Profit of LHV increases by 23% to €27.2 million in 2018 ({{commentsTotal}})

LHV Bank. Image is illustrative.
LHV Bank. Image is illustrative. Source: Martin Dremljuga/ERR

LHV Group reported a profit of €27.2 million for the 2018 business year, which is 23% more than in 2017. Of the group's different business units, the bank made a profit of €18.4 million, the asset management branch €6.8 million, and the Lithuanian branch another €3 million, LHV told the Tallinn stock exchange.

Pre-tax returns on shareholder equity was 20.9%, and the return on equity based on net profit 18.4% in 2018.

The loan portfolio of LHV Group increased by 26% or €187 million year on year, and deposits shrank by 7% or €115 million. The volume of funds managed by LHV grew by 10% or €112 million year on year.

"Our business demonstrated strong growth throughout the last year. The number of LHV bank customers increased by 7,500 in the last quarter, totalling 28,000 new customers for the entire year. We are especially pleased about the loan growth, which expanded our loan portfolio by more than a quarter compared to the beginning of the year," group CEO Madis Toomsalu said.

"We reached a record level by activity indicators. We have more customers than ever before who receive their salary in LHV accounts and who keep their assets here. More payments are made than before, more LHV bank cards are used, more investment contracts have been signed. The increased use of banking services is also reflected well in the fast growth of retail deposits, the year on year growth of which was €310 million," Mr Toomsalu added.

In the last quarter of 2018, AS LHV Group earned a consolidated net profit of €6.7 million. Impairment of loans in the fourth quarter amounted to €500,000, and advance tax was also paid in the amount of €500,000.

"As one of the most important events of the quarter, Moody's assigned AS LHV Bank an investment-grade rating on Baa1 level with a stable outlook. This rating ensures the acceptance of LHV bank guarantees by beneficiaries outside Estonia. Furthermore, it facilitates the establishment of correspondent relationships," Mr Toomsalu said.

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Editor: Dario Cavegn



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