Eurobank Holdings : Further rationalization of balance sheet, NPEs decreased to 15%

authored by
Konstantinos Κarlis
04.09.2020
Market Insights
2 minutes read

During H1 2020, Eurobank Holdings succeeded to decrease NPEs at 15%, the lowest level among Greek systemic banks. Coverage of NPEs via cumulative provisions amounted to 60.6%, ”Cairo” securitisation included. Total net result for H1 2020 amounted to a loss of €1.166 mln (after tax) due to the negative effect of €1.334 mln of  “Cairo”and FPS transactions.

In the following table we present some main figures related to H1 2020 results compared to the same 2019 period.

Main financial data(amounts in € 000,000)H1 2020H1 2019% change
Net interest income6896850.6%
Net fees18015615.7%
Operating revenue9359122.6%
Operating expenses434438-0.8%
Organic profit before provisions4354038.0%
Profit before provisions5014745.7%
Provisions for credit loss271348-22.1%
Adjusted net profit1769782.2%
Profit (loss|) after tax(1.166)32—-

In the following table we present some key financial data on a consolidated basis for the 5 last quarters.

(amounts in € 000,000)Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019
Total assets66,96565,84364,76164,02662,395
Loans before provisions38,14244,97044,41044,48643,507
Accumulated provisions(7,428)(7,157)(7,099)(7,565)(7,735)
Loans after provisions37,81337,81337,36536,97735,828
Eurosystem funding8,0002,7001,9001,2501,250
Deposits45,15745,30144,84142,30841,344
Net worth5,4446,6026,6676,5746,399

Stock chart

The common stock of Eurobank Holdings is depicted in the following weekly chart. During H1 2020 the stock posted a negative return of 55%. After the last recapitalisation of the common equity the stock traded within a large symmetrical triangle in its effort to reverse the previous downward trend. The forced selling of February/March 2020 due to the covid-19 pandemic resulted to a downward break of the symmetrical formation. However, buying interest prevailed at the eur 0.40 level. Since then a small ascending triangle has been formed, a pattern with typical reversal implications.

The chart has been prepared with XSpot PRO terminal. XSpot PRO offers fast execution in 13,000+ investment products from 20+ major exchanges around the world.