Addiko Bank (ADKO) H2 2024 earnings summary

Executive summary

• Net profit for 2024 rose 10% year-over-year to EUR 45.4 million, with EPS at EUR 2.35 and a return on average tangible equity of 5.7%.

• Operating result improved by 8% to EUR 112.3 million, or 11% excluding one-off takeover bid costs.

• Active customer base grew over 4% year-over-year, with digital users up 7% and consumer business exceeding expectations, while SME segment faced challenges.

• Dividend for 2024 suspended per ECB recommendation amid complex shareholder changes; policy to distribute ~50% of net profit remains, pending regulatory approval.

• Acceleration Program completed, setting foundation for future growth; focus in 2025 on specialist bank strategy, digital expansion, and performance improvements.

Financial highlights

• Net interest income increased 6.5% year-over-year to EUR 242.9 million; net commission income up 8.7% to EUR 73.0 million.

• Cost of risk for the year was EUR 36 million (1.03%), with NPE volume at EUR 145 million and NPE ratio stable at 2.9%.

• Loan-to-deposit ratio at 66.3%, liquidity coverage ratio at 363%, and CET1 ratio at 22% fully loaded.

• Operating expenses rose 7.7% year-over-year, contained at EUR 192 million, below the EUR 195 million threshold, including takeover-related costs.

• Adjusted net profit would have been up nearly 18.2% year-over-year, excluding one-off costs.

Outlook and guidance

• Loan growth CAGR targeted above 7% from 2024 to 2026; NIM forecasted above 3.6% for 2024 and 2026.

• NBI growth of ~2% for 2025 and above 5% for 2026; OpEx planned below EUR 196 million in 2025 and below EUR 200 million in 2026.

• Cost of risk expected at ~1.3% for both years; NPE ratio to stay below 3%; TCR above 18.35%.

• Return on average tangible equity adjusted to ~6% in 2024 and ~6.5% in 2025 due to higher tax assumptions and capital stack.

• Dividend payout guidance unchanged at ~50% of net profit, subject to ECB instructions.