Gross lending for the year, meanwhile, was £227m.
In 2024, LHV recorded profit before tax of £4.1m, down from £6.4m in 2023 and a 51% year-on-year drop in net profit from £6.4m to £3.1m.
The bank’s deposit base grew by 182% over the year, rising to £585m, and it ended the year with an SME lending pipeline valued at £99m, consisting of loans approved by its credit committee but not disbursed by the year end.
A target to double the value of its SME lending portfolio has been set for 2025, while introducing additional products for its banking services clients.
The bank’s funding is mainly received through deposit aggregators. By the end of the year, LHV had over 11,600 depositors across three deposit platforms: Raisin, Flagstone and Hargreaves Lansdown.
Are your clients ready for the first Making Tax Digital reporting deadline?
Sponsored by BM Solutions
LHV reveals growth plans for 2025
In its full-year report, the bank said technology would enable its next phase of growth, adding that it “will double down our efforts to leverage digital solutions that enhance customer experience and operational resilience”.
In a statement, a chairperson added: “As we step into 2025, our focus is clear: growth, efficiency, and innovation. While macroeconomic uncertainties persist, we remain confident in our ability to thrive. Our objective is not merely expansion, but smarter, more sustainable growth.”
Erki Kilu, chief executive, said: “These results reflect our ambition and appetite for growth by delivering a bank that’s both technologically advanced and firmly committed to putting its customers first.”
He added: “In the coming months, we will expand our presence in retail banking by launching our retail bank offering, including a market-leading current account with direct debits, debit cards, and competitive savings. As a next step, we plan to broaden the offering to include other currencies and business accounts. We will also be seeking consumer lending permission for products such as overdrafts.”
