Artea bankas (ROE1L) Q3 2025 earnings summary

Executive summary

• Adjusted net profit for nine months exceeded EUR 56 million, with reported net profit at EUR 48.4 million, and Q3 adjusted net profit at EUR 19.5 million, equating to a 13.5% ROE.

• Net interest income grew 6% quarter-on-quarter, but declined 14% year-on-year to €104.3 million; net fee and commission income rose 8% year-on-year.

• Loan portfolio expanded 8% year-on-year to €3.7 billion, with deposit portfolio up 11-15% to over €3.75 billion; loan-to-deposit ratio brought below 100%.

• Strategic partnership launched with Kauno Žalgiris to boost brand visibility and attract new clients.

• Share buybacks resumed post-ECB approval, with up to 4.5 million shares authorized for repurchase.

Financial highlights

• Net profit for 9M 2025 was €48.4 million (down 24% YoY); Q3 adjusted net profit was €19.5 million; return on equity was 11.1% reported and 13% adjusted for nine months, with Q3 ROE at 13.5%.

• Net interest margin stabilized at 2.9% in Q3; cost/income ratio increased to 58%.

• Operating expenses remained flat overall, with increases from strategic investments and rebranding.

• CET1 ratio at 17.0%, with total assets up 12% YoY to €5.5bn.

• Loan portfolio cost of risk at 0.15% (down from 0.31% YoY).

Outlook and guidance

• Loan portfolio growth expected to reach 13-14% for the year; deposit growth to match loan expansion.

• Net interest margin forecasted at 2.8%-2.7% for upcoming quarters; deposit rates expected to slightly decrease by 2026.

• Long-term RoE target set above 17%, with a minimum 50% dividend payout policy.

• Continued investment in core banking system and digital transformation; rebranding costs to normalize after Q4.

• Scenario analyses and stress tests indicate resilience to economic shocks.