LHV Group AS Reports Robust November Performance
LHV Group AS (NASDAQ OMX Tallinn: LHV) confirmed a solid November performance, posting a consolidated net profit of €11.9 million—an increase from €10.2 million in the preceding month. The group’s return on equity attributable to shareholders rose to 19.3 %, underscoring effective capital utilisation across its subsidiaries.
Profit Drivers and Sub‑Company Contributions
| Subsidiary | November Net Profit (EUR) | YoY Change |
|---|---|---|
| AS LHV Pank | 11.4 million | +1.0 million |
| LHV Bank Ltd | 0.9 million | +0.15 million |
| AS LHV Varahaldus | 0.2 million | +0.03 million |
| AS LHV Kindlustus | 0.04 million | +0.01 million |
AS LHV Pank, the flagship commercial bank, contributed the lion’s share of earnings, reflecting its expanding loan book and fee income. LHV Bank Ltd’s profitability, though modest, was bolstered by a €40 million increase in loan volume, bringing its portfolio to €4.65 billion. The asset‑management arm (AS LHV Varahaldus) and the insurance subsidiary (AS LHV Kindlustus) also posted gains, signalling healthy diversification.
Balance Sheet Highlights
- Deposits increased by €155 million, reaching €7.66 billion—an uplift driven by a 2,875‑customer rise at LHV Pank, bringing total customers to 489,000.
- Loan Portfolio expanded by €94 million, now standing at €5.38 billion.
- Funds Under Management grew by €14 million to €1.67 billion, reflecting stronger asset‑management performance.
- Financial Intermediary Payments for November totaled €7.5 million, a modest uptick that aligns with the group’s broader fee‑based revenue expansion.
Market Context
The company’s 52‑week high of €3.945 and low of €3.225, with a current close of €3.385, indicates a relatively stable share price trajectory. A price‑to‑earnings ratio of 9.14 positions LHV Group favourably against peers, suggesting that market participants are pricing in the firm’s solid profitability and growth prospects.
Forward Outlook
LHV Group’s continued emphasis on digital banking, mobile services, and a broadened loan product suite—ranging from consumer and mortgage loans to corporate financing—aligns with its strategic objective of capturing market share in the Estonian financial services sector. The firm’s diversified revenue streams—from deposits and loans to asset management and insurance—provide a resilient foundation as it navigates evolving regulatory and economic environments.
Investors should note the company’s strong return on equity and the steady expansion of its loan and deposit bases, which collectively signal a robust trajectory for both earnings and balance‑sheet health in the coming quarters.
