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Eurobank has announced plans to increase its dividend payout by more than 50% next year, alongside a juicy interim dividend of €170 million, equivalent to 4.7 cents per share. The news comes despite a small dip in profits, showing the bank’s confidence in its growth path and expanding footprint.
Adjusted net profits for the first half of 2024 stood at €711 million, down slightly (2.9%) from last year. Total net profits dropped by 4.3% to €691 million, mostly due to costs tied to the voluntary exit scheme at Hellenic Bank and the accounting impact of its recent acquisition of CNP Cyprus Insurance.
Still, Eurobank CEO Fokion Karavias says the group is on track. “Profitability is moving in line with expectations,” he told analysts this week, noting that roughly half of the bank’s profits now come from outside Greece. Cyprus, in particular, is proving to be a rising star in the group’s strategy.
“With the merger of Hellenic Bank and Eurobank Cyprus, and the acquisition of CNP Insurance, we’re building the country’s leading bancassurance group,” Karavias said, referring to the model that combines banking and insurance services under one roof.
Eyes on Bulgaria
Next up on Eurobank’s radar: Bulgaria. The group is exploring new acquisitions there, not just in banking, but in insurance and wealth management, too.
“Bulgaria’s move toward adopting the euro will only strengthen its economy,” Karavias said. “And while the top four banks already dominate 75% of the market, there’s still room for consolidation. Eurobank is watching closely.”
Lending and income on the rise
In terms of lending, Eurobank disbursed €2.2 billion in new loans in the first half of 2025, €1.4 billion in Greece and €800 million in other countries. Its total loan portfolio (before risk provisions) now stands at €53.6 billion, with €8.8 billion of that in Cyprus and €8.4 billion in Bulgaria.
The bank has raised its credit expansion target for 2025 to €4 billion, up from €3.5 billion. At the same time, provisions for bad loans increased by 8.1% to €155 million, still manageable, according to the bank, and not expected to dent its risk profile.
On the income side, Eurobank saw strong gains. Net interest income rose 12.2% year-on-year to €1.3 billion, while fees and commissions soared nearly 29% to €364 million, fueled by insurance revenues and its asset management business. The bank expects to hit €740 million in commission income and €2.5 billion in interest income for the full year.
Solid capital, ready to expand
Eurobank’s capital position remains strong. Its capital adequacy ratio is at 19.8%, and its core capital (CET1) stands at 15.5%, leaving the bank well-prepared to finance future acquisitions.
Bottom line? While profits dipped slightly, Eurobank is thinking long-term, ramping up payouts to shareholders, betting big on Cyprus, and setting its sights on Bulgaria for its next move.
