Artea bankas (ROE1L) Q4 2025 earnings summary

Executive summary

• Net profit for 2025 was €60.7 million, with adjusted net profit at €73 million and adjusted ROE of 12.4%, reflecting strong underlying performance despite one-off costs from core banking upgrade and rebranding.

• Loan portfolio grew 8% year-over-year to €3.71 billion, deposits increased 17% to €3.96–4.0 billion, and total assets rose 23% to over €6 billion.

• Maintained robust capital position with CET1 ratio at 16.6% and total capital ratio at 21.2%, well above regulatory requirements.

• Strategic initiatives included a completed rebranding, ongoing Core Banking modernization, and winning a €625 million EIB fund mandate.

• Management proposes a record-high 70% profit distribution (50% dividends, up to 20% buybacks), subject to approvals.

Financial highlights

• Net fee and commission income grew 6% year-over-year to €30.9–31.0 million, driven by asset management and renovation businesses.

• Net interest income declined 14% year-over-year to €138.3 million due to low base rate environment.

• Operating expenses increased 17% year-over-year to €111.7 million, mainly due to non-recurring costs from Core Banking and rebranding; cost/income ratio rose to 58.8%.

• NIM in Q4 was 2.5–2.6%, impacted by increased market funding; asset yields are stable.

• Stage 3 loans saw a temporary increase in Q4 due to a single exposure, but normalized at the start of 2026.

Outlook and guidance

• Loan book growth target for 2026 is 11%, with deposit growth expected to match or reach 5%; total revenue guidance up 10%, and net profit guidance at €61 million (adjusted €73 million).

• Cost-to-income ratio targeted to fall below 45% within 1–1.5 years after investment phase ends.

• Long-term ROE target remains above 17%; minimum 50% payout ratio commitment continues.

• Strategic ambition to become Lithuania’s national champion by 2029, focusing on customer satisfaction, growth, and 20% investor return.