Artea bankas (ROE1L) Q1 2025 earnings summary

Executive summary

• Q1 2025 net profit was EUR 17.7 million (adjusted: EUR 19.4 million), with ROE at 12.4% (reported) and 13.6% (adjusted); results met budget expectations and full-year guidance is reiterated.

• Loan portfolio grew 15% year-over-year and 2% sequentially, with strong asset quality and the lowest NPL ratio in five years.

• Net fee and commission income rose 17% year-over-year, now 16% of total revenues.

• Rebranding to Artea Bank (ticker ROE1L) effective May 5, 2025; IT transformation progressing on schedule.

• Dividend of EUR 0.061 per share paid, the highest in history; share buybacks ongoing and to resume with ECB approval.

Financial highlights

• Net interest income was EUR 34.4 million, down 13% year-over-year; total revenue EUR 48.3 million, down 16% year-over-year.

• Operating profit before impairment and tax was EUR 24.5 million, down 18% year-over-year.

• Cost-to-income ratio at 52.6% (Q1 2025), up from 42.1% (Q1 2024); adjusted C/I ratio at 51.3%.

• Cost of risk for Q1 at 0.2% (22 basis points), with guidance for 2025 at 20–30 basis points.

• CET1 ratio at 18.0%; total assets EUR 5.3 billion, up 7% year-over-year.

Outlook and guidance

• Management maintains full-year guidance, expects loan book to reach EUR 4.1 billion in 2025, and projects 8% CAGR through 2029.

• Net interest income expected to bottom out in Q2, with NIM stabilizing around 3% for 2025.

• Net profit guidance for 2025 at EUR 65 million, with minimum 50% dividend payout.

• Long-term ROE target above 17%; adjusted ROE expected to reach 13.7% in 2025.

• Guidance reiterated despite macroeconomic and political risks.