It is expected that at the beginning of the second half of the year it will be presented Eurobank a formal offer to the Financial Stability Fund to purchase shares held by the Fund at a price that will be below the book value. The offer will concern 52,080,673 shares held by the Fund, which corresponds to 1.40% of the share capital of Eurobank, and, as the CEO of Eurobank said yesterday, Fokion Karavia“The bank will allocate for 2023 the amount that was budgeted for the distribution of dividends, which will be used to the best advantage by submitting an offer to acquire the share held by HFSF in the bank.”

Speaking at an analyst briefing on the 2022 full-year results, Mr. Caravias emphasized that “shareholder compensation is now at the heart of the group’s strategy,” and as he stated, “Over the next year and beyond, we aim to distribute at least 25% annual profit. , in the form of dividends or repurchases of own shares.

The managing director of the group explained that the offer to buy the shares held by HFSF had been extensively discussed with SSM and management had received a positive response. Formal approval by the supervisory authority, according to the schedule described by Mr. Caravias, is expected within the next two months, so after approval by the general meeting, a formal proposal will be submitted in the second half of the year. It should be noted that yesterday the share price of Eurobank was set at 1.373 euros, while the book value as of the end of the year was set at 1.70.

For the second half of the year, the leadership of the Eurobank determined the restoration of the investment level of our country, assessing the progress of the economy and the banking system, which, according to him, has significantly improved its capital position and the non-financing index. – operating credits credits. Of note, Eurobank’s capital adequacy strengthened significantly in 2022, exceeding initial expectations, as the CET1 ratio increased by 230 basis points compared to 2021 to 16%, while the overall capital adequacy ratio (CAD) increased by 290 basis points to 19%. . The CET1 ratio with full implementation of Basel III increased by 250 basis points compared to 2021 to 15.2% and, in the opinion of management, creates “comfort” for the implementation of strategic expansion in the three main markets in which the group operates (Greece, Bulgaria) . , Cyprus) in the context of acquisitions is considered if, as specified, “opportunities exist”.

Next year and beyond, he plans to distribute at least 25% of annual profits through dividends or share buybacks.

It should be noted that in 2022, the group’s organic profit before provisions increased by 30.6% to EUR 1.2 billion and was higher than expected due to higher interest and commission income.

Total profit before provisions was EUR 1.9 billion from EUR 1 billion in 2021, bad debt provisions decreased from EUR 418 million in 2021 to EUR 291 million in 2022, resulting in an increase in organic operating income before tax of 83. 5% year on year up to 885 million euros.

Adjusted profit before tax was €1.5 billion and adjusted net income was €1.2 billion in 2022. Total net income was €1.3 billion, compared to €328 million in 2021, and includes €231 million from an additional transaction to accept payment transactions and separate transaction settlement.

Overseas operations were profitable, with adjusted net income of 224 million in 2022 from 148 million in 2021. As a result, earnings per share increased from 0.11 in 2021 to 0.18, while the return on tangible capital increased to 11.4% in 2022 from 8.2%. in 2021. The business plan for 2023-2025 provides for €1.1-1.2 billion in organic operating income, a return on equity of 13% this year and 12% by 2025, and an overall capital adequacy of 19% -20%.

The quality of the loan portfolio continued to improve, and the share of non-performing loans decreased to 5.2% in 2022 with the aim of stabilizing at this level in 2023 and reducing to 4.5% by 2025. 3.3 billion in 2022 ( 66% of the increase came from Greece and 34% from abroad) against initial expectations of 2.3 billion euros, and the forecast for 2023 is an increase in funding of 2.8 billion euros, with a focus mainly on business credit.