Lithuania's Artea Bank 9M net profit falls on higher impairment provisions
Overview
Lithuania-based bank's 9M net profit fell 42% yr/yr to €27.9 mln
Net interest income for 9M grew 9% yr/yr to €113.7 mln
Company received ECB approval for share buyback
Outlook
Company says it is focusing on risk management, operational efficiency, and long-term resilience
Company expects higher short-term costs due to restructuring and internal capability investments
Artea Bank says it maintains strong capital and liquidity positions to withstand market volatility
Result Drivers
LOAN DEMAND - Co said growth in net interest and fee income was driven by high demand for financing and new loan agreements
RESTRUCTURING COSTS - Co said operating expenses rose due to restructuring, risk management investments, and transition to in-house teams
IMPAIRMENT PROVISIONS - Co said net profit was impacted by higher impairment provisions due to more conservative assumptions and adverse macroeconomic scenarios
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
9M Net Income | EUR 27.90 mln | ||
9M Net Interest Income | EUR 113.70 mln | ||
9M Adjusted Operating Profit | EUR 54.60 mln | ||
9M Net Fee Income | EUR 23.60 mln | ||
9M ROE | 6.20% |
Analyst Coverage
The one available analyst rating on the shares is "strong buy"
The average consensus recommendation for the banks peer group is "hold."
Wall Street's median 12-month price target for Artea Bankas AB is €1.10, about 25.4% above its October 27 closing price of €0.88
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)