------+---------+---------+--------- Cash and cash equivalents |2 735 080|3 054 953|3 769 432 ----------------------------------------------+---------+---------+--------- Financial assets | 373 749| 492 539| 138 800 ----------------------------------------------+---------+---------+--------- Loans granted |3 115 239|2 943 373|2 566 887 ----------------------------------------------+---------+---------+--------- Loan impairments | -20 537| -18 838| -18 024 ----------------------------------------------+---------+---------+--------- Receivables from customers | 12 785| 9 183| 6 240 ----------------------------------------------+---------+---------+--------- Other assets | 46 099| 49 646| 32 279 ----------------------------------------------+---------+---------+--------- Total assets |6 262 414|6 530 857|6 495 615 ----------------------------------------------+---------+---------+--------- Demand deposits |5 198 733|4 658 731|5 198 733 ----------------------------------------------+---------+---------+--------- Term deposits | -30 579| 707 834| 257 838 ----------------------------------------------+---------+---------+--------- Loans received | 496 239| 497 048| 563 203 ----------------------------------------------+---------+---------+--------- Loans received and deposits from customers|5 664 393|5 863 613|6 019 774 ----------------------------------------------+---------+---------+--------- Other liabilities | 91 626| 172 082| 86 137 ----------------------------------------------+---------+---------+--------- Subordinated loans | 110 652| 110 368| 110 383 ----------------------------------------------+---------+---------+--------- Total liabilities |5 866 671|6 146 064|6 216 294 ----------------------------------------------+---------+---------+--------- Equity | 395 743| 384 793| 279 321 ----------------------------------------------+---------+---------+--------- Minority interest | 7 671| 7 231| 7 899 ----------------------------------------------+---------+---------+--------- Total liabilities and equity |6 262 414|6 530 857|6 495 615 Profitability ratios |Q3-2022|Q2-2022|9 months 2022|9 months 2021 -----------------------------------+-------+-------+-------------+------------- Return on equity | 10,8%| 15,3%| 13,5%| 20,7% -----------------------------------+-------+-------+-------------+------------- Cost / Income ratio | 51,5%| 55,6%| 53,6%| 48,0% -----------------------------------+-------+-------+-------------+------------- Net gains from financial assets| 1,0%| 0,0%| 0,3%| 0,1% The quarter was characterised by growth in lending volumes and active client engagement, with good results in the larger business units. The quarter included a Bank North write-down of EUR 5.2 million on the financial investment, but at the beginning of the new quarter, LHV announced the acquisition of the business of this UK financial institution. LHV UK Limited acquired a GBP 17.9 million SME loan portfolio, employment contracts for 20 employees, an IT system for customer relations and loan portfolio management, and cooperation relationships with loan brokers. The transaction amounted to GBP 19.7 million. LHV UK will finance the transaction from its own funds available. With this move, LHV UK Limited entered the UK corporate loan market and also started generating interest income. At the same time, the UK business unit will continue to service financial intermediaries and LHV UK Limited to apply for a banking licence. This was the most successful quarter ever for LHV Pank. The number of the Bank's clients increased by 14,000 (43,000 clients added in nine months; +13%). Client activity remained at pre-war levels. Although corporate client activity is high, there has been some decline in private client confidence since the end of September. The decrease in deposits was due to deposits from financial intermediaries, while LHV Pank's loan portfolio is fully funded by deposits from Estonian companies and individuals. Of the EUR 170 million increase in the Bank's loan portfolio, EUR 93 million came from corporate loans and EUR 77 million from retail loans. The quality of the loan portfolio as a whole has remained strong and the share of overdue loans remains low. Loan write-downs were proactively increased. During the quarter, LHV started to offer student loans under new, more favourable terms. This has boosted interest in the product: five times more student loans were issued in September than in the same month last year. According to Instar's Attractive Employers Survey, LHV Pank is the most attractive employer in Estonia according to economics students and experienced employees. The international business magazine Euromoney declared LHV the best bank in Estonia for the fifth time. LHV Varahaldus outperformed its competitors in a difficult quarter for equity markets, with the largest actively managed LHV pension funds M, L, and XL having a rate of return 0.7%, 1.2%, and 1.2%, respectively, in the quarter. Volumes of assets under management were also affected by the exit from the II pillar in September, with the number of active II pillar clients falling by 1% to 130 thousand. At the same time, LHV's market share has increased: by the end of the quarter, it was nearly 31% by volume of funds and 25% by number of clients. In addition, the government approved a draft under which the state will compensate part of the suspended II pillar payments in January 2023. This step will increase the volume of LHV funds by nearly EUR 110 million. For LHV Kindlustus, Q3 was a period of rapid growth in business volumes, as the number of clients increased to 152 thousand. By the end of the quarter, the number of the current insurance contracts reached 219 thousand. Losses were higher than planned in motor and home insurance. Client satisfaction with claims handling remains at a high level of 97%, even in a context of growing volumes. Comment by Madis Toomsalu, the Managing Director of LHV Group: 'Changes in Europe's economic environment, together with rising prices, are increasing the risks to banks' loan portfolios and the long-term costs related to deposits. At the same time, LHV's loan portfolio has so far remained at a high quality level, which, together with rising reference rates, allows us to expect revenue and profitability growth in the near future. Today, we find ourselves in a familiar place in the insurance business and in doing business in the UK, having previously started new strategic activities in difficult economic times as well. We have already made a good start in insurance activities, but most of the long-term growth still lies ahead. In the UK, we have so far focused on financial intermediaries, which have been affected by the current economic environment through a short-term decline in business volumes. More important, however, is the further recovery from the decline in volumes and our ambition to start lending to companies after obtaining a banking licence. With the acquisition of the Bank North business, we have a tested and fully mature UK corporate lending business instead of a written-off financial investment. We are pleased with the result, as we can start lending in conditions where we have a solid strategy, controlled demand, excellent people, brokerage agreements, technology, and an additional office in Manchester. In the context of LHV Pank, it is worth highlighting the growth of the loan portfolio. The volume of our home loan portfolio exceeded EUR 1 billion and our total loan portfolio exceeded EUR 3 billion.' To access the reports of AS LHV Group, please visit the website at https://investor.lhv.ee/en/reports/. In order to introduce the quarterly results, LHV Group will organise an investor meeting via the Zoom webinar environment. The virtual investor meeting will take place on 18 October at 9.00, before the market opens. The presentation will be in Estonian. We kindly ask you to register at the following address: https://lhvbank.zoom.us/webinar/register/WN_lgrCuIaSQBydC8D0NksMog. 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. The Group employs more than 820 people. As of August, LHV's banking services are used by 359,000 clients, the pension funds managed by LHV have 132,000 active clients, and LHV Kindlustus protects a total of 149,000 clients. LHV's UK branch offers banking infrastructure to 200 international financial services companies, via which LHV's payment services reach clients worldwide. Marthi Lepik LHV Communications Specialist Phone: +372 5666 2944 E-mail: [email protected] (mailto:[email protected])