Addiko Bank Ag · VIE:ADKO
Addiko Bank — Q1 2025 Earnings Presentation
47 slides from Addiko Bank's earnings presentation, May 8, 2025
Slide 1: 1Q25 Results Presentation
1Q25 Results Presentation Herbert Juranek (CEO) Edgar Flaggl (CFO) Tadej Krašovec (CRO) Ganesh Krishnamoorthi (CMO & CIO) Sara Zezelic (Investor Relations) 8 May 2025
Slide 2: Executive Summary & Business Update
Executive Summary & Business Update Financials & Risk Update Outlook & Wrap-Up Additional Materials
Slide 3: Key Highlights 1Q25
Key Highlights 1Q25 • 1Q25 net profit at €14.5m, below 1Q24’s €15.6m (-7%) • Return on average Tangible Equity at 7.1% (1Q24: 8.0%), earnings per share €0.75 Earnings • Operating result slightly decreased YoY to €25.3m (1Q24: €28.5m) due to significantly lower & rate environment and positive one-off
Slide 4: Other Highlights
Other Highlights • AGM held on 18 April 2025 with all agenda items approved • Approximately 43% of the shareholders have registered to attend the AGM, c. 36% AGM 2025 participated • AGM extended the term of office of Mr. Johannes Proksch and Mr. Sava Dalbokov as members of the Supervisory Board • No
Slide 5: Continued Growth in Focus
Continued Growth in Focus Focus portfolio development Gross performing loans (€m) • Total book (gross performing loans) stable Total Book 3,486 3,520 3,506 3,535 YoY despite outperformance in Consumer • +4% YoY growth in focus book (+5% YoY YoY excluding medium SME) +4% • New business generation u
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 • Customer growth in cash loans (+4% YoY) YoY 416 • Solid new business delivered (+16% YoY) with 379 26 +10% premium pricing (7.2%) 26 +3% 155 • NCI growth (+13% YoY driven by accounts & p
Slide 7: Financials & Risk Update
Executive Summary & Business Update Financials & Risk Update Outlook & Wrap-Up Additional Materials
Slide 8: Financial Performance 1Q25 at a Glance
Financial Performance 1Q25 at a Glance Financial Performance 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 8.00% YTD, €m 7.00% 79.3 79.4 80.5 76.6 76.9 1Q24 YoY 6.00% 18.4 18.3 19.4 NCI 16.9 18.2 Netinterest Net interest income income 58.7 59.8 -1.8% 5.00% 3.89% 3.97% 3.93% 3.84% Net fee Net fee & & commission NIM
Slide 9: Capital Position Remains Strong
Capital Position Remains Strong Capital development % CET1/TCR, YTD, RWA in €m Addiko Group 3,671 3,770 RWA 0.11% 0.11% 0.58% CET1/ 22.0% 21.7% TCR 2024 2024 OCI OCI Reg. Reg. & & Equity Equity RWA 1Q25 changes changes adjustments adjustments Developm. developm. Addiko Bank AG (Holding) (incl. (incl
Slide 10: Balanced NPE Development Continues in 1Q25
Balanced NPE Development Continues in 1Q25 NPE volume1 & ratio development Quarterly NPE formation & exit €m, YTD €m, QTD NPE ratio 2Q24 3Q24 4Q24 1Q25 (on-balance loans)2 3.3% 2.8% 2.9% 3.0% NPE ratio Formation 21.4 21.6 36.7 19.5 (GE based)3 2.4% 2.0% 2.0% 2.1% 0.9 +2% 22.1 0.8 0.8 0.9 7.8 7.4 5.4
Slide 11: Cost of Risk at a Glance
Cost of Risk at a Glance Expected credit loss expenses on financial assets 1Q25 YTD, €m, positive number for release • 1Q25 expected credit loss Impairments (negative) (2.7) 1.9 0.1 expenses of €4.6m Releases (positive) resulting in -0.13% cost of risk (on net loans): (4.6) (4.6) (3.8) − Consumer: -
Slide 12: Outlook & Wrap-Up
Executive Summary & Business Update Financials & Risk Update Outlook & Wrap-Up Additional Materials
Slide 13: Outlook 2025 and Wrap-Up
Outlook 2025 and Wrap-Up Income & Business Risk & Liquidity Profitability Loan Growth1 >7% CoR3 c.1.3% RoATE5 c. 6% Outlook CAGR 2024-2026 2025 NIM2 >3.6% NPE Ratio4 <3% Dividend6 c. 50% as guiding principle of net profit Unchanged NBI2 c. 2% YoY TCR >18.35% as guiding principle OPEX <€196m LDR <80%
Slide 14: Additional Materials
Executive Summary & Business Update Financials & Risk Update Outlook & Wrap-Up Additional Materials
Slide 15: Management Team Since June 2021
Management Team Since June 2021 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 M
Slide 16: Addiko at a Glance
Addiko at a Glance Overview of Addiko Operating as one region - one bank 1Q25, % 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 17: 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 Pay Group DOO (Serbia) 9.69% 36.68% European Bank for Reconstruction and Development (EBRD) Dr. Jelitzka + Partner (Austria) 9.63% - Dr. Jelitz
Slide 18: 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 Environment Social Governance Making ESG work through Vision Carbon footprint reduction Committed to the good good governance Addiko helps its employees Sound principles of Mission Addiko supports
Slide 19: Balance Sheet Composition
Balance Sheet Composition Assets Liabilities and Equity YTD 1Q25, €b YTD 1Q25, €b 6.5 6.5 Other 0.2 0.2 Liabilities ✓• Liquid balance sheet Other Assets 0.1 Due to Credit ✓• Strong deposit base - LCR ratio: 433% (YE24: 363%) Institutions 0.6 - Loan-deposit ratio Direct Deposits (customer): 66.3% (YE
Slide 20: 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 21: Acceleration of Growth in Focus Areas Consumer & SME
Acceleration 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 1Q25 YTD Full year 2024 yield Consumer 7.4% 7.4% % in focus 40% 51% 56% 62% 65% (stock) 2016 2017 2018 2019 2020 74
Slide 22: Consumer and SME Lending Development
Consumer and SME Lending Development Consumer (Micro shifted to SME as of 1Q21) SME €m, YTD €m, YTD 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 1,188 1,188 1,059 1,040 1,057 928 Gross Performing Loans 2018 2019 2020 2021 2022 2023 1Q24 1H24 3Q24 YE
Slide 23: New Business on a Monthly Basis
New Business on a Monthly Basis New business during 1Q25 €m 1Q25YTD: 235 86 85 73 76 77 74 76 78 69 67 69 66 70 63 57 Consumer 0 0 0 0 0 0 0 0 0 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. 1Q25YTD: 181 72 71 68 64 61 64 63 64 54 58 57 SME 49 53 48 40 0 0 0 0 0 0 0 0 0 Jan. Feb. Mar. A
Slide 24: Digital Transformation
Digital Transformation Digital capabilities YTD +8% YoY Registered Mobile Banking 53 79 118 150 188 230 258 291 298 314 322 Users (ths.) +7% YoY 323 329 301 308 273 246 210 177 149 Digital 115 Users (ths.) 94 2016 2017 2018 2019 2020 2021 2022 2023 1Q24 2024 1Q25 ADDIKO BANK AG 8 MAY 2025 | 24
Slide 25: Financials: Financial Performance 1Q25 in Detail
Financials: Financial Performance 1Q25 in Detail Key financials P&L in €m YTD QTD •1 Operating result down 11.5% YoY to €25.3m: 1Q25 (YTD) 1Q24 (YTD) +/- PY 1Q25 4Q24 +/- PQ Net interest income 58.7 59.8 -1.8% 58.7 61.1 -3.9% − Net interest income down 1.8% YoY with Net fee and commission income 18.
Slide 26: Financials: Key Performance Drivers 1Q25
Financials: Key Performance Drivers 1Q25 Net interest income Net fee and commission income €m €m NIM 389bp 384bp 370bp % of 28% 32% 31% NII -5.0% +8.0% -1.4% -3.7% +14.9% -6.0% 59.8 61.1 58.7 16.9 19.4 18.2 1Q24 (QTD) 4Q24 (QTD) 1Q25 (QTD) 1Q24 (QTD) 4Q24 (QTD) 1Q25 (QTD) • Strong performance of the
Slide 27: Financials: Interest Income Dynamics
Financials: Interest Income Dynamics Interest income by quarter1 Gross yield by quarter2 €m 78.1 78.2 78.6 76.2 75.7 1Q24 2Q24 3Q24 4Q24 1Q25 Other 7.3% 7.4% 7.4% 7.4% 7.4% 21.2 20.5 21.4 20.7 20.2 Consumer Public & 8.0% 8.0% 8.0% 7.8% 7.2% new new new new new Large 1.1 business business business bu
Slide 28: Financials: Breakdown of Other Interest Income
Financials: Breakdown of Other Interest Income Treasury interest income by quarter €m Other interest 20.7 21.2 20.5 21.4 20.2 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 17.4 17.3 17.1
Slide 29: 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 16.4 1Q24 2Q24 3Q24 4Q24 1Q25 2.2 2.8 2.1 2.2 2.2 Deposits – Treasury 0.8 0.84% 0.83% 0.86% 0.87% 0.85% 0.9 0.7 Network Deposits – 1.2 1.1 Credit 4.4 4.2 Direct Institutions 4.3 3.5 4
Slide 30: 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 1Q25 balance sheet % of customer deposits, calculated based on 1Q25 balance sheet Shift -25bps -50 bps -75 bp
Slide 31: Financials: Commission Income Dynamics
Financials: Commission Income Dynamics Net fee and commission income by quarter Key highlights €m 19.4 • Net fee and commission income 1Q25 up due to 18.4 18.3 18.2 0.6 higher income from accounts & packages and Non-Focus 16.9 0.6 0.5 0.7 bancassurance as well as cards and Other 0.5 • Other products
Slide 32: Financials: Other Income & Other Result
Financials: Other Income & Other Result Other income breakdown (YTD) €m 1Q25 1Q24 Higher deposit guarantee fees mainly driven by front 1 loading of the yearly expenses in Slovenia 1 Deposit guarantee -2.2 -1.0 2 Bank levies and other taxes -1.7 -2.2 2 Bank levies and other taxes including €0.7m (1Q2
Slide 33: Financials: Development of General Administrative Expenses (OPEX)
Financials: Development of General Administrative Expenses (OPEX) OPEX development by quarter Other Administrative expenses €m 1Q25 YTD, €m Other1 2.0 2.0 11% Advertising 12% 1.2 Total: 8.8 €17.1m 51% IT 50.4 7% 49.3 48.4 Legal & Advisory 46.5 4.2 3.2 46.1 4.3 Depreciation 4.5 19% and 4.2 4.2 Amorti
Slide 34: Financials: Balance Sheet
Financials: Balance Sheet Detailed balance sheet overview (YTD) €m 2021 2022 2023 2024 1Q25 Cash reserves 1,361.7 1,382.9 1,254.5 1,251.4 1,131.0 Investment Portfolio 1,044.8 1,084.4 1,208.1 1,479.1 1,502.7 Financial assets held for trading 32.6 22.8 29.5 14.4 11.4 Investment securities 1,012.2 1,06
Slide 35: Financials: Income Statement
Financials: Income Statement Detailed income statement overview (YTD) €m 2021 2022 2023 2024 1Q24 1Q25 Interest income 187.7 195.1 277.0 311.1 76.2 75.7 Interest expense (18.2) (18.7) (49.0) (68.3) (16.4) (17.0) Net interest income 169.5 176.4 228.0 242.9 59.8 58.7 Fee and commission income 84.3 92.
Slide 36: Financials: Breakdown by Entity
Financials: Breakdown by Entity 1Q25 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 19.2 14.5 5.7 5.8 11.0 3.1 Net commission income 6.0 4.2 2.4 2.1
Slide 37: Risk: Strong Risk Management Framework
Risk: Strong Risk Management Framework Non-performing loan portfolio (YTD) NPE Volumes, €m 244 194 163 138 146 137 141 145 147 NPE Coverage Ratio1 73.6% 71.9% 75.4% 80.9% 81.4% 80.7% 80.8% 80.0% 80.9% (Ex-Collateral) NPE Ratio (on-balance loans)2 4.7% 4.0% 3.3% 2.9% 2.9% 2.9% 3.0% 2.8% 2.8% NPE Rati
Slide 38: Risk: Robust Asset Quality in Portfolios
Risk: Robust Asset Quality in Portfolios Focus Non-Focus Consumer SME €m, rounded €m, rounded €m, rounded 2,165 2,117 > 90 2,082 55 > 90 2,038 50 days 1,931 48 87 1,913 1,885 days 43 71 61-90 33 83 41 1,835 78 days 45 44 40 61-90 31 46 days 31-60 36 31-60 days days < 30 < 30 days days > 90 days No 6
Slide 39: Risk: Provision Coverage Evolution
Risk: Provision Coverage Evolution Stage 1, 2 and 3 assets1 Business segments: Stage 1 & 2 (Performing) coverage1 €m 1Q25 (YTD) ECL coverage (YTD) By Segment 2024 3Q24 1H24 1Q24 4,513 4,521 4,509 4,481 4,495 146 137 141 145 147 Focus Focus 1.4% 1.4% 1.5% 1.4% 1.4% 523 531 351 335 557 Consumer 1.5% 1
Slide 40: 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 -0.6 +3.3 +2.4 +5.5 -6.5 +2.6 +6.5 -1.4 -1.0 -0.8 -4.3 -0.4 -1.5 -0.6 -0.4 -0.5 -0.1 -0.3 -0.2 -0.8 22.1 12.7 13.3 13.7 13.3 0.8 0.0 0.0 0.0 0.
Slide 41: 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% 81.0% 81.5% 81.8% 81.8% 82.3% 77.6% 79.3% 79.9% 80.5% 80.8% 81.7% Collateral)1 5.4% 5.6% 5.0% 4.5% NPE Ratio2 3.0% 3.1% 3.2% 3.4% 2.6% 2.8% 2.8% 2.3% 2023 1Q24 2024 1Q25 2023 1Q24 2024 1Q25
Slide 42: 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% 81.8% 81.8% 77.6% 79.3% 82.0% 80.2% 79.6% 78.1% 84.1% 85.1% 73.2% 59.1% 60.3% 8.2% 7.1% 6.4% 6.2% 4.8% 3.5% 3.6% 4.0% NPE Ratio2 3.0% 3.2%
Slide 43: 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 % of Total 5.5% 4.4% 3.4% 2.0% 1.7% 1.3% 1.1% 0.9% 0.8% 0.8% classified such drafts as unconstitutional and unlawful under
Slide 44: Capital: Capital Requirements & Guidance Going Forward
Capital: Capital Requirements & Guidance Going Forward Capital requirements as of 1Q25 (excluding P2G) • Unchanged at 3.25% P2R • At least 56.25% must be held in CET1 2025 capital and at least 75% in Tier 1 capital 21.7% 21.7% 21.7% • Yearly review as part of SREP • Systemic Risk Buffer for Addiko G
Slide 45: Capital: Further Details
Capital: Further Details Breakdown of capital position1 Implementation of CRR3 (“Basel IV”) started on 20.4% 20.3% 22.0% 21.7% 1 January 2025 Basel IV one-off effects on RWA (net €+58m): • Increase in RWA (credit risk) by €139m • Decrease in operational risk by €-81m No dividend deduction: Based on
Slide 46: 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 1Q25, €m 1Q25, €m Large Public Corporate Finance Mortgages 13 3,222 78 153 Corporate 631 Center Consumer Total:
Slide 47: 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