LHV Group (LHV1T) Q3 2025 earnings summary

Executive summary

• Q3 2025 net profit was EUR 26.3 million, down from Q2 and Q3 2024, with profit attributable to shareholders at EUR 25.7 million.

• Business volumes reached record highs, with strong growth in loans, deposits, and customer numbers.

• LHV was recognized as the best bank in Estonia and as the most attractive employer.

• Moody's upgraded the senior unsecured debt rating to Baa2, and 80 EURm in Tier 2 subordinated bonds were issued.

• Management noted Q3 as the weakest quarter of the year, citing declining interest rates impacting loan and liquidity portfolios faster than deposits.

Financial highlights

• Q3 net profit was EUR 26.3 million, down from EUR 30.8 million in Q2, mainly due to higher deposit rates and interest expenses.

• Net interest income for Q3 was EUR 55.5 million, down 4% from Q2 and 18% from Q3 2024.

• Net fee and commission income was EUR 15.3 million, down 2% sequentially but up 5% year-over-year.

• Cost/income ratio was 53.3%, up from 43.9% a year ago but improved sequentially.

• 9-month net profit totaled EUR 86.2 million, slightly below the financial plan by EUR 2.7 million.

Outlook and guidance

• Loan, payment, and deposit volumes are ahead of plan, while fund volumes are slightly below.

• Management expects improved profitability as base interest rates in loan portfolios align with market rates.

• Deposit portfolio growth is expected to continue supporting loan expansion.

• Focus remains on deposit growth, customer activation, and maintaining strong loan portfolio quality.

• Macroeconomic outlook has improved, but additional impairments were made for specific clients.