Addiko Bank Ag · VIE:ADKO
Addiko Bank — H1 2025 Earnings Presentation
52 slides from Addiko Bank's earnings presentation, Aug 13, 2025
Slide 1: 1H25 Results Presentation
1H25 Results Presentation Herbert Juranek (CEO) Edgar Flaggl (CFO) Tadej Krašovec (CRO) Ganesh Krishnamoorthi (CMO & CIO) Sara Zezelic (Investor Relations) 13 August 2025
Slide 2: Executive Summary & Business Update
Executive Summary & Business Update Financials & Risk Update Outlook & Wrap-Up Additional Materials
Slide 3: Key Highlights 1H25
Key Highlights 1H25 • 1H25 net profit at €24.0m (-6% vs 1H24’s €25.5m) 2Q25 at €9.5m (1Q25: €14.5m) • Return on average Tangible Equity at 5.8% (1H24: 6.6%), earnings per share €1.25 Earnings • Operating result slightly decreased YoY to €51.6m (1H24: €54.0m) due to significantly lower & rate environ
Slide 4: Outlook 2025 adjusted – Guidance 2026 under review
Outlook 2025 adjusted – Guidance 2026 under review Income & Business Risk & Liquidity Profitability >6% i Loan Growth1 i CoR3 ca.1.3% RoATE5 >4.5% Outlook CAGR 2024-2026 2025 NIM2 >3.6% NPE Ratio4 <3% DPS6 ca. 50% of net as guiding principle profit adjusted >18.35% subject NBI2 Flat i TCR to yearly
Slide 5: Portfolio Development
Portfolio Development Focus portfolio development Gross performing loans (€m) • Total book (gross performing loans) up 2% Total Book 3,486 3,547 3,506 3,579 since YE24 (up 1% YoY) • +4% YoY growth in focus book (+5% YoY YoY excluding medium SME) +4% +4% • New business generation up 11% YoY 3,134
Slide 6: Progress in Business with Consumer & SME Customers in CSEE
Progress in Business with Consumer & SME Customers in CSEE Business Update Improving dynamics YoY €m, YTD YoY • Solid new business delivered (+15% YoY) with 880 +11% premium pricing (7.3%) 791 61 52 +17% • NCI growth (+8.5% YoY driven by bancassurance, 328 • accounts & packages and cards) 311
Slide 7: Financials & Risk Update
Executive Summary & Business Update Financials & Risk Update Outlook & Wrap-Up Additional Materials
Slide 8: Financial Performance 1H25 at a Glance
Financial Performance 1H25 at a Glance Financial Performance 1H25 2Q24 3Q24 4Q24 1Q25 2Q25 YTD, €m 80.5 7.00% 79.3 79.4 76.9 78.1 1H24 YoY 6.00% 18.4 18.3 19.4 19.1 NCI 18.2 Netinterest Net interest income income 117.8 120.6 -2.4% 5.00% 3.97% 3.93% 3.84% Net fee Net fee & & commission NIM 3.70% 3.69
Slide 9: Capital Position Remains Strong
Capital Position Remains Strong Capital development % CET1/TCR, YTD, RWA in €m Addiko Group 3,671 3,770 3,865 RWA 0.11% 0.11% 0.58% 0.14% 0.01% 0.54% 22.0% 21.7% CET1/ 21.3% TCR 1 1 2024 2024 OCI OCI Reg. Reg.&& Equity Equity RWA RWA 1Q25 1Q25 OCI OCI Reg. Reg. & Equity & Equity RWA RWA 1H25 1H25 ch
Slide 10: Balanced NPE Development Continues in 1H25
Balanced NPE Development Continues in 1H25 NPE volume1 & ratio development Quarterly NPE formation & exit €m, YTD €m, QTD 3Q24 4Q24 1Q25 2Q25 NPE ratio 3.3% 2.8% 2.9% (on-balance loans)2 2.9% 3.0% Formation 21.6 36.7 19.5 25.7 NPE ratio (GE based)3 2.4% 2.0% 2.0% 2.1% 2.0% 0.9 +2% 22.1 0.5 0.8 0.9 1
Slide 11: Cost of Risk at a Glance
Cost of Risk at a Glance Expected credit loss expenses on financial assets 1H25 YTD, €m, positive number for release • 1H25 expected credit loss 3.3 0.1 expenses of €14.4m Impairments (negative) resulting in (10.1) Releases (positive) -0.40% cost of risk (on net (14.4) loans): (14.3) (7.5) − Consume
Slide 12: Outlook & Wrap-Up
Executive Summary & Business Update Financials & Risk Update Outlook & Wrap-Up Additional Materials
Slide 13: Romania update
Romania update Objective: Validate digital lending, risk engine, and marketing effectiveness 1H25 • 1Q25 launch of Digital E2E loans functioning smoothly • Digital Point of Sale (POS) solution with partner drives growth Launch • Risk engines optimized using Romania POS insights Digital Lending • Ris
Slide 14: Adjusted Outlook 2025 and Wrap-Up
Adjusted Outlook 2025 and Wrap-Up Income & Business Risk & Liquidity Profitability Loan Growth1 >6% CAGR 2024-2026 CoR3 c.1.3% RoATE5 >4.5% Outlook prev. >7% prev. c. 6% 2025 NIM2 >3.6% NPE Ratio4 <3% DPS6 ca. 50% of net as guiding principle profit adjusted NBI2 Flat TCR >18.35% subject prev. c. 2%
Slide 15: Additional Materials
Executive Summary & Business Update Financials & Risk Update Outlook & Wrap-Up Additional Materials
Slide 16: Management Team
Management Team Herbert Juranek Edgar Flaggl Tadej Krašovec Ganesh Krishnamoorthi Chief Executive Officer Chief Financial Officer Chief Risk Officer Chief Market, IT & Digitalisation Officer Chair of the Management Board Member of the Management Board Member of the Management Board Member of the Man
Slide 17: Addiko at a Glance
Addiko at a Glance Overview of Addiko Operating as one region - one bank 1H25, % of Group Assets (rounded) ✓ Fully licensed bank with HQ in Austria, focused 100% on Central ✓ and South-Eastern Europe ✓ Addiko Bank AG is regulated by the Austrian Financial Market Austria ✓ (5%2) Authority (“FMA”)1 an
Slide 18: Current Shareholder Structure
Current Shareholder Structure S-Quad Handels- und Beteiligungs GmbH (Austria) 9.99% Gorenjska Banka (Slovenia), AIK Banka (Serbia) - AikGroup (CY) Ltd. Alta Group d.o.o. (Serbia) 9.69% 36.68% European Bank for Reconstruction and Development (EBRD) Dr. Jelitzka + Partner (Austria) 9.63% - Dr. Jelitzk
Slide 19: Key Macroeconomic Assumptions
Key Macroeconomic Assumptions GDP forecasts (%, real growth) Previous Forecast 2025E 2026E 2027E Δ 2024 Base Base Base 2025 Slovenia 1.6% 1.8% 2.3% 2.4% -0.4% Croatia 3.9% 2.8% 2.8% 2.7% +0.1% Serbia 3.9% 3.0% 4.0% 4.0% -0.6% Bosnia & 2.5% 2.4% 2.8% 3.2% -0.5% Herzegovina Montenegro 3.0% 3.4% 3.3% 3
Slide 20: Addiko’s Sustainable Goals Align with ESRS framework
Addiko’s Sustainable Goals Align with ESRS framework ESG in Addiko - It is the little things that count Making ESG work through Vision Carbon footprint reduction Committed to the good good governance Addiko helps its employees Sound principles of Mission Addiko supports social and customers to becom
Slide 21: Balance Sheet Composition
Balance Sheet Composition Assets Liabilities and Equity YTD 1H25, €b YTD 1H25, €b 6.4 6.4 Other 0.2 0.2 Liabilities 0.1 ✓• Liquid balance sheet Other Assets Due to Credit ✓• Strong deposit base 0.5 Institutions - LCR ratio: 403% (YE24: 363%) Direct - Loan/deposit ratio Deposits (customer): 68.3% (YE
Slide 22: Addiko Story Well Positioned for Strong Growth in Mid-Term
Addiko Story Well Positioned for Strong Growth in Mid-Term • We will turn Addiko into leading CSEE specialist bank for Consumer & SME customers Vision • We are focused and offer the best digital products to challenge universal banks • We will accelerate the bank’s transformation and generate value f
Slide 23: Development of Growth in Focus Areas Consumer & SME
Development of Growth in Focus Areas Consumer & SME Gross performing loans in focus segments Gross yield by segment1 Gross loans of focus segments as % of total gross performing loans 1H25 YTD QTD QTD Full year 2Q25 1Q25 2024 yield yield yield Consumer 7.3% 7.3% 7.4% 7.4% % in focus 40% 51% 56% 62%
Slide 24: Consumer and SME Lending Development
Consumer and SME Lending Development Consumer (Micro shifted to SME as of 1Q21) SME €m, YTD €m, YTD 1,962 1,877 1,919 1,803 1,846 1,706 1,752 1,535 1,342 1,312 1,389 1,310 1,322 1,332 1,301 1,261 1,266 1,286 1,188 1,188 1,059 1,040 1,057 928 Gross Performing Loans 2018 2019 2020 2021 2022 2023 1Q24
Slide 25: New Business on a Monthly Basis
New Business on a Monthly Basis New business during 1H25 €m 1H25YTD: 491 86 91 85 85 80 73 76 77 74 76 78 69 67 69 66 70 63 Consumer 57 0 0 0 0 0 0 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. 1H25YTD: 389 80 72 71 68 63 64 61 64 64 63 64 SME 54 58 57 49 53 48 40 0 0 0 0 0 0 Jan. Feb.
Slide 26: Growth in Consumer Lending Slowly Returning
Growth in Consumer Lending Slowly Returning Addiko market share – unsecured consumer loans (stock outstanding, 1H25)1,2 Bosnia & Serbia Croatia Slovenia Montenegro Herzegovina Market Size, 9.3 12.8 5.3 5.2 1.4 €b Market • Overall, Consumer lending Growth +12.8% +11.8% +8.0% +7.4% +18.9% market size
Slide 27: Digital Transformation
Digital Transformation Digital capabilities YTD +7% YoY Registered Mobile Banking 53 79 118 150 188 230 258 291 305 314 328 Users (ths.) +6% YoY 335 323 315 301 273 246 210 177 149 115 Digital Users (ths.) 94 2016 2017 2018 2019 2020 2021 2022 2023 1H24 2024 1H25 ADDIKO BANK AG 13 AUGUST 2025 | 27
Slide 28: Financials: Financial Performance 1H25 in Detail
Financials: Financial Performance 1H25 in Detail Key financials P&L in €m YTD QTD •1 Operating result down 4.4% YoY to €51.6m: 1H25 (YTD) 1H24 (YTD) +/- PY 2Q25 (QTD) 1Q25 (QTD) +/- PQ Net interest income 117.8 120.6 -2.4% 59.1 58.7 0.6% − Net interest income down 2.4% YoY with Net fee and commissio
Slide 29: Financials: Key Performance Drivers 1H25
Financials: Key Performance Drivers 1H25 Net interest income Net fee and commission income €m €m NIM 395bp 371bp 397bp 370bp 369bp % of 29% 32% 30% 31% 32% NII -2.4% -2.9% +3.4% +0.6% 120.6 117.8 +5.6% +4.7% 60.8 58.7 59.1 35.3 37.3 18.4 18.2 19.1 1H24 (YTD) 1H25 (YTD) 2Q24 (QTD) 1Q25 (QTD) 2Q25 (QT
Slide 30: Financials: Interest Income Dynamics
Financials: Interest Income Dynamics Interest income by quarter1 Gross yield by quarter2 €m 78.1 78.2 78.6 75.7 74.5 2Q24 3Q24 4Q24 1Q25 2Q25 Other 7.4% 7.4% 7.4% 7.4% 7.3% 21.2 20.5 21.4 20.2 18.8 Consumer Public & 8.0% 8.0% 7.8% 7.2% 7.3% new new new new new Large 1.1 business business business bu
Slide 31: Financials: Breakdown of Other Interest Income
Financials: Breakdown of Other Interest Income Treasury interest income by quarter €m Other interest 21.2 20.5 21.4 20.2 18.8 income (total) • HTC bond portfolio strategy: interest income from the instruments 17.8 17.9 held under the Hold-to-Collect (HTC) bond portfolio strategy in EU 17.3 17.1 enti
Slide 32: Plain Vanilla Investment Portfolio
Plain Vanilla Investment Portfolio Evolution of Investment Portfolio1 Key highlights €m 1.465 1.501 23 22 98 Equity 113 10 • Investment portfolio at €1.5b as of 1H25: 1.179 10 Corporations 19 56% of the portfolio are in securities in HTC Credit 114 12 book and 44% in securities measured at FVTOCI In
Slide 33: Financials: Interest Expense Dynamics
Financials: Interest Expense Dynamics Interest expense by quarter Cost of funding by quarter1 €m 17.3 17.5 17.1 17.0 2Q24 3Q24 4Q24 1Q25 2Q25 2.2 15.5 2.8 2.1 2.2 Deposits – Treasury 0.8 0.83% 0.86% 0.87% 0.85% 0.78% 0.9 0.7 1.9 Network Deposits – 1.1 Credit 0.8 4.4 4.2 Direct Institutions 4.3 4.1 3
Slide 34: Financials: Perspective on Interest Rate Sensitivity
Financials: Perspective on Interest Rate Sensitivity Estimated impact on NII and NIM for parallel interest rate shifts Interest binding structure of customer deposits €m, calculated based on 1H25 balance sheet % of customer deposits, calculated based on 1H25 balance sheet -25bps -50 bps -75 bps Shif
Slide 35: Financials: Commission Income Dynamics
Financials: Commission Income Dynamics Net fee and commission income by quarter Key highlights €m 19.4 19.1 • Net fee and commission income 2Q25 up €0.9m vs 18.4 18.3 18.2 0.6 0.9 1Q25 mainly due to higher income from Non-Focus 0.6 0.5 0.7 bancassurance as well as FX/DCC and Other • Other products:
Slide 36: Financials: Other Income & Other Result
Financials: Other Income & Other Result Other income breakdown (YTD) €m Higher deposit guarantee fees primarily due to front 1H25 1H24 1 loading and higher contribution in Slovenia with 1H24 1 Deposit guarantee -4.2 -2.5 positively influenced by accrual releases in Croatia 2 Bank levies and other ta
Slide 37: Financials: Development of General Administrative Expenses (OPEX)
Financials: Development of General Administrative Expenses (OPEX) OPEX development by quarter Other Administrative expenses €m 1H25 YTD, €m Other1 4.2 12% 4.2 Advertising 12% Total: 17.2 2.2 €34.1m 51% IT 50.4 49.3 49.0 7% 48.4 Legal & Advisory 4.2 46.1 6.3 Depreciation 4.3 4.5 18% 4.5 and 4.2 Amort
Slide 38: Financials: Balance Sheet
Financials: Balance Sheet Detailed balance sheet overview (YTD) €m 2021 2022 2023 2024 1H25 Cash reserves 1,361.7 1,382.9 1,254.5 1,251.4 1,058.8 Investment Portfolio 1,044.8 1,084.4 1,208.1 1,479.1 1,512.8 Financial assets held for trading 32.6 22.8 29.5 14.4 11.6 Investment securities 1,012.2 1,06
Slide 39: Financials: Income Statement
Financials: Income Statement Detailed income statement overview (YTD) €m 2021 2022 2023 2024 1H24 1H25 Interest income 187.7 195.1 277.0 311.1 154.3 150.3 Interest expense (18.2) (18.7) (49.0) (68.3) (33.7) (32.5) Net interest income 169.5 176.4 228.0 242.9 120.6 117.8 Fee and commission income 84.3
Slide 40: Financials: Breakdown by Entity
Financials: Breakdown by Entity 1H25 YTD Addiko Bank d.d., Addiko Bank d.d., Addiko Bank d.d., Addiko Bank a.d., Addiko Bank a.d., Addiko Bank A.D., (€m, IFRS) Zagreb Ljubljana Banja Luka Sarajevo Beograd Podgorica Net interest income 38.4 28.8 11.5 11.6 21.7 6.3 Net commission income 11.9 8.5 5.1 4
Slide 41: Risk: Strong Risk Management Framework
Risk: Strong Risk Management Framework Non-performing loan portfolio (YTD) NPE Volumes, €m NPE Coverage 244 194 163 138 146 137 141 145 147 143 Ratio1 (Ex-Collateral) 73.6% 71.9% 75.4% 80.9% 81.4% 80.7% 80.8% 80.0% 80.9% 80.8% NPE Ratio (on-balance loans)2 4.7% 4.0% 3.3% 2.9% 2.9% 2.9% 3.0% 2.9% 2.8
Slide 42: Risk: Robust Asset Quality in Portfolios
Risk: Robust Asset Quality in Portfolios Focus Non-Focus Consumer SME €m, rounded €m, rounded €m, rounded 2,207 2,165 2,117 50 > 90 2,082 55 > 90 50 77 days 48 87 1,913 1,885 days 71 61-90 1,851 83 41 1,835 days 44 40 61-90 31 46 47 days 36 43 31-60 31-60 days days < 30 < 30 days days > 90 days 2,06
Slide 43: Risk: Provision Coverage Evolution
Risk: Provision Coverage Evolution Stage 1, 2 and 3 assets1 Business segments: Stage 1 & 2 (Performing) coverage1 €m 1H25 (YTD) ECL coverage (YTD) By Segment 3Q24 1H24 1Q24 1H25 4,521 4,509 4,481 4,495 4,537 137 141 145 147 143 Focus Focus 1.3% 1.5% 1.4% 1.4% 1.3% 351 335 334 523 531 Consumer 1.5% 1
Slide 44: Risk: NPE Formation and Exit Dynamics
Risk: NPE Formation and Exit Dynamics Quarterly NPE formation & exit - group level Consumer SME Mortgages Large Corporates Public Finance €m €m €m €m €m Net +3.3 +2.4 +5.5 -4.9 +2.6 +6.5 -1.4 +1.5 -0.8 -4.3 -0.4 -0.7 -0.6 -0.4 -0.5 -0.4 -0.3 -0.2 -0.8 -0.1 22.1 13.3 13.7 13.3 12.6 12.7 0.8 0.0 0.0 0
Slide 45: Risk: Low NPE Concentration, Well Provisioned and Carefully Managed
Risk: Low NPE Concentration, Well Provisioned and Carefully Managed Overview of Top 10 NPEs 1H25 Group of Borrowers, €m Borrower Total Exposure Country Description Metal industry and mechanical NPE 1 7.7 Croatia engineering Coverage for Top 10 NPEs NPE 2 5.6 Slovenia Service Coverage 78.3% 58.0% 136
Slide 46: Risk: NPE and Cost of Risk Development
Risk: NPE and Cost of Risk Development Focus Non-Focus3 €m Consumer SME €m €m NPE Coverage Ratio (Excl. 80.8% 80.8% 81.5% 81.5% 81.8% 78.3% 77.6% 79.6% 79.9% 84.0% 80.8% 81.7% Collateral)1 5.4% 5.5% 5.0% 4.4% NPE Ratio2 3.0% 3.0% 3.2% 3.1% 2.9% 2.8% 2.3% 2.3% 2023 1H24 2024 1H25 2023 1H24 2024 1H25
Slide 47: Risk: NPE and Cost of Risk Development by Business Segment
Risk: NPE and Cost of Risk Development by Business Segment Consumer SME Mortgages Large Corporates Public Finance €m €m €m €m €m NPE Coverage Ratio1 80.8% 81.5% 81.5% 81.8% 77.6% 79.6% 82.0% 80.2% 80.4% 78.1% 84.1% 85.4% 73.2% 59.1% 30.6% 8.2% 7.1% 6.1% 6.2% 4.8% 3.5% 4.0% NPE Ratio2 3.0% 3.2% 3.1%
Slide 48: Risk: CHF Loans Significantly Managed Down
Risk: CHF Loans Significantly Managed Down CHF portfolio overview CHF status across countries €m • Several CHF initiatives rejected because parliamentary constitutional service classified % of Total such drafts as unconstitutional and unlawful under European law 5.5% 4.4% 3.4% 2.0% 1.7% 1.3% 1.1% 0.
Slide 49: Capital: Capital Requirements & Guidance Going Forward
Capital: Capital Requirements & Guidance Going Forward Capital requirements as of 1H25 (excluding P2G) • Slight change with 25bp increase to 3.50% P2R expected for the year 2026 (Draft for 2026) • At least 56.25% must be held in CET1 21.3% 21.3% 21.3% capital and at least 75% in Tier 1 capital CBR i
Slide 50: Capital: Further Details
Capital: Further Details Breakdown of capital position1 1H25 figures based on CRR3 (“Basel IV”) started on 22.0% 21.3% 1 January 2025 20.4% 20.4% • Overall RWA growth principally due to changes in risk- weighting under Basel IV, as well as a new interpretation of an EBA guideline on structural FX ri
Slide 51: Capital: Credit Risk RWA in Focus vs. Non-Focus
Capital: Credit Risk RWA in Focus vs. Non-Focus Risk weighting for focus portfolio is in line with overall contribution to loan book Credit risk RWA Credit risk RWA: breakdown by segment1 1H25, €m 1H25, €m Public Large Finance Corporate Mortgages 3,256 12 84 144 Corporate 617 Center Consumer Total:
Slide 52: Disclaimer
Disclaimer THESE RESULTS AND STATEMENTS (HEREINAFTER REFERRED TO AS “MATERIALS”) WERE CAREFULLY PREPARED BY ADDIKO BANK AG. HOWEVER, THE MATERIALS HAVE NOT BEEN INDEPENDENTLY VERIFIED. THEREFORE, ADDIKO BANK AG MAKES NO REPRESENTATION AND GIVES NO WARRANTY, NEITHER IMPLIED NOR EXPRESSED, AND ASSUMES