Ab Artea Bankas · OMXVSE:ROE1L

Ab Artea Bankas — Artea Bank — Q1 2026 Earnings Presentation

45 slides from Ab Artea Bankas's earnings presentation, Apr 28, 2026

  1. Slide 1: Q1'26 Financial Results

    Artea Bank Q1’26 Financial Results April 28, 2026

  2. Slide 2: Key Financial and Strategic Highlights Q1'26

    Key Financial and Strategic Highlights Financial Performance: Strategic Milestones & Innovation: Q1’26 ▪ Loan book growth picking up – with ▪ Changes in shareholder structure – strong loan originations in March and a Tesonet increased its stake at a 28% strong pipeline already visible for April, pre

  3. Slide 3: Pillar 2 Reform

    Pillar 2 Reform • Following the Pillar 2 reform, around 40% of assets were withdrawn from Pillar 2 funds Pillar 2 AuM Withdrawals1 Q1’26 • Artea Asset Management showed the 46% strongest resilience in the market during this period • The number of Pillar 3 pension 39% 39% 38% 39% contracts increased

  4. Slide 4: Tesonet Global Targets to Increase its Interest in Artea

    Tesonet Global Targets to Increase its Interest in Artea • On March 12, 2026 Tesonet Global bought an additional 2.52% in the Bank at 1.10 EUR P/B 1.2x EUR 1.1012 per share, increasing its holding to 9.86% Share price paid Deal valuation • The same day, Tesonet announced plans to raise its stake in

  5. Slide 5: Shareholders Structure

    Shareholders Structure March 2026 Current Shareholding Contracted Shareholding1 19.9% 31.7% 42.2% Other 45.7% Other 9.9% 7.4% 6.6% 18.7% 5.5% 5.1% 7.4% Algirdas Butkus Gintaras Kateiva (one of the (Early Investor) founders) Source: Company disclosure Notes: (1) After currently announced conditional

  6. Slide 6: Tesonet's Deep Technological Expertise Brings Real Value

    Tesonet’s Deep Technological Expertise Brings Real Value Market Leading Expertise In Core Technology As Well As Developing Unmatched Digital User Experience Enhancing Artea’s banking technology stack Building best in class digital user experience • Tesonet’s support to bring Artea’s technology to •

  7. Slide 7: Q1'26 Financial Results

    Q1’26 Financial Results

  8. Slide 8: Financial Performance Highlights

    Financial Performance Highlights Income Statement In €’m Q1’26 Q4’251 %∆ QoQ Q1’26 Q1’251 %∆ YoY Net Interest Income 35.8 34.0 5% 35.8 34.4 4% ▪ Net interest margin (NIM) has now bottomed out Net Fee & Commission Income 7.4 8.2 (10%) 7.4 7.6 (2%) and is positioned to improve as base rates and Other

  9. Slide 9: Net Interest Income

    Net Interest Income Key Highlights Net Interest Margin (NIM) Dynamics Net Interest Income YoY (€’m) ▪ While asset yields decreased in Asset Yield NIM Cost of Funding 1Q’26, we believe NIM has now bottomed out and is positioned to 35.8 5.5% 5.4% improve as base rates and deposit 5.2% 34.4 4.8% repric

  10. Slide 10: Loan Portfolio

    Loan Portfolio Key Highlights Loan Yields ▪ Loan book +7% YoY with main growth area being mortgage segment Total Corporate Mortgage Consumer ▪ We saw exceptionally strong loan book growth toward the end of the quarter, with March 9.7% 9.8% 9.8% alone delivering a €57m MoM increase 9.5% 9.4% ▪ The mo

  11. Slide 11: Net Fee & Commission Income

    Net Fee & Commission Income Key Highlights Net Fee & Commission Income YoY (€’m) ▪ Net fees & commission income (NFCI) declined by 2% compared to the previous year ▪ In Q1 2026, bond origination activity in the Baltics was lower, reflecting the usual -2% seasonal slowdown at the beginning of the yea

  12. Slide 12: Operating Expenses

    Operating Expenses Key Highlights Operating Expenses Development YoY (€’m) ▪ We continued organizational streamlining by reorganizing middle management in the retail and corporate divisions, Cost to Income Ratio 50.6% 56.0% creating a flatter and leaner structure Operating Costs ▪ Early savings from

  13. Slide 13: Asset Quality

    Asset Quality Loan Impairment Losses Development (€’m) and Cost of Risk (%) Key Highlights Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 ▪ A strong macroeconomic backdrop and disciplined underwriting continued to Impact of Parameters (6.4) 0.5 0.7 2.1 4.3 0.8 support excellent asset quality Loan impairment ▪

  14. Slide 14: Funding

    Funding Key Highlights Funding Portfolio Breakdown (Q1’26) Cost of Funding ▪ Managed to further decrease our funding Due to Other Banks Cost of Deposit Portfolio Total Cost of Funding Market Funding costs primarily driven by deposit funding 3% Other 7.00% 5% ▪ Moody’s upgraded Artea long-term deposi

  15. Slide 15: Capital Ratios and Requirements

    Capital Ratios and Requirements Key Highlights Sufficient Capital to Support Growth Going Forward ▪ The capital position remains strong, providing a solid foundation for future growth and CET 1 Tier 1 Total Capital capital distributions Surplus 4.34% 4.13% 4.24% ▪ RWA density remained at a comfortab

  16. Slide 16: Concluding Remarks

    Concluding Remarks ▪ Net interest margin – NIM have bottomed out, providing a more stable base for future performance ▪ Cost discipline – Cost-cutting initiatives fully offset natural inflation, keeping expenses flat year-over-year ▪ High asset quality – NPL ratio and cost of risk remained at low le

  17. Slide 17: Business Segment Results

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  18. Slide 18: Corporate Clients Segment Development

    Corporate Clients Segment Development Key Highlights Corporate Loans1 (€’m) Corporate Loans by Sectors1 (Q1’26) ▪ Corporate loan book grew +4% Existing Loan Book Newly Originated Loans Other 6% Healthcare 3% YoY, driven mainly by real estate and manufacturing segments Utilities 8% +4% Real Estate 30

  19. Slide 19: Private Clients Segment Development

    Private Clients Segment Development Key Highlights Private Loans (€’m) New Mortgage Agreements (€’m) ▪ Private client loans grew 11% Consumer Financing Mortgage YoY, supported mainly by strong 86.0 mortgage demand +11% 76.0 ▪ Physical branch network 62.8 1,426 1,423 1,458 optimisation continues to i

  20. Slide 20: Asset Management Development

    Asset Management Development Asset Management Pillar 2 AuM Development (€’m) Key Highlights 1 390.0 ▪ Fund performance remained stable in Q1 despite market volatility, demonstrating business resilience 1 340.0 1,319 ▪ Pillar 2 reform-driven withdrawals are expected to negatively impact the asset 1,2

  21. Slide 21: Debt Capital Markets

    Debt Capital Markets Bonds Originated by the Bank in Primary Market (€’m) Key Highlights ▪ Bond origination activity in the Baltics was lower in Q1 2026, reflecting the usual seasonal slowdown Value of Bonds Issued Number of Issuances 15.0 ▪ Market fundamentals remained supportive, with continued st

  22. Slide 22: Appendix

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  23. Slide 23: Key Investment Highlights

    Key Investment Highlights A Profitably Growing Lithuanian Banking Franchise with New Strategic Expansion Initiatives 01 Operating in a structurally attractive market with strong growth potential 02 Differentiated and diversified business mix 03 A strategic focus on selected lending areas is generati

  24. Slide 24: Income Statement

    Income Statement In EUR'000 Q1’26 Q1’25 %∆ YoY Interest income 58,486 55,359 6% Other similar income 5,530 5,634 (2%) Interest expense (28,224) (26,582) 6% Net interest income 35,792 34,411 4% Fee and commission income 9,445 9,752 (3%) Fee and commission expense (2,031) (2,191) (7%) Net fee and comm

  25. Slide 25: Statement of Financial Position

    Statement of Financial Position In EUR'000 Q1’26 Q1’25 %∆ YoY ASSETS Cash and cash equivalents 336,299 702,241 (52%) Securities in the trading book 7,950 225,202 (96%) Due from other banks 25,579 2,615 878% Derivative financial instruments 896 476 88% Loans to customers 3,755,699 3,510,559 7% Invest

  26. Slide 26: Life Insurance Business

    Life Insurance Business Life Insurance Risk Under Management (RuM) (€’m) Risk Under Management Gross Written Premium 15.0 13.0 11.0 1,811 1,792 9.0 1,766 1,745 1,701 8.8 7.0 7.6 7.8 8.1 7.5 5.0 3.0 1.0 -1.0 Q1`25 Q2`25 Q3`25 Q4`25 Q1`26 Life Insurance Asset under Management (AuM) (€`m) 171.2 168.6 1

  27. Slide 27: Loan Portfolio Segments Performance

    Loan Portfolio Segments Performance Corporate Lending – Portfolio1 Mortgage – Portfolio Consumer Financing – Portfolio mEUR Portfolio Yield mEUR Portfolio Yield mEUR Portfolio Yield 6.0%5.9% 7.1%7.2% 7.1%7.0% 5.8% 5.8% 2 000 7.5% 1 100 5.6% 6% 10.1% 10.1% 6.8% 5.3% 5.2% 380 10% 1 900 6.6% 6.6% 7.0%

  28. Slide 28: Robust Loan Portfolio

    Robust Loan Portfolio Low LTV Ratios Remains Relatively Stable Loan Book Concentration1 44% 44% 44% 44% 43% Top 10 44% 6% Top 11-30 43% 43% 6% 42% 42% Top 31-50 4% Loan portfolio LTV Mortgage loans LTV 34% 33% 33% Loans secured by commercial 32% 32% real estate LTV Other 83% 1Q`25 2Q`25 3Q`25 4Q`25

  29. Slide 29: Conservative and Diversified CRE Portfolio

    Conservative and Diversified CRE Portfolio CRE: Underlying Property Types CRE: High Geographic Diversification Top 20 Corporate Real Estate Client Breakdown by Asset Class (Mar-25) CRE Split by Region (Mar-25) Siauliai 2% Warehouse 5% Klaipeda 12% Residential 10% Office 36% Manufacturing 14% Kaunas

  30. Slide 30: Sticky Local Deposits

    Sticky Local Deposits Deposits Development Top 10 Depositors Term Deposits with Auto-Rollover (Mar-26) Current Accounts Term Deposits Cost of Deposits % of Total Deposits 8 7 7 7 000 984 968 952 936 920 904 888 872 856 840 824 808 792 776 760 744 728 712 696 680 2.5% 7 7 664 648 632 616 600 584 568

  31. Slide 31: Solid Liquidity Position

    Solid Liquidity Position Securities Portfolio (Mar-26) Securities Portfolio (Mar-26) By Security Type, Bank-only By Accounting Method, Bank-only Corporate Bonds 2% Trading Book Fair Value -1% 16% Government Bonds Amortised Cost 98% 84% Liquid Assets (€’m) Strong Liquidity Position (Dec-25) Group Fig

  32. Slide 32: Capital Ratios and Requirements

    Capital Ratios and Requirements CET1 Ratio T1 Ratio Total Capital Ratio MREL Subordinated MREL Surplus 4.34% 4.13% 4.24% 3.51% 25.51% 54.21% Other EL 22.51% 31.71% MB 22.51% 0.40% 19.00% 28.70% 19.77% T2 Capital MB 0.80% 18.00% AT1 capital 18.27% 2.74% AT1 capital 1.77% 1.77% 15.64% MB (including P2

  33. Slide 33: Artea Market Share in Lithuania

    Artea Market Share in Lithuania Loan Portfolio Market(1) Corporate Lending(1) 21.7% 22.8% 24.6% 23.3% SEB SEB Swedbank Swedbank Luminor Luminor 10.2% Artea Artea 13.0% Others Others 13.9% 31.4% 29.6% 9.5% Mortgage(1) Deposits(1) 14.5% 26.2% 8.3% 12.1% 29.6% SEB Swedbank SEB Swedbank Artea Luminor Ar

  34. Slide 34: Artea Market Share Development

    Artea Market Share Development Loan Portfolio Market1 Corporate Lending1 Artea Swedbank SEB Luminor Other Artea Swedbank SEB Luminor Other 30.6% 30.6% 30.8% 31.4% 30.2% 30.4% 30.3% 30.3% 29.6% 28.1% 28.0% 27.7% 28.6% 27.6% 27.0% 27.5% 24.0% 24.1% 23.8% 25.2% 24.8% 24.5% 24.6% 23.5% 23.6% 23.6% 23.2%

  35. Slide 35: Lithuania: Sound Fundamentals and Solid Growth

    Lithuania: Sound Fundamentals and Solid Growth Key Facts (2025) Membership in prominent POPULATION 2.9 million organisations of economic integration and security (EU, NATO, OECD) NOMINAL GDP €83 billion CREDIT RATINGS1 A2 / A / A Competitive, Western-oriented economic growth model GDP/CAPITA IN PPS

  36. Slide 36: Lithuania's Economy: Structure

    Lithuania’s Economy: Structure Gross Value Added By Industry Lithuanian Origin Export Structure By Country (2025) Other, 13% Poland, 10% Manufacturing, 15% Germany, 10% Agriculture, 3% Financial Activities, 5% Other, 39% Human Health and Social, 5% Trade, 16% Netherlands, 8% Education, 5% Latvia, 8%

  37. Slide 37: Lithuania's Economy: Sound Pace of Convergence

    Lithuania’s Economy: Sound Pace of Convergence Real GDP Exports of Goods and Services GDP Per Capita in PPS SCDA Index (2015=100), % (2015=100), % EU-27=100, % EU27 CEE Baltics Lithuanian EU27 CEE Baltics Lithuanian CEE Baltics Lithuanian 140 90 135 190 130 85 125 170 120 80 150 115 130 75 110 105 7

  38. Slide 38: Lithuania's Economy: Banking Sector Evolution

    115% 135% 15% 35% 55% 75% 95% 15.0% 16.0% 17.0% 18.0% 20.0% 21.0% 22.0% 23.0% 24.0% 25.0% 19.0% Source: EBA Q1'20 Q1'20 Q2'20 Q2'20 Q3'20 Q3'20 Q4'20 Q4'20 Q1'21 Q1'21 Q2'21 Q2'21 Q3'21 Q3'21 Tier 1 Capital % Q4'21 Q4'21 Q1'22 Q1'22 EU EU Q2'22 Q2'22 Q3'22 Q3'22 Q4'22 Q4'22 Loan to Deposit Ratio % Q

  39. Slide 39: Banking Sector in Europe

    Banking Sector in Europe 18% 16% Banking Asset Growth CAGR (2020-2024) LT 14% RO 12% BG HR 10% CZ PL EE LV 8% SI 6% GR BE DE FR EU SK AT 4% ES SE DK PT IT 2% FI 0% 0% 100% 200% 300% 400% 500% 600% Banking Assets Ratio to GDP in 2024, % Source: Eurostat 39

  40. Slide 40: Research Analysts See Valuation Upside Potential for Artea

    Research Analysts See Valuation Upside Potential for Artea Analyst assessments imply average upside of 16% 12M Target Price Implied Upside(1) Current Share Price +32% +20% +15% +6% +6% +5% -2% € 1.40 € 1.20 € 1.20 € 1.09 € 1.04 € 0.96 € 0.96 € 0.95 € 1.00 € 0.89 € 0.80 € 0.60 € 0.40 € 0.20 € 0.00 IP

  41. Slide 41: Debt Securities in Issue

    Debt Securities in Issue Type ISIN Code Volume of Issue Interest rate Maturity Issue date Currency Senior Preferred XS3191554495 300,000,000 3.74% Jul 10, 2029 Oct 7, 2025 EUR Senior Preferred XS3025213102 300,000,000 4.60% Jun 25, 2030 Mar 25, 2025 EUR AT1 XS2922133363 50,000,000 8,75% Oct 17, 2029

  42. Slide 42: Management Board

    Management Board Artea Bankas: Artea Bankas: Vytautas Sinius 14 years Algimantas Gaulia 13 years ▪ Chief Executive Officer ▪ Chief Risk Officer Financial Industry: Financial Industry: ▪ Chairman of the Management Board 27 years 24 years Artea Bankas: Artea Bankas: Tomas Varenbergas 10 years Aurelija

  43. Slide 43: Board of Directors (Supervisory Council)

    Board of Directors (Supervisory Council) Valdas Vitkauskas Mindaugas Raila ▪ Chairman of the Supervisory Council of Artea Bankas since August 2022 ▪ Chairman at Willgrow, Girteka Logistics and SIRIN Development ▪ Member of the Supervisory Council of Artea Bankas since June 2022 ▪ Member of the Super

  44. Slide 44: Strengthening the Leadership Team

    Strengthening the Leadership Team Oleg Marofejev Vytautas Kaziukonis Chief Technology Officer (CTO) New Head of Organizational Transformation Oleg Marofejev has more than 20 years of experience Vytautas Kaziukonis, the co-founder and long-time CEO in banking digitalization, product development, and

  45. Slide 45: Disclaimer

    Disclaimer General The material in this presentation has been prepared by AB Artea Bank (Artea) and solely for use at this presentation. The information provided in this presentation pertaining to Artea, its business assets, strategy and operations is for general informational purposes only. No part

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