Why LHV?
LHV Group is the largest locally owned financial group in Estonia and, since 2018, a growing banking business in the United Kingdom. The group combines a mature and highly profitable home-market franchise in Estonia with a second growth engine now reaching scale in the United Kingdom. LHV provides a unique combination of established profitability, structural growth and disciplined execution.
€117m
Net profit 2025
CAGR 20–25: 25.2%
16.0%
Return on equity 2025
Average 20–25: 20.0%
17.4%
CET1 ratio 2025
+19.4%
Annualised TSR since 2016 IPO
25–50%
Dividend payout policy
5.1%
Dividend yield at 30.06.2026
Investment case
Strong and profitable market position in a structurally attractive home market
- Estonia’s digitally advanced operating environment provides a structurally attractive home market for digital-first banks
- LHV has consistently grown its market share in Estonia while delivering attractive profitability
- Estonia’s most preferred bank for the fifth consecutive year, with the highest customer satisfaction across the market
Next growth engine in the United Kingdom
- Full UK banking licence supports SME lending, retail deposits and banking services
- Business growth expected in all business segments
- UK loan book expected to grow 54% to EUR 1.2bn and net profit 79% to EUR 10m in 2026
Self-built modern technology platform creating a structural cost and growth advantage
- Cloud-native core banking platform with full control over cost, roadmap and pace of change
- Modular architecture enabling new products and markets from a single configurable base
- One of the earliest enterprise AI deployments in EU banking, embedded across the organisation
Robust capital and liquidity position
- All key regulatory metrics significantly above minimum requirements with meaningful headroom for continued growth
- CET1 of 15.8% (vs. 13.7% minimum) and a total capital ratio of 20.8% provide capital headroom
- Conservative loan-to-deposit ratio of 76% leaves significant capacity to fund further loan book expansion
Clear long-term plan and execution discipline
- By 2030, the loan portfolio is planned to nearly double and net profit to grow 2.5x
- ROE is expected to reach a stable level above 20% in the coming years
- Plan underpinned by a long-standing track record of execution discipline, with most financial targets met or exceeded since the 2016 IPO
Best-in-class shareholder returns
- Total shareholder return of 498% since the 2016 IPO, among the highest of European listed banks
- Annualised TSR of 19.4% since the IPO
- Consistent dividend track record with 31% DPS CAGR and a clear 25–50% payout policy
Company profile
AS LHV Group is Estonia's largest locally owned financial group. Founded in 1999 by Rain Lõhmus and Andres Viisemann, LHV today serves clients across banking, asset management and insurance in Estonia and operates a licensed bank in the United Kingdom.
At a glance
Third largest bank in Estonia, with operations in the United Kingdom since 2018
More than 700,000 clients across banking, asset management and insurance
ECB-supervised at group level and holder of a full UK banking licence since 2023
Cloud-based technology stack developed and maintained fully in-house
Approximately 1,200 employees
Listed on Nasdaq Tallinn since 2016, with a stable, founder-anchored shareholder base
Key figures 2025
| Net income | EUR 305m | −10% YoY |
|---|---|---|
| Net profit | EUR 117m | −22% YoY |
| Loan portfolio | EUR 5.5bn | +20% YoY |
| Deposits | EUR 8.1bn | +18% YoY |
| Total assets | EUR 10.2bn | +17% YoY |
| Return on equity | 16.0% | |
| CET1 ratio | 17.4% | min. 12.4% |
LHV Pank
- Third largest bank in Estonia with universal banking products and services for retail and corporate customers
- Core profit and capital engine of the Group, supported by a stable deposit base and consistent market share gains
- Differentiated through speed, digital capability and customer focus, enabling above-market growth with disciplined risk management
LHV Bank
- Banking services to international payment institutions, loans to SMEs and retail banking services in the UK
- Ability to link traditional banking and the new generation of financial services through open banking
- Focus on greater integration with Europe’s banking infrastructure
LHV Varahaldus
- Leading Estonian pension fund manager, delivering strong long-term returns across market cycles
- Active investment approach with access to private markets, including real estate, private equity and direct investments
- Integrated within LHV’s ecosystem, supporting client retention, cross-sell and long-term asset growth
LHV Kindlustus
- Digitally integrated non-life insurance business, embedded within LHV’s banking platform
- Ecosystem-driven distribution model, leveraging existing customers for efficient growth and low acquisition cost
- Disciplined underwriting and capital-light structure, supporting improving profitability and Group ROE contribution
Strategy
LHV's mission is better access to financial services and capital. LHV's vision is for people and businesses to dare think big and embark on bold ventures. LHV values: No Bullshit, Agile, Never Satisfied.
LHV's long-term objective is to offer its partners strong relationships, by being:
- the top financial service provider when it comes to customer service;
- the most engaged and understanding financial service provider for international financial intermediaries;
- transparent for investors, offering an annual ROE exceeding 20%;
- a company with the best management practices, positive social impacts and climate goals.
A clear plan for the next five years, built on execution discipline and track record
Strengthen LHV for long-term sustainable growth
- Deliver financial plan with discipline across volumes, profitability, capital and costs
- Strengthen core foundations, including data, IT, technology and risk management, to support scalable growth and resilience
- Enhance Group-wide governance capabilities to ensure transparency, efficiency and execution
Build scalable digital customer value offering
- Develop digital channels and offerings to strengthen competitive positioning
- Deliver a seamless everyday banking experience to drive engagement and product usage
- Build scalable products that can be developed once and rolled out across markets
- Enable faster innovation and more personalised services through modern technology
Estonia
- A stable and growing core of the Group’s profitability
- Recovery and growth in net interest income, driven by continued growth in business volumes and optimisation of the net interest margin
- Growth in net fee and commission income driven by more effective cross-selling, new products and updated pricing
- Focus on disciplined strengthening of market position, profitable growth and improved efficiency
United Kingdom
- A key driver of the next phase of growth
- Very rapid growth with a clear focus on increasing market share and expanding the customer base across all business segments
- Growth supported by the rollout of new products, development of client processes and enhancement of the digital customer experience
- Focus on efficient growth, leading to higher return on equity
Financial ambitions to 2030
Net profit
EURm
- Estonia delivers core profitability through volume growth, disciplined margin optimisation and cost discipline
- UK reaches strong profit contribution with growing volumes across all business segments
- Fee income strong growth driven by cross-sell, new products and pricing
- ROE is expected to reach a stable level above 20% in the coming years
Loan portfolio
EURm
- Estonian loan book continues to take share, but with more focus on margin optimisation
- UK loan portfolio more than doubles, anchored by specialist secured SME lending
- Risk cost held below 0.3% with disciplined underwriting maintained
- Funded entirely by own deposits, with focus on direct retail and corporate deposits, while deliberately reducing reliance on platform and financial intermediaries’ deposits
Cost/income ratio
%
- UK reaches scale and delivers positive operating leverage to Group efficiency
- Estonian C/I held below 42% through cost discipline, automation and AI deployment efforts
- Self-built platform avoids vendor cost escalation that constrains peer efficiency and supports cost-efficient potential expansion
- Headcount growth structurally below revenue growth across the plan period