- Pre-provision income up by 7.2% q-o-q at €216m.
- Operating expenses down by 5.6% q-o-q and 7.1% y-o-y. Cost to income ratio improved to 53.4%, the lowest level during the last 5 quarters.
- International operations turned profitable to €15m in 1Q2015.
- 90days past due loans coverage ratio at 55.6%.
- Cost of deposits declined by 28 basis points versus 4Q2014.
- Deposits down by €5.9bn in 1Q2015, March outflows substantially lower than January / February.
- Common Equity Tier Ratio at 14.2%.
- Bottom-line result at -€94m, from -€524m in 4Q2014.
“The first quarter of 2015 has been a difficult period for Greek banks. Prolonged uncertainty, tight liquidity and the resulting deterioration of the economic conditions weighed negatively on the macroeconomic and financial environment.
The positive prospect of an agreement between Greece and our European partners will provide the prerequisite for the normalization of the conditions in the economy and the financial markets and will facilitate, through the adoption of the necessary reforms, the rapid restart of the Greek economy and the economic growth process. Returning to normality and growth prospects constitutes the only reliable answer to reduce unemployment, tackle the excessive public debt issue, containing social imbalances and create positive prospects, expectations and opportunities for all.
The confirmation of our European prospects within a framework of a credible agreement with our European partners, that will combine economic and social priorities, will enable the gradual but accelerated normalization of the conditions in the Greek banking system, while it will release the Bank’s capability to support the real economy, businesses and households.
Eurobank, with its employees on the front line, is perfectly ready to play a constructive and leading role, with transparency, efficiency, service quality and reliability, by also showing understanding, flexibility and real support to borrowers who truly cannot meet their obligations. Particularly in these difficult circumstances, it is our daily priority to implement modern corporate governance and social responsibility principles, fully respect the society, our staff, our customers and shareholders, aiming at strengthening their trust towards our Bank and with all our forces to the recovery of the Greek economy.”
Nikolaos Karamouzis, Chairman of BoD
“Operating in an uncertain and fast-changing environment, we focused on addressing the challenges of the juncture and minimize their impact on the medium-term targets of Eurobank and its customers. The results vindicated our business planning and demonstrated the resilience of the Bank even in difficult conditions. The increase in pre-provision income, both quarterly and annually, is particularly important, especially taking into account the circumstances. Equally important is the return of Eurobank’s international activities into profits, for the first time since the first quarter 2013, a trend we expect to continue. Our consistent effort to reduce operating costs (7.1% yoy) has brought the cost-income ratio at low levels and has contributed to the final result, despite pressures on the revenue side coming from the increased dependence by the Eurosystem for liquidity.
The negative trends in a number of ratios, such as the deterioration in the loan-to-deposit ratio and the increase in loans past due overt 90 days, are attributable solely to the external environment that prevailed throughout the first quarter of 2015. These trends, however, receded in March compared to the beginning of the quarter. We are convinced that the negative developments can be reversed within a relatively short timeframe, upon the normalization of economic conditions, through an agreement with international partners which will ensure a long-term framework of stability for the Greek economy. Given the challenges of the external environment, the Bank and its employees are making every effort to support our customers, by extending credit, particularly towards the business sector, and by providing restructuring solutions to existing loans, in order to finance the real economy.”
Fokion Karavias, CEO