The organic profit of Eurobank grew by 60.8% in the nine months, giving a boost to the net profit which stood at 298 million euros. Of these, 103 million euros were made in the third quarter.
The international activities continue to contribute more than 30% to the profitability of the Group, as the net profit of the foreign subsidiaries was 111 million euros.
According to the results for the nine months January-September 2021, the red loan ratio was single-digit, at 7.3%, as already announced by the Bank 7;s management, with the latest securitization of loans in Mexico.
New lending in Greece amounted to € 5.3 billion in the nine months and € 1.9 billion in the DG quarter of 2021. Total loan balances (prior to forecast) amounted to € 39.8 billion at the end September 2021, including business loans equal to 5.1 Loans to businesses amounted to 21.6 billion, mortgages to 10 billion and consumer loans to 3.1 billion.
Overseas operations were profitable with adjusted net profits reaching 111 million in nine months and 37 million in the third quarter of this year. Organizational earnings before provisions increased 5.9% to 192 million, with organic operating income up 16.8% yoy to 137 million.
Following the signing of an agreement with doValue for the sale of part of the mezzanine and junior securities of the Mexico securitization, impaired loans rose to 7.3% at the end of the year 4. DG quarter and was the lowest among the Greek banks. Total non-performing loans fell 3.2 billion yoy to 2.9 billion at the end of September. The formation of new impaired exposures was negative by 26 million in the DG 2021 quarter. The coverage of NPEs by accumulated provisions increased to 72.8%. The completion of the operation in Mexico and the deconsolidation of the loans are expected to take place in the fourth quarter of 2021.
As stated by Eurobank CEO Mr. Fokion Karavias“Eurobank’s financial results for the third quarter of 2021 are a milestone for the Bank and for the Greek banking system as a whole. The NRE index stands at 7.3%. It is the first time in the last decade that a Greek bank reaches a figure Having successfully addressed the latest challenges, we are focusing our efforts on expanding our work, thus supporting the achievement of the key objectives of economic policy – the transition to a new model of sustainability and inclusive. Greek economy is expected to grow by more than 7% this year and to maintain high rates in 2022. It is important and realistic at the same time to achieve an average growth rate higher than that of the euro area, the Greek economy, by 4%, for next five years, with the full use of European resources advantages and attracting international and domestic private investment capital. During the third quarter of this year, the Bank continued or to record excellent performances at all levels, exceeding our initial estimates. Basic income before provisions increased and in combination with the significant decrease in provisions led to an increase in operating profit of 61%. The net profit was 300 million euros. the first nine months of the year, with a significant contribution from our international activities. Loan disbursements of € 5.3 billion in Greece for the same period show growth momentum, which is expected to strengthen. Private sector deposits increased by around 4 billion in 2021. Households and businesses have significant liquidity reserves capable of supporting consumption and investment in the near future. Eurobank is the first Greek bank to leave the problem of non-performing loans behind. We are therefore well placed to make the most of the growth prospects of the Greek economy and the positive economic environment in all of our key markets. “We support our customers to take advantage of the upward trend and the companies we serve to achieve sustainable and balanced prosperity.”
According to the data presented by Eurobank to analysts:
– Net interest income decreased 2% in the first nine months of 2021 to 1 billion, mainly due to the deconsolidation of the Cairo transaction loans. Net interest income fell to 1.90% in the first nine months of 2021, from 2.05% in the corresponding period last year.
– Net commissions increased by 18.4% on an annual basis in the first nine months of 2021 and amounted to 326 million, mainly due to revenues from the operation of the Network, rents and loans. A significant increase of 6.1% was presented in net fees from the NW quarter of 2021 to 117 million and corresponded to 65 basis points of total assets in the DG quarter of 2021.
– The increase in commission income exceeded the decrease in interest income, with the result that organic revenues increased by 2.3% to 1.3 billion in the first nine months of 2021. Other revenues amounted to 66 million in the nine months of 2021, compared to 251 million in the corresponding period of 2020. As a result, total revenues amounted to 1.4 billion in the period January-September 2021, down 10% on an annual basis.
– Operating costs remained at the levels of the last nine months in Greece, while they increased by 0.5% at Group level and amounted to 650 million in the first nine months of 2021. The cost-income ratio remained constantly below below 50% to 46.8%.
– Organic profit before provisions increased by 4.1% on an annual basis and by 0.8% on a quarterly basis.
– Total earnings before provisions decreased by 17.6% in the first nine months of 2021 and by 3.9% in the DG quarter due to other lower revenues.
– Customer deposits increased by 3.8 billion in the first nine months of 2021 and by 1.4 billion in the third quarter compared to the second quarter of the same year. Savings and liquid deposits stood at 37.5 billion and term deposits and others at 13.6 billion. The loan / deposit ratio further improved to 73.8%, from 75.4% in the second quarter of 2021. Also the liquidity coverage ratio improved to 168.2% in the DG quarter of 2021, from 166.4% in the BD quarter of the current year.
– The bad debt provision amounts to 318 million in the first nine months of 2021 and corresponds to 113 basis points on average loans.
– The organic operating profit was 357 million in the January-September period, recording an increase of 60.8% compared to the same period last year.
– CET1 and Total capital adequacy ratio (CAD) stood at 13.3% and 15.7% at the end of September 2021, against minimum regulatory thresholds (TSCR) of 6.2% and 11% respectively . The CET1 index with the full implementation of Basel III increased by 20 basis points compared to DG 2021 to 12.3%
– Weighted assets totaled 40.6 billion in the nine months of 2021.