Börsiteade

Pealkiri

Correction: LHV Group unaudited financial results for Q2 and 6 months of 2025

Teade

--- The corrected Estonian interim report has been added in the revised version
---

In Q2 of 2025, LHV Group was able to earn higher net profit and increase
business volumes against the background of lower interest rates. The loan
portfolio of LHV Group reached 5 billion euros.

In Q2 2025, LHV Group earned a net profit of 30.8 million euros, which was 1.6
million euros more than in the previous quarter (+6% increase). The return on
equity attributable to the shareholders of the Group was 17.4% in Q2.

All subsidiaries of the Group were profitable in the quarter. LHV Pank earned a
net profit of 29.7 million euros, LHV Bank Ltd 0.1 million euros, LHV Varahaldus
0.5 million euros and LHV Kindlustus 1.1 million euros.

On a consolidated basis, LHV Group earned 73.9 million euros in revenue in Q1
2025, i.e. 7% less than in the previous quarter and 14% less than a year ago. Of
the revenue of Q2 of this year, net interest income accounted for 57.6 million
euros, and net fee and commission income for 15.6 million euros of total net
income. Expenditure totalled 40.5 million euros, being 8% more than in the
previous quarter and 11% more than a year ago. Due to the improvement of the
macroeconomic situation, the previous provisions were undervalued in the amount
of 4.2 million euros in the second quarter, which finally had a positive effect
at the level of net profit.

As at the end of June, LHV Group consolidated assets amounted to 9.38 billion
euros, which was 10% more than in the previous quarter and 28% more than in the
same period last year. The consolidated loan portfolio increased by 269 million
euros or 6% to 5.0 billion euros over the quarter (the loan portfolio increased
by 1.1 billion euros or 28% year-on-year). Consolidated deposits of LHV Group
increased by 760 million euros, i.e. by 12%, to 7.36 billion euros. The volume
of funds managed by LHV increased by 3.7 million euros, to 1.56 billion euros.
The number of payments made by clients who are financial intermediaries was
19.9 million in the second quarter, which was slightly less than in the previous
quarter.

LHV Group's consolidated net revenue for the 6 months of 2025 amounted to 153.3
million euros, which is 16.5 million euros or 10% less compared to the same
period last year. Expenditure totalled 78.1 million euros, which was 7.8 million
euros or 11% more. The Group's 6-month consolidated net profit was 59.9 million
euros, being a decrease of 19.4 million euros, or 24%, compared to the previous
year. In six months, LHV Pank earned a net profit of 54.9 million euros, LHV
Bank Ltd 2.3 million euros, LHV Varahaldus 0.6 million euros and LHV Kindlustus
1.7 million euros. LHV Group's ROE for the first half of the year was 17.0%.

Based on the first half of the year, LHV Group outperforms the financial
forecast at the level of net income by 2.0 million euros and at the level of net
profit by 2.3 million euros.

 Income statement, EUR Th                                             Q2 2024
                                                  Q2 2025   Q1 2025   adjusted
-------------------------------------------------------------------------------
 Net interest income                              57,643    62,010    70,424
-------------------------------------------------------------------------------
 Net fee and commission income                    15,579    14,071    14,352
-------------------------------------------------------------------------------
 Net financial income                             -380      2,747     -37
-------------------------------------------------------------------------------
 Net insurance income                             1,065     597       421
-------------------------------------------------------------------------------
 Other operating income and expense               0         -4        638
-------------------------------------------------------------------------------
 Total net income                                 73,907    79,421    85,798
-------------------------------------------------------------------------------
 Staff costs                                      -22,901   -22,655   -20,420
-------------------------------------------------------------------------------
 Office expenses                                  -679      -659      -874
-------------------------------------------------------------------------------
 IT costs                                         -4,017    -3,576    -3,267
-------------------------------------------------------------------------------
 Marketing expenses                               -1,526    -1,258    -796
-------------------------------------------------------------------------------
 Other operating expenses                         -11,387   -9,394    -10,741
-------------------------------------------------------------------------------
 Total expenses                                   -40,510   -37,542   -36,098
-------------------------------------------------------------------------------
 Operating profit                                 33,397    41,879    49,700
-------------------------------------------------------------------------------
 Profit before allowances                         33,397    41,879    49,700
-------------------------------------------------------------------------------
 Allowances                                       4,152     -5,667    -5,043
-------------------------------------------------------------------------------
 Income tax expenses                              -6,784    -7,052    -6,071
-------------------------------------------------------------------------------
 Net profit                                       30,765    29,160    38,586
-------------------------------------------------------------------------------
 Minority holding                                 716       592       300
-------------------------------------------------------------------------------
 Shareholders' share of profit of parent
    company                                       30,049    28,568    38,286
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 Net earnings per share, EUR                      0.09      0.09      0.12
-------------------------------------------------------------------------------
 Diluted earnings per share, EUR                       0.09      0.09      0.12
-------------------------------------------------------------------------------






  Balance sheet, EUR Th                                     March
                                                  June 2025 2025      June 2024
-------------------------------------------------------------------------------
 Cash and due from banks                          3,867,487 3,279,271 3,217,448
-------------------------------------------------------------------------------
 Financial assets                                 454,979   442,463   157,131
-------------------------------------------------------------------------------
 Loans to clients                                 5,038,379 4,774,970 3,925,877
-------------------------------------------------------------------------------
 Loan impairment reserve                          -39,734   -45,629   -35,333
-------------------------------------------------------------------------------
 Receivables from clients                         16,626    9,439     15,380
-------------------------------------------------------------------------------
 Other assets                                     46,058    47,771    49,220
-------------------------------------------------------------------------------
 Total assets                                     9,383,795 8,508,285 7,329,723
-------------------------------------------------------------------------------
 Demand deposits                                  4,669,435 4,189,062 3,659,675
-------------------------------------------------------------------------------
 Term deposits                                    2,694,906 2,415,430 2,124,254
-------------------------------------------------------------------------------
 Loans received                                   1,037,347 936,215   735,281
-------------------------------------------------------------------------------
 Due to clients and loans received                8,401,688 7,540,707 6,519,211
-------------------------------------------------------------------------------
 Accruals and other liabilities                   105,692   163,690   100,709
-------------------------------------------------------------------------------
 Subordinated loans                               161,155   126,247   107,521
-------------------------------------------------------------------------------
 Total liabilities                                8,668,535 7,830,644 6,727,441
-------------------------------------------------------------------------------
 Owners' equity                                   715,260   677,641   602,282
-------------------------------------------------------------------------------
 incl. minority holding                           7,850     7,134     7,694
-------------------------------------------------------------------------------
 Total liabilities and owner's equity             9,383,795 8,508,285 7,329,723
-------------------------------------------------------------------------------




LHV Group's net income in the second quarter was affected by the continuing
decline in interest rates. The higher profitability compared to the previous
quarter resulted in a write-down effect of the previous provisions, which
resulted in an increase of the Group's net profit by 1.6 million euros in the
second quarter. The second quarter was also marked by strong growth in loan
volumes and deposits, which were 269 and 760 million euros, respectively,
compared to the previous quarter.

The number of LHV Pank clients increased by 8,300 over the quarter. During the
same period, the bank's deposits increased by 576 million euros, of which 113
million euros were deposits from financial intermediaries and 113 million euros
were platform deposits. In the second quarter, an innovative banking service LHV
Premium was also launched, combining everyday banking, insurance and travel
services offering investment comfort. In addition, a new price list for the
securities trading and investment account for pension entered into force in the
second quarter, which reduced several investment-related fees by almost half.

LHV Pank's loan portfolio increased by 190 million euros and the quality of the
portfolio remained strong. Due to the resolution of one of the major problems
with creditworthiness and the improved economic situation, the provisions made
earlier were reduced by 4.1 million euros.

In the second quarter, LHV Pank issued covered bonds with a maturity of four
years in the amount of 300 million euros, which were listed on the Dublin Stock
Exchange for the purpose of diversifying financing sources. Covered bonds
secured by Estonian home loans were sold to European institutional investors.
44 institutional investors participated in the offer and the offer was 2.5 times
oversubscribed.

The volume of deposits and loans of LHV Bank operating in the United Kingdom
continued to grow in the second quarter - the loan portfolio increased by 79
million euros to 569 million euros. At the same time, loans worth 204 million
euros have been approved by the Credit Committee but not yet issued.

The deposits taken by LHV Bank increased by 202 million quarter-on-quarter and
reached a record 1.02 billion euros. In the second quarter, the mobile bank of
retail banking was launched, where the first 1,000 clients have opened an
account and 17 million euros of new deposits have been received. LHV Bank earned
a net profit of 0.1 million euros in quarter-on-quarter terms - lower
profitability was due to higher marketing costs, conference participation fees,
allocated costs and changes in the value of interest rate risk hedging
contracts. In order to support the rapid growth of the loan portfolio, the share
capital was increased by 12 million euros and subordinated bonds were issued in
the amount of 12 million euros. As of the first half of the year, LHV Bank's net
income and net profit exceed strongly the financial plan.

LHV Kindlustus showed strong growth in the second quarter, when the insurance
revenue increased by 78% and net profit by 62% compared to the previous quarter,
but the result of the second quarter was slightly below the financial plan. The
volume of insurance premiums across the market decreased significantly compared
to the same quarter of the previous year. The results for the first half of the
year are well above the financial forecast. As of the end of June, LHV
Kindlustus had 176,000 clients and 278,000 valid insurance contracts.

The good rate of return shown by global financial markets in the second quarter
was also reflected in LHV's pension funds, which all offered a positive rate of
return. The rates of return of LHV pension funds M, L and XL were 1.2%, 1.0% and
2.8%, respectively, in the quarter. The rate of return of the more conservative
funds XS and S was 0.7% and 0.8%, respectively. Pensionifond Indeks increased by
3.0% and Pensionifond Roheline lost 4.4% in value. Net income of LHV Varahaldus
remained largely the same as in the previous quarter and net profit increased.
The number of second pillar clients making active monthly contributions was
110,000 by the end of the quarter.

As important information, it was disclosed that as of September 2, the green
pension funds of LHV II and III pillar will cease operations, merge with other
LHV funds and will be consolidated into LHV pension funds S and M, and the names
of the II pension pillar funds will change. As a result of the changes, LHV
clients will have the option to choose from four actively managed pension funds
to grow their savings. Starting in September, LHV's actively managed pension
funds will be named Julge, Ettevõtlik, Tasakaalukas, and Rahulik.

As of the end of the half-year, LHV Group is well capitalised. AT1 bonds worth
50 million euros and unsecured bonds worth 60 million euros were issued in the
second quarter. Moody's Ratings raised the ratings for LHV Pank's covered bond
programme and covered bonds to the highest level, Aaa. The Moody's Investors
Service ratings agency left AS LHV Pank's long-term deposits rating at A3 (with
a positive outlook) and LHV Group's long-term issuer rating at Baa3 (positive
outlook).The ratings confirm LHV's strong financial position and capitalisation
and express the expectation of a strengthening of creditworthiness.


Comment by Madis Toomsalu, the Chairman of the Management Board at LHV Group:

"We are pleased that LHV has continued on a strong growth trajectory. Over the
past year, our loan portfolio has grown by 1 billion euros, reaching 5 billion
euros by the end of the half-year. This reflects increased investment confidence
among Estonian companies, as well as the expansion of our UK loan book, which
has now surpassed the 500 million euros mark. We've also seen a rise in demand
for home loans and an overall increase in client activity. Several initiatives
are underway to support continued growth going forward."

To access the reports of AS LHV Group, please visit the website at
https://investor.lhv.ee/aruanded
(https://www.globenewswire.com/Tracker?data=0HjuAAbtqgGChxMmi93JTCR3xVGX4DdPSJD0
DquIH1Bx2B3GjRO0BXmeqP9UIg76-ECZ8ida3JJ_1LF1MXDNXoyakf_XTuy-
Ey5sRLFeprTZjB08dx6SpDIdB9-sdcze).

In order to present the results of the quarter, LHV Group will organise an
investor meeting via the Zoom webinar platform. The virtual investor meeting
will take place before the market opens on 22 July at 9.00. The presentation
will be in Estonian. We kindly ask you to register at the following address:
https://lhvbank.zoom.us/webinar/register/WN_6RKaesfVT1qxJZ5BWiT4TA

LHV Group is the largest domestic financial group and capital provider in
Estonia. LHV Group's key subsidiaries are LHV Pank, LHV Varahaldus, LHV
Kindlustus, and LHV Bank Limited. The Group employs over 1,100 people. As at the
end of June, LHV Pank services are being used by 474,000 clients, the pension
funds managed by LHV have 110,000 active clients, and LHV Kindlustus protects a
total of 176,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a
banking licence in the United Kingdom and provides banking services to
international financial technology companies, as well as loans to small and
medium-sized enterprises.

Investor Relations

Sten Hans Jakobsoo
Head of Investor Relations and Corporate Development
Email: [email protected] (mailto:[email protected])

Communications

Paul Pihlak
Head of Investment Communications
Email: [email protected] (mailto:[email protected])