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Hellenic Bank Reports €284 Million Net Profit By Q3 2024 Amid Strong Capital Growth

by THEFUTURE.TEAM

November 7, 2024

Hellenic Bank, Cyprus’ second-largest bank, announced a net profit of €284 million for the nine months ending September 2024, reflecting an annual increase of 28%. The bank attributes this growth to robust organic capital generation and a favourable interest rate environment, resulting in a capital ratio boost of nearly four percentage points. However, quarterly, the bank noted a slight decline in net interest income in the third quarter, affected by recent ECB rate cuts.

As Hellenic Bank’s first financial report as a subsidiary of the Greek Eurobank Group, CEO Michalis Louis stated that this transition marks “a new chapter” for the bank. He emphasized that, despite global challenges, the Hellenic Bank maintains a strong capital base and surplus liquidity, enabling it to support economic growth and meet the needs of both individual and business clients. Over the nine months, net interest income (NII) reached €455.6 million, a 20% increase year-on-year, although it remained stable at €151 million between the second and third quarters. Non-interest income also rose by 15% to €98.1 million.

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The bank’s capital ratios improved significantly, with the CET1 capital ratio reaching 26.7% and the total capital ratio standing at 32.51% as of September 2024. Total expenses rose by 11% year-on-year to €216 million, with staff costs comprising 46% of these expenses. The cost-to-income ratio decreased slightly to 38.9%, compared to 41.7% for the same period last year, reflecting the bank’s efforts to optimize costs.

New lending for the nine months dropped by 22% year-on-year to €705 million, mainly due to high interest rates that dampened loan demand. Total loans by the end of September stood at €6 billion, down from €6.16 billion the previous year. Non-performing exposures (NPEs), as per the European Banking Authority directive, were €404 million, representing 6.7% of total loans; excluding loans covered by the Asset Protection Scheme (APS), NPEs amounted to €100 million, or 2.6% of loans.

Customer deposits stood at €14.9 billion at the end of September 2024, compared to €15.3 billion at the end of 2023. The bank’s Liquidity Coverage Ratio remained robust at 583%, bolstered by €5.3 billion in Eurosystem placements that benefited from current interest rates. Total assets were €17.61 billion at the end of September, reflecting a decrease due to ECB refinancing repayments under the Targeted Long-Term Refinancing Operations program.

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Eurobank Approves €258.7M Dividend And €288M Share Buyback

by THEFUTURE.TEAM

April 29, 2026

Robust Dividend And Share Repurchase Initiatives

Eurobank S.A. shareholders approved a dividend distribution of €258.7 million at the annual general meeting held on April 28. The resolution was supported by approximately 77% of paid-up capital, representing more than 2.77 billion voting shares. The dividend will be paid from special reserves and remains subject to approval by the European Central Bank.

Strategic Share Buyback And Capital Optimization

In addition, shareholders approved a share buyback programme of up to €288 million over the next 12 months, pending regulatory clearance. The programme includes the cancellation of 28,097,019 own shares, which will reduce share capital by approximately €6.18 million. Following this adjustment, total share capital is set at €792,751,032.04, divided into around 3.6 billion ordinary voting shares with a nominal value of €0.22 each.

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Enhanced Executive And Employee Incentives

Alongside capital measures, the meeting addressed remuneration. Shareholders approved an allocation of €35.2 million from special reserves for employee compensation. A five-year programme was also introduced to distribute shares to eligible executives and employees of Eurobank and affiliated entities. In parallel, a revised variable remuneration framework allows selected senior executives to receive up to 200% of fixed pay.

Governance And Audit Oversight Reforms

Changes were also made at the board level. Alexandra Reich was appointed as an independent non-executive director, replacing Jawaid Mirza. Following this appointment, eight of the thirteen board members are classified as independent. Amendments to the articles of association introduce flexibility in board terms and allow partial renewals.

Strengthening Audit And Sustainability Commitments

On the audit side, KPMG Certified Auditors S.A. was appointed as the statutory auditor for 2026. The fee is set at €1.8 million for statutory audits of separate and consolidated financial statements, with an additional €0.3 million allocated for assurance of the sustainability statement. The meeting also approved the 2025 remuneration report and confirmed committee fee arrangements, alongside updates on audit committee activity and independent director reporting.