Eurobank S.a. · ATHEX:EUROB
Eurobank — Eurobank Ergasias Services and Holdings — FY2022 Earnings Presentation
88 slides from Eurobank's earnings presentation, Mar 9, 2023
Slide 1: FY2022 results
4 EUROBANK Holdings FY2022 results 9 March 2023
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This presentation has been prepared by Eurobank Ergasias Services and Holdings S.A. (“Eurobank Holdings”) and its 100% subsidiary Eurobank S
Slide 3: Table of contents
Table of contents FY22 operating performance above targets 4 2023 -2025 Business plan update 10 FY22 results highlights 26 Diversified business model 33 Balance sheet 38 Profitability 44 Asset Quality 51 Capital 56 ESG commitments and performance 59 Macroeconomic update 67 Appendix I – Supplementary
Slide 4: FY22 Operating performance above targets
FY 2022 Results FY22 Operating performance above targets
Slide 5: FY22: Operating performance & strategic initiatives
FY22: Operating performance & strategic initiatives Operating ▪ Core Operating profit1 at €885m, up by 83.5% y-o-y ▪ Adjusted Net Profit at €1,174m; Reported Net Profit €1,330m Performance ▪ EPS3 at €0.18, up 64% y-o-y ▪ RoTBV3 at 11.4%; TBV per share up 20% at €1.70 Volumes ▪ Group Performing loans
Slide 6: FY22: Outperforming key targets
FY22: Outperforming key targets Core Operating profit RoTBV3 0.11 0.181 EPS3 (€) 11%1 885 10% 8% +83.5% 2 FY21 FY22E FY22 610 TBV per share €m 482 1.70 +20% 1.42 2 FY21 FY22E FY22 FY21 FY22 1. Adjusting net profit for the year, by normalizing Other Income (after deducting significant trading income
Slide 7: FY22: Outperforming key targets
FY22: Outperforming key targets Asset quality metrics Capital position FLB3 CET12 Provisions / 15.2% 69.2% 74.6% NPEs 13.6% NPE ratio 6.8% 12.7% 5.8% 1 FY22E FY21 FY22 5.2% CAD2 19.0%3 16.4% 16.1% 1 FY21 FY22E FY22 1 FY21 FY22E FY22 1. As presented in FY21 results (March 2022). 2. Including period p
Slide 8: FY22 Loan growth includes sustainable finance initiatives
FY22 Loan growth includes sustainable finance initiatives Performing loans (€ bn) Supporting our customers in the transition to Net Zero2 Organic1 growth +€3.3bn 41.4 40.5 Target achieved 38.2 10.3 >20% of the annual gross new corporate disbursements to be classified as Green/ Environmentally sustai
Slide 9: Outperforming 2022 targets
Outperforming 2022 targets FY21 FY22E1 FY22 Δ performing loans €1.5bn c.€2.3bn €3.3bn Core PPI €900m c.€865m €1.2bn Core Operating Profit2 €482m c.€610m €885m RoTBV3 8.2% 10.0% 11.4%4 EPS3 €0.11 €0.14 €0.184 CoR5 111bps 65bps 72bps NPE ratio 6.8% 5.8% 5.2% NPE coverage 69.2% 64.0% 74.6% FLB3 CET16 1
Slide 10: 2023-2025 Business plan update
FY 2022 Results 2023-2025 Business plan update
Slide 11: Eurobank business model and strategic priorities
Eurobank business model and strategic priorities Unique business model among Greek banks: Our Purpose Our Vision ▪ Diversified earnings stream1: Be the leading bank in PROSPERITY creating prosperity for Greece NEEDS PIONEERS our customers, 61% employees, shareholders SEE & society by offering 33% pi
Slide 12: Business plan macroeconomic assumptions
Business plan macroeconomic assumptions GDP growth (%, 2023-2025) Real estate market growth (Greece) Greece Bulgaria Cyprus Residential 3.0 3.5 4.1% 2.3 3.2 3.2 2.8 3.1% 2.1 2.3 2.1% 1.7 FY23 FY24 FY25 FY23 FY24 FY25 FY23 FY24 FY25 FY23 FY24 FY25 Other macro assumptions Commercial Greece 2023 2024 2
Slide 13: 2023 - 2025 key goals
2023 - 2025 key goals 5. Shareholders’ Reward Buy back 1.4% HFSF stake in 4. Business Growth 20232 >25% payout ratio Lending growth 7% CAGR (dividends & share 3. Capital buyback)3 from FY2023 Explore M&A opportunities earnings onwards Capital generated 2. RoTBV1 by profitability >200bps p.a. 12 -13%
Slide 14: 2023 – 2025 financial goals
2023 – 2025 financial goals FY22 FY23E FY25E Δ performing loans €3.3bn c.€2.8bn c.€3.0bn Core PPI €1.2bn c.€1.4bn c.€1.5bn Core Operating Profit1 €885m c.€1.1bn c.€1.2bn RoTBV c.11.4%2 c.13.0%3 c.12.0%3 EPS €0.182 c.€0.223 c.€0.253 CoR4 72bps c.85bps c.60bps NPE ratio 5.2% c.5.2% c.4.5% NPE coverage
Slide 15: Net Interest Income: Balance sheet drivers
Net Interest Income: Balance sheet drivers Organic performing loans1 Deposits Δ (€ bn) 2022 2023E 2023-2025E Δ (€ bn) 2022 2023E 2023-2025E Household (0.2) c.0.1 c.0.9 Greece 2.6 c.1.1 c.2.9 Business 2.4 c.1.8 c.4.9 SEE 1.5 c.1.1 c.3.1 Greece 2.2 c.1.9 c.5.8 Group 4.1 c.2.2 c.6.0 SEE 1.1 c.0.9 c.3.1
Slide 16: Net Interest Income: Spreads drivers
Net Interest Income: Spreads drivers Performing loan spreads Deposit spreads (Greece, bps) (Greece, bps) c.155 322 295 Total c.110 290 Time 12 c.60 c.90 -9 FY22 FY23E FY25E FY22 FY23E FY25E NIM (bps) Deposits mix (Greece) FY22 FY23E FY25E c.235 Time / Total 22% c.40% c.60% c.220 Group 194 c.225 Avg
Slide 17: Net Interest Income evolution
Net Interest Income evolution NII evolution (2022 -2023, € m)1 NII evolution (2022 -2025, € m)1 FY22 1,550 FY22 1,550 Δ Loans Gr c.460 Δ Loans Gr c.620 Δ Deposits Gr c.(280) Δ Deposits Gr c.(450) Δ other Gr 2 c.40 Δ other Gr 2 c.(110) Δ SEE c.100 Δ SEE c.230 FY23E c.1,870 FY25E c.1,840 1. Income bas
Slide 18: Fee and commission income
Fee and commission income ❑ Focus on wealth management, private banking and bancassurance: 68 64 70 Fees / Assets (bps) • Asset Management: >€4.0bn AuM net flows; c.+25% CAGR • Private Banking: CAL2 to increase >10% p.a.; >+60% increase in c.600 Fees (€m) profitability until end 2025 • Bancassurance
Slide 19: Transformation already delivering tangible results
Transformation already delivering tangible results Expanding business activity in retail banking with less resources (staff and branches) 2022 Achievements Phygital • Redesigned customer onboarding (branch & digital) Model • Rolled out Future branch concept project across 7 locations Simplification
Slide 20: Transformation: 2022 business impact
Transformation: 2022 business impact 2022 Business Impact Share of Phygital Phygital 28% Sales (like for 72.5m Digital Banking Model (+20% YoY) Transactions like)1,5 Simplification & Streamlining ~80% Automation in consumer loans -40% Reduced effort to open account at branch2 Conversion rate of Data
Slide 21: Transformation continues to be the focus for 2023
Transformation continues to be the focus for 2023 Phygital Simplification and Data Analytics & Fee Business Targeted Lending Distribution Model Streamlining Cloud Acceleration Growth Advance digital offering to Revamp the operating model, Leverage technology to Enlarging our client base, Drive marke
Slide 22: Operating Expenses
Operating Expenses Operating efficiency improvement: Cost–to-core Income at 40% or below from 2023, onwards; 4ppts improvement versus 2022 Greece (€ m) ❑ 2023 operating expenses up c.2.0% in Greece; Group up c.5.5% (<4% 95 l-f-l3) (54) 645 (42) 644 ❑ Greece cost base in 2025 at 2022 level • HR costs
Slide 23: SEE Operations
SEE Operations ❑ Diversify income stream: Core PPI (€ m) Net Profit (€ m)2 ▪ SEE operations accounted for 33% of Group core operating profit in 2022 c.510 ▪ Core operating profit CAGR >+16% until 2025 to reach c.40% of Group c.360 ❑ Strong presence in SEE region: Ranks 4th in Bulgaria, c.57% 3rd in
Slide 24: FLB3 CET1 evolution
FLB3 CET1 Organic c.460bps c.240bps M&A c.17.4% c.(90bps) c.50bps c.(90bps) c.16.0% c.(35bps) c.(25bps) c.(20bps) 15.2% c.(20bps) c.(15bps) c.(230bps) 4 5 3 3 3 1 2 DTC 2023 PBT FY23E Asset Growth Asset Growth FY22 Serbia Other FY25E Hellenic Bank HFSF buy back profitability Dividends / Buy BNP Bulg
Slide 25: Total Capital
Total Capital Total CAD ratio – phased in Additional Capital Options (not included in 2023-2025 BP) ❑ Tools to optimize use of Tier 1 capital / c.20.0% Enhance distribution capacity 19.0% c.19.0% 440bps buffer 14.6% Issuance capacity €bn bps 3.85% CBR2 AT1 1.0 c.200 2.75% P2R2 Tier II - - 8.00% MCR2
Slide 26: FY22 results highlights
FY 2022 Results FY22 results highlights
Slide 27: FY22 results highlights: Profitability
FY22 results highlights: Profitability P&L (€ m) 4Q22 3Q22 Δ(%) FY22 FY21 Δ(%) Net interest income 469.5 380.9 23.3 1,550.4 1,320.6 17.4 Adjusted Net Profit €1,174m in FY22; €242m in 4Q22 Commission income 148.2 139.0 6.7 542.9 455.8 19.1 Other Income 100.4 44.5 >100 717.2 127.8 >100 ▪ NII up 17.4%
Slide 28: FY22 results highlights: Balance sheet
FY22 results highlights: Balance sheet Capital Key Balance sheet ratios ▪ Total CAD at 19.0%1, up 290bps y-o-y ▪ CET1 at 16.0%1, up 230bps y-o-y Group (%) 4Q22 3Q22 2Q22 1Q22 4Q21 ▪ FBL3 at 15.2%1, up 250bps y-o-y Capital5 CAD 19.01 17.21 17.01 16.57 16.1 Volumes CET1 16.01 14.91 14.71 14.07 13.7 ▪
Slide 29: Core Income
Core Income Δ NII (y-o-y, € m)1 Δ Fees (y-o-y, € m) +17.4% +19.1% 45 2 543 82 1,550 89 6 46 (2) 83 (4) 1,321 (13) 456 (18) Greece 2 3 Δ Loans FY21 FY21 Δ Lending FY22 FY22 Δ SEE Δ Capital Markets Δ Deposits Δ TLTRO Δ Gapping & other Δ Bancassurance & Asset mng Δ Network & credit cards Δ Rental & oth
Slide 30: Profitability
Profitability Core PPI and Provisions (€ m) Core Operating Profit2 (€ m) 1,176 +83.5% 885 +30.6% Core PPI 900 482 FY21 FY22 (418) Loan Loss (30.5%) Profit before Tax3 (€ m) Provisions (291) >100% 1,513 FY21 FY22 585 CoR1 1.1% 0.7% FY21 FY22 1. On net loans. 2. Core Operating profit= Core PPI minus l
Slide 31: Asset quality
Asset quality NPEs ratio NPEs stock (€ bn) 6.8% 6.7% 22.9 5.9% 5.6% 5.2%1 (20.6) 4Q21 1Q22 2Q22 3Q22 4Q22 NPE coverage 74.6% 72.7% 2.3 71.5% 70.6% 0.6 69.2% FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY22 Net NPEs 4Q21 1Q22 2Q22 3Q22 4Q22 1. Pro forma for Solar senior note recognition. 31
Slide 32: Capital & TBV
Capital & TBV CET1 FLB3 TBV per share (€) 15.2%1 +250bps 12.7% 1.70 +19.7% 4Q21 4Q22 1.42 CAD 19.0%1 +290bps 4Q21 4Q22 16.1% 4Q21 4Q22 1. Pro forma for Solar securitization held for sale. 32
Slide 33: Diversified business model
FY 2022 Results Diversified business model
Slide 34: Segmental analysis: diversified earnings generation
Segmental analysis: diversified earnings generation Key Metrics (FY22) Net profit1 (€ m) Net 2021 Group (%) Assets RWAs TBV RoTBV2 RoTBV Profit1 382 € bn € bn €m €m 858 226 114 137 Greek Banking 56 213 Greek banking 58.4 31.4 4,016 858 23.4% 7.0% operations Operations 4Q21 34 1Q22 92 32 2Q22 3Q22 4Q
Slide 35: Eurobank Group Investment Real Estate Portfolio
Eurobank Group Investment Real Estate Portfolio Big boxes & FY22 Office Mixed use Retail Logistics Special use Total supermarkets No. of assets (#) 63 28 79 34 22 28 254 Book Value (€ m) 438 195 169 350 96 72 1,320 % of total BV 33% 15% 13% 26% 7% 5% 100% BV / GLA (€ /sqm) 1,542 2,362 1,966 1,275 62
Slide 36: Bulgaria key metrics
Bulgaria key metrics1 FY22 Highlights Core PPI and provisions (€ m) Net profit €96m in FY22, up 25.6% y-o-y ▪ FY22 Core PPI at €155, up 16.4% y-o-y Core 38 41 42 ▪ NII up 16.4% y-o-y at €215m 34 35 PPI ▪ Commission income up 14.7% y-o-y at €73m ▪ OpEx up 15.6% y-o-y (11) (9) (9) (8) (11) Provisions
Slide 37: Cyprus key metrics
Cyprus key metrics1 FY22 Highlights Core PPI (€ m) Net profit €105m in FY22; up 43.6% y-o-y ▪ FY22 Core PPI up 37.8% y-o-y at €128m 43 ▪ NII up 32.9% y-o-y at €136m 28 31 26 26 ▪ Commission income up 21.0% y-o-y at €40m ▪ OpEx up by 12.9% y-o-y 4Q21 1Q22 2Q22 3Q22 4Q22 ▪ FY22 CoR at 5bps ▪ Acquisiti
Slide 38: Balance sheet
FY 2022 Results Balance sheet
Slide 39: Balance sheet composition
Balance sheet composition Assets (€ bn) Liabilities and Equity (€bn) 81.5 81.5 60 Trading & other 50 4% Other issuers • Core 75% Net loans 30% 41.7 • Time 25% Deposits 57.2 40 GGBs Investment Securities 13.4 39% 30 Derivatives 1.2 Other Loans & advances to banks 1.3 sovereign Tbills Senior Debt 3.7
Slide 40: Loans
Loans Gross loans (€ bn) Performing loans (€ bn) Organic1 growth +€3.3bn in FY22 41.0 41.4 43.1 43.5 39.9 40.8 41.2 42.3 38.2 38.5 SEE 9.9 10.0 SEE 10.2 10.4 9.5 9.5 9.9 8.8 9.1 9.2 Senior Notes 4.8 4.9 5.0 4.8 4.9 5.0 Senior Notes 5.1 5.1 5.1 5.1 Greece Greece Business Business 18.1 18.4 16.1 16.9
Slide 41: Funding and liquidity
Funding and liquidity Net loans / Deposits ratio Deposits (€ bn) +€4.1bn 70 74.9% 75.0% 74.3% 73.2% 73.1% 60 55.7 57.2 53.2 52.4 54.0 50 17.7 4Q21 1Q22 2Q22 3Q22 4Q22 SEE 16.6 17.4 16.2 16.4 40 Liquidity coverage ratio (LCR) 30 174.3% 169.0% 172.9% 152.4% 151.3% 20 39.6 Greece 37.0 36.1 37.4 38.3 10
Slide 42: MREL position
MREL position MREL (% RWAs) ▪ €500m MREL-eligible senior preferred bond and €300m Tier II 23.07% Senior preferred 20.48% 3.98% issuance in 2022 leads to 259bps surplus over the January 1st 2023 liabilities3 CBR2 3.70% target 19.09% Own Funds4 2023 MREL 16.78% target ▪ Pro forma for €500m senior pref
Slide 43: Wealth Management
Wealth Management Asset under Management (€ bn) Private Banking CAL1 (€ bn) 8.9 9.1 8.5 8.7 8.4 4.4 4.3 4.1 4.1 4.1 3.9 4.1 4.1 4.1 3.9 Greece 3.3 3.2 3.1 3.1 3.2 Own Mutual Funds 2.6 2.6 Cyprus 2.3 2.4 2.4 3rd Party Mutual Funds 0.5 0.5 0.4 0.4 0.4 Luxembourg 2.1 2.2 2.1 2.4 2.5 Discretionary AuM 0
Slide 44: Profitability
FY 2022 Results Profitability
Slide 45: Net Interest margin & spreads
Net Interest margin & spreads Net Interest margin (bps) Deposit spreads (Greece, bps) 4Q21 1Q22 2Q22 3Q22 4Q22 4Q21 1Q22 2Q22 3Q22 4Q22 Greece 160 167 176 175 217 Savings & Sight (58) (55) (49) 17 142 SEE 198 197 205 219 259 Time (58) (55) (43) (8) 66 Group 170 175 183 186 228 Total (58) (55) (48) 1
Slide 46: Net Interest Income
Net Interest Income NII breakdown (€ m)1 Δ NII (q-o-q, € m)1 4Q21 1Q22 2Q22 3Q22 4Q22 3Q22 381 Loan Margin 311 304 312 353 424 Δ loans 55 Bonds & Derivatives 46 50 68 70 88 TLTRO2 3 20 18 9 34 Δ Bonds & Derivatives 15 MREL (9) (8) (11) (17) (20) Greece 2 Δ TLTRO 17 Money Market & (6) (2) 1 4 8 Repos
Slide 47: Commission Income
Commission Income Commission income breakdown (€ m) Commission income per region (€ m) 72bps over assets 148 148 139 139 130 133 130 133 123 36 SEE 123 47 36 37 Lending 36 32 33 30 23 33 47 Network transactions 48 56 56 54 & credit cards 112 Greece 5 97 97 103 9 90 4 7 5 Capital Markets 23 19 17 Ban
Slide 48: Operating expenses
Operating expenses OpEx per region (€ m) OpEx breakdown (Greece, € m) 237 643 645 226 222 228 231 61 64 66 69 74 SEE 84 90 Depreciation 47 44 IT 164 158 162 162 163 Greece 138 147 Administrative 4Q21 1Q22 2Q22 3Q22 4Q22 60 55 Resolution Fund Cost –to- core income (%) 315 309 Staff FY21 FY22 4Q22 Gre
Slide 49: Pre-provision income (PPI)
Pre-provision income (PPI) Core PPI and other income (€ m) Δ Core PPI (q-o-q, € m) 62 240 332 45 100 Other income 381 481 SEE 265 289 102 225 240 100 74 82 9 381 67 68 89 279 Greece (6) 158 173 192 207 289 4Q21 1Q22 2Q22 3Q22 4Q22 PPI per region (€ m) 597 Δ NII Δ opex 3Q22 Core PPI 4Q22 PPI 4Q22 Cor
Slide 50: Δ Core Operating Profit (y-o-y)
Δ Core Operating Profit (y-o-y, € m) 66 193 63 5 (1 ) (6 ) 1,176 FY22 FY21 900 Core PPI Core PPI (44 ) Greece FY22 2 Δ SEE Δ Fees Δ admin & RF Δ staff OPEX Δ depreciation Δ NII NPEs Δ NII excl. NPEs FY21 1 (291) (418) Loan Loss Loan Loss Provisions Provisions FY21 FY22 Core Operating 482 +83.5% 885
Slide 51: Asset Quality
FY 2022 Results Asset Quality
Slide 52: Asset quality metrics
Asset quality metrics NPEs formation1 (€ m) NPEs ratio (%) Δ NPEs stock (125) (26) (251) (94) (146) (q-o-q, €m) 41 35 6.8% 6.7% 17 SEE 5.9% 18 21 5.6% 5.2% 14 Greece 4Q21 1Q22 2Q22 3Q22 4Q22 3 (24) 4Q21 1Q22 2Q22 3Q22 4Q22 Loan loss provision (€ m) NPE coverage (%) 1.0% 0.6% 0.6% 0.7% 0.8% Cost of R
Slide 53: NPEs formation per segment (Greece)
NPEs formation per segment (Greece) Mortgages (€ m) Consumer (€ m) 39 32 26 22 13 12 17 12 (5) 7 7 10 10 (9) 1 2 4 5 (17) (24) (27) 3 (41) (57) (66) (67) (3) (2) (2) (2) (80) (83)(85)(81) (4) (5) (105) (9) (10) (123) 1Q18 1Q19 3Q20 3Q21 3Q22 3Q18 3Q19 2Q20 4Q20 2Q22 4Q22 2Q18 1Q21 2Q21 4Q21 4Q18 2Q1
Slide 54: NPE metrics (Group)
NPE metrics (Group) 90dpd bridge to NPEs (€ bn) NPEs per region NPE Provisions & 0.2 2.3 Total NPEs NPE ratio 0.6 coverage collaterals / NPEs (€ bn) (%) (%) (%) 1.4 Consumer 0.2 9.6 118.4 120 (1.7) Mortgages 0.5 5.7 72.8 162 Small Business 0.4 12.3 72.2 142 0.6 Corporate 0.9 4.3 65.9 128 2 Greece 1.
Slide 55: Loans’ stage analysis (Group)
Loans’ stage analysis (Group) Loans’ stage breakdown Provisions stock over NPEs (€ bn) 4Q21 1Q22 2Q22 3Q22 4Q22 74.6% Stage 1 32.6 33.1 34.0 35.1 35.6 72.7% 70.6% 71.5% 69.2% Stage 2 5.5 5.3 5.7 5.6 5.6 Stage 3 2.8 2.7 2.5 2.4 2.3 (NPEs) 1 Total 40.8 41.2 42.2 43.1 43.5 4Q21 1Q22 2Q22 3Q22 4Q22 Stag
Slide 56: Capital
FY 2022 Results & EUROBANK Holdings Capital
Slide 57: Capital ratios (CET1 FLB3, q-o-q)
Capital ratios (CET1 FLB3, q-o-q) 15.2% 80bps 32bps 14.2% 9bps 12bps (7bps) (22bps) 1 3Q22 CET1 FLB3 DTC Asset growth other Debt securities Synthetic 4Q22 PBT 4Q22 CET1 FLB31 amortisation at FVOCI securitization RWAs 42,091 (36) 5972 1223 0 (973) 0 41,801 (€ m) Capital 5,964 (36) 0 634 50 (15) 336 6
Slide 58: Capital ratios (CAD, q-o-q)
Capital ratios (CAD, q-o-q) 19.0%2 80bps 73bps 40bps 17.2%2 6bps 12bps 3.0% Tier II (7bps) 2.3% (28bps) Tier II 16.0% CET1 CET1 14.9% 1 1 3Q22 CAD DTC Asset growth Other Debt securities Synthetic Tier II 4Q22 PBT 4Q22 CAD amortisation at FVOCI securitization RWAs 42,183 (36) 597 1273 0 (973) 0 0 41,
Slide 59: ESG commitments and performance
FY 2022 Results ESG commitments and performance https://www.eurobankholdings.gr/en/esg-environment-society-governance
Slide 60: Outline of ESG Approach
Outline of ESG Approach Eurobank’s is developing its ESG strategy across 2 pillars of impact: ESG Strategy - The Financed Impact Strategy is directed on: Embedding ESG in the ▪ clients’ engagement and awareness to adapt their business in a way to address climate change challenges Bank’s ▪ actions fo
Slide 61: 2022 Highlights of ESG actions, initiatives and achievements
2022 Highlights of ESG actions, initiatives and achievements FINANCED Our ESG risk initiatives through our dedicated Bank-wide program “Program Field” IMPACT ▪ Enhanced ESG risk management within our 3 Lines of Defense model, for delivering the Bank’s ESG strategy ▪ Approved an enhanced governance s
Slide 62: 2022 Highlights of ESG actions, initiatives and achievements
2022 Highlights of ESG actions, initiatives and achievements FINANCED IMPACT Supporting our customers in the transition to Net Zero Sustainable finance update Target achieved >20% of the annual gross new corporate disbursements to be classified as Green/ Environmentally sustainable >60% y-o-y growth
Slide 63: Key priorities for 2023
Key priorities for 2023 FINANCED IMPACT We aim to continuous improvement ▪ We will develop a robust and realistic roadmap towards net zero Key priorities & ▪ We are actively supporting our clients to climate transition with an ambition to increase our sustainable financing commitments going forward
Slide 64: 2022 Highlights of ESG actions, initiatives and achievements
2022 Highlights of ESG actions, initiatives and achievements OPERATIONAL Energy & Emissions IMPACT ▪ Energy Management & Conservation: CEO’s Initiative for Energy Conservation (-10% cumulative for 2022-2023) resulted to significant energy consumption reduction through large-scale technical intervent
Slide 65: 2022 Highlights of ESG actions, initiatives and achievements
2022 Highlights of ESG actions, initiatives and achievements OPERATIONAL Employee Engagement IMPACT ▪ Thorough investment in employees’ upskilling and reskilling, to develop capabilities and widen career development opportunities | Fostering 77.4% more learning days per employee in 2022, increase by
Slide 66: ESG Ratings
ESG Ratings Index DEC 2021 DEC 2022 Continuing 15.3 / Low Risk 12.1 / Low Risk ▲ improvement in Core ESG BBB BBB u Ratings & Indices 48 50 ▲ 38 50 ▲ ▲: Improvement u: No change Included for the first time in the Sustainalytics Top-Rated ESG Sustaining Companies List participation Ranked at 59th posi
Slide 67: Macroeconomic update
FY 2022 Results Macroeconomic update
Slide 68: Macro & market developments and FY23 outlook
Macro & market developments and FY23 outlook ▪ 2022 Real GDP exceeding expectations at 5.9%; expected above 2% in 2023 ▪ Drivers of FY-2022 real GDP growth (+5.9% y-o-y): private consumption (+7.8% y-o-y), exports of services (+9.9% y-o-y; tourist receipts in FY2022 at 97% of the 2019 record high, a
Slide 69: Domestic Labour Market
Domestic Labour Market Support measures and the reopening of the economy led to drop of unemployment Employment growth decelerates in recent months Long term unemployment still well above the pre-debt crisis levels Recovery of productivity requires continued implementation of structural reforms and
Slide 70: Selected indicators of domestic economic activity
Selected indicators of domestic economic activity ESI improves at the start of 2023; higher relative to the EA PMI increases; above the 50 units threshold Retail trade volume: resilience despite the inflationary pressures Manufacturing production: on an upward trajectory Source: ELSTAT, IOBE, S&P Gl
Slide 71: Significant boost to growth ahead from RRF funds
Significant boost to growth ahead from RRF funds Greece is the largest RRF beneficiary relative to the size of its economy (RRF G&Ls at 16.7% of its 2021 GDP) • Disbursement: RRF pre-financing of €4bn (G: €2.3bn / L: €1.7bn) in Aug-21, first regular payment of €3.6bn (G: €1.72bn / L: €1.84bn) in Apr
Slide 72: Real estate prices: growth remained strong in Q3 2022
Real estate prices: growth remained strong in Q3 2022 Index of Apartment Prices Index of Retail and Office Prices 3Q10 – 3Q22 1H11 – 1H22 Source: BoG 72
Slide 73: Fiscal and current account balances
Fiscal and current account balances ▪ 2023 Budget fiscal forecasts for 2022 & 2023 (in ESA2010 terms): ▪ General Government (GG) balance at -4.1% and -2.0% of GDP respectively (from 1.1%, -9.9% and -7.5% of GDP in 2019, 2020 and 2021 respectively) ▪ GG Primary balance at -1.6% and 0.7% of GDP respec
Slide 74: Sovereign debt profile
Sovereign debt profile General Government gross public debt ▪ According to the 2023 Budget, the Greek Gross Public (% of GDP, ESA terms) Debt is expected at 168.9% and 159.3% of GDP in 2022 and 2023 respectively vs 194.5% in 2021 and a peak of 206.3% in 2020 ▪ 75.8% of the debt stock is held by offi
Slide 75: Bulgaria
Bulgaria ▪ The economy expanded by 3.4% in 2022, from 7.6% in 2021 ▪ Growth continues in 2023, expected at 1.4% due to: (i) potential delays in the RRP implementation that could keep investments idle for another year and (ii) reduced exports due to weak global demand. A modest rebound to 2.5% is exp
Slide 76: Cyprus
Cyprus ▪ EC (2023 Winter Forecasts) foresees a real GDP growth rate of 1.6% for 2023, accelerating to 2.1% in 2024 ▪ The Cypriot economy continued to exhibit strong momentum in 2022, growing on average by 5.6% (flash estimate), a moderate deceleration relative to 2021 (6.6%), given the war in Ukrain
Slide 77: Appendix I – Supplementary information
FY 2022 Results Appendix I – Supplementary information
Slide 78: Summary performance
Summary performance Balance sheet – key figures Income statement – key figures €m 4Q22 3Q22 €m 4Q22 3Q22 Gross customer loans 43,450 43,086 Net interest income 469.5 380.9 Provisions (1,626) (1,696) Commission income 148.2 139.0 Loans FVTPL 16 20 Operating income 718.1 564.4 Net customer loans 41,67
Slide 79: Consolidated quarterly financials – Income statement
Consolidated quarterly financials – Income statement (€ m) 4Q22 3Q22 2Q22 1Q22 4Q21 Net Interest Income 469.5 380.9 360.6 339.4 320.9 Commission income 148.2 139.0 132.7 123.0 129.9 Other Income 100.4 44.5 332.0 240.4 62.2 Operating Income 718.1 564.4 825.3 702.7 513.0 Operating Expenses (236.7) (23
Slide 80: Consolidated quarterly financials – Balance sheet
Consolidated quarterly financials – Balance sheet (€ m) 4Q22 3Q22 2Q22 1Q22 4Q21 Consumer Loans 3,354 3,352 3,372 3,281 3,241 Mortgages 10,204 10,265 10,173 10,091 10,097 Household Loans 13,558 13,617 13,544 13,372 13,337 Small Business Loans 3,842 3,822 3,858 3,765 3,752 Corporate Loans 21,199 20,8
Slide 81: Consolidated financials
Consolidated financials Income Statement (€ m) FY22 FY21 Δ y-o-y (%) Net Interest Income 1,550.4 1,320.6 17.4 Commission income 542.9 455.8 19.1 Other Income 717.2 127.8 >100 Operating Income 2,810.5 1,904.2 47.6 Operating Expenses (917.5) (876.1) 4.7 Pre-Provision Income 1,892.9 1,028.1 84.1 Loan L
Slide 82: SEE operations key figures – 4Q22
SEE operations key figures – 4Q221 Bulgaria Cyprus Serbia Lux Sum Assets 7,944 8,793 2,504 2,304 21,545 Gross loans 5,499 2,562 1,730 753 10,544 Balance Sheet Net loans 5,319 2,516 1,676 753 10,264 (€m) NPE loans 203 70 101 0 374 Deposits 6,993 7,192 1,630 1,848 17,663 CAD2 20.7% 27.3% 19.4% 23.9% C
Slide 83: Appendix II – Glossary
FY 2022 Results Appendix II – Glossary
Slide 84: Glossary – Definition of Alternative Performance Measures
Glossary – Definition of Alternative Performance Measures (APMs) & other selected financial measures / ratios This document contains financial data and measures as published or derived from the published consolidated financial statements which have been prepared in accordance with International Fina
Slide 85: Glossary – Definition of Alternative Performance Measures
Glossary – Definition of Alternative Performance Measures (APMs) & other selected financial measures / ratios Adjusted net profit: Net profit/loss from continuing operations after deducting restructuring costs, goodwill impairment, gains/losses related to the transformation plan and income tax adjus
Slide 86: Glossary – Definition of Alternative Performance Measures
Glossary – Definition of Alternative Performance Measures (APMs) & other selected financial measures / ratios Forborne: Forborne exposures (in compliance with EBA Guidelines) are debt contracts in respect of which forbearance measures have been extended. Forbearance measures consist of concessions t
Slide 87: Glossary – Definition of Alternative Performance Measures
Glossary – Definition of Alternative Performance Measures (APMs) & other selected financial measures / ratios NPE ratio: Non Performing Exposures (NPEs) at amortized cost divided by Gross Loans & Advances to Customers at amortized cost at the end of the reported period. NPEs formation: Net increase/
Slide 88: Investor Relations contacts
Investor Relations contacts Dimitris Nikolos +30 214 4058 834 dnikolos@eurobankholdings.gr Yannis Chalaris +30 214 4058 832 ychalaris@eurobankholdings.gr Christos Stylios +30 214 4058 833 cstylios@eurobankholdings.gr Investor Relations Division +30 214 4058 834 investor_relations@eurobankholdings.gr
Eurobank Ergasias Services and Holdings — FY2022 Earnings Presentation on 6ix