Eurobank Ergasias Services and Holdings (EUROB) Q3 2024 earnings summary

Executive summary

• Adjusted net profit reached €1,145m in 9M24, up 24.9% year-over-year, with reported net profit at €1,135m and tangible book value per share up 5% quarter-on-quarter to €2.27.

• Hellenic Bank was consolidated for the first time in 3Q24, expanding total assets to €100bn and loans to €50.4bn, and contributing to group profitability.

• Regional/SEE operations delivered €498m net profit in 9M24, highlighting international diversification.

• EPS reached €0.31; ROTBV at 19.2%.

• Geographic diversification: Greece 60% of assets, Cyprus 27%, Bulgaria 11%.

Financial highlights

• Net interest income rose 14.3% year-over-year to €1,830m; fee and commission income up 12% to €451m.

• Core pre-provision income increased 14.6% year-over-year to €1,526m; core operating profit up 20.5% to €1,297m.

• Cost-to-income ratio remained low at 33%; cost to core income ratio at 33.1%.

• NPE ratio dropped to 2.9% with 89.9% coverage; cost-of-risk at 68bps.

• CET1 ratio at 17.8%; total capital adequacy at 20.9%.

Outlook and guidance

• Upgraded full-year 2024 return on tangible equity guidance to 17.5%, targeting 15% sustainable through the cycle.

• Organic loan growth for 2024 expected at €3.5bn, with 2025 growth projected at around 7%.

• Payout ratio may increase to 50% for 2025, including both cash dividends and share buybacks.

• DTC amortization to be accelerated, aiming for full elimination by 2033.

• Management expects continued solid growth, supported by robust macroeconomic conditions in Greece and SEE.