Ab Artea Bankas · OMXVSE:ROE1L
Ab Artea Bankas — Artea Bank — Q3 2025 Earnings Presentation
55 slides from Ab Artea Bankas's earnings presentation, Oct 30, 2025
Slide 1: Artea Bank Q3'25 Financial Results
Artea Bank Q3’25 Financial Results October 30, 2025
Slide 2: Key Financial and Strategic Highlights
Key Financial and Strategic Highlights 9M’2025 ▪ NII up 6% QoQ, supported by stable NIM and continued loan book expansion ▪ NFCI up 8% YoY, driven by strong renovation financing and asset management performance Net Profit Adj. Net Profit €48.4m €56.4m ▪ Stable operating costs after excluding one-off
Slide 3: Strategic Partnership with Kauno Žalgiris
Strategic Partnership with Kauno Žalgiris Artea Bank Partners with Kauno Žalgiris to boost brand identity and accelerate growth in retail segment Key Partnership Benefits Increased brand visibility & awareness ▪ Partnering with Lithuania’s most popular sports club supports our rebranding efforts Why
Slide 4: Macroeconomic Overview
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Slide 5: Lithuania's Annual Economic Growth Remains Strong
Lithuania’s Annual Economic Growth Remains Strong Lithuania’s economy is expected to slow in the second half of the year as export and manufacturing momentum fades, but growth should rebound in 2026, driven by stronger consumption following the Pillar II pension reform and increased defense and soci
Slide 6: Lithuania's Engines of Development Have Shifted
Lithuania’s Engines of Development Have Shifted The fastest growth is now seen in high value-added services Lithuania‘s GDP, exports of goods and services real index Real GDP by economic activity in 2025 H1, comparing to 2022 H1, % (2019 = 100), % 42.1 TOP3 according to the share of value added: Man
Slide 7: Cyclical Upturn Driven by Strong Fundamentals and Lower rates
Cyclical Upturn Driven by Strong Fundamentals and Lower rates Lithuania’s credit market is among the most dynamic in the EU, fuelling cyclically sensitive sectors such as real estate, construction, and other areas supporting household consumption Interesti rates on pure new loans granted Loan portfo
Slide 8: Loan Portfolio Quality Remains Strong Amid Dynamic Credit Market
100 120 140 160 0 20 40 60 80 Romania 11 12 23.1 Ireland 20 6 25.8 Hungary 13 16 28.7 Latvia 16 14 29.8 Poland 23 12 34.7 Slovenia 21 15 35.8 Lithuania 20 16 36.1 Source: ECB, Bank of Lithuania, Eurostat, Macrobond Croatia 29 19 47.5 Czech Republic 30 18 47.8 Households Greece 17 31 47.8 Bulgaria 23
Slide 9: Lithuania Plans Record Defence Spending for 2026
Lithuania Plans Record Defence Spending for 2026 Lithuania has the fiscal space to achieve its ambitious defence targets without resorting to fiscal tightening Lithuania’s defence expenditure in EUR mn and as a share of GDP, % Defence expenditure as share of GDP and equipoment expenditure as share o
Slide 10: A Year of Multiple Tailwinds Ahead
A Year of Multiple Tailwinds Ahead Apart from lower interest rates, cyclical upturn, record inflows of EU funds and accommodative budget, Lithuania will reform its II pension pillar and ease Responsible Lending Regulations by reducing the down payment to 10% for the first home buyers Number of resid
Slide 11: Lithuanian Short-term Macroeconomic Outlook
Lithuanian Short-term Macroeconomic Outlook Lithuania's macroeconomic forecasts, % UPSIDE RISKS 2023 2024 2025F 2026F 2027F ▪ Pension reform and short-term consumption boom 12.6 ▪ Sharp increase in defence spending ▪ End of the Ukraine-russia war ▪ Stronger-than-expected appetite for LT exports 10.4
Slide 12: Q3'25 Financial Results
Q3’25 Financial Results
Slide 13: Financial Performance Highlights
Financial Performance Highlights Income Statement In €’m Q3’25 Q2’25 %∆ QoQ 9M’25 9M’24 %∆ YoY Net Interest Income 35.9 34.0 6% 104.3 121.1 (14%) Net Fee & Commission Income 7.6 7.6 1% 22.7 21.0 8% Other 10.9 9.4 15% 26.7 24.9 7% ▪ Net interest margin (NIM) stabilised, net interest income (NII) incr
Slide 14: Net Interest Income
Net Interest Income Key Highlights Net Interest Margin (NIM) Dynamics Net Interest Income YoY (€’m) ▪ Net interest income remains under Asset Yield NIM Cost of Funding pressure in a declining rate 40.4 environment 6.4% 10.3 6.0% 35.9 ▪ Asset yield is expected to remain at 5.5% 5.4% 5.2% current leve
Slide 15: Loan Portfolio
Loan Portfolio Key Highlights Loan Yields ▪ Loan book +8% YoY with main growth areas being corporate and mortgage segments Total Corporate Mortgage Consumer ▪ Overall credit demand in the country remains strong, supported by a robust 10.1% 9.9% 9.7% 9.8% macroeconomic environment 9.5% ▪ We see sligh
Slide 16: Net Fee & Commission Income
Net Fee & Commission Income Key Highlights Net Fee & Commission Income YoY (€’m) ▪ Net fees & commission income (NFCI) increased by 8% compared to the previous year ▪ Continued strong performance from the Asset Management and Renovation segments +8% ▪ Asset Management fees were supported by strong m
Slide 17: Operating Expenses
Operating Expenses1 Key Highlights Operating Expenses Development YoY (€’m) ▪ Operating expenses increased in Q3’25, primarily due to several one-off items, including the core banking system Cost to Income Ratio3 upgrade and rebranding efforts ▪ We are currently undertaking a comprehensive review of
Slide 18: Cost Cutting Initiatives (2025–2026)
Cost Cutting Initiatives (2025–2026) Driving cost efficiency through structural and strategic changes ▪ Initiating Substantial Cost Cutting Program With A Goal To Improve A Long Term Cost To Income Ratio Management Board Optimisation of Review of Changes Operational Structure Non-Core Initiatives ▪
Slide 19: Asset Quality
Asset Quality Stage 2 and Stage 3 Dynamics Key Highlights Coverage Ratio1 Late Stage NPL2 Gross Stage 3 Ratio Gross Stage 2 Ratio ▪ Strong macro environment and disciplined underwriting sustained excellent asset quality, resulting in impairment reversals this quarter 60% 72% 77% 65% 61% ▪ Stage 2 lo
Slide 20: Funding
Funding Key Highlights Funding Portfolio Breakdown (Q3’25) Cost of Funding ▪ Total cost of funding continued to decline, Due to Other Banks Cost of Deposit Portfolio Total Cost of Funding Market Funding primarily driven by lower deposit costs 3% Other 7.00% 5% ▪ Term deposits grew faster than demand
Slide 21: 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 3.29% 3.13% 3.23% ▪ RWA density remained stable at a co
Slide 22: Shareholder Returns
Shareholder Returns Buybacks Resumed Key Highlights ▪ Steadily increasing BVPS as we continue to drive long-term shareholder value Repurchased 1.2 Buyback up to 3.3 million shares million shares ▪ Received ECB buyback approval on September 23rd, after which we resumed open October 6, October October
Slide 23: Concluding Remarks
Concluding Remarks ▪ NII: Net interest margin (NIM) stabilised this quarter, lower asset yields were offset by declining Commitment to cost of funding Shareholder Value ▪ OPEX: Operating expenses are normalising, excluding one-off strategic initiative costs 50% ▪ Cost management: Strategic cost-opti
Slide 24: Investor Relations Calendar
Investor Relations Calendar November 8, 2025 Riga Investoru Klubs Conference Subscribe to Investor November 15, 2025 Vilnius Investavimas 2026 Relations Newsletter November 17-18, 2025 London GS Annual CEEMEA One-on-One Conference Click Subscribe November 27, 2025 Vilnius Financial Freedom Forum (FF
Slide 25: Business Segment Results
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Slide 26: Corporate Clients Segment Development
Corporate Clients Segment Development Key Highlights Corporate Loans1 (Q3’25) (€’m) Corporate Loans by Sectors1 (Q3’25) ▪ The corporate loan book Existing Loan Book Newly Originated Loans Other 6% Healthcare 3% expanded by +7% YoY Utilities 8% ▪ The bank continues to diversify +7% Real Estate 27% gr
Slide 27: Private Clients Segment Development
Private Clients Segment Development Key Highlights Private Loans (Q3’25) (€’m) New Mortgage Agreements (Q3’25) (€’m) ▪ Private client loans grew 13.0% YoY Consumer Financing Mortgage and 3.3% QoQ, driven by robust 86.0 domestic loan demand and strong 75.6 76.0 +13% customer sentiment 1,426 ▪ Mortgag
Slide 28: Asset Management Development
Asset Management Development Asset Management Pillar 2 AuM Development (€’m) Key Highlights ▪ Total assets under management (AuM) surpassed €1.5 billion 54 1 261 ▪ Pillar 2 pension funds recorded strong growth +5% QoQ (2) ▪ Pillar 3 pension funds recorded strong growth +9% QoQ 10 ▪ While net flows r
Slide 29: Debt Capital Markets
Debt Capital Markets Key Highlights Bonds Originated by the Bank in Primary Market (Q3’25) (€’m) ▪ Continued exceptionally strong bond issuance activity in the local market with 8 new issues Value of Bonds Issued Number of Issuances ▪ Arranged over €60m in bond financing to our clients 17.0 15.0 ▪ M
Slide 30: Appendix
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Slide 31: 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
Slide 32: Income Statement
Income Statement Q3’25 Q3’24 %∆ YoY In €'000 Interest income 55,579 63,239 (12%) Other similar income 5,739 6,921 (17%) Interest expense (25,402) (29,735) (15%) Net interest income 35,916 40,425 (11%) Fee and commission income 10,263 9,504 8% Fee and commission expense (2,658) (2,232) 19% Net fee an
Slide 33: Statement of Financial Position
Statement of Financial Position Sep’25 Sep’24 %∆ YoY In €'000 ASSETS Cash and cash equivalents 544,327 398,795 36% Securities in the trading book 246,038 221,645 11% Due from other banks 3,864 3,062 26% Derivative financial instruments 152 223 (32%) Loans to customers 3,367,546 3,100,057 9% Finance
Slide 34: Life Insurance Income Reconciliation
Life Insurance Income Reconciliation Net Interest Income In €'m Q3’25 Q3’24 %∆ Revenue related to insurance activities €3.6m Net gain from trading activities (unit-linked contacts) €4.5m Interest income 55.3 62.8 (12%) Interest income (unit-linked contracts) Interest income (unit-linked contacts) €0
Slide 35: Life Insurance Business
Life Insurance Business Life Insurance Risk Under Management (RuM) (€`m) Risk Under Management Gross Written Premium 15.0 1,701 1,745 1,766 1,614 1,685 13.0 11.0 9.0 7.0 8.1 7.6 7.8 7.2 7.5 5.0 3.0 1.0 -1.0 Q3`24 Q4`24 Q1`25 Q2`25 Q3`25 Life Insurance Asset under Management (AuM) (€`m) 164.0 155.1 1
Slide 36: Loan Portfolio Segments Performance
Loan Portfolio Segments Performance Corporate Lending – Portfolio1 Mortgage – Portfolio Consumer Financing – Portfolio mEUR Portfolio Yield (ytd) mEUR Portfolio Yield (ytd) mEUR Portfolio Yield (ytd) 6.0%5.9% 7.0% 5.8% 5.8% 2 000 7.1%7.2% 7.5% 1 000 5.6% 6% 7.1% 6.8% 380 10.1% 10.1% 10% 1 900 6.6% 5
Slide 37: Robust Loan Portfolio
Robust Loan Portfolio Low LTV Ratios Remains Relatively Stable Loan Book Concentration1 44% 44% 44% 43% 43% Top 10 44% 6% Top 11-30 43% 43% 7% 42% 41% Top 31-50 4% Loan portfolio LTV Mortgage loans LTV 34% 33% 33% Loans secured by commercial 32% real estate LTV Other 30% 83% 3Q`24 4Q`24 1Q`25 2Q`25
Slide 38: 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 (Sep-25) CRE Split by Region (Sep-25) Siauliai 13% Other CRE 25% Office 29% Klaipeda 18% Vilnius 46% Warehouse 3% Shopping Cente
Slide 39: Sticky Local Deposits
Sticky Local Deposits Deposits Development Top 10 Depositors1 Term Deposits with Auto-Rollover (Sep-25) 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
Slide 40: Solid Liquidity Position
Solid Liquidity Position Securities Portfolio (Sep-25) Securities Portfolio (Sep-25) By Security Type, Bank-only By Accounting Method, Bank-only Corporate Bonds 4% Fair Value Trading Book 4% 2% Government Bonds Amortised Cost 96% 94% Liquid Assets (€’m) Strong Liquidity Position (Sep-25) Group Figur
Slide 41: Capital Ratios and Requirements
Capital Ratios and Requirements CET1 Ratio T1 Ratio Total Capital Ratio MREL Subordinated MREL Surplus 3.29% 3.13% 3.23% 2.51% 15.53% 43.37% MB Other EL 0.39% 21.86% 21.51% 27.84% 21.51% 19.00% T2 Capital MB 0.78% 18.77% 18.28% 2.74% 16.95% AT1 capital AT1 capital 15.64% 1.82% MB (including 1.82% P2
Slide 42: Artea Market Share in Lithuania
Artea Market Share in Lithuania Loan Portfolio Market(1) Corporate Lending(1) 21.1% 23.6% 23.2% 25.2% SEB SEB Swedbank Swedbank Luminor Luminor 10.8% Artea Artea 14.2% Others Others 14.2% 30.3% 27.5% 9.9% Mortgage(1) Deposits(1) 16.2% 26.2% 8.1% 10.6% 29.7% SEB Swedbank SEB Swedbank Artea Luminor Ar
Slide 43: Artea Market Share Development
Artea Market Share Development Loan Portfolio Market(1) Corporate Lending(1) Artea Swedbank SEB Luminor Other Artea Swedbank SEB Luminor Other 30.6% 30.2% 30.6% 30.4% 30.3% 30.3% 27.6% 28.1% 28.0% 27.7% 27.5% 27.0% 24.0% 24.1% 23.8% 23.5% 23.6% 23.6% 25.2% 25.2% 24.8% 24.8% 25.2% 25.8% 19.7% 20.2% 1
Slide 44: Lithuania – Sound Fundamentals and Solid Growth
Lithuania – Sound Fundamentals and Solid Growth Key Facts (2024) Membership in prominent POPULATION 2.9 million organisations of economic integration and security (EU, NATO, OECD) NOMINAL GDP €78 billion CREDIT RATINGS1 A2 / A / A Competitive, Western-oriented economic growth model GDP/CAPITA IN PPS
Slide 45: Lithuania's Economy: Structure
Lithuania’s Economy: Structure Gross Value Added By Industry Lithuanian Origin Export Structure By Country (1H’25) Other, 13% Germany, 10% Manufacturing, 15% Agriculture, 3% Poland, 9% Financial Activities, 5% Human Health and Social, 5% Trade, 16% Other, 43% Netherlands, 9% Education, 5% Latvia, 8%
Slide 46: 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 140 190 90 135 180 130 170 85 125 160 120 150 80 115 140 130
Slide 47: 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 Tier 1 Capital % Q3'21 Q3'21 Q4'21 Q4'21 EU EU Q1'22 Q1'22 Q2'22 Q2'22 Q3'22 Q3'22 Loan to Deposit Ratio % Q4'22 LT LT Q
Slide 48: 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 48
Slide 49: Group Shareholder Structure
Group Shareholder Structure Shareholder Structure (Sep’25) Number of Shareholders 20,511 19,087 Other Domestic 18,524 18,774 19.9% Investors 32.8% 16,573 9.1% 7.4% 5.4% 19.9% 5.5% Other Foreign Algirdas Butkus Investors (One of the Founders) 9,053 Leading Baltic alternative asset manager established
Slide 50: Broker Coverage Highlights Strong Upside Potential
Broker Coverage Highlights Strong Upside Potential Analyst Assessments Imply Average Upside of 30% 12M Target Price Implied Upside(1) Current Share Price +50% +44% +34% +25% +21% +20% +19% 1.4 € 1.20 € 1.15 1.2 € 1.07 € 1.00 € 0.96 € 0.96 € 0.95 1 0.8 0.6 0.4 0.2 0 IPOPEMA Signet Enlight Research Sw
Slide 51: Successful Issuance of €300 million 4NC3 Senior Preferred Notes
Successful Issuance of €300 million 4NC3 Senior Preferred Notes €300m 4NC3 SP - 2025 Transaction Highlights Summary Term Sheet ▪ Artea Bank successfully returned to the senior bond market with a new Pricing Date: 30 September 2025 €300mn 4NC3 Senior Preferred, marking its second transaction in 2025
Slide 52: 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 Jul 10, 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, 202
Slide 53: 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
Slide 54: 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
Slide 55: 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