Eurobank Holdings this week launched its monetary outcomes for the primary quarter of 2024, showcasing important progress and sturdy efficiency throughout varied metrics, together with in its operations in Cyprus.
“Our efficiency within the first quarter is a good begin for the yr and makes us assured that our 2024 plan
we’ll be delivered, with a return on tangible e-book worth of 15 per cent,” CEO Fokion Karavias mentioned.
“Along with the sturdy working efficiency, you will need to spotlight that every one our strategic initiatives, together with Hellenic Financial institution in Cyprus, are on monitor,” he added.
The financial institution reported earnings per share (EPS) of €0.08 and a return on tangible e-book worth (ROTBV) of 19.9 per cent.
The tangible e-book worth (TBV) per share noticed a notable improve of 20.2 per cent year-on-year, reaching €2.14.
The adjusted internet revenue for the quarter was €383 million, whereas the reported internet revenue stood at €287 million.
The distinction is attributed to the price of the Voluntary Exit Scheme (VES) in Greece, concluded in February. Natural progress of performing loans amounted to €0.4 billion.
Eurobank’s capital adequacy remained sturdy, with the overall capital adequacy ratio (CAD) rising to twenty.2 per cent and the widespread fairness tier 1 (CET1) ratio growing to 17.2 per cent.
By way of dividend distribution, Karavias mentioned that “we have now submitted the official utility to the SSM”.
“The proposed payout ratio is 30 per cent, which corresponds to a dividend greater than 9 cents per share. The supervisory clearance is anticipated in June,” he defined.
“Dividend distribution ought to happen proper after the AGM approval in late July,” he added.
The non-performing exposures (NPE) ratio improved to three.0 per cent, down from 5.1 per cent in the identical interval final yr, with provisions over NPEs bettering considerably to 92.6 per cent.
Web curiosity earnings rose by 13.7 per cent in comparison with the primary quarter of 2023, totalling €571 million. This progress was pushed by efficiency in loans, bonds, and worldwide enterprise, leading to a internet curiosity margin improve of 34 foundation factors to 2.87 per cent.
Web charge and fee earnings additionally noticed an growth of 4.9 per cent year-on-year, reaching €136 million, primarily as a result of charges from community actions and asset administration.
“Eurobank’s quarterly efficiency remained strong. With a 20 per cent return, the tangible e-book worth elevated to 2.14 euros per share. Regional actions continued their important contribution, with a internet revenue of 145 million euros, a rise of greater than 80 per cent year-on-year,” the CEO said.
A very constructive sign got here from mortgage progress with performing loans displaying a rise of 0.4 billion euro. First-quarter efficiency confirms that credit score progress in 2024 will probably be stronger than final yr, particularly in Greece,” he added.
Core earnings grew by 11.9 per cent year-on-year to €707 million, whereas complete working earnings surged by 21.8 per cent to €755 million.
Working bills decreased by 2.1 per cent in Greece however elevated by 3.3 per cent on the group stage to €229 million, as a result of operations in Southeastern Europe (SEE).
Excluding the affect of BNP Bulgaria, working bills remained steady. The fee-to-core earnings ratio and the cost-to-total earnings ratio improved to 32.4 per cent and 30.3 per cent, respectively.
Core pre-provision earnings rose by 16.5 per cent year-on-year to €478 million, and pre-provision earnings elevated by 32.0 per cent to €526 million.
Mortgage loss provisions decreased by 5.5 per cent year-on-year to €71 million, similar to 68 foundation factors of common internet loans.
Consequently, core working revenue earlier than tax rose by 21.4 per cent year-on-year to €407 million.
SEE operations considerably contributed to the group’s profitability, with adjusted internet revenue from these operations growing to €145 million, up from €79 million within the first quarter of 2023. This represented 37.7 per cent of the group’s complete profitability.
Core pre-provision earnings in SEE grew by 34.4 per cent to €143 million, with core working revenue earlier than tax rising by 34.2 per cent to €128 million.
Monetary efficiency in Cyprus and Bulgaria improved considerably, with adjusted internet earnings reaching €92 million and €48 million, respectively.
Performing loans grew organically by €0.4 billion within the first quarter, with complete gross loans amounting to €42.7 billion, together with senior and mezzanine notes of €4.3 billion.
Company loans stood at €25.1 billion, mortgages at €9.7 billion, and shopper loans at €3.5 billion.
Buyer deposits declined by €0.1 billion to €57.3 billion. Financial savings and sight deposits accounted for 64 per cent of the overall, whereas time deposits made up 36 per cent.
The loans-to-deposits ratio was 72.5 per cent, and the liquidity protection ratio was 179.0 per cent. Eurosystem funding was diminished by €5.3 billion year-on-year to €3.0 billion on the finish of March 2024.
“The macroeconomic backdrop stays constructive in our three core markets and particularly in Greece, which had its sovereign outlook upgraded by S&P and continues to be a prime progress performer within the eurozone,” Karavias mentioned.
“On this financial atmosphere, Eurobank is finest positioned to continue to grow, changing enterprise progress to sturdy monetary outcomes, rewarding shareholders and contributing to the economic system and society,” he concluded.
