Eurobank has announced a cash dividend of 10.5 cents per share and a €288 million share buyback programme as part of its financial results for 2024.
The bank’s three-year plan aims for a 15 per cent return on tangible equity and a cumulative profit distribution twice that of the 2022-2024 period.
According to preliminary results, 2024 was a year of strong performance for Eurobank, exceeding expectations.
Net interest income increased by 15.3 per cent year-on-year (or 1.8 per cent excluding Hellenic Bank), reaching €2.50 billion.
This growth was primarily driven by lending, bond investments, and international activities. The net interest margin remained stable at 2.73 per cent compared to 2023.
Fee and commission income rose by 22.4 per cent year-on-year (or 13.5 per cent excluding Hellenic Bank) to €666 million, largely due to network operations, lending activities, and wealth management.
Organic revenues grew by 16.8 per cent (or 4.1 per cent excluding Hellenic Bank) to €3.17 billion, while total revenues increased by 15.6 per cent (or 2.0 per cent excluding Hellenic Bank) to €3.24 billion.
Operating expenses rose by 2.9 per cent in Greece and 18.8 per cent across the group (or 4.8 per cent excluding Hellenic Bank), reaching €1.07 billion.
On a comparable basis, excluding BNP Bulgaria, group expenses grew by 3.4 per cent.
The cost-to-income ratio remained below 35 per cent, standing at 33.8 per cent for organic revenue and 33.0 per cent for total revenue.
Pre-provision organic profits increased by 15.7 per cent year-on-year (or 3.8 per cent excluding Hellenic Bank) to €2.10 billion, while total pre-provision profits rose by 14.1 per cent (or 0.7 per cent excluding Hellenic Bank) to €2.171 billion.
Loan loss provisions decreased by 7.3 per cent year-on-year (or 10.0 per cent excluding Hellenic Bank) to €319 million.
As a result, organic operating pre-tax profits rose by 21.1 per cent year-on-year (or 7.0 per cent excluding Hellenic Bank) to €1.78billion.
Adjusted net profits grew by 18.2 per cent (or 0.9 per cent excluding Hellenic Bank) to €1.48 billion.
Total net profits stood at €1.44 billion, including €99 million gained from the additional stake in Hellenic Bank during Q2 2024.
International operations contributed significantly, with adjusted net profits rising by 51.4 per cent year-on-year (or 5.8 per cent excluding Hellenic Bank) to €709 million, representing 47.8 per cent of the group’s total profitability.
Adjusted net profits in Bulgaria grew by 9.6 per cent to €208 million, while Eurobank Cyprus saw a 5.1 per cent increase to €210 million.
Hellenic Bank contributed €275 million to Eurobank’s adjusted net profits in 2024.
The bank’s non-performing exposure (NPE) ratio dropped to 2.9 per cent, with NPE coverage from provisions reaching 88.4 per cent.
Capital adequacy remained strong, with a total capital ratio of 18.5 per cent and a common equity tier 1 (CET1) ratio of 15.7 per cent. Tangible book value per share increased by 11.6 per cent to €2.31.
Eurobank’s strategic plan for 2025-2027 targets sustainable annual returns on tangible equity of around 15 per cent, which is expected to drive a 40 per cent increase in tangible book value per share over three years.
The bank aims to double cumulative profit distribution compared to the 2022-2024 period.
Future growth will be driven by the merger of Hellenic Bank with Eurobank Cyprus, the acquisition of CNP Insurance, organic loan expansion at an annual rate of approximately 7.5 per cent, and further expansion in wealth management.
Assets under management and private banking portfolios are projected to grow by around 15 per cent annually.
CEO Fokion Karavias described 2024 as a milestone year for Eurobank, with record-breaking financial performance.
“Our achievements exceeded all targets,” stated. “We increased deposits by over €6 billion and extended €4 billion in new loans, contributing to economic growth”.
“Overall, we expanded our loan portfolio by more than 10 per cent,” he added.
Looking ahead, Karavias emphasised the bank’s commitment to maintaining a 15 per cent return on equity.
“Our growth strategy is based on three pillars: expanding credit by approximately 8 per cent annually, prioritising wealth management and private banking, and leveraging synergies from our leadership position in Cyprus,” he explained.
He also noted that Eurobank’s long-term vision includes continuous value creation through internal capital growth and profit distribution, maintaining at least a 50 per cent payout ratio.
