LHV Group (LHV1T) Q2 2025 earnings summary

Executive summary

• Q2 2025 net profit was €30.8m, up €1.6m from Q1 but down €7.8m year-over-year; EPS at €0.09, unchanged sequentially, down from €0.12 in Q2 2024.

• Loan portfolio reached €5bn, with UK portfolio surpassing €500m; strong business volume growth and efficiency improvements.

• Customer numbers and deposits increased significantly quarter-over-quarter.

• New LHV Premium banking service launched in Estonia; pension fund restructuring and rebranding planned for autumn.

• Moody's upgraded covered bond rating to Aaa; several successful bond issuances completed.

Financial highlights

• Net interest income for Q2 2025 was €57.6m, down 7% from Q1 and 18% year-over-year; net fee and commission income rose to €15.6m.

• Total net income was €73.9m, a 7% decrease from Q1 and 13% lower year-over-year; operating expenses at €41.9m.

• Loan portfolio grew by €269m (6% QoQ, 28% YoY) and deposits by €760m (12% QoQ, 27% YoY) compared to Q1 2025.

• Cost/income ratio increased to 54.8% from 47.3% in Q1 and 42.1% in Q2 2024.

• Return on equity was 17.4%, up from 17.0% in Q1 but down from 25.8% in Q2 2024.

Outlook and guidance

• Financial plan remains on track, with net profit exceeding plan by €2.3m for the quarter.

• Loan, payment, and deposit volumes ahead of plan; fund volumes slightly below expectations.

• Focus remains on deposit growth, customer activation, and expanding retail banking services.

• The Group aims to increase active clients to reduce reliance on expensive foreign investment sources.