FullSimplify does not always recognize that two logs can be combined into one. You can write your own replacement rule, however:
combineLogs = ((a_*Log[b_] + c_*Log[d_]) /; a + c == 0) :>
a*Log[b/d];
With[{\[Lambda] = 1/100, \[Delta] = 1/100},
result1 =
1 + (\[Lambda]*s)/2 (1 - s*Exp[-\[Delta]*t])^(\[Lambda]/\[Delta])
Integrate[
E^(-\[Delta]*
v) *(1 - s*Exp[-\[Delta]*v])^(-(\[Lambda]/\[Delta])), {v, 0,
t}]; result2 = result1 /. combineLogs;
Collect[result2, _Log, Simplify]]
Pay attention to the arguments of Log, which can become negative in Mathematica's integration results.