In This Article:
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Net Profit: Increased by 25% year-on-year from EUR 30.1 million to EUR 37.7 million in Q3 2024.
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Earnings Per Share: EUR 1.95 per share as of the end of September 2024.
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Return on Average Tangible Equity: Increased from 5.5% to 6.4% year-on-year.
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Operating Result: Improved by 7% year-on-year to EUR 83.5 million.
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Net Interest Income: Increased by 8.5% year-on-year.
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Net Commission Income: Grew by 6.6% year-on-year.
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Cost of Risk: EUR 25 million or 71 basis points.
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Non-Performing Loan (NPL) Volume: Stable at EUR 141 billion with an NPL ratio of 2.9%.
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NPL Coverage Ratio: 80.8%.
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Deposits: EUR 5.1 billion with a loan-to-deposit ratio of 69%.
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Liquidity Coverage Ratio: Above 380%.
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Capital Position: 21.1% fully loaded CET1 ratio.
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Consumer Lending Growth: 22% year-on-year increase in the first nine months.
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SME Loan Book Growth: 3% growth in micro and small segments, with a 20% reduction in medium business segment.
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Focus Loan Book Growth: 5% year-on-year or 8% excluding medium SME segment.
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Net Banking Income: Increased by 8.1% year-on-year.
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General Administrative Expenses: Increased by 8.5% year-on-year.
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Cost-Income Ratio: 60.8% for the first nine months, adjusted to 59.5% excluding one-off costs.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Addiko Bank AG (WBO:ADKO) reported a 25% year-on-year improvement in net profit, reaching EUR37.7 million in Q3 2024.
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The bank's net interest income increased by 8.5% year-on-year, despite higher funding costs.
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Consumer lending saw a strong 22% year-over-year growth, outperforming the market.
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The bank's capital position remains robust with a 21.1% fully loaded CET1 ratio.
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Operational improvements, such as the acceleration program, have led to a 90% automatic decision level in consumer business risk management.
Negative Points
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SME loan growth was muted, particularly in Serbia, impacting overall loan book growth.
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Extraordinary expenses related to shareholder activities amounted to EUR3 million, affecting the operating result.
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The unpredictable shareholder situation has negatively impacted business operations and staff motivation.
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Regulatory pressures in some markets are curbing fee increases, impacting net commission income.
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The bank faces challenges in the SME segment, with market demand shrinking and increased competition leading to price reductions.
Q & A Highlights
Q: Could expanding into larger ticket sizes help restart growth in the SME segment, given the current challenging demand? A: Herbert Juranek, CEO, stated that Addiko Bank will not change its strategy and will stick to smaller ticket sizes. However, they are considering enhancing their business model in certain areas to get back on the growth track. Ganesh Krishnamoorthi, Chief Market, IT & Digitalization Officer, added that they are exploring secured lending and adjusting prices to regain market share, particularly in Serbia.