In 2012 LHV Group's subsidiaries LHV Bank and LHV Asset Management continued their very rapid growth. LHV Group's consolidated revenues grew 74%, expenses 3% and losses decreased to 1.7 million euros. LHV Group's consolidated balance sheet grew 35%, reported LHV Bank.
In 2012 LHV Group's net interest income grew 72% to 6.1 million euros in comparison to the previous year, net fee and commission income by 23% to 6.4 million euros and financial income to 0.8 million euros. LHV Group's total revenues increased 74% to 13.3 million euros, costs grew 3% to 14 million euros and loan provisions fell 59% to 1.1 million euros. LHV Group's unaudited loss in 2012 was 1.7 million euros, which is a five-fold decrease from 2011.
"We were able to grow revenues by 74% essentially maintaining our cost levels. The increase in interest income came primarily from the growth of the bank´s corporate loan portfolio, and the increase in fee and commission income from the growth of customer numbers and assets under management in our pension funds, "said Mr Erki Kilu, chairman of the board of LHV Bank. "LHV Group's losses came at the expense of the bank. LHV Asset Management ended the year with a profit of 0.1 million euros. "
LHV Group's balance sheet grew 35% in 2012 to a total of 318 million euros. Clients´ deposits increased by 35% to 282 million euros and the loan portfolio by 59% to 106 million euros. Clients’ assets held by LHV Bank increased by 30% to 197 million euros, and client assets held by LHV Asset Management by 75% to 252 million euros.
"The number of customers grew by leaps and bounds. Our bank’s client numbers are approaching 50,000 and the number of pension fund customers already exceeded 100,000" says Kilu.
"We came to the market with several new products, most importantly launching LHV Partner Credit Card and car leasing. We are the 5th largest bank in Estonia based on the number of cards issued. Thanks to upgrading the payments services and launching bank link the balance of clients´demand deposits doubled over the past year, amounting to 27% of total deposits. Since the total financing cost decreased significantly over the year, it has increased our competitiveness to issue corporate loans. "