Citi has maintained its ‘buy’ recommendation for Eurobank and reaffirmed its target price of €5 per share, while slightly raising its profitability forecasts for the banking group ahead of its second-quarter results.

Citi’s latest research note, whose findings were shared by Greek business outlet Newmoney, points to improved earnings prospects driven by stronger interest income and continued momentum in lending and capital markets activity.

Based on Eurobank’s closing share price of €4.36 on July 24, 2026, Citi estimates an upside potential of 14.7 per cent.

When combined with an expected dividend yield of 4.8 per cent, the investment bank projects a total expected return of 19.5 per cent.

Citi has increased its forecast for underlying earnings per share by 2 per cent for 2026 and 1 per cent for 2027, while leaving its estimates for 2028 unchanged.

The revisions reflect expectations of stronger net interest income, supported by higher interest rates, as well as slightly improved projections for fee income amid continued strength in capital markets activity.

Ahead of Eurobank’s second-quarter earnings announcement, scheduled for July 30, 2026, Citi expects the bank to report underlying net profit of €377 million, before minority interests and the cost of AT1 coupon payments.

That figure would represent an increase of 8 per cent compared with the previous quarter and 4 per cent compared with the same period last year.

Reported net profit after minority interests, but before the cost of AT1 instruments, is forecast at €374 million, marking a 13 per cent quarterly increase but a 1 per cent decline on an annual basis.

Citi also expects return on tangible equity to improve to 15.7 per cent, up from 14 per cent in the first quarter.

The improvement is expected to be driven primarily by stronger revenues, with net interest income forecast to rise by 2 per cent to €674 million.

Net fee income is projected to reach €219 million, representing a quarterly increase of 8 per cent.

According to the report, the higher fee income is expected to be supported by increased loan production and robust activity in capital markets.

By contrast, trading and other income is forecast to decline to €8 million, compared with €11 million in the first quarter.

On costs, Citi expects operating expenses to remain stable at €330 million.

Provisions for credit losses are forecast to increase by 3 per cent to €79 million.

The report also includes an exceptional charge of €3 million, linked to provisions for restructured mortgage loans under Greece’s Katseli law, following a recent ruling by the country’s Supreme Court.

On the balance sheet, Citi expects gross loans to increase by 2 per cent on a quarterly basis, while deposits are forecast to grow by 1 per cent over the same period.

The bank’s Common Equity Tier 1 (CET1) ratio is expected to remain unchanged at 15.4 per cent.

Looking ahead to the full year, Citi forecasts adjusted net profit of €1.48 billion for 2026, alongside a dividend of €0.21 per share.

For 2027, the investment bank expects adjusted net profit to increase further to €1.65 billion, with the dividend rising to €0.24 per share.