Original-Research: UmweltBank AG (von GBC AG): Buy 
Mo, 03.11.25 14:00· Quelle: dpa-AFX

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Original-Research: UmweltBank AG - from GBC AG

03.11.2025 / 14:00 CET/CEST
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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:                EUR 9.40
     Target price on sight of:    31.12.2025
     Last rating change:
     Analyst:                     Cosmin Filker, Marcel Goldmann

Operational progress, strengthened capital base and sustained positive
earnings performance

UmweltBank AG achieved a number of milestones in the first nine months of
2025. Particularly noteworthy is the termination of the activities of the
special representative appointed by BaFin, which is seen as clear evidence
of the progress made. In addition, the bank introduced its first current
account in the third quarter of 2025 on the basis of the digitalisation of
its processes. Finally, following its scale listing in August 2025, the
company generated gross issue proceeds of EUR20.66 million as part of a
capital increase. This improves the capital buffer and increases flexibility
in granting new loans.

As expected, UmweltBank AG continued its growth course in the third quarter
of 2025 from an operational perspective. After nine months, total income
rose significantly to EUR60.72 million (previous year: EUR49.40 million). The
increase in net interest income to EUR43.35 million (previous year: EUR28.78
million) made a particular contribution to this. This is mainly attributable
to higher deposit inflows, which resulted in higher interest margins. In
addition, the company achieved improvements in its treasury portfolio. Net
commission and trading income also rose significantly to EUR5.30 million
(previous year: EUR3.13 million). Among other things, the UmweltBank ETF -
Green & Social Bonds Euro launched in the third quarter is likely to have
been an important driver here. The financial result of EUR14.84 million
(previous year: EUR18.06 million) reflects profit distributions from the sale
of two real estate investments. The investments are to be sold off for the
most part by the end of 2026, meaning that the financial result is likely to
become less significant in future.

Due to the significant increase in earnings, pre-tax profit also rose
sharply to EUR9.13 million (previous year: EUR3.60 million). Although operating
costs increased in the context of transformation and digitalisation, ongoing
efficiency programmes also led to a disproportionately low increase in
costs.

However, the development of retail customer deposits and the number of
customers was slightly below our expectations. In the third quarter,
customer deposits actually declined slightly to EUR3,877 million (30 June
2025: EUR3,926 million), while the number of customers remained virtually
unchanged. This is attributable to the introduction of the current account,
which has not yet met expectations. Nevertheless, UmweltBank's management is
sticking to its targets of increasing private customer deposits to around
EUR4.3 billion by the end of 2025. To achieve this, deposit growth of around
EUR400 million must be achieved in the fourth quarter. In addition to stronger
growth from the introduction of the current account, a new overnight deposit
campaign (guaranteed interest rate of 3.0% for three months) is expected to
contribute to this.

Corporate banking also fell short of expectations. In the first nine months,
UmweltBank AG deliberately acted in a capital-conserving manner, achieving
gross new lending of around EUR73 million (previous year: EUR115 million).
Following the capital increase carried out in September 2025, the company
now has a higher capital buffer. It plans to see a significant upturn in new
lending business in the fourth quarter of 2025 and expects gross new lending
business for the year as a whole to be in the range of EUR200 million to EUR250
million (previously: EUR250 million to EUR350 million).

UmweltBank AG has confirmed all key forecast KPIs in its nine-month report.
Net interest income is still expected to be in the range of EUR60 to EUR65
million. However, this assumption is based on ambitious plans for growth in
customer deposits and new lending volume in the corporate customer segment.
In our view, this could prove to be overly ambitious, which is why we are
revising our previous forecast slightly. For the current 2025 financial
year, we now expect net interest income of EUR58.45 million (previously:
EUR60.32 million), which is slightly below the company's forecast range. Our
estimates for net financial income and net commission and trading income
remain unchanged, however. Our estimates for the following years 2026 and
2027 also remain unchanged. From the 2026 financial year onwards, UmweltBank
AG should benefit from the higher capital buffer following the capital
increase and be able to expand its lending business more strongly. There are
also plans to resume lending to private customers. Finally, a more targeted
customer approach should continue the expansion of customer deposits
expected for the fourth quarter of 2025.

The reduction in the forecast for net interest income is also reflected in a
decrease in the expected pre-tax profit to EUR8.40 million (previously: EUR9.37
million) and in the net profit for the year to EUR5.71 million (previously:
EUR6.37 million). The only slight reduction in the forecasts for the current
2025 financial year has only a marginal impact on Umweltbank's target price
determined using the residual income model, which we are reducing slightly
to EUR9.40 (previously: EUR9.50). We continue to assign a 'BUY' rating.



You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=ae82beafddd296af0d479be1f4d6f6b5

Contact for questions:
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Date (time) Completion: 03.11.2025 (8:14 am)
Date (time) first transmission: 03.11.2025 (14:00 am)

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