Stage is yours. Yeah, welcome here to a short update on the 2025 numbers of Hypoport SE here on CT11A. So we delivered record gross profit in 2025, 266 million, 70 million more than in our last best year 2021, even though our core market mortgages and the other credit markets are roughly down 20 to 25%. So we took market share, we optimized our profit structure, and we do this all with 2% lower headcount than we had in 2021, resulting in fourth best EBIT for now, 33 million, and the third year in a row of our recovery back to normal.
A short view here on the smaller segments and the highlights there. The financing platform delivered solid growth this year, even in this challenging market environment, in housing associations, German Mittelstand and personal loan business. The key driver is our digitalization of the housing associations and huge gain in traction and underwriting for our EIP system here. And let's say we take market share and are short before turning profitable. This platform and the whole segment profits from this and we create growth here in a, as I say, difficult market environment. The insurance platform is more or less flat compared to last year. The platform businesses grew double digit, but the supporting businesses around were weak in 2025. So for 2026 it's a good base to grow double digit top and bottom line there, but 2025 is slightly disappointing with the performance of the segment in general.
So coming to our core business, my mortgage business here and everything around home ownership in Germany. Strongest segment, as you are aware, and the segment that was growing significant last year. Market environment: we saw stable interest rates, we saw a positive trend on the availability of properties to buy, we saw 4 to 5% increase in the property values, and with this the mortgage transactions. And this is all supported not by additional housing coming to the market, so new construction, it's all supported by existing homes because the renting market here in Germany, which is still dominating the housing market with 58%, is completely frozen thanks to massive rent regulations, the potential of reconstructing or building new renting apartments here. So with this regulatory freezing of the renting market, the home ownership market is the only exit for people, and this drives people to this market and increases the number of transactions and the average transaction volume. We grew in this market overall by 13%. Our own franchise system grew by 13%, outperformed both from the savings bank and cooperative bank side with plus 20 and plus 15% where we took market share. Focus is, as I said already, the purchase area of existing homes. There we saw a record year in volume on the platform even when the market is down more than 20%. And we have lower average mortgage volumes, so we see more transactions than in 2021 here with slightly higher volume even with lower prices. What we are still missing is new construction, so the pressure on the price side will stay because for now we finance roughly 50% of the volume which we had in 2021. Means in 2 years, just half of what was finished in 2023 will be finished because you have roughly a 2-year delay between financing and finish of construction. So the pressure will stay in the housing market and with this prices will trickle up. It's a huge incentive for people who are interested in finding a new home for the family or for their kids to buy. As well, still under stress is the area of refinancing. The German system of 15 years plus fixed interest rate periods brings us a weak time until 2027, when the 15-year mortgages which were not refinanced up until 2022 will be due for refinancing. Then we will see a normalization here and then we come back to the 3 billion 4 billion of quarterly refinancing volume in this area as well.
So in general, we take market share as a platform in the overall market. We profit from the constant gain in market share by the mortgage brokers which we heavily support, and roughly 60% of all mortgage brokers in Germany, let's say 6% of all transactional German mortgage brokers, goes through Europace. And our own franchise network is profiting there as well. The cooperative banks and savings banks, I would say, are challenged by the mortgage brokers, lose market share, but with the help of Europace, let's say, keep competitive and let's say we deliver them the solution for this fast changing environment and digitalize their sales force so that they are able to handle the pressure from the mortgage brokers. The weak especially the last two years are the private banks. One large partner of us decided to underwrite much less mortgages than in earlier years, and with this the market share of private banks declined and as well our market share within the private banks because this one big one was a major factor for us. So overall, the change in the market, the change in the structure of the market, the wins for the mortgage brokers and the regional banks and the digitalization of the digital banks is something where we profited last year and will profit the next years as well. Total results for the segment data digital growth on the gross profit and then significant outperformance of this on the EBIT level because business model scaling. We are doing this business more or less with the same headcount, just a certain level of inflation on the salary level increases our cost base. And even here we still invest heavily along the value chain in additional services and additional digital products, and with these investments ramping up the future as well and make certain that we keep growing in this value chain. So a long perspective on Hypoport in total now again, I would say second best year now, so gross profit number one, EBIT fourth and hitting new highs. How this is going to happen? First of all, we expect the mortgage market here in Germany to grow because of the shift from renters to home ownership. We expect midterm and quarterly volume 75 to 100 billion, means 300 to 400 billion in the mortgage market. And I explained this already, and for more details you find more information here on this channel as well. We keep outperforming the market. You see this on the structural level for the last six years how Hypoport, how Europace has a different dynamic than the overall market. So this comes on top of the general market environment.
Artificial intelligence, a threat for us? Not really. We work with it for 10 years now. Since 8 years we have product life based on this. And just as an example, what we do with Europace, you find here multiple ways how we use algorithm already right now to make the life for consumers easier and power the advisers and the credit decision makers on the platform for smoother, faster, more reliable interactions. In the future, we expect and we will do everything for this to make it happen that Europace is the single point of information for every model out there, consumer-facing one or specialized model, to get the whole information necessary for the 800 product suppliers here in the market and to find the best mortgage for every solution. We are the only digital source for mortgage product in Germany for now, and banks failed to digitalize their own products. We are the implementation of them. They are using us in their branches already. So if any model out there, if any algorithm needs the information, we are right now already able to provide this via API to everyone in the market. If you want, we can do this as well via MCP service. It fits to our platform, fits to our concept, and every model out there who needs the information how mortgage transactions work and what price it has and what's possible, it's already available via us. And we see this strong opportunity at the great technology to further enable consumer-driven decisions, to make life for everyone easier, more reliable and in the end cheaper transactions possible just by using the enormous amount of data set we have and train them in the purpose of consumer-centric and user-centric development. From last year to this year we expect to reduce losses 4 to 6 million. We expect that our profitable business without any impact of the market will grow by roughly five to six million net profit contribution thanks to the macroeconomic stress which we see right now. We have a high level of uncertainty of the upcoming market this year. And so we see a range of minus 2 to plus 10, and that is realistic for our EBIT impact depending on the market environment and what is happening on energy cost, inflation and interest rate in the end. So leading us to a 40 to 55 million guidance for EBIT this year. 48 would be a new record year. So we are aiming for this. We try to reach this; it would be helpful if the Iran conflict would not take too long from here. Okay. This said, after a further positive year 2026, we expect to keep going forward until the end of this century or market growth incremental market share gain with new products that we are in process of developing, rolling out, monetizing them, and with this increasing our profitability from here. And we are in most of our products and platforms still early stage in the monetization. We see an uplift of our EBIT margin to the end of the century by another 100%, so from the current 12 to something 24, 25% in the next coming years. So if you need any more details, contact our ER or use CT1A here for information.
