LHV Group

LHV Group 2020 Audited Annual Report and Dividend Proposal


The AS LHV Group Supervisory Board approved the 2020 audited annual report presented by the company’s management board and will submit it to the Annual General Meeting for approval. There are no differences in the audited accounts as regards the financial results, compared to the unaudited interim report published on 9 February.

The AS LHV Group 2020 Consolidated Annual Report has been appended to the announcement and will be made available on LHV’s investor webpage at https://investor.lhv.ee/en/reports/#annual-reports.

The pre-tax profit of AS LHV Group in 2020 amounted to EUR 48.7 million (yearly increase +55%) and the consolidated net profit was EUR 39.8 million (+47%). The profit attributable to the Group’s shareholders was EUR 38.0 million. In 2020, the pre-tax rate of return on the equity owned by LHV Group’s shareholders was 20.5%, while the return on equity based on net profit was 17.3%.

In 2020, the Group earned EUR 103.5 million in net income (+40%), whereas total costs were EUR 44.0 million (+12%) and loan allowances were made within the amount of EUR 10.9 million (3.4 times more compared to 2019). The volume of the LHV Group’s assets grew by 64%, to EUR 4.97 billion in 2020. The LHV Group’s consolidated loan portfolio increased by 31%, to EUR 2.21 billion and deposits by 53%, to EUR 4.12 billion year-on-year. The volume of funds managed by LHV increased over the year by 12%, to EUR 1.54 billion.

In 2020, AS LHV Pank earned EUR 34.6 million in net profit, with EUR 5.3 million coming from the servicing of clients associated with the United Kingdom branch. AS LHV Varahaldus earned EUR 8.3 million in net profit during the year. LHV Group as a separate entity earned EUR 5.7 million in profit as a result of dividends paid by subsidiaries to the LHV Group.

The annual report provides a more thorough insight into LHV’s commitment to sustainability. The environmental impact from LHV Group office operations in 2020 was 865 tonnes of CO2 eq., which is 29% less than the year before.

Dividend proposal

The AS LHV Group Management Board proposes that the Annual General Meeting allocate the profit for 2020 as follows:

  • pay dividends of EUR 0.29 per share in the total sum of EUR 8.358 million; the income tax payable on dividends would be EUR 1.654 million.
  • Add the profit of the reporting period, attributable to the parent company, in the amount of EUR 29.592 million, to the retained earnings.

The list of shareholders entitled to receive dividends will be established as at 7 April COB. Consequently, the day of change of the rights attaching to the shares (ex-dividend date) is set to 6 April 2021. From this day onwards, a person acquiring the shares will not have the right to receive dividends for the financial year 2020. Dividends will be paid to the shareholders on 9 April 2021.

LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, and LHV Kindlustus. LHV employs over 520 people. LHV’s Banking Services are used by 264,000 clients, and pension funds managed by LHV have 180,000 active clients. LHV’s UK branch offers banking infrastructure to 140 international financial services companies, via which LHV’s payment services reach clients around the world.

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