Eurobank: Fourth Quarter 2015 Trading Update

  • Core pre-provision income at €188m2 in 4Q2015, compared to €166m in 3Q2015.
  • Net interest income up 4.3% q-o-q to €375m.
  • Fee and commission income recovers to €62m in 4Q2015, from €48m in 3Q2015.
  • Operating expenses down 5.8%2 y-o-y in 2015.
  • 90dpd coverage at 64.8%.
  • Deposits up €1.4bn q-o-q. Eurosystem funding off-peak by €9.0bn at €24.3bn.
  • Common Equity Tier Ratio at 17.0%, following the €2.0bn share capital increase.
  • Remarkable turnaround of international operations, net recurring income rises to €67m in 2015, against losses of €182m in 2014.
  • Bottom-line result for the Group at -€175m in 4Q2015 and -€1.2bn in 2015.

“Despite the successful recapitalization of the banking system, economic conditions in Greece remain challenging, as the global downturn weighs in. The prolonged negotiations on the first review of the current economic program and the major refugee crisis add to uncertainty and undermine the efforts to restore faith in the prospects of the Greek economy. Tackling both issues swiftly, in cooperation with our European partners, can prove a turning point for restoring stability, enhancing liquidity and attracting foreign capital, which is necessary to cover a sizeable gap in local savings and investment, awaiting the start of the discussions for a further debt relief agreement. If these conditions are met, the Greek economy has the potential to return to growth in 2016, after six long years and to start creating new jobs, a prerequisite for social and economic recovery. It is of vital importance to immediately kickstart this positive chain of events, as economic and geopolitical headwinds gather pace and risk an immediate impact on the economy. With a spirit of cooperation in the face of national challenges and with converging political support on a common strategy to exit the crisis, the current year can well witness the beginning of a virtuous circle for the Greek economy.” 

Nikolaos Karamouzis, Chairman of BoD

“Eurobank’s performance in adverse conditions confirms our strategic planning, which we execute at an accelerating pace. The improvement in net interest income, the recovery of commissions and the increase in deposits in the fourth quarter 2015 stand out as the most positive elements of our results. Operating expenses were down by 5.8% in FY2015 on a like-for-like basis. The robust increase in deposits at a Bank and Group level enhanced our liquidity position and contributed to the notable reduction in eurosystem funding exposure and to a further decrease in our funding cost. International operations registered a remarkable turnaround and were profitable on an annual basis for the first time since 2011. This performance shows the prospects and the substantial contribution they may have to our results. For 2016, our main priorities remain the active management of NPLs, taking advantage of our internal infrastructure and the important legislative changes that have taken place, aiming to substantially reduce their stock in due course, the return of deposits, the financing of new healthy business oriented projects and further cost control. Despite the existence of capital controls in Greece and most importantly the delay in the conclusion of the program review, which act as a halt to economic expansion and business activity, our primary target is the Bank to return to profitability in the current year, through further expansion of pre-provision income, substantial reduction in credit provisions and strengthening of our international business profits.” 

Fokion Karavias, CEO


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