Fokion Karavias: Through Hellenic Bank, we also acquired an insurance firm – We are seeking further opportunities

Credit growth in 2024 will be very strong and is expected to continue in 2025 and 2026, according to Eurobank CEO Fokion Karavias, speaking at an event organised by Bloomberg.

He highlighted the energy sector as an example, noting it is one of the industries attracting the most investment in Greece, largely due to the boost provided by Greek banks to the market.

Discussing the growth prospects of Greek banks, he stressed the importance of managing and utilising surplus capital.

"The first way is by financing credit growth, which is already strong and expected to remain so in the coming years. The second is increasing the return rate to shareholders.

We have already announced that, instead of the initially projected 40% for 2025, we have upgraded the target to 50% based on 2024 financial results. We can fund acquisition and merger opportunities in banking, insurance, and asset management," Karavias stated.

"In Bulgaria, our second main market, we have completed three acquisitions in recent years, strengthening our position in the loan market. In Cyprus, we completed the acquisition of a majority stake in Hellenic Bank, the second-largest bank.

Through Hellenic Bank, we also acquired an insurance firm, and we are seeking further opportunities. We are a bank with approximately €100 billion in assets, 60% of which come from activities outside Greece, 27% from Cyprus, and 11% from Bulgaria," he added.

"The years 2023 and 2024 have been particularly strong for European banks in general and especially for Greek banks. At Eurobank, we have experienced significant progressive growth and notable activity in acquisitions and mergers (M&A).

We believe we can deliver a return of approximately 70.5% to our shareholders. So far, everything is going well. Our priority is to serve our customers and support the economy," he said.

Regarding the Recovery and Resilience Facility (RRF), Karavias stated that all banks have played a crucial role in this process.

"The loan segment represents about 50% of the total package and has positively impacted various sectors of the economy, particularly those related to the major transitions, digital and export investments, and more. So far, everything is progressing satisfactorily," he noted.

An interesting question concerns whether the expiration of the RRF in 2026 will impact the economy.

"I believe these investments will not stop in one or two years. On the contrary, their impact will be long-term and positive for the economy. Europe needs to create a new stabilisation mechanism, as suggested by the Draghi report, and I am optimistic that, in some way, there will be a new form of RRF for the European market," he added.

The Eurobank CEO emphasised the importance of more reforms, utilising fiscal space to provide investment incentives, and maintaining political stability, which is a significant advantage for the country.

On Artificial Intelligence (AI), Karavias noted that it is perhaps the most significant driver of change in our era and is expected to impact many different sectors of the economy. On sustainability, he stressed its necessity.

However, he concluded, Europe must not focus solely on sustainability but also ensure the competitiveness of its economy. This requires two pillars – sustainability and economic competitiveness.