16. October 2020
Over the past few months, LHV Pank has become the market leader for investment services in Estonia, reaching two major benchmarks: LHV’s market share increased to 44 per cent and the value of LHV clients’ securities reached EUR 1.1 billion.
‘The year 2020 has been very fast-paced on the investment landscape; the abolition of Baltic transaction fees at the start of the year, and the corona crisis on global stock exchanges, have led thousands of new investors in Estonia to invest. We are very pleased that the strong growth of LHV’s market share demonstrates that new investors are preferring to grow their portfolio especially at LHV’, commented Martin Mets, Head of Investment Services at LHV.
The market share of LHV’s investment services has increased by 10 per cent compared to 2019, and as at the end of June, 44 per cent of the quoted shares held by Estonian private persons and enterprises were kept at LHV Pank’. According to LHV, a strong market share such as this makes the bank the clear market leader on Estonia’s investment landscape. LHV Pank also holds a similar market share (45%) in terms of transactions made on Baltic stock exchanges over the first 9 months of the year. In October, the volume of securities of LHV clients also surpassed the EUR 1.1 billion threshold.
‘A good example of increased interest in investment in Estonia is the LHV Growth Account, which in January was used actively by 10,000 clients; however, that number has increased by 50 per cent, with the number of active users recently exceeding 15,000. Another example is LHV’s investment seminars, which are being held virtually this year and which have gained significantly more participants than before. Participants in the seminar for beginners “Investment ABC”, numbered nearly one thousand’, Mets noted.
According to Mets, the total growth of the portfolio kept at LHV has also been supported by the fact that many Estonian investors profited from the major crash of the stock exchange this spring. The net investments of clients increased notably during the spring, i.e. mostly, people decided to buy more securities instead of selling them at the declined market prices. The risky purchases in spring led to a healthy profit for many, inflating the value of portfolios.
According to statistics from Eesti Pank, the market value of quoted shares of Estonian private persons and enterprises has increased by 6 per cent during the year. At the same time, LHV’s clients, who are Estonian residents, have managed to grow their stock portfolios by 36 per cent. ‘We are also working towards helping the Estonian people to continue successfully increasing their capital in the future’, commented Martin Mets, Head of Investment Services at LHV.
Data from Eesti Pank (total sum of quoted securities held by Estonian households and non-financial corporations, as at Q2 2020) and LHV.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank and LHV Varahaldus. LHV employs more than 480 people. LHV’s banking services are used by more than 231,000 clients, and pension funds managed by LHV have more than 182,000 active clients. LHV’s UK branch offers banking infrastructure to 120 international financial services companies, via which LHV’s payment services reach clients around the world.
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