Artea bankas (ROE1L) investor relations material

Executive summary

• Net interest margin stabilized and is expected to improve due to favorable Euribor dynamics and proactive funding cost management.

• Operating expenses remained flat year-over-year, with cost initiatives offsetting inflationary pressures.

• Asset quality remains strong, with low NPL ratios and cost of risk at 0.06%, supporting a resilient credit portfolio.

• Capital base is robust, enabling high dividend payouts and share buybacks, while maintaining flexibility for lending growth.

• Tesonet increased its stake at a 28% premium, aiming for a controlling position, with regulatory approval pending.

Financial highlights

• Net profit for Q1 2026 was EUR 15.4 million, down 13% year-over-year; adjusted net profit was EUR 17.4 million.

• Net interest income rose 4% year-over-year to EUR 35.8 million; net fee and commission income declined 2% to EUR 7.4 million.

• Loan book grew 7% year-over-year to over EUR 3.7 billion; deposit portfolio reached EUR 4 billion, up 15% year-over-year.

• Cost-to-income ratio improved to 46.3%, but cost/income ratio increased to 56.0% year-over-year.

• Return on equity was 10.5%, with adjusted ROE at 11.8%.

Outlook and guidance

• Financial guidance for 2026 is confirmed, with upside potential from higher Euribor and loan growth.

• NIM expected to improve as base rates and deposit repricing trends become more supportive.

• Scenario analysis and stress testing indicate resilience to severe economic disruptions.

• Expectation of 4–5% loan growth in the first half of the year, driven by mortgages and corporate lending.

• Tesonet Global aims to complete acquisition of a controlling stake by end of Q1 2027, subject to regulatory approvals.