Addiko Bank’s Serbian subsidiary delivered its strongest financial performance to date in 2025, reporting record profitability following a broad restructuring of its business model and a deep operational transformation aimed at improving efficiency, credit quality and digital banking capabilities.
The bank reported net profit of 1.86 billion RSD, representing a 72 % increase compared with the previous year, while the balance sheet continued to expand in a stable manner. Total assets reached 103.8 billion RSD at the end of 2025, underscoring the bank’s strengthening position in the Serbian financial market.
The results reflect a multi-year transformation strategy implemented by the bank, which focused on streamlining internal processes, strengthening credit risk management and shifting the business model toward higher-value lending segments. According to company statements, organizational and operational reforms significantly improved the quality of the loan portfolio and overall efficiency of the institution.
One of the most visible improvements occurred in credit risk indicators. The share of non-performing loans declined from 6.4 % to 4.2 %, reducing the bank’s exposure to potential credit losses and contributing to improved profitability. At the same time, the bank’s capital adequacy ratio reached 26.48 %, confirming a strong capital position relative to regulatory requirements.
Digital transformation was another central component of the restructuring program. The bank introduced automated decision-making processes and accelerated credit approval procedures across several business segments. By the end of 2025, 91 % of retail loan applications were processed automatically, while approval times for loans to small and medium-sized enterprises were shortened to around seven days.
The strategic shift reflects broader changes taking place in Serbia’s banking sector, where institutions are increasingly focusing on digital banking platforms, operational efficiency and targeted lending strategies. Competition among banks has intensified in recent years as financial institutions seek to expand retail and SME lending while maintaining strong capital buffers and risk management standards.
Addiko Bank’s transformation program also aligns with the wider strategy of the Addiko Group, which has repositioned itself in Central and Southeast Europe as a specialized consumer and SME lender. Rather than pursuing universal banking models, the group has concentrated on simplified products, faster credit approval processes and digital service channels.
For the Serbian market, these changes come at a time when the banking sector remains relatively robust despite macroeconomic volatility in the broader European environment. Serbia’s financial system is characterized by strong capitalization levels, improving asset quality and a growing role of digital banking services, particularly among younger customers and small businesses.
Against that backdrop, Addiko Bank’s record results suggest that its transformation strategy has begun to deliver tangible financial gains. By combining tighter credit risk management with automated lending processes and targeted market segments, the bank has strengthened both profitability and operational resilience within the competitive Serbian banking landscape.
