UmweltBank AG: Return to Profitability Expected

According to a recent report by GBC AG, UmweltBank AG has made significant strides in improving its total income, primarily driven by increased net interest income. Preliminary figures show net interest income rising to €44.95 million, compared to €41.11 million the previous year, owing to a strong increase in customer deposits.

The bank's earnings before taxes were within their projected range, but total expenses increased significantly due to ongoing transformation initiatives, including digitalization. However, UmweltBank foresees a return to profitability in 2025, with expectations of earnings before taxes ranging from €5 million to €10 million.

The bank is set to increase its deposit business, aiming to boost private customer deposits to €4.3 billion this year. Additionally, new lending activities are expected to range from €250 million to €350 million, with plans to expand to €650 million by 2028.

GBC AG has refined its forecasts, predicting a decrease in the cost-income ratio below 100% in 2025, and setting a target share price of €10.40.