LHV Group 2022 Audited Annual Report and Dividend ProposalThe Supervisory Board of AS LHV Group (hereinafter: LHV Group) approved the 2022 audited annual report and will submit it to the Annual General Meeting for approval. Compared to the unaudited interim report published on 7 February, there are no differences in the audited financial results. The 2022 consolidated annual report of LHV Group is attached to this notice and will be made available on the LHV Group investor page at https://investor.lhv.ee/en/reports/. In 2022, the consolidated revenues of LHV Group amounted to EUR 173.5 million (+24%). The expenses of the consolidation group in 2022 amounted to EUR 89.6 million (+38%). The consolidated net profit of LHV Group in 2022 amounted to EUR 61.4 million, i.e., 2% more than in 2021. The return on equity attributable to the shareholders of LHV Group was 16.4% in 2022. By the end of 2022, the consolidated assets of LHV Group stood at EUR 6.14 billion, declining by EUR 710 million (-10%) over the year. The volume of consolidated deposits decreased by 16% over the year, and stood at EUR 4.9 billion as at the turn of the year. The consolidated loan portfolio increased by 20% to EUR 3.21 billion. Over the course of the year, discounts were made in the extent of EUR 8.1 million (+104%). The aggregate volume of funds managed by LHV decreased by 1% over the year, to EUR 1.33 billion. The number of payments processed in relation to clients who are financial intermediaries reached 26.1 million in 2022 (-5% compared to 2021). The number of LHV bank clients increased by 18% over the year, to 378,000 bank clients. As at the end of the year, the number of active II pillar pension clients of LHV stood at 131,000 (-5%), and 150,000 clients had insurance from LHV Kindlustus (+5%). Across business units, AS LHV Pank generated a net profit of EUR 80.9 million (+26%) in 2022, of which EUR 13 million (+7%) was generated from servicing clients related to the UK branch. In 2022, AS LHV Varahaldus generated a net loss of EUR 103 thousand, and AS LHV Kindlustus generated a net loss of EUR 1.7 million. Due to costs related to the preparation of the banking licence, the net loss of LHV UK Ltd in 2022 amounted to EUR 11.7 million. LHV Group as a separate unit generated EUR 3.5 million in profit in 2022. Dividend proposal The Management Board of LHV Group proposes that the Annual General Meeting distribute the profit for 2022 as follows: - to pay dividends of EUR 0.04 per share, for a total amount of EUR 12.617 million; the income tax payable on dividends would be EUR 3.154 million;
- to add the profit of the reporting period attributable to shareholders of the parent company, in the amount of EUR 45.702 million, to profits brought forward;
- to transfer EUR 0 to the legal reserve.
The list of shareholders entitled to dividends will be fixed as at the close of business of the Nasdaq CSD settlement system on 05 April 2023. Consequently, the day of change of the rights attaching to the shares (ex-date) is set to 04 April 2023. From this day onwards, a person acquiring the shares will not have the right to receive dividends for the financial year 2022. Dividends will be paid to shareholders on 12 April 2023. LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, and LHV Kindlustus. The Group’s companies employ more than 900 people. As at the end of January, LHV’s banking services are being used by 383,000 clients, the pension funds managed by LHV have 129,000 active clients, and LHV Kindlustus protects a total of 154,000 clients. LHV’s UK branch offers banking infrastructure to 200 international financial services companies, via which LHV’s payment services reach clients around the world. Marthi Lepik
LHV Communication Specialist
Phone: +372 5666 2944
Email: marthi.lepik@lhv.ee
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