In Q3 of 2021,
Compared to Q2 of this year, the net profit of the Group grew by
In Q3, LHV Group’s volume of assets increased to
AS LHV Group’s consolidated net profit in the first nine months of 2021 was
Income statement, EUR thousand | Q3-2021 | Q2-2021 | 9 months 2021 | 9 months 2020 |
Net interest income | 25 857 | 22 927 | 69 156 | 48 599 |
Net fee and commission income | 9 546 | 9 098 | 27 284 | 19 168 |
Net gains from financial assets | 50 | 292 | -34 | 268 |
income from insurance activities | 435 | 419 | 943 | 0 |
Other income | 216 | 97 | 353 | 64 |
Total revenue | 36 103 | 32 834 | 97 702 | 68 098 |
Staff costs | -7 424 | -8 006 | -22 683 | -17 546 |
Office rent and expenses | -536 | -384 | -1 383 | -559 |
IT expenses | -1 138 | -993 | -3 136 | -2 379 |
Marketing expenses | -634 | -549 | -1 715 | -1 347 |
Other operating expenses | -5 518 | -7 993 | -18 018 | -10 717 |
Total operating expenses | -15 251 | -17 925 | -46 936 | -32 548 |
Earnings before impairment losses | 20 852 | 14 910 | 50 766 | 35 550 |
Impairment losses on loans and advances | -1 444 | 791 | -2 254 | -8 655 |
Income tax | -2 819 | -2 785 | -7 591 | -5 086 |
Net profit | 16 589 | 12 916 | 40 921 | 21 808 |
Profit attributable to non-controlling interest | 636 | 507 | 1 516 | 1 697 |
Profit attributable to share holders of the parent | 15 953 | 12 409 | 39 405 | 20 111 |
Balance sheet, EUR thousand | |||
Cash and cash equivalents | 3 769 432 | 3 341 694 | 1 753 730 |
Financial assets | 138 800 | 86 614 | 430 661 |
Loans granted | 2 566 887 | 2 418 634 | 1 870 335 |
Loan impairments | -18 024 | -17 298 | -14 512 |
Receivables from customers | 6 240 | 5 319 | 2 443 |
Other assets | 32 279 | 26 704 | 29 216 |
Total assets | 6 495 615 | 5 861 667 | 4 071 872 |
Demand deposits | 5 198 733 | 4 658 731 | 2 756 352 |
Term deposits | 257 838 | 262 762 | 459 132 |
Loans received | 563 203 | 505 867 | 471 554 |
Loans received and deposits from customers | 6 019 774 | 5 427 361 | 3 687 038 |
Other liabilities | 86 519 | 62 264 | 35 252 |
Subordinated loans | 110 000 | 110 000 | 125 000 |
Total liabilities | 6 216 294 | 5 599 625 | 3 847 290 |
Equity | 279 321 | 262 043 | 224 582 |
Minority interest | 7 899 | 7 263 | 5 921 |
Total liabilities and equity | 6 495 615 | 5 861 667 | 4 071 872 |
Profitability ratios | Q3-2021 | Q2-2021 | 9 months 2021 | 9 months 2020 |
Return on equity | 24,3% | 19,7% | 20,7% | 12,8% |
Cost / Income ratio | 42,2% | 54,6% | 48,0% | 47,8% |
Net gains from financial assets | 0,2% | -0,1% | 0,1% | 0,7% |
The quarterly result was influenced by high client activity and growth in the bank’s business volumes, as well as the volume of funds decreased due to the pension reform. The Group’s return on equity is better than planned and corresponds to long-term target. With regard to net profit,
Over the year, the Group’s volume of deposits has increased by EUR 2.2 billion (+70%) and loans by EUR 693 million (+37%). The volume of the funds managed by LHV has decreased by EUR 212 million (-14%). The number of payments made by financial intermediaries has increased by
Of the increase in deposits in Q3,
Over the quarter, the number of LHV bank clients increased more than 16,300 to 302,000 clients. Over the year, the number of the bank’s clients has increased by 28%. Just as important as the increase in credit volumes is the continued rise in investment activities. LHV has managed to empower its market leader role. During the quarter, nearly 9900 new investment agreements were concluded.
Among the most important service innovations in Q3, LHV Pank launched a pension investment account solution, the possibility to save for a home loan deposit with the Growth Account, and the option to open an account for a company electronically.
Compared to the previous quarter, the number of active II pension pillar clients in Asset Management decreased by 36,000, amounting to 139,000 now. Nevertheless, the impact of the pension reform was more modest than expected, with the largest pension reform costs remaining in Q2. The rate of return of the largest actively managed LHV pension funds M, L, and XL was 1.1%, 1.3%, and 0.7%, respectively. Following payouts, the proportion of alternative asset classes in actively managed pension funds is higher than before and closer to the long-term target.
The number of LHV Kindlustus clients has increased to 139,000 and client satisfaction with claims processing continues to remain high. The insurance product range was extended to include the insurance of residential premises for business clients. In connection with the boost in consumption, sales volumes increased in the sales of extended warranty and equipment insurance in Q3. In general, the insurance trends are in line with the expected development.
The application for a
Of the other significant events during the quarter, the rating agency Moody’s has provided
In August,
The number of the shareholders of LHV has increased to 17,500 investors. At the end of September,
Comment by
"The strong quarter shows that we have been able to maintain our growth despite an increasingly high benchmark, while being the third largest banking group in the Estonian banking market. In August, LHV Group’s market value reached more than
As promised, the growth in the value of our enterprise has been driven by business growth in
To achieve these goals, LHV has excellent people in place and the systems they have established, which we are constantly developing. I am glad to see that we are highly valued in the labour market as an employer."
To access the reports of
In order to introduce the quarterly results,
LHV Communication Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee
Attachments
- LHV Group Presentation 2021-Q3-EN
- LHV Group Factbook 2021-Q3-EN
LHV Group Interim Report 2021-Q3-EN
© OMX, source