Slides
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LHV Group Q4 and full-year 2025 results 10 February 2026
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2 Today's presenters Mihkel Torim CEO, LHV Group Meelis Paakspuu CFO, LHV Group Kadri Kiisel CEO, LHV Pank Erki Kilu CEO, LHV Bank
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3 EUR 304.8m -10% YoY Net income EUR 117.0m -22% YoY Net profit 52.3% +8.8pp YoY C/I 16.0% -8.4pp YoY ROE EUR 8.13bn +18% YoY Deposits EUR 5.47bn +20% YoY Loan portfolio LHV Group Key highlights 2025 A challenging year with strong volume growth Net income was 2.5% and net profit 6.5% below plan LHV Pank grew both loan volumes and deposits by 11% LHV II and III pillar pension funds delivered the best performance in the market Insurance net profit doubled year-on-year, with gross premiums up over 13% versus a 2% market decline In the UK, the retail offering reached 5,000 customers, while the loan portfolio more than doubled to EUR 782m LHV Group was named the Best Company for Investor Relations at the Nasdaq Baltic Awards 2025 LHV Pank was named the Best Bank in Estonia by Euromoney and the Banker
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4 LHV Group Financial highlights in Q4 • Net interest income increased by 8% QoQ and net fee and commission income increased by 20% QoQ • At the same time, goodwill related to Paytech was partially written off in amount of EUR 1.6m • Business activity reached record levels, with deposits, loans, assets under management and payments volumes of banking service customers all at all-time highs • Expenses increased QoQ EUR 3.7m, mainly due to goodwill impairment and higher personnel expenses • Profitability continued to improve, increasing by 17% QoQ, but financial plan targets for profitability were not fully met Financial results, EURt Q4-25 Q3-25 ∆ quarter Dec 25 Nov 25 Net interest income 59,914 55,532 +4,382 22,497 17,583 Net fee and commission income 18,312 15,295 +3,017 6,623 6,552 Other income 624 1,834 -1,211 -328 573 Total net income 78,849 72,661 +6,188 28,792 24,708 Total operating expenses 42,492 38,762 +3,730 15,365 13,146 Earnings before impairment 36,357 33,899 +2,458 13,427 11,561 Impairment losses -1,671 1,674 -3,344 654 -2,967 Income tax expense 7,257 5,916 +1,341 2,808 2,604 Net profit 30,771 26,309 +4,462 9,965 11,925 Business volumes, EURm Q4-25 Q3-25 ∆ quarter Dec 25 Nov 25 Loans portfolio (net) 5,465 5,234 +231 5,465 5,378 Deposits from customers 8,134 7,453 +682 8,134 7,655 Assets under management 1,702 1,620 +82 1,702 1,672 No of customers, thous. 694 692 +2 694 693 Fin. intermediaries' payments, thous. pcs 24,350 21,329 +3,021 24,350 23,157 Key figures Q4-25 Q3-25 ∆ quarter Dec 25 Nov 25 Cost / income ratio (C/I) 53.9% 53.3% + 0.5 pp 53.4% 53.2% Net interest margin (NIM) 2.4% 2.4% + 0.1 pp 2.7% 2.2% pre-tax ROE* 20.0% 17.6% + 2.4 pp 19.7% 23.5% ROE* 16.1% 14.3% + 1.8 pp 15.4% 19.3% * ROE is based on net profit and equity attributable to the owners of AS LHV Group
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5 LHV Group Balance sheet structure • LHV intentionally keeps its balance sheet simple. Assets mainly consist of loans issued to customers, and the bank’s liquidity portfolio. Deposits are primary source of funding, supplemented by covered bonds and other limited special- purpose funding instruments • Approximately 90% of assets are euro- denominated • Liquidity portfolio primarily comprises deposits held with the European Central Bank and, to a lesser extent, high-quality short-term bonds 4,971 6,845 6,135 7,126 8,736 10,233 0 3,000 6,000 9,000 12,000 Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 Dec 25 EURm Structure of liabilities and equity Financial intermediaries' deposits Demand deposits w-o financial intermediaries Term deposits w-o financial intermediaries Equity Other liabilities 4,971 6,845 6,135 7,126 8,736 10,233 0 3,000 6,000 9,000 12,000 Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 Dec 25 EURm Structure of assets Loans Fin. Assets Cash and deposits
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6 LHV Group Risk tolerance: Capital • LHV Group has fulfilled all the requirements with sizable buffer • The capital base does not yet include Q4 profits; end-of-year capitalisation will be recalculated once the year-end results are audited and shareholders made dividend decision • 2024 year-end results were recalculated also due to ECB audit, which lowered capital adequacy by 150 bps • As a principle, CET1 is the binding constraint, as it represents the most expensive source of capital • All capital and liquidity indicators are reported on monthly basis and monitored on weekly basis Category Indicator Risk appetite level Actual 31 December 2025 Capital Capital adequacy (CAD) Capital adequacy (Tier 1) Capital adequacy (CET 1) Leverage ratio MREL-TREA MREL-LRE >20.00% >17.30% >15.30% >4.00% >32.50% >7.00% 22.85% 19.27% 17.42% 7.00% 35.38% 12.86% 19.27% 22.8% 0% 7% 14% 21% 28% Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 Dec 25 LHV Group capital adequacy Tier1 CAD T1 internal minimum CAD internal minimum
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7 LHV Group Liquidity • LHV manages liquidity risk conservatively. LCR and NSFR levels exceeded both regulatory requirements and internal targets with sufficient buffer • Bank is primarily funded by deposits, supplemented to lesser extent by bond funding (including covered bonds) and other ad hoc short-term liabilities • In addition to deposits from retail customers and corporates, bank also holds a notable volume of deposits from financial intermediaries. These deposits are fully covered by liquidity buffer and are not used to fund the long-term loan portfolio. As a result, loan-to-deposit ratio remains at a very conservative level 8,134 5,465 53.6% 46.1% 65.5% 62.1% 65.9% 67.2% 0% 20% 40% 60% 80% 0 3,000 6,000 9,000 12,000 Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 Dec 25 EURm Loan/deposit ratio Customers' deposits Loans Loan/deposit ratio 110% 185% 120% 157% 0% 50% 100% 150% 200% Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 Dec 25 LCR and NSFR LCR risk tolerance LCR (Group) NSFR risk tolerance NSFR (Group)
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8 LHV Group Loan portfolio quality • Loan portfolio increased by almost EUR 900m over past 12 months, with broadly similar absolute growth in Estonia and UK • Loan portfolio quality remained strong, with only small number of loans in Stage 3, which are well collateralised. In Q1, two large customer groups moved to Stage 3; since then, one exposure has been gradually partially repaid, while both exposures are adequately provisioned • Portfolio sector mix is comparable to regional banks, with private individuals and real estate representing the largest sectors 4,592 4,775 5,038 5,280 5,507 1.6% 0.0% 0.7% 1.4% 2.1% 2.8% 0 1,500 3,000 4,500 6,000 Q4 Q1 2025 Q2 Q3 Q4 EURm Loan portfolio by stages (gross) Stage 1 Stage 2 Stage 3 Stage 3 ratio Private individuals 36% Real estate 33% Manufacturing 4% Wholesale and retail 3% Energy 4% Fin. services 3% Administrative activities 2% Agriculture 3% Other 13% Loan portfolio by sectors 0.1% 0.5% -0.3% 0.1% -0.1% -0.4% 0.0% 0.4% 0.8% Q4 Q1 2025 Q2 Q3 Q4 Cost of risk ratio Stage 3 collateral shortfall Segment Carrying amount (EURm) Fair value of collateral (EURm) Collateral shortfall (EURm) Collateral coverage (%) Corporate loans 46.0 40.5 5.5 88.1% Consumer financing 1.4 0.0 1.4 0.0% Investment financing 0.0 0.0 0.0 - Leasing 1.9 1.7 0.2 89.2% Retail loans 0.6 0.6 0.0 96.2% Total 49.9 42.8 7.1 85.7%
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• Q4 saw positive momentum in deposits, with both Estonian and UK banks increasing their deposit base beyond plan • NIM has stabilised and begun to improve • Quarterly profitability continued to improve gradually; however Q4 results were negatively impacted by goodwill impairment and positively supported by success fee earned by Asset Management 9 LHV Group Profitability 8,058 7,831 8,669 8,793 9,466 0 2,500 5,000 7,500 10,000 Q4 Q1 2025 Q2 Q3 Q4 EURm Structure of liabilities Other Loans received Regular customers' term deposits Regular customers' demand deposits Platform deposits Banking services deposits 2.4% 0% 2% 3% 5% 6% Q4 Q1 2025 Q2 Q3 Q4 NIM NIM 16.1% 53.9% 0% 20% 40% 60% 80% Q4 Q1 2025 Q2 Q3 Q4 ROE and C/I ROE C/I
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10 LHV Group Slight shortfall compared to financial plan • The key components driving the results were interest income and credit portfolio quality • 2025 results were below financial plan mainly due to lower interest income, as actual interest rate movements differed from the market forecast at the end of 2024, resulting in less favourable deposit structure than anticipated • Expenses were higher in two banks primarily driven by increased personnel and marketing expenses • Business volumes were slightly ahead of plan • Overall ROE 16.0%, while profit of EUR 117m was below plan * ROE is based on net profit and equity attributable to the owners of AS LHV Group Financial results, EURt YTD25 YTD24 ∆ YoY FP YTD ∆ FP Net interest income 235,099 273,326 -38,227 246,034 -10,951 Net fee and commission income 63,258 60,301 +2,957 64,041 -787 Other income 6,483 4,672 +1,811 2,875 +3,628 Total net income 304,839 338,299 -33,460 312,950 -8,110 Total operating expenses 159,307 146,920 +12,387 149,351 +9,956 Earnings before impairment 145,533 191,379 -45,847 163,599 -18,066 Impairment losses 1,518 16,256 -14,737 10,234 -8,716 Income tax expense 27,010 24,820 +2,190 28,244 -1,234 Net profit 117,005 150,304 -33,299 125,120 -8,116 attr. to shareholders 114,265 148,969 -34,704 123,007 -8,742 Business volumes, EURm YTD25 YTD24 ∆ YoY FP YTD ∆ FP Loans portfolio (net) 5,465 4,552 +913 5,345 +121 Deposits from customers 8,134 6,910 +1,224 7,558 +576 Assets under management 1,702 1,558 +144 1,735 -33 Fin. intermediaries' payments, thous. pcs 85,646 74,756 +10,890 74,884 +10,762 Key figures YTD25 YTD24 ∆ YoY FP YTD ∆ FP Cost / income ratio (C/I) 52.3% 43.4% + 8.8 pp 47.7% + 4.5 pp Net interest margin (NIM) 2.5% 3.5% - 1.0 pp 2.7% - 0.2 pp pre-tax ROE* 19.7% 28.5% - 8.8 pp 21.6% - 1.9 pp ROE* 16.0% 24.5% - 8.4 pp 17.6% - 1.6 pp
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LHV Pank
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12 LHV Pank Key highlights 2025 EUR 228.6m -17% YoY Net income EUR 107.1m -24% YoY Net profit 42.7% +8.2pp YoY C/I 19.0% -7.0pp YoY ROE1 EUR 6.96bn +11% YoY Deposits EUR 4.68bn +11% YoY Loan portfolio LHV Pank grew both loan volumes and deposits by 11% More than EUR 1bn in financing provided to Estonian companies Every fourth new mortgage in Estonia was issued by LHV Lowered the prices for investments services by almost half 492,000 customers, increasing by 36,000 (8%) YoY Note: 1) ROE is based on net profit and equity attributable to the owners of AS LHV Group. Calculated based on average of month-end equity balances
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13 LHV Pank Key operational activities and milestones in 2025 New products and improvements • "Küsi raha 2.0" • Mastercard Click to Pay • LHV Premium • New app design Technological improvements • AWS Cloud migration • LHV uses AI from Anthropic, Google and OpenAI (directly and via AWS Bedrock), with developers primarily on Claude Code alongside Cursor and GitHub Copilot • Rewriting legacy systems Recognitions and awards • Top Employer in financial sector (CV.ee); • The most desirable Employer in Estonia (Instar) • Estonia's Best Bank (Euromoney, The Banker) • Stockbroker of the Year • Bank with the best services in Estonia (DIVE)
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14 • Customer deposits grew at more than twice the market growth rate • Platform deposits remained broadly stable during the period and the plan is to reduce platform deposits in 2026 • Competition for deposits remained intense, with all banks actively competing for funding • LHV Pank's funding strategy remains focused on Estonian customer deposits and covered bonds, supporting a stable and diversified funding base LHV Pank Deposits continued to grow strongly 6,294 5,984 6,560 6,640 6,964 0 2,000 4,000 6,000 8,000 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 EURm Customer deposits Regular customers Banking services Deposit platforms Deposits from group companies +11% Source: Bank of Estonia 6,294 5,984 6,560 6,640 6,964 31% 24% 0% 10% 20% 30% 40% 0 2,000 4,000 6,000 8,000 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Deposits structure Demand deposits Term deposits Share of term deposits (%) 31,997 31,503 32,723 32,444 33,495 0 10,000 20,000 30,000 40,000 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Estonian deposit market dynamics Households Non-financial corporations Financial institutions Government EURm +5%
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15 • Loan portfolio grew by 11% compared with market growth of 8% • Around 70% of the growth came from retail loans and 30% from corporate segment • Competition in loan market was stronger than in previous years, with all banks actively seeking high-quality projects • Loan portfolio remained strong, which allowed provisions to be reduced by 10 basis points • LHV Pank did not adjust its credit underwriting standards and continues to focus on maintaining well-collateralised loan portfolio LHV Pank Loan portfolio outperforming the market 30,164 30,241 30,919 31,730 32,663 0 10,000 20,000 30,000 40,000 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Estonian loan market dynamics Households Non-financial corporations Financial institutions Government EURm +8% Source: Bank of Estonia 4,204 4,239 4,429 4,574 4,683 0.8% 0.0% 2.5% 5.0% 7.5% 10.0% 0 1,250 2,500 3,750 5,000 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 EURm Loans (net) Corporate loans Retail loans Loans to group companies Provisions share of gross portfolio (%) +11%
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16 • Interest rates declined over the year, negatively affecting net interest income as loans repriced faster than deposits • In Q3, the loan portfolio reached market rates, marking the low point in net interest income • The decline in fee income has been driven by a product mix with low or zero fees • We expect this trend to reverse, supported by growing customer activity and a higher contribution from investment services, cards and institutional banking • Customer activity continued to strengthen, with transaction volumes up almost 10% YoY LHV Pank Net income improvement in Q4 61,405 56,090 51,122 48,938 50,101 0 15,000 30,000 45,000 60,000 75,000 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Net interest incomeEURt -18% 13,550 10,470 11,842 11,673 12,937 0 4,000 8,000 12,000 16,000 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Net fee and commission income Banking services Other EURt -5%
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17 • In 2025, Pank succeeded in reversing previously accelerating cost growth, with expenses stabilising towards the end of the year • Personnel expenses remain the largest cost component, accounting for approximately 60% of the total cost base • IT expenses continue to increase, reflecting the strategic migration to cloud infrastructure, which supports faster development cycles and enhanced scalability going forward LHV Pank Expenses are stabilising 26,513 23,654 24,460 23,719 25,800 0 8,000 16,000 24,000 32,000 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Operating expenses by category Personnel expenses Office expenses IT expenses Marketing expenses Other operating expenses EURt -3%
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18 • Net profit was EUR 7.2m below plan, primarily due to lower net interest income as asset yields repriced faster in declining interest rate environment • Table reflects intragroup profit sharing as required by IFRS, with fee sharing presented separately regardless of whether the underlying income originates from interest income or fee income. This represents recent requirement that was not included in the original financial plan • On the expenses side, deviations versus plan were mainly driven by personnel expenses and marketing costs • Business volumes developed broadly in line with the financial plan, with no material shortfall in lending or customer activity LHV Pank Interest rate headwinds weighed on earnings, business volumes remained solid Financial results, EURt Q4-25 Q3-25 YTD25 YTD24 FP YTD ∆ FP Net interest income 50,101 48,938 206,251 257,115 202,338 +3,913 Net fee and commission income 12,937 11,673 46,922 45,088 38,449 +8,473 Net fee sharing -6,098 -6,031 -25,989 -28,710 - -25,989 Other income 78 452 1,441 2,620 656 +785 Total net income 57,018 55,032 228,625 276,113 241,444 -12,818 Total operating expenses 25,800 23,719 97,634 95,374 93,146 +4,488 Earnings before impairment 29,940 31,313 130,991 180,739 148,297 -17,306 Impairment losses -2,340 1,423 -76 15,777 8,120 -8,196 Income tax expense 5,853 5,399 23,979 24,443 25,927 -1,948 Net profit 27,704 24,491 107,089 140,519 114,251 -7,162 Business volumes, EURm Q4-25 Q3-25 YTD25 YTD24 FP YTD ∆ FP Loans (net) 4,683 4,574 4,683 4,204 4,704 -21 Deposits from customers 6,964 6,640 6,964 6,294 6,595 +368 incl. banking services' deposits 1,480 1,226 1,480 1,355 1,201 +279 Fin. intermediaries' payments, th. pcs 23,585 20,598 82,933 72,228 72,335 +10,598 No of customers, th. 492 483 492 456 na na Key figures Q4-25 Q3-25 YTD25 YTD24 FP YTD ∆ FP Cost / income ratio (C/I) 45.2% 43.1% 42.7% 34.5% 38.6% + 4.1 pp Net interest margin (NIM) 2.3% 2.4% 2.5% 3.2% 2.5% - 0.0 pp pre-tax ROE* 22.5% 21.8% 23.2% 30.4% 24.7% - 1.5 pp ROE* 18.5% 17.9% 19.0% 25.9% 20.1% - 1.2 pp * ROE is based on net profit and equity attributable to the owners of AS LHV Group. Calculated based on average of month-end equity balances
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LHV Bank
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20 LHV Bank Key highlights 2025 EUR 55.5m +24% YoY Net income EUR 5.5m -5% YoY Net profit 83.0% -4.7pp YoY C/I 5.3% -3.1pp YoY ROE EUR 1.29bn +82% YoY Deposits EUR 0.78bn +125% YoY Loan portfolio Deposits and loans doubled with net profit of £5m (EUR 6m) First UK bank joining instant euro payments scheme LHV Bank was awarded Sunday Times' Best Places to Work Launching retail banking with the current account that pays base rate
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21 Loan portfolio • Strong sales continued in SME Lending • Pipeline with offers at £103m (EUR 118m) • Overdue loans grow naturally with portfolio growth Deposits • Liquidity remained high due to ECB forward- looking metric requirements at Group level, which will change from 1 January 2026 • Growth mainly from deposit platforms • Direct deposits increased, reaching 12.5% of total deposits LHV Bank Loan and deposit volumes continued to expand 348 490 569 660 782 0 200 400 600 800 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 EURm Loans (net) +125% 705 820 1,022 1,001 1,286 0 325 650 975 1,300 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 EURm Deposits Other Banking services Deposit platforms +82%
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22 Net interest income • SME loan portfolio growth driving interest income growth • Banking services recorded lower deposit volumes, although impact became marginal Net fee and commission income • Banking services interest and fee income shown separately since 2025 • Banking services payment volumes increased • Banking services had different mix of services than planned, resulting in lower fee income • Net fee income declined due to an earlier operational incident related euro payments and write-off fees from an off-boarded customer LHV Bank Net income dynamics reflect portfolio growth 4,432 5,263 6,125 6,410 9,606 0 2,500 5,000 7,500 10,000 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Net interest incomeEURt +117% 198 213 384 219 -192 -1,000 -500 0 500 1,000 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Net fee and commission incomeEURt -197% 6,593 7,654 6,237 6,019 6,099 0 2,000 4,000 6,000 8,000 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Fee received from LHV Pank Fee income related fee sharing Interest related fee sharing EURt -7%
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23 • Operating cost development remained stable over the period • Bank invested in two larger marketing and communication campaigns in Q2 and Q4 to support the launch of retail banking activities LHV Bank Expenses remained well controlled 10,893 11,009 12,313 11,438 11,277 0 3,500 7,000 10,500 14,000 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Operating expenses by category Personnel expenses Office expenses IT expenses Marketing expenses Other operating expenses +4% EURt
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24 LHV Bank Business volumes and profitability exceeded financial plan • Higher SME loan portfolio driving stronger interest income • Banking services had lower deposit volumes, reducing interest income, and different mix of services than planned, resulting in lower fee income • Net financial income higher due to bond portfolio income realised earlier in the year • Operating expenses higher due to unplanned retail banking marketing campaigns in spring and autumn • Deposit, loan and payment volumes significantly above plan Financial results, EURt Q4-25 Q3-25 YTD25 YTD24 FP YTD ∆ FP Net interest income 9,606 6,410 27,405 14,662 42,005 -14,600 Net fee and commission income -192 219 624 741 11,126 -10,502 Net fee sharing 6,099 6,019 26,009 28,690 0 +26,009 Other net income -73 404 1,461 532 0 +1,461 Total net income 15,441 13,053 55,498 44,625 53,131 +2,367 Total operating expenses 11,277 11,438 46,037 39,095 44,568 +1,469 Earnings before impairment 4,164 1,615 9,462 5,529 8,563 +898 Impairment losses 669 251 1,595 479 2,115 -520 Income tax expense 1,227 341 2,326 -794 1,612 +714 Net profit 2,267 1,023 5,541 5,845 4,837 +704 Business volumes, EURm Q4-25 Q3-25 YTD25 YTD24 FP YTD ∆ FP Loans (net) 782 660 782 348 640 +142 Deposits from customers 1,286 1,001 1,286 705 1,093 +193 Key figures Q4-25 Q3-25 YTD25 YTD24 FP YTD ∆ FP Cost / income ratio (C/I) 73.0% 87.6% 83.0% 87.6% 83.9% - 0.9 pp Net interest margin (NIM) 3.0% 2.3% 2.5% 6.1% 4.2% - 1.7 pp pre-tax ROE* 11.5% 4.8% 7.5% 7.2% 7.0% + 0.6 pp ROE* 7.5% 3.6% 5.3% 8.4% 5.2% + 0.1 pp
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LHV Varahaldus
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26 LHV Varahaldus Key highlights 2025 EUR 11.2m +26% YoY Net income EUR 4.1m +155% YoY Net profit 19.4% +11.8pp YoY ROE 61.1% -13.4pp YoY C/I ratio EUR 0.1bn +29% YoY Pillar III funds EUR 1.5bn +7% YoY Pillar II funds Best-performing pension funds in Estonian market were LHV funds, across both Pillar II and Pillar III Merger of pension funds and new names for all actively managed pension funds LHV Euro Võlakirjade Fond, which concentrates on highly rated debt instruments, was launched in early 2025 Outdoor sales channel closed, all sales activities in digital channels or via telemarketing going forward
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27 LHV Varahaldus Four best performing pension funds in II pillar system were all LHV funds • AUM increased mostly due to good funds returns both in II and in III pillar • Strong last quarter and in general a strong year for biggest stock markets. Local investors strongly invested to US equities saw lower returns due to dollar weakening against the euro by more than 12% • Biggest actively managed LHV funds showed good returns in 2025. Pension funds Julge, Ettevõtlik and Tasakaalukas gained 16.6%, 13.3% and 9.5% annually. LHV fund Indeks, which has higher exposure to developing markets compared to its competitors, showed annual return of 11.4% • Strong activity in December with inflows to III pillar funds; sales in general still not at full potential 1,558 1,559 1,563 1,620 1,702 100 135 170 205 240 0 500 1,000 1,500 2,000 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 customers (th.)EURm Assets under management and number of customers Pillar II pension funds Other funds Active customers of Pillar II pension funds +9% -20% -10% 0% 10% 20% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Pillar II comparable pension funds' NAV change YTD LHV Ettevõtlik SEB 55+ Swedbank 1970-79 Luminor 50-56 -20% -10% 0% 10% 20% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Index funds' NAV change YTD LHV SEB Swedbank Tuleva Source: Estonian Pension Centre
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LHV Varahaldus Net profit exceeded financial plan 28 • Net profit above financial plan estimates. LHV Julge, the best performing fund among II pillar funds, was eligible for performance fee of EUR 2.1m • Year-end AUM slightly below financial plan, as despite strong fund returns sales were lower than anticipated after the closure of outdoor sales • Still work to do with telemarketing efficiency and digital sales channels, as customer number for year end was lower than estimated • Operating expenses slightly higher than anticipated • All funds showed strong returns; actively managed funds enter the year well positioned in terms of desired asset allocation Financial results, EURt Q4-25 Q3-25 YTD25 YTD24 FP YTD ∆ FP Total net income 4,502 2,308 11,227 8,936 9,268 +1,958 Total operating expenses 2,006 1,838 7,369 7,079 7,005 +363 EBIT 2,496 470 3,858 1,857 2,263 +1,595 Net financial income 189 336 831 559 555 +276 Income tax expense 0 0 564 801 564 -0 Net profit 2,685 806 4,125 1,616 2,254 +1,871 Business volumes, EURm Q4-25 Q3-25 YTD25 YTD24 FP YTD ∆ FP Assets under management 1,702 1,620 1,702 1,558 1,735 -33 Active customers of PII funds, th. 106 107 106 114 115 -9 Key figures Q4-25 Q3-25 YTD25 YTD24 FP YTD ∆ FP Cost / income ratio (C/I) 42.8% 69.5% 61.1% 74.6% 71.3% - 10.2 pp Funds average return 13.3% 10.1% 0.9% -0.9% 0.6% + 0.3 pp
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LHV Kindlustus
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30 EUR 43.0m +13% YoY Gross written premiums EUR 2.5m +111% YoY Net profit 35.2% +14.8pp YoY ROE 231 thous. +36% YoY No. of customers 26.8% -4.3pp YoY Net expense ratio 67.8% +1.3pp YoY Net loss ratio LHV Kindlustus Key highlights 2025 Strong gross written premiums growth with +13% YoY Number of customers continued to grow rapidlyby 36% YoY The integration with the Motor Insurance Fund’s Relika database was finalized in Q4 Net expense ratio outperformed financial plan
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31 • Challenging market conditions persisted due to declining prices in vehicle insurance • Decline had been continuous since Q2 2025 • In November, sales campaign was conducted for these insurance lines, helping to maintain Premium levels in Q4 at the same level as in Q3 • Q4 sales grew by 12% YoY, driven primarily by home and travel insurance • Net incurred losses and claims frequency in Q4 were broadly in line with portfolio growth, with the exception of late December, which was impacted by adverse weather conditions and elevated claims LHV Kindlustus Challenging market 9.4 9.7 10.2 10.6 10.6 0 3 6 9 12 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 EURm Contract premiums written +12% 5.8 6.8 6.6 7.1 7.5 0 2 4 6 8 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 EURm Net incurred losses +31%
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32 • December sales targets were met, enabling the achievement of full-year targets • Monthly results were partly impacted by November sales campaign, with some policies commencing in December • Net loss ratio exceeded annual average due to unfavourable weather conditions towards the month-end • Expense ratio was higher due to timing effects, while full-year expenses remained below plan LHV Kindlustus Monthly sales targets met Financial results, EURt Q4-25 Q3-25 YTD25 YTD24 FP YTD ∆ FP Insurance revenue 10,591 10,568 41,081 34,969 41,204 -123 Commission expense 1,265 1,246 4,594 4,542 5,402 -808 Gross incurred losses 7,228 6,830 26,815 23,118 26,351 +464 Operating expenses 1,483 1,309 5,493 5,375 5,722 -229 Insurance result before reinsurance 616 1,183 4,180 1,934 3,729 +450 Reinsurance result 450 556 1,725 962 1,302 +423 Total insurance result 166 628 2,455 971 2,428 +27 Net other income -36 22 67 226 17 +50 Net profit 130 650 2,521 1,198 2,444 +77 Business volumes Q4-25 Q3-25 YTD25 YTD24 FP YTD ∆ FP Contract premiums written, EURt 10,722 9,164 42,960 38,025 42,060 +900 No of customers (thous.) 231 227 231 170 na na Key figures Q4-25 Q3-25 YTD25 YTD24 FP YTD ∆ FP Net loss ratio 70.9% 68.1% 67.8% 66.5% 65.5% + 2.3 pp Net expense ratio 29.4% 26.2% 26.8% 31.1% 29.1% - 2.3 pp
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33 LHV Group Key takeaways 2025 Net income was 2.5% and net profit 6.5% below plan Total income returned to growth in Q4 following pressure earlier in the year Group's loan portfolio increased by 20% YoY and deposits 18% YoY LHV II and III pillar pension funds delivered the strongest performance in the market Insurance net profit more than doubled YoY, with gross written premiums increasing by over 13% against a market decline of 2% Business volumes in the UK expanded rapidly, with loans growing 125% YoY and deposits up 82%, net profit reached EUR 5.5m LHV Pank increased both loan and deposit volumes by 11%, outperforming the market. Customer activity started to improve
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AS LHV GROUP TARTU MNT 2, TALLINN 6 800 400 GROUP@LHV.EE LHV.EE Mihkel Torim LHV Group CEO mihkel.torim@lhv.ee Meelis Paakspuu LHV Group CFO meelis.paakspuu@lhv.ee Sten Hans Jakobsoo Head of Investor Relations and Corporate Development stenhans.jakobsoo@lhv.ee