Addiko Bank’s Serbian subsidiary has reported its highest financial performance to date in 2025, achieving a record profit after implementing a comprehensive restructuring of its business model and operational framework. This transformation was aimed at enhancing efficiency, improving credit quality, and advancing digital banking capabilities.
The bank announced a net profit of 1.86 billion RSD, marking a significant 72% increase from the previous year. The total assets of Addiko Bank reached 103.8 billion RSD by the end of 2025, reflecting its growing influence in the Serbian financial sector.
These results are indicative of a multi-year transformation strategy focused on optimizing internal processes, enhancing credit risk management, and transitioning towards higher-value lending segments. Organizational reforms have notably improved the quality of the loan portfolio and the overall operational efficiency of the bank.
A key aspect of this transformation is the improvement in credit risk indicators, with non-performing loans decreasing from 6.4% to 4.2%. This reduction has lessened the bank’s exposure to potential credit losses and has positively impacted profitability. Additionally, the capital adequacy ratio stood at 26.48%, indicating a robust capital position well above regulatory requirements.
Digital transformation played a crucial role in this restructuring effort. Addiko Bank implemented automated decision-making processes that expedited credit approvals across various business segments. By the end of 2025, 91% of retail loan applications were processed automatically, and approval times for loans to small and medium-sized enterprises (SMEs) were reduced to approximately seven days.
This strategic redirection aligns with broader trends within Serbia’s banking sector, where institutions are increasingly prioritizing digital banking platforms, operational efficiency, and targeted lending strategies. Competition among banks has intensified as they aim to enhance retail and SME lending while upholding strong capital reserves and effective risk management practices.
Addiko Bank’s transformation is also consistent with the overarching strategy of the Addiko Group, which has repositioned itself in Central and Southeast Europe as a specialized lender for consumers and SMEs. The group has opted for simplified product offerings, expedited credit approval processes, and enhanced digital service channels instead of pursuing traditional universal banking models.
In the context of Serbia’s banking landscape, these developments occur amid relative robustness despite macroeconomic uncertainties in Europe. The financial system in Serbia demonstrates strong capitalization levels, improving asset quality, and an increasing reliance on digital banking services, particularly among younger demographics and small businesses.
Addiko Bank’s record performance underscores the effectiveness of its transformation strategy, which combines rigorous credit risk management with automated lending processes tailored to specific market segments. This approach has fortified both profitability and operational resilience within Serbia’s competitive banking environment.
