Strong compensation for the increase in lending that is expected to reach or even exceed expectations for the year, its administration expects Eurobankagainst the lower interest rates of those with which it has structured its business plan.
In the first quarter there was a loan increase equal to 1/3 of this planning the plan (for 2025 the bank’s business plan provided for a 20%loan increase), according to the Eurobank CEO Fokion Karavia to analysts during the presentation of the first quarter results.
Mr Karavias noted that overall the performance of the Bank’s first trimester creates optimism that the plan for 2025 will be achieved. In this context, even the Eurobank administration is upgrading the target for its own funds this year to 16%.
Specifically, for interest rate revenue (which are hit by the ECB’s interest rates overall for banks from the ECB’s interest rates), the Eurobank CEO The strong increase in lending, the increase in deposits in combination with the reduction of their costs and the reduction of spreads in loans will work cumulatively so that the target of the Eurobank has to do so. Revenue of 2.5 billion euros this year.
The bank’s business plan envisioned ECB interest rates at 2% at the end of the year and an average rate of year at 2.53%.
However, duties appear to lead to faster interest rates, possibly 1.50% ECB interest rate at the end of 2025 and average of 2.25%. However, the target for interest rate revenue is not affected this year. As mentioned, in each of the ECB interest rates by 0.25 of the unit, Eurobank has an impact of € 35m.
Eurobank First Quarter results confirmed Eurobank’s proper strategy to expand its activities outside Greece, with abroad activities being profitable (customized net profits were reinforced on an annual basis by 27.2%, to EUR 184 million in the first quarter of 2025) A total of net profits increased by 9.4% compared to the first quarter of 2024 to EUR 314 million).
Specifically, customized net profits were reinforced in Cyprus (Eurobank Cyprus + Hellenic Bank) by 31.3% against the first quarter of 2024 to 121m euros and in Bulgaria by 14%, to € 55m (for Bulgaria market, Mr Karavia was increasing the increase in land rates in Greece. faith).
The Eurobank administration said that the cost of acquiring the Hellenic Bank written in the first quarter amounts to 26m euros, while revenue of 48m euros will be revenue this year from the synergies that will be deployed with the merger of Eurobank Cyprus – Greek (2025 – 2027. euro).
Referring to the Cyprus market, the Eurobank administration said that the acquisition of the insurance CNP was completed in April, which will pay € 20m in revenue in the next 9 months and savings from a voluntary exit of € 8m.
Finally, the administration said that if there is an opportunity in the markets to issue bonds (although it is essentially no need for further publications as it has met the MREL targets), Eurobank will proceed with a Senior Preferred or Tier II issuance of 1 billion euros to recall Tier II. (6.40%).