Core Insights - LHV Group experienced strong growth in its deposit and loan portfolios by the end of 2025, despite facing challenges from the interest rate environment and competition in the deposit market [1][4][5] Financial Performance - Total net income for LHV Group in 2025 was EUR 304.8 million, a decrease of 10% compared to the previous year [2] - Net interest income fell to EUR 235.1 million, down 14% year-on-year, while net fee and commission income rose to EUR 63.3 million, an increase of 5% [2] - Consolidated expenses increased by 8% to EUR 159.3 million, leading to a consolidated net profit of EUR 117.0 million, which is 22% lower than in 2024 [2] Asset and Deposit Growth - By the end of 2025, consolidated assets reached EUR 10.23 billion, reflecting a 17% increase year-on-year [4] - The consolidated loan portfolio grew by EUR 913 million to EUR 5.47 billion, marking a 20% increase [4] - Consolidated deposits rose by EUR 1.22 billion to EUR 8.13 billion, an 18% increase [5] Customer Activity and Payment Processing - The number of LHV Pank customers increased by 8,800 in Q4, totaling 492,000 customers by year-end [10] - Payment processing for financial intermediary customers reached 85.6 million payments in 2025, a 15% increase from 2024 [6] Quarterly Performance - In Q4 2025, consolidated net income increased by 9% quarter-on-quarter to EUR 78.8 million, although it was 7% lower than the same period last year [7] - Net interest income in Q4 amounted to EUR 59.9 million, an 8% increase from Q3 [7] - The consolidated net profit for Q4 was EUR 30.8 million, a 17% increase compared to Q3 [8] Subsidiary Contributions - AS LHV Pank was the largest contributor to profit with a net profit of EUR 107.1 million in 2025 [3] - LHV Bank Limited and AS LHV Varahaldus also contributed positively, with net profits of EUR 5.5 million and EUR 4.1 million, respectively [3] Regulatory Developments - The European Central Bank conducted an on-site supervisory review of LHV Group, with findings indicating discrepancies in capital adequacy calculations [19][20] - LHV Group's capital position remains strong, having issued various bonds and received upgrades in credit ratings from Moody's [22] Recognition and Achievements - LHV Group received multiple accolades in 2025, including being named the Best Bank in Estonia by The Banker and Euromoney [13] - The company also achieved significant growth in its subsidiaries, particularly in the UK market, where LHV Bank's loan portfolio doubled year-on-year [24]

Core Viewpoint - LHV Group demonstrated strong financial performance in Q2 2025, achieving a net profit of 30.8 million euros, a 6% increase from the previous quarter, despite lower interest rates impacting revenue [1][5][8]. Financial Performance - LHV Group's consolidated revenue for Q1 2025 was 73.9 million euros, reflecting a 7% decrease from the previous quarter and a 14% decrease year-on-year [3]. - The net interest income for Q2 2025 was 57.6 million euros, while net fee and commission income was 15.6 million euros [3][7]. - Total expenses for Q2 2025 amounted to 40.5 million euros, an 8% increase from the previous quarter and an 11% increase year-on-year [3][7]. - The consolidated net profit for the first half of 2025 was 59.9 million euros, a decrease of 24% compared to the same period last year [5]. Asset and Loan Portfolio Growth - As of June 2025, LHV Group's consolidated assets reached 9.38 billion euros, a 10% increase from the previous quarter and a 28% increase year-on-year [4]. - The loan portfolio increased by 269 million euros (6%) in Q2 2025, totaling 5 billion euros, with a year-on-year increase of 1.1 billion euros (28%) [4][19]. - Consolidated deposits rose by 760 million euros (12%) to 7.36 billion euros [4]. Subsidiary Performance - All subsidiaries of LHV Group were profitable in Q2 2025, with LHV Pank earning a net profit of 29.7 million euros [2]. - LHV Kindlustus reported a 62% increase in net profit compared to the previous quarter, although it was slightly below the financial plan [15]. - LHV Bank Limited in the UK saw its loan portfolio grow by 79 million euros to 569 million euros [12][14]. Client Growth and Services - The number of clients at LHV Pank increased by 8,300 in Q2 2025, with deposits rising by 576 million euros [9]. - An innovative banking service, LHV Premium, was launched, combining banking, insurance, and travel services [9]. - The mobile bank for retail banking was launched, attracting 1,000 clients and 17 million euros in new deposits [14]. Market Position and Ratings - LHV Group is well-capitalized, having issued AT1 bonds worth 50 million euros and unsecured bonds worth 60 million euros in Q2 2025 [18]. - Moody's Ratings upgraded LHV Pank's covered bond programme to the highest level, Aaa, reflecting the group's strong financial position [18].

Core Insights - LHV Group reported a net profit of 30.8 million euros in Q2 2025, a 6% increase from the previous quarter, with a return on equity of 17.4% [1][5][6] - The loan portfolio reached 5 billion euros, reflecting a strong growth trajectory and increased investment confidence among Estonian companies [17] - All subsidiaries of LHV Group were profitable in Q2 2025, contributing to the overall positive financial performance [2] Financial Performance - Consolidated revenue for Q1 2025 was 73.9 million euros, a decrease of 7% from the previous quarter and 14% year-on-year [3] - Net interest income in Q2 2025 was 57.6 million euros, while net fee and commission income was 15.6 million euros [3][6] - Total expenses for Q2 2025 amounted to 40.5 million euros, an 8% increase from the previous quarter and 11% year-on-year [3][6] Asset and Loan Growth - As of June 2025, consolidated assets were 9.38 billion euros, a 10% increase from the previous quarter and 28% year-on-year [4] - The consolidated loan portfolio increased by 269 million euros (6%) in Q2 2025 and by 1.1 billion euros (28%) year-on-year [4][9] - Consolidated deposits rose by 760 million euros (12%) to 7.36 billion euros [4] Subsidiary Performance - LHV Pank earned a net profit of 29.7 million euros, while LHV Bank Ltd, LHV Varahaldus, and LHV Kindlustus reported net profits of 0.1 million euros, 0.5 million euros, and 1.1 million euros, respectively [2][5] - LHV Kindlustus experienced a 78% increase in insurance revenue and a 62% increase in net profit compared to the previous quarter [13] - LHV Bank in the UK saw its loan portfolio grow by 79 million euros to 569 million euros, with deposits reaching a record 1.02 billion euros [11][12] Market Developments - LHV Pank launched an innovative banking service, LHV Premium, which combines banking, insurance, and travel services [8] - The bank issued covered bonds worth 300 million euros, which were oversubscribed by 2.5 times, indicating strong demand from institutional investors [10] - LHV Group's pension funds showed positive returns, with rates of return for various funds ranging from 0.7% to 2.8% in Q2 2025 [14] Capitalization and Ratings - LHV Group remains well-capitalized, having issued AT1 bonds worth 50 million euros and unsecured bonds worth 60 million euros [16] - Moody's upgraded the ratings for LHV Pank's covered bond program to Aaa, reflecting the group's strong financial position [16]