Artea bankas (ROE1L) Investor Update summary

Dividend Policy and Capital Return Strategy

• Announced a new dividend policy with a minimum payout of 50% of the previous year's net earnings, up from the prior 25%, with flexibility for share buybacks under certain conditions.

• Dividend payments are contingent on meeting all regulatory capital and liquidity requirements and supporting growth and investment plans.

• Any deviation from the policy will be explained to shareholders, with policy changes approved by the Supervisory Council and final decisions by the General Meeting of Shareholders.

Share Buyback Program

• Planned tender offer for €5 million in October, followed by open market buybacks of €5–6 million, targeting up to 25% of daily trading volume.

• ECB approved repurchase of up to 13,745,114 shares, including €10 million for capital reduction and €1.5 million for employee remuneration.

• Buybacks aim to reduce the discount to fair value, improve per share metrics, boost liquidity, and provide reliable exit options for investors.

• Buybacks will be executed under market abuse regulations and use a Dutch auction for the tender offer.

Capital Position and Funding

• Recent successful placements of subordinated debt, Eurobonds, and €300 million senior preferred notes have improved capital efficiency and supported funding structure and MREL targets.

• Plans to issue €50 million in Additional Tier 1 bonds in 2024/25 and subordinated debt in 2025.

• These actions support organic growth and high shareholder distributions.