Eurobank Ergasias Services and Holdings (EUROB) Q1 2025 earnings summary

Executive summary

• Adjusted net profit reached €348 million in Q1 2025, with reported net profit at €314 million, up 9.4% year-over-year; return on tangible book value was 16.2%.

• International and regional operations contributed 53% of total profits, with strong performance in Cyprus and Bulgaria.

• Robust loan growth of 10% year-over-year and assets under management up 29% year-over-year.

• Confident in achieving 2025 business plan targets despite global volatility and market uncertainties.

• Completion of CNP Insurance acquisition in April 2025.

Financial highlights

• Net interest income rose 11.7% year-over-year to €638 million, aided by Hellenic Bank consolidation; net interest margin at 2.53%.

• Fees and commissions up 24.8% year-over-year to €169 million; operating expenses in Greece increased by 6%, group cost/income ratio at 36.8%.

• Core operating profit reached €426 million, up 4.8% year-over-year; pre-provision income up 5%.

• Loan-loss provisions at €76.3 million (59 bps), down 10 bps year-over-year.

• Deposits decreased by €1.5 billion in Q1, mainly due to seasonal effects; total deposits at €77.1 billion.

Outlook and guidance

• ROTBV target for 2025 reiterated at around 15%; full-year NII guidance of €2.5 billion reaffirmed.

• Loan growth expected to meet or exceed targets despite lower average interest rates.

• NII sensitivity: every 25 bps rate change impacts NII by €35 million.

• No further negative one-offs expected from Hellenic Bank in 2025; positive impact from CNP Cyprus acquisition.

• Greek GDP growth expected at 2.3% in 2025, with Cyprus and Bulgaria at 2.5%.