Published: 2016-02-09 07:00:00 CET
LHV Group
Quarterly report

LHV Group IV quarter and 12 months unaudited financial results

LHV Group earned EUR 14.8 million of profits in 2015

LHV Group posted a net profit of EUR 14.8 million for the year 2015, with the bank contributing EUR 9.9 million, asset management EUR 4.7 million and the Lithuanian business unit EUR 1.1 million. LHV Group's annualized return on equity was 21%. In 2014 LHV Group posted a net profit of EUR 9.7 million.

In 2015 LHV’s loan portfolio grew by EUR 109 million (+36%) reaching EUR 410 million, deposits grew by EUR 159 million (+35%) reaching EUR 617 million and funds under management by EUR 66 million (+13%) reaching EUR 570 million, year-over-year.

LHV's consolidated profit for Q4 2015 amounted to EUR 3.2 million, which is EUR 0.2 million less than in Q3 2015 and EUR 0.8 million less than in Q4 2014 (comprised extraordinary revenue). The group's consolidated loan portfolio grew by EUR 14 million during the quarter and deposits by EUR 27 million. The volume of funds managed by LHV grew by EUR 27 million during Q4.

According to Erkki Raasuke, CEO of LHV Group 2015 was a successful year for LHV. „The established objectives were achieved and exceeded. We focus our efforts to create additional value for our customers and further advance our economic environment. In October LHV Group became a listed company, conducted a successful public offering of new subordinated bonds and gained a thousand new investors.

For LHV Bank the pace was good in the second half of the year and we gained a huge number of new customer. In the fourth quarter over 7600 new customers opened an account with us and this resulted in the bank’s customers number reaching a round 80,000. During the year the number of LHV Bank’s private customers rose by 34% and business customers by 51%.

When it comes to asset management it’s important to note that LHV ranked first in all categories in terms of yield of 2nd-pillar pension funds managed. The uncertainty on the markets proved the conservative policy of our fund manager right.

Mokilizingas' profit for Q4 amounted to EUR 0.5 million, loan portfolio grew by EUR 2 million, with the credit quality remaining strong. Mokilizingas is the second largest hire-purchase provider on the Lithuanian market, and is recognized for the good service and transparent pricing,“ commented Erkki Raasuke.

Income statement, EURt  2015 2014 Q4-2015 Q4-2014
   Net interest income 23 233 16 474 6 370 4 925
   Net fee and commission income 14 665 12 548 3 802 3 313
   Net gains from financial assets 431 513 189 93
   Other income 57 -16 21 -16
Total revenue 38 386 29 519 10 382 8 315
   Staff costs -10 977 -8 554 -3 014 -2 363
   Office rent and expenses -1 358 -1 268 -366 -346
   IT expenses -1 371 -1 209 -370 -324
   Marketing expenses -3 896 -4 198 -1 123 -1 001
   Other operating expenses  -6 505 -4 700 -2 115 -1 360
Total operating expenses -24 107 -19 929 -6 988 -5 394
EBIT 14 279 9 590 3 394 2 921
Earnings before impairment losses 14 279 9 590 3 394 2 921
   Impairment losses on loans and advances  -1 367 -1 680 -35 -268
   Income tax -269 -151 -72 -38
   Loss from associates accounted for using the equity method -36 -14 -36 -14
Net profit for the reporting period from continued operations 12 607 7 745 3 251 2 601
Profit/-loss from discontinued operations 2 181 1 922 -2 1 405
Net profit 14 788 9 667 3 249 4 006
   Profit attributable to non-controlling interest 1 082 464 422 89
   Profit attributable to owners of the parent 13 706 9 203 2 827 3 917

 

Balance sheet, EURt  December 2015 December 2014
   Cash and cash equivalents 230 501 84 129
   Financial assets 110 116 149 525
   Loans granted 414 677 305 099
   Loan impairments -4 680 -4 067
   Receivables from customers 2 026 1 566
   Other assets 4 486 19 439
Total assets 757 126 555 691
      Demand deposits 432 811 273 668
      Term deposits 184 411 184 254
      Loans received 15 538 17 091
   Loans received and deposits from customers 632 760 475 013
   Other liabilities 20 226 5 995
   Subordinated loans 30 900 16 650
Total liabilities 683 886 497 658
Equity 73 240 58 033
   Minority interest 3 241 2 159
Total liabilities and equity 757 126 555 691

Reports of AS LHV Group are available at https://www.lhv.ee/en/for-investors/reports.

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 over 250 people and more than 80,000 customers use LHV’s banking services. LHV's pension funds have over 130,000 customers.

         Priit Rum
         Communication Manager
         Telephone: +372 502 0786
         Email: priit.rum@lhv.ee


LHV Group interim report IV Q 2015.pdf