LHV Group financial plan for 2026 and the five-year financial forecast

Core Viewpoint - LHV Group is focused on growth in business volumes and customer activity, with an expected increase in total income by approximately 9% in 2026, driven by net interest income and net fee and commission income growth [1][2] Financial Performance - Total income is projected to rise from EUR 304.8 million in 2025 to EUR 333.6 million in 2026, reflecting a 9% increase [3] - Net interest income is expected to grow by 8% from EUR 235.1 million in 2025 to EUR 252.9 million in 2026 [3] - Net fee and commission income is forecasted to increase by 23%, from EUR 63.3 million in 2025 to EUR 77.8 million in 2026 [3] - Profit before tax is anticipated to rise by 2% to EUR 147.1 million, while net profit is expected to remain stable at EUR 117.9 million [3] Business Growth - The loan portfolio is expected to grow by over 11%, reaching EUR 6.1 billion, while deposits are projected to increase by more than 5% to EUR 8.6 billion [2][3] - LHV Pank's loan portfolio is expected to increase by approximately 4%, primarily driven by home loans and SME lending [4] - LHV Bank's loan portfolio is projected to grow by more than 50%, aiming for EUR 1 billion [6][8] Operational Efficiency - The cost-to-income ratio is expected to improve from 52.3% in 2025 to 51.3% in 2026, indicating better operational efficiency [3] - LHV Varahaldus anticipates a cost-to-income ratio improvement from 61.1% to 58.4% due to controlled expense growth [10] Long-term Outlook - LHV Group forecasts total income to increase to over EUR 593 million by 2030, with net loans projected to grow from EUR 5.5 billion to over EUR 10 billion [14][15] - Return on equity is expected to rise from approximately 16% to above 23% by 2030 [15]