In Q3 of 2020,
Compared to Q2 of this year, the net profit of the consolidation group grew by
In Q3, LHV Group’s volume of assets increased to
Within the quarter, LHV added more than 11,000 bank clients, with the bank’s total number of clients surpassing 235,000. The number of active clients of the II pension pillar increased by more than 4000 in the quarter.
In Q3, all pension funds managed by LHV Varahaldus had a positive rate of return; at that, funds with a higher equity risk showed the best rate of return. In Q3, the best rate of return was provided by LHV Pension Fund Roheline, its rate of return for the three months being 20.4%.
AS LHV Group’s consolidated net profit in the first 9 months of 2020 was
Comment by
"For LHV, the third quarter was active and effective. We have continued with an open credit policy and with activities directed at the future. Our credit portfolio remains high quality. Our clients have used the grace periods granted largely as a precaution for ensuring liquidity. September was a great example of this: in relation to grace periods, of the loans in the amount of
However, looking at the volume of billions of euros that are proposed as a political response to the estimated economic downturn, Estonian companies should prepare for the next economic upturn. The real world is indeed more complicated, since an economic downturn will lead to a decrease in investments with a leveraged effect; also, in order to benefit, different subsidies and loans received must be placed in a yielding manner. Still, considering the political measures and the measures of central banks, a considerable amount of funds will reach the real economy through money markets. Whether this is all good or reasonable should be left for discussions of economic theory, but in case of today’s investment decisions, mathematics should not be ignored. In the short term, the main virtue is still liquidity, and such a recommendation for making investments is directed at companies with a sufficient cash balance or good access to financing. Likewise, it is important to carefully contemplate the sustainability of such investments as well as their suitability for the future.
Among the more important events, the international business magazine Euromoney picked LHV as the best bank in
In September, we finished the public offering of LHV’s subordinated bonds. Since the initial issue volume of
After the quarter, at the beginning of October, we finalised the transaction in the course of which we acquired Danske’s credit portfolio related to Estonian companies, apartment associations and the public sector. The final volume of the transaction worked out to
We are still applying for an activity licence for the non-life insurance undertaking LHV Kindlustus. We hope to receive the activity licence from the
In terms of profit, we are ahead of the current financial plan published in April by
Income statement, EUR thousand | Q3-2020 | Q2-2020 | 9 months 2020 | 9 months 2019 |
Net interest income | 16 731 | 15 545 | 48 599 | 34 119 |
Net fee and commission income | 6 472 | 6 188 | 19 168 | 19 250 |
Net gains from financial assets | 335 | 322 | 268 | 500 |
Other income | 44 | -16 | 64 | 26 |
Total revenue | 23 582 | 22 039 | 68 098 | 53 895 |
Staff costs | -5 630 | -6 146 | -17 546 | -14 029 |
Office rent and expenses | -45 | -236 | -559 | -682 |
IT expenses | -868 | -782 | -2 379 | -1 909 |
Marketing expenses | -557 | -315 | -1 347 | -1 646 |
Other operating expenses | -3 613 | -3 183 | -10 717 | -9 641 |
Total operating expenses | -10 713 | -10 661 | -32 548 | -27 908 |
EBIT | 12 869 | 11 378 | 35 550 | 25 987 |
Earnings before impairment losses | 12 869 | 11 378 | 35 550 | 25 987 |
Impairment losses on loans and advances | 27 | -7 672 | -8 655 | -1 663 |
Income tax | -2 122 | -156 | -5 086 | -3 664 |
Net profit | 10 774 | 3 550 | 21 808 | 20 660 |
Profit attributable to non-controlling interest | 677 | 615 | 1 697 | 1 583 |
Profit attributable to share holders of the parent | 10 096 | 2 935 | 20 111 | 19 078 |
Balance sheet, EUR thousand | |||
Cash and cash equivalents | 1 753 730 | 1 438 793 | 1 468 510 |
Financial assets | 430 661 | 423 117 | 124 035 |
Loans granted | 1 870 335 | 1 818 644 | 1 233 626 |
Loan impairments | -14 512 | -14 608 | -11 561 |
Receivables from customers | 2 443 | 3 039 | 33 491 |
Other assets | 29 216 | 28 527 | 28 700 |
Total assets | 4 071 872 | 3 697 512 | 2 374 714 |
Demand deposits | 2 756 352 | 2 512 196 | 2 005 227 |
Term deposits | 459 132 | 574 739 | 529 442 |
Loans received | 471 554 | 271 553 | 28 640 |
Loans received and deposits from customers | 3 687 038 | 3 358 488 | 2 563 309 |
Other liabilities | 35 252 | 35 702 | 39 524 |
Subordinated loans | 125 000 | 90 000 | 75 000 |
Total liabilities | 3 847 290 | 3 484 190 | 2 677 833 |
Equity | 224 582 | 213 322 | 198 967 |
Minority interest | 5 921 | 5 243 | 4 505 |
Total liabilities and equity | 4 071 872 | 3 697 512 | 2 374 714 |
In order to introduce the quarterly results,
Communication Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee
Attachments
- LHV Group Factbook 2020-Q3-EN
LHV Group Interim Report 2020-Q3-EN- LHV Group Presentation 2020-Q3-EN
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