Artea bankas (ROE1L) investor relations material

Executive summary

• Loan book grew 6% quarter-over-quarter and 8% year-over-year, led by strong corporate and mortgage lending, with corporate activity rebounding after a softer Q1.

• Net profit for the quarter was nearly EUR 8 million, with ROE at 5%, impacted by a non-cash, non-recurring goodwill impairment related to pension reform; H1 2026 net profit was EUR 23.2 million, down 27% year-over-year.

• Asset quality remains robust, with low impairments, late-stage NPLs at 0.15%, and strong underwriting standards.

• Management transition occurred, with Tomas Varenbergas appointed Acting CEO and ongoing strategic review.

• Business growth accelerated in Q2, with robust new lending in corporate and mortgage segments.

Financial highlights

• Net interest income rose 6% year-over-year to EUR 72.5 million; net fee and commission income up 16% quarter-over-quarter and 14% year-over-year, reaching EUR 16 million.

• Net profit was EUR 7.8 million for the quarter, down 50% QoQ due to the impairment charge; adjusted net profit was EUR 18.9 million, up 9% QoQ.

• Deposit portfolio grew 15% year-over-year to over EUR 4 billion; loan portfolio increased 8% to over EUR 3.9 billion.

• Cost-to-income ratio at 56.8% (vs. 55.2% in H1 2025); operating expenses remained mostly flat, with slight increases in salaries and building costs.

• Total assets reached EUR 6.2 billion, up 18% year-over-year.

Outlook and guidance

• Business growth expected to continue, driven by strong demand for corporate and mortgage lending.

• Guidance for the year is under review due to the pension reform impairment and ongoing strategic reassessment; updated figures expected with Q3 results.

• NIM expected to remain flat or gradually recover, with some upward repricing possible in corporate and mortgage books.

• Asset quality is expected to remain strong, with no material changes in NPLs anticipated.