LHV Bank has reported a marked acceleration in its UK lending activity, with its loan book expanding by more than 30% in the first quarter of 2025 to reach £0.4 billion.
The bank attributed the growth to rising demand from brokers and increasing appetite for its commercial and investment finance products, particularly among small and medium sized enterprises and property investors.
Deposits also rose during the quarter, reaching £0.7 billion, while the volume of new loans issued totalled over £130 million. The results underscore the bank’s continued momentum in the UK market, coming just weeks after a £10 million capital injection to support further expansion.
The figures, released ahead of the launch of LHV’s new UK retail banking app in May, signal a strong performance across the bank’s core business areas. The forthcoming app will offer customers a current account, debit card and a suite of savings products.
The first quarter saw LHV Bank deliver a net profit of almost £1.8 million and achieve a post-tax return on equity of 9.6%. The capital ratio stood at 22.7% at the end of March, reflecting a conservative approach to growth.
Erki Kilu, chief executive of LHV Bank, said the strong start to the year had been driven by consistent demand for reliable and responsive finance from SMEs and property clients.
“While we are proud to have expanded our loan book and grown our deposit base in a challenging market, what matters most is achieving sustainable profitability,” he said. “The first quarter results, and the positive momentum we are seeing, reflect the strength of our business model and the clarity of our strategy.”
The bank said the volume of loans approved but not yet completed remained high, pointing to continued growth into the second quarter. Kilu added that the launch of LHV’s UK retail offering would further demonstrate the bank’s ambition to combine technology with trusted financial services.
“We are building a bank that puts customers first, balances technology with trust, and supports both businesses and individuals to achieve their financial goals,” he said. “There is more to come in the months ahead.”
