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Original-Research: UmweltBank AG - from GBC AG

04.05.2026 / 10:00 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 Comment
Recommendation: BUY
Target price: EUR 9.00
Target price on sight of: 31.12.2026
Last rating change:
Analyst: Cosmin Filker, Marcel Goldmann

Q1 results largely in line with expectations; capital requirement reduced by
60 basis points, price target unchanged

In the first three months of 2026, UmweltBank AG reported a decline in net
interest income. This amounted to EUR12.53 million (previous year: EUR13.66
million). This consists of income from investments of retail customer
deposits (retail banking) as well as from lending (corporate banking). The
foundation for the retail banking business was further strengthened in the
first quarter of 2026 with an increase in customer deposits to EUR4,595
million (March 31, 2025: EUR3,930 million). The main driver of this growth is
the overnight deposit promotion (3.0% for the first three months) that has
been running since October 2025, which has led to a EUR718 million increase in
customer deposits over the past two quarters (Q4 2025 and Q1 2026). A key
feature of this special promotion, which is geared toward customer and
deposit growth, is a temporary reduction in the interest margin starting
from the respective deposit date. Only after the three-month period has
expired and starting from the seventh month (fourth to sixth month: 1.5%
p.a., from the seventh month currently 0.6%) a noticeable increase in the
interest margin begins. The majority of customer deposits acquired at the
end of 2025 and in the first quarter of 2026 were still predominantly within
the three-month term as of the first quarter of 2026. This effect was
somewhat offset by reallocations within the treasury portfolio, which were
made under slightly improved terms.

At the same time, the corporate banking business has not yet provided any
impetus for net interest income. Although approximately EUR36 million in new
loans were granted in the first quarter of 2026, outstanding environmental
loans declined slightly due to repayments, from EUR3,143 million as of
December 31, 2025, to EUR3,101 million. According to the company, the target
of EUR450 million in gross new lending is expected to be easily achieved. This
would increase the loan volume to EUR3.2 billion by the end of the 2026 fiscal
year. Currently, approximately EUR200 million in loans are in preparation and
another EUR70 million are in advanced negotiations. Additional loan inquiries
totaling EUR500 million are also expected to have a positive impact on new
business. Noteworthy in this regard is the entry in the first quarter of
2026 into the financing of battery energy storage systems, where loans
totaling approximately EUR15 million were granted for the first time. At the
same time, the scope for further loan growth has expanded. As part of a
review, BaFin reduced the bank's specific capital requirement by 60 basis
points, resulting in a total capital requirement of 14.97% effective April
2026. As of March 31, 2026, UmweltBank AG had a total capital ratio of
16.84%.

The significantly lower total revenue of EUR15.93 million in the first quarter
of 2026 (previous year: EUR27.56 million) is primarily attributable to the
decline in net financial income to EUR0.62 million (previous year: EUR12.38
million). The prior-year figure included a one-time effect from a profit
distribution by a subsidiary.

In light of the decline in total revenue, Umwelt-Bank AG reported a decrease
in pre-tax profit to EUR0.23 million (previous year: EUR10.23 million). This was
offset by a reduction in operating expenses to EUR15.57 million (previous
year: EUR17.15 million). In particular, with regard to other administrative
expenses, the company benefited from the elimination of costs for external
consultants as well as from lower IT costs. In general, the company is
pursuing a cost and efficiency program aimed at achieving further cost
savings of approximately EUR3.3 million, in addition to this effect
(consultants, auditors).

The figures released are largely in line with our expectations. However,
given the special terms, we had anticipated a slightly lower impact on the
interest margin. We are therefore slightly adjusting our expected net
interest income to EUR63.85 million (previous estimate: EUR66.28 million). This
aligns with the company's guidance, which now projects net interest income
between EUR60 million and EUR65 million (previously: EUR62.5 million to EUR67.5
million). However, this adjustment has only a marginal effect on the
expected pre-tax profit of EUR14.36 million (previous estimate: EUR14.65
million). On the one hand, we are raising the net commission and trading
income in light of upcoming product launches; on the other hand, we
anticipate slightly lower operating expenses. The estimates for the coming
fiscal years remain unchanged.

The slight forecast adjustment has no effect on the price target of EUR9.00
determined using the residual income model. We therefore maintain our "BUY"
rating.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=aa889d2613633f6c852978250cd339cc

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: 04.05.2026 (08:25 am)
Date (time) first transmission: 04.05.2026 (10:00 am)

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