^

Original-Research: UmweltBank AG - from GBC AG

06.05.2025 / 10:00 CET/CEST

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

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

---------------------------------------------------------------------------

Classification of GBC AG to UmweltBank AG

Company Name: UmweltBank AG

ISIN: DE0005570808

Reason for the research: Research Comment

Recommendation: BUY

Target price: 10.40 EUR

Target price on sight of: 31.12.2025

Last rating change:

Analyst: Cosmin Filker, Marcel Goldmann

Strong growth achieved across all income and earnings level

Following the key figures for the first quarter published for the first time

on 30 April 2025, UmweltBank AG reported significant growth across all

income and earnings levels compared with the previous year. While net

interest income rose significantly to EUR13.66 million (previous year: EUR7.73

million) as expected on the basis of the recent increase in customer

deposits, the increase in net financial income to EUR12.38 million (previou

year: EUR3.67 million) was well above our expectations. This includes profit

distributions from the sale of real estate by a subsidiary. The company

plans to sell its entire investment business by 2026, but investment sale

are inherently difficult to plan.

The strong increase in the financial result ultimately led to earning

before taxes of EUR10.28 million (previous year: EUR-0.13 million), which

already exceeds the company's guidance for the full year 2025 (guidance: EUR5

million to EUR10 million) after just three months. However, as no further

profit distributions are expected for the current financial year and risk

provisions in a range of EUR10 million to EUR15 million are expected for the

rest of the year, the other quarters of the year are expected to show a

slightly negative pre-tax result on a cumulative basis, meaning that the

guidance remains unchanged.

The private customer business was also characterised in the first quarter by

an increase in the number of customers by 4,500 and in customer deposits by

EUR140 million. As at 31 March 2025, private customer deposits amounted to

EUR3.6 billion and remain on track to reach the company's target of EUR4.3

billion by the end of the 2025 financial year. By 2028, private customer

deposits are expected to increase further to EUR5.9 billion. In addition to

savings products and the expansion of the product range in the securitie

segment, the deposit business is to be driven in particular by the current

account. The current account entered the Friends phase in April, before a

roll-out is scheduled for mid-2025.

Although, according to the company, demand in the renewable energies and

residential real estate sectors remains high in the corporate customer

business, new lending started the year as expected on a subdued note at EUR30

million (previous year: EUR25 million). In addition to selective lending, the

continuing equity restrictions, which will be further tightened by the

implementation of CRR III, are also likely to have played a role here. For

the year as a whole, the UmweltBank Board of Management continues to expect

new lending of EUR250 million to EUR350 million, representing a sideway

movement in lending volume.

In line with the company's guidance, we are sticking to our earning

estimates. We have only made minor adjustments on the income side, where we

are now taking the profit distribution of the subsidiary into account in the

financial result. At the same time, we have reduced net interest income to

EUR60.32 million (previously: EUR65.92 million), which is in line with the

company's forecast of EUR60 million to EUR65 million. Previously, we had assumed

a steady increase in retail deposits over the course of the year. In our

updated estimates, we have postponed the increase in private customer

deposits following the introduction of the current account to the second

half of the year, which will result in a lower average volume of private

customer deposits in the current 2025 financial year.

However, as we are maintaining our earnings forecasts unchanged, we also

confirm the share price target of EUR10.40 derived from the residual income

model. The rating remains BUY.

You can download the research here: http://www.more-ir.de/d/32474.pdf

Contact for questions:

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

++++++++++++++++

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

+++++++++++++++

Date (time) Completion: 06.05.2025 (8:26 am)

Date (time) first transmission: 06.05.2025 (10:00 am)

---------------------------------------------------------------------------

The EQS Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com

---------------------------------------------------------------------------

2130814 06.05.2025 CET/CEST

°