Rising LeverageAn elevated debt-to-equity ratio reduces financial flexibility and increases vulnerability to rate rises or funding stress. Persistent higher leverage can constrain capital buffers, limit lending capacity in downturns and require stronger earnings or capital actions to restore comfort.
Questionable Sustainability Of Recent FCF GrowthGrowth off a negative free-cash-flow base can overstate trend durability. If FCF improvement was driven by one-off items or cyclical recovery, future reinvestment, provisioning and dividend capacity may be weaker than headline growth implies, raising forecast risk.
Sensitivity To Credit CostsAs a regional lender focused on households and SMEs, earnings are structurally exposed to local economic cycles and borrower stress. Rising provisions or credit losses would quickly erode margins and capital, making credit-cost control and underwriting quality critical long-term risks.