Eurobank Cyprus posts €105.7 million profit in first half of 2024
Eurobank Cyprus generated a net profit after tax of €105.7 million in the first half of 2024, according to the bank’s financial results released on Friday.
Specifically, the bank’s financial results for the period show solid capital adequacy and liquidity, an improved cost-to-income ratio, and increased profitability.
The bank’s net profit marks a €14.9 million rise over the same period in 2023, corresponding to a 16 per cent year-on-year increase.
“The first half of 2024 ended with a positive outlook, which allows the bank to continue to support entrepreneurship, sustainable investments and its individual clients,” said Michalis Louis, Eurobank Cyprus’ Chief Executive Officer.
“At Eurobank Cyprus, our key priority is to continue to evolve and provide high-quality specialised services to our customers, through a customer-centric approach, which has always been a core element of our modus operandi and differentiates us from the competition,” he added.
He explained that “within this framework, we proceeded, in June 2024, to reward our up-to-date mortgage customers by reducing the final interest rate on their home mortgage by 50 basis points, through the one-year plan we announced last year”.
“At the same time”, Louis continued, “by completing the bank’s three-year digital transformation programme, we have now replaced 85 per cent of our technology infrastructure in core banking, digital channels, data warehouse and wealth management with new innovative solutions”.
“This further enriched our customer-centric model with the addition of distinguished services, enriched solutions and innovative products that stand out for the flexibility and security they offer, while reducing our environmental footprint,” he added.
The Eurobank Cyprus CEO also said that the introduction of the new digital platform also contributed to the upgrading of the bank’s private banking activities, with the creation of the ‘wealth portal’, which offers a wider range of services for customers’ wealth management.
“Eurobank Cyprus has always distinguished itself for providing integrated and innovative services in the Private Banking sector, while leveraging the group’s unified network with a presence in Cyprus, Greece, Luxemburg and the UK,” he stated.
Meanwhile, the bank said that effective management of operating costs, coupled with higher operating profit, led to a further improvement in the bank’s cost-to-income ratio, which decreased from 19 per cent in the first half of 2023 to 17 per cent in the first half of 2024.
Eurobank Cyprus also strengthened its Capital Adequacy and Common Equity Tier 1 (CET1) ratios, which improved to 36 per cent during the first half of 2024, up by 190 basis points compared to December 31 2023.
Additionally, it should be noted that these ratios remain significantly above the minimum regulatory requirements set for 2024.
Furthermore, the loans-to-deposits ratio, excluding loans secured by deposits, rose to 32.8 per cent, with total deposits reaching €7.47 billion, an increase of €371 million since the beginning of the year.
“We are also closely following developments in respect of the economy and the management of public finances, and we would like to encourage the government to continue to prudentially manage the country’s public finances, while remaining committed to achieving a fiscal surplus, a significant reduction of public debt and continue to strive for an upgrade of Cyprus’ credit rating,” Louis stated.
“The positive outlook created in the past few years must be maintained and further strengthened in the time ahead,” he added.
“Any decisions must be very well considered since the current circumstances, both at the international and domestic level, do not allow for any complacency,” the Eurobank CEO concluded.