For LHV Group, the third quarter of 2026 was characterised by growth in income and profitability, both quarter-on-quarter and year-on-year. The strong result was driven by net interest income and fee income, as well as a larger release of loan impairments.
AS LHV Group generated consolidated net profit of EUR 37.5 million in Q3 2026, which is 52% more than in the previous quarter and 43% more than in the same period last year. Of the subsidiaries, AS LHV Pank earned a net profit of EUR 33.7 million and LHV Bank Ltd EUR 1.4 million. AS LHV Varahaldus earned a net profit of EUR 0.5 million and AS LHV Kindlustus EUR 0.3 million. The return on equity attributable to the shareholders of the Group was 19.3% in Q3.
On a consolidated basis, LHV Group generated total net income of EUR 80.1 million in Q3 2026, which is 1% more than in the previous quarter and 10% more than in the same period last year. Net interest income amounted to EUR 68.8 million (+10% quarter-on-quarter and +24% year-on-year). Growth was supported by the expansion of the loan portfolio and improved margins, with the net interest margin reaching 2.8% (Q2: 2.6%). Net fee and commission income amounted to EUR 16.8 million (+15% quarter-on-quarter and +10% year-on-year). Other income amounted to EUR -5.5 million, mainly reflecting the revaluation of the liquidity portfolio. Portfolio duration is below two years, so the loss unwinds as positions mature and in parallel generates additional interest income booked under net interest income.
Total operating expenses amounted to EUR 43.4 million, remaining at the level of the previous quarter and increasing by 12% year-on-year. Staff costs decreased by 8% quarter-on-quarter to EUR 24.1 million, while IT costs increased by 12% to EUR 5.3 million. The cost/income ratio was 54.2%. Profit before loan impairment amounted to EUR 36.7 million (+4% quarter-on-quarter and +8% year-on-year). A net release of loan impairments of EUR 8.9 million was recognised in Q3. The release came from LHV Pank and was mainly related to the release of a provision for one larger client.
As at the end of September, LHV Group’s consolidated total assets stood at EUR 10.10 billion, up 5% from the end of the previous quarter and 6% year-on-year. The consolidated loan portfolio grew by EUR 183 million, i.e. 3%, to EUR 5.95 billion in Q3 (+14% year-on-year). Deposits increased by EUR 178 million, i.e. 2%, during the quarter to EUR 7.74 billion (+4% year-on-year). The aggregate volume of funds managed by LHV grew by EUR 25 million during the quarter to EUR 1.82 billion (+12% year-on-year). Financial intermediary customers processed 24.2 million payments in Q3, a decrease of 6% compared to the previous quarter and an increase of 18% year-on-year. The number of Group customers increased by nearly 8,000 during the quarter to 723,000.
For the first nine months of the year, LHV Group generated total net income of EUR 232.8 million (+3% year-on-year), of which net interest income accounted for EUR 190.6 million (+9%) and net fee and commission income for EUR 46.1 million (+3%). Expenses grew by 14% to EUR 132.6 million. The net release of loan impairments totalled EUR 1.8 million over the nine months. Net profit amounted to EUR 81.9 million, which is 5% less than a year ago. The return on equity for the nine months was 14.0% (a year ago: 16.1%) and the cost/income ratio 57.0% (a year ago: 51.7%).
The Group’s Common Equity Tier 1 (CET1) ratio stood at 15.3% at the end of Q3, the Tier 1 capital ratio at 17.2% and the total capital adequacy ratio (CAD) at 20.3%. The liquidity coverage ratio (LCR) was 174% and the net stable funding ratio (NSFR) 146%. In August, LHV Group issued EUR 200 million of MREL bonds and EUR 15 million of AT1 bonds.
As at the end of nine months, LHV Group’s net income is falling short of the financial plan by EUR 4.5 million, while net profit exceeds the financial plan by EUR 3.6 million.
| Income statement, thousands of euros |
Q3 2026 |
Q2 2026 |
Q3 2025 |
| Net interest income |
68,811 |
62,480 |
55,532 |
| Net fee and commission income |
16,799 |
14,643 |
15,296 |
| Net financial income |
-5,765 |
1,170 |
1,167 |
| Result of the insurance service |
219 |
744 |
627 |
| Other operating income and expenses |
60 |
-26 |
39 |
| Total net income |
80,124 |
79,011 |
72,661 |
| Staff costs |
-24,072 |
-26,089 |
-22,351 |
| Office expenses |
-807 |
-713 |
-730 |
| IT costs |
-5,300 |
-4,717 |
-3,837 |
| Marketing expenses |
-1,790 |
-1,059 |
-1,140 |
| Other operating expenses |
-11,461 |
-11,013 |
-10,705 |
| Total expenses |
-43,429 |
-43,591 |
-38,763 |
| Profit before loan impairment |
36,695 |
35,420 |
33,898 |
| Loan impairment |
8,892 |
-5,770 |
-1,673 |
| Income tax expense |
-8,053 |
-4,963 |
-5,916 |
| Net profit |
37,534 |
24,687 |
26,309 |
| Minority holding |
450 |
574 |
606 |
| Profit attributable to shareholders of the parent company |
37,084 |
24,113 |
25,703 |
| |
|
|
|
| Net profit per share, euros |
0.11 |
0.07 |
0.08 |
| Diluted net profit per share, euros |
0.11 |
0.07 |
0.08 |
| |
|
|
|
| Balance sheet, thousands of euros |
Sep 26 |
Jun 26 |
Sep 25 |
| Cash and due from banks |
3,001,723 |
2,760,278 |
3,837,093 |
| Financial assets |
1,065,486 |
1,058,984 |
402,971 |
| Loans to customers |
5,989,915 |
5,815,325 |
5,279,528 |
| Loan impairment reserve |
-38,875 |
-47,449 |
-45,277 |
| Trade receivables |
41,782 |
29,241 |
12,403 |
| Other assets |
40,907 |
35,667 |
42,980 |
| Total assets |
10,100,938 |
9,652,047 |
9,529,699 |
| Demand deposits |
5,149,077 |
5,130,731 |
4,862,458 |
| Term deposits |
2,586,258 |
2,426,535 |
2,590,440 |
| Loans received |
1,232,577 |
1,021,079 |
1,048,556 |
| Trade payables and loans received |
8,967,911 |
8,578,345 |
8,501,454 |
| Accrued expenses and other liabilities |
117,143 |
106,273 |
84,143 |
| Subordinated debt |
222,295 |
209,215 |
207,001 |
| Total liabilities |
9,307,350 |
8,893,833 |
8,792,598 |
| Owners’ equity |
793,588 |
758,214 |
737,101 |
| incl. minority holding |
7,976 |
7,526 |
8,456 |
| Total liabilities and owners’ equity |
10,100,938 |
9,652,047 |
9,529,699 |
LHV Pank
LHV Pank’s net profit amounted to EUR 33.7 million in Q3 (+39% quarter-on-quarter and +38% year-on-year) and total net income to EUR 57.7 million (-7% quarter-on-quarter and +5% year-on-year). Net interest income grew by 11% quarter-on-quarter to EUR 59.5 million (+22% year-on-year) and net fee and commission income by 14% to EUR 13.5 million (+15% year-on-year). Expenses decreased by 5% quarter-on-quarter to EUR 26.9 million. A net release of loan impairments of EUR 10.4 million was recognised in Q3, significantly affected by the reversal of a provision on one larger corporate loan. The cost/income ratio was 46.6% (Q2: 45.3%) and return on equity 21.6% (Q2: 16.6%).
The quarter-on-quarter decrease in net income was driven by negative net financial income of EUR 10.1 million, which includes the negative effect of the liquidity portfolio and revaluation of intragroup interest rate swaps. The revaluation loss on the liquidity portfolio, which has a duration of less than two years, unwinds as the bonds mature, while the portfolio generates additional net interest income in parallel. The effect of the interest rate swaps is eliminated at the Group level. Excluding this effect, the bank’s net income amounted to EUR 61.8 million and net profit to EUR 37.9 million.
The number of LHV Pank customers increased by nearly 9,000 during the quarter to 517,000. The net loan portfolio grew by EUR 92 million during the quarter to EUR 4.91 billion (+7% year-on-year). Retail loans grew by EUR 64 million and corporate loans by EUR 28 million. The bank’s deposits increased by EUR 192 million during the quarter to EUR 6.42 billion (-3% year-on-year), of which demand deposits increased by EUR 148 million and term deposits by EUR 44 million. The increase was mainly driven by EUR 143 million growth in corporate banking deposits, while platform deposits continued to decline in line with the trend of this year.
In technology, LHV Pank took an important step in Q3 with the launch of LHV.AI, which provides a secure foundation for scaling artificial intelligence and for next-generation services for the bank’s customers. In product development, the bank launched Moneyplan, a feature that gives customers an overview of their saving habits and supports them in building regular saving. In July, the international financial magazine Euromoney recognised the bank as the Best Bank in Estonia for the seventh time. In September, the bank announced its decision to close its customer offices in Tartu and Pärnu. The decision is based on customers’ changing banking habits and the continued decline in visits to physical offices. The bank continues to invest in digital service channels, through which all main banking services are available.
For the first nine months of the year, LHV Pank generated total net income of EUR 174.0 million (+1% year-on-year) and a net profit of EUR 78.2 million (-1% year-on-year). Net income is falling short of the financial plan by EUR 8.2 million (by EUR 2.5 million excluding the revaluation effect of interest rate swaps), while net profit exceeds the plan by EUR 2.3 million (by EUR 8.1 million excluding the revaluation effect). The loan portfolio exceeds the financial plan by EUR 88 million, while deposits are EUR 340 million below plan.
LHV Bank
LHV Bank, operating in the United Kingdom, reported a net profit of EUR 1.4 million in Q3, remaining at the level of the previous quarter and up 38% year-on-year. Total net income grew by 16% quarter-on-quarter to EUR 17.1 million (+31% year-on-year) and net interest income by 10% to EUR 10.5 million (+64% year-on-year). Loan impairment charges of EUR 1.5 million were recognised in the quarter. The cost/income ratio improved to 80.4% (Q2: 85.2%).
The loan portfolio of LHV Bank grew by EUR 87 million, i.e. 9%, during the quarter to EUR 1.03 billion (+56% year-on-year). The pipeline of outstanding loan offers, approved but not yet disbursed, amounted to EUR 145 million. Deposits increased by EUR 119 million during the quarter to EUR 1.51 billion (+50% year-on-year). Direct customer deposits amounted to EUR 323 million at the end of the quarter.
For the first nine months of the year, LHV Bank’s net income grew by 17% to EUR 46.9 million, net interest income by 64% to EUR 29.3 million and net profit by 24% to EUR 4.1 million. Net interest income exceeds the financial plan by EUR 1.2 million. Net income is falling short of the plan by EUR 0.6 million and net profit by EUR 2.2 million, reflecting higher than planned loan impairments and expenses EUR 0.9 million above plan. The loan portfolio is EUR 58 million below plan and deposits are EUR 117 million below plan.
LHV Varahaldus
LHV Varahaldus earned a net profit of EUR 0.5 million in Q3 (Q2: EUR 0.4 million, Q3 2025: EUR 0.8 million). Net income grew by 2% quarter-on-quarter and by 8% year-on-year to EUR 2.5 million.
The aggregate volume of funds grew by EUR 25 million during the quarter to EUR 1.82 billion (+12% year-on-year). In Q3, the pension funds Julge, Ettevõtlik, Rahulik, Tasakaalukas and Indeks returned 1.3%, 2.2%, 0.3%, 1.1% and 1.6% respectively. At the end of the quarter, the number of Pillar II customers making active monthly contributions stood at 104,000.
For the first nine months of the year, LHV Varahaldus’s net income grew by 9% to EUR 7.3 million. Net profit amounted to EUR 0.3 million (a year earlier: EUR 1.4 million), affected by the EUR 1.1 million income tax expense associated with the dividend payment made in March. Net profit exceeds the financial plan by EUR 0.1 million, while fund volumes are EUR 14 million below plan.
LHV Kindlustus
LHV Kindlustus earned a net profit of EUR 0.3 million in Q3 (Q2: EUR 0.8 million, Q3 2025: EUR 0.7 million). Net earned premiums grew by 5% quarter-on-quarter to EUR 11.7 million (+10% year-on-year). The volume of contract premiums written amounted to EUR 11.0 million, which is 6% less than in the previous quarter and 20% more than a year ago.
Gross incurred losses increased by 15% quarter-on-quarter to EUR 8.2 million (+20% year-on-year). The net loss ratio was 72.5% (Q2: 67.9%), the net expense ratio 25.6% (Q2: 25.2%) and the combined ratio 98.1% (Q2: 93.1%). The number of customers increased by nearly 4,000 during the quarter to 246,000 (+8% year-on-year) and the number of insurance contracts stood at 337,000. The quarter was affected by several larger claims in home insurance.
For the first nine months of the year, LHV Kindlustus’s net earned premiums grew by 9% to EUR 33.3 million and gross incurred losses by 20% to EUR 23.6 million. Net profit amounted to EUR 0.4 million (a year earlier: EUR 2.4 million) and the net loss ratio was 74.0%. Net profit is falling short of the financial plan by EUR 1.7 million, mainly due to the high volume of claims at the beginning of the year. The volume of contract premiums written exceeds the financial plan by EUR 0.7 million.
Comment by Mihkel Torim, CEO of LHV Group:
“The third quarter was LHV’s strongest of the year. Net profit rose to EUR 37.5 million and return on equity to 19.3%. Our core business improved: net interest income grew 24% year on year, while costs held at the previous quarter’s level. Profit was also substantially supported by September’s release of an impairment on one large corporate loan and portfolio quality remained strong.
The loan portfolio grew by EUR 183 million in the quarter, almost half of it from LHV Bank in the UK, whose loan book passed one billion euros. The Group’s customer base reached 723,000. In August we raised EUR 200 million of MREL debt to further diversify our funding.
In Estonia we launched Moneyplan, which gives customers an overview of their spending and saving. We also went live with LHV.AI, which lets customers connect their bank account to AI tools. Positive reception of these new products confirms that we are moving in the right direction.”
AS LHV Group reports are available at: https://investor.lhv.ee/en/reports/.
To present the quarterly results, LHV Group will host a virtual investor meeting via Teams. The meeting will take place on 20 October at 11:00 AM EET. The presentation will be held in English. Please register in advance here.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus and LHV Bank Limited. The Group employs approximately 1,200 people. The services of LHV Pank are used by over 517,000 customers, the II pillar pension funds managed by LHV have 104,000 active customers and LHV Kindlustus protects a total of 246,000 customers. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the United Kingdom and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.
Investor Relations
Sten Hans Jakobsoo
Head of Investor Relations and Corporate Development
Email: stenhans.jakobsoo@lhv.ee
Communications
Paul Pihlak
Head of Communications
Email: paul.pihlak@lhv.ee
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