Artea bankas (ROE1L) Q4 2025 earnings summary

Executive summary

• Net profit for 2025 was €60.7 million, with adjusted net profit at €73 million and adjusted ROE of 12.4%, reflecting strong underlying performance despite one-off costs from core banking upgrade and rebranding.

• Loan portfolio grew by 8% year-over-year to €3.71 billion, deposits increased by 17% to €3.96 billion, and total assets rose 23% to over €6 billion.

• Strategic initiatives included a completed rebranding, ongoing Core Banking modernization (launch expected in H2 2026), and winning a €625 million EIB fund mandate.

• Record-high proposed profit distribution of 70% (50% dividends, up to 20% buybacks), subject to approvals.

• Maintained robust capital position with CET1 ratio at 16.6% and total capital ratio at 21.2%, well above regulatory requirements.

Financial highlights

• Net fee and commission income grew 6% year-over-year to €31 million, driven by asset management, renovation, and capital markets.

• Net interest income declined 14% year-over-year to €138.3 million due to low base rate environment.

• Operating expenses increased due to one-offs from Core Banking and rebranding, with cost/income ratio at 58.8%.

• Net interest margin was 2.5%-2.6% in Q4 2025, impacted by increased market funding.

• Return on equity was 10.4%, or 12.4% on an adjusted basis.

Outlook and guidance

• Loan book growth projected at 11% for 2026, with deposit growth expected to match or reach 5%; total revenue guidance up 10%, and net profit guidance at €61 million (adjusted €73 million).

• Cost-to-income ratio targeted below 45% in the long term after investment phase ends.

• Long-term profitability goal remains above 17% ROE and >20% total shareholder return.

• Strategic ambition to become Lithuania’s national champion and best bank by 2029, focusing on customer satisfaction and growth.