Eurobank posted a net profit of €721 million in the first half of the year, with the bank upwardly revising its targets for the full year. 

The bank said that adjusted net profit increased by 22.2% year-on-year to €732m in H1 2024, while total net profit was €721m, including a €99m gain from the acquisition of an additional stake in Hellenic Bank of Cyprus (negative goodwill) and €101m of costs from the voluntary departure of employees in Greece. Earnings per share and return on tangible equity were €0.20 and 18.5%, respectively. 

Net interest income increased by 8.6% compared to H1 2023 and amounted to €1,132 million, mainly due to income from loans, bonds and foreign operations. The net interest margin improved year-on-year by 20 basis points to 2.83%.

Net fee and commission income strengthened by 4.7% year-on-year in H1 2024 to €283 million, mainly driven by income from Network and Asset Management operations, which represent 71 basis points of total assets.

As a result of the above, organic revenue increased by 7.8% year-on-year to €1,415 million. Total revenues increased by 9.7% compared to H1 2023 to €1,460 million.   

Operating expenses declined in Greece by 1.2% year-on-year, while Group-wide operating expenses increased by 3.1% to €457 million due to international activities. However, on a comparable basis (excluding BNP Bulgaria), they remained unchanged. Both the cost-to-organic revenue ratio and the cost-to-total revenue ratio improved further to 32.3% and 31.3%, respectively, in H1 2024. 

Organic profit before provisions increased by 10.2% year-on-year to €958 million, while total profit before provisions improved by 13.0% compared to H1 2023 to €1,003 million. 

Provisions for bad debts decreased by 12.6% compared to H1 2023 to €144 million, representing 69 basis points on average loans. 

As a result of the above, organic operating profit before tax increased by 15.5% year-on-year in H1 2024 to €814 million. 

International operations were profitable, with adjusted net profit up 35.5% year-on-year to €277 million and contributing 37.8% to the Group's overall profitability. Organic profit before provisions increased by 25.3% to €292 million, and organic operating profit before tax increased by 27.6% to €264 million in H1 2024. Operating performance in both Cyprus and Bulgaria significantly strengthened, with adjusted net profit of €176 million and €100 million, respectively, in H1 2024.

The non-performing exposures (NPEs) ratio declined by 2.1 percentage points year-on-year to 3.1%3. The formation of new NPEs was positive by €125 million in H1 2024. The coverage of NPEs by cumulative provisions strengthened by 20 percentage points year-on-year to 93.2%.