Eurobank: Full Year 2014 Results

  • Core pre-provision income up by 9.8% in the fourth quarter and 48.8% in 2014.
  • 90dpd loans coverage ratio expanded by 270 basis points to 56.3%.
  • 90dpd formation maintained at the third quarter low levels.
  • Gross loans up by €164m q-o-q for the first time after a period of deleveraging.
  • Deposits declined by €1.8bn q-o-q and Eurosystem funding rose to €12.5bn at the end of December.
  • Loans to deposits ratio at 103.1% and phased-in Common Equity Tier I ratio (CET1) at 15.2%.
  • Bottom-line result -€524m in the fourth quarter, which includes €218m of goodwill impairment and other non-recurring items.
“The macroeconomic and financial environment in Greece remains particularly challenging and uncertain. Despite the challenges, Eurobank maintains its main objective, under the “Commitments” undertaken in 2015, to support its customers and the Greek economy, placing emphasis on efficient and flexible management of non-performing loans and respecting the needs and abilities (capacity) of our customers, to finance competitive enterprises, households, innovative and extrovert business plans and implement modern corporate governance principles.

Our priority is to preserve the capital strength of the Bank, to ensure sufficient liquidity for the Group and support our customers. The required establishment of a newly balanced relationship framework agreement between Greece and its European partners on the basis of a comprehensive plan and the restoration of the markets, customers and the society’s confidence in the prospects of the country, will lead to a rapid normalization of market and economic conditions and will attract investments and capital, which are prerequisites for the Greek economy’s restart. In such a prospect, Eurobank, relying on the trust of its shareholders, employees and customers, is prepared to lead the developments and contribute decisively to the final return of the Greek economy to a sustainable growth trajectory.”

 Nikolaos Karamouzis, Chairman of BoD

“The improvement in the Bank’s core operating results continued, despite the gradual deterioration of the economic climate. We execute our business planning consistently adapting to changing conditions. We strengthened further the balance sheet, keeping provisions at elevated levels, increasing coverage of bad debts above 56% and aligning the stock of provisions with the Comprehensive Assessment carried out by the supervising authorities. The reduction in operating costs outperformed the targets, and exceeded 10% on an annual basis. The fourth quarter 2014 was the first quarter of positive credit expansion for the Group, after quite a long time. Despite the deterioration in liquidity conditions since year-end, with deposit outflows being subsiding after the end of February 2015, it is important that the downward trend in the cost of deposits did not reverse. We remain committed to our goal of returning the Bank to profitability in 2015 albeit acknowledging that the normalization of the macroeconomic and financial environment, as well as its pace, will be critical. Our priority is to address the liquidity pressures in the Greek banking system, the challenges associated with the formation of new NPLs, maintaining a strong capital base and ensuring our ability to finance our customers and the Greek economy.”
Fokion Karavias, CEO



<BACK