Gránit Bank 3Q25 Review

Granit Bank’s (“Granit”, “the bank”) group-level profit after tax came in above our expectations in the first nine months of 2025 (forecast: 10.5Bn; actual: 13.7Bn; +30% beat).
Total assets grew 11% y/y to 1 702Bn at the end of the third quarter (3Q25), and by the end of 3Q25 the bank had already exceeded our FY25 balance sheet forecast by 8%. Growth was supported by the nearly 48Bn capital raise in 4Q24, including the 17.7Bn IPO. Deployment of the raised capital is ongoing, providing a base for long-term growth.
Adjusted Return on Equity (ROE) fell to 15.1% in the first nine months (9M25), versus 31.1% in the same period last year, mainly due to the higher equity base, which negatively affected the ratio.
In line with plans, the bank intends to start paying dividends no earlier than after the 2026 financial year. Dividends will be capped at 25% of earned profit.
The growth trajectory continues to match our expectations, supporting the fundamental value we previously set. The current 1.78x P/B (share price: 14 450 on 30/09/2025; book value per share: 8,115 on 30/09/2025) is in line with traditional commercial bank valuations, which in our view undervalues Granit Bank’s fintech-style business model, typically priced above the banking sector. Given the positive outlook, we maintain our Buy recommendation with a target price of 18 306.