LHV Bank posted strong full year results for 2024, ending the year with net profit of £3.1m and a 7.5% return on equity.
LHV Bank’s deposit base grew by 182% over the year, rising to £585m.
The bank’s loan portfolio expanded by 318%, reaching a year-end total of £289m.
A significant portion of LHV Bank’s success stemmed from the SME Lending, which accelerated through faster loan disbursements, an expanded product range, an increased broker network, and a strengthened team in London and Manchester.
By introducing a fixed-rate specialist buy-to-let product and forging partnerships with nearly 60 loan brokers, the bank enhanced its reach among property investors.
The SME lending pipeline remains strong, with £99m in loans approved by the credit committee but not yet disbursed at year-end.
The bank’s funding is mainly received via deposit aggregators.
By the end of the year, the bank had over 11,600 depositors across three deposit platforms.
Meanwhile, the banking services business experienced record demand.
The total number of payments processed in 2024 increased by 57% to 74.8m.
Although heightened competition and falling interest rates put pressure on fees and interest income, the bank managed to significantly increase payments volumes and retain deposit levels.
In addition, LHV Bank joined the euro standard payments scheme in 2024 and is set to join the euro instant payments scheme in April this year.
Other noteworthy achievements from 2024 included the bank becoming one of the first in the financial services sector to adopt ChatGPT Enterprise for all employees and being named one of the Sunday Times Best Places to Work 2024.
Erki Kilu, CEO of LHV Bank, said: “These results reflect our ambition and appetite for growth by delivering a bank that’s both technologically advanced and firmly committed to putting its customers first.
“Our digital-first approach and putting savings first will give people and businesses more power over their money.
“We are committed to offering transparent, high-value products and services that help customers achieve their financial goals.
“Looking ahead, LHV Bank intends to deepen its commitment to the UK market. Our objective is to double the SME lending portfolio this year and introduce additional products for our banking services clients, such as open banking, direct debit solutions, and instant settlement, to further diversify our product range.”
Kilu added: “In the coming months, we will expand our presence in retail banking by launching our retail bank offering, including a market-leading current account with direct debits, debit cards, and competitive savings.
“As a next step, we plan to broaden the offering to include other currencies and business accounts. We will also be seeking consumer lending permission for products such as overdrafts.”
