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Original-Research: UmweltBank AG - from GBC AG
06.05.2025 / 10:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.
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Classification of GBC AG to UmweltBank AG
Company Name: UmweltBank AG
ISIN: DE0005570808
Reason for the research: Research Comment
Recommendation: BUY
Target price: 10.40 EUR
Target price on sight of: 31.12.2025
Last rating change:
Analyst: Cosmin Filker, Marcel Goldmann
Strong growth achieved across all income and earnings levels
Following the key figures for the first quarter published for the first time
on 30 April 2025, UmweltBank AG reported significant growth across all
income and earnings levels compared with the previous year. While net
interest income rose significantly to EUR13.66 million (previous year: EUR7.73
million) as expected on the basis of the recent increase in customer
deposits, the increase in net financial income to EUR12.38 million (previous
year: EUR3.67 million) was well above our expectations. This includes profit
distributions from the sale of real estate by a subsidiary. The company
plans to sell its entire investment business by 2026, but investment sales
are inherently difficult to plan.
The strong increase in the financial result ultimately led to earnings
before taxes of EUR10.28 million (previous year: EUR-0.13 million), which
already exceeds the company's guidance for the full year 2025 (guidance: EUR5
million to EUR10 million) after just three months. However, as no further
profit distributions are expected for the current financial year and risk
provisions in a range of EUR10 million to EUR15 million are expected for the
rest of the year, the other quarters of the year are expected to show a
slightly negative pre-tax result on a cumulative basis, meaning that the
guidance remains unchanged.
The private customer business was also characterised in the first quarter by
an increase in the number of customers by 4,500 and in customer deposits by
EUR140 million. As at 31 March 2025, private customer deposits amounted to
EUR3.6 billion and remain on track to reach the company's target of EUR4.3
billion by the end of the 2025 financial year. By 2028, private customer
deposits are expected to increase further to EUR5.9 billion. In addition to
savings products and the expansion of the product range in the securities
segment, the deposit business is to be driven in particular by the current
account. The current account entered the Friends phase in April, before a
roll-out is scheduled for mid-2025.
Although, according to the company, demand in the renewable energies and
residential real estate sectors remains high in the corporate customer
business, new lending started the year as expected on a subdued note at EUR30
million (previous year: EUR25 million). In addition to selective lending, the
continuing equity restrictions, which will be further tightened by the
implementation of CRR III, are also likely to have played a role here. For
the year as a whole, the UmweltBank Board of Management continues to expect
new lending of EUR250 million to EUR350 million, representing a sideways
movement in lending volume.
In line with the company's guidance, we are sticking to our earnings
estimates. We have only made minor adjustments on the income side, where we
are now taking the profit distribution of the subsidiary into account in the
financial result. At the same time, we have reduced net interest income to
EUR60.32 million (previously: EUR65.92 million), which is in line with the
company's forecast of EUR60 million to EUR65 million. Previously, we had assumed
a steady increase in retail deposits over the course of the year. In our
updated estimates, we have postponed the increase in private customer
deposits following the introduction of the current account to the second
half of the year, which will result in a lower average volume of private
customer deposits in the current 2025 financial year.
However, as we are maintaining our earnings forecasts unchanged, we also
confirm the share price target of EUR10.40 derived from the residual income
model. The rating remains BUY.
You can download the research here: http://www.more-ir.de/d/32474.pdf
Contact for questions:
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Date (time) Completion: 06.05.2025 (8:26 am)
Date (time) first transmission: 06.05.2025 (10:00 am)
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