LHV Bank increases share capital by £21m to support business growth
09 Apr 2024
LHV Bank, one of the UK's newest licenced banks, has increased its share capital by £20.9m to support its growth ambitions. Following the additional capital investment by the Bank’s sole shareholder, LHV Group, completed in the last week, the share capital of LHV Bank is £75m.
In the last year, LHV Bank transferred its Banking Services business from its UK branch to the licenced bank. The capital needs were, therefore, also transferred to the Bank. As the business volumes of both its Banking Services and SME Lending operations increase rapidly, the already profitable Bank still needs additional capital to ensure its capital adequacy remains high.
Erki Kilu, CEO, LHV Bank said: “The additional capital from our sole shareholder will give the lending brokers with whom we work continued confidence that they can rely on us as a long-term partner. It will also enable us to strengthen the retail bank offering planned to launch later this year.”
LHV Group is listed on the Nasdaq Baltic and is the largest domestic financial group in Estonia. LHV Group’s strong financial standing is underlined by its earned net profit of £120m and 29% net ROE in the last year.