LHV Group Updated Financial Plan for 2020
Due to sudden changes in the economic environment, AS LHV Group is disclosing an updated financial plan for this year. Compared to the plan published in February, the planned growth of business volumes has been reduced, the volume of loan write-downs has been significantly increased and as a result the profit forecast has been lowered.
According to the updated financial plan, in 2020 compared to the previous year, revenues of the consolidation group will increase by 18%, expenses by 14% and loan write-downs sixfold, resulting in a decrease of consolidated net profit to EUR 19.2 million or by 29% when compared to 2019. In terms of business volumes, LHV estimates a 7% growth of the loan portfolio, 11% increase in deposit volumes and 6% increase in assets under management for this year.
Key indicators | Updated FP 2020 | 2019 results | Change |
Previous FP 2020 |
|
Financial results, EURt | |||||
Total revenue | 87,316 | 73,818 | 13,498 | 95,647 | |
Total expenses | 44,773 | 39,266 | 5,507 | 46,423 | |
Impairment losses on loans | 19,357 | 3,209 | 16,148 | 7,177 | |
Earnings before taxes | 23,185 | 31,342 | -8,157 | 42,047 | |
Net profit | 19,231 | 27,092 | -7,861 | 35,917 | |
Business volumes, EURm | |||||
Loans | 1,806 | 1,687 | 119 | 2,165 | |
Deposits | 2,985 | 2,701 | 284 | 3,127 | |
Assets under management | 1,454 | 1,374 | 80 | 1,576 | |
Key ratios | |||||
Cost / Income ratio | 51.3% | 53.2% | -1.90% | 48.5% | |
ROE (pre tax) | 10.2% | 16.2% | -6.00% | 18.1% | |
Capital adequacy | 17.6% | 18.0% | -0.4% | 17.5% |