LHV Group Reports Mixed July 2026 Results: Profit Up but Deposits Lag
Event summary
- LHV Group reported a consolidated net profit of EUR 8.7 million in July, up EUR 1.8 million from June.
- Loan portfolio grew by EUR 80 million (16% YoY) to EUR 5.85 billion, exceeding financial plan by EUR 41 million.
- Deposits increased by EUR 104 million (1% YoY) but fell short of the financial plan by EUR 276 million.
- Cumulative net profit for 2026 reached EUR 53.1 million, down 25% YoY and EUR 4.1 million below plan.
The big picture
LHV Group's July results highlight a mixed performance with strong loan growth but lagging deposits. The group's strategic focus on demand deposits and disciplined management of liquidity costs reflects broader industry trends toward optimizing funding structures. With cumulative net profit down 25% YoY, the group's ability to manage operating expenses and fee income will be critical in maintaining profitability.
What we're watching
- Profitability Pressures
- Whether LHV Group can sustain net interest income growth amid higher operating expenses and lower fee income.
- Deposit Strategy
- The pace at which LHV Group can align deposit volumes with financial plans by focusing on demand deposits.
- Loan Portfolio Quality
- How the strong quality of the loan portfolio will impact impairments and overall financial health.
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