LHV Group 2024 Audited Annual Report and Dividend Proposal

Core Insights - LHV Group's audited annual report for 2024 was approved by the Supervisory Board and will be submitted for approval at the Annual General Meeting, with no differences from the previously published unaudited interim report [1] Financial Performance - LHV Group generated consolidated revenue of 338.3 million euros in 2024, reflecting an 11% increase year-over-year [2] - Net interest income was 273.3 million euros, up 8%, while net fee and commission income rose by 24% to 60.3 million euros [2] - Total expenses for the year amounted to 146.9 million euros, a 14% increase [2] - The consolidated net profit for 2024 was 150.3 million euros, representing a 7% increase from 2023 [2] - The cost/income ratio was 43.4%, and return on equity stood at 24.5% [2] - Ordinary earnings per share were 0.46 euros, with diluted earnings per share at 0.45 euros [2] Asset and Deposit Growth - As of the end of 2024, consolidated assets reached 8.74 billion euros, a 23% increase year-over-year [3] - Consolidated deposits grew by 21% to 6.91 billion euros [3] - The consolidated loan portfolio increased by 28% to 4.55 billion euros [3] - The volume of funds managed by LHV rose by 3% to 1.56 billion euros [3] - Payments processed for financial intermediary clients reached 74.8 million, a 51% increase [3] Client Base Expansion - The number of LHV Pank clients increased to 455,000, with a growth of 38,000 clients or over 9% during the year [4] - Active II pillar pension clients decreased by 8% to 114,000, while clients with LHV Kindlustus increased by 6% to 170,000 [4] Subsidiary Performance - AS LHV Pank reported a net profit of 140.5 million euros, slightly down from 141.4 million euros in 2023 [5] - UK Bank Limited earned 5.8 million euros, up from 5.3 million euros in 2023 [5] - AS LHV Varahaldus reported a net profit of 1.6 million euros, down from 1.7 million euros in 2023 [5] - AS LHV Kindlustus saw a significant increase in profit to 1.2 million euros from 0.3 million euros in 2023 [5] - LHV Group as a separate unit generated a profit of 81.7 million euros in 2024 [5] Dividend Proposal - The Management Board proposed a dividend of 0.09 euros per share, totaling 29.177 million euros, with an income tax of 8.229 million euros payable on dividends [6][9] - The profit for the reporting period, amounting to 123.228 million euros, will be transferred to retained earnings [9] Company Overview - LHV Group is the largest domestic financial group and capital provider in Estonia, with key subsidiaries including LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited [7] - The Group employs over 1,200 people and serves 460,000 banking clients, 112,000 pension fund clients, and 172,000 insurance clients [7] - LHV Bank Limited holds a banking license in the UK and provides services to international financial technology companies and loans to SMEs [7]