AS LHV Group showed growth in both profit and business volumes in July. LHV Group earned a consolidated net profit of EUR 8.7 million in July, which is EUR 1.8 million more than in June. The return on equity attributable to shareholders was 13.5% in July. Among the subsidiaries, AS LHV Pank earned a net profit of EUR 6.6 million and LHV Bank Ltd EUR 0.9 million. AS LHV Varahaldus earned a net profit of EUR 0.1 million and AS LHV Kindlustus posted a net loss of EUR 0.3 million.
The consolidated loan portfolio of LHV Group reached EUR 5.85 billion as at the end of July, growing by EUR 80 million over the month. In annual comparison, the loan portfolio grew by 16%. The net interest margin of the loan portfolio stood at 2.8% as at the end of July. The volume of deposits reached EUR 7.66 billion, growing by EUR 104 million over the month, supported mainly by an increase in the deposits of financial intermediaries. In annual comparison, the volume of deposits grew by 1%. The volume of funds managed by LHV reached EUR 1.80 billion, growing by EUR 9 million over the month, and compared to the previous year, the volume of funds has grown by 13%. The number of payments related to financial intermediaries reached 7.5 million in July. As at the end of July, the loan portfolio exceeds the financial plan by EUR 41 million. The volume of deposits falls short of the financial plan by EUR 276 million, which is related to the deliberate reduction of platform deposits and the focus on demand deposits. The volume of funds is in line with the financial plan.
LHV Group's cumulative net profit for 2026 reached EUR 53.1 million by the end of July, falling short of the financial plan by EUR 4.1 million. In annual comparison, net profit was 25% lower. Cumulative net income reached EUR 177.7 million, falling short of the financial plan by EUR 3.3 million and being 1% lower in annual comparison. July income was affected by a negative fair value revaluation of EUR 2.3 million on the bonds in the liquidity portfolio. Net interest income remained strong, exceeding the financial plan by EUR 4.3 million since the beginning of the year. Cumulative net fee and commission income reached EUR 34.1 million, falling short of the financial plan by EUR 4.6 million due to lower than expected client activity. Operating expenses amounted to EUR 103.1 million over the seven months, exceeding the financial plan by EUR 3.5 million and growing by 14% in annual comparison, driven mainly by higher personnel costs and IT investments. Impairments amounted to EUR 7.7 million over the seven months, i.e. EUR 1.1 million less than foreseen in the financial plan, reflecting the strong quality of the loan portfolio. LHV Group is well capitalised and all capital targets are met with a sufficient buffer.
LHV Pank
The net profit of LHV Pank in July reached EUR 6.6 million. Net interest income increased by EUR 0.9 million in monthly comparison, while net fee and commission income decreased by EUR 0.3 million. Operating expenses decreased by EUR 1.1 million, mainly due to lower personnel costs. The result was affected by a negative revaluation of EUR 1.8 million on intra-group interest rate swaps, which is eliminated at the group level. The number of LHV Pank's clients increased by 2,700 in July, reaching 511,000 clients and the number of clients making everyday payments remained at the level of 237,000.
The loan portfolio grew by EUR 25 million in July, reaching EUR 4.85 billion. Growth was driven primarily by the continued increase in the home loan portfolio. The quality of the loan portfolio remains strong and impairments remained at a low level of EUR 0.5 million in July.
The volume of LHV Pank's deposits reached EUR 6.33 billion at the end of July, growing by EUR 107 million over the month. The growth resulted mainly from an increase in the deposits of financial intermediaries.
In July, LHV Pank launched an MCP server, which allows clients to connect their bank accounts to artificial intelligence tools. In addition, Euromoney once again named LHV Pank the best bank in Estonia.
The cumulative net profit of LHV Pank reached EUR 51.1 million by the end of July, falling short of the financial plan by EUR 5.7 million. Excluding intra-group interest rate swaps, net profit falls short of the financial plan by EUR 2.2 million. Cumulative net income reached EUR 133.6 million, falling short of the financial plan by EUR 5.7 million. As at the end of July, the loan portfolio exceeds the financial plan and deposits fall short of the financial plan.
LHV Bank
The net profit of LHV Bank, operating in the United Kingdom, reached EUR 0.9 million in July. Net interest income continued to exceed the financial plan, supported by higher SME loan margins as well as disciplined management of liquidity and funding costs.
LHV Bank's loan portfolio reached EUR 998 million at the end of July, growing by EUR 53 million over the month, but falls slightly short of the financial plan. The volume of undrawn loan offers reached EUR 110 million. Deposits decreased by EUR 38 million in July, reaching EUR 1.35 billion, as liquidity and funding costs continued to be managed actively. By the end of July, the number of clients was 29 thousand.
In July, LHV Bank was named a finalist for two Money Age Awards, in the categories Consumer Champion of the Year and Innovation in Consumer Finance. The nominations recognise the bank's competitive savings and current account offering, transparent products, and self-service application.
The cumulative net profit of LHV Bank reached EUR 3.6 million by the end of July, falling short of the financial plan by EUR 0.4 million, affected by lower fee income and higher than planned impairments.
LHV Varahaldus
The net profit of LHV Varahaldus in July reached EUR 0.1 million and the results were broadly in line with the financial plan.
The total volume of funds under management reached EUR 1.80 billion at the end of July, growing by EUR 9 million over the month. The number of 2nd pillar clients making active monthly contributions reached nearly 104,500 by the end of July.
Markets were weaker in July and local index funds showed negative returns. The larger funds of LHV Varahaldus, Julge and Ettevõtlik, delivered returns of 0.5% and 0.9% in July, respectively. The returns of the funds Tasakaalukas and Rahulik were 0.5% and 0.1%, respectively. The LHV Pensionifond Indeks declined by 3.0% in July.
The cumulative net loss of LHV Varahaldus remained just below EUR 0.1 million as at the end of July. This year's result has been affected by income tax of EUR 1.1 million related to the dividend payment made in March. Despite this, the result slightly exceeds the financial plan. The result has been supported by higher than expected average fund returns over the first seven months of the year. Assets under management is in line with the financial plan.
LHV Kindlustus
The July result of LHV Kindlustus was affected by a higher than usual number of large claims, and the net loss for the month amounted to EUR 0.3 million.
Strong sales in almost all product groups brought the volume of premiums of contracts concluded in July to EUR 4.4 million. 11,640 new claims were registered and claims were paid out in the amount of EUR 2.9 million. The gross loss ratio was 76.1% in July (65.9% in June) and the net loss ratio 79.0% (68.7% in June). As at the end of July, the number of active insurance contracts was 329,000 and the number of clients reached 244,000.
The cumulative net loss of LHV Kindlustus reached EUR 0.1 million by the end of July, falling short of the financial plan by EUR 1.8 million, resulting from a higher than expected volume of claims during the year. Cumulative premiums of concluded contracts exceed the financial plan by EUR 0.7 million.
The reports of AS LHV Group 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, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs close to 1,200 people. As at the end of July, LHV's banking services are used by more than 510,000 clients, the pension funds managed by LHV have 104,000 active clients, and LHV Kindlustus protects a total of 244,000 clients. LHV Bank, a subsidiary of the Group, holds a banking licence in the United Kingdom and provides banking services to international financial technology companies, loans to small and medium-sized enterprises, and retail banking services.
Investor Relations
Sten Hans Jakobsoo
Head of Investor Relations and Corporate Development
Email: stenhans.jakobsoo@lhv.ee
Media and Communications
Paul Pihlak
Head of Communications
Email: paul.pihlak@lhv.ee
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