LHV Group profit rises to 37.5 million euros in third quarter
Key Facts
LHV Group's consolidated net profit rose to 37.5 million euros in the third quarter of 2026, according to its quarterly financial report, supported by credit provision releases. The group compared the result with net profit of 24.7 million euros in the previous quarter, while profit in the corresponding period last year was 26.3 million euros. Quarterly earnings benefited from a net release of credit provisions of 8.9 million euros, according to the group's investor presentation. The group attributed this to the "positive resolution of a large corporate credit exposure in Estonia". The increase in quarterly profit came as nine-month net profit remained below its year-earlier level, down 5% year on year.
On income, the group reported an increase in total net income to 80.1 million euros in the third quarter, compared with 79.0 million euros in the previous quarter. Net interest income reached 68.812 million euros, according to the financial data book accompanying the quarterly results. The group had generated 62.480 million euros from this item in the second quarter of the same year. Net fee and commission income also rose to 16.800 million euros, from 14.644 million euros in the previous quarter. The increase in interest income coincided with a widening of the net interest margin to 2.8%, from 2.6% in the second quarter, according to the data book.
On costs, the group's operating expenses fell to 43.4 million euros in the third quarter, according to the quarterly financial report. These expenses stood at 43.6 million euros in the previous quarter, declining as total net income rose. Return on equity improved to 19.3% during the period, compared with 13.1% in the second quarter. Quarterly earnings per share were 0.11 euros, according to figures provided by the group in the report. Earnings per share compared with 0.07 euros in the previous quarter, alongside the improvement in consolidated net profit.
Among its banking units, LHV Pank posted net profit of 33.749 million euros in the third quarter, according to the financial data book. The bank's net profit had reached 24.284 million euros in the previous quarter of 2026. The group's British subsidiary, LHV Bank, recorded net profit of 1.408 million euros over the same period. The group compared the British bank's result with profit of 1.399 million euros in the second quarter. In a historical comparison, the group previously recorded consolidated net profit of 39.5 million euros in the third quarter of 2023, a level above the current quarterly result.
For the first nine months of 2026, the group's net profit reached 81.9 million euros, according to its official results statement. The group said in the statement that this profit was "5% lower than the previous year". Compared with the financial plan for the same period, actual profit was 81.910 million euros, according to the more detailed figures in the investor presentation. The plan had targeted net profit of 78.326 million euros for the nine months. Profit therefore exceeded the group's financial target by 3.584 million euros, despite declining year on year.
The group's annual financial plan targets net profit of 117.861 million euros for 2026, according to the financial data book. This target covers the full year, while the announced results cover nine months. For upcoming disclosures, the group has scheduled the release of its October results for 17 November 2026, according to the financial calendar published on its investor website. This will be followed by the release of November results on 15 December 2026. These disclosures form part of the monitoring of performance during the final quarter of the year covered by the financial plan.