LHV Group results in April 2020
In April 2020, AS LHV Group earned EUR 1.6 million in net loss. The loss of AS LHV Pank made up EUR 2.1 million of it and AS LHV Varahaldus earned EUR 0.5 million in net profit.
The April results were influenced to a large extent by the deteriorating economic situation resulting from the emergency situation, as the bank increased the loan impairment reserve and the impairment loss amounted to EUR 5.6 million largely due to a more negative outlook of the macro-economy. These are model-based impairments, insofar as the actual credit portfolio has remained strong. The share of debts in the corporate loan portfolio, overdue for more than 30 days, was 0.3% as at the end of April. Whereas the actual amount of allowances was EUR 1.2 million less than in the financial plan published in April.
Business volumes continued to grow, as the deposit volume increased by EUR 84 million in April, exceeding the threshold of EUR 3 billion for the first time. The group’s loan portfolio increased by EUR 7 million, to EUR 1.75 billion. The volume of the funds managed by LHV grew by EUR 59 million, to EUR 1.4 billion. The number of clients of the bank had a decent rise of more than 2,900 clients.
During the state of emergency, LHV has granted grace periods free of charge and without changing other conditions to clients who have found themselves in a complicated situation. As at the end of April, the bank had granted a grace period on 2,346 occasions (one-third of them to companies) to loans totalling EUR 178 million (80% being corporate loans).
Due to the sharp change in the economic environment, LHV Group revealed an updated financial plan for the current year in April. Compared to the plan published in February, the volume of business growth was cut down, the volume of loan impairment was increased significantly and the profit forecast was lowered. At the end of April, AS LHV Group exceeds its financial plan in terms of net profit by EUR 1.9 million. Furthermore, in April the group proceeded with the preparations for the issue of mortgage covered bonds and foundation of the insurance undertaking LHV Kindlustus.
AS LHV Group reports are available at 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 and LHV Varahaldus. LHV employs over 460 people. LHV’s banking services are used by 219,000 clients, and pension funds managed by LHV have 178,000 active clients.
Phone: +372 502 0786