The licence will enable the bank to accept customer deposits; LHV Bank operates in two business lines – Banking Services and SME Lending – and plans to accept retail deposits and expand offerings for e-commerce businesses.

In addition, the banking licence will help LHV Bank transition from a branch of Estonian AS LHV Pank to a fully authorised and regulated British bank.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The bank applied for a banking licence in March 2022.

Madis Toomsalu, chairman of LHV Bank, stated: “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”, Toomsalu added.

Founded in 1999, the bank entered the UK market in 2018 and continued its expansion by later buying the SME lending business from Bank North in October 2022.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

LHV Bank is an Estonian financial group serving roughly 400,000 customers and with assets worth over £10bn. The bank has 130 employees and offices in London, Leeds, Manchester and Tallinn.

Erki Kilu, the CEO of LHV Bank, welcomed the news.

“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”, Kilu said.