(MENAFN- GlobeNewsWire - Nasdaq) 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.
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Sten Hans Jakobsoo
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