Alisa Pankki (ALISA) Q2 2025 earnings summary

Executive summary

• Operating environment remained challenging, with weak demand for financing and increased payment delays in both consumer and business segments.

• Profit before non-recurring items and taxes was EUR -1.4 million, and profit before taxes was EUR -1.6 million for January–June 2025.

• Loan portfolio decreased by 15% to EUR 126.9 million, and deposits fell by 24% to EUR 299.0 million compared to December 2024.

• Business financing loan portfolio grew 1.8% in H1 2025, while personal customer loans declined due to strategic changes.

• Capital adequacy ratio improved to 19.2%, exceeding regulatory requirements.

Financial highlights

• Net interest income was EUR 6.6 million, down 7.9% year-over-year; total operating income was EUR 7.4 million.

• Total operating costs increased to EUR 6.6 million, up 3% from the previous year.

• Realized and expected credit losses totaled EUR 2.3 million, a decrease from EUR 3.2 million year-over-year.

• Cost-to-income ratio rose to 90% (from 75% at end-2024), and ROE was -9.1%.

• Earnings per share (EPS) was EUR -0.01 for the period.

Outlook and guidance

• Profit warning issued in June 2025: profit before non-recurring items and taxes for 2025 is expected to decline from 2024.

• Focus remains on growing business financing, cost adjustments, and developing BaaS partnerships.

• Monthly profit before taxes and non-recurring items is expected to turn positive in the latter part of 2025.

• Medium-term targets include 20% average annual income growth, ROE over 15% by 2027, cost-to-income ratio below 50%, and capital adequacy of 16%.