LHV Group's Strong Performance in Q4 and 2024: A Look at the Unaudited Financial Results

LHV Group, the largest domestic financial group and capital provider in Estonia, has released its unaudited financial results for Q4 and the 12 months of 2024. The Group's strong performance was driven by robust business growth, increased client activity, and a successful end to the year. Here's a breakdown of the key financial highlights and the factors contributing to LHV Group's success.



Q4 and 12-Month Results:

* Net revenue for 2024 was 338.3 million euros, an 11% increase from the previous year.
* Annual net interest income increased to 273.3 million euros (+8%), and net fee and commission income to 60.3 million euros (+24%).
* Consolidated expenditure for 2024 totalled 146.9 million euros, i.e., 14% higher than the previous year.
* The consolidated net profit of AS LHV Group in 2024 was 150.3 million euros, i.e., 9.4 million euros more than in 2023 (+7%).

Key Drivers of Success:

1. Strong Loan Issue and Deposit Taking: LHV Group's success was supported by a good level of client activity and higher than previous fee and commission income. The decline in interest income was mitigated by strong growth in the loan portfolio.
2. Growth in Loan Portfolio: The Group's consolidated loan portfolio increased by 990 million euros to 4.55 billion euros (+28%) in 2024. In Q4, the loan portfolio increased by 10%, i.e., 426 million euros. Corporate loans increased by 328 million euros over the quarter, and retail loans by 98 million euros.
3. Increased Deposits: The Group's consolidated deposits grew by 1.18 billion euros over the year to 6.91 billion euros (+21%). In Q4, deposits increased by 624 million euros, i.e., 10%, while deposits of regular clients increased by 134 million euros.
4. Expansion of Retail Business: The Group's rapid growth was also influenced by the expansion of its retail business in the United Kingdom, which contributed to the increase in liabilities.



Q4 Results:

* AS LHV Group's consolidated net profit in Q4 amounted to 36.3 million euros, which is 1.6 million euros more than in Q3 (+5%). On a year-on-year basis, quarterly profit increased by 11%.
* The Group's consolidated net income increased by 2% in Q4 compared to the previous quarter of the year to 84.9 million euros. Net income was 1% higher than last year.
* Net interest income was generated at 66.6 million euros, and net fee and commission income at 17.3 million euros. Consolidated operating expenses were 40.8 million euros in Q4, which is 14% higher than in Q3 and 13% higher than a year earlier.

LHV Group continued its rapid growth in 2024, driven by a strong end to the year influenced by a good level of client activity and higher than previous fee and commission income. The Group's capital adequacy remains at a good level, and the updated financial plan forecasts a return on equity based on net profit of 4.5 percentage points higher than planned in February. LHV Group invests growing capital in the growth of loan portfolios at the expense of the profit earned, contributing to the Group's overall success.