Addiko Bank (ADKO) Q3 2025 earnings summary

Executive summary

• Net profit for the first nine months of 2025 was €35.3m, down 6.4% year-over-year, with Q3 profit at €11.3m; return on average tangible equity at 5.6% and EPS at €1.83.

• Operating result for Q3 2025 reached a record €31.2m, with year-to-date operating result at €82.9m, nearly flat year-over-year despite lower rates and higher costs.

• Active customer base grew 5% year-over-year, with digital users up 7% and mobile banking users up 8% year-over-year.

• Focus segments (Consumer and SME) accounted for 91% of the gross performing loan book, with Consumer lending up 9% year-over-year and new business up 17% year-over-year.

• Digital transformation advanced, including automated lending in Romania and AI adoption in HR and call centers.

Financial highlights

• Net banking income was stable at €235.6m year-to-date, with net interest income down 2.2% to €177.8m and net fee and commission income up 7.8% to €57.8m.

• General administrative expenses increased 1% year-over-year to €144.5m, mainly due to wage and inflation effects; cost/income ratio at 61.4%.

• Net interest margin decreased to 3.7% year-to-date (down 19bps YoY).

• Loan-to-deposit ratio at 69%, liquidity coverage ratio above 388.9%, and total capital ratio at 21.3% (CET1, Basel IV).

• Equity increased to €887.4m, including 3Q25 profit and positive OCI development.

Outlook and guidance

• 2025 guidance maintained: loan growth >6%, NIM >3.6%, NPE ratio <3%, TCR >18.35%, OPEX <€196m, LDR <80%; mid-term targets under review due to regulatory and macroeconomic uncertainties.

• Updated guidance to be disclosed with year-end results in March 2026.

• Dividend payout ratio targeted at 50% of net profit, but dividend remains suspended pending shareholder and regulatory situation.

• New midterm specialization program to be launched in Q1 2026, focusing on cost optimization, digitalization, and AI-based solutions.