Iute Group Reports Unaudited Results for 12M/2025 Transformation into Digital Bank Ongoing

Iute Group Reports Unaudited Results for 12M/2025

Transformation into Digital Bank Ongoing

STRATEGIC HIGHLIGHTS

• Data-driven credit decisioning enhanced portfolio quality, improved loan pricing discipline and supported margin stability in a higher interest rate environment.
• AI-driven product bundling and value proposition to the right person in the right time drives revenue growth; revenue per customer (LTM) increased 6,7% to 461 EUR (12M/2024: 432 EUR), reflecting deeper product integration and higher ecosystem engagement, while active customer base is up 4,5% to 274 thousand (31 Dec. 2024: 262 thousand).
• Non-lending revenue streams (wallet services and digital insurance intermediation) continued to grow above lending business.
• SEPA Credit Transfer certification for IutePay Bulgaria unlocks scalable IBAN-to-IBAN payments across all Iute markets and enhances cross-border transaction capabilities with the wallet ecosystem.
• Successful early partial refinancing (around 78 million EUR) of EUR 2021/2026 Bonds (125 million EUR) through issuance of EUR 2025/2030 Bonds (160 million EUR), extending maturity profile, strengthening financial flexibility and supporting long-term growth – Refinancing activities for remaining EUR 2021/2026 Bond to commence in early 2026.

OPERATIONAL HIGHLIGHTS

• Loan payouts increased by 13,6% to record level of 424,6 million EUR (12M/2024: 376,5 million EUR), while underwriting standards remained disciplined and risk selection further improved.
• Number of loans signed with 396 thousand up 10,3% (12M/2024: 359 thousand), reflecting sustained customer demand and scalable origination capacity.
• Group cost of risk (net impairment charges/ average gross loan portfolio) decreased significantly to 7,8% (12M 2024: 9,1%), reflecting improved portfolio quality and enhanced risk modelling.
• Productive assets (gross loan portfolio) increased to 377,0 million EUR (31 Dec. 2024: 317,6 million EUR), reflecting sustained demand and prudent loan issuance – attributable principal amounted to 353,8 million EUR (31 Dec. 2024: 296,3 million EUR).
• Repayment discipline (Customer Performance Index, CPI30 excl. bank) improved to 89,1% (12M/2024: 86,8%), supported by enhanced credit risk models, risk-based loan sizing and loan duration management.
• Energbank dividend distribution amounted to 2,5 million EUR (2024: 4,5 million EUR), corresponding to a total of 7.1 million EUR since acquisition in 2022.

FINANCIAL HIGHLIGHTS

• Total revenue up 10,6% to 124,6 million EUR (12M/2024: 112,7 million EUR).
• Interest and commission fee income up 10,3% to 102,7 million EUR (12M/2024: 93,1 million EUR) driven by record-high loan issuance and portfolio expansion.
• Net interest and commission fee income up 3,6% to 67,2 million EUR (12M/2024: 64,8 million EUR), reflecting portfolio expansion amid higher funding costs.
• Net interest margin (NIM) down to 20,7% (31 Dec. 2024: 24,5%), reflecting lower APRs and higher funding costs in period of portfolio expansion – risk-adjusted NIM at 12,4% (31 Dec. 2024: 14,0%).
• Adjusted cost-to-revenue ratio decreased to 34,9% (12M/2024: 42,5%), driven by operational discipline and gains from automation.
• EBITDA adjusted for FX and one-off gains (refund of solidarity tax in North Macedonia) up 13,6% to 54,2 million EUR (12M/2024: 47,7 million EUR adjusted for FX).
• Net profit up 10,0% to 9,9 million EUR (12M/2024: 9,0 million EUR), reflecting operational leverage amid higher funding costs and ongoing investment in digital future capabilities.

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

• On 15 January 2026, the Group acquired a banking license from National Bank of Ukraine.
• Establishment of Iute Affinity to structurally embed scalable insurance solutions into the digital ecosystem and further advance the platform strategy.

Tallinn, Estonia, 19 February 2026. Iute Group, a leading European personal finance group, reported today unaudited results for 12M/2025.

“2025 marked a year of disciplined growth and structural strengthening for Iute Group in its transformation into digital bank with a value proposition that includes financial superapp. Our asset quality improved, non-lending revenue streams expanded and investment in data science, AI and digital distribution continued. We are building a more diversified and structurally efficient platform. In our traditional business, we enhanced portfolio quality through advanced data-driven underwriting and further improved repayment performance; cash remains the king. We actively optimized our liability structure through early refinancing, extending our maturity profile and reinforcing long-term financial flexibility with both publicly listed securities as well as bank deposits. In the recent business lines such as payments processing and embedded insurance, we attracted new customers with our products. Operational leverage increased as scale effects and digital efficiencies supported margin resilience and cash generation.  Looking ahead, we expect the continued scaling of our digital ecosystem, extending the value proposition to our customers, increased use of data science and geographic expansion.   As digital adoption deepens and our funding structure normalizes, we see clear potential for improving risk-adjusted returns and cash generation that feeds our growth flywheel. We remain committed to disciplined growth while transforming into digital bank and superapp”, said Tarmo Sild, CEO of Iute Group.

The full unaudited report for 12M/2025 is available under www.iute.com/investor/reports-and-presentations.

Earnings Call:

CEO Tarmo Sild and CFO Kristel Kurvits will comment on the unaudited 12M/2025 results by means of a webcast presentation today, 19 February 2026, 15.00 CET. The webcast/call will be held in English.

Please register in time to participate in the webcast/call at:
Iute Group – Earnings Call 12M 2025.

The corresponding presentation will also be available on the Company's website prior to the earnings webcast/call.

Contact:

Kristel Kurvits, Group Chief Financial Officer (CFO)
Email: investor@iute.com
Phone: +372 622 9177

About Iute Group:

Iute Group is a digital banking group focused on everyday financial services in Southeast Europe. Established in 2008 and headquartered in Estonia, Iute serves customers in Albania, Bulgaria, Moldova, North Macedonia, and Ukraine. Through the Myiute app and its local operations, Iute provides digital financial services including payments, banking, financing, and insurance intermediation. Iute Group finances its operations through equity, deposits, and secured bonds listed on the Regulated Market of the Frankfurt Stock Exchange and the Nasdaq Baltic Main List.

www.iute.com