Half Year 2026 Addiko Bank AG Earnings Call Transcript
Key Points
- Addiko Bank AG (ADBKF) maintained stable net banking income of EUR155.5 million despite regulatory interventions and lower interest rates, demonstrating strong underlying business resilience.
- The company delivered robust growth in its core consumer lending segment, with new business increasing by 10% year-over-year and 20% excluding Croatia.
- Asset quality remained strong with a stable NPE ratio of 2.6% and a solid NPE coverage ratio of 80.2%, while cost of risk improved to 31 basis points.
- The bank's capital position remained very strong, with a total capital ratio of 21.3% entirely in CET1 capital, even after absorbing significant exceptional charges.
- Excluding exceptional items, Addiko Bank AG (ADBKF) generated an adjusted profit after tax of EUR19.1 million, translating to an adjusted RoTE of 4.4%.
- The company is diversifying revenue streams, with net commission income increasing by 2.8% year-over-year, supported by Mastercard incentives and bancassurance income.
- Addiko Bank AG (ADBKF) reported a net loss after tax of EUR23 million for the first half of 2026, primarily due to EUR41 million in Swiss franc-related legal provisions.
- The ongoing takeover process by Raiffeisen International has created significant uncertainty and incurred EUR8.4 million in advisory costs, impacting the reported results.
- Regulatory interventions, such as the debt-to-income cap in Croatia and lending rate caps in Serbia, have reduced revenue potential by more than EUR10 million on an annualized basis.
- The SME business in Croatia experienced a 26% decline in new business due to state-driven digitalization of invoices and intense competitive pricing pressure.
- Elevated deposit competition, particularly in Serbia, generated over EUR3 million in additional interest expenses, putting pressure on net interest income.
- The company has suspended its financial guidance due to the material implications of the takeover and the uncertainty surrounding the future scope of its operations.
Ladies and gentlemen, welcome to the Deco Results First Half 26 conference call. I'm Lorenzo, the callers call operator. (Operator Instructions)At this time, it's my pleasure to hand over to Herbert, CEO. Please go ahead, sir.
Good afternoon, ladies and gentlemen.
Thank you for joining us. I would like to welcome you to the presentation of the first half year results 26. Of Adigo Bank AG on behalf of my colleagues, Ganesh, Dade, Edgar and Stefan. We have prepared the following agenda for you. We will begin with the key developments of the first half of '26, including an update on the takeover process and the events that shaped our reported results.
I will then hand over to Ganesh to discuss the performance of our core business and the continued implementation of our specialist strategy. Edgar will subsequently present our financial results, followed by Dave, who will cover risk development and asset quality.
I will then return to give a short wrap-up before we open the floor for your questions.
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