Eurobank to Raise Dividend Payout Above 50% in 2025, Eyes Further Expansion in Bulgaria
The move reflects the bank’s confidence in its performance and future growth prospects and comes in tandem with the distribution of an interim dividend of €170 million, or 4.7 cents per share.
Despite facing some pressure on the bottom line, Eurobank reported solid results for the first half of the year. Adjusted net profit came in at €711 million, marking a 2.9% decline compared to the same period in 2024. Total net profit fell by 4.3% to €691 million, impacted by a €27 million cost related to a voluntary exit scheme at Hellenic Bank and a €38 million negative goodwill charge stemming from its acquisition of CNP Cyprus Insurance.
Group CEO Fokion Karavias noted that profitability remains on track with expectations, emphasizing the significant role of international operations, which contributed roughly half of the group’s earnings. He highlighted the strategic importance of Cyprus, where Eurobank has established a dominant position in the bancassurance market through the merger of Hellenic Bank and Eurobank Cyprus, as well as the acquisition of CNP.
Looking ahead, Eurobank is turning its focus to Bulgaria as a key market for potential expansion. During the bank’s second-quarter earnings call, Karavias confirmed interest in further acquisitions, not only in banking but also in insurance and wealth management. He added that Bulgaria’s planned adoption of the euro would be a positive development for the local economy. Noting that the four largest banks—Eurobank's subsidiary among them—control 75% of Bulgaria’s banking market, Karavias sees room for further consolidation and confirmed that Eurobank is closely monitoring developments.
Lending activity remained strong in the first half of 2025, with performing loans growing organically by €2.2 billion—€1.4 billion in Greece and €800 million in international markets. Total gross loans reached €53.6 billion, split between €35.5 billion in Greece, €8.8 billion in Cyprus, and €8.4 billion in Bulgaria. Based on this momentum, the bank revised its annual target for credit expansion from €3.5 billion to €4 billion.
Provisions for credit risk increased by 8.1% year-on-year to €155 million, or 60 basis points of average loans. Nonetheless, Eurobank does not anticipate additional pressure on risk costs, even with ongoing restructuring related to Swiss franc-denominated loans.
Revenue growth was notable across key segments. Net interest income rose by 12.2% year-on-year to €1.3 billion, while net fee and commission income surged by 28.9% to €364 million. This growth was driven by strong performance in branch network services, wealth management, and insurance activities—particularly following the integration of CNP Cyprus Insurance. The bank has set ambitious full-year targets of €740 million in fee income and €2.5 billion in interest income.
Eurobank’s capital position remains robust, with a total capital adequacy ratio of 19.8% and a Common Equity Tier 1 (CET1) ratio of 15.5%. The bank intends to maintain its strong capital buffer to support future strategic acquisitions, both in Greece and abroad.
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