Eurobank Ergasias Services and Holdings (EUROB) Q2 2024 earnings summary

Executive summary

• Achieved investment-grade status from Moody's and DBRS for the first time since 2011, reflecting improved fundamentals and fulfillment of key commitments.

• Adjusted net profit rose 22.2% year-over-year to €732m in 1H2024; reported net profit at €721m, including €99m negative goodwill from Hellenic Bank stake increase.

• Became majority shareholder in Hellenic Bank (55.9%/56% stake), enabling full consolidation and a €100bn balance sheet.

• Distributed €342m dividend and cancelled treasury shares equal to 1.4% of share capital, resuming dividends for the first time since 2007.

• Strong economic momentum in Greece, Bulgaria, and Cyprus, with upgrades in sovereign ratings and robust real estate and labor markets.

Financial highlights

• Earnings per share reached €0.20 for H1 2024; tangible book value per share up 18.4% year-over-year to €2.25.

• Net interest income up 8.6% year-over-year to €1,132m; net interest margin at 2.83%.

• Net fee and commission income grew 4.7% to €283m; total operating income up 9.7% to €1,460m.

• Core pre-provision income up 10.2% year-over-year to €958m; core operating profit up 16% to €814m.

• Net profits reached €732m in H1 2024; regional operations contributed €277m (38% of total).

Outlook and guidance

• Upgraded full-year 2024 return on tangible book value guidance to ~16.5% from 15%.

• Core profit expected to exceed €1.6bn for 2024.

• NPE ratio anticipated to remain near 3%, lower than initial guidance.

• Cost of risk forecasted at ~70 basis points for the year.

• Loan growth on track to meet €2.3bn full-year target, with strong corporate and international performance.