UmweltBank AG

Latest Results (22.12.2025):

This summary covers UmweltBank AG’s latest published results as of Q1 2024 and the company’s 2023 annual figures. The bank reported FY 2023 financials showing a sharp income drop and only marginal pre-tax profit for the year, while Q1 2024 already reflects the planned transformation: strong customer deposit inflows but a materially negative quarter driven by migration-related and other transformation costs. Management expects a loss for full-year 2024 and a return to profitability from 2025 onward.

Headline FY‑2023 results

FY 2023: net interest income €41.11m (down from €58.79m in 2022), financial result €7.17m (normalised after 2022 one-off gains), total operating income ≈ €57.3m, EBT €1.09m and EAT €0.76m. New lending fell to €459m (2022: €623m).

Q1‑2024 / latest quarter update

Q1 2024 saw ~8,000 new customers and ~€250m in new customer deposits. However Q1 EBT was ~‑€10.7m (realisation/migration losses and other one-off costs), and management guides FY 2024 EBT around €‑15m to €‑20m as a transformation year.

Transformation costs and drivers

Major cost drivers included the core banking system migration (extraordinary expenses €10.14m in 2023 plus additional follow‑on costs expected in 2024 ~€4m), higher personnel costs (2023 personnel expenses €25.62m) and increased marketing/digital investment to grow retail deposits.

Balance sheet / capital position

Loan book €3.35bn (31.12.2023), customer deposits €2.85bn (31.12.2023), securities held €2.03bn. Regulatory total capital €532.1m (total capital ratio 15.9% at 31.12.2023). BaFin had raised a capital surcharge (3.7% at year‑end); after the balance‑sheet date required capital rose to 15.5%—management expects to reduce the surcharge as remedial measures progress.

Business mix and strategy

Bank remains focused on green lending (PV, wind, sustainable real estate). Strategy shift: prioritise expanding retail deposit base and corporate lending (renewables, social/sustainable property) rather than growing private mortgage volumes. Target: 500,000 customers by 2028 and gross new business >€1.0bn by 2028.

Outlook and analyst stance

Management and the research note expect 2024 to be loss-making due to transformation investments but forecast EBT of €5.75m in 2025 and €20.49m in 2026. GBC’s valuation in the report sets a fair value of €9.60/share and retains a BUY rating versus a market price €6.44 (26.06.2024).

Key risks to watch

Risks include timing and magnitude of cost realisation from the migration, pace of deposit growth, restoration of capital buffers (BaFin surcharge), and macro/interest‑rate developments that affect margins and refinancing costs.