Eurobank sees rising profit after strong 2024

ATHENS (Reuters) - Greece's Eurobank on Thursday hiked its profit goal for the coming years after reporting strong net profit for 2024 due to higher net interest and growing foreign business.

The bank reported net earnings of 1.45 billion euros ($1.51 billion) for 2024, up 27% from the 1.14 billion euros in 2023 supported by its activities in Cyprus and Bulgaria.

Like other Greek lenders, whose profits have been boosted by

higher net interest income and a strong rebound of the Greek economy, Eurobank upgraded its expectations on its core profit outlook for the next coming years.

It expects core operating profit to reach 1.9 billion euros in 2027 from 1.78 billion euros in 2025 boosted by the merger of Cypriot Hellenic Bank that absorbed last year, its organic loan growth and wealth management, the bank said in a statement.

Greek banks are steadying and returning to profit after they were nationalized following a financial meltdown in late 2009 due to the country's debt crisis, and needed several capital injections from the government.

They received European Central Bank approval last year to resume dividend payments for the first time in 16 years after they cut bad loan ratios, eliminated state ownership, and returned to profit.

"Supported by a strong capital base and consistent solid performance ... we are distributing 50% of our profits to our shareholders through cash dividend and share buy-back," said the bank's Chief Executive Fokion Karavias.

Net interest income, which reflects the gap between lending and deposit rates, rose 15.3% in 2024 to 2.5 billion euros versus 2.17 billion euros in 2023, despite declining interest rates, the bank said.

Net fees jumped 22.4% on a year-on-on year basis to 666 million euros while the non-performing exposure ratio was reduced to 2.9% of its total loan book from 3.5% in 2023.

(Reporting by Athens Newsroom Editing by Elaine Hardcastle and David Evans)