LHV Bank returned 99% growth in deposits and 136% in loans, recording a profit after tax of £5m and a 5% return on equity in its 2025 annual financial results. The bank recorded £1.1bn in customer deposits and £0.7bn in lending, marking a strong year of growth in its second full year since launch across both retail and business services.
The bank’s results were driven by customer demand for LHV’s strong and fair rates, clear products and an approach built on simplicity rather than gimmicks. Business balances have grown steadily whilst higher volumes have been secured across SME lending, with a focus on profitable UK trading businesses.
Product development, to further enhance the bank’s app-only services and innovation continued to be a priority in 2025, resulting in the launch of the UK’s first current account into the market since 2021 with an attention-grabbing commitment to track and match Bank of England base rate or AER.
The account offers travel-friendly, fee-free debit cards with competitive exchange rates on spending abroad and a full range of payment options. On the retail side, direct and platform customer numbers rose to over 30,000 – a mix of current account holders and savers drawn by competitive easy access and term savings accounts which consistently feature in ‘best buy’ tables.
The senior leadership team grew through key appointments in marketing and lending, and LHV was recognised with a Sunday Times ‘Best Places to Work’ accolade for the second year in a row.
Key highlights
- £1.1bn deposits and £0.7bn loans
- £5m profit after tax
- Deposits and loans doubled
- First current account since 2021 launched into UK with Bank Base Rate commitment
- First UK bank joining euro payments scheme, SEPA Instant Credit Transfer (RT1) directly so processing euro payments in real time
- Strengthened senior team with Head of Marketing and Lending Directors appointments
- Awarded Sunday Times’ Best Places to Work accolade
Erki Kilu, CEO of LHV Bank, said:
“Crossing £1bn in UK deposits is an important marker of trust. Customers are choosing LHV Bank because we are clear on what we offer and consistent in how we deliver it. At the same time, we are growing our lending in a way that makes sense, backing businesses with strong fundamentals and a clear sense of direction.
“Looking ahead to 2026, we expect deposits and loans to grow by around 50%, alongside increases in profit after tax and return on equity, as we continue to improve our products.
“We’re strengthening our retail offering and app, expanding our savings product range, launching our first retail credit products and introducing additional currencies alongside the pound sterling for both retail and banking services clients.
“By keeping our team size stable and improving efficiency through modern technologies, we can reinvest in simpler, more useful banking that delivers quality products for customers and sustainable growth for the business.”
Retail banking continues to build momentum
Retail deposits surpassed £1bn, supported by a simple proposition built around fair value and clear rates. LHV Bank’s current account pays interest on positive balances, while savings accounts offer straightforward terms with no short-term bonuses.
After a six month assessment of the bank’s governance and commitment to responsible lending, the PRA granted the bank consumer credit permission in January, allowing it to launch competitive overdraft facilities for its current account customers in 2026.
The retail offering is designed for customers who want their money to work harder without having to switch regularly or track changing conditions. Rates remain competitive as standard, with products built to last.
Growth in SME lending
LHV Bank’s SME lending business recorded strong growth during the year, targeting profitable, owner-managed UK businesses, including firms often underserved by high street banks.
The bank provides term lending to support business growth, acquisitions and investment, including commercial real estate and specialist buy-to-let transactions. Lending decisions are made by experienced credit teams with direct access to decision-makers taking a pragmatic view of risk and cashflow.
Record Highs in Banking Services
Banking Services also delivered record results, with transaction volumes rising to 88 million payments, up 17% year on year. The business continued to attract UK and global fintechs seeking reliable payment infrastructure and clear pricing.
