Kruso Kapital (KK) H1 2025 earnings summary

Executive summary

• Net profit for the first half of 2025 reached €4.4 million, more than doubling year-over-year, driven by strong growth in Italy, pawn loans, and the integration of new subsidiaries including CEP.

• Adjusted net income was €4.7 million, reflecting non-recurring items.

• Net interest income rose 41% to €6.6 million, and net fee and commission income increased 56% to €10.6 million, reflecting higher loan volumes and auction activity.

• The acquisition of CEP, a pawn loan portfolio in Tuscany, the rebranding of Art-Rite to Kruso Art, and the issuance of a €2 million Credit Linked Note were key events.

Financial highlights

• Total income grew 50% year-over-year to €17.3 million, with operating costs up 30% to €10.6 million due to consolidation of CEP and higher administrative expenses.

• Loans and receivables with customers increased to €152.8 million, up 6% from December 2024.

• Equity rose to €53.9 million from €49.5 million at year-end 2024.

• Cash and cash equivalents decreased to €7.5 million from €9.0 million at year-end.

• Total assets reached €212.0 million as of June 30, 2025, up 3.7% from year-end 2024.

Outlook and guidance

• Collateralised loan volumes in Italy are expected to grow, supported by portfolio acquisitions and digitalisation.

• Subsidiaries in Greece and Portugal are expected to consolidate further, though Kruso Art faces sector volatility and is not expected to contribute positively in 2025.

• Regulatory changes (CRR III) may affect the eligibility of gold collateral for credit risk mitigation after 2026.

• A non-recurring charge of €0.7 million is anticipated in connection with a change of control event at the parent bank.