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%.

• Tangible book value per share reached €2.39; strong loan growth of 10% year-over-year and assets under management up 29% year-over-year.

• International operations contributed 53% of earnings, with SEE operations' adjusted net profit up 27.2% year-over-year to €184 million.

• Group remains confident in achieving its 2025 plan despite global volatility and lower interest rate expectations.

• 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 declined by 34 bps to 2.53%.

• Fees and commissions up 25% year-over-year to €169 million; core income increased 14.2% year-over-year to €807 million.

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

• Loan-loss provisions for Q1 were €76 million (59 bps), down 10 bps year-over-year.

• Operating expenses increased 6% year-over-year in Greece; group cost/income ratio at 36.8%.

Outlook and guidance

• Full-year NII guidance reaffirmed at €2.5 billion, even with lower ECB rates; ROTBV target for 2025 reiterated at around 15%.

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

• Synergies from Hellenic Bank and CNP Cyprus acquisitions expected to support results.

• Greek GDP growth expected at 2.3% in 2025, outperforming the Euro Area; Cyprus and Bulgaria forecasted at 2.5%.

• General government primary surplus projected at 3.2% for 2025 and 2026; public debt to decline to 145.7% of GDP.