Following Bank of Cyprus and Hellenic Bank, Eurobank reported its profits.
According to the largest financial institution in Cyprus, its net profit after all taxes in 2023 amounted to 199.4 million euros, which is 105.1 million euros or 111% more than in 2022. At the same time, profit before tax reached €239.2 million.
The effective management of operating expenses combined with the increase in operating profit led to a further improvement in the cost-to-income ratio to 18% in 2023 from 29% in 2022. The capital adequacy ratio as well as the common equity ratio (CET1) remained strong, reaching 34.1% in 2023, an increase of 680 basis points compared to 2022.
The loan-to-deposit ratio (excluding deposit-backed loans) was 33.6%. Total deposits reached €7.099 million and total loans amounted to €2.844 million, up from €2.73 million in 2022.
Despite inflationary pressures, rising energy prices and geopolitical events in previous months, Eurobank's net loan growth in 2023 amounted to €114 million. The bank said that at the same time, the quality of the loan portfolio continues to improve. The NPL ratio (NPE ratio based on European Banking Authority guidelines, ETA) reached 2.4%, remaining particularly low.
Financial results for 2023 were very good. We achieved improved profitability and strengthened capital adequacy, a record low level of non-performing loans (NPLs), thus building an excellent loan portfolio. Today, we can say that we have successfully navigated the challenges we faced due to high inflation, volatility and uncertainty caused by the geopolitical environment, as well as the need for digital transformation and green transition. The 2023 results further confirm the bank's healthy and upward trajectory, resilience and successful business model. Our main objective is to maintain a presence in the economic and business life of the country, to respond to the growing needs of our customers and to contribute to the development of the Cypriot economy," said Michalis Luis, CEO of Eurobank in Cyprus.
He also mentioned that in 2024, Eurobank will put special emphasis on completing the modernization of the technological infrastructure and further digitization of the services provided through major investments. One of Eurobank's priorities in 2024 is to strengthen the culture of sustainability.
Respect for the environment, contribution to society and good governance through practices that promote equality, transparency and sustainability dominate the pyramid of our aspirations," Luis concluded.