Gránit Bank 2Q25 Review

Granit Bank reported after-tax profit above our expectations for the first half of 2025 (expectation: HUF 7.0Bn; actual: HUF 7.7Bn; +10% outperformance).
The balance sheet grew by 13% y/y, exceeding the 2.7% growth rate of the banking sector (expectation: HUF 1,571Bn; actual: HUF 1,679Bn; +7% outperformance). The balance sheet expansion was supported by the approx. HUF 48Bn capital raised in 4Q2024, including the HUF 17.7Bn IPO. The deployment of the raised capital is still in progress, providing the foundation for long-term growth.
In line with plans, the bank plans to pay dividends only after the 2026 financial year.
The dynamic growth trajectory supports our previous company valuation. The current P/BV of 1.55x is closer to the valuation of a traditional commercial banks. In our view, however, Granit’s digital business model is more comparable to companies with fintech solutions, which are often valued above the banking sector. Based on the above and our positive expectations, we maintain our Buy recommendation with a target price of HUF 18,306.