Artea bankas (ROE1L) investor relations material

Executive summary

• Completed rebranding to Artea, unifying all subsidiaries and transitioning from a regional to a national bank, with all digital channels and branch updates delivered on time and within budget.

• Strategic initiatives, including a cloud-based core banking system upgrade and new product launches, are progressing on schedule and within budget, with full launch planned for 2026.

• Loan book growth rebounded in Q2, with the mortgage portfolio surpassing €1 billion and strong performance in corporate and private client segments.

• Net profit for H1 2025 was €31.9 million, a 26% decrease year-over-year, with operating profit before impairment and tax at €42.9 million, down 25% from H1 2024.

• Share buyback program's second phase completed, with plans to resume buybacks in Q3, reinforcing commitment to shareholder returns.

Financial highlights

• Net interest income for H1 2025 was €68.4 million, a 15% decrease year-over-year, but flat sequentially due to proactive funding cost management.

• Net fee and commission income grew 10% year-over-year to €15.1 million, driven by asset management and renovation financing.

• The loan portfolio increased 15% year-over-year to €3.7 billion; customer deposits grew by 11% to €3.53 billion.

• Net profit (excluding one-offs) was €36.9 million for H1 2025.

• Book value per share rose to €0.87, up 4% year-over-year.

Outlook and guidance

• Expectation of continued stabilization in net interest income and margin for the rest of the year, despite a declining rate environment.

• Loan book growth projected in the lower to mid double-digit percentage range for 2025.

• Cost discipline and proactive cost management prioritized amid revenue headwinds.

• Long-term ROE target set above 17%, with a minimum 50% dividend payout and >20% total shareholder return.

• Deposit growth is a focus, aiming to reduce loan-to-deposit ratio to below 100%, targeting 90% long-term.