Eurobank S.a. · ATHEX:EUROB
Eurobank — Eurobank Ergasias Services and Holdings — FY2023 Earnings Presentation
94 slides from Eurobank's earnings presentation, Mar 7, 2024
Slide 1: FY2023 results
4 EUROBANK Holdings FY2023 results 7 March 2024
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 FY23 Operating Performance 4 2024-2026 Business Plan 9 FY23 results highlights 26 Diversified business model 32 Balance sheet 37 Profitability 45 Asset Quality 53 Capital 58 Business model transformation 61 Sustainability 64 Macroeconomic update 73 Appendix I – Supplementary inform
Slide 4: FY23 Operating performance
FY 2023 Results FY23 Operating performance
Slide 5: FY23: Operating performance & strategic initiatives
FY23: Operating performance & strategic initiatives Operating ▪ Core Operating profit1 at €1,471m, up by 69.4% y-o-y ▪ Adjusted Net Profit at €1,256m up 6.6% y-o-y Performance ▪ EPS at €0.31 ▪ RoTBV2 at 18.1%; TBV per share up 21.1% y-o-y at €2.07 Volumes ▪ Performing loans organic growth3 at €1.8bn
Slide 6: Outperforming profitability targets
Outperforming profitability targets Core Operating Profit Increased Profitability TVB per share RoTBV1 1,471 2.07 +69.4% 18.1% +21.1% 1,100 13.0% 869 1.71 11.4% FY22 FY23 2 FY23E 1 3 FY22 FY23 2 FY22 FY23 FY23E 1. Adjusting net profit for the year, by normalizing Other Income (after deducting signif
Slide 7: Outperforming balance sheet targets
Outperforming balance sheet targets Asset quality metrics Capital Position Provisions +180bps / NPEs 75.5% 86.4% FLB3 CET1 17.0% 16.0% (170bps) 15.2% 1 3 FY22 FY23 FY23E 5.2% 5.2% CAD +120bps 3.5% 20.2% 19.0% 19.0% 1 2 FY23 FY23E FY22 4 1 3 FY23E FY22 FY23 1. Estimates according to March 2023 guidan
Slide 8: Outperforming 2023 financial goals
Outperforming 2023 financial goals FY22 FY23E1 FY23 Δ performing loans €3.2bn c.€2.8bn €1.8bn Core PPI €1,145m c.€1.4bn €1,816m Core Operating Profit2 €869m c.€1.1bn €1,471m NIM 191bps c.235bps 275bps RoTBV3 11.4% c.13.0% 18.1% EPS €0.36 c.€0.22 €0.31 CoR4 71bps c.85bps 85bps NPE ratio 5.2% c.5.2% 3
Slide 9: 2024-2026 Business Plan
FY 2023 Results 2024-2026 Business Plan
Slide 10: Our Purpose, Vision, Values and Strategy
Our Purpose, Vision, Values and Strategy Be the leading bank in creating PROSPERITY prosperity for our customers, employees, NEEDS PIONEERS shareholders & society by offering Our Purpose Our Vision pioneering solutions Deliver sustainable returns via: Empathy: Care for our customers Our Strategy Our
Slide 11: Business plan assumptions
Business plan assumptions GDP growth (%, 2024-2026) Interest Rates & other 2024 2025 2026 Greece Bulgaria Cyprus ECB DFR (EoP) 3.25% 2.75% 2.75% 3.2 3.0 3.1 2.3 2.9 2.8 ECB DFR (Avg) 3.69% 2.88% 2.75% 2.1 2.0 2.0 Euribor 3M (Avg) 3.55% 2.80% 2.70% Inflation y-o-y (Greece) 2.6% 2.0% 1.9% FY24 FY25 FY
Slide 12: 2024-2026 key goals
2024-2026 key goals A regional bank with diversified earnings Capitalize on the Greek stream; non-Greek growth cycle through our operations c.50% of profits strong franchise • c.€5.0bn net credit expansion Resilient returns in a lower rates • Fees over assets to reach c.85bps environment, to be furt
Slide 13: Strong footprint in the region
Strong footprint in the region Greece €58bn assets • Well positioned to capitalize on the growth cycle with c.€5.0bn net credit growth: • Corporate performing loans growth c.8.0% CAGR; leading position in RRF • Maintain dominant position in retail lending • Capitalize on our strong position in wealt
Slide 14: Hellenic Bank
Hellenic Bank Selected P&L items (€ m) FY23 Net interest income 536 Hellenic Bank (HB) Business Plan assumptions: Commission income2 87 ▪ Static view of HB balance sheet; no growth assumed in the 3-year period Operating expenses (259) PPI 405 ▪ No synergies on costs & revenues PBT 394 ▪ Stake to rea
Slide 15: Resilient earnings in a lower rates environment
Resilient earnings in a lower rates environment ECB DFR1 4.00% 3.25% 2.75% Core Operating Profit >€1.5bn c.€1.6bn NII €1.47bn SEE 32% 40% 50% Greece 68% 60% 50% 3 FY23 Rates & 2 Volumes Fees OpEX LLPs HB & BNP FY24E FY26E Liabilities 1. End of Period. 2. Liabilities including deposit beta, MREL issu
Slide 16: Robust capital plan
Robust capital plan Surplus capital >250bps… …to fund M&As & reward shareholders c.250bps Surplus capital (c.70bps) CET1 17.0% >17.0% >250bps (c.80bps) >17.0%5 FLB3 (c.75bps) (c.10bps) 14.5% 12.24 OCR FY23 Organic capital Asset growth HB Shareholders' Other FY24E FY26E Internal 3 generation1 reward
Slide 17: Capital metrics
Capital metrics Strong capital levels (CAD) RWAs evolution 2 (€ bn) DTC / CET1 evolution >20.0% >20.0% 19.4% 55 17.0% 534 44% c.300bps buffer 493 c.36% 43 c.31% c.28% 1 Internal FY23 FY24E FY26E Capital target FY23 FY24E FY25E FY26E FY23 FY24E FY25E FY26E 180bps AT1 capacity (not included in the bus
Slide 18: Solid returns drive higher payout ratio
Solid returns drive higher payout ratio RoTBV1 TBV per share (€) 18% c.15% c.2.70 c.13% c.2.30 11% 8% 2.07 FY21 FY22 FY23 FY24E FY25E-FY26E FY23 FY24E FY25E FY26E RoE 1,2 Dividend payout (€)3 21% c.50% c.18% c.15% >25% 12% 9% 14% FY21 FY22 FY23 FY24E FY25E-FY26E FY23 FY24E FY25E FY26E 1. Adjusting n
Slide 19: 2024 – 2026 financial goals
2024 – 2026 financial goals FY23 FY24E FY26E Core Operating Profit1 €1.47bn >€1.5bn c.€1.6bn RoTBV2 18.1% c.15% c.13.0% Payout ratio3 14% >25% c.50% TBV/S €2.07 c.€2.30 c.€2.70 CET14 17.0% >17% >17% NPE ratio 3.5% <3.5% c.3.0% 1. Core Operating profit= Core PPI minus loan loss provisions. 2. Adjuste
Slide 20: Volumes
Volumes Performing loans (organic Δ)1 Deposits growth (€ bn) 2023 2024E 2024-2026E Δ (€ bn) 2023 2024E 2024-2026E Retail (0.3) c.0.2 c.1.0 Greece 0.4 c.1.0 c.3.3 Corporate 0.9 c.1.1 c.4.0 SEE2 1.4 c.1.0 c.3.5 Greece 0.6 c.1.3 c.5.0 Group 1.8 c.2.0 c.6.8 SEE2 1.2 c.1.0 c.3.5 Group 1.8 c.2.3 c.8.5 Liq
Slide 21: Loan and Deposit Spreads
Loan and Deposit Spreads Performing loan spreads1 Deposit spreads (Greece, bps) (Greece, bps) 274 c.280 FY23 FY24E FY26E Total c.190 Corporate 239 c.210 c.190 Time 141 c.140 c.100 Retail 314 c.275 c.320 Total 271 c.240 c.240 FY23 FY24E FY26E NIM (Group, bps) Deposits mix (Greece) FY23 FY24E FY26E 27
Slide 22: Net Interest Income
Net Interest Income NII evolution (€ m)1 c.€2.3bn c.€2.4bn €2.2bn c.90 2024 NII Sensitivities: 260 c.(70) c.(60) c.(30) c.(30) ±10bps corporate loan spreads: €15m ±25bps Euribor 3M3: €30m ±5% time deposit beta: €20m 2 FY24E FY26E FY23 Δ Rates, spreads & Δ Repos & other Δ HB & BNP Δ MREL Δ Volumes Δ
Slide 23: Fee and commission income
Fee and commission income Fees / Assets (bps) Fees / Income (%) Fees (€m) FY23 544 Greece c.85 c.30 Δ y-o-y Group c.78 Δ Lending +4% c.75 c.24 c.24 72 c.72 21 Δ Wealth Mngt, Bancassuarnce & Private Banking +20% 69 c.21 19 Δ Retail +5% FY23 FY24E FY26E FY23 FY24E FY26E Δ Rental & other +3% Managed Fu
Slide 24: Operating Expenses
Operating Expenses ❑ Greece cost drivers: Greece (€ m) • HR costs: VES of c.500FTEs in 2024 with annual savings of c.€20m 644 15 5 c.645 c.675 (5) (15) • IT and Digital investments 2024-2026: c.€220m • Focus to retain key personnel & attract highly skilled 1 FY23 Δ other G&A FY24E FY26E Δ resolution
Slide 25: Asset quality metrics
Asset quality metrics NPE ratio NPE coverage 5.2% 86.4% c.80.0% 3.5% <3.5% 75.5% c.3.0% FY22 FY23 FY24E FY26E FY22 FY23 FY24E-FY26E CoR1 0.85% <0.80% c.0.65% FY23 FY24E FY26E 1. On net loans. 25
Slide 26: FY23 results highlights
FY 2023 Results FY23 results highlights
Slide 27: FY23 results highlights: Profitability
FY23 results highlights: Profitability ❑ Adjusted Net Profit €1,256m in FY23 P&L (€ m) 4Q23 3Q23 Δ(%) FY23 FY22 Δ(%) ❑ FY23 RoTBV1 at 18.1% Net interest income 572.8 558.4 2.6 2,173.7 1,479.7 46.9 Commission income 140.8 133.1 5.7 543.8 522.0 4.2 ❑ TBV per share up 21.1% y-o-y at €2.07; up 6.7% q-o-
Slide 28: FY23 results highlights: Balance sheet
FY23 results highlights: Balance sheet Capital Key Balance sheet ratios ▪ Total CAD at 20.2%1, up 120bps y-o-y ▪ CET1 FLB3 at 17.0%2, up 180bps y-o-y; up 20bps q-o-q Group (%) 4Q23 3Q23 2Q23 1Q23 4Q22 Capital6 Volumes CAD 20.21 19.5 19.0 18.4 19.0 ▪ Performing loans organic growth3 at €1.8bn in FY23
Slide 29: Net interest income and fees bridge
FY22 1,480 Δ Loans 614 Δ NII (y-o-y, € m)1 Δ Deposits (236) Core Income Δ Bonds & Derivatives 208 Greece +46.9% 1 Δ Central banks' net funding 2 Δ Gapping & other (163) Δ SEE 271 FY23 2,174 1. Analysis based on gross income. 2. Including MREL, Money Market, Repos and Tier II. FY22 522 FY22 Mechant a
Slide 30: Profitability
Profitability Core PPI and Provisions (€ m) Core Operating Profit2 (€ m) +58.6% 1,816 +69.4% 1,471 869 1,145 Core PPI FY22 FY23 Profit before Tax3 (€ m) Loan Loss (276) (345) Provisions 2.3% 1,550 FY22 FY23 1,515 CoR1 71 85 FY23 FY22 (bps) 1. On net loans. 2. Core Operating profit= Core PPI minus lo
Slide 31: Capital & TBV
Capital & TBV CET1 FLB3 TBV per share (€) +180bps 17.0%1 15.2% +21.1% 2.07 4Q22 4Q23 1.71 CAD +120bps 20.2%1 19.0%2 4Q22 4Q23 4Q22 4Q23 1. Pro forma for €300m Tier II issuance in January 2024 and Solar securitization and Leon NPE transaction. Including period profits, subject to AGM approval. 2. Pro
Slide 32: Diversified business model
FY 2023 Results Diversified business model
Slide 33: Segmental analysis: diversified earnings generation
Segmental analysis: diversified earnings generation Key Metrics (FY23) Net profit1 (€ m) Net 2022 Group (%) Assets RWAs TBV RoTBV2 RoTBV Profit1 € bn € bn €m €m 167 208 171 194 154 Greek banking Greek Banking 57.0 32.4 4,610 740 17.7% 22.0% operations Operations 4Q22 34 1Q23 2Q23 3Q23 4Q23 Greek Inv
Slide 34: Eurobank Group Investment Real Estate Portfolio
Eurobank Group Investment Real Estate Portfolio Big boxes & FY23 Office Mixed use Retail Logistics Special use Total supermarkets No. of assets (#) 60 26 80 33 22 27 248 Book Value (€ m) 441 211 163 343 88 75 1,322 % of total BV 33% 16% 12% 26% 7% 6% 100% BV / GLA (€ /sqm) 1,579 2,592 1,910 1,264 63
Slide 35: Bulgaria key metrics
Bulgaria key metrics1 FY23 Highlights Core PPI and provisions (€ m) Net profit2 €189m, up 97.4% y-o-y ▪ Core PPI at €234m, up 51.0% y-o-y 67 65 Core 55 PPI ▪ NII up 50.1% y-o-y at €323m 46 42 ▪ Commission income up 4.6% y-o-y at €76m ▪ Cost – to - core income at 41.5% (11) (10) (14) (14) (15) Provis
Slide 36: Cyprus key metrics
Cyprus key metrics1 FY23 Highlights Core PPI (€ m) Net profit €258m; up >100% y-o-y ▪ Core PPI up 100% y-o-y at €255m 69 71 63 ▪ NII up >100% y-o-y at €273m 53 43 ▪ Commission income down 1.6% y-o-y at €39m ▪ Cost – to – core income at 18.3% 4Q22 1Q23 2Q23 3Q23 4Q23 NPEs ratio and provisions / NPEs
Slide 37: Balance sheet
FY 2023 Results Balance sheet
Slide 38: Balance sheet composition
Balance sheet composition Assets (€ bn) Liabilities and Equity (€bn) 79.8 79.8 60 50 Net loans 41.5 40 Deposits 57.4 30 Investment Securities 15.1 Loans & advances to banks 2.4 20 Wholesale funding 6.2 Cash & Central banks 10.9 Tier II 1.3 Other3 3.2 10 Investment property 1.4 Central banks 3.8 DTA1
Slide 39: Securities portfolio
Securities portfolio Breakdown per issuer Breakdown per classification Trading & other; 4% FVOCI; 23% CLOs (AAA); Trading & other; 10% 4% € 15.1 bn Financial Institutions; Amortized Cost; 73% 11% Greek Corporate bonds; Government; Amortized cost breakdown 10% € 15.1 bn 39% Corporate bonds; CLOs (AAA
Slide 40: Loans
Loans Gross loans (€ bn) Performing loans (€ bn) Organic1 growth +€1.8bn in FY23 41.7 42.2 42.3 42.8 41.8 41.5 39.8 39.8 40.1 40.4 8.7 9.1 9.8 10.0 10.3 SEE 8.4 9.7 10.0 SEE 8.8 9.5 4.9 4.7 4.6 4.5 4.5 Senior Notes 4.9 4.5 4.7 4.6 4.5 Senior Notes Greece Greece Business 18.4 Business 18.3 18.2 18.2
Slide 41: Deposits
Deposits Breakdown by region (€ bn) Breakdown by type 32% 34% 35% 29% Group +1.8 24% Time/ Greece 30% 32% 32% Total 27% 22% 55.6 55.9 56.5 57.4 55.1 4Q22 1Q23 2Q23 3Q23 4Q23 SEE 16.0 16.2 16.9 16.8 17.5 Breakdown by customer Greece 39.6 38.9 39.0 39.7 40.0 Individuals & SB; Corporate; 63% € 57.4 bn
Slide 42: Liquidity
Liquidity Net loans / Deposits ratio Net ECB Funding (€ bn) (5.3) (5.7) (5.2) (7.5) (7.1) 72.9% 72.6% 72.4% 72.3% 8.8 8.3 7.4 72.0% 4.2 3.8 Funding (14.1) (14.0) (12.6) (11.7) (10.9) Cash 4Q22 1Q23 2Q23 3Q23 4Q23 FY22 1Q23 1H23 9M23 FY23 Liquidity coverage ratio (LCR) & Net Stable Funding ratio (NSF
Slide 43: MREL position
MREL position MREL (% RWAs) 24.91 ▪ 4Q23 MREL ratio at 24.91%, exceeding the non-binding January 1st 23.23 CBR2 4.18 6.41 Senior preferred 2024 MREL target of 23.23%, incl. CBR liabilities3 MREL 19.05 target 18.50 Own Funds4 ▪ Increased MREL capacity in 4Q23 includes €500m MREL-eligible senior prefe
Slide 44: Wealth Management
Wealth Management Managed Funds (AuM, € bn) Private Banking (CAL1, € bn) +21% +29% 11.0 5.3 10.6 10.7 4.9 9.8 4.8 4.4 9.1 4.1 4.8 4.6 4.6 Greece 4.2 4.1 4.3 3.8 3.9 3.5 Cyprus 3.2 Own Mutual 2.9 3.0 3.2 Funds 2.8 2.6 3rd Party Mutual Luxembourg Funds 0.4 0.4 0.5 0.5 0.5 2.8 3.0 3.0 3.1 2.5 0.6 0.6 0
Slide 45: Profitability
FY 2023 Results Profitability
Slide 46: Loan spreads
Loan spreads Loan client rates (Greece, bps) Lending spreads (Greece, bps)1 4Q22 1Q23 2Q23 3Q23 4Q23 614 625 579 Performing 286 285 281 265 255 528 Corporate 242 242 244 237 233 436 591 607 3M avg Euribor 177 263 336 377 396 559 6M avg Euribor 229 309 366 397 403 509 Retail 340 340 329 302 284 419 C
Slide 47: Net Interest margin & deposit spreads
Net Interest margin & deposit spreads Net Interest margin (bps) Deposit spreads (Greece, bps) 4Q22 1Q23 2Q23 3Q23 4Q23 Savings & Sight 142 238 318 364 386 351 346 SEE Time 66 123 143 149 146 318 Group Total 129 211 269 301 312 283 284 290 135 235 315 362 385 1M avg Euribor 272 Greece 249 253 270 Dep
Slide 48: Net Interest Income
Net Interest Income NII breakdown (€ m)1 Δ NII (q-o-q, € m)1 FY23 NII up 46.9% y-o-y at €2,174m 3Q23 558 4Q22 1Q23 2Q23 3Q23 4Q23 Δ Loans 11 Loans 396 460 516 564 580 Bonds & Derivatives 87 114 126 132 151 Δ Bonds & Derivatives 16 Greece Central banks’ net 34 29 40 55 56 Δ Central banks' net funding
Slide 49: Commission Income
Commission Income Commission income breakdown (€ m) Commission income per region (€ m) 71bps FY23 commission income up 4.2% y-o-y at €544m; over assets l-f-l up 7.1%1 142 141 141 142 141 141 133 133 129 129 30 30 33 31 46 44 31 40 Lending 29 SEE 38 Network transactions 51 52 50 42 48 & credit cards
Slide 50: Operating expenses
Operating expenses OpEx per region (€ m) OpEx breakdown (Greece, € m) 645 (0.1%) 644 222 221 222 229 229 90 89 Depreciation 59 60 61 67 69 SEE 44 58 IT 163 162 161 162 160 Greece 147 142 Administrative 55 17 Resolution Fund 4Q22 1Q23 2Q23 3Q23 4Q23 Cost –to- core income (%) 309 338 Staff 4Q22 4Q23 F
Slide 51: Pre-provision income (PPI)
Pre-provision income (PPI) Core PPI and other income (€ m) Δ Core PPI (q-o-q, € m) 99 (12) 31 12 55 Other income 484 540 459 462 410 SEE 14 8 484 55 370 127 144 145 462 90 106 (0) 304 332 318 339 Greece 279 4Q22 1Q23 2Q23 3Q23 4Q23 PPI per region (€ m) 540 4Q23 Core PPI Δ NII Δ opex 3Q23 Core PPI 4Q
Slide 52: Δ Core Operating Profit (y-o-y)
Δ Core Operating Profit (y-o-y, € m) +58.6% 1,816 Core PPI 423 19 28 1 229 (28 ) Core PPI 1,145 Greece (276) (345) Δ admin & RF Δ SEE Δ Fees Δ staff OPEX Loan Loss Loan Loss Δ NII Δ depreciation 1 Provisions Provisions FY22 FY23 Core Operating 869 +69.4% 1,471 Profit PBT2 1,515 1,550 1. RF: Resoluti
Slide 53: Asset Quality
FY 2023 Results Asset Quality
Slide 54: Asset quality metrics
Asset quality metrics NPEs formation1 (€ m) NPEs ratio (%) Δ NPEs stock (146) (48) 90 (145) (540) 5.2% 5.1% 5.2% (q-o-q, €m) 4.9% Single 133 corporate 3.5% 33 13 27 SEE 7 Greece 4Q22 1Q23 2Q23 3Q23 4Q23 3 (29) 4Q22 1Q23 2Q23 3Q23 4Q23 Loan loss provision (€ m) NPE coverage (%) 83 75 88 89 88 Cost of
Slide 55: NPEs formation per segment (Greece)
NPEs formation per segment (Greece) Mortgages (€ m) Consumer (€ m) 17 39 42 12 32 26 21 10 10 16 7 6 13 12 10 6 3 5 4 3 (5) (9) (2) (27) 3Q21 3Q22 2Q21 4Q21 3Q23 1Q22 2Q22 4Q22 1Q21 1Q23 2Q23 4Q23 3Q21 3Q23 3Q22 2Q21 4Q21 1Q21 1Q22 2Q22 4Q22 1Q23 2Q23 4Q23 Small Business (€ m) Corporate (€ m) 84 1 4
Slide 56: NPE metrics (Group)
NPE metrics (Group) 90dpd bridge to NPEs (€ bn) NPEs per region Provisions & NPE Total NPEs NPE ratio collaterals / 0.3 coverage 1.5 NPEs 0.5 (€ m) (%) (%) (%) 0.8 Consumer 68 4.2 181.0 181 (1.3) Mortgages 361 4.7 91.6 185 Small Business 258 8.7 76.3 147 0.2 Corporate 582 2.9 67.9 134 2 90dpd NPF 0-
Slide 57: Loans’ stage analysis (Group)
Loans’ stage analysis (Group) Loans’ stage breakdown Provisions stock over NPEs (€ bn) 4Q22 1Q23 2Q23 3Q23 4Q23 86.4% Stage 1 34.2 34.4 34.9 35.2 36.3 76.0% 75.5% 73.2% 75.0% Stage 2 5.4 5.1 5.1 5.0 4.9 Stage 3 2.2 2.1 2.2 2.1 1.5 (NPEs) 1 Total 41.7 41.6 42.2 42.2 42.8 4Q22 1Q23 2Q23 3Q23 4Q23 Stag
Slide 58: Capital
FY 2023 Results & EUROBANK Holdings Capital
Slide 59: Capital ratios (CET1 FLB3, q-o-q)
Capital ratios (CET1 FLB3, q-o-q) 41bps 17.0% 103bps 20bps 16.4% (9bps) (9bps) (60bps) (26bps) 2024 OCR 12.2% 1 5 securitization 4QPBT Other securities at Asset Growth transactions amortisation 3Q23 4Q23 Synthetic FVOCI Debt NPE DTC RWAs 42,603 0 (48) 1,2702 5863 0 (999) (170) 43,242 (€ m) Capital 6
Slide 60: Capital ratios (CAD, q-o-q)
Capital ratios (CAD, q-o-q) 70bps 20.2% 103bps 19.5% 41bps 19.0%2 (9bps) (11bps) (60bps) (9bps) Tier II 2.6% (30bps) 20bps Tier II 2.5% CET1 17.0% CET1 16.4% 2024 CAD OCR 15.1% 1 6 1 securitization Other Tier II 4Q23 PBT securities at Asset Growth transactions 4Q23 Pro amortisation 3Q23 amortisation
Slide 61: Business model transformation
FY 2023 Results Business model transformation
Slide 62: Transformation objective is the delivery of changes that enable business to achieve ambitious step improvement
Transformation objective is the delivery of changes that enable business to achieve ambitious step improvement in performance Overview of Transformation Achievements to Date Bank Everywhere Simplification 360 Data Empowerment Grew phygital sales to ~16% of total sales and Boosted operational efficie
Slide 63: 2024 will be a key year for the “Eurobank 2030” Transformation
2024 will be a key year for the “Eurobank 2030” Transformation Transformation 2.0: “What got us here won’t get us there” Transformation 1.0: “Deliver to perform” Delivering the change required to achieve our strategic targets for the next three years Transitioning maturing activities • Expanding our
Slide 64: Sustainability
FY 2023 Results Sustainability https://www.eurobankholdings.gr/en/esg-environment-society-governance
Slide 65: Sustainability strategy
Sustainability strategy Sustainability strategy across 2 pillars of impact Financed Impact Operational Strategy Impact Strategy The Financed Impact Strategy is directed on: The Operational Impact Strategy is directed on: ▪ clients’ engagement and awareness to adapt their business in ▪ Environmental
Slide 66: Highlights of 2023
Highlights of 2023 Business ▪ Roll-out of our Sustainability Strategy leading to tangible outcomes Environment & Strategy ▪ ‘Net Zero 2050’ commitment both for our operations and portfolio ▪ Significant progress in the integration of CR&E risks in our 3 LoD Model Governance ▪ Incorporation of climat
Slide 67: TCFD Climate-related & Environmental Risk Report
TCFD Climate-related & Environmental Risk Report ❑ Eurobank published its TCFD Climate-related & Environmental Risk Report2 in December 2023. The Report has been prepared in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) to facilitate standardiz
Slide 68: Financed Impact Strategy – Key Targets and Metrics
Financed Impact Strategy – Key Targets and Metrics For Eurobank, being a pioneer in sustainability is a key priority. For 2023, we managed to reach all of our ambitious sustainable finance quantitative Portfolio Decarbonization Highlights for 2023 targets, assisting our clients in their transition p
Slide 69: Operational Impact Highlights - Environment
Operational Impact Highlights - Environment • Operational Net Zero: Action Plan and carbon reduction curves in place. Verified operational carbon footprint as per ISO -10.9% Energy Performance Electric Energy consumption (kWh) 2023 34.7 mn %var -9.4% Tgt 2024 -5.0% 14064. Total Energy Natural Gas Co
Slide 70: Operational Impact Highlights - Social
Operational Impact Highlights - Social • Moving Education Forward: In Jan 2024, the Bank 384 Graduates rewarded exceptional graduates of Attica and Central Greece for the academic year 2022-2023. The program is Rewarded expanding to support a professional postgraduate program at the Athens Universit
Slide 71: Operational Impact Highlights – People & training
Operational Impact Highlights – People & training Internal Capacity Building External Capacity Building: • Launch of the Code of Conduct digital learning program. 94% Participation (mandatory completion) • Awareness initiatives for clients, including the Digital Academy series of ESG webinars: 2 324
Slide 72: Sustainability Ratings & Distinctions
Sustainability Ratings & Distinctions Sustainability Ratings • Sustainalytics - Significant score improvement from 12.1 to 10.6, maintaining the “Low Risk” mark. The Bank achieved the ESG Regional Top-Rated distinction (Europe), the ESG Industry Top Rated distinction (Banking) for the 2nd consecutiv
Slide 73: Macroeconomic update
FY 2023 Results Macroeconomic update
Slide 74: Macro developments and outlook
Macro developments and outlook ▪ 2023 growth at 2.0% ; Forecast at 2.3% in 2024 and 20251, over-performing the Euro Area in all three years ▪ Inflation rate declined in 2023 on the back of decreasing energy prices; HICP inflation at 3.2% in Jan-24, from 7.3% in Jan-23 (2.8% and 8.6% respectively in
Slide 75: Domestic Labour Market
Domestic Labour Market The unemployment rate continues to decline, still the 2nd Employment remains on an upward trajectory highest in the Euro Area despite reported labor shortages contributing positively to households’ disposable income Long term unemployment decreases, yet it remains Recovery of
Slide 76: Selected indicators of domestic economic activity
Selected indicators of domestic economic activity ESI improves at the start of 2024; higher relative to the EA Operating conditions in manufacturing improve strongly at the beginning of 2024; higher relative to the EA Turnover increases in retail trade, however real volume drops Manufacturing produc
Slide 77: Real estate prices: strong growth continues
Real estate prices: strong growth continues Index of Apartment Prices Index of Retail and Office Prices 4Q10 – 4Q23 1H11 – 1H23 Source: BoG 77
Slide 78: Fiscal and current account balances
Fiscal and current account balances ▪ 2023 & 2024 GG primary balance expected at +1.1% & 2.1% of GDP according to 2024 Budget ▪ Current account deficit estimated at ca 6.4% of GDP in 2023, improved from 10.3% in 2022, on the back of energy prices fall and tourism record revenues; expected at –5.8% o
Slide 79: Sovereign debt profile
Sovereign debt profile General Government gross public debt (% of GDP, ESA terms) ▪ According to the 2024 Budget, the Greek GG Gross Public Debt is expected at 160.3% and 152.3% of GDP in 2023 and 2024 respectively vs 172.6% in 2022 and a peak of 207.0% in 2020 ▪ 75.0% of the debt stock is held by o
Slide 80: Bulgaria
Bulgaria ▪ Growth at 2.0% in 2023; 2024 real GDP growth is forecast at 2.2%; private consumption is expected to remain the key growth driver as strong labour market conditions and abating inflation support consumer confidence. Positive momentum of investment expected to extend into 2024 ▪ The annual
Slide 81: Cyprus
Cyprus ▪ FY2023 growth at +2.5%; European Commission (February 2024) foresees a real GDP growth rate of 2.8% for 2024, accelerating to 3.0% in 2025 ▪ 3Q23 growth based on GFCF (+8.5% y-o-y) and household consumption (+5.1% y-o-y), despite a spike in inflation in July-Aug; external balance deteriorat
Slide 82: Appendix I – Supplementary information
FY 2023 Results Appendix I – Supplementary information
Slide 83: Summary performance
Summary performance Balance sheet – key figures Income statement – key figures €m 4Q23 3Q23 €m 4Q23 3Q23 Gross customer loans 42,773 42,222 Net interest income 572.8 558.4 Provisions (1,258) (1,488) Commission income 140.8 133.1 Loans FVTPL 15 16 Operating income 769.0 703.2 Net customer loans 41,54
Slide 84: Consolidated quarterly financials – Income statement
Consolidated quarterly financials – Income statement (€ m) 4Q23 3Q23 2Q23 1Q23 4Q22 Net Interest Income 572.8 558.4 540.1 502.5 449.2 Commission income 140.8 133.1 140.6 129.3 142.4 Other Income 55.5 11.7 30.9 (12.2) 99.4 Operating Income 769.0 703.2 711.6 619.6 690.9 Operating Expenses (229.1) (229
Slide 85: Consolidated quarterly financials – Balance sheet
Consolidated quarterly financials – Balance sheet (€ m) 4Q23 3Q23 2Q23 1Q23 4Q22 Consumer Loans 3,436 3,429 3,355 2,803 2,752 Mortgages 9,942 10,009 10,033 10,015 10,039 Household Loans 13,377 13,438 13,388 12,818 12,791 Small Business Loans 3,484 3,580 3,701 3,716 3,720 Corporate Loans 21,481 20,73
Slide 86: Consolidated financials
Consolidated financials Income Statement (€ m) FY23 FY22 Δ y-o-y (%) Net Interest Income 2,173.7 1,479.7 46.9 Commission income 543.8 522.0 4.2 Other Income 85.9 714.1 (88.0) Operating Income 2,803.4 2,715.8 3.2 Operating Expenses (901.9) (856.9) 5.2 Pre-Provision Income 1,901.6 1,858.9 2.3 Loan Los
Slide 87: SEE operations key figures – 4Q23
SEE operations key figures – 4Q231 Bulgaria Cyprus Lux Sum Assets 9,832 8,625 2,644 21,101 Gross loans 6,697 2,763 836 10,296 Balance Sheet Net loans 6,509 2,711 836 10,056 (€m) NPE loans 168 69 0 237 Deposits 8,003 7,099 2,384 17,486 CAD2 19.0% 34.1% 24.3% Core Income 111.5 84.9 17.5 213.9 Operatin
Slide 88: Appendix II – Glossary
FY 2023 Results Appendix II – Glossary
Slide 89: 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 90: 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 excluding restructuring costs, goodwill impairment / gain on acquisition, gains/losses related to the transformation plan and
Slide 91: Glossary – Definition of Alternative Performance Measures
Glossary – Definition of Alternative Performance Measures (APMs) & other selected financial measures / ratios Fees/Assets: Calculated as the ratio of annualized Commission income divided by the average balance of continued operations’ total assets (the arithmetic average of total assets, excluding a
Slide 92: Glossary – Definition of Alternative Performance Measures
Glossary – Definition of Alternative Performance Measures (APMs) & other selected financial measures / ratios Non-performing exposures (NPEs): Non Performing Exposures (in compliance with EBA Guidelines) are the Group’s material exposures which are more than 90 days past-due or for which the debtor
Slide 93: Glossary – Definition of Alternative Performance Measures
Glossary – Definition of Alternative Performance Measures (APMs) & other selected financial measures / ratios Total Capital Adequacy ratio: Total regulatory capital as defined by Regulation (EU) No 575/2013 as in force, based on the transitional rules for the reported period, divided by total Risk W
Slide 94: 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, CFA +30 214 4058 833 cstylios@eurobankholdings.gr Investor Relations Division +30 214 4058 834 investor_relations@eurobankholdin
Eurobank Ergasias Services and Holdings — FY2023 Earnings Presentation on 6ix