This article first appeared on GuruFocus .
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Net Profit:EUR44 million for 2025.
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Q4 Net Profit:EUR8.7 million, up from EUR7.7 million in Q4 2024.
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Earnings Per Share:EUR2.28 for 2025.
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Return on Average Tangible Equity:5.2% for 2025.
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Consumer Lending Growth:20% increase in new business.
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SME Lending Growth:11% increase in new business.
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Net Interest Income:EUR238.4 million, a decrease of 1.8% year-on-year.
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Net Commission Income:Increased by 7.6% year-on-year.
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Net Banking Income:Slight improvement by 30 basis points.
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Administrative Costs:Increased by 1.6% year-on-year.
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Operating Result:EUR109.8 million, down from EUR112.3 million in 2024.
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NPE Volume:Reduced to EUR125.5 million from EUR144.7 million in 2024.
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NPE Ratio:Improved to 2.5% from 2.9% in 2024.
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Coverage Ratio:Improved to 81.7% from 80% in 2024.
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Cost of Risk:0.96% or EUR35.2 million.
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Deposits:EUR5.3 billion with a loan-to-deposit ratio of 70%.
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Liquidity Coverage Ratio:Above 300% at group level.
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Total Capital Ratio:22.4% based on Basel IV regulations.
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Share Price:Increased to EUR27.4 as of early 2026.
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Loan Book Growth:7% year-on-year.
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Net Interest Margin (NIM):3.7%.
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Operating Expenses (OpEx):EUR195.4 million.
Release Date: March 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Addiko Bank AG ( WBO:ADKO ) achieved a net profit of EUR44 million for 2025, despite challenging legislative changes.
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The bank reported a 20% growth rate in new consumer lending business and an 11% growth rate in SME new business.
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Net commission income increased by 7.6% year on year, driven by strong sales performance and strategic cooperation in the insurance business.
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The bank successfully reduced its NPE volume to EUR125.5 million, improving the NPE ratio to 2.5% from 2.9% in the previous year.
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Addiko Bank AG ( WBO:ADKO ) maintained a strong capital position with a CET1 ratio of 22.4% under Basel IV regulations.
Negative Points
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Regulatory interventions in several markets, including Croatia and Serbia, negatively impacted core revenues.
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The bank's operating result decreased to EUR109.8 million from EUR112.3 million in 2024.
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The dividend distribution for 2025 remains suspended due to regulatory considerations related to the shareholder structure.
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The conversion rates in the Romanian market were below expectations, prompting a refinement of the marketing approach.
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The bank's shares will be reclassified from the prime market to the standard market due to low trading volumes and liquidity.
Q & A Highlights
Q: The guidance for 2025-2026 seems conservative, with a CAGR revised from more than 7% to more than 6%. Could you explain this adjustment? A: Herbert Juranek, CEO, explained that the revision reflects regulatory restrictions in several markets impacting growth potential. Ganesh Krishnamoorthi, Chief Market, IT & Digitalization Officer, added that the 6% CAGR is reasonable given these challenges, particularly in the SME sector.
Q: The return on average tangible equity appears weak due to growing equity without moderation. Is this correct? A: Herbert Juranek, CEO, confirmed that the equity base is increasing because dividend payments are suspended due to the shareholder situation and regulatory views.
Q: With a risk cost of 0.96% versus a 1.3% guidance, do you expect this to remain below 1.3% in 2026? A: Tadej Kraovec, Chief Risk Officer, expects the cost of risk to stay below 1.3%, driven by regulatory limitations that reduce exposure to riskier segments.
Q: The net banking income guidance for 2026 is flat, with growth expected in 2027. Could you elaborate on this outlook? A: Edgar Flaggl, CFO, stated that the flat guidance reflects regulatory and legal restrictions impacting top-line growth, with a full-year impact of EUR10.5 million in 2026. The assumption is a flat interest rate environment.
Q: If the shareholder situation is resolved, how might dividend payments be structured? A: Herbert Juranek, CEO, mentioned that the management's ambition is to resume dividend payments, aiming for around 50% of profits. Any payout exceeding yearly profit would require regulatory approval. The decision will depend on the bank's state and regulatory considerations at the time.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
