Eurobank CEO hails Hellenic Bank consolidation as milestone moment

Eurobank’s third-quarter results mark a significant milestone as the bank fully integrates Cyprus’ Hellenic Bank for the first time since acquiring a majority stake, said Eurobank CEO Fokion Karavias.

“The third-quarter results are a milestone for Eurobank,” he stated.

“For the first time, we are fully consolidating Hellenic Bank Cyprus, following our majority acquisition,” he added.

As a result, Eurobank’s balance sheet now approaches €100 billion, with €50 billion in loans and €75 billion in deposits.

The bank’s assets are strategically balanced across three primary markets. These include Greece, with 60 per cent of the assets; Cyprus, with 27 per cent; and Bulgaria, with 11 per cent.

Furthermore, Karavias expressed confidence in the leadership of Hellenic Bank, now led by Michalis Louis, former CEO of Eurobank Cyprus, who he believes will leverage synergies and capitalise on Cyprus’ economic growth opportunities.

He also pointed out that the macroeconomic environment in Greece remains favourable, with GDP growth expected to remain strong at around 2.4 per cent for both 2024 and 2025.

“Eurobank has aligned its strategy with supporting growth through investments, becoming the first bank to apply for the seventh tranche of Recovery and Resilience Facility loans,” he said.

Regarding loan portfolios, Karavias mentioned a healthy organic growth of over €2 billion and expects a further increase in demand for business loans.

Eurobank’s third-quarter results exceeded expectations, with the return on equity anticipated to reach about 17.5 per cent for the full year.

“Eurobank pursues sustainable growth, reaping the benefits of recent strategic decisions, delivering strong financial results, rewarding shareholders, and simultaneously contributing to the economy and broader society,” Karavias said.

According to the results, adjusted net profit reached €1.14 billion, including €498 million from international operations.

Moreover, the bank’s total net profit reached €1.13 billion, with earnings per share standing at 31 cents.

Tangible equity return stood at 19.2 per cent, and tangible book value per share was €2.27.

In addition, organic growth in performing loans reached €2.1 billion, while deposits grew by €2.3 billion for the first nine months of 2024.

Eurobank also reported a 34.7 per cent annual increase in managed client funds in Greece.

Its capital adequacy ratio (CAD) stands at 20.9 per cent, while the CET1 ratio was reported at 17.8 per cent.

The NPE ratio stood at 2.9 per cent, and the provision coverage ratio for NPEs came in at 89.9 per cent.

Meanwhile, Hellenic Bank earlier this week reported a net profit of €284 million for the first nine months of 2024, marking a 28 per cent increase from the same period last year.

“During the first nine months of 2024, Hellenic Bank’s performance was strong, despite global challenges,” said CEO Michalis Louis.

“By maintaining a strong capital base and surplus liquidity, we are in a position to support the growth of the economy, supporting customer needs, both individual and business customers,” he added.

Reflecting on the bank’s integration into the Eurobank Group, Louis said that “belonging to a larger regional financial group will give us access to technical know-how and best practices and will significantly help the customer service quality we offer to our clients, while creating value for our people and our shareholders”.