Classification of GBC AG to UmweltBank AG

Forecast confirmed after convincing half-year; checking account introduced, special audit completed

In the first half of 2025, UmweltBank AG significantly increased its net interest income by 61.2% to €28.82 million (previous year: €17.88 million). This development, which had already become apparent in the first quarter of 2025, is a result of the focus on expanding the deposit business. This can be invested risk-free at the ECB with a risk-free interest margin of 100 to 120 basis points. In the first six months of 2025, intensified marketing measures, the digitalisation that has now been implemented and the introduction of attractive products led to an increase in private customer deposits of €140 million. In the lending business, the second pillar of the financial result, UmweltBank AG has recently taken a selective approach due to the prevailing capital restrictions, which led to a decline in the outstanding loan volume to €3.21 billion (31.12.2024: €3.46 billion).

In line with net interest income, net financial income remained at a high level at €13.87 million (previous year: €17.95 million). While the previous year's figure was influenced by the sale of six investments, UmweltBank AG benefited in the first half of 2025 from profit distributions from the sale of real estate by a subsidiary. The investment business, which had a balance sheet value of €65.24 million as at 31 December 2024, is to be sold by 2026. Net commission and trading income, UmweltBank AG's third revenue figure, benefited from the sales success of existing and new products and increased to €3.66 million (previous year: €2.33 million).

In particular, investments in IT as the basis for continuing the transformation and digitalisation process caused operating costs to rise to €35.33 million (previous year: €29.37 million). In addition, risk provisions for customer loans rose to €4.01 million (previous year: €0.09 million), resulting in pre-tax earnings for the first half of 2025 of €6.69 million (previous year: €8.53 million), which is below the previous year's figure.

With the publication of its half-year figures, the management of UmweltBank has confirmed its earnings forecast for the 2025 financial year. Accordingly, pre-tax profit is expected to be between €5 million and €10 million. For the second half of the year, a further increase in net interest income to between €60 million and €65 million, in net financial income to between €18 million and €20 million and in net commission and trading income to between €7 million and €11 million is expected. However, this will be offset by further risk provisions in a range of €10 million to €15 million.

Particular focus is being placed on the expected increase in net interest income, which is based on a planned expansion of the deposit business. This is expected to grow significantly to €4.3 billion by the end of 2025 (30.06.2025: €3.5 billion). The 'UmweltGiro' checking account introduced in June 2025, which is expected to attract a large number of new customers, is expected to make a significant contribution to this. Also worth mentioning is the end of the Bafin special representative's activities. Although the capital requirements will remain in place for the time being, they could be reduced in the future, which should have a positive impact on lending.

In line with the company's guidance, we have only made adjustments to the 2025 estimates. We are maintaining our medium-term estimates. The impact on the determined fair value of the company is negligible and we confirm our price target of €10.40 and BUY rating.