ECB concluded Asset Quality Review of LHV Group


As of 2023, AS LHV Group was subjected to direct supervision of European Central Bank (ECB), and thus the ECB carried out a one-time Asset quality review (AQR) of LHV Group. In conclusion of comprehensive assessment, the regulator concluded capitalisation of LHV Group as sufficient.

In case of LHV Group, the assessment was made based on AS LHV Pank’s loan portfolios as of 31 December 2022, also analysing the activities of 2021 and 2020. The assessment concerned a period which saw an effect on the bank’s portfolio by the pandemic and the beginning of the economic recession. These factors were important inputs and utmost conservatism was applied throughout the review in accordance with the methodology established by the ECB.

The initial CET1 ratio that was 16.02% as of the end of 2022 was deducted by -2.71% concluding a post-AQR CET1 to be 13.3%. The good level of AS LHV Pank’s capital base was deemed as sufficient despite the crisis years, there was no shortfall of capital. The results of the AQR are not directly applicable to the bank, and no additional capital requirements are set. The ECB published the results of the AQR on its website this evening.


LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1080 people. As at the end of February, LHV’s banking services are being used by 424,000 clients, the pension funds managed by LHV have 121,000 active clients, and LHV Kindlustus protects a total of 164,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the UK and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.

Priit Rum
Communications Manager
Phone: +372 502 0786
E-post: [email protected] 

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