LHV Bank has been authorised as a credit institution by the Prudential Regulation Authority, becoming the first institution to receive a banking licence without restrictions in this year.
It’s part of the Estonian retail bank AS LHV Pank, which decided to pursue a UK banking licence in 2021, and LHV submitted its application in March 2022. It has 130 employees in Leeds, London, Manchester and the Estonian capital Tallinn.
Madis Toomsalu, Chairman of LHV Bank, said: “Receiving the licence without restrictions in just over a year since submitting our application validates the exceptional work of our team and the professional operation we’ve built. We expect LHV Bank to achieve profitability by the end of our first year of operations. Our ability to generate additional capital internally positions us strongly for further growth in the dynamic UK banking market.”
Erki Kilu, the bank’s CEO, added: “In addition to our existing Banking Services and SME Lending activities, we plan to start accepting retail deposits later this year and expand our banking solutions offering to e-commerce businesses, maintaining the same level of convenience, reliability, and security that our existing clients have come to expect.”
Last year LHV Bank acquired Bank North’s SME Lending business line and received regulatory clearance from the FCA to start issuing SME loans. SME Lending has been a key strength of LHV Group, which has delivered 15 years of consecutive growth in this space. LHV Bank offers commercial real estate investment loans and trading loans starting from £0.5m to SMEs in the UK, with loan brokers serving as the primary sales channel for SME loans. LHV Bank’s strengths lie in its faster lending process, loan managers’ long-term experience, and understanding of local entrepreneurs’ needs. Leveraging its expertise, strong balance sheet and the proven demand for SME loans, LHV Bank plans to establish a robust lending business quickly.
