Börsiteade

Pealkiri

LHV Group IV quarter and 12 months unaudited financial results

Teade

LHV Group earned EUR 14.8 million of profits in 2015
LHV Group posted a net profit of EUR 14.8 million for the year 2015, with the
bank contributing EUR 9.9 million, asset management EUR 4.7 million and the
Lithuanian business unit EUR 1.1 million. LHV Group's annualized return on
equity was 21%. In 2014 LHV Group posted a net profit of EUR 9.7 million. 

In 2015 LHV’s loan portfolio grew by EUR 109 million (+36%) reaching EUR 410
million, deposits grew by EUR 159 million (+35%) reaching EUR 617 million and
funds under management by EUR 66 million (+13%) reaching EUR 570 million,
year-over-year. 

LHV's consolidated profit for Q4 2015 amounted to EUR 3.2 million, which is EUR
0.2 million less than in Q3 2015 and EUR 0.8 million less than in Q4 2014
(comprised extraordinary revenue). The group's consolidated loan portfolio grew
by EUR 14 million during the quarter and deposits by EUR 27 million. The volume
of funds managed by LHV grew by EUR 27 million during Q4. 

According to Erkki Raasuke, CEO of LHV Group 2015 was a successful year for
LHV. „The established objectives were achieved and exceeded. We focus our
efforts to create additional value for our customers and further advance our
economic environment. In October LHV Group became a listed company, conducted a
successful public offering of new subordinated bonds and gained a thousand new
investors. 

For LHV Bank the pace was good in the second half of the year and we gained a
huge number of new customer. In the fourth quarter over 7600 new customers
opened an account with us and this resulted in the bank’s customers number
reaching a round 80,000. During the year the number of LHV Bank’s private
customers rose by 34% and business customers by 51%. 

When it comes to asset management it’s important to note that LHV ranked first
in all categories in terms of yield of 2nd-pillar pension funds managed. The
uncertainty on the markets proved the conservative policy of our fund manager
right. 

Mokilizingas' profit for Q4 amounted to EUR 0.5 million, loan portfolio grew by
EUR 2 million, with the credit quality remaining strong. Mokilizingas is the
second largest hire-purchase provider on the Lithuanian market, and is
recognized for the good service and transparent pricing,“ commented Erkki
Raasuke. 

Income statement, EURt                             2015     2014  Q4-201  Q4-201
                                                                       5       4
Net interest income                              23 233   16 474   6 370   4 925
Net fee and commission income                    14 665   12 548   3 802   3 313
Net gains from financial assets                     431      513     189      93
Other income                                         57      -16      21     -16
Total revenue                                    38 386   29 519  10 382   8 315
Staff costs                                     -10 977   -8 554  -3 014  -2 363
Office rent and expenses                         -1 358   -1 268    -366    -346
IT expenses                                      -1 371   -1 209    -370    -324
Marketing expenses                               -3 896   -4 198  -1 123  -1 001
Other operating expenses                         -6 505   -4 700  -2 115  -1 360
Total operating expenses                        -24 107  -19 929  -6 988  -5 394
EBIT                                             14 279    9 590   3 394   2 921
Earnings before impairment losses                14 279    9 590   3 394   2 921
Impairment losses on loans and advances          -1 367   -1 680     -35    -268
Income tax                                         -269     -151     -72     -38
Loss from associates accounted for using the        -36      -14     -36     -14
 equity method                                                                  
Net profit for the reporting period from         12 607    7 745   3 251   2 601
 continued operations                                                           
Profit/-loss from discontinued operations         2 181    1 922      -2   1 405
Net profit                                       14 788    9 667   3 249   4 006
Profit attributable to non-controlling            1 082      464     422      89
 interest                                                                       
Profit attributable to owners of the parent      13 706    9 203   2 827   3 917



Balance sheet, EURt                         December 2015  December 2014
Cash and cash equivalents                         230 501         84 129
Financial assets                                  110 116        149 525
Loans granted                                     414 677        305 099
Loan impairments                                   -4 680         -4 067
Receivables from customers                          2 026          1 566
Other assets                                        4 486         19 439
Total assets                                      757 126        555 691
Demand deposits                                   432 811        273 668
Term deposits                                     184 411        184 254
Loans received                                     15 538         17 091
Loans received and deposits from customers        632 760        475 013
Other liabilities                                  20 226          5 995
Subordinated loans                                 30 900         16 650
Total liabilities                                 683 886        497 658
Equity                                             73 240         58 033
Minority interest                                   3 241          2 159
Total liabilities and equity                      757 126        555 691

Reports of AS LHV Group are available at
https://www.lhv.ee/en/for-investors/reports. 

LHV Group is the largest domestic financial group and capital provider in
Estonia. LHV Group's key subsidiaries are AS LHV Pank and AS LHV Varahaldus.
LHV employs over 250 people and more than 80,000 customers use LHV’s banking
services. LHV's pension funds have over 130,000 customers. 


         Priit Rum
         Communication Manager
         Telephone: +372 502 0786
         Email: [email protected]