LHV Bank Doubles Its Deposits and Loans with £5m Profit After Tax in 2025

LHV Bank has reported a strong set of financial results for the year 2025, posting a profit after tax of £5 million alongside significant growth in both customer deposits and loan portfolios — nearly doubling key balance sheet metrics in its second full year of operations in the UK market. According to its annual results, the bank’s customer deposits surged to £1.1 billion and total lending expanded to £0.7 billion, reflecting rising demand across retail and SME banking segments.

The bank’s growth is underpinned by clear pricing strategies and straightforward product offerings that have attracted more than 30,000 retail customers. LHV Bank also launched a new current account in 2025, the first in the UK since 2021, featuring competitive benefits such as tracking Bank of England base rates and fee-free international card spending.

This expansion has been accompanied by ongoing product development, improvements to its app-based services, and strategic enhancements such as joining the SEPA Instant Credit Transfer scheme for real-time euro payments. As LHV Bank looks ahead to 2026, it expects continued deposit and lending growth supported by new product launches and broader market engagement.

Key Highlights

• Profit After Tax: LHV Bank posted a £5 million profit after tax for 2025.
• Deposits Growth: Customer deposits reached £1.1 billion, nearly double year-on-year.
• Loans Expansion: Lending surged to £0.7 billion, representing strong loan book growth.
• Retail Customer Growth: Retail customers exceeded 30,000, driven by product accessibility and features.
• New Current Account Launch: First new UK current account since 2021, with innovative features including base-rate tracking and fee-free international spending.

A Closer Look at LHV Bank’s 2025 Performance

Doubling Deposits and Loans

In its 2025 performance, LHV Bank has demonstrated remarkable momentum in customer acquisition and balance sheet growth. Customer deposits grew to £1.1 billion, while lending volumes climbed to £0.7 billion, marking increases of roughly 99% and 136% respectively compared to prior periods.

This expansion highlights robust demand for the bank’s products within the UK market, particularly among retail and small and medium enterprise (SME) clients. The bank’s straightforward product suite and competitive pricing policies have been cited as key drivers behind this rapid adoption trend.

Profitability & Business Momentum

Achieving a profit after tax of £5 million in just its second year of operations in the UK marks a strong early milestone for LHV Bank. This performance reflects effective risk and cost management, and a balanced growth approach that prioritizes stable asset quality and sustainable lending practices.

Growth was particularly notable in lending to profitable, owner-managed businesses across commercial real estate and specialist buy-to-let segments, demonstrating the bank’s commitment to servicing diversified credit needs.

Product Development and Market Expansion

New Current Account and App Enhancements

One of the standout developments in 2025 was the launch of LHV Bank’s new current account — the first such UK account introduced since 2021 — positioning the bank as an innovator in a competitive retail banking space. Features include a commitment to align with the Bank of England base rate and fee-free card use abroad, appealing to both everyday consumers and international travellers.

LHV Bank also continued to enhance its app-only service offerings, rolling out updated functionality and improving user experiences for digital banking customers. App enhancements support account management, payments and access to the bank’s range of savings and lending products.

SEPA Instant Credit Transfer Access

In another strategic milestone, LHV Bank became the first UK bank to join the SEPA Instant Credit Transfer scheme directly, enabling real-time credit transfers across euro-denominated payments. This move not only enhances cross-border payment efficiency for businesses and individuals alike but also demonstrates the bank’s commitment to cross-currency financial utility.

Outlook for 2026 and Beyond

Looking ahead to 2026, LHV Bank expects deposits and lending to continue expanding by around 50%, alongside anticipated increases in profit after tax and return on equity. Product strategy includes an expanded savings range, new retail credit offerings, and additional currency support beyond sterling — signaling a broader diversification of the bank’s value proposition.

Additionally, regulatory progress in January 2026 saw the Prudential Regulation Authority grant LHV Bank consumer credit permission, enabling the introduction of overdraft facilities for current account customers — a key step in building full retail banking capabilities within the UK market.

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