LHV Group Reports 10% Revenue Decline in 2025 Amid Rising Costs

Event summary

  • LHV Group reported a 10% decline in consolidated revenue to €304.8 million in 2025, with net interest income dropping 14% to €235.1 million.
  • Net profit fell 22% to €117.0 million, while expenses rose 8% to €159.3 million, resulting in a cost/income ratio of 52.3% and a return on equity of 16.0%.
  • Total assets grew 17% to €10.23 billion, deposits increased 18% to €8.13 billion, and the loan portfolio expanded 20% to €5.47 billion.
  • The group proposes a dividend of €0.17 per share, totaling €55.7 million, with payment scheduled for April 15, 2026.

The big picture

LHV Group's 2025 results reflect broader challenges in the banking sector, including pressure on net interest margins and rising operational costs. Despite a decline in revenue, the group's strategic focus on fee-based services and asset growth has helped mitigate some of the downturn. The proposed dividend signals confidence in maintaining shareholder returns, even as the group navigates a shifting financial landscape.

What we're watching

Revenue Diversification
How LHV Group will balance declining net interest income with a 5% increase in fee and commission income.
Cost Control
Whether the group can sustain its 16% return on equity amid rising expenses.
Asset Growth
The pace at which LHV Group can continue expanding its loan portfolio and managed funds.

Related topics

Banking