Börsiteade

Pealkiri

LHV Group’s unaudited financial results for Q3 and nine months of 2025

Teade

The third quarter of 2025 was characterised by an increase in business volumes,
with continued pressure on revenues and profitability for the LHV Group.

In Q3 2025, LHV Group earned EUR 26.3 million in net profit. LHV Pank posted a
net profit of EUR 24.5 million, LHV Bank Ltd EUR 1.0 million, LHV Kindlustus EUR
0.7 million and LHV Varahaldus EUR 0.8 million. The return on equity
attributable to the shareholders of the Group was 14.3% in Q3.

On a consolidated basis, LHV Group earned net income of EUR 72.7 million in Q3
2025, which was 2% less than in the previous quarter and 13% less than a year
ago. Of the net income in Q3 of this year, EUR 55.5 million was net interest
income and EUR 15.3 million net fee and commission income. Expenses totalled EUR
38.8 million, which was 4% less than in the previous quarter and 8% more than a
year ago. Loan impairment in Q3 amounted to EUR 1.7 million due to few
customers. The Group's net profit of EUR 26.3 million was 14% lower in Q3 than
in the previous quarter and 24% less than in the same period of the previous
year.

As at the end of September, LHV Group's consolidated assets amounted to EUR
9.53 billion, which was 2% more than in the previous quarter and 22% more than
in the same period last year. The consolidated loan portfolio grew by EUR 236
million, or 5%, to EUR 5.23 billion. LHV Group's consolidated deposits increased
by EUR 89 million, or 1%, to EUR 7.45 billion. The volume of funds managed by
LHV increased by EUR 57 million, to EUR 1.62 billion. The number of payments
made by customers who are financial intermediaries was 21.3 million in Q3, which
exceeded the previous quarter by 1.4 million payments.

LHV Group's consolidated net income for the first 9 months of 2025 totalled EUR
226.0 million, which is EUR 27.4 million, or 11% less than in the same period
last year. Expenses totalled EUR 116.8 million, which was EUR 10.7 million, or
10% more. The Group's consolidated net profit for the first nine months was EUR
86.2 million, which is EUR 27.8 million or 24% less than a year earlier. LHV
Pank posted a net profit of EUR 79.4 million in 9 months, LHV Bank Ltd EUR 3.3
million, LHV Kindlustus EUR 2.4 million and LHV Varahaldus EUR 1.4 million. LHV
Group's ROE was 16.1% for 9 months.

Based on the 9 months of 2025, LHV Group is EUR 2.8 million (-1%) behind the
financial forecast given the level of net income and EUR 2.7 million (-3%)
behind the plan at the level of net profit.


 Income statement, thousands of euros                                   Q3 2024
                                                    Q3 2025   Q2 2025  adjusted
-------------------------------------------------------------------------------
 Net interest income                                 55,532    57,643    67,427
-------------------------------------------------------------------------------
 Net fee and commission income                       15,296    15,579    14,629
-------------------------------------------------------------------------------
 Net financial income                                 1,167       380       798
-------------------------------------------------------------------------------
 Result of the insurance service                        627     1,065       356
-------------------------------------------------------------------------------
 Other operating income and expense                      39         0       355
-------------------------------------------------------------------------------
 Total net income                                    72,661    73,907    83,565
-------------------------------------------------------------------------------
 Staff costs                                        -22,351   -22,901   -19,499
-------------------------------------------------------------------------------
 Office expenses                                       -730      -679      -801
-------------------------------------------------------------------------------
 IT costs                                            -3,837    -4,017    -3,612
-------------------------------------------------------------------------------
 Marketing expenses                                  -1,140    -1,526    -1,297
-------------------------------------------------------------------------------
 Other operating expenses                           -10,704   -11,387   -10,701
-------------------------------------------------------------------------------
 Total expenses                                     -38,762   -40,510   -35,910
-------------------------------------------------------------------------------
 Operating profit                                    33,899    33,397    47,655
-------------------------------------------------------------------------------
 Profit before loan impairment                       33,899    33,397    47,655
-------------------------------------------------------------------------------
 Loan impairment                                     -1,673    -4,152    -7,276
-------------------------------------------------------------------------------
 Income tax expense                                  -5,916    -6,784    -5,682
-------------------------------------------------------------------------------
 Net profit                                          26,310    30,765    34,697
-------------------------------------------------------------------------------
 Minority holding                                       606       716       312
-------------------------------------------------------------------------------
 Profit attributable to shareholders of the
 parent company                                      25,703    30,049    34,385
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 Net profit per share, euros                           0.08      0.09      0.11
-------------------------------------------------------------------------------
 Diluted net profit per share, euros                   0.08      0.09      0.10
-------------------------------------------------------------------------------






 Balance sheet, thousands of euros                  Sept 25   June 25   Sept 24
-------------------------------------------------------------------------------
 Cash and due from banks                          3,837,093 3,867,487 3,376,016
-------------------------------------------------------------------------------
 Financial assets                                   402,971   454,979   259,933
-------------------------------------------------------------------------------
 Loans to customers                               5,279,528 5,038,379 4,168,778
-------------------------------------------------------------------------------
 Loan impairment reserve                            -45,277   -39,734   -42,543
-------------------------------------------------------------------------------
 Trade receivables                                   12,403    16,626    10,598
-------------------------------------------------------------------------------
 Other assets                                        42,980    46,058    47,567
-------------------------------------------------------------------------------
 Total assets                                     9,529,699 9,383,795 7,820,349
-------------------------------------------------------------------------------
 Demand deposits                                  4,862,458 4,669,435 4,160,516
-------------------------------------------------------------------------------
 Term deposits                                    2,590,440 2,694,906 2,125,844
-------------------------------------------------------------------------------
 Loans received                                   1,048,556 1,037,347   679,550
-------------------------------------------------------------------------------
 Trade payables and loans received                8,501,454 8,401,688 6,965,910
-------------------------------------------------------------------------------
 Accrued expenses and other liabilities              84,143   105,692   108,605
-------------------------------------------------------------------------------
 Subordinated debt                                  207,001   161,155   106,079
-------------------------------------------------------------------------------
 Total liabilities                                8,792,598 8,668,535 7,180,594
-------------------------------------------------------------------------------
 Owners' equity                                     737,101   715,260   639,755
-------------------------------------------------------------------------------
 incl. minority holding                               8,456     7,850     8,006
-------------------------------------------------------------------------------
 Total liabilities and owner's equity             9,529,699 9,383,795 7,820,349
-------------------------------------------------------------------------------

LHV Group's net income in Q3 was affected by the impact of interest rate
dynamics. Due to the negative delay period, interest rates on loans have fallen
faster than on deposits, which has therefore put net interest income under
pressure. Profitability was affected by the increase in loan impairments related
to individual customers compared to the previous quarter. Loan volumes and
deposits continued to grow in Q3, having increased by EUR 236 million and EUR
89 million, respectively, compared to the previous quarter.

The number of LHV Pank customers grew by 9,200 during the quarter. Customer
activity is good when it comes to settlements and card usage. During the same
period, the bank's deposits increased by EUR 79 million, of which only EUR
1 million came from the deposits of financial intermediaries. The bank's
deposits amounted to EUR 6.64 billion at the end of September. The share of term
deposits remains higher than planned. The focus remains on activating deposits
and customers. Euromoney, a leading international business magazine, named LHV
Pank the best bank in Estonia. In addition, employer branding agency Instar
conducted a survey on job expectations and employer reputation, which revealed
that LHV Pank is the preferred employer among economics students and the
working-age population in 2025.

The loan portfolio of LHV Pank increased by EUR 145 million compared to the
previous quarter and amounted to EUR 4.57 billion. The quality of the portfolio
remained strong, with loan impairment attributable to few customers. High
competition in the loan market is putting downward pressure on loan margins. As
at 9 months, the net profit of LHV Pank was EUR 79.4 million, which is EUR 2.8
million below the financial plan.

LHV Bank's loan portfolio in the United Kingdom increased by EUR 91 million, to
EUR 660 million. At the same time, loans worth more than EUR 200 million have
been approved by the Credit Committee but not yet been issued, which is also a
prerequisite for the rapid growth of loan volumes in the next quarter.

The deposits taken by LHV Bank decreased by 20 million quarter-on-quarter and
amounted to EUR 1.0 billion. Apple Pay and push notifications were added to the
offer in Q3, and direct debits and additional deposit products are planned to be
launched in the next quarter. After the addition of new products, the plan is to
make the pricing of deposits more attractive and start a new marketing and
communication campaign. In order to support the rapid growth of the loan
portfolio, the share capital was increased by EUR 12 million. As at 9 months,
LHV Bank's net profit was EUR 3.3 million, exceeding the financial plan by EUR
0.8 million.

The sales results of LHV Kindlustus for Q3 were slightly below the financial
plan. The volume of insurance premiums across the market decreased significantly
compared to the same period last year. Quarterly sales increased by EUR 1.7
million year-on-year due to good sales in home and travel insurance. As at the
end of September, the number of valid insurance contracts stood at 289,000,
which has increased by 12,000 over the quarter. As at 9 months, the net profit
of LHV Kindlustus was EUR 2.4 million, exceeding the financial plan by EUR 0.7
million.

The growth of financial markets and the strong rise in the price of gold in Q3
were also reflected in LHV pension funds, which all offered a strong positive
return. The rates of return of LHV pension funds Ettevõtlik, Julge and
Tasakaalukas were 5.2%, 5.8%, and 3.1%, respectively in the quarter. The
conservative fund Rahulik rose by 1.7%. The pension fund Indeks rose by 8.4%. In
9 months, the net income of LHV Varahaldus remained largely the same as in the
previous quarter, and net profit increased. The number of second pillar
customers making active monthly contributions was 107,000 by the end of the
quarter.

LHV Group is well capitalised and all capital objectives are met with sufficient
margin. In Q3, LHV Group issued EUR 80 million worth of subordinated bonds.
Moody's upgraded the non-subordinated debt rating of LHV Group to Baa2.


Comment by Mihkel Torim, Chairman of the Management Board at LHV Group:

"The third quarter was a period in which falling interest rates and competitive
pressure on margins affected LHV's results. Nevertheless, we continued to grow
our key business volumes at a solid pace: our loan portfolio increased by 27%
year-on-year to EUR5.2 billion, while the number of clients, the volume of
payments processed for financial intermediaries, and the assets managed by our
funds all grew. Deposits also showed strong growth, reaching EUR7.5 billion,
providing a solid foundation for our future lending activities. We remain well-
capitalised, and the recent bond issuance further strengthens our position going
forward."

To access the reports of AS LHV Group, please visit the website at
https://investor.lhv.ee/en/reports/
(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 on 21 October at 9.00, before the market opens. The presentation
will be in Estonian. To participate in the webinar, please register
(https://events.teams.microsoft.com/event/81b87bf7-565b-4a35-9885-
de70572a849f@d7b2bdd1-6077-4f89-8708-6956b8db8f1a) in advance.

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 September, the services of LHV Pank are being used by 483,000 customers,
the pension funds managed by LHV have 107,000 active customers, and LHV
Kindlustus protects a total of 227,000 customers. 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
E-mail: [email protected] (mailto:[email protected])

Media and Communication
Paul Pihlak
Head of Communications
E-mail: [email protected]
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