In This Article:
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Net Profit: Increased by 31% year-on-year to EUR25.5 million.
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Earnings Per Share (EPS): EUR1.32 for the first half of 2024.
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Return on Average Tangible Equity (ROTE): Increased from 5.4% to 6.6% year-on-year.
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Operating Result: Improved by 9% year-on-year to EUR54 million.
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Net Interest Income: Increased by 11.5% year-on-year.
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Net Commission Income: Grew by 8.4% year-on-year.
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Cost of Risk: EUR15.5 million, or 44 basis points.
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Non-Performing Exposure (NPE) Volume: Reduced to EUR137 million.
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NPE Ratio: 2.8% on on-balance loans.
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NPE Coverage Ratio: 80.7%.
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Deposits: EUR5 billion with a loan-to-deposit ratio of 70%.
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Liquidity Coverage Ratio: Above 350%.
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Fully Loaded CET1 Ratio: 20.4%.
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Consumer Lending Growth: 31% year-over-year increase in new business generation.
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Consumer Loan Book Growth: 12% with a yield of 8%.
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SME Loan Book Growth: 8% with a yield of 6%.
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Focus Loan Book Growth: 8%, or 11% excluding the medium SME segment, with a blended yield of 6.7%.
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General Administrative Expenses (OpEx): Increased by 11.6% year-over-year.
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Cost-Income Ratio: 62.2% for the first six months, adjusted to 60.4% excluding one-off costs.
Release Date: August 08, 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 31% year-on-year increase in net profit, reaching EUR25.5 million.
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The return on average tangible equity improved from 5.4% to 6.6% year-on-year.
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Net interest income increased by 11.5% despite higher funding costs, and net commission income grew by 8.4%.
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The bank's NPE ratio decreased to 2.8%, with a strong NPE coverage ratio of 80.7%.
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The capital position remains robust with a 20.4% fully loaded CET1 ratio, indicating strong financial health.
Negative Points
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The SME business growth slowed down due to market factors, impacting overall business performance.
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Extraordinary expenses related to shareholder activities amounted to EUR2.9 million, affecting the first half results.
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Operational expenditures for 2024 are expected to increase from below EUR191 million to below EUR195 million.
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The bank faces challenges in the SME segment, particularly in Serbia, with some portfolio worsening.
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Uncertainty surrounds the success of the NLB takeover offer due to unclear situations with significant shares locked in option contracts.
Q & A Highlights
Q: Have you seen any impact on your commercial activity due to the two takeover bids? Also, did you receive any feedback from regulators about the bids, particularly in Bosnia, Serbia, and Croatia? A: There was no direct feedback from regulators in the mentioned countries regarding the takeover bids. As for commercial activity, there was no direct impact on our customer business. The consumer segment showed good growth, while the SME segment experienced lower growth due to market factors, not the takeover bids.