LHV Bank has reported robust growth for 2024, its first full year operating under a UK banking licence, with deposits nearly tripling and loans more than quadrupling as it eyes further expansion in the UK market.
The bank posted a net profit of £3.1 million for the year, with a return on equity of 7.5%. Its deposit base surged by 182% to reach £585 million, while the loan portfolio increased by 318%, ending the year at £289 million.
Key to this growth was a sharp acceleration in SME lending, underpinned by faster loan disbursements, an expanded product set, and the development of its broker network and regional teams. The introduction of a fixed-rate specialist buy-to-let product and partnerships with almost 60 loan brokers have bolstered the bank’s position among property investors. The pipeline remains strong, with £99 million of loans approved but undrawn at the end of the year.
Erki Kilu, chief executive of LHV Bank, said the results reflected the bank’s “ambition and appetite for growth” and highlighted its commitment to building a “technologically advanced” and customer-focused financial institution.
“Our digital-first approach and putting savings first will give people and businesses more power over their money,” Kilu said. “We are committed to offering transparent, high-value products and services that help customers achieve their financial goals.”
The bank’s deposits are sourced largely through aggregators, and it ended the year with over 11,600 depositors across three platforms.
Its Banking Services division also posted a record year, with payments volumes climbing 57% to 74.8 million. Although income from fees and interest was squeezed by increased competition and falling rates, the bank maintained strong deposit levels while expanding its payments activity. The business joined the euro standard payments scheme last year and is set to join the euro instant payments scheme this April.
In addition to financial milestones, the bank noted its adoption of ChatGPT Enterprise across the organisation, becoming one of the first in the sector to do so. It was also named one of the Sunday Times Best Places to Work 2024.
Looking to the year ahead, Kilu said the bank intends to double the size of its SME loan book and launch new services for its Banking Services clients, including open banking, direct debit solutions and instant settlement features. It also plans to launch a retail banking arm offering current accounts, debit cards and competitive savings products. Further expansion will include business accounts and multicurrency capabilities, alongside plans to seek permission to offer consumer credit products such as overdrafts.
