LHV Group (LHV1T) Investor Update summary

Business environment

• Estonia's economy contracted by 1.0% in 2024, with slow recovery expected and weak domestic demand due to geopolitical uncertainty.

• Tax hikes are expected to accelerate price growth, with core inflation remaining high and unemployment slightly elevated for several years.

• The UK faces slow economic recovery, with inflation driven by energy prices and unemployment projected to rise to 4.8% by 2027.

LHV Group performance and impact

• Loans to private customers reached EUR 1.9bn and to businesses EUR 5.7bn in 2024; taxes paid totaled EUR 162m.

• Over five years, loan and deposit volumes grew 2.6x, with annual growth rates of 21% for loans and 22% for deposits.

• Deposits stood at EUR 6.9bn, loan volume at EUR 4.6bn, and number of customers at 456,000 in 2024.

Strategy and mission

• Aims to be Estonia's largest and most profitable bank by 2032 and second largest by 2027.

• Focus on high-quality relationships, best service, and strong investor relations.

• LHV Bank in the UK targets payments and corporate loans; LHV Varahaldus seeks at least 6% return on actively managed funds.