Published: 2015-10-30 08:53:03 CET
LHV Group
Quarterly report

LHV Group III quarter and 9 months unaudited financial results

LHV Group posted a net profit of EUR 11.6 million in the first nine months of 2015, with the bank contributing EUR 7.8 million, asset management EUR 3.7 million and the Lithuanian business unit EUR 0.4 million. LHV Group's annualised return on equity was 23%.


Erkki Raasuke, LHV Group CEO: "Both LHV Bank and LHV Asset Management showed very good results, while simultaneously strengthening their position for further growth.

At the end of August, the Bank opened its own ATM network and launched a new mobile bank. The Bank also disclosed its plans of becoming the third largest and most important full-service bank in Estonia. New customer numbers have increased 2-4 times after these news.

The results of Asset Management were affected by the restrictions established in August 2015 on management fees for mandatory pension funds. The greater the fund volume, the lower the management fees payable as a percentage of the fund volume. The fee and commission income consequently dropped in August. On a positive note, the conservative investment tactics pursued by Asset Management over the last 12 months have paid off against the backdrop of the global stock market correction.

The year 2015 has proved successful for the LHV Group thus far. The last few months have seen a number of victories of hard labour, along with the consequent inflow of new customers. LHV is going at a good pace, with sights set on a promising horizon.


Q3 2015 vs Q3 2014 (9 months 2015 vs 9 months 2014):

• Net interest income EUR 6.2m, +42% (+46%)

• Total income EUR 10.2m, +33% (+32%)

• Operating expenses EUR 6.1m +26% (+18%)

• Credit impairments EUR 0.6m compared to 0.7 (1.3m compared to 1.4)

• Net profit EUR 3.4m +43% (+105%)

• Return on equity (ROE) 19.5% compared to 18.3% (23.4% compared to 17.5%)

• Cost-income ratio lowered by 3.3 percentage points to 59.6% (lowered by 7.4 percentage points to 61.1%)

• Groups consolidated loans increased EUR 39m during Q3 to EUR 396m and deposits increased by EUR 80m to EUR 580m.

• Core Tier1 capital adequacy ratio was 15.6% 2 percentage points lower than year ago and total capital adequacy was 19.5% 4 percentage points lower than Q3 2014.


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 has a representative office in Tallinn, Tartu, Riga, and Vilnius. LHV employs over 250 people and more than 70,000 customers use LHV’s banking services. LHV's pension funds have over 130,000 customers.


         Priit Rum
         Communication Manager
         Telephone: +372 502 0786

LHV Group interim report III Q 2015.pdf