LHV Pank profits fall 28 percent on year to Q1 2025
Estonian bank LHV Grupp's profits fell 28 percent on year to the first quarter of 2025 (Q1 2025), the bank reported.
LHV earned a net profit of €29.2 million in Q1 2025.
Outgoing LHV Grupp CEO Madis Toomsalu told "Aktuaalne kaamera" there are three main factors behind the profit decline.
He said: "Interest rates themselves are falling, we're essentially talking about the Euribor, effectively controlled by the central bank."
"Second, starting this year, banks are paying significantly more in advance income tax – 18 percent of profits go to taxes. Third, we have made significantly more loan impairments, but the goal is to partially reverse these impairments over the coming quarters, meaning this is not a final credit loss," Toomsalu went on.
LHV said its loan impairments more than doubled on year to Q1 2025, mainly due to two clients being classified as non-performing.
Toomsalu is one of two major bank CEOs stepping down; Coop's Margus Rink is the other.
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Editor: Valner Väino, Andrew Whyte
Source: "Aktuaalne kaamera"
