In the first half of 2024, the total net profits of Eurobank amounted to 721 million euros and include 99 million euros profit from the acquisition additional participation in Hellenic Bank of Cyprus, as well as 101 million euros in costs from the voluntary departure of employees in Greece. Earnings per share and return on tangible equity stood at 0.20 euros and 18.5% respectively.

In a statement on the occasion of the announcement of the financial results, the managing director of Eurobank Fokion of Karavia states: “Eurobank presented the following achievements: for the first time since 2007, the bank distributed a dividend to its shareholders. After more than ten years, Eurobank regained investment grade from two rating agencies, Moody’s and DBRS. In Cyprus, we became the majority shareholder of Hellenic Bank with a percentage of 55.9%, paving the way for its full accounting consolidation, which will create a Banking Group with 100 billion euros in assets. We have a systemic presence and a leading role in all three of our main markets, Greece, Cyprus and Bulgaria.

The macroeconomic environment remains positive in all the countries where we operate. Greece continues to perform well above the eurozone average in terms of GDP growth. The labor market is strong and investment is accelerating, supported by the Recovery and Reconstruction Fund, as well as other European resources. We are on track to meet or exceed the goals we have set for the year. Loan demand, deposits and funds under management are growing at a higher than expected rate.

Eurobank recorded a strong performance in the first half. Earnings per share stood at 20 cents, tangible book value per share increased to 2.25 euros, while return on equity reached 18.5%.

All indications are converging on the maintenance of the positive economic environment, leading us to revise upwards our target for return on equity to around 16.5% for 2024.”

Eurobank’s first half 2024 results in detail

  • The organic earnings before provisions increased by 10.2% year-on-year to 958 million euros, while total profits before provisions increased by 13% compared to the first half of 2023, to 1 billion euros.
  • The provisions for bad debts decreased by 12.6% compared to the first half of 2023, to 144 million euros and corresponded to 69 basis points on average loans.
  • As a result of the above, the organic operating profit before taxes increased by 15.5% year-on-year in the first half of 2024 to 814 million euros.
  • The adjusted net earnings increased by 22.2% year-on-year and reached 732 million euros in the first half of 2024. Total net profits amounted to 721 million euros and include a 99 million euro profit from the acquisition of an additional stake in Hellenic Bank of Cyprus (negative goodwill) as well as 101 million euros in costs from the voluntary departure of employees in Greece. Earnings per share and return on tangible equity stood at 0.20 euros and 18.5% respectively.
  • The overseas operations were profitable with adjusted net profits increasing by 35.5% year-on-year to €277 million and contributing 37.8% to the Group’s overall profitability.
  • The ratio of non-performing exposures (NPEs) decreased on an annual basis by 2.1 percentage points to 3.1%3. The formation of new NPEs was positive by 125 million euros in the first half of 2024. The coverage of NPEs by the cumulative provisions strengthened by 20 percentage points on an annual basis and reached 93.2%.
  • Capital adequacy remained at strong levels, with the total capital adequacy ratio (CAD) and common equity ratio CET1 standing pro-forma at 19.3%4 and 16.2%4 respectively, taking into account the impact of the consolidation of the Hellenic Bank and the distribution of a dividend of 342 million euros.
  • Total assets amounted to 81.3 billion euros.
  • Current loans increased organically by 1.2 billion euros in the first half of 2024. Total loan balances (before provisions) amounted to 43.4 billion euros, including high- and medium-rated bonds amounting to 4.3 billion euros. Business loans amounted to 25.8 billion euros, housing loans to 9.8 billion euros and consumer loans to 3.6 billion euros.
  • Customer deposits increased by €1.2 billion in H1 2024 to €58.6 billion. The loan-to-deposit ratio stood at 72% and the liquidity coverage ratio at 181.7% at the end of the first half of 2024. Funding from the Eurosystem decreased by 4.3 billion euros on an annual basis, to 3.1 billion. euros at the end of June 2024.
  • Client funds under management in Greece increased by 32.2% year-on-year and reached 6.4 billion euros at the end of the first half of 2024. In addition, the assets and liabilities of private banking clients at Group level increased by 15% on an annual basis in the same period and amounted to 12.2 billion euros.