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LHV Group’s financial plan for 2017

Teade

LHV Group is disclosing its’ financial plan for 2017. The group forecasts 18%
income growth and 10% consolidated net profit growth for this year. 

This year LHV starts releasing the yearly financial plan of the company, to
provide investors with a better overview of the group’s goals and promote
feeling of ownership among all investors. The company believes that informing
all parties as well as possible and treating investors equally is beneficial to
investor relations. LHV has the ambition to become the most open public company
in Estonia with highest investor relation standards. We will publish our
financial plan once a year in the beginning of the financial year and make
adjustments during the year when needed. 

"The financial plan of 2017 characterises the continuation of LHV’s growth
story. The 18% increase in income exceeds considerably the rise of costs and
will result in the well-paced improvement of our cost to income ratio. The
group’s net profit will amount to EUR 21.8 million. The 10% growth of net
profit contains income tax on payable dividends in the amount of EUR 1.5
million and loan impairment costs in the amount of EUR 4.2 million. In the plan
we have taken into account considerable rise in loan impairment costs, although
in case of ongoing positive credit cycle lower impairment costs are likely.
These costs will probably have the greatest effect on realisation of the
financial plan," Madis Toomsalu, CEO of LHV Group commented. 

In the financial plan LHV forecasts an income of EUR 59.7 million for 2017 and
a net profit of EUR 21.8 million for the consolidation group. The return on
equity held by the group’s shareholders is forecasted to be 17.9%. According to
the plan the bank’s yearly income will amount to EUR 40.2 million and net
profit to EUR 16.1 million. The asset management will post an income of EUR
13.8 million and a net profit of EUR 5.8 million as forecasted. 

According to LHV’s forecast the consolidated deposits will grow 13% and amount
to EUR 881 million by the end of 2017. Consolidated loan portfolio will grow
30% reaching EUR 701 million. The volume of funds managed by LHV is predicted
to grow 19% reaching EUR 1.158 billion. 

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 about 300 people and over 110,000 customers use LHV’s banking
services. Pension funds managed by LHV have 180,000 customers. 


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