LHV Group (LHV1T) investor relations material

Executive summary

• Q1 2026 net profit was EUR 19.7 million, in line with plan but down 36% from Q4 2025 and 32% from Q1 2025.

• Capital and liquidity remain robust, with CET1 at 16.2% and LCR at 192%, both well above targets.

• Loan portfolio grew 18% year-over-year to EUR 5.59 billion; deposits up 18% year-over-year to EUR 7.80 billion.

• Customer base reached 500,000 in Estonia and 700,000 group-wide, with 85,000 year-over-year growth.

• Asset management delivered Estonia's best-performing pension funds; insurance segment faced higher claims due to adverse weather and geopolitical events.

Financial highlights

• Net interest income was EUR 59.3 million, down 4% year-over-year due to margin compression despite volume growth.

• Net fee and commission income increased 4% year-over-year to EUR 14.7 million.

• Operating expenses rose 21% year-over-year, mainly from personnel and one-off items, totaling EUR 45.6 million.

• Impairment losses decreased 77% year-over-year, reflecting strong portfolio quality.

• Cost/income ratio increased to 61.9% (+14.6pp YoY); return on equity fell to 10.7% from 17.0% a year ago.

Outlook and guidance

• Management views Q1 as in line with the financial plan, with optimism for future results as interest income is ahead of plan.

• Loan volumes and assets under management are on plan, while deposits are slightly ahead.

• Deposit repricing expected to ease funding cost pressures; gradual improvement in net interest margin anticipated.

• Results are expected to gradually improve, especially if credit risk remains low and insurance segment recovers.