LHV Group's Financial Plan: A Glimpse into the Future

As the financial results of AS LHV Group surpassed the initial plan for 2024, the company has released an updated financial plan for the year. This plan takes into account the gradually falling interest rates and the slowly improving macroeconomic situation, while maintaining a forward-looking approach to provisions. The updated plan also reflects the Group's commitment to investing in the growth of loan portfolios at the expense of profit, ensuring capital adequacy remains at a good level.

Key indicators for the updated financial plan include:

* Financial results, EURt:
+ Total revenue: 349,397 (13% higher than the previous plan)
+ Total expenses: 150,903 (5% higher than the previous plan)
+ Impairment losses on loans: 23,676 (25% higher than the previous plan)
+ Earnings before taxes: 174,818 (25% higher than the previous plan)
+ Net profit: 150,304 (25% higher than the previous plan)
* Business volumes, EURm:
+ Loans: 4,343 (8% larger than the previous plan)
+ Deposits: 6,667 (at the same level as previously forecast)
+ Assets under management: 1,573 (6% lower than the previous plan)
* Key ratios:
+ Cost / Income ratio: 43.2% (-0.1 pp compared to the previous plan)
+ ROE: 24.8% (-4.4 pp compared to the previous plan)
+ Capital adequacy: 20.5% (-3.0 pp compared to the previous plan)

The updated financial plan forecasts a 13% higher revenue, 5% higher expenses, and 25% higher net profit by the end of 2024 compared to the previous plan. This is driven by an 8% larger loan portfolio and higher interest rates than forecast in the previous plan. At the same time, fee and commission income is affected by the slower growth in the income from financial intermediaries.

Higher operating expenses are managed by focusing on cost-saving measures, such as improving efficiency and productivity, optimizing IT infrastructure and processes, and exploring partnerships or outsourcing arrangements. The Group also plans to allocate resources effectively to maximize the impact of their investments in the UK retail market.



In conclusion, the updated financial plan for AS LHV Group reflects the company's ability to adapt to changes in the macroeconomic situation and interest rates, while maintaining a focus on growth and profitability. By investing in loan portfolios and managing expenses effectively, the Group is well-positioned to achieve its financial targets for 2024.

To access the reports of AS LHV Group, please visit the website at .