LHV Bank has reported a sharp increase in both deposits and lending, alongside a £5m profit after tax, in its 2025 annual results.
The bank recorded £1.1bn in customer deposits and £0.7bn in lending, representing growth of 99% and 136% respectively over the year. The performance marks a strong second full year since launch in the UK, with expansion across both retail and business banking.
LHV said growth was driven by demand for what it describes as clear products, competitive rates and a focus on simplicity rather than promotional incentives. Business balances rose steadily, while higher volumes were secured across SME lending, with activity concentrated on profitable UK trading businesses.
Product development remained a priority throughout 2025, particularly within the bank’s app-only model. This included the launch of the UK’s first new current account since 2021, featuring a commitment to track and match Bank of England base rate or AER.
The current account includes fee-free debit cards for overseas spending, competitive foreign exchange rates and a full range of payment options. On the retail side, customer numbers increased to more than 30,000, comprising current account holders and savers attracted by easy access and term savings products that regularly feature in best-buy tables.
During the year, the senior leadership team was strengthened through appointments across marketing and lending. LHV was also recognised as one of the Sunday Times’ Best Places to Work for the second consecutive year.
Erki Kilu, chief executive officer at LHV Bank, said: “Crossing £1bn in UK deposits is an important marker of trust. Customers are choosing LHV Bank because we are clear on what we offer and consistent in how we deliver it.
“At the same time, we are growing our lending in a way that makes sense, backing businesses with strong fundamentals and a clear sense of direction.
“Looking ahead to 2026, we expect deposits and loans to grow by around 50%, alongside increases in profit after tax and return on equity, as we continue to improve our products.
“We’re strengthening our retail offering and app, expanding our savings product range, launching our first retail credit products and introducing additional currencies alongside the pound sterling for both retail and banking services clients.
“By keeping our team size stable and improving efficiency through modern technologies, we can reinvest in simpler, more useful banking that delivers quality products for customers and sustainable growth for the business.”
RETAIL BANKING MOMENTUM CONTINUES
Retail deposits surpassed £1bn during the year, supported by a proposition centred on clear pricing and fair value. The bank’s current account pays interest on positive balances, while its savings accounts offer straightforward terms without short-term introductory bonuses.
Following a six month review of governance and responsible lending standards, the Prudential Regulation Authority granted LHV consumer credit permission in January. This will allow the bank to introduce overdraft facilities for current account customers during 2026.
LHV said its retail products are aimed at customers seeking consistently competitive rates without the need to regularly switch accounts or monitor changing conditions.
SME LENDING EXPANDS
The bank’s SME lending division also delivered strong growth, targeting profitable, owner-managed UK businesses, including those that can be underserved by larger high street lenders.
LHV provides term finance to support business growth, acquisitions and investment, including commercial real estate and specialist buy-to-let transactions. Lending decisions are taken by experienced credit teams with direct access to decision-makers, applying what the bank describes as a pragmatic view of risk and cashflow.
BANKING SERVICES RECORD RESULTS
Banking Services activity reached record levels, with transaction volumes rising to 88 million payments during the year, an increase of 17% year on year.
