LHV Group (LHV1T) Q4 2025 earnings summary

Executive summary

• Net income reached EUR 305 million and net profit EUR 117 million for 2025, with a 20% year-over-year loan portfolio growth and 18% deposit growth; return on equity was 16% at group level.

• 2025 was a challenging year with strong volume growth but net income and profit fell short of plan by 2.5% and 6.5% respectively.

• Subsidiaries in Estonia saw 11% growth in loans and deposits; UK operations doubled loan portfolio to EUR 782 million and reached 5,000 retail customers.

• Asset management achieved top performance in Estonian pension funds, and insurance business doubled net profit with 13% premium growth.

• Q4 net interest income increased 8% quarter-over-quarter, and net income rose 20% quarter-over-quarter.

Financial highlights

• Group net profit was EUR 117 million, EUR 8 million short of the financial plan, mainly due to lower-than-expected net interest income and higher term deposits.

• Q4 net profit was EUR 30.8 million, up EUR 4.5 million from Q3 but down EUR 5.5 million year-over-year.

• Loan portfolio reached EUR 5.47 billion (+20% YoY), deposits EUR 8.13 billion (+18% YoY).

• Cost/income ratio rose to 52.3% (+8.8pp YoY); ROE at 16% for the year.

• Capital adequacy at 22.85% (excluding Q4 profit), above internal 20% target.

Outlook and guidance

• Funding costs are stabilizing, but new challenges are expected in 2026; further details to be provided with the upcoming financial plan.

• Deposit competition remains intense; focus on stable, diversified funding.

• Anticipated positive impact from increased defense infrastructure spending on Estonian lending market.