ECB administrative fine on LHV Group

The European Central Bank (ECB) has notified AS LHV Group of a decision to
impose an administrative fine in the amount of EUR 405 thousand in connection
with an error in consolidated regulatory reporting for the period 30 June
2022-31 March 2024. The inaccuracy was related to the presentation of the equity
of the UK subsidiary, LHV Bank Limited, and arose from a difference in
methodological interpretation and a technical consolidation error. The error
affected the capital requirement for foreign exchange risk. The potential impact
of the fine was recognised in the expenses of the second quarter of this year.
The impact on the capital ratio was on average limited to 35 basis points
(maximum of 66 basis points). LHV Group complied with capital requirements at
all times. We have refined our reporting approach in line with supervisory
clarifications and the Q1 2023-Q1 2024 reports were corrected and resubmitted.
The ECB has published the final decision on its website.

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 1,100 people. As at the
end of September, the services of LHV Pank are being used by 483,000 customers,
the pension funds managed by LHV have 107,000 active customers, and LHV
Kindlustus protects a total of 227,000 customers. LHV Bank Limited, a subsidiary
of the Group, holds a banking licence in the United Kingdom and provides banking
services to international financial technology companies, as well as loans to
small and medium-sized enterprises.

Investor Relations
Sten Hans Jakobsoo
Head of Investor Relations and Corporate Development
Email:[email protected]
(https://www.globenewswire.com/Tracker?data=VwrEYTOc-
weFXvkLzDmJIoB6D7jzGpfBXR2GNI0yYD-mm-
dGbm_JaznIqAtA2MX7EJ5zFf_SAtIhRyK4AepRdktQcEAmyfCkkflJKXDcGxIVIybytUoFE2oKnxRJwa
On9aPYPd7BUdvIuwKOpTadmQ0fsJISQEf69EBsV-
0AGevBiF9gHZ6PO1nEtoffAwSRKeXBkT51V14RfaSP03C7GM_pAp9ZmmdKfnVNfOlhHqHPNELKwnqmed
GvNVhpgWFVQ8DveQWXQQSwOLrMP_igIzOQ15pfnUbuRw0wm5uvYlBMS_rCDTAyhvITfzaU4uEhpVqsjX
nlkioVarEIvVLo4D4agbnt_gUmNLxpWv1EoI5sPJeqa0jeV1JyZMYw_layeJvtrgLWrQ1R6gy6dLF-
OANyKirJdqSpFyKE1XaY1Fm42MBTNzzJ8y5g4WKhcgoMWzLE0EevoWNYColwZHCZBDUjwDKTA9Qbdyi7
IO0JTmBePGqzjoNkXv8VL5_0q_LuVvTT-TWgOayy_sL-mhb-ug==)

Communications
Paul Pihlak
Head of Communications
Email:[email protected]
(https://www.globenewswire.com/Tracker?data=Ze0tpxr1wF-pUFaEDNiO0By5tkWYJoy9de4-
M1YvKxrRMYSzAP_NNu1BOrGUwAhvykzGrFMYVtBmBVK9iJVjFp4MenFT38Vos3h5tuEX2LAO0ZTOny_A
47I9VzmrgQ4Ih8MfRRC8AD8AeStJmSpK3wiaJ5HILhM9xClsAIIpGihU20jBJSYmXtoAJH4A_IAYvovI
0guMvJVk1ozVktVJ_SinlZEk7PPPARO9qf0DDpQmqbEaM-
vdWIeOH_cG73et0livmsR1uLeVtLo6asFK8nlwf6pXFhPF1hCyf8Rc0zgTeQNg5-
RxwTGvzeOMPrUuL8719Y8qYq1Zxb1VLhwbP3DJDU8mMrZ36diqEZ5D8Frr2usLYzFjuFAfJNGZ3bmYGS
ijeSfF49v3mBplGhHT65XQL7E_JhnzgApS24GSsYWrRfvufR95cpfHNo8bUOGRQBnW1yNHUOFQtIPjc_
q2FikjW0oknpSSmFxXI1anMaAweB8J1djh4JULs8CsaY7r)?