Interim report
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a Interim Information for the six-month period ended 30 June 2026
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CONTENTS ACTIVITY RESULTS ...............................................................................................................................................................................................................................................4 REGARDING EXTERNAL ENVIRONMENT FACTORS .........................................................................................................................................................................................5 RATINGS .................................................................................................................................................................................................................................................................5 RISK MANAGEMENT, COMPLIANCE WITH PRUDENTIAL REQUIREMENTS ....................................................................................................................................................5 AUTHORIZED CAPITAL, SHAREHOLDERS .........................................................................................................................................................................................................5 DIVIDENDS .............................................................................................................................................................................................................................................................7 AGREEMENTS WITH SECURITIES PUBLIC TRADING INTERMEDIARIES ........................................................................................................................................................8 EMPLOYEES ...........................................................................................................................................................................................................................................................8 MANAGEMENT OF THE BANK ..............................................................................................................................................................................................................................9 THE COMMITTEES FORMED WITHIN THE BANK, AREAS OF THEIR ACTIVITIES ........................................................................................................................................ 10 COMPANIES COMPRISING GROUP .................................................................................................................................................................................................................. 11 OTHER INFORMATION, PUBLISHED INFORMATION AND MAJOR EVENTS ................................................................................................................................................. 12 MANAGEMENT BOARD DECLARATION ........................................................................................................................................................................................................... 13 CONDENSED INTERIM FINANCIAL STATEMENT ............................................................................................................................................................................................ 14 THE GROUP’S AND THE BANK’S CONDENSED STATEMENTS OF FINANCIAL POSITION.......................................................................................................................... 15 THE GROUP’S AND THE BANK’S CONDENSED INCOME STATEMENTS ...................................................................................................................................................... 16 THE GROUP’S AND THE BANK’S CONDENSED INCOME STATEMENTS FOR QUARTER ........................................................................................................................... 17 THE GROUP’S AND THE BANK’S CONDENSED STATEMENTS OF COMPREHENSIVE INCOME ............................................................................................................... 18 THE GROUP’S AND THE BANK’S CONDENSED STATEMENTS OF COMPREHENSIVE INCOME FOR QUARTER .................................................................................... 18 THE GROUP‘S CONDENSED STATEMENT OF CHANGES IN EQUITY ........................................................................................................................................................... 19 THE BANK’S CONDENSED STATEMENT OF CHANGES IN EQUITY .............................................................................................................................................................. 19 THE GROUP’S AND THE BANK’S CONDENSED STATEMENTS7 OF CASH FLOWS ..................................................................................................................................... 20 GENERAL INFORMATION .................................................................................................................................................................................................................................. 21 NOTE 1 LOANS TO CUSTOMERS AND FINANCE LEASE RECEIVABLES ..................................................................................................................................................... 22 NOTE 2 SECURITIES .......................................................................................................................................................................................................................................... 24 NOTE 3 SIGNIFICANT INFORMATION ON CHANGES IN OTHER ASSET ITEMS .......................................................................................................................................... 26 NOTE 4 DEPOSITS FROM CLIENTS ................................................................................................................................................................................................................. 26 NOTE 5 SIGNIFICANT INFORMATION ON CHANGES IN OTHER LIABILITIES ITEMS .................................................................................................................................. 27 NOTE 6 CAPITAL ................................................................................................................................................................................................................................................ 27 NOTE 7 NET INTEREST INCOME ...................................................................................................................................................................................................................... 29 NOTE 8 NET FEE AND COMMISSION INCOME ................................................................................................................................................................................................ 29 NOTE 9 OTHER OPERATING EXPENSES ........................................................................................................................................................................................................ 29 NOTE 10 IMPAIRMENT LOSSES ....................................................................................................................................................................................................................... 30 NOTE 11 SIGNIFICANT INFORMATION ON OTHER INCOME STATEMENT ITEMS ...................................................................................................................................... 31 NOTE 12 RELATED-PARTY TRANSACTIONS .................................................................................................................................................................................................. 32 NOTE 13 LIQUIDITY, MARKET AND OPERATIONAL RISKS ............................................................................................................................................................................ 33 NOTE 14 FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ............................................................................................................................................. 35 NOTE 15 SEGMENT INFORMATION ................................................................................................................................................................................................................. 36 NOTE 16 SELECTED INFORMATION OF FINANCIAL GROUP ........................................................................................................................................................................ 37 NOTE 17 SUBSEQUENT EVENTS ..................................................................................................................................................................................................................... 38 CONFIRMATION FROM THE RESPONSIBLE PERSONS ................................................................................................................................................................................. 39
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Artea bankas FINANCIAL SUMMARY 30 June 2026
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FINANCIAL SUMMARY 4 ACTIVITY RESULTS Profit. In the first half of this year, the Group earned a net profit of EUR 23.2 million Deposit portfolio. The deposit portfolio grew by 15% during the year, exceeding EUR 4 billion Loan portfolio. The loan portfolio exceeded EUR 3.9 billion and increased by 8% during the year Fee and commission income. Net fee and commission income increased by 6% year-on-year to over EUR 16 million Asset quality. The quality of the loan portfolio remains strong – the cost of risk (CoR) stood at 0.01% Management change. After the reporting period Tomas Varenbergas has taken over as Acting CEO and Chair of the Management Board at Artea Bank “Business growth is accelerating in the second quarter of the year , driven by robust new lending in the corporate and mortgage segments with loan book approaching EUR 4 billion. Interest income was complemented by strong fee and commission income. Growth and strength of our core lending business delivered solid adjusted net profit results, although they were affected by the one -off, non -cash goodwill impairment stemming from the pension reform and linked to the former merger of retail asset management business,” says Tomas Varenbergas, acting CEO of Artea Bank. The Artea Bank Group earned EUR 23.2 million in net profit in H1 2026, 27% less than in the same period of 2025. Operating profit before impairment and income tax amounted to EUR 40.6 million, down 5% compared to H1 2025 (EUR 42.9 million). Net interest income increased by 6% year-on-year to over EUR 72.5 million, compared to H1 2025, while net fee and commission income increased by 6% to EUR 16 million. Demand for financing increased at the first half of the year – new loan agreements worth almost EUR 1.0 billion were signed in the first half of this year, 3% more than in the same period a year ago. The loan portfolio has grown by 7% ( EUR 250 million) since the start of the year, or 8% year-on-year, exceeding EUR 3.9 billion. Quality of the loan portfolio remains strong: EUR 0.3 million impairment loss provisions were formed in the first half of 2026 (EUR 4.2 million in the first half of 2025). The cost of risk (CoR) ratio stood at 0.01% at the end of H1 2026 (0.24% at the end of H1 2025). The customer deposit portfolio has grown by 3% ( EUR 99 million) since the start of the year, or 15% year -on-year, and exceeded EUR 4 billion at the end of the half. During the first half of this year, the demand deposit portfolio grew by 11% ( EUR 231 million) to EUR 2.3 billion, while the time deposit portfolio decreased by 7% (EUR 132 million) to EUR 1.8 billion. The Group’s cost/income ratio at the end of H1 2026 was 56.8% (55.2% at the end of H1 2025) and return on equity was 7.8% (11.1% in the corresponding period of 2025). Capital and liquidity positions remain strong. All regulatory requirements and prudential ratios are being met by a wide margin to ensure resilience to market volatility: Total Capital Ratio (TCR) stood at 21.5%¹ and Liquidity Coverage Ratio (LCR) at 179%1. Overview of business segments Corporate clients Corporate client activity reflected the usual seasonal slowdown at the beginning of 2026, but the second quarter already brought a significant recovery in both new customer acquistion and new corporate financing volumes. New corporate financing agreements worth EUR 0.4 billion were signed in the second quarter, up by 71% compared to the first quarter, bringing the total value of new agreements to EUR 0.6 billion since the start of the year. The overall corporate loan portfolio exceeded EUR 2.1 billion, a 9% increase year-on-year. Loan portfolio quality remained very strong, with a corporate loan CoR of -0.01% in the first half of 2026. Bond issuance activity in the Baltic states notably increased in the second quarter of 2026 returning to active phase following a typically quieter start to the year. Artea Bank took a leading position among Baltic intermediaries, with the highest number of issuances. This confirms that the ambitious pipeline of potential issuances is translating into transactions, with both issuer confidence in capital markets and investor demand for bonds remaining strong. Private clients Demand for mortgages remained particularly strong, with new mortgage agreements up 9% in the second quarter to EUR 69 million, bringing the total value of new agreements to over EUR 0.1 billion since the start of the year. The mortgage portfolio increased 7% (EUR 74 million) in the 2026, or 10% year-on-year, exceeding EUR 1.1 billion. Demand for consumer financing also remained strong, with new consumer loan agreements up 16% in the second quarter to EUR 66 million, bringing the total value of new agreements to over EUR 0.1 billion since the start of the year. In the first half of 2026, following the pension reform, portion of the funds withdrawn under the pension reform was used to repay consumer loans. Despite that consumer loan portfolio grew 1% ( EUR 5 million) in the first half of the year, or 5% year -on-year, exceeding EUR 0.38 billion. As the periodic withdrawals from Pillar 2 pension funds introduced under the Pension reform continues, Artea Asset Management again demonstrated the strongest resilience in the market and stood out among other fund managers by retaining the relatively largest share of assets under management as was also the case after the first quarter of this year. After the second quarter, the number of clients withdrawing from Pillar 2 pension funds was four times lower than after the previous quarter. The impact of client outflows in the second quarter was partly offset by strong investment management performance and notable inflows into Pillar 3 pension funds. The Artea ETF Select service, launched at the start of 2026 and enabling clients to invest in professionally selected ETFs without transaction or custody fees , continued to show strong growth in Q2. The significant number of investors confirms the trend of investors increasingly opting for simple, transparent and cost -efficient investment solutions, driving rapid growth in the passively managed ETF segment in Lithuania. 1 Preliminary data
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FINANCIAL SUMMARY 5 REGARDING EXTERNAL ENVIRONMENT FACTORS The Bank constantly monitors the tense geopolitical situation to ensure timely assessment of the potential impact of russia's invasion of Ukraine, the conflicts in the Middle East or other geopolitical conflicts on its operations and the quality of its loan portfolio, taking into account the related risks to clients. The Bank does not carry out activities in russia, Belarus, Ukraine or the Middle East and does not have significant direct exposures in these countries. The Bank assesses the secondary risk arising from the potential insolvency of clients in Lithuania related to the geopolitical situation as low: the Bank's largest customers are aware of the potential threats, the Bank does not have significant debtors that would strongly depend on trade relations with Ukraine, russia, Belarus or the Middle East. In order to identify potential new risks in a timely manner, the Bank applies internal procedures, monitors early warning indicators (EWIs) for clients whose activities through supply, sales or ownership structures are moderately or more dependent on the geopolitical environment, and when risks increase significantly, adds clients to the monitoring list, apply enhanced supervision and approve risk mitigation act ion plans. The greatest uncertainty and potential negative impacts arise from the tertiary impact – the impact of geopolitical factors on the wider economy. Scenario analysis and stress testing show that the Bank's capital position remains robust and capable of withstanding severe economic disruptions. Bank's enhanced monitoring includes not only credit risk, but also liquidity (no ongoing significant negative impacts identified), business continuity and IT security (updated plans, enhanced cyber security measures and ongoing testing), as well as sanctio ns compliance processes, which are subject to ongoing review amidst evolving international sanctions packages and can sometimes lead to longer execution time of operations. The Bank has no direct investments in russia, Belarus, Ukraine or the Middle East, and the open currency position in these jurisdictions is negligible. The Bank also closely monitors other geopolitical trends and stands ready to take immediate action in the event of significant developments. RATINGS On 21 April 2026, the international rating agency Moody’s Ratings (Moody’s) upgraded AB Artea bankas long-term deposit rating from Baa1 to A3 and revised the outlook from stable to positive. Moody's also revised the outlook on AB Artea bankas senior unsecured debt rating from stable to positive, while affirming the Baa1 rating . Regarding stable financial outlook in Lithuania Moody’s also affirmed baa3 Baseline Credit Assessment (BCA), A3/P -2 long and short -term Counterparty Risk Ratings (CRR), and A3(cr)/P-2(cr) long and short-term Counterparty Risk Assessments (CRA). RISK MANAGEMENT, COMPLIANCE WITH PRUDENTIAL REQUIREMENTS High operational efficiency is maintained. Capital and liquidity position remain robust - prudential requirements are implemented with adequate reserve. According to the data as of 3 0 June 2026 the Bank complied with all the prudential requirements set out by the supervisory authority. The main financial indicators of the Group: 2022.12.31 2023.12.31 2024.12.31 2025.06.30 2025.12.31 2026.06.30 ROAA, % 1.7 1.7 1.6 1.2 1.1 0.8 ROAE, % 16.1 15.5 14.0 11.1 10.4 7.8 Cost to income ratio, % 41.7 43.5 47.1 55.2 58.8 56.8 Loan to deposit ratio, % 94.6 92.7 101.1 104.0 93.8 97.6 Net Interest Margin % 3.2 4.1 3.7 2.9 2.6 2.4 At the end of Q2 202 6 were effective MREL requirements determined in January, 2026 at Financial group level, which is valid since January: • The minimum requirement for own funds and eligible liabilities of the resolution entity with which the Financial group shall comply is 23.59% of total risk exposure (MREL-TREA) and 7.42% of leverage ratio exposure (MREL -LRE); • Subordinated instruments shall comprise 13.50% of total risk exposure (MREL- TREA, subordinated) and 7.42% of leverage ratio exposures (MREL -LRE, subordinated) Data on indicators are also available on Artea Bankas website: on operating profitability indicators: Homepage › Bank Investors › Financial Information › Profitability Ratios prudential requirements: Homepage › Bank Investors › Financial Information › Prudential Standards The description of alternative performance indicators: Homepage › Bank Investors › Financial Information › Alternative Performance Measures AUTHORIZED CAPITAL, SHAREHOLDERS The rights granted by the Bank's shares are specified in the Bank's Articles of Association, which are available on the Bank's website. Homepage › About Us › Important Documents As of 30 June 2026, the number of shareholders of the Bank was 21 ,165 (30 June 2025 – 20,357). More detailed information about capital is provided in Note 6 to the Financial Statements. The change in share capital is presented below . Authorized capital: 2015.09.14 2016.05.26 2017.06.06 2018.06.01 2018.12.13 2023.12.15 2025.08.13 Capital, EUR 91,226 109,472 131,366 157,639 174,211 192,269 189,196
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FINANCIAL SUMMARY 6 A breakdown by type and residency as at the end of the reporting period is presented below: Shareholders owning more than 5% of the Bank‘s shares and votes as of 30 June 2026: Share of shares and votes, % Invalda INVL AB, c.c. 121304349 19.94* Tesonet Global, UAB, c.c.. 305475420 9.86 EBRD, LEI code 549300HTGDOVDU60GK19 7.37 UAB Willgrow, c.c.. 302489393 6.59 Algirdas Butkus 5.48* Gintaras Kateiva 5.06** * Votes are counted together with controlled companies: UAB Prekybos namai "AIVA", tax number 144031190 – 1.84%, UAB "Mintaka", tax number 144725916 – 0.81%. ** Votes are counted together with spouses. Securities transfer restrictions apply. For employees who are granted Bank shares as part of their annual variable remuneration, the shares received have a retention period. The shares may be transferred, pledged or otherwise disposed of only one year after their grant. Information on shares: On March 12, 2026, Tesonet Global executed and closed the share sale -purchase agreement with Willgrow UAB (“Willgrow”), acquiring a 2.52% stake in the Bank at a purchase price of EUR 1.1012 per share. This initial transaction brings Tesonet Global's current post-closing ownership to 9.86%. On March 12, 2026, Tesonet Global executed and closed the share sale -purchase agreement with Willgrow UAB (“Willgrow”), acquiring a 2.52% stake in the Bank at a purchase price of EUR 1.1012 per share. This initial transaction brings Tesonet Global's current post-closing ownership to 9.86%. On the same date, Tesonet Global also signed conditional agreements to acquire additional shares in Artea Bankas from multiple existing shareholders. These include agreements to acquire all shares held by Willgrow (representing the remaining 6.59% stake in the Bank), Algirdas Butkus (including related parties, in total holding 5.48% of shares in the Bank), Darius Vyšniauskas (including related parties, in total holding 2.33% of shares in the Bank) and Arvydas Salda (including related parties, in total holding 1.59% of shares in the Bank), and part of shares in the Bank from Gintaras Kateiva (including related parties, selling 4.60% of its shares in the Bank) and from AB “Invalda INVL” (selling 1.22% of its shares in the Bank from its total 19.94% stake). The purchase price will be determined at closing based on the Bank's most recently disclosed book value per share, multiplied (i) by the number of shares sold by each respective shareholder and (ii) by a coefficient of 1.2x, as set forth in the agreements. The acquisition of the shares will be executed through a series of transactions and will be subject to regulatory and other necessary approvals (e.g., approvals from the European Central Bank, the Bank of Lithuania, etc.). Tesonet Global aims to complete the transactions under conditional agreements until the end of the first quarter of 2027. Additionally, Tesonet Global announced its intention to apply for regulatory clearance from the European Central Bank to ultimately acquire a controlling stake in the Bank. Subject to receiving this approval, Tesonet Global will evaluate further market transactions to achieve a controlling shareholding. 2022.12.31 2023.12.31 2024.12.31 2025.06.30 2025.12.31 2026.06.30 Capitalization, m EUR 412.1 459.5 546.3 566.9 614.6 569.5 Turnover, m Eur 101.9 52.0 53.1 26.8 87.7 27.8 Share price on the last trading session day 0.686 0.693 0.824 0.855 0.942 0.873 Lowest share price during the reporting period 0.515 0.607 0.667 0.818 0.791 0.853 Highest share price during the reporting period 0.792 0.750 0.832 1.000 1.000 0.967 Average share price during the reporting period 0.623 0.667 0.730 0.904 0.871 0.916 Share book value 0.739 0.822 0.885 0.870 0.927 0.920 P/BV 0.93 0.84 0.93 0.98 1.02 0.95 P/E 6.1 6.1 6.9 8.9 10.1 12.3 * description of indicators is provided on the Bank's website: Homepage › Bank Investors › Financial Information › Alternative Performance Measures Legal entities 64.44% Individuals 35.56% Shareholders by type LT investors 74,64% Foreign investors 25,36% Shareholders by residence
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FINANCIAL SUMMARY 7 Turnover and price of the Bank's shares during 2023 - 2026: The Bank’s shares are listed on a regulated market. They are traded on the Nasdaq Baltic market, and the shares are included in the Official List. As one of the most actively traded shares in the Baltic market, the Bank’s shares are included in the Nasdaq indices: • OMX Baltic Benchmark (OMXBBGI, OMXBBPI) – a Baltic comparative index composed of the largest capitalization and most liquid shares from all sectors traded on the Nasdaq Baltic stock exchanges; • OMX Baltic 10 (OMXB10) – a Baltic trading index composed of the 10 most liquid shares listed on the Baltic stock exchanges; • OMX Baltic (OMXBBGI, OMXBBPI) – a Baltic index including companies listed on the Official and Supplementary lists of all Baltic stock exchanges, excluding companies where a single shareholder owns 90% or more of the shares; • OMX Vilnius (VILSE Index) – a Vilnius index composed of all shares listed on the Official and Supplementary lists of the Vilnius stock exchange, excluding companies where a single shareholder owns 90% or more of issued shares; • OMX Baltic Financials (B8000GI, B8000PI, B40PI) – a Baltic index for financial institutions; • OMX Baltic Banks (B8300GI, B8300PI) – a Baltic banking index. Total return indices (GI) show the overall return of the included shares, reflecting not only changes in share prices but also paid dividends. These indices are therefore considered a more comprehensive measure of market performance than price indices. Price indices (PI) reflect only changes in the prices of shares included in the index, excluding dividends. For capped indices (CAP), a maximum allowable weight is set for constituent shares; if this limit is exceeded, the number of shares included in the index is reduced to the allowed cap. In addition, the Bank’s issued shares are included in the following indices: STOXX All Europe Total Market, STOXX EU Enlarged TMI, STOXX Eastern Europe 300, STOXX Eastern Europe 300 Banks, STOXX Eastern Europe Mid 100, STOXX Eastern Europe TMI, STOXX Easte rn Europe TMI Small, STOXX Global Total Market, STOXX Lithuania Total Market, Bloomberg ESG Data Index, Bloomberg ESG Coverage Index, S&P Frontier BMI Index, MSCI Frontier and Emerging Markets Select Index, FCI EMU MIDSMALLCAP MKTCAP -CONSTRAINED (FREE -FLOAT UNADJUSTED) 400 (NET) Index, and several FTSE Russell Frontier indices. DIVIDENDS On 31 March 2026 ordinary general meeting of shareholders made a decision to pay EUR 0.047 dividends per one ordinary registered share with EUR 0.29 nominal value each. On 31 March 2025 ordinary general meeting of shareholders made a decision to pay EUR 0.061 dividends per one ordinary registered share with EUR 0.29 nominal value each. Information on the dividends paid: The year for which dividends are declared and paid 2021 2022 2023 2024 2025 Per cent from nominal value 11.72 9.14 16.72 21.03 16.21 Dividend amount per share, Eur 0.034 0.027 0.049 0.06 0.047 Dividend amount, Eur 20,424,693 15,919,246 32,094,273 39,796,332 30,394,000 Yields from dividends, % 4.5 3.9 7.0 7.4 5.0 Dividends to Group net profit, per cent 37.0 25.0 37.3 50.5 52.2 The description of alternative performance indicators is available on the Bank's website at: Homepage › Bank Investors › Financial Information › Alternative Performance Measures - 500 000 1000 000 1500 000 2000 000 2500 000 0.85 0.95 1.05 1.15 1.25 1.35 1.45 1.55 Apyvarta mEUR ROE1L OMXBBPI
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FINANCIAL SUMMARY 8 AGREEMENTS WITH SECURITIES PUBLIC TRADING INTERMEDIARIES Agreements with public circulation intermediaries regarding the accounting of securities issued by the Bank are not concluded. This accounting is made by the Bank’s Financial Markets accounting unit. The Bank has not entered into market - making agreements with respect to securities issued by the Bank. According to data as of 3 0 June 2026 the Bank itself, as an intermediary of public trading, under agreements with the companies issuing securities conducted accounting of 796 companies which totaled to 1,27 3 securities issues (including shares of public and private companies, debt securities, investment fund units). The Bank also conducts market making on the Nasdaq Baltic under a market making program and under agreements with issuers. As of the end of second quarter of 2026, the Bank was the market maker of 4 securities issues. EMPLOYEES On 30 June 2026, the Bank employed 1,150 people, and the Group employed 1,290 people (working under fixed -term and permanent employment contracts, including employees on maternity and childcare leave). On 30 June 2025 the Bank employed 1,128 people, and the Group employed 1,277 people. On 30 June 2026 77.8% of the Group's employees were women and 22.2% were men (on 30 June 202 5 78.1% of the Group's employees were women and 21. 9% were men). Average monthly salary of the Bank's and Group's employees, before taxes: Information on the annual variable remuneration, before tax, of the Bank's and some of the Group's companies' identified employees whose professional activities have a significant impact on the nature of the Bank's and the Group's risks. Bank Group 2025.12.31 remaining unpaid deferred annual variable remuneration: - in cash, thousand EUR - - - shares, thousand units. 5,091 5,793 Annual variable remuneration for 2025, as determined in 2026: - in cash, thousand EUR 512 734 - shares, thousand units. 792 932 Annual variable remuneration paid in the first half of 2026: - in cash, thousand EUR 512 734 - shares, thousand units. 955 1,179 2026 remaining unpaid deferred annual variable remuneration: - in cash, thousand EUR - - - shares, thousand units. 4,928 5,546 Bank Group Leading Employees Other Employees Leading Employees Other Employees Average number of employees Average salary per month, EUR Average number of employees Average salary per month, EUR Average number of employees Average salary per month, EUR Average number of employees Average salary per month, EUR 2026 H1 78 11,816 1,011 3,748 109 11,085 1,101 3,746
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FINANCIAL SUMMARY 9 MANAGEMENT OF THE BANK The Management Board bodies of the Bank are as follows: the General Meeting of the Shareholders of the Bank, Supervisory Council of the Bank, Management Board of the Bank and Chief Executive Officer (CEO). Term of office of the current Supervisory Council of the Bank 2024 – 2028. On March 2026, Ulrik Lackschewitz was elected as an independent member of the Bank’s Supervisory Council by a resolution of the Bank's General Meeting of Shareholders. He started his duties upon receiving permission from the Bank’s supervisory authority on 22 June 2026. At the General Meeting of Shareholders held on 31 March 2026, a decision was made to remove Susan Gail Buyske from the Bank’s Supervisory Council. The resolution stipulates that the date of removal of independent Supervisory Council member Susan Gail Buyske shall be the day when the newly elected member, Ulrik Lackschewitz, receives permission from the supervisory authority to hold the position of member of the Supervisory Council. Accordingly, the date of Susan Gail Buyske's removal from the Supervisory Board of the Bank is considered to be 22 June 2026. On March 2026, Eglė Eidimtaitė was elected as a member of the Bank’s Supervisory Council by a resolution of the Bank's General Meeting of Shareholders. She will commence her duties upon receiving permission from the Bank’s supervisory authority. At the General Meeting of Shareholders held on 31 March 2026, a decision was made to remove Mindaugas Raila from the Bank’s Supervisory Council. The resolution stipulates that the date of removal of Supervisory Council member Mindaugas Raila shall be the day when the newly elected member, Eglė Eidimtaitė, receives permission from the supervisory authority to hold the position of member of the Supervisory Council. On 14 May 2026, the Supervisory Council oft he Bank elected Rimvydas Mockus and Oleg Marofejev as new members of the Bank's Management Board, who will take up their duties as members of the Management Board subject to the approval of the supervisory authority. Based on the decisions of the Bank's Management Board and Supervisory Council adopted on 25 May 2026: • Vytautas Sinius is revoked from the positions of Chief Executive Officer (CEO), member of the Management Board, and Chair of the Management Board of the Bank as of 9 July 2026 (last day in these positions) • Tomas Varenbergas is appointed as the acting Chief Executive Officer (until appointment of a permanent CEO) and elected as Chair of the Management Board as of 10 July 2026 (first day in new positions) . Following Tomas Varenbergas appointment as Acting CEO, Paulius Daukša is appointed to replace him as Acting Head of the Finance Division (until a permanent appointment is made), effective 10 July 2026 . On 14 July 2026 by a decision of Supervisory Council Ulrik Lackschewitz was appointed as a member of the Internal Audit Committee and a Chair of the Risk Committee (instead of Susan Gail Buyske). The Bank’s Supervisory Council, whose term of office expires on the day of the Ordinary General Meeting of Shareholders of th e Bank in 2028, composition and other information for 2026.06.30 date was: Name, Surname Duties at the Supervisory Council Share of capital under the right of ownership, % Share of votes together with the related persons, % Valdas Vitkauskas Independent member since 2022 Chair since 2022.08.05 - - Gintaras Kateiva Member since 2008 5.04 5.06* Darius Šulnis Member since 2016 - 19.94** Ulrik Lackschewitz Independent member since 2026 - - Tomas Okmanas Independent member since 2023 - 9.86*** Mindaugas Raila Member since 2023 - 6.59**** Monika Nachyła Independent member since 2024 - - John Michael Denhof Independent member since 2025 - * Pursuant to the Law on Securities of the Republic of Lithuania, votes are counted together with the votes held by the spouse ** Mr. Šulnis is the CEO and indirect shareholder of Invalda INVL AB. Under the right of ownership Invalda INVL AB holds 19.94% of the shares and voting rights of ArteaBankas AB. *** Mr. Okmanas is member of the Management Board, CEO and indirect shareholder of Tesonet Global UAB, which owns 9.86% of Artea bankas AB shares and voting rights **** Pursuant to the Law on Securities of the Republic of Lithuania, votes are counted together with the votes held by the controlled company Willgrow UAB The Bank’s Management Board, whose term of office expires on the day of the Ordinary General Meeting of Shareholders of the B ank in 2028, composition and other information for 2026.06.30 date was: Name, Surname Duties at the Board Other current leading positions at the Bank Share of capital under the right of ownership, % Share of votes together with the related persons, % Vytautas Sinius Member since 2011 Chair since 2022.08.19 Chief Executive Officer 0.35 0.35 Algimantas Gaulia Member since 2021 Head of Risk Management Division 0.03 0.03 Tomas Varenbergas Member since 2024 Head of Finance Division 0.02 0.02 Laura Križinauskienė Member since 2024 Head of Private Clients Division - - Aurelija Geležiūnė Member since 2025 Head of Legal, Compliance and Prevention Division 0.05 0.05
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FINANCIAL SUMMARY 10 THE COMMITTEES FORMED WITHIN THE BANK, AREAS OF THEIR ACTIVITIES Functions, procedures of formation and the policy of activities of the bank's committees are defined by the legal acts of the Republic of Lithuania, legal acts of the Bank of Lithuania as well as provisions of the certain committees approved by the Management Board or Supervisory Council of the Bank. COMMITTEES UNDER AUTHORITY OF THE BANK'S SUPERVISORY COUNCIL For the effective exercise of the functions and duties of the Supervisory Council, the Bank shall establish standing committees of the Supervisory Council: (i) the Risk Committee; (ii) the Audit Committee; (iii) the Nomination Committee; (iv) the Remuneration Committee; (v) Corporate Affairs Committee . The members of the committees of the Bank's Supervisory Council shall be appointed by decision of the Supervisory Council. Information on the committee members as of 30 June 202 6: The Risk Committee advises the management bodies of the Bank on the overall current and future risk acceptable to the Bank and strategy and assist in overseeing the implementation of the strategy at the Bank, verifies whether prices of liabilities and assets offered to clie nts take fully into account the Bank’s business model and risk strategy and shall also carries out other functions provided for in its provisions. Name, surname Chair - - Members: Valdas Vitkauskas Independent member of the Supervisory Council John Michael Denhof Independent member of the Supervisory Council The Internal Audit Committee shall address the matters related with improving of the internal control system of the Bank and work improvement of the internal audit subdivision, shall ensure independence of performance of the internal audit subdivision, organize the selection of an ex ternal audit firm, co -ordinate allocation of the auditable fields between the internal and external auditors, consider other matters provided for in the legal acts of supervision authorities and regulations of the audit committee. egal acts of supervisory authorities, the audit committee shall be formed, its competence and performance shall be defined, regulations approved and performance supervised by the Supervisory Council. Name, surname Chair Monika Nachyła Independent member of the Supervisory Council Members: Valdas Vitkauskas Independent member of the Supervisory Council - - The Nomination Committee shall nominate and recommend, for the approval of the bodies of the Bank or for the approval of the General Meeting of Shareholders, candidates to fill the vacancies in the Bank’s bodies, shall evaluate the balance of the skills, evaluate the target numbe r of the underrepresented gender within the Bank’s bodies, knowledge and experience of the members of the bodies of the Bank and suitability for the position, shall submit respective comments and findings, shall assess the structure, size, composition, and performance of the bodies of the Bank, and shall perform other functions established in its regulations. Name, surname Chair Valdas Vitkauskas Independent member of the Supervisory Council Members: Darius Šulnis Member of the Supervisory Council Monika Nachyła Independent member of the Supervisory Council The Remuneration Committee shall assess the variable remuneration policy, practices and incentives established for the management of the Bank’s risks, capital and liquidity, supervise the independent control functions including remuneration to managers in charge of risk management and compliance function, draft resolutions on variable remuneration, advise the Council on the gender neutrality of remuneration policies and perform other functions provided for in its regulations. Name, surname Chair Valdas Vitkauskas Independent member of the Supervisory Council Members: Gintaras Kateiva Member of the Supervisory Council John Michael Denhof Independent member of the Supervisory Council The Corporate Affairs Committee The main responsibilities of the Corporate Affairs Committee are to participate in the development/review of the annual objectives of the Group, of the annual budget (condensed form) of the Group, also participate in the preparation/review of the strategy of the Group and provide comments and proposals to the Council and to perform other functions set forth in its regulations. Name, surname Chair Darius Šulnis Member of the Supervisory Council Members: Valdas Vitkauskas Independent member of the Supervisory Council Tomas Okmanas Independent member of the Supervisory Council Mindaugas Raila Member of the Supervisory Council COMIMITTEES UNDER AUTHORITY OF THE BANK'S MANAGEMENT BOARD Information on the committee members as of 30 June 2026: The Loan Committee evaluates loan granting material / documents and loan risk, approves / rejects lending decisions and / or amendments to terms and conditions, suggests regarding loan granting, loan interest rates, improvement of loan administration procedures and performs other functions foreseen by its provisions. Name, surname Position Chair Edas Mirijauskas Director of Credit Department Deputy Diana Leonavičienė Director of Regional Lending Unit Members: Dominykas Gesevičius Director of Corporate Clients management Department Ramūnas Dešukas Director of the Special Assets Department Darius Bačinskas Director of the Legal Department Second line of defence representative without voting rights Denis Zubovas Director of Credit Risk Management and Control Department
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FINANCIAL SUMMARY 11 The Risk Management Committee performs functions related to the organization, coordination and control of the Bank's risk management system, determines and controls risk measurement indicators corresponding to the risk appetite acceptable to the Bank, as well as performs other functions provided for in its regulations. Name, surname Position Chair Algimantas Gaulia Head of Risk Management Division Deputy Dalia Udrienė Director of Risk Department Members Tomas Dautoras Director of Non-Financial Risk Department Aurelija Geležiūnė Head of Legal, Compliance and Prevention Division Edas Mirijauskas Director of Credit Department Tomas Varenbergas Head of Finance Division Rimvydas Mockus Head of Corporate Clients Division Denis Zubovas Director of Credit Risk Management & Control Department NPE (angl. Non-Performing Exposures) Committee’s main purpose is to address issues related to NPE restructuring, additional funding, recovery, etc., to ensure the proper implementation of the NPE strategy, to actively reduce the Bank’s NPE portfolio, and to carry out other functions set out in its regulations. Name, surname Position Chair Ramūnas Dešukas Director of the Special Assets Department Deputy Aušra Laurinavičienė Head of Debt Recovery Unit Members Edas Mirijauskas Director of Credit Department Justina Stuknienė Head of Asset Restructuring & Realization Unit Asta Rasiulienė Deputy Director of the Special Assets Department Second line of defence representative without voting rights Denis Zubovas Director of Credit Risk Management and Control Department The Asset and Liability Management Committee’s main purpose is to ensure sustainable management of the Bank's and its subsidiaries assets, liabilities, and capital, implementing the Bank's Group strategic business plan . Name, surname Position Chair Vaidotas Jarašius Director of Treasury Deputy Tomas Varenbergas Head of Finance Division Members Dalia Udrienė Director of Risk Department Algimantas Gaulia Head of Risk Management Division Mantas Valukonis Head of Financial Risk Management Unit Kristina Lazdauskė Deputy Director of Financial Planning and Analysis Department Audrius Jukonis Head of the Quantitative Analytics Group of Treasury Department COMPANIES COMPRISING GROUP Nature of activities Registration date Company code Address e- mail, website Artea Bank AB commercial banking 1992.02.04 112025254 Tilžės str.149 LT-76348 Šiauliai info@artea.lt, www.artea.lt The Bank directly controls the following subsidiaries Nature of activities Registration date Company code Address Website UAB Artea lizingas finance lease, consumer credits. 1997.07.14 234995490 Karaliaus Mindaugo pr. 35, LT-44307 Kaunas www.artea.lt UAB Artea turto fondas real estate management 2002.08.13 145855439 Konstitucijos pr. 14A, LT-09308 Vilnius UAB Artea Life Insurance life insurance 2000.08.31 110081788 Konstitucijos pr. 14A, LT-09308 Vilnius UAB Artea Retrofit Fund 1* multi-apartment renovation financing 2022.04.05 306057616 Tilžės g. 149 LT-76348 Šiauliai UAB Artea Asset Management fund management 2023.02.07 306241274 Konstitucijos pr. 14A, LT-09308 Vilnius UAB Artea Retrofit Fund 2* multi-apartmen renovation financing 2024.02.21 306682354 Tilžės g. 149 LT-76348 Šiauliai *not consolidated under IFRS 10 requirements
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FINANCIAL SUMMARY 12 OTHER INFORMATION, PUBLISHED INFORMATION AND MAJOR EVENTS TRANSACTIONS WITH RELATING PARTIES Information on these transactions with related parties is provided in note 12. INFORMATION ON SANCTIONS IMPOSED During second quarter of 2026 , neither Artea Bankas nor the Group companies were subject to any sanctions. INFORMATION ON RESEARCH AND DEVELOPMENT ACTIVITIES The Bank is continuously investing and exploring opportunities to support expansion and enhance operational efficiency. The Bank does not perform research activities. The most significant development at this time is the ongoing change of the Bank’s core banking system, which is expected to further strengthen operational capabilities and support future growth. INFORMATION ABOUT HARMFUL TRANSACTIONS During the reporting period, no harmful transactions that were not in accordance with the Bank's objectives, normal market conditions, harming the interests of shareholders or other groups of persons and which had or could have a negative impact on the Bank's activities or results of operations were concluded. There were also no transactions where the Bank's executives, controlling shareholders or other related parties would have been in a conflict of interest due to their different duties to the Bank and their private interests and / or duties. REPORTS ON MATERAIL EVENTS In accordance with the procedures set by the Charter of the Bank and the legal acts of the Republic of Lithuania reports on material events are announced in the Central regulated information base and on the Bank‘s website at: Homepage › Bank Investors › Reports on Stock Events Other important events are available on the Bank’s website at: Homepage › About Us › News
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13 MANAGEMENT BOARD DECLARATION The Management Board has prepared the financial summary and the condensed interim financial statements of Artea for the six-month period ended 30 June 2026 . The Management Board confirms that, to the best of its knowledge, the condensed interim financial statements of Artea forthe six-month period ended 30 June 2026 prepared in accordance with applicable international financial reporting standards as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and financial performance of Artea and its consolidated entities taken as a whole. The 2026 first two quarters interim report has been approved by the Management Board on 29 July 2026. Acting Chief Executive Officer Tomas Varenbergas
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CONDENSED INTERIM FINANCIAL STATEMENT THE SIX-MONTH PERIOD ENDED 30 JUNE 2026
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 15 THE GROUP’S AND THE BANK’S CONDENSED STATEMENTS OF FINANCIAL POSITION 30 June 2026 31 December 2025 Notes Group Bank Group Bank ASSETS Cash and cash equivalents 396,596 390,602 390,057 383,623 Securities in the trading book 2 10,393 9,897 11,031 10,038 Due from other banks 10,862 10,855 9,035 9,035 Derivative financial instruments 1,969 1,969 164 151 Loans to customers 1 3,963,725 3,947,367 3,713,724 3,691,955 Investment securities at fair value 2 510,735 251,396 504,696 254,974 Investment securities at amortized cost 2 1,224,568 1,216,662 1,356,852 1,348,506 Investments in subsidiaries and associates 2 200 73,606 270 96,929 Intangible assets 29,769 6,247 40,560 6,498 Property, plant and equipment 36,513 36,274 15,495 15,183 Current income tax prepayment 1,245 1,205 7,885 7,842 Deferred income tax asset 5,554 1,324 6,460 2,340 Other assets 3 23,721 21,013 19,241 16,953 Total assets 6,215,850 5,968,417 6,075,470 5,844,027 LIABILITIES Due to other banks and financial institutions 200,915 201,779 197,210 198,266 Derivative financial instruments 4 8,245 8,245 3,326 3,326 Due to customers 4 4,060,526 4,061,285 3,961,201 3,961,981 Debt securities in issue 1,034,607 1,034,607 1,034,463 1,034,463 Current income tax liabilities 1,056 - 967 - Deferred income tax liabilities 4,919 - 6,485 - Liabilities related to insurance activities 5 231,915 - 212,910 - Other liabilities 78,119 64,846 55,851 41,269 Total liabilities 5,620,302 5,370,762 5,472,413 5,239,305 EQUITY Share capital 6 189,196 189,196 189,196 189,196 Share premium 6 25,534 25,534 25,534 25,534 Treasury shares (-) 6 (4,657) (4,657) (4,967) (4,967) Reserve capital 6 756 756 756 756 Statutory reserve 6 92,123 91,174 76,516 76,000 Reserve for acquisition of own shares 6 20,000 20,000 20,000 20,000 Revaluation reserve (799) (799) (608) (608) Other equity 6 1,240 822 1,627 1,201 Retained earnings 272,155 275,629 295,003 297,610 Non-controlling interest - - - - Total equity 595,548 597,655 603,057 604,722 Total liabilities and equity 6,215,850 5,968,417 6,075,470 5,844,027 The accounting policies and notes on pages 21 to 38 constitute an integral part of these financial statements. Acting Chief Executive Officer Tomas Varenbergas Acting Chief Financial Officer Paulius Daukša 29 July 2026
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 16 THE GROUP’S AND THE BANK’S CONDENSED INCOME STATEMENTS 2026.01.01 - 2026.06.30 2025.01.01 - 2025.06.30 Notes Group Bank Group Bank Continuing operations Interest revenue calculated using the effective interest method 7 117,203 106,890 110,330 101,174 Other similar income 7 11,354 10,392 11,653 10,943 Interest expense and similar charges 7 (56,017) (56,023) (53,568) (53,599) Net interest income 72,540 61,259 68,415 58,518 Fee and commission income 8 20,258 16,996 19,725 16,280 Fee and commission expense 8 (4,235) (3,740) (4,610) (4,093) Net fee and commission income 16,023 13,256 15,115 12,187 Insurance net gain from trading 11 17,846 - (751) - Revenue related to insurance (incl. interest) 11 7,385 - 7,410 - Expenses related to insurance activities 11 (22,501) - (3,469) - Net income (expenses) from Insurance activity 2,730 - 3,190 - Net gain (loss) from derecognition of financial assets 155 6 3,756 3,799 Net gain from trading activities (excl. Insurance) 11 2,297 2,046 5,081 5,064 Other operating income 241 394 291 495 Total income 93,986 76,961 95,848 80,063 Salaries and related expenses (28,734) (25,840) (27,621) (24,583) Depreciation and amortization expenses (3,869) (3,125) (4,405) (3,618) Other operating expenses 9 (20,743) (18,189) (20,899) (17,654) Operating profit before impairment losses 40,640 29,807 42,923 34,208 Allowance for impairment losses on loans and other assets 10 (10,337) 764 (3,779) (2,379) Share of the profit or loss of investments in subsidaries accounted for using the equity method 12 (176) 70 - 5,843 Profit from continuing operations before income tax 30,127 30,641 39,144 37,672 Income tax expense (6,945) (7,054) (7,245) (6,102) Net profit from continuing operations for the period 23,182 23,587 31,899 31,570 Profit (loss) from discontinued operations, net of tax - - - - Net profit for the period 23,182 23,587 31,899 31,570 Net profit attributable to: Owners of the Bank 23,182 23,587 31,899 31,570 From continuing operations 23,182 23,587 31,899 31,570 From discontinued operations - - - - Non-controlling interest - - - - Basic earnings per share (in EUR per share) attributable to owners of the Bank 0.04 - 0.05 - Diluted earnings per share (in EUR per share) attributable to owners of the Bank 0.04 - 0.05 - The accounting policies and notes on pages 21 to 38 constitute an integral part of these financial statements.
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 17 THE GROUP’S AND THE BANK’S CONDENSED INCOME STATEMENTS FOR QUARTER 2026.04.01 - 2026.06.30 2025.04.01 - 2025.06.30 Group Bank Group Bank Interest revenue calculated using the effective interest method 58,717 53,742 47,445 42,772 Other similar income 5,824 5,287 13,545 12,918 Interest expense and similar charges (27,793) (27,795) (26,986) (26,985) Net interest income 36,748 31,234 34,004 28,705 Fee and commission income 10,813 9,405 9,973 8,325 Fee and commission expense (2,204) (1,977) (2,419) (2,157) Net fee and commission income 8,609 7,428 7,554 6,168 Insurance net gain from trading 21,869 - 2,768 - Revenue related to insurance (incl. interest) 3,617 - 3,497 - Expenses related to insurance activities (23,807) - (4,786) - Net income (expenses) from Insurance activity 1,679 - 1,479 - Net gain (loss) from derecognition of financial assets (17) - (40) - Net gain from trading activities (excl. Insurance) 1,140 789 3,111 3,094 Other operating income 141 91 97 336 Net income 48,300 39,542 46,205 38,303 Salaries and related expenses (14,593) (13,151) (13,655) (12,152) Depreciation and amortization expenses (2,097) (1,740) (2,050) (1,660) Other operating expenses (11,050) (9,413) (12,071) (10,367) Operating profit before impairment losses 20,560 15,238 18,429 14,124 Allowance for impairment losses on loans and other assets (9,835) 482 (1,562) (670) Share of the profit or loss of investments in subsidiaries accounted for using the equity method - (3,853) - 2,807 Profit from continuing operations before income tax 10,725 11,867 16,867 16,261 Income tax expense (2,963) (4,056) (2,650) (2,039) Net profit from continuing operations for the period 7,762 7,811 14,217 14,222 Profit (loss) from discontinued operations, net of tax - - - - Net profit for the year 7,762 7,811 14,217 14,222 Net profit attributable to: Owners of the Bank 7,762 7,811 14,217 14,222 From continuing operations 7,762 7,811 14,217 14,222 From discontinued operations - - - - Non-controlling interest - - - -
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 18 THE GROUP’S AND THE BANK’S CONDENSED STATEMENTS OF COMPREHENSIVE INCOME 2026.01.01 - 2026.06.30 2025.01.01 - 2025.06.30 Group Bank Group Bank Net profit for the period 23,182 23,587 31,899 31,570 Other comprehensive income Items that may be subsequently reclassified to profit or loss: Gain from revaluation of financial assets (229) (229) 733 733 Buildings revaluation reserve (12) (12) - - Deferred income tax on gain from revaluation of financial assets 50 50 (116) (116) Items that may not be subsequently reclassified to profit or loss: Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk - - - - Other comprehensive income, net of deferred tax (191) (191) 617 617 Total comprehensive income for the period 22,991 23,396 32,516 32,187 Total comprehensive income (loss) attributable to: Owners of the (Bank): 22,991 23,396 32,516 32,187 Non-controlling interest - - - - THE GROUP’S AND THE BANK’S CONDENSED STATEMENTS OF COMPREHENSIVE INCOME FOR QUARTER 2026.04.01 - 2026.06.30 2025.04.01 - 2025.06.30 Group Bank Group Bank Net profit for the period 7,762 7,811 14,217 14,222 Other comprehensive income Items that may be subsequently reclassified to profit or loss: Gain from revaluation of financial assets (779) (779) 623 623 Buildings revaluation reserve: 12 12 - - Deferred income tax on gain from revaluation of financial assets 172 172 (130) (130) Items that may not be subsequently reclassified to profit or loss: Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk - - - - Other comprehensive income, net of deferred tax (595) (595) 493 493 Total comprehensive income for the period 7,167 7,216 14,710 14,715 Total comprehensive income (loss) attributable to: Owners of the Bank 7,167 7,216 14,710 14,715 Non-controlling interest - - - - The accounting policies and notes on pages 21 to 38 constitute an integral part of these financial statements.
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 19 THE GROUP‘S CONDENSED STATEMENT OF CHANGES IN EQUITY Share capital Share premium Treasury shares Reserve capital Revaluation reserve Statutory reserve Reserve for acquisition of own shares Other equity Retained earnings Total 1 January 2025 192,269 25,534 (8,375) 756 (2,989) 61,025 20,000 1,480 295,472 585,172 Transfer to statutory reserve - - - - - 15,491 - - (15,491) - Increase (decrease) in share capital - - - - - - - - - - Acquisition of own shares - - (4,015) - - - - - - (4,015) Share-based payment - - 1,305 - - - - 147 - 1,452 Payment of dividends - - - - - - - - (39,796) (39,796) Total comprehensive income - - - - 617 - - - 31,899 32,516 30 June 2025 192,269 25,534 (11,085) 756 (2,372) 76,516 20,000 1,627 272,084 575,329 Transfer to statutory reserve - - - - - - - - - - Increase (decrease) in share capital (3,073) - 8,941 - - - - - (5,868) - Acquisition of own shares - - (2,825) - - - - - - (2,825) Share-based payment - - 2 - - - - - - 2 Payment of dividends - - - - - - - - - - Total comprehensive income - - - - 1,764 - - - 28,787 30,551 31 December 2025 189,196 25,534 (4,967) 756 (608) 76,516 20,000 1,627 295,003 603,057 Transfer to statutory reserve - - - - - 15,636 - - (15,636) - Increase (decrease) in share capital - - - - - - - - - - Acquisition of own shares - - 310 - - - - - - 310 Share-based payment - - - - - (29) - (387) - (416) Payment of dividends - - - - - - - - (30,394) (30,394) Total comprehensive income - - - - (191) - - - 23,182 22,991 30 June 2026 189,196 25,534 (4,657) 756 (799) 92,123 20,000 1,240 272,155 595,548 THE BANK’S CONDENSED STATEMENT OF CHANGES IN EQUITY Share capital Share premium Treasury shares Reserve capital Revaluation reserve Statutory reserve Reserve for acquisition of own shares Other equity Retained earnings Total 1 January 2025 192,269 25,534 (8,375) 756 (2,989) 60,805 20,000 1,019 297,985 587,004 Transfer to statutory reserve - - - - - 15,195 - - (15,195) - Increase (decrease) in share capital - - - - - - - - - - Acquisition of own shares - - (4,015) - - - - - - (4,015) Share-based payment - - 1,305 - - - - 182 - 1,487 Payment of dividends - - - - - - - - (39,796) (39,796) Total comprehensive income - - - - 617 - - - 31,570 32,187 30 June 2025 192,269 25,534 (11,085) 756 (2,372) 76,000 20,000 1,201 274,564 576,867 Transfer to statutory reserve - - - - - - - - - - Increase (decrease) in share capital (3,073) - 8,941 - - - - - (5,868) - Acquisition of own shares - - (2,825) - - - - - - (2,825) Share-based payment - - 2 - - - - - - 2 Payment of dividends - - - - - - - - - - Total comprehensive income - - - - 1,764 - - - 28,914 30,678 31 December 2025 189,196 25,534 (4,967) 756 (608) 76,000 20,000 1,201 297,610 604,722 Transfer to statutory reserve - - - - - 15,174 - - (15,174) - Increase (decrease) in share capital - - - - - - - - - - Acquisition of own shares - - 310 - - - - - - 310 Share-based payment - - - - - - - (379) - (379) Payment of dividends - - - - - - - - (30,394) (30,394) Total comprehensive income - - - - (191) - - - 23,587 23,396 30 June 2026 189,196 25,534 (4,657) 756 (799) 91,174 20,000 822 275,629 597,655 The accounting policies and notes on pages 21 to 38 constitute an integral part of these financial statements.
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 20 THE GROUP’S AND THE BANK’S CONDENSED STATEMENTS7 OF CASH FLOWS Notes 30 June 2026 30 June 2025 Group Bank Group Bank Operating activities Interest received on loans and advances 111,892 100,617 117,879 106,864 Interest received on debt securities at fair value through profit or loss 632 350 8,270 8,100 Interest paid (36,281) (36,287) (45,723) (45,755) Fees and commissions received 8 20,258 16,996 19,725 16,280 Fees and commissions paid 8 (4,235) (3,740) (4,610) (4,093) Net cash inflows from trade in securities at fair value through profit or loss 632 558 1,965 2,778 Net inflows from foreign exchange operations 1,991 1,948 2,624 2,631 Inflows from derecognition of financial assets 155 6 3,756 3,799 Net gain from disposal of tangible assets 206 206 67 67 Cash inflows related to other activities of Group companies and the Bank 7,626 394 7,634 428 Cash outflows related to other activities of Group companies and the Bank (22,501) - (3,469) - Recoveries on loans previously written off 668 20 77 51 Salaries and related payments to and on behalf of employees (30,943) (28,049) (29,821) (26,783) Net operating other cost payment 9 (20,743) (18,189) (20,899) (17,654) Income tax paid (9,001) (6,990) (7,245) (6,102) Net cash flow from operating activities before change in operating assets and liabilities 20,356 27,840 50,230 40,611 Change in operating assets and liabilities: Loans to credit and financial institutions decrease (increase) (1,827) (1,820) 507 507 Loans to customers (increase) (250,074) (254,155) (240,455) (237,062) Decrease in other assets (increase) (14,563) (4,270) (9,133) (9,731) Increase (decrease) in amounts due to credit and Financial institutions (increase) 3,684 3,492 (47,034) (46,654) Increase (decrease) in due to customers (increase) 102,070 102,049 141,652 140,941 Increase (decrease) in other liabilities (increase) 14,348 17,290 (2,427) 4,821 Change (146,362) (137,414) (156,890) (147,178) Net cash flow from (used in) from operating activities (126,006) (109,574) (106,660) (106,567) Investing activities Acquisition of property, plant and equipment, investment property and intangible assets (4,250) (4,006) (960) (897) Disposal of property, plant and equipment, investment property and intangible assets 706 214 237 233 Acquisition of debt securities at amortized cost (15,804) (15,804) (203,694) (167,681) Sale or redemption of debt securities at amortized cost 190,295 151,926 269,511 234,546 Interest received on debt instruments at amortized cost 10,477 9,703 762 125 Sale or redemption of securities held for sale 4,174 4,174 4,980 4,980 Interest and dividends received on investment securities at fair value 1,576 24,942 290 223 Net increase (decrease) in investments in subsidiaries (106) (106) - - Net cash flow from (used in) investing activities 187,068 171,043 71,126 71,529 Financing activities Payment of dividends (30,394) (30,394) (39,991) (39,991) Acquisition of own shares - - (4,015) (4,015) Interest payment for issued of debt securities (22,316) (22,316) (19,104) (19,104) Issue of debt securities - - 300,000 300,000 Redeemable debt securities - - (20,000) (20,000) Principal elements of lease payments (1,813) (1,780) (1,177) (987) Net cash flow (used in) financing activities (54,523) (54,490) 215,713 215,903 Net increase (decrease) in cash and cash equivalents 6,539 6,979 180,179 180,865 Cash and cash equivalents at 31 December 390,057 383,623 395,136 386,365 Cash and cash equivalents at 30 June 396,596 390,602 575,315 567,230 The accounting policies and notes on pages 21 to 38 constitute an integral part of these financial statements.
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 21 GENERAL INFORMATION AB Artea Bankas was registered as a public company in the Enterprise Register of the Republic of Lithuania on 4 February 1992. The Bank is licensed by the Bank of Lithuania to perform all banking operations provided for in the Law on Banks of the Republic of Lithuania and the Charter of the Bank. In this document Artea AB is referred to as the Bank, Artea AB and its subsidiaries - the Group. On May 5, 2025, the bank changed its name from AB Šiaulių bankas to AB Artea bank. The brand update reflects the strategic direction and goal of becoming the leading bank in Lithuania by 2029. The Head Office of the Bank is located in Šiauliai, Tilžės str. 149, LT -76348. At the end of the reporting period the Bank had 46 customer service outlets ( 31 December 2025: 52 outlets). The Bank accepts deposits, issues loans, makes money transfers and documentary settlements, exchanges currencies for its clients, issues and processes debit and credit cards, is engaged in trade finance and is investing and trading in securities, as well a s performs other activities set forth in the Law on Banks of the Republic of Lithuania and the Charter of the Bank. Subsidiary companies of the Group perform consumer financing, life insurance and real estate management activities. The Bank’s shares are listed on the Baltic Main List of the Nasdaq Stock Exchange. This condensed interim financial information for the six-month period ended 30 June 2026 has been prepared in accordance with IAS 34, "Interim Financial Reporting" as adopted by the EU. The condensed interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2025, which have been prepared in accordance with IFRS accounting standards ("IFRS"). Except for the points described below, all the accounting policies applied in the preparation of this condensed interim financial information are consistent with those of the annual financial statements of the Bank for the year ended 31 December 2025. This does not include all the information necessary to prepare comprehensive financial statements prepared in accordance with IFRS accounting standards. However, selected explanatory notes are provided, which explain the events and transactions important f or understanding the changes in the Group's financial position and performance since the last annual financial statements. Critical accounting estimates and judgements The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current event and actions, actual results ultimately may differ from those estimates. In preparing these condensed interim financial statements, the significant judgements made in applying Group’s accounting policies and the key sources of estimation uncertainty were the same as those applied to the financial statements as at and for the period ended 31 December 2025, except for judgements and estimations used for calculation of impairment, which were revised to reflect the most recent economic forecasts. These assumptions and evaluations are described in more detail in notes1, 2, and 10. These financial statements combine the consolidated financial statements for the Group and stand-alone financial statements of the Bank. Such format of reporting was adopted to ensure consistency of presentation with the format prescribed by the Bank of Lithuania and applied for statutory reporting. No significant amounts of the Group’s and the Bank’s income or expenses are of a substantial seasonal nature. Amendments to existing standards and interpretations effective in 202 6 A number of new standards are effective from 1 January 202 6 but they do not have a material effect on the Group’s financial statements: • Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) • Lack of Exchangeability (Amendments to IAS 21). Standards and amendments to existing standards that are not yet effective and have not been early adopted by the Group and the Bank A number of new standards and amendments are effective for annual periods beginning on 1 January 202 7 and after. Earlier application is permitted for certain standards; however, the Group and the Bank has not early adopted any of the new or amended standards in preparing these financial statements. The following new and amended standards are not expected to have a significant impact on the Group’s and the Bank’s financial statements: • Presentation and Disclosure in Financial Statements (IFRS18); • Subsidiaries without Public Accountability: Disclosures (IFRS 19); Although the Group’s and the Bank’s statement of profit or loss is already largely aligned with the presentation requirements introduced by IFRS 18, the standard is expected to result in additional disclosure requirements in the notes to the financial statements, including disclosures related to management -defined performance measures.
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 22 NOTE 1 LOANS TO CUSTOMERS AND FINANCE LEASE RECEIVABLES Credit risk is the risk that the Group or Bank will incur losses due to customers’ failure to meet their financial obligations to the Group or Bank. Credit risk mainly arises from lending activities and is the most significant risk in the Group’s and Bank business. It also arises from investment activities (debt securities), from the Group’s or Bank asset portfolio and from off-balance sheet financial instruments (e.g. lending commitments, guarantees, letters of credit). The Group and Bank has a credit risk management system in place, which is continuously improved and includes lending policy, a system of credit risk limits, other credit risk management measures, as well as internal control and internal audit of credit risk management. The Group and Bank assumes risk only in areas that are well known to it and in which it has gained positive experience, in order to avoid excessive risk in transactions that could have a negative impact on a large share of shareholders’ equity, while at th e same time ensuring an adequate level of profitability which, given the increasing competition, would ensure the Bank’s stable position in the market and increase the Bank’s value. When assessing the credit risk assumed, the Group and Bank follows the principles of prudence, conservatism and caution. The Group and Bank credit risk management is organized in such a way as to avoid conflicts of interest between staff or structural units. When granting credit to clients, the Group and Bank follows the principle that profit must not be pursued at the expense of excessive credit risk. Maximum credit risk, disregarding collateral and other credit risk mitigation measures: 30 June 2026 31 December 2025 Group Bank Group Bank Cash equivalents 316,546 311,347 314,763 309,011 Loans and advances to banks 10,862 10,855 9,035 9,035 Loans and advances to customers: 3,963,725 3,947,367 3,713,724 3,691,955 Loans and advances to financial institutions 2,450 324,369 23,476 324,249 Loans to individuals (Retail) 1,705,857 1,383,938 1,624,035 1,301,493 Loans to business customers 2,255,418 2,239,060 2,066,213 2,066,213 Debt securities at fair value through profit or loss 9,020 8,524 11,004 10,011 Derivative financial instruments 1,969 1,969 164 151 Debt securities at fair value through other comprehensive income 299,073 248,911 304,995 252,461 Debt securities at amortized cost 1,224,568 1,216,662 1,356,852 1,348,506 Other assets subject to credit risk 9,495 8,555 8,210 7,345 Credit risk exposures relating to off –balance sheet items are as follows: Financial guarantees 65,500 65,550 61,975 62,025 Letters of credit 29,404 29,404 33,356 33,356 Loan commitments and other credit related liabilities 493,076 528,182 431,432 471,953 Total 6,423,238 6,377,326 6,245,510 6,195,809 Loans to customers 30 June 2026 31 December 2025 Group Bank Group Bank Gross loans at amortized cost 4,012,095 3,982,593 3,762,780 3,728,430 Less: allowance for impairment (54,831) (41,687) (55,259) (42,678) Net loans at amortized cost 3,957,264 3,940,906 3,707,521 3,685,752 Gross loans at fair value 6,461 6,461 6,203 6,203 Total loans 3,963,725 3,947,367 3,713,724 3,691,955 Through its subsidiaries, UAB "Artea Retrofit Fund 1" and UAB "Artea Retrofit Fund 2", the Bank has granted loans as an investment in a securitization instrument intended to finance multi-apartment building renovation projects. The Bank’s investments in securitization are carried out in several stages, across different investment tranches characterized by varying levels of risk. Part of the investments made to date were into the tranche with the most significant risk. Therefore, in accordance with IFRS 9 requirements the loans granted to UAB "Artea Retrofit Fund 1" and UAB "Artea Retrofit Fund 2" are measured at fair value through profit or loss and are presented in the statement of financial position under the line item “Loans granted to customers.” At initial recognition, the fair value of these loans was determined to be equal to their acquisition cost. As of 30 June 2026 , the net value of these loans amounted to EUR 6,240 thousand. During the six-month period ended 30 June 2026, a profit of EUR 255 thousand was recognized due to an increase in the fair value of these loans. The remaining portion of loans to UAB "Artea Retrofit Fund 1" and UAB "Artea Retrofit Fund 2", which are measured at amortized cost, had a net value of EUR 43,1 million as of 30 June 2026.
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 23 NOTE 1 LOANS TO CUSTOMERS AND FINANCE LEASE RECEIVABLES (CONTINUED) The distribution of loans by stages and days past due: Group 30 June 2026 31 December 2025 Not due Due below 30 days Due 31-90 days Due over 90 days Total Not due Due below 30 days Due 31-90 days Due over 90 days Total Stage 1: Gross amount 3,511,594 44,561 - - 3,556,155 3,223,074 31,829 - - 3,254,903 Allowance for impairment (21,318) (346) - - (21,664) (20,754) (254) - - (21,008) Net amount 3,490,276 44,215 - - 3,534,491 3,202,320 31,575 - - 3,233,895 Stage 2: - Gross amount 315,878 34,203 15,245 - 365,326 365,706 30,855 12,425 - 408,986 Allowance for impairment (6,355) (3,506) (1,278) - (11,139) (8,037) (3,182) (1,783) - (13,002) Net amount 309,523 30,697 13,967 - 354,187 357,669 27,673 10,642 - 395,984 Stage 3: Gross amount 39,812 16,661 6,763 33,839 97,075 55,788 7,295 9,063 32,948 105,094 Allowance for impairment (5,164) (2,553) (1,508) (12,803) (22,028) (5,539) (1,136) (1,556) (13,018) (21,249) Net amount 34,648 14,108 5,255 21,036 75,047 50,249 6,159 7,507 19,930 83,845 Total: Gross amount 3,867,284 95,425 22,008 33,839 4,018,556 3,644,568 69,979 21,488 32,948 3,768,983 Allowance for impairment (32,837) (6,405) (2,786) (12,803) (54,831) (34,330) (4,572) (3,339) (13,018) (55,259) Net amount 3,834,447 89,020 19,222 21,036 3,963,725 3,610,238 65,407 18,149 19,930 3,713,724 Bank 30 June 2026 31 December 2025 Not due Due below 30 days Due 31-90 days Due over 90 days Total Not due Due below 30 days Due 31-90 days Due over 90 days Total Stage 1: Gross amount 3,205,877 44,561 - - 3,250,438 2,918,129 31,829 - - 2,949,958 Allowance for impairment (16,399) (346) - - (16,745) (16,486) (254) - - (16,740) Net amount 3,189,478 44,215 - - 3,233,693 2,901,643 31,575 - - 2,933,218 Stage 2: Gross amount 619,934 18,687 11,783 - 650,404 664,480 16,305 7,936 - 688,721 Allowance for impairment (6,272) (534) (289) - (7,095) (7,933) (488) (501) - (8,922) Net amount 613,662 18,153 11,494 - 643,309 656,547 15,817 7,435 - 679,799 Stage 3: Gross amount 37,208 14,912 5,935 30,157 88,212 53,445 6,074 8,246 28,189 95,954 Allowance for impairment (3,964) (1,747) (1,126) (11,010) (17,847) (4,449) (574) (1,180) (10,813) (17,016) Net amount 33,244 13,165 4,809 19,147 70,365 48,996 5,500 7,066 17,376 78,938 Total: Gross amount 3,863,019 78,160 17,718 30,157 3,989,054 3,636,054 54,208 16,182 28,189 3,734,633 Allowance for impairment (26,635) (2,627) (1,415) (11,010) (41,687) (28,868) (1,316) (1,681) (10,813) (42,678) Net amount 3,836,384 75,533 16,303 19,147 3,947,367 3,607,186 52,892 14,501 17,376 3,691,955 Loans are assigned to stages using the following principles (a deviation from these principles is allowed in the process of individual loan assessment based on contract - specific circumstances if it would result in more precise assessment of the risk of the contract): Stage 1 loans: loans with no increase in credit risk observed. Stage 2 loans: loans with an increase in credit risk observed. Main reasons for determining an increase in credit risk are: deterioration of borrower’s financial status from the initial (this criteria is not applicable to the low credit risk loans, i.e. lo ans that have internal borrower’s financial status assessment grades “very good” or “good” or investment grade credit ratings by external credit rating agencies), payment delay of over 30 days, and other objective criteria showing an increase in credit. Stage 3 loans: defaulted loans. Main reasons for determining a default are payment delay of over 90 days, bankruptcy of the borrower, termination of the contract, start of the foreclosure procedures and other objective criteria. As lending activities are focused on the Lithuanian market, the assessment of potential risks across individual economic sectors did not identify any sectors for which the risk would be considered elevated . Due to potential increase in credit risk the Bank has individually assessed clients with loans and finance lease contracts which have medium or high dependency from countries mentioned above through supply or sales chains or through holders structure and if increase in risk was determined credit stages for certain clients were reduced.
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 24 NOTE 2 SECURITIES Securities in the trading book Securities in the trading book are comprised of trading securities and other securities that cover insurance contract liabilities under unit-linked insurance contracts of life insurance subsidiary. These securities are measured at fair value through profit or loss. 30 June 2026 31 December 2025 Group Bank Group Bank Debt securities: 9,020 8,524 11,004 10,011 Government bonds - - - - Corporate bonds 9,020 8,524 11,004 10,011 Equity securities 1,373 1,373 27 27 Total 10,393 9,897 11,031 10,038 30 June 2026 31 December 2025 Group Bank Group Bank Trading securities: Debt securities 9,020 8,524 11,004 10,011 from AA- to AAA - - - - from A- to A+ 496 - 993 - from BBB- to BBB+ - - - - from BB- to BB+ - - - - lower than BB- - - - - no rating 8,524 8,524 10,011 10,011 Equity securities: 1,373 1,373 27 27 listed 1,373 1,373 27 27 unlisted - - - - Total trading securities: 10,393 9,897 11,031 10,038 Investment securities 30 June 2026 31 December 2025 Group Bank Group Bank Securities at fair value: Debt securities: 299,073 248,911 304,995 252,461 Government bonds 271,674 241,167 276,652 243,914 Corporate bonds 27,399 7,744 28,343 8,547 Equity securities 211,662 2,485 199,701 2,513 Total 510,735 251,396 504,696 254,974 Securities at amortized cost: Debt securities 1,224,568 1,216,662 1,356,852 1,348,506 Government bonds 1,214,449 1,209,641 1,343,750 1,338,911 Corporate bonds 10,119 7,021 13,102 9,595 Total 1,224,568 1,216,662 1,356,852 1,348,506 30 June 2026 31 December 2025 Group Bank Group Bank Securities at fair value: Debt securities 299,073 248,911 304,995 252,461 from AA- to AAA 101,758 99,952 129,842 128,347 from A- to A+ 149,087 126,198 125,696 100,627 from BBB- to BBB+ 39,737 22,367 40,933 22,644 from BB- to BB+ 6,701 394 6,567 388 lower than BB- 379 - 343 - no rating 1,411 - 1,614 455 Equities 209,610 686 197,569 620 listed 199,258 349 188,233 449 unlisted 10,352 337 9,336 171 Units of investment funds 2,052 1,799 2,132 1,893 Total 510,735 251,396 504,696 254,974 Securities at amortized cost: Debt securities 1,224,568 1,216,662 1,356,852 1,348,506 from AA- to AAA 463,727 463,524 541,986 541,783 from A- to A+ 701,724 696,836 752,436 747,541 from BBB- to BBB+ 58,612 56,302 61,924 59,182 from BB- to BB+ 505 - 506 - lower than BB- - - - - Unrated - - - - Total 1,224,568 1,216,662 1,356,852 1,348,506
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 25 NOTE 2 SECURITIES (CONTINUED) Credit stages of investment debt securities: 30 June 2026 31 December 2025 Group Bank Group Bank Stage 1: Gross amount 1,523,717 1,465,645 1,661,449 1,600,569 Allowance for impairment (76) (72) (76) (76) Net amount 1,523,641 1,465,573 1,661,373 1,600,493 Stage 2: Gross amount - - 492 492 Allowance for impairment - - (18) (18) Net amount - - 474 474 Stage 3: Gross amount 1,023 - 1,024 - Allowance for impairment (1,023) - (1,024) - Net amount - - - - Total 1,523,641 1,465,573 1,661,847 1,600,967 Investments in subsidiaries The Group's structure and ownership remained unchanged during the six month period ended 30 June 2026 and the comparative year ended 31 December 2025. More detailed information about the Group’s companies (including the date of registration, registered office address, and company code) is disclosed in the Financial summary section „Companies comprising group“. Bank‘s investments in subsidiaries consisted of: Share in equity 30 June 2026 31 December 2025 Artea Life Insurance UAB 100% 34,294 44,102 Artea lizingas UAB 100% 7,684 12,358 Artea Turto Fondas UAB 100% 884 707 Artea Asset Management UAB 100% 30,544 39,492 Total investments in subsidiaries using equity method 73,406 96,659 Artea Retrofit fund 1 UAB 100% 100 170 Artea Retrofit fund 2 UAB 100% 100 100 Total investments in subsidiaries at fair value 200 270 In accordance with the agreements with investors and the provisions of IFRS 10, the Bank does not have control over Artea Retrofit Fund 1 UAB and Artea Retrofit Fund 2 UAB, therefore these companies are not consolidated in the Group's consolidated financial statements. In accordance with the provisions of IFRS 9 applicable to contractually linked instruments, the investments in Artea Retrofit Fund 1 UAB and Artea Retrofit Fund 2 UAB are carried at fair value through profit or loss and are shown in the line 'Investments in subsidiaries' in the statement of financial position. The fair value of these investments was determined at initial reco gnition to be the same as their acquisition cost. Since the incorporation of its subsidiaries, the Bank has regularly made additional contributions to cover their accumulated losses. During the six-month period, additional contributions amounting to EUR 106 thousand were made for this purpose (2025: EUR 70 thousand). Impairment assessment of investments in subsidiaries As of 30 June 2026 and as of 31 December 2025, the Bank assessed its subsidiary Artea Life Insurance UAB for impairment using the embedded value approach. No impairment was identified. The embedded value comprises the value of in -force business and free capital, with cash flows discounted at 7. 1% (30 June 2026) and 7.07% (31 December 2025). A 2% inflation rate was assumed throughout the forecast. Sensitivity analysis using a 2 percentage points higher discount rate also showed no impairment. As of 30 June 2026 and as of 31 December 2025, the Bank assessed whether there were any indicators of impairment in respect of its investment in Artea Asset Management UAB accounted for using the equity method. During 2025, amendments to the Lithuanian Pillar II pension legislation were enacted allowing participants, during the period 2026 –2027, to withdraw up to 25% of their accumulated pension assets if they remain in the system, or the full amount if they choose to exit. Management assessed that these legislative changes constitute an indicator of potential impairment under IAS 36, as the reform may result in a reduction of assets under management (AUM) and related management fee income. Accordingly, the Bank performed an impairment test of the entire carrying amount of the investment. The recoverable amount was determined based on value in use, calculated by discounting the Company’s share of the future cash flows expected to be derived from the continuing operations of Artea Asset Management UAB. Cash flows beyond the explicit forecast period were extrapolated using a long -term growth rate of 2%. The projected cash flows were discounted using a pre-tax discount rate of 10.15% (2025: 10.1%), reflecting current market assessments of the time value of money and the risks specific to the investment. Based on the impairment test performed, the recoverable amount exceeded the carrying amount of the investment as at 30 June 2026 and as at 31 December 2025 and therefore no impairment loss was recognised. No impairment triggers were identified for other subsidiaries.
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 26 NOTE 3 SIGNIFICANT INFORMATION ON CHANGES IN OTHER ASSET ITEMS Other assets 30 June 2026 31 December 2025 Group Bank Group Bank Amounts receivable 9,495 8,555 8,210 7,345 Inventories 250 - 114 - Deferred charges 5,867 5,545 4,920 4,128 Assets under reinsurance and insurance contracts 150 - 151 - Prepayments 3,536 2,421 3,601 3,085 Foreclosed assets 189 185 606 602 Other 4,234 4,307 1,639 1,793 Total 23,721 21,013 19,241 16,953 NOTE 4 DEPOSITS FROM CLIENTS The breakdown of deposits are aligned with the structure of regulatory (FINREP) reporting. Deposits are classified in accordance with regulatory reporting requirements to ensure consistency between financial and supervisory reports. 30 June 2026 31 December 2025 Group Bank Group Bank Demand deposits: Public sector 312,030 312,030 232,672 232,672 Non-financial companies 904,534 905,293 886,174 886,954 Households 1,051,997 1,051,997 925,887 925,887 Transit, deposited liabilities 40,396 40,396 31,977 31,977 Hedged items fair value adjustment (1,313) (1,313) (260) (260) Total demand deposits 2,307,644 2,308,403 2,076,450 2,077,230 Term deposits: Public sector 81,665 81,665 45,283 45,283 Non-financial companies 228,213 228,213 266,534 266,534 Households 1,443,004 1,443,004 1,572,934 1,572,934 Total term deposits 1,752,882 1,752,882 1,884,751 1,884,751 Total 4,060,526 4,061,285 3,961,201 3,961,981 Hedge accounting After renewed accounting policy Bank entered into interest rate swap (IRS) agreements which are accounted for in accordance with hedge accounting principles. The Bank’s objective is to mitigate the impact of changes in market interest rates on the fair value of certain balance-sheet items and to reduce volatility in profit or loss. In accordance with IFR 9 – Financial Instruments, the Bank applies fair value hedge accounting for micro hedging relationships. For macro hedging relationships, hedge accounting continues to be applied under the principles of IAS 39, consistent with the Bank’s existing portfolio hedge framework. All fair value changes of both hedged items and hedging instruments are recognized directly in profit or loss under “Net profit (loss) on hedge accounting”. In the statement of financial position, the hedging instr uments are presented within “Derivative financial instruments” (as financial assets or financial liabilities). The Bank at this moment applies only fair value hedge accounting. 30 June 2026 31 December 2025 Group Bank Group Bank Hedge accounting 7,802 7,802 2,992 2,992 Derivative financial instruments 443 443 334 334 Total: 8,245 8,245 3,326 3,326
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 27 NOTE 5 SIGNIFICANT INFORMATION ON CHANGES IN OTHER LIABILITIES ITEMS Insurance contract liabilities Bank’s subsidiary Artea Life Insurance UAB is engaged in life insurance business. For the periods ended 30 June 2026 and 31 December 2025 the liabilities from insurance contracts and their changes were as follows: Estimate of present value of future cash flows Risk adjustment for non-financial risks Contractual service margin Investment units Advances paid by policyholders Total Gross: 1 January 2025 50,719 18,523 32,416 96,686 88 198,432 Change during period 752 (57) (107) (2,956) - (2,368) 30 June 2025 51,471 18,466 32,309 93,730 88 196,064 Change during period 10,524 (731) (446) 7,460 (21) 16,786 31 December 2025 61,995 17,735 31,863 101,190 67 212,850 Change during period 9,506 196 2,316 6,985 (5) 18,998 30 June 2026 71,501 17,931 34,179 108,175 62 231,848 Reinsurance share: 1 January 2025 - - - - - - Change during period - - - - - - 30 June 2025 - - - - - - Change during period 64 (4) - - - 60 31 December 2025 64 (4) - - - 60 Change during period 3 4 - - - 7 30 June 2026 67 - - - - 67 Net value 31 December 2025 62,059 17,731 31,863 101,190 67 212,910 30 June 2026 71,568 17,931 34,179 108,175 62 231,915 NOTE 6 CAPITAL The share capital of the Bank as of 30 June 2026, was EUR 189,196 thousand, which is divided into 652,399 thousand ordinary registered shares with a nominal value of EUR 0.29 each ( ISIN LT0000102253 ). The new version of Bank's Articles of Association were registered in the Register of Legal Entities on 1 3 August 2025, following the completion of share capital reduction procedure after the acquisition of its own shares. The Bank's share capital was not increased in the second quarter of 2026. All issued shares of the Bank grant their holders equal rights as provided for in the Law on Companies of the Republic of Lithuania and the Bank’s Articles of Association. Share premium The share premium represents the difference between the issue price and nominal value of the shares issued by the Bank. Share premium can be used to increase the Bank’s authorised share capital. In 2018, the share premium of EUR 3,428 thousand was recognized in the subordinated loan conversion process. In 2023 share premium has increased to EUR 25,534 thousand due to business combination. There were no additional share premium increase during upcoming years. Reserve capital The reserve capital is formed from the Bank’s profit and its purpose is to ensure the financial stability of the Bank. The shareholders may decide to use the reserve capital to cover losses incurred. Statutory reserve According to the Law of the Republic of Lithuania on Banks, allocations to the statutory reserve shall be compulsory and shall not be less than 1/20 of the profit available for appropriation. The statutory reserve may, by a decision of extraordinary genera l or annual meeting of the shareholders, be used only to cover losses of the activities. Reserve for acquisition of own shares As of 30 June 2026, the carrying value of the reserve for the repurchase of own shares is EUR 20,000 thousand (as of 30 June 2025 - EUR 20,000 thousand). On 15 August 2024 the Bank has received permission from the European Central Bank (ECB) to buy back up to 13,745 thousand of its own shares. 24 January 2025 the Bank has completed its own share buy -back programme on the regulated market, which was carried out from 4 November 2024. During this period, the Bank acquired 5,093 thousand treasury shares, i.e. 74% of the maximum number of shares within the limit set at the time of the programme's expiry, for a total amount of EUR 4,345 thousand , at an average price of EUR 0.853 per share. On 10 June, 2025 the Bank has completed its own share buy-back programme on the regulated market, which was carried out from 5 May, 2025. During this period, the Bank acquired 2,540 thousand treasury shares, i.e. 96% of the maximum number of shares within the limit set at the time of the programme's expiry, for a total amount of EUR 2,226 thousand, at an average price of EUR 0.876 per share. This buyback program, the purpose of which is to reduce the Bank's capital, was approved by the Management Board of Bank on 30 April 2025, implementing the decision of the Bank's ordinary general meeting of shareholders of 31 March 2025. On 23 September 2025 the Bank received permission from the European Central Bank (ECB) to buy back up to 4 500 thousand of its own shares. Shares to be acquired in the market in the one year period starting from the date of the permission. On 24 October, 2025 the Bank has completed its own share buy-back programme on the regulated market, which was carried out from 6 October, 2025. During this period, the Bank acquired 1,130 thousand treasury shares for a total amount of EUR 931 thousand at an average price of EUR 0.823 per share. The Bank's own share buy-back programme announced on 26 November 2025, till 31 December 2025 - the Bank acquired 2,049 thousand treasury shares for a total amount of EUR 1,893 thousand at an average price of EUR 0.924 per share. As of 31 December 2025 the Bank held 5,719 thousand own shares with carrying value of EUR 4,967 thousand. On 23 January, 2026 the Bank has completed its own share buy -back programme on the regulated market, which was carried out from 1 December, 2025. During this period, the Bank acquired 2,787 thousand treasury shares, for a total amount of EUR 2,598 thousand, at an average price of EUR 0.932 per share. As of 30 June 2026 the Bank held 6,458 thousand own shares with carrying value of EUR 5,672 thousand.
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 28 NOTE 6 CAPITAL (CONTINUED) Other equity Other equity consists of amount that corresponds to the obligation to present Bank‘s shares to Group‘s employees as part of variable remuneration. The Group’s remuneration policy prescribes two main elements of remuneration – fixed remuneration and variable remuneration, and various additional benefits. Employees whose professional activities and/or decisions might have a significant impact on the risk accepted by the Group, receive deferred variable remuneration. The remuneration amounts are accrued as staff expenses in income statement. The Group's incentive scheme employees whose professional activities and/or decisions may have a significant impac t on the risk assumed be the Group receive 50% of the annual long term incentive program in cash and 50% in form of Bank's shares options executable after 3 years. The number of share options is based on the currency value of the achieved results divided b y the weighted average price at which the Bank's shares are traded on Nasdaq Vilnius during the period of five months prior the approval of renumeration. Each option is convertible into one ordinary share. The Group has assessed fair value of shares option by the Black-Scholes model which is attributable to Level 3 in fair value hierarchy. The model inputs include : • For the option granted on 31 March 2026: grant date (31 March 2026), expiry date (09 April 2029; 08 April 2030; 10 April 2031), share price on the grant date EUR 0.868, 3 -year exercise price EUR 0.721, 4 -year EUR 0.699, 5-year EUR 0.673, expected volatility of the bank’s share price 19%, risk-free interest rate –3%, 3.1%. • For the option granted on 31 March 2025: grant date (31 March 2025), expiry dates (14 April 2028; 13 April 2029; and 12 April 2030), share price on the grant date EUR 0.899, 3-year exercise price EUR 0.7683, 4-year EUR 0.7402, 5-year EUR 0.7364, expected v olatility of the bank’s share price 22%, risk-free interest rates – 2.5%, 2.8%, 2.9%; • For the option granted on 31 March 2024: grant date (31 March 2024), expiry dates (14 April 2028 and 13 April 2029), share price on the grant date EUR 0.709, 4-year exercise price EUR 0.6006, 5-year exercise price EUR 0.5774, expected volatility of the ban k’s share price 25%, risk -free interest rate – 3.5%; • For the option granted on 31 March 2023: grant date (31 March 2023), expiry dates (09 April 2027 and 14 April 2028), share price on the grant date EUR 0.747, 4-year exercise price EUR 0.6546, 5-year exercise price EUR 0.6502, expected volatility of the ban k’s share price 26%, risk -free interest rates – 5% and 2.3%; The value of the options is included in the Other equity line in the statement of financial position. Other equity consists of: 30 June 2026 31 December 2025 Group Bank Group Bank Options 1,240 822 1,627 1,201 Shares distributable to employees - - - - Total 1,240 822 1,627 1,201 During the six-month period ended 30 June 202 6, and the year ended 31 December 2025, there were no forfeited or expired share options. During the six-month period ended 30 June 2025, 1,745 thousand share options were exercised for the benefit of the Group’s identified staff (1,495 thousand for the benefit of the Bank’s identified staff), with a weighted average share price at the time of exercise of EUR 0.894. During the six-month period ended 30 June 2026, 1,179 thousand share options were exercised for the benefit of the Group’s identified staff (995 thousand for the benefit of the Bank’s identified staff), with a weighted average share price at the time of exercise of EUR 0.873. Basic earnings per share: Basic earnings per share are calculated by dividing the net profit for the period by the weighted average number of ordinary shares outstanding during the period.As of 30 June 2026, and 30 June 2025, the Group had no potential ordinary shares, therefore the diluted earnings per share are equal to the basic earnings per share. The number of ordinary registered shares outstanding as of 30 June 2026, was 652,399 thousand (30 June 2025 – 662,997 thousand).The weighted average number of ordinary registered shares outstanding was 6 44,382 thousand as of 30 June 2026, and 660,626 thousand as of 30 June 2025. Group 30 June 2026 30 June 2025 Net profit from continuing operations attributable to equity holders 23,182 31,899 Net profit (loss) from discontinued operations attributable to equity holders - - Net profit attributable to equity holders 23,182 31,899 Weighted average number of shares in issue during the period (thousand units) 644,382 660,626 Basic earnings per share (EUR) 0.04 0.05 Basic earnings per share (EUR) from continuing operations 0.04 0.05 Basic earnings per share (EUR) from discontinued operations - -
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 29 NOTE 7 NET INTEREST INCOME 2026.01.01 - 2026.06.30 2025.01.01 - 2025.06.30 Group Bank Group Bank Interest revenue calculated using the effective interest method (on financial assets at amortized cost and fair value through other comprehensive income): 117,203 106,890 110,330 101,174 on loans to other banks and financial institutions and placements with credit institutions 3,143 3,123 5,780 5,754 on loans to customers 97,780 87,543 96,950 87,894 on debt securities at amortized cost 16,280 16,224 7,390 7,316 on debt securities at fair value through other comprehensive income - - 210 210 Other similar income: 11,354 10,392 11,653 10,943 on debt securities at fair value through profit or loss 1,310 350 1,283 574 on loans at fair value through profit or loss 435 435 439 439 on finance leases 9,609 9,607 9,931 9,930 other interest income - - - - Total interest income 128,557 117,282 121,983 112,117 Interest expense: on financial liabilities designated at fair value through profit or loss - - - - on financial liabilities measured at amortized cost (56,014) (56,023) (53,562) (53,599) on other liabilities (3) - (6) - Total interest expense (56,017) (56,023) (53,568) (53,599) Net interest income 72,540 61,259 68,415 58,518 NOTE 8 NET FEE AND COMMISSION INCOME 2026.01.01 - 2026.06.30 2025.01.01 - 2025.06.30 Group Bank Group Bank Fee and commission income: for administration of loans of third parties 4,059 4,059 4,338 4,338 for settlement services 2,779 2,779 2,564 2,564 for cash operations 2,026 2,026 1,905 1,905 for account administration 3,563 3,563 3,229 3,229 for guarantees, letters of credit, documentary collection 466 466 586 584 for collection of utility and similar payments 122 122 128 128 for services related to securities 2,496 2,496 2,376 2,376 for services related to pension and investment funds management 4,302 - 4,157 - other fee and commission income 445 1,485 442 1,156 Total fee and commission income 20,258 16,996 19,725 16,280 Fee and commission expense: for payment cards (2,591) (2,591) (2,910) (2,910) for cash operations (273) (273) (219) (219) for correspondent bank and payment system fees (239) (182) (302) (228) for services related to securities (458) (458) (483) (483) for services related to pension and investment funds management (438) - (443) - other fee and commission expenses (236) (236) (253) (253) Total fee and commission expense (4,235) (3,740) (4,610) (4,093) Net fee and commission income 16,023 13,256 15,115 12,187 NOTE 9 OTHER OPERATING EXPENSES 2026.01.01 - 2026.06.30 2025.01.01 - 2025.06.30 Group Bank Group Bank Rent of buildings and premises (314) (305) (206) (198) Utility services for buildings and premises (793) (763) (657) (647) Other expenses related to buildings and premises (512) (511) (314) (313) Transportation expenses (153) (107) (203) (163) Legal costs (77) (77) (153) (153) Personnel and training expenses (455) (451) (778) (776) IT and communication expenses (12,099) (11,290) (10,666) (9,832) Marketing and charity expenses (1,629) (649) (3,675) (2,166) Service organization expenses (3,495) (3,240) (2,902) (2,684) Non-income taxes, fines (264) (27) (359) (35) Costs incurred due to debt recovery (290) (165) (305) (175) Other expenses (662) (604) (681) (512) Total (20,743) (18,189) (20,899) (17,654)
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 30 NOTE 10 IMPAIRMENT LOSSES 2026.01.01 - 2026.06.30 2025.01.01 - 2025.06.30 Group Bank Group Bank (Impairment losses) / reversal of impairment losses on loans (302) 1,590 (4,116) (2,705) Recoveries of loans previously written-off 657 20 66 51 Reversal of impairment losses / (impairment losses) on finance lease receivables (636) (636) (188) (188) (Impairment losses) on debt securities 21 21 18 18 Reversal of impairment losses on due from banks (5) (5) (23) (23) Reversal of impairment losses / (impairment losses) on other financial assets (226) (226) 453 468 (Impairment losses) on Goodwill (1,953) - - - (Impairment losses) / reversal of impairment losses on other non -financial assets 136 - - - (Impairment losses) on fund rights (8,039) - - - Provisions for other liabilities 10 - 11 - Total (10,337) 764 (3,779) (2,379) Impairment of goodwill and fund management rights related to UAB “Artea Asset Management” As at 31 December 2025, the carrying amount of goodwill allocated to the Asset Management group of cash-generating units (hereinafter – the CGU group) related to UAB “Artea Asset Management” amounted to EUR 5,024 thousand, while the carrying amount of fund management rights amounted to EUR 28,049 thousand. As at 30 June 2026, before recognising the impairment loss, the respective carrying amounts were EUR 5,024 thousand and EUR 27,437 thousand. No impairment loss was recognised based on the impairment test performed as at 31 December 2025. As at 30 June 2026, management updated the impairment test, taking into account the actual withdrawal dynamics of participants from the Lithuanian second -pillar pension funds, based on data obtained following the first and second quarters of 2026, as well as the updated forecast of future withdrawals. The projected reduction in assets under management and the related management fee income, compared with the assumptions applied in the impairment test as at 31 December 2025, was considered an indication of impairment. The cash flow projections were based on financial forecasts approved by management covering the period up to 2030. Cash flows beyond the explicit forecast period were extrapolated using a long-term growth rate of 2%. Under the base -case valuation scenario, management forecasts that, after 30 June 2026, participants will submit withdrawal applications relating to approximately EUR 345 million of pension fund assets under management. The corresponding assets are expected to be withdrawn from the funds under management in subsequent periods. Therefore, the EUR 345 million represents the projected future reduction in assets under management and does not represent assets already withdrawn as at 30 June 2026. Based on this assumption, the projected assets under management and the related fund management income and cash flows were reduced. The projected cash flows were discounted using a pre-tax discount rate of 10.15% (31 December 2025: 10.10%). As at 30 June 2026, the recoverable amount of the CGU relating to second -pillar pension fund activities, determined based on its value in use using the discounted cash flow method, amounted to EUR 13,763 thousand. The carrying amount of the CGU before recognising the imp airment loss amounted to EUR 23,755 thousand, comprising fund management rights of EUR 21,221 thousand, goodwill of EUR 1,953 thousand and other intangible assets of EUR 581 thousand. As the carrying amount of the CGU exceeded its recoverable amount, the Group recognised an impairment loss of EUR 9,992 thousand as at 30 June 2026. In accordance with IAS 36, the impairment loss was first allocated to goodwill in the amount of EUR 1,953 t housand. The remaining impairment loss was allocated proportionately between fund management rights in the amount of EUR 8,039 thousand. The impairment loss was recognised in the statement of profit or loss under “Impairment losses on loans and other assets” and was allocated to the Private Clients operating segment. No impairment losses were identified for the other CGU. The table below presents the difference between the recoverable amount and the carrying amount of the CGU relating to second-pillar pension fund activities under the scenarios considered. The carrying amount used in the sensitivity analysis is the amount before recognition of the impairment loss as at 30 June 2026. Accordingly, negative amounts represent the total impairment loss calculated under each scenario and not an additional impairment loss on top of the EUR 9,992 thousand recognised under the base-case scenario. 2026.01.01 - 2026.06.30 2025.01.01 - 2025.06.30 Group Bank Group Bank Allowance for impairment of loans As at 1 January 49,357 36,776 49,725 33,567 Change in allowance for loan impairment 303 (1,590) 4,116 2,705 Loans written off during the period (1,367) (37) (3,819) (2,180) Other factors (reclassification, FX rate shift, etc.) - - (2) (2) As at 30 June 48,293 35,149 50,020 34,090 Allowance for impairment of finance lease receivables As at 1 January 5,902 5,902 6,687 6,687 Change in allowance for impairment of finance lease receivables 636 636 188 188 Finance lease receivables written off during the period - - - - Other factors (reclassification, FX rate shift, etc.) - - - - As at 30 June 6,538 6,538 6,875 6,875 Allowance for impairment of debt securities As at 1 January 1,118 94 1,099 72 Change in allowance for impairment of debt securities (20) (22) (18) (18) Debt securities written off during the period - - - - Other factors (reclassification, FX rate shift, etc.) - - - - As at 30 June 1,098 72 1,081 54 Allowance for impairment of due from banks As at 1 January 19 19 5 5 Change in allowance for impairment of due from banks 4 4 23 23 Due from banks written off during the period - - - - Other factors (reclassification, FX rate shift, etc.) - - - - As at 30 June 23 23 28 28 Allowance for impairment of other financial assets As at 1 January 281 231 975 975 Change in allowance for impairment of other financial assets 226 226 (453) (468) Other financial assets written off during the period (17) (17) - - Other factors (reclassification, FX rate shift, etc.) 1 1 - - As at 30 June 491 441 522 507 Discount rate \ projected future reduction in assets under management 295m EUR 345m EUR 395m EUR 9.65% (6,832) (9,133) (11,436) 10.15% (7,820) (9,992) (12,165) 10.65% (8,703) (10,760) (12,817)
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 31 NOTE 10 IMPAIRMENT LOSSES (CONTINUED) Forward-looking macroeconomic scenarios As environmental factors changed, assumptions and estimates used in probability of default (PD) estimations were changed. The scenarios used to calculate PDs were based on the latest available economic change scenarios published by institutions, Group‘s management assigned judgement -based probabilities to these scenarios. It should be noted that economic forecasts used took into account ongoing Russia’s invasion to Ukraine and conflicts in the Middle East, as well as took into considerations uncertain situa tion regarding changes in USA tariffs. But without knowing result scenario of it significant uncertainties existed on how it will impact further global, country and sectors development trends. Due to such circumstances there is a significant probability that actual results may deviate from the estimated. Scenario probabilities and weighted average salary growth 2026 2027 2028 2029 2030 30 June 2026 Change in Salary Probability Change in Salary Probability Change in Salary Probability Change in Salary Probability Change in Salary Probability Base Scenario 8.00% 50% 6.80% 50% 5.80% 50% 5.20% 50% 5.20% 50% Optimistic Scenario 11.00% 15% 9.50% 15% 7.50% 15% 7.50% 15% 7.50% 15% Pessimistic Scenario 8.00% 35% 5.00% 35% 3.00% 35% 3.00% 35% 3.00% 35% Weighted average Salary growth 8.45% 6.23% 5.83% 4.78% 4.78% 2026 2027 2028 2029 2030 31 December 2025 Change in Salary Probability Change in Salary Probability Change in Salary Probability Change in Salary Probability Change in Salary Probability Base Scenario 8.00% 60% 7.00% 60% 5.80% 60% 5.20% 60% 5.20% 60% Optimistic Scenario 8.00% 25% 4.00% 25% 3.00% 25% 3.00% 25% 3.00% 25% Pessimistic Scenario 11.00% 15% 9.50% 15% 7.50% 15% 7.50% 15% 7.50% 15% Weighted average Salary growth 8.45% 6.63% 5.36% 5.00% 5.00% NOTE 11 SIGNIFICANT INFORMATION ON OTHER INCOME STATEMENT ITEMS Net gain from trading activities related to insurance activities 2026.01.01 - 2026.06.30 2025.01.01 - 2025.06.30 Group Bank Group Bank Net gain from operations with securities 17,708 - (814) - Net gain from foreign exchange and related derivatives 5 - (5) - Dividend income 133 - 68 - Total 17,846 - (751) - Net gain from trading activities (excl. insurance) 2026.01.01 - 2026.06.30 2025.01.01 - 2025.06.30 Group Bank Group Bank Net gain from operations with securities 2,498 2,248 (3,208) (3,165) Net gain from foreign exchange and related derivatives (33) (33) 8,209 8,216 Dividend income 32 31 80 13 Net profit (loss) on hedge accounting (200) (200) - - Total 2,297 2,046 5,081 5,064 The result of commercial activities includes the investment result of the insurance company's assets (when the investment risk is borne by the policyholder) – for the six-month period ending on 30 June 2026 – a net profit of 18,422 thousand Euros, for the six-month period ending on 30 June 2025 – a net loss of 749 thousand Euros. Revenue related to insurance activities 2026.01.01 - 2026.06.30 2025.01.01 - 2025.06.30 Group Bank Group Bank Amounts relating to changes in LFRC - Expected benefits incurred 1,493 - 1,550 - - Expected expenses incurred 1,839 - 1,762 - - Change in the risk adjustment 488 - 772 - - CSM recognized 1,416 - 1,392 - Recovery of acquisition cash flows 702 - 612 - Other insurance related revenue 1,447 - 1,322 - Total 7,385 - 7,410 -
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 32 NOTE 11 SIGNIFICANT INFORMATION ON OTHER INCOME STATEMENT ITEMS (CONTINUED) Expenses related to insurance activities 2026.01.01 - 2026.06.30 2025.01.01 - 2025.06.30 Group Bank Group Bank Incurred claims expenses (1,659) - (1,547) - Losses on onerous contracts and reversal of those losses 24 - (65) - Insurance acquisition costs (702) - (611) - Other expenses (1,390) - (1,270) - Interest accrued to insurance contracts (888) - (988) - Change in financial assumptions through P&L (10,127) - 1,494 - Changes related to effect of discount rates applied on initial recognition 16 - (12) - Change in financial liabilities (7,379) - - - Commissions for investment contracts (396) - (470) - Costs of insurance policies - - - - Total (22,501) - (3,469) - NOTE 12 RELATED-PARTY TRANSACTIONS Related parties with the Bank are classified as follows: a) members of the Bank’s Supervisory Council and Board (which also are the main decision makers of the Group), their close family members and companies that are controlled, jointly controlled over by these related parties; b) subsidiaries of the Bank; c) the shareholders holding over 20% of the Bank’s share capital or being a part of a voting group acting in concert that holds over 20% of voting rights therefore presumed to have a significant influence over the Group. During 2026 and 2025, a certain number of banking transactions were entered into with related parties in the ordinary course of business. These transactions include settlements, loans, deposits and foreign currency transactions. According to the local legislation, the informa tion on executed material transactions with related parties is published on Bank’s website (www.artea.lt › About bank › Information › Reports regarding the transactions with related parties). The balances of loans granted to and deposits accepted from the Bank’s related parties, except for subsidiaries, were as follows: 30 June 2026 31 December 2025 Balances of deposits Loan balances (including off balance) Balances of deposits Loan balances (including off balance) Members of the Council and the Board 1,421 458 1,512 454 Other related parties (excluding subsidiaries of the Bank) 7,377 13,388 4,645 2,135 Total 8,798 13,846 6,157 2,589 As of 30 June 2026 , the bank's individual impairment provisions related to loans to related parties, excluding subsidiaries, amounted to 16 thousand EUR (as of 31 December 2025– 15 thousand EUR). Remuneration of the management of the Bank According to the Bank's Remuneration Policy, the members of the management bodies are paid a fixed and annual variable remuneration. The annual variable remuneration fund is formed based on the Bank's performance, taking into account current and future ris ks. During six -month period ended 30 June 2026 the total amount of fixed and annual variable renumeration (total of payments in cash and in shares of the Bank) to the Bank’s Board members amounted to EUR 752 thousand (30 June 2025 EUR 1 292 housand). Transactions with subsidiaries: Balances of transactions with the subsidiaries are presented below: 30 June 2026 31 December 2025 Balances of deposits Balances of loans and debt securities Balances of deposits Balances of loans and debt securities Non-financial institutions 44,192 68,509 59,048 71,284 UAB Retrofit Fund 1 ir UAB Retrofit Fund 2 42,646 68,509 57,270 71,284 Financial institutions 77 340,717 58 300,774 Total 44,270 409,226 59,106 372,058
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 33 NOTE 12 RELATED-PARTY TRANSACTIONS (CONTINUED) Bank’s total balances with subsidiaries: 30 June 2026 31 December 2025 Assets Loans 374,069 372,057 UAB Retrofit Fund and UAB Retrofit Fund 2 68,509 71,284 Other assets - - Liabilities and shareholders’ equity Deposits 44,270 59,106 UAB Retrofit Fund and UAB Retrofit Fund 2 42,646 57,270 Other liabilities - - Income and expenses arising from transactions with subsidiaries: As of 30 June 2026 the balance of individual allowance for impairment losses on loans to subsidiaries Artea Retrofit Fund 1 and Artea Retrofit Fund 2 amounted to EUR 475 thousand (31 December 2025: EUR 482 thousand). 2026.01.01 - 2026.06.30 2025.01.01 - 2025.06.30 Income Interest 8,874 8,147 Commission income 5,996 3,553 FX gain (loss) - - Share of the profit or loss of investments in subsidiaries accounted for using the equity method 70 5,843 Other income 157 213 Expenses Interest 9 37 Operating expenses (14) 833 (Impairment losses)/ reversal of impairment losses on loans - 560 Allowance for impairment losses on investments in subsidiaries - - NOTE 13 LIQUIDITY, MARKET AND OPERATIONAL RISKS Liquidity risk Liquidity risk means the risk that the Bank is unable to meet its financial obligations in time or that it will not manage to receive financial resources during a short time by borrowing or selling the assets. Liquidity risk management process The liquidity risk management depends on the Bank's ability to cover the cash shortage by borrowing from the market and the liquidity of the market itself. Liquidity risk management is regulated by the Procedures for Liquidity Risk Management approved by the Board of the Bank. The management of the current and non-current liquidity risk is distinguished in the mentioned procedures. The current liquidity is based on the control of the incoming and outgoing cash flow. The non-current liquidity is managed on the limit system basis. Tables below present the assets and liabilities according to their remaining maturity defined in the agreements. However, actual maturity of the particular types of assets and liabilities may be longer as, for example a portion of loans and deposits is extended and thus the real repayment terms of short-term loans and demand deposits move forward. The structure of the Group’s assets and liabilities by maturity as at 30 June 2026 was as follows: On demand Less than 1 month 1 to 3 months 3 to 6 months 6 to 12 months 1 to 3 years More than 3 years Maturity undefined Total Total assets 397,851 132,572 135,360 338,380 645,537 1,848,163 2,447,374 270,613 6,215,850 Total liabilities and shareholders’ equity 2,543,908 223,703 345,834 495,734 633,323 1,084,943 292,857 595,548 6,215,850 Net liquidity gap (2,146,057) (91,131) (210,474) (157,354) 12,214 763,220 2,154,517 (324,935) - The structure of the Group’s assets and liabilities by maturity as 31 December 2025 was as follows: On demand Less than 1 month 1 to 3 months 3 to 6 months 6 to 12 months 1 to 3 years More than 3 years Maturity undefined Total Total assets 392,652 97,796 143,060 337,777 522,988 1,979,136 2,304,749 297,312 6,075,470 Total liabilities and shareholders’ equity 2,296,485 234,711 357,418 464,905 666,356 494,097 958,441 603,057 6,075,470 Net liquidity gap (1,903,833) (136,915) (214,358) (127,128) (143,368) 1,485,039 1,346,308 (305,745) -
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 34 NOTE 13 LIQUIDITY, MARKET AND OPERATIONAL RISKS (CONTINUED) The structure of the Bank’s assets and liabilities by maturity as at 30 June 2026 was as follows: On demand Less than 1 month 1 to 3 months 3 to 6 months 6 to 12 months 1 to 3 years More than 3 years Maturity undefined Total Total assets 391,857 123,486 116,241 311,449 897,116 1,712,357 2,316,683 99,228 5,968,417 Total liabilities and shareholders’ equity 2,540,714 212,290 344,158 493,817 628,927 1,069,281 81,575 597,655 5,968,417 Net liquidity gap (2,148,857) (88,804) (227,917) (182,368) 268,189 643,076 2,235,108 (498,427) - The structure of the Bank’s assets and liabilities by maturity as at 31 December 2025 was as follows: On demand Less than 1 month 1 to 3 months 3 to 6 months 6 to 12 months 1 to 3 years More than 3 years Maturity undefined Total Total assets 386,218 89,628 418,997 309,388 468,505 1,841,832 2,179,385 150,074 5,844,027 Total liabilities and shareholders’ equity 2,292,867 223,881 356,858 463,192 661,998 480,465 760,044 604,722 5,844,027 Net liquidity gap (1,906,649) (134,253) 62,139 (153,804) (193,493) 1,361,367 1,419,341 (454,648) - Market risk Market Risk is defined as the risk of incurring losses due to adverse movements in market parameters, such as interest rates, equity/securities prices, and foreign exchange rates. Identifying securities price risk and interest rate risk as its most significant market risk components, the Group manages foreign exchange risk in accordance with a dedicated management procedure aimed at minimizing exposure. The Group does not engage in speculative transactions aimed at profiting from exchange rate fluctuations. Open foreign currency positions (calculated as on-balance and off-balance sheet assets minus liabilities) and the Net Open Position (NOP) are regularly reviewed by the Risk Management Committee, which initiates maximum currency limits as needed. Interest rate risk arises from the mismatch in the revaluation of the Bank's and Group's assets and liabilities, manifesting through changes in cash flows and fair value. Risk is managed in accordance with the approved Interest Rate Risk Policy for the Banking Book, following the core principle of refraining from speculative positions based on future interest rate expectations. Risk management employs an internal risk indicator and limit framework that assesses sensitivity across interest rate reset periods , while hedge accounting is utilized to mitigate fair value fluctuations of hedged liabilities. The Risk Department regularly reports compliance with internal indicators and limits to the Risk Management Committee. Securities risk represents the risk of losses arising from investments in debt and equity instruments and is governed by the Securities Investment Limit Policy. To effectively manage debt securities portfolio risk, a comprehensive limit framework is applie d, including duration, credit rating, geographical region, issuer, and portfolio limits. For trading and available -for-sale portfolios, additional Value at Risk (VaR) and capital requirement limits are enforced. Every investment decision is evaluated for its impact on limit compliance prior to execution, and monthly limit monitoring reports are submitted to the Risk Management Committee. Furthermore, portfolio concentration is systematically assessed by economic sector, duration, credit quality, and geographic distribution. Operational risk Operational risk is the risk of experiencing losses due to improper or unimplemented internal control processes, employee errors and/or illegal actions, disruptions in information system operations, or the influence of external events. Operational risk, unlike other types of risks (credit, market, liquidity), is not intentionally assumed with the expectation of gaining benefits; it arises naturally in the course of the Bank's activities. In 2025, the Bank consistently reinforced a culture of operational and reputational risk management across the entire Banking Group, with the aim of enhancing operational resilience and compliance with applicable supervisory requirements. At the beginning of the year, e-learning modules on operational risk management were updated for all Group companies, and the Operational Risk Management Procedure was thoroughly reviewed and revised.Particular focus was placed on the management of outsourcing arrangements and information and communication technology (ICT) services, in light of increasingly stringent regulatory requirements in the areas of operational resilience and third-party risk. In 2025, the Procedure for the Management of Outsourced and ICT Services w as updated to strengthen risk assessment, control, and oversight mechanisms. Business continuity management remains a strategic priority for the Bank and a critical component of the operational resilience framework. In 2025, the Business Continuity Management Procedure was updated to ensure full alignment with the requirements of t he international standard ISO 22301. In October, a comprehensive business continuity test conducted at the Bank confirmed the effectiveness of the established measures, no significant deficiencies that could adversely affect the Bank’s ability to maintain business continuity were identified. To further strengthen operational resilience and ensure the stable and reliable performance of critical functions during 2026, the Bank will continue to enhance its business continuity management framework and oversight systems for outsourced and informati on and communication technology (ICT) services, while concurrently reinforcing its operational and reputational risk management culture. Implementation and monitoring in these areas will be carried out consistently and on a centralized basis across the entire Group.
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 35 NOTE 14 FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE The Group classifies financial instruments measured at fair value in accordance with the fair value hierarchy established by IFRS 13, taking into account the observability of inputs used in the valuation, market liquidity and other relevant criteria. Following a review of the financial instrument classification methodology and the data used in the valuation of assets, the Group and the Bank reclassified certain financial assets between the levels of the fair value hierarchy during the second quarter of 2026 . • Level I – securities whose fair value is based on quoted prices in active markets and which are characterised by high market liquidity and a high degree of input observability. • Level II – securities whose fair value is based on directly or indirectly observable market inputs; however, the characteristics of the active market and market liquidity are not sufficient for classification within Level 1. • Level III – securities whose valuation relies significantly on unobservable inputs or for which market liquidity and input observability are limited. The distribution of the Group's and the Bank's financial assets and financial liabilities measured at fair value by fair value hierarchy level as at 30 June 2026 is presented below. Comparative information as at 31 December 2025 has been reclassified in accordance with the updated classification methodology to ensure comparability of the information. .Measurement of financial assets and liabilities according to the fair value hierarchy 30 June 2026 31 December 2025 (reclassified) 31 December 2025 Group Bank Group Bank Group Bank LEVEL I Trading book securities 496 - - - 1 1 Investment securities at fair value 353,801 150,768 317 008 150 045 391,485 224,522 Total Level I financial assets 354,297 150,768 317 008 150 045 391,486 224,523 LEVEL II Derivative financial instruments - assets 1,969 1,969 164 151 190 177 Derivative financial instruments - liabilities (8,245) (8,245) (3 326) (3 326) (3,326) (3,326) Trading book securities - - - - 8,575 8,575 Investment securities at fair value 136,697 96,333 170 035 100 164 98,259 28,388 Total Level II financial assets 130,421 90,057 166 873 96 989 103,698 33,814 LEVEL III Trading book securities 9,897 9,897 11 031 10 038 2,429 1,436 Investment securities at fair value 20,237 4,295 17 652 4 764 14,952 2,064 Assets related to securitization - - - - - - Non-listed equity securities 200 200 270 270 270 270 Loans granted 6,461 6,461 6 203 6 203 6,203 6,203 Total Level III financial assets 36,795 20,853 35 156 21 275 23,854 9,973 Fair value of investment securities held to collect cash flows: The fair value for Group’s investment securities at amortized cost is based on market prices or broker/dealer price quotations – i.e. it is estimated using valuation technique attributable to Level I in the fair value hierarchy. 30 June 2026 31 December 2025 Carrying value Fair value Carrying value Fair value Investment securities at amortized cost 1,224,568 1,217,089 1,356,852 1,345,170
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 36 NOTE 15 SEGMENT INFORMATION Business segments During 2026 first quarter, the Group reviewed its internal segment reporting structure in order to better reflect the current operating model, customer ownership and the centralised treasury function. Comparative segment information has been restated accordingly to ensure consistency and comparability. Previously, the Group reported three operating segments: Business customers, Private customers and Investment. The former Investment segment included activities relating to investing customers, results of certain subsidiaries and other investment - related activities. Following the review, activities previously allocated to this segment were reassessed and reallocated based on the underlying customer type or the economic substance of the activity. Customer -related activities previously included within the Investment segment are now allocated to either the Business customers or Private customers segments, depending on the relevant customer base, while the activities of subsidiaries serving private customer business are presented within the Private customers seg ment. At the same time, the former Investment segment has been replaced by a new Treasury segment. The newly presented Treasury segment mainly comprises net interest income arising from treasury funding, liquidity management and internal funds transfer pricing allocations, income from debt securities and other financial instruments held for liquidity an d treasury management purposes, gains and losses from derivative financial instruments, including interest rate swaps, as well as trading income, including realised and unrealised fair value movements of securities and other treasury instruments. Treasury funding costs and benefits are allocated to customer segments through internal pricing mechanisms, with the corresponding impact reflected in the results of the Business customers and Private customers segments. From now on, the Group’s operating model and strategic decisions are structured around two main business lines – business customers and private customers – while separately identifying the treasury function that supports their activities. It should be noted that the investment area remains an important part of the Bank Group’s operations and will continue to be developed within the respective business lines. Management believes that the revised segment structure provides more relevant and transparent information by more clearly distinguishing the performance of customer - facing businesses from centrally managed treasury activities. The key indicators of the Group's principal business segments for the six-month period ended 30 June 2026 are presented below. 30 June 2026 Segmentation by profit centres Corporate Private Treasury Total Net interest income 41,619 20,003 10,918 72,540 Net fee and commission income 9,662 6,361 - 16,023 Net gain from insurance activities - 2,730 - 2,730 Other income 1,801 1,086 (195) 2,692 Salaries and related expenses (13,308) (15,426) - (28,734) Other expenses (10,910) (13,702) - (24,612) Impairment expenses (454) (10,075) 16 (10,513) Income before income tax 28,410 (9,023) 10,739 30,126 Income tax (6,549) 2,080 (2,475) (6,944) Net profit centre result 21,861 (6,943) 8,264 23,182 Total segment assets 2,495,983 1,566,513 2,153,354 6,215,850 The key indicators of the Group's principal business segments (restated) for the six- month period ended 30 June 2025 are presented below. The previous segmentation by profit centres is available in the Group's previously published financial statements. 30 June 2025 (restated) Segmentation by profit centres Corporate Private Treasury Total Net interest income 44,408 20,314 3,694 68,416 Net fee and commission income 9,429 5,686 - 15,115 Net gain from insurance activities - 3,193 - 3,193 Other income 4,563 290 4,272 9,125 Salaries and related expenses (13,029) (14,592) - (27,621) Other expenses (10,970) (14,335) - (25,305) Impairment expenses 994 (4,768) (5) (3,779) Income before income tax 35,395 (4,212) 7,961 39,144 Income tax (6,551) 780 (1,474) (7,245) Net profit centre result 28,844 (3,432) 6,487 31,899 Total segment assets 2,247,140 1,511,670 1,518,677 5,277,487
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 37 NOTE 16 SELECTED INFORMATION OF FINANCIAL GROUP According to local legislation the Bank is required to disclose certain information for the Financial group. As of 30 June 2026 and 31 December 2025, the Bank owned the following subsidiaries included in the prudential scope of consolidation (the Bank and three subsidiaries comprised the Financial group, all of the entities attributable to Financial Group operate in Lithuania): 1. Artea Turto Fondas UAB (real estate management activities), 2. Artea Lizingas UAB (consumer financing activities), 3. Artea Asset Management UAB (investment management activities). In the Financial Group financial statements, the subsidiaries of the Bank that are not included in the Financial Group are not consolidated in full as would be required by IFRS 10 but presented on the consolidated balance sheet of the Financial Group as investments in subsidiaries , accounted using the equity method , in the same way as presented on the balance sheet of the Bank. This presentation is consistent with the regulatory reporting made by the Bank according to the Regulation (EU) No 575/2013 on prudential requirements for credit institutions and investment firms (CRR). Financial Group‘s condensed statement of financial position 30 June 2026 31 December 2025 ASSETS Cash and cash equivalents 391,667 384,923 Securities in the trading book 10,393 11,031 Due from other banks 10,862 9,035 Derivative financial instruments 1,969 151 Loans to customers 3,963,726 3,713,724 Investment securities at fair value 258,806 262,380 Investment securities at amortized cost 1,216,662 1,348,506 Investments in subsidiaries and associates 34,494 44,372 Intangible assets 26,582 37,513 Property, plant and equipment 36,476 15,436 Current income tax prepayment 1,213 7,853 Deferred income tax asset 5,554 6,460 Other assets 23,532 18,574 Total assets 5,981,936 5,859,958 LIABILITIES Due to other banks and financial institutions 201,423 197,957 Derivative financial instruments 8,245 3,326 Due to customers 4,060,526 3,961,201 Debt securities in issue 1,034,607 1,034,463 Current income tax liabilities 701 967 Deferred income tax liabilities 4,919 6,485 Other liabilities 74,637 51,173 Total liabilities 5,385,058 5,255,572 EQUITY Share capital 189,196 189,196 Share premium 25,534 25,534 Treasury shares (-) (4,657) (4,967) Reserve capital 756 756 Statutory reserve 91,457 76,133 Reserve for acquisition of own shares 20,000 20,000 Revaluation reserve (799) (608) Other equity 1,194 1,581 Retained earnings 274,197 296,761 Non-controlling interest - - Total equity 596,878 604,386 Total liabilities and equity 5,981,936 5,859,958
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CONDENSED INTERIM FINANCIAL STATEMENTS (All amounts are in EUR thousand, unless otherwise stated) 38 NOTE 16 SELECTED INFORMATION OF FINANCIAL GROUP (CONTINUED) Financial Group‘s condensed income statement 2026.01.01 - 2026.06.30 2025.01.01 - 2025.06.30 Interest revenue calculated using the effective interest method 117,136 102,703 Other similar income 10,511 18,470 Interest expense and similar charges (56,017) (53,567) Net interest income 71,630 67,606 Fee and commission income 20,453 19,940 Fee and commission expense (4,212) (4,562) Net fee and commission income 16,241 15,378 Insurance net gain from trading - - Revenue related to insurance (incl. Interest) - - Expenses related to insurance activities - - Net income (expenses) from Insurance activity - - Net gain (loss) from derecognition of financial assets 155 3,756 Net gain from trading activities (excl. Insurance) 2,052 5,081 Other operating income 271 343 Net income 90,349 92,164 Salaries and related expenses (28,310) (27,212) Depreciation and amortization expenses (3,846) (4,353) Other operating expenses (20,619) (20,719) Operating profit before impairment losses 37,574 39,880 Allowance for impairment losses on loans and other assets (10,338) (3,781) Share of the profit or loss of investments in subsidiaries accounted for using the equity method 2,516 2,659 Profit from continuing operations before income tax 29,752 38,758 Income tax expense (6,598) (6,895) Net profit from continuing operations for the period 23,154 31,863 Profit (loss) from discontinued operations, net of tax - - Net profit for the period 23,154 31,863 Net profit attributable to: Owners of the Bank 23,154 31,863 From continuing operations 23,154 31,863 From discontinued operations - - Non-controlling interest - - Financial Group‘s condensed statement of comprehensive income 2026.01.01 - 2026.06.30 2025.01.01 - 2025.06.30 Net profit for the period 23,154 31,863 Other comprehensive income Items that may be subsequently reclassified to profit or loss: Gain from revaluation of financial assets (229) 733 Buildings revaluation reserve (12) - Deferred income tax on gain from revaluation of financial assets 50 (116) Other comprehensive income, net of deferred tax (191) 617 Total comprehensive income for the period 22,963 32,480 Total comprehensive income (loss) attributable to: Owners of the Bank 22,963 32,480 Non-controlling interest - - NOTE 17 SUBSEQUENT EVENTS Changes in the Bank's management that occurred after the end of the reporting period are described in the Financial summary section "Management of the Bank". No other significant events have occurred after the end of the reporting period that would have an impact on these financial statements.
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CONFIRMATION FROM THE RESPONSIBLE PERSONS We, Acting Chief Executive Officer of Artea bankas AB Tomas Varenbergas and Acting Chief Financial Officer Paulius Daukša, hereby confirm that the provided condensed interim consolidated financial statements of Artea bankas AB for the six-month period ended 30 June 2026 have been prepared in compliance with applicable accounting standards and present fairly, in all material respects, the assets, liabilities, financial position, results of operations and cash flows of Artea bankas AB and its Group. Acting Chief Executive Officer Tomas Varenbergas Acting Chief Financial Officer Paulius Daukša 29 July 2026