Eurobank has reported strong profitability and expanding operations in Cyprus, among other core markets, in its annual financial report for 2025, published after the end of the financial year on December 31, 2025.

The report underlined the growing importance of Cyprus within Eurobank’s international strategy, highlighting the full integration of local operations and insurance activities as well as the complete takeover of Hellenic Bank during the year.

The directors presented their report together with the financial statements for the year ended December 31, 2025.

In December 2025, the merger by absorption of Eurobank Ergasias Services and Holdings S.A. by Eurobank S.A. was completed, making Eurobank S.A. the ultimate parent company of the group.

The bank and its subsidiaries operate across retail and corporate banking, asset management, private banking, treasury and capital markets, investment property and insurance services.

The group’s activities are mainly concentrated in Greece, Cyprus, Bulgaria and Luxembourg, while the bank is incorporated in Greece and its shares are listed on both the Athens Stock Exchange and the Cyprus Stock Exchange.

The bank reported that the macroeconomic environment in 2025 remained positive across the group’s three core markets of Greece, Cyprus and Bulgaria, despite global risks and volatility in the international environment.

Moreover, the bank expanded its business footprint during the year, including through the acquisition of CNP Cyprus Insurance, while maintaining solid profitability, strong capital adequacy, robust liquidity and high asset quality.

The group also continued to reward shareholders and support local economies and communities across its markets.

As at December 31, 2025, total group assets reached €108 billion, representing an increase of €6.8 billion compared with €101.2 billion recorded at the end of 2024.

Gross customer loans rose to €56bn compared with €52.3bn a year earlier, while investment securities increased to €24.9bn compared with €22.2bn at the end of 2024.

Of the total loan portfolio, €33.4bn originated from Greek operations, €18.6bn from international operations and €4bn represented notes from securitisations of loans originated by the group.

Business loans, including wholesale and small business lending, reached €34.3bn and accounted for 61 per cent of the group’s total loan book.

Loans to households reached €17.7bn, of which 73 per cent consisted of mortgage lending while the remainder represented consumer loans.

Additionally, group deposits stood at €82.7bn compared with €78.6bn in 2024.

Deposits from Greek operations reached €45.2bn while international operations contributed €37.5bn.

The group’s net loan to deposit ratio stood at 66.1 per cent, compared with 64.8 per cent in the previous year.

During 2025 the group also carried out a series of capital market transactions aimed at strengthening its capital structure and meeting regulatory requirements.

In January 2025 the company issued €0.6bn in subordinated Tier 2 notes, including €189 million issued through an exchange offer for outstanding Tier 2 notes of former Hellenic Bank.

In February 2025 the bank issued €350m of senior preferred notes through a private placement.

Later in the third quarter of 2025 the bank issued €700m of senior preferred notes, including an additional €200m through private placement.

In September 2025 the group proceeded with the early redemption of Tier 2 capital instruments worth €950m originally issued to the Hellenic Republic in 2018.

More recently, in January 2026 the bank issued a further €400m subordinated Tier II debt instrument.

At the same time Eurobank Holdings issued €500m and €600m fixed rate reset Additional Tier 1 perpetual contingent temporary write down notes in June and November 2025 respectively.

The Group Liquidity Coverage Ratio reached 172.2 per cent, while the bank’s own liquidity coverage ratio stood at 187.8 per cent.

Pre provision income reached €2.14bn during 2025.

Excluding a €58m gain from the acquisition of the former CNP Cyprus subgroup and a €27m estimated contribution to Greek state infrastructure projects, pre provision income amounted to €2.114bn.

Moreover, core pre provision income declined slightly by 1.9 per cent year on year to €2.03bn.

Net interest income increased by 1.7 per cent to €2.54bn, supported by loan growth and investment in bonds as well as the consolidation of Hellenic Bank from the third quarter of 2024.

Net interest margin stood at 2.48 per cent compared with 2.73 per cent in 2024, while fees and commissions increased by 15.7 per cent to €770m.

Banking fees and commissions rose by 12.5 per cent to €631m, supported by asset management, capital markets activity and card transactions.

Net insurance income increased to €44m, largely due to the consolidation of insurance entities linked to Hellenic Bank and the former CNP Cyprus group.

The report added that rental income from real estate properties amounted to €95m.

Operating expenses rose by 17.4 per cent to €1.25bn due to the consolidation of Hellenic Bank, higher staff costs, inflationary pressures and increased investment in information technology.

The group’s cost to income ratio reached 37.3 per cent, excluding the acquisition gain and infrastructure contribution.

Net income from trading and other activities reached €111m. This included €70m in gains from investment securities, a €28m loss from derivative financial instruments and €67m in other net income.

Other income included the €58m gain from the acquisition of CNP Cyprus Insurance Holdings, €34m in fair value gains from investment property and a €30m loss from the derecognition of certain loans measured at amortised cost.

The group also recorded a €26m claimed amount related to special defence contribution withheld in Cyprus by Hellenic Bank and a €10m buy back loss linked to Hellenic Bank Tier 2 notes.

The group’s non performing exposure formation remained positive at €147m.

Total non performing exposures stood at €1.4bn, resulting in an NPE ratio of 2.6 per cent compared with 2.9 per cent in 2024.

Loan provisions amounted to €308m, equivalent to 0.59 per cent of average net loans. The NPE coverage ratio improved significantly to 95.2 per cent.

Net NPEs declined to €69m compared with €177m a year earlier, while restructuring costs and other impairments during the year reached €97m.

These included €38m linked to voluntary exit schemes and €18m related to the corporate reorganisation and integration of operations in Cyprus.

The group also recorded a €13m loss associated with the sale of a former subsidiary previously presented as a discontinued operation.

Income from associates and joint ventures amounted to €47m. A special tax levy applicable to banking entities operating in Cyprus amounted to €35m during 2025.

The group also recognised a €17m current tax expense related to the Pillar Two global minimum tax applicable to profits generated in Bulgaria and Cyprus.

Overall net profit attributable to shareholders reached €1.36bn. The bank itself reported net profit of €675m compared with €669m in 2024.

At the same time, adjusted net profit, excluding restructuring costs and other specific items, amounted to €1.41bn.

International operations contributed €741m to adjusted net profit. Basic earnings per share reached €0.37 while return on tangible book value stood at 16 per cent.

The group’s total regulatory capital reached €10.4bn, corresponding to 19.5 per cent of risk weighted assets.

Common Equity Tier 1 capital stood at 15.2 per cent of risk weighted assets.

The bank’s minimum requirement for own funds and eligible liabilities ratio reached 29.39 per cent of risk weighted assets.

Eurobank also highlighted the completion of a major strategic step in Cyprus through the full acquisition of Hellenic Bank, which became wholly owned by the group in June 2025 after a squeeze out procedure.

The acquisition followed a mandatory takeover bid launched on March 11, 2025 offering €4.843 per share.

Following the transaction Eurobank’s stake reached 100 per cent of the bank’s share capital.

The group also strengthened its position in the Cypriot insurance sector through the acquisition of CNP Cyprus Insurance Holdings for €182m.

The company was subsequently renamed ERB Cyprus Insurance Holdings Limited.

In September 2025 all assets and liabilities of Eurobank Cyprus were transferred to Hellenic Bank under Cypriot banking legislation.

Hellenic Bank was subsequently renamed Eurobank Limited, while Eurobank Cyprus became ERB Cyprus Holdings.

On December 3, 2025 the merger process was completed and Eurobank S.A. became the sole shareholder of Eurobank Limited.

The group said the merger aimed to create a single strong and modern financial institution capable of offering upgraded banking and insurance services while supporting the development of the Cypriot economy.

The group also completed the merger of its Cypriot insurance companies in October 2025, consolidating life and general insurance operations.

Looking ahead, Eurobank said it will pursue its strategic objectives for 2026 to 2028 under its business plan.

These include maintaining sustainable returns on tangible book value of at least 16 per cent and reaching 17 per cent by 2028.

The group also plans to increase shareholder rewards with a payout ratio above 50 per cent over the coming years, subject to regulatory approval.

What is more, the bank said the outlook for its core markets remains positive.

It highlighted strong tourism performance and investment inflows in both Greece and Cyprus as well as the growing geopolitical and economic role of Cyprus in the wider region.

The group added that Cyprus is expected to play an enhanced role amid recent geopolitical developments in the eastern Mediterranean, supporting long term growth opportunities.

Eurobank also continues to implement its transformation strategy under the Eurobank 2030 transformation plan, focusing on digital banking, artificial intelligence, partnerships and new operating models designed to accelerate growth and improve efficiency.