The bank’s deposit base also grew by 182% over the year, rising to £585 million, while the firm took a net profit of £3.1 million and a 7.5% return on equity in its first year as a bank.

According to LHV, a significant portion of the firm’s business stemmed from the SME Lending.

The firm’s total number of payments processed in 2024 increased by 57% to 74.8 million.

Although heightened competition and falling interest rates put pressure on fees and interest income, the bank managed to significantly increase payments volumes and retain deposit levels.

Erki Kilu, CEO at LHV Bank (pictured above), said: “These results reflect our ambition and appetite for growth by delivering a bank that’s both technologically advanced and firmly committed to putting its customers first.

•   The Finance Professional Show 2024: The Video
•   LHV Bank provides £2.3m to fund hotel acquisition
•   LHV Bank provides £7m commercial loan for Manchester investment

“Our digital-first approach and putting savings first will give people and businesses more power over their money. We are committed to offering transparent, high-value products and services that help customers achieve their financial goals.”

“Looking ahead, LHV Bank intends to deepen its commitment to the UK market. Our objective is to double the SME Lending portfolio this year and introduce additional products for our Banking Services clients, such as open banking, direct debit solutions, and instant settlement, to further diversify our product range.”

“In the coming months, we will expand our presence in retail banking by launching our retail bank offering, including a market-leading current account with direct debits, debit cards, and competitive savings.

“As a next step, we plan to broaden the offering to include other currencies and business accounts. We will also be seeking consumer lending permission for products such as overdrafts.”