LHV Group (LHV1T) Q3 2024 earnings summary

Executive summary

• Q3 2024 net profit was EUR 34.7 million, down EUR 3.9 million from Q2 2024 and EUR 4.8 million from Q3 2023; 9M 2024 net profit up EUR 5.9 million year-over-year.

• Net income in Q3 2024 was EUR 84.9 million, a decrease of EUR 2.4 million from Q2 2024 but up EUR 3.4 million year-over-year.

• Management updated the 2024 financial plan, increasing profitability goals by a third, expecting all business lines to meet targets.

• Loan volume grew 6% quarter-over-quarter and 22% year-over-year; deposit volume increased by EUR 502 million in Q3.

• Emphasis on maintaining loan portfolio quality amid rapid growth and negative GDP environment.

Financial highlights

• Net interest income in Q3 2024 was EUR 67.4 million, down 4% from Q2 2024, up 1% year-over-year.

• Net fee and commission income stable at EUR 16.3 million; up 20% year-over-year.

• Operating expenses were EUR 37.2 million, down EUR 0.3 million from Q2 2024, up EUR 4.4 million year-over-year.

• Loan and bond provisions increased to EUR 7.3 million from EUR 5.0 million in Q2 2024 and EUR 2.9 million in Q3 2023.

• Return on equity was 22.4% in Q3 2024, down from 25.8% in Q2 2024 and 31.6% in Q3 2023.

Outlook and guidance

• Profitability goals for 2024 were raised by a third in September, with expectations that all business lines will meet financial targets.

• Management highlights volatility in profitability due to rapid loan growth and negative GDP growth.