The growth, said the specialist lender, has been driven by an acceleration of its lending to small and medium-sized enterprises (SMEs).
Meanwhile, deposits at the bank rose to £0.7bn over the same period.
The bank issued more than £130m in new loans in Q1 2025, driven by sustained broker demand and growing interest in its commercial and investment finance offering.
LHV Bank reported a net profit of almost £1.8m and a return on equity after tax of 9.6%. The bank’s capital ratio stood at 22.7% at the end of March.
The growth follows a £10m capital injection into the bank in March, supporting its plans for further expansion in the UK market.
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The latest results come ahead of the formal launch of its UK retail banking app next month.
Erki Kilu, chief executive of LHV Bank, said: “This has been a strong start to the year, driven by growing demand for the type of straightforward, responsive finance we are offering to UK SMEs and property investors.
“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. The first quarter results, and the positive momentum we are seeing, reflect the strength of our business model and the clarity of our strategy.”
Earlier this month, LHV Bank implemented an auto decision platform that will allow the bank to make credit decisions within seconds, as well as build rules, scorecards and matrices using multiple data sources.
