Ab Artea Bankas · OMXVSE:ROE1L
Ab Artea Bankas — Artea Bank — Q2 2025 Earnings Presentation
42 slides from Ab Artea Bankas's earnings presentation, Jul 30, 2025
Slide 1: Artea Bank Q2'25 and H1'25 Financial Results
Artea Bank Q2’25 and H1’25 Financial Results July 30, 2025
Slide 2: Šiaulių Bankas Rebranded as Artea
Šiaulių Bankas Rebranded as Artea Key Highlights ▪ The bank evolved from a regional bank to a national bank, The bank for all of Lithuania prompting the need for rebranding ▪ Branch network rebranding has been successfully completed ▪ Website and mobile application rebranding were completed Emphasis
Slide 3: Key Financial and Strategic Highlights
Key Financial and Strategic Highlights ▪ Rebranding: Our new brand, Artea, has been very well received by clients and investors, H1 2025 strengthening brand loyalty and market position ▪ Core banking system: Cloud-based upgrade is tracking on schedule and within budget, Net Profit Adj. Net Profit po
Slide 4: Core Banking System Change Project is On Track and Within Budget
Core Banking System Change Project is On Track and Within Budget Partner Integration Key Highlights Improved Data Driven ▪ Discovery phase was completed on time with limited scope expansion Customer Decision Making Experience ▪ Core banking system testing has begun, validating functionality and inte
Slide 5: Regulatory Changes in Lithuania (2025–2026)
Regulatory Changes in Lithuania (2025–2026) Investment Environment Mortgage Market Lithuanian ISA (Individual Investment Account) Mortgage Refinancing Reform ▪ Effective: From January 1, 2025 ▪ Effective: February 2025 ▪ Details: ▪ Details: • Residents can invest via a tax-deferred account • Make mo
Slide 6: Q2'25 and H1'25 Financial Results
Q2’25 and H1’25 Financial Results
Slide 7: Financial Performance Highlights
Financial Performance Highlights Income Statement In €’m Q2’25 Q1’25 %∆ QoQ H1’25 H1’24 %∆ YoY Net Interest Income 34.0 34.4 (1%) 68.4 80.6 (15%) ▪ Despite pressure on net interest income from a Net Fee & Commission Income 7.6 7.6 (0%) 15.1 13.7 10% declining rate environment, proactive funding Othe
Slide 8: Net Interest Income
Net Interest Income Key Highlights Net Interest Margin (NIM) Dynamics Net Interest Income YoY (€’m) Asset Yield NIM Cost of Funding 80.6 ▪ Net interest income remains under pressure in a declining rate 68.4 20.4 environment 6.5% 6.4% 6.0% 14.5 ▪ We are actively managing our cost 5.5% 5.4% 11.9 of fu
Slide 9: Loan Portfolio
Loan Portfolio Key Highlights Loan Yields ▪ Loan book +15% YoY with main growth areas being corporate and mortgage segments Total Corporate Mortgage Consumer ▪ We see slight decline in asset yields on the back of interest rate decline 10.1% 9.9% 9.7% 9.5% o Corporate: Increased competition is puttin
Slide 10: Net Fee & Commission Income
Net Fee & Commission Income Key Highlights Net Fee & Commission Income YoY (€’m) ▪ Net fees & commission income (NFCI) increased by 10% compared to the previous year ▪ Continued strong performance from the Asset Management and Renovation segments +10% ▪ Asset Management fees were supported by strong
Slide 11: Operating Expenses
Operating Expenses(1) Key Highlights Operating Expenses Development YoY (€’m) ▪ Operating expenses increased in Q2’25, primarily due to higher salary costs and several one-off items, including the Cost to Income Ratio3 core banking system upgrade and rebranding efforts ▪ We are currently undertaking
Slide 12: Asset Quality
Asset Quality Key Highlights Stage 2 and Stage 3 Dynamics ▪ In Q2 2025, the increase in NPLs was primarily driven by the reclassification of a single Gross Stage 3 Ratio Gross Stage 2 Ratio Coverage Ratio loan (adequately collateralized) from Stage 2 to Stage 3 ▪ Overall we remain comfortable with o
Slide 13: Funding
Funding Key Highlights Funding Portfolio Breakdown (Q2’25) Cost of Funding ▪ Cost of funding is decreasing in declining Due to Other Banks Cost of Deposit Portfolio Total Cost of Funding interest rate environment 3% Other 5% 2.90% ▪ We are seeing a rotation from term deposits 2.61% 2.70% Debt 2.50%
Slide 14: 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 3.93% 3.78% 3.89% ▪ RWA density remained stable at a co
Slide 15: Shareholder Value Creation
Shareholder Value Creation Consistent BVPS Growth With Share Price Yet to Reflect Fair Valuation Key Highlights BVPS Share Price ▪ Steadily increasing BVPS as we continue to drive long-term shareholder value 0.94 0.87 0.89 0.87 ▪ Expecting to receive ECB buyback approval in August, after which we pl
Slide 16: Concluding Remarks
Concluding Remarks ▪ Strategic initiatives: Our key strategic and organic growth initiatives are progressing on Commitment to schedule and within budget, providing a solid foundation for future value creation Shareholder Value ▪ Loan growth and NII: Loan growth rebounded strongly in Q2 after a seaso
Slide 17: Investor Relations Calendar
Investor Relations Calendar Subscribe to Investor September 17, 2025 Sevilla ECBC Covered Bond Conference Relations Newsletter September 17, 2025 Tallinn Enlight Baltic Conference Click Subscribe November 17-18, 2025 London GS Annual CEEMEA One-on-One Conference Subscribe or Scan November 27, 2025 R
Slide 18: Business Segment Results
Business Segment Results
Slide 19: Organisational Structure and Reporting Segments
Organisational Structure and Reporting Segments Corporate Clients Private Clients Investment Clients ▪ Comprehensive daily banking solutions for ▪ Daily banking – Comprehensive financial ▪ Asset management business – among the corporate clients solutions including current accounts, strongest in the
Slide 20: Corporate Clients Segment Development
Corporate Clients Segment Development Key Highlights Corporate Loans1 (Q2’25) (€’m) Corporate Loans by Sectors1 (Q2’25) ▪ The corporate loan book Newly Originated Loans Other 5% Healthcare 3% expanded by 17% YoY Utilities 6% ▪ We have seen particularly +17% Hospitality 5% Real Estate 28% strong quar
Slide 21: Private Clients Segment Development
Private Clients Segment Development Key Highlights Private Loans (Q2’25) (€’m) New Mortgage Agreements (Q2’25) (€’m) ▪ The private clients loan book Consumer Financing Mortgage expanded by 16% YoY 86.0 75.6 76.0 ▪ Mortgage portfolio had an +16% 72.0 outstanding growth of €86 1,381 million this quart
Slide 22: Investment Clients Segment Development
Investment Clients Segment Development Key Highlights Life Insurance (€’m) ▪ Our Index Plus investment strategy allocating a portion of funds to private debt, real estate, and other private assets has helped reduce volatility during turbulent periods Life Insurance Risk Under Management (RuM) (€`m)
Slide 23: Investment Clients Segment Development
Investment Clients Segment Development Bonds Originated by the Bank in Primary Market (Q2’25) (€’m) Key Highlights ▪ Another strong quarter with 8 new bond issuances worth €67 million Value of Bonds Issued Number of Issuances ▪ Asset under custody growing steadily and approaching €2 billion 92 17.0
Slide 24: Renovation Financing
Renovation Financing Total Interest and Commission Income (€’m) Key Highlights Interest Income Comission Income ▪ We continue to experience steady growth in our contracted volumes ▪ Interest income has slowed due to declining interest rates; however, commission income 4.9 5.1 5.1 4.9 4.6 continues t
Slide 25: Appendix
Appendix
Slide 26: Income Statement
Income Statement Q2’25 Q2’24 %∆ YoY In €'000 Interest income 47,826 61,106 (22%) Other similar income 13,164 7,087 86% Interest expense (26,986) (27,143) (1%) Net interest income 34,003 41,050 (17%) Fee and commission income 9,973 9,430 6% Fee and commission expense (2,419) (2,176) 11% Net fee and c
Slide 27: Statement of Financial Position
Statement of Financial Position Jun’25 Jun’24 %∆ YoY In €'000 ASSETS Cash and cash equivalents 575,315 675,846 (15%) Securities in the trading book 230,588 218,793 5% Due from other banks 2,614 3,354 (22%) Derivative financial instruments 263 856 (69%) Loans to customers 3,329,700 2,874,480 16% Fina
Slide 28: Life Insurance Income Reconciliation
Life Insurance Income Reconciliation Net Interest Income In €'m Q2’25 Q2’24 %∆ Revenue related to insurance activities €3.5m Net gain from trading activities (unit-linked contacts) €2.3m Interest income 47.6 60.6 (22%) Interest income (unit-linked contracts) Interest income (unit-linked contacts) €0
Slide 29: Robust Loan Portfolio
Robust Loan Portfolio Low LTV Ratios Remains Relatively Stable Top Loans Concentration1 47% 44% 44% 43% 43% 44% 43% 43% Loan portfolio LTV 42% 41% Mortgage loans LTV 33% Loans secured by commercial 26% 34% real estate LTV 33% 32% 31% 13% 30% 2Q`24 3Q`24 4Q`24 1Q`25 2Q`25 Top 10 Top 30 Top 50 Loan Po
Slide 30: 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 (Q2’25) CRE Split by Region (Q2’25) Siauliai 13% Shopping Centers 18% Other CRE 22% Klaipeda 17% Public Gyms 5% Vilnius 48% Rese
Slide 31: 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 32: Sticky Local Deposits
Sticky Local Deposits Share of Insured Deposits Top 10 Depositors1 Term Deposits with Auto-Rollover (Jun-25) % of Total Deposits % of Total Deposits 67% 12% 28% 66% 10% 65% 8% Term deposit Auto- Rollover 64% 6% 63% 4% Term deposit w/o 62% 2% Auto-Rollover 72% 61% 0% Term Deposits by Maturity (€’m) (
Slide 33: Solid Liquidity Position
Solid Liquidity Position Securities Portfolio (Q2’25) Securities Portfolio (Q2’25) By Security Type, Bank-only By Accounting Method, Bank-only Corporate Bonds Fair Value Trading Book 6% 5% 2% Government Bonds Amortised Cost 94% 93% Liquid Assets (€’m) Strong Liquidity Position (Q2’25) Group Figures
Slide 34: Capital Ratios and Requirements
Capital Ratios and Requirements CET1 Ratio T1 Ratio Total Capital Ratio MREL Subordinated MREL Surplus 3.93% 3.78% 3.89% 3.17% 16.48% 44.32% MB Other EL 0.39% 22.15% 22.17% 27.84% 22.17% 19.00% 19.42% T2 Capital MB 0.78% 18.28% 2.75% 17.59% AT1 capital AT1 capital 1.83% 1.83% 15.64% MB (including P2
Slide 35: Group Shareholder Structure
Group Shareholder Structure Shareholder Structure (Jun’25) Number of Shareholders 20,357 19,087 Other Domestic 18,524 18,774 19.6% Investors 33.8% 16,573 9.0% 7.3% 5.3% 19.4% 5.4% Other Foreign Algirdas Butkus Investors (One of the Founders) 9,053 Listed Baltic asset management group established in
Slide 36: Artea Market Share in Lithuania
Artea Market Share in Lithuania Loan Portfolio Market(1) Corporate Lending(1) 20.9% 23.6% 22.7% 24.8% SEB SEB Swedbank Swedbank Luminor Luminor 10.8% Artea Artea 14.4% Others Others 14.4% 30.3% 27.7% 10.4% Mortgage(1) Consumer Financing(1) 50.2% 26.3% 29.8% SEB Non-banking lending Swedbank P2P and C
Slide 37: Recent Trends and Macroeconomic Outlook
Recent Trends and Macroeconomic Outlook GDP to Grow 2.7% in 2025, Though Political Risks Persist Lithuania's macroeconomic forecasts, % ▪ Lithuania’s economy began 2025 on a high note, recording the most F F F 2023 2024 2025P 2026P 2027P robust GDP performance in the EU 12.6 ▪ Overall economic activ
Slide 38: Broker Coverage Highlights Strong Upside Potential
Broker Coverage Highlights Strong Upside Potential Analyst Assessments Imply Average Upside of 31% 12M Target Price Implied Upside(1) Current Share Price 1.6 +54% +45% +34% +33% +17% +16% +16% 1.4 € 1.27 € 1.20 1.2 € 1.11 € 1.10 € 0.97 € 0.96 € 0.96 1 0.8 0.6 0.4 0.2 0 Signet IPOPEMA Enlight Researc
Slide 39: Debt Securities in Issue
Debt Securities in Issue Type ISIN Code Volume of Issue Interest rate Maturity Issue date Currency 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 Oct 17, 2024 EUR Senior Preferred XS2887816564 300,000,000 4.85% Dec 5, 2028
Slide 40: Management Board
Management Board Artea Bankas: Artea Bankas: Vytautas Sinius 12 years Daiva Šorienė 25 years ▪ Chief Executive Officer ▪ Head of Corporate Clients Financial Industry: Financial Industry: ▪ Chairman of the Management Board 25 years ▪ Deputy Chief Executive Officer 30 years Artea Bankas: Artea Bankas:
Slide 41: 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 42: 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