Press release - Fiscal-year 2025 results: AFL Group delivers record results, doubling its net profit

Core Insights - AFL Group achieved record results in fiscal year 2025, doubling its net profit to €10.8 million, reflecting a 100% year-on-year increase [2][6] Financial Performance - Net banking income reached €30.8 million, up 28% year-on-year, while operating expenses increased by 8% to €17.5 million [2][3] - Gross operating income surged by 69% to €13.3 million, and net income before tax rose by 78% to €13.3 million [2][3] - The cost/income ratio improved to 64.4% from 67.8% in the previous year [2] Capital Structure - AFL Group's committed capital increased by 9% to €356 million, supported by four capital increases in 2025 [3] - The Common Equity Tier 1 (CET1) ratio stood at 59.45%, with the Tier 1 ratio at 61.33% [3][4] Liquidity Position - The liquidity reserve as of December 31, 2025, allows AFL to meet its needs for 12 months without market recourse, with a Liquidity Coverage Ratio (LCR) of 485% and a Net Stable Funding Ratio (NSFR) of 157% [5] Credit Activity - Outstanding loans reached €10.7 billion by the end of 2025, driven by competitive credit offers to shareholders [7] - Medium-long-term loan origination totaled €1.832 billion, with short-term credit lines amounting to €635 million [3] Market Position and Ratings - AFL's debt was upgraded to HQLA 1 in 2024, and in 2025, Fitch Ratings revised its long-term rating to A+ with a stable outlook, while S&P Global Ratings also adjusted its rating to A+/A-1 [10][13] - The average cost of funding narrowed significantly to 15.6 basis points above the OAT curve, down from 32.5 basis points in 2024 [8] Sustainable Finance Initiatives - AFL revamped its sustainable bond issuance framework in 2025, raising a cumulative total of €2.25 billion since 2020 through sustainable bonds [22][24] - The 2025 Sustainable Bond Report details the allocation and impact of funds raised, contributing to the United Nations Sustainable Development Goals [24][25]