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21 June, 2024
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Eurobank's Q1 profit boosted by €41M from Hellenic Bank investment

Eurobank to acquire 55.3% stake in Hellenic Bank, awaiting regulatory approval

Panayiotis Rougalas

Panayiotis Rougalas

Eurobank reported an adjusted net profit of €383 million for the first quarter of 2024, with €92 million originating from Cyprus. The group’s investment in Hellenic Bank contributed €41 million to the adjusted net profit, while Eurobank Cyprus accounted for the remaining €52 million.

During an investor conference call on Thursday, 16 May, CEO Mr Fokion Karavias discussed the financial results. He mentioned that approvals from supervisors to acquire 55.3% of Hellenic Bank are expected in the coming weeks, after which they will proceed with the public proposal to all shareholders as required by law. In response to a question, Mr Karavias stated that Eurobank cannot currently predict the level of participation from other Hellenic Bank shareholders in the public offer.

Addressing another query about Eurobank's stance on the transaction between Hellenic Bank and CNP Cyprus, Mr Karavias acknowledged the achievement of Hellenic Bank’s current management. He stressed that this move strengthens the bank and its insurance operations, aligning with Eurobank's strategic objectives.

Eurobank’s first-quarter 2024 financial results highlighted profitable international operations, with adjusted net profit rising to €145 million from €79 million in the same period of 2023, contributing 37.7% to the group’s overall profitability. Organic pre-provision profit increased by 34.4% year-on-year to €143 million, while organic operating profit before tax grew by 34.2% to €128 million. Notably, adjusted net profit in Cyprus and Bulgaria reached €92 million and €48 million respectively.

The total net profit for Eurobank stood at €287 million, factoring in the cost of the voluntary retirement scheme for employees in Greece, completed in February. Earnings per share and return on tangible equity were €0.08 and 19.9%, respectively.

In his written statement, Mr Karavias remarked, "In addition to our strong operating performance, all our strategic initiatives, including Hellenic Bank in Cyprus, are progressing as planned."

[This article was translated from its Greek original]

Cyprus  |  Eurobank  |  economy

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