Original-Research: UmweltBank AG - from GBC AG 12.08.2025 / 11:30 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group.

Original-Research: UmweltBank AG - from GBC AG

12.08.2025 / 11:30 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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.

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Classification of GBC AG to UmweltBank AG

     Company Name:                UmweltBank AG
     ISIN:                        DE0005570808

     Reason for the research:     GBC Research Report (Anno)
     Recommendation:              Buy
     Target price:                10,40 EUR
     Target price on sight of:    31.12.2026
     Last rating change:
     Analyst:                     Cosmin Filker, Marcel Goldmann

Forecast confirmed after convincing half-year; checking account introduced,
special audit completed

In the first half of 2025, UmweltBank AG significantly increased its net
interest income by 61.2% to EUR28.82 million (previous year: EUR17.88 million).
This development, which had already become apparent in the first quarter of
2025, is a result of the focus on expanding the deposit business. This can
be invested risk-free at the ECB with a risk-free interest margin of 100 to
120 basis points. In the first six months of 2025, intensified marketing
measures, the digitalisation that has now been implemented and the
introduction of attractive products led to an increase in private customer
deposits of EUR140 million. In the lending business, the second pillar of the
financial result, UmweltBank AG has recently taken a selective approach due
to the prevailing capital restrictions, which led to a decline in the
outstanding loan volume to EUR3.21 billion (31.12.2024: EUR3.46 billion).

In line with net interest income, net financial income remained at a high
level at EUR13.87 million (previous year: EUR17.95 million). While the previous
year's figure was influenced by the sale of six investments, UmweltBank AG
benefited in the first half of 2025 from profit distributions from the sale
of real estate by a subsidiary. The investment business, which had a balance
sheet value of EUR65.24 million as at 31 December 2024, is to be sold by 2026.
Net commission and trading income, UmweltBank AG's third revenue figure,
benefited from the sales success of existing and new products and increased
to EUR3.66 million (previous year: EUR2.33 million).

In particular, investments in IT as the basis for continuing the
transformation and digitalisation process caused operating costs to rise to
EUR35.33 million (previous year: EUR29.37 million). In addition, risk provisions
for customer loans rose to EUR4.01 million (previous year: EUR0.09 million),
resulting in pre-tax earnings for the first half of 2025 of EUR6.69 million
(previous year: EUR8.53 million), which is below the previous year's figure.

With the publication of its half-year figures, the management of UmweltBank
has confirmed its earnings forecast for the 2025 financial year.
Accordingly, pre-tax profit is expected to be between EUR5 million and EUR10
million. For the second half of the year, a further increase in net interest
income to between EUR60 million and EUR65 million, in net financial income to
between EUR18 million and EUR20 million and in net commission and trading income
to between EUR7 million and EUR11 million is expected. However, this will be
offset by further risk provisions in a range of EUR10 million to EUR15 million.

Particular focus is being placed on the expected increase in net interest
income, which is based on a planned expansion of the deposit business. This
is expected to grow significantly to EUR4.3 billion by the end of 2025
(30.06.2025: EUR3.5 billion). The 'UmweltGiro' checking account introduced in
June 2025, which is expected to attract a large number of new customers, is
expected to make a significant contribution to this. Also worth mentioning
is the end of the Bafin special representative's activities. Although the
capital requirements will remain in place for the time being, they could be
reduced in the future, which should have a positive impact on lending.

In line with the company's guidance, we have only made adjustments to the
2025 estimates. We are maintaining our medium-term estimates. The impact on
the determined fair value of the company is negligible and we confirm our
price target of EUR10.40 and BUY rating.



You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=d9d1f37e7ffc4ec589ea2abba99562c4

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
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Date (time) Completion: 12.08.2025 (8:17 am)
Date (time) first transmission: 12.08.2025 (11:30 am)

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2182760 12.08.2025 CET/CEST