Athens-based systemic lender Eurobank reported net earnings of 38.3 euros in Q4 2016, capping off a profitable year, although the figure fell from the previous quarter’s 85 million euros.
On an annual basis, the third largest Greek credit institution posted net profits of 230.1 million euros, a dramatic turnaround from 2015, when Eurobank listed 1.18 billion euros in loses.
A statement by Eurobank CEO Fokion Karavias reads:
“In our 2016 results, we report the first profitable and capital accretive year for Eurobank since the eruption of the Greek sovereign crisis, with net profit of €230 million. Return to profitability was our absolute priority and we are delighted to have been able to deliver last year on all our strategic targets.
The increase of the core pre -provision income by more than 25%, along with the increase in deposits by more than €2.5 bn and the decrease of ELA liquidity by €8.1bn year -on-year confirm that Eurobank has a robust business, an effective operating model and a solid client basis that can perform even in a challenging environment, when circumstances are not completely forbidding. The fourth quarter of 2016 was the first of negative NPE formation. Furthermore, as part of our NPE reduction plan, a €150m corporate loan was disposed.
Overall, asset quality improvement accelerated in the second half of 2016. International activities continue to bear positively to our results. We expect this trend to sustain as regional economies are forecast to remain on a path of growth over the medium term.
In 2017 our main goal is to remain profitable, despite the downturn in the economic climate and a relapse of uncertainties that negatively affect economic activity, and strengthen further our capital basis with organic capital generation. Above all, we are focusing on the challenge of reducing the NPE stock to the levels agreed with the regulators. We are shifting resources; we are investing all the time and effort necessary; and, therefore, we have no doubt that the results will be fully in line with our commitments. It is obvious that a swift conclusion of the second program review will not only secure the above objectives but it would also unleash the significant growth potential of the Greek economy.”
