Published: 2017-02-07 10:00:00 CET
LHV Group
Company Announcement

LHV Group’s financial plan for 2017

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

LHVGroup FP2017 Investor presentation.pdf