Iute Group, a provider of lending, payment and insurance services in Southeast Europe, increased its total income by 11.1% year-on-year to EUR 66.1 million in the first half of 2026. Adjusted EBITDA increased by 26.3% to EUR30.6 million. The Group’s net profit was EUR 4.1 million.

According to Tarmo Sild, CEO of Iute Group, the first half of the year was a period of margin pressure on the one hand and continued strategic investment in developing the digital bank on the other. “We continued transitioning into the digital bank with themost-used superapp for customers in every market where we operate. Banking service for the future is a personalized bundle. We need to be in the right place at the right time with our offer and bring loans, payments, deposits and insurance together into anindividually suitable mix of products,” said Sild.

During the first half of the year, IuteBank started digitally serving its existing customers in Ukraine and launched the Myiute app with its first core banking services. Customers now have access to current accounts, deposits, IBAN transfers and foreign exchange.At the same time, the Group continues the digital transformation of Energbank in Moldova.

Total downloads of the Myiute app increased by 9.8% to 1.82 million by the end of June. Nearly 2.7 million transactions were processed through the Myiute wallet during the first half of the year, 4.7% more than a year earlier. Insurance also continued to growrapidly, with insurance brokerage revenue increasing by 59.6% year-on-year and accounting for 5.7% of the Group’s total income.

According to Sild, the growth of insurance demonstrates how the development of the digital bank is making Iute’s revenue base more diversified. “We grew revenue while continuing to invest in new capabilities. Our goal is to develop our value propositions quicklyand identify the services customers actually want and are willing to pay for,” said Sild.

The Group’s gross loan portfolio reached EUR 397 million at the end of June, up 5.3% year-on-year. Iute continued risk-based lending, prioritising portfolio quality over volume growth. The loan application approval rate declined from 61% to 52% year-on-year,while the CPI30 repayment discipline indicator improved from 87.9% to 89.3%. Cost of risk stood at 7.7%.

Iute Group’s net profit for the first half of the year was EUR 4.1 million. “Net profit was affected by the higher cost of funding, primarily following the EUR 140 million Eurobond tap completed in June. The larger funding base means higher interest costs inthe short term, but provides a sound and predictable funding basis for the next years of growth. Our task now is to deploy this capital efficiently,” added Sild.

In June, Iute completed a EUR 140 million tap of its existing Eurobond. At the end of the first half, Iute met both Eurobond covenants: the capitalisation ratio stood at 22.6%, compared with the required minimum of 15%, while the interest coverage ratio was1.50x.

“The underlying ability of our business to generate cash is funding continued growth,” added Sild.