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Addiko Bank AG reported its highest quarterly operating result under its new business model for Q3 2025, achieving €31.2 million. Despite this, the stock fell by 2.34%, reflecting mixed investor sentiment influenced by regulatory challenges and a slight decrease in net interest income.
Key Takeaways
- Record operating result of €31.2 million for Q3 2025.
- Net profit for the quarter reached €11.3 million.
- Stock price decreased by 2.34% post-earnings call.
- Digital innovation and product launches continue to drive growth.
Company Performance
Addiko Bank AG delivered a strong operating result of €31.2 million for Q3 2025, marking the highest quarterly achievement under its current business strategy. The bank’s net profit stood at €11.3 million for the quarter, contributing to a year-to-date net profit of €35.3 million. Despite these achievements, the bank faces challenges from a declining net interest income and increased regulatory pressures.
Financial Highlights
- Operating Result: €31.2 million (highest quarterly result under new model)
- Year-to-Date Operating Result: €82.9 million
- Net Profit Q3: €11.3 million
- Earnings per Share: €1.83
- Net Interest Income: €177.8 million (2.2% decrease YoY)
- Net Fee and Commission Income: €57.8 million (7.8% growth YoY)
Market Reaction
Following the earnings call, Addiko Bank’s stock price declined by 2.34%, reflecting investor concerns over regulatory impacts and a decrease in net interest income. The stock’s performance is in line with broader market challenges, including a difficult interest rate environment and competitive pressures.
Outlook & Guidance
Addiko Bank maintained its 2025 outlook, emphasizing a focus on digital transformation and product innovation. The bank is preparing a new midterm specialization program, aiming for sustainable growth in the consumer and SME segments. It also plans to address regulatory impacts strategically.
Executive Commentary
CEO Herbert Juranek expressed confidence in mitigating regulatory challenges, highlighting the bank’s strong capital position as a foundation for future growth. Business Segment Leader Ganesh noted 2025 as a transitional year for refining the SME business model.
Risks and Challenges
- Regulatory impacts could reduce revenue by €10 million.
- Decreasing net interest income amidst ECB rate cuts.
- Competitive pressures in SME and consumer lending markets.
- Potential shareholder structure changes.
Q&A
During the earnings call, analysts focused on Addiko Bank’s entry into the Romanian market and its digital expansion strategy. While the bank sees Romania as a growth opportunity, it does not expect significant financial contributions in the short term.
Full transcript - Addiko Bank AG (ADKO) Q3 2025:
Yusuf, Call Operator: Ladies and gentlemen, welcome to the Addiko Bank Results Q3 2025 conference call. My name is Yusuf, the course call operator. I would like to remind you that all participants will be in listen-only mode and that this conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star followed by one on your telephone. If you are participating via the audio webcast, you can write your questions in writing via the Q&A function on the webcast by pressing the Q&A button. For operator assistance, please press star and then zero. The conference must not be recorded for publication or for broadcast. At this time, it’s my pleasure to hand over to Herbert Juranek, CEO. Please go ahead.
Herbert Juranek, CEO, Addiko Bank AG: Good afternoon, ladies and gentlemen. I would like to welcome you to the presentation of the results of the third quarter 2025 of Addiko Bank AG on behalf of my colleagues Sara, Ganesh, Edgar, and Tadej. Let me show you today’s agenda. In the beginning, I will present to you the key highlights of our results. Ganesh will continue with our achievements on the business side. After that, Edgar will give you more details on our financial performance, and Tadej will inform you about the developments in the risk area. Finally, I will do a quick wrap-up before we go on to Q&A. Let’s start with a quite positive note. I’m happy to inform you that in Q3, we achieved a record operating performance.
With an operating result of EUR 31.2 million quarter to date due to a strong business performance of our team and due to good cost management. This represents the highest quarterly operating result so far achieved entirely under the new business model. On a year-to-date basis, the operating result ended up at EUR 82.9 million. Despite the significantly lower interest rate environment and based on our measures to manage the inflation-driven updrifts of our administrative costs. The strong business performance is based on a 17% growth rate in new consumer lending business and on a 9% growth rate in new SME lending business. However, the positive effects from new business were to a certain extent neutralized by lower income from variable backbook and national bank deposits, as well as by repayments of loans driven by aggressive competitor attacks.
Nevertheless, we were able to grow our net commission income by 7.8% year-on-year, or even at 12.5% if we compare the third quarter with the third quarter last year. Moreover, we managed to expand our active customer base by 5% year-on-year. Altogether, we could keep our net banking income stable, compensating the mentioned negative effects. Let’s briefly comment on our risk performance. We were quite successful in reducing our NPE volume further to EUR 140 million at the end of Q3 compared with EUR 145 million at the end of 2024. Our NPE ratio is kept stable at 2.9%, while our coverage ratio continued to improve to 82.2% from 80.8% at the end of June. Our cost of risk on net loans ended up at 0.7%, or EUR 25.5 million compared to EUR 25 million last year. Tadej will give you more details on the risk development later.
In summary, we achieved a net profit of EUR 11.3 million in Q3, which results in a year-to-date profit of EUR 35.3 million at the end of the third quarter 2025. Consequently, the return on average tangible equity stands at 5.6% and the earnings per share at EUR 1.83. The funding situation remained quite solid, with EUR 5.2 billion deposits and a loan-to-deposit ratio of 69%. Our liquidity coverage ratio is currently very comfortable, above 380% at group level. Finally, our capital position continues to be very strong, with a 21.3% total capital ratio, all in CET1 based on Basel IV regulations. What else is worthwhile to mention? As presented in our last earnings call, we have laid the operational foundation for our market expansion into Romania in the first half of 2025 and started our fully automated consumer lending business based on a very diligent and prudent risk approach.
On that basis, we have started at the end of August with a 360-degree marketing campaign to raise awareness, to build the brand, to position our product, and to start generating business. The campaign included TV and out-of-home advertising, as well as digital integrated marketing campaigns, and was able to create noise and positive reactions in the market. Despite significant parallel marketing efforts by incumbent banks, we view this initiative as a strong starting point for building our brand in a new market and as a solid foundation for continued marketing activities to drive sustained traction. Ganesh will provide further details in his section of the presentation. Now, let’s come to a different topic. In 2024, Addiko decided to get a listing on the Frankfurt Xetra platform to improve the trading liquidity and to increase the attractivity to a wider range of potential investors.
Now, after one and a half years, based on the very limited trading volume in Frankfurt and due to the given changes in the shareholding structure, we concluded to discontinue the Xetra listing in Frankfurt as of 1 January 2026, as the defined targets were not met. Concerning our ESG program, I would like to inform you that all initiatives are on track and progressing as planned. You will find more information in the appendix of the presentation. Next page, please. Unfortunately, I have to inform you about several unpleasant changes driven by local governments and local regulators with significant impacts to our business revenues. I will explain them country by country. In Croatia, we are confronted with a series of measures with severe impact on our earning capacity. As of 1 July this year, the Croatian National Bank introduced preventive macro-potential measures restricting consumer lending criteria.
Amongst other regulations, a debt-to-income ratio of 40% for non-housing loans was introduced. The effects of this new rule were already visible, with an approximately 30% reduction of our new Croatian consumer business generation in the third quarter vis-à-vis last year. Now, the experience with our respective vintages does not provide the evidence that such a measure was needed. Moreover, we anticipate detrimental consequences for the concerned customers, as those affected may be excluded with their loan demand from the banking system and covered with unregulated providers. Tadej will give you more background later on. Furthermore, the Finance Ministry of Croatia supported a new regulation to restrict and cut banking fees as of 1 January 2026. This means that we have to offer free account packages, which shall include opening, maintaining, and closing the account.
Internet and mobile banking, depositing money, issuing and using debit cards, incoming euro transactions, and executing payments with debit cards. Additionally, we have to provide a fee-free channel for cash withdrawals for all customers, while for pensioners and vulnerable client groups, both ATM and branch must be free of charge. On top of that, from 1 January 2027, two cash withdrawals on ATMs of other banks must be offered for free. All of that eats directly into our core business revenues, and one can ask the question, why do banks have to provide such core services for free? In Serbia, starting with the 15th of September. The National Bank of Serbia asked all banks to reduce the interest rate by 300 basis points to a maximum of 7.5% for citizens with an income of up to 100,000 Serbian dinar per month. This reflects almost the average salary in Serbia.
In addition, no loan processing or account maintenance fees shall be charged. Unfortunately, this will affect the vast majority of our customers. In the Republika Srpska, the banking agency decided to restrict specific banking fees. As of 9 June 2025, fees for credit party account maintenance, ATM account balance checks, and for sending warning letters for off-delayed payments are not allowed anymore. Finally, in Montenegro, effective 1 November 2025, a new regulation will introduce a debt-to-income cap of 50%. This will be accompanied by a restriction on maximum interest rates, limiting them to no more than 100% above the average consumer rate in the market, including non-payroll loans and credit cards. Now, to summarize, altogether, the measures depicted on this page would lead to an unmitigated potential impact of just above EUR 10 million on our revenue base.
Nevertheless, we are actively working on solutions to mitigate these effects and to create new offers to our customers to enable new growth opportunities. Now, with that, I would like to hand over to Ganesh to give you more insights on how we are reacting in this respect and, first of all, to inform you on our business development. Thank you, Herbert. Good afternoon, everyone. Moving to page six, I’m pleased to report strong third-quarter performance in our consumer segment, delivering 17% year-over-year growth in new business with a premium yield of 7.2%. This was achieved despite a persistently low interest rate environment and supported 9% year-over-year growth in the loan book. On the SME side, the new business origination grew 9% year-over-year with a solid yield of 5.1%. However, we continue to face a challenging market with competitors sharply lowering prices to stimulate demand.
This has prompted many existing clients to repay loans early, particularly those with higher fixed rates originated last year. As a result, the SME loan book declined 2% year-over-year, mainly due to reductions in large ticket medium-segment loans. I will share more updates on the SME turnaround plan on the next page. Overall, our focused loan book grew 5% year-over-year, and this focused book now accounts for 91% of our total loan portfolio, underscoring our strategy to prioritize high-return and scalable lending. Please turn to page seven for a detailed outlook. Let’s take a closer look at our consumer segment. Year to date, we have delivered double-digit growth while maintaining premium pricing driven by several key factors. Number one, strong market demand across our core geographies.
Number two, the launch of fully digital end-to-end lending with zero human interventions in four of our core markets clearly differentiates us from the competitors. Number three, our point-of-sale lending proposition continues to perform well, achieving 17% year-over-year growth. Number four, we have identified a sweet spot between growth and pricing, enabling us proactively to retain customers and the loan book through disciplined repricing actions. Number five, additionally, we are redesigning our mobile app, introducing new card features with Google Pay and Apple Pay integrations, which has contributed to an 8.5% year-over-year increase in net commission income. As Herbert mentioned, our business model has been affected by new regulatory restrictions. We are already implementing mitigation measures, including downselling, introducing core debtor structures, and focusing on high-quality customer segments with larger ticket size. Furthermore, we are developing a new specialist program that focuses on non-blending products, aiming at.
Fee-based income growth, and we will share more details once the program is launched. We are confident that these initiatives will not only offset regulatory headwinds but also strengthen the foundation for sustainable quality growth going forward. Over to SMEs. Our core business model remains unchanged. To be the fastest provider for unsecured low-ticket loans to underserved micro and small enterprises through our digital agents platform. As mentioned earlier, we are facing market challenges due to aggressive pricing, which has led to some loan book contraction. However, we are now seeing a recovery in the market demand, and to reignite growth, we have taken several strategic actions. Number one, our turnaround plan in Serbia, supported by a new leadership team, is delivering 20% year-over-year growth in new business. In fact, all countries are recording double-digit growth except for Slovenia.
Number two, we are placing strong emphasis on retaining quality clients and the loan book through better pricing, loan prolongations, and superior service delivery. Number three, we also have broadened our product range. While maintaining our focus on unsecured loans, we are also expanding to secured investment loans with slightly higher ticket sizes. Targeting both existing and new customers, this has resulted in a 69% year-over-year increase in investment loan volumes. Finally, we have launched a new digital SME tool to process high-ticket loans with greater speed and simplicity, providing a clear competitive advantage. Overall, we believe these initiatives position us well to return to sustainable growth in the SME segment going forward. Lastly, let me touch on our progress with AI adoptions. We are investing in AI technologies to enhance efficiency and customer experience across the organization.
Two AI-driven applications are already live, one supporting employees with HR-related inquiries and the other assisting our call center by analyzing customer inquiries, feedback, and creating responses. Additionally, we are exploring AI use cases in IT, risk, and marketing, further strengthening our operational excellence and data-driven decision-making. To summarize, 2025 is a transitional year, focusing on refining our SME business model and launching new USPs that enhance speed, convenience, and value across consumer and SME segments. These investments are essential, not only to drive future growth, but also to strengthen our specialization, stay ahead of the competition, compensate regulatory restrictions, and justify high-margin premiums in a low-interest rate environment. We are building the foundation for stronger, faster, and more profitable growth in the years ahead. Please let me hand over to Edgar. Thank you, Ganesh, and good afternoon, everybody.
Let’s turn to page nine for an overview of our performance in the first nine months of 2025. Despite the challenging interest rate environment and cost pressures, we delivered stable results supported by resilient consumer lending, strong fee income, and a robust capital position. Now, let’s take this one by one. Our net interest income came in at EUR 177.8 million, a slight year-on-year decrease of 2.2%. This marks a modest recovery compared to the 2.4% year-over-year decline as reported in the first half of this year. The decline was mainly due to the lower interest rate environment, which impacted income from our variable backbook, so roughly 14% of our book one-four, and on national bank deposits. As a reminder, the ECB implemented eight rate cuts since June 2024, totaling a reduction of 2 percentage points, a faster pace than we initially anticipated.
This also caused pressure on interest rates we can charge on new loans. Importantly, our consumer segment performed quite strong, with interest income up 7.3%. Driven by 9% growth in the consumer portfolio. Overall, the focused portfolio grew 5% year-on-year, slightly ahead of the previous quarter. On the fee side, we delivered solid growth. Net fee and commission income rose 7.8% to EUR 57.8 million, driven by bank assurance, accounts, and packages, as well as card business, which altogether grew 11.6% year-on-year, with bank assurance as a key contributor. Now, looking ahead, new regulations, respectively law in Croatia limiting fees on banking products will have an impact on fee generation going forward. Coming back to the end of the third quarter, as a result, net banking income remained stable at EUR 235.6 million, despite the challenging environment.
Our general administrative expenses, in short, OPEX, increased slightly to EUR 144.5 million, up just 1% year-on-year, and that mainly due to wage adjustments and operational updates, as well as increases. When excluding the EUR 3 million in extraordinary advisory costs related to takeover offers we had last year, operational costs were only up 3.2% year-over-year. Our cost-income ratio came in at 61.4%, which is a tad higher than last year. The operating result landed at EUR 82.9 million year-to-date, down only 0.8% year-on-year, supported by an exceptionally strong operational third quarter, as Herbert pointed out already. The other result, which includes costs for legal claims as well as for operational banking risks, remained manageable. We have allocated some additional provisions for new legal claims in Slovenia and made a small top-up in Croatia, also to reflect further increased lawyer costs.
The main point in Slovenia remains what the higher courts will rule upon regarding the applicable standard of limitation, and if that will be in line with the dominant legal opinions. As usual, during the fourth quarter, a further deep dive will be conducted in the context of the year-end audit. There is a possibility for some additions here. When it comes to risk costs, our expected credit loss expenses were EUR 25.5 million, which translates to a cost of risk of 0.7% on net loans year-to-date. Today, we’ll provide more insights in just about a moment. All in all, we delivered a net profit after tax of EUR 35.3 million for the first nine months. As of today, we do expect the fourth quarter contribution to be less pronounced. While operating in a challenging rate environment and managing high cost pressures, our focused business remains resilient.
We are seeing solid momentum in our consumer lending and fee-generating activities this year, while also SME lending has started to pick up again in September. Turning to page 10 and our capital position, which remains a real strength. Our CET1 ratio remained at a very robust 21.3% at the end of the third quarter. For context, that’s only slightly down from the 22% at the end of 2024, which was under Basel III rules. While the third quarter is calculated under the new Basel IV, or call it CRR III rules. You will notice that our risk-weighted assets increased, and that’s mainly driven by changes in risk-weighting under Basel IV, as well as the new interpretation of EBA guidelines on structural FX, which we already discussed on the back of the half-year results.
Looking ahead, we recently received the final SREP for 2026, which includes a small increase in our Pillar II requirement, up by 25 basis points to 3.5%, while the Pillar II guidance stays unchanged at 3%. In line with the draft that we disclosed earlier. In summary, our capital position is very strong, giving us a solid foundation for future growth and the flexibility to navigate regulatory changes with confidence. With that, I’ll hand over to Tadej for more on risk management. Thank you, Edgar, and good afternoon, everyone. Let me walk you through the credit risk section for the first three quarters of 2025. I’m glad I can report that in the first nine months, we achieved excellent collection from defaulted clients, surpassing our goals and positively impacting loan loss provisions.
At the same time, we managed risk rules dynamically and decisively to keep portfolio quality and MP inflow under control on the group level. All that led to the MP decrease, low MP ratio, and the level of loan loss provisions I will talk about on this and on the next page. As we see on the right-hand side of the slide, MP portfolio decreased by EUR 2.5 million in the last quarter, which brings it to the EUR 4.9 million decrease on a year-to-date basis. MP volume decreased to EUR 140 million, which is reflected in a stable MP ratio of 2.9%. Short-term MP initiatives are still ongoing, like, for example, further portfolio sale to dynamically drive further MP portfolio reductions. At this point, I would like to refer to local limitations that central banks are imposing and were before mentioned by Herbert, specifically DTI limitations.
Although these regulations will restrict more indebted and therefore higher risk clients from obtaining larger loans with banks, which will result in an improved consumer portfolio quality. The excluded clients do not have a risk profile that would not be acceptable for Addiko. For context, clients who are no longer eligible due to new regulation limits have on average a default rate twice as high as those that remain eligible. However, the default rates in both groups remain below 2%. Using nearly 10 years of consumer behavioral data, we know that clients who have become non-eligible demonstrate a risk profile well aligned with Addiko’s business model and profitability objectives. Before going to the next page, let me revisit a topic from the previous calls. This is consumer portfolio in Slovenia.
We see that smart risk restrictions implemented in the previous months have already a positive impact on the portfolio quality, which is getting gradually closer to our expectations. Let’s move on to slide 11. Loan loss provisions amounted to EUR 25.5 million in the first nine months of 2025, resulting in a cost of risk of -0.71% on net loans basis. Segment breakdown is as follows. In consumer, we recognized -0.7% cost of risk, and in SME, -1.3% cost of risk, while non-focus contributed to loan loss releases with a positive cost of risk of 1.6%. Development in SME segment was impacted by a black swan event, which represents almost one-fifth of loan loss provisions recognized in 2025. We talked about this case already in the previous earnings call.
Loan loss provisions also include additional post-model adjustments recognized in the third quarter in the amount of EUR 3 million. The post-model adjustments will be netted out by model changes that will take effect in the fourth quarter this year. This amount is in addition to EUR 1.2 million previously booked. Post-model adjustment to cover sub-portfolios where insufficient data is available for precise PD calibration. In conclusion, overall, Addiko’s risk position remains stable and resilient, further supported by strong collection performance and active portfolio management, resulting in a reduction of non-performing exposure and lower loan loss provisions. Thank you for your attention, and go back to Herbert. Thank you, Tadej. Let’s move on to the wrap-up. At the top of the slide, we present our current 2025 outlook figures. While our guidance is currently under review due to the potential impact coming from the regulatory front.
We have decided to maintain the stated outlook for 2025. We will update our guidance in line with the revised midterm plan and disclose it together with the year-end results for 2025 on the 5th of March, 2026. Now, we currently operate in a macroeconomic environment marked by global uncertainties, driven by conflicts such as the war initiated by Russia, shifting tariff conditions, and persistent supply chain disruptions. Europe and the European Union are very much affected by these developments. However, if we look at the markets where we are operating in, they are performing better than the EU average and are also expected to sustain this outperformance. On that basis, we will concentrate our efforts to further innovate our product offerings and services to our customers in order to initiate sustainable growth in both business segments, consumers and SMEs.
Therefore, we are working on the preparation of our new midterm specialization program, which shall be launched and presented to you in the first quarter of 2026. This program shall enable further optimization of our cost base, extend digitalization capabilities, and contain projects to exploit productive and profitable AI-based solutions. Altogether, we are confident to find the path to compensate the negative effects coming from the regulatory front and to prepare Addiko for future growth. Of course, by doing so, we will keep our prudent risk approach as one of our strategic anchors. Together with our dedicated team, we remain committed to delivering our best as we pursue our ambition to become the leading specialist bank for consumers and SMEs in Southeast Europe. On that basis, we will work with full energy to further improve the bank, to create value for our clients and for our shareholders.
With that, I would like to conclude the presentation. Our next earnings call to present to you the year-end results of 2025 is scheduled for the 5th of March, 2026. I would like to thank you for your attention. We are now ready for your questions. Operator, back to you. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and then 1 on their touchstone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press Star and then 2. Participants are requested to only use handsets while asking a question. Anyone who has a question may press Star 1 at this time. Our first question comes from Ben Maher from KWB. Please go ahead. Hi, thank you for taking my question.
I’ve got a couple. The first one’s just on Romania. I was just interested to get your views on why the market is seen as particularly attractive. Was it seen as an underserved consumer segment, or are there other reasons that you’re targeting a particular market for growth? I understand you’re going to give your targets for four-year results, but it’d be helpful just to get a sense of how important Romania will be as kind of a share of the business or a share of the loan book in kind of the terminal kind of state. My second question is just on the competitive pressures you note. Is this concentrated in a specific market, or is this seen across your footprint? The third question is just on capital. As you said, it’s very solid. I see the dividends still suspended.
I’m just interested for your thoughts on how you plan to monetize the excess capital next year. And then sorry, just final clarification. Was it a EUR 10 million unmitigated revenue impact from the regulatory changes? I think you said, but perhaps I misheard. Thank you. Okay, thank you for your question. Maybe we start one by one with Romania. I will give a brief feedback and maybe also, Ganesh, if you can then add your view on that. We consider Romania as an attractive market given the digital capabilities given to us, and also the stage of development of the market overall and the size of the market. If you consider our existing markets, we lack scale there because of the size of the given countries. We see that as an opportunity with our business model. We differentiate ourselves with.
A solution which is very, very efficient, straight through online. We differentiate ourselves also with the USP that customers do not need an account with us when they do business. I also have to admit that we are currently in a starting phase. We have a good engine, but our brand is not known. That is what we are currently focusing on, building up our brand there and getting traction on our business. Maybe Ganesh, if you want to add something. I think you mentioned well here, but additionally, we would like to expand this not just only on the B2C level. We are also looking at expanding other channels digitally going forward. We are exploring that options as well. We will be also enhancing the product features with more refinancing capabilities.
Yeah, there are more things we are working on which would help us to position more strongly than what we are today. I think to have it covered with the USP, there is a distinct proposition we have in Romania. Maybe just to add or conclude on the Romanian questions, if I remember all of them correctly. You asked about the impact or kind of the contribution in the results. This year, we are not expecting any noteworthy contribution. It is rather the opposite due to building up the engine and also having some kind of a marketing push, as we disclosed. There are costs. It will take a bit of time for a positive contribution to materialize, but overall, it is rather negligible in the short and near and short term. Okay, let’s go on to the second question.
The second one was, and Ben, shout if I misunderstood you, on the competitive pressure that we’re seeing, if this is specific markets or across the board. Thanks, Ben, for the question. Yes, on the SME level, we are seeing competition really pricing it quite low. They’re looking for low margins and higher volumes in the loan book. We have also, we faced this pressure already in a couple of quarters. We are also adjusting some price going forward and focusing on growth. You already saw we have recovered well with the growth around 9%. Yeah, I mean, we will continue to go forward. The competition is pricing across the markets, not just a specific market. We are seeing this quite extensively there. On the consumer side, obviously, the whole Euribor changes is reflecting a much more lower interest rate environment.
We see a big pricing pressure also in the consumer side. Additionally, if you heard Herbert, he also mentioned we have in Serbia a special situation where we have to drop our price 3% based on the new regulation. Yeah, a lot of pressure across the markets on the pricing side. The last question was on the capital and on the dividend. If I understood you correctly, the question was how is our view there and how do we want to continue here? According to the current situation, the shareholder situation did not change. Also, our perspective on the dividend is not changing. There is no change for the time being. What do we do with the additional capital? Of course, we will use it for further growth. On the other hand, if the situation with the
Shareholders would change, we would also return back to the payout. Our dividend policy did not change. We still are committed to the 50% payout ratio. As soon as the topic is solved, we would return to that. I think, Ben, you had one more question on the 10 million unmitigated potential top-line impact. I did not get the full question. Just checking that was the correct number. I was just going to make sure I did not mishear. It was that 10 million unmitigated revenue impacts. Yeah, it is just above 10 million. Okay, thank you. Next question comes from Miladin Dodic, Aster Bank. Please go ahead. Yes, good afternoon, gentlemen. Thank you for the call and congratulations on the third quarter. If you allow me, I am happy to see that in Serbia you have finally managed to.
Capture the decline, to arrest the decline in the credit portfolio. Congratulations to that too, as you explained. The moves with the interest rates are very difficult to grasp also in Serbia. Again, it is a market battle. I already wrote my questions in the Q&A, so I will try to repeat them. IR sensitivity and breakdown of fixed and variable interest rate arrangements. If I am not mistaken, that slide is missing in the presentation or not? Mladen, hi, good to have you on the call. This is Edgar speaking. You are absolutely right. It is missing because we only publish it on a half-yearly basis. If you would go back to the half-year results, I think it is page 34 or 35 or something, you would actually have it there. Given the structure of a balance sheet, it has not changed much. It has not changed. It has not changed.
Yeah, not much. So 14.14% is variable in our total loan book. The call, I already asked about Romania. You said a couple of things about this specialization program. Looking to extend the digital proposition efficiency and AI-based solutions. Any other details, maybe duration or anything else on this? Yeah. I mean, we will disclose it next year, and we are currently in the process of finalizing our new midterm plan, and the specialization program will be part of that. It is still under construction, but it will have three different layers, the program. It will be a midterm program, so it will last at least two years, potentially a bit more. It is intended to bring the bank to the next level, and we will present it then together with the year-end result in 2026. Thank you.
You already talked about the dividend and the shareholder structure. Could you tell us anything? I bet you can, but I need to ask. Is there any kind of event on the horizon that might trigger either the recall of this recommendation or some other action by the regulator? We are not aware about anything which would release or change our perspective on the dividend for the time being. We are also prepared, as I said beforehand, if the shareholder situation would change, we would be also ready to take actions on our side and to adjust accordingly. If there was something already known today, we would, of course, disclose it. Thank you. Final question regarding Romania. I was recently in Bucharest and wanted to ask you, could it be possible that I heard commercial on Addiko on the radio? Yeah, this could be well.
Possible because, as I said beforehand, we started our marketing campaign in August. We will continue with this marketing campaign. It also includes radio and TV. Yeah, I was driving there and I heard something on radio because I do not know one word of Romanian, but I think I recognized Addiko. Good that you recognized it. Yeah, yeah. As you said, you are there, but it takes time. Good. That is all from my side. Thank you very much. Sorry for this mess up with the call. Obviously, I changed recently my computer, so probably. No problem. All good, Mladen. Thank you very much for participating. Thank you. Any other questions? Ladies and gentlemen, that was the last question from the phone line. I would now like to turn the conference back over to Sara for questions on the webcast. Thank you, operator.
We have not received any further questions on the webcast. I’m handing over to Herbert for closing. In this case, I would thank you very much for your attention. All the best from our side, and we hear each other in March next year with our year-end results. Thank you very much for attending. Ladies and gentlemen, the conference is now over. Thank you for choosing Korescall, and thank you for participating in the conference. You may now.
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