Addiko Bank (ADKO) Q3 2024 earnings summary

Executive summary

• Net profit rose 25% year-over-year to €37.7 million in Q3 2024, with EPS at €1.95 and return on average tangible equity up to 6.4% from 5.5% last year.

• Operating result improved 7% year-over-year to €83.5 million, or 11% excluding €3 million in one-off takeover/advisory costs.

• Consumer lending grew strongly, up 22% year-over-year, while SME loan growth remained muted or declined.

• Shareholder structure changes and failed takeover offers by NLB and Agri Europe Cyprus led to €3 million in extraordinary expenses and regulatory interventions.

• Focus segments (Consumer and SME) now represent 89% of the gross performing loan book, with Consumer loans up 11% year-over-year.

Financial highlights

• Net banking income rose 8.1% year-over-year to €235.3 million; net interest income up 8.5% to €181.7 million; net fee and commission income up 6.6% to €53.6 million.

• Cost/income ratio at 60.8% (59.5% adjusted for one-offs); general administrative expenses up 8.5% year-over-year.

• Cost of risk at €25 million (0.71%), with NPE ratio at 2.9% and NPE coverage at 80.8%.

• CET1 ratio (fully loaded) at 21.1%, customer deposits at €5.1 billion, liquidity coverage ratio above 380%.

• Loans to customers grew 1.1% to €3,527.4 million; deposits up 2.1% to €5,139.2 million.

Outlook and guidance

• 2024 guidance: loan growth >6%, NIM >3.8%, NPE ratio <3%, ROATE ~6%, DPS >€1.2, OPEX <€195 million.

• Consumer business expected to remain strong; SME headwinds to persist, prompting review of midterm loan growth targets.

• Macroeconomic environment in the region seen as positive, but lower interest rate forecasts and ECB rate cuts may impact targets.

• Romania launch included in midterm targets, but initial impact expected to be limited.

• Next results call scheduled for 6 March 2025.