Upward revision for Eurobank
Eurobank has revised upward its objectives for 2024, raising the estimate for organic operating profits to over 1.6 billion euros against €1.5 billion in its previous estimate, a return on equity close to 16.5% vs 15%, NPL ratio of 3% vs 3.5% previously estimated and a capital ratio of 17%.
“We are on track to achieve or exceed the goals we have set for the year,” underlined the group’s managing director, Fokion Karavias, briefing analysts on the results of the second quarter, emphasizing the synergies created after the acquisition of 55.886% of Hellenic Bank. The group’s assets now reach €100 billion and, as Karavias clarified, the two banks, Hellenic Bank and Eurobank Cyprus, will operate as “separate entities” as they have distinct activities with a “completely complementary nature.”
“Their merger is our ultimate goal and I am optimistic that this will happen at the right time, but the timing also depends on the minority shareholders,” he added. The synergies are found in the improvement of net interest income, which will come from the strengthening of deposits and the improvement of the mix of Hellenic’s deposits, in combination with the expansion of its loan portfolio.
