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LHV Group results in October 2022

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In October, AS LHV Group earned EUR 6.9 million in consolidated net profit. AS
LHV Pank earned EUR 8.3 million and AS LHV Varahaldus EUR 181,000 in net profit.
Of the Bank's profit, EUR 1.2 million was from servicing clients related to the
United Kingdom branch. At the same time, AS LHV Kindlustus earned a net loss of
EUR 72,000 and the loss by LHV UK Limited amounted to EUR 1.4 million.

During the month, the consolidated loan portfolio of LHV Group grew by EUR 77
million, supported by the acquisition of a loan portfolio in the United Kingdom,
with Estonian corporate loans increasing by EUR 30 million and retail loans by
EUR 26 million. Credit quality remains good. Deposits decreased by EUR 248
million over the month. Of the decrease, a total of EUR 204 million was due to
deposits from financial intermediaries and EUR 54 million from corporate banking
deposits. The volume of funds managed by LHV increased by EUR 27 million over
the month. In October, 1.9 million payments from financial intermediary clients
were processed.

The strong performance by LHV during the month was fuelled by higher levels of
interest income and an increase in the loan portfolio, which improved
profitability. The difference with the financial plan in this respect narrowed,
with the achievement of the annual financial plan depending on the credit
quality of the last two months.

In other highlights, Moody's Investors Service affirmed the ratings of LHV Group
and LHV Pank at the same investment grade level of Baa3 with a stable outlook.

After the end of October, AS LHV Group issued EUR 100 million of senior
unsecured, unsubordinated bonds to meet regulatory requirements (the so-called
MREL ratio). The bonds will mature in September 2025, with early redemption
right in 2024. The senior unsecured, unsubordinated bonds were sold to 29
institutional investors from eight different countries. The total interest cost
of the bonds was 8.0%. The coupon rate of the bonds, which is paid annually to
investors, is 0.875%, similar to the original bonds.

October was a successful month of growth for LHV Pank, as the number of clients
increased by 5,200, including 3,200 clients making settlements. In October, the
Bank focused on the promotion of its investment services, with more than 5,000
people participating in the stock market game 'Stock Shark', and the 'Investing
for Beginners: Basic Training Course' for those interested in investments, came
to an end. The use of the Entrepreneur Account offered to clients has grown
rapidly, with the number of users of this product exceeding 11,000 at the end of
October.

The market share of LHV Varahaldus has increased to 30% in terms of fund volume.
By the end of the month, LHV had over 130,000 active Pillar II pension clients.
The larger pension funds had a positive month in terms of rate of return,
supported by rising equity prices in the markets. The operating revenues of
Varahaldus are in line with the plan, while costs and profitability are slightly
behind the plan.

October was an active sales month for LHV Kindlustus with more than 14,000 new
agreements signed. Premiums are ahead of schedule, efficiency is improving, and
client satisfaction with claims handling remains high. Loss events were
compensated for in the amount of EUR 500,000.

In terms of the United Kingdom, the emphasis remains on applying for a credit
institution licence, as well as starting up SME lending activities for which LHV
UK is applying for registration as a credit issuer.

To access the reports of LHV Group, please visit the website
at https://investor.lhv.ee/en/reports (https://investor.lhv.ee/en/reports/).

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 860 people. As at the end of October,
LHV's banking services are used by 369,000 clients, the pension funds managed by
LHV have 130,000 active clients, and LHV Kindlustus protects a total of
150,000 clients. LHV's UK branch offers banking infrastructure to 200
international financial services companies, via which LHV's payment services
reach clients around the world.




Priit Rum
Communication manager
Phone: +372 502 0786
Email: [email protected] (mailto:[email protected])