Eurobank assets reach €112.90bn after strong first half of the year

Eurobank on Friday reported €738 million in net profit for the first half of 2026, with its Cyprus operations contributing €231 million as the group raised its full-year outlook following stronger-than-expected performance.

Adjusted net profit reached €776m, up 9.2 per cent year on year, while earnings per share stood at €0.20 and return on tangible book value reached 16.6 per cent.

Eurobank CEO Fokion Karavias said the group continued to deliver strong results despite ongoing geopolitical uncertainty and renewed tensions in the Middle East.

“Despite persistent geopolitical uncertainty and renewed tensions in the Middle East, the economies of our core markets have remained on a solid growth trajectory,” Karavias said.

He added that the Greek economy had remained resilient, supported by investment activity, tourism and continued expansion in business lending.

“In Cyprus and Bulgaria, economic sentiment and growth remain also robust,” Karavias said.

The bank’s non-Greek operations, which include Cyprus and Bulgaria, generated €361m in adjusted net profit, accounting for 46.5 per cent of group profitability.

The Cyprus operation recorded adjusted net profit of €231m, down 7.7 per cent compared with the first half of 2025, while Bulgaria’s adjusted net profit increased by 7.8 per cent to €119m.

Karavias said Eurobank continued to support economic growth through lending expansion across its markets.

“Our loan book expanded by 10 per cent annually in the first half and by €1.6 billion in the second quarter, while managed funds increased by €2.5 billion on a yearly basis,” he said.

Overall, organic loan growth reached €2.70bn in the first half of 2026, representing a 10.5 per cent annual increase.

Loans grew by €1.40bn in Greece and €1.30bn across the group’s international operations, including Cyprus and Bulgaria.

Total gross loans stood at €58.10bn at the end of June 2026, including €38.10bn in Greece, €9.20bn in Cyprus and €9.80bn in Bulgaria.

At group level, business loans accounted for €36.30bn, mortgages for €13bn and consumer loans for €5.10bn.

Customer deposits increased by €2.90bn during the first half of the year, rising 9.6 per cent annually to reach €86.40bn.

Deposits in Cyprus amounted to €24.10bn, while Greece accounted for €48.10bn and Bulgaria for €11.60bn.

Managed funds increased by 29.2 per cent year on year to €11bn, while private banking client assets and liabilities rose by 10.2 per cent to €14.90bn.

Eurobank’s total assets reached €112.90bn at the end of June 2026, including €66bn in Greece, €29.30bn in Cyprus and €14.60bn in Bulgaria.

The group’s financial performance was supported by higher income from lending, wealth management and insurance activities.

Net interest income increased by 6.1 per cent year on year to €1.35bn, although net interest margin declined slightly by five basis points to 2.46 per cent due mainly to lower European Central Bank (ECB) interest rates.

Net fee and commission income rose 13.5 per cent to €414m, driven mainly by higher lending fees, wealth management activity and insurance operations.

Core income increased by 7.8 per cent to €1.76bn, while total operating income rose 9 per cent to €1.81bn.

Operating expenses increased by 7.8 per cent to €662m, with the cost-to-income ratio reaching 36.6 per cent.

Core operating profit before tax increased by 10 per cent to €952m, while loan loss provisions declined by 4.9 per cent to €148m.

The bank reported a non-performing exposure ratio of 2.5 per cent at June 30, 2026, while provisions covering non-performing exposures stood at 82.4 per cent.

Eurobank’s capital position remained strong, with total capital adequacy and Common Equity Tier 1 ratios reaching 20.3 per cent and 15.4 per cent respectively.

Tangible book value per share rose by 8 per cent annually to €2.57, the figures showed.

Karavias said the group’s stronger-than-expected performance had increased confidence that it would exceed its full-year targets.

“Overall, the second quarter results demonstrate solid organic growth at an even faster pace than previously, both in Greece and across the region,” he said.

“Despite ongoing geopolitical risks and economic uncertainty, the strength of the underlying trends gives us confidence that we will exceed our full-year targets.”

Eurobank now expects 2026 earnings per share growth of well above 10 per cent, resulting in a return on tangible book value of close to 17 per cent, compared with previous guidance of 16 per cent.

The bank’s economic outlook showed that Cyprus continued to demonstrate resilience despite weaker growth expectations linked to wider regional uncertainty.

Eurobank said Cyprus GDP growth slowed to 3 per cent in the first quarter of 2026, from 4.3 per cent in the final quarter of 2025.

The European Commission has projected Cyprus growth of 2.3 per cent in 2026 and 2.7 per cent in 2027.

Inflation in Cyprus reached 4.1 per cent in June 2026, up from 0.9 per cent in February, mainly due to higher energy prices and food inflation.

Eurobank said energy inflation rose by 13.6 per cent in June, compared with a decline of 8.8 per cent in February.

The European Commission expects average inflation in Cyprus to reach 3.6 per cent in 2026 before easing to 2.2 per cent in 2027.

The bank also highlighted the continued strength of Cyprus’ property market, with real estate activity increasing by 27.2 per cent in June and 14.6 per cent during the first half of 2026.

Demand during the first half was driven mainly by foreign buyers, which increased by 22.5 per cent, compared with a 9.6 per cent rise in domestic demand.

Eurobank said tourist arrivals declined in March and April but stabilised in May and June, pointing towards a recovery during the peak summer season.

Karavias also highlighted the broader resilience of Eurobank’s main markets despite geopolitical pressures.

“The strength of the underlying trends gives us confidence that we will exceed our full-year targets,” the Eurobank CEO stated.