LHV Group Targets 9% Revenue Growth in 2026, Projects Doubling Net Profit by 2030
Event summary
- LHV Group forecasts 9% total income growth in 2026, driven by 8% net interest income and 23% net fee and commission income growth.
- Loan portfolio expected to grow 11% while deposits rise 5%, reflecting strong retail and corporate customer demand.
- Five-year forecast projects net profit doubling to €290 million by 2030, with return on equity rising from 16% to 23%.
- LHV Bank targets 50% loan portfolio growth and 80% net profit increase in 2026, marking a profitability breakthrough.
- Cost-to-income ratio projected to improve from 52.3% to 35.8% by 2030 through operational efficiency gains.
The big picture
LHV Group's 2026 financial plan and five-year forecast highlight a strategic focus on operational efficiency and market expansion in both Estonia and the UK. The group aims to leverage technological advancements to drive profitability, with a particular emphasis on scaling its UK operations. This strategy comes against a backdrop of stabilizing macroeconomic conditions and intense banking sector competition, requiring disciplined pricing and efficiency improvements to maintain growth momentum.
What we're watching
- Profitability Trajectory
- Whether LHV Group can sustain its projected 68% profit before tax increase at LHV Bank while maintaining operational efficiency gains.
- Market Expansion
- The pace at which LHV Group can double its loan and deposit volumes by 2030 amid strong banking sector competition.
- Technological Transformation
- How LHV Group's technological capabilities development will impact its cost-to-income ratio improvement.
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