August was the strongest month of 2026 for AS LHV Group. LHV Group earned a consolidated net profit of EUR 10.7 million in August, EUR 2.1 million more than in July. Return on equity attributable to shareholders was 16.2% in August. The result was driven by continued growth in net interest income, costs kept under control and the strong quality of the loan portfolio. Among the subsidiaries, AS LHV Pank earned a net profit of EUR 10.2 million and LHV Bank Ltd EUR 0.3 million. AS LHV Varahaldus earned a net profit of EUR 0.3 million and AS LHV Kindlustus EUR 0.3 million.
The consolidated loan portfolio of LHV Group reached EUR 5.91 billion at the end of August, growing by EUR 58 million over the month. In annual comparison, the loan portfolio grew by 14%. The net interest margin of the loan portfolio stood at 2.8% at the end of August, compared with 2.4% in the first months of the year. Impairments were released by EUR 0.2 million in August, mainly related to minor model-based changes in the credit portfolio. Deposits remained at EUR 7.66 billion, decreasing by EUR 5 million over the month. Deposits of regular customers increased, while deposits of financial intermediaries decreased. In annual comparison, deposits decreased by 1%. Assets under management reached EUR 1.85 billion, growing by EUR 54 million over the month and by 14% compared with the previous year. The number of payments related to financial intermediaries reached 8.3 million in August. At the end of August, the loan portfolio exceeded the financial plan by EUR 57 million. Deposits fell short of the financial plan by EUR 426 million, which is related to the deliberate reduction of platform deposits and the focus on demand deposits. Assets under management exceeded the financial plan by EUR 31 million.
The cumulative net profit of LHV Group for 2026 reached EUR 63.8 million by the end of August, falling short of the financial plan by EUR 4.6 million. In annual comparison, net profit was 19% lower. Cumulative net income reached EUR 205.0 million, falling short of the financial plan by EUR 4.5 million and being 1% higher in annual comparison. Net interest income remained strong, exceeding the financial plan by EUR 5.9 million since the beginning of the year. Cumulative net fee and commission income reached EUR 38.8 million, falling short of the financial plan by EUR 6.7 million due to lower-than-expected customer activity. Operating expenses reached EUR 117.2 million over eight months, exceeding the financial plan by EUR 4.4 million and growing by 13% in annual comparison, mainly driven this year by higher personnel expenses and IT investments. Impairments amounted to EUR 7.5 million over eight months, EUR 2.6 million less than foreseen in the financial plan. In August, LHV Group issued EUR 200 million of MREL bonds and EUR 15 million of AT1 bonds. LHV Group is well capitalised and all capital targets are met with a sufficient buffer.
LHV Pank
The net profit of LHV Pank in August reached EUR 10.2 million. Net interest income increased by EUR 0.5 million month-on-month and net fee and commission income remained at the July level. Operating expenses decreased by EUR 0.2 million. The number of LHV Pank customers increased by 3,000 in August, reaching 514,000 customers, and the number of customers making daily payments remained at 237,000.
The loan portfolio grew by EUR 29 million in August, reaching EUR 4.88 billion. Growth was split almost equally between corporate banking and retail loans. The quality of the loan portfolio remains strong and impairments were released by EUR 0.3 million in August.
The deposits of LHV Pank reached EUR 6.45 billion at the end of August, growing by EUR 116 million over the month. Demand deposits of regular customers continued to grow, while the volume of term deposits decreased.
The cumulative net profit of LHV Pank reached EUR 61.3 million by the end of August, falling short of the financial plan by EUR 5.7 million. Excluding intragroup interest rate swaps, net profit falls short of the financial plan by EUR 2.0 million. Cumulative net income reached EUR 154.3 million, falling short of the financial plan by EUR 6.9 million. At the end of August, the loan portfolio exceeded the financial plan by EUR 77 million and deposits fell short of the financial plan by EUR 218 million.
In connection with the expiry of the lease agreements of the Tartu and Pärnu customer offices, LHV Pank decided in August to close the customer offices in both cities as of 31 October 2026. The decision is driven by changing banking habits of customers and the continued decline in office visits. LHV services are increasingly used through digital channels and the bank has further increased investments in their development this year.
Three customer service positions will be made redundant in connection with the change. In addition to customer service, approximately ten people work daily at the Pärnu office and will continue in their current roles, but the office will be closed entirely. Tartu remains an important location for LHV, but the office space used there will be reduced. The reduction of office space also takes into account the new headquarters in Tallinn, to be completed in 2028, which will allow more employees and teams to be brought together in one location.
LHV Bank
The net profit of LHV Bank, operating in the United Kingdom, reached EUR 0.3 million in August. Net interest income reached EUR 3.6 million and continued to exceed the financial plan, supported by continued growth in SME lending and disciplined management of liquidity and funding costs, while the result was affected by lower banking services fee income and higher-than-expected impairments.
The loan portfolio of LHV Bank exceeded the one billion euro mark in August and reached EUR 1.03 billion at the end of the month, growing by EUR 28 million over the month. The loan portfolio falls short of the financial plan by EUR 24 million, but higher-than-planned completions in August reduced the shortfall. The volume of outstanding loan offers reached EUR 94 million. Deposits grew by EUR 106 million in August, reaching EUR 1.46 billion, in line with the financial plan. The number of customers stood at 31,000 at the end of August.
The cumulative net profit of LHV Bank reached EUR 3.8 million by the end of August, falling short of the financial plan by EUR 1.4 million, affected by lower banking services fee income and higher-than-planned impairments. In annual comparison, net profit has grown by 40%.
LHV Varahaldus
The net profit of LHV Varahaldus in August reached EUR 0.3 million, supported by the positive performance of fund units. Operating income and expenses were broadly in line with the financial plan.
All LHV II and III pillar pension funds delivered positive returns in August. The largest funds of LHV Varahaldus, Julge and Ettevõtlik, returned 2.6% and 2.5% respectively. The funds Tasakaalukas and Rahulik returned 1.0% and 0.7% respectively. LHV Pensionifond Indeks gained 2.7% in August and is the best-performing pension fund in Estonia based on the returns of the first eight months of the year. The total volume of funds under management reached EUR 1.85 billion at the end of August and the number of II pillar customers making active monthly contributions reached nearly 105,000.
The cumulative net profit of LHV Varahaldus reached EUR 0.2 million by the end of August, exceeding the financial plan by EUR 0.2 million. This year’s result has been affected by income tax of EUR 1.1 million related to the dividend payment made in March. The result has been supported by higher-than-expected average fund returns over the first eight months of the year. Assets under management exceeds the financial plan thanks to good returns.
LHV Kindlustus
The August result of LHV Kindlustus was supported by growth in net earned premiums and a considerably lower number of claims compared with July, resulting in a net profit of EUR 0.3 million for the month.
Sales results in August were in line with the financial plan and contract premiums written reached EUR 3.0 million. 11,032 new claims were registered, 650 fewer than in July, and claims of EUR 2.5 million were paid out, EUR 0.5 million less than in July. The gross loss ratio was 64.4% in August (76.1% in July) and the net loss ratio 66.5% (79.0% in July). At the end of August, the number of active insurance contracts was 333,000 and the number of customers reached 244,000.
The cumulative net profit of LHV Kindlustus reached EUR 0.1 million by the end of August, falling short of the financial plan by EUR 1.7 million. Cumulative contract premiums written exceed the financial plan by EUR 0.7 million.
AS LHV Group reports are available at: https://investor.lhv.ee/en/reports/
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s main subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus and LHV Bank Limited. The Group employs nearly 1,200 people. LHV’s banking services are used by more than 514,000 customers, LHV-managed II pillar pension funds have 105,000 active customers and LHV Kindlustus provides insurance protection to 244,000 customers. LHV Bank, a subsidiary of LHV Group, holds a UK banking licence and offers banking services to international financial technology companies, loans to small and medium-sized enterprises and retail banking services.
Investor Relations
Sten Hans Jakobsoo
Head of Investor Relations and Corporate Development
E-mail: stenhans.jakobsoo@lhv.ee
Communications
Paul Pihlak
Head of Communications
E-mail: paul.pihlak@lhv.ee
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