ALISA BANK PLC STOCK EXCHANGE RELEASE 12.8.2025 AT 09:00 EEST
CHALLENGING OPERATING ENVIRONMENT PERSISTED – COMPANY FELL SHORT OF PROJECTED GROWTH PATH
January-June 2025 in brief
- January-June profit before non-recurring items and taxes was EUR -1.4 million (-1.0). Profit before taxes was EUR -1.6 million (-2.0).
- Net interest income was EUR 6.6 million (7.2).
- Total operating income was EUR 7.4 million (7.7).
- Total operating costs were EUR -6.6 million (-6.4).
- Realised and expected credit losses were EUR -2.3 million (-3.2).
- Total capital adequacy ratio was 19.2 percent (12/2024: 17.6).
- Loan portfolio before reducing expected credit losses decreased by 15 percent to EUR 126.9 million (12/2024: 149.5) in the accounting period.
- Deposits decreased by 24 percent to EUR 299.0 million (394.6). Liquidity remained strong, and the LCR (Liquidity Coverage Ratio) was 869 percent (12/2024: 897).
|
Group key figures (EUR 1,000) |
Jan-June 2025 |
Jan-June 2024 |
Jan-Dec 2024 |
|
Net interest income |
6,612 |
7,175 |
15,075 |
|
Net commission income and expenses |
729 |
417 |
1,815 |
|
Total operating costs |
-6,624 |
-6,432 |
-12,781 |
|
Realised and expected credit losses |
-2,336 |
-3,223 |
-5,527 |
|
Profit before taxes |
-1,601 |
-1,995 |
-1,317 |
|
*Profit before non-recurring items and taxes |
-1 440 |
-999 |
-137 |
|
* Cost to income ratio, % |
90 |
84 |
75 |
|
Balance sheet total |
349,570 |
565,255** |
450,604 |
|
* Return on equity (ROE), % |
-9.1 |
-13.0 |
-3.9 |
|
Capital adequacy ratio (TC), % |
19.2 |
14.0 |
17.6 |
|
Common Equity Tier (CET1) capital ratio, % |
16.7 |
11.6 |
15.1 |
|
Number of employees at the end of period |
85 |
91 |
80 |
|
Earnings per share (EPS), EUR |
-0.01 |
-0.02 |
-0.01 |
|
* Credit losses / loan portfolio, % |
3.7 |
3.4 |
3.7 |
* The calculation principles of alternative performance measures are presented in Appendix A.
** The opening balance of the comparative period's balance sheet for 1 January–30 June 2024 has been adjusted by EUR 185 thousand due to a technical error in ECL calculation that occurred in 2023.
CEO’s review
The first half of 2025 was challenging for us on several fronts. Demand for financing from both consumers and businesses remained weak, and payment delays continued to increase. Utilization rates of invoice financing limits stayed below normal levels. During the first half of the year, we invested in larger-scale BaaS-partnerships (Banking-as-a-Service), which led to several positive business discussions. Supported by successful marketing efforts and increased sales activity, we managed to bring business financing sales closer to our target level in the second quarter.
Due to the weak start to the year, profit before non-recurring items and taxes was EUR -1.4 million. Towards the end of the period, business performance was supported by effective marketing, the renewal of sales management, and more risk-based pricing. Continued global challenges, together with operational headwinds in the SME sector, are likely to keep the outlook for the remainder of the year modest. Nevertheless, we have several reasons to believe that the growth of our business financing portfolio will continue into the autumn months at a pace similar to early summer.
Business development
The company’s operating income decreased by 3.9 percent in the first half of 2025 to EUR 7.4 million (7.7), driven by a decline in net interest income. Expenses increased by EUR 0.2 million due to the combination with PURO Finance, while credit losses fell by EUR 0.9 million, resulting in a EUR 0.4 million reduction in operating loss compared to the previous year.
In the personal customer segment, our loan portfolio decreased by 23 percent to EUR 78 million (12/2024: EUR 102 million). The main driver for this decline was our earlier strategic decision to discontinue the use of credit comparison websites as a sales channel and to focus new lending on the lower-risk portion of our existing customer base.
Despite a challenging operating environment, we succeeded in increasing the business financing loan portfolio by 1.8 percent in the first half of the year (6/2025: EUR 48.5 million, 12/2024: 47.6). The early-year increase in non-performing SME receivables was reversed, but due to the decrease in the loan portfolio and the decline in consumer financing, the relative share of payment delays developed less favorably than expected (NPL ratio increased to 4.9 percent from 4.8 percent at the end of the review period.). During the reporting period, we sold and wrote off inactive credit receivables. Nevertheless, the net credit loss trend remained downward and in line with our forecasts, with the balance sheet now healthier as a result of the measures taken. Following the update to our risk-based pricing, the risk level of new business financing sales is now lower than the bank’s current overall portfolio risk.
Our deposits stood at EUR 299 million (12/2024: EUR 395 million) at the end of the financial year. The composition of deposits developed as targeted during the first half, with an increased share from our own channels, which lowered the average funding cost and improved the predictability of the deposit base. Based on current projections, the average funding cost will continue to decline in the second half of the year, albeit at a clearly slower pace.
The bank’s capital adequacy ratio continued to strengthen during the first half and stood at 19.2 percent at the end of June, matching the target level of 16 percent.
Looking ahead
In line with the bank’s new strategy, the transformation toward lower-risk SME financing products will improve the risk-adjusted return on new sales (income net of credit losses) during 2025. The decline in the cost of funding is expected to continue throughout the year under the market’s projected interest rate scenario. These measures, combined with the growth in the financing balance sheet, will have a positive impact on profit compared with the first half of the year. We continue to target financing balance sheet growth outpacing the market through both existing and new BaaS partnerships. Based on ongoing discussions, Alisa’s offering — particularly in invoice financing — is seen as highly attractive.
We will place special emphasis on keeping business financing on a growth path and on intensifying the cost-adjustment program initiated earlier this year, critically reviewing both external and internal expenses. In light of changes already implemented, we are confident that further savings can be achieved in this area.
We expect the bank’s monthly profit before taxes and non-recurring items to turn positive, as it did in the previous year, during the latter part of 2025.
Sampsa Laine
CEO
Outlook for 2025
Alisa Bank released 18 June 2025 a profit warning, bringing down the outlook for 2025.
18 June 2025 updated outlook for 2025:
The prolonged uncertainty of the operating environment is weakening the company's profit performance for 2025. Alisa Bank continues to implement the renewed strategy and develop BaaS partnerships. The bank’s target is profitable growth in business financing, taking into account the economic uncertainty affecting lending. The profit before non-recurring items and taxes for year 2025 is estimated to decline from 2024 level.
Previous outlook for 2025, that was published in connection with the Financial Statements Bulletin 2024:
After a year of changes, Alisa Bank will implement the renewed strategy in the 2025 fiscal year and continue to develop BaaS partnerships. There are early positive signs in the general economic situation, although there is still uncertainty regarding the development of the operating environment. If the economic recovery continues, combined with the implementation of the bank’s renewed strategy, it will support the bank’s income growth during the current financial year. For the reasons mentioned above, and due to the impact of the annual cycle of invoice financing business, favorable development is expected to be emphasized in the second half of the year.
The profit for the second half of 2024 reflects the current financial state of the renewed Alisa. The profit before non-recurring items for 2025, is estimated to develop favorably compared with the current financial state.
Alisa Bank Plc
Further information
Sampsa Laine, CEO, Alisa Bank Plc, sampsa.laine@alisapankki.fi, tel. +358 40 555 9035
Alisa Bank
Alisa Bank Plc is a financial technology company that provides seamless banking services through digital channels. We serve SME customers, deposit customers seeking competitive interest returns on their deposits and partners. Together with our partners, we offer integrated banking services in the channels where customers carry out their daily business. Alisa Bank Plc’s shares are listed on the main list of Nasdaq Helsinki (ALISA), and it holds a license granted by the Financial Supervisory Authority. www.alisabank.com