Eurobank Ergasias Services and Holdings (EUROB) Q4 2024 earnings summary

Executive summary

• Achieved exceptional organic growth and transformational M&A in 2024, with adjusted net profit of €1,484m (up 18.2% y-o-y), EPS at €0.39, and ROTBV at 18.5%.

• Record net profit close to €1.5bn, with nearly half generated outside Greece and SEE operations contributing up to 48%.

• Completed full control of Hellenic Bank and acquisition of CNP Insurance, creating the largest bank and insurance provider in Cyprus.

• Shareholder payout reached 50% of 2024 profits, totaling €674m via €0.105/share dividend and €288m buyback.

• Advanced sustainability initiatives, joining NZBA, issuing €850m in green bonds, and achieving top ESG ratings.

Financial highlights

• Loans expanded by €3.9bn (+10.6% y-o-y) and deposits by €6.2bn (+10.8% y-o-y) in 2024.

• Net interest income grew 15.3% to €2,507m; commission income up 22.4% to €666m.

• NPE ratio declined to 2.9%, with coverage above 88%.

• Cost-to-income ratio at 33.0%; tangible book value per share reached €2.31, up 15.9% y-o-y.

• Managed funds and private banking grew 38% and 18% respectively.

Outlook and guidance

• Business plan targets sustainable ROTBV of ~15% per annum for 2025-2027.

• Loans expected to grow 7.5% annually; wealth management and insurance fees projected to grow 30% per annum.

• Cumulative payouts for 2025-2027 to exceed €2bn, with payout ratio ≥50% annually.

• CET1 ratio expected around 16% through 2027, with a buffer of 330bps over OCR.

• Growth to be driven by Hellenic Bank and ERB Cyprus merger, CNP Insurance acquisition, and organic expansion.