UmweltBank AG Maintains BUY Rating Amid Strong Financial Performance

UmweltBank AG has reported a significant rise in total income for the first half of 2024, reaching €38.16 million compared to €31.20 million the previous year. This increase was driven by strategic sales of investment portfolios, including four wind farm investments and two property investments, which boosted the financial result to €17.95 million from €1.19 million in the previous year.

Earnings before taxes surged to €8.53 million, up from €3.11 million, with profit for the period climbing to €5.62 million from €1.49 million. This growth in income offset the rise in personnel and administrative costs, now at €29.37 million. The completion of a core banking system migration is expected to reduce future costs.

Despite increased expenses, UmweltBank's management has upheld its positive guidance for 2024, aiming for total income between €60 million and €65 million. The company's forecast anticipates substantial growth in net interest income and new lending business, with a target of €250 million by year-end.

UmweltBank AG continues to hold a BUY rating with a target price of €9.63 per share, reflecting a stable outlook and strategic advancements. The bank aims for a cost-income ratio below 60% by 2028, owing to ongoing digital transformation and efficiency improvements.