Addiko Bank (ADKO) H1 2025 earnings summary

Executive summary

• Net profit for 1H25 was €24.0m, down 6% year-over-year, with EPS at €1.25 and operating result at €51.6m.

• Return on average tangible equity reached 5.8%.

• Operating result was €51.6m, impacted by lower interest rates and higher administrative costs.

• Active customer base grew 4% year-over-year, with strong double-digit growth in new consumer business, while SME lending lagged.

• Digital transformation advanced, with new digital lending processes launched in multiple countries.

Financial highlights

• Net interest income fell 2.4% year-over-year to €117.8m; net fee and commission income rose 5.6% to €37.3m.

• Net banking income remained stable at €155.0m; operating result at €51.6m (-4.4% YoY).

• General administrative expenses rose to €97.4m, mainly due to wage increases; cost/income ratio at 62.8%.

• Cost of risk at 0.4% (€14.4m), improved from €15.5m in 1H24.

• NPE ratio stable at 2.9%, NPE coverage at 80.8%.

Outlook and guidance

• 2025 outlook adjusted: loan book growth >6% CAGR 2024-26 (was >7%), NIM >3.6%, flat NBI, ROATE >4.5% (was ~6%).

• OPEX capped at <€196m, LDR <80%, TCR >18.35%, NPE ratio <3% as guiding principle.

• Dividend payout remains suspended per ECB guidance; DPS target ~50% of net profit when resumed.

• 2026 guidance under review, to be updated with year-end results.

• Regulatory changes in Croatia and lower rates expected to impact 2026 profitability.