Eurobank Cyprus' 2023 profit after tax up 111%

Eurobank Cyprus wrapped 2023 with increased profitability, enhanced capital adequacy and very good loan portfolio quality, reporting a net profit after tax of €199.4m – 111% up from the year before.

More specifically for the year 2023, Eurobank Cyprus recorded a net profit after tax of €199.m, recording a €105.1m over the year before – that is a 111% increase compared with 2022. The profit before tax was €239.2m.

The bank said that by effectively managing operating costs and enhancing its operating profits, it further improved its Cost-to-Income ratio to 18% in 2023, from 29% in 2022.

Its Capital Adequacy and CET1 Ratios remained strong in 2023 at 34.1%, increasing by 680 basis points over 31 December 2022. “These indicators are significantly higher than the corresponding minimum supervisory thresholds for the year 2023,” the bank said.

The ratio of loans to deposits (excluding loans secured by deposits) reached 33.6%. Total deposits reached €7,099m, while total loans amounted to €2,844m against €2,730m in 2022.

“Despite inflationary pressures, increased energy costs and geopolitical developments in the previous months, the Bank's net credit expansion in 2023 amounted to €114 million, with the quality of the loan portfolio showing further improvement,” it said.

Eurobank Cyprus’ Non-Performing Exposures ratio (based on the EBA guidelines) remained particularly low at 2.4%.

Eurobank Cyprus CEO Michalis Louis said that 2023 closed on a positive note for the bank. “We have achieved increased profitability, enhances and stronger capital adequacy, and a historically low Non-Performing Exposures (NPE) ratio, thus forming a very good quality loan portfolio,” he stated. “Today, we are in the position to say that we have successfully managed the challenges that we had to face from high inflation, instability and uncertainly caused by the geopolitical environment, but also the need for a digital transformation and the green transition. We expect many of these challenges to carry through to 2024, both on a local as well as global level.”

Louis said Eurobank Cyprus’ 2023 results have once again shown the bank is healthy and on an upward trajectory, resilient and with a business model that works. “Our primary objective is to maintain our strong presence in the country’s economic and business scene, meet the growing needs of the economy and our clients, and contribute to the Cyprus economy’s growth.”

As for the year ahead, Louis said the bank will focus on continuing its technological infrastructure upgrade and digitalise more services, as part of a huge investment that is aimed at making the bank more approachable, fast and effective.

It also aims to step up the bank’s operations, increased its loan and deposits portfolios, and further advance its Wealth Management division – in which the Eurobank Group holds a leading regional position and consistently provides innovative services – that is addressed to Private Banking clients both from Cyprus and abroad.

“High on the Bank's priorities for 2024 is the strengthening of the culture of sustainable development, with an emphasis on ESG goals and criteria,” Louis said concluding. “Respect for the environment, contribution to society and good governance, through the adoption of practices that promote equality, transparency and sustainability, are high up in the pyramid of our pursuits.”