Original-Research: UmweltBank AG (von GBC AG): BUY

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Original-Research: UmweltBank AG - from GBC AG

08.07.2026 / 11:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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Classification of GBC AG to UmweltBank AG

Company Name: UmweltBank AG

ISIN: DE0005570808

Reason for the research: Research study (Anno)

Recommendation: BUY

Target price: 9.00 EUR

Target price on sight of: 31.12.2027

Last rating change:

Analyst: Cosmin Filker, Marcel Goldmann

Growth in customer deposits should be accompanied by growth in the lending

business; rating and price target unchanged

As early as the end of February 2026, UmweltBank AG presented its

preliminary figures for the 2025 financial year. The publication of the

annual report now provides extensive confirmation and further details of the

figures already known. As expected, the audited figures show a strong

increase in net interest income of 30.0% to EUR58.45 million (previous year:

EUR44.95 million). This result is based on both higher interest income and

lower interest expenses.

The key factor behind this success was strong growth in the retail banking

business. UmweltBank AG increased customer deposits by almost EUR720 million

to EUR4,544 million and the number of customers by around 30,000 to

approximately 184,000. The overnight deposit promotion (3.0% for the first

three months), which has been running since October 2025, is likely to have

been the most important driver of growth here. The effects of introducing

current accounts, however, fell short of expectations. An increase in

deposit volumes generates interest income through reinvestment with the ECB.

The strong growth in deposits offset the decline in corporate banking, which

is constrained by capital adequacy requirements.

In addition, both the financial result of EUR17.56 million (previous year:

EUR12.98 million) and the net commission and trading income of EUR7.09 million

(previous year: EUR5.54 million) contributed to the success of the 2025

financial year. The increase in total income was sufficient to offset the

rise in personnel and administrative costs, resulting in a significant

improvement in pre-tax profit to EUR6.44 million (previous year: -EUR8.50

million). All in all, net profit for the year rose to EUR14.26 million

(previous year: EUR0.73 million). The release of reserves in accordance with

Section 340g of the German Commercial Code (HGB) amounting to EUR5.0 million

contributed significantly to this.

When the Q1 figures were published at the end of April 2026, UmweltBank's

management had already provided forecasts for the current financial year as

well as a scenario-based outlook for the coming financial years. These have

now been confirmed by the audited annual report. Accordingly, net interest

income of between EUR62.5 million and EUR67.5 million is expected to be

accompanied by a financial result of between EUR4 million and EUR8 million, as

well as commission and trading income of between EUR10 million and EUR15

million. Net interest income is expected to benefit not only from further

expansion of the retail banking business. The corporate banking business

(environmental loans) is expected to achieve a turnaround in the current

financial year. The capital increase carried out in September 2025 (gross

issue proceeds: EUR20.66 million) and the reduction in capital requirements by

60 basis points in the second quarter of 2026 have significantly increased

the scope for growth in lending volumes.

Our forecasts are based on the company's guidance. Following a slight

decline in total income to EUR81.91 million, we expect dynamic growth in the

coming financial years. This is accompanied by a below-average rise in

costs, which is likely to benefit from the completion of the transformation

phase. Given our expectation of an improvement in the cost-to-income ratio

from 90.6% (2025) to 81.5%, we anticipate an increase in pre-tax profit from

EUR6.44 million (2025) to EUR14.36 million. This growth trajectory is expected

to continue in subsequent years.

As part of our valuation model, we have determined an unchanged price target

of EUR9.00. We assign a BUY rating.

You can download the research here:

https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=d5b9b4f59229d04a6bbc37a09b16544e

Contact for questions:

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR

Beim oben analysierten Unternehmen ist folgender möglicher

Interessenkonflikt gegeben: (1,4,5a,6a,7,11); Einen Katalog möglicher

Interessenkonflikte finden Sie unter:

https://www.gbc-ag.de/de/Offenlegung

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Date (time) Completion: 08.07.2026 (09:05 am)

Date (time) first transmission: 08.07.2026 (11:00 am)

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2362608 08.07.2026 CET/CEST

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