Eurobank Ergasias Services and Holdings SA is the parent company of the Eurobank Group, consisting of Eurobank SA and its subsidiaries. Beyond the Greek borders, it has presence in Bulgaria, Cyprus, Luxembourg and the United Kingdom (London). Eurobank is active in all the banking sectors in Greece, offering a wide range of products and services to individuals, small and large businesses, and investors. An integral part of the Group's operations is risk undertaking, with adequate mechanisms in place to timely identify and monitor risks. In 2023 Eurobank demonstrated robust operating performance in terms of profitability, asset quality and capital strength.
Eurobank Ergasias Services and Holdings SA is a holding company registered in Athens and listed on the Athens Stock Exchange. It is the parent company of the Eurobank Group, consisting of Eurobank SA and its subsidiaries.
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Eurobank Ergasias Services and Holdings SA (Eurobank Holdings) is a holding company registered in Athens (8 Othonos Street, 10557) and listed on the Athens Stock Exchange. Eurobank Holdings and its subsidiaries (Group) have €79.8 billion in total assets and 10,728 employees (data as at 31.12.2023).
Eurobank Holdings is the parent company of the Eurobank Group, consisting of Eurobank SA and its subsidiaries.
With a total network of 540 branches in Greece and abroad, the Eurobank Group offers a comprehensive range of financial products and services to its retail and corporate customers. In Greece, Eurobank operations encompass a retail banking network, dedicated business centres, a Private Banking network and a dynamic digital presence. The Eurobank Group also has presence in Bulgaria, Cyprus, Luxembourg and the United Kingdom (London).
| Eurobank Holding’s Key Figures | €billion |
|---|---|
| Gross loans | 42.8 |
| Deposits | 57.4 |
| Total assets | 79.8 |
| Total equity | 7.9 |
| Eurobank Group Client Service Network |
540 |
|---|---|
| Greece | 294 |
| International | 246 |
Data as at 31.12.2023
*As of 14.09.2023, due to a share capital increase following the exercise of stock option rights, the new total of the company’s listed shares that are tradeable on the Athens Stock Exchange amounts to 3,716,479,777 common registered shares, for which the investment community was informed on 12.09.2023 by Eurobank Holdings, through a relevant corporate announcement.
**Based on the information received, from the company “Fairfax Financial Holding Limited”, for which the investment community was informed on 20.07.2021 and on 26.07.2021 by Eurobank Holdings, through relevant corporate announcements.
***Based on the information received, from the company “The Capital Group Companies (CGC)”, for which the investment community was informed on 03.12.2020 by Eurobank Holdings, through relevant corporate announcement.
****Based on the information received, from the company “Helikon Investments Limited”, for which the investment community was informed on 31.01.2023 by Eurobank Holdings, through relevant corporate announcement.
The Eurobank 2030 Transformation Programme was established to act as an enabler that contributes to the acceleration of business performance through selected transformation initiatives, and to support the Bank in achieving its strategic vision, fostering financial growth and creating a more nimble, responsive organisation through data-driven and technology-enabled business change.
The overarching goal of Transformation is to ensure the Bank evolves in response to market, technological and regulatory changes, so as to enhance financial performance through bold changes in the business and operational model, simplifying products and policies, reducing time-to-market, delivering superior customer and employee experiences, enabling new ways of working, streamlining operations, and modernising legacy systems to unlock economies of scale and reduce costs.
Eurobank 2030 structures transformation activities around 8 major pillars. The first 6 aim at increasing profitability through both customer-oriented and internal simplification initiatives, while the last 2 are key enablers relate to IT infrastructure and Human Capital:
The Bank’s Sustainability strategy is a core priority reflected in the objectives of the Eurobank 2030 Programme across pillars.
Eurobank is active in all the banking sectors in Greece, offering a wide range of products and services to individuals, small and large businesses, corporates and institutional investors. Beyond the Greek borders, it has presence in Bulgaria, Cyprus, Luxembourg and the UK (London). In 2023, Eurobank was fully committed to continue delivering innovative and user-friendly digital services, as part of its digital transformation journey, investing in technological infrastructure and human resources, supporting all users in accessing digital solutions, and stimulating an innovative environment within the Bank.
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Retail Banking offers a range of products and services that meet the specific needs and requirements of individual customers and small businesses.
Deposits – Retail Banking encompasses all of the Bank’s deposits, both for individuals and businesses. Total deposits Bank-wide increased to €39.9 billion compared to €39.6 billion on 31.12.2022 at Bank level, despite the market challenges and the inflationary environment. The tourism sector enhanced economic growth, especially for large businesses.
In addition, supporting the savings effort of Greek households, with the Saving Now and Megalono accounts as key ambassadors, more than 135,000 children held the Megalono savings account in 2023.
Deposit products and services remained available through e-Banking. Focusing mainly on optimal customer service and seamless customer transactions, new e-Banking functionalities were introduced and even more customers switched to e-Statements.
Transactions and services packages – A new era of benefits and discounts was launched in 2022 with Eurobank My Advantage Banking for individuals, which was enhanced with Eurobank My Blue Advantage.
Customers obtain the basic Eurobank My Blue Advantage package for every payment account to secure cost savings on their transactions, use of banking services, as well as benefits and discounts at partner companies. Moreover, customers may choose one of the My Silver, My Gold and My Platinum packages and make the most of their relationship with Eurobank, such as benefits at partner companies and more savings on transactions, such as bill payments and cash transfers, every month by linking their account to a package. They can save up a monthly amount, depending on the package they choose, compared to carrying out each transaction separately.
On 31.12.2023, retail customers held more than 590,000 My Advantage packages and businesses more than 450,000 packages (Classic for Business and Advanced for Business).
Investments – A new investment platform was launched in Q4 2023 to facilitate the investment products and services offering, especially those related to mutual funds (MF) under the investment management of Eurobank Asset Management MFMC.
At this initial stage the new investment platform supports all MF transactions under the Execution only service making the most of the Bank’s available channels, especially e-Banking.
Personal Investment Portfolios, a brand-new service under Portfolio Management service, was also introduced, along with the new investment platform. Personal Investment Portfolios is also available through e-Banking, allowing clients to initiate the service on their own, from setting up an investment portfolio to taking the suitability questionnaire and, selecting an investment strategy based on their risk profile.
This new service is a bold step towards offering valuable investment services that were available only to Private Banking clientele to a broader range of clients.
Mortgage loans – Despite the high interest rate environment, due to the broader Eurozone monetary policy, the Bank remained the leader in the mortgage lending market with the highest balance out of the mortgage lending portfolio in Greece, which stood at €7.8 billion in total by the end of 2023.
During 2023, Eurobank continued to offer attractive alternatives to new mortgage borrowers. Specifically, the Bank kept the interest rates of fixed-rate mortgage loans or loans with an initial fixed rate at relatively low levels. At the same time, further reductions in floating interest rate spreads were introduced by absorbing some of the costs related to the increase in the base interest rates.
The Bank continued to enhance its social character, by actively participating in the “Spiti mou” programme, co-financed and subsidised by the Greek State, for granting low-interest loans to young individuals or couples wishing to buy their first home. This initiative spurred a significant increase in demand for mortgages among first-time young homebuyers. Moreover, the Bank continued to contribute to the residential green lending sector through Exoikonomo 2021 which was implemented by the Recovery and Resilience Facility in the framework of the Next Generation EU as well as with Exoikonomo-Aftonomo, that was implemented in the framework of the ESPA 2014 - 2020 and will participate in the other new housing energy efficiency programmes (e.g. Exoikonomo 2023, etc.).
To protect customers from rapid increases in reference rates that lead to higher loan instalments, in 2023 the Bank launched a reward scheme for performing borrowers. This initiative aimed at reducing the current floating interest rates for mortgage loans and offered protection against potential future increases for 12 months.
Consumer loans – Disbursements of amortised consumer loans stood at €213 million, up by 20% compared to 2022. The leading product was Payroll Personal Loan, accounting for 65% of total disbursements. During 2023, the Bank constantly focused on tailor-made consumer loans that meet special customer traits and targeted needs, launching My Fast Loan and CashPlus Eurobank Loan for standard Personal Banking clients.
The Bank also expanded the range of digitally offered consumer loans and launched Payroll Loan through e-Banking and the Eurobank Mobile App, which contributed by 16% of total Payroll Loan disbursements. In terms of retailer loans, the Bank expanded its alternative channel network through partnerships with strategic retailers in the Greek market.
Having recovered from the post-COVID-19 global disruptions in the car industry and its supply chain management, car loan disbursements in 2023 reached €149 million, mostly for new car purchases. By the end of 2023, the Bank’s consumer lending portfolio in Greece amounted to €1.6 billion, including credit card balances.
Cards Business – In 2023, Eurobank’s total card portfolio reached 3.7 million cards (debit, credit and prepaid) with total issuing turnover amounting to €10.3 billion, +15% y-o-y. It is the 1st bank in Greece to offer the next generation of eco-friendly cards, made of biodegradable materials. The Bank continues to enhance its digital self-service solutions, by offering users an end-to-end digital, omni-channel credit card application option through the Eurobank Mobile App – following its leading position in Greece. During the year, it launched a debit card issuing and reissuing process through digital channels.
The Cards Control feature, available through the Bank’s online platform, allows cardholders to manage a range of card functionalities, without the need to visit a branch or speak to a dedicated EuroPhone agent. A series of tailor-made card use and acquisition campaigns were launched in 2023, further rewarding cardholders for their day-to-day card spending, while helping boost turnover.
Eurobank offers an array of digital wallets (Apple Pay, Google Pay and Garmin Pay), catering to all cardholder needs and allowing both iOS and Android device users to make payments using their Eurobank Visa or Mastercard cards. 20% of contactless transactions are with digital wallet, demonstrating that digital wallets are an everyday tool for customers.
Eurobank’s leading loyalty programme in Greece, €pistrofi, rewards customers with cashback in actual euros rather than points, which can be redeemed through a wide network of more than 8,500 affiliated merchants. The programme continues to nurture the business bond between existing and prospective customers by rewarding their overall relationship with the Bank and increasing the value of their transactions. Since 2006, more than €200 million have been returned to customers through the €pistrofi loyalty programme.
Eurobank remains a leader in the field of cobranded credit cards, delivering value to its customers’ day-to-day transactions through exclusive partnerships with entities that include Greece’s largest telecommunications provider (COSMOTE World Mastercard), the largest shopping malls in the country (YES Visa), a high-end retail store (Reward World Mastercard) and a major supermarket chain (masoutis Visa).
As part of the acquiring business spin-off and its sale to Worldline GR in June 2022, Eurobank acts as merchant servicer and offers a wide variety of POS products across all channels, such as POS, ePOS, Payment Link and Smart POS. It is a leader in offering innovative new products and educating the market, to achieve business growth and increase its market share.
Bancassurance – Eurobank achieved high performance and results in bancassurance activity, reaching €460 million, and remains the bancassurance market leader. Aiming to meet all market needs, Eurobank launched new life (capital accumulation) and non-life insurance products (pet insurance) for individuals, and new business products (cybersecurity) for SMEs. Moreover, it launched a sophisticated, personalised insurance planning tool, designed to guide customers in simultaneously selecting multiple suitable products, while also facilitating access to the maximum discounts available through EurolifeSYN+, the combined discount programme” by Eurolife FFH.
The vision of Eurobank Personal Banking is to be the most adaptable and evolving Personal Banking segment in the Greek banking market. Its mission is to provide a unique banking experience to Personal Banking clients through exclusive products and services at favourable rates. The Personal Banking Relationship Managers apply an integrated approach in meeting their clients’ financial goals, through multiple products and services, offered in cooperation with internal departments or external partners, such as Eurobank Asset Management MFMC, Eurolife FFH Insurance and Eurobank Equities SA.
Last year was also extremely important and successful for Personal Banking, due to new sub-segmentation implementation and the significant increase in its balances. 2023 was a milestone for Personal Banking customer service as a new service model was introduced, whereby Relationship Managers serve Top Prime and Prime clients, while Branch Managers or executives serve Standard clients.
In 2023, Personal Banking:
Personal Banking contributed to the launch major projects, such as:
Individual Banking remained focused on developing and serving 87% of the Bank’s active customers (2.8 million) retaining 88% of consumer loan balances and 83% of mortgage loan balances. By launching a comprehensive commercial plan, Individual \Banking carried out more than 13 million contacts with individual customers, 98% of which were through digital and alternative channels, aiming to efficiently meet the whole array of their banking needs. Furthermore, with the integration of advanced analytics and special credit models, it managed to increase consumer lending and maintain portfolio quality.
Moreover, major initiatives led to significant accomplishments:
Eurobank’s strategy for small businesses focuses on companies with:
The loan portfolio for Retail Business Banking amounted to €3 billion as at 31.12. 2023.
During 2023, Retail Business Banking:
As a result of these initiatives, the Bank extended new credit limits and term loans amounting to €580 million.
Corporate and Investment Banking (CIB) provides fully integrated business solutions and excellent customer service to large and complex corporate customers, medium-sized enterprises and institutional clients in Greece and SE Europe. Furthermore, it is responsible for managing the liquidity and funding needs of the Bank, as well as handling its trading and investment portfolio. CIB’s structure is designed to be responsive to market conditions, and to the expectations and needs of its sophisticated client base. It also aims at ensuring efficient provision of services based on market and industry expertise and know-how.
Eurobank serves as the main point of contact for financial solutions and products to major clients. At the end of 2023 it managed a portfolio of around €5 billion (incl. corporate bond loans) and included more than 130 groups of companies, mainly operating in the energy, manufacturing, retail, service, health and construction industries.
The lending portfolio of CB amounted to €3.6 billion in 2023. CB is responsible for managing relationships with MidCaps nationwide, through its network of business centres (BCs). Further to a recent restructuring of the CB network, currently the BCs are strategically located to ensure close coverage and quality service to clients, especially those based outside the Athens metropolitan area.
Eurobank offers comprehensive services through 5 dedicated departments:
The SF departments coordinate the actions of all Group subsidiaries, while they are responsible for handling both performing portfolios and non-performing loans, the latter nevertheless comprising a very small fraction of the portfolio. On 31.12.2023, the performing portfolio managed by SF exceeded €4.7 billion, achieving a significant net credit expansion, mainly attributable to the Project Finance portfolio, and specifically the Renewable Energy Sources (RES), with all other departments recording strong performance.
In 2023, the Bank maintained its focus on top-quality projects and relationships, managing to secure multiple roles and participations in strategic projects in Greece. Additional attention was paid in supporting green transition, which led to concluding deals for several green loans as well as supporting major infrastructure projects across the country, either in the transport or network sectors, or in the hotel and commercial real estate sectors.
Eurobank has more than 30 years of experience in shipping finance, having established a strategic position as lender to a large number of Greek shipping companies. Eurobank holds a leading position in the Greek shipping arena, (and the top one among the Greek banks), with a global shipping portfolio of c. USD 4 billion (including commitments of c. USD 780 million) as of 31.12.2023.
The clientele consists of shipping groups of Greek beneficial ownership, with an established presence and medium to large fleets. The Bank finances vessels trading in the main sectors of shipping, i.e. dry bulk cargo, wet and containers or other categories under specific credit parameters. Shipping loans are purposed to finance the acquisition of second-hand tonnage of young age and the construction of newbuilding vessels, aiming to support the renewal of the Greek merchant fleet. The Bank’s strategy is to include sustainability-related clauses in its shipping financing, wherever these are applicable. Shipping Finance is based in Piraeus and also acts as a shipping hub for the Group, serving Greek shipping companies also through Eurobank Cyprus and Eurobank Private Bank Luxembourg SA.
In December 2023, the International Portfolio Unit was formed under Large Corporate with the mandate to explore international credit opportunities. The first transaction onboarded in the portfolio within Q4 and corresponded to the Bank’s Group participation in an around €350 million international syndicated loan for a leading telecommunication services group in the Western Balkans region. This initiative will enable the Group to strengthen its international footprint and diversify its income streams, while maintaining a risk balanced approach.
The target is to build a portfolio of corporate loans through participation in syndicated loans arranged by Tier-1 international banks with a focus on European borrowers.
Syndicated Debt Solutions is responsible for structuring and arranging a broad range of special and structured financing deals, including corporate syndicated loans and bond loans, leveraged buyout structures, and convertible and exchangeable bonds.
SDS also manages international primary and secondary loan trading activity, liaising with international bank trading desks, funds and brokers, aiming to designing and exploring new loan opportunities for optimising and enhancing Eurobank’s portfolio and market position. In 2023, the Bank maintained its leading position in the market, with the transaction volume reaching around €3.8 billion.
It offers strategic financial advisory services to corporate clients and their shareholders for mergers, acquisitions, disposals and capital restructurings, as well as for raising capital, either through private equity transactions or through the capital markets.
In 2023, the Bank provided advisory services on finance strategy and/or services of underwriting or placing of financial instruments to sovereign and corporate clients looking for strategic advice in executing their growth or divestment opportunities, such as PPC, HRADF (regarding the Athens International Airport IPO), IDEAL Holdings and Attica Holdings, as well as clients seeking to raise capital through the bond and equity capital markets, such as MYTILINEOS, OPTIMA BANK and Trade Estates.
Eurobank provides quality transaction banking services to corporate and institutional clients. The following business units operate within GTB:
GTB leverages modern technology infrastructure to achieve several key objectives:
In 2023, Eurobank Factors recorded another outstanding year in terms of turnover, which remained at the historical high of €7.5 billion, while lending balances significantly increased by €100 million, reaching a new record. Likewise, provisional figures demonstrated remarkable growth in pre-tax profits, despite a serious correction in margins due to strong competition.
2023 was another milestone year for the company’s international performance as it received the gold medal in Export Factoring worldwide and a bronze medal in combined Export-Import Factoring in Europe. The awards were presented during the FCI’s - the global representative body for factoring - annual meeting in Marrakech, Morocco.
During 2023, Eurobank Leasing further grew its business by €147 million in new disbursements (+10% y-o-y) and an overall market share of 23% (new production), among the financial leasing companies operating in Greece. In the renewable energy sources and office equipment subcategory, Eurobank Leasing was ranked 1st with a share of 59%, while it held the 2nd place in passenger vehicles. (Source: Association of Greek Leasing Companies).
The company provides financing solutions in the form of leasing for manufacturing equipment, vehicles and real estate assets. It also played a significant role in initiatives that have a positive impact on the environment, such as electromobility, fibre optics and solar parks.
The Markets Sales and Structuring teams have been instrumental in providing clients with value-added solutions and hedging strategies in a volatile market landscape.
Eurobank focused on offering products and services that promote environmental and social issues and contribute positively to society. Concurrently, there was a strong push towards digital solutions. Eurobank became the 1st bank in Greece to offer comprehensive and fully automated foreign exchange digital services around the clock (24/5). The Markets Trading team also successfully navigated portfolio risks through unchartered market conditions and managed to outperform for yet another year.
Treasury (a part of Markets) strongly outperformed its financial and business objectives in 2023, while being very active in the wholesale capital and interbank markets, so as to:
Specifically, Treasury was actively engaged in the capital markets during 2023 and successfully executed two senior preferred public market transactions:
These transactions further boosted the Bank’s MREL ratio to levels well above the 1 January 2024 interim non-binding MREL target.
Treasury also maintains a dedicated Correspondent Banking Division, offering dedicated relationship management to all its clients, and providing centralised services for the Eurobank Group, enabling cost effective payment execution and optimal cash management solutions.
In each country, Markets operations are standardised and report directly to Markets International in Greece and to the local CEO. The Group’s strategic objective is to preserve and develop its important regional footprint in the areas of liquidity management, foreign exchange, interest rates, bonds and derivative trading, as well as sell financial and investment products in the local markets. The Group continued promoting a wide range of ESG-related products and services across the client base, whereas local Markets teams successfully weathered market challenges, delivering exceptional results well above their set targets.
The Group sets strict limits for the transactions it enters into, which are monitored on a daily basis. Limits include exposures towards individual counterparties and countries, as well as VaR limits. The Group uses an automated transaction control system, which supports Markets in monitoring and managing positions and exposures.
Eurobank actively participates in projects and transactions that have significant benefits for the economic growth of Greece and support the sustainability transition of the Greek economy. Its position as the Development and Prosperity Bank was strengthened through its leading role in almost all flagship projects carried out in 2023, but also through continuously supporting strategic sectors of the Greek economy and financing sound business plans, this way encouraging the growth efforts of businesses, their investment plans and their extroversion.
In 2023, Eurobank financed landmark projects and transactions, such as:
Additional flagship projects financed by Eurobank during 2023 with a significant impact on the Greek economy are presented under the “2023 Sustainable financing highlights” and “Recovery and Resilience Facility (RRF), as part of the Greece 2.0 National Recovery and Resilience Plan” sections.
Eurobank was fully committed to continue delivering innovative and user-friendly digital services in 2023, as part of its digital transformation, investing in technological infrastructure and human resources, and supporting all users in accessing digital solutions.
Eurobank Group Digital Banking leverages its expertise to provide innovative, data-driven financial products and services. Placing customers at the centre, it delivers simple, personalised products and ensures easy access to them. Bringing technology closer to everyone, it acts as a digital and phygital key enabler and Eurobank’s main digital culture ambassador.
2 main aspects are identified in its digitisation journey:
Digital products – Eurobank’s digital-first approach has led to a significant expansion of its digital portfolio, offering a range of products and services to enhance customer experience and address customer needs as voiced directly by them.
The main theme for 2023 involved the provision of “peace of mind” to the Bank’s digital customers, allowing them to meet their credit, insurance and investment needs digitally.
Key digital products and initiatives for 2023:
In addition to these digital products, Eurobank made notable advancements in 2023:
Open Banking – Eurobank made further progress in Open Banking by providing financial products and services through API (Application Programming Interface) technology, based on 3 axes:
The Open Banking channel:
Eurobank’s digital initiatives epitomise a strategic commitment to harnessing technology for delivering cutting-edge solutions and tailored experiences for individuals and business customers. These efforts were recognised by notable distinctions. In 2023, Eurobank was honoured as «Best Consumer Digital Bank in Western Europe for 2023» for the 4th consecutive year, by the esteemed US Global Finance magazine, affirming its continuous excellence in digital banking on an international scale.
e-Banking and Eurobank Mobile App – Several key indicators show significant performance continuing across the previous years.
| Year | ||
|---|---|---|
| Use of digital channels | 2022 | 2023 |
| % of mobile users exclusively using Mobile App for their transactions with the Bank on a monthly basis | 76% |
78% |
| Transactions | 2022 | 2023 |
| Volume of digital transactions in respect to transactions (excluding withdrawals/deposits) from all Eurobank channels | 94% |
95% |
| Value of digital transactions in respect to transactions (excluding withdrawals/deposits) from all Eurobank channels | 60% | 54% |
| Percentage change in volume of digital transactions | 20% | 15% |
| Percentage change in value of digital transactions | 29% | 12% |
| Statements | 2022 | 2023 |
| e-Statements produced (million) | 4.3 | 4.7 |
| Additional savings from e-Statement use (€) | 442,000 |
1,154,000 |
The Eurobank Mobile App was ranked 1st in the App store and iOS among all other banks in Greece.
Digital and hybrid sales – The volume of digital and hybrid sales increased significantly by 68% (in items) through:
Hybrid sales volumes doubled in 2023 vs. 2022
User experience – The User Experience (UX) team puts the customer at the heart of everything the Bank does. UX researchers and designers enhance customer and staff experience across channels and touchpoints. For conducting user research, it leverages the state-of-the-art UX Lab facilities, uses various methods and custom tools (user interviews, design thinking, usability tests, card sorting, tree testing, etc.) and recruits users from the pool of candidates in place, such as the Digital Community (digital banking customers) and the Digiators (internal staff).
During 2023, approximately 800 users were engaged in research activities for 27 initiatives. Through these research activities, the UX team identified customer and employee insights and used these to design user-friendly products and experiences.
It also implemented a design system for the mobile app, so as to work with specific design standards, patterns and components, to provide consistent experiences and efficiencies to the design and development teams.
Websites – In 2023, eurobank.gr received over 28.6 million visits, 52% of which found the Eurobank site organically through search engines (e.g. Google).
It introduced new features and enhancements to increase user experience and lead generation, such as new calculators for mortgage and consumer loans, interactive tools (appointment booking at branches, web callback, RoboChat) and new sites (Asset Management, Annual Report microsite, Growth Awards).
Social media – With 10 active channels on different platforms, such as Facebook, LinkedIn, Instagram and YouTube, Eurobank:
Community management across the Bank’s social media channels helps the Bank forge better customer relationships within the digital environment, but also introduces a new approach to the bank-customer relationship and digital sales.
In terms of interactions, Eurobank ranked 1st on LinkedIn and 2nd on YouTube across the Greek banking sector. The €pistrofi loyalty page on Facebook was 1st in interactions and video views across the Greek banking sector.
Creative hub – The creative hub team (digital copywriters and designers) generated significant digital content through 1,937 deliverables of 388 projects in Group Websites, 170 email campaigns, 63 digital channels flows and microcopy projects and 5 batches of Robochat content.
Performance marketing – Through digital advertising platforms, it helps business growth directly, by supporting digital sales in achieving their sales targets, and indirectly, with marketing campaigns aiming at increasing brand awareness. In 2023, 85 digital campaigns were launched, reaching:
Using cookies in accordance with the applicable data protection legislation, Eurobank continues to collect data from user interactions on its websites, to serve personalised ad content.
Customer journeys and internal digitisation – Eurobank continued to re-engineer customer and internal journeys, being loyal to the “simple, lean and targeted” principle and its unwavering dedication to customer-centricity and innovation. Numerous initiatives were carried out across channels and segments, aiming to achieve customer and operational excellence through sustainable paths. The streamlining of procedures led to a 3% rise in relationship-NPS for primary customers compared to 2022, while it also contributed towards retaining a high product NPS.
Key highlights per journey:
It also recorded significant improvement in business financing, leading to a 50% reduction in time-to-cash by automating credit underwriting (40% in simple products) and contract drafting (90% automation). As a result, within 2023 more than 1,000 businesses were able to proceed in contract signing on the same day they visited the branch to apply. Similarly, it implemented automated credit decision in revolving loan renewal, aiming to boost solution scalability.
The Bank’s progress in digital maturity was benchmarked against market best practices to identify areas to be addressed by digital initiatives going forward, with a view to achieving a Digital Leader status. The identified focus areas contributed to the formation of the Bank’s “Eurobank 2030” Transformation Programme and relevant initiatives were linked to the programme’s pillars and streams.
In 2023, Eurobank successfully implemented a data-driven transformation strategy, leveraging advanced analytics and data integration to boost efficiency and achieve personalisation at scale.
Through the use of its Campaign Management platform, the Advanced Analytics and Campaign Management team carried out over 25,000 actions and 35 million contacts, streamlining communication through digital and physical channels.
Eurobank’s vision of data-driven transformation is demonstrated through its successful development and implementation of a Comprehensive Recommendation Engine, which integrates machine learning algorithms with business rules to effectively prioritise business objectives. This resulted in 1.6 million customers receiving at least one recommendation, representing a 70% coverage of the transactional base.
Furthermore, Eurobank enhanced its anti-money laundering (AML) identification processes using various machine learning approaches, resulting in a 20-fold increase in accuracy. The integration of AML data and visualisation techniques facilitated energy-saving measures in case investigations.
Eurobank also focused on integration and automation, successfully integrating its Campaign Management System with e-Banking to enable real-time data and always-on campaigns.
These achievements collectively demonstrate Eurobank’s commitment to driving business growth and efficiency through the use of advanced analytics techniques, automation and data integration strategies.
The Innovation Centre’s mission is to provide fast-paced and focused innovation to the Bank, with the aim of increasing profitability and efficiency in accordance with the Bank’s strategy. By employing innovative methodologies, emerging technologies, open innovation and collaborating with FinTech companies, its primary goal is to create new and innovative solutions, eliminating pain points, identifying solutions, and remaining relevant in the digital age.
Through the established eXplore intrapreneurship programme, it continuously cultivates and promotes innovation mindset across the Bank by employing small, interdepartmental agile teams comprised of Bank employees.
Aiming at the integration of new cutting-edge technologies within the Bank through partnerships with third parties, the Innovation Centre signed a Memorandum of Understanding (MoU) with CERTH – The Center for Research and Technology Hellas, and specifically with the Informatics Institute.
For the internal innovation pillar, it ran an innovation challenge, making use of the Transformation Challenge Box, the internal ideas sourcing tool, and 173 ideas were crowdsourced.
The Innovation Center is involved in several innovation FinTech programmes in Greece as a startup mentor through its team members. It also belongs to a banking innovation community, where it shares knowledge with other banks, and keeps using its exclusive and advanced Innovation Lab to promote entrepreneurship and intrapreneurship, and to test and verify proofs of concepts and MVPs.
Eurobank Asset Management MFMC holds a leading market position in Greece, with about €5.9 billion in total assets under management and supervision as at 31.12.2023:
Eurobank is also present in the Luxembourg funds industry, one of the major global fund hubs, through its 100% subsidiary Eurobank Fund Management Company (Luxemburg) SA. The Company offers a wide variety of UCITS funds under the umbrellas (LF) Funds, (LF) Fund of Funds and (TLF) Funds, distributed in Greece, Luxembourg, Bulgaria and Cyprus. Eurobank Asset Management MFMC, also manages UCITS funds (ERB VCIC plc), registered and distributed in Cypriot market. The UCITS funds cover a broad range of all asset classes, with geographical diversification.
Group Private Banking offers a wide range of investment products and services (execution-only, advisory and discretionary) as well as wealth management and structuring services (lending facilities, family office structuring and servicing, fund administration services). Besides the in-house funds, the Group Private Banking, with presence in Greece, Luxembourg, London and Cyprus also distributes approximately 5,000 UCITS funds from 13 international fund managers.
On 31.12.2023, Private Banking served approximately 13,000 clients, on boarding an additional 1,600, with CAL (client assets and liabilities) reaching €11 billion.
The Group’s future Private Banking model is based on a strategic nationwide homogenisation of operations and establishment of a single customer journey, which will be technologically supported by the capabilities of the Temenos digital Wealth Management platform, already rolled out in Cyprus in April 2023 and expected to be launched in Luxembourg shortly.
The imminent plans are to expand to new markets, grow organically and build on the global momentum.
Offering its clients access to a full range of investment products, including trading in stocks, derivatives, bonds and mutual funds around the globe, Eurobank Equities SA is a leader in the industry.
In 2023, it accounted for 17.05% of the volume of transactions in the Athens Exchange, solidifying its position as one of the brokers of choice for the institutional investors active in the Greek market, in addition to thousands of private investors.
The multi-awarded Eurobank Equities Research Division continued to build on its strong international recognition, ranking 1st in Greece Research on an Assets Under Management (AuM) weighting basis at the 2023 Institutional Investor Survey. Eurobank Equities’ research universe includes more than 25 listed companies, accounting for more than 85% of the ATHEX capitalisation and more than 90% of the traded value. Eurobank Equities Research also provides secondary coverage on the largest foreign markets and listed large cap names.
The Eurobank Equities Market Making Division provides liquidity on the shares of 42 listed corporate entities, 7 corporate bonds and 42 derivatives, capitalising on its extensive experience and proprietary technology.
In 2023 Public Sector Banking aimed to create integrated proposals that respond to the special and multifaceted banking needs of public and non-profit organisations, covering the entire range of their financial activities. To that end, the Bank enhanced services offering to include competitive cash management solutions, integrated transaction services, innovative e-banking solutions, dedicated property management propositions, a wide range of insurance products, flexible financing solutions and personalised payroll packages.
It participated in 38 Requests for Proposal for the cash management of public organisations during a national and municipal election year and increased its customer base with key public-sector entities. It achieved a significant increase in public hospitals deposit market share and social security organisations, and maintained the leading position in new integrations of DIAS interbank payments for yet another year.
Retail International Customers focused on further simplifying and enhancing the customer onboarding process for non-resident individuals who wish to bank with Eurobank. In 2023, it launched the Same-Day and Proxy onboarding processes, leading to an increase in its active client base with the number of new clients more than doubling, while the digital onboarding option gained more popularity.
It raised awareness of its mortgage offering by engaging in a number of targeted marketing campaigns, among which by running targeted web and social media campaigns in the UK, France and Germany, resulting in a substantial increase in mortgage applications from non-residents.
Business Exchanges SA is an important vehicle for the Group’s digital transformation programme, providing digital B2B services to the Group and other businesses. It is also one of the Group’s key hubs for restructuring and consolidating its financial and HR services.
For the 23rd consecutive year Eurobank, through its subsidiary Business Exchanges SA, successfully operated in the B2B transaction sector, offering value-added digital services to its customers.
Business Exchanges assists businesses, including the Group, to streamline their supply chain through e-auctions, e-procurement and e-invoicing services. During the year, the company seamlessly integrated the e-Procurement platform across the Group (Eurobank and subsidiaries), engaging more than 2,000 users. The successful rollout of the new e-procurement platform, provides a modern cloud-based solution for streamlined purchases, enhancing internal digitisation, cost efficiencies and enriched services to the Group’s suppliers.
After the strategic partnership with doValue SpA and the smooth transition to the new operating model for remedial management, the Group implements its NPE Strategy Plan through doValue Greece for the assigned portfolio and successful securitisation transactions. The NPE strategy lays out the Bank’s approach and objectives regarding the effective management (i.e. maximised recoveries) and reduction in NPE stock in a clear, credible and feasible manner for each portfolio.
In this respect, in March 2024, the Group submitted its NPE Management Strategy for 2024-2026, along with the annual NPE stock targets at both Bank and Group level.
According to the plan, the Group NPE ratio is expected to drop from 3.5% in FY 2023 (actual figure) to 3.2% in 2026.
Remedial management encompasses a range of policies and strategies, including the collection of early arrears loans starting from the 12th delinquent day of each month, in accordance with the current legislation.
In the Retail portfolio, a micro-segmentation approach has been developed to facilitate collections, with all relevant channels (including the branch network) heavily involved in achieving specific monthly collection targets. To prioritise collections, decision trees are used daily to identify the most critical sub-segments for achieving the NPE reduction targets. Prioritisation is used to differentiate between the effort applied from the part of remedial channels and the script used during communication with the customers.
doValue employees that manage the ERB portfolio are duly trained in the Bank’s product features, policy and procedures, as well as in debt collection techniques.
Special communication scenarios adapted to the strategy/segmentation are applied, aiming at proper communication, quality management and customer service for all retail products, and at informing customers about their rights and obligations.
Customer communication is personalised and highlights the benefits of repaying overdue amounts on time and the consequences of payment delays.
In the Corporate portfolio, dedicated relationship managers continually monitor any delinquencies and take appropriate action as needed.
As regards the Remedial Management for Retail (mortgages, consumer loans, SBB and professionals), the Bank proceeded with the following strategic and operational actions in 2023:
Furthermore, the held-for-sale transaction in YE2023 combined with the sales planned within 2024 (project Leon, around €650 million in total) will drastically reduce the remaining NPE stock in mid/late arrears.
As regards the Remedial Management for Corporate, the Bank proceeded with the following strategic and operational actions in 2023:
In addition, the 2023 organic performance (NPE formation) outperformed the target steadily and consistently.
The Bulgarian economy’s real GDP growth rate for 2023 was 1.8%. The forecast for 2024 is 3.2%. In 2023 rating agency FITCH carried out two reviews of Bulgaria’s credit rating and in each of them, it confirmed the rating of the country at BBB with a positive outlook.
2023 was by far the best year in Eurobank Bulgaria’s (Postbank) history. Making the most of the strong market performance and leveraging on the successful acquisition of the business of the Bulgarian branch of BNP Paribas Personal Finance SA (BNP Paribas PF) in the middle of the year, Eurobank Bulgaria improved its results across all indicators.
Effective as of 1 June 2023, the acquired Personal Finance operations transitioned to the Postbank family and continue to operate in the Bulgarian market under the PB Personal Finance brand, part of Postbank, maintaining its business model.
Net profit adjusted for the year reached a new record of EUR 189 million. The amount of total assets at the end of the year was €9.9 billion or a 18% increase compared to the previous year (€8.4 billion).
The favourable interest rates, strong real estate market and acquisition of BNP’s portfolio fuelled the 22% y-o-y increase in gross loans across all segments. More than half of the new loans were in the consumer lending portfolio, which increased by 74%. The mortgage portfolio grew by close to 20%. The growth of Postbank’s deposits base by 14.4% y-o-y was much higher than the market (8.4%) and allowed Postbank to reach an 11.45% market share – the highest on record.
All ratios are on an improving trend: return on equity was 19.7% or 7.1 pp higher than last year’s, while return on assets was 2.1% as opposed to 1.2 % in 2022, and cost/ income ratio improved to 41.5%.
The non-performing exposure ratio also improved considerably compared to 2022, by 1.2 pp from 3.7% to 2.5%. The capital adequacy for 2023 stood strong at 20.9%, while Eurobank Bulgaria is also in full compliance with the MREL target.
2023 was full of numerous achievements and prestigious local and international recognitions for the efforts of the bank to work with care for people, society and nature, combining the best of traditional and digital banking. Postbank won the following awards:
The bank also received the gold award in the “Innovative Bank” category in the annual “Company of the Year” competition, while it was also recognized as the Best Retail Bank in Bulgaria for 2023 by the renowned World Finance Magazine for the 6th consecutive year.
Over the past 4 years, Eurobank Cyprus Ltd (Eurobank Cyprus) has been engaged in a major transformation project, to adapt to the changing needs of the market. A material component of this initiative is the changing of the bank’s technology landscape and business process re-engineering and exposure to digital banking. The project includes the replacement of the bank’s core banking system along with a new wealth management system, digital channels, an ERP system, data analytics and compliance modules. April 2023 marked an important milestone in the history of the bank by implementing the new Banking system and rolling out the new technologies successfully.
Eurobank Cyprus delivered robust financial performance in 2023, despite the effects of the continuing Russia-Ukraine war and the increased risks emanating from the volatile geopolitical environment. Costs were maintained within the bank’s expectations and asset quality remained strong, with improved indicators in this respect. Because of the increased profitability, capital generation continued, further strengthening the bank’s capital indicators.
Profit after tax for the year amounted to €199.5 million, recording a 90% or €94.7 million increase compared to the 2022 profit, which amounted to €104.8 million. The main driver for this year’s profitability was net interest income due to the rising interest rate environment, supported by healthy commission income.
As a result of the increased profitability, return on equity improved to 22.9% in 2023 as opposed to 14.8% in 2022. This compares favourably with the EU bank average of 10.3% as reported for Q4 2023 by the EBA quarterly risk dashboard. Similarly, the return on assets in 2023 amounted to 2.4% as opposed to 1.2% in 2022.
Cost discipline has always been one of the bank’s main priorities and this is supported by the low cost/income ratio of 18%, recording further improvement, as opposed to last year’s respective ratio of 27%.
Because of the increased interest rate environment, it was expected that customers would use their excess liquidity to reduce their funding costs and also seek alternative investments yielding higher returns, as opposed to deposit interest rates. As such, invested assets under management recorded strong results and grew by 39% or €1.1 billion compared to 2022, reaching around €4 billion. On the other hand, customer deposits retracted marginally by €88 million compared to 2022 and reached €7.1 billion due to the conversion of deposits into invested assets by customers. The bank’s market share in the Cyprus deposit market reached 13.6% from 13.8% as at last year end. The bank’s overall cost of deposits increased by 0.69%, from 0.59% in December 2022 to 1.28% in December 2023.
Total assets amounted to €8.3 billion, whereas Loans and advances to customers amounted to €2.76 billion, reporting a €200 million or 7.8% increase, as opposed to 2022. The loan credit expansion covered all the bank’s main pillars, with the Corporate Banking Division reporting the highest loans, delta followed by the Private Banking Division.
The bank has maintained its strong liquidity position with a Loans to Deposits ratio of 38.2% an LCR at 236% as at 31 December 2023.
At the same time, Eurobank Cyprus continues to maintain a very good loan portfolio quality, as the non-performing loan (NPE) ratio, according to the directives of the European Banking Authority (EBA), remains very low at 2.5%, as opposed to 2.7% for 2022.
The bank’s enhanced capital base as a result of the increased profitability, coupled with the active management of RWAs, resulted in the increase of the bank’s capital adequacy and CET1 ratios by around 680bps to 34.1% as at the end of 2023.
Eurobank Private Bank Luxembourg SA (Eurobank Private Bank Luxembourg) was established in Luxembourg in 1986 and operates a branch in London and a branch in Athens.
Luxembourg is a leading financial hub and an international Wealth Management Centre of Excellence, boasting an AAA credit rating and well-functioning institutions. Along with London’s global financial centre status, they constitute key factors for attracting new clients.
The bank offers Private Banking, Wealth Management and Investment Fund services, as well as selected Corporate Banking services. Through a wide range of innovative products and services, and highly qualified and experienced staff, it follows a targeted business model, along with a conservative approach in terms of risk-taking.
During 2023, Eurobank Private Bank Luxembourg maintained satisfactory profitability levels and continued to attract new clients, while at the same time keeping its capital adequacy and liquidity at high levels. At the end of 2023, the capital adequacy ratio stood at 21.5%, and the liquidity coverage ratio at 384% (under Basel III), while the loan-to-deposit ratio (excluding cash-collateral loans) stood at 63%.
As part of the Private Bank practice, Eurobank Private Bank Luxembourg continued expanding its clientele, as well as its total portfolios throughout 2023. In cooperation with the Bank’s dedicated Investment Advisory team, Private Banking offered its clients investment products that address market challenges and comply with the demanding regulatory framework.
The extensive upgrade of the bank’s systems and technology platform is currently underway. This substantial investment and respective transformation will significantly enhance its strategic position in terms of operational efficiency, digital channels and services, as well as superior overall client experience.
Information Technology is one of the cornerstones of Eurobank’s strategic growth and is essential in achieving the Bank’s goals. In this context, the Bank intensified the effort through 2 major transformation initiatives to upgrade its IT architecture, which will create a highly flexible model to support growth and boost efficiency. Eurobank continued the long-term project to shift its IT infrastructure to the cloud, while also implementing a new data and analytics platform. The adoption of cloud computing is vital to the Bank’s sustainability and environmental, social and governance (ESG) efforts to significantly reduce carbon dioxide emissions.
At the same time, Eurobank continues its phygital transformation, investing in strengthening its human capital in Technology, supporting its operations more efficiently and adopting the most innovative technologies.
In line with these objectives, Information Technology mainly focused on the following areas:
In 2023, Information Technology successfully delivered over 320 projects, and its systems achieved a remarkable availability rate of 99.996%. To further enhance its technology delivery capabilities, it launched the Technology 2030 programme, which incorporates modern methodologies such as product management. Its agile platform development factories continue to scale, with more than 30% of projects being delivered through Agile and DevSecOps ways of working. It also made over 230 enhancements to its technical and security infrastructure, ensuring uninterrupted services for the increased business transactions.
Finally, the technology transformation journey in the international subsidiaries is ongoing. The Temenos core banking platform rolled out in Cyprus in the first quarter of 2023, along with new wealth, digital, payments and data warehouse platforms. In Luxembourg, it launched the replacement of the core banking platform, which will be retrofitted using the Cyprus blueprint. In Bulgaria, it focused on the Euro Adaption programme, which it aims to complete within the regulatory timelines.
Eurobank has forged partnerships with national and international associations, organisations and initiatives and it has received multiple awards for yet another year.
GRI 2-28
To enhance its ESG approach, Eurobank participates, inter alia, in national and international associations, organisations and initiatives.
UNEP FI participant since 2005; founding signatory to the Principles for Responsible Banking since 2019.
Active supporter of the UN SDGs.
Chair of the Coordinating Committee for Sustainable Development, Green Banking and Corporate Governance.
Signatory to the 10 Principles of the UN Global Compact since 2008. Member of the Global Compact Network Greece.
The only Greek Bank participating in the Priceless Planet Coalition since 2020.
Eurobank Asset Management subsidiary a signatory to the UN Principles for Responsible Investment (PRI) since 2018.
Member of the CSR Hellas network since 2003.
Participant in the Eco-Management and Audit Scheme register for following the EC Regulation on eco-management.
Member of the EC’s Energy Efficiency Financial Institution Group (EEFIG) since 2013.
Member of the International Capital Markets Association (ICMA) since 2020.
Eurobank published its TCFD Climate-related & Environmental Risk Report in 2023.
Eurobank Holdings joined UN-Convened Net-Zero Banking Alliance in 2024.
Find out more at ESG Partnerships and initiatives.
2023 was yet another year that Eurobank received distinctions, thanks to the trust of its customers, the credibility of its partners and the pioneering mindset of its employees.
Banking ServicesBest Bank – Greece
Global Finance
Best Retail Bank – Bulgaria
World Finance Magazine
Transaction BankingBest Treasury and Cash Management – Greece
Global Finance
Private BankingBest Private Bank – Greece
PWM & The Banker
Best Private Bank – Greece
Global Finance
Best Private Bank – Cyprus
Global Finance
Best Domestic Private Bank – Greece
Euromoney
Best Domestic Private Bank – Cyprus
Euromoney
Trade FinanceBest Treasury & Cash Management – Greece
Global Finance
Market Leader - Best Service Domestic Bank – Greece
Euromoney
Custody ServicesBroker Dealers’ Choice - Leaders in Custody – Greece
Global Custodian
Best Sub-Custodian Bank – Greece
Global Finance
Best Sub-Custodian Bank – Cyprus
Global Finance
Digital ServicesBest Consumer Digital Bank - Western Europe
Global Finance
Best Consumer Digital Bank – Greece
Global Finance
Best Corporate/Institutional Digital Bank – Greece
Global Finance
Best Open Banking APIs – Greece
Global Finance
Best Consumer Online Product Offering – Greece
Global Finance
Best Consumer Innovation and Transformation – Greece
Global Finance
Best Consumer Innovation and Transformation - Western Europe
Global Finance
Best Corporate/Institutional Digital Bank for Trade Finance Services – Greece
Global Finance
Best Corporate/Institutional Digital Bank for Trade Finance Services - Western Europe
Global Finance
Best Corporate Mobile Banking App – Greece
Global Finance
Find out more at Our Awards
Risk undertaking is an integral part of the Eurobank Group’s operations, to meet its strategic and business objectives. To this end, there are adequate mechanisms in place to identify and monitor risks, and assess their potential impact.
ATHEX A-E2 ΑTHEX SS-G3
The Group acknowledges that risk undertaking is an integral part of its operations, to meet its strategic and business objectives. Therefore, it has established adequate mechanisms to identify and monitor these risks in a timely manner and assess their potential impact on meeting its corporate objectives. The ultimate responsibility for the Group’s risk management lies with the Board of Directors (Board or BoD).
The BoD has delegated to the Board Risk Committee (BRC) specific responsibilities as to designing and formulating the risk management strategy, managing assets and liabilities, and establishing effective mechanisms to identify, assess and manage risks that derive from the Group’s overall activities. The BRC consists of 5 Non-Executive Directors of the Board, convenes on a monthly basis and reports to the BoD on a quarterly basis and on ad hoc instances if needed. In accordance with the European Central Bank (ECB) expectations, the BoD has appointed a specific BoD member as responsible for the climate-related and environmental (CR and E) risks at Group level. The appointed BoD member updates the BRC and the BoD on climate change and environmental related risks at least on a semi-annual basis.
The Group has allocated adequate resources for updating its policies, methods and infrastructure, to ensure the Group’s compliance with the requirements of the ECB, the Single Supervisory Mechanism (SSM), the Single Resolution Mechanism (SRM), the guidelines of the European Banking Authority (EBA) and the Basel Committee on Banking Supervision, as well as its alignment with best international banking practices.
Risk culture is a core element of the organisation. The risk management function provides the framework, procedures and guidance to enable all employees to proactively identify, manage and monitor the risks in their own areas, and improve the control and coordination of risk-taking across their business. Risk culture influences the decisions of the management and employees during the day-to-day activities, and has an impact on the risks they assume.
Ongoing education, communication and awareness takes place via dedicated learning programmes, monthly meetings, sharing of best practices and other initiatives.
Eurobank applies the following processes and tools to ensure efficient risk management:
The RIMA process sets the appropriate mechanisms to identify risks at an early stage, as well as to assess the materiality of and their potential impact on the achievement of the Group’s objectives. In this context, RIMA is an essential part of the overall risk appetite process, enabling the Group to build its risk inventory, identify the risks that the Group is or might be exposed to, assess their relevance and materiality, and eventually define appropriate risk appetite metrics to monitor the risks assessed as material. The Group applies a formal RIMA process, as demonstrated in the RIMA Framework, to ensure that all identified risks are captured in the Group’s Risk Library. The risks assessed as relevant and material are then included in the Group’s Risk Inventory.
The RAF defines the process whereby the Group develops its Risk Appetite Statements, including the governance and methodologies for selection, calibration, monitoring and escalation in case of a breach. Additionally, through the RAF, the Group strengthens risk governance and supports the formulation of the Group’s business strategy and objectives under both normal and adverse economic conditions.
The Group articulates its Risk Appetite through a set of qualitative and quantitative statements relating to, inter alia, solvency, liquidity, profitability, asset quality and other areas related to material risks. It sets indicators and thresholds to support the evaluation as to whether the Group operates within its risk appetite. The outcome of this process is the Risk Appetite Statements (RAS) document, whereas the principles, process and governance aspects related to the RAS are outlined in the RAF. The RAS are complemented by a set of Business Line Statements (BLS), which constitute operational metrics (and limits) at the level of business where the risks are undertaken.
The RAF, RAS and BLS documents are cascaded within the Group, and shape its risk undertaking and management culture, forming the foundation on which risk policies and risk thresholds are established both overall and per business activity.
The Stress Testing process follows a comprehensive approach, starting with identifying material risks and incorporating these risks into a set of coherent stress testing scenarios. The scenarios are processed through an analytical framework, consisting of risk models, which are used to forecast the Group’s expected profitability, capital and financial position under the assumed stress scenario conditions. The Group leverages the Stress Testing Framework for a number of internal risk and planning processes, including Business and Capital planning, the RIMA process, ICAAP, liquidity management/ILAAP, recovery planning, risk appetite calibration and regulatory stress testing.
The Group has established a standardised and regular flow of information to ensure ongoing and accurate monitoring of all risks. Appropriate arrangements and reporting lines have been put in place across the Group Risk Management (GRM), using quality and consistent information and metrics.
Group Risk Management (GRM), which is headed by the Group Chief Risk Officer (GCRO), operates independently from the Business Units and is responsible for identifying, assessing, measuring, monitoring and managing the risks the Group is exposed to.
A Risk Management Executive Committee has also been established, to regularly review key risk and other issues of the GRM, so as to ensure that the Risk Unit Heads are appropriately and timely informed on all of the above issues, and that closer coordination and cooperation amongst Risk Units is achieved.
The GRM is independent from the Business Units and has full responsibility for setting the risk strategy and RAF, and subsequently, as a 2nd line of defence, for assessing and monitoring the material risks, as assessed through the RIMA process, undertaken by the Group. Moreover, it is responsible for establishing the necessary policies and procedures, methodologies and tools to effectively monitor risk levels within the Group.
The Group has established and operates a robust governance framework for all products and services, throughout their lifecycle, where material financial and nonfinancial risks are assessed by the related Group Risk Management Units and other 2nd Line of Defence Units.
The main responsibility of Group Credit (GC) is to assess and mitigate the credit risk undertaken by the Bank, in alignment with the provisions of the Credit Policy Manuals (CPMs) and the Risk Appetite Framework (RAF). In particular, the GC is responsible for reviewing and evaluating credit limit applications for:
• Large- and medium-scale corporate entities of every risk category.
• Dedicated units, such as shipping and structured finance.
• Retail banking customers (small business and individual banking)
All these are determined in accordance with thresholds set by the Bank.
Depending on the loan portfolio and the loan request, the GC issues an independent credit opinion for each credit application, which includes an assessment of the customer credit profile based on the risk factors identified, followed by a focused sector analysis, if possible, and recommendations on the structure, so as to ensure a bankable, appropriately secured and well-controlled credit limit/transaction.
The GC participates with voting right in all Credit Committees, as per the credit approval procedure, as well as in other Bank committees, as stipulated by the Group Corporate Governance principles. In addition, the GC has an active role in all credit related projects, as well as in internal and external audits.
The GCC facilitates the implementation of a sound credit risk management framework throughout the Group and is responsible for:
Moreover, the GCC participates in projects related to international subsidiaries’ credit portfolio restructuring and reporting (i.e. sale of credit portfolio, sale/acquisition of subsidiaries, special portfolio reporting), as directed by the Group CRO. Finally, the GCC regularly reviews the adequacy of provisions of all loan portfolios.
The GCC is independent from the credit underwriting activity of the Bank. The Head of the Unit and the Heads of the Unit’s Divisions participate in Bank committees, as specified in the relevant Group Governance documents.
The GONFR’s mission is to assist in achieving business objectives within acceptable levels of risk exposure (risk appetite) for operational and non-financial risks, thus protecting the value, while also facilitating effective, long-term value creation. The GONFR achieves this by being a professional partner to business, operations management and staff, while monitoring risk levels and providing quality risk information to the competent management bodies for decision-making and risk oversight.
The GONFR is responsible for establishing an effective operational and nonfinancial risk management framework for the Group, aligned with best practices, and for overseeing its implementation across the Group. It acts as an overlaying coordinator, aiming to harmonise 2nd line of defence activities across the Group, and to holistically ensure the effective and consistent application of the Non-Financial Risk Management (NFRM) Policy. In this regard, other 2nd line of defence units maintain their responsibilities for specific risk theme(s) that they own. The GONFR has 2nd line of defence responsibilities for a number of risk themes and provides support to international subsidiaries, by overseeing the individual Country Operational Risk Units.
The Unit supports the Business Units in identifying, assessing, mitigating, monitoring and reporting operational and non-financial risks, and introduces risk identification processes to be used by them. Through these, it monitors the level and features of the most significant operational and non-financial risks for the Group and undertakes appropriate Group-wide initiatives to increase operational risk awareness towards further strengthening the culture of proactive operational and non-financial risk management.
The GONFR manages the Group’s crime, professional indemnity, cyber and D&O liability insurance policies. Furthermore, it operates and safeguards the implementation of the governance framework for all products and services, throughout their lifecycle for the Group, according to which, financial and nonfinancial risks are assessed, also taking into account their financial performance. The GONFR uses communication and training as tools to address proactive risk management, and to foster a strong operational and non-financial risk culture across the Group.
The GONFR participates in Bank's committees, as specified in the appropriate Group Governance documents. The Unit submits quarterly reports to the Board Risk Committee / Audit Committee on operational and non-financial risk matters.
The main responsibilities of the GMCR are to identify, measure, monitor, control and report the following types of risks: market risk, counterparty and issuer risk, liquidity and funding risk, and interest rate risk from banking book activities (IRRBB).
In the context of monitoring these risk types, the GMCRS additionally:
The Sector submits monthly reports to the G-ALCO, Management Risk Committee and BRC, and quarterly reports to the BoD.
The Head of the Unit participates in Bank Committees, as specified in the relevant Group Governance documents, is a member of the G-ALCO and acts as the Secretary to the Global Markets Credit Committee.
The main responsibilities of the GCRCAC are to:
The Head of the Unit participates in Bank committees, as specified in the appropriate Group Governance documents.
The scope of the GMVG is to:
The Head of the Unit and the Heads of the Unit Directorates participate in Bank committees, as specified in the appropriate Group Governance documents.
The scope of the GRMSPO&SR is to provide support in developing the Group’s Risk Management Strategy, monitoring its implementation, as well as coordinating and following on key strategic risk management projects.
The Group Sustainability Risk (GSR) Unit has the overall responsibility for overseeing, monitoring, and managing sustainability risks. More specifically, the GSR:
The SRRP has a coordinating and supervisory role for projects and initiatives associated with the perimeter of the SSM and the SRM, and constitutes the Bank’s primary link with them, aiming to respond efficiently to regulatory requirements, and actively and effectively manage the relationship with supervisory authorities.
The Head of the SRRP acts as a principal advisor to the Group CFO and the Group CRO on SSM/SRM issues and related initiatives. The SRRP works closely with the Bank’s Group Finance, Group Risk Management, Group Strategy and Group IT units, and disseminates regulatory requirements to the Bank’s units and subsidiaries as appropriate.
The Head of the Unit participates in Bank committees, as specified in the appropriate Group Governance documents, and acts as Secretary to the Risk Management Executive Committee and the Bank’s Resolution Planning Committee.
The RA Unit is mandated to develop and deploy advanced analytics solutions through the use of big-data sources and innovative modelling techniques, such as machine learning.
The underpinning objective of these solutions is to deliver risk-reward improvements across the credit cycle: from credit origination through to account management and collections.
Furthermore, the RA aims to improve the operational efficiency of the credit origination process, by enabling automation and digital transformation. These advanced analytics solutions also aim to optimise business decisions as well as product pricing.
The scope of the RMEC is to:
For information on the Bank’s risk management, refer to the consolidated Pillar 3 report.
In 2023 Eurobank demonstrated robust operating performance in terms of profitability, asset quality and capital strength. Review the financial figures of Eurobank Holdings, the direct economic value generated and distributed by Eurobank SA, and the process for assigning the statutory audit of the Group’s financial statements to external auditors.
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The operating performance of Eurobank in 2023 was robust and above the initial guidance1 in terms of profitability, asset quality and capital strength. Specifically:
| P and L | 2023 | 2022 | Change |
|---|---|---|---|
| Net Interest Income | €2,174m | €1,480m | 46.9% |
| Net Fee and Commission Income | €544m | €522m |
4.2% |
| Total Operating Income | €2,803m | €2,716m | 3.2% |
| Total Operating Expenses | €902m | €857m | 5.2% |
| Core Pre-Provision Income | €1,816m | €1,145m | 58.6% |
| Pre-Provision Income | €1,902m | €1,859m | 2.3% |
| Loan Loss Provisions | €345m | €276m | 24.7% |
| Core Operating Profit | €1,471m | €869m | 69.4% |
| Adjusted Net Profit | €1,256m | €1,178m | 6.6% |
| Net Profit | €1,140m | €1,347m | -15.4% |
| Balance Sheet | 2023 | 2022 |
|---|---|---|
| Consumer Loans | €3,436 | €2,752m |
| Mortgages | €9,942m | €10,039m |
| Small Business Loans | €3,484m | €3,720m |
| Large Corporates and SMEs | €21,481m | €20,448m |
| Senior and Mezzanine Notes | €4,454m | €4,911m |
| Total Gross Loans | €42,788m | €41,826m |
| Total Customer Deposits | €57,442m | €55,609m |
| Total Assets | €79,781m | €81,474m |
| Financial Ratios | 2023 | 2022 |
|---|---|---|
| Net Interest Margin | 2.75% | 1.91% |
| Cost to Income | 32.2% | 31.6% |
| NPEs Ratio | 3.5%3 | 5.2% |
| Provisions / NPEs | 86.4%3 | 75.5% |
| Provisions to average Net Loans | 0.85% | 0.71% |
| Return on Tangible Book Value (adjusted net profit) | 18.1% | 11.4% |
| Earnings per Share | €0.31 | €0.36 |
| Common Equity Tier 1 (CET1) | 17.0%4 | 16.0% |
| Total Capital Adequacy (CAD) | 20.2%4 | 19.0% |
GRI 201-1
| Direct economic value generated and distributed in 2023 (€ million) Eurobank SA | |
|---|---|
| Direct economic value generated | €4,113 |
| Revenues | €4,394 |
| Impairment losses relating to loans and advances to customers | €282 |
| Economic value distributed | |
| Operating expenses of which: | €274 |
| Sponsorships | €17 |
| Wages and employees benefits (Staff costs) of which: | €279 |
| Wages, salaries and performance remuneration | €235 |
| Medical, Retirement and other benefits | €44 |
| Voluntary Exit schemes and other related costs | €19 |
| Other restructuring costs | €6 |
| Interest Expense and banking fee and commission expense | €2,337 |
| Other impairment losses and provisions | €165 |
| Payments to Hellenic public excluding payroll tax | €78 |
| Payments to government | €17 |
| Social security contributions | €44 |
| Contributions to resolution and deposit guarantee funds | €17 |
| Economic value distributed | €3,158 |
| Economic value retained | €955 |
| Income Tax | €161 |
| Payroll and other solidarity taxes | €42 |
| Economic Value retained including employee and income taxes | €752 |
The Annual General Meeting of shareholders that convened on 20.07.2023 assigned the statutory audit of the Eurobank Holdings annual financial statements (separate and consolidated) for the 2023 fiscal year to KPMG Certified Auditors SA, which appointed:
To safeguard the independence of external auditors, the Eurobank Holdings Group has been consistently implementing a:
As part of the policy on external auditors’ independence, the rules concerning the service provided by external auditors are founded on 3 key principles, the violation of which could affect the auditors’ independence:
Regarding the tendering policy that the Eurobank Holdings Group follows to assign the statutory audit of its financial statements to external auditors, the main objective is to define the framework by which the Eurobank Holdings Group receives offers from candidate auditing firms on a regular basis, to ensure that:
