LHV Group’s Share Buyback Signals Confidence Amidst Baltic Economic Shifts

TALLINN, ESTONIA – November 21, 2025

AS LHV Group, Estonia’s largest domestic financial group, has initiated a share buyback program, repurchasing 15,327 of its own shares on the Nasdaq Tallinn Stock Exchange between November 14th and 20th, 2025. The move, authorized by shareholders and the Supervisory Board, signals confidence in the company's financial health and a proactive approach to capital management amidst a shifting economic landscape in the Baltic region.

Navigating Regional Economic Currents

The decision to repurchase shares arrives at a time of moderate economic adjustment in the Baltic states. While the region has demonstrated resilience, recent data indicates a slowing of growth compared to previous years, driven by factors such as global inflation, supply chain disruptions, and geopolitical uncertainties. “Companies like LHV are carefully navigating these currents,” notes one market observer. “A share buyback can be a powerful signal to investors – a demonstration that management believes the stock is undervalued and has confidence in future earnings.”

LHV Group’s recent financial performance underscores this confidence. Despite experiencing a slight dip in net profit during the third quarter of 2025, the group maintains robust capital ratios and continues to expand its loan portfolio and deposit base. The company’s upgraded credit rating by Moody’s Investors Service to Baa2 with a positive outlook further validates its financial strength. While acknowledging a more competitive environment, LHV has demonstrated consistent profitability and a commitment to sustainable growth.

Strategic Capital Allocation

The share buyback is not simply a financial maneuver, but a strategic allocation of capital aimed at enhancing shareholder value. By reducing the number of outstanding shares, LHV aims to increase earnings per share and return on equity, benefitting both institutional and individual investors. The company’s investor relations team emphasizes a commitment to transparent communication and proactive engagement with shareholders.

“We believe this buyback demonstrates our confidence in LHV’s long-term prospects and our commitment to delivering sustainable returns to our shareholders,” said a source within LHV’s finance department. The company has historically focused on organic growth and strategic acquisitions, but the share buyback represents a complementary approach to capital management.

Fintech Leadership and Regional Impact

LHV Group has established itself as a leading force in the Estonian fintech landscape, providing banking, asset management, and insurance services. Its success is intertwined with the broader growth of the Estonian digital economy, which has attracted significant foreign investment and fostered innovation. The company’s expansion into the UK market, serving fintech companies and SMEs, further solidifies its regional influence.

“LHV is not just a bank; it’s an ecosystem enabler,” explains a financial analyst specializing in the Baltic region. “They are actively supporting the growth of the fintech sector and contributing to the digital transformation of the Estonian economy.” The share buyback is seen as a positive signal for the entire sector, demonstrating the financial viability and growth potential of Estonian fintech companies.

The company's strong focus on innovation and customer service has positioned it as a key player in the rapidly evolving financial technology space. Despite increased competition from both traditional banks and new fintech startups, LHV has consistently maintained its market share and attracted new customers.

Regulatory Compliance and Future Outlook

LHV Group operates under the stringent regulations of the Estonian Financial Supervision Authority (Finantsinspektsioon). The share buyback program was conducted in full compliance with all applicable laws and regulations, ensuring transparency and accountability. The company’s commitment to responsible governance and risk management has earned it the trust of both regulators and investors.

While the economic outlook for the Baltic region remains uncertain, LHV Group is well-positioned to navigate the challenges and capitalize on the opportunities that lie ahead. The company’s strong financial performance, strategic focus on innovation, and commitment to shareholder value suggest a positive trajectory for the years to come. The decision to repurchase shares is not merely a short-term financial tactic, but a long-term investment in the company’s future and a signal of confidence in the strength and resilience of the Estonian economy.