Eurobank Cyprus after-tax profits surge to €199.4 million in 2023

Eurobank Cyprus after-tax profits surge to €199.4 million in 2023

Eurobank Cyprus on Friday released its financial results for the year 2023, posting an after-tax profit of €199.4 million, reflecting a significant increase of 111 per cent over the previous year.

In addition, the bank’s results showed enhanced capital adequacy, as well as notable improvements in operational costs.

The positive outcomes affirm the bank’s resilient trajectory, effective management of challenges faced in 2023, and its substantial contribution to the growth of the Cypriot economy and entrepreneurship.

Eurobank Cyprus CEO Michalis Louis stated that “we have achieved increased profitability, stronger capital adequacy, and a historically low Non-Performing Loans (NPL) ratio, thus shaping a very high-quality loan portfolio”.

“Today, we can say that we have successfully managed the challenges we faced due to high inflation, instability, and the uncertainty caused by the geopolitical environment, as well as the need for both the digital transformation and green transition,” Louis explained.

“We anticipate that several of these challenges will persist in 2024, both at the local and international levels,” he added.

In more detail, Eurobank Cyprus reported net profits after taxes of €199.4 million, marking an impressive increase of €105.1 million, a rise of 111 per cent compared to the results of 2022. Additionally, pre-tax profits reached €239.2 million.

In terms of operational efficiency, the bank’s efficient management of operational costs, combined with improved operational profits, led to a further enhancement of the cost-to-income ratio, reducing it to 18 per cent in 2023 from 29 per cent in 2022.

Louis said that “the results of 2023 once again confirm the healthy and upward trajectory of the bank, its resilience, and the success of its business model”.

“Our primary goal is to maintain our strong presence in the economic and business life of the country, meet the increased needs of the economy and our clients, and contribute to the development of the Cypriot economy,” Louis stated.

“Continuous evolution, improvement, providing high-quality services, and personalisation are our fundamental pursuits, creating additional value for our customers,” he added.

Meanwhile, the bank’s Capital Adequacy Ratio and Common Equity Tier 1 (CET1) ratio remained strong, reaching 34.1 per cent in 2023, reflecting an increase of 680 basis points from December 31, 2022. These ratios significantly exceed the minimum regulatory requirements for 2023.

The loan-to-deposit ratio, excluding loans secured by deposits, stood at 33.6 per cent. Total deposits amounted to €7.09 billion, while total loans reached €2.84 billion, compared to €2.73 billion in 2022.

Furthermore, the results showed that despite inflationary pressures, increased energy costs, and geopolitical developments in previous months, the bank’s net credit expansion in 2023 reached €114 million, accompanied by a further improvement in the quality of the loan portfolio.

The bank’s Non-Performing Loans ratio, based on the European Banking Authority guidelines, remained low, standing at 2.4 per cent, underscoring the bank’s prudent risk management practices.

“In the current year, special emphasis will be placed on completing the upgrade of technological infrastructure and further digitising services through a significant ongoing investment, making the bank more accessible, faster, and efficient,” Louis stated.

Louis also expressed the bank’s focus on further bolstering its operations, growing the loan portfolio and deposits, and further developing its activities in wealth management.

“At the same time, we aim to further strengthen the bank’s operations, increase the loan portfolio and deposits, and pursue additional growth in the wealth management sector,” the bank’s CEO stated.

“In this domain, the Eurobank Group holds a leading regional position, providing consistently pioneering services to Private Banking clients both in Cyprus and internationally,” he added.

What is more, Louis said that “high on the bank’s priorities for 2024 is the reinforcement of a sustainable development culture, with an emphasis on Environmental, Social, and Governance (ESG) goals and criteria“.

Environmental stewardship, societal contribution, and responsible management, through the adoption of practices promoting equality, transparency, and sustainability, hold a prominent position in the pyramid of our aspirations,” the Eurobank Cyprus CEO concluded. Cyprus Mail

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