IuteCredit Finance S.à r.l. Iute Group Reports Unaudited Results for 6M/2026 – Profitable but Not Satisfied: Margin Pressure and Strategic Investment Define a Transitional Half-Year

Iute Group Reports Unaudited Results for 6M/2026

Profitable but Not Satisfied: Margin Pressure and Strategic Investment Define a Transitional Half-Year
STRATEGIC HIGHLIGHTS

• Continued build-out of the Myiute super app ecosystem: cumulative downloads reached 1,824,049 (6M/2025: 1,661,960, +9.8%) and 2,696,581 wallet transactions were processed (+4.7% year-over-year), underscoring the Group’s shift toward digital-first customer engagement.
• Insurance brokerage revenue up 59.6% year-over-year, now 5.7% of total revenue (6M/2025: 4.0%); standalone products (e.g. motor, health insurance) are targeted for later in 2026, further diversifying revenue beyond loan-linked distribution.
• Iute Bank Ukraine commenced operations for existing customers, launching the Myiute super app and enabling core products, including current accounts, deposits, IBAN transfers and FX.
• A EUR 140 million tap of the EUR 2025/2030 Senior Secured Bonds settled in early June 2026, deliberately brought forward from a planned September issuance to secure funding ahead of potential market volatility later in the year.
• Continued shift toward risk-based, quality-focused underwriting: loan application approval rate at 52% (6M/2025: 61.0%), prioritizing loan book quality over volume growth — consistent with sustained CPI30 improvement across all operating countries.

OPERATIONAL HIGHLIGHTS

• IuteCredit Moldova operating normally, serving existing customer base without interruption; only temporary limitation concerns digital onboarding of new customers, attributable to replacement of eKYC provider. Until approval of National Bank of Moldova, new customers onboarding through physical identification channels. Energbank has enabled digital customer onboarding since June 2026. Management is actively working with the relevant stakeholders to complete the eKYC provider transition and restore fully digital onboarding for new customers.
• Gross loan portfolio at EUR 397.0 million (+5.3% year-over-year; 31 Dec. 2025: EUR 377.0 million). Cost of risk improved to 7.7% (31 Dec. 2025: 7.8%) and underlying repayment discipline (CPI30) continued to improve to 89.3% (6M/2025: 87.9%), reflecting risk-based loan sizing and continued credit model refinement. Impairment coverage ratio at 70.5% (31 Dec. 2025: 73.7%).
• Energbank paid out dividends of approx. 3.0 million EUR to Iute Group AS (2025: 2.5 million EUR), bringing total dividend distribution to approx. 13.1 million EUR since acquisition in 2022.
• Physical footprint continued to shift digital-first: 25 Iute branches (6M/2025: 35) alongside ATM network growing 18.4% to 103 (6M/2025: 87).

FINANCIAL HIGHLIGHTS

• Total income up 11.1% to EUR 66.1 million (6M/2025: EUR 59.5 million), despite constrained loan origination in Moldova. Insurance income continued to outgrow wallet income, which remains Energbank-driven.
• Adjusted EBITDA up 26.3% to EUR 30.6 million (6M/2025: EUR 24.2 million).
• Interest income up 8.2% to EUR 53.4 million (6M/2025: EUR 49.3 million), despite constrained loan origination in Moldova
• Adjusted cost-to-income ratio at 33.6% (6M/2025: 37.7%).
• Net interest margin at 18.6% (6M/2025: 22.9%), reflecting higher funding costs following the EUR 140 million bond tap and continued APR compression.
• FX-adjusted net profit down 24.2% to EUR 3.8 million (6M/2025: EUR 5.0 million), reflecting constrained loan origination in Moldova, higher funding costs following 2025’s bond issuances and continued deposit growth, and Iute Bank Ukraine launch costs.
• Reported net profit down 38.2% to EUR 4.1 million (6M/2025: EUR 6.7 million) due to increase in costs of funding while comparison is further affected by non-recurring items (EUR 1.3 million North Macedonia solidarity tax refund in 2025) and substantially lower foreign exchange gain (EUR 0.3 million vs. EUR 1.7 million in 6M/2025).
• Both Eurobond covenants met: capitalization ratio at 22.6% (minimum 15%) and ICR at 1.50x (minimum 1.50x).

Tallinn, Estonia, 27 August 2026. Iute Group, a leading European personal finance group, reported today unaudited results for 6M/2026.

“H1/2026 was a period of margin pressure and persistent strategic investment for the Group. We continued transitioning to becoming the digital bank with the most-used superapp in every market in which we operate, growing revenue while investing in new capabilities and geographic expansion. Total income grew by 11.1% and adjusted EBITDA increased by 26.3%, though reported net profit reflects the higher cost of funding following our EUR 140 million bond tap in June. The underlying strength of our business model and our ability to generate cash are funding the continued growth”, said Tarmo Sild, CEO of Iute Group.

The full unaudited report for 6M/2026 is available at www.iute.com/investor/reports-and-presentations.
Earnings Call:

CEO Tarmo Sild and CFO Kristel Kurvits will comment on the unaudited 6M/2026 results by means of a webcast presentation today, 27 August 2026, 15.00 CEST. The webcast/call will be held in English.

Please register in time to participate in the webcast/call at:
Iute Group – Earnings Call 6M 2026.

The corresponding presentation will also be available on the Company’s website prior to the earnings webcast/call.
Contact:

Kristel Kurvits, Group Chief Financial Officer (CFO)
Email: investor@iute.com
Phone: +372 622 9177
About Iute Group:

Iute Group is a digital banking group focused on everyday financial services in Southeast Europe. Established in 2008 and headquartered in Estonia, Iute serves customers in Albania, Bulgaria, Moldova, North Macedonia, and Ukraine. Through the Myiute app and its local operations, Iute provides digital financial services including payments, banking, financing, and insurance intermediation. Iute Group finances its operations through equity, deposits, and secured bonds listed on the Regulated Market of the Frankfurt Stock Exchange and the Nasdaq Baltic Main List.

www.iute.com