ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
31 DECEMBER 2024
According to
Article 4 of the Law 3556/2007
Table of Contents
A.
Statements of members of the Board of Directors
B.
Report of the Directors for the year ended 31 December 2024
Attachments to the Report of the Directors
I.
Corporate Governance Statement
II.
Sustainability Statement
C.
Audit Committee Activity Report
D.
Financial Statements for the year ended 31 December 2024
I.
Consolidated Financial Statements of the Company
II.
Financial Statements οf the Company
E. Auditor’s reports
I.
Ιndependent Auditor’s Report
II.
Independent Auditor’s Limited Assurance Report on
Sustainability Statement
Statements of Members of the Board of Directors
(according to the article 4 par. 2 of the Law 3556/2007)
We declare that to the best of our knowledge:
●
been prepared in accordance with the applicable set of accounting standards, honestly and
accurately reflect the assets and liabilities, the equity and the annual results of operations
of Eurobank Ergasias Services and Holdings S.A., as well as the companies included in the
consolidation considered as a whole, and
●
business and the position of Eurobank Ergasias Services and Holdings S.A., as well as the
companies included in the consolidation considered as a whole, along with a description of
the main risks and uncertainties they face. The sustainability statement attached to the
report of the Board of Directors has been prepared in accordance with the sustainability
reporting standards referred to in Article 154A of Law 4548/2018 and with the specifications
approved pursuant to paragraph 4 of Article 8 of Regulation (EU) 2020/852 of the European
Parliament and of the Council of 18 June 2020, establishing a framework to facilitate
sustainable investments and amending Regulation (EU) 2019/2088.
Athens, 7 March 2025
Georgios P. Zanias
I.D. No AI – 414343
CHAIRMAN
OF THE BOARD OF
DIRECTORS
Fokion C. Karavias
I.D. No ΑΙ - 677962
CHIEF EXECUTIVE
OFFICER
Stavros E. Ioannou
I.D. No A - 00546500
DEPUTY
CHIEF EXECUTIVE
OFFICER
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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The directors present their report together with the financial statements for the year ended 31 December 2024.
General information
Eurobank Ergasias Services and Holdings S.A. (the Company or Eurobank Holdings) is a holding company listed on the Athens
Exchange, owning 100% of the share capital of Eurobank S.A. (the Bank). Eurobank Holdings and its subsidiaries form a group
(Group), consisting mainly of Eurobank S.A. group, that being the Bank and its subsidiaries. The Company’s operations
principally relate to the strategic planning of the non-performing loans management and the provision of services to the
Group entities and third parties.
Financial Results Review and Outlook
In 2024, despite the challenging international environment, the macroeconomic backdrop was supportive in Greece and the
other countries of substantial presence. The Group, following the full consolidation of Cyprus’ Hellenic Bank from the third
quarter of 2024, grew the size of its balance sheet, expanded further its business and continued its solid performance across
most areas. It enhanced its core profitability, maintained its resilient capital position and asset quality, strengthened its
liquidity, rewarded its shareholders and contributed to the economies and the society.
As at 31 December 2024 total assets increased by €21.4bn to €101.2bn (Dec. 2023: €79.8bn), of which €18bn related to Hellenic
Bank group, with gross customer loans amounting to €52.3bn (Dec. 2023: €42.8bn) and investment securities reaching
€22.2bn (Dec. 2023: €14.7bn). Out of the total loan portfolio, €30.5bn has been originated from Greek operations (Dec. 2023:
€28.1bn), €17.4bn from international operations (Dec. 2023: €10.3bn), of which €5.8bn related to Hellenic Bank and €4.4bn
refer to notes from securitizations of loans originated by the Group (Dec. 2023: €4.5bn). Business (wholesale and small
business) loans stood at €30.9bn (Dec. 2023: €25bn) and accounted for 59% of total Group loans, while loans to households
reached €17bn (Dec. 2023: €13.4bn), of which 73% is the mortgage portfolio and the rest are consumer loans. Group deposits,
reached €78.6bn (Dec. 2023: €57.4bn) with those from Greek operations amounting to €43.3bn (Dec. 2023: €40bn), while
international operations contributed with €35.3bn of which €15.7bn related to Hellenic Bank (Dec. 2023: €17.5bn). As a result,
the (net) loan–to–deposit (L/D) ratio stood at 64.8% for the Group (Dec. 2023: 72.3%) and at 77.8% for Greek operations (Dec.
2023: 78.3%). In December 2024, the Group fully repaid its secured borrowing under the TLTRO III refinancing program of the
European Central Bank (ECB) (Dec. 2023: €3.8bn). During the year, as part of its medium-term strategy to meet the Minimum
Requirements for Eligible Own Funds and Eligible Liabilities (MREL), the Group proceeded with the issue of €2.3bn in senior
preferred notes and €0.3bn in Tier II notes, thereby increasing its total debt securities in issue to €7.1bn (31 December 2023:
€4.8bn). In early 2025, the Company completed the issuance of €0.6bn Tier II notes including the issued notes of €189m
offered for exchange for the Hellenic Bank’s outstanding Tier 2 notes, while the Bank completed an issuance of €350m senior
preferred notes through a private placement (notes 4 and 34 of the consolidated financial statements). The Group Liquidity
Coverage ratio (LCR) increased to 188.2% (31 December 2023: 178.6%).
Pre-provision Income (PPI) amounted to €2,242m or €2,170m excluding a) the €99m gain arising from the acquisition of the
additional shareholding in Hellenic Bank in June 2024 and b) the €27m estimated cost for contribution to the school
renovations program (2023: €1,999m or €1,902m excluding the €111m gain on investment in Hellenic Bank (Cyprus) and the
€14m contribution to restoration initiatives after natural disasters). The core pre-provision income (Core PPI) increased by
15.7% year-on-year (or 3.8% excluding €217m related to Hellenic Bank) to €2,074m or €2,101m excluding the €27m contribution
as above (2023: €1,802m or €1,816m excluding the €14m contribution as above). Net interest income (NII) grew by 15.3% (or
1.8% excluding €295m related to Hellenic Bank) to €2,507m (2023: €2,174m), primarily attributable to the Hellenic Bank
consolidation, the higher average interest rates, the loan growth and the increased positions in investment bonds partly
offset by higher debt issued and deposits cost. Net interest margin (NIM) stood at 2.73% (2023: 2.75%) with the fourth quarter
reaching 2.70%. Fees and commissions expanded by 22.4% (or 13.5% excluding €48m related to Hellenic Bank) to €666m
(2023: €544m), of which banking fees and commissions by 25.5% (or 16.5% excluding €40m related to Hellenic Bank) to €561m
(2023: €447m), mainly due to the increased fees from network operations, lending activities and asset management. Fees
and commission over assets accounted for 73bps (2023: 69bps). Operating expenses increased by 18.8% (or 4.8% excluding
the €127m expenses from Hellenic Bank) to €1,071m excluding the €27m contribution as above (2023: €902m, excluding the
€14m contribution as above) due to the higher staff costs, the inflationary pressures and the higher IT investments, partly
offset by lower contributions to resolution and deposit guarantee funds. Costs from international operations amounted to
€408m (2023: €258m), while in Greece increased by 3% to €663m (2023: €644m). The cost to income (C/I) ratio for the Group
reached 33%, excluding the €99m gain and the €27m contribution, as mentioned above (2023: 32.2%, excluding the €111m
gain and the €14m contribution as above), while the international operations C/I ratio stood at 32.4% (2023: 33.1%). The
respective cost to core income
ratio for the Group stood at 33.8% (2023: 33.2%).
Trading and other activities recorded net income of €168m (2023: €196m net income) of which a) €84m trading gains mainly
attributable to fair value changes of derivatives used to hedge dynamically the interest rate risk of fixed rate loan portfolios
and non-maturing deposits, including realized gains/losses from the derivatives’ terminations (macro hedging) (2023: €86m
gain), b) €13m gains on sale of investment bonds at FVOCI net of hedging (2023: €57m gain) and c) €61m net other income,
including the €99m gain on the additional investment of Hellenic Bank, as mentioned above (2023: €68m income, including
the €111m gain on investment in Hellenic Bank) (notes 9 and 10 to the consolidated financial statements).
During the year, the Group’s NPE formation was positive by €222m (fourth quarter 2024: €47m positive), (2023: €138m
positive). In total, the Group’s NPE stock stood at €1.5bn, excluding the €0.2bn NPE of Hellenic Bank covered by the Asset
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Protection Scheme (APS) (31 December 2023: €1.5bn) driving the NPE ratio to 2.9% (31 December 2023: 3.5%). The loan
provisions (charge), excluding the €16m impairment release related to project Leon, reached €319m and corresponded to
0.69% of average net loans (2023: €412m or €345m, excluding the loss recorded for projects ‘Leon’ and ‘Solar’ which
corresponded to 0.85% of average net loans), while the NPE coverage ratio improved to 88.4% (31 December 2023: 86.4%).
As a result, “net” NPEs amounted to €177m (31 December 2023: €206m).
Furthermore, the Group recognized in 2024 other impairments, risk provisions and restructuring costs amounting to €228m
(2023: €133m), of which a) €161m cost for Voluntary Exit Schemes (VES) and related expenses mainly referring to the scheme
that was launched in February 2024 for eligible units in Greece, b) €19m impairment on computer hardware and software
(notes 26 and 28 to the consolidated financial statements), c) €21m impairment on real estate properties, including the €9m
remeasurement loss upon classification of the subsidiary IMO Property Investments Bucuresti S.A. as held for sale, and d)
€12m impairment losses on investment bonds (note 12 to the consolidated financial statements). Moreover, it recorded an
additional provision of € 10m (€7.1m net of tax) in relation to the sale of a Bank’s former subsidiary, previously presented as
a discontinued operation, based on specific indemnity clauses in the relevant Sale Purchase Agreement (note 30 to the
consolidated financial statements). The Group’s share of associates/JVs results amounted to €161m income, of which €133m
income represents the share of results of Hellenic Bank group which was accounted for as an associate until 30 June 2024
(note 24 to the consolidated financial statements). In accordance with the Pillar Two legislation, effective as of 1 January
2024, the Group has recognized a current tax expense of €21.6m related to the top up tax applicable on the profits earned
for its operations in Bulgaria and Cyprus (note 13 to the consolidated financial statements).
Profit or Loss
Overall, in 2024, the profit attributable to shareholders amounted to €1,448m (2023: €1,140m profit), as set out in the
consolidated income statement. The adjusted net profit, excluding a) the €121m restructuring costs (after tax), mainly related
to VES, b) the €99.5m gain arising from the acquisition of the additional 26.28% shareholding of Hellenic Bank as above, c)
the €19m Bank’s contribution (after tax) for the Greek State’s school renovations program, d) the €11m impairment release
(after tax) relating to the project “Leon” and e) the €7m net loss from discontinued operations, amounted to €1,484m (2023:
€1,256m). The contribution of international operations to the adjusted net profit amounted to €709m (2023: €468m profit),
including €275m net profit related to Hellenic Bank group, which has been fully consolidated from the third quarter of 2024.
Based on the Group’s profits for 2024, the Basic Earnings per Share (EPS) reached €0.40 (2023: €0.31) and the Return
(adjusted profit) on Tangible Book Value (RoTBV) amounted to 18.5% (2023: 18.1%).
Going forward, the Group pursues its key financial objectives outlined in the business plan for the period 2025-2027, including
a) maintaining a sustainable 15% RoTBV in a lower interest rates environment, following a substantial increase of equity, and
b) generating sufficient organic capital to support business growth, maintain capital buffers, reward shareholders by
increasing the dividend payout ratio from 30% in 2024 to 50%, subject to regulatory approval, over the next years and finance
strategic initiatives, mainly through the following initiatives and actions:
a)
Maintain high NII mainly driven by the organic loan growth in all three core markets and across segments
(households and business) and the increase in bond positions, which may offset the pressures from the ongoing
decrease in ECB rates, the increasing competition for good quality corporate customers, and the issuance of MREL
eligible senior and Tier II notes,
b)
Strengthening core markets presence and increasing earnings and volumes contribution by international activities,
which will be further enhanced by the full consolidation of Hellenic Bank in Cyprus for the full year from 2025 (six
months in 2024) and its planned merger with Eurobank Cyprus (subject to customary approvals) which will allow the
synergies realization over the next years,
c)
Growth of fee and commission income in a number of fee business segments such as new lending, network, asset
management, bancassurance and wealth management activities,
d)
Initiatives for pursuing further operating efficiency, cost containment of “run the bank” activities, and proceeding
with further simplification and digitalization in Greece and abroad, maintaining the annual increase of the operating
expenses at a mid-single digit %, considering the higher staff costs including the talent retention cost, the
inflationary pressures, and the “grow the bank” needs including higher IT investments,
e)
Maintaining low NPE ratios in all core markets in which the Group has a presence, which may be challenged mainly
by the high interest rates burden on households’ disposable income and corporate profit margins,
f)
Major transformation initiatives introduced in the context of the Group’s transformation plan “Eurobank 2030”,
g)
Support the green transition and financial inclusion through the further implementation of the Environment, Social
and Governance (ESG) criteria in all Group’s activities and processes.
The geopolitical and macroeconomic risks, including the sustained - albeit easing - inflationary pressures, set a number of
challenges to the achievement of the Group’s 2025-2027 Business Plan, mainly related with growth potential, lending
margins, deposit rates, asset quality and operating cost. The headwinds coming from the geopolitical upheaval and the
macroeconomic environment are likely to be mitigated by:
a)
The efficient mobilization of the EU funding, mainly through the Recovery and Resilience Facility (RRF),
b)
The substantial pipeline of new investments,
c)
The decrease of the unemployment rate in 2025 at single digit levels in Greece, close to historical lows,
d)
The positive developments in the tourism sector and the strong investment inflows,
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e)
The upgrade of the Greek sovereign to investment grade by four out of the five Eurosystem-approved External Credit
Assessment Institutions,
f)
The growth of GDP in our core markets at levels higher that EU average.
(see also further information in the section “Macroeconomic Outlook and Risks”)
Capital adequacy
As at 31 December 2024, the Group’s Total Regulatory Capital amounted to €9.8bn (31 December 2023: €8.4bn) and
accounted for 19.5% (total CAD) of Risk Weighted Assets (RWA) (Dec. 2023: 19.4%), compared to the CAD Overall Capital
Requirements (OCR) ratio of 15.16%. Respectively, the Common Equity Tier 1 (CET1) stood at 16.8% of RWA (Dec. 2023: 16.9%)
compared to the CET1 OCR ratio of 10.41% or 12.45%, including the Additional Tier 1 (AT1) capital shortfall. Pro-forma for the
accrual for dividend distribution from financial year 2024 profits (subject to regulatory approval), the completion of the
project “Solar”, as well as the confirmation by ECB of the significant risk transfer (SRT) recognition for the “Leon” loan portfolio
and a new synthetic securitization (project “Wave VI”) (note 20 of the consolidated financial statements), the total CAD and
CET1 ratios would be 18.5% and 15.7% respectively.
As at 31 December 2024, the Bank’s MREL ratio at consolidated level stands at 28.22% of RWAs (Dec. 2023: 24.91%), higher
than the interim non-binding MREL target of 25.62%, which is applicable from January 2025. Pro -forma with the completion
of the project “Solar”, projects “Leon” and “Wave VI”, the accrual for dividend distribution from financial year 2024 profits
(subject to regulatory approval) and for the new issuances of the Company and the Bank in early 2025 (see above), the
Bank’s MREL ratio at consolidated level stands at 29.37% (note 4 to the consolidated financial statements).
Project “Wave”
In the context of the Group’s initiatives for the optimization of its regulatory capital, in July 2024 the Bank proceeded with
the execution of another synthetic risk transfer transaction (project “Wave V”) in the form of a financial guarantee, providing
credit protection over the mezzanine loss of a portfolio of performing SME and Large Corporate loans amounting to €1.1bn,
which resulted in a capital benefit of 25 bps to Eurobank Holdings Group’s CAD ratio. In addition, in December 2024, another
synthetic risk transfer transaction was executed (project “Wave VI”), in the form of credit linked notes (“CLN”), where the Bank
issued a CLN of €80m that provides credit protection over the mezzanine loss of a portfolio of performing SME and Large
Corporate loans amounting to €1.1bn. The Wave VI transaction is expected to contribute 18bps to Eurobank Holdings Group’s
CET1 ratio.
Pursuant to the Regulation (EU) No 575/2013 (CRR), the deferred tax assets (DTAs) that rely on future profitability and exceed
certain limits shall be deducted in the calculation of the CET1 capital. This deduction should be applied gradually by 2025.
The enactment of the article 27A of Law 4172/2013, as in force, provided for the Greek credit institutions that the eligible DTAs
are accounted on a) the losses from the Private Sector Involvement (PSI) and the Greek State Debt Buyback Program and b)
on the sum of (i) the unamortized part of the crystallized loan losses from write-offs and disposals, (ii) the accounting debt
write-offs and (iii) the remaining accumulated provisions and other losses in general due to credit risk recorded up to 30 June
2015 and can be converted into directly enforceable claims (tax credits) against the Greek State, provided that the Bank’s
after tax accounting result for the period is a loss. This legislative provision enabled the Greek credit institutions, including
the Bank, not to deduct the eligible DTAs from CET1 capital but recognise them as a 100% weighted asset, with a positive
effect on the capital position.
A potential change in the regulatory treatment of eligible DTAs as tax credits may have an adverse effect in the Group’s
capital position.
As at 31 December 2024, the Bank’s eligible DTAs for conversion to tax credits (DTC) amounted to €3,022m (Dec.2023:
€3,212m), standing at 36% of CET 1 capital as of 31 December 2024 (note 4 and 13 to the consolidated financial statements).
In line with the Bank's initiative to enhance the quality of its regulatory capital, the amortisation of DTC will be accelerated
for regulatory purposes starting from 2025, aiming at its elimination by 2033.
2024 Cyber Resilience Stress Test
During the first half of 2024 ECB conducted a cyber resilience stress test on 109 directly supervised banks, including Eurobank.
The aim of the exercise was to assess how banks respond to and recover from a cyberattack, rather than their ability to
prevent it. In particular, under the stress test scenario, the cyberattack succeeds in disrupting banks’ daily business
operations. Banks then tested their response and recovery measures, including the activation of emergency procedures and
contingency plans and the restoration of normal operations. ECB assessed the extent to which banks can cope under such a
scenario.
This stress test exercise does not have an impact on capital through the Pillar 2 guidance (P2G), which is a bank-specific
capital recommendation on top of the binding capital requirements. The results of the exercise feeds into the 2024
Supervisory Review and Evaluation Process (SREP) performed by the ECB. Overall, Eurobank demonstrated a very good
performance in the exercise.
3
The ‘Overall capital requirement (OCR) is the sum of the total SREP capital requirement (TSCR) and the combined buffer requirement (CBR).
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2025 EU - wide stress test
The EU-wide stress test exercise is carried out on a sample of banks covering broadly 75% of the banking sector in the euro
area, each non-euro area EU Member State and Norway, as expressed in terms of total consolidated assets as of end 2023.
To be included in the sample, banks have to have a minimum of EUR 30 bn total assets.
As per the 2025 EU-Wide Stress Test Methodological Note (published on 11 November 2024, footnote 92), Eurobank Ergasias
Services and Holdings S.A. has been excluded from the sample of the EU-wide stress test exercise because of a major
acquisition (Hellenic Bank).
Initiation of the merger process between Eurobank Ergasias Services and Holdings S.A. and Eurobank S.A
On 18 December 2024, the Board of Directors of Eurobank Holdings decided the initiation of the merger process of Eurobank
Holdings with the Bank through absorption of the former by the latter, in order that operational efficiencies and a leaner
group structure be achieved. The merger is not expected to have any material effect on the Group’s financial position and
will be completed subject to all necessary by Law approvals (note 23.3 to the consolidated financial statements).
International Operations
The Group has a significant presence in three countries apart from Greece. In Cyprus, Eurobank Cyprus Ltd (Eurobank Cyprus)
and Hellenic Bank Public Company Ltd (Hellenic Bank) (see below) operate in total a network of 71 branches, business and
private banking centres. Specifically, Eurobank Cyprus has five main pillars of business namely, Wealth & Asset Management,
Corporate & Investment Banking, International Business Banking, Affluent Banking and Global Markets, while Hellenic Bank
group provides a wide range of banking and financial services, which include financing, investment, insurance, custodian and
factoring services. In Luxembourg, Eurobank Private Bank Luxembourg S.A. in parallel to its operations in Luxembourg,
operates a branch in London and in Athens, and offers products and services in Private Banking, Wealth Management &
Investment Fund Services, as well as selected Corporate Banking services. In Bulgaria, Eurobank Bulgaria AD (Postbank), is a
fully fledged multi service bank, holding strong positions in retail and wholesale banking, offering a wide range of products
and services, through a network of 200 branches and business centres.
The Company’s subsidiaries operate with transparency, build credibility, and apply modern corporate governance practices.
A customer centric approach has been adopted and they are constantly evolving and adapting to a demanding environment
and aiming at a sustainable development.
International activities are on a Transformation orbit for advancing the technological capabilities with state-of-the-art
systems and implementation of cutting-edge digital services, aiming to meet the demanding needs of our clients and excel
customer experience.
International activities are a core competitive advantage for the Group, with significant contribution to its results. Their vision
and strategy ensure responsiveness to challenges, growth and profitability while promoting sustainable prosperity in the
local communities, creating value for their clients, employees, shareholders, and the society at large. Furthermore, the Group
is reviewing the potential of expanding to new markets, aiming to boost business growth via attracting new clients.
Hellenic Bank Public Company Ltd, Cyprus (“Hellenic Bank”)
Hellenic Bank Public Company Ltd (“Hellenic Bank”) a financial institution based in Cyprus and listed in the Cyprus Stock
Exchange was accounted for as a Group’s associate under the equity method from April 2023 until 30 June 2024 (note 24 to
the consolidated financial statements). As a result of the agreements the Bank had entered into with certain of Hellenic
Bank’s shareholders since August 2023, on 4 June 2024, the Bank announced that, following the receipt of the relevant
regulatory approvals, acquired an additional 26.1% holding in Hellenic Bank (“Transaction”) for a total consideration of €
275.7m. Following the aforementioned Transaction, pursuant to the Takeover Bids Law of 2007 of the Republic of Cyprus,
L.41(I)/2007 as amended (“Law”), the Bank also announced the submission of a Mandatory Takeover Bid (“Takeover Bid”) to
all shareholders of Hellenic Bank for the acquisition of up to 100% of the issued share capital of Hellenic Bank. The
consideration offered by the Bank was €2.56 per share, paid in cash to all the shareholders who would accept the Takeover
Bid during the period from 1 July until 30 July 2024. Furthermore, within June 2024 the Bank proceeded with the acquisition
of an additional 0.18% holding in Hellenic Bank, for a total consideration of € 2m, i.e at a price of € 2.56 per share. Accordingly,
as of 30 June 2024 the Bank’s participation percentage in Hellenic Bank reached 55.48%.
Despite being the holder of over 50% of Hellenic Bank’s shares, until the expiration of the Takeover Bid acceptance period,
and pursuant to the Law, Eurobank as the offeror, its nominees and persons acting in concert with it could not be appointed
to the Board of Directors of Hellenic Bank, nor they could exercise, or procure the exercise of, the votes attaching to any
shares they held in Hellenic Bank. In addition, during the period when they became aware that a bid was imminent and until
expiration of the Takeover Bid acceptance period, the Board of Directors of Hellenic Bank could not without prior
authorization of the general meeting of shareholders, take any action which could result in the frustration of the Takeover
Bid.
On 30 July 2024, the acceptance period for the Takeover Bid expired, therefore the restrictions imposed by the Law on the
Bank’s ability to exercise its voting rights no longer applied, and Eurobank since then has been able to exercise its rights in
full. Based on the above and considering the relevant provisions of the Cyprus’ legal framework including the Companies Law
Cap. 113, and Hellenic Bank’s articles of association in relation to the exercise of shareholders’ rights, including the timing for
convening a general meeting of the shareholders, it was assessed that the Group acquired control over Hellenic Bank group
within July. Accordingly, Hellenic Bank and its subsidiaries were included in the Company’s consolidated financial statements
from the beginning of the third quarter of 2024 using the most recent available published information. On 7 August 2024,
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the Bank announced that after the final review of the Acceptance and Transfer Forms, the total percentage of acceptance
of the Takeover Bid reached 0.481%, giving Eurobank total participation of 55.962% in the issued share capital of Hellenic
Bank.
Furthermore, in November 2024, the Bank announced that it has entered into share purchase agreements with certain
shareholders of the Hellenic Bank, pursuant to which, it has agreed to acquire an additional total holding of 37.51% in the
entity for a total consideration of ca. € 750m, corresponding to € 4.843 per share. As of 31 December 2024, the above
transactions were subject to regulatory approvals and upon their completion, Eurobank’s total holding in Hellenic Bank
reaches 93.47%.
Moreover, in accordance with the provisions of the Takeover Bids Law of 2007 in Cyprus (“Law”), the Bank, following the
completion of the above-mentioned transactions has the obligation to proceed to a tender offer for the remaining
outstanding shares of Hellenic Bank for at least the same price i.e. € 4.843 per share, whereas pursuant to Article 36 of the
same law it is able, after completion of the said tender offer and given that it will hold more than 90% votes, to require all
the holders of the remaining securities to sell those securities. On those grounds, the Bank announced in November 2024
that it will exercise its squeeze-out right to acquire any outstanding shares of Hellenic Bank and take all necessary steps for
the delisting of Hellenic Bank's shares from the Cyprus Stock Exchange.
More recently, on 11 February 2025, the Bank announced that following the receipt of the relevant regulatory approvals, it
completed the acquisition of the additional holding of 37.51% in Hellenic Bank, as per the aforementioned agreements of the
Bank with certain of Hellenic Bank’s. shareholders. Following that and pursuant to the provisions of the Takeover Bids Law in
Cyprus, the Bank also announced the submission of a Mandatory Takeover Bid for the acquisition of up to 100% of the issued
share capital of Hellenic Bank (“Takeover Bid”). Further to the above, on 6 March 2025 the Bank announced that on 5 March
2025 the Cyprus Securities and Exchange Commission (the “CySEC”) approved the Takeover Bid Document and authorised
its publication. Pursuant to the Takeover Bid Document, the consideration offered to the shareholders of Hellenic Bank who
will accept the Takeover Bid is € 4.843 per share paid in cash. The acceptance period of the Takeover Bid commences on 11
March 2025 and ends on 9
th
Detailed information in relation to Hellenic Bank acquisition is provided in note 23.2 to the consolidated financial statements.
Risk management
The Group acknowledges that taking risks is an integral part of its operations in order to achieve its business objectives.
Therefore, the Group’s management sets adequate mechanisms to identify those risks at an early stage and assesses their
potential impact on the achievement of these objectives.
Due to the fact that economic, industry, regulatory and operating conditions will continue to change, risk management
mechanisms are set in a manner that enable the Group to identify and deal with the risks associated with those changes.
The Group’s structure, internal processes and existing control mechanisms ensure both the independence principle and the
exercise of sufficient supervision.
The Group's Management considers effective risk management as a top priority, as well as a major competitive advantage,
for the organization. As such, the Group has allocated significant resources for upgrading and maintaining its policies,
methods and infrastructure up to date, in order to ensure compliance with the requirements of the European Central Bank
(ECB) and of the Single Resolution Board (SRB), the guidelines of the European Banking Authority (EBA) and the Basel
Committee for Banking Supervision as well as the best international banking practices. The Group implements a well-
structured credit approval process, independent credit reviews and effective risk management policies for all material risks
it is exposed to, both in Greece and in each country of its international operations. The risk management policies
implemented by the Group are reviewed on a regular basis.
Risk culture is a core element of the organisation. 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 co-ordination of risk taking across their business. Ongoing education, communication and awareness takes place
via dedicated learning programs, monthly meetings, sharing of best practices and other initiatives. The Group has also a
policy in place to address any risks associated with the introduction, significant modifications and periodic monitoring of its
products and services.
The amount of risk which the Group is willing to assume in the pursuit of its strategic objectives is articulated via a set of
quantitative and qualitative statements for risks assessed as material, that are described in the Group’s Risk Appetite
Framework. The objectives are to support the Group’s business growth, balance a strong capital position with higher returns
on equity and to ensure the Group’s adherence to regulatory requirements. The Risk Appetite, that is clearly communicated
throughout the Group determines risk culture and forms the basis on which risk policies and risk limits are established at
Group and regional level. Aiming to identify relevant and material risks the Bank maintains a well-defined Risk Identification
and Materiality Assessment (RIMA) Framework. The identification and the assessment of all risks is the cornerstone for the
effective Risk Management. The Group aiming to ensure a collective view on the risks linked to the execution of its strategy,
acknowledges the new developments at an early stage and assesses the potential impact.
The Board Risk Committee (BRC) is a committee of the Board of Directors (BoD) and its task is to advise and support the
BoD regarding the monitoring of Group’s overall actual and future risk appetite and strategy, taking into account all types
of risks to ensure that they are in line with the business strategy, objectives, corporate culture and values of the institution.
The BRC assists the BoD in overseeing the implementation of Group’s risk strategy and the corresponding limits set. It also
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oversees the implementation of the strategies for capital and liquidity risk management as well as for all material risks, such
as credit, market, IRRBB, sustainability risks and non-financial risks such as operational, reputational conduct, legal, cyber,
outsourcing, in order to assess their adequacy against the approved risk appetite limits. The BRC consists of five (5) non-
executive directors, meets at least 10 times per year and reports to the BoD on a quarterly basis and on ad hoc instances if
it is needed.
The Management Risk Committee (MRC) is a management committee established by the Chief Executive Officer (CEO) and
its main responsibility is to oversee the risk management framework of the Group. As part of its responsibilities, the MRC
facilitates report ing to the BRC on the range of risk-related topics under its purview, including sustainability risks. The MRC
proactively supports the Group Chief Risk Officer, Chairman of the MRC, to identify material risks, in addition to those
identified independently by the Group CRO and the Group Risk Management, and to promptly escalate them to the BRC
and assists the Group CRO in ensuring that the necessary policies and procedures are in place to prudently manage risk and
to comply with regulatory requirements.
The Group’s Risk Management which is headed by the Group Chief Risk Officer (GCRO), operates independently from the
business units and is responsible for the identification, assessment, monitoring, measurement and management of the risks
that the Group is exposed to. It comprises the Group Credit (GC), the Group Credit Control (GCC), the Group Credit Risk
Capital Adequacy Control (GCRCAC), the Group Market and Counterparty Risk (GMCR), the Group Operational and Non-
Financial Risks (GONFR), the Group Model Validation and Governance (GMVG), the Group Risk Management Strategy
Planning Operations & Sustainability Risk (GRMSPO&SR), the Supervisory Relations and Resolution Planning (SRRP), and
the Risk Analytics (RA) Units.
As part of its overall system of internal controls, Eurobank Ergasias Services and Holdings S.A. has engaged in a Service Level
Agreement (SLA) with Eurobank S.A. (the banking subsidiary of the Group) in order to receive supporting and advisory services
in all areas of risk management undertaken by the Group.
The Group applies the elements of the Three Lines of Defense model for the management of all types of risk. The Three Lines
of Defense Model enhances risk management and control by clarifying roles and responsibilities within the organization.
Under the oversight and direction of the Management Body, the responsibilities of each of these lines of defense are:
Line 1 - Own and manage risk and controls. The front line business and operations are accountable for this responsibility as
they own the rewards and are the primary risk generators,
Line 2 - Monitor risk and controls in support of Executive Management, providing oversight, challenge, advice and group-
wide direction. These mainly include the Risk and Compliance Units,
Line 3 - Provide independent assurance to the Board and Executive Management concerning the effectiveness of risk and
control management. This refers to Internal Audit.
Furthermore, the Group is in the process of aligning Hellenic Bank risk management policies and practices with those of the
Group across key risk types, following the acquisition of control in the third quarter of 2024 and in view of the completion of
the Take Over Bid process to acquire 100% of Hellenic Bank’s shares. This includes harmonizing key risk policies, standardizing
regulatory as well as internal risk reporting, and aligning risk methodologies.
The most important types of risk that are addressed by the risk management functions of the Group are:
Credit Risk
Credit risk is the risk that a counterparty will be unable to fulfil its payment obligations in full when due. Credit risk is also
related with country risk and settlement risk. Credit risk arises principally from the wholesale and retail lending activities of
the Group, as well as from credit enhancements provided, such as financial guarantees and letters of credit. The Group is
also exposed to credit risk arising from other activities such as investments in debt securities, trading, capital markets and
settlement activities. Taking into account that credit risk is the primary risk the Group is exposed to, it is very closely managed
and monitored by specialised risk units, reporting to the GCRO.
The credit review and approval processes are centralized both in Greece and in the International operations following the
“four-eyes” principle and specific guidelines stipulated in the Credit Policy Manual and the Risk Appetite Framework. The
segregation of duties ensures independence among executives responsible for the customer relationship, the approval
process and the loan disbursement, as well as monitoring of the loan during its lifecycle. The credit approval process in
Corporate Banking is centralized through the establishment of Credit Committees with escalating Credit Approval Levels,
which assess and limit to the extent possible the corporate credit risk. Rating models are used in order to calculate the credit
rating of corporate customers, reflecting the underlying credit risk. The most significant ones are the MRA (Moody’s Risk
Analyst) applied for companies -mostly- with industrial and commercial activity and the slotting rating models, used for
specialised lending portfolios (shipping, real estate and project finance) with ring-fenced transactions. Credit risk assessment
is performed by Group Credit (GC), which assesses the credit requests submitted by the Business Units, a procedure including
the evaluation of the operational and financial profile of the customer, the validation of the borrower’s rating and the
identification of potential risk factors for the Bank.
The credit review and approval processes for loans to Small Businesses (turnover up to €5m) are also centralised following
specific guidelines and applying the ‘four-eyes’ principle. The assessment is primarily based on the analysis of the borrower's
operational characteristics and financial position. The same applies for Individual Banking (consumer and mortgage loans),
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where the credit risk assessment is based on criteria related to the characteristics of the retail portfolio, such as the financial
position of the borrower, the payment behaviour, the existence of real estate property and the type and quality of securities.
The ongoing monitoring of the portfolio quality and of any deviations that may arise, lead to an immediate adjustment of
the credit policy and procedures, when deemed necessary. The quality of the Group’s loan portfolios (business, consumer and
mortgage in Greece and abroad) is monitored and assessed by the Group Credit Control (GCC) via field, desktop and
thematic reviews in order to timely identify emerging risks, vulnerabilities, compliance to credit policies and consistency in
underwriting. Furthermore, the GCC assumes oversight and supervisory responsibilities for proper operation of credit rating
and impairment models. Moreover, GCC regularly reviews the adequacy of provisions of all loan portfolios. The Unit also
formulates Group’s credit policies, reviews policies developed by other units and participates in the development of new loan
products. Finally, it monitors regulatory developments, emerging trends and best practices proposing relevant policy updates
or product enhancements when necessary. GCC operates independently from all the business units of the Bank and reports
directly to the GCRO.
The measurement, monitoring and periodic reporting of the Group’s exposure to counterparty risk (issuer risk and market
driven counterparty risk), which is the risk of loss due to the customer’s failure to meet its contractual obligations in the
context of treasury positions, such as debt securities, derivatives, repos, reverse repos, interbank placings, etc. are performed
by the Group Market and Counterparty Risk (GMCR). The Group sets limits on the level of counterparty risk that are based
mainly on the counterparty’s credit rating, as provided by international rating agencies, the product type and the maturity
of the transaction (e.g. control limits on net open derivative positions by both amount and term, sovereign bonds exposure,
corporate securities, asset backed securities, etc.). GMCR maintains and updates the limits’ monitoring systems and ensures
the correctness and compliance of all financial institutions limits with the Bank’s policies as approved by the Group’s relevant
bodies. The utilization of the abovementioned limits, any excess of them, as well as the aggregate exposure per Group’s
entity, counterparty and product type are monitored by GMCR on a daily basis. The Group from 2021 applies the new
regulatory framework for the counterparty risk from derivatives Standardised Approach for measuring counterparty credit
risk (SA-CCR).
Market Risk
The Group has exposure to market risk, which is the risk of potential financial loss due to an adverse change in market
variables. Changes in interest rates, foreign exchange rates, credit spreads, equity prices and other relevant factors, such as
the implied volatilities, can affect the Group’s income or the fair value of its financial instruments. The market risks, the Group
is exposed to, are monitored, controlled and estimated by GMCR. GMCR is responsible for the measurement, monitoring,
control and reporting of the exposure on market risks including the Interest Rate Risk and the Credit Spread Risk in the
Banking Book (IRRBB/CSRBB) of the Group. The GMCR reports to the GCRO. The exposures and the utilisation of the limits
are reported to the Board Risk Committee and to the BoD.
Market risk in Greece and International Subsidiaries is managed and monitored mainly using Value at Risk (VaR)
methodology, sensitivity and stress test analysis. VaR is a methodology used in measuring financial risk by estimating the
potential negative change in the market value of a portfolio at a given confidence level and over a specified time horizon.
The VaR that the Group measures is an estimate based upon a 99% confidence level and a holding period of 1 day and the
methodology used for the calculation is Monte Carlo simulation (full re-pricing of the positions is performed). Since VaR
constitutes an integral part of the Group's market risk control regime, VaR limits have been established for all portfolios
(trading and investment) measured at fair value and actual exposure is monitored daily by management. However, the use
of this approach does not prevent losses outside of these limits in the event of extraordinary market movements. For that
reason, the Group uses additional monitoring metrics such as: Stressed VaR, Expected Shortfall and Stress Tests. Finally, the
Group already monitors the impact from the new regulatory framework for market risk (Fundamental Review of the Trading
Book-FRTB) and monitors the evolution of the relevant capital charges until its official application (2026) based on a set of
established systems and procedures.
Interest Rate Risk in the Banking Book (IRRBB)
The IRRBB is defined as the current and the prospective risk of a negative impact to the institution’s economic value of equity,
or to the institution’s net interest income, taking market value changes into account as appropriate, which arise from adverse
movements in interest rates affecting interest rate sensitive instruments, including gap risk, basis risk and option risk.
GMCR is the unit responsible for the monitoring, control, reporting and estimation of IRRBB on a group level. Both the
Economic Value of Equity (EVE) and NII sensitivity to a number of stresses on interest rates are estimated on a periodic basis
and are compared with the approved BoD Risk Appetite Statements (RAS) thresholds. IRRBB analysis currently uses the
established Asset and Liability Management (ALM) tools within each entity. The plan is to expand the use of the ALM tool
applied on a solo level (in Greece) for the future Group-level IRRBB analysis. The CSRBB analysis is conducted on a Group
level by a centralized tool. Furthermore, the Group already applies a set of extra stress test analysis for specific parts of its
Banking Book for the assessment to the exposure on Mark-to-Market (MTM) volatility on both OCI and Amortised Cost
portfolios of investment securities and for the assessment of the CSRBB (Credit Spread Risk in the Banking Book). The policy
for the management of IRRBB as approved by BRC and BoD provides a clear description of the methodologies, the
governance, the limits that are used for the management of IRRBB & CSRBB.
Liquidity Risk
The Group is exposed on a daily basis to liquidity risk due to deposits withdrawals, maturity of medium or long term notes,
maturity of secured or unsecured funding (interbank repos and money market takings), collateral revaluation as a result of
market movements, loan draw-downs and forfeiture of guarantees. The Board Risk Committee and the BoD sets in the RAS
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Framework the liquidity risk thresholds to ensure that sufficient funds are available to meet all of these contingencies under
any scenario. The Group monitors on a continuous basis the level of liquidity risk using regulatory and internal metrics and
methodologies (Liquidity Coverage Ratio/LCR, Net Stable Funding Ratio/NSFR, Liquidity Buffer analysis, cash flow analysis,
short-term and medium-term stress test etc.).
BRC’s role is to approve all strategic liquidity risk management decisions and monitor the quantitative and qualitative
aspects of liquidity risk. Group Assets and Liabilities Committee (G-ALCO) has the mandate to form and implement the
liquidity policies and guidelines in conformity with Group's risk appetite, and to review at least monthly the overall liquidity
position of the Group. Group Treasury is responsible for the implementation of the Group's liquidity strategy, the daily
management of the Group’s liquidity and for the preparation and monitoring of the Group’s liquidity budget, while GMCR is
responsible for measuring, control, monitoring and reporting the liquidity of the Group to the G-ALCO, BRC, BoD and to the
regulatory bodies.
Operational & Non-Financial Risks (NFRs)
Non-Financial Risks include operational risks as well as specific additional risks such as business, strategic and reputational
risk. Operational risk is defined by Basel III as the risk of loss resulting from inadequate or failed internal processes, people
and systems or from external events.
The Group is gradually implementing the Risk Appetite Framework to cover NFRs, which sets out the mechanisms through
which the Group establishes its risk appetite and ensures that its risk profile remains within that appetite to bear risk in
relation to the internal and external events as well as other constraints.
Governance responsibility for Non-Financial Risks management stems from the Board of Directors (BoD), through the
Executive Board and Senior Management, and passes down to the Heads and staff of every business unit. The BoD
establishes the mechanisms used by the Group to manage NFRs, sets the tone and expectations, and delegates relevant
responsibilities. The Board Risk Committee and the Audit Committee monitor the NFR levels and profile, including relevant
events.
NFR management comprises risk identification, assessment, and mitigation while employing independent oversight and an
effective risk culture to ensure that business objectives are met within the NFR appetite that is reflected in the Group’s Policies
and Guidelines.
The Heads of each business unit (the risk owners) are primarily responsible for the day-to-day management of NFRs and the
adherence to relevant controls. Each Business Unit appoints an Operational Risk Partner (OpRisk Partner) or an Operational
Risk Management Unit (ORMU) depending on the size of the business unit, which is responsible for coordinating the internal
risk management efforts of the business unit while forming the link between Line 1 and Line 2.
Eurobank has adopted a Themes -based risk taxonomy, developed along the lines of the industry reference taxonomies, for
risk management and reporting purposes. Each Risk Themes is overseen by Theme Coordinators (Second Line of Defense
Units). The Risk Themes which fall within the scope of NFR are the following:
Group Operational and Non-Financial Risks Unit (GONFR) has been positioned as an overlaying framework coordinator for
all Non-Financial Risks (NFRs). GONFR’s overlaying responsibilities aim to harmonize the Second Line of Defense Units’
activities across the Group and to holistically ensure the effective, consistent application of the Risk Appetite Framework.
The 2LoD Units maintain their responsibilities for specific Risk Theme(s) owned.
Sustainability risks
Sustainability risks are neither new nor stand-alone risks, rather they are transverse risks, manifesting through existing risk
types. As sustainability risks interact with other risks and result in direct distributional impacts and indirect macroeconomic
impacts, the Group understands that careful consideration of the cross -cutting nature thereof is necessary in order to ensure
the optimal implementation of adaptation activities.
Specifically, sustainability risks are defined as potential losses arising from any negative financial impact for the Group,
stemming from current or prospective impacts of any climate-related & environmental, social or governance event(s) on
Group’s counterparties or invested assets.
Definitions of sustainability risks include the following:
a)
Climate-Related and Environmental risks: Climate-related and environmental risks are defined as the risks deriving
from potential loss or negative impact to the Group, including loss/ damage to physical assets, disruption of business
or system failures, transition expenditures and reputational effects from the adverse consequences of climate
change and environmental degradation.
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b)
Social risk: Social risk refers to potential losses arising from any negative financial impact on the Group stemming
from the current or prospective impacts of social factors (such as human rights violation, income inequality, customer
safety & protection and consumers’ changing preferences) on the Group’s counterparties or invested assets.
c)
Governance risk: Governance risk refers to potential losses arising from any negative financial impact on the Group
stemming from the current or prospective impacts of governance factors (such as anti-financial crime, non-
compliance with policies or regulations and governance practices) on the Group’s counterparties or invested assets.
The Group is adopting a strategic approach towards sustainability, climate change risk identification and risk management,
signifying the great importance that is given in the risks and opportunities arising from the transitioning to a low-carbon and
more circular economy. In this context, the Bank has approved and implements its Financed Impact Strategy, which focuses
on:
a)
Clients’ engagement and awareness to adapt their business so as to address climate change challenges and
opportunities,
b)
Actions for supporting clients in their transition efforts towards a more sustainable economic environment,
c)
Enablers and tools, such as frameworks and products, to underpin sustainable financing,
d)
Assessment and management of sustainability related risks within its loan and investment portfolios, including
assessing exposure to transition and physical risks linked to climate change.
To facilitate the classification of sustainable/green financing opportunities in a structural manner, the Group has developed
its Sustainable Finance Framework (SFF). Through its SFF, the Group is able to classify sustainable lending solutions offered
to its clients, specifying the applied classification approach and the activities defined as eligible to access sustainable
financing (eligible green and social assets). Moreover, the Group maintains a Sustainable Investment Framework (SIF), which
outlines the Group’s various sustainable investment approaches/ strategies based on criteria observed as per international
market practices, the process for the selection of eligible investments, as well as the monitoring frequency applicable to the
sustainable portfolio.
Furthermore, the Group has updated its Sustainability Governance structure by introducing and defining specific roles and
responsibilities in order to support the roll-out of the Sustainability Strategy and the integration of sustainability risks,
through the involvement of various key stakeholders (i.e. Business & Risk Units, Committees, etc.). The Group applies a model
of defined roles and responsibilities regarding the management of Sustainability risks and aspects across the 3 Lines of
Defense.
In this context and taking into account the significant impact of sustainability risks both on financial institutions and on the
global economy, the Group developed and approved its Sustainability Risk Management Policy which aims at fostering a
holistic understanding of the effects of sustainability risks on its business model, as well as support decision-making regarding
these matters and provide a robust governance under its Risk Management Framework. The purpose of the Policy is to
provide an overview and a common understanding of Group’s main governance arrangements, as well as roles &
responsibilities undertaken by the Group Sustainability Risk (GSR), in the context of the Group’s overall Sustainability risks
management activities.
The Group Sustainability Risk (GSR) has the overall responsibility for overseeing, monitoring, and managing sustainability
risks. More specifically, it prepares and maintains the Bank’s Sustainability Risk Management Policy, as well as relevant
policies, processes and methodologies (e.g. ESG Risk Assessment, Climate Risk Scorecard, exclusion lists) in collaboration
with the Group Sustainability Unit, Business & Risk Units. In addition, GSR leads the development and implementation of the
Sustainability risk related framework, as well as relevant policies and processes (e.g., Sustainability Risk Management
Framework, Climate Risk Stress Test Framework documents) across the Group, in coordination with other involved units, as
well as the development and update of the Sustainable Finance Frameworks. Moreover, it monitors and reports to the Group
Senior Sustainability Officer (GSSO) the progress of the implementation of the developed Climate Risk action plan and
reports to the Board for Sustainability Risk matters. The GSR supports, reviews and challenges the involved stakeholders,
across the Group, regarding the setting of the Net Zero targets and of the Financed Impact Strategy, through the
identification of material Sustainability risk related areas. The GSR also leads the 2nd line of defense independent
sustainable lending re-assessment process (i.e. provides opinion on sustainable financing regarding the CIB Portfolio, as part
of a bespoke process and the characterization of products of the Retail Portfolio as sustainable), against the Sustainable
Finance criteria (as per pre-determined thresholds). Furthermore, GSR develops and maintains the Climate Risk Stress Testing
(CRST) Framework, as well as scenario analysis and stress testing methodologies, and coordinates the performance of
sustainability risk scenario analysis and relevant stress test exercises at Group level. In line with good practices identified by
the ECB, the Financed Impact Strategy of the Bank focuses on sustainable financing targets / commitments. In particular, the
Bank identified total portfolio and sectoral targets with regards to financing the green transition of its clients.
Eurobank has set the following targets for sustainable finance corporate disbursements in the following years:
Portfolio targets
New disbursements
•
€2bn in new green disbursements to businesses by 2025
•
20% of the annual new Corporate & Investment Banking (CIB) portfolio disbursements to be classified as Green/
Environmentally sustainable
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Green stock/ Exposure evolution
•
20% stock of green exposures by 2027 for the CIB portfolio
Recovery and Resilience Facility (RRF)
•
Mobilize €2.25bn total green RRF funds in the Greek economy by 2026
Sectoral targets
Renewable energy
•
35% of new disbursements in the energy sector will be directed to Renewable Energy Sources (RES) financing
Green buildings
•
80% of new disbursements related to construction of new buildings (CIB portfolio) to be allocated with EPC A and
above
•
20% of new disbursements related to mortgage loans (excluding "My Home") to be allocated with EPC B+ and above
Furthermore, Eurobank introduced additional sustainable financing targets, enhancing its financed impact strategy:
Corporate and Investment Banking green targets for 2024
New exposure to high emitters
•
No new investments in fixed income securities (excluding exposures in Sustainability/Green bonds) towards the top
20 most carbon-intensive corporates worldwide
Increase in Sustainability-Linked loans
•
Double annual disbursements of Sustainability-Linked loans
Retail banking target for 2024
Maintain the same growth in absolute terms for Retail Banking new green disbursements (or more than 50% increase vs.
2023).
Further information on the Group’s financial risk management objectives and policies, including the policy for hedging each
major type of transaction for which hedge accounting is used is set out in the notes 2, 5 and 19 to the consolidated financial
statements for the year ended 31 December 2024 and as regards sustainability risks is provided in the Group’s Sustainability
Statement as at 31 December 2024.
Non Performing Exposures (NPE) management
The Bank realizes the NPE Strategy Plan through its implementation by doValue Greece for the assigned portfolio and the
securitization transactions.
Troubled Assets Committee
The Troubled Assets Committee (TAC) is established according to the regulatory provisions and its main purpose is to act as
an independent body, closely monitoring the Bank’s troubled assets portfolio and the execution of its NPE Management
Strategy.
Remedial and Servicing Strategy (RSS)
The Remedial Servicing and Strategy (RSS) is responsible: a) for the management of the non-performing and early arrears
loans of the Bank, b) for structured transactions which create capital (such as Synthetic SRT STS securitizations) and/or offer
credit protection and c) for cooperation with the other units of Group Strategy for other transactions and initiatives. RSS is
closely monitoring the overall performance of the NPE portfolio as well as the relationship of the Bank with doValue Greece.
Furthermore, following Eurobank’s commitments against the significant risk transfer (SRT) monitoring regulatory
requirements pertaining to Bank’s concluded transactions, RSS has a pivotal role in ensuring that relevant process is
performed smoothly and in a timely manner and that any shortcomings are appropriately resolved, while providing any
required clarifications or additional material required by the regulatory authorities. The Head of RSS reports to the General
Manager of Group Strategy.
In this context, RSS has been assigned inter alia with the following responsibilities:
a)
Structure new transactions and perform the execution of any transaction processes, by also establishing negotiation
of Commercial / Legal Terms as well monitoring of these transactions,
b)
Develop and actively monitor the NPE targets and reduction plan,
c)
Set the strategic principles, priorities, policy framework and KPIs under which doValue Greece is servicing the
portfolio,
d)
Closely monitor the execution of the approved strategies, as well as all contractual provisions under the relevant
contractual agreements for Eurobank’s portfolio assigned to doValue Greece including the securitized portfolio of
ERB Recovery DAC,
e)
Monitoring of the performance of the senior notes of the securitizations in collaboration with Group Risk so as to
ensure compliance to significant risk transfer (SRT) and to the Hellenic Asset Protection Scheme (HAPS),
f)
Budget and monitor the Bank’s expenses and revenues associated with the assigned portfolio,
g)
Cooperate closely with doValue Greece on a daily basis in achieving the Group’s objectives,
h)
Maintain supervisory dialogue.
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Project “Solar”
In the context of its NPE management strategy, the Group has been structuring an NPE securitization transaction (project
‘Solar’), as part of a joint initiative with the other Greek systemic banks (the banks) since 2018.Out of the notes to be issued
by the SPV, the Banks will hold 100% of the Senior notes as well as the 5% of the Mezzanine and Junior notes and will dispose
of the remaining stake of the subordinated tranches . In June 2024, the banks submitted to the Greek Ministry of Finance a
joint application for the inclusion of the senior notes to be issued in the Hellenic Asset Protection Scheme. Since June 2022,
the Group has classified the underlying corporate loan portfolio as held for sale.
Other loans held for sale (incl. Project “Leon”)
In December 2023, the Bank, aiming to accelerate further its NPE reduction plan, initiated the sale process of a mixed NPE
portfolio of total gross book value ca. €400m, engaged in parallel in negotiations with potential investors. Accordingly, as at
31 December 2023, the Bank classified the aforementioned loan portfolio as held for sale. In first half of 2024, the Bank revised
its NPE sale target and increased the aforementioned perimeter of NPE loans by ca. €240m, which were also classified as
held-for-sale.
On 8 July 2024, the Group, through its special purpose financing vehicle ‘’LEON CAPITAL FINANCE DAC’’ (SPV), issued senior,
mezzanine and junior notes of nominal amount of ca. € 1.5bn, via the securitization of a mixed NPE portfolio, which comprises
the loans that were classified as held for sale at 30 June 2024 (project’s ‘’Leon’’ perimeter) as well as written off loans of
total principal amount due of ca. € 1.5bn and gross carrying amount of ca. €0.6bn that complied with the requirements of
Hellenic Asset Protection Scheme law. Further to the above, on 13 September 2024, the Group, as the holder of the notes
issued by the SPV, proceeded with the disposal of the 95% of the mezzanine and junior tranches to a third party investor.
Accordingly, as of the aforementioned date, the Group derecognized the underlying loan portfolio and recognized the
retained notes on its balance sheet, i.e. 100% of the senior and 5% of the mezzanine and junior notes of Leon securitization,
at fair value.
Further information is provided in note 20 to the consolidated financial statements.
Macroeconomic Outlook and Risks
In 2024, despite the challenging international environment, the macroeconomic backdrop was supportive in the Group’s
three core markets. In particular, the economies of Greece, Bulgaria and Cyprus remained in expansionary territory,
overperforming most of their European Union (EU) peers. According to the Hellenic Statistical Authority (ELSTAT) provisional
data, the real GDP of Greece expanded by 2.3% on an annual basis in the first nine months of 2024 –versus 0.5% in the euro
area (Eurostat) – driven by household consumption and the buildup of inventories. The average annual inflation rate based
on the Harmonized Index of Consumer Prices (HICP) decreased to 3.0% in 2024 from 4.2% in 2023, while the average monthly
unemployment rate declined to 10.1% in 2024, from 11.1% in 2023, dropping to a 15-year low. In its Autumn Economic Forecasts
(November 2024), the European Commission (EC) expects real GDP in Greece to grow by 2.1% in 2024 and 2.3% in 2025
(2023: 2.3%). The HICP growth rate is expected to decelerate to 2.4% in 2025 and the unemployment rate to drop to 9.8%,
respectively.
Growth in Greece as well as in Bulgaria and Cyprus is expected to receive a significant boost from EU-funded investment
projects and reforms. Greece shall receive €36bn (€18.2bn in grants and €17.7bn in loans) up to 2026 through the Recovery
and Resilience Facility (RRF), Next Generation EU (NGEU)’s largest instrument, out of which €18.2bn (€8.6bn in grants and
€9.6bn in loans) had been disbursed by the EU as of the end 2024. A further €40bn is due through EU’s long-term budget
(MFF), out of which €20.9bn is to fund the National Strategic Reference Frameworks (ESPA 2021–2027).
On monetary policy developments, following ten rounds of interest rate hikes in 2022 and in 2023 and on the back of an
improved inflation outlook, the ECB implemented five interest rate cuts from June 2024 to January 2025, lowering its deposit
facility rate by 125 basis points in total.
On the fiscal front, the EC in its Autumn Economic Forecasts expects a primary surplus of 2.9% of GDP in 2024 and 2025, up
from 2.1% of GDP in 2023. The gross public debt-to-GDP ratio, following a sizeable increase in nominal GDP due to the
combination of real GDP growth and inflation, is expected to decline to 153.1% in 2024 and 146.8% in 2025, from 163.9% in
2023. In 2024, the Greek government raised € 9.55bn from the international financial markets through the Public Debt
Management Agency (PDMA) by issuing two new bonds (a 10-year bond at a yield of 3.478% in January and a 30-year bond
at a yield of 4.241% in April), and re-opening eleven past issues with maturities of 5 and 10 years. At the end of 2024, the cash
reserves of the Greek government stood close to € 33bn. Following a series of sovereign rating upgrades in the second half
of 2023, the Greek government’s long-term debt securities were considered investment grade by four out of the five
Eurosystem-approved External Credit Assessment Institutions (DBRS: BBB(low), positive outlook, Fitch: BBB-, stable outlook;
Scope: BBB, stable outlook; S&P: BBB-, positive outlook), and one notch below investment grade by the fifth one, Moody’s
(Βa1, positive outlook) as of. 31 December 2024.
According to Bank of Greece (BoG) data, the stock of credit to the non-financial private sector amounted to €113.2bn at the
end of 2024, up from €109.1bn at the end 2023, marking a gross annual increase of 3.8%. Adjusted for write-offs,
reclassifications and foreign exchange fluctuations, the annual growth rate of domestic credit to the non-financial sector
stood at 8.3%. On the other side of the ledger, domestic non-financial private sector deposits were up by 4.6% on an annual
basis, standing at €199.5bn at the end of 2024 from €190.7bn at the end of 2023. On real estate market developments, BoG
data shows that residential real estate prices recorded an annual increase of 9.2% in the first nine months of 2024, and
commercial real estate prices an annual increase of 7.8% in the first half of 2024.
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In Bulgaria, real GDP growth came in at 2.2% on an annual basis in the first three quarters of 2024, slightly higher compared
to 2.1% in the same period of 2023. Household consumption and investment were the key growth drivers, with the former
GDP component benefitted from declining unemployment, significant increases in the minimum wage (+19.6% since 1 January
2024), as well as in public sector wages and pensions, and rapid credit expansion for consumption purposes. The rise in
investment came from inventories accumulation, as gross fixed capital formation was almost flat. The contribution of net
exports weakened, as exports contracted, and imports expanded. Based on the autumn forecasts by the EC (November
2024), GDP growth in 2024 was projected at 2.4%, while for 2025 a moderate increase to 2.9% is anticipated. Disinflation
progressed in 2024 at a much faster pace than in 2023, with the latest available inflation print of December at 2.1% on an
annual basis, which led to an average annual HICP inflation in 2024 of 2.6%, down from 8.6% in 2023. The December print
brought Bulgaria just 10 bps away from fulfilling the only pending criterion for eurozone entry, i.e. the one concerning price
stability. The EC forecast for HICP inflation stands at 2.3% for 2025 due to persistent services inflation. On the fiscal front,
according to preliminary data from the Ministry of Finance, the cash-based fiscal deficit stood at 3% of the projected GDP
in 2024. The Eurostat-defined deficit was projected by the EC at 2.6% for 2024, up from 2% in 2023. Household demand will
continue supporting GDP growth in 2025, on the back of expected historically low unemployment at 4%, and new, smaller
than in previous years, increases in the minimum wage, public sector salaries and pensions. Investment financed by the RRF
are expected to bolster gross fixed capital formation. The risks to the economic outlook related to political uncertainty may
ease in 2025, after successful negotiations for a new coalition government following the October 2024 elections, that took
power in mid-January 2025. In October, Fitch Ratings has re-affirmed Bulgaria’s long-term foreign and local currency ratings
at ‘BBB’, with a positive rating outlook.
In Cyprus, according to the real GDP data for the first nine months of 2024, the annual GDP growth accelerated to 3.7%, up
from 2.6% in the same period of 2023. Although exports of goods fell 2.1%, higher exports of services by 9.4%, supported by
a range of sectors according to current account balance data (tourism, Information and Communication Technology (ICT)
activities, financial services), led to a 7.7% increase in total exports, making them central to the GDP increase in the said
period. Household consumption (+4.2%), was the second more significant growth driver, on the back of a tight labour market
(unemployment at a 15-year low of 5%). According to EC’s autumn economic forecasts (November 2024), Cyprus is expected
to grow by 3.6% in 2024, up from 2.5% in 2023, with GDP expansion decelerating in 2025 to 2.8%. HICP inflation was projected
at 2.2% in 2024 and 2.1% in 2025 (2023:3.9%). Investment is set to keep benefitting from the RRF funding in the coming years,
whereas easing financial conditions are expected to provide a further stimulus. Household consumption will be boosted in
the coming years by a further decline in unemployment, to 4.7% in 2025 on the back of reforms in the labor market in previous
years, but also from a further recovery in household purchasing power due to increases in nominal wages and declining
inflation. Export performance is projected to continue benefitting from growing tourist receipts and a dynamic outlook for
services, particularly related to the ICT, but also the real estate and energy sectors. Indicative of these prospects is the rise
in the number of tourists to a new all-time high in the January-November 2024 period, though the annual rate of increase
slowed down to 5% from the 20.4% seen in 2023. In December 2024, Fitch Ratings and S&P Global upgraded Cyprus’s
sovereign credit to A- from BBB+, with a stable outlook, on economic and fiscal overperformance.
Regarding the outlook for the next 12 months, the major macroeconomic risks and uncertainties in Greece and our region
are associated with: (a) the geopolitical tensions caused primarily by the war in Ukraine and the fragile situation in the Middle
East, their implications regarding regional and global stability and security, and their repercussions on the global and the
European economy, (b) an interruption or even a reversal of the disinflationary trend observed in the past 24 months and its
impact on economic growth, employment, public finances, household budgets, firms’ production costs, external trade and
banks’ asset quality, as well as any potential social and/or political ramifications this may entail, (c) the timeline of the
potential further interest rate cuts by the ECB and the Federal Reserve Bank, as persistence on high rates for longer may
keep exerting pressure on sovereign and private borrowing costs and certain financial institutions’ balance sheets, but early
rate cuts entail the risk of a rebound in inflation, (d) the prospect of Greece’s and Bulgaria’s major trade partners, primarily
the euro area, remaining stagnant or even facing a temporary downturn, (e) the elevated political and economic uncertainty
stemming from the international and trade policy decisions of the new administration in the United States, (f) the persistently
large current account deficit that seems to become once again a structural feature of the Greek economy, (g) the absorption
capacity of the NGEU and MFF funds and the attraction of new investments in the countries of presence, especially in Greece,
(h) the effective and timely implementation of the reform agenda required to meet the RRF milestones and targets and to
boost productivity, competitiveness, and resilience and (i) the exacerbation of natural disasters due to the climate change
and their effect on GDP, employment, fiscal balance and sustainable development in the long run.
Materialization of the above risks would have potentially adverse effects on the fiscal planning of the Greek government, as
it could decelerate the pace of expected growth and on the liquidity, asset quality, solvency and profitability of the Greek
banking sector. In this context, the Group’s Management and Board are continuously monitoring the developments on the
macroeconomic, financial and geopolitical fronts as well as the evolution of the Group’s asset quality and liquidity KPIs and
have maintained a high level of readiness, so as to accommodate decisions, initiatives and policies to protect the Group’s
capital, asset quality and liquidity standing as well as the fulfilment, to the maximum possible degree, of its strategic and
business goals in accordance with the business plan for 2025 - 2027.
Share Capital
As at 31 December 2024:
a)
The total share capital of Eurobank Holdings amounted to €808,881,992.38 divided into 3,676,736,329 common
voting shares of nominal value of €0.22 each. All shares are registered, listed on the Athens Stock Exchange and
incorporate all the rights and obligations set by the Greek legislation,
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b)
The number of Eurobank Holdings shares held by the Group’s subsidiaries in the ordinary course of their business
was 1,914,541 (31 December 2023: 4,346,566) (note 38 to the consolidated financial statements),
On 23 July 2024, the Annual General Meeting (AGM) of the shareholders of the Company, among others, approved the
cancellation of 52,080,673 treasury shares acquired in 2023 from Hellenic Financial Stability Fund. Following the said
cancellation, the share capital and the share premium of the Company decreased by € 11,457,748.06 and € 16,274,764.99,
respectively.
Share capital increase
Following the exercise of share options granted to executives of the Group under the current share options’ plan (see below),
and by virtue of the decision of the Board of Directors of the Company on 30 August 2024, the Company’s share capital
increased by €2,714,189.50 through the issue of 12,337,225 new common voting shares of a nominal value of €0.22 per share
and exercise price of €0.23 per share. The total difference above par, which amounts to 123,372.25 euros, is credited into the
account “Share premium”. The new shares were listed on the Athens Exchange on 12 September 2024.
Share options
Under the five-year shares award plan approved in 2020 and initiated in 2021, Eurobank Holdings grants to its employees
and the employees of its affiliated companies share options rights, issuing new shares with a corresponding share capital
increase upon the options’ exercise. The maximum number of rights that can be approved was set at 55,637,000 rights, each
of which would correspond to one new share with exercise price equal to € 0.23. The final terms and the implementation of
the share options plan, which is a forward -looking long-term incentive aiming at the retention of key executives, are defined
and approved annually by the Board of Directors in accordance with the applicable legal and regulatory framework, as well
as the policies of the Group.
The options are exercisable in portions annually during a period from one to five years, while each portion may be exercised
wholly or partly and converted into shares at the employees’ option, provided that they remain employed by the Group until
the first available exercise date. The corporate actions that adjust the number and the price of shares also adjust accordingly
the share options.
Further information is provided in note 40 to consolidated financial statements.
Dividends/Distribution of Profits
On 23 July 2024, the AGM of the shareholders of the Company, among others, approved a) the distribution of a cash dividend
of €342m from the “Special Reserves” account, following the approval received from the ECB on 5 June 2024. The said
dividend corresponded to a 30% payout ratio of the Group’s net profit for 2023 and a gross dividend of €0.09333045 per
share, following the cancellation of treasury shares stated above and b) the distribution of €404,330 to senior management
and employees of the Company from the “Special Reserves” account. In addition, it was noted in AGM that the respective
amount that was approved to be distributed to senior management and employees of the Bank was € 26,237,474.
In December 2024, the Bank proceeded with the distribution of non-mandatory reserves for a total amount of €240m which
is part of the Bank’s overall contribution to its sole shareholder, Eurobank Holdings, in order to enable the latter to remunerate
its shareholders out of the profits of the financial year 2024, in accordance with the provisions of article 162 par.3 of Company
Law 4548/2018.
Based on the Group’s financial performance for the financial year 2024, Eurobank Holdings intends to remunerate its
shareholders with an amount of €674m corresponding to a 50% payout ratio of the Group’s net profit for 2024 less the
negative goodwill (€99.5m gain on acquisition of a shareholding in Hellenic Bank), subject to approval of the Annual General
Meeting of its shareholders and the regulatory authorities. The final remuneration will be a combination of cash and share
buyback.
Major Shareholders
Based on the most recent notifications that Eurobank Holdings has received from shareholders controlling 5 per cent or more
of Eurobank Holdings’ voting rights, such significant shareholders are the following:
a)
“Fairfax Financial Holdings Limited”, holding 32.89% of Eurobank Holdings’ total share capital and voting rights,
corresponding to 1,209,223,895 Eurobank Holdings’ ordinary shares (effective since 23 January 2025).
Specifically, following the changes in the Company’s share capital in the third quarter of 2024 (section of “Share
capital”), and based on the latest notification that Eurobank Holdings had received from Fairfax Group (“Fairfax”),
the latter held 33.29% of Eurobank Holdings’ total number of voting rights as at 31 December 2024 (31 December
2023: 32.93%). On 23 January 2025, the Company announced that it had been informed by Fairfax that the latter
had sold 80 million ordinary shares of the Company through an accelerated book building procedure reserved for
qualified investors (the “Transaction”). The Transaction represented a mandatory technical adjustment to Fairfax’s
significant equity holding in the Company, with Fairfax remaining a long-term, committed reference shareholder of
the Company. Furthermore, on 7 February 2025, the Company announced that it had been informed by Fairfax, that
following the aforementioned sale, the latter holds 32.89% of Eurobank Holdings’ total share capital and voting
rights.
b)
“The Capital Group Companies, Inc”, holding 5,11% of Eurobank Holdings’ total number of voting rights,
corresponding to 187,812,291 voting rights of Eurobank Holdings’ ordinary shares. (effective since 1 December 2020,
while the percentage calculation is based on the new total Company’s listed shares that are tradeable on the Athens
Stock Exchange, following the last share capital increase due to the exercise of stock option rights),
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c)
The “Helikon Investments Limited”, holding 5.06% of Eurobank Holdings’ total number of voting rights, corresponding
to 185,957,220 voting rights of Eurobank Holdings’ ordinary shares. (effective since 25 January 2023, while the
percentage calculation is based on the new total Company’s listed shares that are tradeable on the Athens Stock
Exchange, following the last share capital increase due to the exercise of stock option rights).
Sundry information required under Law 3556/2007 (article 4, par.7)
According to the Articles of Association:
a)
there are no restrictions on the transfer of the Eurobank Holdings’ shares,
b)
there are no shares with special controlling or voting rights,
c)
there are no restrictions on voting rights,
d)
the rules related to the appointment and replacement of directors as well as to the amendment of the Articles
of Association are in accordance with the provisions of company law.
Eurobank Holdings is not aware of any shareholders’ agreements resulting in restrictions in the transfer of its shares or in the
exercise of the shares’ voting rights. There are no significant agreements that enter into force, are amended or expire if there
is change in the control of Eurobank Holdings following a public offer. There are no agreements between Eurobank Holdings
and the Directors or the staff for compensation in the event of departure as a result of a public offer.
Board of Directors
The Board of Directors (BoD) was elected by the Annual General Meeting of the Shareholders (AGM) held on 23 July 2024
for a three - year term of office that will expire on 23 July 2027, prolonged until the end of the period the AGM for the year
2027 will take place.
The BoD of Eurobank Holdings is set out in note 48 to the consolidated financial statements. Personal details of the Directors
are available on the website of Eurobank Holdings (www.eurobankholdings.gr).
Information required under Law 4548/2018 (article 97, par.1 (b))
According to article 97 par. 1 (b) of Law 4548/2018 the BoD members owe to disclose in a timely and adequate manner to
the other members of the BoD their own interests, which may arise from the company's transactions, which fall within their
duties, as well as any conflict of their interests with those of the company or its related companies. In such case and in line
with the provisions of article 97 par 3 of the same law, the member of the BoD is not entitled to vote on issues in which there
is a conflict of interest with his own company or persons with whom he is a related party. In these cases, decisions are taken
by the other BoD members.
For 2024, the following issues were noted in which there was a conflict of interest with Eurobank Holdings:
For the purposes of discussions related to the proposed amendment of the Shareholders Agreement of Grivalia Hospitality
S.A., which involved a business arrangement between Eurobank, a subsidiary of Eurobank Holdings, and certain related
parties, the Board member Mr. B. Martin was not entitled to vote. This restriction was in accordance with paragraph 3 of
Article 97 of Company Law 4548/2018, due to a conflict of interest arising from Mr. Martin’s position as Vice Chairman of
Strategic Investments at Fairfax, a significant shareholder of Eurobank Holdings and a related party to the particular
arrangement.
For the purposes of a) decisions relating to the Stock Options plan (4th series implementation) approved by the Annual
General Meeting of Shareholders in 2020 b) approvals according to article 86 of Law 4261/2014, the CEO Mr. Karavias and
the Deputy CEOs Messrs. Ioannou and Vassiliou were not entitled to vote, according to the provisions of par. 3 of art. 97 of
the Law 4548/2018, due to conflict of interests.
Related party transactions
As at 31 December 2024, the Group’s outstanding balances of the transactions and the relating net income / expense for
2024 with (a) the key management personnel (KMP) and the entities controlled or jointly controlled by KMP are: receivables
€5.3m, liabilities €21.2m, net expense €9m (b) the Fairfax group (excluding Eurolife FFH Insurance Group Holdings S.A., which
is also a Group’s associate) are: receivables €164.2m, liabilities €23.4m, guarantees issued €2.5m, net income €18.8m and (c)
the associates and joint ventures and the Eurobank Group’s personnel occupational insurance fund
are: receivables €100m,
liabilities €106m, net expense €69m.
KMP are entitled to compensation in the form of short-term employee benefits of €11.8m (2023: €8.3m) including €2.2m in
upfront variable remuneration awarded as profit sharing, and long-term employee benefits amounting to €5.3m (2023:
€1.4m) including €3.2m in deferred variable remuneration awarded as profit sharing and payable in equal instalments over
the next 4-5 years. In addition, KMP have been granted €5.5m in variable remuneration through share options (2023: €7.8m),
€3.3m of which relates to options exercisable in equal portions over the next 4-5 years. The variable remuneration was
awarded, following the Annual General Meetings of the shareholders of the Company and the Bank taken place on 23 July
2024, in accordance with the Company’s and the Bank’s remuneration policy.
At the same date, the Company’s outstanding balances of the transactions and the relating net income / expense for 2024
with (a) KMP are: compensation €0.4m that is referring mainly to KMP services provided by Eurobank S.A. in accordance with
the relevant agreement, (b) the Fairfax group refer to receivables and operating income of €0.33m related to financial
consulting services, (c) the subsidiaries are: receivables €1,822.5m, liabilities €0.8m and net income €355.2m and (d) the
Group’s associate Eurolife FFH Insurance Group Holdings S.A. are: operating expense of €0.1m.
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All transactions with related parties are entered into the normal course of business and are conducted on an arm's length
basis. Further information is provided in the note 46 to the consolidated financial statements and note 19 to the financial
statements of the Company.
External Auditors
The Eurobank Holdings’ Shareholders Annual General Meeting held on 23 July 2024 approved the appointment of KPMG, as
statutory auditor for the financial statements (separate and consolidated) for the year ending 31 December 2024.
During 2024, the Audit Committee reviewed KPMG’s independence and effectiveness, along with its annual audit plan. In
addition, the Audit Committee ensured on a quarterly basis that a) the non-audit services assigned to KPMG, have been
reviewed and approved as required and b) there is a proper balance between the audit and non-audit fees paid to KPMG,
in accordance with the relevant provisions of the Group’s Policy on External Auditors’ Independence (note 47 of the
consolidated financial statements).
Corporate Governance Statement
In compliance with the art. 17 of the Law 4706/2020 for the listed companies, which stipulates that listed companies should
adopt and implement a corporate governance code, prepared by a recognized and reputable body, and following a relevant
resolution of the Board of Directors of Eurobank Holdings on 29 September 2021, Eurobank Holdings has adopted and
implements the Hellenic Corporate Governance Code (Code). The Code has been posted on Eurobank Holdings’ website
(www.eurobankholdings.gr).
The Corporate Governance Statement for the year 2024, attached herewith, is an integral part of the Directors’ Report, and
outlines how the principles stipulated by the Code were applied, during 2024, to Eurobank Holdings and to Eurobank S.A.
(100% subsidiary of Eurobank Holdings).
Sustainability Statement
Under the Directive (EU) 2022/2464 and the Delegated Directive (EU) 2023/2775 as in force, which were transposed into the
Greek legislation pursuant to Law 5164/2024 as in force, the Sustainability Statement for the year 2024, attached herewith,
is an integral part of the Directors’ Report and provides the necessary information to understand the impact of the Group’s
activities on sustainability, as well as the impact of sustainability on the progress, performance and position of the Group.
Georgios Zanias Fokion Karavias
Chairman Chief Executive Officer
7 March 2025
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APPENDIX
Definition of Alternative Performance Measures (APMs) in accordance with European Securities and Markets Authority
(ESMA) guidelines, which are included in the Report of Directors/Financial Statements:
a)
Loans to Deposits ratio:
end of the reported period,
b)
Pre-Provision Income (PPI):
disclosed in the financial statements for the reported period,
c)
Core income:
banking services for the reported period,
d)
Core Pre-provision Income (Core PPI):
e)
Net Interest Margin (NIM):
balance of continued operations’ total assets (the arithmetic average of total assets, excluding those related to
discontinued operations’, at the end of the reported period, at the end of interim quarters and at the end of the
previous period),
f)
Fees and commissions:
of the reported period,
g)
Fees and commissions over assets ratio:
The Fees and commissions of the reported period, annualised and divided
by the average balance of continued operations’ total assets (the arithmetic average of total assets, excluding
those related to discontinued operations’, at the end of the reported period, at the end of interim quarters and at
the end of the previous period),
h)
Income from trading and other activities
: The total of net trading income, gains less losses from investment
securities and other income/ (expenses) of the reported period,
i)
Cost to Income ratio:
j)
Adjusted net profit:
Net profit/loss attributable to shareholders excluding restructuring costs, goodwill
impairment/ gain on acquisition, gains/losses related to the transformation and NPE reduction plans, contribution
to Greek State’s infrastructure projects, net loss from discontinued operations and income tax adjustments,
k)
Non-performing exposures (NPE):
which are more than 90 days past-due or for which the debtor is assessed as unlikely to pay its credit obligations
in full without realization of collateral, regardless of the existence of any past due amount or the number of days
past due. The NPE, as reported herein, refer to the gross loans at amortised cost except for those that have been
classified as held for sale,
l)
NPE ratio:
period,
m)
NPE formation:
other movements,
n)
NPE Coverage ratio:
credit related commitments (off balance sheet items), divided by NPE at the end of the reported period,
o)
Provisions (charge) to average net loans ratio (Cost of Risk):
charged in the reported period, excluding the amount associated with loans and advances to customers at
amortized cost classified as held for sale, annualised and divided by the average balance of loans and advances
to customers at amortised cost (the arithmetic average of loans and advances to customers at amortised cost, at
the end of the reported period, at the end of interim quarters and at the end of the previous period),
p)
Return on tangible book value (RoTBV):
Adjusted net profit divided by average tangible book value. Tangible
book value is the total equity excluding preference shares, preferred securities and non controlling interests minus
intangible assets,
Definition of capital and other selected ratios in accordance with the regulatory framework, which are included in the
Report of Directors/Financial Statements:
a)
Total Capital Adequacy ratio:
based on the transitional rules for the reported period, divided by total Risk Weighted Assets (RWA). The RWA are
the Group’s assets and off-balance-sheet exposures, weighted according to risk factors based on Regulation (EU)
No 575/2013, taking into account credit, market and operational risk,
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b)
Common Equity Tier 1 (CET1):
as in force, based on the transitional rules for the reported period, divided by total RWA,
c)
Fully loaded Common Equity Tier I (CET1):
575/2013 as in force, without the application of the relevant transitional rules, divided by total RWA,
d)
Liquidity Coverage Ratio (LCR):
for a 30-day stress period,
e)
Minimum Requirements for Eligible Own Funds and Eligible Liabilities (MREL) ratio:
The sum of i) total regulatory
capital (at Eurobank S.A. consolidated level) as defined by Regulation (EU) No 575/2013 as in force, based on the
transitional rules for the reported period ii) part of any Tier 2 instruments to the extent that it does not qualify as
Tier 2 capital (amortized part counts towards MREL), and iii) liabilities issued by Eurobank S.A. that meet the MREL-
eligibility criteria set out in Regulation (EU) No 575/2013 as in force, divided by RWA.
The following table presents the components of the calculation of the above APMs, which are derived from the
Company’s consolidated financial statements for the year ended 31 December 2024 and for the year ended 31
December 2023:
Components of Alternative Performance Measures
€ million
FY 2024
FY 2023
Net Interest Income
⁽
¹
⁾
2,507
2,174
Fees and commissions
666
544
Total Operating income
3,341
2,914
Total Operating income, excluding the gain on investment in Hellenic Bank
⁽
²
⁾
3,242
2,803
Total Operating expenses excluding the contribution to Greek State’s
infrastructure projects
⁽
³
⁾
(1,071)
(902)
Pre-provision income (PPI)
2,242
1,999
Pre-provision income (PPI), excluding the gain on investment in Hellenic Bank and
the contribution to Greek State’s infrastructure projects
2,170
1,902
Core Pre-provision income (Core PPI) excluding the contribution to Greek State’s
infrastructure projects
2,101
1,816
Net profit/(loss) from continued operations
1,511
1,281
Restructuring costs, after tax
(121)
(29)
Gain on investment in Hellenic Bank (as an associate)
99.5
111
Contribution to Greek State’s infrastructure projects, before tax
(27)
(14)
Contribution to Greek State’s infrastructure projects, after tax
(19)
(10)
Impairment loss/reversal on projects "Solar" and "Leon", after tax
11
(48)
Impairment loss/reversal on projects "Solar" and "Leon", before tax
16
(67)
Adjusted net profit
1,484
1,256
Net profit attributable to shareholders
1,448
1,140
Net loss from discontinued operations
(7)
(141)
Impairment losses relating to loans and advances
(303)
(412)
NPE formation
⁽⁴⁾
222
138
Non performing exposures (NPE)
1,719
1,512
NPE excluding Hellenic Bank NPEs covered by Asset Protection Scheme (APS)
1,530
1,512
Due to customers
78,593
57,442
Gross Loans and advances to customers at amortized cost
52,245
42,773
Impairment allowance for loans and advances to customers
(1,309)
(1,258)
Impairment allowance for credit related commitments
(63)
(48)
Impairment allowance for NPE of Hellenic Bank covered by APS
(19)
Due to customers (Greek operations)
43,287
39,950
Gross Loans and advances to customers at amortized cost (Greek operations)
34,682
32,308
Impairment allowance for loans and advances to customers (Greek operations)
(998)
(1,003)
Average balance of continued operations’ total assets
⁽⁵⁾
91,721
79,106
Average balance of loans and advances to customers at amortized cost
⁽⁶⁾
46,237
40,645
Average balance of tangible book value
⁽⁷⁾
8,024
6,957
(1)
4Q2024 NIM: Net interest income of the fourth quarter 2024 (€677m), annualised, divided by the average balance of continued
operations’ total assets (€100,372m). The average balance of continued operations’ total assets, has been calculated as the
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arithmetic average of their balances at the end of the reporting period (31 December 2024: €101,150 m) and at the end of third
quarter (30 September 2024: €99,593m).
(2)
International Operations: Operating income: €1,260m (2023: €778m). Greek operations: Operating income: €1,982 m (2023:
€2,025m).
(3)
€644m).
(4)
NPEs formation has been calculated as the increase of NPE in 2024 €18m, after deducting the impact of write-offs €95m,
classifications as held for sale / sales €242m and other movements (€133m) including the NPE stock from Hellenic Bank acquisition.
(5)
The average balance of continued operations’ total assets, has been calculated as the arithmetic average of their balances at the
end of the reporting period (31 December 2024: €101,150 m), at the end of interim quarters (30 September 2024: €99,593m, 30 June
2024: €98,725m and 31 March 2024: €79,356m), and at the end of the previous period (31 December 2023: €79,781m). The respective
figures for 31 December 2023: €79,781 m, 30 September 2023: €78,023m 30 June 2023: €79,137 m 31 March 2023: €79,538 and 31
December 2022: €79,052m.
(6)
The average balance of loans and advances to customers measured at amortized cost , has been calculated as the arithmetic
average of their balances at the end of the reporting period (31 December 2024: €50,936m), at the end of interim quarters (30
September 2024: €49,095 m, 30 June 2024: €48,093m and 31 March 2024: €41,546m), and at the end of the previous period (31
December 2023 €41,515m). The respective figures for 31 December 2023: €41,515m, 30 September 2023: €40,734m 30 June 2023:
€40,604m 31 March 2023: €40,137 and 31 December 2022: €40,237m.
(7)
intangible assets and non controlling interests at the end of the reporting period (31 December 2024: €8,484m) and at the end of
the previous period (31 December 2023: €7,565m).
The respective figures for 31 December 2023: €7,565m and 31 December 2022:
€6,340m.
Note: For the purpose of calculating the 2024 average balances used in the ratios a) NIM, b) Fees and commissions over assets and
c) Cost of risk, the balances as of 30 June 2024 for continued operations’ total assets and loans and advances to customers
measured at amortized cost have been adjusted to include the impact of respective balances for Hellenic Bank group.
Source of financial Information
The Directors’ Report includes financial data and measures as derived from the Company’s consolidated financial
statements for the year ended 31 December 2024 and for the year ended 31 December 2023, which have been prepared
in accordance with International Financial Reporting Standards (IFRS). In addition, it includes information as derived
from internal information systems, consistent with the Group’s accounting policies, such as the selected financial
information for the Group’s two main reportable segments a) Greek Operations, which incorporate the business
activities originated from the Company, the Bank and the Greek subsidiaries and b) International Operations, which
incorporate the business activities originated from the banks and the other local subsidiaries operating in Bulgaria,
Cyprus and Luxembourg (as described at the relevant section on page 4).
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CORPORATE GOVERNANCE STATEMENT 2024
Index to the Corporate Governance Statement
1.
Introduction ................................................................................................................................................................................. 3
2.
Adoption of the Hellenic Corporate Governance Code .................................................................................................... 3
3.
Corporate Governance and Key Policies .............................................................................................................................. 3
3.1 Internal Governance Control Manual ................................ ................................ ................................ ................................ ............... 3
3.2 Board Nomination Policy ................................ ................................ ................................ ................................ ................................ ........ 3
3.3 CEO Succession Planning................................ ................................ ................................ ................................ ................................ ........ 5
3.4 Board Evaluation Policy ................................ ................................ ................................ ................................ ................................ ........... 5
3.5 Board of Directors Diversity Policy ................................ ................................ ................................ ................................ ..................... 6
3.6 Remuneration Policy................................ ................................ ................................ ................................ ................................ .................. 6
3.7 Board and Board Committees’ Attendance Policy ................................ ................................ ................................ .................... 7
3.8 Directors’ Induction and Continuous Professional Development Process ................................ ................................ ...... 7
3.9 Group Governance Policy ................................ ................................ ................................ ................................ ................................ ....... 7
3.10 Conflicts of interest Policy ................................ ................................ ................................ ................................ ................................ ...... 8
3.11 Other Key Policies ................................ ................................ ................................ ................................ ................................ ....................... 8
4.
Shareholders’ General Meeting ..............................................................................................................................................8
4.1 Information about the Eurobank Holdings General Meetings ................................ ................................ ............................. 9
4.1.1 Requirements for calling and convening the General Meetings ................................ ................................ ........... 9
4.1.2 Participation and proxies ................................ ................................ ................................ ................................ ......................... 9
4.1.3 Annual General Meeting (AGM) of the shareholders ................................ ................................ ................................ . 9
4.2 Information about the Eurobank General Meetings ................................ ................................ ................................ ............... 10
4.2.1 Annual General Meeting (AGM) of the shareholders ................................ ................................ ............................... 10
5.
Board of Directors .................................................................................................................................................................... 11
5.1 General ................................ ................................ ................................ ................................ ................................ ................................ ............ 11
5.2 Composition of the Board ................................ ................................ ................................ ................................ ................................ ..... 11
5.3 CVs of Board Board members and Secretary ................................ ................................ ................................ ............................ 12
5.4 Re-election, Cessation, and Independence of Board Members ................................ ................................ ......................... 17
5.5 Division of responsibilities ................................ ................................ ................................ ................................ ................................ .... 18
5.5.1 Chairperson................................ ................................ ................................ ................................ ................................ .................... 18
5.5.2 CEO ................................................................ ................................ ................................ ................................ ................................ .... 18
5.5.3 Executive Directors ................................ ................................ ................................ ................................ ................................ ..... 18
5.5.4 Non-Executive Directors ................................ ................................ ................................ ................................ .......................... 19
5.6 Operation of the Board ................................ ................................ ................................ ................................ ................................ ......... 19
5.6.1 Board Meetings................................ ................................ ................................ ................................ ................................ ............ 19
5.6.2 Dissemination of Information ................................ ................................ ................................ ................................ ............... 19
5.6.3 Quorum in the Board Meetings ................................ ................................ ................................ ................................ ........... 19
5.6.4 Board Decisions and Minutes ................................ ................................ ................................ ................................ ............... 19
5.6.5 Company Secretary ................................ ................................ ................................ ................................ ................................ .. 20
5.7 Attendance of Board members in the Board and Board Committees ................................ ................................ ......... 20
5.8 Directorships of Board members ................................ ................................ ................................ ................................ ...................... 21
5.8.1 HoldCo and Eurobank Board Members’ Directorships (including Directorships within Eurobank
5.9 Board Role and Responsibilities ................................ ................................ ................................ ................................ ....................... 23
5.10 Main issues the Board dealt with during 2024 ................................ ................................ ................................ ......................... 24
5.10.1 Eurobank Holdings ................................ ................................ ................................ ................................ ................................ ..... 24
5.10.2 Bank ................................ ................................ ................................ ................................ ................................ ................................ .. 25
5.10.3 Board Strategy Day ................................ ................................ ................................ ................................ ................................ .. 28
5.11 Board and Board Committees overall effectiveness assessment ................................ ................................ ................... 28
5.11.1 Board and Board Committees Evaluation ................................ ................................ ................................ .................... 28
5.11.2 Assessment of the knowledge, skills and experience (KSE) of the Board collectively as well as
5.11.3 Individual Evaluations ................................ ................................ ................................ ................................ .............................. 29
5.11.4 Collective Suitability Assessment................................ ................................ ................................ ................................ ....... 30
5.12 Directors’ Induction and Continuous Professional Development ................................ ................................ .................... 30
6.
Board Committees .................................................................................................................................................................. 30
6.1 Governance and Operations of Board Committees ................................ ................................ ................................ ............... 31
6.1.1 Board Committees’ members ................................ ................................ ................................ ................................ ............... 31
6.1.2 Board Committees’ Terms of Reference (ToR) ................................ ................................ ................................ ............. 31
6.1.3 Board Committees’ meetings ................................ ................................ ................................ ................................ ............... 31
6.1.4 Quorum in the Board Committees’ Meetings ................................ ................................ ................................ ............... 31
6.1.5 Board Committees’ Decisions ................................ ................................ ................................ ................................ ............... 31
6.1.6 Board Committees’ Secretary and Minutes ................................ ................................ ................................ .................. 31
6.1.7 Board Committees’ Performance Evaluation ................................ ................................ ................................ ............... 31
6.2 Audit Committee ................................ ................................ ................................ ................................ ................................ ....................... 31
6.2.1 AC Membership/Composition ................................ ................................ ................................ ................................ .............. 32
6.2.2 AC Meetings................................ ................................ ................................ ................................ ................................ .................. 32
6.2.3 Attendance to the AC Meetings ................................ ................................ ................................ ................................ ......... 32
6.2.4 AC’s Performance Evaluation ................................ ................................ ................................ ................................ ............... 33
6.2.5 ACs’ Activity in 2024 ................................................................ ................................ ................................ ................................ . 33
6.3 Board Risk Committee ................................ ................................ ................................ ................................ ................................ .......... 36
6.3.1 BRC Membership/Composition ................................ ................................ ................................ ................................ ........... 36
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6.3.2 BRC Meetings ................................ ................................ ................................ ................................ ................................ ................ 37
6.3.3 Attendance to the BRC Meetings ................................ ................................ ................................ ................................ ....... 37
6.3.4 BRCs’ Performance Evaluation ................................ ................................ ................................ ................................ ............. 37
6.3.5 BRCs’ Activity in 2024 ................................ ................................ ................................ ................................ .............................. 38
6.4 Remuneration Committee ................................ ................................ ................................ ................................ ................................ .. 39
6.4.1 RemCos Membership/Composition ................................ ................................ ................................ ................................ .. 39
6.4.2 RemCos meetings ................................ ................................ ................................ ................................ ................................ ...... 40
6.4.3 Attendance to the RemCo meetings ................................ ................................ ................................ ............................... 40
6.4.4 RemCo’s Performance Evaluation ................................ ................................ ................................ ................................ ..... 40
6.4.5 RemCos' Activity in 2024................................ ................................ ................................ ................................ ........................ 40
6.5 Nomination and Corporate Governance Committee ................................ ................................ ................................ ........... 42
6.5.1 NomCo Membership/Composition ................................ ................................ ................................ ................................ ... 43
6.5.2 NomCo Meetings ................................ ................................ ................................ ................................ ................................ ....... 43
6.5.3 Attendance to the NomCo meetings ................................................................ ................................ ............................... 43
6.5.4 NomCos’ Performance Evaluation ................................ ................................ ................................ ................................ .... 43
6.5.5 NomCos’ Activity in 2024 ................................ ................................ ................................ ................................ ....................... 44
6.5.6 Board of Directors Diversity ................................ ................................ ................................ ................................ .................. 45
6.5.7 Senior Management Diversity ................................ ................................ ................................ ................................ ............. 45
6.6 Board Digital & Transformation Committee ................................ ................................ ................................ .............................. 46
6.6.1 BDTC Membership / Chairmanship ................................ ................................ ................................ ................................ ... 46
6.6.2 BDTC Meetings ................................ ................................ ................................ ................................ ................................ ............ 46
6.6.3 BDTC Attendance Rate ................................ ................................ ................................ ................................ ........................... 46
6.6.4 BDTC Performance Evaluation ................................ ................................ ................................ ................................ ............. 47
6.6.5 BDTC’s Activity in 2024 ................................ ................................ ................................ ................................ ............................ 47
7.
Management Committees ..................................................................................................................................................... 47
7.1 Management Committees’ Policy ................................ ................................ ................................ ................................ ..................... 47
7.2 Executive Board (ExBo)................................ ................................ ................................ ................................ ................................ .......... 48
7.2.1 CVs of ExBo members (other than BoD members) ................................ ................................ ................................ ... 48
7.3 Strategic Planning Committee................................ ................................ ................................ ................................ ........................... 51
7.4 Management Risk Committee ................................ ................................ ................................ ................................ ........................... 52
7.5 Group Asset and Liability Committee (G-ALCO) ................................ ................................ ................................ ..................... 52
7.6 Central Credit Committees ................................ ................................ ................................ ................................ ................................ . 55
7.6.1 Central Credit Committee I ................................ ................................ ................................ ................................ ................... 55
7.6.2 Central Credit Committee II ................................ ................................ ................................ ................................ ................. 55
7.7 Troubled Assets Committee................................ ................................ ................................ ................................ ................................ 56
7.8 Products & Services Committee (PSC) ................................ ................................ ................................ ................................ .......... 56
7.9 Sustainability Management Committee (SMC) ................................ ................................ ................................ ........................ 56
7.10 Ethics Co ................................ ................................ ................................ ................................ ................................ ................................ ........ 57
8.
Key Control Functions ............................................................................................................................................................ 57
8.1 Internal Audit................................ ................................ ................................ ................................ ................................ ............................... 57
8.1.1 Eurobank Holdings ................................ ................................ ................................ ................................ ................................ ...... 57
8.1.2 Eurobank ................................ ................................ ................................ ................................ ................................ ......................... 58
8.2 Risk Management ................................ ................................ ................................ ................................ ................................ .................... 59
8.2.1 Eurobank Holdings ................................ ................................ ................................ ................................ ................................ ..... 59
8.2.2 Eurobank ................................ ................................ ................................ ................................ ................................ ......................... 59
8.3 Compliance ................................ ................................ ................................ ................................ ................................ ................................ . 60
8.3.1 Eurobank Holdings ................................ ................................ ................................ ................................ ................................ ..... 60
8.3.2 Eurobank ................................ ................................ ................................ ................................ ................................ .......................... 61
8.4 Personal Data Protection ................................ ................................ ................................ ................................ ................................ .... 62
8.4.1 Eurobank Holdings ................................ ................................ ................................ ................................ ................................ ..... 62
8.4.2 Eurobank ................................ ................................ ................................ ................................ ................................ ......................... 62
9.
System of Internal Controls .................................................................................................................................................. 62
9.1
Principles of Internal Controls ................................ ................................ ................................ ................................ ............................ 62
9.2 Characteristics of the System of Internal Controls (SIC) ................................ ................................ ................................ ...... 63
9.3 Evaluation of the System of Internal Controls ................................ ................................ ................................ ........................... 64
9.4 Independent Evaluation of the HoldCo/Bank System of Internal Controls ................................ ................................ 64
9.5 Corporate Governance System Assessment in accordance with article 4 par. 1 of Law 4706/2020 ............. 64
10.
Sustainability ........................................................................................................................................................................... 64
10.1 Sustainability Approach ................................ ................................ ................................ ................................ ................................ ....... 64
10.2 Sustainability Policies & Frameworks ................................ ................................ ................................ ................................ ............ 65
10.3 Stakeholders engagement and double materiality assessment ................................ ................................ ..................... 66
10.4 Reporting and Transparency ................................ ................................ ................................ ................................ ............................. 66
11.
Other information required by Directive 2004/25/EU .................................................................................................... 67
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1.
Introduction
In accordance with Article 152(1) and Article 153(3) of Law 4548/2018, Law 4706/2020, and the Hellenic Corporate Governance
Code, the Report of the Board of Directors of Eurobank Ergasias Services and Holdings S.A. (the "Company", "Eurobank
Holdings", "Holdings", or "HoldCo") includes the Corporate Governance Statement, which addresses the following key areas:
●
Adoption of the Hellenic Corporate Governance Code
●
Corporate Governance and Key Policies
●
Shareholders’ General Meeting
●
Board of Directors
●
Board of Directors’ Committees
●
Management Committees
●
Key Control Functions
●
System of Internal Controls
●
Sustainability
●
Additional Disclosures Required by Directive 2004/25/EU
2.
Adoption of the Hellenic Corporate Governance Code
In compliance with Article 17 of Law 4706/2020, which requires listed companies to adopt and implement a corporate
governance code issued by a recognized and reputable body, Eurobank Holdings has adopted and applies the Hellenic
Corporate Governance Code (the "Code").
The Code is available on Eurobank Holdings’ website (https://www.eurobankholdings.gr).
Given that the Eurobank Holdings Group (the "Group") primarily comprises Eurobank S.A. ("Eurobank" or the "Bank") and its
subsidiaries (the "Eurobank Group"), this Corporate Governance Statement outlines how the principles set out in the Code
were implemented across both Eurobank Holdings and Eurobank throughout 2024.
3.
Corporate Governance and Key Policies
The corporate governance framework of the Group, aligned with the applicable legal and regulatory requirements and
international best practices, ensures that HoldCo, the Bank, and their subsidiaries operate with credibility, responsibility,
fairness, and transparency, safeguarding the interests of their shareholders and all other stakeholders.
In this context, HoldCo and the Bank have established a comprehensive set of policies and procedures, which are regularly
reviewed and approved by the respective Board of Directors (BoD) and/or Board Committees, as required. The Key Policies
governing HoldCo and the Bank are outlined below.
3.1
Internal Governance Control Manual
The Internal Governance Control Manual (IGCM) of Eurobank Holdings and Eurobank has been developed in accordance with
Law 4706/2020 to ensure compliance with regulatory requirements and internal governance policies. The IGCM defines the
overarching framework by which each Company is directed and controlled, serving as a formal record of the high-level
internal control principles in operation.
The policies and controls outlined in both the HoldCo IGCM and Bank IGCM are designed to minimize the risk of errors or
financial losses, protect the interests of shareholders and depositors, and ensure full compliance with regulatory requirements
at all times.
The HoldCo IGCM and Bank IGCM provide a high-level overview of control policies, while more detailed operating procedures
are documented in individual procedures and manuals maintained by their respective units. Subsidiaries are required to
establish their own IGCMs and/or procedures manuals and to adopt the Group’s policies where applicable. The principles
outlined in the IGCM apply across all units and subsidiaries, except where local circumstances or regulations necessitate
deviations.
Each IGCM includes a high-level organizational chart and a brief description of the key responsibilities of the main control
functions within HoldCo and Eurobank. These manuals are supplemented by the procedures manuals of individual units and
subsidiaries, which provide a written description of the uppermost levels of the Group’s System of Internal Controls.
3.2
Board Nomination Policy
The HoldCo/Banks’ Board Nomination Policy sets out the guidelines and formal process for identifying, selecting, and
nominating candidates for the Board. It ensures that appointments are made:
(a) in compliance with legal and regulatory requirements,
(b) with due regard to the expectations of major shareholders, and
(c) based on individual merit and ability, following best practices.
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The primary objectives of this Policy are to:
●
Define the general principles that guide the Nomination and Corporate Governance Committee (NomCo) in all
stages of the nomination process,
●
Establish specific criteria and requirements for Board nominees,
●
Ensure a transparent, efficient, and fit-for-purpose nomination process, and
●
Maintain a Board structure—including succession planning—that meets high ethical standards, achieves an optimal
balance of knowledge, skills, and experience, and aligns with current regulatory requirements.
●
Nomination Criteria
The Board, supported by NomCo, shall nominate candidates who meet the following criteria:
1. Reputation, Honesty, Integrity, and Trust
●
Reputation: Candidates must have a strong reputation and high social esteem, demonstrating good repute in line
with the applicable regulatory framework’s standards for honesty and integrity.
●
Honesty, Integrity, and Trust: Candidates should exemplify the highest standards of ethics, honesty, fairness, and
personal discipline, as evidenced by their professional track record, personal history, and public commitments.
2. Knowledge, Skills, Experience (KSE), and General Suitability
●
Understanding of the HoldCo/Bank: Candidates must possess sufficient knowledge, skills, and experience (KSE) to
develop a thorough and up-to-date understanding of the business, governance structures, regulatory environment,
markets, stakeholders, and risks associated with the HoldCo and its subsidiaries.
●
Seniority: A candidate must have several years of experience in a recognized leadership position within their field of
expertise.
●
Independent Mindset and Ability to Challenge: Candidates should demonstrate the ability to form and express
independent judgments on all matters before the Board, along with the candor to challenge management and other
Board members when necessary.
●
Collegiality, Teamwork, and Leadership: Candidates should contribute constructively and productively to Board
discussions and decision-making, with the capability to lead discussions as a Committee Chair, Vice-Chair, or Board
Chair.
●
Additional Criteria for Executive Directors: Candidates for Executive Director positions must have demonstrated
leadership capabilities through current or previous executive roles, along with the necessary expertise to guide the
HoldCo/Bank in achieving its strategic objectives. They must also be willing to enter into full-time employment with
the HoldCo/Bank.
3. Conflicts of Interest and Independence of Mind
NomCo shall assess candidates' personal, professional, financial, and political affiliations to ensure that they do not have
actual, potential, or perceived conflicts of interest that cannot be prevented, adequately mitigated, or managed under the
HoldCo/Bank’s policies. Candidates must be able to represent the interests of all shareholders, fulfill their responsibilities as
Directors, and make sound, objective, and independent decisions.
NomCo shall also examine candidates’ direct and indirect monetary and non-monetary interests, including their affiliations
with or membership in other organizations.
4. Time Commitment
NomCo shall ensure that all nominees can dedicate the time required to effectively discharge their responsibilities as
Directors. This includes their ability to attend and actively participate in Board and Committee meetings on a regular basis.
5. Collective Suitability
The Board, as a whole, must have the ability to understand the institution’s activities, assess the associated risks, and make
informed decisions aligned with the institution’s business model, risk appetite, strategy, and market operations.
The composition of the Board should reflect the necessary knowledge, skills, and experience required to fulfill its
responsibilities. The Board should collectively possess expertise in:
●
The institution’s core business and its associated risks,
●
All material activities of the HoldCo/Bank,
●
Sector-specific and financial competencies, including financial and capital markets, solvency, risk modeling, and
environmental, social, and governance (ESG) risks,
●
Financial accounting and reporting,
●
Risk management, compliance (including AML/CFT), and internal audit,
●
Information and digital technology, including cybersecurity,
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●
Local, regional, and global markets, where applicable,
●
The legal and regulatory framework,
●
Strategic planning and managerial experience,
●
Oversight of (inter)national group structures and risks related to group governance,
●
Corporate governance,
●
ESG issues, and
●
Gender representation, in accordance with the Board Diversity Policy.
Succession Planning
As part of its oversight of the nomination process, NomCo shall ensure the implementation of structured, stepwise succession
planning to maintain continuity and institutional knowledge at the Board level. This is particularly critical in managing sudden
or unexpected absences or departures of Board members.
To this end, NomCo shall:
●
Monitor Board members’ tenures and ensure staggered appointments and retirements whenever feasible. The
reappointment of existing Board members shall be based on their continued adherence to the criteria set out in this
Policy.
●
Ensure an appropriate distribution of relevant KSEs across the Board, preventing undue reliance on the expertise of
a few Directors.
●
Assess whether a sufficient number of Board members are capable of assuming leadership roles, including Board
and Committee Chair positions.
●
Periodically evaluate the availability of suitable candidates to address the Board’s future succession planning needs.
●
Consider both:
a) the objectives and targets defined in the HoldCo/Bank Board Diversity Policy, and
b) the findings of the HoldCo and Bank Board Evaluations, ensuring necessary changes in composition or skills to
enhance effectiveness and collective suitability.
The CEO Succession Planning Policy, which is supplementary to this Policy, sets out the framework for CEO succession
planning.
3.3
CEO Succession Planning
The HoldCo/Bank’s CEO Succession Planning Policy (the Policy) plays a crucial role in ensuring a seamless leadership
transition. The key elements of the Policy are as follows:
●
Qualifications for the CEO Position: The Nomination and Corporate Governance Committee (NomCo), in
collaboration with the current CEO, defines the qualifications required for the CEO role. This ensures that the
successor possesses the necessary skills, experience, and leadership attributes to guide the organization effectively.
●
Viable Pool of Candidates: NomCo ensures that a strong pipeline of candidates meets the CEO position’s
requirements. This includes evaluating internal candidates within the organization while also considering external
candidates when appropriate.
●
Annual Review: NomCo reviews the qualifications and candidate pool at least annually to ensure that the succession
planning process remains aligned with the organization’s evolving needs, regulatory expectations, and strategic
direction.
●
Selection Process: NomCo leads the CEO selection process, evaluating candidates based on their qualifications,
leadership capabilities, experience, and alignment with the organization’s culture and strategic objectives.
●
Tailored Induction Program: Once a new CEO is selected, NomCo approves a customized induction program to
ensure a smooth transition. This program provides the new CEO with the necessary knowledge, resources, and
support to succeed in the role from the outset.
Overall, the CEO Succession Planning Policy ensures that the organization is well-prepared for leadership transitions,
maintaining continuity, stability, and effectiveness at the highest level of management.
3.4
Board Evaluation Policy
The Board and Board Committees Evaluation Policy of Eurobank Holdings and Eurobank establishes the principles,
framework, and process for the annual assessment of the effectiveness of the Board of Directors and its Committees at both
the HoldCo and the Bank. The Policy aspires to align with best European banking practices while fully complying with Greek
and European legal and regulatory requirements.
Under this Policy, the Nomination and Corporate Governance Committee (NomCo) holds the overall responsibility for:
●
Assessing the structure, size, composition, and performance of the Board and its Committees,
●
Recommending to the Board any necessary changes to enhance effectiveness,
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●
Evaluating the collective suitability of the Board as a whole, as well as the suitability and contributions of individual
Board members, and
●
Reporting its findings and recommendations to the Board accordingly.
3.5
Board of Directors Diversity Policy
The HoldCo/Bank Board of Directors Diversity Policy reflects the organization’s commitment to diversity in line with
international best practices and applicable legal requirements.
According to the Policy, Board diversity encompasses multiple factors, including:
●
Skills and expertise,
●
Educational and professional background,
●
Geographical origin,
●
Gender,
●
Age, and
●
Other relevant attributes that contribute to a well-balanced and effective Board.
The NomCo is responsible for incorporating diversity considerations when assessing the composition and structure of the
Board.
During the Board collective suitability review, NomCo members discuss and define measurable objectives for enhancing
Board diversity. These objectives guide the (re)appointment and succession planning of individual Board members, in
accordance with the Board and Board Committees Evaluation Policy.
A key target outlined in the Policy is gender diversity. Specifically, NomCo so far aimed for at least 25% representation of the
less represented gender on the Board, calculated based on the total Board size, according to legal requirements. After the
publication of Law 5178/2025, the intention is to properly comply to its provisions.
3.6
Remuneration Policy
Eurobank Holdings has established a Board of Directors’ Remuneration Policy (Remuneration Policy) in accordance with the
requirements of Law 4548/2018 (the Law). The latest version of the Policy was approved by the Annual General Meeting of
Shareholders on 23 July 2024. The Policy has been designed to comply with the specific provisions of Articles 110 and 111 of
the Law.
The Remuneration Policy sets out the fundamental principles and structure governing the remuneration of Board members.
Its primary objective is to ensure that remuneration is:
●
Reasonable and aligned with market standards,
●
Gender-neutral, promoting equal treatment, and
●
Sufficiently competitive to attract and retain Directors with the necessary skills and experience to implement
Eurobank Holdings’ business strategy effectively.
Additionally, the Policy safeguards the long-term interests and sustainability of the organization by discouraging excessive
risk-taking. This is achieved through continuous monitoring of market trends and best practices at both domestic and global
levels.
The Policy is informed by external and independent benchmarking analyses of remuneration in the financial and banking
sectors, both in Greece and internationally. This benchmarking ensures that the remuneration framework for Board members
remains aligned with industry best practices.
In addition, the development and implementation of the Remuneration Policy are characterized by:
●
Objectivity and transparency throughout the process, and
●
Independent judgment and discretion by the Board when approving or recommending remuneration, ensuring
alignment with both individual and Company performance.
Remuneration Report
In compliance with Article 112(3) of Law 4548/2018, Eurobank Holdings publishes an annual Remuneration Report, detailing
the remuneration and financial benefits granted to each Executive and Non-Executive Director during the financial year.
The Eurobank Holdings Remuneration Report for 2024 (
https://www.eurobankholdings.gr
) was approved by the Annual
General Meeting on 23 July 2024. The report provides comprehensive and transparent disclosure of Board remuneration,
ensuring efficient communication with shareholders and stakeholders.
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Remuneration Structure
Non-Executive Directors
●
Fixed Remuneration Only: Non-Executive Directors receive fixed remuneration, which is annually approved by the
Annual General Meeting. They are not eligible for variable remuneration.
●
Board Fees: Their fixed remuneration consists of Board Fees, determined based on their roles on the Board and
Committees, their expected contribution, and the additional time and effort required for their responsibilities.
Executive Directors
●
Employment Contracts: Executive Directors are employed by the Bank under permanent, indefinite contracts. These
contracts require a three -month notice period in case of resignation.
●
Remuneration Structure:
o
Executive Directors receive remuneration under their employment contracts and do not receive additional
compensation for their role as Board members.
o
Variable Remuneration: Any variable remuneration awarded follows the provisions of the Bank’s
Remuneration Policy and is subject to approval by the Shareholders' General Meeting.
Remuneration Governance
Given the identical composition of the Boards of Eurobank Holdings and Eurobank, and the fact that Directors are
compensated solely by the Bank, any reference to Board remuneration at Eurobank Holdings also applies to their
remuneration as Directors of the Bank.
The 2024 Board and key management remuneration disclosure is included in the relevant note of the consolidated accounts
of Eurobank Holdings. To ensure market transparency regarding remuneration structures and associated risks, this
information is publicly available on the Eurobank Holdings website (
www.eurobankholdings.gr
).
3.7
Board and Board Committees’ Attendance Policy
In accordance with the Board and Board Committees’ Attendance Policy of Eurobank Holdings and Eurobank, Board
members are expected to attend all Board and Committee meetings to which they are appointed.
However, it is recognized that, on occasion, Board members may be unable to attend certain meetings due to conflicting
commitments or unforeseen circumstances. To ensure active participation, each member must maintain a minimum
attendance rate of 85% over the course of the calendar year.
Board members may miss up to 15% of scheduled meetings, but only if a valid excuse is provided.
Additionally, in accordance with Law 4706/2020, if a Board member is unjustifiably absent from at least two consecutive
Board meetings, they shall be considered resigned. This resignation is formally established through a Board decision, which
subsequently initiates the replacement process in accordance with the applicable legal framework.
3.8
Directors’ Induction and Continuous Professional Development Process
All new Board members undergo a comprehensive Induction Program, designed to ensure a smooth and effective transition
into their roles. The program aims to:
1.
Communicate the vision and corporate culture of Eurobank Holdings and Eurobank,
2.
Introduce practical and procedural responsibilities to facilitate a seamless onboarding process,
3.
Accelerate productivity by reducing the time needed to familiarize new members with their roles,
4.
Integrate new Directors as valued members of the Board,
5.
Provide insight into the organizational structure of the HoldCo/Bank, and
6.
Offer a comprehensive understanding of the business, strategy, market dynamics, key relationships, and leadership
team of the HoldCo/Bank.
Upon appointment, new Board members also receive a Manual of Obligations, which outlines their core responsibilities
towards the Supervisory Authorities and the HoldCo/Bank. This manual includes guidance on local regulatory requirements
and Board procedure s.
Additionally, newly appointed Directors participate in meetings and presentations with key executives to gain a holistic
overview of the organization.
Recognizing the importance of continuous professional development, Eurobank Holdings and Eurobank provide ongoing
learning resources to support the knowledge and skill enhancement of all Board members.
3.9
Group Governance Policy
In compliance with the regulatory framework, the Group Governance Policy of Eurobank Holdings and Eurobank establishes
general governance principles for the Group entities, sets common governance standards, and defines authorities,
responsibilities, and expectations, ensuring the Group operates as a unified entity with a cohesive strategic direction.
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The policy integrates internal governance by clarifying the distinct roles of the parent company and its subsidiaries, while
also setting principles related to board composition, roles and responsibilities, chairmanship, board committees, nomination
processes, board diversity, CEO succession planning, board evaluations, professional development, management
committees, governance manuals, and corporate governance codes.
By harmonizing governance practices across the Group, the policy promotes accountability, transparency, and effective
decision-making at all levels.
3.10
Conflicts of interest Policy
Eurobank Holdings and Eurobank have implemented a Conflicts of Interest Policy, approved by their respective Boards of
Directors, to establish a comprehensive framework for identifying, preventing, and managing actual, potential, or perceived
conflicts of interest arising from the Group’s business activities. This policy includes a structured set of policies, procedures,
systems, and controls to uphold ethical standards and ensure transparent decision -making.
To prevent conflicts of duties, the Group has implemented procedural safeguards that:
●
Segregate executive and non-executive responsibilities at the Board level, ensuring a clear distinction between the
Chairperson of the Board and the CEO’s executive functions,
●
Prevent incompatible roles and conflicts of interest among Board members, Management, and Executives, and
●
Mitigate the misuse of inside information or corporate assets.
Board members are expected to:
●
Adhere to high ethical standards and comply with the principles set out in the Conflicts of Interest Policy,
●
Act independently, making sound, objective, and impartial decisions,
●
Disclose any personal interests that may conflict with the interests of Eurobank Holdings or the Group,
●
Maintain confidentiality of non-public information and avoid any conduct that could constitute market abuse or
create a conflict of interest.
Board members are required to disclose:
●
All external engagements, directorships, or affiliations outside the Group,
●
Any new or ongoing circumstances that could affect their independence of mind or create a conflict of interest.
All actual or potential conflicts of interest at the Board level must be:
●
Communicated, documented, and discussed,
●
Decided upon and managed by the Group,
●
Mitigated through specific measures for unexpected conflicts, while persistent conflicts are managed through
continuous oversight.
Board members must abstain from voting on matters where they have an identified conflict of interest, ensuring
transparency, impartiality, and effective governance.
3.11
Other Key Policies
In addition to the above policies, Eurobank Holdings and Eurobank have established, among others, the following policies,
which form an integral part of their corporate governance framework: the Code of Conduct and Ethics, the Anti-Bribery and
Corruption Policy, and the Policy for Reporting Illegal or Unethical Conduct or Violations of European Union Law.
4.
Shareholders’ General Meeting
The Shareholders’ General Meeting (General Meeting) serves as the highest authority within Eurobank Holdings and
Eurobank and is convened by the respective Board of Directors to address all matters concerning the entity.
It holds exclusive jurisdiction over matters specified in Article 117 of Company Law 4548/2018, including amendments to the
Articles of Association. Every shareholder has the right to participate and vote at the General Meeting, either in person or
through a legal representative, in accordance with the prescribed legal procedures.
For the General Meeting to reach a quorum and be considered valid, shareholders present or represented must collectively
hold at least 20% (1/5) of the paid-in share capital associated with voting shares. Resolutions are passed by an absolute
majority and are binding on both absent and dissenting shareholders. However, for significant decisions such as share capital
changes or mergers, a higher quorum of at least 50% (1/2) of the paid-in share capital is required, and resolutions must be
approved by a two -thirds (2/3) majority.
According to Article 119(1) of Law 4548/2018, the Annual General Meeting must be held no later than the tenth (10th) calendar
day of the ninth month following the end of the business year. Additionally, an Extraordinary General Meeting may be
convened by the Board of Directors when deemed necessary or required by law.
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Minutes of the General Meeting are authenticated by the Chairperson and the Secretary of the meeting, and the standard
minority rights outlined in Company Law 4548/2018 apply.
4.1
Information about the Eurobank Holdings General Meetings
4.1.1
Requirements for calling and convening the General Meetings
All persons registered as shareholders of ordinary shares of Eurobank Holdings in the Dematerialized Securities System (DSS),
managed by Hellenic Central Securities Depository S.A., on the Record Date—specifically, at the start of the fifth day before
the General Meeting—are entitled to participate and vote in the HoldCo General Meeting. This Record Date also applies to
any Repeat Meeting.
Shareholders are informed in advance about the agenda of each General Meeting, and new technologies are utilized to
facilitate their participation. At least 20 days before the meeting, shareholders are provided with access to all necessary
information, in full compliance with Greek law.
The Notice of General Meeting includes:
●
The date, time, and place of the meeting,
●
The agenda items,
●
Participation and voting rights, along with the relevant procedures,
●
Minority shareholder rights, and
●
Relevant documents made available to shareholders.
All resolutions and related information from each General Meeting are published under the Investor Relations section of the
Eurobank Holdings website.
4.1.2
Participation and proxies
Eurobank Holdings facilitates shareholder participation in General Meetings. All shareholders have the right to attend in
person or appoint a proxy, who must be designated at least 48 hours before the meeting date.
If shareholders' questions regarding agenda items are not addressed during the General Meeting, Eurobank Holdings has a
structured process in place to provide the relevant responses.
4.1.3
Annual General Meeting (AGM) of the shareholders
The Annual General Meeting of Eurobank Holdings’ shareholders was held on July 23, 2024, remotely via teleconference in
real-time. Shareholders representing 2,849,603,397 shares out of 3,664,399,104 shares (excluding 52,080,673 treasury shares,
in accordance with Article 50(1) of Law 4548/2018) participated, corresponding to 77.76% of the paid-up share capital with
voting rights on the agenda items.
The General Meeting:
1.
Approved, with a majority exceeding the minimum required by law, the Annual Separate and Consolidated Financial
Statements for the financial year 2023, along with the Directors’ and Auditors’ Reports.
2.
Approved, with a majority exceeding the minimum required by law, the overall management for the financial year
2023, as well as the discharge of the Auditors for the same period.
3.
Approved, with a majority exceeding the minimum required by law:
a)
The appointment of KPMG Certified Auditors S.A. (KPMG) as the statutory auditor for the Annual and
Consolidated Financial Statements of the Company for the financial year 2024.
b)
The approval of KPMG’s fees for the 2024 audit, amounting to €0.3 million.
4.
Approved, with a majority exceeding the minimum required by law, the dividend distribution to shareholders,
amounting to €342 million, from the “Special Reserves” account, and authorized the Board of Directors to undertake
all necessary actions for its implementation.
5.
Approved, with a majority exceeding the minimum required by law, the amendment of Articles 8 and 9 of the
Company’s Articles of Association, updating paragraphs 1 and 2 of Article 8 and paragraph 5 of Article 9.
6.
Approved, with a majority exceeding the minimum required by law:
a)
The addition of a new Article 11 to the Company’s Articles of Association, allowing for the remuneration of
Board members through participation in the profits of the respective financial year, in accordance with
Article 109(2) of Law 4548/2018.
b)
The renumbering of Articles 11, 12, 13, 14, and 15 to Articles 12, 13, 14, 15, and 16, respectively.
7.
Approved, with a majority exceeding the minimum required by law, the distribution of €404,330 to senior
management and employees of the Company from the “Special Reserves” account.
8.
Approved, with a majority exceeding the minimum required by law:
(i)
The cancellation of 52,080,673 treasury shares, in accordance with Article 49 of Law 4548/2018.
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(ii)
The reduction of the Company’s share capital by €11,457,748.06, corresponding to the nominal value of the
cancelled shares (€0.22 per share).
(iii)
The amendment of Article 5 of the Company’s Articles of Association to reflect the share capital reduction.
9.
Approved, with a majority exceeding the minimum required by law, in accordance with Article 86 of Law 4261/2014,
a higher than 100% maximum level of the ratio between fixed and variable remuneration for the CEO, three Deputy
CEOs, Group Chief Risk Officer, Group Chief Financial Officer, General Manager Group Strategy, General Manager
Markets, and CEO of Eurobank Cyprus Ltd & Head of International Activities & Group Private Banking.
10.
Approved, with a majority exceeding the minimum required by law, the amendment of the Remuneration Policy for
Directors of the Company.
11.
Approved, with a majority exceeding the minimum required by law, the remuneration paid to Board members for
the financial year 2023, for their roles as Board members and Committee members, and the remuneration to be
paid for the financial year 2024.
12.
Casted a positive vote on the Remuneration Report for the financial year 2023.
13.
Approved, with a majority exceeding the minimum required by law, the amendment of the Nomination Policy for
Board Directors.
14.
Approved, with a majority exceeding the minimum required by law:
(a)
The election of the following individuals as Board members, with their term of office expiring on July 23,
2027, extended until the conclusion of the Annual General Meeting of 2027:
-
Konstantinos Vassiliou
-
Alice Gregoriadi
-
George Zanias
-
Stavros Ioannou
-
Fokion Karavias
-
Evangelos Kotsovinos
-
Irene Rouvitha Panou
-
Cinzia Basile
-
Burkhard Eckes
-
John Hollows
-
Rajeev Kakar
-
Bradley Paul Martin
-
Jawaid Mirza
(b)
The appointment of Alice Gregoriadi, Evangelos Kotsovinos, Irene Rouvitha Panou, Cinzia Basile, Burkhard
Eckes, John Hollows, Rajeev Kakar, and Jawaid Mirza as independent non-executive Board members.
15.
Approved, with a majority exceeding the minimum required by law:
(a) The Audit Committee to function as a Committee of the Board of Directors, composed of Board members.
(b) The Audit Committee to consist of five independent non-executive Board members.
(c) The term of office of the Audit Committee members to coincide with their term as Board members, expiring
on July 23, 2027, extended until the conclusion of the Annual General Meeting of 2027.
16.
Was informed on the Annual Activity Report of the Audit Committee for the financial year 2023.
17.
Was informed on the Independent Non-Executive Directors’ Report.
All information regarding the AGM of Eurobank Holdings can be found on the Eurobank Holdings website:
Eurobank Holdings AGM 2024
.
4.2
Information about the Eurobank General Meetings
Following the demerger, Eurobank Holdings became the sole shareholder of Eurobank, holding 100% of its share capital. In
accordance with Article 121(5) of Law 4548/2018, a formal invitation to convene a General Meeting is not required if the
meeting is attended or represented by shareholders holding the entire share capital and none of them objects to its
convening or decision-making.
In this context, the following General Meeting of Eurobank was held.
4.2.1
Annual General Meeting (AGM) of the shareholders
The Annual General Meeting of Eurobank’s shareholders was held on July 23, 2024, in Athens, at Eurobank’s Headquarters,
12 Stadiou Street & 2 Omirou Street. The sole shareholder, Eurobank Holdings, participated, representing 3,683,244,830
shares, corresponding to 100% of the paid-up share capital with voting rights on the agenda items.
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The General Meeting:
1.
Approved the Annual Separate and Consolidated Financial Statements for the financial year 2023, along with the
Directors’ and Auditors’ Reports.
2.
Approved the overall management for the financial year 2023 and the discharge of the Auditors for the same period.
3.
Appointed KPMG Certified Auditors S.A. as Auditors for the financial year 2024.
4.
Approved the amendment of Articles 8 and 9 of the Bank’s Articles of Association.
5.
Approved the addition of a new Article 11 to the Bank’s Articles of Association regarding the remuneration of Board
members and the renumbering of Articles 11, 12, 13, and 14 accordingly.
6.
Approved the distribution of net profits to the senior management and employees of the Bank.
7.
Approved, pursuant to Article 86 of Law 4261/2014, a higher than 100% maximum level of the ratio between fixed
and variable remuneration for nine executives.
8.
Approved the remuneration for the financial year 2023 and the advance payment of remuneration for the Directors
for the financial year 2024.
9.
Approved the election of a new Board of Directors due to the expiration of the term of the current Board and the
appointment of independent non-executive Board members.
10.
Determined the type and composition of the Audit Committee.
11.
Was informed on the Annual Activity Report of the Audit Committee for the financial year 2023.
5.
Board of Directors
5.1
The HoldCo/Bank are managed by their respective Boards of Directors (Board or BoD), which bear collective responsibility
for their long-term success. The Boards exercise their duties in compliance with Greek legislation, international best practices,
their Articles of Association, and the legitimate decisions of the shareholders’ General Meetings.
The Board’s role is to provide entrepreneurial leadership to the Group within a framework of prudent and effective controls,
enabling the identification, assessment, and management of risks. It establishes the Group's strategic objectives, ensures the
availability of financial and human resources necessary to achieve these objectives, and evaluates management
performance. Additionally, the Board defines the Group’s values and standards, ensuring that its responsibilities towards
shareholders and other stakeholders are recognized and fulfilled.
All Board members are required to act in the best interests of the Group, in full alignment with their legal duties.
5.2
Composition of the Board
The members of the Board are elected by the General Meetings of Eurobank Holdings and Eurobank, which determine the
exact number of directors and their term of office, in accordance with legal provisions and the Articles of Association of both
entities. The General Meetings also designate the independent non-executive directors.
During 2024:
●
The Boards of Directors of HoldCo and Eurobank, by their decisions dated May 30, 2024, and June 28, 2024, following
the respective recommendations of the Nomination and Corporate Governance Committees (NomCos) on May 28,
2024, and June 26, 2024, proposed to the Annual General Meetings (AGMs) of July 23, 2024, the appointment of
Mr. Evangelos Kotsovinos as an independent non-executive director (iNED) of the BoDs.
●
Following the announcement by Mr. Georgios Chryssikos (Non-Executive Director, Vice Chair of the previous Board)
regarding his decision not to seek renewal of his term, the necessity of the Vice Chair role was reviewed. The BoDs
of HoldCo and Eurobank, in their meetings dated May 30, 2024, and June 28, 2024, following the NomCos'
recommendations on May 28, 2024, and June 26, 2024, decided to discontinue the role of Vice Chair on the BoDs
and certain Committees (NomCo, RemCo, and BDTCo) upon the conclusion of Mr. Chryssikos’ term. Going forward,
in the event of the Chair’s absence or impediment, the most senior iNED present at the meeting—based on tenure—
shall assume the Chair’s duties.
●
Due to the expiration of the Boards’ tenure, the AGMs of HoldCo and Eurobank on July 23, 2024, appointed the new
Boards for a three-year term, extending until the AGMs of 2027. The AGMs also designated the independent non-
executive members of the Boards. The new BoDs, in accordance with the BoD decisions dated May 30, 2024, and
June 28, 2024, following the NomCos' recommendations on May 28, 2024, and June 26, 2024, comprised the re-
election of twelve (12) previous Board members and the election of one (1) new member, Mr. Evangelos Kotsovinos.
●
In accordance with the above AGM decisions and the NomCos’ recommendations dated May 28, 2024, and June
26, 2024, the new BoDs, in their meeting of July 23, 2024, decided on their constitution, the appointment of the Chief
Executive Officer (CEO) and Deputy Chief Executive Officers (DCEOs), and the designation of executive and non-
executive directors.
For efficiency reasons, the composition of HoldCo’s BoD is identical to that of Eurobank’s BoD.
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Following these developments, as of the date of approval of this Statement, the current Boards consist of thirteen (13)
directors, categorized as follows:
●
Three (3) executive directors,
●
Two (2) non-executive directors, and
●
Eight (8) independent non-executive directors.
Name
Position
Eurobank Holdings
Eurobank
First
appointment
End of
Term
First
appointment
End of
Term
Georgios P. Zanias
Chairperson, Non-Executive Director
Mar. 2019
2027
Mar. 2020
2027
Fokion C. Karavias
Chief Executive Officer
Jun. 2014
2027
Mar. 2020
2027
Stavros E. Ioannou
Deputy Chief Executive Officer
Apr. 2015
2027
Mar. 2020
2027
Konstantinos V. Vassiliou
Deputy Chief Executive Officer
July 2018
2027
Mar. 2020
2027
Bradley Paul L. Martin
Non-Executive Director
Jun. 2014
2027
Mar. 2020
2027
Rajeev K. L. Kakar
Non-Executive Independent Director
July 2018
2027
Mar. 2020
2027
Jawaid A. Mirza
Non-Executive Independent Director
Jun. 2016
2027
Mar. 2020
2027
Alice K. Gregoriadi
Non-Executive Independent Director
Apr. 2020
2027
Apr. 2020
2027
Irene Rouvitha Panou
Non-Executive Independent Director
Apr. 2020
2027
Apr. 2020
2027
Cinzia V. Basile
Non-Executive Independent Director
Dec. 2020
2027
Dec. 2020
2027
Burkhard Eckes
Non-Executive Independent Director
Jul. 2023
2027
Jul. 2023
2027
John Arthur Hollows
Non-Executive Independent Director
Jul. 2023
2027
Jul. 2023
2027
Evangelos Kotsovinos
Non-Executive Independent Director
Jul. 2024
2027
Jul. 2024
2027
5.3
CVs of Board Board members and Secretary
The short CVs of the HoldCo and Eurobank Board members, summarized below, demonstrate that the Boards’ composition
aligns with the knowledge, skills, and experience necessary for the effective execution of their duties. This is in accordance
with the Board Nomination Policy and the business model and strategy of HoldCo and Eurobank.
Additionally, the directorships held by HoldCo and Eurobank Board members as of December 31, 2023, are outlined in Section
"Directorships of Board Members".
Georgios Zanias - Chairperson, Non-Executive Director
-
Membership in Board Committees: Nomination and Corporate Governance Committee – Member
-
Year of birth: 1955
-
Nationality: Hellenic
-
Number of shares in Eurobank Holdings: None
Mr. Zanias joined Eurobank as the Chairman of the Board of Directors in 2019. He is also a Professor Emeritus of Economics
at the Athens University of Economics and Business and a Member of the Board of IOBE.
In the past, Mr Zanias has served as the Minister of Finance (2012), Chairman of the Board of Directors of the National Bank
of Greece (2012-2015), Chairman of the Board of the Hellenic Banking Association (2012-2015), Member of the Board of the
European Banking Federation (2012-2015), Member of the Board of the American-Greek Chamber of Commerce ( 2019-2022),
Chairman of the Council of Economic Advisors at the Ministry of Finance (2009-2012), General Secretary of the Ministry of
Economy and Finance (2001-2004), Chairman and Scientific Director of the National Economic Institute (KEPE) (1998-2001).
He has also served as a Director on the Boards of Hellenic Exchanges (2000-2001), Public Debt Management Office (PDMA)
(2009-2012), General Bank (1997-1998), CHIPITA SA (2015-2019), the European Financial Stability Mechanism (EFSF/ESM)
(2010-2012). Also: Member of the Board of Governors of the Black Sea Trade and Development Bank (2003-2004), Alternate
Governor of the Board of Governors of EBRD (2002-2004), Member of the European Securities Committee (2001-2002),
Member of the Monetary Policy Committee of the Bank of Greece (May-July 2012), Chairman of the Board of Directors of
Piraeus Real Estate SA and Picar SA (2017-2019), Vice Chairman of the Board of ETVA Industrial Zone SA (2018-2019).
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He holds a Doctorate from Oxford University, an M.Sc. for the University of Reading and a B.Sc. from the Athens University of
Economics and Business.
Fokion Karavias-Chief Executive Officer (CEO)
-
Membership in Board Committees: None
-
Year of birth: 1964
-
Nationality: Hellenic
-
Number of shares in Eurobank Holdings: 775,878
Mr. Karavias joined Eurobank in 1997 and served, inter alia, as Member of the BoD of Eurobank Private Bank Luxembourg SA
(2012-2022), Senior General Manager, Group Corporate & Investment Banking, Capital Markets & Wealth Management
(2014-2015) and Executive Committee Member (2014-2015), General Manager and Executive Committee Member (2005-2013),
Deputy General Manager and Treasurer (2002-2005), Head of fixed income and derivative product trading (1997).
In the past, Mr. Karavias had also the following significant posts: Treasurer of Telesis Investment Bank (2000), Head of fixed
income products and derivatives in Greece of Citibank, Athens (1994) and has also worked in the Market Risk Management
Division of JPMorgan NY (1991).
He currently also serves as Vice Chairman of the Board of Directors ofHellenic Bank Association (HBA) , as Member of the
General Council of the Hellenic Federation of Enterprises (SEV) and as Honorary Member of The Greek Tourism Confederation
(SETE).He holds a PhD in Chemical Engineering from the University of Pennsylvania, Philadelphia, USA and an MA in Chemical
Engineering from the same university, as well as a Diploma in Chemical Engineering from the National Technical University
of Athens. He has published articles on topics related to his academic research.
Stavros Ioannou-Deputy Chief Executive Officer (CEO), Group Chief Operating Officer (COO) & International Activities
-
Membership in Board Committees: Board Digital and Transformation Committee - Member
-
Year of birth: 1961
-
Nationality: Hellenic
-
Number of shares in Eurobank Holdings: 358,145
Mr. Ioannou holds several other posts in the Eurobank Group as Head of International Activities & Group Private Banking,
Member of the BoD of Eurobank Private Bank Luxembourg S.A (since October 2024), Member of the BoD of Eurobank Bulgaria
AD (since October 2015), Vice-Chairman in Eurobank Cyprus Ltd (since November 2022) and is also the Chairman of the BoD
inBE-Business Exchanges SA (since January 2014). He has been appointed as the responsible BoD member of Eurobank
Holdings and Eurobank for climate-related and environment al risks and for the outsourcing function.
He is currently Non-Executive Board member of Grivalia Management Company S.A. (since September 2019).
In the past, Mr. Ioannou had also the following significant posts: he was appointed Chief Executive Officer at Eurobank A.D.
Beograd (2005-2008), Chairman of the Executive Committee in the Hellenic Banking Association (2020-2022) where he had
been member since 2013, Vice Chairman at Cardlink SA (2013-2015), Member of the BoD in Millennium Bank, responsible for
Retail, Private Banking and Business Banking (2003), Head at Barclays Bank PLC, responsible for Retail Banking, Private
Banking and Operations (1990 -1997).
He holds an MA in Banking and Finance from the University of Wales, UK and a Bachelor Degree in Business Administration
from the University of Piraeus.
Kostas Vassiliou -Deputy Chief Executive Officer (CEO), Head of Corporate & Investment Banking
-
Membership in Board Committees: None
-
Year of birth: 1972
-
Nationality: Hellenic
-
Number of shares in Eurobank Holdings: 356,617
Mr. Vassiliou holds several other posts in the Eurobank Group as Chairman of the BoD of Eurobank Factors Single Member
SA (since December 2018), Member of the BoD of Eurobank Equities Single Member SA (since March 2015). He also serves as
Vice-Chairman of the BoD of Eurolife FFH Insurance Group Holdings SA (since January 2021), Eurolife FFH Life Insurance SA
(since December 2020) and Eurolife FFH General Insurance SA (since December 2020).
In the past, Mr. Vassiliou had also the following significant posts: Country Manager for Greece, Cyprus and the Balkans,
Mitsubishi UFJ Financial Group, London (2000-2005) and Senior Relationship Manager, Mitsubishi UFJ Financial Group,
London (1998-2000).
He holds an MΒΑ from Boston University, USA and a BA in Business Administration from the Athens University of Economics
and Business.
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Alice Gregoriadi-Independent Non-Executive Director
-
Membership in Board Committees: a) Audit Committee – Member, b) Remuneration Committee – Member, c) Board
Digital and Transformation Committee – Chairwoman
-
Year of birth: 1968
-
Nationality: Hellenic
-
Number of shares in Eurobank Holdings: None
Mrs. Gregoriadi also serves as an Affiliate Partner – Management Consultant at True North Partners LLP, London, UK and is
a Non-Executive Board Director at Climate Governance Initiative Greece.
In the past, Mrs. Gregoriadi had also the following significant posts: Hellenic Corporation of Assets & Participations (HCAP),
Greece, Non-Executive Board member, Audit Committee member, Corporate Governance and Nominations Committee
member (February 2017 – February 2021), JPMorgan, London, UK, various posts as Managing Director (February 2010 – May
2015), IBOS Board Director (April 2010 – August 2014), ABN Amro Bank, Amsterdam, Netherlands & London, UK, various posts
as Managing / Executive Director (November 2001 – December 2009), Citibank NA, London, UK, various Senior Executive
Director posts (February 1994 – August 2001), Clearing House Automated Payments System (CHAPS), UK, Board Director
(June 1997 – July 2000).
She holds an MBA from the Manchester Business School, UK (1991-1993), including an MBA international exchange program
from the E.J.Cox School of Management, Texas, USA – (1992), an Executive Certification on Blockchain for business from
University College London (2019), an Executive Certification on eCommerce from the Darden School of Business, Virginia
University, USA (2000) and a BSc in Business Administration from the The American College, Athens, (1987-1990).
Rajeev Kakar-Independent Non-Executive Director
-
Membership in Board Committees: a) Audit Committee – Member, b) Board Risk Committee – Chairman,
c)Nomination & Corporate Governance Committee – Member
-
Year of birth: 1963
-
Nationality: Indian
-
Number of shares in Eurobank Holdings: None
Mr. Kakar is a senior international banker with 37 years of financial services experience, and currently also serves as a board
member of several Financial Institutions- including Commercial International Bank (Egypt), Gulf International Bank Group
Board (Bahrain), Gulf International Bank (Saudi Arabia) and is also a Global Advisory Board member at the University of
Chicago’s Booth School of Business. In the past Mr. Kakar has also served as board member on several international financial
institutions/bank boards - eg., as Board Member of Visa International CEEMEA (United Kingdom 2004-2006), Global
Management Board member of Fullerton Financial Holdings (Singapore 2006-2018), Board member of UTI AMC in India
(2019-2024), Chairman of the BoD, Fullerton Securities & Wealth Advisors (New Delhi, India 2008-2017), board Member of
Fullerton India Credit Company (India 2009-2017), Member of the Board of Commissioners, Adira Dinamika Multi Finance Tbk,
subsidiary of Bank Danamon (Indonesia 2010-2013), etc.
Between 2006-2018, Mr. Kakar served as the Global Co-Founder of Fullerton Financial Holdings (Singapore) - a wholly owned
subsidiary of Temasek Holdings, Singapore. In this role, he also concurrently served as Fullerton’s Global CEO of Consumer
Banking, Regional CEO for Central Europe, Middle East and Africa, and also as the Founder, Managing Director and CEO of
Dunia Finance (Fullerton’s UAE subsidiary). Prior to 2016, he was at Citibank for 20 years working across various countries and
held various senior management positions, including, his most recent Citibank assignment where he served as the Regional
CEO & Division Executive for Citibank-Turkey, Middle East and Africa until Jan 2006.
Mr. Kakar holds an MBA, Finance & Marketing from the Indian Institute of Management, Ahmedabad (India) and a Bachelor
of Technology, Mechanical Engineering from the Indian Institute of Technology (India).
Bradley Paul Martin-Non-Executive Director
-
Membership in Board Committees: None
-
Year of birth: 1959
-
Nationality: Canadian
-
Number of shares in Eurobank Holdings: 122,500
In the past Mr. Martin has also served as: Vice President of Fairfax Financial Holdings (1998 - 2024), Vice President, Strategic
Investments of Fairfax Financial Holdings (2012 - 2024), Member of the BoD, Bank of Ireland (2013-2017), Chief Operating
Officer (COO), Fairfax Financial Holdings (2006-2012) and Partner, Torys LLP law firm (before 1998).
Mr. Martin also serves as Non-Executive Director, of AGT Food and Ingredients Inc. and as a Non-Executive Director, of Blue
Ant Media Inc
He holds a ΒΑ from Harvard University, USA and an LLB from the University of Toronto, Canada.
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Jawaid Mirza-Independent Non-Executive Director
-
Membership in Board Committees: a) Audit Committee – Vice Chairman, b) Nomination & Corporate Governance
Committee – Member, c) Remuneration Committee – Member
-
Year of birth: 1958
-
Nationality: Canadian
-
Number of shares in Eurobank Holdings: None
Mr. Mirza is a strong proponent and practitioner of international corporate governance and brings with him over 35 years of
diversified experience and a solid track record in all facets of financial and risk management, technology, mergers and
acquisitions, business turnarounds and operation management.
In the past, Mr. Mirza was also the lead Director with Commercial International Bank of Egypt, as well as Independent Non-
Executive Director with South Africa Bank of Athens (Johannesburg). He also served Commercial Bank of Egypt (CIB) as
Managing Director & CEO of Consumer Banking and Group COO. Over the years, Mr. Mirza has worked with global
institutions like Citibank and ABN AMRO Bank Ltd where he held several senior positions as CFO European Region, Managing
Director and Chief Operating Officer for Global Private Banking, Asset Management and New Growth Markets, Chief
Financial Officer for Asian region including Australia/New Zealand and Middle East. Mr. Mirza led several due diligences for
acquiring banks in Europe, Asia, and Latin America. Mr. Mirza was also a member of the Top Executive Group (TEG) of ABN
AMRO Bank as well as member of the Group Finance and Group COO Board.
Mr. Mirza also serves as Non-Executive Independent Director of AGT Food & Ingredients (Canada), IDRF (Canada) and as
Non-Executive Independent Director of Commercial International Bank (CIB) (Egypt).
Mr. Mirza holds various business management courses from reputable institutions like Queens Business school, Wharton
Business school, Stanford Graduate School of Business and is also a member of the Institute of Corporate Directors, Canada.
Irene Rouvitha Panou-Independent Non-Executive Director
-
Membership in Board Committees: a) Nomination & Corporate Governance Committee – Chairwoman, b) Audit
Committee – Member, c) Remuneration Committee - Member
-
Year of birth: 1958
-
Nationality: Cypriot
-
Number of shares in Eurobank Holdings: None
Mrs. Rouvitha Panou is an accomplished international leader with over three decades of cross-border financial experience in
strategy, governance, audit, and organizational transformation. She has driven sustainable organizational growth by
developing and implementing strategic initiatives, leading corporate turnarounds, enhancing governance frameworks, and
fostering innovation, also contributing to the drastic upgrade and digital evolution of key services in Cyprus, a country of
strategic importance to Eurobank. Her career spans across Cyprus, the UK, Greece, Romania, Australia, and the USA,
demonstrating broad international exposure in banking and financial services.
In the past, she was Chair of the Board of Cyta (Cyprus’ leading integrated electronic communications provider) for two
consecutive tenures (July 2016-July 2021), Chair of the Management Committee of the Pensions & Grants Fund of the
Personnel of Cyta (January 2019-July 2021), Chair of the Board of the Cyprus Development Bank following its privatization
(September 2008-April 2014) and Board Member of the Cyprus Employers and Industrialists Federation (May 2020-July 2021).
She was Independent Non-Executive Director and Board Committees Chair/Member of the Cyprus Asset Management
Company KEDIPES (March 2023-June 2024), Alpha Bank subsidiaries in Romania, Cyprus and Greece (November 2014-April
2020) and Vassiliko Cement public company (February 2012-October 2014). She was Managing Director of Laiki Bank Hellas
SA (April 2002-November 2006) and Group General Manager of Cyprus Popular Bank (HSBC associate bank) (January 2000-
November 2006) also serving, among others, as Group Board Director and Board Member of the Group’s banking
subsidiaries in Greece and Australia. Between June 1984 and September 1991, she worked in Boston USA, where she held
senior positions in the field of management and financial services consulting.
Mrs. Rouvitha Panou is also a committed board member in academic and philanthropic organizations, serving as a Member
of the Board of Trustees of the UK-based Stelios Philanthropic Foundation, a Member of the International Advisory
Committee of Komvos Global Hellenism Network, and a Member of the Advisory Council of the School of Economics &
Management at the University of Cyprus, focusing on integrating financial industry objectives into academic research
priorities. Her leadership at Cyta included effecting major M&A activities and driving key digital transformation projects—
such as the early rollout of 5G and Fiber-To-The-Home (FTTH) technologies, smart city initiatives, and significant ESG
projects—contributing to the modernization of Cyprus’ telecommunications infrastructure.
She graduated from the London School of Economics, UK (B.Sc. Economics, Metcalfe Scholar) with postgraduate studies at
the University of Cambridge, UK (M.Phil. Economics) and the Massachusetts Institute of Technology, USA (M.Sc. Management,
Fulbright Scholar).
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Cinzia Basile-Independent Non-Executive Director
-
Membership in Board Committees: a) Board Risk Committee – Member, b) Remuneration Committee – Chairwoman,
c) Board Digital and Transformation Committee – Member
-
Year of birth: 1971
-
Nationality: Italian and British
-
Number of shares in Eurobank Holdings: None
Mrs Basile is the Chairperson of Nikko Asset Management Europe (NAME), one of Asia’s largest asset managers; she also
Chairs the HR Advisory Committee and is a member of the Risk & Stewardship Committee.
Mrs Basile is a highly accomplished financial leader with deep expertise in the financial sector, asset management, and
strategic growth. She serves as Chairman of My Community Bank, where she has driven significant balance sheet growth by
leveraging fintech solutions to promote financial inclusion in underserved markets. In addition, she is a Non-Executive Director
at several prominent financial institutions, including Zenith Global, and Creditis Servizi Finanziari.
In the past, Mrs. Basile had also the following significant posts: she set up and ran Credit Suisse AG’s Investment Bank multi-
asset investment management business (Custom Markets) in the UK, Ireland and Luxembourg, Non-Executive Member of the
BoD and Chair of the Operating and Risk Committee of Credit Suisse Custom Markets, a sponsored management company
of Credit Suisse located Luxembourg (August 2011 – August 2017), Non-Executive Member of the BoD and Chair of the
Operating of Custom Markets plc and Custom Markets QIAF, sponsored management companies of Credit Suisse located in
Ireland (August 2011 – August 2017), Non-Executive Member of the BoD and Chair of the Operating and Risk Committee of
Custom Markets QIAF a subsidiary of Credit Suisse located in Ireland (August 2011 – August 2017).
She is a fellow at the CSaP's Dowling Policy Fellowship, Cambridge University. The fellowship's mission is to help public policy-
making address the major challenges of the 21st century by drawing more effectively on the best research, evidence, and
expertise. Fellows share a common interest in advancing policies that support science, innovation, and entrepreneurship in
the public interest.
She holds a Juris Doctor Degree from the University of Rome “La Sapienza”, Italy and she was awarded a Thesis Scholarship
(derivative instruments), London School of Economics, UK.
John Arthur Hollows-Independent, Non-Executive Director
-
Membership in Board Committees: a) Board Risk Committee – Vice Chairman, b) Board Digital and Transformation
Committee – Member, c) Remuneration Committee - Member
-
Year of birth: 1956
-
Nationality: British
-
Number of shares in Eurobank Holdings: None
Mr. Hollows served for 26 years in the KBC Group as Member of the Boards of Directors, KBC Bank and KBC Insurance (2009-
2022), Member of the Executive Committee, KBC Group (2009-2022), Chair of the Board of Directors of Československá
obchodní banka, a. s. (ČSOB) and CEO (2014-2022), Member of the Board of Directors of KBC Group N.V., Group Chief Risk
Officer (2010-2014), CEO, Central and Eastern Europe and Russia (2009-2010), Senior General Manager, Banking, Central
Europe Business Unit, KBC Group, Brussels (2006-2009), CEO, Kereskedelmi es Hitelbank Rt., Hungary (2003-2006), General
Manager, Asia Pacific, KBC Bank N.V. (1999-2003), General Manager, Shanghai Branch, KBC Bank N.V. (1997-1999) and
Commercial Banking Head, Hong Kong Branch, Kredietbank N.V (1996).
In the past. Mr. Hollows served at Barclays Bank PLC as Chief Manager, Taipei Branch (1991-1995), Head of International Trade
Services, London (1989-1991), Manager, Export Finance Department, London (1986-1989), Corporate Manager, Watford
Branch (1984-1986), Assistant Manager, Cost Control Unit, General Manager’s Office (1982-1984) and Graduate Trainee (1978-
1982). He has also served as Chair, European Council of Commerce and Trade (1994-1995) and Deputy Chair, British Exporters
Association (1989-1991).
He holds a Master of Arts, Sidney Sussex College, Cambridge (law and economics).
Burkhard Eckes - Independent, Non-Executive Director
-
Membership in Board Committees: a) Audit Committee – Chairman, b) Nomination and Corporate Governance
Committee – Member, c) Board Risk Committee - Member
-
Year of birth: 1960
-
Nationality: German
-
Number of shares in Eurobank Holdings: None
Mr. Eckes served for more than 30 years at PwC as Senior Advisor, PwC Germany and EMEA (Europe, Middle East and Africa)
(2022 - 2023), Global Banking and Capital Markets (BCM) ESG Leader and member of the Global Financial Services (FS) ESG
Leadership Team (2019 - 2022), responsible for BCM activities in ESG consulting globally, EMEA BCM Leader and member of
the EMEA FS Leadership Team (2017 - 2022), responsible for BCM client relationships, projects and strategy in consulting and
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assurance services, including development and implementation of banking strategies, business models, supervisory and
regulatory requirements and practices, governance, risk management, accounting and reporting best practices, ESG, bank
restructuring and bank transformation advice, Member of the Global BCM Leadership Team (2009 - 2022), German BCM
Leader and member of the German FS Leadership Team (2009 - 2018), responsible for consulting and assurance services,
including HR, people development and statutory audits of large German banks, Chair of the Global Banking International
Accounting Group (2002 - 2023) and Partner (1996 - 2022).
Mr. Eckes also serves as Member of the Supervisory Board of Bayerische Landesbank (Munich) (since May 2024), as Member
of the Supervisory Board and Chair of the Audit Committee of Bank Pictet & Cie (Europe) AG, Frankfurt (since June 2023)
and as Member of the Supervisory Board and Chair of the Risk and Audit Committee of Solaris SE, Berlin (since April 2023).
n the past, Mr. Eckes has served as Chair of the Banks Working Party of Accountancy Europe (former FEE - Fédération des
Experts Comptables Européens) (2015 - 2022), Chair of the Banking Committee (Bankenfachausschuss – BFA) of the German
Institute of Public Auditors (Institut der Wirtschaftsprüfer - IDW) (2017 - 2022) and member of the BFA (2008 - 2022), Member
of the European Parlamentary Financial Services Forum - EPFSF (2012 - 2023) and Member of the Steering Committee
Sustainability of IDW (2020 - 2022).
He holds an MBA from the University of Saarland, Saarbrücken (1986) and is a Certified Public Auditor (German
Wirtschaftsfprüfer) (1996).
Evan Kotsovinos-Independent, Non-Executive Director
-
Membership in Board Committees: a) Board Risk Committee – Member, b) Board Digital and Transformation
Committee – Member
-
Year of birth: 1979
-
Nationality: Greek
-
Number of shares in Eurobank Holdings: None
Mr. Kotsovinos also serves as Vice President of Engineering and General Manager, Google, New York (since November 2022).
In the past. Mr. Kotsovinos served at American Express, New York as Senior Vice President and Global Head of Infrastructure,
(2019-2022). He also held senior management positions at Morgan Stanley: Asia Chief Information Officer, Hong Kong (2018-
2019), Head of Asia Infrastructure, China CIO, Hong Kong and Shanghai (2014-2018), Head of Infrastructure Hungary,
Executive Director, Budapest (2013-2014), EMEA CTO of Infrastructure, Global CTO of Cloud, Executive Director (2012-2014).
He holds a Masters in Finance (2010-2012), London Business School, a PhD in Computer Science (2001 -2004), University of
Cambridge and a BSc in Computer Science (1997-2001), University of Crete.
The Board is served by a competent and experienced company secretary, the short CV of whom is outlined below:
Ioannis Chadolias-Secretary to the BoD, Head of Group Company Secretariat
-
Secretary to the following Board Committees: a) Remuneration Committee, b) Nomination & Corporate Governance
Committee, c) Board Digital and Transformation Committee
-
Year of birth: 1970
-
Nationality: Hellenic
-
Number of shares: 30,000
Mr. Chadolias is responsible to lead the Group Company Secretariat unit and provide effective company secretarial support
to the Board and Board Committees of Eurobank and Eurobank Holdings as well as to their most important Executive
Committees, ensuring compliance with corporate law and regulations and maintaining effective corporate governance and
internal policy framework.
With nearly three decades of experience in corporate governance, compliance, and financial services, he previously served
as Deputy Company Secretary of Eurobank and Eurobank Holdings (2016–2021) and led the Group Corporate Governance
Division (2009–2016). Earlier roles at Eurobank include Subsidiaries Control and Compliance Manager (2006–2009). Before
joining the Bank, he held managerial positions, among others, at Megatrust (a stockbroker company-member of
Interamerican group) and Cosmote (the largest telecommunications group in Greece), while he began his career as an
auditor and business consultant at PwC.
He holds an MSc in Project Analysis, Finance, and Investment from the University of York and a Bachelor's in Economics from
the Athens University of Economics and Business and several professional qualifications.
5.4
Re-election, Cessation, and Independence of Board Members
There are no limitations on the re-election or cessation of Directors in the Articles of Association of Eurobank Holdings
(HoldCo) and Eurobank. In cases where a Board member’s term has expired, the Board retains the authority to continue
managing and representing the HoldCo/Bank without immediately replacing the expired members, provided that the
remaining members constitute more than half of the original number of members before the lapse event and, in any case,
are not fewer than three (3).
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As stipulated in the Articles of Association of HoldCo and Eurobank, and in compliance with Law 4548/2018, the Board may
consist of three (3) to fifteen (15) members. Additionally, in accordance with Law 4706/2020 on corporate governance,
independent non-executive directors are appointed by the General Meeting and must constitute at least one-third (1/3) of
the total number of Board members (rounded to the nearest integer), with a minimum of two (2) independent non-executive
directors.
For the year 2024, the Nominations and Corporate Governance Committees of HoldCo and Eurobank, in their meetings held
on May 28, 2024, and November 26, 2024, reviewed the independence criteria in accordance with Law 4706/2020, European
Commission Recommendation 2005/162/EC, and the Executive Committee Act of the Bank of Greece No. 224/23.12.2023
(BoG ECA 224/2023), which incorporated the Joint ESMA and EBA Guidelines on the Assessment of the Suitability of Members
of the Management Body and Key Function Holders. The Committees concluded that the Independent Non-Executive
Directors meet the applicable independence criteria.
5.5
Division of responsibilities
At the top level of Eurobank Holdings and Eurobank, there is a clear separation of responsibilities between governance and
executive management. The Chairperson oversees the governance functions, while the Chief Executive Officer (CEO) and
Deputy CEOs manage the operational and managerial aspects of the organization. Importantly, the roles of Chairperson
and CEO are held by different individuals, ensuring a balanced and effective leadership structure.
5.5.1
Chairperson
The Chairperson of the HoldCo and Eurobank Boards is a Non-Executive Director and does not concurrently serve as
Chairperson of the Risk or Audit Committees. Elected by all Board members, including Independent Non-Executive Directors,
in accordance with Law 4548/2018 and the Articles of Association, the Chairperson presides over Board meetings, ensuring
their effective organization and operation.
The Chairperson’s responsibilities include:
●
Organizing and coordinating the work of the Board.
●
Setting the Board’s agenda and ensuring adequate time for discussions, particularly on strategic matters.
●
Promoting a culture of open-mindedness and constructive dialogue.
●
Facilitating and promoting good relationships among Board members and ensuring the effective contribution of all
Non-Executive Directors.
●
Ensuring that Directors receive accurate, timely, and clear information and that their developmental needs are met
to enhance Board effectiveness.
●
Maintaining continuous communication with representatives of the Ministry of Finance, the Bank of Greece (BoG),
and other public authorities.
●
Ensuring that the Board as a whole has a satisfactory understanding of shareholder views.
●
Ensuring effective communication with all shareholders, promoting fair and equitable treatment, and fostering
constructive dialogue to understand their perspectives.
●
Working closely with the CEO and the Corporate Secretary to prepare Board meetings and ensure that Board
members are fully informed.
It is noted that the Board has not appointed a Senior Independent Director (SID).
5.5.2
CEO
The CEO of HoldCo and Eurobank is responsible for the development and execution of strategy in alignment with the Group's
vision. As the leader of the organization, the CEO is accountable for driving the achievement of the Group’s goals and
objectives, ensuring effective implementation of strategic initiatives and operational excellence.
5.5.3
Executive Directors
The Executive Directors of HoldCo and Eurobank, including the CEO and Deputy CEOs, are responsible for the day-to-day
management and oversight of the Group, as well as for executing its strategy, as defined by the Board. Their responsibilities
include:
●
Regularly consulting with Non-Executive Directors to assess the appropriateness of the implemented strategy.
●
Providing updates to the Board, in collaboration with senior managers, regarding market conditions and other
developments affecting HoldCo and Eurobank.
●
Promptly informing the Board, either jointly or individually in writing, by submitting a report with assessments and
proposals, in the event of crisis situations or anticipated risks that may impact the financial position of HoldCo and
Eurobank.
The CEO and Deputy CEOs fulfill their duties in accordance with the Internal Governance Control Manuals (IGCMs) of HoldCo
and Eurobank, which are endorsed by their respective Boards. These IGCMs provide a comprehensive framework for the
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governance, direction, and supervision of HoldCo and Eurobank, ensuring compliance with legal and regulatory corporate
governance standards.
5.5.4
Non-Executive Directors
The Non-Executive Directors are responsible for promoting and safeguarding the interests of HoldCo and Eurobank as a
whole. Their key responsibilities include:
●
Monitoring and evaluating the strategy and its execution, as well as assessing the achievement of objectives.
●
Ensuring effective oversight of executive members, including monitoring and evaluating their performance.
●
Reviewing and providing feedback on proposals submitted by the Executive Directors, based on available
information.
●
Approving, revising, and overseeing the implementation of the Group-level remuneration policy.
The Non-Executive Directors have the authority to request, in accordance with HoldCo’s and Eurobank’s internal procedures,
direct engagement with senior management. This is facilitated through regular presentations by department heads and
service leaders.
The Non-Executive Directors convene at least once a year, or as deemed appropriate, without the presence of executive
members, to evaluate their performance. These meetings do not constitute a formal Board body or committee. In 2024, the
Non-Executive Directors of HoldCo and Eurobank held meetings on February 29, 2024, and October 23, 2024.
HoldCo and Eurobank encourage Non-Executive Directors to remain well -informed on all matters handled by the respective
Board.
The Independent Non-Executive Directors are required to submit their own reports, either individually or collectively, to the
Annual or Extraordinary General Meeting of Shareholders, in addition to the reports presented by the Board.
5.6
Operation of the Board
The operation of the Board, including its meeting protocols, decision-making processes, and procedural guidelines, is defined
in the Internal Governance Control Manual (IGCM) of HoldCo and Eurobank. This manual, endorsed by the respective Boards,
is designed to adhere to legal and regulatory corporate governance standards, while also incorporating the relevant
provisions of the Articles of Association of HoldCo and Eurobank.
5.6.1
Board Meetings
The Board convenes regularly on a quarterly basis and on an ad hoc basis whenever required by law or the needs of HoldCo
and Eurobank. Each year, within the third quarter of the preceding year, the Board establishes an annual calendar of Board
and Committee meetings, along with an annual action plan. This plan is adjusted as necessary to ensure the timely,
comprehensive, and effective execution of responsibilities and the thorough review of all matters requiring decisions. Any
updates or modifications to the annual calendar are promptly communicated to all Board and Committee members to
facilitate their planning.
Board meetings are convened with a notice period of at least two (2) business days or five (5) business days if the meeting
is held outside the registered office of HoldCo or Eurobank, in accordance with Company Law 4548/2018. The invitation must
clearly state the agenda items. If the agenda is not explicitly stated, decisions may only be made if all Board members are
present or represented and no objections are raised regarding the meeting’s convocation and decision-making. Documents
submitted to the Board are typically circulated along with the agenda.
5.6.2
Dissemination of Information
The Board utilizes technological tools with necessary security specifications to facilitate real-time information sharing and
connectivity for Board members.
The CEO and senior management are responsible for ensuring that Board members have access to all necessary information
required for the performance of their duties at any time.
5.6.3
Quorum in the Board Meetings
The Board is considered to have quorum and may conduct valid meetings when at least half plus one of its members are
present or represented. The number of present or represented members may not fall below three (3), and any resulting
fraction when determin ing quorum is disregarded.
Board decisions are made by an absolute majority of the Directors present or represented. In the event of a tie vote, the
Chairperson does not have a casting vote.
5.6.4
Board Decisions and Minutes
Decisions are made following discussions that fully address the agenda items, ensuring that all members present are satisfied
with the deliberations.
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Board meeting minutes are kept by the Company Secretary, approved at subsequent Board meetings, and signed by all
members present. Additionally, the drafting and signing of minutes by all Board members or their representatives is
considered equivalent to a formal Board decision, even in the absence of a preceding physical meeting.
5.6.5
Company Secretary
The Boards of HoldCo and Eurobank are supported by a capable, skilled, and experienced Company Secretary, who ensures
adherence to internal procedures and policies, as well as compliance with relevant laws and regulations, thereby enabling
the effective and efficient operation of the Boards.
The Company Secretary holds a senior management position and is appointed or dismissed by the Board, based on the
recommendation of the Chairperson.
Serving as the head of the Group Company Secretariat, a unit within Eurobank, the Company Secretary, in collaboration with
the Chairperson, is responsible for:
●
Ensuring prompt, transparent, and comprehensive communication with the Board and its Committees.
●
Managing the integration of new Board and Committee members.
●
Organizing General Meetings of Shareholders.
●
Facilitating communication between shareholders and the Board.
●
Facilitating communication between the Board and senior management.
Additionally, the Company Secretary provides advice to the Board, through the Chairperson, on governance matters,
ensuring adherence to Board procedures.
All Board members have the right to access the advice and services of the Company Secretary, who is also responsible for
facilitating their orientation and supporting their professional development.
5.7
Attendance of Board members in the Board and Board Committees
In accordance with the HoldCo/Bank Board and Board Committees Attendance Policy (please refer to the relevant section
in this report), and within the scope of the HoldCo/Bank Nomination and Corporate Governance Committee’s (NomCo)
responsibility to regularly monitor Board members' attendance and assess whether escalation to the Board is necessary in
cases of inadequate participation, the NomCo conducted reviews of Directors' attendance on June 28, 2024, and December
16, 2024.
Furthermore, in 2024, the average attendance rate of Directors of HoldCo and Eurobank at Board and Board Committee
meetings was as follows:
Company
Meetings
Average ratio of
Directors’ attendance
2024
2023
2024
2023
HoldCo
20
24
98.8%
96.4%
Bank
25
23
98.16%
96.3%
During 2024, at individual level, the attendance of the Directors to the Board, stood above the 85% threshold. In addition, it
is noted that all Directors with missed Board attendances, provided representation proxies, leading to an attendance rate
(physical and under representation) of 100%.
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In particular, the Directors’ attendance rates at the Board meetings in 2024 were the following:
Name
Eurobank Holdings Board
Eurobank Board
Eligible to
attend
Attended in person
(# and %)
Eligible
to
attend
Attended in person
(# and %)
Georgios Zanias,
Chairperson, Non-Executive
Director
20
20
100%
25
25
100%
Georgios Chryssikos,
Vice-Chairperson, Non-
Executive Director
1
11
11
100%
13
13
100%
Fokion Karavias,
Chief Executive Officer
20
20
100%
25
25
100%
Stavros Ioannou,
Deputy Chief Executive Officer
20
20
100%
25
25
100%
Konstantinos Vassiliou,
Deputy Chief Executive
Officer
20
20
100%
25
25
100%
Bradley Paul Martin,
Non-Executive Director
20
18
90%
25
24
96%
Rajeev Kakar,
Non-Executive Independent Director
20
19
95%
25
24
96%
Jawaid Mirza,
Non-Executive Independent Director
20
20
100%
25
24
96%
Alice Gregoriadi,
Non-Executive Independent
Director
20
20
100%
25
25
100%
Irene Rouvitha Panou,
Non-Executive Independent
Director
20
20
100%
25
25
100%
Cinzia Basile,
Non-Executive Independent Director
20
20
100%
25
25
100%
Burkhard Eckes,
Non-Executive Independent Director
20
19
95%
25
25
100%
John Arthur Hollows,
Non-Executive Independent
Director
20
19
95%
25
24
96%
Evangelos Kotsovinos,
Non-Executive Independent
Director
2
9
9
100%
12
12
100%
1
Mr. Georgios Chryssikos decided not to pursue renewal of his term, therefore he remained in HoldCo/Bank BoDs until their
Annual General Meetings on 23.07.2024, when the new BoDs were appointed.
2
Mr. Evangelos Kotsovinos was appointed as BoD member on 23.07.2024.
The average Director’s attendance rates to HoldCo’s and Eurobank’s Board Committees, along with the individual
attendance rates per Board Committee are presented separately, under the subsection of the present Corporate
Governance Statement, referring to the Board Committees.
5.8
Directorships of Board members
The directorships held by Board members, including significant non-executive commitments to companies and non-profit
organizations, are notified prior to appointment to the Chairperson of the Nomination & Corporate Governance Committee
(NomCo) and/or NomCo, in accordance with the HoldCo and Bank External Engagements Policy. Additionally, Board
members must notify the Bank Group Company Secretariat of any changes to their directorships as soon as they occur.
The number of directorships a Board member may hold simultaneously is regulated by Article 83 of Law 4261/2014. Under
this provision, a Director may not hold more than one of the following combinations of directorships at the same time:
●
One (1) executive directorship with two (2) non-executive directorships, or
●
Four (4) non-executive directorships.
This restriction does not apply to directorships within the Group. Additionally, the Bank of Greece (BoG), as the competent
authority, may permit a Board member to hold one (1) additional non-executive directorship.
Furthermore, directorships in organizations that do not pursue predominantly commercial objectives are not counted for
regulatory purposes.
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As part of the Board’s overall effectiveness assessment, through which NomCo annually evaluates the knowledge, skills,
experience, and contribution of both individual Board members and the Board collectively, the directorships of Board
members were reviewed for 2024. This review confirmed that all Board members comply with the provisions of the Law.
5.8.1
HoldCo and Eurobank Board Members’ Directorships (including Directorships within Eurobank Group) as at
31.12.2024
Georgios Zanias – Chairperson, Non-Executive Director
●
Foundation for Economic and Industrial Research (IOBE) – Board Member¹
Fokion Karavias – Chief Executive Officer
●
Hellenic Bank Association (HBA) – Vice Chairman¹
Stavros Ioannou – Deputy Chief Executive Officer
●
Grivalia Management Company S.A. – Non-Executive Director
●
Be-Business Exchanges S.A. of Business Exchanges Networks and Accounting and Tax Services – Chairman²
●
Eurobank Cyprus Ltd – Non-Executive Director
●
Eurobank Private Bank Luxembourg S.A. – Non-Executive Director²
●
Eurobank Bulgaria AD – Non-Executive Director, Supervisory Board²
Konstantinos Vassiliou – Deputy Chief Executive Officer
●
Hellenic Exchanges – Athens Stock Exchange S.A. – Non-Executive Director
●
Marketing Greece S.A. – Non-Executive Director¹
●
Eurolife FFH General Insurance Single Member S.A. – Vice Chairman, Non-Executive Director³
●
Eurolife FFH Life Insurance Single Member S.A. – Vice Chairman, Non-Executive Director³
●
Eurolife FFH Insurance Group Holdings S.A. – Vice Chairman, Non-Executive Director³
●
Eurobank Equities Investment Firm Single Member S.A. – Non-Executive Director²
●
Eurobank Factors Single Member S.A. – Chairman²
Bradley Paul Martin – Non-Executive Director
●
Blue Ant Media Inc. – Non-Executive Director
●
AGT Food and Ingredients Inc. – Non-Executive Director
Rajeev Kakar – Non-Executive Independent Director
●
Gulf International Bank, Bahrain – Non-Executive Director
⁴
●
Gulf International Bank, Kingdom of Saudi Arabia – Non-Executive Director
⁴
●
Commercial International Bank (CIB) – Non-Executive Director
Jawaid Mirza – Non-Executive Independent Director
●
AGT Food and Ingredients Inc. – Non-Executive Director
●
Commercial International Bank (CIB) – Non-Executive Director
Alice Gregoriadi – Non-Executive Independent Director
●
Hellenic Blockchain Hub – Non-Executive Director¹
●
Climate Governance Initiative – Non-Executive Director
Cinzia Basile – Non-Executive Independent Director
●
Creditis Servizi Finanziari S.p.A. – Non-Executive Director
⁶
●
Brent Shrine Credit Union (trading name My Community Bank) – Non-Executive Chair of the Board¹
●
Zenith Service S.p.A. – Non-Executive Director
●
Nikko Europe Asset Management – Chairperson, Non-Executive Director
⁵
●
Nikko AM Global Umbrella Fund – Chairperson, Non-Executive Director
⁵
●
Fincentro Finance S.p.A. – Non-Executive Director
⁶
Irene Rouvitha Panou – Non-Executive Independent Director
●
Stelios Philanthropic Foundation – Member of the Board of Trustees¹
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Burkhard Eckes – Non-Executive Independent Director
●
Solaris SE – Non-Executive Member of the Supervisory Board
●
Bank Pictet & Cie (Europe) AG – Non-Executive Member of the Supervisory Board
●
Bayerische Landesbank – Non-Executive Member of the Supervisory Board
John Hollows – Non-Executive Independent Director
●
None
Evangelos Kotsovinos – Non-Executive Independent Director
●
None
Explanatory Notes
¹ Organization that does not pursue predominantly commercial objectives.
² Company that belongs to HoldCo Group and, along with directorships in other HoldCo Group companies, is considered one
(1) directorship for regulatory purposes.
³ Company that belongs to Eurolife FFH Group and, along with directorships in other Eurolife FFH Group companies, is
considered one (1) directorship for regulatory purposes.
⁴
Group companies, is considered one (1) directorship for regulatory purposes.
⁵
Group companies, is considered one (1) directorship for regulatory purposes.
⁶
Group companies, is considered one (1) directorship for regulatory purposes.
5.9
Board Role and Responsibilities
The principal duties and responsibilities of the HoldCo/Bank’s Board encompass a wide range of strategic, oversight, and
governance functions:
●
review, guide, and approve the strategy, major plans of action, risk policy, business and restructuring plans, and set
performance objectives,
●
monitor performance and oversee major capital expenditures, acquisitions, divestitures, and formation of new
entities, including special purpose vehicles,
●
ensure the availability of necessary financial and human resources, as well as an internal control system,
●
approve the annual budget and monitor its implementation quarterly,
●
approve the three-year business plan and monitor its implementation,
●
review and approve at least annually the risk strategy and risk appetite, ensuring alignment with overall business
strategy and other plans,
●
receive and discuss comprehensive risk reports on a quarterly basis,
●
develop and deliver objectives in agreed restructuring plans under applicable laws,
●
provide oversight to senior management and approve corporate governance practices and values,
●
set standards shaping corporate culture and integrate desired culture into systems, policies, and behaviors,
●
approve risk and capital strategy and monitor CEO and Executive Board implementation,
●
approve organization chart and related policies as required by law or internal processes,
●
ensure rigorous processes for monitoring organizational compliance with strategy, risk appetite, laws, and
regulations,
●
select, compensate, monitor, and replace key executives as needed and oversee succession planning,
●
align executive and board remuneration with long-term interests of Group and shareholders,
●
facilitate formal and transparent board nomination and election processes,
●
monitor and manage potential conflicts of interest among management, board, and shareholders,
●
ensure integrity of accounting and financial reporting systems, including independent audit and control systems,
●
review and monitor Non-Performing Loans (NPL) and Non-Performing Exposures (NPE) performance,
●
oversee disclosure and communication processes,
●
determine appropriate level of remuneration for Board and Committees’ members pending ratification,
●
address matters related to new technologies and environmental issues,
●
identify and engage with important stakeholders, understanding their interests and interactions with Group
strategy,
●
facilitate open dialogue with stakeholders and utilize various communication channels for effective engagement
and understanding.
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These duties collectively contribute to the effective governance, strategic direction, risk management, and sustainable
growth of the HoldCo/Bank and its operations.
5.10
Main issues the Board dealt with during 2024
In 2024, the Boards of HoldCo and Eurobank conducted a comprehensive review of the corporate strategy, the main risks to
the business, and the system of internal controls.
The main issues addressed by the Boards of Directors of Eurobank Holdings (HoldCo) and Eurobank in 2024 included the
following:
5.10.1
Eurobank Holdings
a) Governance
●
Proposed to the Annual General Meeting (AGM) the appointment of a new Board of Directors due to the expiration
of the previous Board’s term and the designation of independent non-executive members.
●
Approved the new composition of Board Committees and their revised Terms of Reference.
●
Convened the Shareholders’ General Meeting.
●
Discussed the 2023 annual evaluation of the Board and Board Committees and reviewed the Action Plan.
●
Reviewed the attendance of Directors at Board and Board Committee meetings.
●
Non-Executive Directors approved the CEO’s performance evaluation for 2023 and his financial and non-financial
objectives for 2024.
●
Approved key governance policies, including:
o
CEO Succession Planning Policy
o
Board of Directors Diversity Policy
o
Board Nomination Policy (also submitted to the AGM for approval)
o
Board and Board Committees Evaluation Policy
o
Group Governance Policy
o
Related Parties Transaction Policy
o
Key Function Holders Selection and Appointment Policy
o
Anti-Bribery and Corruption Policy
o
External Engagements Policy
o
Insider Dealing Guidelines
o
Conflict of Interest Policy
o
C-Level Succession Planning Policy
o
Senior Management Selection and Appointment Policy
●
Addressed remuneration matters, including:
o
Approval by Non-Executive Directors of the Remuneration Policy, the Variable Remuneration Framework,
and the Group Variable Remuneration Pool.
o
Proposal to the AGM for approval of the Board and Board Committees' fees for Non-Executive Directors,
the Remuneration Policy for Directors, the Remuneration Report for 2023, and the distribution of net profits
to senior management and employees.
●
Approved HoldCo’s Internal Governance Control Manual.
●
Received regular updates on Board Committee matters.
●
Approved the Board and Board Committees’ calendar for 2025.
●
Approved and submitted to the AGM the appointment of auditors for the financial year 2024.
●
Discussed the 2024 Supervisory Review and Evaluation Process (SREP) assessment.
b) Strategic Issues, Corporate, and Other Actions
●
Discussed various strategy matters.
●
Approved a share capital increase following the exercise of stock option rights and amended Article 5 of the Articles
of Association in accordance with Article 113(3) of Law 4548/2018.
●
Approved (subject to AGM approval) the dividend distribution for 2023, in line with the approved Dividend
Distribution Policy.
●
Approved an increase in the aggregate principal amount of notes issued under the Medium-Term Notes (EMTN)
program.
●
Approved the initiation of the merger process for the absorption of Eurobank Holdings by Eurobank (Project Square).
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c) Capital Adequacy
●
Approved the 2024 Internal Capital & Liquidity Adequacy Statements (CAS & LAS) as part of the Internal Capital &
Liquidity Adequacy Assessment Process (ICAAP & ILAAP 2024).
●
Approved the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) Plan 2025-2027.
d) Business Monitoring
●
Approved the 2023 annual financial statements and the 2024 interim financial statements.
●
Approved the Annual Budget 2025 and the Three -Year Business Plan (2025-2027), including an adverse scenario.
●
Discussed the Annual Budget 2025 and the Three-Year Business Plan (2025-2027), including assumptions for the
adverse scenario.
●
Reviewed 2024 performance versus budget.
●
Discussed business developments and liquidity.
●
Approved the Business and Capital Plan Policy and discussed the top-down Business and Capital Plan 2024-2026.
e) Risk Management and Internal Control
●
Approved the Group Chief Risk Officer succession plan.
●
Acknowledged the annual regulatory reports of Group Compliance and Group Internal Audit on the System of
Internal Controls (SIC).
●
Reviewed the Independent Triennial Evaluation of the System of Internal Controls (SIC) under Bank of Greece Act
2577.
●
Received updates on significant internal audit and compliance issues.
●
Reviewed significant legal and regulatory matters.
●
Approved the Risk Appetite Framework 2024 and Risk Appetite Statements.
●
Approved the Risk Identification and Materiality Assessment (RIMA) Framework and Reports.
●
Approved the updated Funding Plan, the Leverage Coverage Ratio (LCR), and the Net Stable Funding Ratio (NSFR)
forecast plan (2024-2026).
●
Addressed various issues related to Basel Committee on Banking Supervision (BCBS) standard No. 239 (BCBS 239),
including:
o
Discussed the action plan for the On-Site Inspection (OSI).
o
Approved the establishment of the Internal Validation Function for Risk Data Aggregation & Risk Reporting
(RRDAR) purposes and its Validation Framework.
o
Approved the BCBS 239 Overarching Framework.
o
Approved the Data Governance Deployment Plan.
●
Approved the consolidated Pillar 3 Reports (capital and risk management disclosures) for 2023, Q1 2024, Q2 2024,
and Q3 2024.
●
Received updates on significant risk issues, including the Group Chief Risk Officer’s Annual Report for 2023.
●
Reviewed the 2023 Annual Activity Report of the Audit Committee before submission to the AGM.
●
Approved new and revised risk policies and plans, including:
o
Revised Non-Financial Risk Management Policy
o
Revised Group Liquidity Risk Policy
o
Revised Market & Counterparty Risk Policy
o
Interest Rate Risk in the Banking Book (IRRBB) & Credit Spread Risk in the Banking Book (CSRBB) Policy
o
Outsourcing Policy
f) Transformation Project
●
Received regular updates on the transformation project.
5.10.2
Bank
a) Governance
●
Proposed to the Annual General Meeting (AGM) the appointment of a new Board of Directors due to the expiration
of the previous Board’s term and the designation of independent non-executive members.
●
Approved the new composition of Board Committees and their revised Terms of Reference.
●
Convened the Shareholders’ General Meeting.
●
Discussed the 2023 annual evaluation of the Board and Board Committees and reviewed the Action Plan.
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●
Reviewed the attendance of Directors at Board and Board Committee meetings.
●
Non-Executive Directors approved the CEO’s performance evaluation for 2023 and his financial and non-financial
objectives for 2024.
●
Approved key governance policies, including:
o
CEO Succession Planning Policy
o
Board of Directors Diversity Policy
o
Board Nomination Policy (also submitted to the AGM for approval)
o
Board and Board Committees Evaluation Policy
o
Group Governance Policy
o
Related Parties Transaction Policy
o
Key Function Holders Selection and Appointment Policy
o
Anti-Bribery and Corruption Policy
o
External Engagements Policy
o
Insider Dealing Guidelines
o
Conflict of Interest Policy
o
C-Level Succession Planning Policy
o
Senior Management Selection and Appointment Policy
o
AML/CFT and Sanctions Policy
●
Non-Executive Directors approved the Remuneration Policy, the Variable Remuneration Framework, and the Group
Variable Remuneration Pool.
●
Approved the Board and Board Committees' fees for Non-Executive Directors and the distribution of net profits to
senior management and employees, which were subsequently submitted to the AGM for approval.
●
Reviewed the implementation of the Group Subsidiary Board Remuneration Policy during 2023.
●
Approved the Bank’s Internal Governance Control Manual.
●
Approved the establishment of the Wealth Management Unit and the revised Eurobank Group Organizational Chart.
●
Received regular updates on Board Committee matters.
●
Approved the Board and Board Committees’ calendar for 2025.
●
Addressed remuneration matters, including variable remuneration and remuneration increases for senior executives
of international subsidiaries.
●
Approved and submitted to the AGM for approval the appointment of auditors for the financial year 2024.
●
Received updates from international banking subsidiaries.
●
Approved credit facilities to related parties.
b) Strategic Issues, Corporate, and Other Actions
●
Discussed various strategy matters.
●
Approved the updated Group Investment and Group Divestment Policies.
●
Approved an increase in the aggregate principal amount of notes issued under the Medium-Term Notes (EMTN)
program.
●
Approved the merger of the Bank with “ADEXA MONOPROSOPI ANONYMI ETAIREIA DIACHEIRISIS KAI
EKMETALLEFSIS AKINITON”.
●
Approved the initiation of the merger process for the absorption of Eurobank Holdings by Eurobank (Project Square).
●
Project Hermione: Discussed the Hellenic Bank transaction and approved the Mandatory Tender Offer (MTO).
●
Project Hermione II: Approved the acquisition of shares in Hellenic Bank and Demetra.
●
Project Hermione III: Approved the acquisition of an additional stake in Hellenic Bank.
●
Approved the signing of a binding agreement for the sale and transfer of 95% of the mezzanine and junior notes of
the Leon Securitization.
●
Approved strategic investments in private equity funds and the creation of a Venture Banking Unit to support these
initiatives.
●
Approved Arbitration Agreements and authorizations.
●
Approved the closure of the Representative Office in Moscow, Russia, and ratified related authorizations.
●
Approved the sale of eight (8) real estate properties (Praktiker portfolio).
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c) Capital Adequacy
●
Approved the 2024 Internal Capital & Liquidity Adequacy Statements (CAS & LAS) as part of the Internal Capital &
Liquidity Adequacy Assessment Process (ICAAP & ILAAP 2024).
●
Approved the securitization of the Bank’s receivables from business and other loan portfolios (Leon) and approved
synthetic securitizations (Wave V and Wave VI).
●
Approved the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) Plan 2025-2027.
●
Discussed the Deferred Tax Credit (DTC) acceleration plans.
d) Business Monitoring
●
Approved the 2023 annual consolidated financial statements and the 2024 interim consolidated financial
statements.
●
Approved the Annual Budget 2024 and the Three -Year Business Plan (2024-2026), including an adverse scenario.
●
Discussed the Annual Budget 2025 and the Three-Year Business Plan (2025-2027), including assumptions for the
adverse scenario.
●
Approved the Group’s Non-Performing Exposures (NPE) Targets for 2024-2026 and the NPE Management Strategy.
●
Reviewed significant subsidiary activities and strategic priorities.
●
Discussed 2024 performance versus budget.
●
Reviewed business developments and liquidity.
e) Risk Management and Internal Control
●
Approved the Group Chief Risk Officer succession plan.
●
Acknowledged the annual regulatory reports of Group Compliance and Group Internal Audit on the System of
Internal Controls (SIC).
●
Reviewed the Independent Triennial Evaluation of the System of Internal Controls (SIC) under Bank of Greece Act
2577.
●
Received updates on significant internal audit issues.
●
Reviewed compliance updates, including the Anti-Money Laundering Business Risk Assessment and the Compliance
Risk Assessment.
●
Received updates on significant legal and regulatory matters.
●
Approved the Risk Appetite Framework 2024 and Risk Appetite Statements.
●
Approved the Risk Identification and Materiality Assessment (RIMA) Framework and Reports.
●
Approved the updated Funding Plan, the Leverage Coverage Ratio (LCR), and the Net Stable Funding Ratio (NSFR)
forecast plan (2024-2026).
●
Addressed various issues related to Basel Committee on Banking Supervision (BCBS) standard No. 239 (BCBS 239),
including:
o
Discussed the action plan for the On-Site Inspection (OSI).
o
Approved the establishment of the Internal Validation Function for Risk Data Aggregation & Risk Reporting
(RRDAR) purposes and its Validation Framework.
o
Approved the BCBS 239 Overarching Framework.
o
Approved the Data Governance Deployment Plan.
●
Approved the consolidated Pillar 3 Report (capital and risk management disclosures) for 2023.
●
Received updates on credit and NPE-related issues.
●
Reviewed significant risk issues, including the Group Chief Risk Officer’s Annual Report for 2023.
●
Reviewed the 2023 Annual Activity Report of the Audit Committee before submission to the AGM.
●
Approved new and revised risk policies, including:
o
Non-Financial Risk Management Policy
o
Group Liquidity Risk Policy
o
Market & Counterparty Risk Policy
o
Interest Rate Risk in the Banking Book (IRRBB) & Credit Spread Risk in the Banking Book (CSRBB) Policy
o
Outsourcing Policy
●
Approved the appointment of the Head of Group Internal Audit (Group Chief Audit Executive).
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f) Transformation Project
●
Received regular updates on the transformation project.
5.10.3
Board Strategy Day
In addition to the formal meetings focused on Eurobank’s annual budget and three -year business plan, the Board holds an
annual strategy meeting, known as the Board Strategy Day. This meeting is separate from the regular Board of Directors’
meetings and is conducted in an informal setting, without the recording of formal minutes.
The purpose of the Board Strategy Day is to allow Board members the time and flexibility to engage in in-depth discussions
and deliberations on the top strategic initiatives that are critical to Eurobank’s growth and competitive positioning among
its peers.
During the most recent Board Strategy Day, held on September 26 and 27, 2024, various strategic issues were discussed.
Following the meeting, a memorandum was issued summarizing the key discussions.
5.11
Board and Board Committees overall effectiveness assessment
5.11.1
Board and Board Committees Evaluation
In accordance with the HoldCo/Bank Board and Board Committees Evaluation Policy (Section B4), the HoldCo/Bank
Nomination and Corporate Governance Committee (NomCo) is responsible for evaluating the structure, size, composition,
and performance of the Board and its Committees and making recommendations for necessary changes. The NomCo
oversees the annual self-evaluation of the Board’s and Committees' effectiveness (Internal Evaluation), typically using a self-
assessment questionnaire as the primary tool.
For the 2024 Internal Evaluation, all thirteen (13) Board members participated by completing anonymous self-assessment
questionnaires, which were administered via Diligent’s secure web-based platform. These questionnaires covered various
areas, including:
●
Strategy oversight
●
Engagement with management
●
Risk management
●
Board composition and dynamics
●
Chairperson’s role
●
Secretarial support
●
Effectiveness of Board Committees
Key Findings of the Internal Evaluation
The results indicated that the Boards of HoldCo and Eurobank continued to function effectively in 2023, maintaining a high
level of performance similar to the 2022 evaluation.
Strategy Oversight
●
Board members expressed a positive impression of the Board’s role in strategy, particularly regarding discussions
on major investments and transactions, which were viewed as robust and well-structured.
Relationship with Management
●
The Board’s relationship with management remained strong, with clear delineation of roles between the Board and
executive leadership.
Strategic HR and Remuneration
●
The Board demonstrated strong oversight of banking culture, ensuring alignment with corporate values and
governance principles.
Risk Governance and Internal Control
●
The Board maintained high standards in risk governance and internal control.
●
Key strengths included robust oversight of internal controls, conflict of interest policies, internal audit, and conflict
of interest management.
Board Profile and Composition
●
The Board was recognized for its adequate knowledge, skills, experience, and diversity.
●
Key strengths included international experience, as well as an appropriate size and structure.
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Board Functioning and Dynamics
●
The Board demonstrated robust annual agenda planning, with well -established and consistent procedures.
●
Board discussions included constructive reviews and challenges, fostering effective decision-making.
Board Chairperson's Role
●
The Chairperson’s leadership was recognized as a key factor in the Board’s overall effectiveness and success.
Board Secretarial Support
●
Board members highlighted the effectiveness of operational support, particularly in the quality of materials
submitted by management and the preparation of meeting minutes.
Opportunities for further enhancement
While the evaluation was overwhelmingly positive, some areas for enhancement were identified:
●
Further enhancing the Board’s strategic focus to provide greater long-term direction.
●
Strengthening the Board’s oversight of digital transformation initiatives.
●
Improving the monitoring of subsidiary performance, ensuring strategic alignment across the Group.
The main conclusions of the Internal Evaluation regarding Board Committees have been integrated into the relevant sections
detailing their functioning and operations.
5.11.2
Assessment of the knowledge, skills and experience (KSE) of the Board collectively as well as the KSE and
contribution of individual Board members.
In accordance with the HoldCo/Bank Board and Board Committees Evaluation Policy (see the relevant section in this
Statement), the NomCo is responsible for assessing the knowledge, skills, and experience (KSE) of the Board collectively, as
well as the KSE and contribution of individual Board members, and reporting to the Board accordingly.
5.11.3
Individual Evaluations
The individual evaluations (assessment of the Board Chairperson, Non-Executive Directors (NEDs), and Executive Directors)
consider the status of the member (executive, non-executive, independent), participation in committees, specific
responsibilities/projects undertaken, time commitment, behavior, and the application of knowledge and experience.
A. Assessment of the Board Chairperson
The Board Chairperson’s evaluation is part of the Internal Evaluation and is conducted by all other Board members through
the Board and Board Committees’ Self-Evaluation Questionnaire.
The 2024 evaluation of the HoldCo/Bank Board Chairperson remained very strong, consistent with the 2022 evaluation.
B. Assessment of the Non-Executive Directors’ (NEDs) Contribution to the Board (Excluding the Chairperson)
The Board Chairperson is responsible for conducting the assessment of NEDs' contributions and presenting the results to the
NomCo.
The assessment process follows these steps:
●
NomCo approves the NEDs’ self-evaluation questionnaire.
●
The questionnaire is distributed to the NEDs, and responses remain strictly confidential, accessible only to the Board
Chairperson or designated individuals.
●
The Board Chairperson conducts confidential one-on-one interviews with each NED, using the self-evaluation
questionnaire as a reference.
●
The Board Chairperson presents an overall report on the findings to the NomCo.
●
The Board Chairperson’s views on NEDs’ performance, knowledge, skills, and experience are discussed in the NomCo,
particularly during the (re)appointment and succession planning of Board members.
For the 2023 annual assessment, the Board Chairperson led the evaluation of the NEDs' contribution using a self-evaluation
questionnaire consisting of 10 questions focused on five key areas:
●
Contribution to overall Board profile and skillset
●
Board participation and quality of contributions to deliberations
●
Punctuality and attendance
●
Team spirit and demeanor
●
Independent thinking and constructive challenge
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The 2024 annual assessment demonstrated that the NEDs adequately meet expectations, effectively fulfilling their roles as
Directors of HoldCo/Bank.
C. Executive Directors’ Performance Evaluation
The evaluation of Executive Directors, including the CEO and Deputy CEOs, follows a structured process involving the CEO,
the NomCo, and the Board Remuneration Committee (RemCo). This annual evaluation is based on qualitative and
quantitative Key Performance Indicators (KPIs) approved by the Non-Executive Directors.
For the CEO’s evaluation, the RemCo proposes KPIs related to CEO remuneration, which are then submitted to the Non-
Executive Directors for approval. The CEO's performance is assessed based on these approved KPIs, and the results are
communicated to the CEO and considered in determining remuneration.
5.11.4
Collective Suitability Assessment
In 2024, alongside the Board of Directors’ performance evaluation, an assessment of the Board’s collective suitability was
conducted in accordance with the Joint ESMA/EBA Guidelines on the assessment of the suitability of members of the
management body and key function holders (EBA/GL/2021/06). This assessment was supported by the NomCo.
The evaluation examined whether the Board collectively possesses the necessary knowledge, skills, and experience to
understand the business model, strategy, risks, and governance -related matters. The assessment confirmed that the Board
is collectively suitable to effectively address these areas.
The evaluation also identified potential areas for improvement in specific business lines and products, various geographies
and subsidiaries, and risk management, particularly regarding cybersecurity and outsourcing risks. It was suggested that
initiatives could be considered to address these observations and ensure alignment with HoldCo/Bank strategic goals.
To enhance understanding in these areas, presentations at the Board and Board Committees level, along with targeted
external training and internal sessions, will continue to play a central role in strengthening the Board’s expertise.
5.12
In accordance with the Directors’ Induction and Continuous Professional Development Process, Mr. Evangelos Kotsovinos,
who joined the Board in 2024, underwent a comprehensive Induction Program designed to achieve several key objectives,
as outlined in Section B8.
Upon his appointment, Mr. Kotsovinos:
●
Received a Manual of Obligations detailing his main responsibilities towards the Supervisory Authorities and
HoldCo/Bank, including local regulations and Board procedures.
●
Attended meetings and presentations by Key Executives of HoldCo/Bank, providing a comprehensive overview of
the organization.
As part of the continuous professional development framework, in 2024, Board members participated in formal training
sessions on:
●
Challenger Banks and the Competitive Landscape
●
Developments and challenges in the new AML supervisory framework
●
Corporate Sustainability Reporting Directive (CSRD)
Additionally, Board members engaged in in-house meetings and discussions on Strategy, Business Planning, and Budgeting.
They received regular updates, reports, and presentations from senior management on operational and strategic targets,
market developmen ts, and updates on risk, audit, compliance, financial, human resources, legal, and regulatory matters.
Board members also received regular and ad-hoc research and economic bulletins from Eurobank's Economic Analysis and
Financial Markets Research.
6.
Board Committees
The Boards of HoldCo and Eurobank are assisted in carrying out their duties by Board Committees, to which they delegate
specific responsibilities.
The HoldCo/Bank Board Committees include:
●
Audit Committees (ACs)
●
Board Risk Committees (BRCs)
●
Remuneration Committees (RemCos)
●
Nomination Committee (NomCo)
●
Bank Board Digital & Transformation Committee (BDTC)
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6.1
Governance and Operations of Board Committees
6.1.1
Board Committees’ members
The members of HoldCo/Bank Board Committees are appointed by the respective Board, following a recommendation from
the NomCo and in accordance with the applicable legal and regulatory framework.
The tenure of Committee members coincides with the tenure of the respective Board, with the option for renewal. However,
total service on the Committees must not exceed nine (9) years.
6.1.2
Board Committees’ Terms of Reference (ToR)
The ToR of each Board Committee outlines its purpose, responsibilities, and modus operandi. It is reviewed annually and
revised if necessary unless significant changes require an earlier revision. The ToR is approved by the Board and made publicly
available on the HoldCo or Bank website.
6.1.3
Board Committees’ meetings
The minimum number of annual meetings for each Board Committee is defined in its ToR.
Only Committee members have the right to attend meetings, though other individuals, such as Management members,
external auditors, and external advisors, may be invited when appropriate and necessary. The number of invitees is kept to
a minimum to preserve the efficiency and effectiveness of the meeting.
Members may attend meetings remotely via video or audio conference. A mandatory minimum attendance requirement
applies, as set out in the Board and Board Committees’ Attendance Policy (please refer to the relevant section in this
Statement).
6.1.4 Quorum in the Board Committees’ Meetings
A quorum is established when more than half of the Committee members are present or represented, provided that at least
three (3) members are present, including the Chairperson or, in the case of HoldCo/Bank ACs and BRCs, the Vice Chairperson.
Each Committee member may validly represent only one other Committee member. Representation cannot be assigned to
individuals outside the Committee.
6.1.5
Board Committees’ Decisions
Resolutions are validly adopted by an absolute majority of the members present or represented.
In the event of a tie, the Chairperson (or in their absence, the Vice Chairperson for HoldCo/Bank ACs and BRCs) or the most
senior Independent Non-Executive Director present (based on tenure) for HoldCo/Bank RemCos, NomCos, and Bank BDTC,
has the casting vote.
The Board is informed whenever an AC decision is not reached unanimously.
Minutes may be drawn up and signed by circulation by all Committee members, which is equivalent to a valid decision, even
if no formal meeting takes place.
6.1.6
Board Committees’ Secretary and Minutes
Each HoldCo/Bank Board Committee appoints its Secretary, who reports to the Group Company Secretariat and
collaborates with the Committee Chairperson and other relevant parties.
The Secretary is responsible for:
●
Recording the proceedings and decisions of the Committee meetings.
●
Listing the names of attendees and documenting action plans and follow-ups.
●
Issuing extracts of minutes as required.
●
Disseminating decisions, actions, and follow -ups to the relevant parties.
6.1.7
Board Committees’ Performance Evaluation
The performance of Board Committees is evaluated annually, in line with the Board and Board Committees Evaluation Policy
(please refer to the relevant section in this Statement).
6.2
Audit Committee
The primary function of the HoldCo/Bank Audit Committee (AC) is to assist the respective Board in discharging its oversight
responsibilities primarily relating to:
●
the review of the adequacy of the Internal Control and Risk Management systems and the compliance with rules
and regulations monitoring process,
4
www.eurobankholdings.gr
www.eurobank.gr
).
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●
the review of the financial reporting process and satisfaction as to the integrity of the HoldCO’s Financial
Statements, also taking into account the provisions of L. 5164/2024,
●
the External Auditors’ selection, performance and independence,
●
the effectiveness and performance of the Internal Audit and of the Compliance function.
In addition, in the context of AC’s responsibility to safeguard External Auditors’ independence, the AC ensures that the nature
of non-audit services, prior to their being undertaken by the External Auditors, has been reviewed and approved as required
and that there is proper balance between audit and non-audit work in accordance with Group’s / Bank’s policy on External
Auditors’ Independence.
6.2.1
AC Membership/Composition
The HoldCo/Bank’s ACs are Committees consisted exclusively by Board members and their compositions have been approved
by the General Meetings of the Shareholders (as per the legal framework), following the recommendation of the NomCos to
the Boards. The Chairperson of the Committees is appointed by the members of the Committees, while the Committee’s
members may also appoint a Vice Chairperson.
All AC members have sufficient knowledge in the field of HoldCo/Bank’s activities and the necessary skills and experience to
carry out their duties and meet the requirement of established knowledge and experience in auditing and/or accounting.
The ACs consist of five (5) independent non-executive Directors of the Board. In particular, the HoldCo/Bank’s AC composition
is outlined below:
AC Chairperson:
Burkhard Eckes,
Non-Executive Independent Director of the Board
AC Vice-Chairperson:
Jawaid Mirza,
Non-Executive Independent Director of the Board
AC Members:
Irene Rouvitha Panou,
Non-executive Independent Director of the Board
Rajeev Kakar
,
Non-Executive Independent Director of the Board
Alice Gregoriadi,
Non-Executive Independent Director of the Board
It is noted that in line with the provisions of article 44 of law 4449/2017, as in force, and further to the decision of the
HoldCo/Bank’s Annual General Meetings of Shareholders as of 23.07.2024 regarding the recomposition of the Audit
Committees and more specifically regarding their type, composition and term of office; and the BoDs’ decision of 23.07.2024
regarding the membership of the AC, following the relevant recommendations by the NomCos of28.05.2024, the ACs decided
on their constitution and on the appointment of their Chairman.
Compared to the previous ACs’ composition and following the recomposition of the ACs on 23.07.2024, the ACs’ members
increased from four (4) to five (5) members, with Ms. Alice Gregoriadi being the new member of the ACs. In addition, Mr.
Burkhard Eckes (previously Vice-Chairperson of the ACs) swapped his AC status with Mr. Jawaid Mirza (previously
Chairperson of the ACs) and was appointed Chairperson of the ACs, while Mr. Jawaid Mirza was appointed Vice-Chairperson
of the ACs.
6.2.2
AC Meetings
The HoldCo/Bank’s ACs meet at least eight (8) times per year or more frequently, as circumstances require, report on their
activities to the HoldCo/Bank’s Boards on a quarterly basis and submit the minutes of their meetings and the annual Activity
Reports (before their submission to the HoldCo/Bank Shareholders’ Annual General Meeting) to the HoldCo/Bank’s Boards.
Apart from the AC members, the BRC’s members may also attend AC sessions when common issues are discussed (e.g.
compliance risk assessment). The Chairperson of the AC may also invite to the meetings other executives of the Group or
external advisors or experts, as deemed appropriate.
6.2.3
Attendance to the AC Meetings
During 2024 the attendance details for the Audit Committee were as follows:
Company
Meetings
Average ratio of
Directors’ attendance
2024
2023
2024
2023
HoldCo
15
17
97%
100%
Bank
14
16
98%
100%
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The Directors’ individual attendance rates at the AC meetings in 2024 were the following:
Name
Eurobank Holdings AC
Eurobank AC
Eligible to attend
Attended in person
(# and %)
Eligible to
attend
Attended in person
(# and %)
Burkhard Eckes,
AC Chairperson
15
14
93%
14
14
100%
Jawaid Mirza,
15
15
100%
14
14
100%
Irene Rouvitha Panou,
AC member
15
15
100%
14
14
100%
Rajeev Kakar,
15
14
93%
14
13
93%
Alice Gregoriadi,
AC member
7
7
100%
7
7
100%
It is noted that in 2024, Mr. B. Eckes provided representation proxy for his missed meeting in HoldCo’s AC and Mr. R. Kakar
provided representation proxies for his missed meetings in HoldCo/Bank’s ACs, leading their overall attendance rate (physical
and under representation) at 100% in HoldCo/Bank’s ACs.
6.2.4
AC’s Performance Evaluation
At the 2024 self-evaluation conducted by the AC, its members expressed satisfaction with the committee's structure,
effectiveness and leadership. They commented on the AC's efficient use of time and scheduling and the well-structuring
meetings that ensure critical issues are addressed appropriately. The Chairperson of the AC was praised for his ability to
ensure continuity and strong guidance during the transition and to encourage critical discussions and inclusive participation.
The evaluation also highlighted opportunities for further enhancement Members suggested expanding the Committee’s
mandate to include sustainability oversight, given its growing importance in regulatory and strategic discussions.
Strengthening coordination with subsidiary audit committees and addressing cybersecurity and data privacy with regular
updates and improved controls were also highlighted as possible priorities. Finally, leveraging technology and analytics to
enhance risk identification, mitigation, and audit processes remains another focus area
6.2.5
ACs’ Activity in 2024
For 2024, ACs have amongst others:
Eurobank Holdings
●
Decided on their constitution/reconstitution and the appointment of their Chairman.
●
Reviewed and approved the Compliance Mandate.
●
Approved the annual plans of Internal Audit and Compliance and monitored their progress.
●
Reviewed and discussed reports related to Internal Audit and Compliance, including quarterly reports from the
Internal Audit and Compliance functions.
●
Discussed the progress of actions taken to resolve Internal Audit findings.
●
Received updates on various internal control, legal, and regulatory issues.
●
Ensured that an annual evaluation of the System of Internal Controls (SIC) for 2023 was performed and documented
by Internal Audit. This report, along with the AC’s assessment, was further submitted to the Board of Directors (BoD)
and subsequently to the Bank of Greece (BoG) as required.
●
In line with the BoG Governors Act 2577/2006, acknowledged the annual Group Compliance report on compliance
activities for 2023. This report, along with the AC’s assessment, was further submitted to the BoD and subsequently
to BoG as required.
●
During the first quarter of 2024, discussed and submitted to the Board Risk Committee (BRC) and BoD for
acknowledgment, the independent triennial Evaluation of the System of Internal Controls (SIC) conducted by Grant
Thornton (Independent Evaluation) in accordance with BoG Act 2577/2006. The Independent Evaluation, along with
the AC’s assessment, was submitted to BoG as required.
●
Reviewed and submitted to the BoD for approval the revised Related Party Transactions Policy.
●
Reviewed and, depending on the case, ratified, approved, or approved and submitted to the BoD for
approval/information:
o
The revised MiFID II Product Governance Policy.
o
The Group Anti-trust Compliance Policy.
o
The revised Policy for Reporting Illegal or Unethical Conduct or Violations of European Union Law.
o
The revised Anti-Bribery and Corruption Policy.
o
The Policy for the Prevention and Detection of Market Abuse.
o
The Insider Dealing Guideline.
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o
The revised Conflict of Interest Policy.
o
The revised Code of Conduct and Ethics.
●
In the context of the Policy for Reporting Illegal or Unethical Conduct or Violations of European Union Law, approved
and submitted to the BoD for approval the appointment of the Report Receiving & Monitoring Officer (RRMO) and
the assistant RRMO.
●
Discussed financial results with Management, Internal Audit, and External Auditors.
●
Reviewed and cleared the financial statements and other financial reports and trading updates prior to their release.
●
Discussed with Management the implementation of corrective actions to recommendations made by Internal and
External Auditors and Regulatory Authorities.
●
Assessed the effectiveness, objectivity, and independence of the External Auditors for the financial year 2023,
discussed the results of their evaluation with Management and Internal Audit, and communicated the final results
to the Board and the External Auditors.
●
Proposed to the Board and the Annual General Meeting (AGM) the appointment of the External Auditors for the
financial year 2024.
●
Discussed and approved the Global Group Audit and Assurance Fees for 2024.
●
Approved the External Auditors’ Independence Policy and monitored, in line with this policy, the non-audit services
provided by the External Auditor in 2024.
●
Reviewed and approved the updated External Auditors Tendering Policy and Procedure.
●
Reviewed:
o
The eligibility of audit firms for the statutory audit versus IT delivery sourcing for strategic IT projects.
o
The five-year rolling plan (2025-2029) regarding the eligibility of audit firms for the statutory audit of Eurobank
Ergasias Services and Holdings Group, as well as potential conflicts of interest with eligible audit firms. This
review was conducted in accordance with Greek Law 4449/2017, EU Regulation 537/2014, and the requirements
of the International Code of Ethics for Professional Accountants issued by the International Ethics Standards
Board for Accountants (IESBA).
●
Initiated the External Auditors’ tendering process for the Group statutory audit of 2027.
●
Assessed the performance of the Internal Auditor and the Head of Compliance/Anti-Money Laundering Reporting
Officer for 2023.
●
Received updates on the progress of the Annual Budget.
●
In accordance with the provisions of Law 2533/1997, reviewed reports on substantial stock transactions by HoldCo’s
Directors and General Managers that meet the criteria set in Law 2533/1997 and notified the Board.
●
Approved and submitted to the Board for further submission to the AGM the annual AC Activity Report for 2023.
●
Discussed the Annual AC Plan for 2025.
●
Participated in Board Risk Committee (BRC) meetings, during which discussions included:
o
Accounting policies, including hedge accounting policy.
o
Progress reports on the Corporate Sustainability Report Directive (CSRD) Program Implementation.
o
Various risks, including non-financial risks, climate-related and environmental risks, and the Environmental and
Social Governance (ESG) Strategy.
Eurobank
●
Decided on its constitution/reconstitution and the appointment of its Chairman.
●
Reviewed and approved the revised Compliance Mandate.
●
Jointly with the BRC, discussed and further submitted to the BoD for discussion the Business Risk Assessment Exercise
(AML, CFT, Sanctions) and the Compliance Risk Assessment.
●
Approved and further submitted to the BoD for information the annual and triennial Plans of Internal Audit and
Compliance and monitored their progress.
●
Reviewed and discussed regular and ad hoc reports with information relating to the System of Internal Controls,
including quarterly reports from Group Internal Audit, Group Compliance, the Operational Risk Sector, Clients
Relations Office, etc.
●
Received updates on various legal and regulatory issues.
●
Discussed extensively AML issues, including the legal and regulatory framework for the EU’s Anti-Money Laundering
Authority (AMLA) along with the respective implementation timeline for Eurobank.
●
Discussed various Group Compliance issues, including the Compliance Transformation Project.
●
Ratified the scoping memo and approved the external advisor (i.e., EY) for the review of Group IA’s Risk Assessment
and Audit Planning Methodology (External Review). Subsequently, after its completion, the AC approved the External
Review and the respective action plan.
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●
Discussed the quality assessment of the Group Internal Audit activities, covering the operations of the entire
Eurobank Group in Greece and its subsidiaries abroad, against the Internal Audit Standards, conducted by an
external advisor (i.e., Ernst & Young (EY)). EY identified 12 improvement opportunities, and the AC approved an action
plan for their implementation.
●
In line with the BoG Act 2577/2006, ensured that an annual evaluation of the System of Internal Controls for the year
2023 was performed and documented by the Internal Audit Group. This report, along with the AC’s assessment, was
further submitted to the BoD and subsequently to the BoG as required.
●
During the 1Q 2024 AC meeting, discussed and further submitted to the Board Risk Committee (BRC) and BoD for
acknowledgment, the independent triennial Evaluation of the System of Internal Controls (SIC) per BoG Act
2577/2006 conducted by Grant Thornton (Independent Evaluation). The Independent Evaluation, along with the AC’s
assessment of the evaluation, was submitted to the Bank of Greece (BoG) as required.
●
In line with the BoG Governors Act 2577/2006, reviewed the annual Group Compliance Sector’s reports on AML and
compliance activities of the Bank for the year 2023. These reports, along with the AC’s own assessment, were further
submitted to the Board and the BoG.
●
Reviewed and submitted to the BoD for approval the revised Related Party Transactions Policy.
●
Reviewed and, depending on the case, approved or approved and further submitted to the BoD for
approval/information:
o
The revised MiFID II Product Governance Policy
o
The new MiFID II Marketing Communications Policy
o
The revised Appropriateness Assessment Policy
o
The revised Inducements Policy
o
The revised Client/Investor Categorization Policy
o
The revised Suitability Assessment Policy
o
The AML/CFT and Sanctions Policy
o
The Group Anti-trust Compliance Policy
o
The revised Policy for Reporting Illegal or Unethical Conduct or Violations of European Union Law
o
The revised Anti-Bribery and Corruption Policy
o
The Policy for the Prevention and Detection of Market Abuse
o
The Insider Dealing Guideline
o
The revised Code of Conduct and Ethics
o
The revised Conflict of Interest Policy
o
The Order Execution Policy
●
In the context of the Policy for Reporting Illegal or Unethical Conduct or Violations of European Union Law
(mentioned above), approved and further submitted to the BoD for approval the Report Receiving & Monitoring
Officer (RRMO) and the Assistant RRMO.
●
Discussed with Management, Internal Audit, and External Auditors issues relating to the financial results.
●
Discussed/approved (depending on the case) various Group Internal Audit issues, including its staffing, strategy,
budget, and training.
●
Received an update regarding the gap assessment performed through interviews, workshops, and documentation
analysis by an external consultant (i.e., PwC) for the evaluation of the readiness of Eurobank’s Group Internal Audit
function to conform with Global International Audit Standards (GIAS).
●
Strengthened its monitoring of the effectiveness of the IA functions of subsidiaries (in Greece and abroad).
●
Reviewed and cleared the consolidated financial statements.
●
Discussed with Management the implementation of corrective actions to recommendations made by Internal and
External Auditors and Regulatory Authorities.
●
Assessed the effectiveness, objectivity, and independence of the External Auditors for the financial year 2023,
discussed the results of their evaluation with Management and Internal Audit, and communicated the final results
to the Board and the External Auditors.
●
Approved the External Auditors’ Bank Group Audit and Assurance Fees for 2024.
●
Proposed to the Board and the Annual General Meeting of Shareholders for approval the appointment of the
External Auditors for the financial year 2024.
●
Approved the External Auditors’ Independence Policy and monitored, in line with this Policy, the non-audit services
provided by the External Auditor in 2024.
●
Received an update on the External Auditor’s tendering process for the Group statutory audit of 2027.
●
Assessed the performance of the Chief Audit Executive and the General Manager Head of Group Compliance/Anti-
Money Laundering Reporting Officer.
●
Monitored the memberships and the modus operandi of the Audit Committees of the banking subsidiaries, as
required, and reviewed their Activity Reports.
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●
Approved banking subsidiaries’ AC Chairs appointed during 2024.
●
Discussed key Audit Committee issues with the Chairpersons of banking subsidiaries.
●
In accordance with the provisions of Law 2533/1997, the Audit Committee reviewed reports on substantial stock
transactions of the Bank’s Directors and General Managers that met the criteria set in Law 2533/1997 and notified
the Board.
●
Approved and notified the Board for further submission to the Annual General Meeting the annual AC Activity Report
for 2023.
●
Discussed the Annual AC Plan for 2025.
●
At the BRC meetings that the AC members participated in, discussions included progress reports for the Corporate
Sustainability Report Directive (CSRD) Program Implementation, risk issues such as operational risk, IT security risk,
and climate-related and environmental risk, the MREL plan, and the Environmental and Social Governance (ESG)
Strategy.
It is noted that in accordance with the Law 4449/2017 as in force, the HoldCo/Bank ACs submit an annual activity report to
their Shareholders’ Annual General Meeting on the issues dealt with by the ACs during the previous year, also including a
description of the sustainability policy followed by each entity.
The 2024 HoldCo/Bank ACs Activity Reports which are also part of the 2024 HoldCo/Bank Annual Financial Reports, refer to
the AC activity during 2024, the issues addressed and the sustainability policy.
6.3
Board Risk Committee
The purpose of the HoldC/Bank’s Board Risk Committee (BRC) is to assist the Board in the following risk-related issues:
●
to advise and support BoD regarding the monitoring of overall actual and future risk appetite and strategy, taking
into account all types of risks to ensure that they are in line with the business strategy, objectives, corporate culture
and values
●
to provide BoD with recommendations on necessary adjustments to the risk strategy
●
to assist BoD in overseeing the implementation of risk strategy and the corresponding limits set
●
to oversee the implementation of the strategies for capital and liquidity management as well as for all material risks
of the Group, as identified through the Risk Identification and Materiality Assessment (RIMA) process and listed in
the relevant RIMA report, in order to assess their adequacy against the approved risk appetite and strategy. Material
risk types include financial and non-financial risks, indicatively credit risk, market risk, liquidity risk, interest rate risk
and credit spread risk in the banking book, counterparty risk, operational risk, climate risk, country risk, reputational
risks, conduct risk, risks stemming from strategic projects
●
to oversee the progress made to enhance resolvability in accordance with the requirements of the Resolution
Authorities (for Bank BRC only).
●
to review a number of possible scenarios, including stressed scenarios, to assess how the risk profile would react to
external and internal events
●
to oversee the alignment between all material financial products and services offered to clients and the business
model and risk strategy. The BRC should assess the risks associated with the offered financial products and services
and take into account the alignment between the prices assigned to and the profits gained from those products
and services (for Bank BRC only)
●
to provide advice on the appointment of external consultants that BoD may decide to engage for advice or support
●
to assess the recommendations of internal or external auditors and follow up on the appropriate implementation
of measures taken
●
to ensure that an appropriate risk management framework has been developed which is embedded in the decision-
making process (e.g. new products and services introduction, risk adjusted pricing, internal risk models, risk adjusted
performance measures and capital allocation)
●
to define the risk management principles and ensure that there are the appropriate methodologies, modeling tools,
data sources and sufficient and competent staff to identify, assess, monitor and mitigate risks
●
to set, approve and oversee the implementation of the risk culture, core values and expectations regarding all
material risks.
6.3.1
BRC Membership/Composition
The BRCs consist of five (5) independent non-executive Directors. The Chairperson qualifies as independent member with a
solid experience in commercial banking and preferably risk and/or Non-Performing Exposures management and is familiar
with the Greek and international regulatory framework. The appointment of the Chairperson and the Vice-Chairperson shall
go through the NomCos’ proposal process and approved by the Board.
5
HoldCo/Bank BRCs’ Terms of Reference may be found at the HoldCo/Bank websites (
www.eurobankholdings.gr
www.eurobank.gr
).
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The BRCs’ composition is outlined below:
BRC Chairperson:
Rajeev Kakar,
Non-Executive Independent Director of the Board
BRC Vice-Chairperson:
Non-executive Independent Director of the Board
BRC Members:
Cinzia Basile,
Burkhard Eckes,
Non-Executive Independent Director of the Board
Evangelos Kotsovinos
, Non-executive Independent Director of the Board
It is noted that during 2024 and following NomCos’ recommendations for the recomposition of the HoldCo/Bank’s BoDs
Committees, the HoldCo/Bank’s BoDs decided on30.05.2024, 28.06.2024 and 23.07.2024,the following:
●
to appoint Messrs. Burkhard Eckes and Evangelos Kotsovinos as new BRC members, in replacement of Ms. Alice
Gregoriadi and Mr. Bradley Paul Martin respectively.
●
Mr. John Arthur Hollows to swap his BRC status with that of Ms. Cinza Basile, i.e. Mr. John Arthur Hollows to undertake
the position of BRC’s Vice Chair (previously held the position of BRC’s member) whereas Ms. Alice Gregoriadi to
undertake the position of BRC’s member (previously held the position of BRC’s Vice Chair).
6.3.2
BRC Meetings
The BRC meets at least ten (10) times per year and the Chairperson updates the BoD members on the material matters
covered by the Committee during the previous period (if any) at the quarterly meetings of the BoD.
Apart from the BRC members, the AC’s members may also attend BRC sessions when common issues are discussed (i.e. on
operational risk matters, on IT security and cyber risks). The Chairperson of the BRC may also invite to the meetings other
executives of the Group or external advisors or experts, as deemed appropriate.
6.3.3
Attendance to the BRC Meetings
During 2024, attendance details for the Board Risk Committee were as follows,
Company
Meetings
Average ratio of
Directors’ attendance
2024
2023
2024
2023
HoldCo
12
12
95%
100%
Bank
12
13
95%
100%
The Directors’ individual attendance rates at the BRC meetings in 2024 were the following:
Name
Eurobank Holdings
BRC
Eurobank BRC
Eligible to attend
Attended in person
(# and %)
Eligible to
attend
Attended in
person
(# and %)
Rajeev Kakar,
BRC
Chairperson
12
11
92%
12
11
92%
John Arthur Hollows,
12
11
92%
12
11
92%
Cinzia Basile,
BRC member
12
12
100%
12
12
100%
Burkhard Eckes,
5
5
100%
5
5
100%
Evangelos Kotsovinos,
BRC member since 23.07.2024
5
4
80%
5
4
80%
Bradley Paul L. Martin,
BRC member until 23.07.2024
7
7
100%
7
7
100%
Alice Gregoriadi,
BRC member until 23.07.2024
7
7
100%
7
7
100%
It is noted that in 2024, Messrs. Rajeev Kakar, John Arthur Hollows and Evangelos Kotsovinos provided representation proxies
for their missed meetings in HoldCo/Bank’s BRCs, leading their overall attendance rate (physical and under representation)
at 100% in HoldCo/Bank’s BRCs.
6.3.4
BRCs’ Performance Evaluation
The 2024 self-evaluation conducted by the HoldCo/Bank BRCs indicates overall satisfaction among its members regarding
the Committee's leadership, participation, and the robustness of discussions. Members of the BRCs expressed satisfaction
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with the Chairperson’s preparedness and ability to guide discussions. Additionally, members of the BRCs are also well-
prepared for meetings, ensuring meaningful participation in discussions.
he evaluation also highlighted opportunities for further enhancement. In particular, enhancements in meeting materials were
noted, scoring 4.80, yet further improvements were recommended in areas such as market risk reporting and non-financial
risk oversight, particularly operational and cybersecurity risks.
Strengthening oversight of subsidiaries was identified as a priority too, similarly to the Audit Committee. Members
highlighted specific areas, such as credit, concentration, and merger -related risks in Cyprus. Sensitivity analyses on consumer
lending profitability and the euro’s impact on the Bulgarian market were also recommended. Cybersecurity governance and
operational resilience emerged as focus areas, with calls for annual deep-dive sessions and greater use of data analytics
and stress testing to improve risk identification and mitigation. Coordination with the Audit Committee remained effective
but saw a slight decline in its score, moving from 4.80 to 4.60.
6.3.5
BRCs’ Activity in 2024
For 2024, the BRCs have, amongst others:
Eurobank Holdings
●
Monitored the Group’s overall actual and future risk appetite and strategy, ensuring alignment with the business
strategy, objectives, corporate culture, and values of the Group, while considering all types of risks.
●
Approved various regulatory and risk-related reports, policies, and frameworks, including:
o
Internal Capital & Liquidity Adequacy Assessment Processes (ICAAP/ILAAP)
o
Capital Adequacy Statements (CAS) and Liquidity Adequacy Statements (LAS)
o
Risk Identification and Materiality Process (RIMA) Report
o
Group Recovery Plan
●
Approved the Group Chief Risk Officer (GCRO) Annual Report.
●
Approved the Group Risk and Capital Strategy, the Risk Appetite Framework (RAF), and the Risk Appetite
Statements (RAS), including the RAS dashboard.
Eurobank
●
Monitored Eurobank’s overall actual and future risk appetite and strategy, ensuring that all types of risks were
aligned with the institution’s business strategy, objectives, corporate culture, and values.
●
Oversaw both qualitative and quantitative aspects of credit, market, liquidity, and operational risks.
●
Reviewed Information and Communication Technology (ICT) Risk and Security, including Cyber Security, Physical
Security, and Fraud Detection.
●
Approved various regulatory and other reports, risk policies, and frameworks, including:
o
Non-Performing Exposures (NPE) Targets submission for 2024-2026 and the NPE management strategy.
o
Liquidity Report.
o
Counterparty and Issuer Risk Report.
o
Interest Rate Risk in the Banking Book / Credit Spread Risk in the Banking Book.
o
Market Risk Developments Report.
o
Group Operational and Non-Financial Risk Report.
o
Asset Quality Monthly and Quarterly Update.
o
Impairment Results: Quarterly Update.
o
New Disbursements Performance Report.
o
Forbearance Report.
o
Quarterly NPE & Securitizations Performance Update Report.
o
Risk Appetite Dashboard.
o
Bank’s Macro Hedging Strategy Updates.
o
BCBS239 Project, including:
-
Scope of Application and Inventory of Material Risk Reports.
-
Definition of Compliance.
-
Overarching Risk Reporting Framework.
-
Risk Data Aggregation and Risk Reporting (RDARR) Validation Governance Arrangements.
-
Initial Version of the RDARR Validation Framework.
o
Large Groups and Hyper Groups – Degrouping Policy Amendments.
o
Presentations of Large Groups, including METLEN, DEI, GEK, among others.
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o
Leveraged Transactions Update & Dashboard.
o
Corporate & Investment Banking (CIB) Industry Sectors Update.
o
International Subsidiaries Monitoring, including key risk indicators, the BRC Chairman’s Annual Activity Report,
and the approval of BRC Chairs appointed during 2024.
●
BRC meetings where AC members were also invited, discussing and approving the following issues:
o
Resolvability Progress Report.
o
Group Chief Risk Officer Succession Plan.
o
Notification for breach of Risk Appetite Statements (RAS) thresholds, specifically:
-
Level 1 KRI: "Operational Risk Losses Ratio" (RAS 47).
-
Level 2 KRI: "Conduct Risk Exposure" (RAS 51), "Regulatory Compliance Risk Exposure" (RAS 52).
o
Hellenic Bank Risk Assurance Analysis.
o
Minimum Requirement for Own Funds and Eligible Liabilities (MREL) Issuance Plan & Targets.
o
Resolvability Self-Assessment Report.
o
Environmental and Social Governance (ESG) Strategy.
o
Key Climate Risk & Environmental (CR&E) Risk Monitoring Indicators & Pillar 3 Benchmarking.
o
Fit-for-55 Climate Risk Stress Test Results.
o
Anti-Money Laundering (AML) Validation – Onboarding and Transaction Monitoring (SIRON).
o
Corporate Sustainability Reporting Directive (CSRD) Governance Gap Analysis Status Update.
o
Double Materiality Impact – Overview.
o
Discussion of the Digital Operational Resilience Act (DORA) Gap Assessment & Results.
o
Semi-Annual Update by the Responsible BoD Member for Climate-Related and Environmental Risks.
6.4
Remuneration Committee
The HoldCo/Bank’s Boards have delegated to the respective RemCos the responsibilities (a) to provide specialized and
independent advice for matters relating to remuneration policy and its implementation at HoldCo/Bank Group level and for
the incentives created while managing risks, capital and liquidity, (b) to safeguard the proper exercise of its duties and
responsibilities, the efficient alignment of the personnel’s remuneration with the risks the HoldCo/Bank undertakes and
manages and the required alignment between the HoldCo/Bank and the Group, and (c) to approve or propose for approval
all exposures of Key Management Personnel and their relatives (spouses, children, siblings). The Non-Executive Directors of
HoldCo/Bank have the responsibility to approve and periodically review HoldCo/Bank’s remuneration policy and oversee its
implementation both at Bank and Group level.
The implementation of the HoldCo/Bank remuneration policy is in line with the provisions of Laws 4261/2014 and Bank of
Greece Executive Committee’s Act 231/2024.
The HoldCo/Bank RemCo is also responsible to:
●
determine the remuneration system for the members of the Board of Directors and the senior executives and to
make a relevant recommendation on them to the Board of Directors, which decides on them or to make
recommendations to the General Meeting, where required,
●
propose to the Non-Executive Directors of the HoldCo/Bank’s BoD for their approval the goals and objectives
relevant to the HoldCo/Bank’s CEO remuneration and evaluate his/her performance in light of these goals and
objectives,
●
guide and monitor the external remuneration consultant (if hired) and ensure that it receives appropriate reporting
from him/her. In addition, HoldCo/Bank RemCo ensures that the external consultant is referred in the HoldCo/Bank’s
annual report of the year hired and/or completed his/her work, together with a statement of any possible
relationship between him/her and the HoldCo/Bank or with members of the HoldCo/Bank’s Board individually.
6.4.1
RemCos Membership/Composition
The HoldCo/Bank RemCos consists of five (5) independent non-executive Directors.
In the event that the Chairperson of the Bank’s Board is a member of the RemCos, she/he cannot participate in the
determination of his/her remuneration.
6
HoldCo/Bank RemCos’ Terms of Reference may be found at the HoldCo/Bank websites (
www.eurobankholdings.gr
www.eurobank.gr
).
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The HoldCo/Bank RemCos’ composition is outlined below:
RemCo Chairperson:
Cinzia Basile,
Non-executive Independent Director of the Board
Jawaid Mirza,
Non-Executive Independent Director of the Board
Non-Executive Independent Director of the Board
John Arthur Hollows,
Non-Executive Independent Director of the Board
It is noted that during 2024 and following NomCos’ recommendations for the recomposition of the HoldCo/Bank’s BoDs
Committees, the HoldCo/Bank’s BoDs decided on 30.05.2024, 28.06.2024 and 23.07.2024:
●
to appoint Ms. Irene Rouvitha Panou as new RemCos’ member in replacement of Mr. Geroge Chryssikos who decided
not to pursue renewal of his term to the new HolDCo/Bank BoDs (that were appointed by the HoldCo/Bank AGMs
of 23.07.2024) and Mr. John Arthus Holl ows as new RemCos’ member
●
Following the decision of the discontinuation of Vice Chair’s role on the BoDs and certain committees (including
HoldC/Bank RemCos) upon the conclusion of Mr. Georgios Chryssikos’ term, Mr. Jawaid Mirza (previous Vice-
Chairperson of HoldCo / Bank RemCos) to be appointed in RemCos as member. The Chair’s responsibilities to be
assumed by the most senior independent non-executive directors present at meetings in the Chair’s absence.
6.4.2
RemCos meetings
HoldCo/Bank RemCos meet at least twice a year.
6.4.3
Attendance to the RemCo meetings
During 2024 the attendance details for the Remuneration Committees were as follows:
Company
Meetings
Average ratio of
Directors’ attendance
2024
2023
2024
2023
HoldCo
11
12
100%
97%
Bank
11
12
100%
98%
It is noted that in 2024, representation proxies were provided for all missed meetings in HoldCo/Bank RemCos, leading the
overall attendance rate (physical and under representation) at 100% in HoldCo/Bank RemCos.
6.4.4
RemCo’s Performance Evaluation
The 2024 self-evaluation conducted by RemCos’ members reflects overall satisfaction with the Committees’ leadership,
preparedness, and agenda management. RemCos’ members demonstrate strong preparedness and active engagement and
these attributes contribute significantly to the Committees’ ability to make informed decisions and provide meaningful input.
The evaluation also highlighted opportunities for further enhancement. Members noted the need for improved material
quality, timelier submissions, and deeper discussions on remuneration policies. The Committee’s skillset was also highlighted
as an area for possible improvement, with recommendations to include more HR expertise to address complex challenges
and better align the Committee's work with Eurobank’s strategic objectives.
Talent retention emerged as a priority, with members suggesting less reliance on monetary rewards and greater emphasis
on career development and linking incentives to growth. Additionally, strengthening governance at subsidiaries was
recommended to ensure alignment with Group-level objectives.
6.4.5
RemCos' Activity in 2024
For 2024, RemCos’ have amongst others:
Eurobank Holdings
●
Proposed to the Board of Directors (BoD) for approval the revised RemCo Terms of Reference.
●
Reviewed and proposed to the Non-Executive Directors for approval the Remuneration Policy of the HoldCo.
●
Reviewed and proposed to the Board and the Annual General Meeting (AGM) for approval the Remuneration Policy
for Directors.
●
Reviewed and proposed to the Non-Executive Directors for approval the Group Annual Base Salary Framework and
the Annual Base Salary Framework for Top Management Roles.
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●
Reviewed and proposed to the Non-Executive Directors for approval the Variable Remuneration - Key Performance
Indicators (KPIs) & Key Risk Indicators (KRIs) and the Group Variable Remuneration Pool.
●
Reviewed and approved the Material Risk Takers’ List and the Remuneration Disclosures for 2023.
●
Discussed the remuneration policy implementation at the Group level.
●
Discussed the Remuneration Policy Review – Follow -up (for the years 2022 and 2023), conducted by the Internal
Audit Group.
●
Proposed to the Board and AGM for approval the Board and Board Committees’ Fees for Non-Executive Directors
of the HoldCo (Actual Fees 2023 & Estimated Fees 2024).
●
Proposed to the Board and AGM for approval the Remuneration Report for the financial year 2023.
●
Proposed to the Board and AGM for approval:
o
The distribution of net profits to senior management and employees.
o
Approvals in accordance with Article 86 of Law 4261/2014.
●
Proposed to the Non-Executive Directors of the Bank for approval the CEO’s Performance Evaluation for 2023 and
the CEO’s Financial and Non-Financial Objectives for 2024.
●
Approved the Remuneration Disclosures for 2023.
●
Reviewed and proposed to the Board for approval the Board and Board Committees’ Attendance Policy.
●
Reviewed the implementation of the Board and Board Committees’ Attendance Policy.
●
Depending on the case, approved or proposed to the Non-Executive Directors for approval various remuneration
issues and borrowing requests.
●
Received updates on:
o
Initiatives supporting employees on the lowest salary levels.
o
The annual pension component.
o
The Benefits Policy.
o
The Voluntary Exit Scheme effectiveness.
●
Discussed the Top Management Remuneration Benchmarking Project.
●
Discussed the Annual RemCo Plan for 2025.
Eurobank
●
Proposed to the Board of Directors (BoD) for approval the revised RemCo Terms of Reference.
●
Reviewed and proposed to the Non-Executive Directors for approval the Remuneration Policy of the Bank.
●
Reviewed and proposed to the Non-Executive Directors for approval the Group Annual Base Salary Framework and
the Annual Base Salary Framework for Top Management Roles.
●
Reviewed and proposed to the Non-Executive Directors for approval the Variable Remuneration - Key Performance
Indicators (KPIs) & Key Risk Indicators (KRIs) and the Group Variable Remuneration Pool.
●
Reviewed and approved the Material Risk Takers’ List and the Remuneration Disclosures for 2023.
●
Discussed the remuneration policy implementation at both the Bank and Group levels.
●
Discussed the Remuneration Policy Review – Follow -up (for the years 2022 and 2023), conducted by the Internal
Audit Group.
●
Proposed to the Board and Annual General Meeting (AGM) for approval the Board and Board Committees’ Fees for
Non-Executive Directors of the Bank (Actual Fees 2023 & Estimated Fees 2024).
●
Proposed to the Board and AGM for approval:
o
The distribution of net profits to senior management and employees.
o
Approvals in accordance with Article 86 of Law 4261/2014.
●
Proposed to the Non-Executive Directors of the Bank for approval the CEO’s Performance Evaluation for 2023 and
the CEO’s Financial and Non-Financial Objectives for 2024.
●
Reviewed the implementation of the Board and Board Committees’ Attendance Policy.
●
Discussed and further submitted to the Board for information the implementation of the Group Subsidiary Board
Remuneration Policy across the Group during 2023.
●
Depending on the case, approved or proposed to the Non-Executive Directors for approval various remuneration
issues related to international subsidiaries, including the remuneration framework, performance-related variable
remuneration, and remuneration increases.
●
Depending on the case, approved or proposed to the Non-Executive Directors for approval various remuneration
issues and borrowing requests.
●
Received and reviewed the annual updates from the RemCo Chairpersons of the Group’s banking subsidiaries.
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●
Approved the appointment of a new RemCo Chairperson in the Group’s banking subsidiaries.
●
Received updates on:
o
Initiatives supporting employees on the lowest salary levels.
o
The annual pension component.
o
The Benefits Policy.
o
The Voluntary Exit Scheme effectiveness.
●
Discussed the Top Management Remuneration Benchmarking Project.
●
Discussed the Annual RemCo Plan for 2025.
6.5
Nomination and Corporate Governance Committee
Eurobank Holdings and the Bank’s Boards have delegated to the NomCos the responsibilities (a) to lead the process for
Board and Board Committees appointments, including the identification, nomination and recommendation of candidates
for appointment to the Board, (b) to consider matters related to the Board’s adequacy, efficiency and effectiveness and (c)
review the Group’s corporate governance policies, procedures and arrangements. The Committees were renamed
Nomination and Corporate Governance Committees in order to accurately reflect their expanded purpose.
The NomCo, in carrying out its duties, is accountable to the Board.
In particular, among others, the NomCo is responsible:
●
at least annually and in accordance with Board and Board Committees Evaluation Policy, to assess the structure,
size, composition and performance of the BoD and make recommendations to the BoD with regard to the need for
its renewal and/or any other changes it considers appropriate,
●
at least annually and in accordance with Board and Board Committees Evaluation Policy, to assess the knowledge,
skills, experience and contribution of individual Board members and of the Board collectively and report to the BoD
accordingly,
●
in the context of Board and Board Committees Evaluation Policy implementation, to determine the evaluation
parameters based on best practices and ensure the effectiveness of the evaluation of the Board, the individual
evaluation of Non-Executive Directors, including the Chair, the succession plan of the Chief Executive and the
members of the Board, the targeted composition of the Board of Directors in relation to the strategy and Board
Nomination Policy,
●
to play a leading role in the nomination process and the design of the succession plan for the members of the Board
and senior management,
●
to review at least once every two years and recommend for the approval of the BoD the BoD Nomination Policy,
●
to ensure that the nomination process, as this is defined in the BoD Nomination Policy, is clearly defined and applied
in a transparent manner and in a way that ensures its effectiveness,
●
to ensure that there is adequate, step-wise succession planning for Board members so as to maintain an
appropriate level of continuity and organizational memory at Board level, especially when dealing with sudden or
unexpected absences or departures of Board members,
●
to monitor the Board succession planning in order to ensure the smooth succession of the members of the Board
with their gradual replacement in order to avoid the lack of management,
●
to ensure that the succession framework takes into account the findings of the evaluation of the Board in order to
achieve the necessary changes in composition or skills and to maximise the effectiveness and collective suitability
of the Board,
●
to review at least annually and always before the initiation of the CEO succession process the qualifications required
for the position of the CEO, to ensure that there is a viable pool of internal and external candidates and also to
ensure that the CEO is involved in all the areas of CEO Succession Plan, including the assessment of the nominees
for his/her position, as he deems appropriate,
●
to ensure that the CEO is involved in the succession planning process of the senior executives at the level of the CEO
minus one, including the assessment of nominees for the said positions.
As far as NomCos of subsidiaries are concerned, neither the HoldCo NomCo nor the Eurobank NomCo replace them. However,
the Eurobank NomCo has the overall responsibility to oversee that the NomCos of subsidiaries comply with its standards,
modus operandi and governance framework.
7
HoldCo/Bank NomCos’ Terms of Reference may be found at the HoldCo/Bank websites (
www.eurobankholdings.gr
www.eurobank.gr
).
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6.5.1
NomCo Membership/Composition
The NomCo consists of five (5) non-executive Directors, four (4) of whom are independent Directors, including the Chairperson
who may not serve as the Chairperson of the Remuneration Committee. The NomCo composition is outlined below:
NomCo Chairperson:
Irene Rouvitha Panou,
Non-Executive Independent Director of the Board
George Zanias,
Jawaid Mirza,
Non-Executive Independent Director of the Board
Rajeev Kakar,
Non-Executive Independent Director of the Board
Burkhard Eckes,
Non-Executive Independent Director of the Board
It is noted that during 2024 and following NomCos’ recommendations for the recomposition of the HoldCo/Bank’s BoDs
Committees, the HoldCo/Bank’s BoDs decided on 30.05.2024, 28.06.2024 and 23.07.2024:
●
to appoint Mr. George Zanias as new NomCos’ member, in replacement of of Mr. Geroge Chryssikos who decided
not to pursue renewal of his term to the new HolDCo/Bank BoDs (that were appointed by the HoldCo/Bank AGMs
of 23.07.2024).
●
Following the decision of the discontinuation of Vice Chair’s role on the BoDs and certain committees (including
HoldC/Bank NomCos) upon the conclusion of Mr. Georgios Chryssikos’ term, Mr. Jawaid Mirza (previous Vice-
Chairperson of HoldCo / Bank NomCoCos) to be appointed in NomCos as member. The Chair’s responsibilities to
be assumed by the most senior iNED present at meetings in the Chair’s absence.
6.5.2
NomCo Meetings
NomCo meets at least twice a year.
6.5.3
Attendance to the NomCo meetings
During 2024 the attendance details for the NomCo were as follows:
Company
Meetings
Average ratio of
Directors’ attendance
2024
2023
2024
2023
HoldCo
10
11
98%
100%
Bank
10
11
98%
100%
Directors’ individual attendance rates at the NomCo meetings in 2024 were the following:
Name
Eurobank
Holdings
NomCo
Eurobank NomCo
Eligible
to
attend
Attended in
person
(# and %)
Eligible
to
attend
Attended in
person
(# and %)
Irene Rouvitha Panou, NomCo
Chairperson
10
10
100%
10
10
100%
Geroge Zanias, NomCo member since 23.07.2024
4
4
100%
4
4
100%
Jawaid Mirza, NomCo Vice-Chairperson until 23.07.2024 and
NomCo member since 23.07.2024
10
9
90%
10
9
90%
Rajeev Kakar
10
10
100%
10
10
100%
Burkhard Eckes, NomCo member since 23.07.2024
4
4
100%
4
4
100%
Bradley Paul L. Martin, NomCo member until 23.07.2024
6
6
100%
6
6
100%
It is noted that in 2024, Mr. Jawaid Mirza provided representation proxies for their missed meetings in HoldCo/Bank’s
NomCos, leading their overall attendance rate (physical and under representation) at 100% in HoldCo/Bank’s NomCos.
6.5.4
NomCos’ Performance Evaluation
The 2024 self-evaluation conducted by the NomCos indicates overall satisfaction among its members regarding the
Committees’ structured approach, thorough discussions, and balanced composition. NomCos’ members believe that the
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Committees foster a collaborative and inclusive environment, enabling high levels of participation and open expression of
views. The Chairperson of NomCos is reported to be commendable for her dedication and effective guidance.
The evaluation also highlighted opportunities for further enhancement. Areas requiring ongoing focus included senior
executive succession planning and talent retention. The Committee emphasized maintaining leadership continuity and
resilience across the Group. Enhancing diversity also remains a central effort at both the Board and the Management level,
with a focus on attracting candidates with diverse backgrounds, experiences, and perspectives.
6.5.5
NomCos’ Activity in 2024
For 2024, NomCos have amongst others:
Eurobank Holdings
●
Proposed to the Board of Directors (BoD) for approval the revised NomCo Terms of Reference.
●
Reviewed the Board and Board Committees' 2023 self-evaluation and the Board’s overall effectiveness assessment
for further update to the Board. Additionally, reviewed and acknowledged the Action Plan for the BoD Evaluation
2023.
●
Discussed and proposed to the Board for approval the new composition of the Board Committees and other Board
and Board Committees’ matters.
●
In view of the BoD’s tenure renewal in 2024, reviewed the nomination process and proposed to the Board and the
AGM for approval the new BoD and AC members.
●
Reviewed and proposed to the Board for approval various governance and nomination policies, including:
o
CEO Succession Planning Policy.
o
Board of Directors Diversity Policy.
o
Key Function Holders Selection and Appointment Policy.
o
Group Governance Policy.
o
External Engagements Policy.
o
Board and Board Committees Evaluation Policy.
o
C-Level Succession Planning Policy.
o
Senior Management Selection and Appointment Policy.
o
Board Nomination Policy (also proposed to the BoD and AGM for approval).
●
Received an update on the HoldCo Group Organizational Chart.
●
Proposed to the Board for approval the Internal Governance Control Manual.
●
Reviewed and proposed to the Audit Committee and the Board for approval the 2023 Corporate Governance
Statement.
●
Received quarterly updates on governance -related audit issues.
●
Discussed various governance -related issues, including:
o
Overview of key ESG rating agencies (with a focus on the "G" element).
o
Compliance Risk Assessment (CRA) related to the Corporate Governance Framework.
o
Review of the Group's Internal Governance Framework.
●
Reviewed, discussed, and approved (depending on the case) various succession planning issues, including:
o
CEO Succession Plan.
o
C-Level Succession Planning.
o
Succession planning for the Group CRO.
●
Approved external engagements for Board members.
●
Reviewed the independence of the Independent Non-Executive Directors.
●
Reviewed the attendance of Directors at the Board and Board Committees.
●
Discussed the NomCo Annual Plan for 2025.
Eurobank
●
Proposed to the Board of Directors (BoD) for approval the revised NomCo Terms of Reference.
●
Reviewed the Board and Board Committees' 2023 self-evaluation and the Board’s overall effectiveness assessment
for further update to the Board. Additionally, reviewed and acknowledged the Action Plan for the BoD Evaluation
2023.
●
Discussed and proposed to the Board for approval the new composition of the Board Committees and other Board
and Board Committees’ matters.
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●
In view of the BoD’s tenure renewal in 2024, reviewed the nomination process and proposed to the Board and the
AGM for approval the new BoD and AC members.
●
Reviewed and proposed to the Board for approval various governance and nomination policies, including:
o
CEO Succession Planning Policy.
o
Board of Directors Diversity Policy.
o
Key Function Holders Selection and Appointment Policy.
o
Group Governance Policy.
o
External Engagements Policy.
o
Board and Board Committees Evaluation Policy.
o
C-Level Succession Planning Policy.
o
Senior Management Selection and Appointment Policy.
o
Board Nomination Policy.
●
Reviewed and proposed to the BoD for approval top management changes (General Manager level and above).
●
Was informed about the organizational chart of Eurobank and the organizational changes of a functional nature
approved by the CEO during the past year.
●
Proposed to the Board for approval the Internal Governance Control Manual.
●
Received quarterly updates on governance -related issues.
●
Discussed various governance -related issues, including:
o
Overview of key ESG rating agencies (with a focus on the "G" element).
o
Compliance Risk Assessment (CRA) related to the Corporate Governance Framework.
o
Review of the Group's Internal Governance Framework.
o
Annual implementation report of the Group Governance Policy by Eurobank’s banking subsidiaries.
●
Discussed and/or approved various issues regarding significant subsidiaries, including the selection of candidates
as Board members of the Group’s significant subsidiaries.
●
Received and reviewed the annual updates from the NomCo Chairpersons of the Group’s banking subsidiaries.
●
Reviewed, discussed, and approved (depending on the case) various succession planning issues, including:
o
CEO Succession Plan.
o
C-Level Succession Planning.
o
Succession planning for the Group CRO.
●
Approved external engagements for Board members and General Managers/Executive Board (ExBo) members who
are not Board members.
●
Approved promotions to the Eurobank hierarchical level of General Manager.
●
Reviewed the independence of the Independent Non-Executive Directors.
●
Reviewed the attendance of Directors at the Board and its Committees.
●
Discussed talent development and mobilization practices within Eurobank.
●
Discussed the NomCo Annual Plan for 2025.
6.5.6
Board of Directors Diversity
As of 31.12.2024, the representation of the female gender on the Board complied with the provisions of Greek Law, as outlined
in the HoldCo/Bank Board Diversity Policy (please refer to the relevant section in this Statement), which mandates a minimum
25% representation. In cases where the result includes a fraction, the percentage is rounded down to the previous integer.
This confirms that the HoldCo/Bank is successfully meeting its diversity objectives, particularly regarding gender
representation on the Board.
6.5.7
Senior Management Diversity
The Bank/HoldCo has taken significant steps to enhance gender diversity and support career growth for women executives,
creating a pipeline of eligible female professionals for the Executive Committee and Board.
A key initiative is the annual C-Level Succession Planning exercise, which aims to improve the underrepresented gender ratio
in the successors’ pool. In the 2024 succession planning exercise, 29% of the total successors’ pool were women,
demonstrating a strong commitment to gender diversity at senior levels.
Additionally, the Bank actively participates in initiatives such as "The Boardroom" in Greece, which supports senior female
leaders aspiring to become Board members in major organizations. By sponsoring such initiatives, the Bank encourages
employees and clients to pursue leadership roles.
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The Bank has also launched the third season of the Women in Banking (WiB) programme, following the successful previous
seasons. WiB is a talent programme designed to empower women within Eurobank, helping them advance to higher
leadership roles, drive transformative change, and advocate for an inclusive work environment. The collaboration among
participants from the first, second, and third seasons, with 200 mentors and mentees, has created a strong WiB Community
within Eurobank.
The Bank’s Human Resources unit continues to explore additional measures to enhance diversity at senior management
levels within the Bank/HoldCo. In 2024, Eurobank introduced:
●
C-1 succession planning, complementing C-Level succession planning, focusing on key roles reporting to General
Managers and BU Management teams, while also emphasizing gender diversity.
●
As part of its ESG Strategy, a DE&I awareness training programme for all managers in the Bank to reinforce
inclusivity.
6.6
Board Digital & Transformation Committee
The Bank’s Board Digital & Transformation Committee (BDTC) is a consultative body that reviews proposals and gives its
strategic advice and guidance on such proposals related to the Group’s digital, innovation, transformation and cybersecurity,
in order to contribute in achieving the vision and strategic goals of the Bank. The BDTC, in carrying out its duties, is
accountable to the Bank Board.
6.6.1
BDTC Membership / Chairmanship
The BDTC consists of five (5) Directors of whom one (1) executive and (4) independent non-executives. The BDTC composition
is outlined below:
BDTC Chairperson:
Alice Gregoriadi,
Non-Executive Independent Director of the Board
Members:
Cinzia Basile,
John Arthur Hollows,
Non-Executive Independent Director of the Board
Evangelos Kotsovinos,
Non-Executive Independent Director of the Board
Stavros Ioannou,
Executive Director of the Board
It is noted that during 2024 and following Bank NomCo’s recommendations for the recomposition of the Bank’s BoD
Committees, the Bank’s BoD decided on 30.05.2024, 28.06.2024 and 23.07.2024 a) to appoint Ms. Cinzia Basile as new
BDTC’s member, in replacement of Mr. Jawaid Mirza (previous BDTC’s member), b) to appoint Mr. Evangelos Kotsovinos as
new BDTC’s member, in replacement of Rajeev Kakar (previous BDTC’s Vice Chairperson) and c) the Vice Chair’s role to be
discontinued on the BoD and certain committees (including BDTC) upon the conclusion of Mr. Georgios Chryssikos’ term and
The Chair’s responsibilities to be assumed by the most senior independent non-executive director present at meetings in the
Chair’s absence.
6.6.2
BDTC Meetings
BDTC meets at least twice a year and as each time required, also considering that the annually held Strategy Away Day is a
forum in which relevant digital and transformation strategic matters are also discussed, while minutes are kept for all
meetings.
6.6.3
BDTC Attendance Rate
During 2024, BDTC held four (4) meetings and the ratio of attendance was 100% (vs. three (3) meetings with ratio of
attendance was 94% in 2023).
8
Bank BDTC Terms of Reference may be found at the Bank websites (
www.eurobank.gr
).
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The Directors’ individual attendance rates at the BDTC meetings in 2023 were the following:
Name
Eurobank ‘s BDTC
Eligible to
attend
Attended in
person
(# and %)
Alice Gregoriadi,
BDTC Chairperson
4
4
100%
BDTC member
4
4
100%
Cinzia Basile,
BDTC member since 23.07.2024
1
1
100%
Evangelos Kotsovinos,
23.07.2024
1
1
100%
Stavros Ioannou,
BDTC member
4
4
100%
BDTC Vice Chairperson until
23.07.2024
3
3
100%
3
3
100%
6.6.4
BDTC Performance Evaluation
The 2024 evaluation of the BDTC highlights opportunities to enhance its effectiveness. While the Committee has provided
valuable insights, feedback suggests a need for more outcome-driven discussions and a stronger focus on high-impact
initiatives. Non-committee members emphasized the importance of fostering dynamic exchanges on emerging digital
opportunities, while some Committee members noted areas for improvement in strategic focus, leadership engagement, and
meeting structures, particularly regarding major projects.
To strengthen its impact, aligning the Committee’s activities more closely with Eurobank’s digital transformation objectives
is essential, supported by a phased strategy and clear deliverables. Members highlighted the importance of leveraging AI
and data to drive innovation, enhance efficiency, and improve customer experience while ensuring robust governance and
ethical AI use. Structural refinements, including more focused discussions and streamlined agendas, were also recommended
to enhance the Committee’s effectiveness.
6.6.5
BDTC’s Activity in 2024
In 2024, the BDTC proposed its Terms of Reference (ToR) for BoD approval. Throughout the year, the Committee reviewed
updates on the Eurobank Transformation and the Digital Key Performance Indicators (KPIs) Dashboard.
Additionally, the Committee examined the status of Generative AI, the Core Banking System in Eurobank, and new
collaboration and communication tools. It was also updated on International Technology / Digital Initiatives in new
geographies, toured Eurobank’s new premises in Nea Ionia (Campus Project), and noted progress on innovation and
customer experience initiatives.
7
Management Committees
As there is neither a regulatory requirement nor a business necessity, the CEO has not established committees at the HoldCo
level.
At the Bank level, however, the CEO establishes committees as needed to assist in fulfilling his duties and responsibilities. The
most significant committees include the Executive Board, the Strategic Planning Committee, the Management Risk
Committee, the Group Asset and Liability Committee, the Central Credit Committees (I & II), the Troubled Assets Committee,
the Products and Services Committee (PSC), and the Environmental, Social & Governance (ESG) Management Committee.
7.1
Management Committees’ Policy
The Bank has implemented the Management Committees’ Policy, which defines the framework and general principles
governing the establishment, dissolution, and operation of a Management Committee (MCo). This policy aligns with
international corporate governance best practices and regulatory requirements, where applicable. It also establishes the
minimum requirements for each MCo’s Terms of Reference (ToR).
According to the Management Committees’ Policy:
●
The establishment of each MCo is formally announced through a Management Act, which clearly defines the
purpose, composition, and Chairperson of the Committee. This Management Act is signed by the CEO and, where
applicable, by the responsible Deputy CEO or General Manager.
●
The MCo’s ToR are approved by the CEO and define, among other aspects, the modus operandi, including the
frequency of meetings, quorum requirements, and decision-making process. The ToR are reviewed regularly and
revised as needed, with any updates also re quiring the CEO’s approval.
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●
Individuals who are not MCo members or the MCo Secretary—such as Board members, Bank or Group subsidiary
officers, or external auditors/consultants—may be invited to attend all or part of an MCo meeting, depending on the
topics under discussion. These individuals do not have voting rights, and their attendance is determined by the MCo
Chairperson.
●
The MCo Secretary, appointed when the MCo is established and stated in the Management Act, supports the
Chairperson in ensuring the effective operation of the MCo. The Secretary’s responsibilities include maintaining an
annual meeting calendar, coordinating logistics, recording attendance, ensuring quorum requirements are met,
documenting meeting minutes and resolutions, and issuing extracts of decisions. Additionally, the Secretary notifies
responsible managers about relevant discussions or actions required.
●
Each MCo is required to define evaluation criteria based on its ToR and to assess its performance annually. If the
Chairperson identifies concerns related to the scope or functioning of the MCo, an earlier evaluation may be
conducted.
●
The CEO has the discretion to dissolve an MCo at any time, with the dissolution formally communicated through a
Management Act.
7.2
Executive Board (ExBo)
7.2.1
CVs of ExBo members (other than BoD members)
The composition of the Executive Board (ExBo), excluding the Executive Members of the Board of Directors who are also ExBo
members, is summarized below. The CVs of Mr. F. Karavias (CEO), Mr. S. Ioannou (Deputy CEO), and Mr. K. Vassiliou (Deputy
CEO) are presented in the Board of Directors section. Short biographical details of the remaining ExBo members are provided
below.
Christos Adam-General Manager, Group Risk Management, Group Chief Risk Officer (Group CRO)
-
Year of birth: 1958
-
Nationality: Hellenic
-
Number of shares in Eurobank Holdings: 287,792
Mr. Adam has been Group CRO since November 2013 and he has served within the Eurobank Group as Deputy General
Manager (2005-2013), Head of Group Credit Control Sector (1998-2013) and Senior Account Officer & Senior Manager,
Corporate Division (1990-1997). In the past Mr. Adam worked in ANZ Grindlays Greek Branch, he had the position of Account
Manager in the Corporate Division.
He holds an MBA in Finance from the University of Michigan, Ann Arbor, USA, with full scholarship from the Fulbright
Foundation and a Degree in Economics with Honors from the School of Economics & Political Sciences, University of Athens.
Thanasis Athanasopoulos-General Manager Group Compliance, Group Chief Compliance Officer
-
Year of birth: 1973
-
Nationality: Hellenic
-
Number of shares in Eurobank Holdings: 313,087
In the past, Mr. Athanasopoulos has served as Chief Audit Executive of the Alpha Bank Group and Vice President - Audit &
Risk Review of the Mellon Financial Corporation.
He holds a BSc, Business Administration from the Athens University of Economics and Business, a MSc, Banking from the
University of Reading, a MSc, Economic History from the London School of Economics and he is certified as a Fellow Chartered
Accountant of ICAEW, as a Fellow of the International Compliance Association and a Certified Director (IDP) by INSEAD.
Iakovos Giannaklis-Deputy Chief Executive Officer, Head of Retail & Digital Banking of Eurobank SA
-
Year of birth: 1971
-
Nationality: Hellenic
-
Number of shares in Eurobank Holdings: 217,592
He is also the Vice-Chairman in the Board of Directors of Worldline Merchant Acquiring Greece S.A. In the past, Mr. Giannaklis
held BoD positions in the following entities of Eurobank Group: Eurobank FPS Loans and Credits Claim Management SA
(2018-2019), Eurobank Household Lending Services SA (2016-2018), Eurobank Asset Management MFMC (2014-2017) and
Eurobank Business Services (2009-2017). He also held the following posts in Eurobank: Head of Retail Banking General Division
(2016-2023), Head of Branch Network General Division (2014-2016), Head of Branch Network Commercial Development
Sector (2014), and Head of Branch Network Sector (2009-2014).
He has also been a member of the BoDs of Eurolife FFH Group Holdings, General Insurance and Life Insurance (2021-2023).
Mr Giannaklis also served as Group Deputy General Manager, Retail and Digital, Growth and Transformation in Bank Muscat,
Oman (2023)
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He holds an MBA from the University of Indianapolis, USA and a BA in Business Administration, from the City University of
Seattle, USA.
Tasos Ioannidis-General Manager Markets, Eurobank SA
-
Year of birth: 1968
-
Nationality: Hellenic
-
Number of shares in Eurobank Holdings: 311,015
In the past Mr. Ioannidis has served as General Manager, Head of Markets & Asset Management (July 2019 - June 2024),
General Manager, Head of Global Markets & Treasury (April 2015 - July 2019), Deputy General Manager, Head of Global
Markets & Treasury (October 2013 - March 2015), Deputy General Manager, Group Treasurer (April 2009 - October 2013),
Deputy General Manager, Group Head of Trading (March 2007 - April 2009). He has also served Member of the BoD, ERB
Hellas PLC (August 2006 - June 2022), Member of the BoD, ERB Hellas Ltd (Cayman Islands) (August 2006 - December 2022),
as Member of the BoD, Eurobank Asset Management MFMC (May 2015 - September 2017), Chairman of the BoD, Eurobank
ERB MFMC, former TT ELTA MFMC (February 2014 - September 2015), Member of the BoD, Global Asset Management SA
(June 2006 - December 2009), and Member of the BoD, Portfolio Investment SA (June 2002 - April 2003).
He holds a MSc in Shipping, Trade and Finance from Cass Business School, London, UK and a BSc, School of Mechanical
Engineering from the National Technical University of Athens.
Apostolos Kazakos-General Manager, Group Strategy, Eurobank SA
-
Year of birth: 1972
-
Nationality: Hellenic
-
Number of shares in Eurobank Holdings: 269,681
Mr. Kazakos has also served as CEO of Eurobank Telesis Finance,Deputy CEO of Eurobank Equities, the investment banking
and brokerage arm of Eurobank Group (May 2010 – August 2013), Assistant General Manager, Head of Group Strategy &
Investment Relations, National Bank of Greece (August 2014 – March 2015), General Manager and Head of the Investment
Banking, Restructuring & Capital Investment Division, General Bank, Piraeus Group (September 2013 – July 2014), Senior
Executive and eventually Head of the Investment Banking Division, Eurobank Equities and Telesis Bank (January 1998 – May
2010).
He holds an MSc in International Securities, Investment and Banking, International Securities Market Association (ISMA) from
the University of Reading, UK and a Degree in Accounting, Faculty of Administration & Finance from the International
University of Greece.
Harris Kokologiannis -General Manager, Group Finance, Group Chief Financial Officer (Group CFO), Eurobank SA
-
Year of birth: 1967
-
Nationality: Hellenic
-
Number of shares in Eurobank Holdings: 287,215
Mr. Kokologiannis joined Eurobank in January 2008 as Head of Group Finance and Control until his appointment as Group
CFO in July 2013.
He has served as Audit Supervisor, Deloitte (Tax, Audit, Management Consultant), Group CFO (Lafarge Cement - Heracles
General Cement Company), Director of Finance and Control (L’Oreal Hellas), Group Financial Manager (PLIAS Group).
He is a Chartered Accountant in UK, member of the Chartered Institute of Management Accountant (C.I.M.A.), UK. He holds
an MBA from the University of Warwick (UK) and a BA in Business Management and Organization from the School of
Economics and Business Science (ASOEE).
Michalis Louis-Chief Executive Officer (CEO) & Executive Board Member of Hellenic Bank Public Company Limited &
Executive Committee Member of Eurobank S.A.
-
Year of birth: 1962
-
Nationality: Cypriot
-
Number of shares in Eurobank Holdings: 391,402
Mr. Louis has also served as Head of International Activities General Division (2014-2024) & Group Private Banking (2019-
2024), CEO of Eurobank Cyprus Ltd (2007-2024), Member of the BoD of Eurobank Private Bank Luxembourg SA (2014-2024)
and Member of the Supervisory Board (SB) of Eurobank Bulgaria AD (2015-2024).
Additionally, he was a Member of various Committees within Eurobank Group and served on the Boards of multiple
subsidiaries abroad owned by Eurobank Group.
Earlier in his career, he held Senior Management roles at Laiki Bank of Cyprus and at an HSBC subsidiary in New York,
specializing in Corporate Finance.
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He holds a B.A in Accounting Studies from Ealing College, London, and an M.Sc. in Corporate Finance & Accounting from the
London School of Economics.
Natassa Paschali-General Manager, Group Human Resources General Division, (Group CHRO), Eurobank SA
-
Year of birth: 1972
-
Nationality: Greek
-
Number of shares in Eurobank Holdings: 130,859
Mrs. Paschali is the Group Chief Resources Officer (Group CHRO), since June 2018.In the past she has served within the
Eurobank Group as Head of People Engagement (January 2017 – June 2018), Head of HR, Eurobank Private Bank Luxembourg
SA (parallel assignment), Luxembourg (May 2014 – May 2017), Head of HR Line Management, Wholesale Banking (2008-2016).
and Investment Banking Group, (July 2006 – June 2008) and Head of Training & Development – Assistant Vice President,
Consumer Banking Group, (February 2004 – July 2006)
She holds a MSc in Industrial Relations and Personnel Management from the London School of Economics and Political
Science (1995-1996) and a BA in English Language and Literature from the University of Athens, School of Philosophy (1991-
1995).
Ioannis Serafeimidis-General Manager, Retail Banking Strategy & Growth, Chief Retail Growth Officer, Eurobank SA
-
Year of birth: 1973
-
Nationality: Hellenic
-
Number of shares in Eurobank Holdings:
214,271
Mr Serafimidis is also a Non-Executive member of the BoDs in, Eurolife FFH Insurance Group Holdings SA (since July 2023),
Eurolife FFH Life Insurance SA (since July 2023) and Eurolife FFH General Insurance SA (since July 2023).
In the past Mr. Serafeimidis has served as Head of Retail Banking Channels, General Manager (2023-2024), Head of Branch
Network, General Manager (2019-2023), Executive Director and Head of Retail Banking, Postbank, Sofia (2014-2019), Head
of Branch Network, Postbank, Sofia (2011-2014), Senior Executive Manager and Head of Small Business Banking, Bancpost,
Bucharest (2008-2011), as well as other significant posts in Eurobank’s Branch Network, which he joined in 2002 after a 4 year
incumbency in KPMG Management Consulting in Athens.
He holds an MSc in International Relations from London School of Economics (UK) and a BSc in Economics from the University
College London (UK).
Mrs. Veronique Karalis, Deputy Group Company Secretary, serves as the Secretary of the ExBo and reports to the Group
Company Secretariat.
The ExBo manages the implementation of Group’s strategy in line with the Board’s guidance.
The ExBo meets on a weekly basis or ad hoc when necessary.
The ExBo is in quorum and meets validly when half of its members plus one are present or represented and either the
Chairperson or the longest-serving Deputy CEO (if chairing) is present. In determining the number of members for the quorum,
fractions, if any, shall not be counted. The ExBo resolutions require a majority vote.
The ExBo’s key tasks and responsibilities are to:
●
manage the implementation of the Group’s strategy, in line with the BoD’s guidance
●
draw up the annual budget and the business plan
●
approve issues concerning the Group’s strategic choices (e.g. partnerships, share capital increase, issuing
convertibles and/or launching debt issuance programs, mergers, acquisitions or disposals, the formation of joint
ventures, creation or dissolution of special purpose vehicles, dividend distribution and all other investments or non-
material disinvestments by the Group etc.), ensuring these being in line with the approved Group’s strategy, if the
issue under discussion is less than or equal to €40 million. In case though:
a.
the issue under discussion exceeds € 40 million,
b.
a decision of the Board is obligatory by Law or by the Bank’s contractual commitments,
c.
it is deemed necessary by the SPC, taking into account the complexity and nature of the strategic choices
under discussion, the issues concerning the Group’s strategic choices are approved by the Board following
a relevant proposal by the SPC (as per its Terms of Reference)
●
monitor the performance of each business unit and country against budget and ensure corrective measures are in
place wherever required
●
decide on all major Group’s initiatives aiming at transforming the business and operating model, enhancing the
operating efficiency and cost rationalization, improving organizational and business structure
●
ensure that adequate systems of internal controls are properly maintained
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●
review and approve Bank’s Policies and other governance documents that are related to its responsibilities and/or
are of critical importance to the Bank,
●
review the performance of any Committee and /or individuals to whom it has delegated part of its responsibilities,
as approved
●
ensure adequacy of Resolution Planning governance, processes and systems
●
hire and retain external consulting firms and approve their compensation and terms of engagement in accordance
with Bank’s policies and procedures
●
hire and retain investment banking advisors, and approve their compensation and terms of engagement, in
accordance with Bank’s policies and procedures, where applicable
By the date of issuance of the 2024 Corporate Governance Statement, ExBo’s self-evaluation for 2024 was in progress.
According to ExBo’s self-evaluation for 2023, it was determined that its overall performance remained strong in all areas
with a slight decrease vs. last year. Members of ExBo discussed the following considerations: i) number of items in the agendas
being excessive, ii) Meetings’ agenda being more focused on regulatory and operational and less strategic and business
oriented and iii) supporting material being lengthy and the necessity of an executive summary.
7.3
Strategic Planning Committee
The primary purpose of the SPC is to support Management in planning, developing, and implementing the Group’s strategy.
Additionally, the SPC is responsible for recommending certain strategic initiatives to the Board for consideration and
approval.
The key tasks and responsibilities of the SPC are:
●
To ensure that the Group establishes a well-defined, planned medium-term strategy aligned with the Board’s
guidance and the approved business plan.
●
To review the key objectives and goals within the framework established by the Executive Board’s annual budget
and business plan, as well as major business initiatives, prior to their submission for Board approval.
●
To review, analyze, and deliberate on issues concerning the Group’s strategic choices—such as strategic
partnerships, capital increases, issuance of convertible or debt instruments, mergers/demergers, acquisitions or
disposals, joint ventures, creation or dissolution of special purpose vehicles, dividend distributions, and other major
investments or divestments—ensuring alignment with the approved Group strategy. The SPC will formulate relevant
proposals to the Board if:
a)
The matter under discussion exceeds €40 million, while lower amounts are approved by the Executive Board.
b)
A decision by the Board is required by law or by the Bank’s contractual commitments.
c)
The SPC deems Board consideration necessary due to the complexity or nature of the strategic choices
under discussion.
●
To submit proposals to the Board for approval concerning the strategy and budget of the property portfolio, as
outlined in the Service Level Agreement between Eurobank and Grivalia Management Company.
●
To submit proposals to the Board for approval concerning the acquisition or disposal of assets, excluding
repossessed assets (as defined in the Service Level Agreement between Eurobank and Grivalia Management
Company), with a book value exceeding €10 million.
●
To submit proposals to the Board for approval regarding the disposal of repossessed assets, as defined in the
Service Level Agreement between Eurobank and Grivalia Management Company, with a gross book value exceeding
€20 million.
●
To maintain and implement all necessary measures for regulatory and internal capital management, ensuring
sufficient coverage for all risk types, including strategic, reputational, and other non-quantifiable risks, to
consistently meet capital requirements .
●
To review and assess all major Group initiatives aimed at transforming the business and operating model.
●
To regularly monitor the Group's strategic and key performance indicators, including a segmental perspective.
●
To review and, when necessary, make recommendations to the Board on any other matters of strategic significance
to the Group.
The SPC meets on a weekly basis or ad hoc, when necessary.
The SPC is in quorum and meets validly when a) half of its members plus one are present (fractions are excluded from the
computation), provided that at least three members are present and b) SPC’s Chairperson or the longest serving Deputy
CEO in attendance, entitled to chair the Committee, is present.
Decisions are passed by majority vote. In case of a tie of votes, SPC’s Chairperson has the casting vote. If SPC’s Chairperson
is absent, the longest serving Deputy CEO in attendance, entitled to chair the Committee, has the casting vote.
9
Information regarding current composition and short biographical details of its members may be found at the Bank’s website (www.eurobank.gr).
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By the date of issuance of the 2024 Corporate Governance Statement, SPC’s self-evaluation for 2024 was in progress.
According to SPC’s self-evaluation for 2023, it was determined that its overall performance and all the specific areas of
evaluation i.e. the profile and composition, the organization and administration and the key tasks and responsibilities, are
strong.
7.4
Management Risk Committee
The main responsibility of the MRC is to oversee the risk management framework of Eurobank S.A. (“the Bank”). As part of its
responsibility, the MRC facilitates reporting to the BRC on the range of risk-related topics under its purview. The MRC
proactively supports the Group CRO to identify material risks, in addition to those identified independently by the Group
CRO and the Group Risk Management General Division, and to promptly escalate them to the BRC and assists the Group
CRO in ensuring that the necessary policies and procedures are in place to prudently manage risk and to comply with
regulatory requirements.
As part of its responsibility, the MRC, facilitates reporting to the BRC on the range of risk-related topics under its purview.
The MRC understands and evaluates risks, addresses issues, promotes the implementation of risk policies and informs the
BRC of the Group’s risk profile. Furthermore, the MRC assists the BRC in defining risk management principles and
methodologies, thereby ensuring that the Group’s risk management framework contains processes for identifying, measuring,
monitoring, mitigating and reporting the current risk profile against its risk appetite, limits and performance targets.
Specific responsibilities performed by the MRC are relevant to the following areas:
●
Alignment of Business Plan with Risk Appetite
●
Provisioning
●
Risk monitoring, reporting and remediation
●
Stress Testing Programme
●
Regulatory required Stress Tests (EBA / ECB)
●
Group ICAAP and ILAAP
●
Group Recovery Plan
●
Internal Model approval, results monitoring and reporting
●
BCBS 239 – Risk Data Aggregation and Risk Reporting (RDARR)
●
Resolution Planning
●
Reporting
●
Significant Risk Transfer (SRT)
The MRC achieves quorum when at least five of its members, including the Chairman, are present. Selected attendees can
be invited to the MRC meetings, when the topics for discussion fall under their remit or they have the requisite expertise to
constructively participate. The finalized minutes are distributed to the MRC and BRC members.
By the date of issuance of the 2024 Corporate Governance Statement, MRC’s self-evaluation for 2024 was in progress. For
2023, it was determined that its overall performance and all the specific areas of evaluation i.e. the profile and composition,
the organization and administration and the key tasks and responsibilities, are strong. Members reviewed key points raised
by the self-assessment exercise, noting that the main issues concern members’ attendance and participation, the length of
the meeting and the agenda as well as the timely submissions. Members exchanged opinions on how to improve the
committee and agreed on the need to educate the presenters to be short and concise so as to allow more time for
questions/discussion.
7.5
Group Asset and Liability Committee (G-ALCO)
G-ALCO’s primary mandate is to:
a)
formulate, propose, approve, implement and monitor – as the case may be - the Group’s i) liquidity position and risk
profile and its funding strategies and policies ii) interest rate guidelines and interest rate risk profile and policies iii)
Capital investments - as well as FX exposure and hedging - strategy iv) Group’s business initiatives and/or
investments that affect the bank’s capital, market and liquidity risk profile. Further, to approve at a first stage, and
recommend to BRC for final approval the respective country limits and the relevant policy/methodology (special
attention is given for the approval/monitoring of the limits for countries where Eurobank has a local presence).
b)
approve or propose – as the case may be - changes to these policies that conform to the Bank’s risk appetite and
levels of exposure as determined by the Board Risk Committee (and BoD as the case may be) and Management,
while complying with the framework established by regulatory/supervisory authorities.
G- ALCO responsibility is to also review the overall liquidity positions and developments of the Group on a country-by-
country level. In this context, international subsidiaries’ ALCOs should report on monthly basis material country developments
10
Information regarding current composition and short biographical details of its members may be found at the Bank’s website (www.eurobank.gr).
11
Information regarding current composition and short biographical details of its members may be found at the Bank’s website (www.eurobank.gr).
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and decisions (reflected in respective country ALCO minutes) to G-ALCO, based on the above principles and their respective
regulatory/supervisory authorities’ instructions and guidelines.
The key tasks and responsibilities of G-ALCO are the following:
Regarding the approval of general policies and guidelines, compliance with regulatory requirements, review of
activities/investments, risks & exposures:
●
Formulate, propose and/or modify - as appropriate - guidelines and pricing policies for deposit and loan interest
rates for the Group, as well as review and approve business proposals for pricing loans and deposits.
●
Regularly review, adapt/modify - as may be required – and approve on an annual basis (or ad-hoc if needed)
the Group’s internal Funds Transfer Pricing (FTP) policies and FTP annual budget/business plan guidelines, in
order to reflect current market developments and business objectives. With regards to International
Subsidiaries, local FTP policy is reviewed, adapted/modified, approved by local ALCOs and presented for
approval/acknowledgement to G-ALCO whenever it is deemed necessary.
●
Review International subsidiaries’ Capital investments, FX exposures and hedging strategies, and approve
related actions as may be required.
●
Review and approve the Market & Counterparty Risk policy and the relevant KRIs and the RAS framework for
market and counterparty risks before their submission to BRC/BoD.
●
Be informed of the MREL requirement and the MREL issuance plan following its approval by the BRC; review and
approve individual MREL instruments’ wholesale issuance and related costs in the context of the approved plan
and MREL targets. Similar intra-group requirements by International Subsidiaries are separately assessed when
they arise.
●
Approve the liquidity-related resolution deliverables prior to their submission to the SRB/NRA.
●
Approve the implementation of MREL and liquidity options within the context of the Group’s Recovery Plan.
●
Review ERB/Group material market risks and exposures across investment portfolios (AC, FVOCI etc) and risk
dimensions (e.g., interest rate risk, liquidity/currency mismatch) as may be identified by Markets & and/or
GMCRS, and recommend actions as may be required.
●
Approve Markets’ new trading & investment activities for the bank’s own books (Trading, FVOCI, AC).
●
Review on annual basis country exposures/limits and sovereign exposure/limits (as per Sovereign Risk Policy);
approve new Country and/or Sovereign limits when proposed and modify existing Country and/or Sovereign
limits as/when appropriate. Any Country Limit increases approved by G-ALCO also require BRC approval. G-
ALCO should allocate country limits between exposures in state bonds/treasury bills and exposures in credit
facilities to state controlled entities.
●
Within the context of the approved investment framework for corporate/FI bond portfolio, review the relevant
portfolio limits annually. Review and approve (prior to Group’s formal commitment) business proposals for
planned soft underwriting commitments. Review and clear hard underwriting commitments; to note, these
would also require prior approval by the appropriate Credit Committees as per existing Credit policies.
Regarding Liquidity Risk
●
Within the scope of the Group’s Liquidity Risk Policy, i) monitor the implementation of the Asset Encumberance
policy and the execution of the Contingency Funding Plan process, as may be required, ii) establish, monitor,
propose and approve - as may be required - actions for the maintenance of adequate liquidity buffers in order
to withstand liquidity stress (or alternatively, adverse liquidity) events and comply (as possible) with regulatory
requirements and internal thresholds or targets.
●
Ensure that the Group Liquidity Risk policy is properly coordinated, integrated and updated – as may be
required and in compliance with the relevant regulatory framework, and market practices - across Group
entities.
●
Review planned/projected liquidity profile and performance, monitor regulatory liquidity risk ratios (LCR, NSFR);
review wholesale funding strategies and initiatives, and approve related actions for the Bank/Group.
●
Report the Bank’s liquidity position, projections and risks, recommend actions related to liquidity risk
management as may be required to the Board Risk Committee (BRC) and BoD), and implement / monitor
related BRC and/or BoD decisions.
●
Review regulatory liquidity ratios, liquidity stress tests, and internal liquidity related warning indicators. Review
material liquidity risks; formulate, approve, and propose to MRC related stress test scenarios. Formulate and
implement action plans in case regulatory liquidity ratios and indicators’ evolution (and/or stress tests results)
may so require, in the context of the Group’s policies, risk appetite and regulatory framework.
●
Determine the appropriate KRIs and related framework for the monitoring of liquidity risk, approve the
proposed KRIs and framework before their submission to BRC and BoD.
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●
Review and approve the periodic funding plan, including the funding plan which is prepared for the ILAAP/
ICAAP exercise, and take its results into consideration in its decision making process as appropriate. Also,
review and approve the LCR restoration plan and the related funding plan, and any major changes to it.
Regarding Interest Rate Risk in the Banking Book (IRRBB) and Credit Spread Risk in the Banking Book (CSRBB), G-ALCO (as
delegated by the BoD and BRC) has the overall responsibility for the monitoring and management of said risks, and clear
authority over the units responsible for taking such risks.
More specifically, G-ALCO’s tasks, authorities and responsibilities are to:
●
Formulate the Group’s IRRBB and CSRBB Policies’ framework and assumptions (e.g., models, stress scenarios
etc.) before its submission to BRC/BoD; review and approve the Group’s strategies for managing relevant risks
●
Review and approve the Group’s guidelines for the systems used for IRRBB and CSRBB monitoring and
assessment; further propose to BRC for final approval
●
Formulate the risk appetite and appropriate exposure limits (RAF thresholds) for the IRRBB and CSRBB; propose
for approval to BRC and BoD;
●
Establish a comprehensive IRRBB and CSRBB reporting and monitoring framework to regularly assess the IRRBB
and CSRBB exposure against the respective limits (as they are established); GMCRS is the responsible
monitoring/reporting unit
●
Ensure that adequate controls and procedures are in place, and appropriate management actions are
triggered, when set limits and early warnings levels are breached
●
Evaluate the performance, and impact, of risk management strategies applied to relevant exposures (interest
rate, credit risk) on EVE and NII in the context of the IRRBB/CSRBB Policy and Management targets
●
Approve the Economic Hedging Framework and propose its approval to BRC/BoD (also part of the IRRBB and
CSRBB Policy)
●
Define the high-level risk management strategy on a periodic basis - quarterly or ad hoc as may be required -
in the context of the Economic Hedging Framework (established to hedge the bank’s interest rate risk and credit
risk exposures on a portfolio basis). Further, to monitor and evaluate the outcome of hedging strategies, request
their extension or termination, escalate significant developments to BRC/BoD, monitor the RAF thresholds and
the effect of hedging strategies on the CAD ratio and Bank results.
●
Review and approve proposals to use new products, or engage in new activities - related to risk taking or
hedging strategies, prior to acquisition or implementation, to ensure that the resources required to establish
sound and effective IRRBB management of the product or activity have been identified, the proposed activities
are in line with the institution’s overall risk appetite and RAS, and that procedures to identify, measure, monitor
and control the risks of the proposed product or activity have been established. It should be ensured that the
IRRBB characteristics of these new products and activities are well understood.
●
Approve major hedging or risk-taking initiatives in advance of implementation. Ensure that positions related to
internal risk transfers between the non-trading book and the trading book are properly documented.
Key reports reviewed by G-ALCO:
●
Loans and Deposits evolutions (Greece and International)
●
Deposits Structure (Core, Time Deposits)
●
Deposit rates evolution (per business unit) and market share evolution (Greece)
●
LCR & NSFR evolution on a monthly basis (at a Solo and Group level)
●
FTP budget/business plan guidelines and funding cost
●
Sources and Uses of funds at Group/country level, secured funding report
●
Liquidity buffer analysis (Solo, Group, and per country).
●
Liquidity stress tests
●
Liquidity risk analysis/sensitivities
●
Interest Rate Gap report
●
Market risk analytics reports (PV01 in FVOCI and AC, VaR analysis, historical simulation results and reporting of
the relevant KRIs for MTM exposure in OCI & AC, evolution of RWAs for market risk, reports on the level of KRIs
related to market risk.
●
IRRBB reports: sensitivity of NII and sensitivity of EVE per regulatory framework (EBA IRRBB guideline) & per
internal framework
●
Greek sovereign exposure report (internal and regulatory)
●
RWA movement report
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●
Secured funding analysis report
●
Quarterly report on economic hedging positions
●
International subsidiaries’ liquidity buffers and regulatory ratios
●
International subsidiaries’ FX net investment hedging analysis
Annually / or more frequently if needed:
●
Internal or external auditors reports with reference to G-ALCO areas of responsibility.
●
Regulatory Reports with reference to G-ALCO areas of responsibility
G-ALCO convenes once a month and/or whenever required.
Required quorum for G-ALCO meetings to be effective is six members. In order to have a quorum the presence of its
Chairperson and a minimum of three (3) SPC members is required. Decisions on issues are to be taken by majority; in case
of a tie vote, the issue under discussion is escalated to ExBo. Additionally, under exceptional circumstances, decisions may
be taken by circulation, which is equal to a decision of the G-ALCO, even if no meeting has taken place. A relevant approval
memo is then issued by the Secretary.
During 2023 an extensive review and update of G-ALCO’s Terms of reference was performed, with the process completed in
Q4 2023, while the membership composition also changed. In this context, the committee’s performance review was
extended to include 2024 for completeness; it was determined that: i) G-ALCO members’ composition and engagement is
well appropriate, and the committee’s performance is well satisfactory ii) the Committee continues to function effectively in
relation to its mandate and responsibilities, with members actively engaging in critical discussions during meetings, with
special focus on topics regarding key risk and regulatory/supervisory issues iii) in light of the complexity and importance of
issues arising, the continued evolution of the regulatory framework and complexity, and the emergence of additional risk
considerations/requirements or activities, G-ALCO should continue to improve its organizational and operational efficiency
and further increase the scheduled frequency, and/or length of meetings (as possible), as may be required to remain as
effective. Said action was already implemented for the 2025 scheduled meetings plan.
7.6
Central Credit Committees
7.6.1
Central Credit Committee I
The main objective of Central Credit Committee I (CCCI) is to ensure the objective credit underwriting of relevant exposures
of Greek corporate performing and private banking clients, in accordance to the Risk Appetite Framework and the Credit
Policy Manual of the Bank and in a way that balances credit risk and return on equity.
The CCCI is chaired by an independent to Business and Risk Professional, convenes at least once a week and all meetings
are minuted. Decisions are taken unanimously. If unanimity is not achieved, the credit request is escalated by the Chairperson
to the next (higher) approval level requiring a unanimous decision. In case of non-unanimity the final decision lies with the
Management Risk Committee (MRC), by majority voting.
The main duty and responsibility of the CCCI is to assess and approve all credit requests for clients in the Greek related
corporate performing and private banking portfolio of a total exposure above €50mio and unsecured exposure above
€35mio. For total exposure exceeding €75mio and unsecured exposure exceeding €50mio, additional approval by the GCRO
is required, while for total exposure exceeding €150mio and unsecured exposure exceeding €100mio, additional approval by
the CEO is required. Furthermore, for exposures higher than 10% (or 20% for selected borrowers where no single risk exists) of
the Bank’s regulatory capital the additional approval of the Management Risk Committee (MRC) is required. Subsequently,
the final approval is granted by the Board Risk Committee (BRC).
7.6.2
Central Credit Committee II
The main objective of the Central Credit Committee II (CCCII) is the same as for the CCCI for lower levels of exposure.
The CCCII convenes at least once a week and all meetings are minuted. Decisions are taken unanimously. If unanimity is not
achieved, the request is escalated by the Chairperson to the next approval level.
The main duty and responsibility of CCCII is to assess and approve all credit requests for clients in the Greek related corporate
performing and private banking portfolio for total exposure from €20mio up to €50mio and unsecured exposure from €10mio
up to €35mio and retail exposures for total limits above €3mio.
By the date of issuance of the 2024 Corporate Governance Statement, Committee’s self-evaluation for 2024 was in progress.
12
Information regarding current composition and short biographical details of its members may be found at the Bank’s website (www.eurobank.gr).
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7.7
Troubled Assets Committee
The Troubled Assets Committee (TAC) is established according to the regulatory provisions. The main purpose of TAC is to
act as an independent oversight body, closely monitoring the Bank’s troubled assets portfolio and the execution of its NPE
Management Strategy.
The Committee meets at least once per month and/or whenever required if the majority of the members, including the
Chairperson, are present. Decisions are taken by majority, are minuted and circulated as appropriate. The Chairman has a
castin vote.
TAC cooperates with Group Risk Management to reach a mutual understanding and develop an appropriate methodology
for the evaluation of the risks inherent in the portfolio management. TAC’s propositions regarding NPE policy updates are
submitted to the Board Risk Committee. In exceptional circumstances, decisions may be taken by circulation.
TAC’s main responsibilities are to:
●
review internal reports regarding troubled assets management under the regulatory provisions,
●
approve the available forbearance, resolution and closure solutions by loan sub-portfolio, and monitor their
performance through Key Performance Indicators (KPIs),
●
define the criteria to assess the sustainability of credit and collateral workout solutions through the design and
use of “decision trees”,
●
approve, monitor and assess pilot modification programmes and
●
supervise and provide guidance and know-how to the respective troubled assets units of Eurobank’s subsidiaries
abroad.
By the date of issuance of the 2024 Corporate Governance Statement, Committee’s self-evaluation for 2024 was in progress.
For 2023, the evaluation concluded that the committee operates effectively, in the areas of Profile and Composition,
Organization & Administration as well as regarding the Key Tasks and Responsibilities. However, the evaluation also
identified that while the overall quality and quantity of information submitted related to the proposals for assessment by
the TAC members is adequate, there is room for further enhancement on providing more details on the quantification of the
impact and measurable targets as well as indicating the monitoring frequency of all new remedial/work-out proposals. Such
enhancements will benefit TAC members make more informed decisions.
7.8
Products & Services Committee (PSC)
The Products & Services Committee (PSC) is responsible for developing and supervising the governance framework for the
products and services offered to Eurobank’s clients in Greece through the physical and alternative channels, in accordance
with the supervisory and regulatory requirements. A governance framework assessing the financial and non-financial risks is
in place. The PSC approves all new products & services as well as significant modifications in existing ones. The Committee
also implements a periodic review of all products and services, according to their risk profile to determine their continuation,
modification or discontinuation. The products and services of Remedial & Servicing Strategy are excluded and are under the
responsibility of TAC (Troubled Assets Committee).
PSC convenes once a month and/or whenever required.
The PSC is in quorum and meets validly when half of its members plus one are present (fractions are excluded from the
computation). For quorum, the Chairperson or the Vice-Chairperson (in case of Chairperson’s absence) should be also
present.
Decisions require, as a minimum, a majority vote of 50%+1 of the members present in the meeting and are recorded in the
meeting’s minutes. In case of a tie vote, the Chairperson or the Vice -Chairperson (in case of Chairperson’s absence) has the
casting vote. All members of the PSC have equal voting rights. In case of no reaching a decision due to disagreement of
Members, the issue under discussion is escalated to the Executive Board (ExBo).
Additionally, decisions may be taken by circulation, which is equal to a decision of the Committee, even if no meeting has
preceded. No resolution can be deemed for high risks products/services by circulation. They will be submitted to a PSC
Meeting for discussion and approval or rejection.
According to the Committee’s 2023 self-evaluation, its performance was assessed as very strong, it functions effectively, adds
substantially to the governance model of the Bank and its Members demonstrate a high level of commitment.
7.9
Sustainability Management Committee (SMC)
The primary mandate of the SMC is to provide strategic direction on sustainability initiatives, review the Sustainability
Strategy, Net Zero targets and transition plans prior to approval, integrate the elements of the Sustainability Strategy into
13
Information regarding current composition and short biographical details of its members may be found at the Bank’s website (www.eurobank.gr).
14
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the Bank’s business model & operations, approve changes in eligible assets of Green Bond and Sustainable Finance
Frameworks, regularly measure and analyze the progress of the Sustainability Strategy goals and performance targets,
ensure the proper implementation of Sustainability-related policies and procedures, in accordance with supervisory
requirements and voluntary commitments.
SMC convenes four times a year and/or ad hoc when necessary. Other Bank employees, depending on the subject to be
discussed, may be invited as deemed appropriate.
Required quorum for SMC meetings to be effective is eight members. In order to have a quorum, the presence of its
Chairperson and a minimum of seven (7) members is required. Decisions on issues are taken by majority. In case of a tie vote,
the Chairperson has the casting vote. Whenever a decision of the SMC is not reached unanimously, this is recorded in the
minutes along with the opinion of the minority. All meetings and decisions are minuted by the Committee’s Secretary and
Required quorum for SMC meetings to be effective is eight members. In order to have a quorum, the presence of its
Chairperson and a minimum of seven (7) members is required. Decisions on issues are taken by majority. In case of a tie vote,
the Chairperson has the casting vote. Whenever a decision of the SMC is not reached unanimously, this is recorded in the
minutes along with the opinion of the minority. All meetings and decisions are minuted by the Committee’s Secretary and
distributed to SMC members.
The evaluation highlighted the need to strengthen Committee’s oversight of sustainability training and awareness initiatives,
remuneration practices that link Sustainability criteria and the sustainability controls and procedures in place.
7.10 Ethics Co
The task of the Ethics Committee is to ensure that the Eurobank Group’s Code of Conduct & Ethics as well as the Bank’s
Statute of Internal Service is observed, to interpret and constantly enrich it, as well as to contribute, generally, to the
formulation of a code of values with which the behaviour of the officers and personnel of Eurobank, as well as that of third
persons that regularly collaborate with the Bank, must comply. Adherence to the rules of ethics contributes, on the one hand,
to the protection of dignity and personality of the personnel, and on the other hand, to the good reputation and the
protection of the interests of the Bank.
The Ethics Committee convenes once a month, if there are issues to be discussed or, exceptionally, more frequently, in case
of an emergency, in a place and time that are stated in the agenda. The Ethics Committee may convene either with the
physical presence of its members, or by electronic means. The Committee shall act unanimously.
By the date of issuance of the 2024 Corporate Governance Statement, Committee’s self-evaluation for 2024 was in progress.
Ethics Committee’s performance was evaluated for the first time in February of 2023 and it was determined that it functions
effectively, especially in the areas of Profile & Composition as well as Organization & Administration. The Ethics Committee
encourages critical discussion and a healthy challenging of corporate tisk culture.
8
Key Control Functions
As part of its overall system of internal controls, HoldCo/Bank have established a number of dedicated control functions
whose main responsibility is to act as independent control mechanisms thus reinforcing the control structure of the
HoldCo/Bank. The most important functions and their key responsibilities are described below.
8.1
Internal Audit
8.1.1
Eurobank Holdings
Internal Audit (IA) is an independent, objective assurance and consulting function designed to add value and improve the
operations of Eurobank Holdings. IA has adequate organisation structure and appropriate resources to ensure that it can
fulfil its roles and responsibilities.
Eurobank’s Group Internal Audit (Group IA) maintains a quality assurance and improvement programme to ensure that the
methodology is applied consistently and the objectives and responsibilities of Group IA are met. Under the framework of co-
operation between IA and Group IA, IA assigns the assessment of the effectiveness of internal audit activities and
conformance with IIA Standards to Group IA.
In order to safeguard its independence, IA reports functionally to the Audit Committee and administratively to the CEO. The
Board has delegated the responsibility for monitoring the activity of the IA to the Audit Committee of the HoldCo. IA is
headed by the Chief Internal Auditor (CIA) who is appointed by the Audit Committee. The latter also assesses the CIA’s
performance.
The mission of IA is to enhance and protect organisational value by providing risk-based and objective assurance, advice
and insight. The key assurance and consulting responsibilities of IA are to:
●
provide reasonable assurance in the form of an independent opinion, as to the adequacy and effectiveness of the
governance and risk and internal control framework of HoldCo and adherence to the risk appetite framework. In
order to form an opinion, IAU establishes and carries out a programme of audit work (based on the risk assessment
of the audit universe)
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●
assist management in enhancing the system of internal control including improvement of existing policies and
procedures
●
manage effectively the internal audit process and resources of IA
●
provide any information requested in writing by the Supervisory Authorities and co-operate with them in order to
facilitate their work. The AC and/or Management shall always be advised regarding information provided to the
Authorities
●
carry out any other specific duties required by the Regulatory Authorities and/or participate in projects undertaken
by the Company
●
participate in Company’s projects in an assurance or consulting capacity
●
liaise with the external auditors and other assurance providers to share information, minimise any duplication of
effort and ensure adequate coverage of risks
●
assess the adequacy and effectiveness of the control functions (such as risk management, compliance or finance)
and involving judgment determine to what extent it is appropriate to take account of the relevant work undertaken
by these functions
●
strive to maintain an open, constructive and cooperative relationship with the Supervisors.
8.1.2
Eurobank
Group Internal Audit (Group IA) is an independent, objective assurance and consulting function designed to add value and
improve the operations of Eurobank and its subsidiaries. Group IA has appropriate organisational structure and resources
to ensure that it can fulfil the roles and responsibilities as described in relevant regulations.
Group IA comprises the “Internal Audit”, the “Forensic Audit”, the “International Audit” and the “Business Monitoring and
Organisational Support”. IA also has a Quality Assurance, Standards and Methodology (QA), to assess the effectiveness of
the Group’s internal audit activities and conformance with IIA Standards. QA operates as Centre of Excellence for Audit
Standards & Methodology, acting as an advisor to IAG Management in topics related to quality improvement and
methodology. In addition, the Data Analytics Centre of Excellence (DAnCoE) of Group IA aims to enhance people skills
towards data analytics, enabling the generation of data-driven insights and provide valuable perspectives to Management
of the Group.
In order to safeguard its independence, Group IA reports functionally to the Audit Committee and administratively to the
CEO. The Board has delegated the responsibility for monitoring the activity of the Group IA to the Audit Committee of the
Bank. Group IA is headed by the Group Chief Audit Executive (CAE) who is appointed by the Audit Committee. The latter also
assesses the CAE’s performance.
The key assurance and consulting responsibilities of Group IA are to:
●
provide reasonable assurance in the form of an independent opinion, as to the adequacy and effectiveness of the
governance and risk and internal control framework of Eurobank and adherence to the risk appetite framework. In
order to form an opinion, IAG establishes and carries out a programme of audit work (based on the risk assessment
of the audit universe)
●
assist Management in enhancing the system of internal controls including improvement of existing policies and
procedures
●
manage effectively the internal audit process and resources of both IAG and the Internal Audit departments of
subsidiaries that are reporting directly to IAG and assess the performance of the Group’s internal audit functions,
which have a direct reporting line
●
follow-up to ascertain that appropriate action is taken on reported audit findings within agreed deadlines [Law
3016/02 & Law 4706/20]
●
attend Shareholders’ General Meetings [Law 3016/02 & Law 4706/20]
●
provide any information requested in writing by the Supervisory Authorities and co-operate with them in order to
facilitate their work. The Audit Committee and/or Management shall always be advised regarding information
provided to the Authorities
●
carry out any other specific duties required by the Supervisory Authorities and/or participate in bank wide projects
undertaken by the Bank
●
participate in Bank projects in an assurance or consulting capacity
●
liaise with the Legal Services and Group Human Resources General Divisions and provide support to the Ethics and
Operational Risk Legal Cases Committees
●
liaise with the external auditors and other assurance providers to share information, minimise any duplication of
effort and ensure adequate coverage of risks
●
assess the adequacy and effectiveness of the control functions (such as risk management, compliance or finance)
and involving judgment determine to what extent it is appropriate to take account of the relevant work undertaken
by these functions
●
maintain an open, constructive and cooperative relationship with the Supervisors
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●
assist and advise Management on the prevention and detection of fraud or defalcation or unethical practices and
undertake such special projects as required.
8.2
Risk Management
8.2.1
Eurobank Holdings
As part of its overall system of internal controls HoldCo has engaged in a Service Level Agreement (SLA) with Eurobank in
order to receive supporting and advisory services in all areas of risk management (credit, market, liquidity and operational
risks) undertaken by the Group.
The most important services provided through the above-mentioned SLA are described below:
●
provision of advice on:
-
Identification, evaluation and monitoring of credit risk,
-
Ensuring policy and instructions (strategy and products) recommended by business owners and Servicers are
aligned to applicable credit policy manual and regulatory guidelines,
-
Standardization of procedures and guidelines,
-
Update and maintenance of the risk strategic framework master document,
-
Participation in systemic bank consultation committees,
-
Review new remedial products and initiatives prior submission to TAC or approval
●
coordination of NPE related regulatory reporting
●
provision of input for SSM submission and 3-year business plan, monthly MIS actual data (including Greek and
International subsidiaries)
●
advising on identification, support/advise, recording and evaluation of liquidity risks and financial monitoring
●
advising in the identification, assessment, recording and monitoring of operational risks (e.g. RCSA, events capture,
outsourcing etc.)
●
advising in the identification, assessment, recording and monitoring of sustainability risk.
8.2.2
Eurobank
The Group Risk Management, which is headed by the Group Chief Risk Officer (GCRO), operates independently from the
business units and is responsible for the identification, assessment, monitoring and measurement of the risks the Bank is
exposed to. The major types of risk managed by Eurobank are the material risks, identified through the Risk Identification
and Materiality Assessment (RIMA) process and listed in the relevant RIMA report.
Material risk types include financial and non-financial risks, indicatively credit risk, market risk, liquidity risk, interest rate risk
and credit spread risk in the banking book, operational risk, sustainability risk, country risk, reputational risks, conduct risk,
risks stemming from strategic projects.
The Group Risk Management comprises the Group Credit, the Group Credit Control, the Group Credit Risk Capital Adequacy
Control, the Group Market & Counterparty Risk, the Group Operational and Non-financial Risks, the Group Model Validation
& Governance, the Group Risk Management Strategy Planning Operations & Sustainability Risk, the Risk Analytics and the
Supervisory Relations & Resolution Planning
The GCRO serves as a pivotal point for the risk management functions. Centralization ensures that business targets and
related growth are combined with a risk conscious perspective, thus ensuring that the approved risk appetite is adhered to.
The GCRO develops and formalises the Risk Appetite Framework (RAF), defines the Risk Appetite Statements (RAS), and
submits them to the Board Risk Committee for approval. The GCRO oversees the implementation of the frameworks and
policies for the identification, measurement and management of risks.
The GCRO reviews and approves the risk policies before their submission for approval to the BRC or to the BoD and oversees
their implementation thereafter. The GCRO reports to the BRC deviations from the risk policies or potential conflict with the
approved risk strategy and risk appetite.
The GCRO is responsible to provide to the BRC adequate information, so that the Committee can properly assess and advise
the BoD on the Group’s risk exposures / profile and risk strategy. The GCRO oversees compliance with approved Risk Appetite
limits, and reports to the BRC the compliance status and any deviations, as stipulated in the Risk Appetite Framework (RAF).
Eurobank has a well-established strategy and clear risk management objectives that has to deliver through core risk
management processes and methodologies. At a strategic level, the risk management objectives are to:
●
identify the new risks relevant to the Group and assess their materiality
●
assess the current and emerging risks as an integral part of the strategic planning process
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●
provide opinion for the Group Business Plan regarding the risk perspective on the overall outcome and reliability of
the Plan
●
ensure that business plan is consistent with Eurobank’s risk appetite
●
participate actively in decision-making processes to ensure that risk considerations are considered appropriately
●
optimize risk/return decisions, while establishing strong and independent review
●
ensure that business growth plans are properly supported by effective risk infrastructure
●
manage risk profile to ensure that specific financial deliverables remain possible under a range of adverse business
conditions
●
assist senior executives to improve the control and co-ordination of risk taking across their business
●
cultivate a robust risk culture throughout the Bank, encouraging a positive attitude towards risk management,
regulatory compliance and the internal control framework, through strong risk awareness and ownership, where all
staff members consider risk management as an integral part of their everyday responsibilities
●
provide the framework, procedures and guidance to enable all employees to manage risk in their own areas and
improve the control and co-ordination of risk taking across the Bank
●
advise and support Eurobank Holdings in risk management according to the agreed Service Level Agreement (SLA)
between Eurobank Holdings and Eurobank.
Risk Management along with Compliance and other Units are involved in the assessment of all products and services
throughout their lifecycle.
The Group applies the elements of the Three Lines of Defence Model for the management of risk. The Three Lines of Defence
Model enhances risk management and control by clarifying roles and responsibilities within the organization. Under the
oversight and direction of the Management Body, three separate lines of defence are necessary for effective risk
management. In particular:
-
Line 1 - Own and manage risk and controls. The front-line business and operations are accountable for this
responsibility as they own the rewards and are the primary risk generators.
-
Line 2 - Monitor risk and controls in support of Executive Management, providing oversight, challenge, advice and
group-wide direction. These include the Risk Management and Compliance Units, among others.
-
Line 3 - Provide independent assurance to the Board and Executive Management concerning the effectiveness of
risk and control management. This refers to Internal Audit.
8.3
Compliance
8.3.1
Eurobank Holdings
Eurobank Holdings Compliance is established with the approval of the Board of Directors and the Audit Committee of
Eurobank Holdings. It is a permanent function and independent from Eurobank Holdings’ business activities so that conflicts
of interests are avoided. In order to safeguard its independence, Eurobank Holdings Compliance reports functionally to the
Audit Committee of Eurobank Holdings
and for administrative purposes to the CEO
. The Audit Committee in consultation
with the NomCo, proposes to the Board for approval the appointment, replacement or dismissal of the Head of Eurobank
Holdings Compliance. The performance of the Head of Eurobank Holdings Compliance is assessed on an annual basis by the
AC. The Head of Compliance attends all AC meetings and submits quarterly and annually reports (per regulatory
requirements) summarizing Compliance’s activity and highlighting the main compliance issues.
Its mission is to promote, within Eurobank Holdings, an organizational culture that encourages ethical conduct, and a
commitment to compliance with laws and regulations as well as global governance standards.
The main objective of Eurobank Holdings Compliance is to ensure that Eurobank Holdings has established an adequate
system of internal controls that allows it to operate in accordance with the ethical set of values contained in its "Code of
Conduct and Ethics" and in compliance with applicable laws, regulations and internal policies. More specifically, for the
regulatory topics within its scope of responsibilities, Eurobank Holdings Compliance is mandated to:
●
raise compliance awareness in Eurobank Holdings
●
provide advice the Board of Directors and Senior Management on Eurobank Holdings compliance with applicable
laws, rules and standards and keeping them informed of related developments
●
issue, as necessary, policies and other documents, in order to provide guidance to staff on the appropriate
implementation of applicable laws, rules and standards as well as to assist the business to develop and implement
regulatory compliant policies and procedures
●
review new activities and advise on potential compliance risks
●
ensure that staff is adequately trained about compliance issues
18
day to day administrative processes
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●
provide support and challenge, if required, the business line management regarding the effectiveness of the
compliance risk management activities
●
monitor whether staff applies effectively the internal processes and procedures aimed at achieving regulatory
compliance
●
monitor through appropriate procedures staff adherence to internal policies and the "Code of Conduct and Ethics"
and identify fraudulent activity
●
monitor timely submission of reports to Competent Authorities and report any delays and fines for any alleged
breaches of regulations to the AC
●
fulfil any statutory responsibilities and liaise with regulators and external bodies on compliance issues.
8.3.2
Eurobank
Group Compliance is established with the approval of the Board of Directors and the Audit Committee of Eurobank. It is a
permanent function and independent from the Bank’s business activities so that conflicts of interests are avoided. In order
to safeguard its independence, Group Compliance reports functionally to the Board of Directors through Audit Committee
of the Bank and for administrative purposes to the CEO. The Audit Committee in consultation with the NomCo proposes
to the Board for approval the appointment, replacement or dismissal of the Group Chief Compliance Officer (Group CCO).
The performance of the Group CCO is assessed on an annual basis by the AC. The Group CCO attends all Audit Committee’s
meetings and submits quarterly and annual reports (per regulatory requirements) summarising Group Compliance’s activity
and highlighting the main compliance issues.
Its mission is to promote, within Eurobank and its subsidiaries (Eurobank group), an organizational culture that encourages
ethical conduct through integrity and a commitment to compliance with laws and regulations as well as the application of
international governance standards.
The main objective of Group Compliance is to ensure that the Eurobank group has established an adequate system of
internal controls that allows it to operate in accordance with the ethical set of values contained in its “Code of Conduct and
Ethics” and in compliance with applicable laws, regulations and internal policies, as well as international best practices. In
brief, for the regulatory topics within its scope of responsibilities, Group Compliance is mandated to:
●
raise compliance awareness throughout the Eurobank group,
●
provide advice to the Board of Directors and Senior Management on compliance with applicable laws, rules and
standards and keep them informed of related developments,
●
issue policies, procedures and other documents such as compliance manuals, internal codes of conduct & ethics and
practice guidelines in order to provide guidance to staff on the appropriate implementation of applicable laws, rules
and standards as well as to assist the business to develop and implement regulatory compliant policies and
procedures,
●
review new activities and advise on potential compliance risks,
●
ensure that staff is adequately trained and frequently updated about compliance issues by designing training
programs and co-operating with HR for their implementation,
●
ensure the development of a robust compliance risk identification and assessment framework, provide support and
challenge, if required, the business line management regarding the effectiveness of the compliance risk management
activities,
●
coordinate compliance risk management actions performed by other business units,
●
monitor and test whether staff applies effectively the internal processes and procedures aimed at achieving
regulatory compliance and report to the relevant Business Units any potential breaches in order for the latter to
proceed with the required improvem ents,
●
monitor staff adherence to internal policies and the "Code of Conduct and Ethics" and identify potential breaches
or fraudulent activity,
●
monitor timely submission of reports to Competent Authorities and report any delays and fines for any alleged
breaches of regulations to the AC,
●
fulfil any statutory responsibilities and liaise with regulators and external bodies on compliance issues,
●
supervise, monitor, coordinate and evaluate the activities of the Compliance Officers of the Bank’s local and
international subsidiaries in order to ensure compliance with Eurobank group standards.
The scope of activities of Group Compliance covers the following core regulatory topics:
●
Financial Crime including laws and regulations on Anti Money Laundering (AML) and Countering the Financing of
Terrorism (CFT) and legislation aimed at combatting Tax evasion such as FATCA and CRS (tax compliance). The
scope includes the provision of timely and accurate responses to requests arising from regulatory and judicial
authorities for the lifting of banking secrecy or freezing of assets and co-operation with them. Financial Crime also
19
smooth day to day administrative processes
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includes anti
-bribery and anti-corruption legislation. The Eurobank Audit Committee in consultation with the
Eurobank NomCo proposes to the Board for approval the appointment, replacement, or dismissal of the Anti-Money
Laundering Reporting Officer of Eurobank, who may be the same person as the Group CCO, and his/her Deputy
●
Conduct related regulations, including:
o
market Conduct related regulation regarding the provision of investment products and services to clients
including laws and regulations on Market Manipulation, Insider Trading, Unlawful disclosure of inside
information and other financial crimes,
o
Internal Conduct and Ethics, including monitoring adherence with the Group Code of Conduct and Ethics and
its related policies, Conflicts of Interest, insider dealing and manging the Ethics Hotline
o
customer conduct laws and regulations (including, inter alia, dormant accounts legislation, BoG’s Code of
Conduct for loans, the Payment Services Directive and the Deposit Guarantee scheme).
Group Compliance has an overlay role over the regulatory framework concerning personal data protection, corporate
governance, prudential regulation (credit market, liquidity and operational risk), information & IT security, cyber security risk,
outsourcing and Sustainability Framework. In this context Group Compliance performs a high-level monitoring through
compliance risk assessments and monitoring of the alignment of the Bank’s activities with regulatory requirements.
The scope of activities can be expanded with the approval of the AC.
8.4
Personal Data Protection
8.4.1
Eurobank Holdings
In the context of Personal Data Protection, Eurobank Holdings has entrusted the following functions to the Bank’s Personal
Data Protection Unit with the support of Legal where needed:
●
consultation and advice regarding the drafting of privacy notices for the customers, employees, shareholders of the
HoldCo and/ or persons with voting rights and their representatives in the HoldCo meetings and committees,
●
provision of drafts of privacy policies, cookies policies and cookies management tool for the HoldCo's website,
●
provision of advice in handling requests and complaints of data subjects,
●
provision of advice for incident and data breach management and notifications to the competent authority, if
required,
●
provision of advice on GDPR policies and related guidelines.
8.4.2
Eurobank
Personal Data Protection Unit assists the Data Protection Officer (DPO) in performing his duties in an independent manner.
Key tasks include:
●
issues relevant guidelines on GDPR requirements and provides relevant advice to involved Units,
●
provides advice, where requested, for the appropriate technical and organizational measures to be implemented to
ensure compliance with the principles of privacy by design and privacy by default,
●
provides advice regarding the content of privacy notices,
●
provides advice on the appropriate handling of the GDPR requests and/or complaints,
●
upon request, provides advice regarding the categorization of the third parties, in accordance with the GDPR and
any other applicable data protection legislation (controller/ joint controller/processor/ sub-processor), and the
relevant privacy terms to be signed,
●
provides advice to the Incident Management Team on whether the incident must be reported to the data protection
authority,
●
provides advice, where requested, as regards the performance of Data Protection Impact Assessments,
●
provides advice where requested as regards the maintenance of the Register of Processing Activity.
9
System of Internal Controls
9.1
Principles of Internal Controls
The Group has established a robust System of Internal Controls that aligns with international best practices and utilizes
COSO terminology. This system is designed to provide reasonable assurance regarding the achievement of objectives in key
categories:
●
Efficient and Effective Operations: The Group's internal controls ensure that operations are conducted efficiently
and effectively, promoting productivity and optimal resource utilization.
●
Reliability and Completeness of Financial and Management Information: Internal controls are in place to ensure that
financial and management information is reliable, accurate, and complete. This helps in making informed decisions
and maintaining transparency.
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●
Compliance with Applicable Laws and Regulations: The Group emphasizes compliance with all relevant laws,
regulations, and industry standards. Internal controls are designed to ensure adherence to legal requirements and
mitigate regulatory risks.
The key principles that underpin the Group’s System of Internal Controls are as follows:
●
Control Environment: The control environment serves as the foundation for all internal control components. It
includes factors such as management's integrity and ethical values, recruitment and training policies, organizational
structure, and delegation of authority. These elements contribute to a strong control consciousness among
employees.
●
Risk Management: The Group recognizes the importance of risk management in its operations. It implements
mechanisms to identify, assess, and manage risks that may impact the achievement of objectives. The risk
management framework is dynamic and evolves to address new and emerging risks.
●
Control Activities: Internal control activities are documented in policies and procedures that ensure safe operations
and accurate record-keeping. Segregation of duties is a crucial organizational measure to enhance control
effectiveness, ensuring that key functions such as approval, dealing, administration, and controlling are separated.
●
Information and Communication: Effective information and communication channels are established to ensure that
relevant information is identified, captured, and communicated in a timely manner. This includes internal
communication within the organization and external communication with stakeholders such as regulators,
shareholders, and customers.
●
Monitoring: The Group conducts ongoing monitoring of activities as part of its operations. This includes regular
management and supervisory activities, internal audits, and independent evaluations of the internal control system.
Internal control deficiencies are reported and escalated as necessary, with major issues reported to top
management, the Audit Committee, and the Board.
Additionally, the efficiency of the internal control system is independently evaluated every three years by a third-party
auditing firm, in accordance with regulatory requirements. The evaluation report is assessed by competent bodies within the
Group and submitted to regulatory authorities for review and acknowledgment.
9.2
Characteristics of the System of Internal Controls (SIC)
HoldCo and Eurobank have established key characteristics of their System of Internal Controls (SIC), which are indicative and
not restrictive. These characteristics include:
●
Code of Conduct: There is a defined Code of Conduct along with processes for monitoring its implementation to
ensure ethical conduct and adherence to standards.
●
Organizational Chart: An approved organizational chart is in place, depicting the hierarchy and functions of each
sector/department clearly defined to ensure effective management.
●
Audit Committee: The composition and function of the Audit Committee are outlined to oversee financial reporting
and compliance.
●
Strategic Planning: A description of strategic planning processes is provided, including development,
implementation, and periodic evaluation of strategic objectives.
●
Action Plans: Long-term and short-term action plans for important activities are established, with periodic reports
and identification of deviations along with justifications.
●
Articles of Association: The Articles of Association are complete and up-to-date, reflecting the objectives and
operations of the entity.
●
Directorates and Departments: Tasks of directorates, departments, and job descriptions are defined to ensure clarity
in roles and responsibilities.
●
Policies and Procedures: Policies and procedures for important operations are documented, including internal
controls for risk management.
●
Compliance Processes: Processes for compliance with legal and regulatory frameworks are established to ensure
adherence to laws and regulations.
●
Risk Assessment and Management: Processes for risk assessment and management are in place to identify and
mitigate risks effectively.
●
Financial Information Integrity: Processes ensure the integrity and reliability of financial information through
accurate reporting and controls.
●
Executive Performance Evaluation: Processes for recruitment, training, delegation, targeting, and evaluation of
executive performance are outlined.
●
Information Systems Security: Processes for the security, adequacy, and reliability of information systems are
established to safeguard data.
●
Personnel and Asset Protection: Processes are in place to safeguard personnel and assets, ensuring security and
protection.
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●
Reporting and Communication: Reporting lines and communication channels within and outside the organization
are described for effective information flow.
●
Monitoring and Evaluation: Mechanisms are established for monitoring and evaluating the efficiency and
effectiveness of processes regularly.
●
Independent Evaluation: There is a process for periodic evaluation of the adequacy and efficiency of the SIC by an
independent auditor to ensure objectivity.
●
Environmental Policies: Policies for environmental management and other ESG factors are recorded to address
sustainability and social responsibility.
●
These policies and procedures are part of the corporate governance system's assessment and are regularly reviewed
and updated to align with best practices and regulatory requirements.
9.3
Evaluation of the System of Internal Controls
The Bank's AC is responsible for annually reviewing and evaluating the adequacy of the Internal Control System (ICS) of both
the Bank and its subsidiaries. This evaluation is based on data and information provided by the Group Internal Audit (IA) of
the Bank, external auditors' findings and remarks, as well as feedback from supervisory authorities. The AC utilizes oversight
and reporting mechanisms established with the Audit Committees of the Bank's Subsidiaries to ensure a comprehensive
assessment.
Similarly, the HoldCo's AC is tasked with reviewing and evaluating the adequacy of the Internal Control System (ICS) of the
HoldCo itself. This evaluation is conducted based on relevant data and information from the Internal Audit (IA) of the HoldCo,
findings and remarks from external auditors, and feedback from supervisory authorities. The AC ensures a thorough
assessment of the HoldCo's ICS to uphold standards of governance and compliance.
9.4
Independent Evaluation of the HoldCo/Bank System of Internal Controls
In March 2024, Grant Thornton presented the scope, findings, and methodology of their Independent triennial Evaluation of
the HoldCo/Bank System of Internal Controls (SIC) to the HoldCo/Bank AC members, as per the Bank of Greece Act
2577/9.3.2006 (BoG Act).
Based on the procedures conducted and the evidence gathered, there were no indications that the SIC, at the time of
assessment, was not compliant in all material aspects with the requirements of the BoG Act.
Grant Thornton identified 21 observations during their assessment, categorized as 16 low-risk observations and 5 medium-
risk observation related to the IT issues in Eurobank Equities, and 7 recommendations for improvement. Management will
take appropriate actions in response to these observations.
9.5
Corporate Governance System Assessment in accordance with article 4 par. 1 of Law 4706/2020
In compliance with Article 4, Paragraph 1 of Law 4706/2020 (the Law), the HoldCo and Bank Boards of Directors (BoDs) are
responsible for designating and overseeing the implementation of the corporate governance system (CGS) as outlined in
Articles 1 to 24 of the Law. Additionally, the BoDs must monitor and evaluate the application and effectiveness of the CGS
at least every three (3) financial years, taking necessary actions to address any deficiencies.
Given that the Law came into force on 17.7.2021, the Hellenic Capital Market Commission (HCMC) specified that the maximum
reporting period for the first CGS review should extend from 17.7.2021 to 31.12.2024. It also required that the 2024 Corporate
Governance Statement include a relevant reference to this review.
In this context, the HoldCo and Bank NomCos reviewed the CGS for the reporting period and updated the HoldCo and Bank
BoDs accordingly. The review concluded that HoldCo and Bank have taken all necessary actions to fully comply with the Law,
as no gaps were identified.
Furthermore, in line with supporting work related to the Corporate Governance Framework, performed both by external
parties and internally, HoldCo and Bank have taken proactive measures to exceed the Law’s provisions, enhancing their
processes and practices for more efficient governance. In this regard, HoldCo and Bank have effectively addressed identified
issues and implemented recommendations for improvement provided by external parties, including regulators and external
advisors.
10
Sustainability
10.1
Sustainability Approach
Eurobank supports the transition towards a sustainable economy and considers sustainability and climate change as an
opportunity. A key strategic objective is to adapt the Bank’s business and operation in a way that addresses climate change
challenges, accommodates social needs within its business model and safeguards prudent governance for itself and its
counterparties, in accordance with supervisory initiatives, and following international standards and best practice. The
Bank’s commitment to address climate change is expressed through quantified objectives, such as its detailed action plan
to align its operations, lending and investment portfolios to reach Net Zero by 2050.
Eurobank has expressed the sustainability aspect of its business through the lens of Impact generation. The Sustainability
Strategy has been defined in a holistic approach across two pillars of impact: the operational impact arising from its
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operational activities and footprint, and the financed impact resulting from the Bank’s lending and investing activities to
specific sectors and clients. These two pillars of impact aim to capture the essence of the Bank’s business effect on the
climate, the protection of the natural environment, its contribution to addressing societal challenges at large, the prosperity
of its own people, its contribution to raising business capacity in the markets where the Bank operates, and the internal
processes that build and secure the confidence of its stakeholders.
Eurobank has designed, approved and currently implements the Sustainability Strategy including targets and commitments
along the two key pillars:
A. Operational Impact Strategy
The Operational Impact Strategy defines the Bank’s operational sustainability priorities and objectives, and is deployed
along three strategic pillars, each of which is supported by a specific objective, commitments and targets:
●
Environmental Impact: Minimising negative impact in its operations to promote environmental stewardship and
attain climate neutrality.
●
Societal Impact: Providing a diverse and inclusive environment for its people and clients, while fostering sustainable
development and prosperity for the benefit of society.
●
Governance and Business Impact: Focusing on building ESG awareness, internally and across its value chain, while
intensifying its efforts for ethics and transparency
B. Financed Impact Strategy
The Bank’s Financed Impact Strategy sets targets and commitments addressing the impact arising from the Bank’s lending
and investing activities to specific sectors and clients and focuses on:
●
Clients’ engagement and awareness to adapt their business so as to address climate change challenges.
●
Actions for supporting clients in their transition efforts towards a more sustainable economic environment.
●
Enablers and tools, such as frameworks and products, to underpin sustainable financing.
●
Assessment and management of sustainability material exposures and risks.
10.2
Sustainability Policies & Frameworks
Eurobank has taken action towards updating its Sustainability Policy Framework, to outline the approach for adherence to
applicable regulatory requirements and voluntary initiatives as well as adopted standards and guidelines, thus enabling a
contemporary and continuously updated approach towards Sustainability, in line with international best practice. The
Sustainability Policy Framework sets the foundation towards the integration of Sustainability principles into Eurobank’s
business model and operations.
Focusing on the social aspect of Sustainability, Eurobank has taken actions that outline its corporate values, principles and
commitments by issuing the Human Rights Statement, the Diversity, Equity and Inclusion Policy as well as the Policy against
Harassment and Violence in Workplace. In order to further enhance its efforts against Harassment and Violence in Workplace,
the Bank has introduced a relevant focused training program to all employees. This approach outlines zero-tolerance for
various types of violation and discrimination as well as for the equal opportunities with fairness and meritocracy and
irrespective of gender, nationality, age or other traits throughout the entire employee life cycle (i.e. recruitment and selection,
learning, performance, talent and career development, reward management).
Moreover, Eurobank has developed and implements three guiding frameworks, defining the approach and criteria for
classifying its financing and investing activities as sustainable:
●
its Sustainable Finance Framework (SFF), which supports the identification of sustainable/green financing
opportunities and provides a clear and comprehensive methodology for classifying, monitoring and reporting
sustainable financing.
●
its Green Bond Framework. The Framework, which has been externally reviewed by an established second-party
opinion provider, facilitates the financing of projects that will deliver environmental benefits to the economy and
support Bank’s business strategy and vision,
●
its Sustainable Investment Framework, which describes the Bank’s potential sustainable investment
approaches/strategies and the process for selection of eligible investments, based on criteria observed in
international market practices, frameworks and guidelines.
The above-mentioned frameworks enable the Bank to pursue economic growth in line with sustainable criteria.
These frameworks are complemented by the adopted Environmental Policy, Energy Management Policy and Water
Management Policy, aiming to protect the environment in all aspects of its operations. In line with these policies, the Bank
applies certified management systems, in accordance with international standards, such as an Environmental Management
System (ISO 14001, EMAS) and an Energy Management System (ISO 50001).
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10.3
Stakeholders engagement and double materiality assessment
An integral part of Eurobank's approach to Sustainability is to foster strong relationships of trust, cooperation and mutual
benefit with all stakeholders affected by its activities, directly or indirectly. Eurobank promotes two -way communication and
develops ongoing dialogue with stakeholders, to be able to actively meet the expectations, concerns and issues raised by all
its stakeholders. A more detailed presentation of the cooperation framework, expectations and means of communication
and response for each stakeholder group is included in the Annual Report 2023 – Business & Sustainability.
In 2023, Eurobank marked the early adoption and implementation of the Double Materiality Assessment, highlighting a
critical turning point in its sustainability path under the new European Sustainability Reporting Standards (ESRS), which is
the key process used to define the Annual Report 2023 – Business & Sustainability content. In this context, the Bank identified,
assessed, prioritized and validated the Environmental, Social and Governance (ESG) impacts arising from its activities and
also assessed risks and opportunities that may have material financial influence on Eurobank, throughout its value chain. In
this context, Eurobank has adopted a forward -thinking approach by incorporating the concept of Double Materiality into its
operational and financed activities. The methodology was carried out in 4 phases, namely i. Understanding the organization’s
context and value chain, ii. Identifying impacts, risks and opportunities (IROs), iii. Assessing impacts, risks and opportunities,
and iv. Prioritizing and validating material topics and IROs. As per the final stage of the double materiality and as informed
by the results of the impact and financial materiality assessment process, a list of topics was prioritized as material, which in
turn formed the basis for determining the contents of the Annual Report 2023 – Business & Sustainability, as well as the
disclosures of relevant key performance indicators. Further details regarding the aforementioned process and its results are
embedded in the Annual Report 2023 – Business & Sustainability.
Governance
Sustainability at Eurobank is deployed across a Governance structure that addresses both regulatory requirements and
voluntary commitments. Board oversight with respect to the Sustainability Strategy is addressed through the inclusion of
sustainability items in the Board Meetings agenda, as per international best practice. The Group applies the elements of the
Three Lines of Defense (3LoD) model for the management of Sustainability risks and aspects. The 3LoD model enhances risk
management and control by clarifying roles and responsibilities within the organization. Eurobank’s Sustainability
Governance model ensures that the management of relevant Sustainability risks is integrated into the Bank’s Three Lines of
Defense. Additionally, the Group Senior Sustainability Officer (GSSO) plays a key role in leading and coordinating the
Group’s sustainability initiatives, reporting directly to the senior management and Board for sustainability matters and the
Group Sustainability Coordination Office serves as the Secretary of the Sustainability Management Committee. The
Sustainability Governance structure aims to further enhance effective oversight of sustainability matters at Management /
Board level, support the roll out of its Sustainability Strategy and the integration of Sustainability risks.
In that context, the Group Sustainability Risk (GSR) is responsible for managing and monitoring Sustainability risks, for the
implementation of the Climate related and Environmental risks roadmap, designing, along with Business and Risk Units, the
Financed Impact Strategy and monitoring of its implementation thereof. Moreover, the Eurobank Holdings / Eurobank Boards
have assigned an executive member as the responsible Board Member
for climate and environmental risks
. This member
provides updates to the Board Risk Committees (BRC) at least semi-annually. As outlined in their Terms of Reference, the
BRC is responsible for overseeing (among others) sustainability issues, including sustainability risks.
A dedicated Sustainability Management Committee (SMC) complements the Sustainability Governance model. The SMC
provides strategic direction on sustainability initiatives, reviews the Sustainability Strategy, Net Zero targets and transition
plans prior to approval, integrates the elements of the Sustainability Strategy and the Net Zero commitments, into
Eurobank’s business model and operations, approves changes in eligible assets of Green Bond and Sustainable Finance
Frameworks, regularly measures and analyzes the progress of the Sustainability Strategy goals and performance targets,
ensures the proper implementation of Sustainability-related policies and procedures, in accordance with supervisory
requirements and voluntary commitments.
A dedicated Group Sustainability Unit (GSU) is responsible for managing and coordinating sustainability strategy related
issues, for the development of action plans for the Bank's Net Zero portfolio strategies, as well as for monitoring sustainability
performance and coordinating sustainability-linked activities that enhance the Group’s Impact. In this context, the Unit is
responsible for facilitating the development of the Sustainability data framework to coordinate and prepare external and
internal Sustainability-related reports. Finally, Group Sustainability Risk is responsible for managing and monitoring
sustainability risks, for acting as a PMO office for implementing the sustainability risks roadmap, and for designing, along
with the GSU and Business Units, and monitoring the Financed Impact Strategy.
10.4
Reporting and Transparency
HoldCo/Bank issues its Annual Report – Business & Sustainability with a view to fully inform its stakeholders about its
performance in the sustainable development pillars (economy, society, environment). The publication is prepared in
accordance with the Global Reporting Initiative (GRI) Standards (2021), applying the reporting principles (accuracy, balance,
clarity, comparability, completeness, sustainability context, timeliness, verifiability). This reporting approach aims at
providing comprehensive and transparent information to stakeholders, relates to Eurobank’s response to their expectations
and interests, and invests in continuously promoting open dialogue with them. Through the Report, Euroban/HoldCo provide
full disclosure on sustainability impacts such as environmental performance, energy and emissions, social impact and
corporate governance, information regarding the Bank’s initiatives, while addressing all material stakeholder interests across
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the sustainability spectrum. The Annual Report - Business & Sustainability is accessible to all interested parties through the
corporate website. Additionally, besides the sustainability reporting frameworks of the GRI sectoral supplement on Financial
Services, the SASB Commercial Banks Standard, as well as the Athens Stock Exchange (ATHEX) ESG Reporting Guide (2024)
have been considered, while the materiality assessment was conducted in accordance with the ESRS standards. This report
also incorporates the 10 Principles of the United Nations Global Compact (UNGC), as well as the Accountability AA1000 2018
Principles. The sustainability-related disclosures in the report are assured by a competent assurance provider in accordance
with the AA1000 Assurance Standard (version 3) and related Principles for inclusivity, materiality, responsiveness and impact,
as per the independent auditor’s Limited Assurance Report which is disclosed as part of the Annual Report – Business &
Sustainability. In addition, the Holdco/Bank reports disclosures as required by the EU Taxonomy (Regulation (EU) 2020/852
of the European Parliament and of the Council). Specifically, upon reviewing its business activities, to align taxonomy
reporting with its core activities, provides the key performance indicators (KPIs) and other disclosure requirements related to
its dominant financial undertakings as laid down in Article 10 of the Art. 8 Delegated Act. Furthermore, in the context of Pillar
III disclosures on ESG risks, Holdco/Bank discloses sustainability risk information on a semi-annual basis. Moreover, Eurobank
is publishing its Task Force on Climate-related Financial Disclosures (TCFD) Climate - related & Environmental Risk Report on
an annual basis. Also, the Bank's GHG financed emissions for loans, bonds and shares positions, following the PCAF
methodology, were disclosed.
Furthermore, the Bank’s environmental and energy management performance, with respect to the improvement of its
operational footprint, is monitored through specific indicators and associated targets disclosed also in the Environmental
Report (EMAS). This constitutes an environment and energy monitoring and self-improvement tool, in line with commitments,
regulated by applicable standards, audited & verified by independent third party. Within the EMAS Report framework, the
Bank discloses the Green House Gas emissions record in line with the ISO 14064 standard, as verified by external independent
party and in line with the provisions of the national Climate Law.
Moreover, Holdco/Bank actively participates in internationally recognized Sustainability ratings to highlight the continuous
improvement in its environmental, social and governance performance, upgrade the relevant disclosures, and further
enhance investor confidence in its practices.
11
Other information required by Directive 2004/25/EU
The elements c), d), f), h), and i) of paragraph 1, Article 10 of Directive 2004/25/EC of the European Parliament and the Council
have been incorporated into elements c), d), e), g), and h) of Article 4, Paragraph 7 of Law 3556/2007. These elements are
included and referenced in the Report of the Directors, of which the present Corporate Governance Statement forms an
integral part.
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SUSTAINABILITY STATEMENT
Index to the Sustainability Statement ................................ ................................ ................................ ................................ ................................ .............Page
1. General information
1.1 Basis for preparation ................................ ................................ ................................ ................................ ................................ ................................ ............. 2
1.2 Disclosures in relation to specific circumstances ................................ ................................ ................................ ................................ ..................... 2
1.3 Governance ................................ ................................ ................................ ................................ ................................ ................................ ................................ . 2
1.4 Strategy - Company, business model and stakeholder engagement ................................ ................................ ................................ ......... 12
1.5 Materiality analysis and results according to the concept of double materiality ................................ ................................ ................ 21
2. Environmental information
2.1 Disclosures under Article 8 of Regulation (EU) 2020/852 ................................ ................................ ................................ ................................ . 35
2.2 Climate change ................................ ................................ ................................ ................................ ................................ ................................ ...................... 38
2.3 Biodiversity and ecosystems ................................ ................................ ................................ ................................ ................................ ........................... 58
2.4 Integration of sustainability in risk management ................................ ................................ ................................ ................................ ................ 60
2.5 Sustainable financing and investment offerings ................................ ................................ ................................ ................................ .................. 65
3. Social information
3.1 Own workforce ................................ ................................ ................................ ................................ ................................ ................................ ........................ 72
3.2 Consumers and end-users ................................ ................................ ................................ ................................ ................................ ................................ 88
3.3 Fostering innovation ................................ ................................ ................................ ................................ ................................ ................................ ............ 94
3.4 Financial inclusion ................................ ................................ ................................ ................................ ................................ ................................ ................ 100
4. Governance information
4.1 Business conduct ................................ ................................ ................................ ................................ ................................ ................................ .................. 106
4.2 Data security and customer privacy ................................ ................................ ................................ ................................ ................................ ............ 112
APPENDIX – Disclosures under Article 8 of Regulation (EU) 2020/852 ................................................................ ................................ ................. 116
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1 General Information
1.1 Basis for Preparation
General basis for preparation of sustainability statements [BP-1]
This sustainability statement for the fiscal year ended 31 December 2024, has been prepared on a consolidated basis.
The scope of the statement covers the same scope of consolidation as the Financial Statements.
For the purpose of this sustainability statement the below definition is incorporated: the Eurobank Holdings Group (the Group)
consists mainly of Eurobank S.A. (Eurobank or Bank) and its subsidiaries (the Eurobank or Bank Group).
This sustainability statement covers the upstream and downstream value chain to the following extent: The upstream value
chain includes key suppliers such as those providing IT hardware, office supplies, energy, and capital, as well as the regulatory
and voluntary frameworks provided by bodies like the European Central Bank (ECB), the European Banking Authority (EBA),
and the Single Resolution Board (SRB). The downstream value chain includes Eurobank's corporate and retail clients who
benefit from financing, investment banking, advisory services, and leasing solutions.
The value chain has been considered in the materiality assessment to identify material impacts, risks, and opportunities by
evaluating the key activities and stakeholders in both the upstream and downstream segments, including the environmental
and social impacts of suppliers and customers. Moreover, Eurobank’s policies, actions, and targets extend to Eurobank’s value
chain as far as suppliers, corporate and retail clients, ensuring sustainability considerations are integrated into decision-
making processes for financing, capital markets, and real estate. Finally, when disclosing metrics, upstream data on supplier
performance and downstream data related to customer engagement in sustainable financing has been considered along
with assessments of Sustainability risks tied to both the upstream and downstream sectors.
1.2 Disclosures in relation to specific circumstances [BP-2].
Eurobank has adopted the following time-horizons as defined in ESRS 1 : 6.4 Definition of short-, medium - and long-term for
reporting purposes:
●
for the short-term time horizon: the period adopted by the undertaking as the reporting period in its financial
statements.
●
for the medium-term time horizon: from the end of the short-term reporting period defined above up to 5 years; and
●
for the long-term time horizon: more than 5 years.
1.3
Governance
1.3.1
The role of the administrative, management and supervisory bodies [ESRS 2 GOV -1]
Eurobank Holding’s / Eurobank’s Board of Directors (BoD) is comprised of 3 executive members, and 10 non-executive
members. The members of the Board of Directors and relevant Committees possess experience relevant to the sectors,
products and geographic locations of the undertaking:
Summary of Board Experience and Skills Matrix
Name
Position
Link to the Board of Directors CVs
Georgios Zanias
Chairperson, Non-Executive Director
Georgios Zanias CV
Fokion Karavias
Chief Executive Officer
Fokion Karavias CV
Kostas Vassiliou
Deputy Chief Executive Officer
Kostas Vassiliou CV
Stavros Ioannou
Deputy Chief Executive Officer
Stavros Ioannou CV
Bradley Paul Martin
Non-Executive Director
Bradley Paul Martin CV
Rajeev Kakar
Non-Executive Independent Director
Rajeev Kakar CV
Alice Gregoriadi
Non-Executive Independent Director
Alice Gregoriadi CV
Jawaid Mirza
Non-Executive Independent Director
Jawaid Mirza CV
Rena Rouvitha Panou
Non-Executive Independent Director
Rena Rouvitha Panou CV
Cinzia Basile
Non-Executive Independent Director
Cinzia Basile CV
Burkhard Eckes
Non-Executive Independent Director
Burkhard Eckes CV
John Arthur Hollows
Non-Executive Independent Director
John Arthur Hollows CV
Evan Kotsovinos
Non-Executive Independent Director
Evan Kotsovinos CV
For more information, please refer to Corporate Governance Statement .
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Board of Directors and Board Committees - Eurobank Holdings and Eurobank
Directors
Board of
Directors
Audit
Committee
Board Risk
Committee
Nomination
and
Corporate
Governance
Committee
Remuneration
Committee
Board Digital
and
Transformation
Committee
(1)
Gender
Nationality
Georgios
Zanias
Chairperson,
Non-
Executive
Director
Member
Male
Hellenic
Fokion
Karavias
Chief
Executive
Officer
Male
Hellenic
Kostas
Vassiliou
Deputy Chief
Executive
Officer
Male
Hellenic
Stavros
Ioannou
Deputy Chief
Executive
Officer
Member
Male
Hellenic
Bradley Paul
Martin
Non-
Executive
Director
Male
Canadian
Rajeev Kakar
Non-
Executive
Independent
Director
Member
Chairperson
Member
Male
Indian
Alice
Gregoriadi
Non-
Executive
Independent
Director
Member
Member
Chairperson
Female
Hellenic
Jawaid Mirza
Non-
Executive
Independent
Director
Vice
Chairperson
Member
Member
Male
Canadian
Rena Rouvitha
Panou
Non-
Executive
Independent
Director
Member
Chairperson
Member
Female
Cypriot
Cinzia Basile
Non-
Executive
Independent
Director
Member
Chairperson
Member
Female
Italian
Burkhard
Eckes
Non-Executive
Independent
Director
Chairperson
Member
Member
Male
German
John Arthur
Hollows
Non-Executive
Independent
Director
Vice
Chairperson
Member
Member
Male
British
Evan
Kotsovinos
Non-Executive
Independent
Director
Member
Member
Member
Male
Hellenic
Total Number
of Members
13
5
5
4
5
5
(1)
As presented above, Eurobank Holding’s Board is comprised of 3 female board members, and 10 male board members.
Female representation as mandated by the Greek Corporate Governance Law 4706/2020 is set at a minimum 25% of the
total board membership. In cases of a fraction, the percentage is rounded to the previous integer.
For a BoD comprising 13 members, this translates to 3.25, which, after rounding down, means at least 3 female members.
Currently, Eurobank is compliant with this requirement, as its Board includes 3 female members: Ms. Rena Rouvitha Panou,
Ms. Cinzia Basile, and Ms. Alice Gregoriadi.
Moreover, 62% of the total BoD members are independent. The executive BoD members are representing the employees of
the Group in the Board of Directors.
Sustainability Governance
Eurobank Group has established the Sustainability Management Committee (Sustainability ManCo - SMC). The purpose of
the Sustainability ManCo is to:
●
provide strategic direction on sustainability initiatives,
●
review and approve the Sustainability Strategy, Net Zero targets and transition plans,
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●
ensure that the elements of the Sustainability Strategy and the Net Zero commitments are integrated into the
Group’s business model & operations,
●
approve changes in eligible assets of Green Bond and Sustainable Finance Frameworks,
●
regularly measure and analyze the progress of the Sustainability Strategy goals and performance targets,
●
ensure the proper implementation of sustainability-related policies and procedures, in accordance with
supervisory requirements and voluntary commitments.
The Committee includes senior management roles such as the Deputy CEO, Group Chief Operating Officer (COO) &
International Activities (Chairperson), Deputy CEO, Head of Corporate & Investment Banking, Deputy CEO, Head of Retail &
Digital Banking, Group Chief Risk Officer, Group Senior Sustainability Officer, Group Chief Financial Officer, Group Chief HR
Officer and several other senior leaders from Legal Services, Strategy, Markets, International Activities, Compliance, and
Marketing & Corporate Communications Group units. The Group Senior Sustainability Officer (GSSO) plays a key role in
leading and coordinating the Group’s sustainability initiatives, reporting directly to the senior management and Board for
sustainability matters and the Group Sustainability Coordination Office serves as the Secretary of the Sustainability ManCo.
Sustainability ManCo’s responsibilities are clearly outlined in the Terms of Reference, which guide its work, including
approving and monitoring Sustainability Strategy, Net Zero commitments, targets, action and transition plans, as well as
Sustainability Frameworks (e.g. Green Bond Framework) and Policies, ensuring that sustainability-related projects and
initiatives align with Sustainability Strategy targets, objectives, Net Zero commitments and sustainability-related KPIs.
Sustainability at Eurobank is deployed across a Governance structure that addresses both regulatory requirements and
voluntary commitments. Board oversight, with respect to the Sustainability Strategy, is addressed through the inclusion of
sustainability items in the Board Meetings agenda, as per international best practice. The Group’s Governance structure is
introducing and defining the roles and responsibilities in relation to sustainability risks, embedding regulatory guidelines and
market practices.
Additionally, the Group applies the Three Lines of defense model, which clarifies the roles of each line in managing
sustainability risks. This model, through structured policies, further delineates duties across each line, ensuring that each body
and individual within the organisation has a defined responsibility for managing sustainability impacts, mitigating risks and
leveraging opportunities within their operational scope. The Sustainability Governance structure aims to further enhance the
effective oversight of sustainability matters at Management/Board level, through direct reporting lines. The GSSO as
represented in the chart, along with the Senior Risk Executive Officer, co-manages Group Sustainability Risk, which involves
coordinating sustainability efforts and ensuring the integration of sustainability principles across the organisation. The GSSO
plays a critical role in embedding sustainability into the Group’s strategic decision-making, ensuring that sustainability is
considered in policies and operational strategies.
Eurobank enhanced its sustainability Governance model and supported the roll out of its Sustainability Strategy and the
integration of sustainability risks.
Enhanced Governance Structure and Committees:
●
Oversight of sustainability risks at management body level through allocation of responsibilities to Board and
management committees. Specifically, Chairman of the SMC is the Deputy Chief Executive Officer, Group Chief
Operating Officer (Group COO) & International Activities.
●
A Board Member has been appointed as the overall responsible for climate-related and environmental risks.
●
Establishment of 2 Committees that supplement the governance arrangements on sustainability risk, i.e.
Sustainability Management Committee and Climate Risk Stress Test Committee.
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●
Appointment of Group Senior Sustainability Officer to lead the Group’s sustainability initiatives.
Integration of Sustainability Risk Management across the 3 lines:
●
Dedicated teams within the CIB and Retail Banking Units for overseeing sustainability and sustainable financing
activities.
●
Automated process established to assess and classify sustainable financing opportunities.
●
Group Sustainability Unit responsible for managing and coordinating sustainability strategy related issues, the
development of action plans for the Group’s Net Zero portfolio strategies, as well as monitoring sustainability
performance and coordinating sustainability-linked activities that enhance the Group’s Impact. In this context, the
Unit is responsible for facilitating the development of the Sustainability data framework to coordinate and prepare
external and internal sustainability-related reports.
●
Group Sustainability Risk responsible for managing and monitoring sustainability risks, acting as PMO office for
implementing the sustainability risks roadmap and monitoring the Sustainability Strategy, and preparing and
maintaining the Bank’s Sustainability risk management policies, processes and methodologies, in collaboration with
the Group Sustainability Unit, Business and Risk Units.
●
Intensive training on sustainability, sustainable finance and sustainability risk topics to Group personnel.
The roles and responsibilities of the key governance bodies / committees / units-functions are outlined below.
Supervisory bodies:
Eurobank Holdings / Eurobank Board of Directors (BoDs/Boards)
Eurobank Holdings / Eurobank Boards’ role is to offer entrepreneurial leadership to the Group in the context of prudent and
effective controls facilitating the assessment and management of risks. The Boards, establish the Group’s strategic
objectives, ensure the availability of essential financial and human resources for the Group to fulfil its purpose, and evaluate
management performance. The Boards define the Group’s values and standards, ensuring that its responsibilities to
shareholders and others are acknowledged and fulfilled. All members of the Boards are required to act in the best interests
of the Group, aligning with their legal duties. The Eurobank Holdings / Eurobank Boards have assigned an executive member
as the Board Member responsible for climate-related and environmental risks. As part of its duties, this member updates, at
least on a semi-annual basis, the Eurobank Holdings / Eurobank Board Risk Committees (BRC), which, in accordance with
their Terms of Reference, are responsible for overseeing (among others) the sustainability risks. As per international best
practices, effective Board oversight with respect to the Group’s Sustainability Strategy is also safeguarded through the
regular inclusion of Sustainability items in the agendas of Board Meetings.
Eurobank Holdings / Eurobank Board Risk Committee (BRC)
The Eurobank Holdings / Eurobank Board Risk Committee (BRC), among others, oversees the implementation of the strategies
for capital and liquidity management, as well as for all material risks of the Group, including sustainability risks, as identified
through the Risk Identification and Materiality Assessment (RIMA) process and listed in the relevant RIMA report, to assess
their adequacy against the approved risk appetite and strategy. In addition, the BRC determines, among others, the
principles which govern risk management (including sustainability risks) across the Group in terms of identifying, measuring,
monitoring, controlling and mitigating risks. To this end, the Committee approves risk principles, risk policies, risk procedures
and risk methodologies, and the Specific Risk Management Frameworks and policies (e.g. Sustainability Risk Management
Policy)
Audit Committee
In line with the stipulation of the
Law 5164 (Article 43),
responsibilities concerning the submission and assurance of the Sustainability Statement. The Audit Committee informs the
Board of Directors about the outcome of the statutory audit and the assurance of the sustainability statement. It explains
how these processes contributed to the integrity of the financial and sustainability information and clarifies the role of the
Audit Committee during this process
Management bodies:
Eurobank Management Risk Committee (MRC)
The Eurobank Management Risk Committee (MRC) is responsible for overseeing the risk management framework of
Eurobank. As part of its responsibilities, the MRC facilitates reporting to the BRC on a wide range of risk-related topics under
its purview, including sustainability risks. The MRC ensures that material risks are identified and promptly escalated to the
BRC and that the necessary policies and procedures are in place to prudently manage risk and to comply with regulatory
requirements.
Eurobank Sustainability Management Committee (Sustainability ManCo-SMC)
The Eurobank Sustainability ManCo provides strategic direction on sustainability initiatives, reviews the Sustainability
Strategy, Net Zero targets and transition plans prior to approval, ensures that the elements of the Sustainability Strategy
and the Net Zero commitments are integrated into the Group’s business model & operations, approves changes in eligible
assets of Green Bond and Sustainable Finance Frameworks, regularly measures and analyzes the progress of the
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Sustainability Strategy goals and performance targets and ensures the proper implementation of sustainability-related
policies and procedures, in accordance with supervisory requirements and voluntary commitments. It is chaired by the Board
Member responsible for climate -related and environmental risks.
Eurobank Climate Risk Stress Test Committee (CRSTC)
The Eurobank Climate Risk Stress Test Committee (CRSTC) is responsible for designing and executing the Group’s CRST
Programme, as well as for coordinating all activities relating to Climate Risk Stress Testing, including risk identification,
scenario design and stress test execution, and reviewing and challenging the output at each stage of the process prior to
escalating to the Executive Board.
Administrative bodies:
Group Senior Sustainability Officer (GSSO)
The Group Senior Sustainability Officer (GSSO) is responsible for leading and coordinating the Group’s sustainability
initiatives, for both Operational and Financed Impact. GSSO manages the Group Sustainability, co-manages, as a secondary
reporting line, along with the Senior Risk Executive Officer the Group Sustainability Risk, coordinates Sustainability Center
of Excellence of CIB and Retail and oversees the sustainability programs of international subsidiaries. The role of the GSSO
is to foster a deep understanding of sustainability principles and practices across the organisation by building a culture of
sustainability and collaborating together with senior management to embed sustainability into the Group’s strategic
decision-making processes. GSSO secures and allocates resources effectively to support the Group’s sustainability initiatives
and advocates for necessary investments in sustainability projects and technologies. GSSO serves as the liaison between
the Group and Market/External Stakeholders, closely monitoring industry trends, regulatory changes and best practices in
sustainability and ensuring that the Group remains at the forefront of sustainability innovation and compliance.
Group Sustainability Unit
The Group Sustainability Unit acts as a custodian of Sustainability Principles and Culture to enhance the Group’s Impact,
and as a cross-functional coordinator to ensure alignment on sustainability issues and interdependencies, as well as
compliance with relevant existing and upcoming regulations. Specifically, the Group Sustainability Unit is responsible for
managing and coordinating sustainability strategy related issues, ensuring alignment of subsidiaries' programs with the
Group's overall sustainability strategy and goals, supporting their implementation efforts. The Group Sustainability Unit
coordinates the development of action plans for the Group’s Net Zero portfolio strategies and ensures the aligned
development of corresponding plans for subsidiaries. It directs the actions of the Bank's units and subsidiaries on sustainable
financing matters and provides advisory support on broader sustainability issues. The Unit facilitates the development of the
Sustainability data framework and promotes sustainability knowledge and culture. Furthermore, it coordinates and prepares
external and internal sustainability-related reports in line with applicable standards/regulations, in cooperation with involved
subject-matter responsible Units, while it is responsible for the UNEP FI PRB implementation. Being responsible for the
oversight of the Bank’s overall sustainability performance, its key roles include the centralized management of Sustainability
Ratings, seeking continuous improvement in related scores. The Group Sustainability Unit also manages the ISO
Management Systems under the related provisions of equivalent policies and the Sustainability Strategy, supporting also
the development / maintenance of ISO Management Systems at Group level, where applicable. It collects, calculates and
reviews data, in line with the associated certified ISO Management Systems, while it also ensures implementation of
corresponding initiatives (e.g. operational net zero transition, energy self-production, energy and emission monitoring, green
building certifications, recycling and circular economy management).
Business Units
The Business Units – Corporate and Investment Banking, and Retail Banking – are primarily involved in executing all portfolio-
related sustainable activities, including the implementation of the Financed Impact Strategy. Key responsibilities are
classified, inter alia, under the following 3 main categories:
1.
Sustainability Strategy
●
Executing and monitoring financed and specific operational sustainable goals and performance targets in line
with the Net Zero Strategy.
2.
Sustainable Financing/Funding and Investments
●
Identifying sustainable financing opportunities and designing relevant solutions and sustainable products.
●
Performing the sustainable financing assessment, in line with the Sustainable Finance Framework.
●
Implementing and monitoring the Sustainable Investment and Green Bond Frameworks.
3.
Sustainability Risk Management
●
Performing the overall ESG Risk Assessment.
●
Identifying and implementing mitigation action plans for sustainability risks.
Eurobank has established dedicated functions, namely the Sustainability Center of Excellence (CoE), within the Business Units
(Corporate & Investment Banking and Retail Banking) which are responsible for assessing, managing and monitoring risk
levels in all risk categories, including Sustainability risks. The Head of CIB Sustainability CoE is responsible for overseeing
sustainable financing activities, while two Retail Banking Sustainability Coordinators (Business and Individual clients
respectively) are re sponsible for organising and supporting sustainable-related financing activities.
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Group Sustainability Risk (GSR)
The GSR has the overall responsibility for overseeing, monitoring and managing sustainability risks. More specifically, the
GSR prepares and maintains the Bank’s Sustainability risk management policies, processes and methodologies, in
collaboration with the Group Sustainability Unit and the Business and Risk Units. In addition, it leads the development and
implementation of the Sustainability risk-related framework, policies and processes, in coordination with other units, as well
as acts, monitors and reports the progress of the implementation of the developed Climate Risk action plan and reports to
the Board for Sustainability risks matters. The GSR monitors and challenges involved stakeholders as to setting the Financed
Impact Strategy (including Net Zero targets), as well as monitors the Financed Impact Strategy (including Net Zero) and
reports financial targets and KPIs. The GSR also leads the 2nd line independent sustainable lending re-assessment process
against the Sustainable Finance criteria, including the characterization of products of the Retail Portfolio as sustainable.
Reviews and confirms the ESG Risk Assessment and challenges the mitigating actions (as per pre-determined thresholds).
Furthermore, the GSR develops and maintains the Climate Risk Stress Testing Framework, as well as the Scenario Analysis
and Stress Testing methodologies, and coordinates the performance of sustainability risk scenario analysis and relevant
stress test exercises at Group level.
Group Compliance
Group Compliance’s key roles and responsibilities include:
1.
Regulatory compliance
●
Monitors the regulatory environment and emerging trends around sustainable financing and suggests the
Group of the respective changes/enhancements to the relevant policies and documents regarding sustainable
financing offerings.
●
Issues a regulatory bulletin, which includes regulatory developments and their impact on the Bank’s operation.
●
Monitors the alignment of the Group’s activities with applicable laws, rules, regulations and standards,
including sustainable finance regulatory aspects.
2.
Compliance risk assessment
●
Designs appropriate risk assessment methodologies for compliance risk.
●
Establishes a monitoring programme for the relevant activities within its area of responsibility.
●
Assesses conduct risk in relation to sustainability financing.
3.
Policy updates
●
Maintains the Bank’s conduct-related policies, including their sustainability components.
4.
Product offering monitoring
●
Provides advice and recommends controls over the Bank’s sustainability product offerings, while it also checks
that promotional statements do not misrepresent products or services offered to customers, through its
participation in the Products and Services Committee and related processes.
Group Internal Audit (Group IA)
The role of the 3rd line within Eurobank’s governance and organisational structure is allocated to the Group IA, for the
independent review of the adequacy and effectiveness of the internal control system. The Group IA mandate covers all
processes, risks and mechanisms, for all business lines and internal units. In recent years, the Group IA has recognised
sustainability internal controls and the risk management framework as areas of focus and has taken several initiatives and
actions within its strategy. These aim to ensure adequate coverage of the area, in line with the Bank’s strategy, as well as
industry and regulatory developments.
Specifically, the Group IA strategically focuses on the Sustainability risks, building on the following pillars:
●
Methodology/ Infrastructure
a separate auditable area, subject to risk assessment. Furthermore, climate-related and environmental risk is
recognised as a separate risk category, assessed in all relevant areas of the audit universe, in line with the Bank’s
risk taxonomy. This category will be extended to cover the entire spectrum of sustainability risks, in line with
respective developments in the Bank’s risk definitions.
●
Resources
sustainability, with two staff members certified in Sustainability/ESG and Climate Risk through different professional
bodies to diversify relevant expertise and with additional auditors planned to pursue relevant industry-recognised
professional body certifications in the future. This comes simultaneously with other initiatives in place, aimed at
further upskilling through dedicated training sessions, on-the-job upskilling (participation in and consultation on the
Bank’s projects and initiatives around sustainability) and increased awareness (e.g. Group IA ESG Focus Group
focused at sharing knowledge on sustainable practices and regulatory initiatives). At this stage, the Group IA has
opted to embed the right mix of skills and knowledge within its existing organisational structure, given the
multifaceted nature of sustainability risks, affecting all businesses and operations of the Bank, to a siloed approach,
aiming at a holistic consideration of the Bank’s sustainability risks.
●
Sustainability
/ Audit Universe Coverage and Audit Planning
since 2021, the Group IA has been carrying out several assignments around sustainability, along with monitoring the
Bank’s initiatives in this area on a risk-based approach. Key areas of focus include risk materiality, governance and
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strategy,
Sustainability risk management framework, product design and offering, reporting disclosures, etc. These
initiatives come in addition to the existing coverage by Group IA in sustainability areas, such as consideration of
AML-perspectives in loan origination (governance -social financing practices), review of compliance with the code of
conduct or market practice codes (governance operational and financing practices) and relevant non-recurring and
forensic audit work.
For more information regarding the responsibilities for impacts, risks and opportunities of the administrative, management
and supervisory bodies, please refer to: “1.3.2 Information provided to and sustainability matters addressed by the
undertaking's administrative, management and supervisory bodies [GOV-2]” and 1.5.1 Description of the processes to identify
and assess material impacts, risks and opportunities [IRO-1].
Alignment of the Remuneration Policy with the Group’s sustainability risks objectives
The Group has established a Remuneration Policy that is applicable to all Group employees and covers their total
remuneration. The Remuneration Policy forms an integral part of the Group’s corporate governance practice. It is developed
in accordance with its operational model, business strategy, objectives and long-term interests and incorporates measures
to avoid conflict of interest. The Remuneration Policy promotes sound and effective risk management. It is consistent with
the objectives of the Group’s business and risk strategy, corporate culture and values, risk culture, with regard to sustainability
risk factors, including long-term interests of the Group and the measures used to avoid conflicts of interest, while it should
not encourage excessive risk-taking on behalf of the Group. It also ensures that remuneration practices are aligned with the
overall risk appetite, taking into account all risks. Moreover it includes sustainability risks, reputational risks, as well as risks
resulting from the mis-selling of products. More specifically, the Remuneration Policy has been designed to:
●
Be consistent with and to promote sound and effective risk management.
●
Stimulate behaviours consistent with sustainability risks approach.
●
Comply with the Group’s voluntary commitments.
Its basic principles are to:
●
Be gender neutral and non-discriminatory in any aspect of its implementation.
●
Safeguard that remuneration is sufficient to retain and attract executives with appropriate skill and experience.
●
Monitor that internal equity between all Units is applied.
●
Avoid excessive risk-taking, even in the case of direct or indirect sustainability risks.
●
Link remuneration with long-term performance.
The Group’s sustainability-linked remuneration integrates the achievement of components / targets of the Group’s
Sustainability Strategy, Operational and Financed impact, to incentivise management and employees to contribute towards
their achievement.
Operating model
The Group has identified, assessed and implements relevant action plans addressing sustainability risks within the 3 lines.
Integration of Sustainability Risk Management across the 3 lines
The Group’s Sustainability Governance structure introduces and defines specific roles & responsibilities in order to support
the roll-out of the Sustainability Strategy and the integration of the sustainability risks, through the involvement of various
key stakeholders (e.g. Business & Risk Units, Committees etc.) across the three Lines of defense, embedding regulatory
guidelines and market practices, as follows:
1st Line:
Dedicated functions, namely the Sustainability Centers of Excellence (CoE), within the Business Units (Corporate & Investment
Banking and Retail Banking) are responsible for assessing, managing and monitoring risk levels in all risk categories, including
Sustainability risks. The Head of CIB Sustainability CoE is responsible for overseeing sustainable financing activities, while
two Retail Banking Sustainability Coordinators (Business and Individual clients respectively) are responsible for organising
and supporting sustainable -related financing activities. In addition, the role of the Group Sustainability Unit in the 1st Line
includes the responsibility for managing and coordinating sustainability strategy related issues, the development of action
plans for the Group's Net Zero portfolio strategies, the facilitation of the Sustainability data framework development, as well
as Sustainability Reporting, Environmental & Energy Reporting (EMAS Report, Greenhouse Gases Emissions Report per ISO
14064) and Sustainability ratings. The 1st Line, in coordination with other Units, execute and monitor financed, and specific
operational sustainable goals and performance targets based on the Group’s Sustainability Strategy and in line with the
Net Zero Strategy.
2nd Line:
Group Risk Management (GRM) is independent from the Business Units and has full responsibility in setting the Risk Strategy
and Risk Appetite Framework, including Sustainability risks. Within GRM, the dedicated GSR has the overall responsibility for
overseeing, monitoring and managing Sustainability risks in cooperation with the other GRM Units, as well as with Group
Compliance.
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3rd Line:
The Group Internal Audit (Group IA) independently reviews the adequacy and effectiveness of the internal control framework
in place regarding Sustainability risk management, following a risk-based approach in line with its Annual Risk Assessment
and Audit Planning Methodology.
ESG awareness and capacity building
Eurobank places a great emphasis on building capacity among its employees, so they are able to support its clients on their
sustainability journey and their green transition. To this end, in addition to launching sustainability initiatives for its clients,
Eurobank implements an ESG upskilling plan for its employees. Eurobank’s ESG awareness program regarding sustainability
matters, is directed to all of the Group's personnel - employees and management. Additionally, the Group has offered
training to stakeholders from all 3 lines (i.e. business units, risk management units, Group IA) regarding the SFF, to enhance
their understanding. Finally, the Group conducts training sessions/seminars tailored to its supervisory and management
bodies, tailored to their specific areas of interes t/expertise.
Specifically, the following awareness programmes are in place:
Employee ESG awareness training modules
Since 2022, the Group has launched “ESG Thinking”, an ESG awareness programme for employees, consisting of the following
modules:
●
Module 1
importance of ESG within an organisation described through business cases.
●
Module 2
landscape. The ways in which the Bank engages with sustainability through frameworks, initiatives and products.
●
Module 3
– ESG and Me: Content aiming to cultivate an open and growth mindset when dealing with sustainability
issues by motivating employees to take personal action through practical steps personally and professionally.
Target setting
The Board of Directors, Board Committees, Management Committees and functions oversee the setting of targets related
to material impacts, risks, and opportunities through a combination of strategic review, decision-making, and continuous
monitoring.
The Sustainability Management Committee (Sustainability ManCo - SMC) plays a central role in this process by reviewing
the Sustainability Strategy, providing strategic direction on sustainability initiatives, reviewing and approving the Net Zero
targets and transition plans, integrating the elements of the Sustainability Strategy and the Net Zero commitments, into the
Group’s business model & operations, while also ensuring that stakeholder interests and expectations are met. It also
approves changes in eligible assets of Green Bond and Sustainable Finance Frameworks, regularly measures and analyses
the progress of the Sustainability Strategy goals and performance targets, ensure the proper implementation of
Sustainability-related policies and procedures, in accordance with supervisory requirements and voluntary commitments. The
Committee further approves Sustainability-related reports, including the Sustainability Statement and Green Bond Report,
among others. Additionally, the Sustainability ManCo reviews and endorses Sustainability-related KPIs linked to variable
remuneration and incentive schemes, prior to submission to the Incentive Plan Committee. Through this oversight, the
Sustainability ManCo ensures the continuous improvement and alignment of Sustainability-related ISO Management
Systems, including ISO standards in the environmental and energy domains, ensuring their ongoing suitability, adequacy,
and effectiveness.
Sustainability-related expertise
The Board of Directors, Board Committees, Management Committees, functions and involved units possess a collective set
of skills and expertise that are crucial for overseeing sustainability matters. At the Board level, Sustainability Management
Committee (Sustainability ManCo - SMC) and senior management, expertise in sustainability is represented through a
structured approach that integrates both in-house knowledge and external expertise. The SMC provides strategic direction
on Sustainability -related initiatives, aligning them with the Group’s broader transformation plan. The members of the SMC,
including senior roles like the Deputy CEO, Group Chief Operating Officer (COO) & International Activities, Chief Risk Officer
(CRO), and Group Senior Sustainability Officer (GSSO), are responsible for ensuring that Sustainability issues are fully
incorporated into the operations and decision-making processes across the organisation. Furthermore, the SMC reviews and
approves sustainability training and awareness initiatives. Moreover the BoD ensures that key individuals across the Group
are equipped with necessary expertise as it has the oversight over training and awareness initiatives as evidenced by its role.
This structure ensures that expertise is both possessed internally and is accessible externally, empowering the Group to
manage sustainability challenges effectively.
The skills and expertise present within the Board of Directors, Board Committees, Management Committees, units and
functions are directly aligned with the undertaking's material impacts, risks, and opportunities. For instance, the Sustainability
ManCo is tasked with overseeing the integration of sustainability goals, including Net Zero Strategy and Sustainable
Financing activities, into the Group’s broader strategic objectives. The expertise of senior executives such as the Deputy CEO,
Group COO and International Activities, CRO and GSSO ensures that Sustainability considerations are embedded into the
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Group’s daily operations, enabling them to address and manage the material risks and opportunities tied to sustainability.
The Business Units (Corporate & Investment Banking, Retail Banking) are actively engaged in managing sustainability risks
as part of their operations, with specific responsibilities assigned through the Group Sustainability Unit, responsible to
manage and coordinate sustainability strategy related issues. Through the structure, these bodies ensure that sustainability
risks are appropriately assessed, monitored, and mitigated at every level, from operational to strategic decision-making.
A sustainability awareness training was conducted for the Board of Directors, enhancing the understanding of CSRD
Reporting requirements, including Double Materiality Assessment, EU Taxonomy, and disclosure requirements among others.
Through their participation in this training, the Board of Directors developed a comprehensive understanding of the CSRD
requirements and learned how to consider these in the company’s strategic planning and long-term growth objectives
effectively
1.3.2
Information provided to and sustainability matters addressed by the undertaking's administrative, management
and supervisory bodies [GOV-2]
The Sustainability Management Committee (SMC) is regularly informed about material impacts, risks, and opportunities
through multiple reporting channels. Specifically, the SMC meets quarterly and/or on an ad hoc basis, when necessary, to
review and provide strategic direction on sustainability-related issues, including material risks and opportunities. The
Committee reviews and monitors sustainability strategies, action plans, KPIs and progress towards sustainability goals to
ensure they align with the Group’s objectives. The SMC also reviews reports on sustainability issues, risk management
processes, and performance metrics, ensuring that decisions are aligned with sustainability goals.
Impacts, Risks and Opportunities consideration
The SMC carefully considers impacts, risks and opportunities when overseeing the Group’s strategy. The SMC plays a critical
role in providing strategic direction on sustainability matters, ensuring the Sustainability Strategy aligns with the Group’s
overall Transformation Plan. The Committee is involved in the approval of action plans, project monitoring, and reviewing
Sustainability-related policies and frameworks. Policies affecting internal stakeholders are available to the Eurobank’s
intranet, while those referring to external stakeholders, such as the Group's Code of Conduct and Ethics, are available through
corporate site. Overall the Group ensures there is a high level of accountability in Policy development and implementation.
Policies are approved by the appropriate Governance bodies such as the Board of Directors or specialized committees, which
ensure that there is alignment with the Group's strategic goals and stakeholder interests.
Additionally, sustainability risks are assessed regularly, ensuring that sustainability factors are embedded in the Group’s
strategic decisions, including sustainability targets, major investments, and the overall risk management framework.
The Board Risk Committee plays a crucial role in ensuring that the Group Risk Strategy and Risk Appetite Framework inform
the business plan and decision -making, thus aligning risk management processes with the Group's broader objectives and
actions. The Committee considers trade-offs associated with material sustainability matters, for example by incorporating
sustainability-related risks and opportunities within the existing risk management frameworks. This ensures that
sustainability considerations are evaluated alongside financial and operational risks.
During the reporting period, the Board of Directors, Board Committees, Management Committees and functions, through
the SMC, addressed several material impacts, risks, and opportunities. Through the Double Materiality Assessment (DMA)
exercise, the SMC reviewed the Impacts, Risks, and Opportunities (IROs) that were identified as material for the Group. These
IROs were assessed based on both impact and financial materiality to ensure comprehensive consideration.
For a detailed list of the Impacts, Risks, and Opportunities (IROs) approved by the SMC, please refer to the respective section
of the Sustainability Statement, which outlines these material issues in further detail.
For more information regarding the due diligence process please refer to: 1.5.1 Description of the processes to identify and
assess material impacts, risks and opportunities [IRO-1]
1.3.3
Integration of sustainability-related performance in incentive schemes [GOV-3]
The Group has established a Remuneration Policy that is applicable to all Group employees and covers their total
remuneration. The Remuneration Policy forms an integral part of the corporate governance practice and is developed in
accordance with its operational model, business strategy, objectives, long-term interests of the Group and incorporates
measures to avoid conflict of interest.
The Remuneration Policy promotes sound and effective risk management and is consistent with the objectives of the Group’s
business and risk strategy, corporate culture, values and risk culture. It also considers sustainability risk factors, as well as the
long-term interests of the Group. Additionally, it includes measures to avoid conflicts of interest and should not encourage
excessive risk-taking on behalf of the Group. The Group ensures that remuneration practices are aligned with their overall
risk appetite, taking into account all risks, including sustainability risks, reputational risks, as well as risks resulting from the
mis-selling of products or services.
In addition, the Remuneration Policy has been enhanced with the establishment of Variable Remuneration Framework, Key
Performance Indicators (to balance employees’ performance and encourage proper conduct) and Key Risk Indicators (to
promote sound and effective risk management including sustainability risks) at Group/ Unit/ Individual level, as appropriate.
The Variable Remuneration Framework aims at providing (i) an appropriate balance of variable remuneration elements,
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aligning the interests of employees, shareholders and other stakeholders, strengthening the Group’s position as a leading
European bank and (ii) effective remuneration practices in compliance with the applicable regulatory environment. In this
context, Key Risk Indicators are set at Group level, whereas Eurobank underscores the significance of introducing more Key
Risk Indicators linked to sustainability risks in the following years.
More specifically, the Remuneration Policy has been designed to (a) be consistent with and to promote sound and effective
risk management, (b) stimulate behaviours consistent with sustainability risks approach, as well as (c) comply with Group’s
voluntary commitments. Its basic principles are to (a) be gender neutral and non-discriminatory in any aspect of its
implementation, (b) safeguard that remuneration is sufficient to retain and attract executives with appropriate skill and
experience, (c) monitor that internal equity between all Units is applied, (d) avoid excessive risk-taking with respect to direct
or indirect sustainability risks and (e) link remuneration with long-term performance.
The Group’s sustainability-linked remuneration integrates the achievement of components / targets of the Group’s
Sustainability Strategy, Operational and Financed impact, to incentivise management and employees to contribute towards
their achievement.
The Remuneration Committee approves any incentive scheme both at Bank and Group level, while the Non-Executive
Members of the BoD approve and periodically review the Remuneration Policy and are responsible for overseeing its
implementation.
For the time being, the remuneration of members of the administrative, management and supervisory bodies is not assessed
against GHG emission reduction targets, and thus no percentage of this year’s remuneration is linked with the achievement
of sustainability targets.
1.3.4
Description of the due diligence on sustainability matters [GOV-4]
The following table shows how and where the application of the main aspects and steps of the due diligence process are
reflected in Eurobank Holding’s Sustainability Statement:
Core elements of due diligence
Paragraphs in the Sustainability
Statement
Description
a) Embedding due diligence in
governance, strategy and business
model
2.5.1 Sustainable financing and investment
offerings
2.4.3 Policies related to the integration of
sustainability in risk management [MDR-P]
2.2.1 Integration of sustainability-related
performance in incentive schemes [ESRS 2
GOV-3]
The Group integrates sustainability into
its governance and strategy through
frameworks like the Climate Risk
Scorecard and Sustainable Finance
Framework, ensuring these principles
guide decision-making.
b) Engaging with affected
stakeholders in all key steps of the
due diligence
1.4.3 Stakeholder interest and engagement
[SBM-2]
1.4.4 Material impacts, risks and
opportunities and their interaction with
strategy and business model [SBM-3]
2.4.3 Policies related to the integration of
sustainability in risk management [MDR-P]
The Group engages stakeholders to
align business practices with
expectations, informing its materiality
assessment and relative policies.
c) Identifying and assessing adverse
impacts
2.4.3 Policies related to the integration of
sustainability in risk management [MDR-P]
2.5.1 Sustainable financing and investment
offerings
The Group conducted a DMA to
identify and assess adverse impacts,
focusing on both potential and actual
effects on people and the environment.
In addition, Eurobank uses the RIMA
process and ESG Risk Assessment to
evaluate risks, applying enhanced due
diligence for high-risk clients.
d) Taking actions to address those
adverse impacts
2.5.1 Sustainable financing and investment
offerings
The Group implements action plans for
workforce impacts and supports
financial inclusion through various
initiatives.
e) Tracking the effectiveness of
these efforts and communicating
2.4.1. Integration of Sustainability in risk
management
2.5.1 Sustainable financing and investment
offerings
The Group ensures transparency
through risk management and internal
controls
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1.3.5
Risk management and internal controls over sustainability reporting [GOV -5]
The Group’s risk management and internal control system concerning Sustainability Statement reporting covers the
accuracy, completeness, and integrity of the data related to Sustainability Statement reporting. It includes dry run exercises,
quality checks, workshops with relevant stakeholders, and assumptions made when direct data could not be obtained from
value chain stakeholders to ensure the accuracy and integrity of the data. To further enhance this process, the Group has
developed a comprehensive Sustainability Statement reporting process, aligning with the Corporate Sustainability
Reporting Directive (CSRD) requirements effective from fiscal year 2024. This document establishes a unified framework for
data collection, quality assurance, and reporting across all subsidiaries, ensuring transparency and compliance.
In addition, the relevant departments responsible for providing qualitative information are responsible for supplying accurate
qualitative information, by examining the provided data to ensure consistency and completeness. The reporting process
outlines clear roles and responsibilities for data and content owners and reviewers. This process aims to reinforce
accountability within the Group and foster a culture of continuous improvement, thereby upholding Group’s enduring
commitment to environmental, social, and governance (ESG) excellence.
Eurobank adopted a risk assessment approach that incorporates regular evaluations of data completeness, accuracy, and
integrity. To prioritise risks, we utilise a risk-based approach, considering the potential impact on the Sustainability
Statement reporting process. The CSRD Operating Committee oversees this process, ensuring alignment with CSRD
standards and supporting continuous improvement.
The main risks identified within the risk assessment performed are data gaps from value chain stakeholders, accuracy of
estimations, and timing of data availability. To mitigate these, Eurobank conducted dry run exercises, quality checks,
workshops with stakeholders, and made necessary assumptions to fill data gaps. Eurobank also conducted regular reviews
to ensure the coordination of data collection, consolidation, and verification to maintain high standards of quality and
compliance.
The outcomes of the risk assessment and internal controls throughout the Sustainability Statement reporting process are
integrated into relevant internal functions and procedures with regular updates provided to the Group Senior Sustainability
Officer and, if necessary, to relevant Committees.
1.4
Strategy - Company, business model and stakeholder engagement
1.4.1
Information on the market position and strategy of the company [SBM-1]
The Group offers a broad range of financial products and services, including corporate and investment banking, retail
banking (personal banking, business and individual banking), wealth management, leasing, factoring, and specialized
solutions such as shipping finance and syndicated debt solutions. In the reporting period, the Group has expanded its digital
transformation efforts, offering services like digital banking solutions. Moreover, the Group has increased its focus on
financing green projects and promoting ESG (Environmental, Social, and Governance) criteria in its products, such as
sustainability-linked loans, bridge financing programs for energy efficiency projects, financing for renewable energy projects
and other activities with positive environmental and social impact. Eurobank serves a wide range of customer groups,
including large corporate clients, institutional investors, personal banking clients, SMEs, and public-sector entities.
Geographically, the Group is primarily active in Greece, Cyprus, Bulgaria and Luxembourg. Furthermore, it has made strides
in expanding its green financing services to support the transition toward sustainable business practices.
Eurobank’s sustainability-related goals include financing the transition to sustainable energy, enhancing the environmental
impact of its clients, and investing in technologies that reduce carbon footprints. These goals will be further enhanced through
the Group’s Net Zero Commitment to the Net Zero Banking Alliance (NZBA). In addition, these goals are embedded in the
Group’s core strategy, and a significant portion of its portfolio focuses on renewable energy projects, energy-efficient
technologies, and sustainability-linked financing. Eurobank’s commitment to sustainable finance also includes driving growth
in digital services, which help reduce environmental impacts and promote green practices, aligning with the Group’s broader
sustainability objectives.
Geographical area:
Headcount:
Bulgaria
3,859
Cyprus
2,768
Greece
6,058
Luxemburg
130
Sustainability Strategy
Eurobank supports the transition towards a sustainable economy and considers sustainability and climate change as an
opportunity. A key strategic objective is to adapt the business and operation in a way that addresses climate change
challenges, accommodates social needs within its business model and safeguards prudent governance for itself and its
counterparties, in accordance with supervisory initiatives, and following international standards and best practice. To this
end, Eurobank has designed, approved and is currently implementing its Sustainability Strategy, including targets and
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commitments, along two key pillars:
Operational Impact Strategy (OIS)
Financed Impact Strategy (FIS)
, both of which
aim to address sustainability matters within the context of the Group’s business model and operations.
1.
Operational Impact Strategy (OIS):
The
Operational Impact Strategy
activities are sustainable, and aligning its operations with climate and sustainability goals. The key elements of this strategy
are:
●
Environmental Impact
: Minimising negative impact of Eurobank's operations, to promote environmental
stewardship with a clear goal of achieving climate neutrality.
●
Societal Impact
: Providing a diverse and inclusive environment for Eurobank’s people and clients, while fostering
sustainable development and prosperity for the benefit of society.
●
Governance & Business Impact
: Focusing on building sustainability awareness, internally and across its value chain,
while intensifying Eurobank's efforts for ethics and transparency.
The OIS is supported by a governance structure of multiple project streams (one per each commitment) and the supervisory
ESG/OIS Committee. Progress is regularly reviewed at the Sustainability Management Committee. Each project stream is
planned with milestones, KPIs, annual targets and long-term interim targets, serving the declared commitments, spanning
over the next decade. Links are established with Transformation streams as well as corresponding ISO Management System
standards, to ensure substantiation and certification of activities, validate target setting and measured performance, and
systematically monitor progress through internal reviews and external assurance.
2.
Financed Impact Strategy:
The
Financed Impact Strategy
of its financing activities, with a commitment to sustainability and responsible stewardship. To achieve this objective, the
Financed Impact Strategy is structured around the following 4 strategic pillars:
●
Client Engagement and Awareness
: Helping clients transition to more sustainable business models by raising
awareness of climate change challenges and opportunities.
●
Supporting Clients in Transition
: Facilitating the transition of clients towards sustainable practices by offering
financing solutions, that are guided by the financing approaches and the eligible activities of the Sustainable
Finance Framework. goals and ambitions.
●
Enablers and Tools for Sustainable Financing
: Providing frameworks, tools, and products to underpin sustainable
financing
●
Assessment and Management of sustainability-Related Risks
: Identifying and managing the sustainability-related
risks within its loan and investment portfolios, including assessing exposure to transition and physical risks linked to
climate change.
The Financed Impact Strategy supports Eurobank's commitment to
sustainable financing
financial activities align with sustainability goals, such as reducing the carbon footprint of financed projects.
Main Challenges Ahead:
Both strategies face several challenges:
●
Operational Transition
: The need of transition to climate neutrality in Eurobank’s own operations while managing
the associated costs and risks. This involves transforming internal processes and aligning with evolving applicable
regulatory requirements and voluntary initiatives as well as adopted standards and guidelines enabling Eurobank’s
contemporary and continuously updated approach towards Sustainability, in line with international best practice.
●
Client Transition
: Assisting clients in adapting their business models to meet sustainability and climate change
objectives. This may involve addressing different levels of maturity, overcoming resistance to change, and navigating
and aligning to complex regulatory requirements.
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●
Sustainability-related Risks
: Managing both
transition risks
and
physical risks
operations and the sectors in which it invests or lends to is dependent on data availability and commitment of
involved counterparties and stakeholders
●
Alignment with Global Standards
: Ensuring full compliance with global sustainability standards, climate-related
financial disclosures (such as
TCFD
), and managing the increasing demand for transparency in sustainability
reporting.
To overcome these challenges, Eurobank has implemented a series of strategic initiatives:
●
Operational Impact Strategy (OIS) key components
:
o
Operational efficiency
: Focus on energy efficiency, reducing carbon emissions, towards the commitment to
achieve Net Zero in its operations for Scope 1 & 2 by 2033 and Scope 3 by 2050. Promotion of environmental
stewardship by accelerating also transition towards a paperless banking network and preservation of
natural resources, as well as extending circular economy practices. Accommodation of social needs within
its business model and safeguarding prudent governance for itself and its counterparties, in accordance
with supervisory initiatives, and following international standards and best practice.
o
The OIS is supported by a governance structure of project streams per each commitment and the
supervisory ESG/OIS Committee. Regular review of progress via milestones and KPIs to ensure annual and
long-term sustainability goals related to Environmental, Societal, and Governance & Business Impact are
met. Progress is regularly reviewed at the Sustainability Management Committee.
●
Financed Impact Strategy (FIS) key components
:
o
Sustainable Financing:
clients through sustainable financing.
o
Portfolio alignment:
Gradual alignment of the Group’s portfolio with sectoral transition pathways that are
aligned with the 1.5°C climate transition scenario.
o
Net zero strategy:
target-setting up to 2050.
In line with its commitment to address climate change, the Group has joined the Net-Zero Banking Alliance (NZBA), a bank-
led, UN-convened alliance of banks worldwide, reinforcing its dedication to aligning its lending and investment portfolios
with net-zero emissions by 2050 or sooner, in line with the most ambitious targets set by the Paris Climate Agreement.
The Group has started developing sectoral, financed emissions reduction targets based on the NZBA framework, for some
of the most carbon-intensive and, therefore, most relevant and impactful sectors and portfolios. The Group applies
established industry standards (e.g. NZBA, PCAF) and accredited science-based decarbonisation scenarios, in line with a 1.5-
degree Celsius objective by 2050.
1.4.2
Description of business model and value chain [42a-42c]
Upstream value chain
In mapping the upstream value chain, Eurobank has identified the key activities and actors involved in supporting its
operations. The upstream value chain includes suppliers and stakeholders that provide critical inputs—both non-financial
(e.g. supply of goods and services) and financial—necessary for Eurobank’s operations to function effectively. Given the
complexity of Eurobank’s operations, Eurobank focuses on direct (Tier 1) suppliers for the upstream side of its value chain.
These suppliers are identified as having the most direct impact on the Eurobank’s operations, providing capital, critical goods
and services such as IT, real estate management, energy, and shaping the surrounding legal, regulatory and voluntary
framework.
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Key Activities and Actors in the upstream Value Chain:
●
Supply of Goods and Services
- The upstream value chain for Eurobank consists of a range of suppliers providing
critical goods and services. These include suppliers of IT hardware and software, office equipment, paper, and
consulting services.
●
Supply of Capital
- Eurobank is also reliant on upstream capital providers to maintain financial liquidity and fund
its operations. This involves key activities such as deposit gathering, bond issuance, capital market transactions, and
other investor -related activities.
●
Regulatory and Voluntary Frameworks
-The development of regulatory and voluntary frameworks is a critical
component of Eurobank’s upstream value chain. Regulatory bodies such as the European Central Bank (ECB), the
European Banking Authority (EBA) and the Single Resolution Board (SRB) provide the regulatory frameworks within
which Eurobank operates.
Downstream value chain
Eurobank in entities downstream from the reporting organisation, has included categories such as customers, receive or
utilise the Eurobank’s products and services. Eurobank has established the boundary of its downstream value chain to include
corporate and retail clients, but it does not extend to the clients of those clients.
Key Activities and Actors in the downstream Value Chain:
●
Provision of Financing to Clients -
Eurobank provides loans to both corporate and retail clients, funding a range of
business activities. This includes supporting operational needs and facilitating growth for small and large
corporations while offering financial solutions for individual customers.
●
Capital Markets Activities
-
Eurobank provides services related to investment banking, instruments trading, mutual
fund products, institutional asset management, private banking and other financial advisory services. Eurobank
participates in market-making and advisory roles for corporations, financial institutions, and governments,
promoting sustainable investments.
●
Real Estate
-
In addition to financing, Eurobank engages in construction, real estate properties operation (including
those properties held for the purpose of leasing) and other real estate services.
Eurobank's Position in the Value Chain:
Eurobank is positioned as a central player in the financial services value chain, connecting a diverse set of upstream suppliers
with downstream customers. Specifically, key activities in its own operations include Banking activities, Global Markets &
Asset Management, Investment Property & Real Estate Management. Its role spans from sourcing capital and operational
inputs to providing key financial services and products to both corporate and retail clients. By fostering sustainability in its
operations, especially in sustainable financing, Eurobank is positioning itself as a leader in promoting sustainable business
practices within the banking sector.
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1.4.3
Stakeholder interest and engagement [SBM-2]
The Group has developed a robust
Stakeholder Engagement Plan
aligns with
European Sustainability Reporting Standards (ESRS)
, which emphasise the importance of gathering diverse
stakeholder perspectives to identify impacts, risks, and opportunities (IROs) and align business practices with stakeholder
expectations and sustainability objectives.
For the identification and mapping of its stakeholders, the Group, established a systematic and dynamic process in the
context of the double materiality assessment which involved the following:
Stakeholder Engagement Disclosure
1.
Key Stakeholders
Eurobank has identified and classified stakeholders into three main groups to ensure effective engagement across
various perspectives:
o
Primary/Affected Stakeholders
: Directly impacted by Eurobank’s operations.
o
Secondary Stakeholders
: Indirectly affected but influential in shaping Eurobank’s policies and operations.
o
ESG Experts
: Internal and external ESG experts who own the due diligence and stakeholder engagement
process for materiality assessment.
Key stakeholder groups include:
o
Internal Stakeholders
: Board of Directors, Senior Management, and Employees.
o
External Stakeholders
: Customers and Clients, Business Community, Civil Society, Suppliers and Partners,
Investors and Shareholders, as well as Government and Regulators.
2.
Engagement with Stakeholders
Eurobank engages with both
internal and external stakeholders
materiality assessments. For impact materiality, stakeholders from the Group are engaged to understand the
sustainability impacts across various entities and geographic locations.
3.
Organisation of Stakeholder Engagement
Engagement is organised systematically through a variety of methods and classified into
Internal
External
Stakeholder Groups
:
o
Identification and Classification
: Stakeholders are identified and categorized based on ESRS guidelines,
which include both “affected stakeholders” and “users of the Sustainability Statement.”
o
Engagement Methods
: Eurobank employs electronic questionnaires and focus groups to gather feedback
from stakeholders. For impact materiality, online questionnaires are the primary engagement method, while
focus groups are used for financial materiality to assess sustainability-related risks and opportunities.
o
Segmentation by Business Areas
: Engagement activities span across Eurobank’s business segments to
ensure the inclusion of diverse perspectives from each operational area.
4.
Purpose of Engagement
The purpose of Eurobank’s stakeholder engagement is to establish open communication channels with stakeholders
to understand their needs and concerns and integrate them into the Group’s Sustainability Strategy.
Key priorities
o
protection of their personal data,
o
leveraging new technologies to enhance service,
o
ensuring access to financial services,
o
respect for human rights and the environment, and
o
upholding corporate culture and governance values along with adequate risk management practices.
5.
Consideration of Engagement Outcomes
Eurobank integrates the feedback from stakeholders into its decision-making processes to ensure that the identified
impacts, risks, and opportunities are accurately reflected in Group’s Sustainability Strategy. Key outcomes are
validated by the Sustainability Management Committee to ensure alignment with ESRS standards and effective
incorporation into Eurobank’s risk management and sustainability frameworks.
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Furthermore, Eurobank promotes two-way communication and develops ongoing dialogue with internal and external
stakeholders, to be able to actively meet the expectations, concerns and issues raised by all its stakeholders. Further
information and the means of communication are presented in the table below:
Stakeholder group
Cooperation framework and
expectations
Means of communication
Board of Directors
•
BoD member assigned as
responsible for climate-related
and environmental risks at
Group level.
Communication with the Board of Directors is facilitaded through regular
and ad-hoc meetings as well as Progress reports. Regular and ad-hoc
meetings ensure structured updates, while addressing urgent matters.
Progress reports are consistently shared to provide ongoing insights
ensuring the BoD is well-informed at all times.
Executive
Management
•
CEO-appointed Sustainability
Management Committee.
•
Sustainability-related issues
raised at ExBo level.
Communication with Executive management is maintained through regular
and ad-hoc meetings, along with periodic progress reports.
Investors,
Shareholders and
Investment
Community
•
Timely reporting of accurate
and complete information on
the Group’s performance and
strategy.
The Group engages in ongoing communication with its investors to
enhance their understanding of matters that may be relevant to them,
thereby enabling them to effectively exercise their voting rights and make
informed investment decisions.The Group organises Annual General
Meetings and Extraordinary General Meetings οf Shareholders and
publishes information in a continuous, regular and timely manner (through
the Annual Reports, Financial Results and announcements on its corporate
websites) ensuring that stakeholders have easy access to essential updates
and disclosures.
Employees
•
Timely information on issues
concerning the Group, the
development and progress of
skills, as well as employee
engagement and benefits.
The Group places a strong emphasis on the upskilling and reskilling of its
employees, upholding a high standard of professionalism while
implementing anti-discrimination policies to create an inclusive work
environment. The Group provides extensive benefits to all employees,
irrespective of gender, age, or marital status. Frequent meetings, breakfast
gatherings, and various events promote open communication between
management and staff representatives. Enhanced communication
channels like HR4U and the Connected portal ensure responsiveness to
employee inquiries. The Group promotes work-life balance, social and
environmental awareness, and volunteering and implements an ESG
upskilling plan and awareness initiatives for employees and clients to
support sustainability efforts.
Business Community
(including corporate
networks,
entrepreneurship,
industry associations,
financial institutions
and start-up
entrepreneurs)
•
Mutual cooperation and open
communication driven by
ensuring the interests of the
business community.
•
Showcasing and promoting new
businesses based on specified
criteria and transparent
procedures.
The Group supports entrepreneurship, innovation, and internationalization
through strategic initiatives including dialogue with professional
associations and collaborations.
Civil Society
(including
communities, NGOs,
the academic and
scientific community,
international
organisations, and
the Media)
•
Engaging 3rd parties in CSR
initiatives designed and
implemented by the Group
•
Responding to 3rd party actions
with a social cause
•
Cooperation with the Media to
ensure optimum and effective
promotion of the Group and
its products and services.
The Group engages with non-governmental organisations, to maintain
transparent communication and prompt responses. The Group also
encourages organisations to take part in corporate social responsibility
initiatives, providing support through sponsorships and donations.
Employee volunteer efforts enhance community involvement. Partnerships
with academic institutions promote innovation in CSR practices.
Customers and Clients
•
Responsible information,
customer service and provision
of products and services with a
deep sense of respect and
transparency.
The Group places customers at the centre of its activities and one of its
purposes is to help them in the transition to a more sustainable future,
accompanying them on their journey towards decarbonisation, offering
them innovative solutions to finance their investments with positive
environmental and social impacts and managing initiatives that better
respond to sustainability-related challenges. For more information on the
Bank’s communication channels with customers and clients please refer to
section 3.2.2 Policies and Actions.
Government and
Regulators
•
Compliance and harmonisation
with the supervisory and
regulatory framework.
The Group supports open communication (meetings,
consultation etc.) with government and regulators in order to
facilitate data sharing and issue resolution.
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Stakeholder group
Cooperation framework and
expectations
Means of communication
Suppliers and Partners
•
Cooperation based on
transparent procedures and
specified criteria to achieve
mutually beneficial
agreements.
•
Communication with third-
party partners, to investigate
further tailor-made business
offerings.
The Group provides comprehensive and transparent information in
procurement processes to its suppliers, ensuring compliance with legal
requirements in labour and environmental matters, respecting human
rights and stimulating the demand for socially responsible products and
services.
On top, Eurobank implements an electronic tendering system
complemented by a supplier evaluation platform and procedure, ensuring
transparency and efficiency in supplier selection.
The Group’s understanding of the interests and views of its key stakeholders is shaped through its comprehensive stakeholder
engagement and DMA processes. By engaging with a wide range of stakeholders, including customers, employees, investors,
business community, suppliers and partners, regulators, and civil society, the Group gathers crucial insights into their
expectations regarding issues such as environmental sustainability, governance, human rights, and access to financial
services. These insights are integrated into the Group’s strategy and business model, ensuring that its actions align with
stakeholder needs. Additionally, the materiality assessment process identifies the actual and potential positive, as long as
negative impacts of the Group’s activities on the environment and society, guiding its decision-making and ensuring long-
term value creation for all stakeholders.
Views and interests of affected stakeholders
The views and interests of affected stakeholders with regard to the Group’s sustainability-related impacts are communicated
to the Board of Directors, Board Committees, Management Committees and functions through a structured process.
Stakeholder engagement is integral to the Group’s materiality assessment, and relevant insights gathered from both internal
and external stakeholders are reviewed by the Sustainability Management Committee. These committees oversee the
sustainability strategy and ensure that stakeholder concerns regarding sustainability impacts are incorporated into the
Group’s decision -making processes. The Board of Directors (BoD) is informed about the interests and views of stakeholders
through the presentation of the results of the DMA, which includes an evaluation of the impacts identified by both internal
and external stakeholders. The BoD is regularly updated on the progress and outcomes, ensuring that stakeholder feedback
is integrated into the Group’s strategy and operations.
1.4.4
Material impacts, risks and opportunities and their interaction with strategy and business model [SBM-3]
The Group has conducted a comprehensive materiality assessment to identify its material impacts, risks, and opportunities
in relation to sustainability. This process allows the Group to prioritise the sustainability factors most pertinent to its strategy,
business model, and resource allocation. By identifying and assessing these key factors, the Group ensures that its
sustainability initiatives are aligned with regulatory standards and long-term business objectives. The business model of the
Group is primarily focused on delivering financial services to individual, corporate, and institutional clients. Therefore, the
material impacts, risks, and opportunities identified are concentrated in the provision of such services. The table below
outlines the outcomes of the Group's impact materiality assessment, presenting the identified material impacts:
Sustainability matter
Description
Positive/
Negative
Type of
Impact
Location in
the value
chain
Time-
horizon
E1 Climate change -
Energy
Organisation implements measures to reduce energy
consumption, leading to enhanced efficiency in
operations.
Positive
Actual
Own
operations
Mid-term
E1 Climate change –
Energy
Organisation contributes to climate change through its
in-house operations that contribute to the release of
emissions.
Negative
Actual
Own
operations
Short-term
S1 Own workforce -
Equal Treatment and
Opportunities for All
Organisation puts into action internal management
systems and initiatives that improve employees’ ability
to live free from gender / sexual / ethnic / racial
discrimination and ageism.
Positive
Actual
Own
operations
Short-term
S1 Own workforce -
Equal Treatment and
Opportunities for All
Organisation’s lack of established policies, measures
and actions increases the risk of discrimination incidents
within its operations, potentially impacting the well-
being and morale of employees.
Negative
Potential
Own
operations
Short-term
S1 Own workforce –
Other work-related
rights
Organisation supports employees’ well-being through
providing satisfying and high-quality working
conditions, including adequate workspace and respect
of privacy.
Positive
Actual
Own
operations
Short-term
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Sustainability matter
Description
Positive/
Negative
Type of
Impact
Location in
the value
chain
Time-
horizon
G1 Business Conduct –
Corporate culture
Organisation achieves positive impacts by
implementing operational practices and initiatives that
improve stakeholders’ ability to benefit from effective,
accountable, and inclusive institutions, thereby
promoting business ethics and integrity.
Positive
Actual
Own
operations,
Upstream,
Downstream
Short-term
G1 Business Conduct –
Corruption and
bribery
Organisation’s commitment to corporate integrity is
strengthened through the implementation of robust
anti-corruption and anti-bribery policies, promoting a
culture of transparency and ethical behaviour.
Positive
Actual
Own
operations
Long-term
G1 Business Conduct –
Corruption and
bribery
Corruption-related incidents can result in operational
disruptions, redirecting resources towards crisis
management and adversely affecting the
Organisation’s day-to-day business activities.
Negative
Potential
Own
operations
Mid-term
G1 Business Conduct –
Protection of
whistleblowers
Organisation’s commitment to whistleblower protection
positively impacts society, employees, customers, and
shareholders, setting a precedent for ethical behaviour
and fostering a secure environment where misconduct is
timely identified and stopped.
Positive
Actual
Own
operations
Short-term
Data security and
customer privacy
Organisation implements internal management systems
and initiatives that protect stakeholders' data privacy.
Positive
Actual
Own
operations,
Downstream
Mid-term
Data security and
customer privacy
Organisation’s improper implementation of established
cybersecurity systems and processes results in incidents
of data breach and leaks of personal data.
Negative
Potential
Own
operations,
Downstream
Mid-term
E1 Climate change –
Climate change
adaptation
Organisation actively contributes to GHG reduction
ambitions and targets, set by the EU, regulations,
central governments, and other bodies, through its
sustainable financings and integration of climate risk in
the risk management framework.
Positive
Actual
Own
operations,
Downstream
Long-term
E1 Climate change –
Climate change
adaptation
Organisation’s business strategy may encompass the
continuation of financing to carbon-intensive sectors.
Negative
Potential
Own
operations,
Downstream
Long-term
E1 Climate change –
Climate change
mitigation
Organisation implements a robust climate change
mitigation strategy aiming to minimise the
consequences of climate change for its portfolio.
Positive
Actual
Own
operations,
Downstream
Long-term
E1 Climate change –
Climate change
mitigation
Organisation’s portfolio faces negative impacts due to
the absence of a climate change mitigation strategy.
Negative
Potential
Own
operations,
Downstream
Long-term
S4 Consumers and
end-users -
Information-related
Impacts for
Consumers and/or
End-users
Organisation provides to clients access to accurate,
relevant and high-quality secured information, fostering
transparency and promoting the principles of
responsible banking.
Positive
Actual
Downstream
Short-term
Sustainable financing
and investment
offerings
Organisation provides sustainable finance products and
services that promote green and social investments and
incentivise improvement of its clients’ ESG performance.
Positive
Actual
Downstream
Long-term
Integration of
Sustainability in risk
management
The ESG / climate risk assessment may require
additional effort by the clients in order to provide
required ESG data and may result in additional
conditions to comply with for financial agreements.
Negative
Potential
Downstream
Mid-term
In the fiscal year 2024, Eurobank has not provided specific financial figures regarding the current financial effects of material
risks and opportunities. The Bank has opted for a phased-in approach to report these anticipated financial effects, aligning
with the initial reporting period requirements under the European Sustainability Reporting Standards (ESRS).
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The table below outlines the outcomes of the Group's financial materiality assessment, presenting the identified risks and
opportunities:
Sustainability matter
Description
Risk/
Opportunity
Location in
the value
chain
Expected time
horizons for
anticipated
financial effects
S1 Own workforce -
Working conditions
Demonstrating commitment to exemplary working
condition expectations, such as offering adequate
compensation, promoting work-life balance, and
ensuring workplace safety, can attract and retain
employees.
Opportunity
Own
operations
Short-term
S1 Own workforce -
Working conditions
Non-compliance with the modern workplace
expectations such as good working conditions, adequate
salaries, and workplace safety, can affect employees'
motivation and performance, leading to decreased
productivity.
Risk
Own
operations
Short-term
Fostering Innovation
Meeting evolving customer expectations and modern
lifestyle needs through utilising digital tools and
innovative services can improve customer engagement.
Opportunity
Own
operations
Short-term
Fostering Innovation
Rapid technologic development in the banking sector
may pose competitive threats and risks if the
Organisation fails to adapt and innovate at the same
pace.
Risk
Own
operations
Mid-term
Data security and
customer privacy
Growing cybersecurity threats and cyber-attacks
targeting financial institutions, and their customer data
may compromise the Organisation’s systems, networks
and sensitive information, leading to operational
disruptions and reputational harm.
Risk
Own
operations,
Downstream
Mid-term
E1 Climate change –
Climate change
adaptation/mitigation
Meeting climate objectives linked to legal, regulatory and
other stakeholders’ requirements for the Organisation’s
clients, entails the opportunity for the Organisation to
finance the transition of its clientele.
Opportunity
Own
operations,
Downstream
Long-term
E1 Climate change –
Climate change
adaptation/mitigation
The actions required by the Organisation’s clients to
address climate change mitigation and adaptation
requirements relating to impacts deriving from climate
change may impact the Organisation’s credit risk.
Risk
Own
operations,
Downstream
Long-term
E4
Biodiversity and
ecosystem - Direct impact
drivers of biodiversity loss
Biodiversity loss due to clients’ operations may lead to
financial and reputational damage.
Risk
Downstream
Long-term
Sustainable financing and
investment offerings
Promoting green and social investments in line with
requirements to support climate transition and in
response to changing consumer preferences enhances
the Organisation’s brand reputation, attracting
sustainability conscious investors.
Opportunity
Own
operations,
Downstream
Long-term
Sustainable financing and
investment offerings
Evolving market preferences and regulatory shifts may
impact the demand for sustainable finance, posing risks
to the Organisation’s existing product offerings.
Risk
Own
operations,
Downstream
Long-term
Integration of
Sustainability in risk
management
Integrating ESG in risk management in response to
evolving regulatory requirements and business needs
improves the Organisation’s resilience to sustainability-
related risks, safeguarding the Organisation against
potential financial losses, strengthening its overall risk
management framework.
Opportunity
Own
operations,
Downstream
Mid-term
Integration of
Sustainability in risk
management
Client hesitance or inability to meet sustainability
requirements may impact the Organisation’s market
perception, potentially affecting its competitive position
and leading to additional risks.
Risk
Own
operations,
Downstream
Mid-term
Financial inclusion
Contributing to financial inclusion aligns with social
impact goals, positively impacting brand reputation and
offering financing to underserved populations, such as
students and geographically isolated communities.
Opportunity
Downstream
Mid-term
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Double materiality matrix:
1.5
Materiality analysis and results according to the concept of Double Materiality
1.5.1
Description of the processes to identify and assess material impacts, risks and opportunities [IRO-1]
Materiality assessment is conducted through a comprehensive process that aims to identify, assess, prioritise and monitor
both potential and actual impacts on people and the environment, as well as risks and opportunities that may in turn have
a financial effect on the organisation.
Phase 1 – Understanding of the business, value chain & related activities
The first step is to understand Group’s key business segments and partners influenced by and influencing those operations.
Credit institutions are complex entities that engage in a wide range of activities, varying significantly in both scale and scope.
To effectively evaluate these activities and include them within the context of DMA, value chain boundaries were established.
Boundaries are applied to the Upstream side of value chain, that are limited to direct Suppliers, as well as to the downstream
side which includes the Group’s customers. The focus areas for the materiality assessment are identified and prioritised based
on the potential significant IROs. Business activities and partners are categorized based on their role in the value chain by
identifying whether they operate upstream, downstream, or within own operations.
The significant activities across Eurobank’s value chain have been systematically mapped to relevant ESRS Sectors as part
of an extensive value chain analysis. This mapping encompassed both upstream and downstream activities, along with
Eurobank's own operations, while carefully considering the interconnections between ESRS, rating agencies and industry
specific standards. For this purpose, the methodologies established by the SASB Materiality Map and the MSCI ESG Industry
Materiality Map are utilised as foundational tools to identify Sustainability issues. Expert judgment is applied throughout this
process to ensure that the mappings are accurate and relevant. In the identification of potentially material sub-topics a peer
analysis of major Greek systemic banks and foreign banks operating predominantly within the EU was also incorporated.
The Risk Identification and Materiality Assessment (RIMA) Framework was also utilised in the overall process. RIMA enables
Eurobank to systematically build its risk inventory by identifying and evaluating both current and potential risks.
Phase 2 – Stakeholder engagement and identification of IROs
The materiality assessment process, in the second phase, included comprehensive consultation with affected stakeholders
to understand how they may be impacted by the organisation's activities. Stakeholders’ engagement is an integral part of
the materiality assessment process. The affected stakeholders’ engagement is central to the materiality assessment and
therefore it is critical to gather and assess diverse stakeholder perspectives to build a balanced and comprehensive set of
impacts, risks, and opportunities (IROs). Eurobank recognises the importance of a due diligence processes and thus plans
to develop such processes and utilise its outcomes to inform the materiality assessment in the future. Through stakeholder
engagement, a wide range of diverse perspectives is gathered to identify and assess the full spectrum of impacts, risks, and
opportunities (IROs). Eurobank considered its stakeholder groups as well as the ESG experts and classified them in the
following 3 categories:
i.
Primary/Affected stakeholders,
ii.
Secondary stakeholders,
iii.
ESG Experts
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The stakeholder engagement for impact materiality involved identifying and categorizing stakeholders into two main groups:
Internal Stakeholders (Board of Directors, Senior Management, and Employees) and External Stakeholders (Business
Community, Civil Society, Customers and Clients, Suppliers and Partners, Investors and Shareholders, and Government and
Regulators). To engage these diverse groups, electronic questionnaires were circulated via an online platform.
In the context of impact materiality ("inside-out" perspective) causal links between Eurobank’s and its value chain’s practices
and their impacts on the environment and society were assessed. First, the topics are contextualized to explain why they are
relevant to Eurobank and its value chain from an impact perspective. For this purpose, Eurobank considers its value chain
activities, prior year reporting, as well as other sources (e.g. peers, indices). Then, for those that are deemed relevant, the
impacts on society or the environment are described. Finally, the impacts are classified as:
●
actual or potential,
●
negative or positive impacts on people or the environment,
●
over the short, medium and long-term time horizon.
Impacts arising from Eurobank's operations are considered negative, without factoring in the potential effectiveness of any
mitigation measures that may be implemented.
Regarding financial materiality Eurobank engaged with internal stakeholders, who are representative of the whole Eurobank,
to assess risks and opportunities. The primary method for stakeholder engagement was through dedicated focus groups,
designed to evaluate the potential risks and opportunities associated with sustainability. Sustainability risks and
opportunities were assessed based on their likelihood of occurrence and the potential magnitude of their financial effects
over the short, medium, and long term time horizons.
Risks and opportunities are associated with financial materiality ("outside-in"). First, the topics are contextualized to explain
why they are relevant to Eurobank and its value chain from a financial perspective (i.e. from a risk and/or opportunity
perspective). For this purpose, the identification of impacts was utilised as a starting point, since the financial materiality
assessment benefits from the outcome of the impact materiality assessment. Eurobank considered its value chain activities,
prior year sustainability reporting (e.g. Pillar 3, UNEP FI), as well as other sources (e.g. peers, MSCI, etc.). Then, for those that
are deemed relevant, the risks and/or opportunities are described in the short, medium, and long-term time horizon in line
with ESRS definition. The analysis is risk-based and hence opportunities are identified only when there is a direct business
opportunity linked to a subject that does not result from mitigating a risk. To align -to the extent this is feasible- this
identification process with Eurobank’s existing risk management, the input of RIMA process is utilised. Moreover, the draft list
of ROs was subject to multiple iterations through discussions with key internal stakeholders involved in the broader financial
risks and opportunities identification process in Eurobank.
Phase 3 – Assessment of IROs
After having identified IROs, both an impact and a financial materiality assessment takes place in the third phase of the
process, whereby each of the impacts, risks and opportunities are scored on predefined scales for severity, magnitude and
likelihood, as appropriate.
A sustainability matter is material from an impact perspective when it pertains to the Group’s material, actual or potential,
positive or negative impacts on people or the environment (environmental, social and governance matters) over the short,
medium and long-term time horizons. It includes impacts connected to Eurobank’s own operations and value chain, including
through its products and services, as well as through its business relationships. Impacts are assessed based on the following
criteria:
●
Severity
, which is composed of 3 elements:
o
Scale
: how grave the negative impact is or how beneficial the positive impact is for people or the environment.
o
Scope
: how widespread the negative or positive impacts are. In the case of environmental impacts, the scope
may be understood as the extent of environmental damage or a geographical perimeter. In the case of impacts
on people, the scope may be understood as the number of people adversely affected; and
o
Irremediable character
: whether and to what extent the negative impacts could be remediated, i.e., restoring the
environment or affected people to their prior state.
●
Likelihood
The significance of positive impacts is assessed by stakeholders, by considering the scale and scope of impacts, whereas the
severity of negative impacts was assessed by considering their scale, scope and irremediable character. For the assessment
of potential impacts, the likelihood factor is also considered. The qualitative thresholds for impact assessment were
established by applying experts’ judgment, in addition to the application of quantitative thresholds. Consequently, impacts
(positive and/or negative) with an impact materiality score exceeding these thresholds were classified as material.
The financial materiality assessment corresponds to the identification of information that is considered material for primary
users of general-purpose financial reports in making decisions relating to providing resources to the entity. Risk and
Opportunities are assessed based on severity and likelihood. Similarly to the impact materiality assessment, Eurobank
developed a scoring mechanism by applying thresholds as cut-off points. Eurobank performed the assessment of risks and
opportunities, by engaging internal stakeholders through workshops with experts from Eurobank’s key business units. The
outcome of stakeholder engagement was a list of scored risks and opportunities.
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Phase 4 – Materiality overview
In the final step of the process, the Group undertakes a comprehensive analysis of the collected data, prioritising impacts,
risks and opportunities (IROs) based on the scores obtained through structured questionnaires (Impact Materiality
assessment) and targeted focus group (Financial Materiality assessment). Applying these scoring mechanisms allows to
further separate material and non-material impacts, risks and opportunities (IROs) and topics. A topic is material if it scores
‘high’ from an impact (positive, negative and/or both) and/or financial perspective (risk, opportunity and/or both). Materiality
thresholds classify topics as material in terms of impact materiality, financial materiality or in case of both, double materiality.
The IROs assessed to be material are then grouped and mapped to a topic/sub-topic in order to report according to the
corresponding Disclosure Requirements of the relevant topic. The SMC approves the proposed contents of the Sustainability
Statement that derive from the results of the DMA.
Strategic implication
The DMA strengthens the Group’s commitment to responsible risk management, fostering robust corporate governance
practices while advancing sustainability goals. The DMA process enables Eurobank to effectively manage and leverage risks
and opportunities in a way that not only supports its financial performance but also contributes to positive societal and
environmental impacts.
Risk management is a key component of the Group's operations to achieve its strategic and business objectives. As such, the
Group has put in place effective mechanisms to identify, monitor, and assess risks promptly, evaluating their potential impact
on the attainment of corporate objectives. The Risk Identification and Materiality Assessment (RIMA) process at Eurobank
plays a crucial role in managing effectively risks preventing significant impacts on the Group's financial performance, capital,
liquidity, and business objectives. This proactive approach helps identify emerging risks, especially those related to the
interconnected nature of sustainability risks, which are integrated into the Group's broader risk management framework.
Given the increasing recognition of both financial and non-financial impacts, Eurobank takes a holistic approach to manage
sustainability risks, aligning these considerations with other risk types within the organisation.
Eurobank also places a strong emphasis on managing social risks as part of its sustainable business strategy. The Group has
adjusted its business model, strategy and processes, as well as its financial planning, to address these risks effectively.
Additionally, Eurobank continuously assesses its exposure to governance risks, recognising that poor governance practices
by clients can adversely affect its own operations. To mitigate this, Eurobank has implemented robust internal governance
arrangements and processes that allow for effective evaluation of governance risks, both within its own operations and with
respect to its clients' governance performance. This strategic focus on sustainability not only helps Eurobank remain resilient
and adaptable in a fast-changing business environment but also recognises the importance of identifying material
opportunities as a crucial source of innovation and value creation.
Eurobank performed its DMA in accordance with the European Sustainability Reporting Standards (ESRS) as an early
adoption in 2023. The corresponding disclosures have been included in the 2023 Annual Report – Business & Sustainability
(Sustainability Report) . Eurobank identified, assessed, prioritised and validated the sustainability impacts arising from its
activities and assessed risks and opportunities that may have material financial influence on Eurobank, throughout its value
chain. For the current reporting year, the Group continues to adhere to ESRS, ensuring alignment with all applicable
regulatory requirements.
For more information regarding the internal control procedures for the identification and assessment of material impacts,
risks, and opportunities, please refer to: 1.3.2 Information provided to and sustainability matters addressed by the
undertaking's administrative, management and supervisory bodies [GOV -2].
1.5.2
Through the DMA process, Eurobank has determined that the following topics are not material to Eurobank’s operations and
value chain: ESRS E2 - Pollution, E3 - Water and Marine Resources, E5 - Resource Use and Circular Economy, S2 - Workers in
the Value Chain, and S3 - Affected Communities. This conclusion reflects Eurobank’s commitment to focusing on areas with
the greatest impact and relevance to its stakeholders and business.
The table below presents the progress made on implementing the provisions of the European Sustainability Reporting
Standards:
Nr.
Description
Reference
Explanation
ESRS 2: General disclosures
BP-1
General basis for preparation of the sustainability
statement
1.1 Basis for Preparation
BP-2
Disclosures in relation to specific circumstances
1.2 Disclosures in relation to specific
circumstances
GOV-1
The role of the administrative, management and
supervisory bodies
1.3.1 The role of the administrative,
management and supervisory
bodies
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Nr.
Description
Reference
Explanation
GOV-2
Information provided to and sustainability matters
addressed by the undertaking’s administrative,
management and supervisory bodies
1.3.2 Information provided to and
sustainability matters addressed by
the undertaking's administrative,
management and supervisory
bodies
GOV-3
Integration of sustainability-related performance in
incentive schemes
1.3.3 Integration of sustainability-
related performance in incentive
schemes [GOV-3]
GOV-4
Statement on due diligence
1.3.4 Description of the due diligence
on sustainability matters [GOV-4]
GOV-5
Risk management and internal controls over
sustainability reporting
1.3.5 Risk management and internal
controls over sustainability
reporting [GOV-5]
SBM-1
Strategy, business model and value chain
1.4.1 Information on the market
position and strategy of the
company [SBM-1]
SBM-2
Interests and views of stakeholders
1.4.3 Stakeholder interest and
engagement [SBM-2]
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
1.4.4 Material impacts, risks and
opportunities and their interaction
with strategy and business model
[SBM-3]
Omission of anticipated financial
effects for the first year of
preparation
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
1.5.1 Description of the processes to
identify and assess material
impacts, risks and opportunities
[IRO-1]
IRO-2
Disclosure requirements in ESRS covered by the
undertaking’s sustainability statement
1.5.2 Disclosure requirements in
ESRS covered by the undertaking’s
sustainability statement [IRO-2]
MDR-P
Policies adopted to manage material sustainability
matters
Policies analyzed per respective
topic
MDR-A
Actions and resources in relation to material
sustainability matters
Actions analyzed per respective
topic
MDR-M
Metrics in relation to material sustainability matters
Metrics analyzed per respective
topic
MDR-T
Tracking effectiveness of policies and actions through
targets
Targets analyzed per respective
topic
ESRS E1: Climate change
GOV-3
Integration of sustainability-related performance in
incentive schemes
Integration of sustainability-related
performance in incentive schemes
[ESRS 2 GOV-3]
E1-1
Transition plan for climate change mitigation
Transition plan for climate change
mitigation [E1-1]
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
Material impacts, risks and
opportunities and their interaction
with strategy and business model
[ESRS 2 SBM-3]
IRO-1
Description of the processes to identify and assess
material climate-related impacts, risks and
opportunities
Description of the processes to
identify and assess material
climate-related impacts, risks and
opportunities [ESRS 2 IRO-1]
E1-2
Policies related to climate change mitigation and
adaptation
Policies related to climate change
mitigation and adaptation [E1-2]
E1-3
Actions and resources in relation to climate change
policies
Actions and resources in relation to
climate change policies [E1-3]
E1-4
Targets related to climate change mitigation and
adaptation
Targets related to climate change
mitigation and adaptation [E1-4]
E1-5
Energy consumption and mix
Energy consumption & mix [E1-5]
E1-6
Gross Scopes 1, 2, 3 and Total GHG emissions
GHG Intensity based on net revenue
Gross Scopes 1, 2, 3 and Total GHG
emissions [E1-6]
E1-7
GHG removals and GHG mitigation projects financed
through carbon credits
GHG removals and GHG mitigation
projects financed through carbon
credits [E1-7]
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Nr.
Description
Reference
Explanation
E1-8
Internal carbon pricing
Not applicable
E1-9
Anticipated financial effects from material physical and
transition risks and potential climate-related
opportunities
Phased-in provision
Omission of all information under
this sub-topic for the first year of
preparation
ESRS E4: Biodiversity and ecosystems
E4-1
Transition plan and consideration of biodiversity and
ecosystems in strategy and business model
Information is disclosed in a manner that reflects the application of
biodiversity matters for the financial services sector.
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
IRO-1
Description of processes to identify and assess material
biodiversity and ecosystem-related impacts, risks,
dependencies and opportunities
E4-2
Policies related to biodiversity and ecosystems
E4-3
Actions and resources related to biodiversity and
ecosystems
E4-4
Targets related to biodiversity and ecosystems
E4-5
Impact metrics related to biodiversity and ecosystems
change
E4-6
Anticipated financial effects from biodiversity and
ecosystem-related risks and opportunities
ESRS S1: Own Workforce
SBM-2
Interests and views of stakeholders
Stakeholder interest and
engagement [SBM-2]
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
Material impacts, risks and
opportunities and their interaction
with strategy and business model
[ESRS 2 SBM-3]
S1-1
Policies related to own workforce
Policies related to own workforce
[S1-1]
S1-2
Processes for engaging with own workforce and
workers’ representatives about impacts
Processes for engaging with own
workforce and workers’
representatives about impacts [S1-
2]
S1-3
Processes to remediate negative impacts and channels
for own workers to raise concerns
Processes to remediate negative
impacts and channels for own
workforce to raise concerns [S1-3]
S1-4
Taking action on material impacts on own workforce,
and approaches to managing material risks and
pursuing material opportunities related to own
workforce, and effectiveness of those actions
Action on material impacts on own
workforce, and approaches to
managing material risks and
pursuing material opportunities
related to own workforce, and
effectiveness of those actions [S1-4]
S1-5
Targets related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities
Targets related to managing
material negative impacts,
advancing positive impacts, and
managing material risks and
opportunities [S1-5]
S1-6
Characteristics of the undertaking’s employees
Characteristics of employees [S1-6]
S1-7
Characteristics of non-employee workers in the
undertaking’s own workforce
Phased-in provision
Omission of all information under
this sub-topic for the first year of
preparation
S1-8
Collective bargaining coverage and social dialogue
Phased-in provision
Omission of information about
own employees in non-EEA
countries for the first year of
preparation
S1-9
Diversity metrics
Diversity Metrics [S1-9]
S1-10
Adequate wages
Adequate Wages [S1-10]
S1-11
Social protection
Phased-in provision
Omission of all information under
this sub-topic for the first year of
preparation
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Reference
Explanation
S1-12
Persons with disabilities
Phased-in provision
Omission of all information under
this sub-topic for the first year of
preparation
S1-13
Training and skills development metrics
Training and skills development
metrics [S1-13]
Omission of all information under
this sub-topic for the first year of
preparation
S1-14
Health and safety metrics
Health and safety metrics [S1-14]
Omission of the data points on
cases of work-related ill-health
and on number of days lost to
injuries, accidents, fatalities and
work-related ill health and
reporting on non-employees for
the first year of preparation of its
sustainability statement
S1-15
Work-life balance metrics
Training and skills development
metrics [S1-15]
Omission of information under
this sub-topic for the first year of
preparation
S1-16
Remuneration metrics (pay gap and total
remuneration)
Remuneration metrics (pay gap and
total remuneration) [S1-16]
S1-17
Incidents, complaints and severe human rights impacts
Incidents, complaints and severe
human right [S1-17]
ESRS S-4: Consumers and end-users
SBM-2
Interests and views of stakeholders
Stakeholder interest and
engagement [SBM-2]
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
Material impacts, risks and
opportunities and their interaction
with strategy and business model
[ESRS 2 SBM-3]
S4-1
Policies related to consumers and end-users
Policies related to consumers and
end-users [S4-1]
S4-2
Processes for engaging with consumers and end-users
about impacts
Processes for engaging with
consumers and end-users about
impacts [S4-2]
S4-3
Processes to remediate negative impacts and channels
for consumers and end-users to raise concerns
Processes to remediate negative
impacts and channels for consumers
and end-users to raise concerns [S4-
3]
S4-4
Taking action on material impacts on consumers and
end-users, and approaches to managing material risks
and pursuing material opportunities related to
consumers and end-users, and effectiveness of those
actions
Taking action on material impacts
on consumers and end-users, and
approaches to managing material
risks, pursuing material
opportunities related to consumers
and end-users, and effectiveness of
those actions [S4-4]
S4-5
Targets related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities
Targets related to managing
material negative impacts,
advancing positive impacts, and
managing material risks and
opportunities [S4-5]
ESRS G1: Business conduct
GOV-1
The role of the administrative, management and
supervisory bodies
The role of the administrative,
management and supervisory
bodies [ESRS 2 GOV-1]
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
Description of the processes to
identify and assess material
impacts, risks and opportunities
[ESRS 2 IRO-1]
G1-1
Business conduct policies and corporate culture
Business conduct policies and
corporate culture [G1-1]
G1-2
Management of relationships with suppliers
Not material
G1-3
Prevention and detection of corruption and bribery
Prevention and detection of
corruption and bribery [G1-3]
G1-4
Incidents of corruption or bribery
Incidents of corruption or bribery
[G1-4]
G1-5
Political influence and lobbying activities
Not material
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Explanation
G1-6
Payment practices
Not material
Entity-specific: Integration of sustainability in risk management
GOV-1
The role of the administrative, management and
supervisory bodies
The role of the administrative,
management and supervisory
bodies [ESRS 2 GOV-1]
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
Material impacts, risks and
opportunities and their interaction
with strategy and business model
[ESRS 2 SBM-3]
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
Description of processes to identify
and assess material impacts, risks
and opportunities [ESRS 2 IRO-1]
MDR-P
Policies adopted to manage material sustainability
matters
Policies related to the integration of
sustainability in risk management
[MDR-P]
MDR-A
Actions and resources in relation to material
sustainability matters
Actions related to the integration of
sustainability in risk management
[MDR-A]
MDR-M
Metrics in relation to material sustainability matters
Sustainability risk management
metrics [MDR-M]
MDR-T
Tracking effectiveness of policies and actions through
targets
Sustainability risk management
targets [MDR-T]
Entity-specific: Sustainable financing and investment offerings
GOV-1
The role of the administrative, management and
supervisory bodies
The role of the administrative,
management and supervisory
bodies [ESRS 2 GOV-1]
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
Material impacts, risks and
opportunities and their interaction
with strategy and business model
[ESRS 2 SBM-3]
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
Description of processes to identify
and assess material impacts, risks
and opportunities [ESRS 2 IRO-1]
MDR-P
Policies adopted to manage material sustainability
matters
Policies on sustainable financing
and investment offerings [MDR-P]
MDR-A
Actions and resources in relation to material
sustainability matters
Actions on sustainable financing
and investment offerings [MDR-A]
MDR-M
Metrics in relation to material sustainability matters
Metrics on sustainable financing
and investment offerings [MDR-M]
MDR-T
Tracking effectiveness of policies and actions through
targets
Targets on sustainable financing
and investment offerings [MDR-T]
Entity-specific: Fostering innovation
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
Description of material impacts,
risks and opportunities and their
interaction with strategy and
business model [SBM-3]
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
Description of processes to identify
and assess material impacts, risks
and opportunities [ESRS 2 IRO-1]
MDR-P
Policies adopted to manage material sustainability
matters
Policies related to fostering
innovation [MDR-P]
MDR-A
Actions and resources in relation to material
sustainability matters
Actions related to fostering
innovation [MDR-A]
MDR-M
Metrics in relation to material sustainability matters
Fostering Innovation metrics [MDR-
M]
MDR-T
Tracking effectiveness of policies and actions through
targets
Fostering innovation targets [MDR-
T]
Entity-specific: Financial inclusion
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
Description of material impacts,
risks and opportunities and their
interaction with strategy and
business model [SBM-3]
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Reference
Explanation
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
Description of processes to identify
and assess material impacts, risks
and opportunities [ESRS 2 IRO-1]
MDR-P
Policies adopted to manage material sustainability
matters
Policies related to financial inclusion
[MDR-P]
MDR-A
Actions and resources in relation to material
sustainability matters
Actions related to financial inclusion
[MDR-A]
MDR-M
Metrics in relation to material sustainability matters
Financial inclusion metrics [MDR-M]
MDR-T
Tracking effectiveness of policies and actions through
targets
Financial inclusion targets [MDR-T]
Entity-specific: Data security and customer privacy
GOV-1
The role of the administrative, management and
supervisory bodies
The role of the administrative,
management and supervisory
bodies [ESRS 2 GOV-1]
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy and business model
Description of material impacts,
risks and opportunities and their
interaction with strategy and
business model [SBM-3]
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
Description of processes to identify
and assess material impacts, risks
and opportunities [ESRS 2 IRO-1]
MDR-P
Policies adopted to manage material sustainability
matters
Policies related to data security and
customer privacy [MDR-P]
MDR-A
Actions and resources in relation to material
sustainability matters
Actions related to data security and
customer privacy [MDR-A]
MDR-M
Metrics in relation to material sustainability matters
Data security and customer privacy
metrics [MDR-M]
MDR-T
Tracking effectiveness of policies and actions through
targets
Data security and customer privacy
targets [MDR-T]
The table below presents
List of datapoints in cross-cutting and topical standards that derive from other EU legislation
:
Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU
Climate
Law
reference
Section
ESRS 2 GOV-1 Board's gender
diversity paragraph 21 (d)
Indicator number 13 of
Table #1 of Annex 1
Commission Delegated
Regulation (EU)
2020/1816, Annex II
The role of the
administrative,
management
and
supervisory
bodies [ESRS 2
GOV-1]
ESRS 2 GOV-1 Percentage of
board members who are
independent paragraph 21 (e)
Delegated Regulation
(EU) 2020/1816, Annex II
The role of the
administrative,
management
and
supervisory
bodies [ESRS 2
GOV-1]
ESRS 2 GOV-4 Statement on
due diligence paragraph 30
Indicator number 10
Table #3 of Annex 1
1.3.4
Description of
the due
diligence on
sustainability
matters [GOV-
4]
ESRS 2 SBM-1 Involvement in
activities related to fossil fuel
activities paragraph 40 (d) i
"Indicators number 4
Table #1 of Annex 1
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453 ( 28 )
Table 1:
Qualitative
information on
Environmental
risk and Table 2:
Delegated Regulation
(EU) 2020/1816, Annex II
1.4.1
Information on
the market
position and
strategy of the
company
[SBM-1]
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Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU
Climate
Law
reference
Section
Qualitative
information on
Social risk
ESRS 2 SBM-1 Involvement in
activities related to chemical
production paragraph 40 (d) ii
Indicator number 9 Table
#2 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II
1.4.1
Information on
the market
position and
strategy of the
company
[SBM-1]
ESRS 2 SBM-1 Involvement in
activities related to
controversial weapons
paragraph 40 (d) iii
Indicator number 14
Table #1 of Annex 1
Delegated Regulation
(EU) 2020/1818, Article
12(1) Delegated
Regulation (EU)
2020/1816, Annex II
1.4.1
Information on
the market
position and
strategy of the
company
[SBM-1]
ESRS 2 SBM-1 Involvement in
activities related to cultivation
and production of tobacco
paragraph 40 (d) iv
Delegated Regulation
(EU) 2020/1818, Article
12(1) Delegated
Regulation (EU)
2020/1816, Annex II
1.4.1
Information on
the market
position and
strategy of the
company
[SBM-1]
ESRS E1-1 Transition plan to
reach climate neutrality by
2050 paragraph 14
Regulation
(EU)
2021/1119,
Article 2(1)
Transition plan
for climate
change
mitigation [E1-
1]
ESRS E1-1 Undertakings
excluded from Paris-aligned
Benchmarks paragraph 16 (g)
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Template 1:
Banking book-
Climate Change
transition risk:
Credit quality of
exposures by
sector, emissions
and residual
maturity
Delegated Regulation
(EU) 2020/1818, Article
12.1 (d) to (g), and
Article 12.2
Transition plan
for climate
change
mitigation [E1-
1]
ESRS E1-4 GHG emission
reduction targets paragraph
34
Indicator number 4 Table
#2 of Annex 1
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Template 3:
Banking book –
Climate change
transition risk:
alignment
metrics
Delegated Regulation
(EU) 2020/1818, Article 6
Targets
related to
climate
change
mitigation and
adaptation
[E1-4]
ESRS E1-5 Energy consumption
from fossil sources
disaggregated by sources (only
high climate impact sectors)
paragraph 38
Indicator number 5 Table
#1 and Indicator n. 5
Table #2 of Annex 1
Energy
consumption
& mix [E1-5]
ESRS E1-5 Energy consumption
and mix paragraph 37
Indicator number 5 Table
#1 of Annex 1
Energy
consumption
& mix [E1-5]
ESRS E1-5 Energy intensity
associated with activities in
high climate impact sectors
paragraphs 40 to 43
Indicator number 6 Table
#1 of Annex 1
Energy
consumption
& mix [E1-5]
ESRS E1-6 Gross Scope 1, 2, 3,
and Total GHG emissions
paragraph 44
Indicators number 1 and
2 Table #1 of Annex 1
Article 449a;
Regulation (EU)
No 575/2013;
Commission
Implementing
Delegated Regulation
(EU) 2020/1818, Article
5(1), 6 and 8(1)
Gross Scopes
1, 2, 3 and
Total GHG
emissions [E1-
6]
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Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU
Climate
Law
reference
Section
Regulation (EU)
2022/2453
Template 1:
Banking book –
Climate change
transition risk:
Credit quality of
exposures by
sector, emissions
and residual
maturity
ESRS E1-6 Gross GHG
emissions intensity paragraphs
53 to 55
Indicators number 3
Table #1 of Annex 1
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Template 3:
Banking book –
Climate change
transition risk:
alignment
metrics
Delegated Regulation
(EU) 2020/1818, Article
8(1)
Gross Scopes
1, 2, 3 and
Total GHG
emissions [E1-
6]
ESRS E1-7 GHG removals and
carbon credits paragraph 56
Regulation
(EU)
2021/1119,
Article 2(1)
GHG removals
and GHG
mitigation
projects
financed
through carbon
credits [E1-7]
ESRS E1-9 Exposure of the
benchmark portfolio to
climate-related physical risks
paragraph 66
Delegated Regulation
(EU) 2020/1818, Annex II
Delegated Regulation
(EU) 2020/1816, Annex II
Phased-in
provision
"ESRS E1-9 Disaggregation of
monetary amounts by acute
and chronic physical risk
paragraph 66 (a)
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
paragraphs 46
and 47; Template
5: Banking book -
Climate change
physical risk:
Exposures subject
to physical risk.
Phased-in
provision
ESRS E1-9 Location of
significant assets at material
physical risk paragraph 66 (c)"
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
paragraphs 46
and 47; Template
5: Banking book -
Climate change
physical risk:
Exposures subject
to physical risk.
Phased-in
provision
ESRS E1-9 Breakdown of the
carrying value of its real estate
assets by energy-efficiency
classes paragraph 67 (c)
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
paragraph
34;Template
2:Banking book -
Climate change
transition risk:
Loans
collateralised by
Phased-in
provision
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Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU
Climate
Law
reference
Section
immovable
property - Energy
efficiency of the
collateral
ESRS E1-9 Degree of exposure
of the portfolio to climate-
related opportunities
paragraph 69
Delegated Regulation
(EU) 2020/1818, Annex II
Phased-in
provision
ESRS E2-4 Amount of each
pollutant listed in Annex II of
the E- PRTR Regulation
(European Pollutant Release
and Transfer Register) emitted
to air, water and soil,
paragraph 28
Indicator number 8 Table
#1 of Annex 1 Indicator
number 2 Table #2 of
Annex 1 Indicator number
1 Table #2 of Annex 1
Indicator number 3 Table
#2 of Annex 1
Not material
ESRS E3-1 Water and marine
resources paragraph 9
Indicator number 7 Table
#2 of Annex 1
Not material
ESRS E3-1 Dedicated policy
paragraph 13
Indicator number 8 Table
2 of Annex 1
Not material
ESRS E3-1 Sustainable oceans
and seas paragraph 14
Indicator number 12
Table #2 of Annex 1
Not material
ESRS E3-4 Total water recycled
and reused paragraph 28 (c)
Indicator number 6.2
Table #2 of Annex 1
Not material
ESRS E3-4 Total water
consumption in m3 per net
revenue on own operations
paragraph 29
"Indicator number 6.1
Table #2 of
Not material
ESRS 2- IRO 1 - E4 paragraph
16 (a) i
Indicator number 7 Table
#1 of Annex 1
Information is
disclosed in a
manner that
reflects the
application of
biodiversity
matters for
the financial
services
sector.
ESRS 2- IRO 1 - E4 paragraph
16 (b)
Indicator number 10
Table #2 of Annex 1
Information is
disclosed in a
manner that
reflects the
application of
biodiversity
matters for
the financial
services
sector.
ESRS 2- IRO 1 - E4 paragraph
16 (c)
Indicator number 14
Table #2 of Annex 1
Information is
disclosed in a
manner that
reflects the
application of
biodiversity
matters for
the financial
services
sector.
ESRS E4-2 Sustainable land /
agriculture practices or policies
paragraph 24 (b)
Indicator number 11 Table
#2 of Annex 1
Information is
disclosed in a
manner that
reflects the
application of
biodiversity
matters for
the financial
services
sector.
ESRS E4-2 Sustainable oceans
/ seas practices or policies
paragraph 24 (c)
Indicator number 12
Table #2 of Annex 1
Information is
disclosed in a
manner that
reflects the
application of
biodiversity
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Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU
Climate
Law
reference
Section
matters for
the financial
services
sector.
ESRS E4-2 Policies to address
deforestation paragraph 24 (d)
Indicator number 15Table
#2 of Annex 1
Information is
disclosed in a
manner that
reflects the
application of
biodiversity
matters for
the financial
services
sector.
ESRS E5-5 Non-recycled waste
paragraph 37 (d)
Indicator number 13
Table #2 of Annex 1
Not material
ESRS E5-5 Hazardous waste
and radioactive waste
paragraph 39
Indicator number 9 Table
#1 of Annex 1
Not material
ESRS 2- SBM3 - S1 Risk of
incidents of forced labor
paragraph 14 (f)
Indicator number 13
Table #3 of Annex I
Material
impacts, risks
and
opportunities
and their
interaction
with strategy
and business
model [ESRS 2
SBM-3]
ESRS 2- SBM3 - S1 Risk of
incidents of child labor
paragraph 14 (g)
Indicator number 12
Table #3 of Annex I
Material
impacts, risks
and
opportunities
and their
interaction
with strategy
and business
model [ESRS 2
SBM-3]
ESRS S1-1 Human rights policy
commitments paragraph 20
Indicator number 9 Table
#3 and Indicator number
11 Table #1 of Annex I
Policies
related to own
workforce [S1-
1]
ESRS S1-1 Due diligence
policies on issues addressed by
the fundamental International
Labour Organisation
Conventions 1 to 8, paragraph
21
Delegated Regulation
(EU) 2020/1816, Annex II
Policies
related to own
workforce [S1-
1]
ESRS S1-1 Processes and
measures for preventing
trafficking in human beings
paragraph 22
Indicator number 1 Table
#3 of Annex I
Policies
related to own
workforce [S1-
1]
ESRS S1-1 Workplace accident
prevention policy or
management system
paragraph 23
Indicator number 1 Table
#3 of Annex I
Policies
related to own
workforce [S1-
1]
ESRS S1-3
Grievance/complaints handling
mechanisms paragraph 32 (c)
Indicator number 5 Table
#3 of Annex I
Processes to
remediate
negative
impacts and
channels for
own workforce
to raise
concerns [S1-3]
ESRS S1-14 Number of fatalities
and number and rate of work-
related accidents paragraph
88 (b) and (c)
Indicator number 2 Table
#3 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
Health and
safety metrics
[S1-14]
ESRS S1-14 Number of days lost
to injuries, accidents, fatalities
or illness paragraph 88 (e)
Indicator number 3 Table
#3 of Annex I
Phased-in
provision
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Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU
Climate
Law
reference
Section
ESRS S1-16 Unadjusted gender
pay gap paragraph 97 (a)
Indicator number 12
Table #1 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
Remuneration
metrics (pay
gap and total
remuneration)
[S1-16]
ESRS S1-16 Excessive CEO pay
ratio paragraph 97 (b)
Indicator number 8 Table
#3 of Annex I
Remuneration
metrics (pay
gap and total
remuneration)
[S1-16]
ESRS S1-17 Incidents of
discrimination paragraph 103
(a)
Indicator number 7 Table
#3 of Annex I
Incidents,
complaints
and severe
human right
[S1-17]
ESRS S1-17 Non-respect of
UNGPs on Business and
Human Rights and OECD
paragraph 104 (a)
Indicator number 10
Table #1 and
Delegated Regulation
(EU) 2020/1816, Annex II
Delegated Regulation
(EU) 2020/1818 Art 12 (1)
Incidents,
complaints
and severe
human right
[S1-17]
ESRS 2- SBM3 – S2 Significant
risk of child labour or forced
labour in the value chain
paragraph 11 (b)
Indicators number 12 and
n. 13 Table #3 of Annex I
Not material
ESRS S2-1 Human rights policy
commitments paragraph 17
Indicator number 9 Table
#3 and Indicator n. 11
Table #1 of Annex 1
Not material
ESRS S2-1 Policies related to
value chain workers paragraph
18
Indicator number 11 and
n. 4 Table #3 of Annex 1
Not material
ESRS S2-1 Non- respect of
UNGPs on Business and
Human Rights principles and
OECD guidelines paragraph 19
Indicator number 10
Table #1 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II
Delegated Regulation
(EU) 2020/1818, Art 12
(1)
Not material
ESRS S2-1 Due diligence
policies on issues addressed by
the fundamental International
Labor Organisation
Conventions 1 to 8, paragraph
19
Delegated Regulation
(EU) 2020/1816, Annex II
Not material
ESRS S2-4 Human rights issues
and incidents connected to its
upstream and downstream
value chain paragraph 36
Indicator number 14
Table #3 of Annex 1
Not material
ESRS S3-1 Human rights policy
commitments paragraph 16
Indicator number 9 Table
#3 of Annex 1 and
Indicator number 11 Table
#1 of Annex 1
Not material
ESRS S3-1 non-respect of
UNGPs on Business and
Human Rights, ILO principles or
and OECD guidelines
paragraph 17
Indicator number 10
Table #1 Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II
Delegated Regulation
(EU) 2020/1818, Art 12
(1)
Not material
ESRS S3-4 Human rights issues
and incidents paragraph 36
Indicator number 14
Table #3 of Annex 1
Not material
ESRS S4-1 Policies related to
consumers and end-users
paragraph 16
Indicator number 9 Table
#3 and Indicator number
11 Table #1 of Annex 1
Policies
related to
consumers
and end-users
[S4-1]
ESRS S4-1 Non-respect of
UNGPs on Business and
Human Rights and OECD
guidelines paragraph 17
Indicator number 10
Table #1 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II
Delegated Regulation
(EU) 2020/1818, Art 12
(1)
Policies
related to
consumers
and end-users
[S4-1]
ESRS S4-4 Human rights issues
and incidents paragraph 35
Indicator number 14
Table #3 of Annex 1
Taking action
on material
impacts on
consumers
and end-users,
and
approaches to
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Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU
Climate
Law
reference
Section
managing
material risks,
pursuing
material
opportunities
related to
consumers
and end-users,
and
effectiveness
of those
actions [S4-4]
ESRS G1-1 United Nations
Convention against Corruption
paragraph 10 (b)
Indicator number 15
Table #3 of Annex 1
Business
conduct
policies and
corporate
culture [G1-1]
ESRS G1-1 Protection of
whistle-blowers paragraph 10
(d)
Indicator number 6 Table
#3 of Annex 1
Business
conduct
policies and
corporate
culture [G1-1]
ESRS G1-4 Fines for violation of
anti-corruption and anti-
bribery laws paragraph 24 (a)
Indicator number 17
Table #3 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex
II)
Incidents of
corruption or
bribery [G1-4]
ESRS G1-4 Standards of anti-
corruption and anti-bribery
paragraph 24 (b)
Indicator number 16
Table #3 of Annex 1
Incidents of
corruption or
bribery [G1-4]
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2. Environmental Information
2.1 Disclosures pursuant to Taxonomy Regulation
Disclosure pursuant to Article 8 of EU of Taxonomy Regulation (Regulation 2020/852)
The EU Taxonomy Regulation (Regulation EU) 2020/852 of the European Parliament and of the Council was adopted in 2020
by the European Parliament and represents an important step for the EU to achieve the Paris Agreement climate neutrality
goals. It sets out the criteria to establish a common classification system for sustainable economic activities. The EU
Taxonomy Regulation determines whether an economic activity is environmentally sustainable and requires financial and
non-financial entities subject to the Non-Financial Reporting Directive (NFRD) to disclose the alignment of their activities.
Article 8 of the Taxonomy Regulation prescribes that undertakings subject to the Non-Financial Reporting Directive (NFRD),
including financial undertakings, publish to what extent their activities are associated with economic activities that qualify
as environmentally sustainable under EU Taxonomy Regulation. Separate disclosures requirements and extensive criteria are
in place for financial and non-financial undertakings under Article 8 of EU Taxonomy Regulation Delegated Act (Commission
Delegated Regulation (EU) 2021/2178.
For the years 2021 and 2022, financial undertakings subject to NFRD were required to disclose the proportion of taxonomy-
eligible and taxonomy non-eligible activities related to the environmental objectives of climate change adaptation (CCA)
and climate change mitigation (CCM).
In 2023, two new Delegated Acts issued by the European Commission were adopted:
●
The Delegated Regulation 2023/2485, which extends the number of eligible activities in the climate change
adaptation and mitigation objectives.
●
The Delegated Regulation 2023/2486, which establishes the technical screening criteria for the economic activities
of the remaining four environmental objectives.
For the current year, in accordance with the requirements of the EU Taxonomy Regulation and related Delegated Acts, this
report includes the alignment of Eurobank’s activities with all six environmental objectives. However, it should be noted that
the alignment data for the four additional environmental objectives presented below, rely on alignment KPIs that non-
financial undertakings have chosen to report on a voluntary basis:
a.
Sustainable use and protection of water and marine resources,
b.
Transition to a circular economy,
c.
Pollution control and prevention, and
d.
Protection and restoration of biodiversity and ecosystems.
This is due to the fact that non-financial undertakings, whose prior-year data forms the basis for Eurobank’s alignment
calculations, are required to report alignment for these objectives starting only from their 2024 disclosures, available in 2025.
In such case, the Group used the "best available data" approach, aligning its reporting methodologies with regulatory
recommendations for handling incomplete or transitional data.
With the gradual adoption of the new Corporate Sustainability Reporting Directive (CSRD) by large companies, small and
medium listed companies and large companies outside the EU with significant activity in the EU, the Group's KPIs are
expected to improve as the number of companies subject to this new directive will increase.
Credit institutions publish the Green Asset Ratio (GAR), which determines the extent to which the Group’s assets finance and
are invested in taxonomy-aligned economic activities, that is the ratio of the Group's taxonomy -aligned assets to covered
assets (total assets excluding exposure to sovereigns, central banks and the trading portfolio). Moreover, as required by the
EU Taxonomy Regulation, activities, to be taxonomy-aligned, must meet the specific taxonomy criteria and ensure that they
cause no significant harm to any of the other environmental objectives (DNSH) and meet minimum social safeguards (MSS).
Additional KPIs are required regarding the off-balance sheet exposures and specifically for financial guarantees to financial
and non-financial undertakings (FinGuar KPI) and assets under management (AuM KPI).
Integration of Taxonomy in the Group’s business strategy, operating model, products and customers
In line with best established practices, the Group has integrated the requirements of the EU Taxonomy Regulation within its
processes with key roles consisting of
●
client engagement in the context of ESG/ Risk Assessment and Sustainable Finance Assessment,
●
establishment and monitoring of sustainability risk and EU Taxonomy -related KPIs to ensure alignment with risk
limits and sustainable financing strategy/targets as well as
●
the development of relevant disclosures.
As part of its Sustainability Strategy, the Group is implementing initiatives that will, among others, enable it to increase the
share of taxonomy-aligned assets in the coming years:
●
Development of sectoral near, mid and long-term financed emissions reduction pathways, in line with science-based
decarbonisation pathways, in alignment with the Group’s Net Zero commitments.
●
Performing perimeter analysis of Taxonomy -related sectors, counterparties and financings affecting the GAR and
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developing action plans for increasing Taxonomy
-aligned financings in the future.
●
Further integrating sustainability risks and sustainable financing considerations in the business planning process
(e.g., project budgeting and prioritisation), to reflect the Group’s business strategy and relevant targets.
Committed to being transparent about its approach and to ensure that decision- making is in line with best practices in
environmental protection and sustainability, Eurobank has developed guiding frameworks, defining the approach and
criteria for classifying its financing and investing activities as sustainable:
The Sustainable Finance Framework
Through its Sustainable Finance Framework (SFF), Eurobank is able to classify sustainable lending solutions offered to its
clients, specifying the applied classification approach and the activities defined as eligible to access sustainable financing.
The purpose of establishing the SFF is to provide a clear and comprehensive methodology for classifying, monitoring, and
reporting sustainable financing in line with the Financed Impact Strategy. The SFF has drawn from international best
practices and is based on two key guiding frameworks: The International Capital Market Association (ICMA) principles on
sustainable financing (Green Bond Principles, Green Loan Principles and Sustainability-linked Bond Principles) and the EU
Taxonomy. Eurobank will closely monitor the developments of the EU Taxonomy, to update its SFF as relevant. The SFF defines
two levels of transaction alignment:
●
SFF alignment - Fulfilment of criteria dictated by established market practice
●
EU Taxonomy alignment - Fulfilment of criteria associated with each of the EU Taxonomy assessment steps
(substantial contribution, DNSH, MSS)
Through the dedicated purpose financing approach (i.e. where the use of proceeds is not known) the Eurobank assesses and
classifies financings / transactions as “Not SFF aligned”, “SFF aligned” or “SFF & EU Taxonomy aligned”.
For general purpose financing / transactions (i.e. where the use of proceeds is not known), the SFF defines two other
approaches:
●
Company Business mix - Financing to companies that fulfil the eligibility green/ social criteria and derive the majority
of their revenues from eligible activities.
●
Sustainability-linked loans - Financing linked to ambitious and predefined Sustainability Performance Targets
(SPTs).
To adequately embed of sustainable financing and the SFF in its practices, the Group has developed governance structures
and functions as well as a digital tool (SFF assessment tool) that facilitate the day-to-day implementation of the SFF.
The SFF assessment tool supports the process of assessing the financings / transactions against the criteria defined in the
SFF and the EU Taxonomy. Through the SFF assessment tool, users categorise financing to the applicable eligible activity
and are guided through the assessment steps which involve substantiating alignment with the criteria of each step, including
Taxonomy alignment assessment (TSC, DNSH criteria, MSS).
Approach for the preparation of disclosures relating to Article 8 of the Taxonomy Regulation
The preparation of mandatory disclosure in taxonomy eligibility and alignment is based on the prudential consolidation for
the Group. The consolidation is in accordance with the supervisory reporting of institutions according to the Commission
Implementing Regulation (EU) 2021/451 (FINREP).
The Group, upon reviewing its business activities, to map Taxonomy reporting requirements with its core activities, provides
the key performance indicators (KPIs) and other disclosure requirements as laid down in the EU Taxonomy Regulation and
the EU Taxon omy Delegated Act.
For 2024, credit institutions shall disclose:
●
The aggregate GAR for covered on-balance sheet assets and the breakdown by environmental objective and by
type of counterparty.
●
The percentage of their total assets that are excluded from the numerator and the denominator of the GAR.
●
A complementary ratio on the level of association with Taxonomy -aligned economic activities of off -balance sheet
exposures. These exposures include financial guarantees granted by the financial institution and assets under
management. As per EU Taxonomy Regulation Delegated Act, the calculation of KPIs for off-balance sheet
exposures shall consider financial guarantees granted by the credit institution and assets under management for
guarantee and investee non-financial undertakings. Other off-balance sheet exposures such as commitments shall
be excluded from that calculation.
The application of the EU Taxonomy differs for general purpose financing and specific purpose financing (i.e. ‘known use of
proceeds’).
General purpose financing
For general purpose financing, the Group uses counterparties’ reported eligibility and alignment information from the latest
published taxonomy information. Specifically for corporate counterparties, the Group uses actual information that has been
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disclosed and collected by its counterparties reporting under NFRD up to the 2023 reporting year and the CSRD from 2023
onwards.
In order to determine which companies are subject to NFRD, an assessment is carried out to determine that all of the
following criteria are met; a) if the country of incorporation of the counterparty is in the EU, and b) whether the counterparty’s
is either a listed company, a credit institution, or an insurance company, and c) whether the entity’s net revenue exceeds
€40m or its total assets exceed €20m and d) the counterparty has over 500 employees.
The identification of counterparties subject to NFRD and counterparties not subject to NFRD has been carried out based on
internal customer segmentation in the core banking systems as well as external information.
The Taxonomy -aligned assets presented include the reported alignment for exposures to non-financial companies subject
to NFRD based on the Turnover and capital expenditure (CapEx) KPI published by the counterparties. The Taxonomy KPI
operating expenses (OpEx) is not used for assessing Taxonomy -aligned activities, in accordance with EU Taxonomy
Regulation Delegated Act For financial undertakings subject to NFRD, the Group’s exposures have been weighted to the
counterparty’s proportion of Taxonomy -aligned assets.
Financial and non-financial undertakings that do not meet the aforementioned requirements are identified as non-subject
to NFRD. Undertakings that are not required to report under the EU Taxonomy regulation (non-NFRD) are not included in the
calculation of eligible and aligned assets since estimations are not allowed in mandatory reporting. Therefore, assets on the
Group’s balance sheet to non-NFRD undertakings are not assessed for taxonomy eligibility. Assets of non-NFRD
counterparties, derivatives, hedge accounting and on-demand interbank loans are not included in the calculation of
Taxonomy -eligible and Taxonomy -aligned assets.
Specific purpose financing
For specific purpose financing where the use of proceeds is known, project-specific KPIs are used in the assessment of
Taxonomy -eligibility and Taxonomy -alignment to the extent that Taxonomy eligibility and Taxonomy alignment can be
demonstrated for the underlying transaction. As part of Eurobank’s Sustainable Finance assessment process, we assess
standalone dedicated purpose financings to evaluate alignment with the EU Taxonomy requirements. The assessment is
carried out, based on available documentary evidence provided by the counterparties, required to ensure adherence to EU
Taxonomy and based on applicable National Legislation in specific financing cases (i.e. Resilience and Recovery Fund
investments, which embed the DNSH assessment).
Other matters
In relation to households, loans collateralised by residential real estate, loans granted for renovation purposes and loans
granted with purpose to finance the purchase of vehicles were assessed for taxonomy-alignment. The Group is also reporting
its exposure to economic activities related to fossil gas and nuclear energy according to Commission Delegated Regulation
(EU) 2022/1214, which amended the EU Taxonomy Delegated Act. Hence, the taxonomy-non-eligible nuclear energy related
activities are included in the denominator of Eurobank’s key performance indicators. The Group also uses the relevant
templates included in the Delegated Act to disclose information for nuclear and fossil gas related activities.
The Group’s approach for the disclosures prepared as of 31 December 2024 reflects its understanding and interpretation of
the EU Taxonomy requirements and is based on the best effort to adhere to the applicable regulations and new regulatory
developments. In accordance with the European Commission guidance published in December 2023 FAQs, no estimates were
included in the calculation of eligibility and alignment for mandatory disclosures presented.
The Group continues its work on implementing the EU taxonomy requirements and further enhancing its reporting
methodology to ensure transparency and completeness of the information disclosed as further robust information becomes
available from counterparties.
Results
The Group’s total GAR based on turnover and total GAR based on CapEx, as at year-end 2024 cover the six climate-related
EU environmental objectives and are presented in the summary below:
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Summary EU Taxonomy KPIs
Million EUROS
Gross carrying
amount
Turnover KPIs
Capex KPIs
Taxonomy -eligible assets
17,868
24.6%
19, 408
26.7%
Taxonomy -aligned assets
1,908
2.6%
2,658
3.7%
Assets
GAR- Covered assets in both numerator and
denominator
29,506
Assets excluded from the numerator for GAR
calculation (covered in the denominator)
43,257
Total GAR assets
72,762
Total assets
102,567
Impairment for loans and advances at amortised cost,
debt instruments and other adjustments, according to
EU taxonomy methodology
(1,417)
Total assets according to the consolidated balance
sheet as at 31 December 2024
101,150
The reported main and additional KPIs calculated on 31 December 2024 for the Group, including the reporting templates as
set out in the EU Taxonomy Regulation, EU Taxonomy Regulation Delegated Act and the European Commission FAQs, are
presented in the Appendix.
Moreover, comparative information for 2023 is also reported, which have been adjusted to reflect newly issued guidance and
interpretations of the existing EU taxonomy Regulation. The adjustments aim to ensure that our disclosures are fully aligned
with the latest regulatory expectations, thereby enhancing the transparency and consistency of our reporting.
2.2
Climate change [E1]
2.2.1
Governance
Integration of sustainability-related performance in incentive schemes [ESRS 2 GOV-3]
Sustainability at Eurobank is deployed across a Sustainability Governance structure that addresses both regulatory
requirements and voluntary commitments. Board oversight with respect to the Sustainability Strategy is addressed through
the inclusion of Sustainability items in the Board Meetings agenda, as per international best practice.
The Group has updated its Governance structure by introducing and defining the roles and responsibilities in relation to
climate change and sustainability risks, embedding regulatory guidelines and market practices. The Group applies the
elements of the three lines of defense model for the management of sustainability risks. The three lines of defense model
enhances risk management and control by clarifying roles and responsibilities within the organisation.
The Group has established a Remuneration Policy that is applicable to all Group employees and covers their total
remuneration. The Remuneration Policy forms an integral part of the Group’s corporate governance practice and is
developed in accordance with its operational model, business strategy, objectives, long-term interests of the Group and
incorporates measures to avoid conflict of interest.
The Remuneration Policy promotes sound and effective risk management and is consistent with the objectives of the Bank’s
business and risk strategy, corporate culture and values, risk culture, with regard sustainability risk factors, including long
term interests of the Group and the measures used to avoid conflicts of interest and should not encourage excessive risk-
taking on behalf of the Group.
The Group ensures that remuneration practices are aligned with their overall risk appetite, taking into account all risks,
including sustainability risks, reputational risks, as well as risks resulting from the mis-selling of products. More specifically,
the Remuneration Policy has been designed in order to:
●
Be consistent with and promote sound and effective risk management.
●
Stimulate behaviours consistent with sustainability risks approach.
●
Comply with the Group’s voluntary commitments.
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For the time being, the remuneration of members of the administrative, management and supervisory bodies is not assessed
against GHG emission reduction targets, and thus no percentage of this year’s remuneration is linked with the achievement
of sustainability targets.
2.2.2
Strategy
Transition plan for climate change mitigation [E1-1]
The Group supports the transition towards a sustainable economy and considers sustainability and addressing climate
change as an opportunity. A key strategic objective is to adapt the Group’s business and operation in a way that addresses
climate change challenges, accommodates social needs within its business model and safeguards prudent governance for
itself and its counterparties, in accordance with supervisory initiatives, and following international standards and best
practice. Following the completion of the onboarding of Hellenic Bank, during 2024, along with the upskilling achieved for
the rest of International subsidiaries, the Group aims to align all entities’ Sustainability Strategies to converge to a Group-
wide Sustainability Strategy in both pillars.
To this end, Eurobank has designed, approved and is currently implementing the Group’s Sustainability Strategy, including
targets and commitments, along two key pillars:
●
Operational Impact Strategy: Impact arising from the Bank’s operational activities and footprint in Greece
●
Financed Impact Strategy: Impact arising from the Bank’s lending and investing activities to specific sectors and
clients
The operational impact strategy defines the operational sustainability priorities and objectives. The strategy is deployed
through milestones and KPIs that support the annual and long-term targets set across multiple project streams, and key
pillars spanning over the next decade. The operational impact strategy is developed and deployed along three pillars, key
pillar of which is the environmental impact which aims at minimizing negative impact of Eurobank’s operations to promote
environmental stewardship with a clear goal to attain climate neutrality.
The underlying target of the environmental impact pillar is the achievement of Net Zero emissions from Eurobank’s operations
by 2033 for Scope 1 & 2 emissions and by 2050 for Scope 3 emissions, with 2019 as the baseline year. Τhe action plan for
achieving this target and tracking the progress against it, is informed by transition pathways that are aligned with the Paris
Agreement target of limiting global warming to 1.5
o
To achieve its operational Net Zero targets, the Bank has identified the following key decarbonisation levers:
●
Promote energy efficiency and self-generation of electricity - Scopes 1 & 2:
o
Action plan to reduce emissions from its operations by optimizing/upgrading the energy efficiency of its
buildings. This includes technical interventions (i.e. LED light fixture installations, minimum energy class of A+
air conditioning and heat recovery ventilation systems) as well as system-level building upgrades and the
replacement of carbon-intensive sources (i.e. heating oil).
o
Energy self-production plan consisting of rooftop photovoltaic (PV) stations installed on Eurobank’s buildings
and standalone PV parks developed on Eurobank property.
o
Increase procurement of electricity sourced by Renewable Energy Sources (guarantees of origin).
●
Electromobility – Scope 1
o
Gradual increase of the share of plug-in/ electric vehicles in Eurobank’s fleet and installation of EV recharging
infrastructure at buildings
●
Minimise business travel – Scope 3
o
Measures to reduce indirect emissions associated with transportation and business travel, where feasible, by
introducing alternative methods such as teleconferencing
●
Transition to cloud – Scopes 2 & 3
o
Initiative for transitioning to cloud computing which will result in the reduction of electricity usage from physical
servers.
The targets that have been in place for the achievement of the operational Net Zero commitment for Scope 1 & 2 by 2033
and for Scope 3 by 2050 commitment are the following:
●
Establish a centralized web -based Platform for energy, emissions and environmental Data by 2025.
●
Implement energy self-production activities:
o
Installation of roof-top PVs on Eurobank buildings by 2024
o
Develop standalone PV parks by 2028
●
Electromobility: >25% of leased vehicles to be EV or hybrid (new contracts) by 2024 and >75% of leased vehicles to
be EV or hybrid (new contracts) by 2028.
●
Calculation of emissions savings due to data centre modernization by 2024
●
Completion of the initiative "Journey to Cloud" by 2025
●
100% of electricity consumed to be originated from RES by 2028
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●
Energy efficiency upgrade of buildings that contribute to Scope 1 & 2 emissions by 2030
●
Increase the number of certified green buildings in Eurobank's building portfolio by 10 by 2030 (baseline 2023)
●
Acknowledge the Acharnes building as a model environmental building by 2025
●
Monitor, certify, disclose and optimize emissions of Scope 1, Scope 2 and Scope 3 Operational in line with regulation
and all applicable categories of GHG Protocol by 2025
●
Carbon credits (nature-based carbon removal projects in line with SBTi) for the entirety of natural gas emissions, up
to 3% of the total Bank emissions (Scope 1 & 2) by 2025
●
Develop Long-term Energy Plan (including self-production and PPA options) by 2025
●
Maintain and update detailed Operational Net Zero Action Plan (SBTi aligned, baseline year 2019) for Scope 1 & 2
(Net-Zero by 2033) and for Scope 3 (Net-Zero by 2050).
The operational Net Zero action plan is complemented by milestones, KPIs, annual targets and long-term interim targets,
serving the declared commitments. Links are established with Transformation streams as well as corresponding ISO
Management System standards, to ensure substantiation and certification of activities, validate target setting and measured
performance, and systematically monitor progress through internal reviews and external assurance.
2024 was the third year of implementation of Eurobank’s operational impact strategy, with the following completed actions
demonstrating progress:
●
Update of the operational Net Zero Roadmap and transition curves with 2023 data, in line with the transition
pathways that are aligned with the Paris Agreement target of limiting global warming to 1.5
o
●
Verified operational carbon footprint for 2023 as per ISO 14064, in line with National Climate Law stipulations.
●
Considerable reduction of 5.04% in purchased electricity consumption, reduction of 10.16% of equivalent Scope 2
emissions and reduction of 13.15% of equivalent Scope 1 &2 emissions (surpassing the 4.7% 2024 target) in 2024,
compared to 2023.
●
97.96% of total electricity consumed in 2024 was sourced from Renewable Energy Sources (certified guarantees of
origin and self-production).
●
94.79% of Eurobank's leased vehicles are plug-in/electric (new contracts), as part of its efforts to accelerate the
complete replacement of its fleet with electric or hybrid vehicles.
●
Additional chargers for electric vehicles were installed in central buildings.
●
Eurobank certified its new Headquarters Building with LEED (Gold) and increased its certified green buildings to 20
(LEED, BREEAM certifications).
●
Photovoltaic (PV) installations have been completed under the Net Metering principle in the Nea Ionia and Acharnes
buildings during 2023, Energy self-production started in May 2024 in N. Ionia complex and in July 2024 in Acharnes
building. Energy self-production of 787.87 MWh from solar panels.
●
In 2024, the environmental licensing process for two PV standalone parks in central Greece was initiated.
●
Completion of Eurobank’s Energy profiling Report in the framework of the development of a long-term energy plan
for Bank’s building portfolio.
The Group recognises that the most significant part of its impact on climate arises from the financing it extends to its clients.
Therefore, the second pillar of its Sustainability Strategy, Financed Impact Strategy, evolves around the following key
components:
●
Sustainable financing: Development of strategies that will promote the green transition of the Group’s clients
through sustainable financing.
●
Portfolio alignment
:
Gradual alignment of the Group’s portfolio with sectoral transition pathways that are aligned
with the 1.5°C climate transition scenario.
●
Net Zero strategy: Sectoral decarbonisation targets covering the Group’s lending portfolios, with phased target-
setting up to 2050.
In line with its commitment to address climate change, the Group has joined the Net-Zero Banking Alliance (NZBA), a bank-
led, UN-convened alliance of banks worldwide, reinforcing its dedication to aligning its lending and investment portfolios
with net-zero emissions by 2050 or sooner, in line with the most ambitious targets set by the Paris Climate Agreement.
As a result, the Group is now taking the next step to identifying and disclosing its first set of sectoral Net Zero targets. In
doing so, it aims to actively support the decarbonisation policy agenda and play a pivotal role in channeling capital flows
towards the transition of key sectors in the short, medium and long-term time horizons. Specifically, the Group has initiated
the process of developing sectoral, financed emissions reduction targets based on the NZBA framework, for some of the most
carbon-intensive and, therefore, most relevant and impactful sectors and portfolios. It approaches its target setting process
on a sector/portfolio basis, to factor in specific elements of the climate transition. It also adheres to proven industry standards
(e.g. NZBA, PCAF) and accredited science-based decarbonisation scenarios, in line with a 1.5
o
C objective by 2050.
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Based on the NZBA framework, the Group has identified its priority, carbon intensive sectors, representing a significant
proportion of its financed emissions, and is developing its 2030 emission reduction targets. The first wave of sector targets
will be finalised within 2025, including phased target setting up to 2050, and operationalization of its Net Zero 2030 targets.
The activity of the Group is part of the EU Paris-aligned Benchmark activities. As part of the Pillar 3 disclosures, the Group
discloses the counterparties in its portfolio that are excluded from the Paris Aligned Benchmark (Consolidated Pillar 3 Report
- 11.4.1 Template 1: Banking book - Climate Change transition risk: Credit quality of exposures by sector, emissions and residual
maturity).
Material impacts, risks and opportunities and their interaction with strategy and business model [ESRS 2 SBM-3]
The Group identifies and assesses sustainability-related risks, including Climate-Related and Environmental risks, within the
context of the Risk Identification and Materiality Assessment (RIMA) process, which is performed at least on an annual basis,
or ad-hoc, if necessary. Through the RIMA process, the Group identifies material risks that could potentially have a significant
adverse impact on its financials, capital base, liquidity position or business model, as well as identifies any possible emerging
risks that the Group might be exposed to. In this context, the Group takes into consideration several different sources to
identify new risks, such as the Single Supervisory Mechanism (SSM), the Supervisory Priorities, the EU & national legislation
changes, developments in the regulatory landscape in general, along with EBA Guideline or Basel Committee on Banking
Supervision (BCBS) reports.
The Group has identified as sustainability risks, the risks deriving from potential loss or negative impact to the Group,
including loss/damage to physical assets, disruption of business or system failures, transition expenditures and reputational
effects from the adverse consequences of climate change and environmental degradation.
As sustainability risks interact with other risks and result in both direct distributional impacts and indirect macroeconomic
impacts, the Group understands that careful consideration of the cross-cutting nature thereof is necessary to ensure the
appropriate implementation of adaptation activities. Thus, the Group considers sustainability risks as drivers of existing risk
types, undertaking a holistic and systemic approach when examining the complex links between sustainability risks and both
financial and non-financial risks. Eurobank has integrated sustainability risks elements into its existing risk management
processes, creating additional procedures, policies and tools so that these risks can be properly identified and measured.
The Group has identified the risk drivers related to climate change and environmental degradation, through internal and
external sources of knowledge, that are most relevant for the business environment in which it operates. In this context, the
Group has identified the following list of climate-related and environmental risk drivers:
Climate-related risks
Transition risk
Financial loss that can result, directly or indirectly, from the
process of adjustment towards a lower-carbon and more
environmentally sustainable economy. This transition may
entail extensive behavioral, policy and regulatory, as well as
technological changes, to address mitigation and
adaptation requirements relating to impacts deriving from
climate change and environmental risks. Depending on the
nature, speed, and focus of these changes, transition risks
may pose varying levels of financial and reputational risk to
organisations
Physical risk
Financial impact of a changing climate, including more
frequent extreme weather events and gradual changes in
climate, as well as the impact of environmental degradation,
such as air, water and land pollution, water stress,
biodiversity loss and deforestation
.
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Behavioural Changes
Behavioral changes of consumers, suppliers, employees and
investors could trigger shifts in supply and demand for
certain commodities, products, services and capital as
climate-related and environmental risks and opportunities
are increasingly taken into account. Changing client or
community perceptions of an organisation’s contribution to
or detraction from the transition to a lower-carbon economy
and developments aimed at halting or reversing damage to
nature, can all result in decreased revenue, changes in the
revenue mix and major capex requirements, while they are
also a potential source of reputational risk for many
corporates.
Acute Hazards
Extreme weather -related events such as storms, floods, fires
or heatwaves and other environmental hazards such as
geologic events or changes in ecosystem equilibria (e.g., soil
pollution) that may damage production/ operation facilities
and disrupt value chains.
Policy & Regulatory Changes
The objectives of policy actions and regulatory requirements
generally fall into two categories:
1.
Policy actions that aim at constraining actions that
contribute to the adverse effects of climate change (e.g.,
implementing carbon-pricing mechanisms to reduce
greenhouse gas emissions, energy use toward lower
emission sources) and environmental degradation (e.g.
restrictions on water consumption levels, ban of certain
environmentally damaging materials/chemicals).
2.
Policy actions that seek to promote adaptation to
climate change (e.g., adopting energy-efficiency
solutions, encouraging greater water efficiency
measures, and promoting more sustainable land-use
practices) and environmental degradation (e.g. more
efficient water management practices).
Both the nature and the timing of policy changes determine
the extent of the associated risk and its subsequent financial
impact. Another important risk is litigation or legal risk. As
the value of loss and damage arising from climate change
and environmental degradation grows, litigation risk is also
likely to increase.
Chronic Hazards
Progressive shifts, such as increasing temperatures, sea level
rise, water stress, biodiversity loss, land use change, habitat
destruction and resource scarcity. This can directly result in,
for example, damage to property or reduced productivity, or
indirectly lead to subsequent events, such as the disruption
of supply chains
Technological Changes
Technological improvements or innovations that support the
transition to a lower-carbon, energy efficient economic
system as well as the substitution of products or services with
a lower / improved impact on nature or reduced dependency
on nature can have a significant impact on organisations, as
different industries may encounter difficulties in adapting to
technology advancements toward greener practices. For
example, the development and use of emerging technologies
such as renewable energy, battery storage, energy efficiency,
and carbon capture and storage will affect certain
organisations, their production and distribution costs, and
ultimately the demand for their products and services from
end users. The timing of technology development and
deployment is also a key uncertainty in assessing technology
risk.
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Environmental Risks
Water Scarcity
Water scarcity is assessed in the context of environmental
risk. However, environmental risk is not further split into
physical and transition hazards at this stage, due to a lack of
appropriate data and the overall early stage of the
corresponding environmental risk management framework;
rather, water scarcity assessment embodies both
components altogether. The analysis for environmental
hazards will resemble the analysis for climate risk going
forward, as the risk environment matures.
Biodiversity Loss
Biodiversity loss as a relevant risk for its operations.
Biodiversity loss is an average loss in biological diversity over
time and/or space that leads to a decline in the ability of the
natural world to generate flows of ecosystem services, with
negative economic impacts on individuals, households,
organisations and countries.
As the global financial sector is increasingly recognising the importance of understanding and managing sustainability risks,
scenario analysis has emerged as a valuable tool for assessing the potential impacts of climate change on financial
institutions.
Scenario analysis enables Eurobank to evaluate its resilience and adaptability in different climate-related scenarios. The
methodological approach adopted allows to measure impacts, based on different scenarios and time horizons (2030, 2040
and 2050). The study aims to enhance Group’s understanding of climate-related risks, inform strategic decision making, and
facilitate the integration of climate considerations into its risk management framework.
The purpose of the scenario analysis is to inform the Group to proactively identify potential vulnerabilities, seize
opportunities, and align its business strategies with the transition to a low-carbon economy. The integration of scenario
analysis, plays a crucial role in shaping its strategy, by providing valuable insights into the potential impacts of climate-
related risks and opportunities on its financial performance and long-term sustainability.
Forward-looking analysis is especially important, but also challenging. Efforts to mitigate and adapt to climate change are
without historical precedent, and many aspects regarding the timing and magnitude of climate change in specific contexts
are uncertain.
The set of scenarios that are utilised by the Group, include four representative scenarios by the Network for Greening the
Financial System (NGFS) and two Representative Concentration Pathways (RCPs) climate scenarios. More specifically, the
scenarios used are:
NGFS scenarios
Representative Concentration Pathways (RCPs)
climate scenarios
1.
Orderly: Net Zero 2050
, where climate policies involve early,
ambitious action and the impacts are low for both physical and
transition Risks
1.
RCP2.6,
policies and limit the increase in average
global temperature to below 2
o
C.
2.
Disorderly:
Delayed Transition
, in which climate policies are not
introduced until 2030 and the outcome has a higher impact on
transition risk.
3.
Hot house word: Current Policies
, with limited climate policies
and severe physical risks and irreversible changes, including
higher sea level
2.
RCP8.5,
implying strong climate changes
and the necessity of strong adaptation to
the new conditions
4.
Too-little-too-late: Fragmented World
, in which delayed and
divergent climate policy ambition globally, leads to elevated
transition risks due to the overall ineffectiveness of the
transition.
The scenario analysis informs the Group’s strategy and decision making. The results which provide a comparison of financial
evolutions by sectors and geographies over a range of scenarios and time horizons, indicate that Group’s strategy remains
adaptive.
2.2.3
Impact, risk and opportunity management
Description of the processes to identify and assess material climate-related impacts, risks and opportunities [ESRS 2 IRO-
1]
Eurobank identifies material impacts, risks, and opportunities related to climate—such as climate change adaptation, climate
change mitigation and energy —through a comprehensive DMA. This approach integrates industry benchmarks, stakeholder
insights, and financial relevance to ensure a robust evaluation of climate-related topics.
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The impacts, risks and opportunities associated with Climate change are displayed in the table below:
Climate change adaptation
Impact
Positive
Actual
Eurobank actively contributes to GHG reduction ambitions and targets, set by the EU,
regulations, central governments, and other bodies, through its sustainable financings and
integration of climate risk in the risk management framework.
Negative
Potential
Eurobank’s business strategy may encompass the continuation of financing to carbon-
intensive sectors.
Risk
The actions required by Eurobank’s clients to address climate change mitigation and
adaptation requirements relating to impacts deriving from climate change may impact
Eurobank’s credit risk.
Opportunity
Meeting climate objectives linked to legal, regulatory and other stakeholders’ requirements
for Eurobank’s clients, entails the opportunity for Eurobank to finance the transition of its
clientele.
Climate change mitigation
Impact
Positive
Actual
Eurobank implements a robust climate change mitigation strategy aiming to minimise the
consequences of climate change for its portfolio.
Negative
Actual
Eurobank’s portfolio faces negative impacts due to the absence of a climate change
mitigation strategy.
Risk
The actions required by Eurobank’s clients to address climate change mitigation and
adaptation requirements relating to impacts deriving from climate change may impact
Eurobank’s credit risk.
Opportunity
Meeting climate objectives linked to legal, regulatory and other stakeholders’ requirements
for Eurobank’s clients, entails the opportunity for Eurobank to finance the transition of its
clientele.
Energy
Impact
Positive
Actual
Eurobank implements measures to reduce energy consumption, leading to enhanced
efficiency in operations.
Negative
Actual
Eurobank contributes to climate change through its in-house operations that contribute
to the release of emissions.
Eurobank has performed an in-depth analysis regarding climate change transition and physical risks within the context of
the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
The analysis aims to enhance Eurobank’s understanding of sustainability risks, inform strategic decision-making, and
facilitate the integration of climate considerations into its risk management framework, as well as to inform Eurobank’s
approach on identifying vulnerabilities, seizing opportunities and aligning business strategies within the context of the Task
Force on Climate-related Financial Disclosures (TCFD) recommendations. Please refer to the latest TCFD report ,
Group’s
“Climate - related & Environmental Risk Report” “4.4 CR&E Risks Scenario Analysis” chapter
.
Transition risk impacts
The Group explored 4 different scenarios (stated in section 2.2.2.) as part of its strategic planning and risk management with
time horizons up to 2050. The overview of horizontal impacts includes the following:
●
Overall, the net impact on the economic activity (GDP) of Greece is found to be small but negative in the long term
in all scenarios examined, compared with Hot House World Scenario. However, changes in the energy system in any
scenario examined do not have any critical impact on the structural growth drivers of the economy hence a stable
economic growth is projected in all scenarios examined.
●
The low ambition scenarios do not have any significant impact in the short term.
●
Positive impacts are brought into the economy mainly through energy efficiency improvements as these are
characterized by high multipliers and domestic content. Energy efficiency improvements mainly addresses the
construction sector (domestic capacity) that is characterized by a high output and employment multiplier. Energy
efficiency improvements also reduce the dependency on imported fossil fuels and on electricity.
●
In the high ambition scenarios, the Greek economy is benefited from reducing its dependency on fossil imports as
gradually its system is fully decarbonized. However increased penetration of RES further burdens the trade balance
as most of the equipment is imported.
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●
The impact on household income is mixed: An increase in employment in high value-added sectors takes place in
order to support the deployment of clean energy technologies. A decrease in employment in brown sectors leads to
skills shortage and increasing unemployment in ages where upskilling – reskilling has low potentials – leading to
long term unemployment. The impacts are highly contrasted among regions within Greece although the net impact
is small.
●
The key sector benefiting in the high ambition scenarios are the power generation utilities. Significant positive
effects on electricity production driven by the electrification of the energy system (despite the energy efficiency
improvements the electrification of the economy is significant – in particular through the electrification of the
transport sector the net demand for electricity increases significantly).
●
Negative impacts are mainly driven by import requirements (assuming that the market share of Greece in clean
energy technologies will not change considerably in the future – significant share of the equipment required to
decarbonize the energy system is imported – PV, wind turbines, electric vehicles, batteries).
Key outcomes from the transition risk scenario analysis include the following:
●
Low ambition scenarios in the short-term have moderate impacts on GDP and sectoral production as carbon prices
do not increase much production costs but also provide a weak signal for investments.
●
Too Little too late and Delayed transition scenarios have marginal virtually zero impact on the short term.
●
Net zero 2050 is projected to have significant contrasted sectoral impacts both in the short and long term.
●
Services are benefited to the extent that they operate supplementary to the deployment of the clean energy
technologies (design, implementation, financing etc.). Services are characterized by low dependency on energy and
openness to trade hence higher energy costs leave the competitiveness of the sector virtually unaffected.
●
The demand of clean technologies increases with positive impact in their production. Biofuels, batteries, PV, energy
saving equipment/ materials and Wind are essential for the decarbonization of the system. Cost maturity achieved
both in the Net Zero 2050 and Delayed Transition Scenarios.
●
The higher carbon price in Emissions Trading Scheme - ETS (incl. the extended ETS, Transport & Services) Net Zero
and Delayed Transition imply negative impact on GHG intensive industries - when not sufficient measures are taken
to mitigate international competitiveness.
Physical risk impacts
Eurobank assesses the physical climate risks related to its clients’ activities following an analytical and transparent
methodological approach, considering both:
●
Chronic effects: impact on companies’ revenue or operating costs due to the long-term changes in weather patterns.
●
Acute effects: damages to companies’ assets or revenue losses attributed to extreme weather events.
To this end, the Group utilises two Climate Scenarios for the analysis of physical impacts, namely
1.
the goals of the Paris Agreement
2.
RCP 8.5, which is a scenario with weak and delayed action for reducing global GHG emissions. It is a “reference” or
worst-case scenario where GHG emissions keep increasing throughout the whole century as it incorporates weak
policies for tackling climate change. In other words, it is associated with hot house world scenarios, with average
temperature increases exceeding 4°C.
Chronic risk effects
The analysis of chronic effects has been performed for 2030, 2040 and 2050 for 13 regions in Greece. The Group utilised
climate indicators that are considered as the drivers of the potential chronic impacts of climate change on the companies of
the respective economic sectors, affecting either their operating costs or their revenues. In the context of the present analysis,
these effects either directly (due to the structure of the climate indicators used) or indirectly (through the input-output tables
of the respective economies or other econometric models) were expressed as percentage changes in the turnover of the
respective businesses. At the final stage of the process, specific thresholds were adopted as regards the estimated losses
due to climate change, with a view the related risks to be characterized as negligible, low, medium, high or very high.
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Sector
2030
2040
2050
Agriculture
High
Very high
Very high
Construction
Negligible
Low
Low
Electricity Supply
Low
Low
Medium
Manufacturing
Low
Low
Low
Oil and Gas
Negligible
Negligible
Negligible
Real estate activities
Negligible
Negligible
Negligible
RES
Negligible
Negligible
Negligible
Transporting and Storage
Low
Low
Low
Water supply
Low
Low
Low
Wholesale and retail
Negligible
Negligible
Negligible
Acute risk effects
During the analysis of acute effects, the Group takes into consideration several extreme phenomena, such as:
●
Fluvial floods (high-water levels in river channels, causing dyke breach)
●
Pluvial floods (rainfall intensity exceeding infiltration capacity)
●
Extreme heat
●
Wildfires
●
Water scarcity
●
Landslides
●
Coastal floods
The quantitative analysis considers three main dimensions:
1.
Climate Hazards
2.
Exposure
3.
Vulnerability
The climate risk attributed to each extreme phenomenon under consideration, is calculated by geographical area and
economic activity as the product of the three indicators formulated to evaluate the abovementioned dimensions. Ultimately,
adopting appropriate thresholds, this climate risk attributed to acute effects is characterized, similarly to chronic effects, as
negligible, low, medium, high, or very high.
Sector
Assessment
Agriculture
Negligible
Construction
Negligible
Electricity Supply
Low
Manufacturing
Negligible
Oil and Gas
Negligible
Real estate activities
Negligible
RES
Negligible
Transporting and Storage
Negligible
Water supply
Low
Wholesale and retail
Negligible
2.2.4
Policies & Actions
Policies related to climate change mitigation and adaptation [E1-2]
Τhe Group has adopted policies to manage material impacts, risks, and opportunities related to climate change mitigation
and adaptation and the environment. Policies affecting internal stakeholders are available to the Group's intranet, while
those referring to external stakeholders, such as the Group's Code of Conduct and Ethics, are available through corporate
website. Eurobank is committed to engaging with stakeholders by ensuring a high level of accountability in policy
development and implementation. Policies are approved by the appropriate Governance bodies such as the Board of
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Directors or specialized committees, which ensure that there is alignment with the Group's strategic goals and stakeholder
interests. The relevant policies are outlined in the below table as per the Minimum Disclosure Requirements with regards to
policies (MDR-P) defined in ESRS 2.
Name of key policy
Addressed key areas of policy
Relevant material identified
impact, risk or opportunity
Operational impact climate change-related policies
Environmental & Energy Management
Systems
- Energy management
- Energy assessment of facilities
- GHG emissions
- Environmental & Energy targets
- Waste management
- Νatural resources management
- Water resources management
Energy
Climate change adaptation
Climate change mitigation
Energy Management Policy Statement
-Energy performance improvement
-Renewable energy deployment
-Regulatory compliance
Energy
Climate change adaptation
Climate change mitigation
GHG emissions Inventory Report
- Energy management
- GHG emissions
- Operational GHG emissions
- Operational Net Zero
Energy
Climate change adaptation
Climate change mitigation
Environmental Report
-Energy management
-Operational GHG emissions
-Operational Net Zero
-Water consumption
-Solid Waste Management and Recycling
-Noise
Energy
Climate change adaptation
Climate change mitigation
Water Management Policy Statement
- Water resources management
- Water consumption
-
Environmental Policy Statement
-Energy management
-Climate change adaptation
-Climate change mitigation
-Impact of activities
Energy
Climate change adaptation
Climate change mitigation
Financed impact climate change-related policies
Sustainable Finance Framework
-Renewable energy deployment
-Climate change adaptation
-Climate change mitigation
Climate change adaptation
Climate change mitigation
Sustainable Investment Framework
-Renewable energy deployment
-Climate change adaptation
-Climate change mitigation
Climate change adaptation
Climate change mitigation
Green Bond Framework
-Energy efficiency
-Renewable energy deployment
-Climate change adaptation
-Climate change mitigation
Climate change adaptation
Climate change mitigation
Sustainability Risk Management Policy
-Climate change adaptation
-Climate change mitigation
Climate change adaptation
Climate change mitigation
Climate Risk Stress Test Framework.
-Climate change adaptation
-Climate change mitigation
Climate change adaptation
Climate change mitigation
Group Environmental & Social Policy
-Climate change adaptation
-Climate change mitigation
Climate change adaptation
Climate change mitigation
Eurobank recognises the interdependency between impacts on the environment, as well as the risks and opportunities they
present. As such, we have implemented policies that cover several material sustainability matters, including matters
addressed by more than one topical ESRS. The following policies address more than one sustainability matter.
The overarching
Sustainability Policy Framework
requirements and voluntary initiatives as well as adopted standards and guidelines enabling Eurobank’s contemporary and
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continuously updated approach towards Sustainability, in line with international best practices. The Sustainability Policy
Framework sets the foundation towards integration of Sustainability into Eurobank’s business model and operations.
The subject matter of the operational impact policies is outlined below:
The
Environmental & Energy Management
Systems outline how the various Environment and Energy policies of Eurobank
interact, as well as environmental management practices, responsibilities and targets. These ISO certified Management
Systems cover waste, natural resources, water and energy systems management, GHG emissions, environmental and energy
targets, obligations compliance, training and staff awareness of Eurobank’s operations and upstream and downstream value
chain. Eurobank monitors and reviews the information related to interested parties and stakeholders and their related
requirements, defining a specific cooperation framework and communication method for each case. Accountable for the
continuing suitability, adequacy and effectiveness of the Environmental, Energy and other Sustainability-related ISO
Management Systems are the Sustainability Management Committee, the Environmental System Manager, the
Environmental Coordinators and the Building Administrators.
The
Environmental Policy Statement
natural resources, mitigating its environmental impact, adapting to climate change, protecting biodiversity and ecosystems,
and preventing waste pollution.
The
Energy Management Policy Statement
outlines its commitment to responsible energy management across all its
facilities, including branches and administration buildings. Key objectives include the continuous improvement of the energy
performance and the Energy Management System (EnMS), providing the information and resources needed to achieve the
goals and energy objectives, and ensuring compliance with applicable legal/regulatory requirements, and other
commitments of the Bank regarding energy use, energy consumption and energy efficiency. Eurobank aims to streamline the
energy use by minimising the energy costs, the environmental impacts, and fossil fuel use, while promoting renewable energy
sources and maintaining business/operational goals and a suitable working environment for its employees. The policy applies
across Eurobank's operations, focusing on enhancing energy efficiency and supporting the use of energy-efficient equipment.
It is backed by top management, which is responsible for providing resources to implement and improve energy performance.
The
Water Management Policy Statement
the optimal use of natural resources as part of the overall Environmental culture.
The
Environmental Report
includes an overview of environmental management system and an analysis of environmental
performance. This report covers the operating context, the environmental legislation, targets and performance and personnel
training. The Report applies across Eurobank's operations, focusing on communicating about energy performance and
setting targets. Eurobank recognises the importance of engaging in close collaboration and promoting dialogue with all
stakeholders, both natural and legal entities. Accountable for the implementation of the Report are the Sustainability
Management Committee, chaired by the Deputy Chief Executive Officer, Group Chief Operating Officer (CΟΟ) &
International Activities.
The
GHG emissions Inventory Report
the calculation of the Bank’s greenhouse gas (GHG) emissions for all its facilities in Greece. It covers 100% of its operations
and has been prepared in accordance with the requirements of the ISO 14064-1:2018 standard.
To follow these policies, the Bank applies certified management systems, in accordance with international standards, such
as an Environmental Management System (ISO 14001, EMAS) and an Energy Management System (ISO 50001). Through these
certified management systems, it monitors its performance and minimises its carbon footprint.
The subject matter of selected financed impact policies is outlined below:
The
Sustainable Finance Framework
the applied classification approach and the activities defined as eligible to access sustainable financing (eligible green and
social assets). The SFF scope encompasses a wide range of sustainable lending products, covering both corporate and retail
banking portfolios. The purpose of establishing the SFF is to provide a clear and comprehensive methodology for classifying,
monitoring and reporting sustainable financing. Eurobank has drawn on internationally recognised industry guidelines and
principles for the development of the SFF and is fully committed to being transparent about its sustainability approach. The
Group Senior Sustainability Officer (GSSO) holds the highest level of accountability for the implementation and oversight of
the policy within the organisation.
The
Sustainable Investment Framework
ensuring alignment with long-term sustainability goals. Its scope includes both direct and indirect investments across all
sectors, regions, and value chains, with exclusions in areas such as high-risk fossil fuels and activities detrimental to
biodiversity or human rights. The policy applies to all stakeholders involved in the investment process. Accountability for its
implementation lies with the organisation's Group Senior Sustainability Officer (GSSO).
The
Green Bond Framework
sustainable projects that contribute to climate change mitigation and other environmental goals. Its general objectives
include promoting green investments, while ensuring transparency and accountability in the use of proceeds. The scope of
the framework covers both upstream and downstream activities related to eligible projects, across global geographies, with
exclusions for projects involving fossil fuels, or other environmentally harmful practices. Accountability for its implementation
lies with the organisation's Group Senior Sustainability Officer (GSSO).
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The purpose of the
Sustainability Risk Management Policy
is to provide an overview and a common understanding of
Group’s main governance arrangements, as well as tasks performed by the Group Sustainability Risk (GSR) unit, in the
context of Group’s overall Sustainability risks management activities. This policy additionally covers Group’s main
Sustainability risks management pillars, lists the key responsibilities of GSR for the development and implementation of the
Sustainability risk framework and describes the quantitative and qualitative sustainability risks measurement methodologies.
Ongoing dialogue with the Group’s relevant stakeholders, as well as close monitoring of the regulatory framework and best
market practices, ensure the establishment of a well-defined and robust Sustainability Risk Management Policy. Accountable
for the implementation of the policy is GSR and the policy is approved by Management Risk Committee and Board Risk
Committee.
The
Group Climate Risk Stress Test (CRST) Framework
minimum requirements for designing, executing, approving, and applying the climate risk stress test. The Framework provides
a transparent and repeatable process for designing and executing the climate risk stress test, as well as for reporting and
evaluating stress test outcomes and determining management actions. The CRST Framework has been developed as per the
overall Stress Testing Policy of the Group, also taking into account the provisions of the ECB Guide on climate-related and
environmental risks and the requirements of the 2022 ECB Climate Risk Stress Test. Additionally, the Framework complies
with other best practices and supervisory requirements, such as the EBA Guidelines on institutions’ stress testing
(EBA/GL/2018/04).
The
Group has developed an
Environmental and Social Policy
requirements for managing environmental and social issues. Through the Environmental and Social Policy, the Group
achieves and maintains compliance with existing national and international environmental and social legislation/regulations,
as well as with its commitments, through a standardised Environmental and Social (E&S) assessment approach. Furthermore,
the objective of the Policy is, inter alia, to ensure timely and accurate reporting to the European Bank for Reconstruction and
Development (EBRD) concerning the management of the Group ESMS (Environmental and Social Management System).
As part of its Environmental and Social Policy, Eurobank maintains a list of activities that are excluded from financing, in line
with the exclusion lists of the EBRD. For all financing transactions, the Group ensures that its clients demonstrate an organised
and systematic approach to E&S risk management that complies with applicable local, national and international
environmental, health and safety, and labour legislation and standards, relevant permits, as well as public disclosure
requirements.
The material impacts, risks and opportunities that the policies are related to are referenced above in the table.
Actions and resources in relation to climate change policies [E1-3]
As climate change has become a key threat for the planet and its population, the Group has taken on an active role, with
actions that benefit the environment, for this generation and the generations to come. To this end, the Group’s Sustainability
Strategy entails commitments to achieve Net Zero both for its physical operations as well as its portfolio through sustainable
financing activities.
The actions taken in Eurobank Group in Greece as a result of the Eurobank’s Operational Impact Strategy for achieving Net
Zero operational impact for Scope 1 & 2 by 2033 and for Scope 3 by 2050, by decarbonization lever, are the following:
●
Promote energy efficiency and self-generation of electricity (Reduction of Scope 1 & 2 emissions)
o
Action plan to reduce emissions from its operations by optimizing/upgrading the energy efficiency of its
buildings. This includes technical interventions (i.e. LED light fixture installations, minimum energy class of A+
air conditioning and heat recovery ventilation systems) as well as system-level building upgrades and the
replacement of carbon-intensive sources (i.e. heating oil).
o
Energy self-production plan consisting of rooftop photovoltaic (PV) stations installed on Eurobank’s buildings
and standalone PV parks developed on Eurobank property. In 2023, 1,203 PV panels were installed on the roof
of the Nea Ionia complex and 376 PV panels were installed on the roof of the Acharnes building. In 2024, the
self-production of energy from the two rooftop PV stations started. Specifically, the energy self-production
started in May 2024 in N.Ionia complex and in July 2024 in Acharnes building. The amount of energy produced
from the rooftop PV stations for 2024 is 647.35 MWh for N.Ionia and 140.52 MWh for Acharnes . In 2024, the
environmental licencing process for two standalone PV parks in central Greece was initiated. The approval of
environmental terms and the application for grid connectivity are expected to be completed within 2025.
o
Increase procurement of electricity sourced by Renewable Energy Sources (guarantees of origin)
Eurobank’s actions regarding the climate change, are strategically adapted and deployed across our subsidiaries in
Bulgaria, Cyprus, and Luxembourg. For example, actions such as the upgrade of branch offices, LED lighting and
installation of latest generation of HVAC system are implemented. Similar actions are tailored to address the specific
local contexts and regulatory environments, they remain firmly aligned with our overarching corporate sustainability
objectives.
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As part of the EnMS, Eurobank communicates the "energy identity" of its branches on a semiannual basis. The
evaluation of each branch's performance is accomplished by utilising the following:
o
Ranking of the branches in ascending order considering the total energy consumption and normalized energy
consumption values using the branches surface area and the heating and cooling degree days, in order to take
the impact of meteorological conditions on the energy needs for heating and cooling.
o
The annual change in energy consumption in total and normalized values by surface area. The absolute and
percentage variation in energy consumption per surface area in relation to the average index for all branches.
In addition, through the EnMS, monitoring and analysis of energy consumption are conducted with the objective of
implementing necessary technical interventions and management solutions. This process follows a structured
methodology that involves documenting the expected enhancements in energy performance. To facilitate this,
Eurobank collaborates with an Energy Services Company (ESCO) under a "Shared Benefit Energy Performance
Contract" model, which operates on the "Pay as you save" principle.
Eurobank’s objective is the gradual energy upgrade of its real-estate portfolio and issuance of green building
certifications, aiming to reduce its environmental footprint. It is shifting towards high-end, modern, environmentally
friendly buildings, given that such demonstrate increased marketability and market resilience as well as multiple
environmental and social benefits. The Bank is already upgrading prime assets into energy-efficient green buildings,
focusing on continuous improvement towards sustainable development. Eurobank has chosen green building
certifications (LEED, BREEAM, EDGE), aiming to validate the sustainability value of its assets and to demonstrate its
sustainability performance.
Within 2024, the new Headquarters building (Omirou & Stadiou) has been certified with LEED Gold (Leadership in
Energy & Environmental Design) and increased the Bank’s certified green buildings to 20 (LEED, BREEAM
certifications). Certified properties have been included in the 2023 SBC Yearbook for Green Buildings.
Green buildings usually encompass multiple nature -based characteristics fostering the sustainable transformation
of the built environment and enhancing the resiliency of the asset itself. Location and land use play a significant role
in creating sustainable buildings improving access to low-carbon transportation options, while encouraging
walkability and reducing dependence on driving. Biodiversity is also crucial for the health and wellbeing of people
and our planet. Green buildings promote the protection of natural habitats, encourage the use of biodiverse native
plants and green infrastructure, and minimise the impact of construction on ecosystems. Efficient utilisation of
resources water is essential due to its finite nature, and green buildings play a crucial role in preserving and
protecting this invaluable resource. More specifically, encourage a holistic approach to building water systems,
promoting not only water-efficient strategies, but also reuse through alternative sources, improved management,
and potable water quality considerations.
As of December 2023, the Eurobank Headquarters were relocated to a new building in the Athens city centre, on
Omirou and Stadiou Street. The high functional standards and bioclimatic features of the Eurobank Headquarters
significantly improve the environmental impact compared to the previous Headquarters: The 2024 performance of
the new Headquarters compared to the previous Headquarters is: reduction of GHG emissions at 59.30% (374.18
tCO
2
e), reduction of electricity consumption at 56.48% (667,385 kWh ) and reduction of energy intensity (per
employee) at 13.51% .
●
Electromobility (Reduction of Scope 1 emissions)
Gradual increase of the share of plug-in /electric vehicles in Eurobank’s fleet and installation of EV recharging
infrastructure at Eurobank’s buildings.
●
Minimise business travel (Reduction of Scope 3 emissions)
Measures to reduce indirect emissions associated with transportation and business travel, where feasible, by
introducing alternative methods such as teleconferencing.
●
Transition to cloud (Reduction of Scope 2&3 emissions)
Initiative for transitioning to cloud computing which will result in the reduction of electricity usage from physical
servers.
●
Management Systems & Buildings – Scopes 1, 2, 3
Eurobank applies certified ISO Management Systems, in accordance with international standards, such as an
Environmental Management System (ISO 14001, EMAS) and an Energy Management System (ISO 50001) with the
purpose of responsible energy management in all the Bank’s facilities (all administration buildings / branches,
covering 100% of its operations). Implementing these systems has led to significant reductions in energy consumption
and greenhouse gas emissions. This aims to minimise energy costs, the environmental impact of harmful greenhouse
gas emissions and fossil fuel depletion.
Eurobank has verified its greenhouse gas (GHG) emissions in compliance with ISO 14064-1, which provides a framework for
quantifying and reporting GHG emissions and removals.
By implementing these initiatives, the Bank achieved 5.04% reduction in purchased electricity consumption, 37.72% reduction
in Scope 1 emissions, 10.16% reduction in Scope 2 emissions and 13.15% reduction in Scope 1 & 2 emissions (surpassing the
4.7% 2024 target in 2024, compared to 2023).
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In order to achieve its Net-Zero operational impact targets, the Bank’s planned initiatives are the following:
●
Maintain and update detailed Operational Net Zero Action Plan - SBTi aligned (baseline year 2019) for Scope 1 & 2
(Net-Zero by 2033) and for Scope 3 (Net-Zero by 2050).
●
Implement energy self-production activities. Energy self-production from rooftop PV stations has already started
during 2024 in N.Ionia and Acharnes buildings, while the procedure for the development of standalone PV Parks is
in progress (long-term target: Energy self-production from standalone PV Parks by 2028).
●
Increase electromobility for Eurobank’s leased vehicles (new contracts)
●
Completion of the initiative “Journey to Cloud” by 2025
●
Attain emissions savings due to data centre modernisation
●
Attain 100% of electricity consumed to be originated from RES by 2028
●
Perform energy upgrade of buildings
●
Achieve green building certifications
●
Carbon credits (nature-based carbon removal projects in line with SBTi) for the entirety of natural gas emissions, up
to 3% of the total Bank emissions (Scope 1, 2) by 2025
●
Design long-term Energy Plan. In 2024, Eurobank’s energy profiling report was completed.
Specifically for 2025, in the context of its EMS and based on energy consumption metrics, Eurobank plans to perform the
following technical energy saving actions, to achieve its energy saving targets:
●
Continuation of the following actions at all the Eurobank Group’s new branches and office spaces in Greece, as well
as all areas where extensive refurbishment works are implemented:
o
installation of new LED technology light fixtures
o
installation of VRF air conditioning systems and autonomous air-conditioning units, as well as installation of
air-cooled water air-conditioning systems, with a minimum energy class of A+.
o
installation of a heat recovery ventilation system.
●
Energy audits as part of renovation works by engineers in the Technical Projects Unit.
●
The environmental licensing of standalone photovoltaic parks is in progress and during 2025 the decision regarding
the approval of environmental terms and the application for grid connectivity is expected to be completed.
The Group has integrated its Financed Impact Strategy into its operations and has made significant progress towards
achieving its targets.
1.
Operationalized its Sustainable Finance Framework
The Group has developed governance structures, processes and tools that integrate identifying sustainable financing
opportunities, engaging with clients on sustainable financing offerings and the evaluating financings against the criteria of
the SFF into the day-to-day operations. It has, therefore, increased its capacity to deliver its sustainable financing targets.
Key elements include the introduction of dedicated roles for guiding relationship managers in engaging with clients on
sustainable financing as part of the loan origination processes, as well as an automated tool that underpins the classification
and evaluation of financings against the approaches and criteria of the SFF.
It has extended the sustainable financing approach to its retail business banking, leveraging co-financing programmes
focusing on sustainability, as well as introducing dedicated products tailored to meet specific market needs
2.
Enhanced its capabilities for the collection of sustainability risk data
The Group is continuously enhancing its capabilities for the collection of Sustainability risk data, through integration of
additional information requirements in the credit process, as well as cooperating with third-party data providers. It has
implemented a set of tools for identifying, measuring and managing sustainability risks, including the credit granting and
monitoring processes.
These are used by the involved Units across the Group’s both 1st and 2nd lines, with the relevant tasks being performed in a
collaborative and efficient way. Having already performed an assessment of sustainability data availability in its internal
systems against regulatory requirements / expectations, the Group continues to enhance its sustainability risk data
aggregation capabilities and IT infrastructure accordingly, while also using appropriate controls and safeguards to ensure
the accuracy and completeness of the compiled information. The Group seeks to further improve environmental risk data
granularity, through the allocation of detailed roles and responsibilities for the purposes of sustainability data management
and addressing identified data needs (i.e., engagement with external data providers, development of methodological
approaches for the estimation of required information).
3.
Intensified engagement with its counterparties on sustainability risk mitigation
Aiming to facilitate the green transition of its clients, the Group has developed a dedicated approach to increase client
engagement and awareness regarding environmental risks. Besides the initiatives launched aiming to build sustainability
literacy and capacity among its clients (e.g. online events, articles and webinars, digital academy for businesses), the Group
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also uses tools to engage with its counterparties in the context of its credit granting and asset management activities, so as
to understand their strategies and mitigate their sustainability risks exposures.
4.
Introduced sustainable products
Eurobank has developed multiple products that aim to stimulate sustainable growth, including Renewable Energy Systems
(RES) investments, energy saving programmes for residential buildings, and debt restructuring programmes for vulnerable
groups. Going forward, it plans to further develop additional products dedicated to promoting sustainable practices for the
Retail portfolio.
5.
Achieved the sustainable financing targets set as part of its financed impact strategy
For the third consecutive year, Eurobank achieved the sustainable financing targets related to its corporate portfolio, set as
part of its Financed Impact Strategy. New SFF-aligned annual disbursements exceeded the 20% target of total corporate
disbursements, while corporate sustainable exposures increased from €2.18 billion in 2023 to €2.98 billion in 2024, posting a
37% year-on-year growth.
More information on the Group’s actions on climate change related matters are detailed in the chapters “Sustainable
financing and investment offerings” and “Integration of sustainability in risk management”.
2.2.5
Metrics & Targets
Targets related to climate change mitigation and adaptation [E1-4]
Through its Sustainability Strategy, the Group’s overarching climate-related target for its operational impact is to achieve
Net Zero emissions by 2033 for Scope 1 & 2 and by 2050 for Scope 3. The interim targets supporting the Net Zero commitment
are the following:
Reduction in Electricity Consumption and Greenhouse Gas Emissions – Operations in the Bank
Performance
2023
Target
2024 (%)
Target
value 2024
Performance
2024
Change (%)
Status
Target
2025 (%)
Target
value 2025
Reduction in
purchased
electricity
consumption
(ΜWh)
34,721
-5%
32,985
32,971
-5.04%
Target
achieved
-2%
(1)
33,070
(1)
Reduction of
Indirect GHG
Emissions Scope 1
& 2 (tCO
2
e)
20,807
-4.67%
19,835
18,070
-13.15%
Target
achieved
-2%
17,708
(1
)
The target of 2025 regarding -2% reduction in electricity consumption concerns the total amount of electricity consumption including purchased
and self-generated electricity (amounted to 33,745 MWh in 2024)
The targets concern all Bank’s office buildings and branches and cover 100% of its operations. As presented above, during
2024 the electricity consumption and Scope 1 & 2 emissions have been reduced and the targets set for reduction of purchased
electricity consumption and of Scope 1 & 2 emissions for 2024 have been achieved.
The Bank’s Financed Impact Strategy evolves based on the following key components:
Portfolio alignment
Gradual alignment of the Group’s portfolio with sectoral transition pathways that are aligned with the 1.5°C climate
transition scenario.
●
Net zero strategy
Sectoral decarbonisation targets covering the Group’s lending portfolios, with phased target-setting up to 2050.
The Group recognises that the most significant part of its impact on climate arises from the financing it extends to its
clients. Therefore, following its baselining exercise for 2022 – the most complete and comprehensive emissions
measurement it has achieved so far – it is now taking the next step to identifying and disclosing its first set of sectoral
Net Zero targets. In doing so, it aims to actively support the decarbonisation policy agenda and play a pivotal role in
channeling capital flows towards the transition of key sectors in the short-, medium - and long-term. Specifically, the
Group has initiated the process of developing sectoral, financed emissions reduction targets based on the NZBA
framework, for some of the most carbon intensive and, therefore, most relevant and impactful sectors and portfolios. It
approaches its target setting process on a sector/portfolio basis, to factor in specific elements of the climate transition.
It also adheres to proven industry standards (e.g. NZBA, PCAF) and accredited science-based decarbonisation
scenarios, in line with a 1.5 degree Celsius objective by 2050.
Notably, the Group, in line with its commitment to address climate change, has joined the NZBA, in order to reinforce
its dedication to aligning its lending and investment portfolios with net-zero emissions by 2050 or sooner, in line with
the most ambitious targets set by the Paris Climate Agreement. The Group is proud to join leading peers from the
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banking industry in its effort to reach net zero emissions by 2050 and looks forward to engaging with its clients to
support their transition plans. Even though its operational carbon footprint is very limited compared to its financed
emissions, it is also setting reduction targets for operational emissions under its sphere of direct control. Its target
setting approach builds on an overarching framework that has been guiding its analysis and decisions.
Based on the NZBA framework, the group has identified its priority, carbon intensive sectors, representing a significant
proportion of its financed emissions, and is developing its 2030 emission reduction targets.
●
Sustainable financing
Development of strategies that will promote the green transition of the Group’s clients through sustainable financing.
The Group’s strategic approach is to support the green transition efforts of its clients through direct financing and
advisory solutions for capital raising to current and potential clientele. To this end, the Eurobank S.A.’s sustainable
financing targets for Greece are the following:
●
Portfolio targets:
o
€2 billion in new green disbursements to businesses by 2025 from a 2022 baseline
o
20% of the annual new corporate disbursements to be classified as Green / Environmentally sustainable
o
20% stock of green exposures by 2027 for the Corporate portfolio.
o
Mobilise €2.25 billion total green RRF funds in the Greek economy by 2026.
o
No new investments in fixed income securities (excluding exposures in Sustainability / Green Bonds) towards
the top 20 most carbon-intensive corporates worldwide.
●
Sectoral targets:
o
35% of new disbursements in the Energy sector to be directed to RES financing.
o
80% of new disbursements related to construction of new buildings (CIB portfolio) to be allocated with EPC A
and above
o
20% of new disbursements related to mortgage loans (excluding "My Home") to be allocated with EPC B+ and
above
o
Maintain the same growth in absolute terms for Retail Banking new green disbursements (or more than 50%
increase vs. 2023).
Performance against financed impact targets is presented in the chapter “Sustainable financing and investment offerings”.
Following the completion of the onboarding of Hellenic Bank, during 2024, along with the upskilling achieved for the rest of
International subsidiaries, the Group aims to align all entities’ Sustainability Strategies to converge to a Group-wide
Sustainability Strategy in both pillars.
Energy consumption & mix [E1-5]
According to the energy review conducted in the context of the EnMS implementation, the Energy consumption at Eurobank
occurs from:
●
Burning of natural gas and oil for heating
●
The use of diesel and -petrol by vehicles used for transporting materials between its buildings within Attica,
●
The use of electricity for the organisation’s operations.
The table below outlines the total energy consumed by the Group’s operations, along with the breakdown of the energy
sources used, including the share of renewable and non-renewable energy. By sharing this information, The Group aims to
provide a clearer understanding of its efforts to manage energy usage, reduce carbon emissions, and transition to more
sustainable energy practices in line with its broader environmental goals. The table below details the Group’s energy
consumption and mix for the reporting period.
Unit
2024
Total energy consumption and mix (including purchased or acquired electricity, heat, steam, and cooling from fossil
sources)
(1) Fuel consumption from coal and coal products
MWh
0
(2) Fuel consumption from crude oil and petroleum products
MWh
5,450
2.1 Fuel consumption from petrol
MWh
2,922
2.2. Fuel consumption from diesel
MWh
2,243
2.3. Fuel consumption from LPG (Liquefied Petroleum Gas)
MWh
171
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Unit
2024
Total energy consumption and mix (including purchased or acquired electricity, heat, steam, and cooling from fossil
sources)
2.4 Fuel consumption from heating oil
MWh
113
2.5 Fuel consumption from other crude oil and petroleum products
MWh
0
(3) Fuel consumption from natural gas
MWh
3,457
3.1 Fuel consumption from natural gas
MWh
3,457
3.3 Fuel consumption from CNG (Compressed Natural Gas)
MWh
0
(4) Fuel consumption from other fossil sources
MWh
0
(5) Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil
sources
MWh
14,522
(6) Total energy consumption from fossil sources
MWh
23,428
Share of fossil sources in total energy consumption
%
36%
(7) Total energy consumption from nuclear sources
MWh
4,862
Share of consumption from nuclear sources in total energy consumption
%
7%
(8) Fuel consumption from renewable sources, including biomass (also comprising industrial and
municipal waste of biologic origin), biofuels, biogas, renewable hydrogen, etc.
MWh
0
(9) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable
sources
MWh
35,904
(10) The consumption of self-generated non-fuel renewable energy
MWh
1,455
(11) Total renewable energy consumption
MWh
37,359
Share of renewable sources in total energy consumption
%
57%
Total energy consumption
MWh
65,649
In 2024 the Group’s total energy consumption reached 65,649 MWh. Renewable energy consumption accounted for 37,359
MWh, which represents 57% of the total energy consumption, while 4,862 MWh (7%) was from nuclear sources (coming from
Bulgaria’s national energy mix) and the remaining 36% was consumed from fossil sources. This substantial sourcing of
renewable energy underscores The Group’s dedication to reducing its carbon footprint and advancing its sustainability
initiatives and will be the key driver for achieving annual reductions in the coming years.
The above consumptions have been based on actual consumption data for a 10-month period of 2024, while for the
remaining 2 months where actual data were not available, due to timing constraints, consumptions were extrapolated based
on the same period previous years. Actual consumption data for the Bank have been verified according to ISO 14064-1 while
the estimation methodolog y has been validated according to ISO14064-2 by an independent certification body
Energy self-production is a crucial element of Eurobank’s journey towards Operational Net Zero. The relevant project stream
of the Operational Impact Strategy includes 2 distinct self-production initiatives:
●
Rooftop photovoltaic (PV) stations installed on Eurobank buildings.
●
Standalone PV parks developed on Eurobank property.
These initiatives are implemented as cross-unit projects with the support of dedicated consultants and with regular updates
to Senior Management. The energy and emission benefits of these projects are calculated in the Operational Net Zero
transition path to carbon neutrality for Scope 1 & 2 by 2033, per the respective commitments of Eurobank.
Furthermore, the Group has produced 1,482 MWh of energy. from renewable sources. This includes energy produced from PV
panels in Group’s operations in Greece, Bulgaria, and Cyprus.
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Gross Scopes 1, 2, 3 and Total GHG emissions [E1-6]
Eurobank is committed to reducing its environmental footprint and actively contributes to the reduction of greenhouse gas
emissions. As part of this effort, the Bank closely monitors its operational emissions through the implementation of a certified
Energy Management System (EnMS) in accordance with the ISO 50001 standard.
In addition, the Bank applies the International Standard ISO 14064-1:2018 for the quantification and reporting of greenhouse
gas emissions (Category 1-6) as well as GHG removals. The pertinent correspondence with the International Standard “GHG
Protocol Corporate Accounting and Reporting Standard” (Scope 1, 2 & 3) is also mentioned.
In this context, energy consumption is recorded and allocated as well as the direct and indirect greenhouse gas emissions
are calculated.
Direct emissions (Scope 1) resulting from the Group’s operations reflect GHG emissions released by burning oil and natural
gas to heat buildings (Direct emissions from stationary combustion), the use of diesel and petrol by the Group owned and
leased vehicles, the petrol used to power the generators (Direct emissions from mobile combustion) and the fugitive emissions
from the Group’s air conditioning systems and the automatic extinguishing systems (Direct fugitive emissions from the
release of GHGs in anthropogenic systems).
Indirect emissions are those released by the consumption of electricity (Scope 2) as well as other indirect emissions (Scope
3) associated with employee business trips (air travel and hotel stay) and employee commuting, waste management,
emissions from transportation and distribution of goods, capital goods, purchased good and services, emissions from fuel
and energy related activities and emissions from cloud computing usage have also been included.
When a new category is added, the amount for that category is added to the previous year to normalise the baselines for
comparison reasons. The emissions from new categories will also be included in the operational Net Zero for Scope 1 & 2 by
2033 and for Scope 3 by 2050 project, according to the SBTi methodology.
As per emissions, the Eurobank Group in Greece utilises emissions conversion coefficients from National Inventory Report
(NIR) Greece -2024, Renewable Energy Sources Operator & Guarantees of Origin (DAPEEP SA), Department for Environment,
Food & Rural Affa irs (UK- DEFRA) (full set, version 1.0 of 2024), EXIOBASE (2019 emission factors for Greece), BEIS (2021 and
2024 emission factors , Greenview (2022 emission factors), EPA database (2022 emission factors) and Global Warming
Potential (GWP) (2022 emission factors), as needed for each specific case.
The Bank verifies the above greenhouse gas (GHG) emissions in compliance with ISO 14064-1, which provides a framework
for quantifying and reporting GHG emissions and removals.
The table below demonstrates the breakdown of the Group’s Scope 1,2,3 emissions:
Total Scope 1,2,3 emissions
Breakdown of Greenhouse Gas emissions
2024
Gross Scope 1 GHG emissions (tCO
2
e)
3,421
Percentage of Scope 1 GHG emissions from regulated emission trading schemes
(%)
0%
Gross location-based Scope 2 GHG emissions (tCO
2
e)
27,664
Gross market-based Scope 2 GHG emissions (tCO
2
e)
11,050
Total Gross indirect
(2)
2
e)
75,301
1 Purchased goods and services
37,364
Cloud computing and data centre services
206.54
2 Capital goods
23,420
3 Fuel and energy-related Activities (not included in Scope1 or Scope 2)
5,924
4 Upstream transportation and distribution
604
5 Waste generated in operations
550
6 Business traveling
310
7 Employee commuting
7,127
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Breakdown of Greenhouse Gas emissions
2024
8 Upstream leased assets
0
9 Downstream transportation
0
10 Processing of sold products
0
11 Use of sold products
0
12 End-of-life treatment of sold products
0
13 Downstream leased assets
0
14 Franchises
0
15 Investments
Please refer to financed emissions
table below
Total GHG emissions (location-based) (tCO
2
e)
106,386
Total GHG emissions (market-based) (tCO
2
e)
89,772
(2)
Eurobank Cyprus and Luxemburg is only included in investments emissions (Scope 3 Category 15)
In 2024, the Group’s total operations-related GHG emissions reached 89,772 tCO
2
e (market-based) with Scope 1 account
for 4%, Scope 2 (market-based) 13% and Scope 3 83%.
The calculation of the Scope 1 and Scope 2 emissions was made using actual data for a 10-month period and estimated /
extrapolated data for a 2-month period. Emissions for the Bank’s operations (including the assumptions / extrapolations
approach) has been verified/validated by an independent certification body according to ISO14064-1 and ISO 14064-2
respectively.
The above data may be modified due to issuance of new version of emissions conversion coefficients (emissions factors)
during 2025 from the Ministry of Environment and Energy, due to the new climate law 4936/2022 (Government Gazette
105/A/ 27.05.2022), for operations in Greece, or relevant Laws in the countries where the Eurobank Group operates.
The location-based method reveals what is physically emitted by the Group, while the market-based approach concerns
residual emissions for which the Group does not procure Guarantees of Origin (GO’s). 95.66% of the Bank’s operations in
Greece electric energy will be certified from Renewable Sources (Guarantees of Origin will be acquired during 2025). The
Bank’s have an annual Guarantee of Origins (GOs) contract with the electricity provider.
The Group has identified the significant Scope 3 categories for its operational impact, by considering estimated GHG
emissions alongside criteria outlined in the GHG Protocol Corporate Value Chain (Scope 3). This identification process
involved factors such as financial spend, influence, transition risks and opportunities, and stakeholder perspectives. The
categories include:
●
Employee commuting and homeworking
●
Business travel (air-travel and hotel-stay)
●
Transportation and Distribution
●
Purchased Goods and Services
●
Capital Goods
●
Fuel and Energy related activities
●
Waste disposal and Water consumption
●
Cloud Computing Usage
Scope 3 emissions totaled 75,301 tCO
2
e for 2024. When a new category is added, the amount for that category is added to
the previous year and the base year to normalise the baselines for comparison reasons.
Assumptions applied
Eurobank estimates Scope 1, 2, and 3 emissions by assuming that historical consumption patterns can predict future trends,
allowing past data to guide current and future emissions estimates. This approach presumes consistency in usage over
comparable periods, making it especially useful for stable operations. In the absence of historical data, Eurobank uses
average consumption from the current year to project future usage, assuming that current performance can provide an
accurate forecast. Where feasible, the Group utilises primary / source data for the relevant calculations, either from its own
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sources or by acquiring them from its value chain stakeholders (i.e. suppliers). When those are not available, it employs
estimations, assumptions and extrapolations that produce reasonable outcomes.
These assumptions enable the Eurobank Group to maintain flexibility and accuracy in its emissions estimation, adapting to
varying levels of data availability. By doing so, the Group supports its sustainability goals and ensures compliance with
environmental reporting standards, providing a comprehensive view of its environmental impact.
Perimeter of Estimation
The emissions estimation process covers the entire Eurobank Group and its subsidiaries, aligning with the perimeter defined
in the Group's Sustainability Statement. This approach ensures that all operations and activities are considered, providing a
comprehensive view of Eurobank's environmental impact and supporting its commitment to sustainability.
Contractual instruments
Unit
2024
Contractual instruments used for the purchase of bundled energy with attributes about
energy generation in relation to Scope 2 GHG emissions
MWh
32,282
In 2024 the Bank continued to purchase green energy from Renewable Energy Sources (RES) with Guarantees of Origin (GOs).
More specifically, 32,282 MWh of electricity was sourced from renewable sources.
Regarding its financed impact-related Scope 3 emissions, the Group calculates and discloses its financed emissions
(category 15) following the PCAF methodology, which is based on a revenue-based approach, with emission factors
estimated for each sector and country through a multiregional input-output analysis framework. Note that reported
emissions from Group’s counterparties have been used where available across Scope 1, 2 and 3. Where one or more reported
scope categories were not disclosed / complete, the Group has incorporated estimated emissions according to its internal
methodology, in line with the PCAF standard.
More specifically, the Group utilises a waterfall approach for the calculation of the financed emissions:
●
To the extent possible, published (reported) emissions of the counterparties are used. (Option 1 – Reported
emissions)
●
For sector D 35.11 physical activity based emissions are reported (Option 2 – Physical activity-based emissions)
●
In all other cases the scope 1, 2 and 3 emissions are calculated based on the economic activity data of the
counterparty (i.e., EUR of revenue) and appropriate emission factors expressed per economic activity (e.g.,
tCO
2
e/million EUR output of the corresponding sector). (Option 3 – Economic activity-based emissions.)
The Group calculates and monitors its financed emissions for the lending and investment portfolios within its Banking Book,
while sectoral level financed emissions of its corporate lending portfolio, is the key method for developing targets to align its
portfolio with climate transition pathways and set net zero targets. As a key step towards its commitment to align its portfolio
with 1.5
o
aligned transition pathways and set net zero targets, the Group is in the process of developing the first wave of
sectoral financed emissions reduction targets, covering the Group’s lending portfolios, with the ultimate objective of setting
2030 targets for the carbon intensive sectors of its portfolio and reaching Net Zero by 2050.
Financed emissions is the most material Scope 3 category for the Group, accounting for > 99% of the total emissions, and
are the basis for its sectoral decarbonisation action plan.
The Group discloses financed emissions for the lending and investment portfolio based on counterparties' scope 1, 2, and 3
emissions, which total 28.5 million tonnes of CO
2
2
e) for 2024. It's noted that fluctuations in total financed
emissions are expected as companies refine their estimation methods and market practices evolve.
Τhe table below presents the breakdown of the Group’s total financed emissions between lending and investment activities:
Emission covered exposure (€mn)
Scope 1&2 (ktCO
2
e)
Scope 3 (ktCO
2
e)
Total emissions (ktCO
2
e)
Lending
40,938
6,799
16,567
23,367
Corporate
29,364
6,440
16,567
23,007
Retail
11,574
359
-
359
Investments
23,155
2,647
2,470
5,117
Total
64,093
9,446
19,037
28,483
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The majority of the Group’s financed emissions come from its corporate portfolio lending, accounting for c.81% of the total,
while Scope 3 financed emissions account for c. 87% of the total.
Emission covered
exposure (€mn)
Scope 1&2 (ktCO
2
e)
Scope 3 (ktCO
2
e)
Total emissions
(ktCO
2
e)
A - Agriculture
371
388
359
747
C - Manufacturing
4,446
1,975
10,140
12,115
D - Energy
2,800
1,200
216
1,416
F – Construction
1,065
63
694
757
G - Wholesale and retail trade
4,727
1,262
3,104
4,366
H - Transporting and storage
5,645
1,041
1,155
2,196
I – Accommodation
2,915
102
362
464
Other Sectors
7,396
409
537
946
Total
29,364
6,440
16,567
23,007
Regarding the corporate portfolio, lending to the manufacturing sector has the biggest contribution, c. 53%, followed by
wholesale and retail trade, c19%, and transportation, c. 9%.
Total GHG Emissions
ESRS Quantitative data / metric
Unit
2024
Total GHG emissions (location-based)
tCO
2
e
28,589,386
Total GHG emissions (market-based)
tCO
2
e
28,572,772
Total net revenue
(3)
mn €
3,341
(3)
In alignment with the “operating income” as disclosed in the consolidated income statement.
In 2024, the Group’s GHG emissions amounted to 28.6 mn tCO
2
e with financed emissions contributing >99% and operations-
related (Scope 1,2,3) emissions accounting for less than 1%.
Unit
2024
GHG intensity per net revenue (location based)
tCO
2
e/ mn €
8,557
GHG intensity per net revenue (market based)
tCO
2
e/ mn €
8,552
GHG removals and GHG mitigation projects financed through carbon credits [E1-7]
For operations-related emissions, following the Science-Based Targets initiative guidance, 90% of the baseline year’s
emissions will need to be reduced and the remaining 10% will be removed by purchasing Carbon Credits. Currently there are
no plans to include Carbon Removals across Eurobank’ s value chain (upstream and downstream). As for Carbon Credits,
they will only cover the remaining 10% of emissions, complementing Eurobank’s carbon reductions across its value chain.
Carbon Credits will not be used to show Carbon Reductions across Eurobank’s value chain and they will not impede its
progress towards net-zero. Eurobank’s Carbon Credits are purchased from credible sources that follow the latest quality
standards.
2.3
Biodiversity and ecosystems [E4]
2.3.1
Governance
Eurobank acknowledges that it currently does not have a dedicated governance structure in place to address biodiversity
conservation issues comprehensively. However, recognising the increasing importance of biodiversity in achieving sustainable
development and mitigating environmental risks, Eurobank is committed to developing a robust governance framework. This
framework will include clear policies, oversight mechanisms, and accountability structures to integrate biodiversity
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considerations into its decision -making processes and business operations. The development of this governance structure is
a priority, and Eurobank aims to establish it within a defined timeframe to align with emerging regulatory requirements and
stakeholder expectations.
Meanwhile, Eurobank engages regularly with its stakeholders, including environmental organisations, regulators, and clients,
to stay informed about biodiversity issues and best practices.
2.3.2
Strategy
Material impacts, risks and opportunities and their interaction with strategy and business model [ESRS 2 SBM-3]
Based on the capability of the financial sector to influence the sustainable use of nature through its business activities,
Eurobank is already taking appropriate steps to integrate biodiversity loss in its operations, by developing a corresponding
response strategy and incorporating relevant provisions in its overall strategy and risk management framework.
Eurobank is currently developing a model for integrating biodiversity considerations into its overall strategy, ensuring that
its financing and investing activities do not have a negative effect on biodiversity and ecosystems and while also promoting
activities that rehabilitate and restore ecosystems. Eurobank recognises that its physical operations have minimal effect on
biodiversity and is thus developing a proportional approach.
Eurobank’s strategic action plan around biodiversity will evolve around the following elements:
●
Risk Assessment: Integrate comprehensive transaction assessments to identify and understand biodiversity risks and
dependencies using tools like ENCORE.
●
Sector Analysis: Focus on high and medium-risk sectors, such as agriculture, forestry, water supply, mining, and
energy, and promote measures and financing that mitigates biodiversity impacts.
●
Sustainable Finance: Promote and finance activities and projects that support biodiversity conservation,
rehabilitation of ecosystems and sustainable use of natural resources.
Considering the complexity of assessing the issue of biodiversity as a risk driver in relation to Eurobank’s business practices
and own operations, given the fact that the relevant guidance in this field is currently under development, Eurobank is closely
following several related initiatives and continues to build its skills and capacity, so as to ensure readiness to appropriately
address such risks, upon the availability of more granular guidelines and methodologies in this respect.
To identify business operations impacting biodiversity, the Group conducted a thorough loan portfolio analysis (materiality
assessment) to identify the sectors most vulnerable to biodiversity loss. Utilising the ENCORE tool (Exploring Natural Capital
Opportunities, Risks, and Exposure), the Group analyzed sector-specific dependencies and impacts related to biodiversity
loss. The ENCORE tool facilitates the assessment of dependencies on biodiversity loss by exploring the ways in which
economic activities rely on ecosystem services and natural capital. Based on the results, primary economic activities, such as
agriculture and water supply, are significantly more dependent on ecosystem services than other economic activities, such
as transportation. This is mainly because the production of agricultural products heavily relies on the use of groundwater,
surface water, and animal pollination.
2.3.3
.
Impact, risk and opportunity management
Description of processes to identify and assess material impacts, risks and opportunities [ESRS 2 IRO-1]
Eurobank identifies material impacts, risks, and opportunities related to integration of sustainability in risk management
through a comprehensive DMA. This approach integrates industry benchmarks, stakeholder insights, and financial relevance
to ensure a robust evaluation of integration of sustainability in risk management impacts.
During our Double materiality assessment, the following risk associated with Biodiversity and ecosystems matters has been
identified:
Direct impact drivers of biodiversity loss
Risk
Biodiversity loss due to clients’ operations may lead to financial and reputational damage.
2.3.4 Policies and Actions
Policies related to the integration of sustainability in risk management [MDR-P]
Eurobank has developed a set of policies to guide its actions on biodiversity, ensuring that all business activities align with
the Group's commitment to biodiversity conservation.
Eurobank is committed to engaging with stakeholders by ensuring a
high level of accountability in policy development and implementation. Policies are approved by the appropriate Governance
bodies such as the Board of Directors or specialized committees, which ensure that there is alignment with the Group's
strategic goals and stakeholder interests. Eurobank main policies that incorporate biodiversity issues are:
●
Environmental Policy Statement: Incorporates biodiversity considerations into environmental risk assessments and
decision-making processes.
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●
Sustainable Finance Framework: Guides the Group in aligning its financial activities with sustainability goals,
including biodiversity conservation by defining specific criteria for projects that support biodiversity and excluding
activities that might harm the environment.
●
Sustainable Investment Framework: Guides investment decisions to support long-term environmental and social
sustainability, including biodiversity conservation by developing criteria for investments that promote biodiversity.
For more information regarding the dedicated policies please refer to: 2.2.4 Policies & Actions - Policies related to climate
change mitigation and adaptation [E1-2]
Actions related to the integration of sustainability in risk management [MDR-A]
Based on the capability of the financial sector to influence the sustainable use of nature through its business activities,
Eurobank is already taking appropriate steps to integrate biodiversity loss in its operations, by developing a corresponding
response strategy and incorporating relevant provisions in the risk management framework. These actions have been
embedded into the Group’s operating model in order to ensure that the Group has established actions on an ongoing basis:
According to the Group’s Exclusion List, activities prohibited by the laws of the host country or international conventions
concerning the protection of biodiversity or cultural heritage resources are excluded from financing.
At the same time, the ESG Questionnaire that is used by the Group in the context of the borrowers’ creditworthiness
assessment includes, inter alia, dedicated questions aiming to capture the biodiversity loss risk of the Group’s counterparties.
Furthermore, a qualitative Risk Appetite Statement (RAS) has been introduced in relation to the environmental risk posed to
biodiversity. Based on its exclusion list, the Group shall refrain from financing activities prohibited by host country legislation
or international conventions relating to the protection of biodiversity resources.
As per the Responsible Investment Policy document of Eurobank Asset Management MFMC, the Company integrates
sustainability factors into the investment process. In particular, the sustainability analysis includes the assessment of
environmental criteria (e.g. emissions of greenhouse gases, exposure to fossil fuel and water emissions) at the level of the
companies in which the funds and portfolios invest. The events or conditions that may be responsible for a negative impact
on the return of the fund/portfolio include environmental aspects (e.g. carbon emissions, water pollution, loss of biodiversity
or damage to ecosystem). The specific sustainability factors considered may vary, as they depend on the specific investment
strategy followed by each fund/portfol io.
Also, through the Climate-Related & Environmental Risks’ Materiality Assessment has as main objective to outline the general
methodological approach by which the Group assessed the materiality of the sustainability risks, including biodiversity loss,
and to demonstrate the exercise's results.
2.3.5 Metrics & Targets
Biodiversity metrics [MDR-M]
Eurobank is currently in the process of developing and monitoring biodiversity risk indicators through the ENCORE tool which
classifies sectors into five levels: Very Low, Low, Medium, High, and Very High. To enhance its approach, Eurobank initially
created a numerical five-level scale, where 0 represents Very Low, 1 represents Low, 2 represents Medium, 3 represents High,
and 4 represents Very High. For each subsector, the maximum score from each subcategory of ecosystem services presented
by the ENCORE tool was used. The average of these maximum scores for each subcategory was then calculated, followed by
the average per Level 1 NACE sector. The final scores for each Level 1 NACE sector were categorized as follows:
●
0-1: Minor,
●
1-2: Low,
●
2-3: Medium,
●
3+: High.
Biodiversity targets [MDR-T]
Eurobank is currently in the process of developing specific targets related to biodiversity conservation. This initiative aims to
establish clear, measurable goals that will guide the Group's efforts in mitigating biodiversity risks and enhancing its positive
impact on ecosystems. By setting these targets, Eurobank seeks to ensure accountability and transparency in its biodiversity
strategy, aligning its operations with global sustainability standards and contributing to the preservation of natural
resources for future generations.
2.4
Integration of sustainability in risk management [Entity-specific]
2.4.1
Governance
The role of the administrative, management and supervisory bodies [ESRS 2 GOV -1]
The Group applies a model of defined roles and responsibilities regarding the management of Sustainability risks across the
Three lines of defense, shaped by the European Central Group's Single Supervisory Mechanism (SSM) 13 expectations related
to climate-related and environmental risksand considering all relevant guidelines and regulatory requirements:
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●
1st line
The Business Units (CIB and Retail Banking) are responsible for assessing, managing and monitoring risk levels in all
risk categories, including Sustainability risks. The CIB Sustainability Center of Excellence and the Retail Banking
sustainability coordinators, are responsible for undertaking all relevant sustainability and sustainable finance
activities. In addition, the role of the Group Sustainability Unit in the 1st line includes the responsibility for managing
and coordinating sustainability strategy related issues, the development of action plans for the Group's Net Zero
portfolio strategies, the facilitation of the Sustainability data framework development, as well as Sustainability
Reporting, Environmental & Energy Reporting (EMAS Report, Greenhouse Gases Emissions Report per ISO14064)
and Sustainability ratings.
●
2nd line
The Group Risk Management (GRM) is independent from the Business Units and is fully responsible for setting the
risk strategy and risk appetite framework, including sustainability risks. Within the GRM, a dedicated Group
Sustainability Risk (GSR) unit has been established, with the overall responsibility for overseeing, monitoring and
managing sustainability risks and sustainable financing activities, in cooperation with the other GRM Units, as well
as with Group Compliance.
●
3rd line
The Group Internal Audit (Group IA) independently reviews the adequacy and effectiveness of the internal control
framework in place regarding Sustainability risk management, following a risk-based approach.
For more information, please refer to: 1.3.1 The role of the administrative, management and supervisory bodies ESRS 2 GOV-
1]
The GSR has the overall responsibility for overseeing, monitoring and managing sustainability risks. More specifically, the
GSR prepares and maintains the Group’s Sustainability risk management policies, processes and methodologies, in
collaboration with the Group Sustainability Unit and the Business and Risk Units. In addition, it leads the development and
implementation of the Sustainability risk-related framework, policies and processes, in coordination with other units, as well
as acts, monitors and reports the progress of the implementation of the developed Climate Risk action plan and reports to
the Board for Sustainability risks matters. In addition, the GSR reviews and challenges the involved stakeholders as to setting
the Financed Impact Strategy (including Net Zero targets), as well as monitors the Financed Impact Strategy (including Net
Zero) and reports financial targets and KPIs. The GSR also leads the 2nd line independent sustainable lending re-assessment
process against the Sustainable Finance Framework criteria, including the characterization of products of the Retail Portfolio
as sustainable. Reviews and confirms the Risk Assessment and challenges the mitigating actions (as per pre-determined
thresholds). Furthermore, the GSR develops and maintains the Climate Risk Stress Testing Framework, as well as the scenario
analysis and stress testing methodologies, and coordinates the performance of sustainability risk scenario analysis and
relevant stress test exercises at Group level.
Also, Eurobank enhanced its Governance Structure and Committees to support the integration of Sustainability risks:
●
Oversight of sustainability risks at management body level through allocation of responsibilities to Board and
management committees. Specifically, Chairman of the SMC is the Deputy Chief Executive Officer, Group Chief
Operating Officer (Group COO) & International Activities.
●
A Board Member is responsible for climate-related and environmental risks.
●
Establishment of 2 Committees that supplement the governance arrangements in sustainability risk, i.e.
Sustainability Management Committee and Climate Risk Stress Test Committee.
●
Appointment of Group Senior Sustainability Officer to lead the Group’s sustainability initiatives.
For more information please refer to :
1.3.1 The role of the administrative, management and supervisory bodies [ESRS 2 GOV-
1]
2.4.2
Strategy
Material impacts, risks and opportunities and their interaction with strategy and business model [ESRS 2 SBM-3]
Eurobank’s strategy, climate transition plan ( as described in Chapter: 2.2.2) and business model are closely integrated with
its Sustainability Risk Management Framework, which includes robust risk management processes and tools. Eurobank
actively evaluates the impact of climate scenarios on its counterparties, helping to identify climate transition financing
opportunities while ensuring resilience to evolving environmental and regulatory risks. This integration of sustainability into
the bank's risk management practices strengthens its competitive position by enabling proactive engagement with clients
on sustainability-related matters. It also aligns with regulatory expectations (i.e. SSM’s 13 expectations on the management
climate-related and environmental risks) and supports the identification and mitigation of potential financial losses linked
to sustainability risks.
Eurobank’s risk management tools ensure comprehensive assessment and monitoring of sustainability risks across its
portfolio. While the integration of sustainability factors may require clients to provide additional data and meet sustainability
requirements, these measures safeguard Eurobank against potential risks that could affect its market perception and
business model. By embedding sustainability considerations into its risk management processes, Eurobank not only meets
regulatory obligations but also enhances its long-term resilience and sustainability, securing a competitive edge in the
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marketplace. This dual approach of addressing risks and leveraging opportunities ensures that Eurobank’s strategy remains
aligned with both its business model and its commitment to sustainable growth.
Sustainability Risk management accounts for regulatory guidelines and expectations, such as ECB and EBA guidelines on
Climate-related environmental risks, as well as the market practices. The Group has developed an implementation roadmap
in alignment with the SSM’s 13 expectations on climate-related and environmental risks. For more information please refer
to the
Consolidated Pillar 3 Report - 11.1.3 Risk Management
.
2.4.3
Impact, risk and opportunity management
Description of processes to identify and assess material impacts, risks and opportunities [ESRS 2 IRO-1]
Eurobank identifies material impacts, risks, and opportunities related to integration of sustainability in risk management
through a comprehensive DMA. This approach integrates industry benchmarks, stakeholder insights, and financial relevance
to ensure a robust evaluation of integration of sustainability in risk management impacts.
Nevertheless, for the identification and assessment of sustainability risk management the Group has developed
comprehensive processes that include RIMA, Risk appetite framework, and ICAAP. For more information, please refer to the
Consolidated Pillar 3 Report - 11.1.3 Risk Management
TCFD Climate - related & Environmental Risk Report (Risk
Management)
.
The impacts, risks and opportunities associated with the integration of sustainability in risk management matters are shown
in the table below:
Integration of sustainability in risk management
Impact
Negative
Potential
The ESG / climate risk assessment may require additional effort by the clients in
order to provide required ESG data and may result in additional conditions to
comply with for financial agreements.
Risk
Client hesitance or inability to meet sustainability requirements may impact
Eurobank's market perception, potentially affecting its competitive position and
leading to additional risks.
Opportunity
Integrating ESG in risk management in response to evolving regulatory requirements
and business needs improves Eurobank's resilience to sustainability-related risks,
safeguarding Eurobank against potential financial losses, strengthening its overall
risk management framework.
2.4.4
Policies and Actions
Policies related to the integration of sustainability in risk management [MDR-P]
Eurobank has incorporated sustainability risk aspects across all pillars of its Risk Management Framework, through the
establishment of comprehensive policies and processes. It is among the Group’s priorities to identify, assess, manage and
mitigate relevant risks, with a view towards ensuring alignment with its business strategy, as well as regulatory and industry
developments.
Group Risk Management Framework (RMF) and Sustainability Risk Management Policy
The Group Risk Management Framework defines the roles and responsibilities of the Group Risk Management (GRM), which
is independent from the Business Units as a 2nd line, having full responsibility for the establishment of the Group’s Risk
Strategy and Risk Appetite Framework, as well as for monitoring all risks assessed as material through the Risk Identification
and Materiality Assessment (RIMA) process, including climate-related and environmental risks undertaken by the Group. For
more information please refer to the
Group’s “TCFD Climate - related & Environmental Risk Report
”.
In accordance with relevant supervisory expectations and the Group’s enhanced governance operating model for the
incorporation of sustainability risks across the Three lines of defense, new roles and responsibilities regarding sustainability
risk management have been embedded into the Group Risk Management Framework. In addition, Eurobank has developed
its Sustainability Risk Management Policy, which aims at fostering a holistic understanding of the effects of sustainability
risks on its business model, as well as supporting decision-making regarding these matters and providing a robust
governance under its Risk Management Framework.
Collateral Valuation Policy
Eurobank has refined its Collateral Valuation Policy (CVP) to specify accepted collateral types and valuation procedures,
while integrating assessments of climate-related and environmental risks. This involves collecting pertinent information such
as Energy Performance Certificates (EPCs) and incorporating forward-looking estimates of natural hazards. The updated
Policy will also consider broader climate-related and environmental factors, such as waste management and accessibility,
to enhance valuation accuracy and risk management.
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Credit Policy Manual
The Group’s credit policy manual has been updated to integrate sustainability-related risks by incorporating climate and
environmental factors into credit risk management practices, aligning with the SSM's expectations.
Group Environmental and Social Policy
In this context, the Group has developed an Environmental and Social Policy that sets the framework of general principles
and requirements for managing environmental and social issues. Through the Environmental and Social Policy, the Group
achieves and maintains compliance with existing national and international environmental and social legislation/regulations,
as well as with its commitments, through a standardised E&S assessment approach. Furthermore, the objective of the Policy
is, inter alia, to ensure timely and accurate reporting to the European Bank for Reconstruction and Development (EBRD)
concerning the management of the Group ESMS.
As part of its Environmental and Social Policy, Eurobank maintains a list of activities that are excluded from financing, in line
with the exclusion lists of the EBRD. For all financing transactions, the Group ensures that its clients demonstrate an organised
and systematic approach to E&S risk management that complies with applicable local, national and international
environmental, health and safety, and labour legislation and standards, relevant permits, as well as public disclosure
requirements.
The ESMS process consists of client/activity environmental and social risk screening, risk assessment process, decision of risk
control approach and ongoing performance monitoring.
Know-Your-Customer (KYC) and Anti-Money Laundering/Terrorist Financing (AML/TF) policies and processes
Eurobank has established Know -Your-Customer (KYC) and Anti-Money Laundering/Terrorist Financing (AML/TF) policies and
standards, which are designed to provide safeguards against, inter alia, fraud and cooperation with clients with increased
financial crime risk (i.e. risk of involvement in money laundering and terrorist financing).
Within the scope of customer KYC profiling, Eurobank applies enhanced due diligence measures upon establishing a business
relationship and when carrying out transactions with natural or legal persons/entities who are classified as high-risk as per
Eurobank’s relevant internal processes.
Climate Risk Stress Test Framework
The Framework provides a transparent and repeatable process for designing and executing the climate risk stress test, as
well as for reporting and evaluating stress test outcomes and determining management actions.
For more information, please refer to
Consolidated Pillar 3 Report - 11.1.3 Risk Management
TCFD Report- Sustainability
Risk Management Tools & Processes
.
Actions related to the integration of sustainability in risk management [MDR-A]
The Group has developed the following processes and tools for the monitoring and management of sustainability risks. These
processes have been embedded into the Group’s operating model and are performed on an ongoing basis in the context of
continuous sustainability risk management:
Risk Identification and Materiality Assessment (RIMA) process
The Risk Identification and Materiality Assessment (RIMA) process sets the appropriate mechanisms to identify, measure and
monitor risks at an early stage, as well as to manage their potential impact on the achievement of the Group’s objectives.
Through the RIMA process, the Group identifies material risks that could potentially have a significant adverse impact on its
financials, capital base, liquidity position or business model, as well as any exposure to possible emerging risks.
As sustainability risks interact with other risks and result in direct distributional impacts and indirect macroeconomic impacts,
the Group understands that careful consideration of the cross-cutting nature thereof is necessary to ensure the optimal
implementation of adaptation activities. As such, the Group considers sustainability risks as drivers of existing risk types,
undertaking a holistic and systemic approach when examining the complex links between sustainability risks and both
financial and non-financial risks. Eurobank has integrated sustainability risk elements into its existing risk management
processes, creating additional procedures, policies and tools so that these risks can be properly identified and measured.
Sustainability
Risk
Data
The Group recognises the importance of relevant and reliable data for the provision of meaningful insights, suitable for
decision-making purposes. Having already performed an assessment of sustainability data availability in its internal systems
against regulatory requirements/expectations, the Group continues to enhance its sustainability risk data aggregation
capabilities and IT infrastructure accordingly, while also using appropriate controls and safeguards to ensure the accuracy
and completeness of the compiled information. The Group seeks to further improve sustainability risk data granularity
through allocating detailed roles and responsibilities, for the purposes of sustainability data management and implementing
approaches for addressing data needs (i.e. engaging with external data providers, developing methodological approaches
for estimating required information).
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Risk appetite
The Group articulates its risk appetite through a set of qualitative and quantitative statements with respect to, inter alia,
solvency, liquidity, profitability, asset quality and other areas related to material risks. The purpose of these indicators and
thresholds is to facilitate the assessment of whether the Group is operating within its defined risk appetite levels. 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 Risk Appetite Framework (RAF). The RAS are complemented by a set of Business
Line Statements (BLS), which constitute operational metrics (and limits) at the business level where the risks are undertaken.
Moody’s Risk Analyst (MRA) model
The Group’s MRA Model assesses the CIB borrowers’ credit profile based on qualitative and quantitative criteria. Specifically,
the “Risk of Adverse Events” criterion assesses a client’s vulnerability to adverse developments or business interruptions, fines,
litigation and negative publicity, stemming, among others, from environmental parameters and social issues (e.g. health and
safety of customers).
Climate Risk Scorecard
In line with leading market practices, as well as taking into account supervisory requirements/expectations with regard to
establishing an approach for further assessing clients with higher climate risk exposure, the Group has developed the Climate
Risk Scorecard for considering climate-related and environmental risks.
In this context, an assessment process based on the Climate Risk Scorecard is performed for all new financing transactions,
limit increases and limit renewals (existing and new clients), initially applied to the Group’s Corporate & Investment Banking
(CIB) portfolio. The Climate Risk Scorecard comprises a modular questionnaire which includes targeted climate risk and
sustainable financing related questions, both qualitative and quantitative, capturing the following key dimensions: transition
risk, taxonomy aligned activities, physical risk, sustainable financing, emissions, strategy, climate & environmental incidents,
transition-green technology.
Interbank ESG Questionnaire
In recent years, the banking sector has faced increased regulatory focus on ESG matters. Banks are now required to improve
their credit risk assessment processes to better identify and evaluate climate-related and environmental risks. In response,
the Hellenic Bank Association (HBA) and major Greek banks have launched an initiative to create a unified Interbank ESG
Questionnaire for their clients. This questionnaire aims to standardize the assessment of ESG factors across Greek banks,
ensuring compliance with regulatory expectations and international guidelines (e.g., EBA Guidelines, ECB's climate risk guide,
and TCFD recommendations). This process has been adopted by the Group’s entities in Greece and Cyprus as of 2024.
ESG Risk Assessment
Eurobank has developed an ESG Risk Assessment by combining its Climate Risk Scorecard with the Interbank ESG
Questionnaire. This comprehensive approach helps assess and classify the Group's clients based on ESG criteria, in line with
regulatory requirements. Eurobank uses an internal ESG Risk Scoring method, resulting in one of three ESG risk categories:
High, Medium, or Low. This assessment informs credit decisions, considering ESG risks, potential mitigation actions, and due
diligence. The overall approach aligns with Eurobank's business strategy, enhances ESG risk awareness, supports sustainable
financing, and ensures compliance with the Group's risk appetite and credit policies. This process has been fully adopted by
the Group’s relevant entities in Greece and is gradually being introduced into other countries.
In 2025, the similar processes and tools for the monitoring and management of sustainability risks will be incorporated in
Cyprus and Bulgaria.
2.4.5
Metrics & Targets
Sustainability risk management metrics [MDR-M]
Through the processes described above, the Group monitors its performance on sustainability through the metrics and
indicators demonstrating the sustainability risk level of its counterparties.
In addition, key indicator for the Group is the allocation of its portfolio to high climate impact sectors and clients. The
respective distribution for 2024 is presented in the table below. No external body other than internal assurance is provided
for the below information.
2024 exposure
Loan exposures to sectors with high transition risk in Group’s portfolios
bn €
24.9
Bond and share exposures to sectors that highly contribute to climate
change
bn €
1.4
Exposures towards the top 20 most carbon intensive counterparties globally
in Group’s trading and banking portfolios
mn €
31
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Sustainability risk management targets [MDR-T]
The Group has achieved its key Risk Appetite Statement (RAS) for at least 20% of the annual new CIB disbursements to be
classified as green / environmentally sustainable loans, by applying the methodology and criteria set in the Group’s
Sustainable Finance Framework, which outlines the eligible approaches and activities that can be classified as sustainable,
demonstrating the Group’s commitment towards green transition.
In addition, the Group has demonstrated progress in against the following areas which have been set as qualitative targets:
●
Significant progress in the integration of sustainability risks in its Three lines of defense Model
●
Incorporation of climate risk elements in the Remuneration Policy (Please refer to “Integration of sustainability-related
performance in incentive schemes [ESRS 2 GOV-3]” for more information)
●
Deployment of the ESG Questionnaire, which has been developed at interbank level with the coordination of the
Hellenic Bank Association
●
Integration of the ESG Risk Assessment process, a combination of the internal Climate Risk Scorecard and the
Interbank ESG Questionnaire
●
Assessment of sustainability risks through Sectoral Analysis and forward-looking Scenario Analysis, as part of the
TCFD report (For more information please refer to:
“ TCFD Climate-Related & Environmental Risk Report”
●
Alignment of its Risk Appetite with the articulated Sustainability Strategy
●
Incorporation of climate risk aspects in collateral valuation
●
Publication of the TCFD Climate-Related & Environmental Risk Report
●
Performance of training sessions for its employees in relation to Climate Risk, ESG Risk Disclosures and ESG Risk
Assessment
●
Further integrate climate risk regulatory requirements into its business strategy and risk management framework,
leveraging on key initiatives:
o
Governance, policies and control framework.
o
Climate risk modelling and data management.
o
Commercial strategies/sector policies.
o
Eurobank S.A. and its subsidiaries aim to implement climate risk and environmental action plans by 2025. These
initiatives are designed to ensure full alignment of policies, actions, and strategies across Eurobank Greece and
its subsidiaries, fostering a cohesive and unified approach to achieving organizational objectives.
2.5
Sustainable financing and investment offerings [Entity-specific]
2.5.1
Governance
The role of the administrative, management and supervisory bodies [ESRS 2 GOV -1]
Aiming to implement the Sustainability Strategy, the Group has appointed a Group Senior Sustainability Officer responsible
for the implementation of the Group’s Sustainability Strategy and engaging the following committees that actively
contribute to the promotion of sustainable financings and investment offerings and their integration into the day-to-day
operations of the Group:
●
Sustainability Management Committee (Sustainability ManCo): Acts as the final approval body, inter alia with regards
to the inclusion or substitution of Eligible assets of the Green Bond Portfolio, and to the update of the annual Green
Bond Report. The Committee approves the Sustainability Frameworks (e.g. Sustainable Finance Framework, Green
Bond Framework, Sustainability Policy Framework and Sustainability Investment Framework)
●
Group Asset and Liability Committee (G-ALCO): Within the context of the approved investment framework for
corporate/FI bond portfolio, reviews the relevant portfolio limits annually.
As far as the Group Sustainability Risk (GSR) Unit is concerned, it has the overall responsibility for overseeing, monitoring,
and managing sustainability risks. More specifically, the GSR leads the 2nd line independent sustainable lending re-
assessment process against SFF criteria, including the characterisation of retail portfolio products as sustainable. Also, GSR
is responsible for the assessment the sustainability features of new loans/products according to the SFF criteria.
Regarding the Business Units CIB and Retail Banking, are primarily involved in executing all sustainable financing activities,
including the implementation of the Financed Impact Strategy. Key responsibilities are classified, inter alia, under the
following 3 main categories:
1.
Sustainability Strategy: Executing and monitoring financed and specific operational sustainable goals and
performance targets in line with the Net Zero Strategy.
2.
Sustainable Financing/Funding and Investments: Identifying sustainable financing opportunities and designing
relevant solutions and sustainable products. Performing the sustainable financing assessment, in line with the
Sustainable Finance Framework. Implementing and monitoring the Sustainable Investment and Green Bond
Frameworks.
3.
Sustainability Risk Management: Performing the ESG Risk Assessment and formulating mitigation action plans,
where required.
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Dedicated functions, namely the Sustainability Centers of Excellence (CoE), within the Business Units (Corporate & Investment
Banking and Retail Banking) are responsible for assessing, managing and monitoring risk levels in all risk categories, including
Sustainability risks. The Head of CIB Sustainability CoE is responsible for overseeing sustainable financing activities, while
two Retail Banking Sustainability Coordinators (Business and Individual clients respectively) are responsible for organising
and supporting sustainable-related activities.
Also, Group Compliance’s key roles and responsibilities regarding sustainable financing and investment offerings include the
Regulatory Compliance:
o
Monitors the regulatory environment and emerging trends around sustainable financing
o
Monitors the alignment of the Group’s activities with applicable laws, rules, regulations and standards, including
sustainable finance regulatory aspects.
2.5.2
Strategy
Material impacts, risks and opportunities and their interaction with strategy and business model [SBM-3]
The Group acknowledges that sustainable development is key to prosperity. To this end, its commitment to support the
transition to a greener economy by offering financing solutions that foster growth, and sustainable development is at the
core of its Financed Impact Strategy.
Leveraging on tools and enablers, such as the Sustainable Finance Framework, the Group’s strategic approach is to support
the achievement of the sustainability objectives through financing, advisory and capital raising solutions to current and
potential clientele.
Sustainable financing is at the core of the Bank’s Financed Impact Strategy, guiding the approach of offering products and
services that support green transition and social investments. This strategy emphasises driving positive sustainability
outcomes by not only financing projects that contribute to environmental and social progress but also incentivizing clients
to improve their sustainability performance. Through these sustainable financing offerings, the Group seeks to create long-
term value for both its stakeholders and society, aligning with broader climate and social goals. By focusing on financed
impact, Eurobank ensures that its investments have a measurable and positive effect on sustainability.
In line with its commitment to address climate change, the Group has joined the Net-Zero Banking Alliance (NZBA), a bank-
led, UN-convened alliance of banks worldwide, reinforcing its dedication to aligning its lending and investment portfolios
with net-zero emissions by 2050 or sooner, in line with the most ambitious targets set by the Paris Climate Agreement. Key
enabler towards this commitment is the promotion of sustainable finance that will enable the green transition of its clients.
However, there are challenges associated with sustainable finance, including the risk that some products may not fully meet
globally recognised sustainable finance criteria, which could lead to perceptions of greenwashing and damage Eurobank’s
credibility. In addition, evolving market preferences and regulatory shifts may impact the demand for sustainable finance,
posing risks to Eurobank’s current product offerings. Despite these risks, there are clear opportunities for growth by aligning
green and social investments with climate transition requirements and changing consumer preferences. This approach
enhances Eurobank’s brand reputation, attracts sustainability-conscious investors, and positions the Group as a leader in
responsible finance, ensuring that its business model remains resilient and forward -looking.
2.5.3
Impact, risk and opportunity management
Description of processes to identify and assess material impacts, risks and opportunities [ESRS 2 IRO-1]
Eurobank identifies material impacts, risks, and opportunities related to sustainable financing and investment offerings
through a comprehensive DMA. This approach integrates industry benchmarks, stakeholder insights, and financial relevance
to ensure a robust evaluation of sustainable financing and investment offerings impacts.
The impacts, risks and opportunities associated with sustainable financing and investment offerings matters are shown in
the table below:
Sustainable financing and investment offerings
Impact
Positive
Actual
Eurobank provides sustainable finance products and services that promote green and
social investments and incentivise improvement of its clients’ ESG performance .
Risk
Evolving market preferences and regulatory shifts may impact the demand for
sustainable finance, posing risks to Eurobank's existing product offerings.
Opportunity
Promoting green and social investments in line with requirements to support climate
transition and in response to changing consumer preferences enhances Eurobank's
brand reputation, attracting sustainability conscious investors.
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2.5.4
Policies and Actions
Policies on sustainable financing and investment offerings [MDR-P]
The Group has approved and implements as part of the operationalization its Sustainable Finance Framework (SFF), which
encompasses a wide range of sustainable-green lending activities and supports the identification and classification of
sustainable-green financings, covering both Corporate and Retail banking portfolios. Eurobank developed its SFF in
accordance with internationally recognised industry guidelines and principles. In addition, Eurobank developed and made
publicly available its Green Bond Framework. This framework facilitates Eurobank in order to meet its
environmental/sustainability commitments and finance projects that will deliver environmental benefits to the economy and
support Eurobank’s business strategy and vision. Furthermore, Eurobank approved its Sustainable Investment Framework,
which outlines Eurobank’s available sustainable investment approaches/strategies, the selection of eligible investments and
the monitoring frequency of the sustainable portfolio (the sustainable portfolio is part of Eurobank’s investment portfolio).
Eurobank is committed to engaging with stakeholders by ensuring a high level of accountability in policy development and
implementation. Policies are approved by the appropriate Governance bodies such as the Board of Directors or specialized
committees, which ensure that there is alignment with the Group's strategic goals and stakeholder interests.
More specifically:
●
Through the SFF Eurobank is able to classify sustainable lending solutions offered to its customers, specifying the
applied classification approach and the activities defined as eligible to access sustainable financing (eligible green
and social assets). The SFF scope encompasses a wide range of sustainable lending products, covering both wholesale
and retail banking portfolios. The SFF also incorporates the assessment process of the EU Taxonomy for which the
Group pursues Taxonomy -alignment of financings on a best effort basis. The purpose of establishing the SFF is to
provide a clear and comprehensive methodology for classifying, monitoring and reporting sustainable financing. The
policy applies to all financial transactions, excluding certain activities deemed incompatible with sustainability goals,
such as fossil fuel extraction or high carbon-intensive projects. It covers the entire value chain, both upstream and
downstream. Key stakeholder groups affected include investors, customers, and communities within operational
regions. The Group Senior Sustainability Officer (GSSO) holds the highest level of accountability for the
implementation and oversight of the policy within the organisation. The SFF draws from guiding frameworks such as
the LMA principles for loans – Green Loan Principles, Sustainability-Linked Loan Principles as well as the EU Taxonomy
Climate Delegated Act. For more information please refer to:
Sustainable Finance Framework
.
●
The Sustainable Investment Framework (SIF) aims to classifying investments as sustainable based on criteria observed
in international market practices. Eurobank’s SIF outlines Eurobank’s potential sustainable investment
approaches/strategies, the process for selecting eligible investments, as well as the monitoring frequency regarding
the sustainable portfolio. Its scope includes the bond investment portfolio, for both direct and indirect investments
across all sectors, regions, and value chains, with exclusions in areas such as high-risk fossil fuels and activities
detrimental to biodiversity or human rights. The policy applies to all stakeholders involved in the investment process.
Accountability for its implementation lies with the organisation's Group Senior Sustainability Officer (GSSO).
●
The Green Bond Framework (GBF) assists Eurobank in meeting its environmental/ sustainability commitments and
finance projects that will deliver environmental benefits to the economy and support its business strategy and vision.
The Green Bond Framework is developed in accordance with global best practices and standards and considers EU
Taxonomy eligibility criteria to classify potential investments as green. The Framework defines the eligible assets and
associated criteria, the use of proceeds, the process for project evaluation and selection, the management of
proceeds, as well as the relevant reporting obligations. Its general objectives include promoting green investments,
while ensuring transparency and accountability in the use of proceeds. The scope of the framework covers both
upstream and downstream activities related to eligible projects, across global geographies, with exclusions for
projects involving fossil fuels, or other environmentally harmful practices. The Sustainability ManCo approves the GBF.
Accountability for its implementation lies with the organisation's GSSO. The Green Bond Framework has obtained a
Second Party Opinion (
Green Bond Framework - Second Party Opinion
) for its alignment with the ICMA Green Bond
Principles (GBP) and the EU Green Bond Standard (GBS). )
For more information regarding Policies related to Financial Inclusion please refer to: “3.2.2: Policies related to consumers
and end-users [S4-1]”.
Actions on sustainable financing and investment offerings [MDR-A]
The Group takes key actions to promote sustainable financing. These processes have been embedded into the Group’s
operating model in order to ensure that the Group provides continuous sustainable financing and investment offerings on
an ongoing basis:
Net-Zero Banking Alliance (NZBA) Commitment
Key element of the Group’s NZBA commitment is the establishment of sectoral decarbonisation targets covering the Group’s
lending portfolios, with phased target-setting up to 2050. The promotion of sustainable financing that will enable client’s
transition is the key enabler towards achieving those targets.
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Sustainable Finance Framework
Eurobank’s SFF defines four classification approaches for classifying its financing and investing activities as sustainable:
●
Dedicated-purpose – Green/Social loans:
Project-specific loans or financing instruments whose use of proceeds is
100% directed towards eligible green / social activities. The SFF defines the eligible activities (for the wholesale and
retail portfolios) along with the applicable eligibility and exclusionary criteria that need to be fulfilled. The eligible
areas and activities include energy efficiency, renewable energy, clean transportation, green buildings, pollution
prevention and control, and circular economy regarding the green activities, and economic inclusion, affordable basic
infrastructure, access to essential services, affordable housing, food security and sustainability regarding the social
activities.
●
General-purpose – Company business mix:
Financing to companies that fulfil the eligibility green/social criteria and
derive their revenue from eligible activities. Specifically, companies are eligible under the business mix category when
they derive a minimum predefined percentage of their total revenue from eligible activities.
●
General-purpose – Sustainability-linked loans/facilities:
The second type of general-purpose lending adopted
relates to Sustainability Linked Loans (SLL). The purpose of SLLs is to enable and accelerate the ESG transition of
clients. Through SLLs, Eurobank provides ESG-related incentives to its clients, by offering products (loans, bond loans,
etc.) with terms linked to ambitious and predefined Sustainability Performance Targets (SPTs). The SPTs are specific
targets that aim to improve the ESG performance of the client.
●
Recovery and Resilience Facility-based approach:
Activities approved through the Greek Recovery and Resilience
Facility, contributing to the green pillar.
Sustainable Finance Framework Assessment Tool
Eurobank has developed a web-based SFF Assessment Tool. Integrated within its core systems, for the CIB portfolio, to
underpin the classification and evaluation of sustainable/green financing opportunities in a structural manner, as part of the
loan origination process. The SFF Assessment Tool is delivered through an online platform a workflow -based application
which automates the process of assessing the Group’s financing solutions against the criteria defined in the SFF.
Sustainable financing products
●
ESG programme for hotels
Eurobank supports the tourism industry's sustainability through two ESG programmes for hotels:
1.
"Doing Business Sustainably in Tourism": Offers incentives to existing hotel borrowers who meet sustainability
targets, catering to both advanced and beginner hotels in ESG.
2.
“Constructing Sustainably in Tourism": Provides incentives for new hotel projects or upgrades that meet
environmental construction standards.
●
ESG Deposits
Eurobank was the first Greek bank to offer ESG Deposits to its corporate clientele, and continues to offer this product,
allowing its clients to contribute to sustainable development projects. The amount raised from ESG Deposits is
allocated to financing green and sustainability linked loans, in agreement with Eurobank’s SFF.
●
ESG-focused mutual criteria
Eurobank has introduced the LF FoF – ESG Focus, a mutual fund that invests in shares and bonds based on ESG
(Environmental, Social, and Governance) criteria. The fund features a diversified portfolio of equities and bonds that
adhere to ESG principles.
●
Green Mortgage Loans
Eurobank has played a key role in energy -saving initiatives in Greece, , particularly through its participation in the
Exoikonomo programmes since 2011, which support the energy upgrade of private homes. In 2024, the Group
continued to solidify its presence in green mortgage loans by participating in Exoikonomo 2021, and Exoikonomo 2023
development programmes funded by the EU's Recovery and Resilience Facility. The programme offer interest rate
subsidies, state loan guarantees, grants, and other support for households making green improvements like energy
efficiency upgrades and smart home automation. For those not eligible for Exoikonomo, Eurobank offers a Green
Mortgage Loan to finance energy-efficient home improvements, such as installing solar panels or upgrading
insulation. Through these efforts, Eurobank aims to help Greece meet its environmental goals by offering accessible
green financing solutions for homeowners. In addition, initiatives related to the provision of green mortgage loans are
also in place in Group’s operations in Bulgaria, as well as, in Cyprus.
●
Photovoltaic SB Loans
Eurobank offers Photovoltaic SB Loans to small businesses for investing in renewable energy, specifically through the
production and sale of energy from photovoltaic systems. Businesses can choose between a loan or leasing option,
with the loan covering up to 80% of the total investment costs, including infrastructure, equipment purchase and
installation, site setup, and connection expenses.
●
Bridge Financing – Exoikonomo
Eurobank’s Bridge Financing - Exoikonomo programme provides a credit line to suppliers and contractors working on
properties under the Exoikonomo – Aftonomo and Exoikonomo 2021 programmes. This financing helps them pre-
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finance their work until they are paid through the government subsidies. Suppliers can receive up to 80% or 100% of
the subsidy amount their customers are eligible for, regardless of whether the customers use Eurobank loans.
Our actions to promote sustainable financing, originally developed for our core operations, are strategically and
proportionally adapted and deployed across subsidiaries in Bulgaria, Cyprus, and Luxembourg. For example, the offering of
green lending such as Green home programmes, Green Car programme s for the purchase of new electric or hybrid cars, eco-
auto loans, etc. While these programs are tailored to address the specific local contexts and regulatory environments, we
are working towards achieving a Group alignment.
ESG awareness and capacity building
Eurobank is prioritising the development of its employees' capabilities to ensure they can effectively assist clients in their
sustainability efforts and facilitate their transition to green transition. For more information, please refer to section 1.3.1. The
role of the administrative, management and supervisory bodies [ESRS 2 GOV -1]
Dedicated training sessions to Business Units
Apart from the general upskilling programmes, during the past years the Group has conducted dedicated sessions tailored
to the requirements of specific business units and functions, crucial for delivering the Group’s strategy. These sessions focused
on engaging with clients to enable their green transition efforts and identifying sustainable financing opportunities through
publicly available sources, such as company sustainability disclosures.
A sustainability awareness training was conducted for the Board of Directors, enhancing the understanding of CSRD
Reporting requirements, including Double Materiality Assessment, EU Taxonomy and disclosure requirements among others.
Through their participation in this training, the Board of Directors developed a comprehensive understanding of the CSRD
requirements and learned how to consider these in the company’s strategic planning and long-term growth objectives
effectively
2.5.5
Metrics & Targets
Metrics on sustainable financing and investment offerings [MDR-M]
The corporate portfolio of Eurobank., which is the Group’s key entity sustainable stock exposures amount to € 2.98 bn
demonstrating a 37% year-on-year growth, in line with the Group’s green stock targets, while annual disbursements have
reached the respective annua target. The tables below present the allocation of sustainable exposures as well as the
disbursed amounts within 2024:
Corporate Banking
Outstanding balance as of
31.12.2024 (mn €)
Disbursed amounts within
2024 (mn €)
Dedicated purpose financings
1,898
537
Renewable energy
1,429
419
Green buildings
230
75
Energy efficiency
192
-
Clean transportation
40
36
Pollution Prevention & Control & Circular Economy
8
7
General purpose financings
1,088
736
Business mix
80
29
Sustainability-Linked Loans (SLL)
1,008
707
Total sustainable financing
2,986
1,273
For further information regarding Sustainability-Linked Loans (SLL), please refer to note 20 “Loans and advances to
customers” of the consolidated financial statements.
In relation to the retail portfolio, the balance as of the end of 2024 stands at € 182 mn, while € 100 mn were disbursed within
2024.
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Retail Banking
Outstanding balance as of
31.12.2024 (
mn €)
Disbursed amounts
within 2024 (
mn €)
Green mortgage loans
105
72
Energy renovation loans
26
8
Bridge Financing - Exoikonomo
-
-
Electric vehicle loans
5
2
Photovoltaic SB loans to small businesses and individuals
38
12
Net metering
1
-
Other dedicated purpose sustainable loans to small businesses
7
5
Total sustainable financing
182
100
Regarding bond positions, as at 31.12.2024 the Bank held € 226 mn in Sustainability-Linked Bonds.
Positions in green / sustainable bonds in the Banking Book
Unit
Outstanding balance as of 31.12.2024
Positions in Sustainability-Linked Bonds
mn €
226
For more information on Sustainability-Linked Bonds, please refer to note 22 “Investment securities” of the consolidated
financial statements.
Targets on sustainable financing and investment offerings [MDR-T]
As part of the Group’s ongoing efforts to align its business strategies with global sustainability goals, the financed impact
strategy is underpinned by clear targets for Eurobank’s sustainable finance and investment offerings. These targets reflect
its dedication to integrating ESG factors into our financial services, and they guide its approach to funding projects that
have a positive impact on both society and the environment. Through transparent and measurable goals, we aim to support
the transition to a more sustainable economy while delivering responsible investment opportunities for Eurobank’s clients.
Sustainable financing targets are based on the classification approach and/or eligible activities described by the Group’s
SFF.
The table below demonstrates Eurobank’s performance against the targets set:
2024 Performance and progress
Portfolio Targets
€2 billion in new green disbursements to businesses by 2025
> € 2 bn as of 2024 - On track to meet target
20% of the annual new corporate disbursements to be classified as
green
c. 21% - Annual target achieved
20% stock of green exposures by 2027 for the corporate portfolio
c. 16% - on track to achieve target
Mobilise €2.25 billion total green RRF funds in the Greek economy
by 2026
c. € 2.1 bn - on track to achieve target
No new investments in fixed income securities (excluding exposures
in Sustainability / Green Bonds towards the top 20 most carbon-
intensive corporates worldwide.
0 new exposures – Target maintained
Double annual disbursements of sustainability-linked loans
c. € 0.7 bn in SLL, disbursements, double in relation to
2023 – Annual target achieved
Sectoral targets
35% of new disbursements in the energy sector to be directed to
(RES) financing
> 60% of sectoral disbursements towards RES –
Annual target achieved
80% of disbursements related to the construction of new buildings
to be allocated to green buildings
100% of disbursements to construction of green
buildings – Annual target achieved
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2024 Performance and progress
Retail Banking targets
Maintain the same growth in absolute terms for Retail Banking
new green disbursements (or more than 50% increase vs. 2023)
More than € 100 million increase in our new green
disbursements towards households and small
businesses – Annual target achieved
Once Group’s Net-Zero Strategy will be finalized, each subsidiary will set its own specific targets. This will ensure that every
part of the Group effectively contributes to our overall sustainability goals while considering their unique operational
contexts and challenges.
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3
Social information
3.1
Own workforce [ESRS S1]
3.1.1
Strategy
Material impacts, risks and opportunities and their interaction with strategy and business model [ESRS 2 SBM-3]
The actual and potential impacts on own workforce which have been identified in the course of the DMA are connected to
the Group’s strategy. The Group has committed to contributing to the achievement of the United Nations Sustainable
Development Goals (SDGs) and the UN 2030 Agenda, as a signatory to the UN Global Compact since 2008, and by actively
promoting its fundamental principles and applying the precautionary approach. In this context, in 2022 a new holistic
Sustainability Strategy was prepared, that was revised in 2024, the implementation of which is based on two main pillars
Operational Impact and Financed Impact. Key component of the Operational Impact Strategy is Eurobank’s Societal Impact
that focuses on providing a diverse and inclusive environment for its people and clients, while fostering sustainable
development and prosperity for the benefit of society. The Societal impact encompasses several key commitments, such as
embedding a diverse and inclusive environment by 2030, cultivating a culture of wellbeing by 2026. These key strategic
commitments address material IROs of working conditions, other work-related rights, and ensuring equal treatment and
opportunities for all.
With regards to material impacts, risks and opportunities, all people in own workforce who could be materially impacted by
business activities are in the scope of disclosures, covering own operations and the value chain.
The Group recognises two distinct categories within its workforce:
●
Employees who are directly employed by the organisation: permanent, temporary, full-time, part-time employees,
as well as other staff members such as trainees, or those who have self-employed status.
●
Non employees who are provided by third party undertakings primarily engaged in employment activities.
All the identified negative impacts related to Eurobank’s own workforce resulting from the DMA have been classified as
potential. Eurobank, through various measures and mechanisms, such us compliance with labor laws and standards,
employee surveys, work -life balance initiatives, diversity training and awareness programs, ensures that any related impacts
with widespread or systemic effects will not be materialised.
Through materiality assessment, the magnitude and scope of potential and actual impacts is taken into consideration and
are analyzed further. Identified impacts related to Eurobank’s own workforce could only be linked to individual incidents of
discrimination or unethical behaviour.
Additionally, the Group implements a range of actions that contribute to fostering positive outcomes for employees, as
detailed below:
Actions promoting positive impact of:
Implementing internal management systems and initiatives that improve employees’ ability to live free from
gender/sexual/ethnic/racial discrimination and ageism.
Activities that contribute to material impacts:
●
Implementation of Diversity, Equity & Inclusion Policy:
race, gender, sexual orientation, age, disability, or background, have equal access to opportunities and are treated
with respect and fairness.
●
Implementation of Workplace Violence and Harassment Policy:
provides mechanisms for reporting and corresponding complaints, and ensures that all employees work in a safe
and respectful environment.
●
Establishment of inclusivity and diversity Targets:
within an organisation and in Top Management.
●
The Boardroom initiative:
prepare them for board positions.
●
Women in Banking initiative:
leadership roles through mentoring, interactive workshops, virtual masterclasses, gaming and various engaging
activities.
●
Delivery of
Workplace Violence & Harassment virtual training sessions
within 2024.
●
Implementation of
Inclusive Leadership virtual sessions
●
UN Women Empowerment Principles initiative
: Through the impactful community of “Women in Banking”, the Bank
embraces the 7 Principles of Women’s Empowerment by the United Nations to promote gender equality in the
workplace.
●
Women in Tech initiatives:
Eurobank IT/Digital Unit
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Our actions to improve employees’ ability to live free from gender/sexual/eth nic/racial discrimination and ageism, originally
developed for our core operations, are strategically adapted and deployed across subsidiaries in Bulgaria, Cyprus, and
Luxembourg. Examples of relative initiatives are the establishment of Key Function Holder Diversity Policy in Hellenic Bank,
the established mechanisms of all subsidiaries to support appropriate inclusion, etc. While these programs are tailored to
address the specific local contexts and regulatory environments, they remain firmly aligned with Group’s overarching
corporate sustainability objectives.
Scope of impact:
Actions promoting positive impact of:
Supporting employee’s upskilling and well-being by providing training programs, satisfying and high-quality working
conditions, including adequate workspace and respect of privacy.
Activities that contribute to material impacts:
●
Development Plans and Improvement Plan:
behaviours through targeted training and development initiatives, aligning their skillsets with their current roles or
potential future positions.
●
Talent management programme:
●
Empowerment programmes: program that empowers employees, so that they can assume more demanding roles
and improve their leadership skills.
●
Occupational Health and Safety Management System: the Group applies all measures required under national and
EU legislation to ensure the health and safety of its employees
●
myPROSPERITY: well-being program that aims to support employees facing daily challenges in their personal, family
and professional environment.
o
Financial well-being initiative: training sessions for financially responsible decision making and skills, and
platform access providing awareness and saving tips
o
Wellbeing podcasts and inspirational talks
o
The Coach: on demand premium training and wellness platform
o
Stress Management- self-care sessions
Eurobank is committed to fully protecting and upholding the personal data rights of its employees, ensuring compliance with
the General Data Protection Regulation (GDPR).
Our actions to protect and uphold the personal data rights of Group’s employees, ensuring compliance with the General
Data Protection Regulation (GDPR)., originally developed for our core operations, are strategically adapted and deployed
across subsidiaries in Bulgaria, Cyprus, and Luxembourg. While these programs are tailored to address the specific local
contexts and regulatory environments, they remain firmly aligned with our overarching corporate sustainability objectives.
Scope of impact:
Actions promoting positive impact of:
Generating direct, indirect and induced jobs across the value chain, providing competitive wages and benefits in alignment
with the renumeration policy, while also incorporating Employee Engagement surveys to quantify employees’ opinions on
well-being.
Activities that contribute to positive impacts:
●
Supporting employees and their families: a benefit scheme has been in place applying to all its employees that
includes indicatively private healthcare and life insurance, pension capital management scheme through the Group’s
Occupational Fund, maternity benefits, discounted rates for the Group’s mortgage products and services.
●
Gender pay gap analysis
●
WeSay 2023 survey: internal all-employee engagement survey to provide opinions on issues such as job satisfaction,
employee engagement and wellbeing.
Scope of impact:
As part of the materiality assessment, key risks and opportunities that arise from both the positive and negative impacts of
own operations have been identified. These include social factors, as well as those connected to own workforce dependencies.
Equal Treatment and Opportunities for All
Impact
Positive
Actual
Implementing internal management systems and initiatives that improve employees’
ability to live free from gender/sexual/eth nic/racial discrimination and ageism.
Negative
Potential
Lack of established policies, measures and actions increases the risk of discrimination
incidents within Group’s operations, potentially impacting the well-being and morale of
employees.
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Other work-related rights
Impact
Positive
Actual
Supporting employee’s well-being through providing satisfying and high-quality working
conditions, including adequate workspace and respect of privacy.
Working conditions
Risk
Non-compliance with the modern workplace expectations such as good working conditions, adequate
salaries, and workplace safety, can affect employees' motivation and performance, leading to
decreased productivity.
Opportunity
Demonstrating commitment to exemplary working condition expectations, such as offering adequate
salaries, promoting work-life balance, and ensuring workplace safety, can attract and retain
employees.
The environmental pillar of the Bank’s Operational Impact Strategy is centered around reducing carbon emissions and
achieving operational net zero by 2033. Key drivers in order to achieve this target are energy efficiency plans, transitioning
to electromobility, minimising business travel, transitioning to cloud services as well as becoming a paperless banking
network. The Bank’s operational transition plan is not expected to have material impacts on its employees.
The financed impact pillar of the Bank’s Sustainability Strategy focuses on aligning the portfolio with 1.5
o
C sectoral transition
pathways (which is also the case for subsidiaries’ portfolios) through the promotion of sustainable financing as well as the
management of sustainability-related risks. Efforts towards those areas will require for employees to gradually focus on
promoting sustainable financing / products and consider client sustainability risks in their day-to-day activities. These
aspects might entail upskilling which is expected to have a positive effect on employees.
Eurobank is a signatory to the UN Global Compact since 2008, and is committed to respecting, actively supporting and
promoting the 10 fundamental principles relating to human rights, labour rights, protection of the environment and anti-
corruption. Eurobank is committed to upholding the highest standards of human rights and ethical conduct throughout its
operations and supply chain. Based on its Code of Conduct and Ethics and Human Rights Statement, the Group adheres to
upholding the highest standards of human rights and ethical conduct throughout its operations and supply chain. It is
ensured there are no operations at significant risk of incidents of forced labor, compulsory labor and child labor.
Conducting the materiality assessment, the main types of people of own workforce who are or could be negatively affected
have been identified. Some employees may be at greater risk of harm. To gain this insight, the materiality assessment is
informed by Diversity, Equity, and Inclusion Policy, which identifies as vulnerable groups those that may experience gender
or age discrimination, people with disabilities and LGBTQ individuals. “Equal Treatment and Opportunities for All” related
risks and opportunities could result from impacts and dependencies on those vulnerable group of people within own
workforce.
3.1.2
Policies & Actions
Policies related to own workforce [S1-1]
Eurobank has adopted policies to manage its material impacts, risks, and opportunities related to its own workforce and
disclose them in accordance with the minimum reporting requirements laid out in the Minimum Disclosure Requirements with
regards to poli cies (MDR-P) as defined in ESRS 2.
Eurobank is committed to engaging with stakeholders by ensuring a high
level of accountability in policy development and implementation. Policies are approved by the appropriate Governance
bodies such as the Board of Directors or specialized committees, which ensure that there is alignment with the Group's
strategic goals and stakeholder interests.
The Group is committed to opposing all forms of discrimination, inequality, and human rights violations, actively promoting
individuality in line with its Diversity, Equity & Inclusion Policy and Human Rights Statement. It ensures that all policies,
procedures, and human resource management practices are guided by a deep respect for human rights, fostering an
environment where diversity and equity are recognised and celebrated. Through the implementation of inclusive policies,
commitments, and mechanisms, the Group reinforces its dedication to human rights within its workforce, in alignment with
the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work,
and the OECD Guidelines for Multinational Enterprises.
Eurobank prioritises respect to human rights in line with the UN Guiding Principles on Business and Human Rights. The Group
avoids causing or contributing to adverse human rights impacts through its own operations and business relationships. As a
signatory of the UN Global Compact since 2008, Eurobank actively supports the 10 principles related to human rights, labour
rights, environmental protection, and anti-corruption, reporting on these issues annually in its Sustainability Report. Eurobank
and Postbank are also signatories of the UNEP FI Principles for Responsible Banking, publicly disclosing self-assessment
reports as part of their commitment to responsible banking practices. Additionally, Eurobank adheres to banking labor
agreements in Greece and the other countries and participates in various organisations promoting sustainable growth and
responsible entrepreneurship, including the Steering Committee for Sustainability, Governance and Green Banking of the
Hellenic Bank Association.
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Eurobank’s Human Rights Statement applies across its value chain, encompassing employees, customers, and suppliers. A
key priority is ensuring all employees are treated with respect and dignity, promoting fairness through the exclusion of forced
and child labour, equitable compensation, reasonable working hours, and upholding freedom of association and data
privacy. With customers, Eurobank fosters a relationship of trust, offering fair and transparent services while encouraging
feedback through accessible complaint procedures. The Βank prioritises clear, customized communication, and compliance
with regulatory standards, enhancing customer experience. In supplier relations, Eurobank engages with those whose values
align with its commitment to human rights, labour rights, and environmental standards. The Βank’s Procurement Policy
ensures suppliers meet local and international regulatory requirements. When human rights violations are identified in its
value chain, Eurobank takes immediate corrective action in collaboration with authorities, reinforcing its dedication to ethical
business practices and sustainable development.
Forced Labour, Child Labour, and Human Trafficking
Eurobank maintains a strict policy against all forms of forced labour, child labour, and human trafficking. The Bank prohibits
these practices both within its own operations and across its supply chain. This commitment ensures that Eurobank’s business
practices align with ethical standards, promoting human rights and dignity in all aspects of its operations. By upholding
these principles, Eurobank contributes to a fairer and more just workplace environment and ensures that its business
relationships adhere to high ethical and legal standards.
Wellbeing and Health & Safety
The Group is committed to maintaining the highest standards of Occupational Health and Safety, recognising the well-being
of its employees as a critical asset and driver of growth. In line with national and European legislation, health and safety risks
are proactively assessed and managed, ensuring a safe environment for employees, customers, visitors, and stakeholders.
The Group sets clear annual objectives, regularly monitor performance, and encourages continuous improvement. Through
innovative crisis response plans, regular health check-ups, employee training, and ongoing safety assessments, a culture of
safety is promoted. The main goal is to establish a benchmark in the banking sector for health and safety.
The Group applies all measures required under national and EU legislation to ensure the health and safety of its employees,
customers and associates. At the same time, the Bank applies a Health and Safety Management System (HSMS), as per the
ISO 45001:2018 international standard on Occupational Health and Safety. In this context, Eurobank implements a prevention
and safety programme for its employees through various initiatives. Eurobank’s Occupational Health and Safety System
covers all its employees and activities.
Certain employees are designated as Safety Coordinators and Deputy Safety Coordinators. The responsibilities of the Safety
Coordinator and the Deputy Safety Coordinator include their obligation to immediately notify the competent officers of any
work-related risks and submit regular written reports regarding the current situation at the premises they are responsible for.
Diversity and Inclusion
The Group has committed to fostering a culture of diversity and inclusion and has adopted the “
Diversity, Equity & Inclusion
in Eurobank”
policy to ensure compliance with human rights standards, mitigate discrimination, and foster a diverse and
inclusive workplace.
The objectives of the Diversity, Equity, and Inclusion (DEI) policy are focused on creating a diverse, equitable, and inclusive
workplace where all employees have equal opportunities, feel respected, and can thrive. The Group aims to build a
representative workforce, free from discrimination, and promote transparent processes that foster talent and clarity. The
Group is committed to strengthening an inclusive culture where individuals feel they belong and are empowered to be their
authentic selves. Inclusive leadership is key, and the leaders are accountable for creating an environment that supports all
employees. With a zero -tolerance policy for harassment and discrimination, a safe, healthy, and flexible work environment
that prioritises employee well-being is ensured. Externally, the Group focuses on creating a positive societal impact through
education, employment opportunities, and social initiatives, while promoting diversity in marketing and communications and
ensuring ethical, non-discriminatory banking services.
The DEI policy outlines clear and specific commitments to support individuals from groups at particular risk of vulnerability,
ensuring an inclusive, equitable, and supportive environment for all employees. The policy focuses on the following key areas:
Gender Equity
"Women in Banking - Leadership Acceleration Program" and through successful engagement with Bloomberg’s Gender
Equality Score evaluation. Additionally, initiatives like "the Boardroom" are designed to promote female representation in
leadership and decision-making roles, ensuring women have equal opportunities for career advancement.
Parents and Families
support parents, regardless of gender, age, or marital status.
Age Diversity
and experience are transferred effectively.
People with Disabilities
offering equal opportunities for advancement, learning, and fair compensation.
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LGBTQ+
– The policy ensures a safe, respectful, and inclusive environment for LGBTQ+ employees, with protections against
discrimination and harassment.
The policy applies to Eurobank Services and Holdings S.A., its subsidiaries (international and in Greece), shareholders, Board
members, directors, representatives, employees, as well as to all interactions with customers, visitors, agents, contractors,
suppliers, investors, external service providers, business associates and the communities in which it operates.
The Nomination & Corporate Governance Committee is responsible for monitoring and assessing on an annual basis the
effectiveness of the DEI Policy.
The policy is readily accessible to all potentially affected stakeholders, as well as to those responsible for its implementation,
through the Groups' official website.
Eurobank prioritises mutual respect, dignity, and professionalism, ensuring that all employees treat the Group, its clients, and
colleagues with respect and integrity. The Group values diversity and fosters an inclusive environment that welcomes
individuals regardless of age, gender, ethnicity, religion, disability, or other personal characteristics. Eurobank is committed
to equal employment opportunities, meritocracy, and fair treatment for all staff. It upholds the principles of understanding
and cooperation, encouraging diverse opinions and supporting a culture free from discrimination, harassment, or
intimidation. The Group has a zero-tolerance policy for such behaviours and provides clear channels for reporting any
concerns, including through managers, HR, compliance, or a dedicated hotline. Staff are encouraged to speak up if they
suspect any unethical conduct or regulatory issues.
Furthermore, the Group’s commitment to diversity and inclusion aligns with its values and is reflected in its
Code of Conduct
and Ethics
. The Code applies to every staff member, irrespective of segment, level or job description, as a daily reference
manual. All senior management have the duty to communicate the values of Eurobank and inspire all employees under their
responsibility. The Code is distributed to 100% of the staff members, including the Board Members, as well as any individuals
who offer advisory services or are employed based on fixed- term or project employment agreements. With reference to the
Code of Conduct and Ethics, staff members confirm having read and accepted the Code through an electronic platform.
Compliance and the relevant auditing bodies of Eurobank are responsible for monitoring and implementing the Code of
Conduct and Ethics.
Respect for human dignity is at the core of Eurobank’s workplace culture, and the Group adopts a strict zero-tolerance stance
against violence, harassment, and sexual harassment. Any employee who experiences or witnesses such incidents is
encouraged to report them promptly through available communication channels. All reported incidents are treated with the
utmost seriousness, confidentiality, and respect, with a thorough investigation and disciplinary action if necessary. Eurobank
strives to maintain a safe and respectful environment where all associates are protected from any form of harassment or
violence.
The
applies to a wide range of individuals associated with Eurobank. It includes all
members of the Group's staff, regardless of the type of employment contract they hold, whether permanent, temporary, fixed
term, or open-ended. Additionally, it covers individuals working under project contracts, independent service agreements, or
salaried mandates. The policy also extends to employees contracted by third -party service providers who work on behalf of
Eurobank, as well as those participating in training programs, such as interns, apprentices, and volunteers. It applies to
members of Eurobank's staff even if their work contract has expired, and it also covers candidates seeking employment with
the Group. To ensure transparency and accessibility, the policy is readily available to all staff, candidates, and other
stakeholders through the corporate website.
The Committee against Workplace Violence and Harassment is entrusted with the oversight and implementation of this
policy, ensuring that its provisions are effectively carried out across the organisation.
Processes for engaging with own workforce and workers’ representatives about impacts [S1-2]
In alignment with the Sustainability Policy Framework, Eurobank engages with its employees. More specifically, it prioritises
employee upskilling and reskilling, maintains professionalism, and enforces anti-discrimination policies to foster an inclusive
workplace. The Group offers comprehensive benefits for employees regardless of gender, age, or marital status. Regular
meetings, breakfast sessions, and events facilitate dialogue between management and staff representatives. Enhanced
communication channels like HR4U and the Connected portal ensure responsiveness to employee inquiries. The Group
promotes work -life balance, social and environmental awareness, and volunteering and implements an ESG upskilling plan
and awareness initiatives for employees and clients to support sustainability efforts.
The perspectives of employees inform the Group’s decisions and activities aimed at managing the actual and potential
impacts on them. Employees participate in stakeholder engagement as part of the annual DMA, which enables the
understanding of their concerns and priorities. The material topics identified through this engagement are then taken into
account and inform the Group’s policies, actions, and targets. This ensures that the issues that matter most to employees
are addressed in the decision-making processes. Furthermore, the engagement occurs directly with employees, through the
completion of questionnaires on potential material impacts, risks, and opportunities. The Sustainability Management
Committee is responsible for overseeing the DMA process and approve the proposed contents of the Sustainability-related
reports, that derive from the results of the DMA. The assessment of engagement effectiveness is measured with the
participation rate.
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The Group ensures that the workforce’s insights actively shape its decisions and guide its activities aimed at managing both
the actual and potential impacts. The engagement occurs directly with the employees as well as with their representatives.
Eurobank fosters the dialogue with its own employees and the engagement with employees is an ongoing process with the
means of communication presented in bullets below:
●
Sustainable dialogue with employee representatives at company and industry level.
●
Staff-Management communication via regular meetings, breakfast with the Management and events.
●
Communication through the HR4U contact centre.
●
Connected, the Bank’s internal portal.
●
Axiopoio, & Senior Management Performance Feedback modern employee performance assessment system.
●
Upskilling and Reskilling of Employees.
●
Social and environmental issues awareness campaigns (TeamUp Employee Volunteering Team).
●
myPROSPERITY wellbeing programme.
●
360
o
Improving employee engagement is a crucial goal for Eurobank, seeking to enhance productivity, foster a positive work
environment and retain top talent. In pursuit of this objective, the Group has extended its efforts aiming at engaging its
workforce through various initiatives and communication campaigns. These meticulously crafted initiatives leverage all
available communication channels, including Viber messages, screensavers, emails, videos, intranet and more. By prioritising
employee engagement with 360-degree communication initiatives, Eurobank demonstrates its commitment to cultivating a
supportive and motivating work environment, conducive to individual and organisational success
In response to the above, Eurobank has conducted an internal all-employee engagement survey. The WeSay survey, that
took place in 2023, was conducted fully digitally seeking employees’ opinions on various issues concerning the Group, work
processes and the work environment (such as compensation and benefits, job satisfaction, employee engagement and
wellbeing, and corporate purpose). The survey involving all employees in Greece and Cyprus was completed with a significant
participation rate the Group. The survey findings were studied thoroughly, and strengths and areas for improvement were
identified, shaping Eurobank’s next steps accordingly.
To communicate its strategy and foster 2-way dialogue between the management team and the employees, Eurobank held
meetings with the Management, with employees from all divisions participating, as well as 2 Senior Management meetings.
At the same time, aiming to foster an open line of communication with the regional network, 4 onsite visits from Retail
Management and 5 Top Management roadshows took place in regional markets across Greece.
People Advisory Committee holds the operational responsibility to ensure review and evaluate all major employee
engagement initiatives (employee surveys, communication etc.)
Additionally, the Group aligns its actions with corporate values, principles and commitments by issuing the Human Rights
Statement, the DEI policy as well as the Policy against Harassment and Violence in Workplace. Comprehensive and
transparent information is provided throughout engagement with all business partners to ensure compliance with legal
requirements in labour and environmental matters, respect for human rights, and the promotion of demand for socially
responsible products and services.
Processes to remediate negative impacts and channels for own workforce to raise concerns [S1-3]
In case of negative impacts on employees, Eurobank ensures, through grievance mechanisms and its illegal or Unethical
Conduct Policy, that the appropriate remediation actions are taken.
Eurobank encourages all stakeholders, including employees, to report instances of potential or actual human rights impacts,
unethical conduct, or violations such as discrimination, harassment, or intimidation. Eurobank has established clear channels
for reporting, including branches, the website, phone, email, and in-person communication. Employees are expected to
uphold a safe, respectful, and inclusive work environment, and are encouraged to speak up about concerns regarding ethical,
legal, or regulatory issues. Eurobank’s Policy of Reporting Illegal or Unethical Conduct ensures that staff and third parties can
report misconduct without fear of retaliation, fostering trust and protection.
The responsible officer for the receiving and monitoring of reports (RRMO) is tasked with providing clear guidance on how
to submit a report, receiving and confirming receipt of the report within seven working days, and performing an initial
assessment. They are also responsible for designating the appropriate unit or person to handle the report, ensuring the
confidentiality of the reporting person’s identity and any third parties mentioned. Additionally, the officer monitors the
progress of the investigation, maintains regular contact with the reporting person, and ensures that feedback is provided
within a reasonable period, not exceeding three months from the receipt confirmation. The officer also plans and coordinates
relevant training efforts to support the process.
The Board of Directors is responsible for ensuring the existence of a robust framework for reporting illegal or unethical
conduct, promoting continuous improvement of the Policy, committing to, promoting and practicing a speak-up/listen-up
culture and ensuring the appointment of the RRMO.
The Group encourages its workforce to document incidents of harassment, including actions taken to address them and prior
requests for assistance. The Group Human Resources, Group Compliance, and Group Internal Audit work together to examine
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grievances or complaints, ensuring a prompt, thorough, and impartial investigation while maintaining confidentiality and
protecting personal data. If the investigation confirms a violation of the Group’s Policy against Workplace Violence and
Harassment, the responsible Committee determines appropriate disciplinary measures, taking suitable and proportionate
action to prevent recurrence of such incidents.
According to the Policy for Reporting Illegal or Unethical Conduct, Eurobank provides protection against reprisal and keeps
confidential the identity of those who have submitted information they know and consider to be accurate and true.
Additionally, there are policies in place to prevent any form of retaliation against individuals, including workers'
representatives, utilising these channels. For further reference, applicable information has been disclosed in accordance with
ESRS G1-1 Business conduct policies and corporate culture.
Action on material impacts on own workforce, and approaches to managing material risks and pursuing material
opportunities related to own workforce, and effectiveness of those actions [S1-4]
Eurobank has formulated action plans to effectively manage the material impacts, risks and opportunities relating to its
workforce, which are consistent with ESRS 2 MDR-A. The following outlines a summarized description of the action plans and
allocated resources.
Eurobank has implemented the following initiatives, aimed at delivering positive impacts to its own workforce.
Certifications
The Bank consistently provides a range of learning solutions to facilitate employees achieve certification/re -certification of
their professional competence in providing investment advice, insurance mediation, mortgage credit and small business
banking. Over 1,500 new certifications were recorded in 2024, while more than 3,000 were re-certified.”
Development Plans and Improvement Plans
Career development holds significant importance within the Group. To facilitate this, the Group uses both Development
Plans and Improvement Plans, which encompass various functionalities associated with career progression. Through these
mechanisms, employees work with their managers to create tailored Development Plans that align with their professional
growth and career aspirations. Alternatively, an Improvement Plan can be crafted to outline a strategic path for enhancing
performance and addressing areas requiring development. Both plans are designed to cultivate employee competencies
and behaviours through targeted training and development initiatives, aligning their skillsets with their current roles or
potential future positions.
Talent management programme
Eurobank implements a structured bank-wide Talent Management Programme, aiming at identifying, developing and
effectively utilising a robust talent pipeline
to deliver business strategy. During 2024, the Group designed and introduced a
new segmentation for the talent pool, focusing on mobility as well as structured talent career discussions. Through these,
next career moves such as job swaps and various development activities, like mentoring and job shadowing, were offered to
career-oriented talents.
PROSPER Class of 2023 & 2024
In the context of developing the Future Leader pool recognised through the Talent Management process, the Bank created,
in collaboration with ALBA Graduate Business School, a unique Talent Development experience focusing on Leadership. The
program aims to provide participants a modern educational and developmental experience, with opportunities for outside-
in perspectives, interactivity, networking, practical guidance and useful discussions with experienced academic professors
that will empower their out-of-the -box thinking, strategic mindset and leadership capabilities. During 2024, 35 employees
completed the 2023 Class, while 36 participants joined the 2024 Class.
BeAPro in Banking Season 3
Investment Banking, Wealth Management & Markets, as well as Risk Management Units, with the objective of identifying
and retaining high caliber candidates with 1-3 years of experience and a passion for a career in Banking. The assessment
framework for this program was comprehensive, utilising a mix of hybrid assessment tools and methodologies, to maintain
high quality standards, enrich candidate experience, and ensure equitable practices. A total number of 20 candidates have
been successful and will be joining Eurobank through the BeAPro in Banking Season 3talent program in early Q1 2025.
Regarding employee
mobility
, the
Career Marketplace
while also providing essential information about potential career paths within the organisation. Additionally, it offers tips
and best practices for successfully engaging in the internal recruitment process. In 2024, a total of 82 job openings were
posted on the Career Marketplace, with 48% of job vacancies in Greece being filled internally.
Career Forums
reinforcing its reputation as an employer of choice. The Group actively participated in prominent career forums across
Greece, including the Panorama of Entrepreneurship and Career Development, Career Days (Kariera.gr), and Talent Days
(hosted by CollegeLink). Additionally, Eurobank engaged in career events organised by leading universities in Greece, such
as the Athens University of Economics and Business, the University of Piraeus, and the University of Macedonia, among
others.
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Other Career Events
th
Career Development, hosted the ‘Eurobank Business Day’ on site career event. This initiative provided 60 young students and
graduates from various institutions the opportunity to engage with Eurobank executives and talented employees, gaining
insights into the Group's activities. In 2024, the Eurobank Business Day focused on Technology and Digital streams,
highlighting the Group’s innovative culture.
Succession planning
The Group’s C-Level Succession Planning framework is assessed annually, following a structured and comprehensive process,
according to the guidelines of the Group’s Nomination and Corporate Governance Committee as well as its Board of
Directors. The Bank has a C-level Succession Planning Policy in place to ensure executive bench strength for the C-level roles
is aligned with the Group strategy, purpose and leadership culture, aiming to achieve business continuity and growth. C-level
Succession Planning focuses on mobility of successors, while female representation is of outmost importance. In 2024, female
successor representation increased to 29% at C-Level. Eurobank also introduced targeted career discussions with high
potential internal successors, with the discussion focusing on progress and goals in their current role, career aspirations and
development areas. Key radar talented resources were identified and will be actively managed through the Group Talent
Mobilisation programme launched in 2022.
Empower the Network
In 2024, the Group launched the “Empower the Network” project, aiming to guarantee operational efficiency and at the same
time offer internal advancement opportunities to high performing and high potential colleagues of the Group’s Branch
Network. More specifically, 29 Branch Managers, 13 Senior Relationship Managers, and 5 Area Managers were placed in the
relevant positions. Besides internal advancements into people management roles, the project included selective external
hires as well. In total, 40 external candidates joined the Group through the program.
In this context, replacement needs were thoroughly reviewed in light of the updated operational model, and key roles were
assessed accordingly. The selection process involved a comprehensive assessment centre and the process was concluded
with personalized feedback and career discussions for all participants.
Wellbeing and work -life balance
In 2023, Eurobank designed and introduced its first wellbeing programme, myPROSPERITY, which aims to support employees
facing daily challenges in their personal, family and professional environment. The myPROSPERITY support framework was
designed to cultivate a more humancentric work environment and, therefore, help employees listen and be heard, feel better
and lighten the burden they carry in their daily lives, aspiring to be a point of reference for all Bank employees.
In this context, the myPROSPERITY programme operates on 4 key pillars:
●
Developing new habits that help employees improve their physical condition (For my body).
●
Developing new personal skills that improve their emotional endurance, whether they are single, partners, parents
or caregivers of their loved ones (For my soul).
●
Supporting them in times when they are riddled with concerns and pressure, strengthening their ties with their social
environment, giving back and empowering them (For my community).
●
Providing a sense of security regarding the management of their financial future (For my future).
The objective is to offer fresh perspectives to uplift the mood, morale and physical wellbeing of employees, thereby fostering
resilience. These pillars centre around themes directly linked to wellbeing and mental health, addressing everyday stresses.
As part of this initiative, employees eagerly participated in 11 online myPROSPERITY Talks delivered during working hours,
delving into contemporary topics. Additionally, the employees had access to articles and podcasts, via internal channels, that
not only inspired and informed them, but also equipped them with new skills, empowering them to fortify their emotional
resilience.
Women in Banking (WiB)
As part of its commitment to Diversity and Inclusion, the Group introduced the 3rd Season of Women in Banking (WiB) in
2024, following the highly successful and award-winning previous two seasons. WiB is a programme aimed at empowering
women within Eurobank to advance to higher leadership roles, drive transformative change within the organisation, and
advocate for an inclusive and equitable work environment. Designed by and addressed to talented women, this programme
integrates mentoring with learning through interactive workshops, virtual masterclasses, gaming and various engaging
activities.
The initial two seasons of WiB concluded with resounding success, encompassing 2,200 hours of educational programmes
and 980 hours of mentoring sessions. The collaboration among participants from the 1st and 2nd cycles, comprising 120
mentors and mentees, culminated in the formation of a vibrant and influential community within Eurobank. This community
aims to foster social connections, expand professional networks within the Group, and enhance professional growth through
knowledge and idea exchange. The WiB Community has already undertaken several initiatives with the objective of
maintaining its active presence and generating a positive impact on its members, other female colleagues within Eurobank
and the broader organisation.
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WiB not only serves as a cornerstone for women’s empowerment, but also plays a pivotal role in championing diversity and
inclusion, cultivating a workplace founded on acceptance and mutual respect. With a forward-looking approach and
unwavering dedication, the WiB community is spearheading endeavors to empower women and foster a more inclusive
leadership landscape.
The abovementioned initiatives are the ones in place with the wider spectrum, related to the employees of the Greek entities.
There are more initiatives implanted on a local level, based on the specific characteristics and needs of its entity.
In 2024, Eurobank signed the Women’s Empowerment Principles (WEPs) which provide essential guidance for businesses
striving to promote gender equality and empower women within the workplace, marketplace, and broader community.
Established by UN Women and the UN Global Compact, these principles are informed by international labour and human
rights standards, recognising that businesses play a critical role in advancing gender equality and women's empowerment.
Eurobank's commitment to these principles transcends mere rhetoric; it is integrated into its Code of Conduct and reflects
the organisation's core values. With a steadfast emphasis on empowering women and enhancing their leadership
opportunities within the Group, Eurobank's dedication to the WEPs represents a meaningful step towards this goal. By
adopting the Women’s Empowerment Principles, the Group reaffirms its unwavering commitment to fostering a sustainable
and inclusive future for its organisation, its employees, and the wider community in which it operates.
Connected intranet
Eurobank’s internal corporate intranet serves as a vital resource for the employees, keeping them informed on all strategic,
business, HR and technology-related matters. It is a digital platform that promotes the Group’s actions and initiatives,
providing the employees with immediate access to important information. In 2024, the content of the intranet was
maintained and updated, resulting in 8,363 users visiting Connected, and on average, users spent several minutes (06:50)
per session on the intranet. Additionally, to encourage internal social networking and the exchange of information and ideas,
the Yammer platform is also available to the employees.
The effectiveness of these measures is actively tracked through regular employee feedback surveys, performance metrics,
retention rates, alongside ongoing monitoring of employee satisfaction and engagement levels.
Additionally in order mitigate and a remediate negative impacts on its workforce stemming from Group’s operations,
Eurobank have planned the following actions:
Work life balance and mental health
Eurobank extended the operating times and days of the existing Mental Health Employee Assistance Helpline for all its
employees, from Monday to Sunday, including holidays, from 15:00 to 23:00. The Helpline operates completely confidentially
and without any financial burden. The dedicated advisers from HELLAS EAP guide and support the Eurobank’s employees on
a variety of relevant topics, such as stress management at work, emotional resilience, family tensions or addiction issues.
Eurobank also offers:
●
Additional leave on top of the statutory one, such as childbirth leave (pregnancy and post-partum) and maternity
leave, with the option of reduced working hours or accrued leave.
●
Leave for a child’s educational -related school activities.
●
Paid parental leave, minimum 2 weeks more than the legal requirements, unpaid parental leave, paid leave for
single-parent families, paid leave to adopt a child, paid parental leave for parents with disabled children, paid
family/care leave for medical rea sons.
●
1 working hour less per day to employees with certified disability equal to or more than 50%.
●
Measures to help employees keep their schedule within their working hours and promote their work -life balance, i.e.
by sending out emails as reminders to clock out on time, in compliance with regulatory requirements.
●
Hybrid Work Model up to 3 days from home: 81% of middle or back-office employees have opted for Hybrid Work
Model via contractual agreement in accordance with Eurobank's Hybrid Work Policy.
●
The opportunity to the majority of employees to choose their working hours from a range of options, typically within
a 2-hour span, in order to better accommodate their needs.
Learning initiatives regarding violence and harassment in the workplace
Eurobank continually strives to promote a safe and respectful work environment. Therefore, a digital learning programme
was implemented during 2023 for all Group employees in Greece, aiming to equip people with the necessary knowledge and
skills to identify, prevent and properly respond to instances of violence and harassment. In addition, separate virtual
workshops were addressed to team managers, to provide them with practical knowledge to prevent such behaviours, while
amplifying the effort towards nurturing an environment of mutual respect and dignity, where no one tolerates harassment in
any form.
Diversity, equity and inclusion
Discriminations based on nationality, gender, parental status, colour, religion, health, sexual orientation, etc. are not in tune
with its principles and values. The Group has adopted a zero-tolerance approach, which applies to all staff and prohibits all
forms of discrimination, whether direct or indirect. It is also reflected in contractual documents adopted when entering into
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relationships with third parties. To this end, it has introduced a Diversity, Equity and Inclusion Policy and Workplace Violence
and Harassment Policy.
Conducting the WeSay 2023 survey
As analyzed further in section “Processes for engaging with own workforce and workers’ representatives about impacts [S1-
2]”, Eurobank has implemented the initiative “WeSay 2023 survey” in order to monitor employee satisfaction and provide
opportunities for feedback that will help identify negative impacts, enabling proactive intervention.
Eurobank tracks the effectiveness of these measures in practice by setting measurable targets relevant to the matters of
employees’ well -being, inclusivity, and diversity as presented below:
●
Achieve at least 35% gender diversity for Top Management in Greece by 2030: measures the increase the
representation of women in senior leadership positions within organisation
●
>20% of employees participating in mental health training courses by 2025: tracks the improvement of employee
well-being and the fostering of a supportive workplace environment
●
Achieve an increase in wellbeing score of people engagement survey: measures various aspects of employees’ well-
being in the workplace.
The processes of identification of what action is needed in response to a particular actual or potential negative impact on
own workforce is informed by the Societal Impact of the Operational Impact Strategy and the action plan established as
part of its implementation. Eurobank continues to strengthen its capacity to identify and manage social risks stemming from
Employer Impact.
For more information please refer to: 1.4.1 Information on the market position and strategy of the company [SBM-1]
To address and mitigate material risks stemming from impacts and dependencies on the workforce, the following actions
have been initiated:
●
Comprehensive training programs have been implemented to enhance skill development and reduce skill gaps.
●
Professional growth opportunities have been launched to foster career progression and retain top talent.
●
Well-being initiatives have been rolled, including mental health support, flexible working arrangements, and wellness
programs.
●
An inclusive workplace has been created by establishing diversity and inclusion policies and promoting a culture of
respect and belonging.
3.1.3
Metrics & Targets
Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and
opportunities [S1-5]
Eurobank has set measurable time -bound outcome-oriented targets to advance its commitments towards its employees to
fostering a diverse and inclusive internal environment by 2030 and cultivating a culture of wellbeing by 2026.
●
Improve gender diversity for Top Management
●
Design a Generations Diversity strategy proposal
●
Monitor, disclose and improve Gender Pay Equity Gap
●
Maintain gender balance in workforce and build on actions to promote STEM for women
●
>20% of employees participating in mental health training courses by 2025
●
Investigate, specify and quantify the significant aspects for employees’ wellbeing
●
Measure wellbeing score through people engagement survey
●
Promote inclusive management as part of the Culture shift initiative
The targets support and align with the core principles of the Diversity, Equity and Inclusion (DEI) policy, emphasising diversity,
equity, inclusion and well-being across the organisation. Eurobank demonstrates a long-term commitment to fostering an
inclusive culture where all employees, regardless of gender, background, or identity, feel valued and have equal opportunities.
The focus on maintaining gender balance in the workforce and promoting STEM for women aligns with the DEI policy’s goal
of advancing gender equity. Moreover, the commitment to inclusive management as part of the Culture Shift initiative
supports the development of an inclusive working environment. The design of a Generations Diversity strategy proposal
further reflects the company's commitment to fostering an equitable and inclusive environment that recognises the value of
diverse perspectives across all age groups. Monitoring and improving the Gender Pay Equity Gap ties directly to the DEI
policy's equity objectives, ensuring that compensation is fair and transparent. Additionally, the targets focused on workforce
well-being, including achieving an increase in wellbeing score and offering mental health training to over 20% of employees
by 2025, underscore the organisation's dedication to the holistic well -being of its employees.
Indicative achievements against targets for 2024 are as follows:
●
Continuation of the “myProsperity” initiative (including inspirational talks by external experts), as part of the Group’s
Wellbeing Framework.
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●
Implementation of the Culture Shift programme, promoting new ways of collaboration in the workplace.
●
Training programmes in place to promote diversity and inclusion, as well as anti-harassment principles, addressed
to all employees.
●
Completion of wellbeing initiatives to promote mental health.
●
Design a full scope People Engagement Survey, including a wellbeing and life-work-balance section, planned to be
executed in Q1 2025.
The Sustainability Strategy defines the Group’s sustainability priorities and objectives. The Operational Impact Strategy is
deployed through milestones and KPIs that support the annual and the long-term interim targets set across multiple project
streams, spanning over the next decade. It is developed and deployed along 3 pillars and corresponding corporate
objectives, supported by a governance structure of project streams (one per each commitment) and the supervisory ESG/OIS
Committee. Progress is regularly reviewed at the Sustainability Management Committee. Links are established with
Transformation streams as well as corresponding ISO management system standards, to ensure substantiation and
certification of activities, validate target setting and measured performance, and systematically monitor progress through
internal reviews and external assurance. The Group plans to revisit and update its Sustainability Strategy on an annual basis,
in line with best market practices and regulatory requirements. The targets’ progress will be monitored throughout the year
to ensure that they are met with a final evaluation at the end of the period they are set.
Equal Treatment and Opportunities for All, Other Work -Related Rights, Workforce Wellbeing, and Working Conditions have
been identified as material topics during stakeholder engagement process. The commitment to fostering a diverse and
inclusive internal environment, alongside cultivating a culture of wellbeing are informed by the impacts, risks and
opportunities that are directly linked to these topics.
Characteristics of employees [S1-6]
In 2024, the Group’s employees amounted to 12,833.
The following table illustrates the total number of employees by headcount, offering a breakdown by gender, as permanent
employees, temporary employees, non-guaranteed hours employees. In 2024 12,785 employees were of permanent
employment status,
while the female employees represented 65.7% of the total headcount.
Total in Head count
Employees as of 31.12.2024
Male
Female
Other
Not reported
Total
Total number of permanent employees
4,396
8,389
-
-
12,785
Total number of temporary employees
14
34
-
-
48
Total of non-guaranteed hours employees
0
0
-
-
0
Total number of employees (sum)
4,410
8,423
0
0
12,833
The following tables present the employee distribution for the Group’s countries of operation – Greece, Bulgaria, Cyprus and
Luxemburg.
Specifically, Greece accounted for c. 47% of the Groups total headcount, with c. 57% female employees. Bulgaria accounted
for c. 30%, Cyprus c. 21% and Luxemburg c.1% of the Group’s total headcount.
Greece
Employees as of 31.12.2024
Male
Female
Other
Not
reported
Total
Total number of permanent employees
2,559
3,499
0
0
6,058
Total number of temporary employees
0
0
0
0
0
Total of non-guaranteed hours employees
0
0
0
0
0
Total number of employees (sum)
2,559
3,499
0
0
6,058
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Bulgaria
Employees as of 31.12.2024
Male
Female
Other
Not
reported
Total
Total number of permanent employees
784
3,075
0
0
3,859
Total number of temporary employees
0
0
0
0
0
Total of non-guaranteed hours employees
0
0
0
0
0
Total number of employees (sum)
784
3,075
0
0
3,859
Cyprus
Employees as of 31.12.2024
Male
Female
Other
Not
reported
Total
Total number of permanent employees
973
1,753
0
0
2,726
Total number of temporary employees
11
31
0
0
42
Total of non-guaranteed hours employees
0
0
0
0
0
Total number of employees (sum)
984
1,784
0
0
2,768
Luxemburg
Employees as of 31.12.2024
Male
Female
Other
Not
reported
Total
Total number of permanent employees
72
52
0
0
124
Total number of temporary employees
3
3
0
0
6
Total of non-guaranteed hours employees
0
0
0
0
0
Total number of employees (sum)
75
55
0
0
130
A total of 1,305 of the Group’s employees departed during the reporting period resulting to an employee turnover rate for
the reporting period of 10.2%. The table below presents the turnover distribution and ratio for 2024:
Employees as of 31.12.2024
Group
Unit
Male
Female
Other
Not
reported
Total
Total number of employees who have left
your entity during the reporting period
Head count
451
854
0
0
1,305
Total number of employees
Head count
4,410
8,423
0
0
12,833
Rate of employee turnover
%
10.2%
10.1%
0
0
10.2%
In the data collection process for employee-related information, all figures are reported in headcount for the reporting year
of 2024. This approach ensures that all relevant personnel metrics across the Group are captured and accounted for in a
consistent manner. The data is meticulously gathered from each subsidiary, ensuring that every entity within the Group
structure is represented. Once collected, this data is consolidated by the Group Human Resources, enabling a unified and
holistic view of the workf orce.
Collective bargaining coverage and social dialogue [S1-8]
Eurobank follows a policy of direct communication with its employees as well as through labour unions. The union with the
largest membership is officially recognised as the representative body for employees in labour negotiations with
management. Over 94.40% of Group’s employees are covered by collective bargaining agreements at the enterprise,
sectoral, and national levels. Management actively collaborates with the unions, supporting scheduled meetings and
fostering open dialogue to monitor developments within the work environment. Collective bargaining agreements address
various issues such as health and safety, compensation, working hours and flexibility, training, career development, equal
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opportunities, absenteeism/leave/illness, and insurance. In line with Eurobank’s internal policies, employees' participation in
trade union activities is a constitutional right, exercised within the framework of existing laws.
Legal trade union activity does not affect the employees’ employment status and development in any way, either positively
or negatively. Employees can monitor and get informed about their trade union rights, as well as the activities of associations,
through various communication channels of their Union and the Greek Federation of Eurobank Employee Unions – OTOE e.g.
websites, emails, notices, labour rights guides, codification of collective agreements).
In addition, regarding Group’s operations in Cyprus, the Employers’ Association of Cyprus Banks which covers all the banks
members of the Association of Cyprus Banks who have a Collective Agreement with the same Trade Union, is responsible for
industrial relation issues and/or discussions for the renewal of the Collective Agreement. Specifically, Hellenic Bank engages
with Trade Unions representing its staff members as part of its ongoing stakeholder engagement activities and negotiates
for the settlement of disputes arising from collective agreement negotiations.
Social dialogue
Group
Unit
2024
Number of employees working in establishments with workers' representatives
Head count
6,971
Total Number of employees
Head count
12,833
Total Employees working in establishments with workers' representatives ratio
%
54.32%
Collective bargaining coverage
Group
Unit
2024
Number of employees covered by collective bargaining agreements
Head count
12,114
Total Number of employees
Head count
12,833
Total Employees covered by collective bargaining agreements ratio
%
94.40%
Diversity Metrics [S1-9]
The Group is committed to fostering equal opportunities for all employees, ensuring fair access to senior management roles,
equitable salary structures, and merit-based evaluations and rewards. Eurobank prioritises performance and potential when
making decisions related to professional development, promotions, and career advancement. Eurobank’s participation in the
Bloomberg Gender Equality Index for the third consecutive year in 2024 highlights its ongoing dedication to responsible and
inclusive growth. This involvement underscores the company’s focus on integrating Diversity, Equity, and Inclusion (DEI)
principles, as well as broader sustainability values, throughout its operations.
The following table presents the gender distribution in number and percentage at top management level. As top
management level is containing the grade levels of Executives and Senior Management within the Group:
Employees in top management ratio
Group
Unit
Male
Female
Other
Not reported
Number of employees at top management level
by gender
Head count
306
149
0
0
Percentage of employees at top management
level by gender
%
67.3%
32.7%
0
0
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Distribution of employees by age group: under 30 years old; 30-50 years old; over 50 years old:
Total number of employees by age
Group
Unit
under 30
years old
30-50 years
old
over 50
years old
Total
Number of employees during the reporting
period
Head count
1,030
8,648
3,155
12,833
Percentage of employees per age group
%
8.0%
67.4%
24.6%
100%
Adequate Wages [S1-10]
All of the Group’s employees receive adequate wages in compliance with the statutory labour laws and salary practices in
place, applicable standard collective and workplace agreements, as applicable to each country of operation.
Training and skills development metrics [S1-13]
Performance Management
In 2024, Eurobank continued to implement the Group Performance Management as well as Learning Policies, designed to
establish a transparent, consistent and effective framework for enhancing employee performance, and aligning with
Eurobank’s strategic objectives and values. This framework translates the Group’s strategy into practice by setting clear and
measurable business objectives for employees and promoting a cohesive organisational culture, by focusing on the
development of the Group’s organisational capabilities and qualitative competencies («how») across all levels. Performance
Management is integrated into SAP Success Factors for enhanced accessibility. Both tools prioritise development and
emphasise continuous feedback, while for Senior Managers, the 360 Feedback methodology is applied.
The percentage of number of employees that participated performance reviews for the year 2024 was 93% for the male
employees and 96% for female employees. In the following table the percentage of employees that participated in regular
performance and caree r development reviews is presented, broken down by gender.
Performance and career development reviews as of year-end
Group
Unit
Male
Female
Other
Not
reported
Total
Total number of performance reviews
executed
Number
4,080
8,089
0
0
12,169
Total number of performance reviews
agreed by the management
Number
4,081
8,092
0
0
12,173
Total number of employees that
participated in regular performance and
career development reviews
Head Count
4,080
8,089
0
0
12,169
Total number of eligible employees who
have been assessed for the reporting year
Head Count
4,095
8,120
0
0
12,215
Total Number of employees
Head Count
4,410
8,423
0
0
12,833
Eurobank prioritises learning and development as a fundamental aspect of its operations and overall strategy. Providing
equal learning opportunities for all employees—regardless of role, contract type (permanent, temporary, external associates,
contractors, managers, or individual contributors)—is essential for enabling skill development and driving sustainable
business outcomes. This inclusive approach ensures that every team member has the resources to grow and contribute to
the organisation’s long-term success. In 2024, Eurobank has consistently upheld its commitment to developing diverse talent,
fostering a culture of ongoing learning, and equipping its workforce with the critical skills needed to drive the organisation's
vision for Eurobank 2030.
Learning in numbers (2024):
●
588,469 learning hours Group-wide, including activities delivered to temporary employees and contractors
●
47.4 average number of training hours per male employee
●
45 average number of training hours per female employee
●
45.9 average number of training hours regarding the Group’s employees
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Average number of training hours per employee and by gender is presented below.
Training hours per employee and by gender as of year-end
Group
Unit
Male
Female
Other
Not
reported
Total
Training hours offered to and completed
by employees
Hours
209,168
379,301
0
0
588,469
Total Number of employees
Head Count
4,410
8,423
0
0
12,833
Average number of training hours
Training
hours
47.4
45.0
0
0
45.9
Health and safety metrics [S1-14]
The Group adheres to all national and EU regulations to safeguard the health and safety of its employees, customers, and
partners. Additionally, Eurobank has implemented a Health and Safety Management System in accordance with the ISO
45001:2018 standard for Occupational Health and Safety. As part of this, Eurobank runs a comprehensive prevention and
safety program, featuring a range of initiatives designed to protect its workforce. The scope of Eurobank’s Occupational
Health and Safety System encompasses all employees and operations across the Bank.
Health and safety templates present the following information:
●
the percentage of people in its own workforce who are covered by the undertaking’s health and safety management
system based on legal requirements and/or recognised standards or guidelines
●
the number and rate of recordable work-related accidents
●
the number of fatalities as a result of work -related injuries & work-related ill health of own workforce employees
(and other workers working on the undertaking's sites)
o
Own workforce covered by the undertaking’s health and safety management system ratio
Group
Unit
as of year-end
Number of employees in own workforce who are covered by the
undertaking’s health and safety management system
Head Count
12,833
Total number of employees in the undertaking’s own workforce
Head Count
12,833
Percentage of employees covered by health and safety management system
%
100%
Work-related injuries and work -related ill health
Group
Unit
Own workforce -
Employees
Other workers working
on undertaking's site
Number of fatalities as a result of work -related
injuries & work-related ill health
Number
0
0
Recordable work-related accidents ratio
Group
Unit
as of year-end
Number of recordable work -related accidents
Number
21
Number of total hours worked
Hours
23,143,850
Rate of recordable work-related accidents
Rate
0.91
All of Eurobank’s employees are covered by the undertaking’s health and safety management system. Regarding the number
of fatalities as result of work-related injuries and work-related ill health the number of cases was 0 for both the own workforce
of the Group and the other workers working on the undertaking’s site.
For the 2024, there were 21 cases of recordable work-related accidents, and the rate of work-related accidents was at 0.91.
Regarding the calculation of the number of total hours worked, an estimation has been performed based on the normal or
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standard hours of work for the entity’s own workforce, considering entitlements to periods of paid leave of absence from
work.
Remuneration metrics (pay gap and total remuneration) [S1-16]
The Group adopts a unified remuneration management approach and a common pay framework across all positions and
roles, applying the job evaluation methodology which links pay to role accountability. Therefore, salary variation depends
heavily on the distribution of the two genders on the job matrix.
Gender pay gap, is defined as the difference of average pay levels between female and male employees, expressed as
percentage of the average pay level of male employees. For the year 2024, the gender pay gap ratio was 36.1%
The annual total remuneration ratio of the highest paid individual to the median annual total remuneration for all employees
(excluding the highest-paid individual). For the year 2024, the annual remuneration ratio was 60.0.
The Group has established a competitive remuneration policy in order to attract, engage and retain its employees. The
Remuneration Policy basic principles are to:
●
be gender neutral and non-discriminatory in any aspect of its implementation
●
safeguard that remuneration is sufficient to retain and attract executives with appropriate skill and experience
●
monitor that internal equity between all Units is applied
●
link remuneration with long-term performance
The continuous monitoring of market trends and best practices at the domestic and global level ensures a competitive
Remuneration Policy that is governed by transparency and internal equity.
Contextual information necessary to understand the data and how the data has been compiled and other changes to the
underlying data that are to be considered.
Renumeration metrics
Group
2024
Gender pay gap ratio (%)
36.1%
The annual total remuneration ratio of the highest paid individual to the median annual total
remuneration for all employees
x60
Practicing an inclusive culture and ensuring equity and opportunities for all, the Group reports on both our median and
mean (average) raw gender pay gaps, unadjusted by factors such as role and responsibility.
Group
Mean
Median
Gender pay pap
36%
24%
These metrics provide insights into gender representation in various roles, often highlighting a concentration of men in
higher-seniority positions.
Aiming to further quantify the potential effect of the gender representation of employees in top management, we calculated
the pay gap ratio of the Group per total remuneration quartiles of the Group employees, while the 4th quartile also includes
the Group’s higher-seniority positions.
The average gender pay gap at a Group Level based on the total remuneration quartiles' table
Group Level
Mean
1st Quartile
6%
2nd Quartile
0%
3rd Quartile
2%
4th Quartile
22%
The results of this exercise provide evidence that the main driver of the pay-gap ratio is the gender representation of
employees in higher-seniority positions.
The Group, as part of its commitment to diversity and inclusion, introduced the 3rd Season of Women in Banking (WiB) in
2024, following the highly successful and award-winning previous two seasons.
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WiB is a programme aimed at empowering women within Eurobank to advance to higher leadership roles, drive
transformative change within the organisation, and advocate for an inclusive and equitable work environment.
WiB not only serves as a cornerstone for women’s empowerment but also plays a pivotal role in championing diversity and
inclusion, cultivating a workplace founded on acceptance and mutual respect. With a forward-looking approach and
unwavering dedication, the WiB community is spearheading endeavors to empower women and foster a more inclusive
leadership landscape.
Moreover, in 2024, Eurobank signed the Women’s Empowerment Principles (WEPs) which provide essential guidance for
businesses striving to promote gender equality and empower women within the workplace, marketplace, and broader
community. Established by UN Women and the UN Global Compact, these principles are informed by international labour
and human rights standards, recognising that businesses play a critical role in advancing gender equality and women's
empowerment.
With a steadfast emphasis on empowering women and enhancing their leadership opportunities within the Group,
Eurobank's dedication to the WEPs represents a meaningful step towards this goal. By adopting the Women’s Empowerment
Principles, the Group reaffirms its unwavering commitment to fostering a sustainable and inclusive future for its organisation,
its employees, and the wider community in which it operates.
The abovementioned initiatives are the ones in place with the wider spectrum, related to the employees of the Greek entities.
There are more initiatives implanted on a local level, based on the specific characteristics and needs of its entity.
Incidents, complaints and severe human right [S1-17]
Eurobank complies with frameworks such as UN Guiding Principles on Business and Human Rights and UN Global
Compact. Information regarding the incidents, and complaints that occurred during the 2024 reporting year are illustrated
below:
Incidents, complaints and severe human rights impacts
Group
Unit
as of year-end
Total number of incidents of discrimination, including harassment, reported
in the reporting period
Number
10
Number of complaints filed through channels for people in the organisation's
own workforce to raise concerns (including grievance mechanisms)
Number
17
Total amount of fines, penalties, and compensation for damages as a result
of the incidents and complaints disclosed
Monetary Terms
0
Number of severe human rights incidents
Number
0
An indication of how many of severe human rights incidents are cases of
non-respect of the UN Guiding Principles on Business and Human Rights, ILO
Declaration on Fundamental Principles and Rights at Work or OECD
Guidelines for Multinational Enterprises.
Number
0
Total amount of fines, penalties, and compensation for damages as a result
of the incidents disclosed
Monetary Terms
0
Regarding the number of complaints filled through official channels, most of the cases relate to staff complaints received in
writing by HR. Those complaints related to matters such as performance appraisal, training, staff transfer and organisational
structure. All cases were investigated as per the respective policies of the Group. As a result, the Group had no amount of
fines and penalties as result of the incidents and complaints disclosed, as well as zero number of cases related to severe
human rights incidents.
3.2
Consumers and end-users [ESRS S4]
3.2.1
Strategy
Material impacts, risks and opportunities and their interaction with strategy and business model [ESRS 2 SBM-3]
The actual and potential impacts on consumers and/or End-users which have been identified in the course of the DMA are
connected to Eurobank’s strategy. Eurobank has committed to contributing to the achievement of the United Nations
Sustainable Development Goals (SDGs) and the UN 2030 Agenda, as a signatory to the UN Global Compact since 2008,
and by actively promoting its fundamental principles and applying the precautionary approach. In this context, in 2022 the
Group prepared a new holistic Sustainability Strategy, that was revised in 2024, the implementation of which is based on
two main pillars Operational and Financed Impact. Key components of the Operational Impact Strategy are Societal impact
and Governance & Business impact. There have been set several commitments to this end, such as the boost of accessibility
and inclusion for customers as well as external ESG awareness. These key strategic commitments address material IROs of
responsible banking towards customers.
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The types of consumers and/or end-users who could be materially impacted by business activities are:
●
consumers and end-users who are highly dependent on accurate and accessible information for the financial
products
All the identified negative impacts related to Eurobank’s consumer and/or end users resulting from the DMA have been
classified as potential. Eurobank, through various measures and mechanisms, such us implementation of Banking Code of
Conduct, development of simple procedures and accessible information related to the services as well as specialized
customer support departments, ensures that any related impacts with widespread or systemic effects will not be materialized.
Through the Responsible marketing and communication which is driven by its human-centric culture, Eurobank designs
products and services tailored to the individual needs of its customers. With a view to optimising the messages used in
marketing campaigns, the Group carries out systematic market research on each individual customer category, focusing on
both quantitative and qualitative features that highlight the trends and expectations of its customers. Using adequate
Customer Relationship Management tools, it is able to propose or offer individual customers the product or service that truly
meets their needs
Through materiality assessment, the magnitude and scope of potential and actual impacts is taken into consideration and
are analyzed further. Identified impacts related to consumers and/or end-users could be linked only to individual incidents of
restricted access to information.
Eurobank has implemented several initiatives to enhance accessibility and service for customers with disabilities. Key
activities are described in the chapter “ESRS 3.5 Financial inclusion”.
As part of the materiality assessment, key impact on customers have been identified. This is presented in the following table:
Information-related Impacts for Consumers and/or End-users
Impact
Positive
Actual
Group provides clients access to accurate, relevant and high-quality secured
information, fostering transparency and promoting the principles of responsible
banking.
Conducting the materiality assessment, the main types of customers who are or could be negatively affected have been
identified. Some customers may be at greater risk of harm. To gain this insight, the materiality assessment is informed by
Diversity, Equity, and Inclusion Policy, which identifies as vulnerable groups elderly people and people with disabilities. The
elderly are more susceptible to data exploitation or cybersecurity threats due to digital literacy gaps. For both vulnerable
groups digital platforms that do not adhere to accessibility standards (such as WCAG) could create significant barriers in
usage and overall service.
3.2.2
Policies & Actions
Policies related to consumers and end-users [S4-1]
Eurobank has adopted policies to manage its material impacts, risks, and opportunities related to its consumer and/or end
users and disclose them in accordance with the minimum reporting requirements laid out in the Minimum Disclosure
Requirements with regards to policies (MDR-P) as defined in ESRS 2. Eurobank is committed to engaging with stakeholders
by ensuring a high level of accountability in policy development and implementation. Policies are approved by the
appropriate Governance bodies such as the Board of Directors or specialized committees, which ensure that there is
alignment with the Group's strategic goals and stakeholder interests.
Eurobank prioritises respect to human rights in line with the UN Guiding Principles on Business and Human Rights. The Group
avoids causing or contributing to adverse human rights impacts through its own operations and business relationships. As a
signatory of the UN Global Compact since 2008, Eurobank actively supports the 10 principles related to human rights, labour
rights, environmental protection, and anti-corruption, reporting on these issues annually in its Sustainability Report. Eurobank
is also a founding signatory of the UNEP FI Principles for Responsible Banking, publicly disclosing self-assessment reports as
part of its commitment to Human Rights as detailed in section 3.1.2.
Eurobank's
Code of Conduct & Ethics
regarding customers focuses on maintaining transparency, client protection, and
ethical behaviour. It ensures that clients receive clear, accurate, and comprehensive information about products and services,
enabling them to make informed decisions. Eurobank also classifies clients according to legal categories to provide tailored
protection, especially for investment -related transactions. To uphold high standards of professionalism, Eurobank invests in
continuous staff training and certification. Additionally, it emphasises the prevention of conflicts of interest by prohibiting
staff from using their position or internal information for personal gain and ensuring fair terms for all clients. Staff are required
to seek compliance approval for actions that may present a conflict of interest, reinforcing the Group's commitment to ethical
conduct and transparency in client relationships. Compliance and the relevant auditing bodies of Eurobank are responsible
for monitoring and implementing the Code of Conduct and Ethics. Through the Governance & Business impact pillar of the
Sustainability Strategy, and specifically, the commitment to intensify ethics and transparency by 2025, the Group has set
targets to attain Compliance Management Systems certifications, including the following certifications already attained:
●
ISO 37002 – Whistleblowing Management System,
●
ISO 37001 – Anti-bribery Management System, and the
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●
ISO 9001 for Financial Crime Prevention Services Certification.
The preparation process for ISO 37301 –Compliance Management Systems Certification is scheduled to start within 2025.
The
Management of Complaints Policy
Bank of Greece (Executive Committee’s Act 157/2019). The policy is ISO 9001 and ISO 10002 certified and aims to provide fair,
transparent, and efficient solutions. All complaints are treated equally, with uniform procedures applied while responses are
tailored to individual circumstances. Complaints can be submitted through designated channels, and each case is addressed
promptly to ensure resolution. The main objectives of the policy are to enhance customer satisfaction, improve service quality,
and resolve complaints effectively and fairly. Eurobank Complaints Management is responsible for submitting the
Management of Complaints Policy and corresponding statistics to BoG on an annual basis.
The
Sustainability Policy Framework
more sustainable future. A key objective of this framework is to assist customers in achieving their decarbonization goals by
providing innovative financial solutions that enable investments with positive environmental and social impacts. By
embedding sustainability principles and ESG considerations into its operations, Eurobank aims to address emerging
sustainability challenges effectively. Through this approach, Eurobank ensures that its customers have access to the
necessary resources and expertise to navigate the complexities of sustainability. The Sustainability Management Committee
is responsible for approving the Sustainability Frameworks (e.g. Sustainability Finance Framework, Green Bond Framework,
Sustainability Policy Framework and Sustainability Investment Framework) as well as other sustainability-related Policies.
All the above-mentioned policies are readily accessible to all potentially affected stakeholders, as well as to those responsible
for its implementation, through the corporate website.
Processes for engaging with consumers and end-users about impacts [S4-2]
The Group considers strengthening its customer relationships and fostering collaboration as significant endeavors and key
strategic objectives. Eurobank engages with its clients through responsible information, customer service and provision of
products and services with a deep sense of respect and transparency using the following means of communication and
response:
Processes for engaging with customers:
1
Retail banking branch network and electronic / digital channels (ΑΤΜ, APS e-Banking, Eurobank Mobile App, v-
Banking, Digital On boarding).
2
Expert relationship managers (RMs) at branches and v-Banking (Personal Banking, Retail Business Banking,
Expert RMs).
3
Operation of special purpose branches: International Branch (golden visa, non dom, etc. clients) Retail shipping
client branch and Legal Branch.
4
Private Banking network.
5
Dedicated Corporate Service Centres.
6
24/7 customer call centre via EuroPhone Banking for retail, private and corporate customers as well as via
dedicated EuroPhone International Banking Line.
7
Economic reports and reviews on a regular basis, by the analysts and economists of the Eurobank Research team.
8
Ease of access via collaboration with the Hellenic Post (ELTA).
9
Publicly available information and communication through eurobank.gr and eurobankholdings.gr
10
Enhanced communication with clients – video calls / click2chat / automated customer appointment.
11
Automated customer journeys through digital and alternative channels offering a unique customer experience.
12
Οnline sales and lean processes to cover client needs without physical presence.
13
Active customer input in market research programs, thus being part of customer propositions’ creation.
14
Social media channels.
15
Direct campaigning (viber, email, sms).
16
Webinars and native articles via Digital Academy for Business to boost business competitiveness on its digital
transformation journey.
17
Newsletters.
18
Business insight: external e-Newsletter, excellent marketing tool to strengthen relationships with customers &
institutions, providing RBB ecosystems content and promoting banking & non-banking added value services,
aiming to improve customer loyalty & engagement.
19
Hosting of special conferences.
20
Retail Business Banking informational events (BB Tourism, BB Health Financing, etc).
21
Briefings with customer groups.
22
Non-banking services via wide network of selected partners (Ecosystems).
23
Customer satisfaction and NPS surveys.
24
Customer interviews based on Design Thinking Methodology approach.
25
Centralised Complaints Management - Precise responses to all incoming requests.
26
Customer Service Improvements.
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Processes for engaging with customers:
27
Initiatives for people with disabilities.
28
Focus group discussions with RBB RMs for identifying ESG expectations of clients.
29
Limited Edition annual magazine to Private Banking clients.
30
Informative “Your Personal Experts” podcasts to Personal Banking clients.
31
Informative Client Events fοr Private and Personal Banking Clients.
32
Informative Client Events and Reports on Investments by Eurobank Equities and Eurobank Asset Management
MFMC.
The perspectives of consumers and/or end-users inform Group’s decisions and activities aimed at managing the actual and
potential impacts on them. Customers participate in stakeholder engagement as part of the Double Materiality Assessment,
which enables the understanding of their concerns and priorities. The material topics identified through this engagement are
then taken into account and inform the Group’s policies, actions, and targets. This ensures that the issues that matter most
to consumers and end-users are addressed in the decision-making processes. Furthermore, the engagement occurs directly
with consumers and/or end-users, through the completion of questionnaires on potential material impacts, risk and
opportunities.
Processes to remediate negative impacts and channels for consumers and end-users to raise concerns [S4-3]
Eurobank has established policies and mechanisms that enable customers to raise concerns and ensure appropriate
remediation for any negative impacts.
For Eurobank, the relationship and cooperation with its clients is a primary strategic objective. Aiming at honest and
transparent communication, it has set up specific processes to communicate information surrounding its products and
services. Through its Customer Complaints Policy and ISO certified processes, the Group handles its customer complaints
with compassion, while performance is measured by pertinent qualitative indicators. Aiming to strengthen its customer
relationships, Eurobank has launched Customer Excellence, to enhance customer service through all points of contact and
secure relationships of trust.
Eurobank addresses customer complaints in a spirit of good cooperation, understanding and respect, always in pursuit of an
appropriate and mutually acceptable solution. All complaints are managed with impartiality and sincere willingness to reach
a fair solution. Eurobank has harmonized its Management of Complaints Policy with the Bank of Greece's Executive
Committee Act No. 157/2019 and revised it in accordance with ISO 9001 and ISO 10002 standards to enhance the handling
of customer complaints. This updated policy aims to improve the effectiveness and responsiveness of Eurobank’s complaint
resolution process. Furthermore, the customer is informed that if he is not satisfied with the proposed solution, he can contact
Hellenic Financial Ombudsman. Performance in terms of these actions is measured using qualitative indicators set by the
Bank, while statistics are extracted, which are reflected in reports used to keep Eurobank’s Management updated. The
commitment to customer service and the sincere interest of Eurobank are reflected at every stage of this complaint
management process, as customers are continuously kept up to date about the progress of their case. At the same time,
communication is maintained, to a sample of cases, even after the case has been resolved, to determine whether the
customer was satisfied with the outcome, as well as to receive their comments and feedback. All the information is used to
identify and highlight the reasons for dissatisfaction among customers and to recommend improvements in terms of
provision of better service and prevention of any future issues.
Eurobank closely monitors the effectiveness of its remediation actions through a range of client complaints performance
indicators, which are:
●
Customer satisfaction rate
●
Complaints resolved within 2 business days: 50% for 2024
●
Annual new complaints: annual decrease of 15.3% for 2024
●
Client cases received: 10,825 for 2024
●
Client cases resolved: 10,522 for 2024
●
Overall resolution rate: 97.2% for 2024
Paying attention to the importance of complaint management, oversight of results takes place on a regular basis by the
Executive Board as well as a Board level Committee.
Additionally, Eurobank makes the most of customer experience data (Voice of Customer) from all available sources, internal
and external, such as complaints, surveys etc., constantly adding new sources by initiating new NPS surveys at various
touchpoints (branches, e-Banking, Eurobank Mobile App, v-Banking, ATMs, EuroPhone Banking) and for major products. These
are analyzed and evaluated to identify areas that call for improvement and to take corrective and preventive measures, so
that Eurobank services fully meet its customers’ wishes and expectations. Moreover, to better monitor results, certain
qualitative indicators have been identified and are regularly monitored. In 2024:
●
Over 149,000 customer evaluations on banking experience were collected through regular measurements.
●
62,000 comments were analysed, which helped improve existing services and/or design new ones.
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●
Over 1,042 customers were personally contacted to be informed about the actions Eurobank initiated about their
comments.
The responsible officer for the receiving and monitoring of reports (RRMO) is tasked with providing clear guidance on how
to submit a report, receiving and confirming receipt of the report within seven working days, and performing an initial
assessment. They are also responsible for designating the appropriate unit or person to handle the report, ensuring the
confidentiality of the reporting person’s identity and any third parties mentioned. Additionally, the officer monitors the
progress of the investigation, maintains regular contact with the reporting person, and ensures that feedback is provided
within a reasonable period, not exceeding three months from the receipt confirmation. The officer also plans and coordinates
relevant training efforts to support the process.
According to the Policy for Reporting Illegal or Unethical Conduct, Eurobank provides protection against reprisal and keeps
confidential the identity of those who have submitted information they know and consider to be accurate and true.
Additionally, there are policies in place to prevent any form of retaliation against individuals, including customers, utilising
these channels. For further reference, applicable information has been disclosed in accordance with ESRS G1-1 Business
conduct policies and corporate culture.
Eurobank also prioritises cybersecurity, personal data, and the resilience of its ICT systems against evolving cyber threats.
Cybersecurity strategy follows a comprehensive Predict, Prevent, Detect, and Respond framework.
Customers may contact the Data Protection Officer for any matter regarding the processing of their personal data.
Additionally, for the exercise of their rights, customers may submit a written request to Retail Business Planning and Customer
Excellence Retail Banking Unit. Eurobank shall use its best endeavors to address such requests within thirty (30) days of
receipt
.
Taking action on material impacts on consumers and end-users, and approaches to managing material risks, pursuing
material opportunities related to consumers and end-users, and effectiveness of those actions [S4-4]
Eurobank is actively addressing and preventing potential negative impacts on consumers and end-users through the various
actions, that are carried out throughout the reporting period and concern the execution of action plans in own operations
as well as its clients, as part of downstream value chain
.
●
Enhancement of threat intelligence capabilities through use of state-of the-art technologies/services, and
collaboration with peers from other banks, as well as the Hellenic Police and the National Cyber Defense Agency.
●
Strengthening of the cybersecurity capabilities for new digital products/ services, teleworking and cloud technology
adoption, as well as to address the ever -growing threats (i.e. Ransomware) and maintain compliance with evolving
regulatory requirements.
●
Application of multi-tiered Endpoint Protection Detection Response protection, filtered emails and web content,
DDoS protection and SIEM services to detect suspicious activities.
●
Vulnerability assessments and penetration testing to identify and address weaknesses in IT systems.
●
Operating according to ISO 27001, ISO 22301, ISO 20000, and ISO 27701 standards. The scope of the ISO 27001
certification has been extended to also cover cloud computing operations.
●
IT security awareness training and phishing simulation exercises to educate staff on recognising security threats.
●
Ensures compliance with Regulation (EU) 2016/679 (GDPR), Law 4624/2019, and relevant Greek and EU legislation
on personal data protection.
●
Takes appropriate measures to inform data subjects (e.g., customers) about the processing of their personal data
in a clear, concise, and easily accessible manner.
●
Mandatory training for all staff on personal data protection (GDPR) and IT security issues.
●
Development and enforcement of comprehensive frameworks to ensure data security and privacy, including: IT
Security Policy, Cyber Security, Risk Management Methodology, Policy on Data Classification.
●
Addresses customer complaints with cooperation, understanding, and respect, striving for mutually acceptable
solutions.
●
Harmonized Management of Complaints Policy with Bank of Greece Executive Committee Act No. 157/2019.
●
Updated complaint management processes based on international standards (ISO 9001, ISO 10002).
●
Utilises customer experience data (Voice of Customer) from various sources, including complaints, surveys, and NPS
(Net Promoter Score) surveys at touchpoints such as branches, e-Banking, Eurobank Mobile App, v-Banking, ATMs,
and EuroPhone Banking.
●
Analyzes and evaluates customer feedback to identify areas for improvement and implement corrective and
preventive measures.
●
Adheres to the regulatory framework and the Banking Code of Conduct, with control mechanisms in place to ensure
compliance.
●
Advertising and promotional campaigns are subject to prior authorization by relevant Group units, with content
reviewed for compliance.
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In order to track the effectiveness of these results, certain quantitative and qualitative indicators have been identified and
are regularly monitored. These include client complaints performance indicators as well as customer privacy and
information prote ction indicators.
Actions that promote positive impacts on data security and customer privacy /information include various actions, that are
carried out throughout the reporting period and concern the execution of action plans in own operations as well as its
clients, as part of the downstream value chain.
●
Customer Excellence initiative launched to deliver outstanding service at all customer touchpoints and foster trust-
based relationships.
●
Recognises excellent performance and encourages front-office visits to ensure all staff members share a customer-
centric culture.
●
Provides customized information to every customer, ensuring transparent communication about products and
services.
●
Established customer support departments and both traditional and online service networks.
●
Developed easy-to-understand procedures and brochures to inform customers accurately about products and
services.
In order to track the effectiveness of these results, certain quantitative and qualitative indicators have been identified and
are regularly monitored. These include customers satisfaction surveys as well as Net Promoter Score (NPS) metrics. The
effectiveness of these actions and initiatives is further supported by the Retail Customer Excellence Committee, which is
made up of senior Group executives and is tasked with making decisions that will produce the desired outcomes for quality
and customer service issues.
The process regarding identifying what action is needed and what response to a particular actual or potential negative
impact on consumers and/or end-users is characterised by ESG Risk Assessment. Eurobank continues to strengthen its
capacity to identify and manage social risk stemming from client operations.
The approach to take action in relation to specific material negative impacts on consumers and/or end-users is characterised
by proactively identifying and addressing risks associated with product design, marketing, and sales, with a focus on
monitoring and mitigating potential negative outcomes. This includes ensuring that advertising and promotional campaigns
are subject to prior authorization to prevent misleading or harmful messaging, as well as taking steps to monitor and
mitigate data privacy risks Eurobank continuously seeks to improve the transparency and fairness of product design and
marketing strategies to safeguard the interests of consumers.
Processes to provide remedy in the event of material negative impacts are available and effective in their implementation
and outcomes. These processes include actively seeking customer feedback through customized communication tools and
ensuring that customers receive direct and prompt information about any new deals or changes to the products and services
they choose.
Severe human rights issues and incidents connected to consumers and/or end-users have not been reported. In 2024, no
incidents of non-compliance with regulations and voluntary codes concerning product and service information, and labelling
or marketing communications were identified and, as a result, no fines or sanctions were imposed on the Group.
Resources allocated to the management of material impacts engage internal functions such as Risk Management,
Compliance, IT Security, and Customer Experience departments, which take actions like enhancing threat intelligence and
cybersecurity measures, conducting staff training and awareness programs, ensuring compliance with international
standards, and monitoring customer satisfaction
3.2.3
Metrics & Targets
Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and
opportunities [S4-5]
Eurobank has established the following qualitative targets to meet its commitments to improving accessibility and inclusion
for customers, as well as raising external ESG awareness by 2025:
●
Enhance accessibility initiatives for services and products targeted to underserved social groups
●
Raise staff awareness and familiarity on disabilities (through experiential training)
●
Enhance outreach to customers on sustainability through the Digital Academy
●
Develop responsible banking mechanisms to raise customers’ ESG awareness
Eurobank’s targets for enhancing external ESG awareness as well as accessibility and inclusion for customers align with
Sustainability Policy Framework and the principles outlined in its Code of Conduct & Ethics, emphasising transparency, ethical
behaviour, and professionalism. By 2025, Eurobank aims to enhance ESG awareness for customers, ensuring they can make
informed decisions, which promotes transparency. The Bank assists stakeholders to assimilate ESG terminology,
opportunities and applicability. Raising ESG awareness for external stakeholders, and particularly for clients, is an integral
part of Eurobank’s Sustainability Operational Impact Strategy. To this end, Eurobank actively supports Greek businesses in
their transition to the digital and sustainability model, through a series of Digital Academy articles and webinars.
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The Group also plans to develop responsible banking mechanisms to raise ESG awareness by providing reliable information,
particularly for those engaging in sustainable investment decisions. By focusing on vulnerable groups, equal access to
banking services and strengthening of inclusivity are ensured. Staff receives experiential training to provide better quality
services to customers with disabilities, reinforcing Eurobank’s commitment to inclusivity.
Indicative achievements against targets for 2024 are as follows:
●
Continuous improvement of services and launch of additional inclusion initiatives targeting specific social groups:
o
Services now include sign language support through v-Banking for hearing-disabled customers and Braille
documents and accessible PDFs for visually impaired customers. Additionally, 100% of ATMs have been adapted
to accessibility requirements (voice guidance) while 92 branches are equipped with ramps
o
Implementation of “Familiarity with disabilities” training sessions, focused on Retail banking Networks to
enhance accessibility and inclusion for customers. 1,900 employees have been trained to assist individuals with
disabilities
o
Inspirational talks by Eurobank's Accessibility Ambassadors
o
Real Life Heroes Award to a colleague who excelled in servicing clients with disabilities.
●
External ESG awareness initiatives for clients, including the Digital Academy series of ESG webinars: 3 workshops
took place for “Sustainable Transition: New prospects and new requirements”, “Financing Sustainable Development
for SMEs” and “Interbank ESG Questionnaire - Transition from Theory to Practice” with 441 clients participating.
The Sustainability Strategy defines the Group’s sustainability priorities and objectives. The Operational Impact Strategy is
deployed through milestones and KPIs that support the annual and the long-term interim targets set across multiple project
streams, spanning over the next decade. It is developed and deployed along 3 pillars and corresponding corporate
objectives, supported by a governance structure of project streams (one per each commitment) and the supervisory ESG/OIS
Committee. Progress is regularly reviewed at the Sustainability Management Committee. Links are established with
Transformation streams as well as corresponding ISO management system standards, to ensure substantiation and
certification of activities, validate target setting and measured performance, and systematically monitor progress through
internal reviews and external assurance. The Group plans to revisit and update its Sustainability Strategy on an annual basis,
in line with best market practices, and regulatory requirements.
Customers feedback surveys, quantitative data about changes in users' demographics and courses completed per training
and/or number of participants are exploited in order to track effectiveness of the targets. Their progress will be monitored
throughout the year to ensure that they are met with a final evaluation at the end of the period they are set.
3.3
Fostering innovation [Entity-specific]
3.3.1
Strategy
Description of material impacts, risks and opportunities and their interaction with strategy and business model [SBM-3]
Innovation is a strategic business opportunity for Eurobank in relation to the increase of positive and the reduction of
negative impacts it has identified. Thus, it places great emphasis in creating an environment that fosters the sustainable
growth of small and medium-sized enterprises (SMEs) both national and international and reinforces the outward-looking
potential of Greek companies with a view to promoting effective entrepreneurship and improving the quality of key business
sectors through innovative services. Eurobank is also promoting innovative channels for service delivery and designing value-
adding solutions, tailor-made to its customer needs.
To this end, a key component of the societal pillar of the Groups sustainability strategy focuses on stimulating innovative,
inclusive and youth-focused entrepreneurship.
Eurobank’s mission goes well beyond its financial aspect and aims to contribute to economic growth, but also to enable an
inclusive and sustainable economic model, one that champions innovation, supports communities and generates widespread
prosperity.
Regarding the Governance -related information please refer to : 1.3 Governance.
3.3.2
Impact, risk and opportunity management
Description of processes to identify and assess material impacts, risks and opportunities [ESRS 2 IRO-1]
Through the DMA Eurobank has identified the following material risks and opportunities:
Fostering innovation
Risk
Rapid technologic development in the banking sector may pose competitive
threats and risks if Eurobank fails to adapt and innovate at the same pace.
Opportunity
Meeting evolving customer expectations and modern lifestyle needs through
utilising digital tools and innovative services can improve customer engagement
The process of assessing fostering innovation applies across all regions where Eurobank operates.
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3.3.3
Policies and actions
Policies related to fostering innovation [MDR-P]
The Group’s Sustainability Policy Framework is the underlying policy describing its strategic objective to adapt its business
and operations in a way that accommodates social needs within its business model.
The Sustainability Policy Framework makes reference to the significance of fostering an innovative environment and its role
in the overall sustainability strategy which includes its commitments and targets of the societal pillar towards that end.
Actions related to fostering innovation [MDR-A]
Eurobank is an innovator when it comes to initiatives and Corporate Social Responsibility (CSR) activities that support
innovative entrepreneurship, foster the sustainable growth of small and medium -sized enterprises (SMEs) both national and
international and reinforce the outward-looking potential of Greek companies, with a view to promoting effective
entrepreneurship and improving the quality of key business sectors through innovative services.
Eurobank Next – Digital Growth & Future Competitiveness
Eurobank Next - Digital Growth and Future Competitiveness is a strategic initiative launched in January 2024 under which
both the Innovation Center and the GenAI Coordination Unit operate, aspiring to be the driving force behind transformative
banking
solutions. It aims to safeguard the Group’s future relevance through fostering the innovation mindset &
practice
across the Group while also exploring
and exploiting disruptive value propositions to pursue growth & future competitiveness.
The Innovation Center’s mission is to provide fast-paced, focused innovation aligned with Eurobank’s broader strategy to
increase profitability and efficiency. With its Innovation & UX Labs, Innovation Center fosters both entrepreneurship and
intrapreneurship across Eurobank, and links the organisation with Fintech companies to further elevate customer satisfaction.
The team scouted more than 50 startups and provided recommendations to Business Units for potential opportunities,
resulting to POCs or partnerships. Alongside this, the Unit constantly monitors trends and provides market insights across
the Group through its monthly newsletter and quarterly report. Also, it forged strategic partnerships with International
Organisations and platforms to leverage networks for open innovation. A Brainstorming Session concept was launched to
accelerate top-tier ideas from all business units within Eurobank and customers outside Eurobank, encouraging collective
innovation in product development through a dynamic, collaborative approach.
Working in tandem with the Innovation Center, the GenAI Coordination Unit is responsible for setting Eurobank’s strategic
ambition in the field of Generative AI (GenAI). The unit focuses on defining use cases for GenAI across the organisation,
coordinating the various stakeholders involved, and overseeing the deployment of GenAI technologies in active projects.
Their work ensures the successful adoption and integration of GenAI, aligning it with Eurobank's digital growth ambitions.
While building its operationalization Framework, the GenAI Coordination Unit is working closely with all Business units to
identify potential Use Cases. To this day, one use case is launched into production, six are in pilot phase and more than 10
use cases are being assessed and prioritised.
Further to the above, with the aim to strengthen competitiveness, promote, support and integrate Innovation at all levels of
the Organisation's operation, an Innovation Board was established under the leadership of our CEO. Its establishment is an
important step towards strengthening the culture of innovation and ensuring the Group’s continuous adaptation to new
technological and business challenges.
egg - enter grow go
In the area of innovative entrepreneurship, Eurobank – in partnership with Corallia, a unit of the Athena Research Centre that
implements flagship programmes and targeted interventions focusing on the management of Clusters, Incubators and
Entrepreneurship Programmes – introduced an initiative in 2013: the egg – enter grow go. This business accelerator offers
entrepreneurs an integrated framework of business incubation, acceleration, and collaboration among startups. The 12th
cycle commenced in 2024, continuing to support innovative businesses in 3 key areas: extroversion, financing and
interconnection of businesses with the global market.
In the last 12 years, egg has become one of the most prominent business acceleration initiatives in the country. It has also
substantially enhanced its reputation in Greece and abroad, and has become an industry standard in the Greek startup
ecosystem. Since 2019 egg has been consisting of 3 distinct and complementary entrepreneurship support platforms: egg
pre – acceleration, egg Start-Up and egg Scale-Up.
egg pre – acceleration initiatives aim at supporting the academic community, connect research and innovation with
entrepreneurship and support groups who want to immerse themselves in the principles of entrepreneurship. More
specifically, through targeted pre- acceleration programs, egg provides the academic community (undergraduate students,
postgraduates, researchers, teachers etc) with mentoring, guidance and training to connect them to entrepreneurship and
the economic system.
More precisely, egg launched in 2022 an
online acceleration program
Founders’ Startup, DUTH, and AUTH. This program saw the participation of eight female-led startups, achieving 100% female
representation. Building on the success and outcomes of this initiative, egg introduced the
Female Entrepreneurship – Mini
Acceleration Program
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was delivered twice (2) by egg in 2023, is a multifaceted approach that encompasses mentorship, skill-building and
networking opportunities tailored specifically for female researchers and entrepreneurs in Greek Universities and Institutes.
It empowers women to overcome barriers, seize opportunities and flourish in their respective fields. In total, 48 research
teams participated in 2023, with women representing 67% of the participants. Building on this success, in 2024, egg launched
a
Mini Acceleration Program for Researchers
. This iteration of the program followed a similar structure, providing
mentorship and support to research teams. A total of 24 teams participated, with 32% female representation. The primary
objective was to foster research and innovation within universities, helping participants understand entrepreneurship and
develop their entrepreneurial ideas. In parallel, egg, in collaboration with EBAN, introduced an
International Pre -
Acceleration Program
, offering support, guidance, and mentorship to 8 international startups. This program focuses on
helping startups expand their businesses and establish a presence in Greece.
Tourism and Culture cluster
With egg – enter grow go as the administrator, Eurobank supports the first Greek Cooperative Innovation Cluster in Digital
Technologies in the Tourism and Culture Industries (Tourism and Culture Cluster). The main purpose of the Cluster is to secure
financial viability and achieve economies of scale and economies of scope in digital applications and technologies for
Tourism and Culture. It also fosters an environment of collaboration and creativity and encourages knowledge sharing and
resource pooling among member companies, resulting in more efficient and sustainable practices. The initiative incorporates
innovative companies and other organisations based in Greece that promote innovation, research and networking, and are
active in the wider digital tourism technologies and ICT sector.
This approach aligns perfectly with the priorities set by the World Tourism Organisation (UNWTO) and tourism organisations
globally. The objective of the Cluster is to digitise tourism and cultural products, maximising Greece’s competitive edge
through the use of software and digital content technologies, smart mobile apps and other high-tech applications. These
advancements will offer visitors new and enhanced travel experiences, aligning with the overarching goal of the initiative.
Through the integration of innovative technologies, the Cluster aims to modernise the tourism sector, providing visitors with
tailored, cutting-edge experiences, while ensuring Greece’s continued relevance and competitiveness in the global tourism
market. The “Development of innovative technologies and new generation of digital applications in tourism and culture” R&D
programme has been successfully submitted to the Innovation Cluster CfP of the General Secretariat for Research &
Innovation, with a total budget of €2.8 million, allocated to 6 ambitious collaborative R&D projects from 13 companies.
Exportgate and extroversion initiatives
Eurobank aims at actively contributing to the country’s economic growth and recognises the importance of entrepreneurship
as a major lever for the expansion of the Greek economy. The Eurobank also focuses on supporting the extroversion of Greek
businesses by encouraging new business initiatives. With the support of 4 leading Greek export associations (Panhellenic
Exporters Association, Greek International Business Association, Exporters’ Association of Crete and SEV-Hellenic Federation
of Enterprises), Eurobank created Exportgate, a pioneering international web trade portal offering networking opportunities
in the global market to Greek and Cypriot companies and providing access to advanced tools for their international business
operations. With more than 5,500 participating Greek companies, it covers all major sectors of the economy.
Exportgate members have online access to information for over 1,000,000 partners located in 200 countries. 2023 marked
the 10-year anniversary since Exportgate’s launch and Eurobank scheduled a series of initiatives to celebrate this significant
milestone and to essentially thank its valuable partners and members for being the greatest ambassadors in the
development of its extroversion strategy. Exportgate is a member of the Trade Club Alliance (TCA) network, following the
strategic agreement between Eurobank and Santander, a leading bank in retail and corporate banking registered in Spain.
Supported by international banks covering over 65% of global trade corridors, the TCA is the first e-business network enabling
its members to identify partners easily, quickly and reliably around the globe by strongly investing in advanced AI
technologies. The network is still expanding, with the most recent integration in the market of China, represented by the Bank
of China.
Additionally, there is strong collaboration with Enterprise Greece, the official investment, and trade promotion agency of the
Greek State, aiming at increasing export activity and at attracting foreign investments. Through SEV’s extroversion initiatives
(Export Ready Workshops and Doing Business Events), SEV and Eurobank have established powerful synergies offering end-
to-end support to Greek businesses.
Growth Awards
Eurobank established the “Growth Awards” in 2016, in partnership with Grant Thornton. The aim was to reward companies
that combine high financial performance with a successful corporate history and contribute to forming a new entrepreneurial
landscape and work culture in Greece. The awards aspire to become one of the leading ways of acknowledging business
excellence and supporting the growth of robust enterprises in Greece.
The 7 Growth Awards ceremonies to date have awarded 44 of the most robust Greek enterprises. More than 2,000 guests
attend the award ceremony every year, 7 internationally renowned speakers have been hosted and around 80 enterprises
apply annually. The Award Committee consists of 20 distinguished individuals from the Greek business and academic arena.
Digital Banking
Throughout 2024, Eurobank was fully committed to continue delivering personalised and user-friendly digital services, as part
of its digital transformation, investing in technological infrastructure and human resources, and supporting all users in
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accessing digital solutions. Eurobank Group Digital Banking leverages its expertise to provide innovative, data driven
financial products and services. Placing customers at the center, it delivers simple, personalized 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:
1)
External digitisation – Its digital footprint through web and mobile banking, websites and social media
presence.
2)
Internal digitisation – Its simplified internal processes through all customer touchpoints.
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 2024
involved the provision of new digital products and services for both Individuals and Businesses Key digital products and
initiatives for 2024:
●
Group Sales Digital Onboarding: a unique in the Greek market, digital service allowing companies to digitalise their
payroll process while enabling their employees to digital onboard their employers payroll service,
●
New credit products – Introduced personalised and pre -advised products with automated credit decisions, enabling a
seamless and fast digital experience. Launched a market-first virtual credit card
●
Insurance products – Launched additional general insurance products via digital channels, such as Motor Insurance and
Pet insurance products.
●
A new product offering for teenagers: a virtual prepaid issued by the parent/guardian and used by the minor.
●
Digital offering for businesses – Introduced online set up of Time Deposit deals with personalized options application for
POS facility, as well as numerous digital tools for the administration of a company’s legal documentation.
These products cater for the everyday needs of businesses, providing efficient financial solutions to support their operations
and growth, alleviate the need to visit a branch and save valuable time.
In addition to these digital products, Eurobank made notable advancements in 2024:
●
Expanded partnerships in embedded financing – Launched new partnerships with merchants in embedded financing.
This initiative enables consumers to finance their online purchases directly through the Group when shopping online,
streamlining the payment process and enhancing convenience for customers.
●
Enhanced customer service features – Introduced several features to upgrade the customer experience and save
customers time from visiting a branch for service requests, such as the addition of a new account beneficiary and the
ability to issue Certificates with a simple click of a button.
●
Open Banking – Eurobank made further progress in Open Banking by offering new custom added-value APIs, to
cooperating companies, in the areas of onboarding, account and transactions management etc
●
The Open Banking channel:
o
Served 150,000 customers with 12,000,000 calls.
o
Increased transaction volume to €171 million, up from 7M compared to 2023.
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 2024, Eurobank was honoured as «Best Consumer Digital Bank in Western Europe for 2024» for the 5th
consecutive year, by the esteemed US Global Finance magazine, affirming its continuous excellence in digital banking on an
international scale. Additionally, during 2024 Eurobank the Eurobank Mobile App was ranked 1st in the App store and iOS
among all other banks in Greece.
Digital and hybrid sales
●
Enriching product offering across product categories and segments, such as new credit products (personalized and pre-
advised loans), virtual credit card, virtual prepaid for teenagers, “Salary Link” service (allowing employees to have salary
deposited into a Eurobank account), Motor & Pet insurance products
●
Increasing traffic and optimizing journeys through various digital campaigns, promotions, and events for a significant
number of digital products. Additionally, designing and making the most of new capabilities to drive engagement and
sales (e.g., personalized promo areas in e/m banking, lead generation from eurobank.gr).
●
Designing and developing new hybrid journeys and capabilities, contributing to Eurobank’s phygital model. Key
initiatives included enhancements and the addition of new products in the Digital Safebox (the application is initiated
at the branch or through telemarketing and completed by the customer via e/m banking), guiding customers to digital
channels during the “Book a Branch appointment” process.
User experience
- The User Experience (UX) team prioritises the customer/user in all Bank's operations. UX Researchers and
Designers work to improve the experiences of both customers and staff across various channels and touchpoints, applying
established design standards, including accessibility considerations and best practices. To conduct user research, the team
utilises state-of-the-art UX Lab facilities, employs a variety of methods and custom tools (such as user interviews, design
thinking, usability tests, card sorting, tree testing). This approach involves recruiting both external and internal users to ensure
a holistic understanding of user needs and behaviours.
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The UX team has created 4 user pools: the Digital Community (digital banking customers), the Digiators (internal staff),
Friends & Family, and Accessibility for all (people with disabilities) to simplify processes and efficiently gain insights.
During 2024, approximately 179 users, including users with disabilities, were engaged in 31 research activities and testing as
well as 326 users were engaged in online questionnaire for 9 projects. User flows and designs were created for 117 projects.
It also implemented design systems for mobile app, e-banking, eurobank.gr, unify and drive+ so as to work with specific
design standards, patterns and components, to provide consistent experiences and efficiencies to the design and
development teams. Organised specialist accessibility training and experiential workshops for cross-functional collaborating
teams (25 hours).
Websites
search engines, such as Google. The year also marked a major technological advancement with a comprehensive upgrade
to the Sitecore infrastructure, incorporating features like
Sitecore Personalise
Additionally, ongoing improvements to calculators and interactive tools were implemented to enhance the user experience
and drive lead generation.
Social media – With 11 active channels on different platforms, such as Facebook, LinkedIn, Instagram, TikTok and YouTube,
Eurobank:
●
Recorded 334,951 interactions.
●
Produced content with 866 organic posts across social media platforms.
●
Performed community management, responding to 9,466 user comments
Community management across the Eurobank’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 on TikTok and 2nd on YouTube across the Greek banking sector.
The €pistrofi loyalty page on Facebook was 1st in interactions and followers growth across the Greek banking sector. Also,
Eurobank was the first bank to launch a TikTok series in Greece & create native content on TikTok, adapting to the platform's
unique style and user preferences. Additionally, it completely transformed its tone of voice for community management on
TikTok, ensuring it remains relevant and engaging to the platform's audience.
Digital Creative Hub
increased demand (+39%) for digital content through 2,436 deliverables for 597 projects in Group Websites (incl. Robochat,
chatBot features), 175 email campaigns, 93 digital channels product pages, flows and microcopy projects.
Performance marketing
in achieving their sales targets, and indirectly, with marketing campaigns aiming at increasing brand awareness. In 2024, 111
digital campaigns were launched, reaching:
●
Over 4 million users
●
1 billion impressions
●
67.2 million video views
●
Approximately 16 million clicks Using cookies in accordance with the applicable data protection legislation,
Eurobank continues to collect data from user interactions on its websites, to serve personalized ad content.
Customer journeys and internal digitisation
channels. Numerous initiatives were carried out across channels and segments, aiming to achieve customer and operational
excellence through sustainable paths. As a result, Eurobank achieved a Net Promoter Score (NPS) over 40 in a major customer
journeys.
Key highlights per journey:
●
Customer onboarding and management – Made it easier and faster for customers to start and manage their
relationship with it through physical channels, by integrating various technologies and improvements, such us:
automating document submission and e-kyc services, reducing customer signatures by 80% and time-to service even
further. Notably, for private clientele, it reduced signatures by 66%, as part of its commitment to excel on the wealth
management operation spectrum.
●
clients, wherever they may be, in an effort to boost service accessibility and convenience. From account opening to
card issuance, it is bringing the Group to its customers’ doorsteps, with secure.
●
Lending journeys – Reduced time-to-cash even further less than one and a half days), aiming to respond faster to
customer requests. In addition, the consumer lending process achieved remarkable efficiency, with over 50% of
applications seamlessly progressing without the foureyes principle, due to automated checks. Moreover, Eurobank
maintained a robust 80% automation rate on credit decision procedure, demonstrating its commitment to
operational excellence and risk management. 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 2024 more than 1,000 businesses were able to proceed in contract
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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.
Business Analytics & Customer Value Management
In 2024, Eurobank continued to advance its data-driven transformation strategy, leveraging advanced analytics and data
integration to enhance efficiency and deliver personalization at scale. Through its Campaign Management platform, the
Business Analytics and Customer Value Management team executed over 30,000 actions and facilitated 47 million customer
interactions, optimizing communication across both digital and physical channels.
Eurobank’s commitment to data-driven transformation is exemplified by the successful development and deployment of a
Comprehensive Recommendation Engine, which combines machine learning algorithms with business rules to effectively
prioritise business objectives. This initiative resulted in 2.1 million customers receiving at least one personalized
recommendation, covering 87% of the transactional customer base.
Additionally, Eurobank significantly improved its anti-money laundering (AML) detection processes through the application
of diverse machine learning techniques, achieving a 20-fold increase in accuracy. The integration of AML data with advanced
visualization tools further streamlined case investigations, supported by GenAI-generated text to assist agents in articulating
the outcomes of ML-driven analyses.
Eurobank also enhanced system integration and automation by successfully connecting its Campaign Management System
with the mobile app, enabling real-time data flow and always-on campaigns. Notably, more than 60% of digital sales were
driven by the Campaign Management Ecosystem, reflecting the impactful use of business analytics and AI.
These achievements underscore Eurobank’s dedication to driving business growth and operational efficiency through
advanced analytics, automation, and robust data integration strategies.
External ESG awareness
Eurobank has taken measures to assist stakeholders to assimilate ESG terminology, opportunities and applicability. Building
ESG awareness for external stakeholders, and particularly for clients, is an integral part of Eurobank’s Operational Impact
Strategy. Digital Academy for Business Eurobank actively supports Greek businesses in their digital and sustainability
transition, through a groundbreaking CSR initiative, constituting a catalyst for business transformation and success. Since
2019, the Digital Academy has been offering a transformative learning experience, tailored to the evolving needs of
businesses in the digital age. With a deep commitment to fostering digital literacy, innovation and entrepreneurship, the
Academy stands as a beacon of excellence in capacity building.
The scope of these actions is to consistently deliver exceptional service and leveraging digital innovations. The timeline for
completing these actions is ongoing, reflecting Eurobank's commitment to adapting to and fostering innovation.
3.3.4
Metrics & Targets
Fostering Innovation metrics [MDR-M]
The metrics are reflecting the performance of Eurobank, which is the Group’s key entity. The primary metrics used to evaluate
performance and effectiveness in relation to the e-Banking and Eurobank Mobile App, as well as the Digital and hybrid sales
include:
2023
2024
Use of digital channels
Use of digital channels- % of mobile users exclusively using Mobile
App for their transactions with the Bank on a monthly basis
78%
78%
Transactions
Volume of digital transactions in respect to transactions (excluding
withdrawals/deposits) from all Eurobank channels
95%
96%
Value of digital transactions in respect to transactions (excluding
withdrawals/deposits) from all Eurobank channels
54%
54%
Percentage change in volume of digital transactions
15%
21%
Percentage change in value of digital transactions
12%
26%
Statements
e-Statements produced (million)
4.7
5.3
Additional savings from e-Statement use (€)
1,154,000
620,000
egg Start-Up Platform - The initiative is aimed at start-ups and business teams with innovative business ideas at various
stages of development: pre-seed, seed and early stage. It provides support for their business ventures and helps them to
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develop and bring their product or service to market faster. Once business teams set up the company that will implement
their business plan, they gain access to specific financial tools to obtain financing based on their needs.
egg Scale-Up platform – It is addressed to businesses with significant growth potential, which are looking to increase their
growth and reach the next round of financing through their accelerated expansion. The egg – enter grow go business
accelerator has left its entrepreneurial and social mark:
●
1,500 entrepreneurs have been hosted in egg premises
●
450 business teams have been participated in egg Platforms
●
220 business teams have created legal entities
●
96 startups are spin-offs from Universities in Greece and abroad
●
€49.2 million revenues from 159 egg alumni startups
●
€55.2 million from private investment funds (Equity funding - Funds/Business Angels) in 76 egg startups
●
€3.3 million financing from Eurobank to 51 egg startups (Eurobank Financing Tool)
●
over €12 million Eurobank’s investment in egg over the past 12 years
●
360 recruitments (part time/full time job)
●
61 companies have filed patents
●
83 companies have participated in 17 business trips to 10 innovative ecosystems abroad (Europe, USA, Canada,
Middle East) through egg extroversion program
●
€75,000 from Eurobank in cash prizes
●
€100,000 donated to charities
●
130 synergies among egg alumni
●
45 female CEOs in the egg startups
●
26.4% in egg community are women
●
Since 2020, egg has co-organised 52 events.
●
Since 2019, egg has sponsored 32 initiatives.
Fostering innovation targets [MDR-T]
Through the Social impact pillar of the Sustainability Strategy, the Group has set targets to enhance accessibility initiatives
for services and products targeted to underserved social groups and raise staff awareness and familiarity on disabilities
through experiential training by 2025.
3.4
Financial Inclusion [Entity-specific]
3.4.1
Strategy
Description of material impacts, risks and opportunities and their interaction with strategy and business model [SBM-3]
Eurobank considers financial inclusion as a core aspect of its strategy and business model and approaches it in a twofold
manner.
Offering financing products that specifically relate to infrastructure and supported services, aiming to assist businesses grow
and become updated, boost their competitiveness.
Making its services, assets, resources and opportunities accessible to all. This means continuous investment in banking
services friendly towards persons with disabilities, but above all, training and awareness for all on accessible banking issues.
To this end, through its network, Eurobank aims to maintain its presence in remote and inaccessible areas, serving
populations having difficulty to physically access banking services.
The Group has identified social impact financing, which relates to activities such as education, upskilling health care, financial
inclusion, social cohesion and gender equality, as a key focus area. The Group understands that social risk management is
crucial to ensure an effective and sustainable business model and has, therefore, taken actions to adjust its business model,
strategy and processes, as well as its financial planning to account for risks arising from social matters, planning to further
enhance such activities in the foreseeable future. Key strategy to manage those risks is the promotion of financial inclusion.
Financial Inclusion is a strategic business opportunity in relation to the increase of positive and the reduction of negative
impacts has identified and have worked on these in the reporting period by constantly identifying innovative channels for
service delivery and designing value-adding solutions, tailor-made to its customer needs.
Regarding the Governance -related information please refer to :
1.3 Governance.
3.4.2
Impact, risk and opportunity management
Description of processes to identify and assess material impacts, risks and opportunities [ESRS 2 IRO-1]
Through the DMA Eurobank has identified the following material opportunity related to financial inclusion:
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Opportunity
Contributing to financial inclusion aligns with social impact goals, positively impacting brand
reputation and offering financing to underserved populations, such as students and
geographically isolated communities.
The process of assessing financial inclusion applies across all regions where Eurobank operates.
3.4.3
Policies related to financial inclusion
Policies related to financial inclusion [MDR-P]
The Group’s Sustainability Policy Framework is the underlying policy describing its strategic objective to adapt its business
and operations in a way that:
●
Addresses climate change challenges
●
Accommodates social needs within its business model, and
●
Safeguards prudent governance for the Group and its counterparties, in accordance with supervisory initiatives and
following international standards/ best practices.
The Sustainability Policy Framework makes explicit reference to the significance of financial inclusion and its role in the overall
sustainability strategy which includes its commitments and targets of the societal pillar for boosting accessibility and
inclusion of customers by 2025.
In addition, in relation to the promotion social finance, the Group has established the Sustainable Finance Framework which
defines the financing approaches, activities and criteria that need to be met in order for financings to be classified as
sustainable. Specifically for the social pillar, the Framework sets out the following eligible activities and associated criteria
that need to be met for financings to contribute financial / economic inclusion purposes:
Activity
Eligibility Criteria
Exclusions
Employment generation & Access to
financing
Infrastructure & other projects that generate local
employment
Microfinance & SME financing
Loans to
businesses in
excluded sectors
Equitable access to and control over assets,
services, resources, and opportunities
Financing to vulnerable groups
Financing of publicly accessible assets, services, and
resources
For more information regarding Policies related to Financial Inclusion please refer to: “3.2.2: Policies related to consumers
and end-users [S4-1]” and 2.5.4 Policies and Actions.
Actions related to financial inclusion [MDR-A]
Supporting small businesses and social finance
Eurobank promotes financing products that specifically relate to infrastructure and supported services, aiming to assist
businesses grow and become updated, boost their competitiveness, and improve the quality of the products and services
they offer. These processes have been embedded into the Group’s operating model and are performed on an ongoing basis
in the context of continuous financial inclusion:
●
Financing under InvestEU RRF _GR under the Member State compartment of the InvestEU programme for Greece,
funded by the Recovery and Resilience Facility (RRF) and in line with the Recovery and Resilience Plan for Greece
which targets actions in three areas :
1.
Strengthening Competitiveness "RRF GR SME Competitiveness" –RBB only
2.
Developing Innovation & Digitalization "RRF GR Innovation & Digitalization" (Not yet available CBN & RBB)
3.
Sustainability "RRF GR Sustainability" (Not yet available CBN & RBB) with the Guarantee of the European
Investment Fund (EIF). The funding available under the new (sub)programmes is targeted at SMEs, to cover their
working capital needs and/or to implement investment projects, aimed at improving their competitiveness
including research & innovation, sustainability, digitalisation and digital upgrading of their operations.
●
Financing under SME Competitiveness which benefits from support from the European Union under the InvestEU
Fund. (RBB only). Through InvestEU SME Competitiveness Guarantee Programme, with the guarantee of the
European Investment Fund (EIF), eligible enterprises can access liquidity with reduced collateral requirements and
favourable pricing conditions to cover their working capital needs and/or to implement investment projects aimed
at improving their competitiveness.
●
EIB Funding (FIs 88311/2017, 89424/2018, 90866/2019) (Re-employment of funds for CBN).
Standard facility of EIB Loan for SMEs and MidCaps, which focuses (for at least 1/3) on the financing of Final Beneficiaries
which promote youth employment, in the context of the EIB’s Jobs for Youth Initiative.
SMEs and Midcaps that are financed for “Jobs for Youth” have an additional 20bps transfer of financial advantage.
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●
Criteria for Jobs for Youth Initiative:
o
In the last 6 months it has employed at least one young person (5 for MidCaps), or in the coming 6 months it
plans to employ at least one young person (5 for MidCaps), calculated from the signature date of the On-lending
Agreement; it commits to keep the young people in employment for at least 1 year
o
In the last 6 months it has provided a vocational training or internship position to at least one young person (5
for MidCaps), or in the coming 6 months it plans to provide a vocational training or internship position to at
least one young person (5 for MidCaps), calculated from the signature date of the On-lending Agreement. The
training/internship has a duration of at least 3 months and is formalised by an active cooperation agreement
with a technical school, university or public employment agency and/or is confirmed by a letter signed by one of
these institutions and/or is part of the Final Beneficiary’s own formalised vocational training or internship
programme, and/or
o
In the last 6 months it has participated in a youth entrepreneurship programme of a Non-Governmental
Organisation or educational institution, or plans to participate in such programme in the coming 6 months.
HDB Programs
Co-Financed Programs
●
TEPIX III (Co-financing rate 40%-60% HDB/ERB)
The Fund improves the access to finance for all small and medium-sized enterprises (SMEs) and aims to support and
develop their business activity, so as to cover a wide range of their financing needs. Furthermore, the programme
aims to enhance the productivity of the enterprises, by improving their processes for products & services and to
improve their competitiveness.
●
Micro Agri (Co-financing rate 50%-50% HDB/ERB).
The Fund aims to provide micro loans for investment purposes, covering investments in agricultural sector, as well
as in investments related to the processing of agricultural products with a final product that is also agricultural.
Working Capital may be granted subject to and for the purposes of investment.
●
Business Growth Fund (Co-financing rate HDB/ERB 40%-60%).
Green Loans Program
The Fund aims to support SMEs to meet their investment purposes in implementing Green Transition projects that
facilitate reducing emissions, protect the environment and reduce energy consumption costs.
●
Digital Loans Program
The Fund aims to support SMEs to meet their investment purposes, which are submitted via a business plan, in
order to digitize and digital upgrade their operations, so as to increase productivity, achieve business growth and
create new jobs.
Guarantee Programs
●
TEPIX III
This Fund was designed by the HDB to support SMEs by offering them not only the necessary liquidity and capital
for investments but also the ability to reduce their financing costs. The zero guarantee fee, grace period, and interest
subsidy make financing more accessible, while revolving credit facility provides the flexibility that SMEs need to
respond to the constantly changing market needs. Additionally, the investment and special purpose working capital
loans enable SMEs to implement their strategic investments, expand, and enhance their competitiveness.
●
Tameio Eggyodosias TMEDE
The Fund aims to enhance the liquidity of SMEs of the construction and engineering sectors that wish to undertake
or have undertaken the execution of projects and/or studies of public interest, regardless of the stage of execution
of the project or study, through the provision of guarantees to the cooperative Credit Institutions providing Working
Capital Loans, with a regular maturity, with a disbursement. (RBB only). Active program in 1st semester of 2024,
expected to be reactivated again
o
Tameio Eggyodosias Kainotomias finance innovative SMEs, for the implementation of investment projects, with
the aim of research and innovation, through the creation and implementation of a new or significantly improved
product or a process, a new marketing method or a new organisational method in business practices, workplace
organisation. (RBB only). Active program in 1st semester of 2024, expected to be reactivated again.
●
DeLFI GF
It applies to existing and newly established Very Small, Small, and Medium-sized Enterprises (SMEs) that have been
classified under a support scheme through the new Development Law 4887/2022. (RBB & CBN)
In the area of financial inclusion, there also the following actions:
●
Moving Education Forward - Professional MSc on Digital Transformation
: we are covering all the expenses of a
new MSc at the Athens University of Economics and Business, and in this way, we are helping up to 25 young people
to study with very low fees in a field of high demand and enter the job market successfully. We have also committed
to be hiring 10 of them each year.
●
Moving Education Forward - mprostagiatinpaideia.gr
: we are funding development and operation of a digital
platform for connecting students with the job market, though training for hard and soft skills, counseling, mentoring
and internships.
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●
Moving Family Forward
- As part of Eurobank’s program for addressing the demographic problem, focusing on the
country’s eastern borders, we have moved 75 europhone banking. positions to Evros and Northern Aegean Islands,
creating opportunities for young people to work from home and have their families there.
●
Moving Family Forward - Free IVF
to have an IVF treatment in order to have a baby. In this way we give them access to medical infrastructures and
services that they would not be able to use otherwise. 50 kids have been born so far in this way.
●
Reviving savings culture
children understand the concept of savings, through two sub-projects: Awarding student assays on the International
Savings Day – 31
st
of October, and training teachers on savings and other financial literacy topics in order to pass
this knowledge to their young students.
Making banking accessible
Focusing on customer service, Eurobank aims to make its services, assets, resources and opportunities accessible to all. To
this end, through its branch network (266 branches), the Hellenic Post Office network (469 offices) and the self-service banking
terminal network (1,627 service points), Eurobank aims to maintain its presence in remote and inaccessible areas, serving
populations having difficulty to physically access services, as well as people with disabilities. 100% ATM with voice guidance
and 117 ATM (10%) for wheelchair access. Through the Hellenic Post branches, Eurobank is present in 238 Municipal
Communities with a population of less than 5,000 people, many of whom have difficulty accessing services, especially on
remote islands (e.g. Agathonisi, Anafi, Karpathos, Nisyros, Tilos, Halki, Folegandros, Amorgos, etc.). Additionally, in 242 areas
with a population less than 5,000 people, access to services is provided via off -site ATMs (e.g. Agios Efstratios, Alonissos,
Symi, etc.). In 2024, the number of ATMs with deposit facilities increased by 206, as OffSite ATMs with deposits were added
and the old ELTA ATM fleet was replaced. The 52% of the ATM fleet has already deposit functionality.
With customer service being a key priority, Eurobank is also particularly aware of the need to make its services accessible to
people with disabilities and takes all the appropriate measures.
Specialized banking personnel in the innovative v-Banking
service are continuously trained in sign language to guide deaf and hard-of-hearing customers step-by-step via video
communication. E-banking is now accessible to people with visual impairments, mobility issues, epilepsy, dyslexia, hearing
loss, and more, through continuous accessibility audits and improvements based on WCAG level AA. Specifically, font sizes
for text, images, etc., have been adjusted, as well as colors and contrast ratios between text and backgrounds to meet the
minimum contrast ratio of the 4.5:1 rule. Navigation can be done via the keyboard, and the code is properly structured to
work with any assistive technology. The content structure facilitates navigation for users using assistive navigation
technologies, such as the correct order of headings, texts, and various components using appropriate HTML tags.
In addition, Eurobank is creating conditions for seamless banking services for individuals on the autism spectrum. In
collaboration with Happy Act, the Group is mapping the environments of future branches to identify conditions and areas
that can serve as sensory relief spaces. Additionally, sensory maps and social stories are being developed and will be
available on interaction tables and the website, allowing customers and their companions to understand the conditions they
will encounter at the branch in advance.
Eurobank also offers clients the option to be served in English at branches and through EuroPhone Banking, while English is
also available as an option at ATMs. EuroPhone Banking, v-Banking, e-Banking and the Eurobank Mobile App contribute
significantly to customers having access to services. The Group’s new “Going from physical to phygital” approach, an
innovative mentality that combines physical service with technology, introduces a new perspective in the Bank’s relationship
with its customers. Furthermor e, the Retail International Customers One-Stop Hub offers continuous support to non-resident
customers. As it is referenced in more detail at section 3.4 Fostering Innovation, Eurobank Group Digital Banking leverages
its expertise to provide innovative, data driven financial products and services. Placing customers at the centre, it delivers
simple, personalized 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.
Our actions to make Eurobank’s services, assets, resources and opportunities accessible to all consumers, are strategically
adapted and deployed across subsidiaries in Bulgaria, Cyprus, and Luxembourg. Example of relative initiatives are Touch
Credit and Debit Cards designed to make payments more accessible to visually impaired customers, ATM/Branch
accessibility for people with disabilities, responsible individual in each branch to assist people with disabilities, etc. While
these programs are tailored to address the specific local contexts and regulatory environments, they remain aligned with
Eurobank’s ove rarching sustainability objectives.
Moreover, in 2024, Eurobank tried to improve customer service and productivity by:
●
Scheduling appointments at all Eurobank branches – Over 1,114,000 appointments were scheduled throughout the
year. The online appointment booking option (through eurobank.gr) became available towards the end of July 2023.
Τhe total appointments during the whole year 2024 was 32%.
●
Increasing the time relationship managers allocate to each client – To achieve this, Eurobank implemented 2
changes:
o
The Eurobank call centre answers incoming calls to all branches, allowing for faster and more efficient service.
o
Branch staff between 10:00 – 13:00 focus on advisory services and customers can carry out monetary
transactions exclusively with the use of self-service transaction terminals. This has been implemented in 264 out
of 266 branches.
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●
Launching the project Mobility – This project allows offsite banking, as part of the Group’s consulting approach and
the further development of its services. 1,400 officers have offsite access during their visit to a customer’s premises,
to provide end-to-end services for a specific range of banking transactions/products.
●
Enhancing digital and hybrid offering with the Digital Safe Box – This allows customers to get even complex products
remotely, signing all necessary paperwork through their e-Banking, in line with Eurobank’s “bank everywhere” vision.
The Digital Safe Box accounts for 10-15% of product sales, for available product categories, while numbers are
growing, and a wider product range is expected to be covered.
Eurobank has an exclusive cooperation agreement with Hellenic Post (ELTA) that allows Eurobank’s customers to enjoy core
banking services through the Hellenic Post branch network. With more than 465 branches and 116 ATMs across Greece, the
Hellenic Post branch network provides extensive nationwide service, both in urban and in remote areas, where banking
presence is limited or non-existent.
In addition. Eurobank’s Telemarketing is an alternative channel which promotes products and services to existing Group
customers. The promotions and targeted customers are selected in collaboration with 3 segments (IB, PB, SB). Telemarketing
offers direct, personal and 2-way communication. The sales are completed over the phone, digitally or at the customer’s
place of choice. The main promotional products are credit and debit cards, and simple bancassurance products. Information
is provided directly over the telephone or through referral to the branch network.
In 2024, Eurobank received three awards at the Diversity, Equity & Inclusion Awards 2024 organised by the Diversity Charter.
The Eurobank was recognised for its features and services aimed at improving the experience of people with disabilities,
achieving high scores in the categories of "Bank Strategy" and "Innovation/Creativity".
●
Diversity, Equity & Inclusion Awards 2024 by Diversity Charter:
o
Gold Award in "Mental Health & Neurodiversity" for initiatives supporting individuals on the autism spectrum.
o
Silver Award in "Disabilities/Chronic Diseases" for comprehensive efforts to improve services for people with
disabilities.
o
Silver Award in "Physical Abilities" for initiatives aiding individuals with mobility challenges.
●
National Customer Service Awards 2024:
o
Excellence Award in "Best Outsourcing Partnership": Recognized for collaboration with The Happy Act,
enhancing accessibility in next-generation branches for individuals on the autism spectrum.
o
Best Organisation for ESG Factors & Practices in Customer Service: Recognised for its innovative practices
across service channels, recognised for the inclusion of customers with disabilities through technology, and
noted for its systematic approach to measuring and leveraging ESG practices.
Additionally, Eurobank received three awards at DEI Bite awards 2024.
The Group was recognised for projects Mobility & online customer appointment. Eurobank's adopts the human-centered
Phygital model, combining technological infrastructure with the human factor to provide simple, fast, and personalized
service. The term Phygital is derived from the combination of physical and digital experiences and interactions.
●
Μοbility
o
Gold award in Digital Transformation of Customer Experience
o
Silver award in Digital Transformation of Business Model
●
Online Customer Appointment
o
Bronze award in Digital Transformation of Business Model
3.4.4
Metrics & Targets
Financial inclusion metrics [MDR-M]
Supporting small businesses and social finance
With respect to SME support and social finance, Eurobank, which is the Group’s key entity, measures its performance through
the financing amounts directed to through relevant programs:
Outstanding balance as of
31.12.2024 (€ mn)
Disbursed amounts in 2024
(€ mn)
EIF – ESIF ERDF
20.7
-
Financing under the European Commission’s EaSI
1.8
-
Hellenic Development Bank (HDB) TEPIX III
125.8
169.6
Business Growth Fund
13.4
1.4
EAT Micro AGRI
0.8
0.5
Tamio Eggiodosias EAT TMEDE
1.3
0.4
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Tamio Eggiodosias Kenotomias
1.5
0.3
Mortgage Loans for Multichild families in remote areas
0.8
0.8
“My Home”
44.3
31
Total
210.5
204
Making banking accessible
Through the Hellenic Post branches, Eurobank is present in 238 Municipal Communities with a population of less than 5,000
people, many of whom have difficulty accessing services, especially on remote islands (e.g. Agathonisi, Anafi, Karpathos,
Nisyros, Tilos, Halki, Folegandros, Amorgos, etc.). Additionally, in 242 areas with a population less than 5,000 people, access
to services is provided via off -site ATMs (e.g. Agios Efstratios, Alonissos, Symi etc.)
The following metrics and actions demonstrate Eurobank’s efforts to serve people with disabilities:
●
100% ATM with voice guidance and 117 ATM (10%) for wheelchair access
●
Customers with disabilities receive priority service at all branches, where appropriate signage and Braille writing
are provided at the entrance, and managers use QR codes via Nemo Q machines to ensure maximum priority.
Additionally, priority service is provided through Europhone Banking, where keywords such as "disability" are
recognised by the voice portal and routed to a dedicated skill set serviced by specially trained agents, based on
customer declaration.
●
92 branches have access ramps for customers with reduced mobility, all new branches feature permanent ramps,
and 7 branches have detachable ramps, with plans to expand to more branches by 2025.
●
All transaction documents are emailed in a format readable by assistive technologies, allowing people with visual
impairments to read them immediately, easily, and safely.
●
More than 1117 ATMs and 441 APS are installed at a lower height to serve customers in wheelchairs at selected
branches, as detailed in the Br./ATM locator on Eurobank.gr.
●
People with visual impairment can receive documents in Braille and statements in pdf that can be read by assistive
technologies.
●
Eurobank’s innovative v-Banking service includes specialized banking personnel trained in sign language, enabling
deaf and hard-of-hearing customers to receive comprehensive assistance through video communication. This
service allows them to update their information via e-banking without visiting a branch and consult with experts on
complex issues, ensuring full access to banking services from the comfort of their home.
●
More than 1186 ATMs are equipped with voice guidance that gives instructions in private on how clients can perform
their transactions.
●
Continuous accessibility audits drive in improvements based on WSAG 2.1 level AA in digital channels.
●
The website features dedicated pages that provide information on multiple service options tailored to each type of
disability, and it offers people with disabilities the opportunity to communicate their suggestions to the bank via a
special contact form.
●
Eurobank enhances awareness through educational programs attended by 1,827 employees, including online courses
and experiential training, as well as inspirational events involving approximately 2,500 employees.
●
11 staff members have participated in training on sign language.
Financial inclusion targets [MDR-T]
Through the Societal impact pillar of the sustainability strategy, and specifically, the commitment to boost accessibility and
inclusion for customers by 2025, the Group has set targets to enhance accessibility initiatives for services and products
targeted to underserved social groups and raise staff awareness and familiarity on disabilities through experiential training.
In 2025, with the integration of the digital disability card into the Bank's systems, customers with disabilities receive the
highest priority in service at all branches. Customers with disabilities are able to use their debit or credit card to receive
expedited service through the Nemo Q system, provided they have submitted their digital disability card. Additionally,
Eurobank offers exclusive benefits and discounts with the Digital Disability Card. These include the Eurobank My Advantage
Blue privilege package, which is available free of charge for 2025 and 2026, and a preferential interest rate of 1.85% for one
year on the "Αποταμιεύω" savings account for amounts up to 5,000 euros, compared to the current interest rate of 0.30%.
These initiatives are part of Eurobank's broader financial inclusion targets, aiming to provide equitable access to financial
services and benefits.
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4.
Governance Information
4.1
Business conduct [ESRS G1]
4.1.1 Governance
The role of the administrative, management and supervisory bodies [ESRS 2 GOV -1]
The CEO has administrative oversight of Board of Directors, through the Audit Committee, which is provided with reports
from the independent function of Group Compliance. Eurobank addressed the role of the administrative, management and
supervisory bodies related to business conduct through a range of Board Committees that support Eurobank’s strategy,
governance and regulatory adherence:
Audit Committee
The primary function of the Eurobank Holdings and Eurobank Audit Committees (ACs) is to assist the Board in discharging
its oversight responsibilities primarily relating to the:
●
Review of the adequacy of the Internal Control and Risk Management systems, and compliance with rules and
regulations monitoring process.
●
Review of the financial reporting process and satisfaction as to the integrity of the Financial Statements.
●
External Auditor selection, performance and independence.
●
Effectiveness and performance of the Internal Audit and of the Compliance function.
●
In line with the stipulation of the Law 5164 (Article 43), Audit Committee (AC) has been entrusted with additional
responsibilities concerning the submission and assurance of the Sustainability Statement
Board Risk Committee
The Eurobank Holdings and Eurobank Board Risk Committees (BRCs) assists the Board in risk issues and ensures that:
●
The monitoring of the overall actual and future risk appetite and strategy, takes into account all types of risks to
ensure that they are in line with the business strategy, objectives, corporate culture and values of the institution.
●
The risk management framework is appropriate and integrated in the decision-making process. The Committees
also define the risk management principles.
●
There are suitable methods, tools, models and data sources in place, as well as qualified and competent staff to
identify, assess, monitor and mitigate risks.
A range of
committees
established by the CEO
and functions
adherence. Among these, key committees and functions with roles in overseeing business conduct include:
●
Executive Board
: Manages the implementation of the group's strategy and aligns operational goals with Board
guidance, ensuring actions are conducted ethically and transparently.
●
Ethics Committee
: Ensures compliance with the Code of Conduct and Ethics, promoting a code of values for
employees, officers, and collaborators.
●
Regulatory Matters Committee
: The purpose of the Regulatory Matters Committee (RMC) is to uphold ethical
practices and ensure the highest standards of conduct by coordinating the actions required to improve the Group’s
compliance with existing or new regulatory requirements. In this context, the Committee actively monitors and
oversees projects to address the impact of new regulatory requirements as well as control improvements identified
by the Group’s control functions, external auditors, and regulators.
●
Group Compliance
: Plays a critical role in upholding regulatory compliance and ethical conduct standards across
Eurobank’s operations by ensuring adherence to corporate governance standards and training Eurobank’s
employees in the Code of Conduct and Ethics.
●
Group Internal Audit (Group IA)
: Independently reviews the adequacy and effectiveness of the internal control
framework in place regarding Sustainability risk related areas.
●
Committee against Violence and Harassment in Workplace:
The main objective of the Committee is to examine
and manage complaints / reports concerning incidents of violence and harassment at work, as well as to take the
necessary, appropriate and suitable measures on a case-by-case basis, to prevent and not reoccur similar incidents
or behaviors.
The expertise of the administrative, management and supervisory bodies on business conduct matters is ensured through
Directors’ Induction and Continuous Professional Development Process. All new Board members undergo a comprehensive
Induction Program designed to achieve several key objectives.
●
Firstly, it aims to convey the vision and culture of the HoldCo/Group.
●
Secondly, it covers practical procedural duties to ensure a smooth transition into their roles.
●
Thirdly, it aims to expedite their productivity by reducing the time needed to familiarize themselves with their
responsibilities.
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●
Fourthly, it integrates them as valued members of the Board.
●
Fifthly, it familiarizes them with the HoldCo/Group's organisational structure.
●
Lastly, it provides an understanding of the HoldCo/Group's business, strategy, market dynamics, relationships, and
its people.
4.1.2 Impact, risk and opportunity management
Description of the processes to identify and assess material impacts, risks and opportunities [ESRS 2 IRO-1]
Eurobank identifies material impacts, risks, and opportunities related to Governance and Business Conduct practices —such
as corporate culture, anti-corruption and anti-bribery measures, and whistleblower protection—through a comprehensive
DMA. This approach integrates industry benchmarks, stakeholder insights, and financial relevance to ensure a robust
evaluation of governance -related topics.
The material impacts identified through our DMA exercise are shown in the table below:
Corporate culture
Impact
Positive
Actual
Implementing operational practices and initiatives that improve stakeholders’ ability
to benefit from effective, accountable, and inclusive institutions, thereby promoting
business ethics and integrity.
Corruption and bribery
Impact
Positive
Actual
Commitment to corporate integrity is strengthened through the implementation of
robust anti-corruption and anti-bribery policies, promoting a culture of transparency
and ethical behaviour.
Negative
Potential
Corruption-related incidents can result in operational disruptions, redirecting
resources towards crisis management and adversely affecting Eurobank’s day-today
business activities.
Protection of whistleblowers
Impact
Positive
Actual
Commitment to whistleblower protection positively impacts society, employees,
customers, and shareholders, setting a precedent for ethical behaviour and fostering
a secure environment where misconduct is timely identified and stopped.
The process of assessing governance and business conduct practices applies across all regions where Eurobank operates,
and concerns staff members, customers, contractors, suppliers, beneficiaries or other persons or entities that participate or
seek to participate in activities that involve Eurobank.
As mentioned in Reporting of Illegal or Unethical Conduct Policy Statement, all staff members and all concerned third parties
are encouraged to submit a report regarding any incident of actual, attempted or reasonably suspected illegal or unethical
behaviour which affects and/or may be harmful to Eurobank and its mission, Eurobank’s staff members or concerned third
parties. This process may, indicatively and not exhaustively, refer to incidents of serious misconduct or serious violations of
Eurobank’s procedures, policies, guidelines or of the Code of Conduct and Ethics or anything that could damage the
reputation of Eurobank, as well as any attempt to cover up the above. It may also include violations of laws and regulations
and various forms of criminal behaviour, integrity violations and/or unethical behaviour including, but not limited to, theft,
embezzlement, corruption, bribery, conflicts of interest, money laundering, abuse or improper use of inside information, abuse
or improper use of Eurobank property, etc.
Group Compliance is responsible for the design, implementation, operation and improvement of the reporting system as well
as for the reporting on the performance of the reporting system to top management.
Business conduct policies and corporate culture [G1-1]
In relation to Eurobank’s policies on business conduct matters, in order to develop, promote and evaluate corporate culture,
Eurobank established mechanisms for identifying, reporting and investigating concerns about behaviour in contradiction of
Code of Conduct & Ethics. Specifically, a series of measures and controls are established that include carrying out monitoring
exercises, using systems, providing appropriate training to employees and having an appropriate body in place which reviews
cases relating to the Code by control and monitoring while also accommodating reporting from internal and/or external
stakeholders. Group Compliance is responsible for reviewing and revising relevant policies regarding the Business Conduct.
Eurobank prioritises the interests of its key stakeholders, including customers, employees, investors, and the community, when
setting policies. The Board of Directors regularly reviews the Group’s operations to ensure they meet stakeholder
expectations and regulatory requirements. Based on their assessments, the Board approves any necessary policy changes
to align Eurobank's practices with stakeholder needs and values.
Eurobank has developed policies on Anti-bribery and Corruption consistent with the United Nations Convention against
corruption and protects whistleblowers through internal reporting channels such as Whistleblowing Mechanism. All staff
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members are encouraged to raise issues of concern and speak up when they suspect potential wrongdoing or are faced with
conduct or situations that may raise ethical, legal or regulatory concerns.
A Policy for Reporting Illegal or Unethical Conduct is in place and a respective Policy Statement to facilitate its staff members
and concerned third parties to submit reports – through recommended internal or external reporting channels – on any
actual, attempted or suspected fraud or other unethical conduct, while eliminating any concerns that their report may result
in adverse consequences for themselves.
Eurobank implemented the following measures to protect against retaliation on employees who are whistleblowers in
accordance with the applicable law transposing Directive (EU) 2019/1937 of the European Parliament and of the Council:
●
Zero Tolerance
: Eurobank applies a strict zero-tolerance approach to any instances of retaliation against
whistleblowers, ensuring protection for those reporting fraud, corruption, money laundering, or any conduct that
could damage Eurobank’s reputation.
●
Confidentiality Assurance
: Eurobank is committed to maintaining confidentiality of whistleblowers’ identities.
Reports submitted by employees, or third parties are kept confidential, as long as the information provided is
accurate and submitted in good faith.
●
Safe Reporting Environment
: Unit heads are required to foster a workplace atmosphere where employees feel safe
to report issues. This includes encouraging open communication and ensuring staff feel free to express concerns
without fear of adverse consequences.
●
ISO certifications
: Surveillance for ISO certification (37002) on the management of the Whistleblowing System and
new ISO certification (37001) on Anti-Bribery and Corruption Management Systems.
●
Accessible Reporting Channels
: Eurobank provides multiple reporting channels to report misconduct:
o
Email: Reports can be submitted to the dedicated email address, ethicshotline@eurobank.gr.
o
Phone Hotline: A 24/7 phone line (+30 214 4058990) is available for reporting concerns at any time.
o
Postal Mail: Reports can also be sent by mail to the Report Receiving and Monitoring Officer (RRMO) and the
Assistant RRMO.
●
Encouragement to Speak Up
: The policy actively encourages all staff to voice concerns and report suspected
wrongdoing, particularly if they encounter conduct that raises ethical, legal, or regulatory questions.
●
Centralized Reporting and Monitoring
: All reports, regardless of the internal party that initially receives them, are
forwarded to the Report Receiving and Monitoring Officer (RRMO), and the Assistant RRMO, ensuring consistent
handling and monitoring of reported issues.
Beyond the procedures to follow-up on reports by whistleblowers in accordance with the applicable law transposing Directive
(EU) 2019/1937, Eurobank investigates procedures on business conduct incidents, including incidents of corruption and bribery,
promptly, independently and objectively. For more information, refer to [G1-3].
In 2023, a new digital learning programme on the Code of Conduct and Ethics was carried out to all staff, which included
corruption and bribery issues as well, that continued in 2024 for all the newcomers employees, aiming to raise awareness
and cultivate a strong culture of values and integrity. Additionally, in 2024 the updated Code of Conduct and Ethics was
distributed to all staff to raise awareness and educate the employees.
Eurobank confirms that is subject to legal requirements under national law transposing Directive (EU) 2019/1937 with regard
to the protection of whistle-blowers. Eurobank has in place the following policies with regard to business conduct:
●
Code of Conduct and Ethics
●
Anti-Bribery and Corruption Policy
●
Conflicts of Interest Policy
●
Policy for Reporting Illegal or Unethical Conduct
●
Group Antitrust Compliance Policy
●
External Engagement Policy
●
Insider Dealing Guideline
●
Management of Complaints policy
●
Personal Data Protection Policy
Eurobank’s mission is to promote a sustainable compliance culture that encourages integrity through ethical conduct and
commitment to compliance with the applicable regulatory framework and the international corporate governance
standards.
Key actions taken to establish, develop and promote corporate culture include:
●
Expanding the Compliance Risk Assessment Framework, including coordination of the Compliance risk assessment
activities in the areas of corporate governance and data protection.
●
Introducing a Regtech solution for regulatory analysis and preliminary impact assessment.
●
Further calibrating the AML risk assessment process and enhancing the AML transaction monitoring system.
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●
Launching an automated ML/TF risk assessment mechanism for financial institutions/banks, as well as additional
scenarios in the correspondent banking transaction monitoring system.
●
Developing scorecards for financial institutions, and a monthly Power BI activity report for correspondent banking.
●
Offering continued support and monitoring the implementation of the AML e2e projects in Bulgaria and Cyprus.
●
Implementing further actions to increase the effectiveness of MiFID controls.
●
Participating in an advisory capacity in a bank-wide project for advisory products and services, and in bank-wide
projects relating to bancassurance business, deposit products and payment services.
●
Obtaining ISO surveillance (37002) on the management of the Whistleblowing System.
●
Obtaining ISO certification (37001) on the management of Anti-Bribery and Corruption System.
●
Further revising the Policy for Reporting Illegal or Unethical Conduct and appointing of a Report Receiving and
Monitoring Officer responsible for receiving and monitoring of reports received through the reporting channels for
illegal or unethical conduct.
●
Revising the Code of Conduct and Ethics
●
Developing a compliance control catalogue.
●
Continuing initiatives for developing data analytics capabilities within Group Compliance and granularity of the
Compliance Risk Appetite Framework.
●
Finalising the GC skillset mapping and identifying development initiatives vis-à-vis the GC Target Operating model.
●
Successfully completing digital learning programmes – such as specialist AML workshops by business line, and digital
learning on Code of Conduct and Ethics – and completing of establishment of a dedicated space within Eurobank’s
intranet as part of the awareness initiatives.
During 2024, the following actions set by Group Compliance were successfully completed:
●
Maintaining the percentage of at least 65% of the Group Compliance staff members holding certifications on issues
regarding money laundering and terrorist financing, compliance, operational risk and related topics.
●
Providing training on the Code of Conduct and Ethics and its complementary policies to at least 95% of Eurobank
employees and executives.
●
Conducting training sessions on consumer protection issues, payments and consumer credit, as part of Eurobank’s
consumer protection actions.
●
Updating the Code of Conduct and Ethics, the Conflicts of Interest Policy, the Group Antitrust Compliance Policy
and public statements (Anti-bribery Corruption and Policy, External Engagement Policy, Illegal or Unethical Conduct
Policy)
●
Providing training on antitrust issues to relevant personnel.
●
Providing training on Consumer Protection issues, aiming to raise awareness and cultivate a strong culture of values
within the Group.
●
Training Conflict of Interest to all staff.
●
Training Insider Dealing Guideline - Market Abuse to all staff.
Introducing Supplier Code of Conduct and Ethics inviting the Eurobank’s Suppliers to accept the content and terms of the
Code. Code of Conduct establishes clear principles and rules that must be followed to ensure that the Eurobank’s partnerships
are built upon fundamental values such as integrity, transparency, and responsibility.
Regarding 2025, Group Compliance intends to continue maintaining the percentage of at least 65% of the Group
Compliance staff members holding professional certifications on issues regarding money laundering and terrorist financing,
compliance, operational risk and related topics. Eurobank can measure this target by tracking the percentage of certified
staff on a regular basis. By achieving this target, Eurobank will enhance the team's expertise and improve the overall
compliance framework within the organisation. Progress will be assessed regularly, with a final evaluation at the end of 2025.
In addition, in order to track the effectiveness of policies and actions in relation to the Business Conduct material matter, the
following qualitative indicators are used:
●
Provide dedicated training courses to Eurobank’s staff on Compliance-related topics, and specific training on
consumer protection issues, through e-learning solutions.
●
Assess the impact of the New AML Package and design an action plan.
●
Implement a compliance risk assessment tool.
●
Have an external consultant independently assess the compliance Risk Assessment (CRA) Methodology.
●
Expand the CRA perimeter to cover areas outside GC mandate, such as prudential regulations, information security,
outsourcing and sustainability framework.
●
Develop dedicated methodologies for CFT and Sanctions Risk Assessments.
●
Update the existing AML Business Risk Assessment, to ensure alignment with developments and regulatory
expectations.
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●
Review end-to-end the Trade Finance Control Framework and create an action plan for further enhancing
Eurobank’s controls in Trade.
●
Use AML Analytics for achieving efficiencies (among other risk mitigation benefits) as well as infrastructure
improvements in AML/CFT operations.
●
Continue the ongoing monitoring of Russian sanctions.
●
Obtain ISO certification for AML Operations, Anti-Bribery and Corruption and Compliance Processes.
●
Implement the FATCA/CRS Action Plan.
●
Continue the implementation of further actions to increase the effectiveness of MiFID controls.
●
Provide advice and monitor Eurobank’s compliance with the regulatory framework.
●
Continue participating in an advisory capacity in bank-wide projects relating to bancassurance business, deposit
products and payment services.
●
Support Eurobank’s readiness initiatives for compliance with upcoming regulations, such as the Retail Investment
Strategy, Consumer and Mortgage Credit Directives, Payment Services Directive III.
●
Update public statements.
●
Completed a new digital learning programme addressed to all staff on conflicts of interest and a new digital learning
programme addressed to targeted staff on market abuse.
●
Review all compliance policies at least once per year as per AC guideline
The scope of the respective key actions taken and successfully achieved, as well as Eurobank ‘s targets, includes all the
activities across all regions that Eurobank operates, throughout the value chain.
Prevention and detection of corruption and bribery [G1-3]
The Group has implemented the following procedures aimed at preventing, detecting, and addressing any allegations or
incidents of corruption and bribery which are outlined in Anti-Bribery & Corruption Policy Statement. Group’s policies are
developed to be consistent with the United Nations Convention’s principles against corruption. Specifically, the Group:
●
Has zero tolerance to bribery and corruption.
●
Establishes and follows effective control procedures to prevent or identify bribery and corruption.
●
Ensures the implementation of a control program.
●
Evaluates suppliers in order to mitigate the risk of bribery and corruption. The Supplier Code of Conduct and Ethics
applies to all Eurobank suppliers and is a guide to clear principles and rules to be followed. (Supplier Code of Conduct
and Ethics) Includes anti-bribery terms are also included in contractual documents.
●
Provides efficient, confidential reporting mechanisms to staff and encourages their use by providing protection to
individuals who report in good faith. Staff are encouraged to report bribery attempts by third parties.
●
Establishes mechanisms for monitoring incidents of bribery.
●
Assists competent authorities in conducting investigations.
●
Adopts regular risk assessment mechanisms of the Group's structures and operations, which it oversees, reviews,
adapts and revises.
●
In the context of the ongoing risk assessment, a record of bribery complaints and/or incidents is maintained.
●
Records in a formal questionnaire the minimum requirements of Eurobank towards third parties regarding bribery
issues.
●
Provides ongoing training and briefing of staff on the prevention and identification of bribery and corruption
incidents.
●
On a regular basis, through training modules and internal communication, staff awareness is raised on emerging
risks when dealing with cases of bribery and corruption. Training is provided to all new staff.
●
The relevant policy is reviewed and revised every year by Group Compliance, unless legislative changes require
earlier revision.
Eurobank, both through this Policy and as defined in the Policy for Reporting Illegal or Unethical Conduct encourages the
reporting of bribery and corruption incidents by both staff and third parties. For this reason, it has established a mechanism
for submitting and monitoring anonymous reports and protects bona fide witnesses, as referenced above in [G1-1].
Eurobank has clear disciplinary procedures that are implemented timely and fairly for all staff members, irrespective of
hierarchy. Eurobank reserves the right to refer cases to the police, judicial and/or supervisory authority and to bring legal
action, either civil and/or criminal, against those involved in the case. It may also take disciplinary actions against staff,
including dismissal. When cooperating with third parties, natural or legal, a written acceptance is obtained of their obligation
to prevent and combat against bribery and corruption. If cases of corruption are identified, the cooperation is denounced.
The Group Compliance is responsible for handling such matters. Group Compliance is an independent function and reports
functionally to the Board of Directors through the Audit Committee and for administrative purposes to the CEO. Group
Compliance supervises the overall compliance function in the Group. Within this context, the Compliance Divisions/Units of
the Group in Greece and abroad have a direct reporting line to Group Compliance.
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Eurobank has established communication channels to effectively communicate relevant policies and make them easily
understandable for those to whom they apply. Policies affecting internal stakeholders are available to the Group's intranet,
while those refering to external stakeholders, such as the Group's Code of Conduct, are available through Eurobank's site.
These mainly include:
●
The Anti-Bribery and Corruption Policy and Anti-Bribery and Corruption Policy Statement, which applies to all
Eurobank staff, aims to prevent instances of bribery and corruption, and promote integrity within the business
environment.
●
Ongoing Training and Awareness to staff on preventing and identifying bribery and corruption incidents.
●
Systematic Evaluation of Suppliers, includes anti-bribery terms in contractual documents.
●
Corporate website, includes a corporate governance section that clarifies for all stakeholders the opportunity to
report a misconduct incident through mail or telephone.
●
Sustainability report, explains the mechanisms to report a misconduct incident.
4.1.3. Metrics & Targets
Incidents of corruption or bribery [G1-4]
The number of convictions stands at zero, and no fines have been imposed for violations of anti-corruption and anti-bribery
laws, as shown in the table below.
ESRS Quantitative data / metric
2024
Number of convictions for violation of anti-corruption and anti- bribery laws
0
The amount (€) of fines for violation of anti-corruption and anti-bribery laws.
0
Eurobank implemented a comprehensive anti-bribery and anti-corruption policy, delineating clear procedures and standards
as outlined by the Anti-bribery & Corruption Policy and the Anti-bribery & Corruption Policy Statement, as referenced above.
All reports are investigated, and appropriate disciplinary actions are taken. In response to any breaches of anti-corruption
and anti-bribery procedures, Eurobank has implemented a structured disciplinary process. Specifically, any established
violations of the provisions of the Policy may be reported to the competent Eurobank bodies and can even lead to
administrative or disciplinary action, including the staff member’s termination of employment. When breaches in anti-
corruption and anti-bribery standards are identified, the internal audit team undertakes a comprehensive review of the
circumstances. Also, Eurobank provides ongoing training and briefing to staff on preventing and identifying bribery and
corruption incidents. Through training modules and internal communication, staff awareness is raised on emerging risks when
dealing with cases of bribery and corruption.
One of Eurobank’s key initiatives regarding anti-bribery and corruption is obtaining ISO 37001 certification for Anti-bribery,
Corruption and Compliance processes. Achieving ISO certification demonstrates Eurobank’s commitment to rigorous
international standards in ethics and compliance and serves as a benchmark for its policies, ensuring they align with
recognised best practices for preventing, detecting, and responding to bribery and corruption risks.
As described above in [G1-1], Eurobank is committed to the maintaining high professional standards for its Group Compliance
staff though professional certifications and ongoing training, which among others covers aspects of anti-bribery, anti-
corruption, compliance, and related areas. Within 2024, there were no:
●
Confirmed incidents of bribery and corruption.
●
Confirmed incidents in which employees were dismissed or disciplined for corruption.
●
Confirmed incidents where contracts with business partners were terminated or not renewed due to violations
related to corruption.
●
Public legal cases regarding corruption brought against the organisation or its employees.
●
Monetary losses from business ethics violations as a result of legal proceedings associated with insider trading,
antitrust, anti-competitive behaviour, market manipulation or malpractice.
These metrics show that Eurobank successfully maintains zero incidents related to bribery, corruption, and business ethics
violations, thus contributing to maintaining a transparent corporate culture and demonstrating a stable commitment to
compliance. This target will continue to be upheld in 2025, with performance monitored and reviewed regularly through
Group Compliance. Regular review processes and monitoring ensure that the metrics remain on track. No significant changes
in metrics’ performance were noted in 2024, indicating a consistent trend that Eurobank is well-positioned to maintain this
target level in 2025.
Eurobank actively tracks the effectiveness of its anti-bribery, anti-corruption, and compliance policies and actions to assess
and mitigate material sustainability-related impacts, risks, and opportunities. This is conducted through the independent
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function of Group Compliance which tracks incidents for any breaches or compliance issues and collects data on training
participation rates, certification renewals, and the rate of compliance -related issues identified and resolved.
In the reporting year, Eurobank undertook several key actions to strengthen its anti-bribery and anti-corruption efforts. This
included enhancing compliance training programs for all staff, evaluating suppliers in order to mitigate the risk of bribery
and corruption, including anti-bribery terms in contractual documents, reviewing and revising the Anti-bribery & Corruption
Policy and encouraging the reporting of bribery and corruption incidents by both staff and third parties through various
channels. These actions will be maintained for 2025. These initiatives are expected to reinforce a culture of integrity, directly
contributing to Eurobank’s policy objectives of minimising corruption risks and promoting transparency, throughout the value
chain and across all regions where Eurobank operates.
4.2
Data security and customer privacy [Entity-specific]
4.2.1. Governance
The role of the administrative, management and supervisory bodies [ESRS 2 GOV -1]
Eurobank has embedded cybersecurity and data privacy within its core strategy and business model. Eurobank has adopted
the 3 lines model to ensure that risks and controls are properly managed on an ongoing basis. In the 2nd line, a Chief
Information Security Officer (CISO) has been appointed, who heads Group Corporate Security and reports directly to a
Deputy Chief Executive Officer who sits on Eurobank’s Board of Directors (Board) and Executive Board (ExBo). The CISO also
regularly updates the ExBo, the Board Risk Committee, and the Board to provide objective assurance on the effectiveness of
Eurobank’s cybersecurity controls.
The Data Protection Officer (DPO) heads Eurobank’s Personal Data Protection Unit, acting and reporting independently to
the Deputy CEO and keeping the Executive Board and Board Risk Committee informed of key GDPR compliance issues. This
senior leadership structure reinforces the importance of data protection across the organisation.
Data Protection Officer provides among others, advice on digital transformation projects and new services, following a
"privacy by design" approach. Eurobank also conducts regular data privacy impact assessments, and ongoing training to
keep employees info rmed about privacy requirements.
4.2.2 Strategy
Description of material impacts, risks and opportunities and their interaction with strategy and business model [SBM-3]
Cybersecurity risks continue to impact the financial industry around the world, as the number and complexity of cyberattacks
have increased significantly. Cyberattacks, digital fraud, compromised customer data, and personal data breaches are part
of today’s everyday reality, especially in the financial/banking sector, due to the evolution of new technologies, the increasing
use of digital channels for financial transactions, and the increased sophistication of cyber criminals. Eurobank, its customers,
and its third-party service providers cannot be an exception to that.
As a result of the increasing number and complexity of cyber threats and as a result of the IROs mentioned below, data
security and customer privacy are critical areas for Eurobank’s strategy and business model. The financial sector, particularly
banks, faces cybersecurity risks such as “cyberattacks, digital fraud, compromised customer data, and personal data
breaches,” all of which are now daily realities due to“the evolution of new technologies, the increasing use of digital channels
for financial transactions, and the increased sophistication of cyber criminals.” These risks emphasise the importance of
securing customer trust through robust cybersecurity measures and privacy safeguards.
Cybersecurity is a top priority, with Eurobank implementing a “multi-faceted defense approach” guided by a Predict, Prevent,
Detect, and Respond framework. Regarding the customer privacy, Eurobank places high importance on personal data
protection, not only to meet regulatory requirements but as a cornerstone of good corporate governance and trust-building
with clients and partners.
Through integrated efforts in cybersecurity and data protection, Eurobank’s strategy and business model uphold data
protection and customer privacy as a priority, support regulatory compliance, and reinforce resilience against growing digital
threats, ultimately enhancing customer confidence and trust in its digital services. Furthermore, Eurobank allocates adequate
current and future financial resources towards enhancing its cybersecurity strategy, ensuring the protection of customer data
and compliance with evolving regulatory requirements.
4.2.3. Impact, risk and opportunity management
Description of processes to identify and assess material impacts, risks and opportunities [ESRS 2 IRO-1]
Through the DMA Eurobank has identified the following material impacts and risks:
Data security and customer privacy
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Impact
Positive
Actual
Implementation of internal management systems and initiatives that protect
stakeholders’ data privacy.
Negative
Potential
Improper implementation of established cybersecurity systems and processes
results in incidents of data breach and leaks of personal data.
Risk
Growing cybersecurity threats and cyber-attacks targeting financial institutions,
and their customer data may compromise Eurobank's systems, networks and
sensitive information, leading to operational disruptions and reputational harm
The process of assessing data security and customer privacy applies across all regions where Eurobank operates.
Policies related to data security and customer privacy [MDR-P]
Eurobank has implemented comprehensive policies to manage material sustainability matters concerning data security and
customer privacy, with a particular focus on compliance with the General Data Protection Regulation (GDPR). The Personal
Data Protection Policy outlines key contents that include the procedures for handling personal data, ensuring data subject
rights, and establishing clear protocols for data breaches.
The protection of personal data is an important priority for Eurobank, not only because of its statutory obligation, but also
because it recognises it as a key element of good corporate governance and responsibility, as well as a key part in building
relationships of trust with its clients and partners.
In this context, it continuously ensures that the necessary actions are taken for complying with Regulation (EU) 2016/679, Law
4624/2019 and other provisions of the relevant Greek and EU legislation on personal data. As part of its GDPR and personal
data protection obligations, Eurobank takes appropriate measures to provide information to data subjects (e.g. customers)
relating to the processing of their personal data in a concise, transparent, intelligible and easily accessible form, using clear
and plain language.
Its main privacy notice, available both online and in branches, outlines details such as data types
collected, purposes for collection, recipients, data retention periods, and data subject rights. Eurobank’s main privacy notice
(Information on the Processing of Personal Data of Eurobank pursuant to Regulation (EU) 2016/679 and the relevant EU and
Greek legislation) is available online and in hard copy through its branches. This privacy notice includes information on the:
i.
Type of personal data the Bank collects and from which sources
ii.
Reason why the Bank collects data and for which purpose
iii.
iv.
Whether the Bank is entitled to transfer the data subjects’ data to third countries (outside the EEA)
v.
Length of time the Bank shall maintain the data subjects’ personal data
vi.
Data subjects’ rights are with regard to the protection of their personal data
vii.
Way the data subjects can exercise their rights
viii.
Data Protection Officer
ix.
Way the Bank protects the data subjects’ personal data.
The scope of this policy covers all operations involving personal data processing within Eurobank, including digital products
and services, while ensuring that third -party processors and joint controllers are also adhere to these standards. Eurobank’s
privacy policies are regularly updated in line with legislative developments occur and are integrated into various customer-
facing documents to ensure transparency.
Eurobank respects various third-party standards and initiatives, including internationally recognised frameworks such as ISO
27001, and ISO 27701. In developing these policies, Eurobank has taken into consideration the interests of key stakeholders,
including customers, employees, and regulatory bodies. This stakeholder engagement ensures that the policies are reflective
of broader societal expectations and regulatory requirements.
Actions related to data security and customer privacy [MDR-A]
Throughout 2024, Eurobank continued to proactively invest in up-to-date, efficient and cost-effective security technologies
and controls to address the ever-growing threats and the evolving regulatory requirements, to minimise disruptions, and to
keep systems and data protected from unauthorised or unlawful processing and against accidental loss, destruction or
damage. This proactive approach stance aligns with the Group’s customer-centered strategy approach, ensuring secure
digital transactions while building long-term customer trust through transparency and robust data protection. During 2024
Eurobank:
●
Continued to ensure its compliance with the evolving regulatory and legal requirements.
●
Continued to strengthen its cybersecurity capabilities for new digital products/ services, teleworking and cloud
technology adoption, as well as to address the ever-growing threats (i.e. Ransomware) and maintain compliance
with evolving regulatory requirements. Continued to be certified and operate based on the internationally
recognised ISO 27001, ISO 22301 and ISO 20000 standards. The scope of the ISO 27001 certification covers the
processing of personal data and has been extended to also cover Eurobank’s cloud computing operations.
Additionally, Eurobank has achieved the ISO 27701 certification for its Privacy Information Management System
(PIMS), further emphasising its commitment to the secure management of personal data and full compliance with
data protection regulations, including the General Data Protection Regulation (GDPR).
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●
Continuously educated employees and customers on emerging cyber threats and online fraud scams, with various
methods.
●
Regularly performed risk assessments, penetration tests and vulnerability assessments, and timely addressed global
0-day cybersecurity vulnerabilities on critical infrastructure.
●
Evaluated the cybersecurity posture of outsourcers for IT services.
●
Applied multi-tiered Endpoint Protection Detection Response protection, filtered emails and web content, DDoS
protection and SIEM services to detect suspicious activities.
●
Continuously enhanced its threat intelligence capabilities through use of state-of-the-art technologies/ services, and
collaboration with peers from other Banks, as well as the Hellenic Police and the National Cyber Defence Agency.
The scope of these actions includes comprehensive employee and customer training on emerging cyber threats and online
fraud schemes. The timeline for completing these actions is ongoing, reflecting Eurobank's commitment to adapting to the
evolving cybersec urity landscape.
4.2.4 Metrics & Targets
Data security and customer privacy metrics [MDR-M]
The primary metrics used to evaluate performance and effectiveness in relation to the security of transactions, information,
and personal data, as well as the resilience of its Information and Communication Technology (ICT) systems against the ever-
increasing and constantly changing cyber threats include:
●
the management of cybersecurity attacks
●
the occurrence of data breaches involving personally identifiable information (PII),
●
and business disruptions.
During 2024 the Group successfully managed all cybersecurity attacks, and as such there were:
●
No data breaches involving personally identifiable information (PII).
●
No business disruptions.
●
No monetary losses.
●
No cybersecurity incidents that needed to be reported to Authorities.
●
No account holders affected
This effective management demonstrates Eurobank’s commitment to maintaining robust cybersecurity protocols and its
ability to mitigate risks effectively. In addition, 578 customer/data subject access requests were handled within the deadlines
set out in the GDPR.
To support these evaluations, Eurobank has adopted a comprehensive methodology that includes regular risk assessments,
penetration tests, and vulnerability assessments. Throughout 2024, Eurobank regularly performed these assessments to
ensure that all potential vulnerabilities were identified and addressed promptly. This methodology is based on the
assumption that the sophistication of cyber threats is continually evolving, requiring an adaptive and proactive approach to
cybersecurity management. Additionally, we focus on emerging threats, such as ransomware, ensuring that Eurobank’s
metrics reflect the changing landscape of cyber risks.
Validation of Eurobank’s metrics is conducted through various external bodies other than Eurobank’s assurance providers.
Eurobank collaborates with industry experts and regulatory authorities to validate its cybersecurity performance metrics and
methodologies. The involvement of external entities ensures that Eurobank’s metrics are credible and aligned with industry
standards. This collaboration further enhances cybersecurity posture and allows us to remain compliant with evolving
regulatory requirements, ensuring that Eurobank’s performance metrics are both reliable and effective in measuring its
success in cybersecurity.
Data security and customer privacy targets [MDR-T]
For 2024, Eurobank set a target to maintain zero data breaches involving personally identifiable information (PII) and no
business disruptions, which aligns with its objective of ensuring customer trust and regulatory compliance.
The scope of these targets encompasses all cybersecurity incidents and personal data processing within Eurobank, as well
as those involving third-party service providers. The target is maintained an ongoing basis, aiming to continuously maintain
this performance through ongoing assessments to ensure relevance in the face of evolving cyber threats
Eurobank also sets milestones such as periodic risk assessments, employee training sessions, and incident response drills to
ensure that the targets are met throughout the year.
Key methodologies and approaches to measure progress against targets include penetration tests vulnerability assessments
and incident monitoring mechanisms. Eurobank ensures that its cybersecurity targets are informed by market best practice
and regulatory requirements.
Stakeholders are involved in target setting through regular communication and training sessions while their input is sought
to align targets with customer expectations and regulatory compliance. Throughout 2024, Eurobank has not made any
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significant changes to its targets; however, the Group remains alert to the evolving circumstances in cybersecurity and
regulatory environments.
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APPENDIX - Disclosures under Article 8 of Regulation (EU) 2020/852
Reporting templates for the years ended 31 December 2024 and 31 December 2023
0. Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation for the year ended 31 December 2024
Total environmentally sustainable
assets
⁽
¹
⁾
KPI
⁽
³
⁾
KPI
⁽⁴⁾
% coverage (over total
assets)
⁽⁵⁾
% of assets excluded from the numerator
of the GAR (Article 7(2) and (3) and
Section 1.1.2. of Annex V)
% of assets excluded from the
denominator of the GAR
(Article 7(1) and Section 1.2.4
of Annex V)
Main KPI
Green asset ratio (GAR) stock
1,908
2.6
3.7
70.9
42.2
29.1
Total environmentally sustainable
activities
⁽
²
⁾
KPI
⁽
³
⁾
KPI
⁽⁴⁾
% coverage (over total
assets)
⁽⁵⁾
% of assets excluded from the numerator
of the GAR (Article 7(2) and (3) and
Section 1.1.2. of Annex V)
% of assets excluded from the
denominator of the GAR
(Article 7(1) and Section 1.2.4
of Annex V)
Additional KPIs
GAR (flow)
589
3.7
6.5
31.4
N/A
N/A
Trading book
⁽⁶⁾
Financial guarantees
⁽⁷⁾
115
4.7
15.7
Assets under management
⁽⁷⁾
79
1.1
2.9
Fees and commissions income
⁽⁶⁾
(1) Total environmentally sustainable assets used for turnover KPI. Total environmentally sustainable assets used for Capex KPI amounts to EUR 2,658 million
(2) Total environmentally sustainable assets used for turnover KPI. Total environmentally sustainable assets used for Capex KPI amounts to EUR 1,020 million for GAR flow
(3) Based on the Turnover KPI of the counterparty
(4) Based on the CapEx KPI of the counterparty
(5) % of assets covered by the KPI over Group’s total assets
(6) "Trading book" and "fees and commissions income" KPIs shall apply from FY2025 onwards
(7) Total environmentally sustainable assets used for turnover KPI. Total environmentally sustainable assets used for Financial guarantees - Capex KPI amounts to EUR 386 million and for assets
under management is EUR 209 million.
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1.Assets for the calculation of GAR - Turnover
a
b
c
d
e
f
g
h
i
j
Million EUR
Total [gross]
carrying
amount
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
GAR- Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments
no HfT eligible for GAR calculation
28,809
17,150
1,905
1,409
15
140
123
3
0
2
2
Financial undertakings
4,332
1,095
127
0
9
17
18
0
0
0
3
Credit institutions
3,980
1,049
113
0
9
15
12
0
0
0
4
Loans and advances
958
230
38
0
1
1
1
0
0
0
5
Debt securities, including UoP
3,020
819
75
0
8
14
11
0
0
0
6
Equity instruments
2
0
0
0
0
0
0
0
7
Other financial corporations
352
46
14
0
0
2
6
0
0
0
8
0
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
0
13
0
0
0
0
0
0
0
0
0
0
14
0
0
0
0
0
0
0
0
0
0
15
0
0
0
0
0
0
0
0
16
of which insurance undertakings
5
2
0
0
0
0
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
5
2
0
0
0
0
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
0
20
Non-financial undertakings
6,138
2,282
1,752
1,383
6
123
105
3
0
2
21
5,416
2,084
1,679
1,383
2
84
82
2
0
2
22
705
194
71
0
4
40
22
0
0
0
23
17
3
1
0
0
1
0
0
24
Households
18,338
13,773
26
26
0
0
0
0
0
0
25
of which loans collateralised by residential immovable
property
12,316
12,316
22
22
0
0
0
0
0
0
26
of which building renovation loans
2,115
2,115
0
0
0
0
0
0
0
0
27
of which motor vehicle loans
546
546
4
4
0
0
28
Local governments financing
0
0
0
0
0
0
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
0
30
Other local govemment financing
0
0
0
0
0
0
0
0
0
0
31
Collateral obtained by taking possession: residential and
commercial immovable properties
697
520
0
0
0
0
0
0
0
0
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
43,257
33
Financial and Non-financial undertakings
33,496
34
SMEs and NFCs (other than SMEs) not subject to NFRD
disclosure obligations
26,005
35
23,806
36
of which loans collateralised by commercial immovable
property
7,140
37
of which building renovation loans
33
38
1,977
39
222
40
Non-EU country counterparties not subject to NFRD disclosure
obligations
7,491
41
4,641
42
2,761
43
88
44
Derivatives
836
45
On demand interbank loans
251
46
Cash and cash-related assets
617
47
Other categories of assets (e.g. goodwill, commodities etc.)
8,057
48
Total GAR assets
72,762
17,670
1,905
1,409
15
140
123
3
0
2
49
Assets not covered for GAR calculation
29,805
50
Central governments and Supranational issuers
14,257
51
Central banks exposure
15,263
52
Trading book
285
53
Total assets
102,567
17,670
1,905
1,409
15
140
123
3
0
2
Off-balance sheet exposures-Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
948
295
113
0
0
10
52
1
0
1
55
Assets under management
2,374
559
77
0
6
21
34
2
0
0
56
Of which debt securities
1,529
364
52
0
4
13
23
1
0
0
57
Of which equity instruments
345
81
18
0
1
8
11
1
0
0
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1.Assets for the calculation of GAR - Turnover
k
l
m
n
o
p
q
r
s
t
u
v
Million EUR
31 December 2024
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
GAR- Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments
no HfT eligible for GAR calculation
0
0
0
0
14
0
0
0
9
0
0
0
2
Financial undertakings
0
0
0
0
0
0
0
0
0
0
0
0
3
Credit institutions
0
0
0
0
0
0
0
0
0
0
0
0
4
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
5
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
6
Equity instruments
0
0
0
0
0
0
0
0
0
7
Other financial corporations
0
0
0
0
0
0
0
0
0
0
0
0
8
0
0
0
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
0
0
0
13
0
0
0
0
0
0
0
0
0
0
0
0
14
0
0
0
0
0
0
0
0
0
0
0
0
15
0
0
0
0
0
0
0
0
0
16
of which insurance undertakings
0
0
0
0
0
0
0
0
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
0
0
20
Non-financial undertakings
0
0
0
0
14
0
0
0
9
0
0
0
21
0
0
0
0
10
0
0
0
1
0
0
0
22
0
0
0
0
3
0
0
0
8
0
0
0
23
0
0
0
0
0
0
0
0
0
24
Households
0
0
0
0
25
of which loans collateralised by residential immovable
property
0
0
0
0
26
of which building renovation loans
0
0
0
0
27
of which motor vehicle loans
28
Local governments financing
0
0
0
0
0
0
0
0
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
0
0
0
30
Other local govemment financing
0
0
0
0
0
0
0
0
0
0
0
0
31
Collateral obtained by taking possession: residential and
commercial immovable properties
0
0
0
0
0
0
0
0
0
0
0
0
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
33
Financial and Non-financial undertakings
34
SMEs and NFCs (other than SMEs) not subject to NFRD
disclosure obligations
35
36
of which loans collateralised by commercial immovable
property
37
of which building renovation loans
38
39
40
Non-EU country counterparties not subject to NFRD disclosure
obligations
41
42
43
44
Derivatives
45
On demand interbank loans
46
Cash and cash-related assets
47
Other categories of assets (e.g. goodwill, commodities etc.)
48
Total GAR assets
0
0
0
0
14
0
0
0
9
0
0
0
49
Assets not covered for GAR calculation
50
Central governments and Supranational issuers
51
Central banks exposure
52
Trading book
53
Total assets
0
0
0
0
14
0
0
0
9
0
0
0
Off-balance sheet exposures-Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
0
0
0
0
3
0
0
0
0
0
0
0
55
Assets under management
0
0
0
0
3
0
0
0
9
0
0
0
56
Of which debt securities
0
0
0
0
0
0
0
0
2
0
0
0
57
Of which equity instruments
0
0
0
0
3
0
0
0
8
0
0
0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
119
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Page
1.Assets for the calculation of GAR - Turnover
w
x
z
aa
ab
ac
ad
ae
af
Million EUR
31 December 2024
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-
aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR- Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments
no HfT eligible for GAR calculation
40
0
0
0
17,348
1,908
1,409
15
141
2
Financial undertakings
0
0
0
0
1,125
128
0
9
16
3
Credit institutions
0
0
0
0
1,074
114
0
9
15
4
Loans and advances
0
0
0
0
235
38
0
1
1
5
Debt securities, including UoP
0
0
0
0
839
76
0
8
14
6
Equity instruments
0
0
0
0
0
0
0
7
Other financial corporations
0
0
0
0
52
14
0
0
1
8
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
13
0
0
0
0
0
0
0
0
0
14
0
0
0
0
0
0
0
0
0
15
0
0
0
0
0
0
0
16
of which insurance undertakings
0
0
0
0
2
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
0
0
0
0
2
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
20
Non-financial undertakings
40
0
0
0
2,450
1,754
1,383
6
125
21
40
0
0
0
2,217
1,681
1,383
2
86
22
0
0
0
0
228
72
0
4
40
23
0
0
0
4
1
0
0
24
Households
13,773
26
26
0
0
25
of which loans collateralised by residential immovable
property
12,316
22
22
0
0
26
of which building renovation loans
2,115
0
0
0
0
27
of which motor vehicle loans
546
4
4
0
0
28
Local governments financing
0
0
0
0
0
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
30
Other local govemment financing
0
0
0
0
0
0
0
0
0
31
Collateral obtained by taking possession: residential and
commercial immovable properties
0
0
0
0
520
0
0
0
0
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
33
Financial and Non-financial undertakings
34
SMEs and NFCs (other than SMEs) not subject to NFRD
disclosure obligations
35
36
of which loans collateralised by commercial immovable
property
37
of which building renovation loans
38
39
40
Non-EU country counterparties not subject to NFRD disclosure
obligations
41
42
43
44
Derivatives
45
On demand interbank loans
46
Cash and cash-related assets
47
Other categories of assets (e.g. goodwill, commodities etc.)
48
Total GAR assets
40
0
0
0
17,868
1,908
1,409
15
141
49
Assets not covered for GAR calculation
50
Central governments and Supranational issuers
51
Central banks exposure
52
Trading book
53
Total assets
40
0
0
0
17,868
1,908
1,409
15
141
Off-balance sheet exposures-Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
0
0
0
0
350
115
0
0
12
55
Assets under management
0
0
0
0
606
79
0
6
22
56
Of which debt securities
0
0
0
0
389
53
0
4
13
57
Of which equity instruments
0
0
0
0
103
18
0
1
8
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
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|
Page
1.Assets for the calculation of GAR - Capex
a
b
c
d
e
f
g
h
i
j
Million EUR
Total [gross]
carrying
amount
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
GAR- Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments
no HfT eligible for GAR calculation
28,809
18,752
2,653
1,409
55
394
61
5
0
2
2
Financial undertakings
4,332
1,244
194
0
10
31
14
1
0
0
3
Credit institutions
3,980
1,017
141
0
9
25
14
1
0
0
4
Loans and advances
958
191
38
0
1
1
1
0
0
0
5
Debt securities, including UoP
3,020
826
103
0
8
23
13
1
0
0
6
Equity instruments
2
0
0
0
0
0
0
0
7
Other financial corporations
352
226
53
0
1
6
0
0
0
0
8
0
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
0
13
0
0
0
0
0
0
0
0
0
0
14
0
0
0
0
0
0
0
0
0
0
15
0
0
0
0
0
0
0
0
16
of which insurance undertakings
5
2
0
0
0
0
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
5
2
0
0
0
0
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
0
20
Non-financial undertakings
6,138
3,736
2,432
1,383
45
363
46
4
0
2
21
5,416
3,292
2,231
1,383
19
288
37
4
0
2
22
705
438
197
0
27
74
8
0
0
0
23
17
6
4
0
0
1
0
0
24
Households
18,338
13,773
26
26
0
0
0
0
0
0
25
of which loans collateralised by residential immovable
property
12,316
12,316
22
22
0
0
0
0
0
0
26
of which building renovation loans
2,115
2,115
0
0
0
0
0
0
0
0
27
of which motor vehicle loans
546
546
4
4
0
0
28
Local governments financing
0
0
0
0
0
0
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
0
30
Other local govemment financing
0
0
0
0
0
0
0
0
0
0
31
Collateral obtained by taking possession: residential and
commercial immovable properties
697
520
0
0
0
0
0
0
0
0
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
43,257
0
0
0
0
0
0
0
0
0
33
Financial and Non-financial undertakings
33,496
0
34
SMEs and NFCs (other than SMEs) not subject to NFRD
disclosure obligations
26,005
35
23,806
36
of which loans collateralised by commercial immovable
property
7,140
37
of which building renovation loans
33
38
1,977
39
222
40
Non-EU country counterparties not subject to NFRD disclosure
obligations
7,491
41
4,641
42
2,761
43
88
44
Derivatives
836
45
On demand interbank loans
251
46
Cash and cash-related assets
617
47
Other categories of assets (e.g. goodwill, commodities etc.)
8,057
48
Total GAR assets
72,762
19,272
2,653
1,409
55
394
61
5
0
2
49
Assets not covered for GAR calculation
29,805
0
50
Central governments and Supranational issuers
14,257
51
Central banks exposure
15,263
52
Trading book
285
53
Total assets
102,567
19,272
2,653
1,409
55
394
61
5
0
2
Off-balance sheet exposures-Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
948
609
385
0
2
37
22
1
0
37
55
Assets under management
2,374
802
206
0
19
52
17
2
0
1
56
Of which debt securities
1,529
551
137
0
11
34
9
2
0
1
57
Of which equity instruments
345
131
57
0
7
17
6
0
0
0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
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Page
1.Assets for the calculation of GAR - Capex
k
l
m
n
o
p
q
r
s
t
u
v
Million EUR
31 December 2024
Water and marine resources (WTR)
Circular economy (CE)
Pollution (PPC)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
GAR- Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments
no HfT eligible for GAR calculation
0
0
0
0
7
0
0
0
17
0
0
0
2
Financial undertakings
0
0
0
0
0
0
0
0
0
0
0
0
3
Credit institutions
0
0
0
0
0
0
0
0
0
0
0
0
4
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
5
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
6
Equity instruments
0
0
0
0
0
0
0
0
0
7
Other financial corporations
0
0
0
0
0
0
0
0
0
0
0
0
8
0
0
0
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
0
0
0
13
0
0
0
0
0
0
0
0
0
0
0
0
14
0
0
0
0
0
0
0
0
0
0
0
0
15
0
0
0
0
0
0
0
0
0
16
of which insurance undertakings
0
0
0
0
0
0
0
0
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
0
0
20
Non-financial undertakings
0
0
0
0
7
0
0
0
17
0
0
0
21
0
0
0
0
4
0
0
0
12
0
0
0
22
0
0
0
0
3
0
0
0
5
0
0
0
23
0
0
0
0
0
0
0
0
0
24
Households
0
0
0
0
25
of which loans collateralised by residential immovable
property
0
0
0
0
26
of which building renovation loans
0
0
0
0
27
of which motor vehicle loans
28
Local governments financing
0
0
0
0
0
0
0
0
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
0
0
0
30
Other local govemment financing
0
0
0
0
0
0
0
0
0
0
0
0
31
Collateral obtained by taking possession: residential and
commercial immovable properties
0
0
0
0
0
0
0
0
0
0
0
0
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
0
0
0
0
0
0
0
0
0
0
0
0
33
Financial and Non-financial undertakings
34
SMEs and NFCs (other than SMEs) not subject to NFRD
disclosure obligations
35
36
of which loans collateralised by commercial immovable
property
37
of which building renovation loans
38
39
40
Non-EU country counterparties not subject to NFRD disclosure
obligations
41
42
43
44
Derivatives
45
On demand interbank loans
46
Cash and cash-related assets
47
Other categories of assets (e.g. goodwill, commodities etc.)
48
Total GAR assets
0
0
0
0
7
0
0
0
17
0
0
0
49
Assets not covered for GAR calculation
50
Central governments and Supranational issuers
51
Central banks exposure
52
Trading book
53
Total assets
0
0
0
0
7
0
0
0
17
0
0
0
Off-balance sheet exposures-Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
0
0
0
0
3
0
0
0
0
0
0
0
55
Assets under management
0
0
0
0
3
0
0
0
4
0
0
0
56
Of which debt securities
0
0
0
0
1
0
0
0
1
0
0
0
57
Of which equity instruments
0
0
0
0
2
0
0
0
3
0
0
0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
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1.Assets for the calculation of GAR - Capex
w
x
z
aa
ab
ac
ad
ae
af
Million EUR
31 December 2024
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-
aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR- Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments
no HfT eligible for GAR calculation
40
0
0
0
18,888
2,658
1,409
55
395
2
Financial undertakings
0
0
0
0
1,269
195
0
9
30
3
Credit institutions
0
0
0
0
1,042
142
0
9
25
4
Loans and advances
0
0
0
0
195
38
0
1
1
5
Debt securities, including UoP
0
0
0
0
847
104
0
8
23
6
Equity instruments
0
0
0
0
0
0
0
7
Other financial corporations
0
0
0
0
226
53
0
0
5
8
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
13
0
0
0
0
0
0
0
0
0
14
0
0
0
0
0
0
0
0
0
15
0
0
0
0
0
0
0
16
of which insurance undertakings
0
0
0
0
2
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
0
0
0
0
2
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
20
Non-financial undertakings
40
0
0
0
3,846
2,436
1,383
45
365
21
40
0
0
0
3,385
2,235
1,383
19
290
22
0
0
0
0
454
197
0
27
74
23
0
0
0
7
4
0
0
24
Households
13,773
26
26
0
0
25
of which loans collateralised by residential immovable
property
12,316
22
22
0
0
26
of which building renovation loans
2,115
0
0
0
0
27
of which motor vehicle loans
546
4
4
0
0
28
Local governments financing
0
0
0
0
0
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
30
Other local govemment financing
0
0
0
0
0
0
0
0
0
31
Collateral obtained by taking possession: residential and
commercial immovable properties
0
0
0
0
520
0
0
0
0
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
0
0
0
0
0
0
0
0
0
33
Financial and Non-financial undertakings
34
SMEs and NFCs (other than SMEs) not subject to NFRD
disclosure obligations
35
36
of which loans collateralised by commercial immovable
property
37
of which building renovation loans
38
39
40
Non-EU country counterparties not subject to NFRD disclosure
obligations
41
42
43
44
Derivatives
45
On demand interbank loans
46
Cash and cash-related assets
47
Other categories of assets (e.g. goodwill, commodities etc.)
48
Total GAR assets
40
0
0
0
19,408
2,658
1,409
55
395
49
Assets not covered for GAR calculation
50
Central governments and Supranational issuers
51
Central banks exposure
52
Trading book
53
Total assets
40
0
0
0
19,408
2,658
1,409
55
395
Off-balance sheet exposures-Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
0
0
0
0
634
386
0
2
75
55
Assets under management
0
0
0
0
832
209
0
19
54
56
Of which debt securities
0
0
0
0
566
139
0
11
35
57
Of which equity instruments
0
0
0
0
143
58
0
7
18
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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2. GAR sector information - Turnover
31 December 2024
Breakdown by sector - NACE 4 digits level (code and label)
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject to
NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject to
NFRD
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which
environmentally
sustainable (CCM)
Mn EUR
Of which
environmentally
sustainable (CCM)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
1
B7 - Mining of metal ores
16
-
16
-
2
C10.6.1 - Manufacture of grain mill products
0
0
0
-
3
C11 - Manufacture of beverages
5
-
5
-
4
C13.9.5 - Manufacture of non-wovens and articles made from non-wovens, except apparel
1
1
1
-
5
C14.1.3 - Manufacture of other outerwear
0
-
0
-
6
C15 - Manufacture of leather and related products
2
-
2
-
7
C17 - Manufacture of paper and paper products
4
0
4
-
8
C18.1.0 - Printing and service activities related to printing
0
-
0
-
9
C19 - Manufacture of coke and refined petroleum products
85
1
85
-
10
C19.2.0 - Manufacture of refined petroleum products
767
10
767
-
11
C20.1.1 - Manufacture of industrial gases
0
-
0
-
12
C20.4.2 - Manufacture of perfumes and toilet preparations
30
-
30
-
13
C20.5.9 - Manufacture of other chemical products n.e.c.
4
4
4
-
14
C21 - Manufacture of basic pharmaceutical products and pharmaceutical preparations
22
-
22
-
15
C21.2.0 - Manufacture of pharmaceutical preparations
25
-
25
-
16
C22.2.1 - Manufacture of plastic plates, sheets, tubes and profiles
12
0
12
-
17
C22.2.2 - Manufacture of plastic packing goods
10
-
10
2
18
C23 - Manufacture of other non-metallic mineral products
87
4
87
-
19
C24 - Manufacture of basic metals
10
-
10
-
20
C24.1.0 - Manufacture of basic iron and steel and of ferro -alloys
85
8
85
-
21
C24.2 - Manufacture of tubes, pipes, hollow profiles and related fittings, of steel
8
2
8
-
22
C24.4.2 - Aluminium production
52
3
52
-
23
C24.4.4 - Copper production
61
1
61
-
24
C24.5.1 - Casting of iron
58
4
58
-
25
C27.3.2 - Manufacture of other electronic and electric wires and cables
196
50
196
-
26
C27.5.1 - Manufacture of electric domestic appliances
1
1
1
-
27
C28.9 - Manufacture of other special-purpose machinery
18
-
18
-
28
C29 - Manufacture of motor vehicles, trailers and semi-trailers
53
4
53
-
29
C29.3.2 - Manufacture of other parts and accessories for motor vehicles
0
0
0
-
30
C33.1.1 - Repair of fabricated metal products
9
9
9
-
31
C33.1.2 - Repair of machinery
0
0
0
-
32
D35 - Electricity, gas, steam and air conditioning supply
297
48
297
0
33
D35.1.1 - Production of electricity
1,403
1,297
1,403
-
34
D35.1.3 - Distribution of electricity
355
-
355
-
35
D35.1.4 - Trade of electricity
341
-
341
-
36
E38.3.2 - Recovery of sorted materials
2
0
2
-
37
F41.2.0 - Construction of residential and non-residential buildings
1
-
1
-
38
F42 - Civil engineering
42
5
42
0
39
F42.2.2 - Construction of utility projects for electricity and telecommunications
198
198
198
-
40
F42.9.9 - Construction of other civil engineering projects n.e.c.
19
4
19
-
41
F43.2.9 - Other construction installation
21
-
21
-
42
F43.9.9 - Other specialised construction activities n.e.c.
5
-
5
-
43
G45 - Wholesale and retail trade and repair of motor vehicles and motorcycles
3
0
3
0
44
G45.1.1 - Sale of cars and light motor vehicles
1
0
1
0
45
G45.1.9 - Sale of other motor vehicles
2
0
2
-
46
G45.3.0 - Sale of motor vehicle parts and accessories
4
0
4
0
47
G46 - Wholesale trade, except of motor vehicles and motorcycles
1
-
1
-
48
G46.3.6 - Wholesale of sugar and chocolate and sugar confectionery
4
-
4
-
49
G46.4.2 - Wholesale of clothing and footwear
7
-
7
-
50
G46.4.6 - Wholesale of pharmaceutical goods
23
-
23
-
51
G46.4.7 - Wholesale of furniture, carpets and lighting equipment
8
-
8
-
52
G46.5.1 - Wholesale of computers, computer peripheral equipment and software
7
0
7
0
53
G46.5.2 - Wholesale of electronic and telecommunications equipment and parts
11
-
11
-
54
G46.7 - Other specialised wholesale
1
-
1
-
55
G46.7.1 - Wholesale of solid, liquid and gaseous fuels and related products
319
36
319
-
56
G46.7.2 - Wholesale of metals and metal ores
13
1
13
-
57
G46.7.7 - Wholesale of waste and scrap
6
0
6
-
58
G47 - Retail trade, except of motor vehicles and motorcycles
0
-
0
-
59
G47.1.9 - Other retail sale in non-specialised stores
28
5
28
-
60
G47.7.1 - Retail sale of clothing in specialised stores
12
0
12
0
61
G47.7.8 - Other retail sale of new goods in specialised stores
1
-
1
-
62
H49 - Land transport and transport via pipelines
8
7
8
-
63
H50.1.0 - Sea and coastal passenger water transport
0
-
0
-
64
H51 - Air transport
25
-
25
-
65
H52.1 - Warehousing and storage
1
-
1
-
66
H52.2.1 - Service activities incidental to land transportation
21
1
21
0
67
H52.2.3 - Service activities incidental to air transportation
402
6
402
-
68
I55 - Accommodation
3
-
3
-
69
I55.1.0 - Hotels and similar accommodation
40
-
40
-
70
J61 - Telecommunications
23
0
23
-
71
J62.0 - Computer programming, consultancy and related activities
9
-
9
-
72
J62.0.1 - Computer programming activities
2
2
2
-
73
J62.0.3 - Computer facilities management activities
2
-
2
-
74
K64.2.0 - Activities of holding companies
64
0
64
0
75
K64.9.1 - Financial leasing
3
-
3
-
76
K65.1.2 - Non-life insurance
0
-
0
-
77
K66.1.9 - Other activities auxiliary to financial services, except insurance and pension funding
9
-
9
-
78
L68 - Real estate activities
14
3
14
0
79
L68.1.0 - Buying and selling of own real estate
116
19
116
-
80
L68.2.0 - Renting and operating of own or leased real estate
89
7
89
-
81
L68.3.2 - Management of real estate on a fee or contract basis
71
10
71
-
82
M71.2.0 - Technical testing and analysis
2
0
2
-
83
M74.1.0 - Specialised design activities
0
-
0
-
84
M74.9.0 - Other professional, scientific and technical activities n.e.c.
0
0
0
-
85
N77.1.1 - Renting and leasing of cars and light motor vehicles
10
0
10
0
86
N77.3.9 - Renting and leasing of other machinery, equipment and tangible goods n.e.c.
11
0
11
0
87
N81.2.2 - Other building and industrial cleaning activities
2
0
2
-
88
N82 - Office administrative, office support and other business support activities
3
-
3
-
89
Q86.1.0 - Hospital activities
57
-
57
-
90
R92 - Gambling and betting activities
392
-
392
-
91
S95.1.1 - Repair of computers and peripheral equipment
0
0
0
-
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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31 December 2024
Breakdown by sector - NACE 4 digits level (code and label)
Water and marine resources (WTR)
Circular economy (CE)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject to
NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject to
NFRD
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
1
B7 - Mining of metal ores
2
C10.6.1 - Manufacture of grain mill products
3
C11 - Manufacture of beverages
4
C13.9.5 - Manufacture of non-wovens and articles made from non-wovens, except apparel
5
C14.1.3 - Manufacture of other outerwear
6
C15 - Manufacture of leather and related products
7
C17 - Manufacture of paper and paper products
8
C18.1.0 - Printing and service activities related to printing
9
C19 - Manufacture of coke and refined petroleum products
10
C19.2.0 - Manufacture of refined petroleum products
11
C20.1.1 - Manufacture of industrial gases
12
C20.4.2 - Manufacture of perfumes and toilet preparations
13
C20.5.9 - Manufacture of other chemical products n.e.c.
14
C21 - Manufacture of basic pharmaceutical products and pharmaceutical preparations
15
C21.2.0 - Manufacture of pharmaceutical preparations
16
C22.2.1 - Manufacture of plastic plates, sheets, tubes and profiles
17
C22.2.2 - Manufacture of plastic packing goods
18
C23 - Manufacture of other non-metallic mineral products
19
C24 - Manufacture of basic metals
20
C24.1.0 - Manufacture of basic iron and steel and of ferro -alloys
21
C24.2 - Manufacture of tubes, pipes, hollow profiles and related fittings, of steel
22
C24.4.2 - Aluminium production
23
C24.4.4 - Copper production
24
C24.5.1 - Casting of iron
25
C27.3.2 - Manufacture of other electronic and electric wires and cables
26
C27.5.1 - Manufacture of electric domestic appliances
27
C28.9 - Manufacture of other special-purpose machinery
28
C29 - Manufacture of motor vehicles, trailers and semi-trailers
29
C29.3.2 - Manufacture of other parts and accessories for motor vehicles
30
C33.1.1 - Repair of fabricated metal products
31
C33.1.2 - Repair of machinery
32
D35 - Electricity, gas, steam and air conditioning supply
33
D35.1.1 - Production of electricity
34
D35.1.3 - Distribution of electricity
35
D35.1.4 - Trade of electricity
36
E38.3.2 - Recovery of sorted materials
37
F41.2.0 - Construction of residential and non-residential buildings
38
F42 - Civil engineering
39
F42.2.2 - Construction of utility projects for electricity and telecommunications
40
F42.9.9 - Construction of other civil engineering projects n.e.c.
41
F43.2.9 - Other construction installation
42
F43.9.9 - Other specialised construction activities n.e.c.
43
G45 - Wholesale and retail trade and repair of motor vehicles and motorcycles
44
G45.1.1 - Sale of cars and light motor vehicles
45
G45.1.9 - Sale of other motor vehicles
46
G45.3.0 - Sale of motor vehicle parts and accessories
47
G46 - Wholesale trade, except of motor vehicles and motorcycles
48
G46.3.6 - Wholesale of sugar and chocolate and sugar confectionery
49
G46.4.2 - Wholesale of clothing and footwear
50
G46.4.6 - Wholesale of pharmaceutical goods
51
G46.4.7 - Wholesale of furniture, carpets and lighting equipment
52
G46.5.1 - Wholesale of computers, computer peripheral equipment and software
53
G46.5.2 - Wholesale of electronic and telecommunications equipment and parts
54
G46.7 - Other specialised wholesale
55
G46.7.1 - Wholesale of solid, liquid and gaseous fuels and related products
56
G46.7.2 - Wholesale of metals and metal ores
57
G46.7.7 - Wholesale of waste and scrap
58
G47 - Retail trade, except of motor vehicles and motorcycles
59
G47.1.9 - Other retail sale in non-specialised stores
60
G47.7.1 - Retail sale of clothing in specialised stores
61
G47.7.8 - Other retail sale of new goods in specialised stores
62
H49 - Land transport and transport via pipelines
63
H50.1.0 - Sea and coastal passenger water transport
64
H51 - Air transport
65
H52.1 - Warehousing and storage
66
H52.2.1 - Service activities incidental to land transportation
67
H52.2.3 - Service activities incidental to air transportation
68
I55 - Accommodation
69
I55.1.0 - Hotels and similar accommodation
70
J61 - Telecommunications
71
J62.0 - Computer programming, consultancy and related activities
72
J62.0.1 - Computer programming activities
73
J62.0.3 - Computer facilities management activities
74
K64.2.0 - Activities of holding companies
75
K64.9.1 - Financial leasing
76
K65.1.2 - Non-life insurance
77
K66.1.9 - Other activities auxiliary to financial services, except insurance and pension funding
78
L68 - Real estate activities
79
L68.1.0 - Buying and selling of own real estate
80
L68.2.0 - Renting and operating of own or leased real estate
81
L68.3.2 - Management of real estate on a fee or contract basis
82
M71.2.0 - Technical testing and analysis
83
M74.1.0 - Specialised design activities
84
M74.9.0 - Other professional, scientific and technical activities n.e.c.
85
N77.1.1 - Renting and leasing of cars and light motor vehicles
86
N77.3.9 - Renting and leasing of other machinery, equipment and tangible goods n.e.c.
87
N81.2.2 - Other building and industrial cleaning activities
88
N82 - Office administrative, office support and other business support activities
89
Q86.1.0 - Hospital activities
90
R92 - Gambling and betting activities
91
S95.1.1 - Repair of computers and peripheral equipment
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r
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t
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y
z
aa
ab
2. GAR sector information - Turnover
31 December 2024
Breakdown by sector - NACE 4 digits level (code and label)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject to
NFRD
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable
(CCM + CCA + WTR +
CE + PPC + BIO)
Mn EUR
Of which
environmentally
sustainable
(CCM + CCA + WTR +
CE + PPC + BIO)
1
B7 - Mining of metal ores
16
-
2
C10.6.1 - Manufacture of grain mill products
0
0
3
C11 - Manufacture of beverages
5
-
4
C13.9.5 - Manufacture of non-wovens and articles made from non-wovens, except
apparel
1
1
5
C14.1.3 - Manufacture of other outerwear
0
-
6
C15 - Manufacture of leather and related products
2
-
7
C17 - Manufacture of paper and paper products
4
0
8
C18.1.0 - Printing and service activities related to printing
0
-
9
C19 - Manufacture of coke and refined petroleum products
85
1
10
C19.2.0 - Manufacture of refined petroleum products
767
10
11
C20.1.1 - Manufacture of industrial gases
0
-
12
C20.4.2 - Manufacture of perfumes and toilet preparations
30
-
13
C20.5.9 - Manufacture of other chemical products n.e.c.
4
4
14
C21 - Manufacture of basic pharmaceutical products and pharmaceutical preparations
22
-
15
C21.2.0 - Manufacture of pharmaceutical preparations
25
-
16
C22.2.1 - Manufacture of plastic plates, sheets, tubes and profiles
12
0
17
C22.2.2 - Manufacture of plastic packing goods
10
2
18
C23 - Manufacture of other non-metallic mineral products
87
4
19
C24 - Manufacture of basic metals
10
-
20
C24.1.0 - Manufacture of basic iron and steel and of ferro -alloys
85
8
21
C24.2 - Manufacture of tubes, pipes, hollow profiles and related fittings, of steel
8
2
22
C24.4.2 - Aluminium production
52
3
23
C24.4.4 - Copper production
61
1
24
C24.5.1 - Casting of iron
58
4
25
C27.3.2 - Manufacture of other electronic and electric wires and cables
196
50
26
C27.5.1 - Manufacture of electric domestic appliances
1
1
27
C28.9 - Manufacture of other special-purpose machinery
18
-
28
C29 - Manufacture of motor vehicles, trailers and semi-trailers
53
4
29
C29.3.2 - Manufacture of other parts and accessories for motor vehicles
0
0
30
C33.1.1 - Repair of fabricated metal products
9
9
31
C33.1.2 - Repair of machinery
0
0
32
D35 - Electricity, gas, steam and air conditioning supply
297
48
33
D35.1.1 - Production of electricity
1,403
1,297
34
D35.1.3 - Distribution of electricity
355
-
35
D35.1.4 - Trade of electricity
341
-
36
E38.3.2 - Recovery of sorted materials
2
0
37
F41.2.0 - Construction of residential and non-residential buildings
1
-
38
F42 - Civil engineering
42
5
39
F42.2.2 - Construction of utility projects for electricity and telecommunications
198
198
40
F42.9.9 - Construction of other civil engineering projects n.e.c.
19
4
41
F43.2.9 - Other construction installation
21
-
42
F43.9.9 - Other specialised construction activities n.e.c.
5
-
43
G45 - Wholesale and retail trade and repair of motor vehicles and motorcycles
3
0
44
G45.1.1 - Sale of cars and light motor vehicles
1
0
45
G45.1.9 - Sale of other motor vehicles
2
0
46
G45.3.0 - Sale of motor vehicle parts and accessories
4
0
47
G46 - Wholesale trade, except of motor vehicles and motorcycles
1
-
48
G46.3.6 - Wholesale of sugar and chocolate and sugar confectionery
4
-
49
G46.4.2 - Wholesale of clothing and footwear
7
-
50
G46.4.6 - Wholesale of pharmaceutical goods
23
-
51
G46.4.7 - Wholesale of furniture, carpets and lighting equipment
8
-
52
G46.5.1 - Wholesale of computers, computer peripheral equipment and software
7
0
53
G46.5.2 - Wholesale of electronic and telecommunications equipment and parts
11
-
54
G46.7 - Other specialised wholesale
1
-
55
G46.7.1 - Wholesale of solid, liquid and gaseous fuels and related products
319
36
56
G46.7.2 - Wholesale of metals and metal ores
13
1
57
G46.7.7 - Wholesale of waste and scrap
6
0
58
G47 - Retail trade, except of motor vehicles and motorcycles
0
-
59
G47.1.9 - Other retail sale in non-specialised stores
28
5
60
G47.7.1 - Retail sale of clothing in specialised stores
12
0
61
G47.7.8 - Other retail sale of new goods in specialised stores
1
-
62
H49 - Land transport and transport via pipelines
8
7
63
H50.1.0 - Sea and coastal passenger water transport
0
-
64
H51 - Air transport
25
-
65
H52.1 - Warehousing and storage
1
-
66
H52.2.1 - Service activities incidental to land transportation
21
2
67
H52.2.3 - Service activities incidental to air transportation
402
6
68
I55 - Accommodation
3
-
69
I55.1.0 - Hotels and similar accommodation
40
-
70
J61 - Telecommunications
23
0
71
J62.0 - Computer programming, consultancy and related activities
9
-
72
J62.0.1 - Computer programming activities
2
2
73
J62.0.3 - Computer facilities management activities
2
-
74
K64.2.0 - Activities of holding companies
64
0
75
K64.9.1 - Financial leasing
3
-
76
K65.1.2 - Non-life insurance
0
-
77
K66.1.9 - Other activities auxiliary to financial services, except insurance and pension
funding
9
-
78
L68 - Real estate activities
14
3
79
L68.1.0 - Buying and selling of own real estate
116
19
80
L68.2.0 - Renting and operating of own or leased real estate
89
7
81
L68.3.2 - Management of real estate on a fee or contract basis
71
10
82
M71.2.0 - Technical testing and analysis
2
0
83
M74.1.0 - Specialised design activities
0
-
84
M74.9.0 - Other professional, scientific and technical activities n.e.c.
0
0
85
N77.1.1 - Renting and leasing of cars and light motor vehicles
10
0
86
N77.3.9 - Renting and leasing of other machinery, equipment and tangible goods n.e.c.
11
0
87
N81.2.2 - Other building and industrial cleaning activities
2
0
88
N82 - Office administrative, office support and other business support activities
3
-
89
Q86.1.0 - Hospital activities
57
-
90
R92 - Gambling and betting activities
392
-
91
S95.1.1 - Repair of computers and peripheral equipment
0
0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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2. GAR sector information - Capex
31 December 2024
Breakdown by sector - NACE 4 digits level (code and label)
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject to
NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject to
NFRD
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which
environmentally
sustainable (CCM)
Mn EUR
Of which
environmentally
sustainable (CCM)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
1
B7 - Mining of metal ores
16
-
16
-
2
C10.6.1 - Manufacture of grain mill products
0
0
0
-
3
C11 - Manufacture of beverages
5
0
5
-
4
C13.9.5 - Manufacture of non-wovens and articles made from non-wovens, except apparel
1
1
1
-
5
C14.1.3 - Manufacture of other outerwear
0
0
0
-
6
C15 - Manufacture of leather and related products
2
0
2
-
7
C17 - Manufacture of paper and paper products
4
0
4
-
8
C18.1.0 - Printing and service activities related to printing
0
-
0
-
9
C19 - Manufacture of coke and refined petroleum products
85
23
85
-
10
C19.2.0 - Manufacture of refined petroleum products
767
179
767
-
11
C20.1.1 - Manufacture of industrial gases
0
-
0
-
12
C20.4.2 - Manufacture of perfumes and toilet preparations
30
6
30
-
13
C20.5.9 - Manufacture of other chemical products n.e.c.
4
4
4
-
14
C21 - Manufacture of basic pharmaceutical products and pharmaceutical preparations
22
-
22
-
15
C21.2.0 - Manufacture of pharmaceutical preparations
25
-
25
-
16
C22.2.1 - Manufacture of plastic plates, sheets, tubes and profiles
12
0
12
-
17
C22.2.2 - Manufacture of plastic packing goods
10
-
10
2
18
C23 - Manufacture of other non-metallic mineral products
87
24
87
-
19
C24 - Manufacture of basic metals
10
-
10
-
20
C24.1.0 - Manufacture of basic iron and steel and of ferro -alloys
85
17
85
-
21
C24.2 - Manufacture of tubes, pipes, hollow profiles and related fittings, of steel
8
3
8
-
22
C24.4.2 - Aluminium production
52
9
52
-
23
C24.4.4 - Copper production
61
4
61
-
24
C24.5.1 - Casting of iron
58
10
58
-
25
C27.3.2 - Manufacture of other electronic and electric wires and cables
196
73
196
-
26
C27.5.1 - Manufacture of electric domestic appliances
1
1
1
-
27
C28.9 - Manufacture of other special-purpose machinery
18
-
18
-
28
C29 - Manufacture of motor vehicles, trailers and semi-trailers
53
10
53
-
29
C29.3.2 - Manufacture of other parts and accessories for motor vehicles
0
0
0
-
30
C33.1.1 - Repair of fabricated metal products
9
9
9
-
31
C33.1.2 - Repair of machinery
0
0
0
-
32
D35 - Electricity, gas, steam and air conditioning supply
297
112
297
0
33
D35.1.1 - Production of electricity
1,403
1,360
1,403
-
34
D35.1.3 - Distribution of electricity
355
-
355
-
35
D35.1.4 - Trade of electricity
341
-
341
-
36
E38.3.2 - Recovery of sorted materials
2
0
2
-
37
F41.2.0 - Construction of residential and non-residential buildings
1
-
1
-
38
F42 - Civil engineering
42
19
42
0
39
F42.2.2 - Construction of utility projects for electricity and telecommunications
198
198
198
-
40
F42.9.9 - Construction of other civil engineering projects n.e.c.
19
13
19
-
41
F43.2.9 - Other construction installation
21
-
21
-
42
F43.9.9 - Other specialised construction activities n.e.c.
5
-
5
-
43
G45 - Wholesale and retail trade and repair of motor vehicles and motorcycles
3
1
3
0
44
G45.1.1 - Sale of cars and light motor vehicles
1
0
1
0
45
G45.1.9 - Sale of other motor vehicles
2
1
2
-
46
G45.3.0 - Sale of motor vehicle parts and accessories
4
1
4
0
47
G46 - Wholesale trade, except of motor vehicles and motorcycles
1
-
1
-
48
G46.3.6 - Wholesale of sugar and chocolate and sugar confectionery
4
-
4
-
49
G46.4.2 - Wholesale of clothing and footwear
7
1
7
-
50
G46.4.6 - Wholesale of pharmaceutical goods
23
-
23
-
51
G46.4.7 - Wholesale of furniture, carpets and lighting equipment
8
-
8
-
52
G46.5.1 - Wholesale of computers, computer peripheral equipment and software
7
1
7
-
53
G46.5.2 - Wholesale of electronic and telecommunications equipment and parts
11
-
11
-
54
G46.7 - Other specialised wholesale
1
-
1
-
55
G46.7.1 - Wholesale of solid, liquid and gaseous fuels and related products
319
187
319
-
56
G46.7.2 - Wholesale of metals and metal ores
13
2
13
-
57
G46.7.7 - Wholesale of waste and scrap
6
1
6
-
58
G47 - Retail trade, except of motor vehicles and motorcycles
0
-
0
-
59
G47.1.9 - Other retail sale in non-specialised stores
28
14
28
-
60
G47.7.1 - Retail sale of clothing in specialised stores
12
-
12
-
61
G47.7.8 - Other retail sale of new goods in specialised stores
1
-
1
-
62
H49 - Land transport and transport via pipelines
8
6
8
-
63
H50.1.0 - Sea and coastal passenger water transport
0
0
0
-
64
H51 - Air transport
25
0
25
-
65
H52.1 - Warehousing and storage
1
-
1
-
66
H52.2.1 - Service activities incidental to land transportation
21
2
21
0
67
H52.2.3 - Service activities incidental to air transportation
402
20
402
-
68
I55 - Accommodation
3
-
3
-
69
I55.1.0 - Hotels and similar accommodation
40
-
40
-
70
J61 - Telecommunications
23
-
23
-
71
J62.0 - Computer programming, consultancy and related activities
9
0
9
0
72
J62.0.1 - Computer programming activities
2
-
2
2
73
J62.0.3 - Computer facilities management activities
2
0
2
-
74
K64.2.0 - Activities of holding companies
64
0
64
-
75
K64.9.1 - Financial leasing
3
-
3
-
76
K65.1.2 - Non-life insurance
0
-
0
-
77
K66.1.9 - Other activities auxiliary to financial services, except insurance and pension funding
9
0
9
-
78
L68 - Real estate activities
14
5
14
0
79
L68.1.0 - Buying and selling of own real estate
116
58
116
-
80
L68.2.0 - Renting and operating of own or leased real estate
89
17
89
-
81
L68.3.2 - Management of real estate on a fee or contract basis
71
32
71
-
82
M71.2.0 - Technical testing and analysis
2
0
2
-
83
M74.1.0 - Specialised design activities
0
-
0
-
84
M74.9.0 - Other professional, scientific and technical activities n.e.c.
0
0
0
-
85
N77.1.1 - Renting and leasing of cars and light motor vehicles
10
2
10
0
86
N77.3.9 - Renting and leasing of other machinery, equipment and tangible goods n.e.c.
11
2
11
0
87
N81.2.2 - Other building and industrial cleaning activities
2
1
2
-
88
N82 - Office administrative, office support and other business support activities
3
0
3
-
89
Q86.1.0 - Hospital activities
57
0
57
-
90
R92 - Gambling and betting activities
392
-
392
-
91
S95.1.1 - Repair of computers and peripheral equipment
0
-
0
0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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i
j
k
l
m
n
o
p
2. GAR sector information - Capex
31 December 2024
Breakdown by sector - NACE 4 digits level (code and label)
Water and marine resources (WTR)
Circular economy (CE)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject to
NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject to
NFRD
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
1
B7 - Mining of metal ores
2
C10.6.1 - Manufacture of grain mill products
3
C11 - Manufacture of beverages
4
C13.9.5 - Manufacture of non-wovens and articles made from non-wovens, except apparel
5
C14.1.3 - Manufacture of other outerwear
6
C15 - Manufacture of leather and related products
7
C17 - Manufacture of paper and paper products
8
C18.1.0 - Printing and service activities related to printing
9
C19 - Manufacture of coke and refined petroleum products
10
C19.2.0 - Manufacture of refined petroleum products
11
C20.1.1 - Manufacture of industrial gases
12
C20.4.2 - Manufacture of perfumes and toilet preparations
13
C20.5.9 - Manufacture of other chemical products n.e.c.
14
C21 - Manufacture of basic pharmaceutical products and pharmaceutical preparations
15
C21.2.0 - Manufacture of pharmaceutical preparations
16
C22.2.1 - Manufacture of plastic plates, sheets, tubes and profiles
17
C22.2.2 - Manufacture of plastic packing goods
18
C23 - Manufacture of other non-metallic mineral products
19
C24 - Manufacture of basic metals
20
C24.1.0 - Manufacture of basic iron and steel and of ferro -alloys
21
C24.2 - Manufacture of tubes, pipes, hollow profiles and related fittings, of steel
22
C24.4.2 - Aluminium production
23
C24.4.4 - Copper production
24
C24.5.1 - Casting of iron
25
C27.3.2 - Manufacture of other electronic and electric wires and cables
26
C27.5.1 - Manufacture of electric domestic appliances
27
C28.9 - Manufacture of other special-purpose machinery
28
C29 - Manufacture of motor vehicles, trailers and semi-trailers
29
C29.3.2 - Manufacture of other parts and accessories for motor vehicles
30
C33.1.1 - Repair of fabricated metal products
31
C33.1.2 - Repair of machinery
32
D35 - Electricity, gas, steam and air conditioning supply
33
D35.1.1 - Production of electricity
34
D35.1.3 - Distribution of electricity
35
D35.1.4 - Trade of electricity
36
E38.3.2 - Recovery of sorted materials
37
F41.2.0 - Construction of residential and non-residential buildings
38
F42 - Civil engineering
39
F42.2.2 - Construction of utility projects for electricity and telecommunications
40
F42.9.9 - Construction of other civil engineering projects n.e.c.
41
F43.2.9 - Other construction installation
42
F43.9.9 - Other specialised construction activities n.e.c.
43
G45 - Wholesale and retail trade and repair of motor vehicles and motorcycles
44
G45.1.1 - Sale of cars and light motor vehicles
45
G45.1.9 - Sale of other motor vehicles
46
G45.3.0 - Sale of motor vehicle parts and accessories
47
G46 - Wholesale trade, except of motor vehicles and motorcycles
48
G46.3.6 - Wholesale of sugar and chocolate and sugar confectionery
49
G46.4.2 - Wholesale of clothing and footwear
50
G46.4.6 - Wholesale of pharmaceutical goods
51
G46.4.7 - Wholesale of furniture, carpets and lighting equipment
52
G46.5.1 - Wholesale of computers, computer peripheral equipment and software
53
G46.5.2 - Wholesale of electronic and telecommunications equipment and parts
54
G46.7 - Other specialised wholesale
55
G46.7.1 - Wholesale of solid, liquid and gaseous fuels and related products
56
G46.7.2 - Wholesale of metals and metal ores
57
G46.7.7 - Wholesale of waste and scrap
58
G47 - Retail trade, except of motor vehicles and motorcycles
59
G47.1.9 - Other retail sale in non-specialised stores
60
G47.7.1 - Retail sale of clothing in specialised stores
61
G47.7.8 - Other retail sale of new goods in specialised stores
62
H49 - Land transport and transport via pipelines
63
H50.1.0 - Sea and coastal passenger water transport
64
H51 - Air transport
65
H52.1 - Warehousing and storage
66
H52.2.1 - Service activities incidental to land transportation
67
H52.2.3 - Service activities incidental to air transportation
68
I55 - Accommodation
69
I55.1.0 - Hotels and similar accommodation
70
J61 - Telecommunications
71
J62.0 - Computer programming, consultancy and related activities
72
J62.0.1 - Computer programming activities
73
J62.0.3 - Computer facilities management activities
74
K64.2.0 - Activities of holding companies
75
K64.9.1 - Financial leasing
76
K65.1.2 - Non-life insurance
77
K66.1.9 - Other activities auxiliary to financial services, except insurance and pension funding
78
L68 - Real estate activities
79
L68.1.0 - Buying and selling of own real estate
80
L68.2.0 - Renting and operating of own or leased real estate
81
L68.3.2 - Management of real estate on a fee or contract basis
82
M71.2.0 - Technical testing and analysis
83
M74.1.0 - Specialised design activities
84
M74.9.0 - Other professional, scientific and technical activities n.e.c.
85
N77.1.1 - Renting and leasing of cars and light motor vehicles
86
N77.3.9 - Renting and leasing of other machinery, equipment and tangible goods n.e.c.
87
N81.2.2 - Other building and industrial cleaning activities
88
N82 - Office administrative, office support and other business support activities
89
Q86.1.0 - Hospital activities
90
R92 - Gambling and betting activities
91
S95.1.1 - Repair of computers and peripheral equipment
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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q
r
s
t
u
v
w
x
y
z
aa
ab
2. GAR sector information - Capex
31 December 2024
Breakdown by sector - NACE 4 digits level (code and label)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject to
NFRD
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable
(CCM + CCA + WTR +
CE + PPC + BIO)
Mn EUR
Of which
environmentally
sustainable
(CCM + CCA + WTR +
CE + PPC + BIO)
1
B7 - Mining of metal ores
16
-
2
C10.6.1 - Manufacture of grain mill products
0
0
3
C11 - Manufacture of beverages
5
0
4
C13.9.5 - Manufacture of non-wovens and articles made from non-wovens, except apparel
1
1
5
C14.1.3 - Manufacture of other outerwear
0
0
6
C15 - Manufacture of leather and related products
2
0
7
C17 - Manufacture of paper and paper products
4
0
8
C18.1.0 - Printing and service activities related to printing
0
-
9
C19 - Manufacture of coke and refined petroleum products
85
23
10
C19.2.0 - Manufacture of refined petroleum products
767
179
11
C20.1.1 - Manufacture of industrial gases
0
-
12
C20.4.2 - Manufacture of perfumes and toilet preparations
30
6
13
C20.5.9 - Manufacture of other chemical products n.e.c.
4
4
14
C21 - Manufacture of basic pharmaceutical products and pharmaceutical preparations
22
-
15
C21.2.0 - Manufacture of pharmaceutical preparations
25
-
16
C22.2.1 - Manufacture of plastic plates, sheets, tubes and profiles
12
0
17
C22.2.2 - Manufacture of plastic packing goods
10
2
18
C23 - Manufacture of other non-metallic mineral products
87
24
19
C24 - Manufacture of basic metals
10
-
20
C24.1.0 - Manufacture of basic iron and steel and of ferro -alloys
85
17
21
C24.2 - Manufacture of tubes, pipes, hollow profiles and related fittings, of steel
8
3
22
C24.4.2 - Aluminium production
52
9
23
C24.4.4 - Copper production
61
4
24
C24.5.1 - Casting of iron
58
10
25
C27.3.2 - Manufacture of other electronic and electric wires and cables
196
73
26
C27.5.1 - Manufacture of electric domestic appliances
1
1
27
C28.9 - Manufacture of other special-purpose machinery
18
-
28
C29 - Manufacture of motor vehicles, trailers and semi-trailers
53
10
29
C29.3.2 - Manufacture of other parts and accessories for motor vehicles
0
0
30
C33.1.1 - Repair of fabricated metal products
9
9
31
C33.1.2 - Repair of machinery
0
0
32
D35 - Electricity, gas, steam and air conditioning supply
297
112
33
D35.1.1 - Production of electricity
1,403
1,360
34
D35.1.3 - Distribution of electricity
355
-
35
D35.1.4 - Trade of electricity
341
-
36
E38.3.2 - Recovery of sorted materials
2
0
37
F41.2.0 - Construction of residential and non-residential buildings
1
-
38
F42 - Civil engineering
42
19
39
F42.2.2 - Construction of utility projects for electricity and
telecommunications
198
198
40
F42.9.9 - Construction of other civil engineering projects n.e.c.
19
13
41
F43.2.9 - Other construction installation
21
-
42
F43.9.9 - Other specialised construction activities n.e.c.
5
-
43
G45 - Wholesale and retail trade and repair of motor vehicles and
motorcycles
3
1
44
G45.1.1 - Sale of cars and light motor vehicles
1
0
45
G45.1.9 - Sale of other motor vehicles
2
1
46
G45.3.0 - Sale of motor vehicle parts and accessories
4
1
47
G46 - Wholesale trade, except of motor vehicles and motorcycles
1
-
48
G46.3.6 - Wholesale of sugar and chocolate and sugar confectionery
4
-
49
G46.4.2 - Wholesale of clothing and footwear
7
1
50
G46.4.6 - Wholesale of pharmaceutical goods
23
-
51
G46.4.7 - Wholesale of furniture, carpets and lighting equipment
8
-
52
G46.5.1 - Wholesale of computers, computer peripheral equipment and
software
7
1
53
G46.5.2 - Wholesale of electronic and telecommunications equipment and
parts
11
-
54
G46.7 - Other specialised wholesale
1
-
55
G46.7.1 - Wholesale of solid, liquid and gaseous fuels and related products
319
187
56
G46.7.2 - Wholesale of metals and metal ores
13
2
57
G46.7.7 - Wholesale of waste and scrap
6
1
58
G47 - Retail trade, except of motor vehicles and motorcycles
0
-
59
G47.1.9 - Other retail sale in non-specialised stores
28
14
60
G47.7.1 - Retail sale of clothing in specialised stores
12
-
61
G47.7.8 - Other retail sale of new goods in specialised stores
1
-
62
H49 - Land transport and transport via pipelines
8
6
63
H50.1.0 - Sea and coastal passenger water transport
0
0
64
H51 - Air transport
25
0
65
H52.1 - Warehousing and storage
1
-
66
H52.2.1 - Service activities incidental to land transportation
21
2
67
H52.2.3 - Service activities incidental to air transportation
402
20
68
I55 - Accommodation
3
-
69
I55.1.0 - Hotels and similar accommodation
40
-
70
J61 - Telecommunications
23
-
71
J62.0 - Computer programming, consultancy and related activities
9
0
72
J62.0.1 - Computer programming activities
2
2
73
J62.0.3 - Computer facilities management activities
2
0
74
K64.2.0 - Activities of holding companies
64
0
75
K64.9.1 - Financial leasing
3
-
76
K65.1.2 - Non-life insurance
0
-
77
K66.1.9 - Other activities auxiliary to financial services, except insurance and pension funding
9
0
78
L68 - Real estate activities
14
5
79
L68.1.0 - Buying and selling of own real estate
116
58
80
L68.2.0 - Renting and operating of own or leased real estate
89
17
81
L68.3.2 - Management of real estate on a fee or contract basis
71
32
82
M71.2.0 - Technical testing and analysis
2
0
83
M74.1.0 - Specialised design activities
0
-
84
M74.9.0 - Other professional, scientific and technical activities n.e.c.
0
0
85
N77.1.1 - Renting and leasing of cars and light motor vehicles
10
2
86
N77.3.9 - Renting and leasing of other machinery, equipment and tangible goods n.e.c.
11
2
87
N81.2.2 - Other building and industrial cleaning activities
2
1
88
N82 - Office administrative, office support and other business support activities
3
0
89
Q86.1.0 - Hospital activities
57
0
90
R92 - Gambling and betting activities
392
-
91
S95.1.1 - Repair of computers and peripheral equipment
0
0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
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€ = Euro m = million bn = billion
3. GAR KPI Stock - Turnover
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
% (compared to total covered assets in the
denominator)
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
59.5
6.6
4.9
0.1
0.5
0.4
0.0
-
0.0
0.0
-
-
-
0.0
-
-
-
2
Financial corporations
25.3
2.9
-
0.2
0.4
0.4
0.0
-
0.0
-
-
-
-
0.0
-
-
-
3
Credit institutions
26.4
2.8
-
0.2
0.4
0.3
0.0
-
0.0
-
-
-
-
-
-
-
-
4
Loans and advances
24.0
3.9
-
0.1
0.1
0.1
0.0
-
0.0
-
-
-
-
-
-
-
-
5
Debt securities, including UoP
27.1
2.5
-
0.3
0.5
0.4
0.0
-
0.0
-
-
-
-
-
-
-
-
6
Equity instruments
19.7
1.5
0.1
0.1
0.6
0.0
-
-
-
-
-
-
-
7
Other financial corporations
12.9
4.1
-
0.0
0.5
1.6
0.0
-
-
-
-
-
-
0.1
-
-
-
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
37.5
0.2
-
0.0
0.0
0.8
0.8
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
37.5
0.2
-
0.0
0.0
0.8
0.8
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
37.2
28.5
22.5
0.1
2.0
1.7
0.0
-
0.0
0.0
-
-
-
0.2
-
-
-
21
Loans and advances
38.5
31.0
25.5
0.0
1.5
1.5
0.0
-
0.0
-
-
-
-
0.2
-
-
-
22
Debt securities, including UoP
27.6
10.1
-
0.6
5.6
3.1
0.0
-
0.0
0.0
-
-
-
0.5
-
-
-
23
Equity instruments
20.0
7.9
-
0.9
4.9
0.0
-
-
-
-
0.0
-
-
24
Households
75.1
0.1
0.1
-
-
-
-
-
-
-
-
-
-
25
of which loans collateralised by residential
immovable property
100.0
0.2
0.2
-
-
-
-
-
-
-
-
-
-
26
of which building renovation loans
100.0
-
-
-
-
-
-
-
-
-
-
-
-
27
of which motor vehicle loans
100.0
0.8
0.8
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
74.6
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32
Total GAR assets
24.3
2.6
1.9
0.0
0.2
0.2
0.0
-
0.0
-
-
-
-
0.0
-
-
-
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
130
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€ = Euro m = million bn = billion
3. GAR KPI Stock - Turnover
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
% (compared to total covered assets in the
denominator)
31 December 2024
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total
assets covered
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
0.0
-
-
-
0.1
-
-
-
60.2
6.6
4.9
0.1
0.5
39.6
2
Financial corporations
-
-
-
-
-
-
-
-
26.0
3.0
-
0.2
0.4
6.0
3
Credit institutions
-
-
-
-
-
-
-
-
27.0
2.9
-
0.2
0.4
5.5
4
Loans and advances
-
-
-
-
-
-
-
-
24.5
4.0
-
0.1
0.1
1.3
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
27.8
2.5
-
0.3
0.5
4.2
6
Equity instruments
-
-
-
-
-
-
20.2
1.5
0.1
0.1
0.0
7
Other financial corporations
-
-
-
-
-
-
-
-
14.6
4.1
-
0.0
0.3
0.5
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
-
-
-
-
-
-
-
-
38.3
1.0
-
0.0
0.0
0.0
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
38.3
1.0
-
0.0
0.0
0.0
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
0.1
-
-
-
0.7
-
-
-
39.9
28.6
22.5
0.1
2.0
8.4
21
Loans and advances
0.0
-
-
-
0.7
-
-
-
40.9
31.0
25.5
0.0
1.6
7.4
22
Debt securities, including UoP
1.2
-
-
-
0.0
-
-
-
32.4
10.2
-
0.6
5.6
1.0
23
Equity instruments
-
-
-
-
-
-
25.0
7.9
-
0.9
0.0
24
Households
75.1
0.1
0.1
-
-
25.2
25
of which loans collateralised by residential
immovable property
100.0
0.2
0.2
-
-
16.9
26
of which building renovation loans
100.0
-
-
-
-
2.9
27
of which motor vehicle loans
100.0
0.8
0.8
-
-
0.8
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
74.6
-
-
-
-
1.0
32
Total GAR assets
0.0
-
-
-
0.1
-
-
-
24.6
2.6
1.9
0.0
0.2
100.0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
131
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Page
€ = Euro m = million bn = billion
3. GAR KPI Stock - Capex
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
% (compared to total covered assets in the
denominator)
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
65.1
9.2
4.9
0.2
1.4
0.2
0.0
-
0.0
-
-
-
-
0.0
-
-
-
2
Financial corporations
28.7
4.5
-
0.2
0.7
0.3
0.0
-
0.0
-
-
-
-
0.0
-
-
-
3
Credit institutions
25.6
3.6
-
0.2
0.6
0.4
0.0
-
0.0
-
-
-
-
-
-
-
-
4
Loans and advances
19.9
3.9
-
0.1
0.1
0.1
0.0
-
0.0
-
-
-
-
-
-
-
-
5
Debt securities, including UoP
27.4
3.4
-
0.3
0.8
0.4
0.0
-
0.0
-
-
-
-
-
-
-
-
6
Equity instruments
22.1
3.2
0.1
0.2
0.5
0.0
-
-
-
-
-
-
-
7
Other financial corporations
64.3
15.1
-
0.2
1.7
0.0
0.0
-
-
-
-
-
-
0.0
-
-
-
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
37.3
0.3
-
0.0
0.0
0.8
0.8
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
37.3
0.3
-
0.0
0.0
0.8
0.8
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
60.9
39.6
22.5
0.7
5.9
0.8
0.1
-
0.0
-
-
-
-
0.1
-
-
-
21
Loans and advances
60.8
41.2
25.5
0.3
5.3
0.7
0.1
-
0.0
-
-
-
-
0.1
-
-
-
22
Debt securities, including UoP
62.1
27.9
-
3.8
10.5
1.2
0.0
-
0.0
0.0
-
-
-
0.4
-
-
-
23
Equity instruments
37.4
26.2
0.1
2.1
3.5
-
-
-
-
-
0.0
-
-
24
Households
75.1
0.1
0.1
-
-
-
-
-
-
-
-
-
-
25
of which loans collateralised by residential
immovable property
100.0
0.2
0.2
-
-
-
-
-
-
-
-
-
-
26
of which building renovation loans
100.0
-
-
-
-
-
-
-
-
-
-
-
-
27
of which motor vehicle loans
100.0
0.8
0.8
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
74.6
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32
Total GAR assets
26.5
3.6
1.9
0.1
0.5
0.1
0.0
-
0.0
-
-
-
-
0.0
-
-
-
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
132
|
Page
€ = Euro m = million bn = billion
3. GAR KPI Stock - Capex
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
% (compared to total covered assets in the
denominator)
31 December 2024
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total
assets covered
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
0.1
-
-
-
0.1
-
-
-
65.6
9.2
4.9
0.2
1.4
39.6
2
Financial corporations
-
-
-
-
-
-
-
-
29.3
4.5
-
0.2
0.7
6.0
3
Credit institutions
-
-
-
-
-
-
-
-
26.2
3.6
-
0.2
0.6
5.5
4
Loans and advances
-
-
-
-
-
-
-
-
20.3
4.0
-
0.1
0.1
1.3
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
28.1
3.4
-
0.3
0.8
4.2
6
Equity instruments
-
-
-
-
-
-
22.8
3.2
0.1
0.2
0.0
7
Other financial corporations
-
-
-
-
-
-
-
-
64.3
15.1
-
0.1
1.4
0.5
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
-
-
-
-
-
-
-
-
38.1
1.1
-
0.0
0.0
0.0
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
38.1
1.1
-
0.0
0.0
0.0
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
0.3
-
-
-
0.7
-
-
-
62.7
39.7
22.5
0.7
5.9
8.4
21
Loans and advances
0.2
-
-
-
0.7
-
-
-
62.5
41.3
25.5
0.3
5.4
7.4
22
Debt securities, including UoP
0.6
-
-
-
0.0
-
-
-
64.4
27.9
-
3.8
10.6
1.0
23
Equity instruments
-
-
-
-
-
-
40.9
26.2
0.1
2.1
0.0
24
Households
75.1
0.1
0.1
-
-
25.2
25
of which loans collateralised by residential
immovable property
100.0
0.2
0.2
-
-
16.9
26
of which building renovation loans
100.0
-
-
-
-
2.9
27
of which motor vehicle loans
100.0
0.8
0.8
-
-
0.8
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
74.6
-
-
-
-
1.0
32
Total GAR assets
0.0
-
-
-
0.1
-
-
-
26.7
3.7
1.9
0.1
0.5
100.0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
133
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Page
€ = Euro m = million bn = billion
4. GAR KPI flow - Turnover
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
% (compared to flow of total eligible assets)
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
53.5
11.9
5.8
0.0
1.4
1.6
0.1
-
0.1
0.0
-
-
-
0.1
-
-
-
2
Financial corporations
21.1
1.1
-
0.1
0.1
0.3
0.0
-
0.0
-
-
-
-
-
-
-
-
3
Credit institutions
21.1
1.1
-
0.1
0.1
0.3
0.0
-
0.0
-
-
-
-
-
-
-
-
4
Loans and advances
1.4
0.6
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5
Debt securities, including UoP
21.3
1.1
-
0.1
0.1
0.3
0.0
-
0.0
-
-
-
-
-
-
-
-
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
7
Other financial corporations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
30.8
23.3
12.0
-
2.9
3.1
0.2
-
0.1
0.0
-
-
-
0.2
-
-
-
21
Loans and advances
30.5
24.7
13.3
-
2.3
2.7
0.2
-
0.1
0.0
-
-
-
0.2
-
-
-
22
Debt securities, including UoP
33.3
10.3
0.0
-
8.3
7.0
0.4
-
0.4
-
-
-
-
0.0
-
-
-
23
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
24
Households
100.0
0.9
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25
of which loans collateralised by residential
immovable property
100.0
1.2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
26
of which building renovation loans
100.0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27
of which motor vehicle loans
100.0
0.8
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
82.8
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32
Total GAR assets
16.8
3.7
1.8
0.0
0.4
0.5
0.0
-
0.0
0.0
-
-
-
0.0
-
-
-
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
134
|
Page
€ = Euro m = million bn = billion
4. GAR KPI flow - Turnover
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
% (compared to flow of total eligible assets)
31 December 2024
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total
assets covered
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
0.2
-
-
-
-
-
-
-
55.3
12.0
5.8
0.0
1.5
31.3
2
Financial corporations
-
-
-
-
-
-
-
-
21.3
1.1
-
0.1
0.1
5.0
3
Credit institutions
-
-
-
-
-
-
-
-
21.4
1.1
-
0.1
0.1
5.0
4
Loans and advances
-
-
-
-
-
-
-
-
1.4
0.6
-
-
-
0.0
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
21.5
1.1
-
0.1
0.1
5.0
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
7
Other financial corporations
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
0.3
-
-
-
-
-
-
-
34.3
23.5
12.0
-
3.0
15.3
21
Loans and advances
0.0
-
-
-
-
-
-
-
33.4
24.9
13.3
-
2.4
13.8
22
Debt securities, including UoP
3.3
-
-
-
-
-
-
-
43.6
10.7
0.0
-
8.7
1.5
23
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
24
Households
-
-
-
-
-
-
-
-
100.0
0.9
-
-
-
11.0
25
of which loans collateralised by residential
immovable property
-
-
-
-
-
-
-
-
100.0
1.2
-
-
-
7.9
26
of which building renovation loans
-
-
-
-
-
-
-
-
100.0
-
-
-
-
1.4
27
of which motor vehicle loans
-
-
-
-
-
-
-
-
100.0
0.8
-
-
-
1.3
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
82.8
-
-
-
-
0.1
32
Total GAR assets
0.0
-
-
-
-
-
-
-
17.4
3.7
1.8
0.0
0.5
100.0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
135
|
Page
€ = Euro m = million bn = billion
4. GAR KPI flow - Capex
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
% (compared to flow of total eligible assets)
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
67.1
20.6
5.8
0.1
4.7
0.5
0.2
-
0.1
-
-
-
-
0.0
-
-
-
2
Financial corporations
19.5
2.0
-
0.2
0.1
0.2
0.0
-
0.0
-
-
-
-
-
-
-
-
3
Credit institutions
19.6
2.0
-
0.2
0.1
0.2
0.0
-
0.0
-
-
-
-
-
-
-
-
4
Loans and advances
1.8
1.2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5
Debt securities, including UoP
19.7
2.0
-
0.2
0.1
0.2
0.0
-
0.0
-
-
-
-
-
-
-
-
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
7
Other financial corporations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
59.1
40.8
12.0
0.2
9.6
0.9
0.3
-
0.2
-
-
-
-
0.0
-
-
-
21
Loans and advances
59.6
42.5
13.3
0.1
9.1
0.5
0.2
-
0.1
-
-
-
-
0.0
-
-
-
22
Debt securities, including UoP
54.7
25.4
-
0.3
13.8
4.4
1.5
-
1.5
-
-
-
-
0.0
-
-
-
23
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
24
Households
100.0
0.9
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25
of which loans collateralised by residential
immovable property
100.0
1.2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
26
of which building renovation loans
100.0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27
of which motor vehicle loans
100.0
0.8
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
82.8
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32
Total GAR assets
21.1
6.4
1.8
0.0
1.5
0.2
0.0
-
0.0
-
-
-
-
0.0
-
-
-
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
136
|
Page
€ = Euro m = million bn = billion
4. GAR KPI flow - Capex
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
% (compared to flow of total eligible assets)
31 December 2024
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total
assets covered
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
0.3
-
-
-
-
-
-
-
67.9
20.8
5.8
0.1
4.8
31.3
2
Financial corporations
-
-
-
-
-
-
-
-
19.9
2.0
-
0.2
0.1
5.0
3
Credit institutions
-
-
-
-
-
-
-
-
19.9
2.0
-
0.2
0.1
5.0
4
Loans and advances
-
-
-
-
-
-
-
-
1.8
1.2
-
-
-
0.0
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
20.1
2.0
-
0.2
0.2
5.0
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
7
Other financial corporations
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
0.5
-
-
-
-
-
-
-
60.6
41.2
12.0
0.2
9.8
15.3
21
Loans and advances
0.5
-
-
-
-
-
-
-
60.6
42.7
13.3
0.1
9.2
13.8
22
Debt securities, including UoP
1.2
-
-
-
-
-
-
-
60.4
27.0
-
0.3
15.3
1.5
23
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
24
Households
-
-
-
-
-
-
-
-
100.0
0.9
-
-
-
11.0
25
of which loans collateralised by residential
immovable property
-
-
-
-
-
-
-
-
100.0
1.2
-
-
-
7.9
26
of which building renovation loans
-
-
-
-
-
-
-
-
100.0
-
-
-
-
1.4
27
of which motor vehicle loans
-
-
-
-
-
-
-
-
100.0
0.8
-
-
-
1.3
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
82.8
-
-
-
-
0.1
32
Total GAR assets
0.1
-
-
-
-
-
-
-
21.3
6.5
1.8
0.0
1.5
100.0
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5. KPI off-balance sheet exposures- Stock- Turnover
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
% (compared to total eligible off -balance
sheet assets)
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
eligible)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -eligible)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant
sectors (Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant
sectors (Taxonomy -aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
1
Financial guarantees (FinGuar KPI)
12.0
4.6
-
0.0
0.4
2.1
0.1
-
0.1
-
-
-
-
0.1
-
-
-
2
Assets under management
7.7
1.1
-
0.1
0.3
0.5
0.0
-
0.0
0.0
-
-
-
0.0
-
-
-
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
% (compared to total eligible off -balance
sheet assets)
31 December 2024
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -eligible)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy -eligible)
Proportion of total covered assets
funding taxonomy relevant
sectors (Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant
sectors (Taxonomy -aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
1
Financial guarantees (FinGuar KPI)
0.0
-
-
-
-
-
-
-
14.2
4.7
-
0.0
0.5
2
Assets under management
0.1
-
-
-
0.0
-
-
-
8.3
1.1
-
0.1
0.3
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5. KPI off-balance sheet exposures- Stock- Capex
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
% (compared to total eligible off -balance
sheet assets)
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
eligible)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -eligible)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant
sectors (Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant
sectors (Taxonomy -aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
1
Financial guarantees (FinGuar KPI)
24.7
15.6
-
0.1
1.5
0.9
0.1
-
1.5
-
-
-
-
0.1
-
-
-
2
Assets under management
11.0
2.8
-
0.3
0.7
0.2
0.0
-
0.0
0.0
-
-
-
0.0
-
-
-
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
% (compared to total eligible off -balance
sheet assets)
31 December 2024
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -eligible)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy -eligible)
Proportion of total covered assets
funding taxonomy relevant
sectors (Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant
sectors (Taxonomy -aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
1
Financial guarantees (FinGuar KPI)
0.0
-
-
-
-
-
-
-
25.7
15.7
-
0.1
3.0
2
Assets under management
0.1
-
-
-
0.0
-
-
-
11.5
2.9
-
0.3
0.7
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5. KPI off-balance sheet exposures- Flow- Turnover
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
% (compared to total eligible off -balance
sheet assets)
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
eligible)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -eligible)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant
sectors (Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant
sectors (Taxonomy -aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
1
Financial guarantees (FinGuar KPI)
5.2
1.8
-
0.0
0.3
1.6
0.0
-
-
-
-
-
-
0.0
-
-
-
2
Assets under management
22.8
3.2
-
0.2
1.2
1.5
0.1
-
0.0
0.0
-
-
-
0.5
-
-
-
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
% (compared to total eligible off -balance
sheet assets)
31 December 2024
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -eligible)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy -eligible)
Proportion of total covered assets
funding taxonomy relevant
sectors (Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant
sectors (Taxonomy -aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
1
Financial guarantees (FinGuar KPI)
0.0
-
-
-
0.0
-
-
-
6.8
1.8
-
0.0
0.3
2
Assets under management
0.2
-
-
-
0.0
-
-
-
25.1
3.3
-
0.2
1.2
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5. KPI off-balance sheet exposures- Flow- Capex
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
% (compared to total eligible off -balance
sheet assets)
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
eligible)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -eligible)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant
sectors (Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant
sectors (Taxonomy -aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
1
Financial guarantees (FinGuar KPI)
12.2
6.9
-
0.1
1.3
0.2
0.0
-
-
-
-
-
-
-
-
-
-
2
Assets under management
34.4
9.0
-
0.9
2.4
0.6
0.1
-
0.0
0.0
-
-
-
0.2
-
-
-
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
% (compared to total eligible off -balance
sheet assets)
31 December 2024
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -eligible)
Proportion of total covered assets
funding taxonomy relevant sectors
(Taxonomy -eligible)
Proportion of total covered assets funding taxonomy relevant
sectors (Taxonomy -eligible)
Proportion of total covered assets
funding taxonomy relevant
sectors (Taxonomy -aligned)
Proportion of total covered assets
funding taxonomy relevant
sectors (Taxonomy -aligned)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
1
Financial guarantees (FinGuar KPI)
0.0
-
-
-
0.0
-
-
-
12.5
6.9
-
0.1
1.3
2
Assets under management
0.1
-
-
-
0.0
-
-
-
35.5
9.2
-
0.9
2.4
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Template 1 Nuclear and fossil gas related activities for 2024
Row
Nuclear energy related activities
1.
The undertaking carries out, funds or has exposures to research, development, demonstration and
deployment of innovative electricity generation facilities that produce energy from nuclear
processes with minimal waste from the fuel cycle.
YES
2.
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity or process heat,
including for the purposes of district heating or industrial processes such as
hydrogen production, as well as their safety upgrades, using best available
technologies.
YES
3.
The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process heat, including for the
purposes of district heating or industrial processes such as hydrogen production
from nuclear energy, as well as their safety upgrades.
YES
Fossil gas related activities
4.
The undertaking carries out, funds or has exposures to construction or operation
of electricity generation facilities that produce electricity using fossil gaseous
fuels
YES
5.
The undertaking carries out, funds or has exposures to construction, refurbishment,
and operation of combined heat/cool and power generation facilities using fossil
gaseous fuels.
YES
6.
The undertaking carries out, funds or has exposures to construction, refurbishment
and operation of heat generation facilities that produce heat/cool using fossil gaseous
fuels.
YES
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Turnover KPI Tables for 2024
Template 2 - Taxonomy -aligned economic activities (denominator)
Row
Economic activities
Amount (in Million EUR) and proportion
(the information is to be presented in monetary amounts and as
percentages)
(CCM + CCA)
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
0
0.0
0
0.0
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
3
0.0
3
0.0
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
110
0.2
110
0.2
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
-
-
-
-
-
-
5.
Amount and proportion of taxonomy-aligned economic activity EN 3 EN
referred to in Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
2
0.0
1
0.0
1
0.0
6.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of
the applicable KPI
1,793
2.5
1,791
2.5
2
0.0
8.
Total applicable KPI
1,908
2.6
1,905
2.6
3
0.0
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Template 3 -Taxonomy -aligned economic activities (numerator)
Row
Economic activities
Amount (in Million EUR) and proportion
(the information is to be presented in monetary amounts and as
percentages)
(CCM + CCA)
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139
in the numerator of the applicable KPI
0
0.0
0
0.0
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
3
0.2
3
0.2
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
110
5.8
110
5.8
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
-
-
-
-
-
-
5.
Amount and proportion of taxonomy-aligned economic activity EN 3 EN
referred to in Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
2
0.1
1
0.0
1
0.1
6.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of
the applicable KPI
1,793
94.0
1,791
93.9
2
0.1
8.
Total amount and proportion of taxonomy-aligned economic
activities in the numerator of the applicable KPI
1,908
100.0
1,905
99.8
3
0.2
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Template 4 - Taxonomy -eligible but not taxonomy-aligned economic activities
Row
Economic activities
Amount (in Million EUR) and proportion
(the information is to be presented in monetary amounts and as
percentages)
(CCM + CCA)
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
1
0.0
1
0.0
-
-
2.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
9
0.0
9
0.0
-
-
3.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
11
0.0
7
0.0
-
-
4.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
176
0.2
164
0.2
-
-
5.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
94
0.1
60
0.1
1
0.0
6.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.31 of Annexes I and II to
Delegated EN 6 EN Regulation 2021/2139 in the denominator of the
applicable KPI
1
0.0
1
0.0
-
-
7.
Amount and proportion of other taxonomy-eligible but not taxonomy-
aligned economic activities not referred to in rows 1 to 6 above in the
denominator of the applicable KPI
15,593
21.4
15,523
21.3
119
0.2
8.
Total amount and proportion of taxonomy eligible but not taxonomy-
aligned economic activities in the denominator of the applicable KPI
15,885
21.8
15,765
21.7
120
0.2
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Template 5 - Taxonomy non-eligible economic activities
Row
Economic activities
Amount
(in Million
EUR)
%
1.
Amount and proportion of economic activity referred to in row 1 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
2.
Amount and proportion of economic activity referred to in row 2 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
3.
Amount and proportion of economic activity referred to in row 3 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
4.
Amount and proportion of economic activity referred to in row 4 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
5.
Amount and proportion of economic activity referred to in row 5 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of EN 7 EN the applicable KPI
-
-
6.
Amount and proportion of economic activity referred to in row 6 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
7.
Amount and proportion of other taxonomy-non-eligible economic
activities not referred to in rows 1 to 6 above in the denominator of
the applicable KPI
54,970
75.5
8.
Total amount and proportion of taxonomy-non-eligible economic
activities in the denominator of the applicable KPI
54,970
75.5
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CapexKPI Tables for 2024
Template 2 - Taxonomy -aligned economic activities (denominator)
Row
Economic activities
Amount (in Million EUR) and proportion
(the information is to be presented in monetary amounts and as
percentages)
(CCM + CCA)
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
0.01
-
0.01
-
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
60
0.1
60
0.1
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
26
0.0
26
0.0
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
12.54
0.0
12.54
0.0
-
-
5.
Amount and proportion of taxonomy-aligned economic activity EN 3 EN
referred to in Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
0.00
-
0.00
-
-
-
6.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of
the applicable KPI
2,561
3.5
2,555
3.5
5
0.0
8.
Total applicable KPI
2,658
3.7
2,653
3.6
5
0.0
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Template 3 -Taxonomy -aligned economic activities (numerator)
Row
Economic activities
Amount (in Million EUR) and proportion
(the information is to be presented in monetary amounts and as
percentages)
(CCM + CCA)
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139
in the numerator of the applicable KPI
0.0
0.0
0.0
0.0
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
60
2.2
60
2.2
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
26
1.0
26
1.0
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
12.5
0.5
12.5
0.5
-
-
5.
Amount and proportion of taxonomy-aligned economic activity EN 3 EN
referred to in Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
0.0
0.0
0.0
0.0
-
-
6.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of
the applicable KPI
2,561
96.3
2,555
96.1
5
0.2
8.
Total amount and proportion of taxonomy-aligned economic
activities in the numerator of the applicable KPI
2,658
100.0
2,653
99.8
5
0.2
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Template 4 - Taxonomy -eligible but not taxonomy-aligned economic activities
Row
Economic activities
Amount (in Million EUR) and Pproportion
percentages)
(CCM + CCA)
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
0
-
0
-
-
-
2.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
-
-
-
-
-
-
3.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
0
-
0
-
-
-
4.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
100
0.1
100
0.1
0
0.0
5.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
47
0.1
47
0.1
-
-
6.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.31 of Annexes I and II to
Delegated EN 6 EN Regulation 2021/2139 in the denominator of the
applicable KPI
1
0.0
1
0.0
-
-
7.
Amount and proportion of other taxonomy-eligible but not
taxonomy-aligned economic activities not referred to in rows 1 to 6
above in the denominator of the applicable KPI
16,527
22.7
16,471
22.6
55
0.1
8.
Total amount and proportion of taxonomy eligible but not taxonomy-
aligned economic activities in the denominator of the applicable KPI
16,675
22.9
16,619
22.8
55
0.1
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Template 5 - Taxonomy non-eligible economic activities
Row
Economic activities
Amount
(in Million
EUR)
%
1.
Amount and proportion of economic activity referred to in row 1 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
2.
Amount and proportion of economic activity referred to in row 2 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
3.
Amount and proportion of economic activity referred to in row 3 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
4.
Amount and proportion of economic activity referred to in row 4 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
5.
Amount and proportion of economic activity referred to in row 5 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of EN 7 EN the applicable KPI
-
-
6.
Amount and proportion of economic activity referred to in row 6 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
7.
Amount and proportion of other taxonomy-non-eligible economic
activities not referred to in rows 1 to 6 above in the denominator of
the applicable KPI
53,429
73.4
8.
Total amount and proportion of taxonomy-non-eligible economic
activities in the denominator of the applicable KPI
53,429
73.4
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1.Assets for the calculation of GAR - Turnover
Million EUR
Total [gross]
carrying
amount
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy -eligible)
Of which towards taxonomy relevant
sectors (Taxonomy -eligible)
Of which towards taxonomy relevant sectors (Taxonomy -eligible)
Of which environmentally
sustainable (Taxonomy -aligned)
Of which environmentally
sustainable (Taxonomy -aligned)
Of which environmentally sustainable (Taxonomy -aligned)
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which
enabling
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
GAR- Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments no HfT eligible for GAR calculation
2
Financial undertakings
3
Credit institutions
4
5
6
7
Other financial corporations
8
9
Loans and advances
10
Debt securities, including UoP
11
Equity instruments
12
of which management companies
13
14
15
16
of which insurance undertakings
17
Loans and advances
18
Debt securities, including UoP
19
Equity instruments
20
Non-financial undertakings
21
22
23
24
Households
25
of which loans collateralised by residential
immovable property
26
of which building renovation loans
27
of which motor vehicle loans
28
Local governments financing
29
Housing financing
30
Other local govemment financing
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
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1.Assets for the calculation of GAR - Turnover
Million EUR
Total [gross]
carrying
amount
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy -eligible)
Of which towards taxonomy relevant
sectors (Taxonomy -eligible)
Of which towards taxonomy relevant sectors (Taxonomy -eligible)
Of which environmentally
sustainable (Taxonomy -aligned)
Of which environmentally
sustainable (Taxonomy -aligned)
Of which environmentally sustainable (Taxonomy -aligned)
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which
enabling
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
32
Assets excluded from the numerator for GAR
calculation (covered in the denominator)
33
Financial and Non-financial undertakings
34
SMEs and NFCs (other than SMEs) not subject to
NFRD disclosure obligations
35
36
of which loans collateralised by commercial
immovable property
37
of which building renovation loans
38
39
40
Non-EU country counterparties not subject to
NFRD disclosure obligations
41
42
43
44
Derivatives
45
On demand interbank loans
46
Cash and cash-related assets
47
Other categories of assets (e.g. goodwill,
commodities etc.)
48
Total GAR assets
49
Assets not covered for GAR calculation
50
Central governments and Supranational
issuers
51
Central banks exposure
52
Trading book
53
Total assets
Off-balance sheet exposures -Undertakings subject to
NFRD disclosure obligations
54
Financial guarantees
55
Assets under management
56
Of which debt securities
57
Of which equity instruments
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1.Assets for the calculation of GAR - Capex
Million EUR
Total [gross]
carrying
amount
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy -eligible)
Of which towards taxonomy relevant sectors
(Taxonomy -eligible)
Of which towards taxonomy relevant sectors (Taxonomy -eligible)
Of which environmentally
sustainable (Taxonomy -aligned)
Of which environmentally sustainable
(Taxonomy -aligned)
Of which environmentally sustainable (Taxonomy-
aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which
enabling
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
GAR- Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity
instruments no HfT eligible for GAR calculation
2
Financial undertakings
3
Credit institutions
4
5
6
7
Other financial corporations
8
9
Loans and advances
10
Debt securities, including UoP
11
Equity instruments
12
of which management companies
13
14
15
16
of which insurance undertakings
17
Loans and advances
18
Debt securities, including UoP
19
Equity instruments
20
Non-financial undertakings
21
22
23
24
Households
25
of which loans collateralised by residential
immovable property
26
of which building renovation loans
27
of which motor vehicle loans
28
Local governments financing
29
Housing financing
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1.Assets for the calculation of GAR - Capex
Million EUR
Total [gross]
carrying
amount
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy -eligible)
Of which towards taxonomy relevant sectors
(Taxonomy -eligible)
Of which towards taxonomy relevant sectors (Taxonomy -eligible)
Of which environmentally
sustainable (Taxonomy -aligned)
Of which environmentally sustainable
(Taxonomy -aligned)
Of which environmentally sustainable (Taxonomy-
aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which
enabling
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
30
Other local govemment financing
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
32
Assets excluded from the numerator for GAR
calculation (covered in the denominator)
33
Financial and Non-financial undertakings
34
SMEs and NFCs (other than SMEs) not subject to
NFRD disclosure obligations
35
36
of which loans collateralised by commercial
immovable property
37
of which building renovation loans
38
39
40
Non-EU country counterparties not subject to
NFRD disclosure obligations
41
42
43
44
Derivatives
45
On demand interbank loans
46
Cash and cash-related assets
47
Other categories of assets (e.g. goodwill,
commodities etc.)
48
Total GAR assets
49
Assets not covered for GAR calculation
50
Central governments and Supranational
issuers
51
Central banks exposure
52
Trading book
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1.Assets for the calculation of GAR - Capex
Million EUR
Total [gross]
carrying
amount
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy -eligible)
Of which towards taxonomy relevant sectors
(Taxonomy -eligible)
Of which towards taxonomy relevant sectors (Taxonomy -eligible)
Of which environmentally
sustainable (Taxonomy -aligned)
Of which environmentally sustainable
(Taxonomy -aligned)
Of which environmentally sustainable (Taxonomy-
aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which
enabling
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
53
Total assets
Off-balance sheet exposures -Undertakings subject to
NFRD disclosure obligations
54
Financial guarantees
55
Assets under management
56
Of which debt securities
57
Of which equity instruments
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3. GAR KPI Stock - Turnover
% (compared to total covered assets in the
denominator)
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of
total assets
covered
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy -aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy -aligned)
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which enabling
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator
and denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
54.1
7.0
6.3
0.0
0.3
0.8
0.0
-
0.0
57.0
7.0
6.3
0.0
0.3
34.8
2
Financial corporations
0.4
0.2
-
0.0
0.0
0.2
-
-
-
18.4
0.2
-
0.0
0.0
4.2
3
Credit institutions
-
-
-
-
-
-
-
-
-
18.2
-
-
-
-
4.0
4
Loans and advances
-
-
-
-
-
-
-
-
-
17.1
-
-
-
-
1.6
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
19.0
-
-
-
-
2.4
6
Equity instruments
-
-
-
-
-
-
14.0
-
-
-
0.0
7
Other financial corporations
13.2
6.0
-
0.5
0.4
7.6
-
-
-
25.2
6.0
-
0.5
0.4
0.1
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
-
-
-
-
-
-
-
-
-
8.6
-
-
-
-
0.0
13
Loans and advances
-
-
-
-
-
-
-
-
-
8.2
-
-
-
-
0.0
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
11.9
-
-
-
0.0
16
of which insurance undertakings
-
-
-
-
-
-
-
-
-
16.6
-
-
-
-
0.0
17
Loans and advances
-
-
-
-
-
-
-
-
-
8.2
-
-
-
-
-
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3. GAR KPI Stock - Turnover
% (compared to total covered assets in the
denominator)
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of
total assets
covered
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy -aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy -aligned)
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which enabling
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
16.6
-
-
-
-
0.0
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
35.8
28.
6
25.7
0.2
1.2
3.3
0.2
-
0.0
39.1
28.
8
25.7
0.2
1.2
8.3
21
Loans and advances
38.8
32.1
30.1
0.1
1.3
2.2
0.0
-
-
41.0
32.1
30.1
0.1
1.3
7.1
22
Debt securities, including UoP
17.5
7.9
-
0.9
0.7
10.0
1.3
-
0.1
27.5
9.2
-
0.9
0.8
1.2
23
Equity instruments
50.6
1.3
-
0.2
0.9
-
-
51.5
1.3
-
0.2
0.0
24
Households
71.0
0.3
0.3
-
-
-
-
-
-
71.0
0.3
0.3
-
-
22.4
25
of which loans collateralised by residential
immovable property
100.0
-
-
-
-
-
-
-
-
100.0
-
-
-
-
15.2
26
of which building renovation loans
100.0
100.
0
100.0
-
-
-
-
-
-
100.0
100.
0
100.0
-
-
0.1
27
of which motor vehicle loans
100.0
-
-
-
-
100.0
-
-
-
-
0.6
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
100.0
-
-
-
-
-
-
-
-
100.0
-
-
-
-
1.0
32
Total GAR assets
19.8
2.4
2.2
0.0
0.1
0.3
0.0
-
0.0
20.9
2.5
2.2
0.0
0.1
100.0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
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€ = Euro m = million bn = billion
3. GAR KPI Stock - Capex
% (compared to total covered assets in the
denominator)
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of
total assets
covered
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy -aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy -aligned)
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator
and denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
59.2
9.9
6.3
0.1
0.4
1.6
0.0
-
0.0
62.9
9.9
6.3
0.1
0.4
34.8
2
Financial corporations
0.8
0.7
-
0.0
0.0
0.2
-
-
-
18.7
0.7
-
0.0
0.0
4.2
3
Credit institutions
-
-
-
-
-
-
-
-
-
18.2
-
-
-
-
4.0
4
Loans and advances
-
-
-
-
-
-
-
-
-
17.1
-
-
-
-
1.6
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
19.0
-
-
-
-
2.4
6
Equity instruments
-
-
-
-
-
-
-
14.0
-
-
-
0.0
7
Other financial corporations
26.9
25.9
-
1.5
0.6
5.7
-
-
-
37.0
25.9
-
1.5
0.6
0.1
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
-
-
-
-
-
-
-
-
-
8.6
-
-
-
-
0.0
13
Loans and advances
-
-
-
-
-
-
-
-
-
8.2
-
-
-
-
0.0
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
11.9
-
-
-
0.0
16
of which insurance undertakings
-
-
-
-
-
-
-
-
-
16.6
-
-
-
-
0.0
17
Loans and advances
-
-
-
-
-
-
-
-
-
8.2
-
-
-
-
-
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
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€ = Euro m = million bn = billion
3. GAR KPI Stock - Capex
% (compared to total covered assets in the
denominator)
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy -eligible)
Proportion of total covered assets funding taxonomy
relevant sectors (Taxonomy -eligible)
Proportion of
total assets
covered
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy -aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered assets funding
taxonomy relevant sectors (Taxonomy -aligned)
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
16.6
-
-
-
-
0.0
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
57.0
40.
4
25.7
0.5
1.6
6.6
0.1
-
0.0
63.6
40.
5
25.7
0.5
1.6
8.3
21
Loans and advances
58.3
42.2
30.1
0.1
1.6
5.8
0.0
-
-
64.0
42.3
30.1
0.1
1.6
7.1
22
Debt securities, including UoP
49.6
29.9
-
2.9
1.5
11.4
0.8
-
0.1
61.0
30.8
-
2.9
1.5
1.2
23
Equity instruments
50.9
9.5
-
0.2
1.2
-
-
52.1
9.5
-
0.2
0.0
24
Households
71.0
0.3
0.3
-
-
-
-
-
-
71.0
0.3
0.3
-
-
22.4
25
of which loans collateralised by residential
immovable property
100.0
-
-
-
-
-
-
-
-
100.0
-
-
-
-
15.2
26
of which building renovation loans
100.0
100.
0
100.0
-
-
-
-
-
-
100.0
100.
0
100.0
-
-
0.1
27
of which motor vehicle loans
100.0
-
-
-
-
100.0
-
-
-
-
0.6
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
100.0
-
-
-
-
-
-
-
-
100.0
-
-
-
-
1.0
32
Total GAR assets
21.6
3.4
2.2
0.0
0.1
0.6
0.0
-
0.0
22.9
3.5
2.2
0.0
0.1
100.0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
AUDIT COMMITTEE ACTIVITY REPORT
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AUDIT COMMITTEE ACTIVITY REPORT FOR THE YEAR 2024
Purpose
1.
In accordance with the Law 4449/2017 as amended, the Audit Committee (AC) of Eurobank Ergasias Services and
Holdings S.A. (Eurobank Holdings or HoldCo or Company) should submit an annual report to the Shareholders’ Annual
General Meeting on the issues dealt with by the AC during the previous year, also including therein a description of the
sustainability policy followed by the entity.
2.
The current 2024 AC Activity Report of Eurobank Holdings which is also part of the 2024 Annual Financial Report, refers
to the AC activity during 2024 and the issues addressed. In addition, it describes Eurobank Holdings’ sustainability policy.
3.
No deviations from the AC’s Terms of Reference (ToR) have been identified.
AC Composition / Membership
4.
It is noted that in line with the provisions of article 44 of law 4449/2017, as in force, and further to the decision of the
HoldCo’s Annual General Meeting of Shareholders as of 23.07.2024 regarding the recomposition of the Audit Committee
and more specifically regarding its type, composition and term of office; and the BoD’s decision of 23.07.2024 regarding
the membership of the AC, following the relevant recommendations by the Nomination and Corporate Governance
Committee (NomCo) of 28.05.2024 and 26.06.2024, the AC decided on its constitution and on the appointment of its
Chairman.
5.
Following the above, the AC consists exclusively of BoD members, five (5) in total, all of which are independent non-
executive Directors, according to the provisions of article 9 of L. 4706/2020. In particular, the AC consists of the following
members: 1. Burkhard Eckes (Chairperson of the Audit Committee, independent non-executive BoD member), 2. Jawaid
Mirza (Vice -Chairperson of the Audit Committee, independent non-executive BoD member), 3. Irene Rouvitha-Panou
(Audit Committee member, independent non-executive BoD member), 4. Rajeev Kakar (Audit Committee member,
independent non-executive BoD member), and 5. Alice Gregoriadi (Audit Committee member, independent non-
executive BoD member).
6.
All AC members have sufficient knowledge in the field of HoldCo activities and the necessary skills and experience to
carry out their duties and meet the requirement of established knowledge and experience in auditing and/or accounting.
7.
Information regarding current AC composition and short biographical details of its members may be found at the
HoldCo’s website (www.eurobankholdings.gr).
Meetings Held During the Period & Attendance
8.
During 2024, the Audit Committee held fifteen (15) meetings, while during 2023, the Audit Committee held seventeen (17)
meetings, including four (4) meetings by circulation.
9.
The average ratio of attendance at the meetings by the AC members stood at 97% (2023: 100%). The AC members
provided proxies for all missed AC meetings, they were eligible to attend.
10.
The quarterly meetings were attended in person and the rest were held via conference calls. This practice is allowed by
the AC ToR and is consistent across all HoldCo’s BoD Committees.
11.
The submissions for the AC meetings have become available to all BoD members through the Diligent platform.
12.
The BoD Chair has regularly attended the AC meetings. In addition, all meetings were attended by the Internal Audit
(IA), while the General Manager of Group Compliance was attending the meetings depending on the subject under
discussion.
13.
The External Auditor of 2023 and 2024 financial statements (i.e. KPMG) has been invited and attended meetings as
required.
14.
The AC Chair updated the Board members, at the quarterly meetings of the Board, on the material matters covered
during the AC meetings.
15.
In 2024, the members of the AC have been invited and participated in the Board Risk Committee (BRC) meetings and
similarly the members of the BRC have been invited and participated in the Audit Committee meetings (joint Audit
Committee and Board Risk Committee meetings) for the discussion / approval of items that fall under the responsibility
of both Committees. More specifically, at the BRC meetings that the AC members have participated, among others,
accounting policies (including hedge accounting policy), progress reports for the Corporate Sustainability Report
Directive (CSRD) Program Implementation, various risks, (including non-financial risks, climate related and environmental
related risks) and the Environmental and Social Governance (ESG) Strategy have been discussed.
16.
The AC Chair had regular private meetings with the Head of Internal Audit, Head of Group Compliance and Group CFO
as well as the External Auditors.
17.
The AC Chair informed the AC on his meeting with the JST.
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
AUDIT COMMITTEE ACTIVITY REPORT
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Highlights of Issues of Importance during 2024
Internal Controls System and Risk Management
18.
The AC, in accordance with its Terms of Reference, reviews the adequacy of the Internal Control and Risk Management
systems and the compliance with rules and regulations of the monitoring process.
19.
In the context of the Independent Evaluation of the System of Internal Controls:
●
During 1Q 2024 AC meeting, the AC discussed and further submitted to the Board Risk Committee (BRC) and
BoD for acknowledgement, the independent triennial Evaluation of the System of Internal Controls (SIC) per
BoG Act 2577/9.3.2006 conducted by Grant Thornton (Independent Evaluation). The Independent Evaluation
along with AC’s assessment on the evaluation were submitted to Bank of Greece (BoG) as required.
It is noted that no findings of High significance were identified during the assessment, that would fall in the category “Key
Findings” to be reported to the BoG.
●
Moreover, at the same AC meeting, the AC discussed the additional work performed by Grant Thornton, in the
context of the evaluation of the adequacy of the Internal Control System (ICS), following the identification of
the need to assess the regulatory compliance risk management, in the context of a) clarity of responsibilities
between different Bank Units within the 3 Lines of Defense Model and b) the consistency of governance and
aggregation of regulatory compliance risk at the Board of Directors level.
It is noted that the expanded assessment did not reveal any recommendations for improvement.
20.
Further to the above, throughout the year 2024:
●
the AC Members received update by IA and Compliance and other Bank Units as required, covering matters of
the System of Internal Controls, Risk Management, Compliance with rules and regulations and legal issues.
●
significant weaknesses in internal controls and the progress of actions taken to address them, were presented
in the Internal Audit Activity Report and several pending issues (including External Auditors’ Management Letter)
were discussed with Management and the AC ensured that the time plans and deadlines will be followed up.
●
the AC acknowledged the annual Internal Audit Evaluation Report of the System of Internal Controls, a
requirement of the Bank of Greece Act 2577/9.3.2006. The said report along with the AC’s own assessment of
the evaluation was further submitted to the BoD and subsequently to BoG in June 2024.
●
the AC reviewed and submitted to the BoD for approval the revised Related Party Transactions Policy.
●
in accordance with the provisions of Law 2533/1997, the AC reviewed reports on substantial stock transactions
performed by the Company’s Directors and General Managers in listed securities and notified the Board.
Internal Audit (IA)
21.
The Internal Audit (IA) function of HoldCo is independent (Internal Audit has a functional reporting line to the AC and a
dotted reporting line for administrative matters to the CEO), adequately organized, has unrestricted access to any
pertinent information and operates efficiently and effectively in compliance with the Standards of the Institute of Internal
Auditors.
22.
During 2024, the AC:
●
received confirmation from the Chief Internal Auditor (CIA) regarding IA’s independence for 2023.
●
discussed the performance of the IA Annual Plan for 2023.
●
Received information on the IA Medium term plan 2024-2026.
●
approved and further submitted to the BoD for information the 2025 IA Annual Plan for and the 3-year Audit
Plan (2025-2027).
●
monitored the progress of the IA Audit Plan for 2024 through the Activity Reports.
●
at the Quarterly AC meetings, discussed the key highlights of the IA Activity Reports (including the follow -up of
the external auditors’ Management Letter points).
●
Discussed the progress of the actions for the resolution of IA findings.
●
Carried out the assessment of the Internal Auditor’s performance for 2023.
Compliance
23.
The Compliance of HoldCo is a permanent and independent function (the Head of Compliance reports functionally to
the AC and for administrative purposes to the CEO of Holdings) adequately organized, has unrestricted access to any
pertinent information and operates efficiently and effectively.
24.
During 2024, the AC:
●
reviewed and approved the Compliance Mandate.
●
approved and further submitted to the BoD for information the 2025 Compliance Annual Plan.
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
AUDIT COMMITTEE ACTIVITY REPORT
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●
at the Quarterly AC meetings, discussed the key highlights of the Compliance Activity Reports, including the
progress of the 2024 Compliance Annual Plan.
●
discussed and further submitted to the BoD for discussion the Ethics Hotline Reports received during 2023.
●
reviewed and depending on the case, ratified, approved or approved and further submitted to the BoD for
approval / information a) the revised MiFID II Product Governance Policy, b) the Group Anti-trust Compliance
Policy, c) the revised Policy for Reporting Illegal or Unethical Conduct or Violations of European Union Law, d)
the revised Anti-Bribery and Corruption Policy, e) the Policy for the Prevention and Detection of Market Abuse,
f) the Insider Dealing Guideline, g) the revised Conflict of Interest Policy, h) the revised Code of Conduct and
Ethics.
●
In the context of the Policy for Reporting Illegal or Unethical Conduct or Violations of European Union Law
(mentioned above), approved and further submitted to the BoD for approval the Report Receiving & Monitoring
Officer (RRMO) and the assistant RRMO.
●
In line with the BoG requirements, received the Annual Group Compliance Report as per BoG Act 2577/9.3.2006
(including MiFID report) for acknowledgement. The said report along with the AC’s assessment was further
submitted to the BoD and subsequently to the BoG in June 2023.
●
Carried out the assessment of the performance of the Head of Compliance for 2023.
Financial reporting
25.
The AC, in accordance with its Terms of Reference, monitors the financial reporting process and submits
recommendations and proposals to ensure its integrity. In addition, it supervises and assesses whether the internal
controls related to financial reporting are adequate and effective and that these controls are adjusted to reflect any
major changes in the risk profile of Holdings.
26.
During the AC meetings in 2024:
●
the AC, among others, reviewed and approved the quarterly results, semi-annual and annual Accounts and
Financial Statements, Annual General Meeting (AGM) matters and matters of the External auditors. In addition,
the AC reviewed and proposed to the BoD for approval the Consolidated Pillar III report.
●
Group Finance made presentations on issues such as accounting policies, critical accounting estimates,
significant one-off items impacting the Financial Statements, major variations between periods, important
disclosures, significant issues with tax authorities, as well as Group Control issues.
●
Group Legal Services presented the Outstanding Significant Litigations and Provisions.
●
IA performed a high level review of material submitted to the AC for the clearance of the financial results and
reported significant items to the AC Chairman for his attention.
●
with regards to the monitoring of the Actual vs Budget Report, the AC received quarterly updates by Group
Finance which were subsequently submitted to the BoD for discussion.
●
The AC discussed Group Finance’s planned steps to improve its reporting process (increased international
subsidiaries oversight) as requested by the SSM.
External Auditors
27.
The AC, in accordance with its Terms of Reference, is responsible for the selection, performance and independence of
the External Auditors, KPMG. In addition, the AC reviews the scope of audit work and audit approach and assesses the
process for identifying and responding to key audit and internal control risks.
28.
During the AC meetings in 2024:
●
KPMG presented its 2024 Audit Plan to the AC. The AC has also, in line with its ToR, reviewed the Engagement
letter for the 2024 Statutory Audit of the Company.
●
KPMG presented and discussed with the AC members a summary of audit work done, major findings, including
a summary of unadjusted differences, and other issues of importance.
29.
The AC has received the 2023 KPMG Management Letter (ML) and has discussed the issues raised with KPMG and
Management.
30.
The annual assessment of the External Auditors for the 2023 audit was discussed by the AC members and Management.
At the same AC meeting, the AC decided to propose to the BoD for approval and subsequent recommendation to the
Annual General Meeting of shareholders for approval, the reappointment of KPMG as statutory auditors for the separate
and consolidated Financial Statements of Eurobank Holdings for the financial year of 2024.
31.
The AC has discussed and approved the Global Group Audit and assurance Fees of 2024.
32.
The AC has received the External Auditors’ Independence written confirmation, while it monitored the independence of
the External Auditors through the Auditors independence monitoring tool submitted quarterly by Group Finance,
depicting the value of non-audit services provided as compared to the limits set by the Group External Auditor’s
Independence Policy that was also updated during 2024.
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
AUDIT COMMITTEE ACTIVITY REPORT
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33.
In line with the Group External Auditor’s Independence Policy, the AC in 2024 reviewed and approved all non-audit
services including the audit assurance related work, ensuring that the independence limits are complied with. Among the
non-audit services reviewed and approved, the following services, exceeding €50k, were included: a) Fairfax Financial
Holdings (FFH) annual requirement on the reconciliation of IFRS consolidated Total Equity and Profit & Loss to U.S. GAAP,
for the year ending 31.12.2023, b) Engagement of KPMG by Eurobank Cyprus for advisory services to support with
transitioning to the Capital Requirements Regulation (CRR) III framework c) engagement of KPMG Cyprus by Hellenic
Bank for the provision of advisory services for the development of a decarbonization strategy and additional scope for
Climate Environmental (CE) Risks Action Plan and d) engagement of KPMG for Sales training to the Eurobank’s Retail
Banking Networks’ employees.
34.
The AC reviewed the services assigned to the Big Audit Firms in 2023 vs 2024.
35.
The AC met with the External Auditors (with and without Management’s presence) to discuss issues related to the audit,
in addition to any significant issues related to the External Auditors’ audit plan.
36.
The AC reviewed the External Auditor’s Report and the Report on Key Audit Issues.
37.
The AC reviewed and approved the updated External Auditors Tendering Policy and Procedure.
38.
The AC reviewed the services assigned to the Big Audit Firms in 2023 vs 2024.
39.
The AC reviewed a) the eligibility of audit firms for the statutory audit vs IT delivery sourcing for strategic IT projects and
b) the 5-yr rolling plan (for years 2025-2029) on the eligibility of audit firms for the statutory audit of Eurobank Ergasias
Services and Holdings Group and the potential conflict of interest situations with eligible audit firms, based on Greek
Law 4449/17 and EU Reg 537/14, considering also requirements of the International Code of Ethics for Professional
Accountants of the International Ethics Standards Board for Accountants (IESBA).
40.
The AC initiated the External Auditor’s tendering process for the Group statutory audit of 2027. in relation to this, the
AC, during the internal independence assessment process, a) approved External Auditor's tendering time-plan, b)
reviewed and approved the eligible audit firms, the eligibility criteria as well as information for each of the short-listed
eligible audit firms supporting their eligibility and the initial letter Request for Independence (RfI) as sent to the eligible
audit firms and c) reviewed and approved statements of independence of the two (2) eligible audit firms and the
“Request for Proposal [RfP]” (invitation to tender) as sent to the short-listed eligible audit firms.
41.
The AC discussed with the external auditor the accounting process for the integration with Hellenic Bank (step up
acquisition accounting).
42.
The AC discussed the provision of limited assurance review by the external auditors for the CSRD reporting.
AC’s Evaluation
43.
The AC’s performance is evaluated annually according to the provisions of HoldCo’s Board and Board Committees
Evaluation Policy. According to the AC’s 2024 self-evaluation, the AC members expressed satisfaction with the
committee’s structure, effectiveness and leadership. They commented on the AC's efficient use of time and scheduling
and the well-structuring meetings, ensuring critical issues are addressed efficiently and effectively. The Chairperson of
the AC was praised for his ability to ensure continuity and strong guidance during the transition and to encourage critical
discussions and inclusive participation.
44.
However, the evaluation identified areas for improvement, notably the need for better collaboration between AC and
BRC on overlapping responsibilities and enhanced oversight of external auditors. There were also calls for better
alignment with evolving regulatory requirements and enhanced oversight of subsidiaries and emerging risks such as
cybersecurity and compliance.
Other AC Matters
45.
The AC has reviewed and proposed to the BoD for approval its Terms of Reference.
46.
The AC has approved and notified the Board for further submission to the Annual General Meeting, the annual Activity
Report for 2023.
47.
The AC has discussed its annual Plan for 2025.
Sustainability Overview
48.
Eurobank Holdings supports the transition towards a sustainable economy and considers sustainability and climate
change as an opportunity. A key strategic objective is to adapt its business and operation in a way that addresses
climate change challenges, accommodates social needs within its business model and safeguards prudent governance
for itself and its counterparties, in accordance with supervisory initiatives, and following international standards/ best
practice. Adopting a strategic approach for the management of risks and the identification of opportunities in relation
to sustainability and climate change, the Bank follows, and accelerates where possible, a detailed roadmap prioritizing
actions for the effective management of sustainability and climate-related & environmental (CR&E) risks in alignment
with the supervisory expectations included at the ECB Guide on Climate-Related and Environmental Risks. The IA is
informed and follows up on the Climate Risk Roadmap, which has been agreed with the supervisor. The respective
developments are considered in IA risk-based audit approach. In this respect IA issued in 2024 one consulting assignment
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
AUDIT COMMITTEE ACTIVITY REPORT
5
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report (Pillar III disclosures on ESG risks) and one assurance assignment report (Review of C&E Risk Management
Framework), for which the AC was also informed through IA activity report.
49.
Eurobank Holdings, during 2024, has updated its Sustainability Governance structure by introducing and defining
specific roles and responsibilities to further support the roll-out of the Sustainability Strategy and the integration of
Sustainability risks, through the involvement of various key stakeholders, embedding regulatory guidelines and market
practices within the 3 Lines of Defense. To this end, Eurobank Holdings in 2024 appointed its Group Senior Sustainability
Officer (GSSO) to lead and coordinate sustainability initiatives for both operational and financed impact, reporting
directly to the senior management and Board for sustainability matters. GSSO manages the Group Sustainability Unit,
co-manages, as a secondary reporting line, the Group Sustainability Risk along with the Senior Risk Executive Officer
(primary reporting line). The AC for the year 2024, through the monthly joined meetings with the BRC, has been informed
(and contributed) by the GSSO and/or the Senior Risk Executive Officer and/or the Head of the Group Sustainability Risk
for a significant number of topics as stated below:
-
Monthly monitoring of CSRD reporting project progress (4 sessions during 2024)
-
Semi-annual update by the responsible BoD member for climate-related and environmental risks
-
Hellenic Bank’s status on management of sustainability and climate-related & environmental (CR&E) risks
-
CR&E Risks' Materiality Assessment Key Updates
-
ERB Group Climate Risk Roadmap Progress Update
-
Key areas of the Group Climate Risk Stress Test Framework Update
………………….
Burkhard Eckes
AC Chairman
Athens, March 2025
CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2024
8 Othonos Str, Athens 105 57, Greece
eurobankholdings.gr, Tel.: (+30) 214 40 61000
General Commercial Registry No: 000223001000
.
.
Index to the Consolidated Financial Statements ........................................................................................................................ Page
Consolidated Balance Sheet ................................................................................................................................ ..................................... 1
Consolidated Income Statement ................................................................................................ .............................................................. 2
Consolidated Statement of Comprehensive Income ................................................................................................................................ 3
Consolidated Statement of Changes in Equity .......................................................................................................................................... 4
Consolidated Cash Flow Statement .......................................................................................................................................................... 5
Notes to the Consolidated Financial Statements
1. General information ................................................................................................ ........................................................................ 6
2. Basis of preparation and material accounting policies .................................................................................................................... 6
2.1 Basis of preparation ......................................................................................................................................................................... 6
2.2 Material accounting policies .......................................................................................................................................................... 10
3. Critical accounting estimates and judgments in applying accounting policies .............................................................................. 40
4. Capital Management ................................................................................................................................ ..................................... 49
5. Financial risk management and fair value ................................................................................................ ..................................... 52
5.2.1 Credit Risk ...................................................................................................................................................................................... 54
5.2.2 Market risk ................................................................................................................................................................ ..................... 88
5.2.3 Liquidity risk ................................................................................................................................................................ ................... 93
5.2.4 Sustainability risks ................................................................ ......................................................................................................... 96
5.3 Fair value of financial assets and liabilities .................................................................................................................................... 97
6. Net interest income ..................................................................................................................................................................... 101
7. Net banking fee and commission income .................................................................................................................................... 102
8. Income from non banking services .............................................................................................................................................. 103
9. Net trading income and gains less losses from investment securities ........................................................................................ 103
10. Other income/ (expenses) ........................................................................................................................................................... 104
11. Operating expenses ..................................................................................................................................................................... 105
12. Other impairments, risk provisions and restructuring costs ........................................................................................................ 106
13. Income tax ................................................................................................................................................................................... 106
14. Earnings per share ................................................................................................................................................................ ....... 110
15. Cash and balances with central banks ......................................................................................................................................... 111
16. Cash and cash equivalents and other information on cash flow statement ................................................................................ 112
17. Due from credit institutions ......................................................................................................................................................... 112
18. Securities held for trading................................................................ ............................................................................................ 113
19. Derivative financial instruments and hedge accounting.............................................................................................................. 113
20. Loans and advances to customers ............................................................................................................................................... 117
21. Impairment allowance for loans and advances to customers ..................................................................................................... 121
22. Investment securities ................................................................................................................................................................ ... 123
.
.
23. Group composition ...................................................................................................................................................................... 126
23.1 Shares in subsidiaries ................................................................................................................................................................ ... 126
23.2 Consolidation of Hellenic Bank group .......................................................................................................................................... 129
23.3 Initiation of the merger process between Eurobank Ergasias Services and Holdings S.A. and Eurobank S.A. ............................ 133
24. Investments in associates and joint ventures .............................................................................................................................. 134
25. Structured Entities ....................................................................................................................................................................... 136
26. Property and equipment ................................................................................................ ............................................................. 139
27. Investment property .................................................................................................................................................................... 140
28. Intangible assets .......................................................................................................................................................................... 142
29. Other assets ................................................................................................................................................................ ................. 143
30. Disposal groups classified as held for sale and discontinued operations .................................................................................... 143
31. Due to central banks .................................................................................................................................................................... 144
32. Due to credit institutions ............................................................................................................................................................. 145
33. Due to customers ................................................................................................................................................................ ......... 145
34. Debt securities in issue ................................................................................................................................................................ 145
35. Other liabilities ................................................................................................................................ ............................................ 147
36. Insurance contract (assets)/liabilities and reinsurance contract assets ...................................................................................... 148
37. Standard legal staff retirement indemnity obligations (SLSRI) and termination benefits ........................................................... 150
38. Share capital, share premium and treasury shares ................................ ..................................................................................... 151
39. Reserves and retained earnings ................................................................................................................................................... 153
40. Share options ................................................................................................................................................................ ............... 154
41. Transfers of financial assets ......................................................................................................................................................... 155
42. Leases ................................................................................................................................................................ .......................... 156
43. Contingent liabilities and other commitments ............................................................................................................................ 157
44. Operating segment information .................................................................................................................................................. 159
45. Post balance sheet events ................................................................................................................................ ........................... 164
46. Related parties ................................................................................................................................................................ ............. 164
47. External Auditors ................................................................................................................................................................ ......... 165
48. Board of Directors ................................................................................................................................................................ ........ 166
APPENDIX – Disclosures under Law 4261/2014 ................................................................ ................................................................... 167
Consolidated Balance Sheet
.
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31 December 2024 Consolidated Financial Statements
31 December
2024
2023
Note
€ million
€ million
ASSETS
Cash and balances with central banks
15
Due from credit institutions
17
Securities held for trading
18
Derivative financial instruments
19
Loans and advances to customers
20
Investment securities
22
Investments in associates and joint ventures
24
Property and equipment
26
Investment property
27
Intangible assets
28
Deferred tax assets
13
Other assets
29
Assets of disposal groups classified as held for sale
30
Total assets
LIABILITIES
Due to central banks
31
Due to credit institutions
32
Derivative financial instruments
19
Due to customers
33
Debt securities in issue
34
Other liabilities
35
Total liabilities
EQUITY
Share capital
38
Share premium
38
Reserves and retained earnings
39
Total equity
Total equity and liabilities
Notes on pages
6
166
Consolidated Income Statement
.
2
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31 December 2024 Consolidated Financial Statements
Year ended 31 December
2024
2023
Note
€ million
€ million
Interest income
Interest expense
(2,589 )
(2,280 )
Net interest income
6
Banking fee and commission income
Banking fee and commission expense
(144 )
(123 )
Net banking fee and commission income
7
Income from non banking services
8
Net trading income/(loss)
9
Gains less losses from investment securities
9
Other income/(expenses)
10
Operating income
Operating expenses
11
(1,099 )
(915 )
Profit from operations before impairments,
risk provisions and restructuring costs
Impairment losses relating to loans and
advances to customers
21
(303 )
(412 )
Other impairments, risk provisions and related costs
12
(60 )
(96 )
Restructuring costs
12
(168 )
(37 )
Share of results of associates and joint ventures
24
Profit before tax from continuing operations
Income tax
13
(361 )
(261 )
Net profit from continuing operations
Net loss from discontinued operations
30
(7 )
(153 )
Net profit
Net profit/(loss) attributable to non controlling interests
(12 )
Net profit attributable to shareholders
€
€
Earnings per share
-Basic earnings per share
14
-Diluted earnings per share
14
Earnings per share from continuing operations
-Basic and diluted earnings per share
14
Notes on pages
6
166
Consolidated Statement of Comprehensive Income
.
3
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31 December 2024 Consolidated Financial Statements
Year ended 31 December
2024
2023
€ million
€ million
Net profit
Other comprehensive income:
Items that are or may be reclassified subsequently to
profit or loss:
Cash flow hedges
- changes in fair value, net of tax
- transfer to net profit, net of tax
(22 )
(1 )
(21 )
(2 )
Debt securities at FVOCI
- changes in fair value, net of tax (note 22)
- transfer to net profit, net of tax (note 22)
(36 )
(104 )
Foreign currency translation
- foreign operations' translation differences
- transfer to net profit on the sale/liquidation of
foreign subsidiaries (note 23.1)
Associates and joint ventures
- changes in the share of other comprehensive
income, net of tax (note 24)
(9 )
(9 )
(4 )
(4 )
Items that will not be reclassified to profit or loss:
- Gains/(losses) from equity securities at
FVOCI, net of tax
(8 )
- Actuarial gains/(losses) on post employment
benefit obligations, net of tax
(2 )
(2 )
- Changes in the share of other comprehensive income of
associates and Joint ventures, net of tax
(9 )
Other comprehensive income
Total comprehensive income attributable to:
Shareholders
- from continuing operations
- from discontinued operations
(7 )
(15 )
Non controlling interests
- from continuing operations
- from discontinued operations
(11 )
Notes on pages
6
166
Consolidated Statement of Changes in Equity
.
4
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31 December 2024 Consolidated Financial Statements
Share
capital
Share
premium
Reserves and
retained
earnings
Non
controlling
interests
Total
€ million
€ million
€ million
€ million
€ million
Balance at 1 January 2023
Net profit/(loss)
(12 )
Other comprehensive income
Total comprehensive income for the
year ended 31 December 2023
(11 )
Changes in participating interest in subsidiaries
(83 )
(83 )
Share options plan
Purchase/sale of treasury shares
(100 )
(100 )
Other
(3 )
(3 )
(96 )
(83 )
(178 )
Balance at 31 December 2023⁽¹⁾
Balance at 1 January 2024
Net profit
Other comprehensive income
Total comprehensive income for
the year ended 31 December 2024
Dividends (note 39)
(342 )
(342 )
Consolidation of Hellenic Bank group (note 23.2)
Changes in participating interest/consolidation percentage in
subsidiaries
(134 )
(753 )
(887 )
Share options plan (note 40)
Purchase/sale and cancellation of treasury
shares (notes 38 and 39)
(12 )
(16 )
(9 )
(16 )
(426 )
(56 )
(507 )
Balance at 31 December 2024⁽¹⁾
Note 38
Note 38
Note 39
(1)
Notes on pages
6
166
Consolidated Cash Flow Statement
.
5
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Page
31 December 2024 Consolidated Financial Statements
Year ended 31 December
2024
2023
Note
€ million
€ million
Cash flows from continuing operating activities
Profit before income tax from continuing operations
Adjustments for :
Impairment losses relating to loans and advances to customers
21
Other impairments, risk provisions and restructuring costs
12
Depreciation and amortisation
11
Other (income)/losses οn investment securities
16
(123 )
(70 )
Valuation of investment property
10
(17 )
(6 )
Other adjustments
16
(253 )
(153 )
Changes in operating assets and liabilities
Net (increase)/decrease in cash and balances with central banks
(344 )
Net (increase)/decrease in securities held for trading
(260 )
Net (increase)/decrease in due from credit institutions
(447 )
Net (increase)/decrease in loans and advances to customers
(3,476 )
(1,517 )
Net (increase)/decrease in other assets
(18 )
Net (increase)/decrease in derivative financial instruments
(290 )
(62 )
Net increase/(decrease) in due to central banks and
credit institutions
(4,140 )
(3,637 )
Net increase/(decrease) in due to customers
Net increase/(decrease) in other liabilities
(286 )
(313 )
(1,707 )
(4,244 )
Income tax paid
(142 )
(64 )
Net cash from/(used in) continuing operating activities
(2,330 )
Cash flows from continuing investing activities
Acquisition of fixed and intangible assets
26,27,28
(197 )
(140 )
Proceeds from sale of fixed and intangible assets
26,27
(Purchases)/sales and redemptions of investment securities
(1,807 )
(1,287 )
Acquisition of subsidiaries, net of cash acquired
23
(440 )
Acquisition of holdings in associates and joint ventures, participations in capital increases
24
(284 )
(73 )
Disposal of subsidiaries, net of cash disposed
10,23,30
(425 )
Disposal/liquidation of holdings in associates and joint ventures
24
Dividends from investment securities, associates and
joint ventures
16,24
Net cash from/(used in) continuing investing activities
(2,314 )
Cash flows from continuing financing activities
(Repayments)/proceeds from debt securities in issue
16
Repayment of lease liabilities
42
(38 )
(40 )
Τransactions with non-controlling interests
(6 )
Dividends Paid
(342 )
(Purchase)/sale of treasury shares and exercise of share options
38
(99 )
Net cash from/(used in) continuing financing activities
Net increase/(decrease) in cash and cash equivalents from continuing operations
(3,735 )
Net cash flows from discontinued operating activities
Net cash flows from discontinued investing activities
Net cash flows from discontinued financing activities
(1 )
Effect of exchange rate changes on cash and cash equivalents
Net increase/(decrease) in cash and cash equivalents from discontinued operations
Cash and cash equivalents at beginning of year
16
Cash and cash equivalents at end of year
16
Notes on pages
6
166
Notes to the Consolidated Financial Statements
.
6
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31 December 2024 Consolidated Financial Statements
1. General information
(the Bank) and its subsidiaries (the Group), consisting mainly of Eurobank S.A. Group,
, with its registered office at
These consolidated financial statements, which include the Appendix, were approved by the Board of Directors on 7 March 2025. The
Independent Auditor’s Report of the Financial Statements is included in the section E.I of the Annual Financial Report.
The website address, where the annual financial statements of the consolidated non-listed Company’s subsidiaries are uploaded,
along with the independent Auditors’ reports and the Board of Directors’ Reports for these entities is: www.eurobankholdings.gr.
2. Basis of preparation and material accounting policies
The consolidated financial statements of the Group have been prepared on a going concern basis and in accordance with the material
accounting policies set out below:
2.1 Basis of preparation
The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting
Standards (IFRS) issued by the International Accounting Standards Board (IASB), as endorsed by the European Union (EU), and in
particular with those standards and interpretations, issued and effective or issued and early adopted as at the time of preparing these
consolidated financial statements.
The consolidated financial statements are prepared under the historical cost basis except for the financial assets measured at fair
value through other comprehensive income, financial assets and financial liabilities (including derivative instruments) measured at
fair-value-through-profit-or-loss and investment property measured at fair value.
The accounting policies for the preparation of the consolidated financial statements of the Group have been consistently applied to
the years 2024 and 2023, after taking into account the amendments in IFRSs as described in section 2.1.1 (a) “New and amended
standards adopted by the Group as of 1 January 2024”. In addition, where necessary, comparative figures have been adjusted to
conform to changes in presentation in the current year.
The preparation of financial statements in accordance with IFRS requires the use of estimates and judgements that affect the reported
amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements, as well
as the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on
management's best knowledge of current events and conditions, actual results ultimately may differ from those estimates.
The Group’s presentation currency is the Euro (€) being the functional currency of the parent company. Except as indicated, financial
information presented in Euro has been rounded to the nearest million. The figures presented in the notes may not sum precisely to
the totals provided due to rounding.
Going concern considerations
The annual financial statements have been prepared on a going concern basis, as the Board of the Directors considered as appropriate,
taking into consideration the following:
In 2024, despite the challenging international environment, the macroeconomic backdrop was supportive in the Group’s three core
markets. In particular, the economies of Greece, Bulgaria and Cyprus remained in expansionary territory, overperforming most of
their European Union (EU) peers. According to the Hellenic Statistical Authority (ELSTAT) provisional data, the real GDP of Greece
expanded by 2.3% on an annual basis in the first nine months of 2024 –versus 0.5% in the euro area (Eurostat)– driven by household
consumption and the buildup of inventories. The average annual inflation rate based on the Harmonized Index of Consumer Prices
(HICP) decreased to 3.0% in 2024 from 4.2% in 2023, while the average monthly unemployment rate declined to 10.1% in 2024, from
11.1% in 2023, dropping to a 15-year low. In its Autumn Economic Forecasts (November 2024), the European Commission (EC) expects
real GDP in Greece to grow by 2.1% in 2024 and 2.3% in 2025 (2023: 2.3%). The HICP growth rate is expected to decelerate to 2.4%
in 2025 and the unemployment rate to drop to 9.8%, respectively. On the fiscal front, the EC expects a primary surplus of 2.9% of GDP
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
in 2024 and 2025, up from 2.1% of GDP in 2023. The gross public debt-to-GDP ratio, following a sizeable increase in nominal GDP due
to the combination of real GDP growth and inflation, is expected to decline to 153.1% in 2024 and 146.8% in 2025, from 163.9% in
2023.
According to the EC Autumn Economic Forecasts, real GDP growth in Bulgaria in 2024 is expected at 2.4%, with a moderate increase
in 2025 to 2.9% (2023: 1.8%), while the HICP is forecast to decrease to 2.5% in 2024 and to 2.3% in 2025 (2023: 8.6%). In Cyprus, the
real GDP growth is forecast at 3.6% and 2.8% in 2024 and 2025, respectively (2023: 2.5%), while the HICP is estimated at 2.2% in 2024,
and 2.1% in 2025 (2023: 3.9%).
Growth in Greece as well as in Bulgaria and Cyprus is expected to receive a significant boost from EU-funded investment projects and
reforms. Greece shall receive in total € 36 billion (€ 18.2 billion in grants and € 17.7 billion in loans) up to 2026 through the Recovery
and Resilience Facility (RRF), Next Generation EU (NGEU)’s largest instrument, out of which € 18.2 billion (€ 8.6 billion in grants and €
9.6 billion in loans) had been disbursed by the EU as of the end 2024. A further € 40 billion is due through EU’s long-term budget
(MFF), out of which € 20.9 billion is to fund the National Strategic Reference Frameworks (ESPA 2021–2027).
In 2024, the Greek government raised € 9.55 billion from the international financial markets through the Public Debt Management
Agency (PDMA) by issuing two new bonds (a 10-year bond at a yield of 3.478% in January and a 30-year bond at a yield of 4.241% in
April), and re-opening eleven past issues with maturities of 5 and 10 years. At the end of 2024, the cash reserves of the Greek
government stood close to € 33 billion. Following a series of sovereign rating upgrades in the second half of 2023, the Greek
government’s long-term debt securities were considered investment grade by four out of the five Eurosystem-approved External
Credit Assessment Institutions (DBRS: BBB(low), positive outlook, Fitch: BBB-, stable outlook; Scope: BBB, stable outlook; S&P: BBB-,
positive outlook), and one notch below investment grade by the fifth one, Moody’s (Βa1, positive outlook) as of 31 December 2024.
On monetary policy developments, after ten rounds of interest rate hikes in 2022 and in 2023 and on the back of an improved inflation
outlook, the European Central Bank (ECB) implemented five interest rate cuts from June 2024 to January 2025, lowering its deposit
facility rate by 125 basis points in total.
Regarding the outlook for the next 12 months, the major macroeconomic risks and uncertainties in Greece and our region are
associated with: (a) the geopolitical tensions caused primarily by the war in Ukraine and the fragile situation in the Middle East, their
implications regarding regional and global stability and security, and their repercussions on the global and the European economy,
(b) an interruption or even a reversal of the disinflationary trend observed in the past 24 months and its impact on economic growth,
employment, public finances, household budgets, firms’ production costs, external trade and banks’ asset quality, as well as any
potential social and/or political ramifications this may entail, (c) the timeline of the potential further interest rate cuts by the ECB and
the Federal Reserve Bank, as persistence on high rates for longer may keep exerting pressure on sovereign and private borrowing
costs and certain financial institutions’ balance sheets, but early rate cuts entail the risk of a rebound in inflation, (d) the prospect of
Greece’s and Bulgaria’s major trade partners, primarily the euro area, remaining stagnant or even facing a temporary downturn, (e)
the elevated political and economic uncertainty stemming from the international and trade policy decisions of the new administration
in the United States, (f) the persistently large current account deficit that seems to become once again a structural feature of the
Greek economy, (g) the absorption capacity of the NGEU and MFF funds and the attraction of new investments in the countries of
presence, especially in Greece, (h) the effective and timely implementation of the reform agenda required to meet the RRF milestones
and targets and to boost productivity, competitiveness, and resilience and (i) the exacerbation of natural disasters due to the climate
change and their effect on GDP, employment, fiscal balance and sustainable development in the long run.
Materialization of the above risks would have potentially adverse effects on the fiscal planning of the Greek government, as it could
decelerate the pace of expected growth and on the liquidity, asset quality, solvency and profitability of the Greek banking sector. In
this context, the Group’s Management and Board are continuously monitoring the developments on the macroeconomic, financial
and geopolitical fronts as well as the evolution of the Group’s asset quality and liquidity KPIs and have maintained a high level of
readiness, so as to accommodate decisions, initiatives and policies to protect the Group’s capital, asset quality and liquidity standing
as well as the fulfilment, to the maximum possible degree, of its strategic and business goals in accordance with the business plan for
2025 - 2027.
In the year ended 31 December 2024, the net profit attributable to shareholders, following the inclusion of Hellenic Bank group in
the Company’s consolidated financial statements from the third quarter of 2024, amounted to € 1,448 million (2023: € 1,140 million).
The adjusted net profit, excluding a) the € 121 million restructuring costs (after tax), mainly related to VES (note 12), b) the € 99.5
million gain arising from the acquisition of an additional 26.28% shareholding of Hellenic Bank in June 2024 (note 23.2), c) the € 19
million Bank’s contribution (after tax) for the Greek state’s program for school renovations (note 11), d) the € 11 million impairment
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
release (after tax) relating to the project “Leon” (note 21) and e) the € 7 million net loss from discontinued operations (note 30)
amounted to € 1,484 million (2023: € 1,256 million), of which € 709 million profit was related to the international operations (2023:
€ 468 million profit). As at 31 December 2024, the Group’s Total Adequacy Ratio (total CAD) and Common Equity Tier 1 (CET1) ratios,
including the impact of the distribution of cash dividend to shareholders approved by the AGM in July 2024 and the inclusion of
Hellenic Bank group in the Company’s consolidated financial statements , stood at 19.5% (31 December 2023: 19.4%) and 16.8% (31
December 2023: 16.9%) respectively. Pro-forma with the dividend accrual to be distributed to shareholders in 2025 (subject to
regulatory approval), the completion of project “Solar” as well as the confirmation by ECB, of the significant risk transfer (SRT)
recognition for the “Leon” loan portfolio and the project “Wave VI”, the total CAD and CET1 ratios, as of 31 December 2024, would
be 18.5% and 15.7% respectively (note 4).
With regard to asset quality, the Group’s NPE formation, including the impact of Hellenic Bank, was positive by € 222 million during
the year (fourth quarter 2024: € 47 million positive), (2023: € 138 million positive). In total, the Group’s NPE stock stood at € 1.5
billion, excluding the € 0.2 billion NPE of Hellenic Bank covered by the Asset Protection Scheme (APS) (31 December 2023: € 1.5
billion), driving the NPE ratio to 2.9% at 31 December 2024 (31 December 2023: 3.5%). Τhe NPE coverage ratio improved to 88.4%
(31 December 2023: 86.4%) (note 20).
In terms of liquidity, as at 31 December 2024 the Group deposits, including the impact of the Hellenic Bank consolidation that added
€ 15.8 billion, stood at € 78.6 billion (31 December 2023: € 57.4 billion), leading the Group’s (net) loans to deposits (L/D) ratio to
64.8% (31 December 2023: 72.3%). The funding from the targeted long term refinancing operations of the ECB – TLTRO III programme
was fully repaid during the year (31 December 2023: € 3.8 billion) (note 31), while the Group’s debt securities in issue, increased by
€ 2.3 billion (note 25). As at 31 December 2024, the Bank’s MREL ratio at consolidated level stands at 28.22% of RWAs, higher than
the interim non-binding MREL target of 25.62% from January 2025 (note 4). The Group Liquidity Coverage ratio (LCR) has increased
to 188.2% (31 December 2023: 178.6%). In the context of the 2024 ILAAP (Internal Liquidity Adequacy Assessment Process), the
liquidity stress tests results indicated that the Bank has adequate liquidity buffer to cover the potential outflows that could occur in
all scenarios regarding the short term (1 month), the 3-month and the medium-term horizon (1 year).
On 18 December 2024, the Board of Directors of Eurobank Holdings decided the initiation of the merger process of Eurobank Holdings
with the Bank through absorption of the former by the latter, in order that operational efficiencies and a leaner group structure be
achieved. The merger is not expected to have any material effect on the Group’s financial position and will be completed subject to
all necessary by Law approvals (note 23.3).
Going concern assessment
The Board of Directors, acknowledging the geopolitical, macroeconomic and financial risks to the economy and the banking system
and taking into account the above factors relating to (a) the idiosyncratic growth opportunities in Greece, Bulgaria and Cyprus for this
and the next years, also underpinned by the mobilisation of the EU funding mainly through the RRF, and (b) the Group’s pre-provision
income generating capacity, asset quality, capital adequacy and liquidity position, has been satisfied that the financial statements of
the Group can be prepared on a going concern basis.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
2.1.1 New and amended standards and interpretations
(a) New and amended standards adopted by the Group as of 1 January 2024
The following amendments to existing standards as issued by the IASB and endorsed by the EU, that are relevant to the Group’s
activities apply as of 1 January 2024:
IAS 1, Amendments, Classification of Liabilities as Current or Non-Current and Non-current liabilities with covenants
The amendments, published in January 2020, introduce a definition of settlement of a liability, while they make clear that the
classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period.
In addition, it is clarified that the assessment made at the end of the reporting period for liabilities’ classification is not affected by
the expectations about events after the reporting period and whether an entity will exercise its right to defer settlement of a liability.
The Board also clarified that when classifying liabilities as current or non-current, an entity can ignore only those conversion options
that are classified as equity.
In October 2022, the IASB issued “
Non-current Liabilities with Covenants (Amendments to IAS 1)”
an entity’s right to defer their settlement for at least 12 months after the reporting date, is subject to the entity complying with
conditions after the reporting period (“future covenants”). The amendments specify that covenants to be complied with after the
reporting date do not affect the classification of debt as current or non-current at the reporting date. However, the amendments
require a company to disclose information about these covenants in the notes to the financial statements.
The adoption of the amendments had no impact on the consolidated financial statements.
IFRS 16, Amendments, Lease Liability in a Sale and Leaseback
The amendments require a seller-lessee to subsequently measure lease liabilities arising in a sale and leaseback transaction in a way
that it does not recognise any amount of the gain or loss that relates to the right of use it retains. Any gains and losses relating to the
full or partial termination of a lease continue to be recognised when they occur. The amendment does not change the accounting for
leases unrelated to sale and leaseback transactions.
The adoption of the amendments had no impact on the consolidated financial statements.
(b) New and amended standards not yet adopted by the Group
A number of new standards and amendments to existing standards are effective after 2024, as they have not yet been endorsed by
the EU or have not been early applied by the Group. Those that may be relevant to the Group are set out below:
IFRS 18, Presentation and Disclosure in Financial Statements (effective 1 January 2027, not yet endorsed by EU)
In April 2024, the IASB published the new standard IFRS 18 “Presentation and Disclosure in Financial Statements” which will replace
IAS 1 “Presentation of Financial Statements”. The new standard sets out the requirements for presentation and disclosures in financial
statements with focus on the income statement and reporting of financial performance, in order to ensure that financial statements
provide relevant information that faithfully represents an entity’s financial position, performance, and cash flows.
Specifically, the new standard contains new guidance regarding the structure of the income statement, as well as disclosure
requirements for Management-defined Performance Measures (MPMs). In addition, it provides enhanced guidance on aggregation
and disaggregation of information on the face of financial statements and in the notes, while sets out general requirements for the
classification and presentation of assets, liabilities, equity, income, and expenses.
The new standard is effective for annual periods beginning on or after January 1, 2027, with early adoption permitted and will also
apply to comparative information.
The Group is currently assessing the impact of IFRS 18 on its consolidated financial statements.
IAS 21, Amendments, Lack of Exchangeability (effective 1 January 2025)
The amendments to IAS 21” The Effects of Changes in Foreign Exchange Rates”, specify how an entity can determine whether a
currency is exchangeable into another currency at the measurement date, and the spot exchange rate to use when it is not. In
addition, when a currency is not exchangeable an entity should disclose information that would enable users of its financial
statements to understand the related effects and risks as well as the estimated rates and techniques used.
Notes to the Consolidated Financial Statements
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The adoption of the amendments is not expected to impact the consolidated financial statements.
IFRS 9 & IFRS 7, Amendments to the Classification and Measurement of Financial Instruments (effective 1 January 2026, not yet
endorsed by EU)
In May 2024, the IASB issued “Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS
9 and IFRS 7”. The amendments clarify the requirements related to the derecognition of financial liabilities settled through electronic
payment systems, provide additional guidance for the SPPI assessment of financial instruments with contingent features, non-
recourse features, as well as for transactions that are contractually linked instruments.
Additionally, the amendments introduce disclosure requirements regarding financial instruments with contingent features, as well as
for investment in equity instruments designated at FVOCI.
The amendments are effective for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted.
The Group is currently assessing the impact of the amendments on its consolidated financial statements.
Annual improvements to IFRSs - Volume 11 (effective 1 January 2026, not yet endorsed by EU)
In July 2024, the IASB issued amendments to several IFRS standards, which resulted from the IASB’s annual improvements process.
This volume includes minor amendments to several standards namely:
-IFRS 1 “First-time Adoption of International Financial Reporting Standards” on Clarifications on hedge accounting for first -time
adopters,
-IFRS 7 “Financial Instruments: Disclosures” and its accompanying Guidance on implementing IFRS 7
in disclosures related to
derecognition, fair value and credit risk,
-IFRS 9 “Financial Instruments” on clarifications about lessee derecognition of lease liabilities and on definition of transaction
price over the initial measurement of trade receivables,
-IFRS 10 “Consolidated Financial Statements” on the determination of a 'De Facto Agent' and
-IAS 7 “Statement of Cash-Flows” on definition of cost method.
The adoption of the amendments is not expected to impact the consolidated financial statements.
2.2 Material accounting policies
2.2.1 Consolidation
(i) Subsidiaries
Subsidiaries are all entities controlled by the Group. The Group controls an entity when it is exposed, or has rights to, variable returns
from its involvement with the entity, and has the ability to affect those returns through its power over the entity. The Group
consolidates an entity only when all the above three elements of control are present.
Power over the entity may arise from voting rights granted by equity instruments such as shares or, in other cases, may result from
contractual arrangements.
Where voting rights are relevant, the Group is deemed to have control where it holds, directly or indirectly, more than half of the
voting rights over an entity, unless there is evidence that another investor has the practical ability to unilaterally direct the relevant
activities.
The Group may have power, even when it holds less than a majority of the voting rights of the entity, through a contractual
arrangement with other vote holders, rights arising from other contractual arrangements, substantive potential voting rights,
ownership of the largest block of voting rights in a situation where the remaining rights are widely dispersed (‘de facto power’), or a
combination of the above. In assessing whether the Group has de facto power, it considers all relevant facts and circumstances
including the relative size of the Group’s holding of voting rights and dispersions of holdings of other vote holders to determine
whether the Group has the practical ability to direct the relevant activities.
In assessing whether the Group has the ability to use its power to affect the amount of returns from its involvement with an entity,
the Group determines whether in exercising its decision-making rights, it is acting as an agent or as a principal. The Group acts as an
agent when it is engaged to act on behalf and for the benefit of another party, and as a result does not control an entity. Therefore,
in such cases, the Group does not consolidate the entity. In making the above assessment, the Group considers the scope of its
Notes to the Consolidated Financial Statements
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decision-making authority over the entity, the rights held by other parties, the remuneration to which the Group is entitled from its
involvement, and its exposure to variability of returns from other interests in that entity.
The Group has interests in certain entities which are structured so that voting rights are not the dominant factor in deciding who
controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means
of contractual rights. In determining whether the Group has control over such structured entities, it considers the following factors:
•
The purpose and design of the entity;
•
Whether the Group has certain rights that give it the ability to direct the relevant activities of the entity unilaterally, as a
result of existing contractual arrangements that give it the power to govern the entity and direct its activities;
•
In case another entity is granted decision making rights, the Group assesses whether this entity acts as an agent of the Group
or another investor;
•
The existence of any special relationships with the entity; and
•
The extent of the Group’s exposure to variability of returns from its involvement with the entity, including its exposure in
the most subordinated securitization notes issued by the entity as well as subordinated loans or other credit enhancements
that may be granted to the entity, and if the Group has the power to affect such variability.
Information about the Group’s structured entities is set out in note 25.
The Group reassesses whether it controls an entity if facts and circumstances indicate that there are changes to one or more elements
of control. This includes circumstances in which the rights held by the Group and intended to be protective in nature become
substantive upon a breach of a covenant or default on payments in a borrowing arrangement, and lead to the Group having power
over the investee.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and are no longer consolidated from
the date that control ceases. Total comprehensive income is attributed to the owners of the parent and to the non-controlling
interests even if this results in the non-controlling interests having a deficit balance.
In determining the proportion of profit or loss and changes in equity allocated to the Group and non-controlling interests, the Group
takes into account current ownership interests, also including in-substance current ownership interests, after considering the
eventual exercise of any potential voting rights and other derivatives that currently give the Group access to the returns associated
with an ownership interest.
Changes in the Group's ownership interest in subsidiaries that do not result in a loss of control are recorded as equity transactions.
Any difference between the consideration and the share of the new net assets acquired is recorded directly in equity. Gains or losses
arising from disposals of ownership interests that do not result in a loss of control by the Group are also recorded directly in equity.
For disposals of ownership interests that result in a loss of control, the Group derecognizes the assets and liabilities of the subsidiary
and any related non-controlling interest and other components of equity and recognizes gains and losses in the income statement.
When the Group ceases to have control, any retained interest in the former subsidiary is re-measured to its fair value, with any
changes in the carrying amount recognized in the income statement. The Group considers the eventual exercise of any potential
voting rights and other derivatives and whether they currently give the Group access to the returns associated with a retained
ownership interest, in determining whether that ownership interest should be derecognised or not.
Intercompany transactions, balances and intragroup gains on transactions between Group entities are eliminated; intragroup losses
are also eliminated unless the transaction provides evidence of impairment of the asset transferred.
(ii) Business combinations
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. The consideration transferred
for an acquisition is measured at the fair value of the assets given, equity instruments issued or exchanged and liabilities undertaken
at the date of acquisition, including the fair value of assets or liabilities resulting from a contingent consideration arrangement.
Acquisition related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a
business combination are measured initially at their fair values at the acquisition date irrespective of the extent of any non-controlling
interest. Any previously held interest in the acquiree is remeasured to fair value at the acquisition date with any gain or loss recognized
in the income statement. The Group recognizes on an acquisition-by-acquisition basis any non-controlling interest in the acquiree
either at fair value or at the non-controlling interest's proportionate share of the acquiree's net assets.
Notes to the Consolidated Financial Statements
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The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair
value of any previous equity interest in the acquiree over the fair value of the identifiable net assets of the subsidiary acquired, is
recorded as goodwill. If this is less than the fair value of the net assets of the acquiree, the difference is recognized directly in the
income statement.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which it occurs, the Group
reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted
retrospectively during the measurement period to reflect the new information obtained about the facts and circumstances that
existed at the acquisition date that, if known, would have affected the amounts recognized at that date. The measurement period
adjustments, as mentioned above, affect accordingly the amount of goodwill that was initially recognized, while the measurement
period cannot exceed one year from the acquisition date.
Commitments to purchase non-controlling interests through derivative financial instruments with the non-controlling interests, as
part of a business combination are accounted for as a financial liability, with no non-controlling interest recognized for reporting
purposes. The financial liability is measured at fair value, using valuation techniques based on best estimates available to
Management. Any difference between the fair value of the financial liability upon initial recognition and the nominal non-controlling
interest's share of net assets is recognized as part of goodwill. Subsequent revisions to the valuation of the derivatives are recognized
in the income statement.
Agreements to acquire or dispose shares in an entity that will be settled at a future date and will result in a business combination are
accounted for by the Group as executory contracts and not as derivatives, under the relevant accounting standards. The term of such
agreements should not exceed a reasonable period normally necessary to obtain any required approvals and complete the
transaction.
For acquisitions of subsidiaries not meeting the definition of a business, the Group allocates the consideration to the individual
identifiable assets and liabilities based on their relative fair values at the date of acquisition. Such transactions or events do not give
rise to goodwill.
A listing of the Bank’s subsidiaries is set out in note 23.
(iii) Business combinations involving entities under common control
Pursuant to IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’, since business combinations between entities
under common control are excluded from the scope of IFRS 3 ‘Business Combinations’, such transactions are accounted for in the
Group’s financial statements by using the pooling of interests method (also known as merger accounting), with reference to the most
recent pronouncements of other standard-setting bodies that use a similar conceptual framework and comply with the IFRSs general
principles, as well as accepted industry practices.
Under the pooling of interests method, the Group incorporates the assets and liabilities of the acquiree at their pre-combination
carrying amounts from the highest level of common control, without any fair value adjustments. Any difference between the cost of
the transaction and the carrying amount of the net assets acquired is recorded in Group's equity.
The Group accounts for the cost of such business combinations at the fair value of the consideration given, being the amount of cash
or shares issued or if that cannot be reliably measured, the consideration received.
Formation of a new Group entity to effect a business combination
Common control transactions that involve the formation of a new Group entity to effect a business combination by bringing together
two or more previously uncombined businesses under the new Group entity are also accounted for by using the pooling of interests
method.
Other common control transactions that involve the acquisition of a single existing Group entity or a single group of businesses by a
new entity formed for this purpose are accounted for as capital reorganizations, on the basis that there is no business combination
and no substantive economic change in the Group. Under a capital reorganization, the acquiring entity incorporates the assets and
liabilities of the acquired entity at their carrying amounts, as presented in the books of that acquired entity, rather than those from
the highest level of common control. Any difference between the cost of the transaction and the carrying amount of the net assets
acquired is recognized in the equity of the new entity. Capital reorganization transactions do not have any impact on the Group’s
consolidated financial statements.
Notes to the Consolidated Financial Statements
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(iv) Associates
Investments in associates are accounted for using the equity method of accounting in the consolidated financial statements. These
are undertakings over which the Group exercises significant influence but which are not controlled.
Equity accounting involves recognizing in the income statement the Group's share of the associate's profit or loss for the year. The
Group's interest in the associate is carried on the balance sheet at an amount that reflects its share of the net assets of the associate
and any goodwill identified on acquisition net of any accumulated impairment losses. If the Group's share of losses of an associate
equals or exceeds its interest in the associate, the Group discontinues recognizing its share of further losses, unless it has incurred
obligations or made payments on behalf of the associate.
When the Group obtains or ceases to have significant influence, any previously held or retained interest in the entity is remeasured
to its fair value, with any change in the carrying amount recognized in the income statement, except in cases where an investment in
associate becomes an investment in a joint venture where no remeasurement of the interest retained is performed and use of the
equity method continues to apply.
(v) Joint arrangements
A joint arrangement is an arrangement under which the Group has joint control with one or more parties. Joint control is the
contractually agreed sharing of control and exists only when decisions about relevant activities require the unanimous consent of the
parties sharing control. The Group evaluates the contractual terms of joint arrangements to determine whether a joint arrangement
is a joint operation or a joint venture. All joint arrangements in which the Group has an interest are joint ventures.
As investments in associates, the Group's interest in joint ventures is accounted for by using the equity method of accounting.
Therefore, the accounting policy described in note 2.2.1 (iv) applies also for joint ventures.
A listing of the Group's associates and joint ventures is set out in note 24.
2.2.2 Foreign currencies
(i) Translation of foreign subsidiaries
Assets and liabilities of foreign subsidiaries are translated into the Group’s presentation currency at the exchange rates prevailing at
each reporting date whereas income and expenses are translated at the average exchange rates for the period reported. Exchange
differences arising from the translation of the net investment in a foreign subsidiary, including exchange differences of monetary
items receivable or payable to the foreign subsidiary for which settlement is neither planned nor likely to occur that form part of the
net investment in the foreign subsidiaries, are recognized in other comprehensive income. Exchange differences from the Group’s
foreign subsidiaries are released to the income statement on their disposal.
(ii) Transactions in foreign currency
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in the income
statement.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates
prevailing at each reporting date and exchange differences are recognized in the income statement, except when deferred in equity
as qualifying cash flow or net investment hedges.
Non-monetary assets and liabilities are translated into the functional currency at the exchange rates prevailing at initial recognition,
except for non-monetary items denominated in foreign currencies that are measured at fair value which are translated at the rate of
exchange at the date the fair value is determined. The exchange differences relating to these items are treated as part of the change
in fair value and are recognized in the income statement or directly in other comprehensive income depending on the classification
of the non-monetary item.
2.2.3 Derivative financial instruments and hedging
Derivative financial instruments that mainly include foreign exchange contracts, forward currency agreements, currency and interest
rate options (both written and purchased), as well as currency and interest rate swaps are initially recognized in the balance sheet at
Notes to the Consolidated Financial Statements
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fair value, on the date on which the derivative contracts are entered into, and subsequently are re-measured at their fair value. All
derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative.
The principles for the fair value measurement of financial instruments, including derivative financial instruments, are described in
notes 3.2 and 5.3.
Embedded derivatives
Embedded derivatives are components of hybrid contracts that also include non-derivative hosts with the effect that some of the
cash flows of the combined instruments vary in a way similar to stand-alone derivatives.
Financial assets that contain embedded derivatives are recognised in the balance sheet in their entirety in the appropriate
classification category, following the instruments’ assessment of their contractual cash flows and their business model as described
in note 2.2.9.
On the other hand, derivatives embedded in financial liabilities, such as bonds issued by the Group, are treated as separate derivatives
when their risks and characteristics are assessed not to be closely related to those of the host contract and the host contract is not
carried at fair value through profit or loss. These embedded derivatives are separated in the balance sheet and accounted for as
stand-alone derivatives measured at fair value with changes in fair value recognized in the income statement.
Derivatives held for hedge accounting
The use of derivative financial instruments is inherent in the Group’s activities and aims principally at managing risks effectively.
Accordingly, the Group, as part of its risk management strategy, may enter into transactions with external counterparties to hedge
partially or fully exposure to interest rates, foreign currency rates, equity prices and other market factors that are generated from its
activities.
The objectives of hedging with derivative financial instruments include:
•
Reduce interest rate exposure that is in excess of the Group’s interest rate limits;
•
Manage efficiently interest rate risk and achieve optimization and stabilization of the evolution of net interest margin and
net interest income by tracking the evolution of interest rates and spreads and hedging the changes to the movements of
the benchmark interest rates represented by the prevailing reference rates;
•
Manage the overall fair value exposure on settled or unsettled (forward) transactions
•
Reduce variability deriving from the fair value changes of derivatives embedded in financial assets;
•
Manage future variable cash flows;
•
Reduce foreign currency risk or inflation risk;
•
Reduce variability of the consideration to be paid/received to acquire/sell a debt security under a forward transaction,
•
Reduce accounting exposure, i.e. the variability in the Group’s equity arising from translating a foreign net investment at
different exchange rates.
Hedge accounting
The Group has elected, as a policy choice permitted under IFRS 9, to continue to apply hedge accounting in accordance with IAS 39,
as endorsed by the European Union (IAS 39 “carve out'’). In 2023, the Group introduced a new risk management strategy which is the
fair value hedging of the core deposits held in Greece and Cyprus from both retail and wholesale portfolios. Accordingly, the Group
applied for the first time the provisions of IAS 39 carve-out that enables entities to designate core deposits as hedged items in a
portfolio hedge of interest rate risk, as further described in the sections below. Under the EU carve-out version of IAS 39, certain
requirements related to hedge accounting were removed, in order to facilitate (a) the application of fair value hedge accounting to
the macro-hedges used for structural hedges including demand deposits and (b) the hedge effectiveness assessment by permitting
the use of bottom layer approach for the determination of the fair value of hedged item, attributable to interest rate risk.
For hedge accounting purposes, the Group forms a hedging relationship between a hedging instrument or group of hedging
instruments and a related item or group of items to be hedged. A hedging instrument is a designated derivative or group of derivatives,
or a designated non-derivative financial asset or financial liability whose fair value or cash flows are expected to offset changes in the
fair value or cash flows of a designated hedged item or group of items. Specifically, the Group designates certain derivatives as: (a)
Notes to the Consolidated Financial Statements
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hedges of the exposure to changes in the fair value of recognized assets or liabilities on a single or portfolio basis or unsettled forward
transactions, or unrecognized firm commitments (fair value hedging), (b) hedges of the exposure to variability in cash flows of
recognized assets or liabilities or unsettled forward transactions, or highly probable forecasted transactions (cash flow hedging) or,
(c) hedges of the exposure to variability in the value of a net investment in a foreign operation which is associated with the translation
of the investment's net assets in the Group's functional currency (net investment hedging).
In order to apply hedge accounting, specified criteria should be met. Accordingly, at the inception of the hedge accounting
relationship, the Group documents the relationship between hedging instruments and hedged items, as well as its risk management
objective and strategy for undertaking various hedge transactions, together with the method that will be used to assess the
effectiveness of the hedging relationship. The Group also documents its assessment, both at inception of the hedge and on an ongoing
basis, of whether the derivatives that are used in the hedging transactions are highly effective in offsetting changes in fair values or
cash flows of hedged items and whether the actual results of each hedge are within a range of 80-125%. If a relationship does not
meet the abovementioned hedge effectiveness criteria, the Group discontinues hedge accounting prospectively. Similarly, if the
hedging derivative expires or is sold, terminated or exercised, or the hedge designation is revoked, then hedge accounting is
discontinued prospectively.
(i) Fair value hedging
The Group applies fair value hedging primarily to hedge exposures to changes in the fair value attributable to interest rate risk with
respect to the applicable benchmark rate and currency risk.
Hedged items
The items that qualify for fair value hedge accounting include financial assets and liabilities such as:
•
fixed rate investment securities measured at AC or FVOCI,
•
fixed rate term deposits and debt securities issued measured at amortized cost;
•
portfolios of floating-rate loans and debt securities with embedded interest rate options (such as purchased interest rate
floors) measured at AC;
•
portfolios of fixed rate amortizing loans (macro hedging) including securitization notes issued and held by the Group
measured at AC.
•
portfolios of liabilities (macro hedging) and more specifically demand deposits with interest rates determined by the Group
and announced on its pricing list (sight/savings deposit rate) that are identified as interest rate-insensitive liabilities
measured at AC. More specifically, demand deposits (sight or savings) are liabilities with no contractual maturity that the
customers have the flexibility to withdraw at any time. Despite their contractual terms, and due to their nature, part of the
demand deposits behaves as a portfolio of longer-term fixed rate liabilities, as they remain insensitive to interest rate
movements. This part of demand deposits represents the core deposits.
Hedge effectiveness assessment
The Group uses the regression analysis or the dollar-offset method at inception (prospective measurement) and on an ongoing basis
(retrospective measurement), in order to assess the effectiveness of fair value hedges on a single or portfolio basis. Specifically, the
regression analysis is the default method of assessing effectiveness which applies to all single fair value hedging relationships and
portfolios hedging of interest rate risk (macro-hedging) and demonstrates that there is high historical and expected future correlation
between the interest rate risk designated as being hedged and the interest rate risk of the hedging instrument. If the regression
coefficient of the equation, that represents the effectiveness ratio, ranges between -0.8 to -1.25, the hedge relationship is expected
to be highly effective, further supported by the coefficient of determination (R2) which should be greater than 80% to confirm the
statistical level of high effectiveness. For hedging relationships, that regression analysis is not available the dollar-offset method is
used, which is a quantitative method that involves the comparison of the change in the fair value of the hedging instrument with the
change in the fair value of the hedged item attributable to the hedged risk. The above comparison constitutes the dollar-offset ratio
and should be within the range of 80% -125% for the hedge to be highly effective.
The Group may also apply the hypothetical derivative method, an approach to the dollar offset method, where the hedged risk is
modelled through hypothetical derivatives, which replicate the embedded derivative. The fair value of the hypothetical derivative is
used as a proxy for the net present value of the hedged future cash flows against which changes in value of the actual hedging
Notes to the Consolidated Financial Statements
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instrument are compared to assess effectiveness and measure ineffectiveness. Hedge ineffectiveness may arise in case of potential
differences in the critical terms between the hedged item and the hedging instrument such as maturity, interest rate reset frequency
and discount curves as well as differences between expected and actual cash flows.
In addition, for hedging relationships where the critical terms of the hedged item match the ones of the hedging instrument such as
coupon, maturity, and payment frequency, it is presumed that by construction, effectiveness is expected to be highly effective.
The Group has identified the following sources of ineffectiveness:
•
Differences in the repricing frequency of the hedged items and hedging instruments
•
The use of different interest rate curves applied to discount the hedged items and hedging instruments.
Fair value hedging adjustments and discontinuation of hedge accounting
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement line
“net trading income/(loss)” together with the changes in the fair value of the hedged assets or liabilities that are attributable to the
hedged risk (fair value hedging adjustments). Fair value hedging adjustments to the hedged items measured at amortised cost are
recorded as part of their carrying value in the balance sheet, with the exception of hedging adjustments for portfolios of fixed rate
assets in the context of macro-hedging (see below).
The Group discontinues hedge accounting prospectively in case the hedging instrument expires or is sold, terminated or exercised,
the hedge no longer meets the qualifying criteria for hedge accounting, or designation is revoked. In such cases, any adjustment to
the carrying amount of the hedged item, for which the effective interest method is applied, is amortized to profit or loss in the income
statement line “interest income” over the remaining period to maturity with amortization commencing no later than when the
hedged item ceases to be adjusted for changes in its fair value attributable to the risk being hedged. If the hedged item is
derecognised, the unamortised fair value adjustment is recognised immediately in the income statement.
Portfolio hedging of interest rate risk (macro -hedging)
With reference to portfolio hedging of interest rate risk, a dynamic hedging strategy is applied according to which the Group
voluntarily designates and de-designates the hedge relationship on a monthly basis.
For portfolios of financial assets, the Group determines the designated hedged amount by identifying portfolios of homogenous fixed
rate assets based on their contractual interest rates, maturity and other risk characteristics. Assets within the identified portfolios are
allocated into repricing time periods based on their repricing/maturity dates or interest payment dates with assumptions made for
expected prepayments and capital repayments. The hedging instruments are groups of interest rate swaps replicating in aggregate
the amortization profile of the assets and designated appropriately to their repricing time periods. Following the above allocation
into time buckets, the designated hedged principal and the resulting percentage of the asset portfolio hedged (hedge ratio) for each
time bucket are determined.
For the core deposits’ portfolios, the Group determines their aggregated balances and allocation into time buckets by applying a
modelled approach that is based on regulatory standards. More specifically, the portfolio of core deposits to be hedged is determined
by an internal designated behavioral model that utilizes a number of assumptions regarding the behavior and evolution of demand
deposits balances, which are assessed, monitored and documented in accordance with the Group’s risk management framework. The
approach involves the allocation of demand deposits in sub-categories considering their nature, i.e. retail and wholesale, their
idiosyncratic behavioral analysis per portfolio, their sensitivity on interest rates and their withdrawal patterns and expected maturity
profile analyzed in time buckets for a maximum period of ten years. Furthermore, the model performs a capacity check per time
bucket to ensure that there is sufficient hedge capacity on the hedged item amortizing profile, compared to the hedging instruments’
profile in order to ensure that there is no over hedge.
Against this modelled interest rate exposure, the Group then uses groups of interest rate swaps with maturity up to ten years,
designated as hedging instruments, that receive fixed interest rate and pay floating interest rate based on the benchmark rate hedged.
The groups of swaps are staggered to cover different periods in time replicating in aggregate the estimated amortization profile of
the hedged core deposits per time bucket. Additionally, their volume is re-assessed on a monthly basis. Following the above allocation
into time buckets, the designated hedged principal and the resulting percentage of the portfolio hedged (hedge ratio) for each time
bucket are determined.
Notes to the Consolidated Financial Statements
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For hedge effectiveness assessment purposes, the regression analysis is used to demonstrate that there is high historical and expected
future correlation between the interest rate risk designated as being hedged and the interest rate risk of the hedging instrument, as
described above.
Fair Value hedging adjustments do not affect the carrying amount of the hedged assets or liabilities pool, but instead they are
presented as a separate line item within balance sheet lines loans and advances to customers and due to customers respectively.
Considering the designation and de-designation process for a portfolio hedging of interest rate risk is performed on a monthly basis,
the hedging adjustments are recorded in the income statement line “net trading income/(loss)”, begin amortization on the month
they occur and are amortized per bucket on a straight line basis, until the maturity of the last designated time bucket on a straight
line basis.
Furthermore, the pool of hedging instruments is managed dynamically and therefore when new derivatives are added in the pool of
hedging instruments, they are included in the next period’s hedge assessment and consequently the change in fair value in the month
of their inception affects the P&L. Similarly, when existing swaps are de-designated, either to improve expected hedge effectiveness
or to be liquidated, the respective change in fair value from de-designation up to the next designation or liquidation date, affects the
P&L.
(ii) Cash flow hedging
The Group applies cash flow hedging to hedge exposures to variability in cash flows primarily attributable to the interest rate risk and
currency risk associated with a recognized asset or liability or a highly probable forecast transaction. Additionally, cash flow hedging
may be applied to hedge the variability of the consideration to be paid in order to acquire assets under unsettled forward transactions
(All-In-One Cash flow hedge).
The items that qualify for cash flow hedging include recognized assets and liabilities such as variable rate deposits or loans measured
at amortized cost, variable rate debt securities in issue, foreign currency variable rate loans and fixed or variable rate debt securities
to be purchased under unsettled forward transactions. The interest rate risk with respect to the applicable benchmark rate may be
hedged using interest rate swaps and cross currency swaps. The foreign currency risk may be hedged using currency forwards and
currency swaps. The variability of the consideration to be paid to acquire assets under unsettled forward transactions may be hedged
using debt securities under forward transactions treated as derivatives and considered eligible hedging instruments.
Furthermore, cash flow hedging is used for hedging highly probable forecast transactions such as the anticipated future rollover of
short-term deposits or repos measured at amortized cost. Specifically, the forecast variable interest payments of a series of
anticipated rollovers of these financial liabilities are aggregated and hedged as a group with respect to changes in the benchmark
interest rates, eliminating cash flow variability. In addition, cash flow hedging applies to hedges of currency risk arising from probable
forecasted sales of financial assets or settlement of financial liabilities in foreign currency.
If the hedged item is documented as a forecast transaction, the Group assesses and verifies that there is a high probability of the
transaction occurring.
In order to assess the effectiveness of cash flow hedges of interest rate risk, the Group uses regression analysis which demonstrates
that there is high historical and expected future correlation between the interest rate risk designated as being hedged and the interest
rate risk of the hedging instrument. For assessing the effectiveness of cash flow hedges of currency risk and debt securities under
unsettled forward transactions, the Group uses the dollar-offset method as it is described in section (i) above.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in
other comprehensive income whereas the ineffective portion is recognized in the income statement line “net trading income/(loss)”.
Amounts accumulated in equity are recycled to the income statement in the periods in which the hedged item will affect profit or
loss (for example, when the forecast sale that is hedged takes place).
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, the cumulative
gain or loss existing in equity at that time remains in equity until the hedged cash flows affect the income statement.
When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately
transferred to the income statement.
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(iii) Net investment hedging
The Group applies net investment hedging to hedge exposures to variability in the value of a net investment in foreign operation
(including monetary items that form part of the net investment), such as foreign subsidiaries, associates or other foreign operations,
associated with the translation of the net investment’s carrying amount into the Group’s presentation currency. Any exchange
differences deriving from the translation are deferred in OCI until the net investment is disposed of or liquidated, at which time they
are recognized in the profit or loss.
The foreign currency exposure that arises from the fluctuation in spot exchange rates between the net investment’s functional
currency and the Group’s presentation currency may be hedged using currency swaps, currency forward contracts and their economic
equivalents, as well as cash instruments.
The effectiveness of net investment hedges is assessed with the Dollar-Offset Method as described above for fair value hedge.
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging
instrument relating to the effective portion of the hedge is recognized in equity; the gain or loss relating to the ineffective portion is
recognized in the income statement. Gains and losses accumulated in equity are included in the income statement when the foreign
operation is disposed of as part of the gain or loss on the disposal.
Derivatives not designated as hedging instruments for hedge accounting purposes
Changes in the fair value of derivative financial instruments that are entered into for trading purposes or as economic hedges of
assets, liabilities or net positions in accordance with the Group’s hedging objectives and risk management policies that may not qualify
for hedge accounting are recognized in the income statement.
The fair values of derivative instruments held for trading, including those entered into as economic hedges, and hedge accounting
purposes are disclosed in note 19.
2.2.4 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is presented in the balance sheet when, and only when, the Group
currently has a legally enforceable right to set off the recognized amounts and intends either to settle them on a net basis, or to
realize the asset and settle the liability simultaneously.
2.2.5 Income statement
(i) Interest income and expense
Interest income and expense are recognized in the income statement for all interest bearing financial instruments on an accrual basis,
using the effective interest rate (EIR) method. The effective interest rate is the rate that exactly discounts estimated future cash
payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the gross carrying
amount of the financial asset or to the amortized cost of a financial liability. When calculating the EIR for financial instruments other
than purchased or originated credit-impaired, the Group estimates future cash flows considering all contractual terms of the financial
instrument but does not consider expected credit losses. For purchased or originated credit impaired (POCI) financial assets, the
Group calculates the credit-adjusted EIR, which is the interest rate that upon the original recognition of the POCI financial asset
discounts the estimated future cash flows (including expected credit losses) to the fair value of the POCI asset.
The amortized cost of a financial asset or liability is the amount at which it is measured upon initial recognition minus principal
repayments, plus or minus cumulative amortization using the EIR (as described above) and for financial assets it is adjusted for the
expected credit loss allowance. The gross carrying amount of a financial asset is its amortized cost before adjusting for ECL allowance.
The EIR calculation includes fees and points paid or received that are an integral part of the effective interest rate, transaction costs,
and other premiums or discounts. Transaction costs include incremental costs that are directly attributable to the acquisition or issue
of a financial asset or liability.
The Group calculates interest income and expense by applying the EIR to the gross carrying amount of non -impaired financial assets
(exposures in Stage 1 and 2) and to the amortized cost of financial liabilities respectively.
For financial assets that have become credit-impaired subsequent to initial recognition (exposures in Stage 3), the Group calculates
interest income by applying the effective interest rate to the amortized cost of the financial asset (i.e. gross carrying amount adjusted
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for the expected credit loss allowance). If the asset is no longer credit-impaired, then the EIR is applied again to the gross carrying
amount with the exception of POCI assets for which interest income does not revert to gross basis calculation.
For inflation-linked instruments the Group recognizes interest income and expense by adjusting the effective interest rate on each
reporting period due to changes in expected future cash flows, incorporating changes in inflation expectations over the term of the
instruments. The adjusted effective interest rate is applied in order to calculate the new gross carrying amount on each reporting
period.
Interest income and expense are presented separately in the income statement for all interest bearing financial instruments within
net interest income.
(ii) Fees and commissions
Fee and commission received or paid that are integral to the effective interest rate on a financial asset or financial liability are included
in the effective interest rate.
Other fee and commission income such as account servicing and asset management fees (including performance based fees) is
recognised over time as the related services are being provided to the customer, to the extent that it is highly probable that a
significant reversal of the revenue amount recognized will not occur. Transaction-based fees such as foreign exchange transactions,
imports-exports, remittances, bank charges and brokerage activities are recognised at the point in time when the transaction takes
place. Other fee and commission expenses relate mainly to transaction and service fees, which are expensed as the services are
received.
In the case of a contract with a customer that results in the recognition of a financial instrument in the Group’s financial statements
which may be partially in the scope of IFRS 9 and partially in the scope of IFRS 15, the Group first applies IFRS 9 to separate and
measure the part of the contract that is in the scope of IFRS 9 and subsequently applies IFRS 15 to the residual part.
2.2.6 Property, equipment and Investment property
(i) Property and equipment
Property and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. Cost includes
expenditure that is directly attributable to the acquisition of the asset. Subsequent expenditure is recognized in the asset's carrying
amount only when it is probable that future economic benefits will flow to the Group and the cost of the asset can be measured
reliably. All other repair and maintenance costs are recognized in the income statement as incurred.
Depreciation is calculated using the straight-line method to write down the cost of property and equipment, to their residual values
over their estimated useful life as follows:
•
Land: no depreciation;
•
Freehold buildings: 40-50 years and up to 70 years (for specific strategic properties constructed or heavily renovated
according to the best practices and guidelines of sustainable construction and renovation, using resilient materials and
designs);
•
Leasehold improvements: over the lease term or the useful life of the asset if shorter;
•
Computer hardware and related integral software: 4-10 years;
•
Other furniture and equipment: 4-20 years; and
•
Motor vehicles: 5-7 years.
(ii) Investment property
Property held for rental yields and/or capital appreciation that is not occupied by the Group’s entities is classified as investment
property.
Investment property is measured initially at its cost, including related transaction costs, and subsequently at fair value with any
change therein recognized in income statement line ‘’other income / (expenses)’’. Subsequent expenditure is charged to the asset’s
carrying amount only when it is probable that future economic benefits associated with the item will flow to the Group and the cost
of the item can be measured reliably. Such expenditure includes enhancements that increase the value of the asset and its future
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income-earning potential, as well as costs to comply with environmental and other legal requirements. Repairs and maintenance
costs are recognized to the income statement during the financial period in which they are incurred.
Any gain or loss on disposal (calculated as the difference between the net proceeds from disposal and the carrying amount of the
asset) is recognized in income statement.
If an investment property becomes owner-occupied, it is reclassified as property and equipment and its fair value at the date of
reclassification becomes its deemed cost. If an item of property and equipment becomes an investment property because its use has
changed, any resulting decrease between the carrying amount and the fair value of this item at the date of transfer is recognized in
income statement while any resulting increase, to the extent that the increase reverses previous impairment loss for that property,
is recognized in income statement while any remaining part of the increase is recognized in other comprehensive income and
increases the revaluation surplus within equity.
If a repossessed asset becomes investment property, any difference between the fair value of the property at the date of transfer
and its previous carrying amount is recognized in income statement.
Reclassifications among own used, repossessed assets and investment properties may occur when there is a change in the use of such
properties. Additionally, an investment property may be reclassified to ‘non-current assets held for sale’ category to the extent that
the criteria described in note 2.2.25 are met.
2.2.7 Intangible assets
(i) Goodwill
Goodwill arising on business combinations is included in ‘intangible assets’ and is measured at cost less accumulated impairment
losses.
Goodwill arising on acquisitions of associates and jointly controlled entities is neither disclosed nor tested separately for impairment,
but instead is included in ‘investments in associates’ and ‘investments in jointly controlled entities’.
(ii) Computer software
Computer software is measured at cost less accumulated amortisation and accumulated impairment losses. Costs associated with
the maintenance of existing computer software programs are expensed as incurred. Development costs associated with the
production of identifiable assets controlled by the Group are recognized as intangible assets when they are expected to generate
economic benefits and can be measured reliably. Internally generated computer software assets are amortized using the straight-line
method over 4 to 15 years, except for core systems whose useful life may extend up to 20 years.
(iii) Other intangible assets
Other intangible assets are assets that are separable or arise from contractual or other legal rights and are amortized over their
estimated useful lives. These include intangible assets acquired in business combinations.
Intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment.
2.2.8 Impairment of non-financial assets
(i) Goodwill
Goodwill is tested for impairment annually or more frequently if there are any indications that impairment may have occurred. The
Group considers external information such as prevailing economic conditions, persistent slowdown in financial markets, volatility in
markets and changes in levels of market and exchange risk, an unexpected decline in an asset’s market value or market capitalization
being below the book value of equity, together with a deterioration in internal performance indicators, in assessing whether there is
any indication of impairment.
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each Cash Generating Unit (CGU)
or groups of CGUs that are expected to benefit from the synergies of the combination.
The Group impairment model compares the carrying value of a CGU or group of CGUs with its recoverable amount. The carrying value
of a CGU is based on the assets and liabilities of each CGU. The recoverable amount is determined on the basis of the present value
of the future cash flows expected to be derived from the CGU or group of CGUs. The estimated future cash flows are discounted to
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their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset or CGU and the countries where the CGUs operate.
An impairment loss arises if the carrying amount of an asset or CGU exceeds its recoverable amount and is recognized in the income
statement. Impairment losses are not subsequently reversed. Gains and losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold.
Goodwill arising in a business combination is not tested for impairment during the measurement period extending up to one year
from the acquisition date that is allowed for the completion of the purchase accounting and allocation of goodwill, unless there has
been a triggering event or changes in other facts and circumstances, suggesting that the acquired goodwill might be impaired, even
if the allocation process is not complete.
(ii) Other non-financial assets
Other non-financial assets, including property and equipment and other intangible assets, are assessed for indications of impairment
at each reporting date by considering both external and internal sources of information such as a significant reduction in the asset’s
value and evidence that the economic performance of the asset is or will be worse than expected. When events or changes in
circumstances indicate that the carrying amount may not be recoverable, an impairment loss is recognized for the amount by which
the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs
to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows, where applicable. Non-financial assets, other than goodwill, for which an impairment loss was
recognized in prior reporting periods, are reviewed for possible reversal of such impairment at each reporting date.
Impairment losses arising from the Group’s associates and joint ventures are determined in accordance with this accounting policy.
2.2.9 Financial assets
Financial assets - Classification and measurement
The Group classifies financial assets based on the business model for managing those assets and their contractual cash flow
characteristics. Accordingly, financial assets on initial recognition are classified into one of the following measurement categories:
amortized cost, fair value through other comprehensive income or fair value through profit or loss.
Purchases and sales of financial assets are recognized on trade date, which is the date the Group commits to purchase or sell the
assets. Loans originated by the Group are recognized when cash is advanced to the borrowers.
Financial Assets measured at Amortized Cost (‘AC’)
The Group classifies and measures a financial asset at AC only if both of the following conditions are met and is not designated as at
FVTPL:
(a) The financial asset is held within a business model whose objective is to collect contractual cash flows (hold-to-collect business
model) and
(b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding (SPPI).
These financial assets are recognized initially at fair value plus or minus direct and incremental transaction costs and fees received
that are attributable to the acquisition of these assets, and are subsequently measured at amortized cost, using the effective interest
rate (EIR) method (as described in note 2.2.5 above).
Interest income, realized gains and losses on derecognition, and changes in expected credit losses from assets classified at AC, are
included in the income statement.
Financial Assets measured at Fair Value through Other Comprehensive Income (‘FVOCI’)
The Group classifies and measures a financial asset at FVOCI only if both of the following conditions are met and is not designated as
at FVTPL:
(a) The financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets (hold-to-collect-and-sell business model) and
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(b) The contractual terms of the financial asset give rise on specified dates to cash flows that are SPPI.
Financial assets that meet these criteria are debt instruments and are measured initially at fair value, plus or minus direct and
incremental transaction costs that are attributable to the acquisition of these assets.
Subsequent to initial recognition, FVOCI debt instruments are re-measured at fair value through OCI, except for interest income,
related foreign exchange gains or losses and expected credit losses, which are recognized in the income statement. Cumulative gains
and losses previously recognized in OCI are transferred from OCI to the income statement when the debt instrument is derecognised.
Equity Instruments designated at FVOCI
The Group may make an irrevocable election to designate an equity instrument at FVOCI. This designation, if elected, is made at initial
recognition and on an instrument by instrument basis. Gains and losses on these instruments, including when derecognized, are
recorded in OCI and are not subsequently reclassified to the income statement. Dividends received are recorded in the income
statement.
Financial Assets measured at Fair Value through Profit and Loss (“FVTPL”)
The Group classifies and measures all other financial assets that are not classified at AC or FVOCI, at FVTPL. Derivative financial
instruments are measured at FVTPL with changes in fair value recognized in the income statement, unless they are designated as
effective hedging instruments, where hedge accounting requirements under IAS 39 apply (as described in note 2.2.3 above).
Furthermore, a financial asset that meets the above conditions to be classified at AC or FVOCI, may be irrevocably designated by the
Group at FVTPL at initial recognition, if doing so eliminates, or significantly reduces an accounting mismatch that would otherwise
arise.
Financial assets measured at FVTPL are initially recorded at fair value and any unrealized gains or losses arising due to changes in fair
value are included in the income statement.
Business model and contractual characteristics assessment
The business model assessment determines how the Group manages a group of assets to generate cash flows. That is, whether the
Group's objective is solely to collect contractual cash flows from the asset, to realize cash flows from the sale of assets, or both to
collect contractual cash flows and cash flows from the sale of assets. In addition, the business model is determined after aggregating
the financial assets into groups (business lines) which are managed similarly rather than at an individual instrument’s level.
The business model is determined by the Group’s key management personnel consistently with the operating model, considering
how financial assets are managed in order to generate cash flows, the objectives and how performance of each portfolio is monitored
and reported and any available information on past sales and on future sales’ strategy, where applicable.
Accordingly, in making the above assessment, the Group will consider a number of factors including the risks associated with the
performance of the business model and how those risks are evaluated and managed, the related personnel compensation, and the
frequency, volume and reasons of past sales, as well as expectations about future sales activity.
Types of business models
The Group’s business models fall into three categories, which are indicative of the key strategies used to generate returns.
The hold-to-collect (HTC) business model has the objective to hold the financial assets in order to collect contractual cash flows.
Financial assets classified within this business model include investment securities, due from banks and loans and advances to
customers including securitization notes issued by special purpose entities established by the Group and recognized in its balance
sheet, which are measured at amortized cost. Sales within this model are monitored per financial asset class and may be performed
for reasons which are not inconsistent with this business model. More specifically, sales of financial assets due to credit deterioration,
as well as sales close to the maturity are considered consistent with the objective of hold-to-collect contractual cash flows regardless
of value and frequency. Sales for other reasons may be consistent with the HTC model such as liquidity needs in any stress case
scenario or sales made to manage high concentration level of credit risk. Such sales are monitored and assessed depending on
frequency and value to conclude whether they are consistent with the HTC model.
The hold-to-collect-and-sell business model (HTC&S) has the objective both to collect contractual cash flows and sell the assets.
Activities such as liquidity management, interest yield and duration are consistent with this business model, while sales of assets are
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integral to achieving the objectives of this business model. Financial assets classified within this business model include investment
securities which are measured at FVOCI, subject to meeting the SPPI assessment criteria.
Other business models include financial assets which are managed and evaluated on a fair value basis as well as portfolios that are
held for trading. This is a residual category for financial assets not meeting the criteria of the business models of HTC or HTC&S, while
the collection of contractual cash flows may be incidental to achieving the business models’ objective.
The Group’s business models are reassessed at least annually or earlier, if there is a sales’ assessment trigger or if there are any
changes in the Bank’s strategy and main activities, as evidenced by the Bank’s business plan, budget and NPE strategy.
Cash flow characteristics assessment
For a financial asset to be measured at AC or FVOCI, its contractual terms must give rise on specified dates to cash flows that are
solely payments of principal and interest (SPPI) on the principal amount outstanding. For the purpose of this assessment principal is
defined as the fair value of the asset at initial recognition and interest as the consideration for the time value of money, credit risk,
other basic lending risks and a profit margin.
More specifically, at initial recognition of a financial asset, an assessment is performed of whether the financial asset contains a
contractual term that could change the amount or timing of contractual cash flows in a way that it would not be consistent with the
above condition. The Group considers the existence of various features, including among others, contractually linked terms,
prepayment terms, deferred interest-free payments, extension and equity conversion options, terms that introduce leverage
including index linked payments, as well as environmental, social and governance linked features (ESG) where the contractual interest
rate is adjusted if the borrower meets, or fail to meet specific sustainability performance targets. Where the contractual terms
introduce exposure to risk or volatility that are inconsistent with a basic lending arrangement, the related financial asset is considered
to have failed the SPPI assessment and will be measured at FVTPL.
In addition, if a contractual feature could have an effect that is de-minimis on the contractual cash flows of the financial asset, it does
not affect its classification. Moreover, a contractual feature is considered as not genuine by the Group, if it affects the instrument’s
contractual cash flows only on the occurrence of an event that is extremely rare, highly abnormal and very unlikely to occur. In such
a case, it does not affect the instrument’s classification.
Moreover, for the securitization notes issued by special purpose entities and held by the Group, the cash flow characteristics of the
notes and the underlying pool of financial assets as well as the credit risk inherent in each securitization’s tranche compared to the
credit risk of all of the underlying pool of financial assets, are considered.
In case of special lending arrangements such as non-recourse loans, in its assessment of the SPPI criterion, the Group considers various
factors such as the nature of the borrower and its business, the pricing of the loans, whether it participates in the economic
performance of the underlying asset and the extent to which the collateral represents all or a substantial portion of the borrower’s
assets. Moreover, for non-recourse loans, the Group takes into consideration the borrower’s adequacy of loss absorbing capital by
assessing jointly the criteria of equity sufficiency, Loan to Value ratio (LTV), the Average Debt Service Coverage ratio (ADSCR) as well
as the existence of corporate and personal guarantees.
In certain cases when the time value of money element is modified in that the financial asset’s interest rate is periodically reset but
the reset frequency does not match the tenor of the interest rate or when a financial asset’s interest rate is periodically reset to an
average of particular short-term and long-term interest rates, a quantitative assessment is performed (the “Benchmark Test”) in order
to determine whether the contractual cash flows are SPPI.
In particular, the Group assesses the contractual cash flows of the “real instrument”, whose interest rate is reset with a frequency
that does not match the tenor of the interest rate, and those of the “benchmark instrument”, which are identical in all respects except
that the tenor of the interest rate matches exactly the interest period. If the undiscounted cash flows of the former are significantly
different from the benchmark cash flows due to the modified time value of money element, the financial asset does not meet the
SPPI criterion. In its assessment, the Group considers both the effect of the modified time value of money element in each reporting
period and cumulatively over the life of the instrument. This is done, as far as the lifetime of the instrument is concerned, by
comparing the cumulative projected undiscounted cash flows of the real and the benchmark instrument, and for each quarterly
reporting period, by comparing the projected undiscounted cash flows of the two instruments for that quarterly reporting period,
based on predefined thresholds.
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The Group performs the SPPI assessment for its lending exposures on a product basis for the retail and part of the wholesale portfolio
where contracts are of standardized form, whereas for the remaining wholesale portfolio, securitization notes issued by special
purpose entities, either established by the Group or third parties, and held by the Group, and debt securities the assessment is
performed on an individual basis.
Derecognition of financial assets
The Group derecognizes a financial asset when its contractual cash flows expire, or the rights to receive those cash flows are
transferred in an outright sale in which substantially all risks and rewards of ownership have been transferred. In addition, a financial
asset is derecognized even if rights to receive cash flows are retained but at the same time the Group assumes an obligation to pay
the received cash flows without a material delay (pass through agreement) or when substantially all the risks and rewards are neither
transferred nor retained but the Group has transferred control of the asset. Control is transferred if, and only if, the transferee has
the practical ability to sell the asset in its entirety to unrelated third party and is able to exercise that ability unilaterally and without
imposing additional restrictions on the transfer.
The main transactions that are subject to the above de-recognition rules are securitization transactions, repurchase agreements and
stock lending transactions. In the case of securitization transactions, in order to assess the application of the above mentioned de-
recognition principles, the Group considers the structure of each securitization transaction including its exposure to the more
subordinated tranches of the notes issued and/or credit enhancements provided to the special purpose entities, as well as the
securitization’s contractual terms that may indicate that the Group retains control of the underlying assets. In the case of repurchase
transactions and stock lending, the assets transferred are not derecognised since the terms of the transaction entail the retention of
all their risks and rewards.
On derecognition of a financial asset, the difference between the carrying amount of the asset and the sum of (i) the consideration
received (including any new asset obtained less any new liability assumed) and (ii) any cumulative gain or loss that had been
recognized in OCI for financial assets at FVOCI, is recognized in income statement, except for cumulative gains or losses of FVOCI
equity instruments which are not reclassified from OCI to income statement at the date of derecognition.
Modification of financial assets that may result in derecognition
In addition, derecognition of financial asset arises when its contractual cash flows are modified and the modification is considered
substantial enough so that the original asset is derecognized and a new one is recognised. Substantial modifications resulting in
derecognition may include among others change in borrower, change in the asset’s denomination currency, debt consolidation of
unsecured exposure into a single new secured asset. The Group records the modified asset as a ‘new’ financial asset at fair value plus
any eligible transaction costs and the difference with the carrying amount of the existing one is recorded in the income statement as
derecognition gain or loss.
The Group may modify the contractual terms of a lending exposure either as a concession granted to a client facing or that is about
to face financial difficulties or due to other commercial reasons such as changes in market conditions, competition or customer
retention.
In addition, the Group may occasionally enter, in the context of loans’ modifications, into debt-for-equity transactions. These are
transactions where the terms of a lending exposure are renegotiated and as a result, the borrower issues equity instruments (voting
or no voting) in order to extinguish part or all of its financial liability to the Group. Such transactions may include also exercise of
conversion rights embedded into convertible or exchangeable bonds and enforcement of shares held as collateral.
In debt-for-equity transactions, the modified loan is derecognized while the equity instruments received in exchange are recognized
at their fair value, with any resulting gain or loss recognized in the Group’s income statement.
2.2.10 Reclassifications of financial assets
The Group reclassifies a financial asset only when it changes its business model for managing financial assets. Generally, a change in
the business model is expected to be rare and occurs when the Group either begins or ceases to perform an activity that is significant
to its operations; for example, when a business line is acquired, disposed of or terminated. In the rare event when there is a change
to the existing business models, the updated assessment is approved by the Group’s competent Committees and the amendment is
reflected appropriately in the Group’s budget and business plan.
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Changes in intention related to particular financial assets (even in circumstances of significant changes in market conditions), the
temporary disappearance of a particular market for financial assets or a transfer of financial assets between parts of the Group with
different business models, are not considered by the Group changes in business model.
The reclassification is applied prospectively from the reclassification date, therefore previously recognized gains, losses (including
impairment losses) or interest are not restated.
2.2.11 Financial liabilities
Financial liabilities - Classification and measurement
The Group classifies its financial liabilities in the following categories: financial liabilities measured at amortized cost and financial
liabilities measured at fair-value-through -profit-or-loss (FVTPL).
Financial liabilities at FVTPL comprise two sub categories: financial liabilities held for trading and financial liabilities designated at fair-
value-through-profit-or-loss upon initial recognition.
Financial liabilities held for trading, which include short positions of debt securities (sold but not yet purchased), are liabilities that
the Group incurs principally for the purpose of repurchasing in the near term for short term profit or in the context of economic
hedging strategies of groups of assets and/or liabilities or net positions for which hedge accounting is not applied.
Additionally, the Group may also, at initial recognition, irrevocably designate financial liabilities at fair-value -through-profit-or-loss
when certain criteria are met.
Financial liabilities held for trading or designated at FVTPL are initially recognized at fair value. Changes in fair value are recognized in
the income statement, except for changes in the fair value of liabilities designated at fair-value-through-profit -or-loss attributable to
changes in the Group’s own credit risk, which are recognised in OCI and are not subsequently reclassified to the income statement
upon derecognition of the liabilities. However, if such treatment creates or enlarges an accounting mismatch in the income statement,
all gains or losses of this financial liability, including the effects of changes in the credit risk, are recognized in the income statement.
Derecognition of financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires. When an existing
financial liability of the Group is replaced by another from the same counterparty on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as an extinguishment of the original liability
and the recognition of a new liability and any difference arising is recognized in the income statement.
The Group considers the terms to be substantially different, if the discounted present value of the cash flows under the new terms,
including any fees paid net of any fees received and discounted using the original effective interest rate, is at least 10% different from
the discounted present value of the remaining cash flows of the original financial liability.
If an exchange of debt instruments or modification of terms is accounted for as an extinguishment, any costs or fees incurred are
recognized as part of the gain or loss on the extinguishment. If the exchange or modification is not accounted for as an extinguishment,
any costs or fees incurred adjust the carrying amount of the liability and are amortized over the remaining term of the modified
liability.
Similarly, when the Group repurchases any debt instruments issued by the Group, it accounts for such transactions as an
extinguishment of debt.
2.2.12 Fair value measurement of financial instruments
Fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date under current market conditions in the principal or, in its absence,
the most advantageous market to which the Group has access at that date. The fair value of a liability reflects its non-performance
risk.
When available, the Group measures the fair value of an instrument using the quoted price in an active market for that instrument.
A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide
pricing information on an ongoing basis. If there is no quoted price in an active market, then the Group uses other valuation
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techniques that maximize the use of relevant observable inputs and minimize the use of unobservable inputs. The chosen valuation
technique incorporates all of the factors that market participants would take into account in pricing a transaction.
The Group has elected to use mid-market pricing as a practical expedient for fair value measurements within a bid-ask spread.
The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price, i.e. the fair value
of the consideration given or received unless the Group determines that the fair value at initial recognition differs from the transaction
price. In this case, if the fair value is evidenced by a quoted price in an active market for an identical asset or liability (i.e. Level 1 input)
or based on a valuation technique that uses only data from observable markets, a day one gain or loss is recognized in the income
statement. On the other hand, if the fair value is evidenced by a valuation technique that uses unobservable inputs, the financial
instrument is initially measured at fair value, adjusted to defer the difference between the fair value at initial recognition and the
transaction price (day one gain or loss). Subsequently the deferred gain or loss is amortized on an appropriate basis over the life of
the instrument or released earlier if a quoted price in an active market or observable market data become available or the financial
instrument is closed out.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy based on the lowest level input that is significant to the fair value measurement as a whole.
For assets and liabilities that are measured at fair value on a recurring basis, the Group recognizes transfers into and out of the fair
value hierarchy levels at the beginning of the quarter in which a financial instrument's transfer was effected.
2.2.13 Impairment of financial assets
The Group recognizes allowance for expected credit losses (ECL) that reflect changes in credit quality since initial recognition to
financial assets that are measured at AC and FVOCI, including loans, securitization notes issued by special purpose entities established
by the Group, lease receivables, debt securities, as well as financial guarantee contracts and loan commitments. ECL are a probability-
weighted average estimate of credit losses that reflects the time value of money. Upon initial recognition of the financial instruments
in scope of the impairment policy, the Group records a loss allowance equal to 12-month ECL, being the ECL that result from default
events that are possible within the next twelve months. Subsequently, for those financial instruments that have experienced a
significant increase in credit risk (SICR) since initial recognition, a loss allowance equal to lifetime ECL is recognized, arising from
default events that are possible over the expected life of the instrument. If upon initial recognition, the financial asset meets the
definition of purchased or originated credit impaired (POCI), the loss allowance is based on the change in the ECL over the life of the
asset.
Loss allowances for trade receivables are always measured at an amount equal to lifetime ECL. For all other financial assets subject
to impairment, the general three-stage approach applies.
Accordingly, ECL are recognized using a three-stage approach based on the extent of credit deterioration since origination:
•
Stage 1 – When there is no significant increase in credit risk since initial recognition of a financial instrument, an amount
equal to 12-month ECL is recorded. The 12 – month ECL represent a portion of lifetime losses, that result from default events
that are possible within the next 12 months after the reporting date and is equal to the expected cash shortfalls over the
life of the instrument or group of instruments, due to loss events probable within the next 12 months. Not credit-impaired
financial assets that are either newly originated or purchased, as well as assets recognized following a substantial
modification accounted for as a derecognition, are classified initially in Stage 1.
•
Stage 2 – When a financial instrument experiences a SICR subsequent to origination but is not considered to be in default,
it is included in Stage 2. Lifetime ECL represent the expected credit losses that result from all possible default events over
the expected life of the financial instrument.
•
Stage 3 – Financial instruments that are considered to be in default are included in this stage. Similar to Stage 2, the
allowance for credit losses captures the lifetime expected credit losses.
•
POCI - Purchased or originated credit impaired (POCI) assets are financial assets that are credit impaired on initial
recognition. They are not subject to stage allocation and are always measured on the basis of lifetime expected credit losses.
Accordingly, ECL are only recognized to the extent that there is a subsequent change in the assets’ lifetime expected credit
losses. Any subsequent favorable change to their expected cash flows is recognized as impairment gain in the income
statement even if the resulting expected cash flows exceed the estimated cash flows at initial recognition. Apart from
purchased assets directly from the market or through a business combination, POCI assets may also include financial
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instruments that are considered new assets, following a substantial modification accounted for as a derecognition
section 2.2.9).
Definition of default
To determine the risk of default, the Group applies a default definition for accounting purposes, which is consistent with the European
Banking Authority (EBA) definition for non-performing exposure and regulatory definition of default as applied by the Group on 1
January 2021 (refer to note 5.2.1.2 (a)). The accounting definition of default is also consistent with the one used for internal credit
risk management purposes.
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of
that exposure have occurred:
•
The borrower faces a significant difficulty in meeting his financial obligations.
•
There has been a breach of contract, such as a default or unpaid amounts, above specified materiality thresholds, for more
than 90 consecutive days.
•
The Group, for economic or contractual reasons relating to the borrower’s financial difficulty, has granted to the borrower
a concession(s) that the Group would not otherwise consider.
•
There is a probability that the borrower will enter bankruptcy or other financial re-organization.
•
For POCI financial assets, a purchase or origination at a deep discount that reflects incurred credit losses is considered a
detrimental event. The Group assesses the deep discount criterion following a principle -based approach with the aim to
incorporate all reasonable and supportable information which reflects market conditions that exist at the time of the
assessment.
For debt securities, the Group determines the risk of default using an internal credit rating scale. The Group considers debt securities
as credit impaired if the internal rating of the issuer/counterparty corresponds to a rating equivalent to "C" (Moody's ratin g scale) or
the external rating of the issuer/counterparty at the reporting date is equivalent to “C” (Moody’s rating scale) and the internal rating
is not available.
Significant increase in credit risk (SICR) and staging allocation
Determining whether a loss allowance should be based on 12-month expected credit losses or lifetime expected credit losses depends
on whether there has been a significant increase in credit risk (SICR) of the financial assets, issued loan commitments and financial
guarantee contracts, since initial recognition.
At each reporting date, the Group performs an assessment as to whether the risk of a default occurring over the remaining expected
lifetime of the exposure has increased significantly from the expected risk of a default estimated at origination for that point in time.
The assessment for SICR is performed using both qualitative and quantitative criteria based on reasonable and supportable
information that is available without undue cost or effort including forward looking information and macroeconomic scenarios as
well as historical experience. Furthermore, regardless of the outcome of the SICR assessment based on the above triggers, the credit
risk of a financial asset is deemed to have increased significantly when contractual payments are more than 30 days past due.
As a primary criterion for SICR assessment, the Group compares the residual lifetime probability of default (PD) at each reporting date
to the residual lifetime PD for the same point in time which was expected at the origination.
The Group may also consider as a SICR trigger when the residual lifetime PD at each reporting date exceeds certain predetermined
values. The criterion may be applied in order to capture cases where the relative PD comparison does not result to the identification
of SICR although the absolute value of PD is at levels which are considered high based on the Group’s risk appetite framework.
Internal credit risk rating (on a borrower basis) is also used as a basis for the identification of SICR with regards to lending exposures
of the Wholesale portfolio. Specifically, the Group takes into consideration the changes of internal ratings by a certain number of
notches. In addition, a watchlist status is also considered by the Group as a trigger for SICR identification. Internal credit risk rating
models include borrower specific information as well as, forward-looking information regarding the prospects of the industry in which
it operates. For securitization notes issued by special purpose entities established by the Group, the SICR assessment is performed by
considering the performance of the underlying assets, where the level of their expected cash flows is compared to the carrying
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amount of the securitized notes. In addition, the assessment of SICR for debt securities is performed on an individual basis based on
the number of notches downgrade in the internal credit rating scale since the origination date.
Forbearance measures as monitored by the Group are considered as a SICR trigger and thus the exposures are allocated into Stage 2
upon forbearance, unless they are considered credit-impaired or the net present value of their cash flows before and after the
restructuring exceed the threshold of 1%, in which cases they are classified as Stage 3. Furthermore, regardless of the outcome of the
SICR assessment based on the above triggers, the credit risk of a financial asset is deemed to have increased significantly when
contractual payments are more than 30 days past due.
Furthermore, Management may apply temporary collective adjustments when determining whether credit risk has increased
significantly since initial recognition on exposures that share the same credit risk characteristics to reflect macro-economic or other
factors which are not adequately addressed by the current credit risk models. These factors may depend on information such as the
type of the exposure, counterparty’s specific information and the characteristics of the financial instrument, while their application
requires the application of significant judgment.
Transfers from Stage 2 to Stage 1
A financial asset, which is classified to Stage 2 due to Significant Increase in Credit Risk (SICR), is reclassified to Stage 1, as long as it
does not meet anymore any of the Stage 2 Criteria.
Where forbearance measures have been applied, the Group uses a probation period of two years, in order to fulfill the requirements
for a transfer back to Stage 1. If at the end of that period the borrowers have made regular payments of a significant aggregate
amount, there are no past due amounts over 30 days and the loans are neither credit impaired, nor any other SICR criteria are met,
they exit forborne status and are classified as stage 1.
Transfers from Stage 3 to Stage 2
A financial asset is transferred from Stage 3 to Stage 2, when the criteria based on which the financial asset was characterized as
credit impaired are no longer valid and the applicable probation period for the assets’ return in non impaired status, ranging from
three to twelve months, has passed.
Criteria for grouping of exposures based on shared credit risk characteristics
The assessment of loss allowance is performed either on an individual basis or on a collective basis for groups of similar items with
homogeneous credit risk characteristics. The Group applies the same principles for assessing SICR since initial recognition when
estimating ECL on a collective or on an individual basis.
The Group segments its lending exposures on the basis of shared credit risk characteristics for the purposes of both assessing
significant increase in credit risk and measuring loan loss allowance on a collective basis. The different segments aim to capture
differences in PDs and in the rates of recovery in the event of default.
The shared credit risk characteristics used for the segmentation of exposures include several elements such as: instrument type,
portfolio type, asset class, product type, industry, originating entity, credit risk rating, remaining term to maturity, geographical
location of the borrower, value of collateral to the financial asset, forbearance status and days in arrears.
The Group identifies individually significant exposures and performs the ECL measurement based on borrower specific information
for both retail and wholesale portfolios. This measurement is performed at a borrower level, hence the criteria are defined at this
level, while both qualitative and quantitative factors are taken into consideration including forward looking information.
For the remaining retail and wholesale exposures, ECL are measured on a collective basis. This incorporates borrower specific
information, collective historical experience of losses and forward-looking information. For debt securities and securitization notes
issued by special purpose entities established by the Group, the measurement of impairment losses is performed on an individual
basis.
Measurement of Expected Credit Losses
The measurement of ECL is an unbiased probability-weighted average estimate of credit losses that reflects the time value of money,
determined by evaluating a range of possible outcomes. A credit loss is the difference between the cash flows that are due to the
Group in accordance with the contractual terms of the instrument and the cash flows that the Group expects to receive (i.e. cash
shortfalls) discounted at the original effective interest rate (EIR) of the same instrument, or the credit-adjusted EIR in case of
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purchased or originated credit impaired assets (POCI). In measuring ECL, information about past events, current conditions and
reasonable and supportable forecasts of future conditions are considered. For undrawn commitments, ECL are calculated as the
present value of the difference between the contractual cash flows due if the commitment was drawn and the cash flows expected
to be received, while for financial guarantees ECL are measured as the expected payments to reimburse the holder less any amounts
that the Group expects to receive.
The Group estimates expected cash shortfalls, which reflect the cash flows expected from all possible sources, including collateral,
guarantees and other credit enhancements that are part of the contractual terms and are not recognized separately. In case of a
collateralized financial instrument, the estimated expected cash flows related to the collateral reflect the amount and timing of cash
flows that are expected from liquidation less the discounted costs of obtaining and selling the collateral, irrespective of whether
liquidation is probable.
ECL are calculated over the maximum contractual period over which the Group is exposed to credit risk, which is determined based
on the substantive terms of the instrument, or in case of revolving credit facilities, by taking into consideration factors such as the
Group’s expected credit risk management actions to mitigate credit risk and past practice.
Receivables from customers arising from the Group’s activities other than lending, are presented under Other Assets and are typically
short term. Therefore, considering that usually there is no significant financing component, the loss allowance for such financial assets
is measured at an amount equal to the lifetime expected credit losses under the simplified approach.
ECL Key Inputs
The ECL calculations are based on the term structures of the probability of default (PD), the loss given default (LGD), the exposure at
default (EAD) and other input parameters such as the credit conversion factor (CCF) and the prepayment rate. Generally, the Group
derives these parameters from internally developed statistical models and observed point -in-time and historical data, leveraging the
existing infrastructure development for the regulatory framework and risk management practices.
The PD represents the likelihood of default assessed on the prevailing economic conditions at the reporting date, adjusted to take
into account estimates of future economic conditions that are likely to impact the risk of default, over a given time horizon.
The Group uses Point in Time (PiT) PDs in order to remove any bias towards historical data thus aiming to reflect management’s view
of the future as at the reporting date, incorporating relevant forward looking information including macroeconomic scenarios.
Two types of PD are used for calculating ECL:
•
12-month PD, which is the estimated probability of default occurring within the next 12 months (or over the remaining life
of the financial asset if this is less than 12 months). It is used to calculate 12-month ECL for Stage 1 exposures.
•
Lifetime PD, which is the estimated probability of a default occurring over the remaining life of the financial asset. It is used
to calculate lifetime ECL for Stage 2, Stage 3 and POCI exposures.
For debt securities, PDs are obtained by an international rating agency using risk methodologies that maximize the use of objective
non-judgmental variables and market data. The Group assigns internal credit ratings to each issuer/counterparty based on these PDs.
In case of counterparties for which no information is available, the Group assigns PDs which are derived from internal models.
The Exposure at default (EAD) is an estimate of the exposure at a future default date, taking into account expected changes in the
exposure after the reporting date, including repayments of principal and interest and expected drawdowns on committed facilities.
The EAD includes both on and off balance sheet exposures. The on balance sheet exposure corresponds to the total amount that has
been withdrawn and is due to be paid, which includes the outstanding principal, accrued interest and any past due amounts. The off
balance sheet exposure represents the credit that is available to be withdrawn, in excess of the on balance sheet exposure.
Furthermore, the CCF factor is used to convert the amount of a credit facility and other off-balance sheet amounts to an EAD amount.
It is a modelled assumption which represents a proportion of any undrawn exposure that is expected to be drawn prior to a default
event occurring.
In addition, the prepayment rate is an estimate of early prepayments on loan exposure in excess of the contractual repayment
according to the repayment schedule and is expressed as a percentage applied to the EAD at each period, reducing the latter amount
accordingly.
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LGD represents the Group's expectation of the extent of loss on a defaulted exposure and it is the difference between the contractual
cash flows due and those that the Group expects to receive including any amounts from collateral liquidation. LGD varies by type of
counterparty, type and seniority of claim, availability of collateral or other credit support, and is usually expressed as a percentage of
EAD. The Group distinguishes its loan portfolios into two broad categories i.e. secured and unsecured. The Group estimates the LGD
component using cure rates that reflect cash recoveries, estimated proceeds from collateral liquidation, estimates for timing
realization, realization costs, etc. Where the LGD’s component values are dependent on macro – economic data, such types of
dependencies are reflected by incorporating forward looking information, such as forecasted price indices into the respective models.
The estimation of the aforementioned component values within LGD reflects available historical data which cover a reasonable
period, i.e. a full economic cycle.
For debt securities, the LGD is typically based on historical data derived mainly from rating agencies’ studies but may also be
determined considering the existing and expected liabilities structure of the obligor and macroeconomic environment.
Furthermore, the seniority of the debt security, any potential collaterals by the obligor or any other type of coverage is taken into
account for the calculation.
Forward-looking information
The measurement of expected credit losses for each stage and the assessment of significant increases in credit risk consider
information about reasonable and supportable forecasts of future events and macroeconomic conditions. The estimation and
application of forward-looking information requires significant judgment.
The Group uses three macroeconomic scenarios (i.e. base, adverse and optimistic) to achieve the objective of measuring ECL in a way
that reflects an unbiased and probability weighted outcome. The baseline scenario represents the most likely scenario and is aligned
with the information used by the Group for strategic planning and budgeting purposes.
The scenarios are reflected in the risk parameters, and, namely 12-month PD, Lifetime PD and LGD, hence 3 sets of each of these
parameters are used, in line with the scenarios developed.
The Group then proceeds to the calculation of weights for each scenario, which represent the probability of occurrence for each of
these scenarios. These weights are applied on the 3 sets of calculations of the parameters in order to produce a single scenario
weighted risk parameter value which is subsequently used in both SICR assessment and ECL measurement. ECL calculation
incorporates forward-looking macroeconomic variables, including GDP growth rates, house price indices, unemployment rates,
interest rates, inflation, etc. In order to capture material non – linearities in the ECL model, in the case of individually significant
exposures, the Group considers the relevance of forward looking information to each specific group of borrowers primarily on the
basis of the business sector they belong and other drivers of credit risk (if any).
Modified Financial Assets
In cases where the contractual cash flows of a financial asset have been modified and the modification is considered substantial
enough (for the triggers of derecognition, refer to Derecognition of Financial assets in section 2.2.9 above), the modificati on date is
considered to be the date of initial recognition for impairment calculation purposes, including for the purposes of determining
whether a significant increase in credit risk has occurred. Such a modified asset is typically classified as Stage 1 for ECL measurement
purposes. However, in some circumstances following a modification that results in derecognition of the original financial asset, there
may be evidence that the new financial asset is credit-impaired at initial recognition, and thus, the financial asset is recognized as an
originated credit-impaired financial asset (POCI).
In cases where the contractual cash flows of a financial asset have been modified and the modification is not considered substantial
enough, the Group recalculates the gross carrying amount of the financial asset and recognizes the difference as a modification gain
or loss in the income statement and determines if the financial asset’s credit risk has increased significantly since initial recognition
by comparing the risk of a default occurring at initial recognition based on the original unmodified contractual terms and the risk of
a default occurring at the reporting date, based on the modified contractual terms.
Presentation of impairment allowance
For financial assets measured at amortized cost, impairment allowance is recognized as a loss allowance reducing the gross carrying
amount of the financial assets in the balance sheet. For debt instruments measured at FVOCI, impairment allowance is recognized in
other comprehensive income and does not reduce the carrying amount of the debt instruments in the balance sheet. For off-balance
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sheet financial items arising from lending activities, impairment allowance is presented in Other Liabilities. The respective ECL for the
above financial items is recognised within impairment losses.
Write-off of financial assets
Where the Group has no reasonable expectations of recovering a financial asset either in its entirety or a portion of it, the gross
carrying amount of that instrument is reduced directly, partially or in full, against the impairment allowance. The amount written-off
is considered as derecognized. Subsequent recoveries of amounts previously written off decrease the amount of the impairment
losses in the income statement.
Financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures
for recovery of amounts due.
2.2.14 Sale and repurchase agreements, securities lending and borrowing
(i) Sale and repurchase agreements
Securities sold subject to repurchase agreements (repos) continue to be recorded in the Group's Balance Sheet as the Group retains
substantially all risks and rewards of ownership, while the liability to the counterparty is included in amounts due to other banks or
due to customers, as appropriate, and measured at amortized cost. Securities purchased under agreements to resell (reverse repos)
are recorded as loans and advances to other banks or customers, as appropriate, and measured at amortized cost. The difference
between the sale and repurchase price in case of repos and the purchase and resale price in case of reverse repos is recognized as
interest and accrued over the period of the repo or reverse repo agreements using the effective interest method. .
(ii) Securities lending and borrowing
Securities lent to counterparties against the receipt of a fee continue to be recognized in the financial statements. Securities borrowed
are recognized as trading liabilities when sold to third parties and measured at fair value with any gains or losses included in the
income statement.
2.2.15 Leases
T
he Group enters into leases either as a lessee or as a lessor. At inception of a contract, the Group assesses whether a contract is, or
contains, a lease.
(i) Accounting for leases as lessee
When the Group becomes the lessee in a lease arrangement, it recognizes a lease liability and a corresponding right-of-use (RoU)
asset at the commencement of the lease term when the Group acquires control of the physical use of the asset.
Lease liabilities are presented within Other liabilities and RoU assets within Property and equipment and investment property. Lease
liabilities are measured based on the present value of the future lease payments over the lease term, discounted using an incremental
borrowing rate. The interest expense on lease liabilities is presented within net interest income.
The lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change
in the Group’s estimate of the amount expected to be payable under a residual value guarantee or if the Group changes its assessment
of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying
amount of the right-of-use asset has been reduced to zero.
The RoU asset is initially recorded at an amount equal to the lease liability and is adjusted for rent prepayments, initial direct costs,
or lease incentives received. Subsequently, the RoU asset is depreciated over the shorter of the lease term or the useful life of the
underlying asset, with the depreciation presented within operating expenses.
When a lease contains extension or termination options that the Group considers reasonably certain to be exercised, the expected
future lease payments or costs of early termination are included within the lease payments used to calculate the lease liability.
The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and short-term leases.
The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.
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(ii) Accounting for leases as lessor
At inception date of the lease, the Group, acting as a lessor, classifies each of its leases as either an operating lease or a finance lease
based on whether the lease transfers substantially all of the risks and rewards incidental to the ownership of the underlying asset. If
this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers
certain indicators such as whether the lease is for the major part of the economic life of the asset.
Finance leases
At commencement date, the Group derecognizes the carrying amount of the underlying assets held under finance lease, recognizes
a receivable at an amount equal to the net investment in the lease and recognizes, in income statement, any profit or loss from the
derecognition of the asset and the recognition of the net investment. The net investment in the lease is calculated as the present
value of the future lease payments in the same way as for the lessee.
After commencement date, the Group recognizes finance income over the lease term, based on a pattern reflecting a constant
periodic rate of return on the lessor’s net investment in the lease. The Group also recognizes income from variable payments that are
not included in the net investment in the lease. After lease commencement, the net investment in a lease is not remeasured unless
the lease is modified or the lease term is revised.
Operating leases
The Group continues to recognize the underlying asset and does not recognize a net investment in the lease on the balance sheet or
initial profit (if any) on the income statement.
The Group recognizes lease payments from the lessees as income on a straight-line basis or another systematic basis considered as
appropriate. Also it recognizes costs, including depreciation, incurred in earning the lease income as an expense. The Group adds
initial direct costs incurred in obtaining an operating lease to the carrying amount of the underlying asset and recognizes those costs
as an expense over the lease term on the same basis as the lease income.
Subleases
The Group, acting as a lessee, may enter into arrangements to sublease a leased asset to a third party while the original lease contract
is in effect. The Group acts as both the lessee and lessor of the same underlying asset. The sublease is a separate lease agreement, in
which the intermediate lessor classifies the sublease as a finance lease or an operating lease as follows:
•
if the head lease is a short-term lease, the sublease is classified as an operating lease; or
•
otherwise, the sublease is classified by reference to the right-of-use asset arising from the head lease, rather than by
reference to the underlying asset.
2.2.16 Insurance and reinsurance contracts
Definition and classification of insurance and reinsurance contracts
IFRS 17 is applicable to insurance contracts, reinsurance contracts and investment contracts with discretionary participation features.
Insurance contracts are contracts under which the Group accepts significant insurance risk from a policyholder by agreeing to
compensate the policyholder if a specified uncertain future event adversely affects the policyholder. The Group only issues insurance
contracts (including unit-linked contracts). In making this assessment, all substantive rights and obligations, including those arising
from law or regulation, are considered on a contract-by-contract basis at the contract issue date.
Insurance contracts are classified as direct participating contracts or contracts without direct participation features. The unit-linked
contracts issued by the Group are classified as direct participating contracts. Such contracts allow policyholders to participate in
investment returns with the Group, in addition to compensation for losses from insured risk. These contracts are substantially
investment service-related contracts where the return on the underlying portfolios of investment assets is shared with policyholders.
The Group also holds reinsurance contracts that transfer significant insurance risk, or are deemed to transfer significant insurance
risk, since they transfer to the reinsurer substantially all the insurance risk relating to the reinsured portions of the underlying
insurance contracts.
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Insurance contracts issued are aggregated at a portfolio level once they are subject to similar risks and are managed together. In
addition, reinsurance contracts held are grouped into portfolios by taking into consideration the nature of the risk and the type of
reinsurance cover.
At initial recognition, the Group segregates contracts based on when they were issued. An annual cohort contains all contracts that
were issued within a 12-month period. Each annual cohort is then further disaggregated into three groups of contracts: (a) contracts
that are onerous on initial recognition; (b) contracts that, on initial recognition, have no significant possibility of becoming onerous
subsequently; and (c) any remaining contracts in the annual cohort.
The composition of groups established at initial recognition is not subsequently reassessed.
Recognition
The Group recognises groups of insurance contracts that it issues from the earliest of the following: (a) the beginning of the coverage
period of the group of contracts, (b) the date when the first payment from a policyholder in the group is due, or when the first
payment is received if there is no due date, or (c) when the Group determines that a group of contracts becomes onerous.
The Group recognises a group of reinsurance contracts held (a) if the reinsurance contracts provide proportionate coverage, at the
later of the beginning of the coverage period of the group, or the initial recognition of any underlying contract, or (b) in all other
cases, from the beginning of the coverage period of the first contract in the group.
Measurement of insurance contracts issued
The carrying amount of a group of insurance contracts at each reporting date is the sum of the liability for remaining coverage (“LRC”)
and the liability for incurred claims (“LIC”).
The LRC represents the Group’s obligation to investigate and pay valid claims under existing contracts for insured events that have
not yet occurred (i.e. the obligation that relates to the unexpired portion of the coverage period).
The LIC includes the Group’s liability to pay valid claims for insured events that have already incurred, other incurred insurance
expenses arising from past coverage service and the liability for claims incurred but not yet reported. It also includes the Group’s
liability to pay amounts the Group is obliged to pay the policyholder under the contract, including repayment of investment
components, when a contract is derecognised.
Initial and subsequent measurement of contracts under the general measurement model (“GMM”) and the variable fee approach
("VFA”)
Under the GMM and the VFA, the Group measures a group of contracts on initial recognition as the sum of the expected fulfilment
cash flows (’FCF’’) and the contractual service margin (‘’CSM’’) representing the unearned profit in the contracts relating to services
that will be provided under the contracts. The Group applies the GMM approach to its life insurance contracts (except its group life
contracts and other life contracts with coverage period of one year or less) as well as to reinsurance contracts with coverage period
over one year, while the VFA approach is applied to life insurance contracts in the unit-linked portfolio.
FCF comprise unbiased and probability-weighted estimates of future cash flows, an adjustment to reflect the time value of money
and the financial risks related to future cash flows, to the extent that the financial risks are not included in the estimates of future
cash flows, plus a risk adjustment for non-financial risk. The Group estimates FCF considering a range of scenarios which have
commercial substance and give a good representation of possible outcomes, considering all supportable information at the reporting
date including historic evidence and information about trends. The cash flows from each scenario are probability-weighted and
discounted using current assumptions. The Group estimates certain FCF at the portfolio level or higher and then allocates such
estimates to groups of contracts.
At the end of each reporting period, the Group updates the fulfilment cash flows for both LIC and LRC to reflect the current estimates
of the amounts, timing and uncertainty of future cash flows, as well as discount rates and other financial variables.
The Risk Adjustment (“RA”) for non-financial risk for a group of insurance contracts, determined separately from the other estimates,
is the compensation required for bearing uncertainty about the amount and timing of the cash flows that arises from non-financial
risk. The RA also reflects the degree of diversification benefit the Group includes when determining the compensation it requires for
bearing that risk; and both favourable and unfavorable outcomes, in a way that reflects the Group’s degree of risk aversion.
Notes to the Consolidated Financial Statements
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The Contractual Service Margin (CSM) is a component of the overall carrying amount of a group of insurance contracts representing
unearned profit the Group will recognise as it provides insurance contract services over the coverage period. On initial recognition of
a group of insurance contracts, if the total of (a) the fulfilment cash flows, (b) any cash flows arising at that date and (c) any amount
arising from the derecognition of any assets or liabilities previously recognised for cash flows related to the group (including assets
for insurance acquisition cash flows) is a net inflow, the CSM is measured as the equal and opposite amount of the net inflow, which
results in no gain no loss, arising on initial recognition. In the case of net outflow, then the group is onerous. In this case, the net
outflow is recognised immediately as a loss in profit or loss. A loss component is created to depict the amount of the net cash outflow,
which determines the amounts that are subsequently presented in profit or loss as reversals of losses on onerous contracts and are
excluded from insurance revenue.
The CSM of a group of insurance contracts is recognised in profit or loss to reflect services provided in each year. Additionally, the
amount of CSM at the end of the reporting period is adjusted in order to reflect the effect of any new contracts added to the group,
changes to fulfilment cash flows relating to future service, the amount recognized as insurance revenue because of the transfer of
services in the period.
For reinsurance contracts held, the CSM amortization reflects the level of service received and depends on the number of underlying
contracts in-force.
Experience adjustments relating to current or past service are recognized in profit or loss as part of insurance service expenses.
Experience adjustments relating to future service are included in the LRC by adjusting the CSM.
Measurement of contracts under the premium allocation approach (PAA)
The premium allocation approach is an optional simplified measurement model in IFRS 17 that is available to insurance contracts that
meet the eligibility criteria. The Group applies the PAA approach to substantially all its non-life insurance contracts, to group life
insurance contracts as well as to individual life contracts and reinsurance contracts with coverage period of one year or less. The
resulting LRC, under the PAA approach, is not discounted to reflect the time value of money and the effect of financial risk since at
initial recognition of each group of contracts, the expected time between providing each part of the services and the related premium
due date in no more than a year.
The carrying amount of the LRC at the end of each reporting period for a group of contracts that is not onerous, represents the
carrying amount at the start of the reporting period, plus premiums received in the period, minus insurance acquisition cash flows
paid in the period, plus any amounts relating to the amortisation of the acquisition cash flows recognised as an expense in the
reporting period, minus the amount recognised as insurance revenue for the services provided in the period.
Applying the PAA, the insurance revenue for the period consists of the amount of expected premium receipts including premium
experience adjustments allocated to the period.
Measurement of reinsurance contracts held
The same accounting policies are applied as for insurance contracts issued to measure a group of reinsurance contracts held.
Insurance contracts – modification and derecognition
The Group derecognises insurance contracts when the rights and obligations relating to the contract are extinguished (i.e., discharged,
cancelled or expired), or the contract is modified such that the modification results in (a) the contract being outside the scope of IFRS
17, (b) a different insurance contract due to separating components from the host contract, (c) a substantially different contract
boundary, or (d) the contract being included in a different group of contracts.
On derecognition of a contract from within a group of contracts, the fulfilment cash flows allocated to the group are adjusted to
eliminate those that relate to the rights and obligations derecognised, the CSM of the group is adjusted for the change in the fulfilment
cash flows (except where such changes are allocated to a loss component) and the number of coverage units for the expected
remaining services is adjusted to reflect the coverage units derecognised from the group.
When a modification is not treated as derecognition, the Group recognises amounts paid or received for the modification with the
contract as an adjustment to the relevant liability for remaining coverage.
Notes to the Consolidated Financial Statements
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Insurance service result
Insurance revenue reflects the consideration to which the Group expects to be entitled in exchange for the provision of coverage and
other services arising from a group of insurance contracts (excluding any investment components). For insurance contracts under the
Premium allocation approach, insurance revenue is based on the expected premium of the period. Insurance service expenses
comprise the incurred claims and other incurred insurance service expenses (excluding any investment components), and losses on
onerous groups of contracts and reversals of such losses.
Insurance finance income or expenses
Insurance finance income and expenses comprise the change in the carrying amount of the group of insurance contracts arising from
the effects of the time value of money, financial risk and changes therein. For VFA contracts, changes in the fair value of underlying
items are recognised in insurance finance income or expenses.
2.2.17 Income tax
Income tax consists of current and deferred tax.
(i) Current income tax
Income tax payable on profits, based on the applicable tax law in each jurisdiction and the tax rate enacted at the reporting date, is
recognized as an expense in the period in which profits arise.
(ii) Deferred tax
Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax base of assets and
liabilities and their carrying amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws)
that have been enacted or substantively enacted by the balance sheet date. The principal temporary differences arise from
impairment/valuation and accounting write-offs relating to loans, Private Sector Initiative (PSI+) tax related losses, losses from
disposals and crystallized write-offs of loans, depreciation of property and equipment, fair value adjustment of investment property,
pension and other retirement benefit obligations, and revaluation of certain financial assets and liabilities, including derivative
financial instruments.
Deferred tax assets are recognized where it is probable that future taxable profit will be available against which the temporary
differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Any such
reduction is reversed to the extent that it becomes probable that sufficient taxable profit will be available. The Group recognises a
previously unrecognised deferred tax asset to the extent that it has become probable that future taxable profit will allow the deferred
tax asset to be recovered.
Deferred tax related to debt securities at FVOCI and cash flow hedges is recognized to other comprehensive income, and is
subsequently recognized in the income statement together with the deferred gain or loss.
The deferred tax asset on income tax losses carried forward is recognized as an asset when it is probable that future taxable profits
will be available against which these losses can be utilized.
The Group has applied the mandatory temporary exception (relief) to the requirement of IAS 12 and does not recognise or disclose
information about deferred taxes arising from the Pillar Two Income taxes.
(iii) Uncertain tax positions
The Group determines and assesses all material tax positions taken, including all, if any, significant uncertain positions, in all tax years
that are still subject to assessment (or when the litigation is in progress) by relevant tax authorities. In evaluating tax positions in
various states, local, and foreign jurisdictions, the Group examines all supporting evidence (Ministry of Finance circulars, individual
rulings, case law, past administrative practices, ad hoc tax/legal opinions etc.) to the extent they are applicable to the facts and
circumstances of the particular Group’s case/ transaction.
In addition, judgments concerning the recognition of a provision against the possibility of losing some of the tax positions are highly
dependent on advice received from internal/ external legal counselors. For uncertain tax positions with a high level of uncertainty,
Notes to the Consolidated Financial Statements
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the Group recognizes, on a transaction by transaction basis, or together as a group, depending on which approach better predicts the
resolution of the uncertainty using an expected value (probability -weighted average) approach: (a) a provision against tax receivable
which has been booked for the amount of income tax already paid but further pursued in courts or (b) a liability for the amount which
is expected to be paid to the tax authorities. The Group presents in its balance sheet all uncertain tax balances as current or deferred
tax assets or liabilities.
The Group as a general rule has opted to obtain for the Group’s Greek companies an ‘Annual Tax Certificate’, which is issued after a
tax audit is performed by the same statutory auditor or audit firm that audits the annual financial statements. Further information in
respect of the Annual Tax Certificate and the related tax legislation, as well as the unaudited tax years for the Group’s companies is
provided in note 13.
2.2.18 Employee benefits
(i) Short term benefits
Short term employee benefits are those expected to be settled wholly before twelve months after the end of the annual reporting
period in which the employees render the related services and are expensed as these services are provided.
(ii) Pension obligations
The Group provides a number of defined contribution pension plans where annual contributions are invested and allocated to specific
asset categories. Eligible employees are entitled to the overall performance of the investment. The Group's contributions are
recognized as employee benefit expense in the year in which they are paid.
(iii) Standard legal staff retirement indemnity obligations (SLSRI) and termination benefits
The Group operates unfunded defined benefit plans in Greece and Bulgaria, under broadly similar regulatory frameworks. In
accordance with the local labor legislation, the Group provides for staff retirement indemnity obligation for employees which are
entitled to a lump sum payment based on a) the number of years of service, as of the date when employee service first leads to
benefits under the plan until the date when further employee service will lead to no material amount of further benefits, and b) the
level of remuneration at the date of retirement, if they remain in the employment of the Group until normal retirement age. More
specifically, in line with the decision of IFRIC Committee for IAS 19 fact pattern issued in May 2021, the attribution of the benefit
begins from the date when the employee service first leads to benefits under the terms of the plan, and not from the employment
date, until the date when further employee service will lead to no material amount of further benefits.
In addition, the Group provides termination benefits mainly in respect of the Voluntary Exit Schemes (VES), which have been
implemented through either lump-sum payments or long-term leaves during which the employees will be receiving a percentage of
a monthly salary, or a combination thereof. Provision has been made for the actuarial value of the lump sum payable on retirement
(SLSRI) and termination benefits using the projected unit credit method. Under this method the cost of providing retirement
indemnities and termination benefits is charged to the income statement so as to spread the cost over the period of service of the
employees, in accordance with the respective actuarial valuations, which are performed every year.
The SLSRI and termination benefits obligation is calculated as the present value of the estimated future cash outflows using interest
rates of high quality corporate bonds. In countries where there is no deep market in such bonds, the yields on government bonds are
used. The currency and term to maturity of the bonds used are consistent with the currency and estimated term of the retirement
and termination benefit obligations. Actuarial gains and losses that arise in calculating the Group’s SLSRI and termination benefits
obligations are recognized directly in other comprehensive income in the period in which they occur and are not reclassified to the
income statement in subsequent periods.
Interest cost on the staff retirement indemnity and termination benefits obligations, as well as service cost, consisting of current
service cost, past service cost and gains or losses on settlement are recognized in the income statement.
Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an
employee accepts voluntary redundancy in exchange for these benefits (including those in the context of the VES implemented by
the Group). The Group recognizes termination benefits at the earlier of the following dates: (a) when the Group can no longer
withdraw the offer of those benefits; and (b) when the Group recognizes costs for a restructuring that involves the payment of
termination benefits. Any reversals of the SLRSI obligation arising from employees that are included in the long-term leaves scheme
are accounted for as a curtailment gain recognized in the income statement. In the case of an offer made to encourage voluntary
Notes to the Consolidated Financial Statements
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redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Termination
benefits falling due more than 12 months after the end of the reporting period are discounted to their present value.
(iv) Performance-based cash payments
The Group's Management awards high performing employees with bonuses in cash, from time to time, on a discretionary basis. Cash
payments requiring only Management approval are recognized as employee benefit expenses on an accrual basis. Cash payments
requiring General Meeting approval as distribution of profits to staff are recognized as employee benefit expense in the accounting
period that they are approved by the Group’s shareholders.
(v) Share-based payments
The Group’s Management awards employees with bonuses in the form of shares and share options on a discretionary basis and after
taking into account the current legal framework. Non-performance related shares vest in the period granted. Share based payments
that are contingent upon the achievement of a performance and service condition, vest only if both conditions are satisfied.
The fair value of the share options granted is recognized as an employee benefit expense over the vesting period, with an equal credit
in equity, i.e.no impact on the Group’s equity. The amount ultimately recognised as an expense is based on the number of awards
that meet the related service and non-market performance conditions at the vesting date.
The fair value of the share options at grant date is determined by using an adjusted option pricing model which takes into account
the exercise price, the exercise dates, the term of the option, the share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and the risk-free interest rate for the term of the options. The expected volatility is
measured at the grant date of the options and is based on the historical volatility of the share price.
For share-based payment awards with non-vesting conditions, the fair value of the share-based payment at grant date also reflects
such conditions and there is no true-up for differences between expected and actual outcomes.
When the options are exercised and new shares are issued, the proceeds received net of any directly attributable transaction costs
are credited to share capital (par value) and share premium.
2.2.19 Repossessed properties
Land and buildings repossessed through an auction process to recover impaired loans are, except where otherwise stated, included
in ‘Other Assets’. Assets acquired from an auction process are held temporarily for liquidation and are valued at the lower of cost and
net realizable value, which is the estimated selling price, in the ordinary course of business, less costs necessary to make the sale.
In cases where the Group makes use of repossessed properties as part of its operations, they may be reclassified to own occupied or
investment properties, as appropriate.
Any gains or losses on liquidation are included in the income statement.
2.2.20 Related party transactions
Related parties of the Group include:
(a) an entity that has control over the Group and entities controlled, jointly controlled or significantly influenced by this entity,
as well as members of its key management personnel and their close family members;
(b) an entity that has significant influence over the Group and entities controlled by this entity,
(c) members of key management personnel of the Group, their close family members and entities controlled or jointly controlled
by the abovementioned persons;
(d) associates and joint ventures of the Group;
(e) fellow subsidiaries;
(f) post-employment benefit plans established for the benefit of the Group’s employees.
Transactions of similar nature are disclosed on an aggregate basis. All banking transactions entered into with related parties are in
the normal course of business and are conducted on an arm's length basis.
Notes to the Consolidated Financial Statements
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2.2.21 Provisions and contingent liabilities
Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation, and reliable estimates of the amount
of the obligation can be made.
The amount recognized as a provision is the best estimate of the expenditure required to settle a present obligation at each reporting
date, taking into account the risks and uncertainties surrounding the amount of such expenditure. Where the effect of the time value
of money is material, the amount of the provision is the present value of the estimated future expenditures expected to be required
to settle the obligation.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If, subsequently, it is no longer
probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.
A provision is not recognized and a contingent liability is disclosed when it is not probable that an outflow of resources will be required
to settle the obligation, when the amount of the obligation cannot be measured reliably or in case that the obligation is considered
possible and is subject to the occurrence or non -occurrence of one or more uncertain future events.
2.2.22 Operating segment
An operating segment is a component of the Group that engages in business activities from which it may earn revenue and incur
expenses within a particular economic environment. Operating segments are identified on the basis of internal reports, regarding
operating results, of components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate
resources to the segment and to assess its performance. The chief operating decision maker has been identified as the Strategic
Planning Committee that is responsible for strategic decision making. Segment revenue, segment expenses and segment performance
include transfers between business segments. Such transfers are accounted for at competitive prices in line with charges to
unaffiliated customers for similar services.
2.2.23 Share capital
Ordinary shares and preference shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction from the proceeds, net of tax.
Dividend distribution on shares is recognized as a deduction in the Group’s equity when approved by the General Meeting of
shareholders and the required regulatory approvals, if any, are obtained. Interim dividends are recognized as a deduction in the
Group's equity when approved by the Board of Directors.
Intercompany non-cash distributions that constitute transactions between entities under common control are recorded in the
Group’s equity by reference to the book value of the assets distributed.
Where any Group entity purchases the Company’s equity share capital (treasury shares), the consideration paid including any directly
attributable incremental costs (net of income taxes), is deducted from shareholders’ equity until the shares are cancelled, reissued
or disposed of. Where such shares are subsequently sold or reissued, any consideration received is included in shareholders’ equity.
2.2.24 Financial guarantees and commitments to extend credit
Financial guarantees
Financial guarantee contracts are contracts that require the issuer to make specified payments to reimburse the holder for a loss it
incurs because a specified debtor fails to make payments when due, in accordance with the terms of a debt instrument. Financial
guarantees granted by the Group to financial institutions and other bodies on behalf of customers to secure loans, overdrafts and
other banking facilities, are initially recognized at fair value, being the premium received. Subsequent to initial recognition, such
guarantees are measured at the higher of the amount of the ECL allowance, and the amount initially recognised less any cumulative
amortization of the fee earned, where appropriate.
Financial guarantees purchased by the Group that are considered as integral to the contractual terms of the guaranteed instrument
are not accounted for separately and the cash flows from the guarantee are taken into account in the measurement of the guaranteed
instrument’s expected credit losses, whereas any fees paid or transaction costs incurred for the acquisition of the financial guarantee
are considered as part of the guaranteed asset’s effective interest rate.
Notes to the Consolidated Financial Statements
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On the other hand, financial guarantees purchased that are not considered as integral to the contractual terms of the guaranteed
instruments are accounted for separately where a reimbursement asset is recognized and included in Other Assets once is its virtually
certain that, under the terms and conditions of the guarantee, the Group will be reimbursed for the credit loss incurred. The changes
in the carrying amount of the above reimbursement asset arising from financial guarantees, entered into to mitigate the credit risk
of lending exposures measured at amortized cost, are recognized under ‘Impairment losses’ in the Group’s income statement.
Commitments to extend credit
Commitments represent off-balance sheet items where the Group commits, over the duration of the agreement, to provide a loan
with pre-specified terms to the customer. Such contractual commitments represent commitments to extend credit and standby
letters and they are part of the normal lending activities of the Group, for which an ECL allowance is recognised under IFRS 9.
ECL allowance for off-balance sheet exposures (financial guarantees granted and commitments) is included within Other Liabilities.
2.2.25 Non-current assets classified as held for sale and discontinued operations
Non-current assets are classified as held for sale if their carrying amount will be recovered through a sale transaction rather than
through continuing use. For a non - current asset to be classified as held for sale, it is available for immediate sale in its present
condition, subject to terms that are usual and customary for sales of such assets, and the sale is considered to be highly probable. In
such cases, management is committed to the sale and actively markets the property for sale at a price that is reasonable in relation
to the current fair value. The sale is also expected to qualify for recognition as a completed sale within one year from the date of
classification. Before their classification as held for sale, such assets or disposal groups are remeasured in accordance with the
respective accounting standard.
Assets held for sale are subsequently remeasured at the lower of their carrying amount and fair value less cost to sell. Any loss arising
from the above measurement is recorded in profit or loss and can be reversed in the future. When the loss relates to a disposal group,
it is allocated to the assets within that disposal group. Those assets and liabilities that are not in the scope of the measurement
requirements of IFRS 5 ‘Non-current assets held for sale and discontinued operations’, such as financial instruments and investment
properties measured at fair value, continue to be measured in accordance with the Group’s relevant accounting policies, despite their
classification as held for sale.
The Group presents discontinued operations in a separate line in the consolidated income statement. if a Group entity or a component
of a Group entity has been disposed of or is classified as held for sale and:
(a) Represents a separate major line of business or geographical area of operations;
(b) Is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or
(c) Is a subsidiary acquired exclusively with a view to resale.
Profit or loss from discontinued operations includes the profit or loss before tax from discontinued operations, the gain or loss on
disposal before tax or measurement to fair value less costs to sell and discontinued operations tax expense. Intercompany
transactions between continuing and discontinued operations are presented on a gross basis in the income statement. Upon
classification of a Group entity as a discontinued operation, the Group restates prior periods in the consolidated income statement.
2.2.26 Cash and cash equivalents
Cash and cash equivalents include cash in hand, unrestricted deposits with central banks, due from credit institutions that are all
carried at amortised cost and other short-term highly liquid investments with original maturities of three months or less that are held
for trading.
2.2.27 Government grants
Government grants are recognized when there is reasonable assurance that the grant will be received and the Group will comply with
the conditions attached to it. The grants are recognized in the income statement on a systematic basis to match the way that the
Group recognizes the expenses for which the grants are intended to compensate. In case of subsequent changes in the Group’s
expectations of meeting the conditions attached to the government grants, the effect of such changes is recognised in income
statement.
Notes to the Consolidated Financial Statements
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2.2.28 Fiduciary activities
The Group provides custody, trustee, corporate administration, investment management and advisory services to third parties that
result in the holding or investing of assets on behalf of its clients. Those assets that are held in a fiduciary capacity are not assets of
the Group and are not recognized in the financial statements. In addition, the Group does not guarantee these investments and as a
result it is not exposed to any credit risk in relation to them.
3. Critical accounting estimates and judgments in applying accounting policies
In the process of applying the Group’s accounting policies, Management makes various judgments, estimates and assumptions that
may affect the reported amounts of assets and liabilities, revenues and expenses recognized in the financial statements within the
next financial year and the accompanying disclosures. Estimates and judgments are continually evaluated and are based on current
conditions, historical experience and other factors, including expectations of future events that are believed to be reasonable under
the circumstances. Revisions to estimates are recognized prospectively. The most significant areas in which the Group makes
judgments, estimates and assumptions in applying its accounting policies are set out below:
3.1 Impairment losses on loans and advances to customers
The economies in which the Group operates are expected to continue presenting positive growth rates despite the challenging
international environment. In 2024, the Group's asset quality continued its solid performance as demonstrated by the level of its
credit quality indicators in terms of NPE ratio and NPE coverage (note 2).
The Group remains cautious for any developments in the macroeconomic trends and geopolitical front and closely monitors all loan
portfolios, so as to revise, if needed, the respective estimates and assumptions.
Expected Credit Loss (ECL) measurement
The ECL measurement requires Management to apply judgment, in particular, to the estimation of the amount and timing of future
cash flows and collateral values when determining impairment losses and the assessment of a significant increase in credit risk. These
estimates are driven by a number of factors, changes in which can result in significant changes to the timing and amount of allowance
for credit loss to be recognized.
The Group’s ECL calculations are outputs of complex models with a number of underlying assumptions regarding the choice of variable
inputs and their interdependencies. In addition, temporary adjustments may be required to capture new developments and
information available, which are not reflected yet in the ECL calculation through the risk models.
The elements of the ECL models that are considered significant accounting judgments and estimates include:
Determination of a significant increase of credit risk
IFRS 9 does not include a definition of what constitutes a significant increase in credit risk (SICR). An assessment of whether credit
risk has increased significantly since initial recognition is performed at each reporting period by considering primarily the change in
the risk of default occurring over the remaining life of the financial instrument. The Group assesses whether a SICR has occurred since
initial recognition based on qualitative and quantitative reasonable and supportable forward-looking information that includes
significant management judgment (note 2.2.13).
Retail lending
For retail lending exposures the primary criterion is the change in the residual cumulative lifetime Probability of Default (PD) above
specified thresholds. These thresholds vary per portfolio, origination year, product type as well as origination PD level.
As at 31 December 2024 and 2023, the upper PD thresholds based on the above segmentation, that trigger the allocation to stage 2
for Greece’s retail exposures are set out below:
Notes to the Consolidated Financial Statements
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Retail exposures
31 December 2024
31 December 2023
Upper SICR threshold
Mortgage
170%
170%
Home Equity
80%
80%
SBB
130%
130%
Consumer
100%
100%
Wholesale lending
For wholesale lending exposures, the origination PD curves and the residual lifetime PD curves at each reporting date are mapped to
credit rating bands. Accordingly, SICR thresholds are based on the comparison of the origination and reporting date credit ratings,
whereby rating downgrades represent changes in residual lifetime PD. Similar to retail exposures, the wholesale lending exposures
are segmented based on asset class, loan type and credit rating at origination.
In addition, for securitization notes issued by special
purpose entities established by the Group, the SICR assessment is performed by considering the performance of the underlying assets.
As at 31 December 2024 and 2023, the credit rating deterioration thresholds per rating bands for Greece’s wholesale lending
exposures that trigger allocation to stage 2 are set out below. In addition, any downgrade to rating band 6 or high-risk rating bands
(7,8 or 9) is considered as SICR event to all corporate lending portfolios:
.
Wholesale internal rating bands
Minimum SICR threshold range
1
Five notches
2
Four notches
3
Three notches
4
Two notches
5-8
One notch
Determination of scenarios, scenario weights and macroeconomic factors
To achieve the objective of measuring ECL, the Group evaluates a range of possible outcomes in line with the requirements of IFRS 9
through the application of three macroeconomic scenarios, i.e. baseline, adverse and optimistic, in a way that reflects an unbiased
and probability weighted outcome. The probability weights for the above mentioned scenarios as applied by the Bank, were revised
in the first quarter of 2024 in order to appropriately reflect Management’s sentiment regarding future economic conditions in the
form of macroeconomic, market and other factors as embodied in each of the three scenarios. More specifically, the scenario weights
applied in the context of IFRS9 ECL measurement for Greek lending portfolios were revised as follows: adverse 30% - base 50% -
optimistic 20% (31 December 2023: 25%-50%-25%), having an insignificant impact on impairment allowance for loans and advances
to customers. The weight allocation among IFRS9 ECL scenarios as applied by the Group subsidiaries approximates the one applied
by the Bank with the exception of Eurobank Bulgaria AD that applied the following weights: adverse 30% - base 40% - optimistic 30%
considering macroeconomic, market and other country -specific factors.
The baseline scenario for Greek lending portfolios assumed no escalation of the open war fronts, no change in EU sanctions against
Russia, continuation of ECB’s monetary policy trajectory as well as Greek government’s fiscal support measures. Core inflation rate
for Greece was assumed to gradually de-escalate suggesting a moderate economic growth path, employment was assumed to
contribute to lower unemployment path given the capacity constraints stemming from demographic factors, real estate prices
registered signs of slowing down for 2024 and 2025 compared to 2023 but remained on a positive range and inflation rate was
forecasted to decrease as a result of the ECB monetary policy actions. Additionally, the Greek economy’s short-term prospects were
supported by the: (a) expected strong tourist season, (b) Recovery and Resilience Facility, Multiannual Financial Framework and
European Investment Bank funds, (c) ample liquidity including strong deposit levels and the state cash buffer and (d) fiscal measures
implemented to mitigate the impact of energy costs.
The optimistic and adverse scenarios originated from forecasts that were, respectively, more positive, or more negative regarding
real GDP growth, unemployment rates and real estate prices, in comparison to the baseline scenario. On the other hand, an
environment with lower inflation relative to the baseline is assumed for the adverse scenario in combination with the gradual de-
escalation of interest rates. For the optimistic scenario inflation remained at low levels while growth increased above the baseline
scenario levels. The forecasts for these macroeconomic variables in the adverse/optimistic scenarios of the IFRS9 probability-
Notes to the Consolidated Financial Statements
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weighted framework were estimated using a Vector Auto Regression model. This model used historical data on real GDP growth,
inflation, and unemployment rates together with the aforementioned weights for each scenario to generate its forecasts.
Forward-looking information
The Group ensures that impairment estimates and macroeconomic forecasts applicable for business and regulatory purposes are fully
consistent. Accordingly, the IFRS 9 baseline scenario applied in the ECL calculation coincides with the one used for ICAAP and business
planning purposes. In addition, relevant experience gained from the stress tests imposed by the regulator, has been taken into
account in the process of developing the macroeconomic scenarios, as well as impairments for stress testing purposes have been
forecasted in line with IFRS 9 ECL methodology.
In terms of macroeconomic assumptions, the Bank assesses a number of indicators in projecting the risk parameters, namely Gross
Domestic Product (GDP), Unemployment, Residential and Commercial Property Price Indices, inflation as well as interest and FX rates.
The arithmetic averages of the key annual forecasts per macroeconomic scenario for the next four year period following the reporting
date used in the ECL measurement of Greek lending portfolios for the year ended 31 December 2024 and 2023, are set in the following
table:
Key macroconomic
31 December 2024
31 December 2023
Optimistic
Base
Adverse
Optimistic
Base
Adverse
Gross Domestic Product growth
3.35%
2.15%
0.94%
3.91%
2.05%
0.19%
Unemployment Rate
7.04%
8.84%
10.72%
7.60%
9.09%
10.60%
Residential property prices' index
6.39%
4.20%
1.64%
6.14%
3.90%
1.66%
Commercial property prices' index
4.05%
1.84%
-1.18%
5.37%
1.47%
-2.42%
Inflation rate
1.50%
2.15%
1.55%
1.75%
2.10%
2.44%
The table below provides the respective arithmetic averages of the key annual forecasts used in the ECL measurement in the countries
where the Group operates with a significant contribution to the Group ECL:
Key macroconomic
31 December 2024
31 December 2023
Optimistic
Base
Adverse
Optimistic
Base
Adverse
Bulgaria
Gross Domestic Product growth
5.18%
2.70%
0.61%
7.08%
2.44%
-0.69%
Unemployment Rate
3.73%
4.57%
5.49%
3.84%
4.86%
5.97%
Residential property prices' index
9.87%
4.60%
1.33%
10.07%
2.92%
-0.31%
Cyprus
Gross Domestic Product growth
3.54%
2.91%
1.51%
3.60%
3.23%
1.35%
Gross fixed capital formation
6.70%
5.18%
2.38%
6.13%
5.50%
1.68%
Real Consumption growth
3.58%
3.08%
1.53%
-
-
-
Unemployment Rate
4.48%
5.20%
6.35%
-
-
-
Residential property prices' index
2.60%
1.95%
0.22%
-
-
-
Commercial property prices' index
2.32%
1.66%
0.05%
-
-
-
Inflation rate
1.99%
1.76%
2.86%
-
-
-
Note: In 2024, Eurobank Cyprus, αs α result of models’ recalibration, updated the macroeconomic variables incorporated in ECL
measurement.
Changes in the scenarios and weights, the corresponding set of macroeconomic variables and the assumptions made around those
variables for the forecast horizon would have a significant effect on the ECL amount. The Group independently validates all models
and underlying methodologies used in the ECL measurement through competent resources, who are independent of the model
development process.
Development of ECL models, including the various formulas, choice of inputs and interdependencies
For the purposes of ECL measurement the Group performs the necessary model parameterization based on observed point -in-time
data on a granularity of monthly intervals. The ECL calculations are based on input parameters, i.e. exposure at default (EAD), PDs,
loss given default (LGD), credit conversion factors (CCFs) etc. incorporating Management’s view of the future. The Group also
Notes to the Consolidated Financial Statements
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determines the links between macroeconomic scenarios and, economic inputs, such as unemployment levels and collateral values,
and the effect on PDs, EADs and LGDs.
Furthermore, the PDs incorporate relevant forward looking information including macroeconomic scenarios. The forecasting risk
parameters models incorporate a number of macroeconomic variables, such as GDP, unemployment etc. and portfolio specific
variables such as seasonal flag etc., which are used as independent variables for optimum predictive capability.
The ECL models are based on linear and logistic regressions and run under the different macroeconomic scenarios and relevant
changes and shocks in the macro environment are reflected accordingly.
Segmentation of financial assets when their ECL is assessed on a collective basis
The Group segments its exposures on the basis of shared credit risk characteristics upon initial recognition for the purposes of both
assessing significant increase in credit risk and measuring loan loss allowance on a collective basis. The different segments aim to
capture differences in PDs and in the rates of recovery in the event of default. On subsequent periods, the Group re-evaluates the
grouping of its exposures at least on an annual basis, in order to ensure that the groups remain homogeneous in terms of their
response to the identified shared credit risk characteristics. Re-segmentation reflects management’s perception in respect to the
change of credit risk associated with the particular exposures compared to initial recognition.
Modeling and Management overlays / adjustments
A number of sophisticated models have been developed or modified to calculate ECL, while temporary management adjustments
may be required to capture new developments and information available, which are not yet reflected in the ECL calculation through
the risk models. Such adjustments are governed by the Group’s IFRS9 ECL Model Adjustments’ framework which aims to ensure timely
identification of non-modeled risks, if any, that may have an impact on lending portfolios, as well as sufficient quantification of such
risks based on sound methodologies and processes. As at 31 December 2024, the Group re-estimated the post model adjustment for
addressing potentially negative macro environment developments in the foreseeable future to € 14 million (2023: € 31 million).
The risk models are governed by the Group’s validation framework which aims to ensure their independent verification. The risk
models as well as the management adjustments, if any, are approved by the Board Risk Committee (BRC) as per the internal approval
processes.
Sensitivity analysis on lending portfolios
The sensitivity analysis when performed on certain key parameters can provide meaningful information only for portfolios where the
risk parameters have a significant impact on the overall credit risk of a lending portfolio, particularly where such sensitivities are also
used for internal credit risk management purposes. Otherwise, a sensitivity analysis on certain combinations of some risk parameters
may not produce meaningful results, as in reality there are interdependencies between the various economic inputs, rendering any
changes in the parameters, changes correlated in other factors.
The sensitivity analysis presented in the tables below is applied in the modeled ECL output and assumes a favorable and an adverse
shift in the scenario weighting, compared to the one applied in the ECL measurement. As at 31 December 2024 and 2023, the
favorable shift assumes an increase in the weighting of the optimistic scenario at 50% and a stable weighting of the baseline scenario
at 50%, while the adverse shift assumes an increase in the weighting of the adverse scenario at 50% and a stable weighting of the
baseline scenario at 50%.
The tables below present the estimated effect in the ECL measurement (including off-balance sheet items) per stage and per country
with significant contribution to the Group ECL , upon a positive and an adverse shift in the scenario weighting as described above :
Notes to the Consolidated Financial Statements
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Estimated effect per stage as at 31 December 2024
Positive change
Adverse change
12-month ECL
- Stage 1
Lifetime ECL
- Stage 2
Lifetime ECL
credit-impaired
31 December
2024
12-month ECL
- Stage 1
Lifetime ECL
- Stage 2
Lifetime ECL
credit-impaired
31 December
2024
Greece
(12)
(38)
(20)
(70)
9
30
14
53
(8)
(12)
(3)
(7)
6
10
2
5
Bulgaria
(1)
(1)
(2)
(4)
1
1
2
4
(4)
(2)
(2)
(2)
4
2
2
2
Cyprus
(2)
(1)
(3)
(6)
2
0
3
5
(13)
(6)
(4)
(5)
12
5
3
5
Total
(15)
(40)
(25)
(80)
12
31
19
62
(7)
(11)
(3)
(6)
6
9
2
5
Estimated effect per stage as at 31 December 2023
Positive change
Adverse change
12-month ECL
- Stage 1
Lifetime ECL
- Stage 2
Lifetime ECL
credit-impaired
31 December
2023
12-month ECL
- Stage 1
Lifetime ECL
- Stage 2
Lifetime ECL
credit-impaired
31 December
2023
Greece
(12)
(24)
(17)
(53)
11
30
17
58
(9)
(9)
(3)
(5)
8
10
3
6
Bulgaria
(1)
(1)
(2)
(4)
2
1
2
5
(4)
(2)
(2)
(2)
4
2
2
2
Cyprus
(3)
(2)
(2)
(7)
3
2
2
7
(38)
(32)
(4)
(13)
41
33
4
13
Total
(16)
(27)
(21)
(64)
16
33
21
70
(9)
(8)
(3)
(5)
8
10
3
5
Note
Figures as at 31 December 2023 for Cyprus refer to Eurobank Cyprus.
The Group updates and reviews the reasonability and performs back-testing of the main assumptions used in its methodology
assessment for SICR and ECL measurement, at least on an annual basis or earlier, based on facts and circumstances. In this context,
experienced and dedicated staff within the Group’s Risk Management function monitor the risk parameters applied for the estimation
of ECL. Furthermore, as part of the well-defined governance framework, any revisions to the methodology used are approved by the
Group competent committees and ultimately the Board Risk Committee (BRC).
3.2 Fair value of financial instruments
The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants in the principal (or most advantageous) market at the measurement date under current
market conditions (i.e. an exit price) regardless of whether that price is directly observable or estimated using another valuation
technique.
The fair value of financial instruments that are not quoted in an active market is determined by using other valuation techniques
including the use of valuation models. In addition, for financial instruments that trade infrequently and have little price transparency,
fair value is less objective and requires varying degree of judgment depending on liquidity, concentration, uncertainty of market
factors, pricing assumptions and other risks affecting the specific instrument. In these cases, the fair values are estimated from
observable data in respect of similar financial instruments or using other valuation techniques.
The valuation models used include present value methods and other models based mainly on observable inputs and to a lesser extent
to non-observable inputs, in order to maintain the reliability of the fair value measurement.
Notes to the Consolidated Financial Statements
.
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Where valuation models are used to determine the fair values of financial instruments that are not quoted in an active market, they
are validated and periodically reviewed by qualified personnel independent of the personnel that created them. All models are
certified before they are used and are calibrated to ensure that outputs reflect actual data and comparative market prices. The main
assumptions and estimates, considered by management when applying a valuation model include:
●
the likelihood and expected timing of future cash flows;
●
the selection of the appropriate discount rate, which is based on an assessment of what a market participant would regard
as an appropriate spread of the rate over the risk-free rate; and
●
judgment to determine what model to use in order to calculate fair value.
To the extent practicable, models use only observable data, however areas such as credit risk (both own and counterparty), volatilities
and correlations require Management to make estimates to reflect uncertainties in fair values resulting from the lack of market data
inputs. Inputs into valuations based on unobservable data are inherently uncertain because there is little or no current market data
available. However, in most cases there will be some historical data on which to base a fair value measurement and consequently
even when unobservable inputs are used, fair values will use some market observable inputs.
Information in respect of the fair valuation of the Group’s financial assets and liabilities is provided in note 5.3.
3.3 Classification of financial instruments
The Group applies significant judgment in assessing the classification of its financial instruments and especially, in the below areas:
Business model assessment
Judgment is exercised in order to determine the appropriate level at which to assess the business model. In assessing the business
model of financial instruments, these are aggregated into groups (business lines) based on their characteristics, and the way they are
managed in order to achieve the Group’s business objectives. In general, the assessment is performed for lending exposures at the
level of business units that manage the respective portfolio, including securitization notes issued by special purpose entities
established by the Group and at the level of the measurement category for debt securities. However, further disaggregation may be
performed by business strategy or region.
In assessing the business model for financial instruments, the Group performs a past sales evaluation of the financial instruments and
assesses their expected evolution in the future. Judgment is exercised in determining the effect of sales to a “hold to collect” business
model depending on their objective and their acceptable level and frequency.
Contractual cash flow characteristics test (SPPI test)
The Group performs the SPPI assessment of lending exposures and debt securities by considering all the features which might
potentially lead to SPPI failure. The above assessment may be particularly challenging for more complex instruments with contractual
terms including leverage, prepayment or extension options, securitizations where the cash flows are linked to the underlying assets,
non-recourse arrangements, as well as environmental, social and governance linked features (sustainability linked). Judgment is
applied by the responsible business units when considering whether certain contractual features significantly affect future cash flows,
are de-minimis or not genuine.
Accordingly, for non-recourse financial assets, the Group assesses jointly criteria such as the adequacy of equity, LTV (Loan-to-Value)
and DSCR (Debt-Service-Coverage -Ratio) ratios as well as the existence of corporate and personal guarantees. For the securitization
notes issued by special purpose entities, either established by the Group or third parties, and held by the Group, the cash flow
characteristics of the notes and the underlying pool of financial assets as well as the credit risk inherent in each securitization’s tranche
compared to the credit risk of all of the underlying pool of financial assets, are assessed. Furthermore, in order to assess whether
any variability in the cash flows is introduced by the modified time value of money element, the Group performs a quantitative
assessment (as described in note 2.2.9). For the SPPI assessment of sustainability linked instruments that include features that may
change the contractual cash flows, by reducing or increasing the interest rate depending on whether the borrower meets or fails to
meet predetermined ESG targets, the Group considers whether such targets are referenced to an index that is not specific to the
borrower, as well as whether the related contractual cash flows’ change introduces compensation for non-basic lending risks
(information about the Group’s exposure in sustainability linked instruments is provided in note 20). Moreover, the Group evaluates
certain cases on whether the existence of performance-related terms exposes the Group to asset risk rather to the borrower's credit
risk.
Notes to the Consolidated Financial Statements
.
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The Group has established a robust framework to perform the necessary assessments in accordance with Group’s policies in order to
ensure appropriate classification of financial instruments, including reviews by experienced staff for lending exposures and debt
securities.
3.4 Assess control over investees
Management exercises judgment in order to assess if the Group has control over another entity based on the control elements set
out in note 2.2.1 (i).
In particular, as part of its funding activity and non-performing loans’ management strategy, the Group sponsors certain securitization
vehicles, the relevant activities of which have been predetermined as part of their initial design by the Group. The Group is exposed
to variability of returns from these vehicles through the holding of debt securities issued by them or by providing credit enhancements
in accordance with the respective contractual terms. In assessing whether it has control, the Group considers whether it manages the
substantive decisions that could affect these vehicles’ returns. Accordingly, the Group assesses on a case-by-case basis the structure
of securitization transaction, including the respective contractual arrangements, in order to conclude if it controls these vehicles.
In addition, the Group is involved in the initial design of various mutual funds in order to provide customers with investment
opportunities. The Group primarily acts as an agent in exercising its decision making authority as it is predefined by the applicable
regulated framework. As a result, the Group has concluded that it does not control these funds.
Further information in respect of the structured entities the Group is involved, either consolidated or not, is provided in note 25.
3.5 Income tax
The Group is subject to income taxes in various jurisdictions and estimates are required in determining the liability for income taxes.
The Group recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due or for
anticipated tax disputes. Where the final tax outcome of these matters is different from the amounts that were initially recorded,
such differences will impact the income tax and deferred tax in the period in which such determination is made. Further information
in relation to the above is provided in note 13.
In addition, the Group recognizes deferred tax assets to the extent that it is probable that sufficient taxable profit will be available
against which unused tax losses and deductible temporary differences can be utilized. Recognition therefore involves judgment
regarding the future financial performance of the particular Group legal entity in which the deferred tax asset has been recognized.
Particularly, in order to determine the amount of deferred tax assets that can be recognized, significant management judgments are
required regarding the likely timing and level of future taxable profits. In making this evaluation, the Group has considered all available
evidence, including management’s projections of future taxable income and the tax legislation in each jurisdiction.
The most significant judgment exercised by Management relates to the recognition of deferred tax assets in respect of losses realized
in Greece. In the event that, the Group assesses that it would not be able to recover any portion of the recognized deferred tax assets
in the future, the unrecoverable portion would impact the deferred tax balances in the period in which such judgment is made.
Further information in respect of the deferred tax assets recognized by the Group and the assessment for their recoverability is
provided in note 13.
3.6 Retirement and termination benefit obligations
The present value of the retirement and termination benefits’ obligations depends on a number of factors that are determined on an
actuarial basis using a number of assumptions, such as the discount rate and future salary increases. Any change in these assumptions
impacts the carrying amount of the respective benefits’ obligations.
The Group determines the appropriate discount rate used to calculate the present value of the estimated retirement and termination
benefits’ obligations, at the end of each year with reference to interest rates of high-quality corporate bonds. In countries where
there is no deep market in such bonds, the yields on government bonds are used. The currency and term to maturity of the bonds
used are consistent with the currency and estimated average term to maturity of the retirement benefit obligations. The salary rate
increase assumption is based on future inflation estimates reflecting also the Group's reward structure and expected market
conditions.
Other assumptions for retirement and termination benefits’ obligations, such as future inflation estimates, are based in part on
current and expected market conditions.
Notes to the Consolidated Financial Statements
.
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For information in respect of the sensitivity analysis of the Group’s retirement and termination benefits’ obligations to reasonably
possible, at the time of preparation of these financial statements, changes in the abovementioned key actuarial assumptions, refer
to note 36.
3.7 Investment properties
Investment property is carried at fair value, as determined by external, independent and certified valuators on an annual basis, or
more frequently if deemed appropriate upon assessment of any relevant circumstances. The primary valuation method applied in
determining the fair value of the Group’s investment properties is the Discounted Cash Flow (DCF) method which is considered the
most appropriate in cases of income generating assets. This method is based on discounting the net future cash flows generated by
a property over the assumed holding period, by using an appropriate market derived discount rate.
Accordingly, the main factors underlying the determination of fair value under the DCF method, are related with rental income from
current leases and assumptions about its future growth in the light of current market conditions, including CPI indexation that is based
on CPI predictions for the next 10 years, as well as exit yields that are determined based on each property’s characteristics/use, future
prospects of the economy and property market in general as forecasted by the IMF or other internationally recognized institutions.
In addition, potential legal or other restrictions on the aforementioned rental income levels are taken into account, where applicable.
The present value of each property is derived by discounting the above projected net cash flows series with an appropriate, market-
derived discount. Such discount rate is calculated by taking into consideration the initial yield of the investment property, the
expected return, the real rental growth and annual obsolescence of the property.
Other assumptions incorporated in the valuations include future vacancy rates and periods, the level of future maintenance and other
operating costs, as well as sustainability issues, where applicable.
Where the fair value is determined based on market prices of comparable transactions those prices are subject to appropriate
adjustments, in order to reflect current economic conditions and Management’s best estimate regarding the future trend of
properties market based on advice received from its independent external valuers.
Further information in respect of the fair valuation of the Group’s investment properties is provided in note 27.
3.8 Provisions and contingent liabilities
Considering the subjectivity and uncertainty inherent in the determination of the probability and amount of the abovementioned
outflows, the Group takes into account a number of factors including primarily legal advice, the progress of the matter and historical
evidence from similar cases. In the case of an offer made within the context of the Group’s voluntary exit scheme, the number of
employees expected to accept the abovementioned offer along with their age cluster is a significant factor affecting the measurement
of the outflow for the termination benefits.
Further information in relation to the Group’s provisions and contingent liabilities is provided in notes 35 and 42.
3.9 Share-based payments
The Group grants shares and share options to its employees as a common feature of employee remuneration. IFRS 2 requires the
recognition of an expense for those shares and share options at their fair value on the grant date (equity-settled plans). For shares
granted to employees, the fair value is measured directly at the market price of the entity’s shares, adjusted to take into account the
terms and conditions upon which the shares were granted. For share options granted to employees, in many cases market prices are
not available because the options granted are subject to terms and conditions that do not apply to traded options. If this is the case,
the Group estimates the fair value of the equity instruments granted using a valuation technique, which is consistent with generally
accepted valuation methodologies.
The valuation method and the inputs used to measure the share options granted to employees of the Group are presented in note
39.
3.10 Leases
The Group, as a lessee, determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease if it
is reasonably certain not to be exercised.
Notes to the Consolidated Financial Statements
.
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The Group applies judgement in evaluating whether it is reasonably certain or not to exercise an option to renew or terminate the
lease, by considering all relevant factors and economic aspects that create an economic incentive. The Group reassesses the lease
term if there is a significant event or change in circumstances that is within its control that affects its ability to exercise or not to
exercise the option to renew or to terminate, such as significant leasehold improvements or significant customization of the leased
asset.
In measuring lease liabilities, the Group uses the lessees’ incremental borrowing rate (‘IBR’) when it cannot readily determine the
interest rate implicit in the lease. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and
with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic
environment.
Therefore, estimation is required when no observable rates are available (such as for subsidiaries that do not enter into financing
transactions) or when they need to be adjusted to reflect the terms and conditions of the lease. The Group estimates the IBR using
observable inputs (such as government bond yields) as a starting point when available, and performs certain additional entity-specific
adjustments, such as credit spread adjustments or adjustments to reflect the lease terms and conditions. For the Bank and Greek
subsidiaries, the IBR is derived from the estimated covered bonds yield curve, which is constructed based on observable Greek
Government Bond yields, while for international subsidiaries the IBR is determined on a country basis, taking into consideration
specific local conditions.
3.11 Insurance contracts
The measurement of insurance contract liabilities involves the exercise of judgment, estimates, and assumptions, especially in relation
to mortality and morbidity rates, claims, lapse and surrender rates, and costs. The basic approaches used in the measurement of
insurance contract liabilities are described in Note 2.2.16. Additionally, the following assumptions were used when estimating future
cash flows:
Mortality and morbidity rates
:
The Group reviews, at least on an annual basis, the validity of the mortality assumptions, and when deemed necessary the
assumptions are adjusted accordingly. The assumptions are set based on the internal experience of the Group when there are
sufficient volumes or data to support a credible investigation. When internal experience is not sufficient the assumptions are set with
reference to industry experience and commonly used tables.
Expenses
:
The Group applies judgement in assessing whether cash flows are directly attributable to a specific portfolio of insurance contracts.
The Group considers as attributable cash flows fixed and variable overheads directly attributable to the fulfilment of insurance
contracts. The Group also reviews, at least on an annual basis, the expense assumptions used in the cashflow projections.
Lapse and surrender rates
:
Lapse and surrenders assumptions relate to the rate by which policyholders cancel/surrender their policies. The assumptions are set
in line with recent Group experience, by adjusting for expected improvements/deteriorations where necessary.
Discount rates
Long term life insurance contract liabilities are calculated by discounting expected future cash flows. The Group uses the bottom-up
approach in determining the discount rates and hence uses a risk-free rate, plus an illiquidity premium. Risk free rates are determined
by reference to the European Insurance and Occupational Pensions Authority (EIOPA) yields and the illiquidity premium is determined
using EIOPA’s volatility adjustment.
Risk adjustments for non-financial risk
The risk adjustment for non-financial risk is determined to reflect the compensation that the Group requires for bearing non-financial
risk and its degree of risk aversion. The risk adjustment is determined using a confidence level technique and specifically the scalar
approach method with its target confidence level set at 80 percent which represents the Group’s degree of risk aversion.
3.12 Other accounting estimates and judgments
Information in respect of other estimates and judgments that are made by the Group is provided in notes 20, 23.2, 24, 28 and 30.
.
Notes to the Consolidated Financial Statements
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4. Capital Management
The Group’s capital adequacy position is presented in the following table:
31 December
2024
31 December
2023
€ million
€ million
Equity attributable to shareholders of the Company
8,899
7,899
Less: Goodwill
(42)
(44)
Less: Other regulatory adjustments
(465)
(507)
Common Equity Tier 1 Capital
8,392
7,348
Total Tier 1 Capital
8,392
7,348
Tier 2 capital-subordinated debt
1,201
1,074
Add: Other regulatory adjustments
174
-
Total Regulatory Capital
9,767
8,422
Risk Weighted Assets
49,977
43,395
Ratios:
%
%
Common Equity Tier 1
16.8
16.9
Pro-forma Common Equity Tier 1⁽¹⁾
15.7
17.0
Total Capital Adequacy Ratio
19.5
19.4
Pro-forma Total Capital Adequacy Ratio⁽¹⁾
18.5
20.2
(1)
recognition is subject to ECB’s confirmation (note 20), as well as with the accrual for dividend distribution from financial year 2024 Group profits, (subject to
regulatory approval). As of 31 December 2023, pro-forma with the completion of the projects “Solar”, “Leon” and the impact from the completion of the
issuance of Subordinated Tier II debt instruments in January 2024.
Notes:
a) The profit of € 1,448 million attributable to the shareholders of the Company for the period ended 31 December 2024 (31 December 2023: profit of € 1,140
million) has been included in the calculation of the above capital ratios.
b) As of 31 December 2024, the decrease in CET1 ratio, compared to 31 December 2023, is mainly attributed to the increase of the RWAs mainly due to the
inclusion of Hellenic Bank and its subsidiaries in the Company’s consolidated financial statements in 2024 and the new production of loans, partly offset by i)
the Group’s organic profitability, ii) the change in the mapping, following the publication of the Commission Implementing Regulation (EU) 2024/1872, between
corporate credit ratings and respective risk weighting factors (Credit Quality Steps), set out in Regulation EU 575/2013 and iii) the change of the applicable Risk
Weighting Factors (RWF) for Central Bank/Central Government assets, according to article 244 (applicable from 1 July 2024) of Regulation 2024/1623/EU.
c) Deferred tax credits (DTC) stand at 36% of CET 1 capital (note 13). In line with the Bank's initiative to enhance the quality of its regulatory capital, the
amortisation of DTC will be accelerated for regulatory purposes starting from 2025, aiming at its elimination by 2033.
The Group has sought to maintain an actively managed capital base to cover risks inherent in the business. The adequacy of the
Group's capital is monitored using, among other measures, the rules and ratios established by the Basel Committee on Banking
Supervision (BIS rules/ratios) which have been incorporated in the European Union (EU) legislation through the Directive 2013/36/EU
(known as CRD IV) along with the Regulation 575/2013/EU (known as CRR), as they are in force. The above Directive has been
transposed into Greek legislation by Law 4261/2014, as in force. Furthermore, the CRR as amended by the Regulation 2020/873 (CRR
quick fix) provides, among others, for the extension by two years of the ability of the banks to add back to their regulatory capital any
increase in provisions for (stage 1 and stage 2) expected losses compared to those that they have recognized on 1 January 2020 for
their financial assets, which have not been defaulted. The relief which is applicable for 2024 is 25%.
On 19 June 2024, Regulation 2024/1623/EU and Directive 2024/1619/EU of the European Parliament and of the Council of 31 May
2024, amending Regulation 575/2013/EU and Directive 2013/36/EU, respectively, were published in the Official Journal of the
European Union. The revised CRR (CRR3) will, in general, become applicable from 1 January 2025, with a transitional period envisaged
for certain rules set out therein. EU member states will need to transpose the revised CRDIV (CRD6) into national law, to be applied
from 11 January 2026. In addition, following its publication in the Official Journal of the European Union, the Commission
Implementing Regulation (EU) 2024/1872 of 1 July 2024, amended the implementing technical standards laid down in Implementing
Regulation (EU) 2016/1799 as regards the mapping tables specifying the correspondence between the credit risk assessments of
external credit assessment institutions and the credit quality steps set out in Regulation (EU) No 575/2013 of the European Parliament
and of the Council.
Notes to the Consolidated Financial Statements
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Supplementary to the above, in the context of Internal Capital Adequacy Assessment Process (ICAAP), the Group considers a broader
range of risk types and the Group’s risk management capabilities. ICAAP aims ultimately to ensure that the Group has sufficient capital
to cover all material risks that it is exposed to, over a three-year horizon.
Based on Council Regulation No 1024/2013, the European Central Bank (ECB) conducts annually a Supervisory Review and Evaluation
Process (SREP) in order to define the prudential requirements of the institutions under its supervision. The key purpose of the SREP
is to ensure that institutions have adequate arrangements, strategies, processes and mechanisms as well as capital and liquidity
to ensure a sound management and coverage of their risks, to which they are or might be exposed, including those revealed by stress
testing and risks the institution may pose to the financial system.
According to the 2024 SREP decision, from December 2024 the P2R for the Group is set at 2.85% in terms of total capital (or at 1.60%
in terms of CET1 capital). The change in the P2R is the outcome of the consolidation of Hellenic Bank. Based on the ECB’s ‘Guide on
the supervisory approach to consolidation in the banking sector’, in case of M&As, the P2R of the combined entity/group is
determined based on the weighted average of the P2R (based on RWAs) of the two entities (i.e. Eurobank Group: 2.75%, Hellenic
Bank: 3.45%).
Thus, as of 31 December 2024, the Group is required to meet a Common Equity Tier 1 Ratio of at least 12.45% (including AT1 capital
shortfall) and a Total Capital Adequacy Ratio of at least 15.16% (Overall Capital Requirement or OCR) including Combined Buffer
Requirement of 4.31%, which is covered with CET1 capital and sits on top of the Total SREP Capital Requirement (TSCR).
From 1 January 2024, the O-SII buffer for the Group increased to 1.25% (from 1% in 2023), in accordance with the Executive
Committee Act 221/1/17.10.2023 of the Bank of Greece, following a change in the methodology applied for the determination of the
O-SII buffer rate. In addition, in accordance with the Executive Committee Act 235/07.10.2024 of the Bank of Greece, from 1 October
2025, a countercyclical capital buffer rate of 0.25% will apply to banks’ exposures to Greece, which is expected to increase the Group’s
capital requirements by 15bps. The countercyclical capital buffer is updated on a quarterly basis in accordance with the countercyclical
capital buffer rates applicable in each country to which the Group has exposures.
The breakdown of the Group’s CET1 and Total Capital requirements, applicable from 31 December 2024, is presented below.
31 December 2024
CET1 Capital
Requirements
Total Capital
Requirements
Minimum regulatory requirement
4.50%
8.00%
Pillar 2 Requirement (P2R)
1.60%
2.85%
Total SREP Capital Requirement (TSCR)
6.10%
10.85%
Combined Buffer Requirement (CBR)
Capital conservation buffer (CCoB)
2.50%
2.50%
Countercyclical capital buffer (CCyB)
0.56%
0.56%
Other systemic institutions buffer (O-SII)
1.25%
1.25%
Overall Capital Requirement (OCR), excluding shortfall
10.41%
15.16%
AT1 capital shortfall
2.04%
-
Overall Capital Requirement (OCR), including shortfall
12.45%
15.16%
The above CET1 capital requirement of 12.45% takes into account that the Group had no AT1 capital as of 31 December 2024.
Assuming that the Group had fully utilized the AT1 capital capacity as at 31 December 2024, the CET1 requirement would stand at
10.41%.
Following the receipt of regulatory approval, in December 2024, Hellenic Bank redeemed its outstanding AT1 instruments of €130m.
Further disclosures regarding capital adequacy in accordance with the Regulation 575/2013 are provided in the Consolidated Pillar 3
Report on the Company’s website.
Minimum Requirements for Eligible Own Funds and Eligible Liabilities (MREL)
Under the Directive 2014/59 (Bank Recovery and Resolution Directive) as in force, which was transposed into the Greek legislation
pursuant to Law 4335/2015 as in force, European banks are required to meet the minimum requirement for own funds and eligible
Notes to the Consolidated Financial Statements
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liabilities (MREL). The Single Resolution Board (SRB) has determined Eurobank S.A. as the Group’s resolution entity and a Single Point
of Entry (SPE) strategy for resolution purposes. Based on the latest SRB’s communication, the fully calibrated MREL (final target) to
be met by Eurobank S.A. on a consolidated basis from 30 June 2025 is set at 27.80% of its total risk weighted assets (RWAs), including
a combined buffer requirement (CBR) of 4.31%. The final MREL target is updated by the SRB on an annual basis. The 2025 interim
non-binding MREL target, applicable from January 2025, stands at 25.62% of RWAs, including a CBR of 4.31%. As at 31 December
2024, the Bank’s MREL ratio at consolidated level stands at 28.22% of RWAs including profit for the period ended 31 December 2024
(31 December 2023: 24.91%), while, the Bank’s MREL ratio at consolidated level, pro-forma with the completion of the project
“Solar”, projects “Leon” and “Wave VI”, the accrual for dividend distribution from financial year 2024 profits (subject to regulatory
approval) and for the new issuances of the Company and the Bank in 2025 (see post balance sheet event below) stands at 29.37% of
RWAs, exceeding both the interim non-binding and the final binding MREL targets, as stated above.Finally, as of 31 December 2024,
the Group’s assets stood at €101.2bn, exceeding the threshold of €100bn for the classification of the Group as ‘top-tier’ for resolution
purposes. Hence, in accordance with Art. 12k(4) Regulation 806/2014 (SRMR) after a 3-year transitional period, Eurobank is expected
to be subject to an MREL subordination target of ca 18% (i.e. subordination target of 13.5% RWAs plus the then applicable CBR). The
MREL subordination target shall be met with subordinated instruments (i.e. capital instruments and senior non-preferred bonds).
Considering that the Group’s total capital ratio is expected to remain above the aforementioned level until the end of 2027, there is
no need for the Group to issue senior non-preferred instruments.
On 6 December 2024, the Company announced that the Bank successfully completed the issuance of € 600 million Senior Preferred
Notes. The proceeds from the issue support Eurobank Group’s strategy to ensure ongoing compliance with its Minimum Required
Eligible Liabilities (MREL) requirement and aim at increasing Eurobank’s MREL ratio towards the end-state MREL targeted compliance
range (note 34).
Post balance sheet event
In January 2025, Eurobank Holdings successfully completed the issuance of € 589 million Subordinated Tier 2 debt instrument and in
February 2025, the Bank successfully completed the issuance of € 350 million Senior Preferred Notes. The proceeds from the issues
will support the Group’s strategy to ensure ongoing compliance with its total capital adequacy and MREL (note 34).
2025 EU - wide stress test
The EU-wide stress test exercise is carried out on a sample of banks covering broadly 75% of the banking sector in the euro area, each
non-euro area EU Member State and Norway, as expressed in terms of total consolidated assets as of end 2023. To be included in the
sample, banks have to have a minimum of € 30 bn total assets.
As per the 2025 EU-Wide Stress Test Methodological Note (published on 11 November 2024, footnote 92), Eurobank Ergasias Services
and Holdings S.A. has been excluded from the sample of the EU-wide stress test exercise because of a major acquisition (Hellenic
Bank).
Notes to the Consolidated Financial Statements
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5. Financial risk management and fair value
5.1 Use of financial instruments
By their nature the Group's activities are principally related to the use of financial instruments including derivatives. The Group
accepts deposits from customers, at both fixed and floating rates, and for various periods and seeks to earn above average interest
margins by investing these funds in high quality assets. The Group seeks to increase these margins by consolidating short-term funds
and lending for longer periods at higher rates, while maintaining sufficient liquidity to meet all claims that might fall due.
The Group also seeks to raise its interest margins by obtaining above average margins, net of provisions, through lending to
commercial and retail borrowers within a range of credit standing. Such exposures include both on-balance sheet loans and advances
and off-balance sheet guarantees and other commitments such as letters of credit.
The Group also trades in financial instruments where it takes positions in traded and over the counter financial instruments, including
derivatives, to take advantage of short-term market movements in the equity and bond markets and in currency and interest rates.
5.2 Financial risk factors
Due to its activities, the Group is exposed to several financial risks, such as credit risk, market risk (including currency, interest rate,
spread, equity and volatility risk), liquidity, operational and other non-financial risks, as well as to sustainability risks. The Group's
overall risk management strategy seeks to minimize any potential adverse effects on its financial performance, financial position and
cash flows.
Risk Management objectives and policies
The Group acknowledges that taking risks is an integral part of its operations in order to achieve its business objectives. Therefore,
the Group’s management sets adequate mechanisms to identify those risks at an early stage and assesses their potential impact on
the achievement of these objectives.
Due to the fact that economic, industry, regulatory and operating conditions will continue to change, risk management mechanisms
are set in a manner that enable the Group to identify and deal with the risks associated with those changes. The Group’s structure,
internal processes and existing control mechanisms ensure both the independence principle and the exercise of sufficient supervision.
The Group's Management considers effective risk management as a top priority, as well as a major competitive advantage, for the
organization. As such, the Group has allocated significant resources for upgrading its policies, methods and infrastructure, in order to
ensure compliance with the requirements of the European Central Bank (ECB) and of the Single Resolution Board (SRB), the guidelines
of the European Banking Authority (EBA) and the Basel Committee for Banking Supervision and the best international banking
practices. The Group implements a well-structured credit approval process, independent credit reviews and effective risk
management policies for all material risks it is exposed to, both in Greece and in each country of its international operations. The risk
management policies implemented by the Group are reviewed mainly annually.
The maximum amount of risk which the Group is willing to assume in the pursuit of its strategic objectives is articulated via a set of
quantitative and qualitative statements for specific risk types, including specific tolerance levels as described in the Group’s Risk
Appetite Framework. The objectives are to support the Group’s business growth, balance a strong capital position with higher returns
on equity and to ensure the Group’s adherence to regulatory requirements.
The risk appetite that is clearly communicated throughout the Group, determines risk culture and forms the basis on which the Group
establishes its risk limits and risk policies. Aiming to identify its material risks , the Group maintains a well-defined Risk Identification
and Materiality Assessment (RIMA) Framework.
The identification and the assessment of all risks is the cornerstone for the effective Risk Management. The Group aiming to ensure
a collective view on the risks linked to the execution of its strategy, acknowledges the new developments at an early stage and
assesses the potential impact.
Board Risk Committee (BRC)
The Board Risk Committee (BRC) is a committee of the Board of Directors (BoD) and its task is to advise and support the BoD regarding
the monitoring of Group’s overall actual and future risk appetite and strategy, taking into account all types of risks to ensure that they
are in line with the business strategy, objectives, corporate culture and values of the institution. The BRC assists the BoD in overseeing
the implementation of Group’s risk strategy and the corresponding limits set. It also oversees the implementation of the strategies
Notes to the Consolidated Financial Statements
.
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for capital and liquidity risk management as well as for all material risks, such as credit, market, IRRBB, sustainability risks and non-
financial risks such as operational, reputational conduct, legal, cyber, outsourcing, in order to assess their adequacy against the
approved risk appetite limits.
The BRC consists of five (5) non-executive directors, meets at least 10 times per year and reports to the BoD on a quarterly basis and
on ad hoc instances if it is needed.
Management Risk Committee
The Management Risk Committee (MRC) is a management committee established by the CEO and its main responsibility is to oversee
the risk management framework of the Group. As part of its responsibilities, the MRC facilitates reporting to the BRC on the range of
risk-related topics under its purview, including sustainability risks. The MRC supports the Group Chief Risk Officer to identify material
risks, to promptly escalate them to the BRC and to ensure that the necessary policies and procedures are in place to prudently manage
risks and to comply with regulatory requirements.
Group Risk Management
The Group’s Risk Management Unit which is headed by the Group Chief Risk Officer (GCRO), operates independently from the
business units and is responsible for the identification, assessment, monitoring, measurement and management of the risks that the
Group is exposed to. It comprises of the Group Credit (GC), the Group Credit Control (GCC), the Group Credit Risk Capital Adequacy
Control (GCRCAC), the Group Market and Counterparty Risk (GMCR), the Group Operational and Non-Financial Risks (GONFR), the
Group Model Validation and Governance (GMVG), the Group Risk Management Strategy Planning Operations & Sustainability Risk
(GRMSPO&SR), the Supervisory Relations and Resolution Planning (SRRP), and the Risk Analytics (RA) Units.
Furthermore, the Group is in the process of aligning Hellenic Bank risk management policies and practices with those of the Group
across key risk types, following the acquisition of control in the third quarter of 2024 and in view of the completion of the Take Over
Bid process to acquire 100% of Hellenic Bank’s shares. This includes harmonizing key risk policies, standardizing regulatory as well as
internal risk reporting, and aligning risk methodologies.
Non-Performing Exposures (NPEs) management
The Bank realizes the NPE Strategy Plan through its implementation by doValue Greece for the assigned portfolio and the successful
securitization transactions.
Troubled Assets Committee
The Troubled Assets Committee (TAC) is established according to the regulatory provisions and its main purpose is to act as an
independent body, closely monitoring the Bank’s troubled assets portfolio and the execution of its NPE Management Strategy.
Remedial and Servicing Strategy (RSS)
The Remedial Servicing and Strategy (RSS) is responsible: a) for the management of the non-performing and early arrears loans of the
Bank, b) for structured transactions which create capital (such as Synthetic SRT STS securitizations) and/or offer credit protection and
c) for cooperation with the other units of Group Strategy for other transactions and initiatives.
RSSis closely monitoring the overall performance of the NPE portfolio as well as the relationship of the Bank with doValue Greece.
Furthermore, following Eurobank’s commitments against the significant risk transfer (SRT) monitoring regulatory requirements
pertaining to Bank’s concluded transactions, RSS has a pivotal role in ensuring that relevant process is performed smoothly and in a
timely manner and that any shortcomings are appropriately resolved, while providing any required clarifications or additional material
required by the regulatory authorities.
The Head of RSS reports to the General Manager of Group Strategy.
In this context, RSS has been assigned inter alia with the following
responsibilities:
●
Structure new transactions and perform the execution of any transaction processes, by also establishing negotiation of
Commercial / Legal Terms as well monitoring of these transactions
●
Develop and actively monitor the NPE targets and reduction plan
●
Set the strategic principles, priorities, policy framework and KPIs under which doValue Greece is servicing the portfolio
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
●
Closely monitor the execution of the approved strategies, as well as all contractual provisions under the relevant contractual
agreements for Eurobank’s portfolio assigned to doValue Greece including the securitized portfolio of ERB Recovery DAC
●
Monitoring of the performance of the senior notes of the securitizations in collaboration with Group Risk so as to ensure
compliance to significant risk transfer (SRT) and to the Hellenic Asset Protection Scheme (HAPS)
●
Budget and monitor the Bank’s expenses and revenues associated with the assigned portfolio
●
Cooperate closely with doValue Greece on a daily basis in achieving the Group’s objectives
●
Maintain supervisory dialogue
5.2.1 Credit Risk
Credit risk is the risk that a counterparty will be unable to fulfill its payment obligations in full when due. Credit risk is also related
with country risk and settlement risk, specified below:
a)
Country risk is the risk of losses arising from cross -border lending and investment activities and refers to the uncertainty
associated with exposure in a particular country. This uncertainty may relate to a number of factors including the risk of
losses following nationalization, expropriation, debt restructuring and foreign exchange rates’ movement.
b)
Settlement risk is the risk arising when payments are settled, for example for trades in financial instruments, including
derivatives and currency transactions. The risk arises when the Group remits payments before it can ascertain that the
counterparties’ payments have been received.
Credit risk arises principally from the wholesale and retail lending activities of the Group, as well as from credit enhancements
provided, such as financial guarantees and letters of credit. The Group is also exposed to credit risk arising from other activities such
as investments in debt securities, trading, capital markets and settlement activities. Taking into account that credit risk is the primary
risk the Group is exposed to, it is very closely managed and monitored by specialised risk units, reporting to the GCRO.
(a) Credit approval process
The credit approval and credit review processes are centralized both in Greece and in the International operations . Segregation of
duties ensures independence among executives responsible for the customer relationship, the approval process and the loan
disbursement, as well as monitoring of the loan during its lifecycle.
Credit Committees
The credit approval process in Corporate Banking is centralized through establishment of Credit Committees with escalating Credit
Approval Levels. Main Committees of the Bank are the following:
•
Credit Committees (Central and Local) authorized to approve new financing, renewals or amendments mainly for domestic
groups in the existing credit limits, in accordance with their credit approval authority, depending on total limit amount of
the customer/group and risk category (i.e. high, medium or low), as well as the value and type of security;
•
Special Handling Credit Committees authorized to approve credit requests and take actions for distressed clients;
•
International Credit Committees (Regional and Country) established for the wholesale borrowers of the Group’s
international bank subsidiaries, authorized to approve new limits, renewals or amendments to existing limits, in accordance
with their credit approval authority, depending on total customer exposure and risk category (i.e. high, medium or low), as
well as the value and type of security; and
•
International Special Handling Committees established for handling distressed wholesale borrowers of the Group’s
international bank subsidiaries.
The Credit Committees meet on a weekly basis or more frequently, if needed.
Group Credit (GC)
Within an environment of increased risk requirements, Group Credit (GC) mission is to safeguard the Group’s asset side, by evaluating
credit risk and making recommendations, so that borrower’s credit exposure is acceptable and within the approved Risk Appetite
Framework. GC is headed by the Group Chief Credit Officer (GCCO) with direct reporting to the Group Chief Risk Officer (GCRO).
Notes to the Consolidated Financial Statements
.
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GC operations are comprised of two functions, i.e. the Corporate Credit, including both the domestic and the foreign underwriting
activities (the latter only for material exposures of International Subsidiaries), and Retail Credit respectively, covering the underwriting
needs of the SBB portfolio and the Individuals Lending (mortgage, consumer loans, auto-moto loans and credit cards).
1.
Corporate Credit
(a) Domestic and Greek related portfolio: the underwriting function includes the review of credit requests originating from Corporate
Units handling large and medium scale corporate entities of every risk category and specialised lending units such as Shipping and
Structured Finance (Commercial Real Estate, Hotels & Leisure, Project Finance, M&A Financing) and Private Banking. Major tasks of
the respective workstream and involved credit units pertain to the following:
•
Evaluation of credit applications and issuance of an independent Risk Opinion when required according to internal
procedures, which includes:
(i) assessment of the customer credit profile based on the qualitative and quantitative risk factors identified (market,
operational, structural and financial)
(ii) recommendations for the formulation of bankable, well-secured and well-controlled transactions (credit facility), as well
as
(iii) review and confirmation of the ratings of each separate borrower to reflect the risks acknowledged
•
Participation with voting right in all credit committees as per the Credit Approval procedures
•
Active participation in the regulatory audits and major internal projects of the Bank, providing at the same time credit related
knowledge, expertise and support to other Units
•
Preparation of specialised reports to Management on a regular basis, with regards to the Top 25 largest, in terms of total
exposure, borrower Groups, statistics on the new approved financings and leveraged transactions.
(b) International Subsidiaries’ portfolio: The GC through its specialized International Corporate Credit Unit (IC) is responsible to
actively participate in the evaluation of credit applications that exceed a certain threshold for the wholesale portfolio of the
International Subsidiaries covering Bulgaria, Cyprus, and portion of the loan portfolio of Luxemburg (and London). Moreover, the
respective unit’s tasks and responsibilities are highlighted below:
•
Participation with voting right in all International Committees (Regional and Special Handling) and Country Risk Committees
(CRCs)
•
Participation in the sessions of Special Handling Monitoring Committees for Bulgaria which monitor and decide on the
strategy of problematic corporate relationships with loan outstanding exceeding a certain threshold, that is jointly set by
ICC and Country TAG
•
Advice on best practices to the Credit Risk Units of International Subsidiaries
GC is also responsible for the preparation of all credit committees’ agendas, distribution of the respective material and maintenance
of the respective Credit Committees’ minutes.
2.
Retail Credit
The scope of the Retail Credit is the assessment of credit applications submitted by Retail Business Units, in relation to Borrowers of
the performing retail credit portfolio (SBB loans and Individual Banking). Such applications refer to new loans, review / renewal of
existing lines and after sales requests. The main tasks of Retail Credit function are outlined below:
•
Assess credit requests in alignment with the credit risk assessment criteria and methodology provided in the appropriate
Credit Policy Manual, in accordance with the defined approval levels.
•
Analyze and evaluate risk factors depending on the type of credit request based on both financial and qualitative information
•
Prepare an independent Credit Opinion ensuring that the risks identified are dully reflected in the Borrower’s Rating
•
Participate with voting rights in the credit committees as per the credit approval process, according to the Approval Levels
defined in the CPM
•
Active participation in the regulatory audits and major internal projects of the Bank, providing at the same time credit related
knowledge, expertise and support to other units
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
(b)
Credit risk monitoring
Group Credit Control
The Group Credit Control (GCC) monitors and assesses the quality of all of the Group’s loan portfolios and operates independently
from the business units of the Bank. The GCC reports directly to the GCRO.
The main responsibilities of the GCC are to:
•
supervise, support and maintain the credit rating and impairment systems used to assess the wholesale and Large SB lending
customers;
•
monitor and review the performance of all of the Group’s loan portfolios;
•
supervise and control the foreign subsidiaries’ credit risk management units;
•
monitor on a regular basis and report on a quarterly basis to the Board of Directors and the BRC of risk exposures, along
with accompanying analyses;
•
monitor and evaluate the efficiency of adopted strategies and proposed solutions in terms of dealing with Non-Performing
Exposures (NPEs) and the achievement of targets for NPEs reduction, as communicated and agreed with the Supervisory
Authorities;
•
conduct field reviews and prepare written reports to the Management on the quality of all of the Group’s loan portfolios
and adherence with EBA prevailing regulations;
•
monitor the proper EBA classifications in accordance with the relevant provisions and guidelines;
•
participate in the approval of new credit policies and new loan products;
•
participate in the Troubled Asset Committee;
•
attend meetings of Credit Committees and Special Handling Committees, without voting right;
•
formulate the Group’s credit impairment policy and measure the provisions of the Greek loan portfolios along with the
relevant reporting to Management;
•
regularly review the adequacy of provisions of all of the Group’s loan portfolios;
•
formulate, in collaboration with the responsible lending Units the credit policy manuals for performing borrowers;
•
provide guidance and monitor the process of designing and reviewing credit policies before approved by Management.
•
Through field / thematic reviews on a sample basis monitor the proper application of Real Estate collaterals’ valuation, as
per the Banks’ Collateral Valuation policy and procedures;
•
monitor the supervisory, regulatory developments, emerging trends and best practices within its purview in order to keep
Management abreast and propose required actions;
•
Lead or participate in various risk related projects including but not limited to supervisory investigations, stress tests, Asset
Quality Reviews, process improvement projects etc.
Group Credit Risk Capital Adequacy Control
The Group Credit Risk Capital Adequacy Control develops and maintains the credit risk assessment models for the loans portfolio and
securitized exposures of the Group, performs capital adequacy calculations and assessment for the loan portfolios of the group,
conducts internal & external stress test exercises as well as well as forecasting of risk parameters, impairments in the context of IFRS9
and RWAs and the three year business plan. In addition, prepares the Pillar 2 assessment for credit risk, foreign exchange risk,
concentration risk and securitisation risk. The Unit reports directly to the GCRO.
Specifically, the main responsibilities of the Group Credit Risk Capital Adequacy Control are to:
•
control, measure and monitor the capital requirements arising from the Group’s loan portfolio along with the relevant
reporting to Management and regulators (ECB/SSM);
•
perform significant Risk Transfer (SRT) tests and monitor independent synthetic and traditional securitsations
•
manage the models development, implementation and monitoring of the internal models and IFRS9 models of Probability
of Default (PD), Loss Given Default (LGD) and Exposure at Default (EAD) for evaluating credit risk
Notes to the Consolidated Financial Statements
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•
measure and monitor the risk parameters (PD, LGD, EAD) for the purposes of internal capital adequacy assessment, as well
as the estimation of risk related parameters (such as forecast 12-m PD, forecast lifetime PD) for IFRS 9 impairment calculation
purposes;
•
review the grouping of lending exposures and ensuring their homogeneity in accordance with the Group’s IFRS accounting
policies
•
development and monitoring of the significant increase in credit risk (SICR) thresholds under IFRS9 standard;
•
prepare monthly capital adequacy calculations (Pillar 1) and relevant management, as well as regulatory reports (COREPs,
SREP) on a quarterly basis;
•
projection of asset quality and capital requirements for the loan book (projected impairments and RWAs), in the context of
the business plan, ICAAP and recovery plan and participation in the relevant committees;
•
perform stress tests, both internal and external (EBA/SSM), and maintain the credit risk stress testing infrastructure;
•
coordinate the stress testing exercises for the loan portfolios at Group Level;
•
prepare the credit risk analyses for Internal Capital Adequacy Assessment (ICAAP)/ Pillar 2 purposes;
•
prepare the Basel Pillar 3 and relevant IFRS9 disclosures for credit risk;
•
regularly report to the GCRO, to the Management Risk Committee and to the Board Risk Committee on: risk models
performance, risk parameters (PD, LGD, EAD), forbearance reporting, vintage analysis and default / redefault statistics
portfolios forward looking analysis and new disbursements quality.
•
guide, monitor and supervise the Credit Risk divisions of the subsidiaries on modelling, credit stress testing and other credit
risk related regulatory issues.
•
monitor and guide Group’s international subsidiaries on credit risk related ICAAP, stress testing and other regulatory credit
risk related issues, based on Group standards. Review of local credit risk stress test exercises;
•
support the business units in the use of credit risk models in business decisions, for funding purposes, in the capital impact
assessment of strategic initiatives and the development and usage of risk related metrics such as risk adjusted pricing, Risk
Adjusted Return on Capital (RAROC) etc.; and
•
assist Remedial Servicing Strategy in the risk assessment and risk impact of various programs and products.
Group Model Validation and Governance
1.
Group Model Validation and Governance was set up with key mandates:
•
the establishment of a comprehensive model validation and governance framework, and
•
the independent validation of significant models (credit risk, pricing, profitability etc.) used by the Group, in order to ensure
that the results produced are correct, cover fully business needs, as well as that the methodologies and tools applied are in
alignment with industry standards and the corresponding regulatory requirements.
2.
In more detail, the tasks of the Unit are outlined as follows:
•
Prepare and update the Group’s Models Framework (to include model definition, roles involved per model, model
classification principles and methodology, model validation principles, materiality classifications and thresholds, models’
registry governance, etc)
•
Establish and update the Group’s Models Registry
•
Review models’ classification, in accordance with the methodology provided in the Group Models Framework
•
Support and advise Group subsidiaries in the implementation of the Group Models Framework
•
Prepare and update the Group Models Validation Framework
•
Design and update the methodologies and procedures used for model validation tests, as defined in the Models Validation
Framework.
•
Prepare annual models’ validation/revalidation plan.
•
Propose and escalate for approval the quantitative thresholds, in order to assess the results of the validation tests.
•
Conduct model validation tests in alignment with the Group Model Validation Framework and regulatory requirements.
•
Prepare detailed reports with the model valuation results according to the specific requirements of the model validated, if
any
Notes to the Consolidated Financial Statements
.
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•
Support and advise Group subsidiaries with regards to the preparation and implementation of their model validation
framework.
•
Disseminate models’ validation results within the Group, as appropriate.
•
Prepare action plan for remediation actions, if any, as a result of the model validation tests implemented, and escalate the
plan for its approval by the appropriate Management Authority
•
Participate in the sign-off of new models for assessing ratings’ system accuracy and suitability.
•
Monitor industry practices on the development and use of models as well as related ECB guidelines and restrictions.
•
Monitor changes in ECB guidelines on models’ validation.
3.
As of September 2024, the Unit has additionally assumed responsibility for the validation of Eurobank’s compliance to the
requirements of BCBS 239 (Risk Data Aggregation and Risk Reporting framework). In this context, the relevant tasks of the unit are
outlined as follows:
•
Design and maintain an effective RDARR Validation Framework describing the relevant methodologies and processes based
on most recent relevant regulatory guidelines and other requirements.
•
Prepare annual RDARR compliance validation plan.
•
Perform Periodic validations of level of compliance with regards to the implementation of the BCBS 239 Principles in the
Group’s RDARR processes and systems, in a timely manner, in line with the RDARR Validation Framework
•
Perform periodic reviews of the validation activities carried out by material subsidiaries.
•
Report the Group’s level of compliance with the BCBS 239 Principles in the annual validation report, in the form of an overall
compliance score, reflecting the overall results derived following the completion of all its annual validation activities, as
described in the RDARR Validation Framework
•
Disseminate validation results within the Group, as appropriate.
•
Prepare action plan for remediation actions, if any, as a result of the validation tests implemented, and escalate the plan for
its approval by the appropriate Management Authority
•
Supervise and review of changes in the BCBS 239 Overarching Framework, in order to proceed with the necessary
amendments (if any) in the RDARR Validation Framework
Group Market and Counterparty Risk
Group Market and Counterparty Risk (GMCR) is responsible for the measurement, monitoring and periodic reporting of the Group’s
exposure to counterparty risk (issuer risk and market driven counterparty risk), which is the risk of loss due to the custome r’s failure
to meet its contractual obligations in the context of treasury positions, such as debt securities, derivatives, repos, reverse repos,
interbank placings, etc.
In addition, GMCR monitors, controls and regularly reports country limits, exposures and escalates breaches to the Management and
to Committees. GMCR uses a comprehensive methodology approved by the BRC, for determining the acceptable country risk level,
including the countries in which the Group has a strategic presence.
The Group sets limits on the level of counterparty risk that are based mainly on the counterparty’s credit rating, as provided by
international rating agencies, the product type and the maturity of the transaction (e.g. control limits on net open derivative positions
by both amount and term, sovereign bonds exposure, corporate securities, asset backed securities etc.).
GMCR maintains and updates the limits’ monitoring systems and ensures the correctness and compliance of all financial institutions
limits with the Bank’s policies as approved by the Group’s relevant bodies.
The utilization of the abovementioned limits, any excess of them, as well as the aggregate exposure per Group’s entity, counterparty
and product type are monitored by GMCR on a daily basis. Risk mitigation contracts are taken into account for the calculation of the
final exposure.
Also, GMCR ensures that the exposure arising from counterparties complies with the approved country limits framework. The GMCR’s
exposure measurement and reporting tool is also available to the Group’s subsidiaries treasury divisions, thus enabling them to
monitor each counterparty’s exposure and the limit availability.
Additionally, for the Banks’ corporate bond portfolio, GMCR measures and monitors daily the total notional limits, the sectoral
concentration and the maximum size per issuer. It uses a measurement tool for monitoring any downgrades and any idiosyncratic
spread widening from purchase and any breach is communicated to the Management and to the relevant Committees.
Notes to the Consolidated Financial Statements
.
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GMCR implements the market’s best practices and safeguards the compliance of all involved parties to limits’ policies and procedures.
To this direction, for various units and International subsidiaries, GMCR provides support and guidance for implementation of the
limits’ guidelines and policies.
Furthermore, GMCR prepares specialized reports for the Management/Committees along with regular reporting that includes the
exposure to the Hellenic Republic and a report that is based on the calculation of the Lifetime Expected Losses for the exposure
towards the Hellenic Republic (HR).
(c) Credit related commitments
The primary purpose of credit related commitments is to ensure that funds are available to a customer as agreed. Financial guarantee
contracts carry the same credit risk as loans since they represent irrevocable assurances that the Group will make payments in the
event that a customer cannot meet its obligations to third parties. Documentary and commercial letters of credit, which are written
undertakings by the Group on behalf of a customer authorizing a third party to draw drafts on the Group up to a stipulated amount
under specific terms and conditions, are secured by the underlying shipment of goods to which they relate and therefore carry less
risk than a loan. Commitments to extend credit represent contractual commitments to provide credit under pre-specified terms and
conditions (note 42) in the form of loans, guarantees or letters of credit for which the Group usually receives a commitment fee. Such
commitments are irrevocable over the life of the facility or revocable only in response to a material adverse effect.
(d) Concentration risk
The Group structures the levels of credit risk it undertakes by placing exposure limits by borrower, or groups of borrowers, and by
industry segments. The exposure to each borrower is further restricted by sub-limits covering on and off-balance sheet exposures,
and daily delivery risk limits in relation to trading items such as forward foreign exchange contracts.
Such risks are monitored on a revolving basis and are subject to an annual or more frequent review. Risk concentrations are monitored
regularly and reported to the BRC. Such reports include the 25 largest exposures, major watch list and problematic customers,
industry analysis, analysis by rating/risk class, by delinquency bucket, and loan portfolios by country.
(e) Rating systems
Rating of wholesale lending exposures
The Group has decided upon the differentiation of rating models for wholesale lending activities, in order to reflect appropriately the
risks arising from customers with different characteristics. Accordingly, the Group employs the following rating models for the
wholesale portfolio:
•
Moody’s Risk Analyst model (“MRA” or “Fundamental Analysis”-“FA”) is used to assess the risk of borrowers for Corporate
Lending.
•
Internal Credit Rating model (“ICR”) is used for those customers that cannot be rated by MRA.
•
Slotting rating models are employed in view of assessing the risk of specialized exposures, which are part of the Specialized
Lending corporate portfolio.
•
Transactional Rating model (“TR”) has been developed in order to assess the risk of transactions taking into consideration
their collaterals/guarantees.
•
Finally, an assessment of the borrowers’ viability and the identification of impairment triggers is performed using the
“Unlikely to Pay” (“UTP”) / impairment test.
MRA, ICR, Slotting and ”UTP” functions are supported by the CreditLens (“CL”) computing platform provided by an external provider
(Moody’s Analytics), while the TR is internally developed and is being supported by the core applications of the Bank.
MRA follows the Moody’s fundamental analysis (FA) approach. The FA models belong to a family of models defined as Knowledge
Based Systems and rely on a probabilistic reasoning approach. They use quantitative and qualitative information of individual obligors
in order to assess their creditworthiness and determine their credit rating. In particular, MRA takes into account the company's
balance sheets, profit & loss accounts and cash flow statements to calculate key ratios. Its ratio analysis includes assessments of each
ratio’s trend across multiple periods, both in terms of the slope and volatility of the trend. It also compares the value of the ratio for
the most recent period with the quartile values for a comparable peer group. Moreover, MRA is supplied with a commonly used set
of qualitative factors relating to the quality of the company’s management, the standing of the company, including the company’s
Notes to the Consolidated Financial Statements
.
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transaction behavior towards the Bank, and the perceived riskiness of the industry. MRA is used for the assessment of all legal entities
with full accountancy tax books irrespective of their legal form, and is calibrated on the Greek corporate environment.
The MRA is not employed for certain types of entities that use different accounting methods to prepare their financial statements,
such as Insurance companies and brokerage firms. Moreover, entities such as start-ups that have not produced financial information
for at least two annual accounting periods are not rated with MRA. In such cases, the Internal Credit Rating (“ICR”) is utilized, which
is a scorecard consisting of a set of factors grouped into 3 main sections corresponding to particular areas of analysis: Financial
Information, Qualitative Criteria, and Behavior Analysis. In addition, the Group performs an overall assessment of wholesale
customers, based both on their rating (MRA or ICR) and the collaterals and guarantees regularly at every credit assessment. In 2021,
in combination with the application of the new Definition of Default, the Bank calibrated its MRA and ICR models, which were
approved by the regulatory authorities.
With reference to Specialized Lending portfolio (for which the Bank is using Slotting rating models) and in line with European Banking
Authority (EBA) definitions, it comprises types of exposures towards entities specifically created to finance or operate physical assets,
where the primary source of income and repayment of the obligation lies directly with the assets being financed. Accordingly, three
of its product lines that are included in the Specialized Lending exposure class: Project Finance (assessed with the Project Finance
Scorecard), Commercial Real Estate (assessed with the CRE investor & CRE Developer Scorecards) and Object Finance (assessed with
the Object Finance Scorecard tailored for the Shipping portfolio).
In addition, the Group has developed an Unlikely to Pay/Impairment test. Unlikeliness to pay refers to circumstances when a Borrower
is assessed as unlikely to pay its credit obligations in full without realization of collateral, regardless of the existence of any past due
amount or of the days past due (i.e. to exposures less than 90 dpd). The impairment test , which is performed to all borrowers during
every credit assessment is implemented in the CL platform and includes clearly defined indicators of unlikeliness to pay (UTP). These
indicators are separated in “Hard” and “Soft” UTP triggers.
•
Hard UTP indicators lead directly to a recognition of non-performing (automatic NPE classification), as in most cases these
events, by their very nature, directly fulfil the definition of UTP and there is little room for interpretation.
•
Soft UTP triggers when applied, do not automatically mean that an exposure is non-performing, but that a thorough
assessment should be performed (assessment prior to NPE classification).
The Group has further enhanced its wholesale credit risk assessment models linking risk parameters estimation with macro-economic
factors allowing the forecasting of rating transitions under different macroeconomic scenarios (base, adverse and optimistic).
The rating systems described above are an integral part of the wholesale banking decision-making and risk management processes:
•
the credit approval or rejection, both at the origination and review process;
•
the allocation of competence levels for credit approval;
•
risk-adjusted pricing;
•
the calculation of Economic Value Added (EVA) and internal capital allocation; and
•
the impairment calculation (staging criteria and subsequent ECL estimation of forecasted risk parameters).
Rating of retail lending exposures
The Group assigns credit scores to its retail customers using a number of statistically-based models both at the origination and on
ongoing basis through behavioral scorecards. These models have been developed to predict, on the basis of available information,
the probability of default, the loss given default and the exposure at default. They cover the entire spectrum of retail products (credit
cards, consumer lending, unsecured revolving credits, car loans, personal loans, mortgages and small business loans).
The Bank’s models were developed based on historical data and credit bureau data. Behavioral scorecards are calculated
automatically on a monthly basis, thus ensuring that the credit risk assessment is up to date.
The models are applied in the credit approval process, the credit limits management, as well as the collection process for the
prioritization of the accounts in terms of handling. Furthermore, the models are often used for the risk segmentation of the customers
and the risk based pricing of particular segments or new products introduced as well as in the calculation of the Economic Value
Added (EVA) and Risk Adjusted Return on Capital (RaRoC) measures.
Notes to the Consolidated Financial Statements
.
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In the context of IFRS9 implementation, the Bank has further enhanced its retail credit risk assessment models linking risk parameters
estimation with macro-economic factors allowing their forecasting over one year and lifetime horizon under different macroeconomic
scenarios (base, adverse and optimistic) and supporting the staging analysis and allocation to risk classes under homogeneous pools.
The Group Credit Risk Capital Adequacy Control monitors the capacity of rating models and scoring systems to classify customers
according to risk, as well as to predict the probability of default and loss given default and exposure at default on an ongoing basis.
The Group Models Validation and Governance implements the Bank's validation policy which complies with international best
practices and regulatory requirements. The Bank verifies the validity of the rating models and scoring systems on an annual basis and
the validation includes both quantitative and qualitative aspects. The validation procedures are documented, and regularly reviewed
and reported to the BRC.
The Group’s Internal Audit also independently reviews the validation process in wholesale and retail rating systems annually.
(f) Credit risk mitigation
A key component of the Group's business strategy is to reduce risk by utilizing various risk mitigating techniques. The most important
risk mitigating means are collaterals' pledges, guarantees and master netting arrangements.
Types of collateral commonly accepted by the Group
The Group has internal policies in place which set out the following types of collateral that are usually accepted in a credit relationship:
•
residential real estate, commercial real estate (offices, shopping malls, etc.), industrial buildings and land;
•
receivables (trade debtors) and post dated cheques;
•
securities, including listed shares and bonds;
•
deposits;
•
guarantees and letters of support;
•
insurance policies; and
•
equipment, mainly, vehicles and vessels.
A specific coverage ratio is pre-requisite, upon the credit relationship’s approval and on ongoing basis, for each collateral type, as
specified in the Group’s credit policy.
For exposures, other than loans to customers (i.e. reverse repos, derivatives), the Group accepts as collateral only cash or liquid
bonds.
Valuation principles of collaterals
In defining the maximum collateral ratio for loans, the Group considers all relevant information available, including the collaterals’
specific characteristics, if market participants would take those into account when pricing the relevant assets. The valuation and
hence eligibility is based on the following factors:
•
the collateral’s fair value, i.e. the exit price that would be received to sell the asset in an orderly transaction under current
market conditions;
•
the fair value reflects market participants’ ability to generate economic benefits by using the asset in its highest and best
use or by selling it;
•
a reduction in the collateral’s value is considered if the type, location or condition (such as deterioration and obsolescence)
of the asset indicate so; and
•
no collateral value is assigned if a pledge is not legally enforceable.
The Group performs collaterals’ valuation in accordance with its processes and policies. The Group has an approved list of
independent and qualified appraisers, which is updated on an annual basis or at shorter intervals if necessary. With the exception of
special cases (e.g. syndicated loans), the real estate collaterals of all units are valued by Cerved Property Services S.A. (“CPS”) who is
the successor of the Bank’s former subsidiary, Eurobank Property Services S.A. CPS is regulated by the Royal Institute of Chartered
Surveyors and employs internal or external qualified appraisers based on predefined criteria (qualifications and expertise). All
appraisals take into account factors such as the region, age and marketability of the property, and are further reviewed and
countersigned by experienced staff. The valuation methodology employed is based on International Valuation Standards (IVS), while
Notes to the Consolidated Financial Statements
.
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quality controls are in place, such as reviewing mechanisms, independent sample reviews by independent well established valuation
companies.
In order to monitor the valuation of residential property held as collateral, the Group uses the Residential Property Index of the Bank
of Greece. The index has been created by the Real Estate Market Analysis Section of BoG using detailed information collected from
all Credit Institutions and Real Estate Investment Companies (REIC) operating in Greece. The Residential Property Index is used in
combination with physical inspection and desktop valuation, depending on the EBA status and the balance of the loan.
For commercial real estates, the Group uses the Commercial Real Estate Index developed by CPS. This index is derived through a
combination of CPS & BoG CRE indices and it is based on internationally accepted methodology. It constitutes a tool for the statistical
monitoring of possible changes of the values of the commercial properties as well as for the trends in the particular market. The
Commercial Real Estate Index is used in combination with physical inspection and desktop valuation, depending on the EBA status
and the balance of the loan.
To ensure the quality of the post-dated cheques accepted as collateral, the Bank has developed a pre-screening system, which takes
into account a number of criteria and risk parameters, so as to evaluate their eligibility. Furthermore, the post-dated cheques’
valuation is monitored through the use of advanced statistical reports and through the review of detailed information regarding the
recoverability of cheques, referrals and bounced cheques, per issuer broken down.
Collateral policy and documentation
Regarding collaterals, Group’s policy emphasizes the need that collaterals and relevant processes are timely and prudently executed,
in order to ensure that collaterals and relevant documentation are legally enforceable at any time. The Group holds the right to
liquidate collateral in the event of the obligor’s financial distress and can claim and control cash proceeds from the liquidation process.
Guarantees
The guarantees used as credit risk mitigation by the Group are largely issued by central and regional governments in the countries in
which it operates. The Hellenic Development Bank (HDB) and similar funds, banks and insurance companies are also significant
guarantors of credit risk.
Management of repossessed properties
The objective of the repossessed assets’ management is to minimize the time cycle of the asset’s disposal and to maximize the
recovery of the capital engaged.
To this end, the management of repossessed assets aims at improving rental and other income from the exploitation of such assets,
and at the same time reducing the respective holding and maintenance costs. Additionally, the Group is actively engaged in identifying
suitable potential buyers for its portfolio of repossessed assets (including specialized funds involved in acquiring specific portfolios of
properties repossessed), both in Greece and abroad, in order to reduce its stock of properties with a time horizon of 3-5 years.
Repossessed assets are closely monitored based on technical and legal due diligence reports, so that their market value is accurately
reported and updated in accordance with market trends.
Counterparty risk
The Group mitigates counterparty risk arising from treasury activities by entering into master netting arrangements and similar
agreements, as well as collateral agreements with counterparties with which it undertakes a significant volume of transactions. The
respective credit risk is reduced through a master netting agreement to the extent that if an event of default occurs, all amounts with
the counterparty are terminated and settled on a net basis.
In the case of derivatives, the Group makes use of International Swaps and Derivatives Association (ISDA) contracts, which limit the
exposure via the application of netting, and Credit Support Annex (CSAs), which further reduce the total exposure with the
counterparty. Under these agreements, the total exposure with the counterparty is calculated on a daily basis taking into account any
netting arrangements and collaterals.
The same process is applied in the case of repo transactions where standard Global Master Repurchase Agreements (GMRAs) are
used. The exposure (the net difference between repo cash and the market value of the securities) is calculated on a daily basis and
collateral is transferred between the counterparties thus minimizing the exposure.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Following the European Market Infrastructure Regulation (EMIR), the Bank performs centrally cleared transactions for eligible
derivative contracts through an EU authorized European central counterparty (CCP), recorded in trade repositories. The use of CCP
increases market transparency and reduces counterparty credit and operational risks inherent in derivatives markets.
The Bank uses a comprehensive collateral management system for the monitoring of ISDA, CSAs and GMRAs, i.e. the daily valuation
of the derivatives and the market value of the securities are used for the calculation of each counterparty’s exposure. The collateral
which should be posted or requested by the relevant counterparty is calculated daily.
With this system, the Bank monitors and controls the collateral flow in case of derivatives and repos, independently of the
counterparty. The effect of any market movement that increases the Bank’s exposure is reported and the Bank proceeds to collateral
call accordingly.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
5.2.1.1 Maximum exposure to credit risk before collateral held
2024
2023
€ million
€ million
Credit risk exposures relating to on-balance sheet assets are as
follows:
Due from credit institutions
2,197
2,355
Less: Impairment allowance
(1)
2,196
(1)
2,354
Debt securities held for trading
186
245
Derivative financial instruments
838
881
Loans and advances to customers at amortised cost:
- Wholesale lending⁽¹⁾
31,663
25,912
- Mortgage lending
12,466
9,942
- Consumer lending
4,533
3,436
- Small business lending
3,583
3,484
Less: Impairment allowance
(1,309)
50,936
(1,258)
41,516
Fair value changes of loans in portfolio hedging of
interest rate risk
(3)
15
Loans and advances to customers measured at FVTPL
19
15
Investment securities:
- Debt securities measured at amortised cost
17,677
10,974
Less: Impairment allowance
(26)
17,651
(18)
10,955
Debt securities measured at FVOCI
4,148
3,492
Investment securities at FVTPL
384
263
Other financial assets⁽²⁾
149
218
Less: Impairment allowance
(23)
126
(22)
196
Credit risk exposures relating to off-balance sheet items (note 43):
- Loan commitments
10,489
8,068
- Financial guarantee contracts and other commitments
3,517
3,348
Total
90,487
71,348
(1)
Includes loans to public sector.
(2)
Refers to financial assets subject to IFRS 9 impairment requirements, which are recognised within other assets
The above table represents the Group’s maximum credit risk exposure as at 31 December 2024 and 31 December 2023 respectively,
without taking account of any collateral held or other credit enhancements that do not qualify for offset in the Group's financial
statements.
For on-balance sheet assets, the exposures set out above are based on the carrying amounts as reported in the balance sheet. For
off-balance sheet items, the maximum exposure is the nominal amount that the Group may be required to pay if the financial
guarantee contracts and other commitments are called upon and the loan commitments are drawn down. Off-balance sheet credit
risk exposures presented above, include revocable loan commitments to extend credit of € 4.7 billion (2023: € 3.5 billion) that are
subject to ECL measurement.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
5.2.1.2 Loans and advances to customers
The section below provides an overview of the Group’s exposure to credit risk arising from its customer lending portfolios, in line with
the guidelines set by the Hellenic Capital Markets Commission and the Bank of Greece (BoG) released on 30 September 2013, as
updated by the Group in order to comply with the revised IFRS 7 ‘Financial Instruments: Disclosures’, following the adoption of IFRS
9 from 2018. In addition, the types of the Group’s forbearance programs are in line with the BoG’s Executive Committee Act
42/30.05.2014 and its amendments.
(a) Credit quality of loans and advances to customers
Loans and advances to customers carried at amortised cost are classified depending on how ECL is measured.
Accordingly, loans reported as non-impaired include loans for which a ‘12-month ECL allowance’ is recognized as they exhibit no
significant increase in credit risk since initial recognition and loans for which a ‘Lifetime ECL allowance’ is recognized as they exhibit a
significant increase in credit risk since initial recognition but are not considered to be in default.
Credit impaired loans category includes loans that are considered to be in default, for which a loss allowance equal to a ‘Lifetime ECL’
is recognized, and loans classified as ’Purchased or originated credit impaired’ (POCI) which are always measured on the basis of a
‘Lifetime ECL’. The Group applies a default definition for accounting purposes, which is consistent with the European Banking
Authority (EBA) definition for non-performing exposure and regulatory definition of default.
Loans and advances to customers carried at FVTPL are not subject to ECL measurement and therefore are not included in the
quantitative information provided in the below sections for loans and advances measured at amortised cost, except where indicated.
The Group’s accounting policy for impairment of financial assets is set out in note 2.2.13.
Quantitative information
The following quantitative analysis presents information about the total gross carrying amount of loans and advances including
securitization notes issued by special purpose entities established by the Group, and the nominal amount of credit related
commitments, that are classified as non-impaired (stage 1 and stage 2) and those classified as credit-impaired (stage 3 and POCI). It
also presents the impairment allowance recognized in respect of all loans and advances and credit related commitments, analyzed
into individually or collectively assessed, based on how the respective impairment allowance has been calculated, the carrying amount
of loans and advances, as well as the value of collateral held to mitigate credit risk which is capped to the respective gross loan
amount. In particular, the following four tables for 2024 and 2023 provide:
●
a summary of the credit quality of lending exposures and credit related commitments, presenting product line, stage
allocation, respective impairment allowance and collateral held
●
the classification of lending exposures and credit related commitments into the internal credit rating categories,
●
the movement of the gross carrying amounts for loans and advances to customers by product line and stage,
●
the ageing analysis of credit impaired (Stage 3 and POCI) loans and advances to customers
Public Sector lending exposures include exposures to the central government, local authorities, state-linked companies and entities
controlled and fully or partially owned by the state, excluding public and private companies with commercial activity. For credit risk
management purposes, exposures to Public Sector are incorporated in wholesale lending.
.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The following tables present summary information about the credit quality (stage analysis, impairment allowance and collateral held per product line) of loans and advances to customers carried at amortised
cost and credit related commitments. In addition, they include the fair value changes of loans in portfolio hedging of interest rate risk and the loans and advances to customers carried at FVTPL for the
purpose of reconciliation with the total carrying amount of loan and advances to customers:
.
31 December 2024
Impairment allowance
Lifetime ECL - Stage 3
Lifetime ECL - Stage 3
12-month ECL -
Stage 1
Lifetime ECL -
Stage 2
Individually
assessed
Collectively
assessed
POCI
Total gross carrying
amount/nominal
exposure
12-month ECL -
Stage 1
Lifetime ECL -
Stage 2
Individually
assessed
Collectively
assessed
POCI
Carrying
amount
Value of
collateral
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Retail Lending
15,743
3,733
62
715
329
20,582
(132)
(315)
(43)
(374)
(23)
19,695
14,806
- Mortgage
9,249
2,706
36
323
151
12,466
(64)
(218)
(30)
(147)
(10)
11,997
Value of collateral
9,090
2,405
20
258
147
11,919
- Consumer
3,064
317
1
127
152
3,660
(42)
(42)
(0)
(90)
(10)
3,475
Value of collateral
711
7
1
7
148
874
- Credit card
767
75
0
29
1
873
(8)
(5)
(0)
(23)
(1)
835
Value of collateral
29
1
0
0
1
30
- Small business
2,663
635
24
237
24
3,583
(17)
(50)
(13)
(113)
(1)
3,389
Value of collateral
1,296
507
13
142
24
1,982
Wholesale Lending
29,687
1,184
532
140
89
31,632
(58)
(39)
(244)
(77)
(4)
31,211
20,012
- Large corporate
20,189
568
272
17
38
21,082
(42)
(23)
(115)
(10)
(2)
20,889
Value of collateral
10,637
372
152
9
36
11,206
- SMEs
5,130
617
260
124
51
6,182
(16)
(16)
(129)
(67)
(2)
5,953
Value of collateral
3,653
468
188
78
51
4,438
- Securitization notes⁽²⁾
4,368
-
-
-
-
4,368
(0)
-
-
-
-
4,368
Value of collateral
4,368
-
-
-
-
4,368
Public Sector
30
-
-
0
1
31
(0)
-
-
(0)
-
30
4
- Greece
12
-
-
0
-
13
(0)
-
-
(0)
-
12
Value of collateral
-
-
-
0
-
0
- Other countries
18
-
-
-
1
18
(0)
-
-
-
-
18
Value of collateral
3
-
-
-
0
4
Fair value changes of loans in portfolio hedging of
interest rate risk
(3)
Loans and advances to customers at FVTPL
19
19
Total
45,460
4,917
593
856
419
52,245
(191)
(354)
(287)
(451)
(27)
50,953
34,841
Total value of collateral
29,787
3,760
373
495
407
Credit related commitments
13,645
263
39
26
33
14,005
(22)
(4)
(21)
(7)
(9)
Loan commitments
10,256
212
7
7
6
10,489
(15)
(4)
(0)
(0)
(1)
Financial guarantee contracts and other
commitments
3,389
50
32
19
26
3,517
(7)
(1)
(21)
(6)
(8)
Value of collateral
2,077
74
20
5
11
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
Impairment allowance
Lifetime ECL - Stage 3 and POCI⁽¹⁾
Lifetime ECL - Stage 3 and POCI⁽¹⁾
12-month ECL -
Stage 1
Lifetime ECL - Stage 2
Individually
assessed
Collectively
assessed
Total gross carrying
amount/nominal
exposure
12-month ECL -
Stage 1
Lifetime ECL - Stage 2
Individually
assessed
Collectively
assessed
Carrying amount
Value of
collateral
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Retail Lending
12,331
3,716
85
730
16,861
(99)
(272)
(60)
(381)
16,050
11,385
- Mortgage
6,909
2,618
39
376
9,942
(20)
(154)
(33)
(175)
9,560
Value of collateral
6,726
2,237
16
310
9,289
- Consumer
2,242
297
1
102
2,642
(45)
(48)
(1)
(84)
2,463
Value of collateral
132
1
1
0
133
- Credit card
701
73
0
20
794
(8)
(4)
(0)
(19)
762
Value of collateral
0
0
0
0
0
- Small business
2,480
728
45
231
3,484
(25)
(65)
(26)
(102)
3,265
Value of collateral
1,246
547
23
147
1,962
Wholesale Lending
23,987
1,198
539
169
25,893
(71)
(58)
(219)
(99)
25,447
16,621
- Large corporate
15,791
544
232
27
16,593
(47)
(30)
(85)
(12)
16,420
Value of collateral
8,370
395
150
10
8,926
- SMEs
3,752
654
307
142
4,856
(25)
(28)
(134)
(86)
4,584
Value of collateral
2,429
517
220
86
3,252
- Securitization notes⁽²⁾
4,444
-
-
-
4,444
(0)
-
-
-
4,444
Value of collateral
4,444
-
-
-
4,444
Public Sector
18
0
-
0
19
(0)
(0)
-
(0)
18
1
- Greece
18
-
-
0
18
(0)
-
-
(0)
18
Value of collateral
1
-
-
0
1
- Other countries
0
0
-
-
0
(0)
(0)
-
-
0
Value of collateral
-
-
-
-
-
Fair value changes of loans in portfolio hedging of
interest rate risk
15
Loans and advances to customers at FVTPL
15
15
Total
36,336
4,914
624
899
42,773
(170)
(329)
(279)
(480)
41,545
28,022
Total value of collateral
23,348
3,697
409
553
Credit related commitments
11,049
311
36
20
11,416
(18)
(4)
(20)
(6)
Loan commitments
7,801
259
6
2
8,068
(11)
(3)
-
-
Financial guarantee contracts and other
commitments
3,247
51
31
19
3,348
(7)
(1)
(20)
(6)
Value of collateral
1,193
101
14
7
(1)
(2)
loan portfolios presented as collateral has been capped to the gross carrying amount of the senior notes. Moreover, the senior notes of the Cairo and Mexico securitizations are guaranteed by the Hellenic Republic in the context of Hellenic Asset
Protection Scheme (note 20). The respective approval for the senior note of Leon securitization is in progress and expected shortly.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The Group assesses the credit quality of its loans and advances to customers and credit related commitments that are subject to ECL
using internal credit rating systems for the wholesale portfolio, which are based on a variety of quantitative and qualitative factors,
while the credit quality of the retail portfolio is based on the allocation of risk classes into homogenous pools.
The following tables present the distribution of the gross carrying amount of loans and advances and the nominal exposure of credit
related commitments based on the credit quality classification categories and stage allocation:
31 December 2024
Internal credit rating
12-month
ECL-Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL -
Stage 3
POCI
Total gross
carrying
amount
Retail Lending
€ million
€ million
€ million
€ million
€ million
- Mortgage
PD<2.5%
8,905
1,534
-
33
10,471
2.5%<=PD<4%
197
18
-
0
215
4%<=PD<10%
93
754
-
7
854
10%<=PD<16%
43
148
-
3
194
16%<=PD<99.99%
12
252
-
4
269
100%
-
-
359
104
463
- Consumer
PD<2.5%
995
2
-
15
1,012
2.5%<=PD<4%
1,484
4
-
14
1,502
4%<=PD<10%
443
34
-
20
497
10%<=PD<16%
103
12
-
4
119
16%<=PD<99.99%
38
264
-
8
310
100%
-
-
128
92
219
- Credit card
PD<2.5%
353
2
-
0
355
2.5%<=PD<4%
381
25
-
-
406
4%<=PD<10%
31
16
-
0
47
10%<=PD<16%
1
4
-
0
5
16%<=PD<99.99%
0
28
-
0
28
100%
-
-
29
1
30
- Small business
PD<2.5%
1,563
21
-
1
1,585
2.5%<=PD<4%
696
32
-
0
728
4%<=PD<10%
374
355
-
0
729
10%<=PD<16%
28
148
-
3
179
16%<=PD<99.99%
2
79
-
0
81
100%
-
-
261
20
280
Wholesale Lending
- Large corporate
Strong
14,005
29
-
-
14,034
Satisfactory
5,898
360
-
9
6,268
Watch list
285
178
-
12
475
Impaired (Defaulted)
-
-
288
17
305
- SMEs
Strong
1,593
24
-
0
1,616
Satisfactory
3,334
312
-
14
3,661
Watch list
203
281
-
9
493
Impaired (Defaulted)
-
-
383
28
412
- Securitization notes
Strong
4,368
-
-
-
4,368
Public Sector
All countries
Strong
13
-
-
-
13
Satisfactory
17
-
-
1
18
Watch list
-
-
-
-
-
Impaired (Defaulted)
-
-
0
-
0
Total
45,460
4,917
1,449
419
52,245
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
Internal credit rating
12-month ECL -
Stage 1
Lifetime ECL -
Stage 2
Lifetime ECL -
Stage 3 and
POCI
Total gross
carrying amount
Retail Lending
€ million
€ million
€ million
€ million
- Mortgage
PD<2.5%
6,587
1,282
0
7,869
2.5%<=PD<4%
196
69
0
265
4%<=PD<10%
105
874
0
980
10%<=PD<16%
14
192
0
206
16%<=PD<99.99%
7
201
1
209
100%
-
-
414
414
- Consumer
PD<2.5%
512
0
-
512
2.5%<=PD<4%
700
21
-
721
4%<=PD<10%
945
29
0
975
10%<=PD<16%
54
74
-
129
16%<=PD<99.99%
30
172
0
202
100%
-
-
103
103
- Credit card
PD<2.5%
335
1
-
337
2.5%<=PD<4%
338
26
0
364
4%<=PD<10%
27
15
-
42
10%<=PD<16%
-
3
0
3
16%<=PD<99.99%
-
27
-
27
100%
-
-
20
20
- Small business
PD<2.5%
912
26
-
938
2.5%<=PD<4%
715
161
-
876
4%<=PD<10%
825
381
-
1,206
10%<=PD<16%
1
67
-
68
16%<=PD<99.99%
26
93
-
119
100%
-
-
276
276
Wholesale Lending
- Large corporate
Strong
11,391
1
-
11,392
Satisfactory
4,197
377
10
4,583
Watch list
204
166
-
369
Impaired (Defaulted)
-
-
249
249
- SMEs
Strong
1,194
19
-
1,213
Satisfactory
2,401
334
0
2,735
Watch list
157
301
-
458
Impaired (Defaulted)
-
-
450
450
- Securitization notes
Strong
4,444
-
-
4,444
Public Sector
All countries
Strong
18
-
-
18
Satisfactory
1
-
-
1
Watch list
-
0
-
0
Impaired (Defaulted)
-
-
0
0
Total
36,336
4,914
1,523
42,773
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2024
31 December 2023
Internal credit rating
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL -
Stage 3 and
POCI
Total
nominal
amount
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL -
Stage 3 and
POCI
Total
nominal
amount
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Credit Related
Commitments
Retail Lending
Loan commitments
PD<2.5%
1,571
8
0
1,579
1,084
6
-
1,090
2.5%<=PD<4%
1,571
45
0
1,615
1,356
46
-
1,401
4%<=PD<10%
492
51
0
544
574
97
-
671
10%<=PD<16%
41
12
0
54
47
18
-
64
16%<=PD<99.99%
0
28
0
28
0
30
-
30
100%
-
-
4
4
-
-
2
2
Financial guarantee
contracts and other
commitments
PD<2.5%
38
0
0
38
14
-
-
14
2.5%<=PD<4%
118
0
-
118
136
0
-
136
4%<=PD<10%
38
1
-
39
29
1
-
30
10%<=PD<16%
-
-
-
-
5
0
-
6
16%<=PD<99.99%
-
-
-
-
1
-
-
1
100%
-
-
6
6
-
-
2
2
Wholesale Lending
Loan commitments
Strong
4,184
2
-
4,185
3,738
1
-
3,739
Satisfactory
2,339
57
1
2,397
978
56
-
1,034
Watch list
58
9
0
67
25
7
-
31
Impaired
(Defaulted)
-
-
15
15
-
-
6
6
Financial guarantee
contracts and other
commitments
Strong
2,396
1
-
2,398
2,017
1
-
2,018
Satisfactory
728
27
-
755
987
31
-
1,018
Watch list
70
21
-
91
57
19
-
77
Impaired
(Defaulted)
-
-
72
72
-
-
48
48
Total
13,645
263
98
14,005
11,049
311
57
11,416
The table below depicts the internal credit rating bands (MRA rating scale or equivalent) for the wholesale portfolio that correspond
to the credit quality classification categories presented in the above tables:
Wholesale Lending
Credit Quality classification
categories
Internal Credit Rating
Internal Credit Rating
Strong
1-4
1-3
Satisfactory
5-6
4-6
Watch list
7-9
7-9
Impaired (Defaulted)
10
10
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The following tables present the movement of the gross carrying amounts for loans and advances to customers by product line and stage and is calculated by reference to the opening and closing balances
for the reporting years from 1 January 2024 to 31 December 2024 and 1 January 2023 to 31 December 2023:
31 December 2024
Wholesale
Mortgage
Consumer
Small business
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
POCI
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
POCI
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
POCI
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
POCI
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Gross carrying amount at 1
January
24,005
1,198
688
21
6,909
2,618
411
4
2,942
369
119
5
2,480
728
276
0
42,773
New loans and advances
originated or purchased
8,427
-
-
-
1,090
-
-
-
1,189
-
-
-
674
-
-
-
11,380
Arising from acquisition (note
23.2)
2,593
-
-
71
2,229
-
-
159
617
-
-
160
111
-
-
27
5,965
Securitization notes (note 20)
281
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
281
Transfers between stages
-to 12-month ECL
265
(257)
(8)
-
107
(97)
(10)
-
116
(105)
(10)
-
99
(91)
(9)
-
-
-to lifetime ECL
(672)
689
(17)
-
(354)
436
(82)
-
(218)
240
(22)
-
(110)
157
(47)
-
-
-to lifetime ECL credit-impaired
loans
(82)
(54)
136
-
(66)
(136)
203
-
(75)
(49)
124
-
(59)
(89)
148
-
-
Loans and advances
derecognised/ reclassified as
held for sale during the year
(25)
-
(21)
-
(7)
(1)
(133)
-
(4)
(0)
(15)
(3)
(0)
(1)
(70)
-
(279)
Amounts written-off⁽¹⁾
-
-
(14)
(0)
-
-
(9)
(1)
-
-
(47)
(1)
-
-
(13)
(0)
(84)
Repayments
(5,092)
(428)
(83)
(6)
(992)
(209)
(42)
(14)
(823)
(61)
(33)
(14)
(625)
(93)
(35)
(6)
(8,556)
Foreign exchange differences
and other movements
17
36
(9)
5
334
96
21
3
88
(4)
41
7
93
23
11
4
766
Gross Carrying amount at 31
December
29,717
1,184
672
90
9,249
2,706
359
151
3,831
392
157
153
2,663
635
261
24
52,245
Impairment allowance
(58)
(39)
(321)
(4)
(64)
(218)
(177)
(10)
(51)
(48)
(114)
(11)
(17)
(50)
(126)
(1)
(1,309)
Carrying amount at 31
December
29,659
1,145
351
86
9,185
2,489
182
141
3,780
344
43
142
2,645
585
135
23
50,936
Notes to the Consolidated Financial Statements
.
72
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31 December 2024 Consolidated Financial Statements
31 December 2023
Wholesale
Mortgage
Consumer
Small business
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Gross carrying amount at 1
January
23,448
1,581
1,024
6,832
2,825
545
2,669
427
257
2,668
740
434
43,450
New loans and advances
originated or purchased
5,930
-
-
756
-
-
859
-
-
536
-
-
8,081
Arising from acquisition
-
-
-
-
-
-
443
-
6
-
-
-
450
Transfers between stages
-to 12-month ECL
451
(443)
(8)
532
(520)
(12)
74
(65)
(9)
123
(116)
(7)
-
-to lifetime ECL
(363)
498
(135)
(392)
487
(95)
(84)
103
(18)
(186)
235
(49)
-
-to lifetime ECL credit-
impaired loans
(55)
(173)
228
(54)
(163)
217
(36)
(38)
74
(53)
(77)
130
-
Loans and advances
derecognised/ reclassified as
held for sale during the year
(696)
(53)
(29)
(180)
(11)
(174)
(465)
(91)
(129)
(104)
(23)
(155)
(2,109)
Amounts written-off⁽¹⁾
-
-
(216)
-
-
(46)
-
-
(62)
-
-
(62)
(387)
Repayments
(4,654)
(240)
(135)
(858)
(185)
(49)
(484)
(59)
(44)
(578)
(75)
(36)
(7,396)
Foreign exchange differences
and other movements
(55)
27
(21)
274
185
30
(33)
92
48
73
44
21
685
Gross Carrying amount at 31
December
24,005
1,198
709
6,909
2,618
415
2,942
369
124
2,480
728
276
42,773
Impairment allowance
(72)
(58)
(318)
(20)
(154)
(208)
(53)
(53)
(105)
(25)
(65)
(128)
(1,258)
Carrying amount at 31
December
23,934
1,140
391
6,888
2,464
207
2,890
317
19
2,454
663
148
41,515
(1)
The contractual amount outstanding on lending exposures that were written off during the year ended 31 December 2024 and that are still subject to enforcement activity is € 68 million (2023: € 338 million).
Note 1: Wholesale product line category includes also Public sector loans portfolio.
Note 2: “Loans and advances derecognised/ reclassified as held for sale during the year” presents loans derecognized due to a) substantial modifications of the loans’ contractual terms, b) sale and securitization transactions, c) debt to equity
transactions and those that have been reclassified as held for sale during the year (notes 20 and 30).
Notes to the Consolidated Financial Statements
.
|
Page
31 December 2024 Consolidated Financial Statements
Credit impaired loans and advances to customers
The following tables present the ageing analysis of credit impaired (Stage 3 and POCI) loans and advances by product line at their
gross carrying amounts, as well as the respective impairment allowance and the value of collaterals held to mitigate credit risk.
For denounced loans, the Group ceases to monitor the delinquency status and therefore the respective balances have been included
in the ‘over 360 days’ time band, with the exception of consumer exposures which continue to be monitored up to 360 days past due.
31 December 2024
Retail lending
Wholesale lending
Public sector
Lifetime ECL
credit-impaired
Mortgage
Consumer
Credit card
Small
business
Large
corporate
SMEs
Greece and
other countries
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
up to 90 days
235
133
6
125
185
236
1
920
90 to 179 days
43
25
7
21
0
7
-
103
180 to 360 days
76
38
10
49
6
13
-
192
more than 360 days
156
84
8
90
135
179
0
653
Total gross carrying
amount
511
280
30
285
326
435
1
1,868
Impairment allowance
(188)
(101)
(24)
(127)
(127)
(197)
(0)
(765)
Carrying amount
323
179
6
158
199
238
1
1,103
Value of Collateral
425
156
1
179
198
316
0
1,275
31 December 2023
Retail lending
Wholesale lending
Public sector
Lifetime ECL
credit-impaired
Mortgage
Consumer
Credit card
Small
business
Large
corporate
SMEs
Greece and
other countries
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
up to 90 days
174
42
6
132
191
189
0
734
90 to 179 days
32
18
6
20
33
14
-
123
180 to 360 days
73
22
5
33
1
45
-
179
more than 360 days
136
21
3
91
33
202
0
487
Total gross carrying
amount
415
104
20
276
259
450
0
1,523
Impairment allowance
(208)
(86)
(19)
(128)
(98)
(220)
(0)
(759)
Carrying amount
207
18
1
148
161
230
0
764
Value of Collateral
326
1
0
169
160
306
0
962
Note: As at 31 December 2024, total gross carrying amount of credit impaired loans includes POCI loans of € 419 million (2023: € 29 million).
Notes to the Consolidated Financial Statements
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31 December 2024 Consolidated Financial Statements
(b) Collaterals and repossessed assets
Collaterals
The Loan-to-Value (LTV) ratio of the mortgage lending reflects the gross loan exposure at the balance sheet date over the market
value of the property held as collateral.
The LTV ratio of the mortgage portfolio is presented below:
2024
2023
€ million
€ million
Mortgages
Less than 50%
4,740
2,852
50%-70%
3,221
2,456
71%-80%
1,689
1,621
81%-90%
1,041
979
91%-100%
599
659
101%-120%
502
557
121%-150%
333
402
Greater than 150%
343
415
Total exposure
12,466
9,942
Average LTV
44.64%
55.18%
The breakdown of collateral and guarantees for loans and advances to customers at amortised cost is presented below:
31 December 2024
Value of collateral received
Guarantees
received⁽¹⁾
Real Estate
Financial
Other
Total
€ million
€ million
€ million
€ million
€ million
Retail Lending
13,421
701
684
14,806
857
Wholesale Lending
6,864
1,601
11,547
20,012
613
Public sector
1
3
0
4
-
Total
20,285
2,306
12,231
34,822
1,470
31 December 2023
Value of collateral received
Guarantees
Received⁽¹⁾
Real Estate
Financial
Other
Total
€ million
€ million
€ million
€ million
€ million
Retail Lending
10,618
304
463
11,385
554
Wholesale Lending
5,300
877
10,444
16,621
632
Public sector
-
1
0
1
-
Total
15,919
1,181
10,907
28,007
1,186
(1)
In addition to the above presented guarantees, the Group has entered into financial guarantees contracts (projects ‘Wave’) related to the portfolios of
performing SME, SBB and large corporate loans of € 4.3 billion as at 31 December 2024 (31 December 2023: € 4 billion) (note 20).
The collaterals presented in the above table under category “Other”, include assigned receivables, equipment, inventories, vessels,
etc. They also include the amount of the securitized loans held by the securitizations vehicles that issued the related senior notes.
The amount of the securitized loans has been capped to the gross carrying amount of the senior notes. In addition, the senior notes
of the Cairo and Mexico securitizations are guaranteed by the Hellenic Republic in the context of Hellenic Asset Protection Scheme
(note 20).
Notes to the Consolidated Financial Statements
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31 December 2024 Consolidated Financial Statements
Repossessed assets
The Group recognizes collateral assets on the balance sheet by taking possession usually through legal processes or by calling upon
other credit enhancements. As at 31 December 2024, the carrying amount of repossessed assets which are included in “Other assets”
amounted to € 527 million (31 December 2023: € 495 million), note 29. These assets are carried at the lower of cost and net realizable
value (note 2.2.19).
The main type of collateral that the Group repossesses against repayment or reduction of the outstanding loan is real estate. The
below table presents the movement of repossessed real estate assets during the year, including a) those transferred to the
appropriate category based on their use by the Group as part of its operations i.e. investment property or own-used (notes 2.2.6, 26,
and 27) and b) those reclassified to “held for sale” category (notes 30).
2024
2023
Real estate
Real estate
Residential
Commercial
Total
Residential
Commercial
Total
€ million
€ million
€ million
€ million
€ million
€ million
Balance at 1 January
195
298
493
212
345
557
Arising from acquisition (note 23.2)
4
105
109
-
-
-
Additions⁽¹⁾
7
26
33
11
17
28
Transfers to investment property
(2)
(18)
(20)
(2)
-
(2)
Disposals
(14)
(45)
(59)
(12)
(27)
(39)
Valuation losses
(2)
(26)
(28)
(4)
(14)
(18)
Held for Sale (note 30)
(1)
(0)
(1)
(8)
(24)
(32)
Other
(0)
(2)
(2)
(2)
1
(1)
Balance at 31 December
187
338
525
195
298
493
(1)
December 2023: € 24 million).
In addition, the Group repossesses other types of collaterals mainly referring to equity positions due to the participation in debt for
equity transactions as part of forbearance measures.
(c) Geographical and industry concentrations of loans and advances to customers
As described above in note 5.2.1, the Group holds diversified portfolios across markets and countries and implements limits on
concentrations arising from the geographical location or the activity of groups of borrowers that could be similarly affected by changes
in economic or other conditions, in order to mitigate credit risk.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The following tables break down the Group’s exposure into loans and advances to customers and credit related commitments at their gross carrying amount and nominal amount respectively by stage,
product line, industry and geographical region and impairment allowance by product line, industry and geographical region:
31 December 2024
Greece
Rest of Europe
Other Countries
Gross carrying/nominal amount
Gross carrying/nominal amount
Gross carrying/nominal amount
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL
-Stage 3
POCI
Impairment
allowance
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL
-Stage 3
POCI
Impairment
allowance
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL
-Stage 3
POCI
Impairment
allowance
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Retail Lending
8,038
3,324
624
0
(683)
7,625
408
153
327
(203)
80
0
0
2
(1)
-Mortgage
4,476
2,595
302
0
(410)
4,759
111
57
150
(59)
14
0
0
1
(0)
-Consumer
986
72
55
0
(68)
2,012
244
72
151
(117)
66
0
0
1
(0)
-Credit card
568
41
23
0
(28)
199
34
6
1
(9)
0
0
0
0
(0)
-Small business
2,008
615
243
-
(177)
655
20
18
24
(17)
0
-
-
-
(0)
Wholesale Lending
14,000
622
518
12
(298)
11,579
551
151
77
(120)
4,107
11
3
0
(4)
-Commerce and services⁽²⁾
5,717
271
248
9
(136)
7,000
104
83
39
(50)
580
3
1
0
(2)
-Manufacturing
2,927
204
182
3
(119)
839
52
19
9
(14)
69
-
0
-
(0)
-Shipping
76
-
-
-
(0)
589
1
3
8
(1)
3,112
-
1
-
(2)
-Construction
1,318
30
24
-
(16)
1,192
59
11
10
(9)
217
7
0
-
(0)
-Tourism
1,406
110
59
-
(18)
472
159
11
1
(9)
-
-
-
-
-
-Energy
2,505
0
4
-
(6)
249
7
0
0
(3)
-
-
-
-
-
-Other
51
8
1
-
(3)
1,238
169
24
10
(34)
130
-
-
-
(0)
Public Sector
12
-
0
-
(0)
18
-
-
1
(0)
-
-
-
-
-
Total
22,051
3,947
1,142
12
(982)
19,222
959
304
404
(323)
4,188
11
3
2
(4)
Credit related Commitments
8,609
144
47
0
(44)
4,574
116
18
32
(19)
462
3
0
0
(0)
-Loan commitments
6,468
119
0
0
(12)
3,338
91
14
6
(8)
450
3
0
0
(0)
-Financial guarantee
contracts and other
commitments
2,141
25
47
-
(32)
1,236
25
4
26
(11)
12
0
0
0
(0)
Notes to the Consolidated Financial Statements
.
77
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31 December 2024 Consolidated Financial Statements
31 December 2023
Greece
Rest of Europe
Other Countries
Gross carrying/nominal amount
Gross carrying/nominal amount
Gross carrying/nominal amount
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI⁽¹⁾
Impairment
allowance
12-month ECL
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI⁽¹⁾
Impairment
allowance
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI⁽¹⁾
Impairment
allowance
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Retail Lending
8,338
3,374
687
(638)
3,983
341
127
(173)
10
0
0
(0)
-Mortgage
4,821
2,531
361
(331)
2,080
87
53
(51)
7
0
0
(0)
-Consumer
936
131
53
(89)
1,303
166
50
(89)
3
0
0
(0)
-Credit card
546
43
16
(25)
154
30
5
(7)
0
0
0
(0)
-Small business
2,035
670
258
(193)
445
59
18
(26)
0
-
-
(0)
Wholesale Lending
11,601
668
573
(348)
9,038
527
133
(96)
3,348
3
3
(3)
-Commerce and services⁽²⁾
4,443
284
270
(168)
5,411
69
70
(45)
427
3
1
(1)
-Manufacturing
2,614
131
189
(110)
780
42
21
(14)
5
-
-
(0)
-Shipping
14
-
0
(0)
210
-
-
(0)
2,725
-
1
(2)
-Construction
1,329
30
42
(36)
784
80
4
(4)
83
-
0
(0)
-Tourism
1,045
215
67
(22)
357
98
9
(8)
-
-
-
-
-Energy
2,098
0
4
(7)
244
21
3
(4)
-
-
-
-
-Other
58
9
1
(4)
1,253
217
25
(20)
107
-
-
(0)
Public Sector
18
-
0
(0)
0
0
-
-
-
-
-
-
Total
19,957
4,042
1,260
(986)
13,021
868
260
(269)
3,358
3
3
(3)
Credit related Commitments
8,066
199
49
(44)
2,634
109
8
(4)
349
3
0
(0)
-Loan commitments
5,778
163
0
(11)
1,687
94
7
(3)
336
3
0
(0)
-Financial guarantee
contracts and other
commitments
2,287
36
49
(33)
947
15
1
(1)
13
-
0
(0)
(1)
(2)
As at 31 December 2024, the carrying amount of Group's loans measured at FVTPL of € 19 million was included in Wholesale lending portfolio, which was held by operations in Rest of Europe (2023: € 15
million).
Notes to the Consolidated Financial Statements
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31 December 2024 Consolidated Financial Statements
(d) Forbearance practices on lending activities
Modifications of the loans’ contractual terms may arise due to various factors, such as changes in market conditions, customer
retention and other factors as well as due to the potential deterioration in the borrowers’ financial condition. The Group has employed
a range of forbearance solutions in order to enhance the management of customer relationships and the effectiveness of collection
efforts, as well as to improve the recoverability of cash flows and minimize credit losses for both retail and wholesale portfolios.
Forbearance practices’ classification
Forbearance practices as monitored and reported by the Group, based on the European Banking Authority Implementing Technical
Standards (EBA ITS) guidelines, occur only in the cases where the contractual payment terms of a loan have been modified, as the
borrower is considered unable to comply with the existing loan’s terms due to apparent financial difficulties, and the Group grants a
concession by providing more favorable terms and conditions that it would not otherwise consider had the borrower not been in
financial difficulties.
All other types of modifications granted by the Group, where there is no apparent financial difficulty of the borrower and may be
driven by factors of a business nature are not classified as forbearance measures.
Forbearance solutions
Forbearance solutions are granted following an assessment of the borrower’s ability and willingness to repay and can be of a short or
longer term nature. The objective is to assist financially stressed borrowers by rearranging their repayment cash outflows into a
sustainable modification, and at the same time, protect the Group from suffering credit losses. The Group deploys targeted
segmentation strategies with the objective to tailor different short or long term and sustainable management solutions to selected
groups of borrowers for addressing their specific financial needs.
The nature and type of forbearance options may include but is not necessarily limited to, one or more of the following:
●
arrears capitalization;
●
arrears repayment plan;
●
reduced payment above interest only;
●
interest-only payments;
●
reduced payment below interest only;
●
grace period;
●
interest rate reduction;
●
loan term extensions;
●
split balance and gradual step-up of installment payment plans;
●
partial debt forgiveness/write-down;
●
operational restructuring; and
●
debt to equity swaps.
Specifically for unsecured consumer loans (including credit cards), forbearance programs (e.g. term extensions), are applied in
combination with debt consolidation whereby all existing consumer balances are pooled together. Forbearance solutions are applied
in order to ensure a sufficient decrease on installment and a viable solution for the borrower. In selected cases, the debt
consolidations may be combined with mortgage prenotations to convert unsecured lending exposures to secured ones.
In the case of mortgage loans, a decrease of installment may be achieved through forbearance measures such as extended payment
periods, capitalization of arrears, split balance and gradual step-up of installment payment plans.
Wholesale exposures are subject to forbearance when there are indications of financial difficulties of the borrower, evidenced by a
combination of factors including the deterioration of financials, credit rating downgrade, payment delays and other.
Debt for equity swaps
For wholesale portfolios, the Group on occasion participates in debt for equity transactions as part of forbearance measures, as
described in note 2.2.9. In 2024 and 2023, there were no equity positions acquired by the Group and held as of 31 December 2024
and 31 December 2023 respectively.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
i.
Classification of Forborne loans
Loans for which forbearance measures have been applied after origination or acquisition, are classified either as non-impaired (stage
2), or impaired (stage 3) by assessing their delinquency and credit quality status.
Credit impaired forborne loans enter initially a probation period of one year where the borrowers’ payment performance is closely
monitored. If at the end of the abovementioned period, the borrowers have complied with the terms of the program and there are
no past due amounts and concerns regarding the loans’ full repayment, the loans are then reported as non-impaired forborne loans
(stage 2). In addition, non-impaired forborne loans, including those that were previously classified as credit impaired and complied
with the terms of the program, are monitored over a period of two years. If, at the end of that period, the borrowers have made
regular payments of a significant aggregate amount, there are no past due amounts over 30 days and the loans are neither credit
impaired nor any other SICR criteria are met they exit forborne status and are classified as stage 1.
Particularly, the category of credit impaired forborne loans includes those that (a) at the date when forbearance measures were
granted, were more than 90 days past due or assessed as unlikely to pay, (b) at the end of the one year probation period met the
criteria of entering the non -impaired status and during the two years monitoring period new forbearance measures were extended
or became more than 30 days past due, and (c) were initially classified as non- impaired and during the two years monitoring period
met the criteria for entering the credit impaired status.
Furthermore, forborne loans that fail to perform under the new modified terms and are subsequently denounced cease to be
monitored as part of the Group’s forbearance activities and are reported as denounced credit impaired loans (stage 3) consistently
with the Group’s management and monitoring of all denounced loans.
ii.
Impairment assessment
Where forbearance measures are extended, the Group performs an assessment of the borrower’s financial condition and its ability
to repay, under the Group’s impairment policies, as described in notes 2.2.13 and 5.2.1. Accordingly, forborne loans to wholesale
customers, retail individually significant exposures and financial institutions are assessed on an individual basis. Forborne retail
lending portfolios are generally assessed for impairment separately from other retail loan portfolios on a collective basis as they
consist of large homogenous portfolio.
iii.
Loan restructurings
In cases where the contractual cash flows of a forborne loan have been substantially modified, the original forborne loan is
derecognized and a new loan is recognized. The Group records the modified asset as a ‘new’ financial asset at fair value and the
difference with the carrying amount of the existing one is recorded in the income statement as derecognition gain or loss.
In cases where the modification as a result of forbearance measures is not considered substantial, the Group recalculates the gross
carrying amount of the loan and recognizes the difference as a modification gain or loss in the income statement. The Group continues
to monitor the modified forborne loan in order to determine if the financial asset exhibits significant increase in credit risk since initial
recognition during the forbearance period.
As at 31 December 2024, the carrying amount of Group's forborne loans measured at FVTPL was nil (2023: nil).
The following tables present an analysis of Group’s forborne activities for loans measured at amortised cost. In order to align with
the quantitative information provided in section (a) based on IFRS 7 requirements, the relevant tables below are presented on a gross
carrying amount basis, while cumulative impairment allowance is presented separately, in line with the Group’s internal credit risk
monitoring and reporting.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The following table presents a summary of the types of the Group’s forborne activities:
2024
2023
€ million
€ million
Forbearance measures:
Split balance
275
147
Loan term extension
693
787
Arrears capitalisation
77
72
Reduced payment below interest owed
34
36
Interest rate reduction
153
117
Reduced payment above interest owed
98
81
Arrears repayment plan
56
96
Interest only
27
57
Grace period
92
68
Partial debt forgiveness/Write-down
19
1
Operational restructuring
11
13
Other
55
34
Total gross carrying amount
1,588
1,509
Less: cumulative impairment allowance
(321)
(307)
Total carrying amount
1,267
1,202
The following tables present a summary of the credit quality of forborne loans and advances to customers:
31 December 2024
Total loans &
advances at
amortised
cost
Forborne
loans &
advances
% of Forborne
loans &
advances
€ million
€ million
Gross carrying amounts:
12-month ECL-Stage 1
45,460
50
0.1
Lifetime ECL-Stage 2
4,917
788
16.0
Lifetime ECL-Stage 3
1,449
559
38.6
POCI
419
191
45.6
Total Gross Amount
52,245
1,588
3.0
Cumulative ECL Loss allowance:
12-month ECL-Stage 1
(191)
(0)
Lifetime ECL-Stage 2
(354)
(49)
Lifetime ECL-Stage 3 of which:
(738)
(258)
- Individually assessed
(287)
(118)
- Collectively assessed
(451)
(140)
POCI
(27)
(13)
Total carrying amount
50,936
1,267
2.5
Collateral received
34,822
1,211
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
Total loans &
advances at
amortised cost
Forborne loans
& advances
% of Forborne
loans &
advances
€ million
€ million
Gross carrying amounts:
12-month ECL-Stage 1
36,336
-
-
Lifetime ECL-Stage 2
4,914
889
18.1
Lifetime ECL-Stage 3 and POCI
1,523
620
40.7
Total Gross Amount
42,773
1,509
3.5
Cumulative ECL Loss allowance:
12-month ECL-Stage 1
(170)
-
Lifetime ECL-Stage 2
(329)
(49)
Lifetime ECL-Stage 3 and POCI of which:
(759)
(257)
- Individually assessed
(279)
(112)
- Collectively assessed
(480)
(145)
Total carrying amount
41,515
1,202
2.9
Collateral received
28,007
1,184
Note: As at 31 December 2024, performing forborne loans of € 50 million acquired from Hellenic Bank, are presented at stage 1.
The following table presents the movement of forborne loans and advances:
2024
2023
€ million
€ million
Gross carrying amount at 1 January
1,509
2,012
Arising from acquisition (note 23.2)
275
-
Forbearance measures in the year
377
322
Forborne loans derecognised/ reclassified as held
for sale during the year ⁽¹⁾
(29)
(85)
Write-offs of forborne loans
(5)
(47)
Repayment of loans
(310)
(221)
Loans & advances that exited forbearance status ⁽²⁾
(328)
(582)
Other
99
110
Less: cumulative impairment allowance
(321)
(307)
Carrying amount at 31 December
1,267
1,202
(1)
transactions and b) substantial modifications of the loans’ contractual terms and those that have been reclassified as held for sale during the year (notes 20
and 30).
(2)
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The following table presents the Group’s exposure to forborne loans and advances by product line:
2024
2023
€ million
€ million
Retail Lending
813
762
- Mortgage
437
457
- Consumer
183
78
- Credit card
4
6
- Small business
188
220
Wholesale Lending
775
747
-Large corporate
282
237
-SMEs
493
510
Total gross carrying amount
1,588
1,509
Less: cumulative impairment allowance
(321)
(307)
Total carrying amount
1,267
1,202
The following table presents the Group’s exposure to forborne loans and advances by geographical region:
2024
2023
€ million
€ million
Greece
947
1,116
Rest of Europe
636
388
Other countries
6
5
Total gross carrying amount
1,588
1,509
Less: cumulative impairment allowance
(321)
(307)
Total carrying amount
1,267
1,202
The following table provides information on modifications due to forbearance measures on lending exposures which have not
resulted in derecognition. Such financial assets were modified while they had a loss allowance measured at an amount equal to
lifetime ECL.
2024
2023
Modified lending exposures
€ million
€ million
Loans modified during the year with loss allowance measured
at an amount equal to lifetime ECL
Gross carrying amount at 31 December
396
401
Modification gain / (loss)
(5)
8
Loans modified since initial recognition at a time when loss allowance was based on
lifetime ECL
Gross carrying amount at 31 December for which loss allowance has changed to 12-month
ECL measurement
244
410
In the year ended 31 December 2024, the gross carrying amount of loans previously modified for which the loan allowance has
reverted to being measured at an amount equal to lifetime ECL amounted to € 300 million (2023: € 284 million).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
5.2.1.3 Debt Securities
The following tables present an analysis of debt securities by external credit rating agency designation at 31 December 2024 and
2023, based on Moody's ratings or their equivalent:
31 December 2024
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
Total
€ million
€ million
€ million
€ million
Debt securities at amortised cost
Aaa
6,661
-
-
6,661
Aa1 to Aa3
855
-
-
855
A1 to A3
1,833
4
-
1,837
Lower than A3
8,110
15
-
8,125
Unrated
163
-
36
199
Gross Carrying Amount
17,621
20
36
17,677
Impairment Allowance
(15)
(1)
(9)
(26)
Carrying Amount
17,606
19
26
17,651
Debt securities at FVOCI
Aaa
514
-
-
514
Aa1 to Aa3
551
-
-
551
A1 to A3
546
-
-
546
Lower than A3
2,385
28
-
2,414
Unrated
64
-
-
64
Carrying Amount
4,061
28
-
4,090
31 December 2023
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
Total
€ million
€ million
€ million
€ million
Debt securities at amortised cost
Aaa
2,789
-
-
2,789
Aa1 to Aa3
132
-
-
132
A1 to A3
231
4
-
235
Lower than A3
7,602
3
-
7,605
Unrated
180
-
32
212
Gross Carrying Amount
10,935
7
32
10,974
Impairment Allowance
(11)
(0)
(7)
(18)
Carrying Amount
10,924
7
25
10,955
Debt securities at FVOCI
Aaa
316
-
-
316
Aa1 to Aa3
202
-
-
202
A1 to A3
436
8
-
444
Lower than A3
2,411
40
-
2,451
Unrated
63
-
-
63
Carrying Amount
3,427
48
-
3,475
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2024
Debt securities
held for trading
Debt securities
measured at
FVTPL
€ million
€ million
Debt securities at FVTPL
Aaa
19
11
Aa1 to Aa3
-
6
A1 to A3
10
1
Lower than A3
158
0
Carrying Amount
186
18
31 December 2023
Debt securities
held for trading
Debt securities
measured at
FVTPL
€ million
€ million
Debt securities at FVTPL
Aaa
55
-
A1 to A3
14
-
Lower than A3
176
0
Unrated
0
25
Carrying Amount
245
26
The carrying amount of debt securities rated lower than A3, amounting to € 10,684 million (2023: € 10,222 million), is analyzed as
follows:
2024
2023
Sovereign
Banks and
Corporate
Sovereign
Banks and
Corporate
€ million
€ million
€ million
€ million
Debt securities
Greece
5,919
1,399
6,015
1,248
Other Eurozone members
762
775
967
604
Other EU members ⁽¹⁾
990
73
765
67
Other countries
240
527
194
362
Carrying Amount
7,911
2,773
7,941
2,281
(1)
It includes debt securities issued by non-Eurozone members European countries of the Group's presence. As at 31 December 2024, it includes debt securities
issued by Bulgaria with carrying value of € 660 million (2023: securities issued by Bulgaria with carrying value of € 527 million).
Following a series of sovereign rating upgrades in the second half of 2023, the Greek government’s long-term debt securities were
considered investment grade by four out of the five Eurosystem-approved External Credit Assessment Institutions (DBRS: BBB(low),
positive outlook, Fitch: BBB-, stable outlook; Scope: BBB, stable outlook; S&P: BBB-, positive outlook), and one notch below
investment grade by the fifth one, Moody’s (Βa1, positive outlook) as of early 2025.
The carrying amount of unrated debt securities of € 254 million (2023: € 293 million) comprise € 188 million Greek corporate bonds
(2023: € 181 million), € 42 million Cyprus corporate bonds (2023: € 90 million) and € 24 million corporate bonds issued in other
European countries (2023: € 22 million).
As at 31 December 2024, the nominal value of the Group’s Russian debt exposures, which have been classified as credit impaired,
amounted to € 39 million, with an impairment allowance of € 7 million (2023: € 36 million nominal value with an impairment
allowance of € 5 million).
In the first quarter of 2024, the Group proceeded with the disinvestment of short-term sovereign debt securities of face value of €
365 million measured at amortized cost, resulting in a derecognition loss of € 16.6 million. The sale was assessed to be consistent
with the held to collect business model in accordance with the Group’s accounting policy.
Notes to the Consolidated Financial Statements
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31 December 2024 Consolidated Financial Statements
The following tables present the Group's exposure in debt securities, as categorized by stage, counterparty's geographical region and
industry sector:
31 December 2024
Greece
Other European countries
Other countries
12-month ECL-
Stage 1
Lifetime ECL-
Stage 3
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Debt securities at amortised cost
Sovereign
5,039
-
4,004
-
-
1,434
-
10,477
Banks
1,097
-
2,621
-
-
832
-
4,551
Corporate
304
5
1,499
14
31
791
6
2,649
Gross Carrying Amount
6,440
5
8,124
14
31
3,057
6
17,677
Impairment Allowance
(9)
(2)
(5)
(1)
(7)
(1)
(0)
(26)
Net Carrying Amount
6,431
3
8,119
13
24
3,056
6
17,651
Debt securities at FVOCI
Sovereign
803
-
1,566
-
-
449
-
2,817
Banks
16
-
164
-
-
-
-
179
Corporate
177
-
612
28
-
276
-
1,093
Carrying Amount
995
-
2,342
28
-
725
-
4,090
31 December 2023
Greece
Other European countries
Other countries
12-month ECL-
Stage 1
Lifetime ECL-
Stage 3
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Debt securities at amortised cost
Sovereign⁽¹⁾
4,966
-
1,561
-
-
1,164
-
7,691
Banks⁽¹⁾
923
-
369
-
-
-
-
1,292
Corporate
326
4
1,012
3
27
614
4
1,991
Gross Carrying Amount
6,215
4
2,942
3
27
1,778
4
10,974
Impairment Allowance
(7)
(2)
(3)
(0)
(5)
(1)
(0)
(18)
Net Carrying Amount
6,208
3
2,939
3
22
1,777
4
10,955
Debt securities at FVOCI
Sovereign
909
-
887
-
-
426
-
2,221
Banks
14
-
210
-
-
-
-
224
Corporate
172
-
528
40
-
281
8
1,029
Carrying Amount
1,095
-
1,625
40
-
707
8
3,475
31 December 2024
Greece
Other
European
countries
Other countries
Total
€ million
€ million
€ million
€ million
Debt securities at FVTPL
Sovereign
-
16
-
16
Banks
-
2
-
2
Corporate
0
-
-
0
Carrying Amount
0
18
-
18
Debt securities held for trading
Sovereign
80
19
19
118
Corporate
-
62
6
69
Carrying Amount
80
81
25
186
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
Greece
Other
European
countries
Other countries
Total
€ million
€ million
€ million
€ million
Debt securities at FVTPL
Banks
-
25
-
25
Corporate
0
-
-
0
Carrying Amount
0
25
-
26
Debt securities held for trading
Sovereign
142
18
55
216
Corporate
0
27
3
30
Carrying Amount
142
45
58
245
(1)
In the comparative year, € 203 million debt securities at AC previously classified under the industry sector of "Banks" have been transferred to "Sovereign",
in order to align with this year's presentation.
5.2.1.4 Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are offset according to IAS 32 ‘Financial Instruments and the net amount is presented in the
balance sheet when, there is a legally enforceable right to set off the recognized amounts and there is an intention to settle on a net
basis, or to realize the asset and settle the liability simultaneously (the offsetting criteria), as also set out in Group's accounting policy
2.2.4.
Financial instruments that meet the offsetting criteria include the eligible repos and reverse repos under global master repurchase
agreements (GMRAs) and the CCP (Central Counterparty) cleared OTC derivative financial instruments. Regarding the latter, the
Group has assessed the terms of the clearing agreements for the derivatives entered into with Clearing Members and has concluded
that the offsetting criteria are met, in respect of the cash accounts used for variation margin purposes for such derivatives, which are
also used for the settlement of all payments thereunder. Accordingly, derivative assets of € 619 million (2023: € 752 million) and
derivative liabilities of € 420 million (2023: € 492 million) (note 19) were offset against € 240 million (2023: € 317 million) cash
collateral received (note 32) and € 42 million (2023: € 57 million) cash collateral pledged (note 17).
Financial instruments under master netting arrangements and similar agreements that do not meet the criteria for offsetting in the
balance sheet include derivatives (bilateral agreements) as well as repos and reverse repos, for which a) the right of set-off is
enforceable only following an event of default, insolvency or bankruptcy of the Group or the counterparties or following other
predetermined events and/or b) the Group and its counterparties may not intend to settle on a net basis or to realize the assets and
settle the liabilities simultaneously.
The following tables present financial assets and financial liabilities that meet the criteria for offsetting and thus are presented on a
net basis in the balance sheet, as well as amounts that are subject to enforceable master netting arrangements and similar
agreements for which the offsetting criteria mentioned above are not satisfied. In respect of the latter, the Group may receive and
provide collateral in the form of marketable securities and cash that are included in the tables below under columns ‘financial
instruments’ and ‘cash collateral’.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2024
Related amounts not offset in the BS
Gross amounts
of recognised
financial assets
Gross amounts of
recognised
financial
liabilities offset in
the balance sheet
Net amounts of
financial assets
presented in the
balance sheet
Financial
instruments
(incl. non-cash
collateral)
Cash
collateral
received
Net
amount
€ million
€ million
€ million
€ million
€ million
€ million
Financial Assets
Reverse repos with banks
481
(447)
34
(32)
2
Derivative financial instruments
1,447
(619)
828
(550)
(153)
125
Other financial assets
4
(4)
-
-
Deposits to banks pledged as collateral
622
(42)
580
(150)
430
Total
2,554
(1,112)
1,442
(732)
(153)
557
31 December 2024
Related amounts not offset in the BS
Gross amounts
of recognised
financial
liabilities
Gross amounts of
recognised
financial assets
offset in the
balance sheet
Net amounts of
financial
liabilities
presented in the
balance sheet
Financial
instruments
(incl. non-cash
collateral)
Cash
collateral
pledged
Net
amount
€ million
€ million
€ million
€ million
€ million
€ million
Financial Liabilities
Derivative financial instruments
1,510
(420)
1,090
(783)
(150)
157
Repurchase agreements with banks
2,399
(447)
1,952
(1,952)
-
-
Other financial liabilities
4
(4)
-
-
Deposits from banks received as collateral
358
(240)
118
(118)
-
Total
4,271
(1,111)
3,160
(2,853)
(150)
157
31 December 2023
Related amounts not offset in the BS
Gross amounts
of recognised
financial assets
Gross amounts of
recognised
financial liabilities
offset in the
balance sheet
Net amounts of
financial assets
presented in the
balance sheet
Financial
instruments (incl.
non-cash
collateral)
Cash
collateral
received
Net amount
€ million
€ million
€ million
€ million
€ million
€ million
Financial Assets
Reverse repos with banks
1,249
(1,210)
39
(39)
-
-
Derivative financial instruments
1,612
(752)
860
(672)
(56)
132
Other financial assets
4
(4)
-
-
-
-
Deposits to banks pledged as collateral
1,093
(57)
1,036
(340)
-
696
Total
3,958
(2,023)
1,935
(1,051)
(56)
828
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
Related amounts not offset in the BS
Gross amounts
of recognised
financial
liabilities
Gross amounts of
recognised
financial assets
offset in the
balance sheet
Net amounts of
financial
liabilities
presented in the
balance sheet
Financial
instruments (incl.
non-cash
collateral)
Cash
collateral
pledged
Net amount
€ million
€ million
€ million
€ million
€ million
€ million
Financial Liabilities
Derivative financial instruments
1,906
(492)
1,414
(930)
(340)
144
Repurchase agreements with banks
3,638
(1,210)
2,428
(2,428)
-
-
Other financial liabilities
4
(4)
-
-
-
-
Deposits from banks received as collateral
404
(317)
87
(56)
-
31
Total
5,952
(2,023)
3,929
(3,414)
(340)
175
Derivative financial assets and liabilities not under master netting arrangements and similar agreements of carrying value of € 10
million and € 30 million, respectively, (2023: € 21 million and € 36 million, respectively) are not presented in the above tables.
Financial assets and financial liabilities are disclosed in the above tables at their recognized amounts, either at fair value (derivative
assets and liabilities) or amortized cost (all other financial instruments), depending on the type of financial instrument.
5.2.2 Market risk
The Group takes on exposure to market risk, which is the risk of potential financial loss due to an adverse change in market variables.
Changes in interest rates, foreign exchange rates, credit spreads, equity prices and other relevant factors, such as the implied
volatilities, can affect the Group’s income or the fair value of its financial instruments. The market risks, the Group is exposed to, are
monitored, controlled and estimated by Group Market and Counterparty Risk Unit (GMCRU).
GMCRU is responsible for the measurement, monitoring, control and reporting of all market risks, including the interest rate risk in
the Banking Book (IRRBB) and the credit spread risk in the Banking Book (CSRBB) of the Group. In particular, the Bank in response to
the regulatory developments and requirements (EBA/GL/2022/14), has further enhanced its infrastructure, governance and limit
structure accordingly, so as to measure and monitor its CSRBB, via a dedicated stress testing framework. The Unit reports to the GCRO
and its main responsibilities include:
●
Monitoring of all key market, IRRBB and CSRBB risk indicators;
●
Implementation of Stress Testing methodologies for market risk, IRRBB and CSRBB (historical and hypothetical);
●
Monitoring and reporting of market and IRRBB and CSRBB risk limits utilization;
●
Development, maintenance and expansion of risk management infrastructure.
The market risks the Group is exposed to, are the following:
(a) Interest rate risk
The Group takes on exposure to the effects of fluctuations in the prevailing levels of market interest rates on its cash flows and the
fair value of its financial positions. Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. Fair value interest rate risk is the risk that the value of a financial instrument
will fluctuate because of changes in market interest rates. Fair value interest rate risk is further split into ‘General’ and ‘Specific’. The
former refers to changes in the fair valuation of positions due to the movements of benchmark interest rates, while the latter refers
to changes in the fair valuation of positions due to the movements of specific issuer yields and credit spreads.
(b) Currency risk
The Group takes on exposure to the effects of fluctuations in the prevailing foreign currency exchange rates on its financial position
and cash flows.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
(c) Equity risk
Equity price risk is the risk of the decrease of fair values as a result of changes in the levels of equity indices and the value of individual
stocks. The equity risk that the Group undertakes arises mainly from the investment portfolio.
(d) Implied volatilities
The Group carries limited implied volatility (vega) risk, mainly as a result of open positions on options.
The BoD and Board Risk Committee set limits on the level of exposure to market risks, which are monitored on a daily basis.
Market risk in Greece and International Subsidiaries is managed and monitored mainly using Value at Risk (VaR) methodology.
Sensitivity and stress test analysis is additionally performed.
(i) VaR summary for 2024 and 2023
VaR is a methodology used in measuring financial risk by estimating the potential negative change in the market value of a portfolio
at a given confidence level and over a specified time horizon. The VaR that the Group measures is an estimate based upon a 99%
confidence level and a holding period of 1 day and the methodology used for the calculation is Monte Carlo simulation (full re-pricing
of the positions is performed).
The VaR models are designed to measure market risk in a normal market environment. It is assumed that any changes occurring in
the risk factors affecting the normal market environment will follow a normal distribution.
Although VaR is an important tool for measuring market risk, the assumptions on which the model is based do give rise to certain
limitations. Given this, actual outcomes are monitored regularly, via back testing process, to test the validity of the assumptions and
the parameters used in the VaR calculation.
The perimeter of the VaR analysis includes Eurobank Ergasias Services and Holdings S.A., Eurobank S.A. and its banking subsidiaries,
taking into account the FVTPL, including trading and FVOCI portfolios. Consequently, the potential impact as it is depicted in the VaR
figures would directly affect Group’s Capital (income statement or equity).
Since VaR constitutes an integral part of the Group's market risk control regime, VaR limits have been established for all the above
operations (trading and investment portfolios measured at fair value) and actual exposure is reviewed daily by management.
However, the use of this approach does not prevent losses outside of these limits in the event of extraordinary market movements.
VaR by risk type - Greece and International Subsidiaries
(1)
.
2024
(Average)
2024
2023
(Average)
2023
€ million
€ million
€ million
€ million
Interest Rate Risk
6
6
7
9
Foreign Exchange Risk
0
1
0
1
Equities Risk
1
1
2
1
Total VaR
6
6
8
9
(1)
The aggregate VaR of the interest rate, foreign exchange and equities VaR benefits from diversification effects. The largest portion of
the Group’s Interest Rate VaR figures is attributable to the risk associated with interest rate and credit spread sensitive debt securities
and derivatives. The average VaR of 2024 remains relatively stable at low levels, as compared to the average VaR of 2023, reflecting
the reduced volatility observed in the markets.
(ii) Interest rate gap and sensitivity
The following table provides the interest rate repricing gap of the Group, which analyses the structure of interest rate mismatches
within the balance sheet. The Group’s financial assets/liabilities are included at their notional/outstanding amounts and categorized
based on either (i) the next contractual repricing date if floating rate or (ii) the maturity/call date (whichever is first) if fixed rate. The
below analysis provides an approximation of the interest rate risk exposure since transactions with different duration are aggregated
together per time bucket.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2024⁽²⁾
less than 1
month
1-3 months
3-12 months
1-5
years
More than 5
years
€ million
€ million
€ million
€ million
€ million
Balances with central banks
15,512
-
-
-
-
Due from credit institutions
2,185
355
7
60
-
Debt securities⁽¹⁾
1,518
1,086
1,532
8,121
8,988
Loans and advances to customers
18,023
11,724
12,563
6,225
3,510
37,238
13,165
14,102
14,407
12,499
Due to central banks
-
-
-
-
-
Due to credit institutions
(2,936)
(596)
(0)
(10)
-
Due to customers
(53,944)
(8,155)
(11,024)
(3,157)
(2,071)
Debt securities in issue
(660)
(0)
(335)
(3,771)
(2,165)
(57,540)
(8,752)
(11,360)
(6,938)
(4,237)
Derivative financial instruments
(6,382)
(776)
(171)
11,573
(4,375)
Interest rate gap
(26,684)
3,638
2,571
19,042
3,887
31 December 2023⁽²⁾
less than 1
month
1-3 months
3-12 months
1-5
years
More than 5
years
€ million
€ million
€ million
€ million
€ million
Balances with central banks
10,438
-
-
-
-
Due from credit institutions
2,208
1,125
7
-
60
Debt securities⁽¹⁾
758
481
928
5,333
6,446
Loans and advances to customers
16,453
8,026
8,084
5,133
4,675
29,857
9,632
9,018
10,467
11,182
Due to central banks
(3,665)
-
-
-
-
Due to credit institutions
(1,148)
(3,260)
-
(251)
-
Due to customers
(44,418)
(4,859)
(6,655)
(1,406)
-
Debt securities in issue
-
-
(96)
(3,872)
(711)
(49,231)
(8,118)
(6,751)
(5,529)
(711)
Derivative financial instruments
1,891
2,397
60
1,146
(5,584)
Interest rate gap
(17,483)
3,910
2,327
6,084
4,886
(1)
Including short positions in debt securities (note 35).
(2)
The Group performs a sensitivity analysis to assess the impact on net interest income (NII) and on other comprehensive income (OCI),
to a hypothetical change in the market interest rates.
.
The impact on NII is calculated under the scenario of an instantaneous parallel shift of all interest rates by +/- 100bps, for a 1-year
period, assuming a static balance sheet approach. As at 31 December 2024 the impact on NII, under the scenario of a parallel shift in
the yield curves, stands at € 122 million (+100bps) and € -167 million (-100bps) (31 December 2023: € 194 million and € -171 million,
respectively).
The impact on OCI is calculated as the fair value movement of all financial assets measured at FVOCI, net of hedging and of any
hedging instruments designated in qualifying cash flow hedge relationships. As at 31 December 2024 the impact on OCI, under the
scenario of a parallel shift in the yield curves, stands at € -71 million (+100bps) and € 75 million (-100bps) (31 December 2023: € -68
million and € 72 million, respectively).
.
Notes to the Consolidated Financial Statements
.
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Page
31 December 2024 Consolidated Financial Statements
(iii) Foreign exchange risk
The following tables present the Group’s exposure to foreign currency exchange risk as at 31 December 2024 and 2023:
31 December 2024
USD
CHF
GBP
RON
BGN
OTHER
EUR
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
ASSETS
Cash and balances with
central banks
Due from credit
institutions
Securities held for trading
-
-
-
Derivative financial
instruments
-
Loans and advances to
customers
Investment securities
-
-
Other assets⁽¹⁾
Assets of disposal groups
classified as held for sale
(note 30)
Total Assets
LIABILITIES
Due to central banks and
credit institutions
Derivative financial
instruments
Due to customers
Debt securities in issue
-
-
-
-
Other liabilities⁽²⁾
Total Liabilities
Net on balance sheet
position
Derivative forward
foreign exchange position
Total Foreign Exchange
Position
Notes to the Consolidated Financial Statements
.
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Page
31 December 2024 Consolidated Financial Statements
31 December 2023
USD
CHF
RON
BGN
OTHER
EUR
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
ASSETS
Cash and balances with
central banks
Due from credit
institutions
Securities held for trading
-
-
Derivative financial
instruments
-
Loans and advances to
customers
Investment securities
-
-
Other
assets ⁽¹⁾
Assets of disposal groups
classified as held for sale
(note 30)
-
-
-
Total Assets
LIABILITIES
Due to central banks and
credit institutions
Derivative financial
instruments
Due to customers
Debt securities in issue
-
-
-
Other
liabilities⁽²⁾
Total Liabilities
Net on balance sheet
position
Derivative forward foreign
exchange position
Total Foreign Exchange
Position
(1)
Other assets include Investments in associates and joint ventures, Property and equipment, Investment property, Intangible assets, Deferred tax assets and
Other assets.
(2)
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
5.2.3 Liquidity risk
The Group is exposed to daily calls on its available cash resources due to deposits withdrawals, maturity of medium or long-term
notes, maturity of secured or unsecured funding (interbank repos and money market takings), loan drawdowns and forfeiture of
guarantees. Furthermore, margin calls on secured funding transactions (with ECB and the market), on risk mitigation contracts (CSAs,
GMRAs) and on centrally cleared transactions (CCPs) result in liquidity exposure. The Group maintains cash resources to meet all of
these needs. The Board Risk Committee sets liquidity limits to ensure that sufficient funds are available to meet such contingencies.
Past experience shows that liquidity requirements to support calls under guarantees and standby letters of credit are considerably
less than the amount of the commitment. This is also the case with credit commitments where the outstanding contractual amount
to extend credit does not necessarily represent future cash requirements, as many of these commitments will expire or terminate
without being funded.
The matching and controlled mismatching of the maturities and interest rates of assets and liabilities is fundamental to the
management of the Group. It is unusual for banks to be completely matched, as transacted business is often of uncertain term and
of different types. An unmatched position potentially enhances profitability, but also increases the risk of losses.
The maturities of assets and liabilities and the ability to replace, at an acceptable cost, interest bearing liabilities as they mature, are
important factors in assessing the liquidity of the Group.
Liquidity Risk Management Framework
The Group’s Liquidity Risk Policy defines the following supervisory and control structure:
●
Board Risk Committee's role is to approve all strategic liquidity risk management decisions and to monitor the quantitative
and qualitative aspects of liquidity risk;
●
Group Assets and Liabilities Committee has the mandate to form and implement the liquidity policies and guidelines in
conformity with Group's risk appetite, and to review at least monthly the overall liquidity position of the Group;
●
Group Treasury is responsible for the implementation of the Group's liquidity strategy, taking into account the latest funding
plan and for the daily management of the Group’s liquidity;
●
Group Market and Counterparty Risk Sector is responsible for measuring, controlling, monitoring and reporting the liquidity
risk of the Group.
The main items related to liquidity risk that are monitored on a periodic basis are summarized as follows:
●
The analysis of liquidity buffer held on Group level per asset type and per subsidiary;
●
The Liquidity Coverage Ratio (LCR) both in solo and group level;
●
The Net Stable Funding Ratio (NSFR) both in solo and group level;
●
Liquidity stress test scenarios. These scenarios evaluate the impact of a number of stress events on the Group's liquidity
position;
●
Market sensitivities affecting liquidity;
●
The Additional Liquidity Monitoring Metrics (ALMM) both in solo and group level;
●
The Asset Encumbrance (AE) both in solo and group level;
●
Monitoring and implementation of the funding plan.
Notes to the Consolidated Financial Statements
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31 December 2024 Consolidated Financial Statements
Maturity analysis of assets and assets held for managing liquidity risk
The following tables present maturity analysis of Group assets as at 31 December 2024 and 2023, based on their carrying values. The
Group has established credit risk mitigation contracts with its interbank counterparties (ISDA/CSA). Under these contracts the Group
has posted or received collateral, which covers the corresponding net liabilities or net assets from derivative transactions. The
collateral posted is not presented in the below tables. For derivative assets not covered by ISDA/CSA agreements the positive
valuation is presented at fair value in the ‘over 1 year’ time bucket.
31 December 2024
Less than 1
month
1 - 3
months
3 months
to 1 year
Over 1
year
Total
€ million
€ million
€ million
€ million
€ million
- Cash and balances with central banks
16,131
-
-
-
16,131
- Due from credit institutions
1,275
121
50
250
1,696
- Loans and advances to customers
3,304
1,557
3,894
42,198
50,953
- Debt Securities
246
332
1,275
20,092
21,945
- Equity securities
-
-
-
524
524
- Derivative financial instruments
-
-
-
6
6
- Other assets⁽¹⁾
60
16
8
8,388
8,472
- Assets of disposal groups classified as held for sale (note 30)
-
12
79
-
91
Total
21,016
2,038
5,306
71,458
99,818
31 December 2023
Less than 1
month
1 - 3
months
3 months
to 1 year
Over 1
year
Total
€ million
€ million
€ million
€ million
€ million
- Cash and balances with central banks
10,943
-
-
-
10,943
- Due from credit institutions
841
128
-
330
1,299
- Loans and advances to customers
2,841
1,348
3,817
33,539
41,545
- Debt Securities
72
93
617
13,919
14,701
- Equity securities
-
-
-
388
388
- Derivative financial instruments
-
-
-
13
13
- Other assets⁽¹⁾
62
16
8
8,677
8,763
- Assets of disposal groups classified as held for sale
-
-
206
-
206
Total
14,759
1,585
4,648
56,866
77,858
(1)
Other assets.
The Group holds a diversified portfolio of cash and highly liquid assets to support payment obligations and contingent deposit
withdrawals in a stressed market environment. The Group's assets held for managing liquidity risk comprise:
(a) Cash and balances with central banks;
(b) Eligible bonds and other financial assets for collateral purposes; and
(c) Current accounts with banks and interbank placings maturing within one month.
The unutilized assets, containing highly liquid and central banks eligible assets, provide a contingent liquidity reserve of € 40.1 billion
as of 31 December 2024 (2023: € 22.3 billion). This increase is attributed mainly to: i) inflows due to customer deposits (annual
increase by € 6 billion), ii) EMTN and Tier II issuances equal to € 2 billion), and iii) the impact from the consolidation of Hellenic Bank
(€ 11 billion) (note 23.2). In addition, the Group holds other types of liquid assets, as defined by the regulator, amounting to € 6.6
billion (cash value) (2023: € 7.0 billion). It should be noted that a part of the ECB available collateral of € 7 billion (cash value) (2023:
€ 1.8 billion) is held by Group’s subsidiaries for which regulatory restrictions are applied and currently limit the level of its
transferability between group entities.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Maturity analysis of liabilities
The amounts disclosed in the tables below are the contractual undiscounted cash flows for the years 2024 and 2023. Liabilities without
contractual maturities (sight and saving deposits) are presented in the ‘less than 1 month’ time bucket. The Group has established
credit risk mitigation contracts with its interbank counterparties (ISDA/CSA). Due to these contracts the Group has already posted
collateral which covers the valuation of its net liabilities from interbank derivatives. For derivative liabilities not covered by ISDA/CSA
agreements the negative valuation is presented at fair value in the ‘less than 1 month’ time bucket.
It should be noted that this table represents the worst case scenario since it is based on the assumption that all liabilities will be paid
at maturity and they will not be rolled over (e.g. all term deposits are withdrawn at their contractual maturity. Even in an adverse
scenario of a systemic financial crisis the likelihood of such an event is remote.
31 December 2024
Gross nominal
Less than
1 - 3
3 months
Over
(inflow)/
1 month
months
1 year
outflow
€ million
€ million
€ million
€ million
€ million
Non-derivative liabilities:
- Due to central banks and credit institutions
992
1,032
251
1,109
3,384
- Due to customers
59,640
7,912
10,166
984
78,702
- Debt securities in issue
90
36
478
8,096
8,700
- Lease liabilities
4
7
29
181
221
- Insurance contract liabilities
-
5
15
88
108
- Other liabilities
482
1,471
433
-
2,386
61,208
10,463
11,372
10,458
93,501
Derivative financial instruments
6
-
-
-
6
Off-balance sheet items
Less than
Over
1 year
1 year
€ million
€ million
Credit related commitments
6,241
7,767
Contractual commitments⁽¹⁾
51
Total
6,292
7,767
31 December 2023
Gross nominal
Less than
1 - 3
3 months
Over
(inflow)/
1 month
months
1 year
outflow
€ million
€ million
€ million
€ million
€ million
Non-derivative liabilities:
- Due to central banks and credit institutions
713
2,889
3,079
396
7,077
- Due to customers
44,691
5,775
6,682
424
57,572
- Debt securities in issue
75
593
245
4,986
5,899
- Lease liabilities
4
16
55
143
218
- Other liabilities
501
460
234
-
1,195
45,984
9,733
10,295
5,949
71,961
Derivative financial instruments
11
-
-
-
11
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Off-balance sheet items
Less than
Over
1 year
1 year
€ million
€ million
Credit related commitments
2,429
8,989
Contractual commitments⁽¹⁾
41
-
Total
2,470
8,989
(1)
5.2.4 Sustainability risks
Sustainability risks are neither new nor stand-alone risks, rather they are transverse risks, manifesting through existing risk types. As
sustainability risks interact with other risks and result in direct distributional impacts and indirect macroeconomic impacts, the Group
understands that careful consideration of the cross-cutting nature thereof is necessary in order to ensure the optimal implementation
of adaptation activities.
Specifically, sustainability risks are defined as potential losses arising from any negative financial impact for the Group, stemming
from current or prospective impacts of any climate-related & environmental, social or governance event(s) on Group’s counterparties
or invested assets.
Definitions of sustainability risks include the following:
•
Climate-Related and Environmental risks: Climate-related and environmental risks are defined as the risks deriving from
potential loss or negative impact to the Group, including loss/ damage to physical assets, disruption of business or system
failures, transition expenditures and reputational effects from the adverse consequences of climate change and
environmental degradation.
•
Social risk: Social risk refers to potential losses arising from any negative financial impact on the Group stemming from the
current or prospective impacts of social factors (such as human rights violation, income inequality, customer safety &
protection and consumers’ changing preferences) on the Group’s counterparties or invested assets.
•
Governance risk: Governance risk refers to potential losses arising from any negative financial impact on the Group
stemming from the current or prospective impacts of governance factors (such as anti-financial crime, non-compliance with
policies or regulations and governance practices) on the Group’s counterparties or invested assets.
The Group is adopting a strategic approach towards sustainability, climate change risk identification and risk management, signifying
the great importance that is given in the risks and opportunities arising from the transitioning to a low-carbon and more circular
economy. In this context, the Bank has approved and implements its Financed Impact Strategy, which focuses on:
•
Clients’ engagement and awareness to adapt their business so as to address climate change challenges and opportunities
•
Actions for supporting clients in their transition efforts towards a more sustainable economic environment
•
Enablers and tools, such as frameworks and products, to underpin sustainable financing
•
Assessment and management of sustainability related risks within its loan and investment portfolios, including assessing
exposure to transition and physical risks linked to climate change.
To facilitate the classification of sustainable/green financing opportunities in a structural manner, the Group has developed its
Sustainable Finance Framework (SFF). Through its SFF, the Group is able to classify sustainable lending solutions offered to its clients,
specifying the applied classification approach and the activities defined as eligible to access sustainable financing (eligible green and
social assets). Moreover, the Group maintains a Sustainable Investment Framework (SIF), which outlines the Group’s various
sustainable investment approaches/ strategies based on criteria observed as per international market practices, the process for the
selection of eligible investments, as well as the monitoring frequency applicable to the sustainable portfolio.
Furthermore, the Group has updated its Sustainability Governance structure by introducing and defining specific roles and
responsibilities in order to support the roll -out of the Sustainability Strategy and the integration of sustainability risks, through the
involvement of various key stakeholders (i.e. Business & Risk Units, Committees, etc.). The Group applies a model of defined roles
and responsibilities regarding the management of sustainability risks across the 3 Lines of Defense.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
In this context and taking into account the significant impact of sustainability risks both on financial institutions and on the global
economy, the Group developed and approved its Sustainability Risk Management Policy which aims at fostering a holistic
understanding of the effects of sustainability risks on its business model, as well as support decision-making regarding these matters
and provide a robust governance under its Risk Management Framework. The purpose of the Policy is to provide an overview and a
common understanding of Group’s main governance arrangements, as well as roles & responsibilities undertaken by the Group
Sustainability Risk (GSR), in the context of the Group’s overall Sustainability risks management activities.
GSR has the overall responsibility for overseeing, monitoring, and managing sustainability risks. More specifically, GSR:
•
prepares and maintains the Bank’s Sustainability Risk Management Policy, as well as relevant policies, processes and
methodologies (e.g. ESG Risk Assessment, Climate Risk Scorecard, exclusion lists) in collaboration with the Group
Sustainability Unit, Business & Risk Units.
•
leads the development and implementation of the Sustainability risk related framework, as well as relevant policies and
processes (e.g., Sustainability Risk Management Framework, Climate Risk Stress Test Framework documents) across the
Group, in coordination with other involved units, as well as the development and update of the Sustainable Finance
Frameworks.
•
monitors and reports to the Group Senior Sustainability Officer (GSSO) the progress of the implementation of the developed
Climate Risk action plan and reports to the Board for Sustainability Risk matters.
•
supports, reviews and challenges the involved stakeholders, across the Group, regarding the setting of the Net Zero targets
and of the Financed Impact Strategy implementation, through the identification of material Sustainability risk related areas.
•
leads the 2nd Line of Defense independent sustainable lending re -assessment process (i.e. provides opinion on sustainable
financings regarding the CIB Portfolio, as part of a bespoke process and the characterization of products of the Retail
Portfolio as sustainable) against the Sustainable Finance criteria (as per pre-determined thresholds).
•
develops and maintains the Climate Risk Stress Testing (CRST) Framework, as well as scenario analysis and stress testing
methodologies, and coordinates the performance of sustainability risk scenario analysis and relevant stress test exercises at
Group level.
Further information on sustainability risks is provided in the Group’s Sustainability Statement as at 31 December 2024.
5.3 Fair value of financial assets and liabilities
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants in the principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit
price). When a quoted price for an identical asset or liability is not observable, fair value is measured using another valuation
technique that is appropriate in the circumstances and maximizes the use of relevant observable inputs and minimizes the use of
unobservable inputs. Observable inputs are developed using market data, such as publicly available information about actual events
or transactions, and reflect assumptions that market participants would use when pricing financial instruments, such as quoted prices
in active markets for similar instruments, interest rates and yield curves, implied volatilities and credit spreads.
The Group’s financial instruments measured at fair value or at amortized cost for which fair value is disclosed are categorized into the
three levels of the fair value hierarchy based on whether the inputs to the fair values are observable or unobservable, as follows:
(a) Level 1-Financial instruments measured based on quoted prices (unadjusted) in active markets for identical financial instruments
that the Group can access at the measurement date. A market is considered active when quoted prices are readily and regularly
available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and represent actually and
regularly occurring transactions. Level 1 financial instruments include actively quoted debt instruments held or issued by the
Group, equity and derivative instruments traded on exchanges, as well as mutual funds that have regularly and frequently
published quotes.
(b) Level 2-Financial instruments measured using valuation techniques with inputs, other than level 1 quoted prices, that are
observable either directly or indirectly, such as: i) quoted prices for similar financial instruments in active markets, ii) quoted prices
for identical or similar financial instruments in markets that are not active, iii) inputs other than quoted prices that are directly or
indirectly observable, mainly interest rates and yield curves observable at commonly quoted intervals, forward exchange rates,
equity prices, credit spreads and implied volatilities obtained from internationally recognized market data providers and iv) other
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
unobservable inputs which are insignificant to the entire fair value measurement. Level 2 financial instruments include over the
counter (OTC) derivatives, less liquid debt instruments held or issued by the Group and equity instruments.
(c) Level 3-Financial instruments measured using valuation techniques with significant unobservable inputs. When developing
unobservable inputs, best information available is used, including own data, while at the same time market participants'
assumptions are reflected (e.g. assumptions about risk). Level 3 financial instruments include unquoted equities or equities traded
in markets that are not considered active, certain OTC derivatives, loans and advances to customers including securitization notes
of loan portfolios originated by the Group and recognized in financial assets and certain debt securities held or issued by the
Group.
Financial instruments carried at fair value
The fair value hierarchy categorization of the Group's financial assets and liabilities measured at fair value is presented in the following
tables:
31 December 2024
Level 1
Level 2
Level 3
Total
€ million
€ million
€ million
€ million
Securities held for trading
285
0
-
285
Investment securities at FVTPL
259
33
92
384
Derivative financial instruments⁽¹⁾
0
838
-
838
Investment securities at FVOCI
3,881
191
77
4,148
Loans and advances to customers mandatorily
at FVTPL
-
-
19
19
Financial assets measured at fair value
4,425
1,062
188
5,675
Derivative financial instruments⁽¹⁾
1
1,119
-
1,120
Trading liabilities
43
-
-
43
Financial liabilities measured at fair value
44
1,119
-
1,163
31 December 2023
Level 1
Level 2
Level 3
Total
€ million
€ million
€ million
€ million
Securities held for trading
379
0
-
379
Investment securities at FVTPL
137
21
105
263
Derivative financial instruments⁽¹⁾
0
881
0
881
Investment securities at FVOCI
3,209
271
12
3,492
Loans and advances to customers mandatorily
at FVTPL
-
-
15
15
Financial assets measured at fair value
3,725
1,173
132
5,030
Derivative financial instruments⁽¹⁾
2
1,448
-
1,450
Trading liabilities
121
-
-
121
Financial liabilities measured at fair value
123
1,448
-
1,571
(1)
Amounts
are presented after offsetting € 619 million and € 420 million level 2 derivative financial assets and liabilities, respectively, against cash collateral
received/pledged (2023: after offsetting € 752 million and € 492 million derivative financial assets and liabilities, respectively) (note 5.2.1.4).
The Group recognizes transfers into and out of the fair value hierarchy levels at the beginning of the quarter in which a financial
instrument's transfer was effected. During the year ended 31 December 2024, the Group transferred debt securities measured at
FVOCI of € 94 million from level 2 to level 1 and € 26 million from level 2 to level 3, following the enhancement of the methodology
applied for their classification (see below in section Group’s valuation processes and techniques).
Reconciliation of Level 3 fair value measurements
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
2024
2023
€ million
€ million
Balance at 1 January
132
155
Arising from acquisition ⁽²⁾
20
-
Transfers into Level 3
27
1
Transfers out of Level 3
(0)
(7)
Additions, net of disposals and redemptions ⁽¹⁾
12
(20)
Total gain/(loss) for the year included in profit or loss
1
3
Total gain/(loss) for the year included in other comprehensive income
1
0
Foreign exchange differences and other
(4)
0
Balance at 31 December
188
132
(1)
(2)
Group's valuation processes and techniques
The Group’s processes and procedures governing the fair valuations are established by the Group Market Counterparty Risk Sector
in line with the Group’s accounting policies. The Group uses widely recognized valuation models for determining the fair value of
common financial instruments that are not quoted in an active market, such as interest and cross currency swaps, that use only
observable market data and require little management estimation and judgment. Specifically, observable prices or model inputs are
usually available in the market for listed debt and equity securities, exchange-traded and simple over-the-counter derivatives.
Availability of observable market prices and model inputs reduces the need for management judgment and estimation and also
reduces the uncertainty associated with determining fair values. For the year ended 31 December 2024, the Group has enhanced the
methodology applied for the classification of debt securities into the three levels of the fair value hierarchy, by assigning a rating scale
for each debt security, based on the quality and quantity of the market data inputs used to calculate its fair value at a specific date.
The debt securities are then allocated into levels based on specific rating thresholds representing highly liquid to thinly traded debt
securities.
Where valuation techniques are used to determine the fair values of financial instruments that are not quoted in an active market,
they are validated against historical data and, where possible, against current or recent observed transactions in different
instruments, and periodically reviewed by qualified personnel independent of the personnel that created them. All models are
certified before they are used and models are calibrated to ensure that outputs reflect actual data and comparative market prices.
Fair values’ estimates obtained from models are adjusted for any other factors, such as liquidity risk or model uncertainties, to the
extent that market participants would take them into account in pricing the instrument. Fair values also reflect the credit risk of the
instrument and include adjustments to take account of the credit risk of the Group and the counterparty, where appropriate.
Valuation controls applied by the Group may include verification of observable pricing, re-performance of model valuations, review
and approval process for new models and/or changes to models, calibration and back-testing against observable market transactions,
where available, analysis of significant valuation movements, etc. Where third parties' valuations are used for fair value measurement,
these are reviewed in order to ensure compliance with the requirements of IFRS 13.
The fair values of OTC derivative financial instruments are estimated by discounting expected cash flows using market interest rates
at the measurement date. Counterparty credit risk adjustments and own credit risk adjustments are applied to OTC derivatives, where
appropriate. Bilateral credit risk adjustments consider the expected cash flows between the Group and its counterparties under the
relevant terms of the derivative instruments and the effect of the credit risk on the valuation of these cash flows. As appropriate in
circumstances, the Group considers also the effect of any credit risk mitigating arrangements, including collateral agreements and
master netting agreements on the calculation of credit risk valuation adjustments (CVAs). CVA calculation uses probabilities of default
(PDs) based on observable market data such as credit default swaps (CDS) spreads, where appropriate, or based on internal rating
models. The Group applies similar methodology for the calculation of debit-value-adjustments (DVAs), when applicable. Where
valuation techniques are based on internal rating models and the relevant CVA is significant to the entire fair value measurement,
such derivative instruments are categorized as Level 3 in the fair value hierarchy. A reasonably possible change in the main
unobservable input (i.e. the recovery rate), used in their valuation, would not have a significant effect on their fair value measurement.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The Group determines fair values for debt securities held using quoted market prices in active markets for securities with similar
credit risk, maturity and yield, quoted market prices in non active markets for identical or similar financial instruments, or using
discounted cash flows method.
Unquoted equity instruments at FVTPL, included in Level 3, are estimated using mainly (i) third parties' valuation reports based on
investees' net assets, where management does not perform any further significant adjustments, and (ii) net assets' valuations,
adjusted where considered necessary.
Loans and advances to customers including securitization notes of loan portfolios originated by the Group with contractual cash flows
that do not represent solely payments of principal and interest (SPPI failures), are measured mandatorily at fair value through profit
or loss. Quoted market prices are not available as there are no active markets where these instruments are traded. Their fair values
are estimated on an individual loan basis by discounting the future expected cash flows over the time period they are expected to be
recovered, using an appropriate discount rate or by reference to other comparable assets of the same type that have been transacted
during a recent time period. Expected cash flows, which incorporate credit risk, represent significant unobservable input in the
valuation and as such, the entire fair value measurement is categorized as Level 3 in the fair value hierarchy.
Financial instruments not measured at fair value
The fair value hierarchy categorization of the Group’s financial assets and liabilities not measured at fair value on the balance sheet,
is presented in the following tables:
31 December 2024
Level 1
Level 2
Level 3
Fair value
Carrying
amount⁽¹⁾
€ million
€ million
€ million
€ million
€ million
Loans and advances to customers
-
-
51,923
51,923
50,934
Investment securities at amortised cost
12,716
3,237
1,313
17,267
17,651
Financial assets not measured at fair value
12,716
3,237
53,236
69,190
68,585
Debt securities in issue
5,371
351
1,588
7,310
7,056
Financial liabilities not measured at fair value
5,371
351
1,588
7,310
7,056
31 December 2023
Level 1
Level 2
Level 3
Fair value
Carrying
amount
€ million
€ million
€ million
€ million
€ million
Loans and advances to customers
-
-
41,888
41,888
41,530
Investment securities at amortised cost
7,191
1,948
1,323
10,462
10,955
Financial assets not measured at fair value
7,191
1,948
43,211
52,350
52,485
Debt securities in issue
2,540
1,626
554
4,720
4,756
Financial liabilities not measured at fair value
2,540
1,626
554
4,720
4,756
(1)
assets and liabilities.
The assumptions and methodologies underlying the calculation of fair values of financial instruments not measured at fair value, are
in line with those used to calculate the fair values for financial instruments measured at fair value. Particularly:
(a)
Loans and advances to customers including securitization notes of loan portfolios originated by the Group: quoted market prices
are not available as there are no active markets where these instruments are traded. The fair values are estimated by discounting
future expected cash flows over the time period they are expected to be recovered, using appropriate risk-adjusted rates (i.e.,
discounted expected cash flows technique). More specifically, loans to customers are grouped into homogenous assets with
similar characteristics, as monitored by Management, such as lending business unit, products’ characteristics, and
performing/nonperforming status, in order to improve the accuracy of the estimated valuation outputs. In estimating the future
cash flows of lending portfolios, the Group makes assumptions on expected prepayments, products’ spreads over risk-free interest
rates, where applicable. The discount rates applied for the discounting of loans’ expected cash flows incorporate inputs that would
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
be taken into account by independent market participants, such as risk
-free interest rates, expected credit losses, cost of equity
requirements and funding. For credit impaired-loans, the timing of collateral realization is taken into account for the estimation
of the future cash flows which are discounted by non-credit risk adjusted rates. In addition, the fair value of securitization senior
notes of loan portfolios originated by the Group is estimated by discounting the expected cash flows using appropriate market
interest rates of other comparable assets with similar quality and duration;
(b)
Investment securities measured at amortized cost: the fair values are determined using prices quoted in an active market when
these are available. In other cases, fair values are determined using quoted market prices for securities with similar credit risk,
maturity and yield, quoted market prices in non active markets for identical or similar financial instruments, or by using the
discounted cash flows method. In addition, for certain high quality corporate bonds for which quoted prices are not available, fair
value is determined using prices that are derived from reliable data management platforms while part of them is verified by
market participants (e.g. brokers). In certain cases, prices are implied by liquidity agreements (e.g. repos, pledges) with other
financial institutions; and
(c)
Debt securities in issue: the fair values are determined using quoted market prices, if available. If quoted prices are not available,
fair values are determined based on third party valuations, quotes for similar debt securities or by discounting the expected cash
flows at a risk-adjusted rate, where the Group's own credit risk is determined using inputs indirectly observable, i.e. quoted prices
of similar securities issued by the Group or other Greek issuers.
For other financial instruments, which are short term or re -price at frequent intervals (cash and balances with central banks, due
from credit institutions, due to central banks, due to credit institutions and due to customers), the carrying amounts represent
reasonable approximations of fair values.
6. Net interest income
2024
2023
€ million
€ million
Interest income
Customers
2,479
2,122
- measured at amortised cost
2,479
2,121
- measured at FVTPL
0
1
Banks and other assets⁽¹⁾
583
460
Securities
618
429
- measured at amortised cost
492
309
- measured at FVOCI
119
107
- measured at FVTPL
7
13
Derivatives (hedge accounting)
507
527
Derivatives (no hedge accounting)
909
916
5,096
4,454
Interest expense
Customers ⁽¹⁾
(655)
(435)
Banks ⁽¹⁾
(291)
(317)
Debt securities in issue ⁽¹⁾
(300)
(222)
Derivatives (hedge accounting)
(454)
(430)
Derivatives (no hedge accounting)
(886)
(873)
Lease liabilities - IFRS 16
(3)
(3)
(2,589)
(2,280)
Total from continuing operations
2,507
2,174
(1)
.
In 2024, the increase in net interest income is primarily attributable to the consolidation of Hellenic Bank group as of the third quarter
2024 contributing € 295 million (notes 23.2 and 44), the higher average interest rates, the loan growth and the increased positions in
investment bonds partly offset by higher debt issued and deposits cost.
Notes to the Consolidated Financial Statements
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31 December 2024 Consolidated Financial Statements
Interest income recognized by quality of Loans and Advances and Product Line is further analyzed below:
31 December 2024
Interest income
on non-impaired
loans and
advances
Interest
income on
impaired loans
and advances
Total
€ million
€ million
€ million
Retail lending
1,007
36
1,043
Wholesale lending⁽¹⁾
1,408
28
1,436
Total interest income from customers
2,415
64
2,479
31 December 2023
Interest income
on non-impaired
loans and
advances
Interest
income on
impaired loans
and advances
Total
€ million
€ million
€ million
Retail lending
854
33
888
Wholesale lending⁽¹⁾
1,193
41
1,234
Total interest income from customers
2,048
74
2,122
(1)
7. Net banking fee and commission income
The following tables include net banking fees and commission income from contracts with customers in the scope of IFRS 15,
disaggregated by major type of services and operating segments (note 44).
31 December 2024
Retail
Corporate
Global
Markets &
Asset Mngt
International
Other ⁽²⁾
Total
€ million
€ million
€ million
€ million
€ million
€ million
Lending related activities
7
120
33
25
1
186
Asset management ⁽¹⁾
22
2
50
15
3
92
Network activities and other ⁽³⁾
77
8
33
131
2
250
Capital markets
-
7
23
6
(2)
34
Total from continuing operations ⁽⁴⁾
106
137
138
176
5
561
31 December 2023
Retail
Corporate
Global
Markets &
Asset Mngt
International
Other⁽²⁾
Total
€ million
€ million
€ million
€ million
€ million
€ million
Lending related activities
8
111
16
15
2
152
Asset management ⁽¹⁾
17
2
39
11
6
75
Network activities and other ⁽³⁾
62
7
31
90
3
193
Capital markets
-
7
16
6
(2)
27
Total from continuing operations
87
127
102
122
9
447
(1)
(2)
(3)
(4)
It includes € 40 million referring to Hellenic Bank group, which was consolidated as of the third quarter of 2024 (notes 23.2 and 44).
Notes to the Consolidated Financial Statements
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31 December 2024 Consolidated Financial Statements
8. Income from non banking services
Income from non banking services from continuing operations includes (a) net insurance income of € 8.1 million, following the
consolidation of Hellenic Bank group as of the third quarter 2024 (note 23.2), (b) rental income of € 95.8 million (31 December 2023:
€ 95.5 million) from real estate properties and (c) income of € 1.1 million (31 December 2023: € 1.0 million) from IT services provided
by the Group entities.
The breakdown of the net insurance income is set out below.
31 December 2024
Life
insurance
Non-Life
insurance
Total
€ million
€ million
€ million
Insurance revenue
11
22
33
Insurance service expenses
(5)
(19)
(24)
Insurance service result from insurance contracts issued
6
3
9
Allocation of reinsurance premiums
(4)
(10)
(14)
Amounts recoverable from reinsures
5
9
14
Net expense from reinsurance contracts held
1
(1)
(0)
Net insurance service result
7
2
9
Finance income/(expense) from
insurance/reinsurance contracts
(1)
(0)
(1)
Total
6
2
8
9. Net trading income and gains less losses from investment securities
2024
2023
€ million
€ million
Net trading income/(loss)
Debt securities, including short positions
(3)
(24)
Derivative financial instruments
84
86
Equity securities⁽¹⁾
8
4
Revaluation on foreign exchange positions
5
5
Total
94
71
Gains less losses from investment securities
Debt securities
2
38
- measured at FVOCI ⁽²⁾
13
57
- measured at AC⁽³⁾
(12)
(18)
- measured at FVTPL
1
(1)
Equity securities
11
19
Total from continuing operations
13
57
(1)
million loss).
(2)
It includes termination fees from related derivatives in single hedging relationships amounting to € 5 million income (2023: € 6 million income)
(3)
In the comparative year trading results include € 23 million loss on short positions on debt instruments entered into the context of
the Group's economic hedging strategies.
Gains from derivative financial instruments of € 84 million comprise mainly a) € 6 million loss resulting from fair value changes of
derivatives not designated in hedge accounting relationships (31 December 2023: € 33 million loss) and b) € 88 million gains from
portfolio hedging of interest rate risk (macro hedging) (31 December 2023: € 124 million gains), of which € 3 million gains arise from
hedge ineffectiveness and € 85 million gains from fair value changes of the hedging derivatives that occur as part of the dynamic
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
management of the pool of hedging instruments on a monthly basis, and include fair value changes before initial designation or after
de-designation as well as realized gains of the liquidated positions following de-designation (notes 2.2.3(i) and 19).
10. Other income/ (expenses)
2024
2023
€ million
€ million
Gain/(loss) from change in fair value of investment
property (note 27)
17
6
Gain from acquisition/increase in shareholding of Hellenic Bank as an associate⁽¹⁾
99
111
Derecognition gain/(loss) on loans measured at
amortised cost (note 20)
5
3
Loss on loans' modifications and related adjustments
(97)
(49)
Fee expense related to the deferred tax credits (note 13)
(5)
(6)
Dividend income
8
3
Gains/(losses) on loans at FVTPL
8
(0)
Gain on sale of real estate properties
12
3
Change in provisional fair value adjustments related to the acquisition of Hellenic Bank
17
-
Other
(3)
(3)
Total from continuing operations
61
68
(1)
Reflects the gain on initial application of equity accounting (2023) and the increase in ownership interest in Hellenic Bank as an associate (note 24).
From the date of acquisition of Hellenic Bank till the end of 2024, the change in provisional fair value adjustments from the subsequent
measurement of the related assets and liabilities, amounted to € 17 million income (note 23.2).
In the context of the increased interest rates environment, the Bank has introduced since 2023 the probability of prepayment on its
floating rate loans, focusing on retail portfolios of long-term loans that are expected to exhibit higher, than historically observed,
prepayment rates, depending on their particular contractual terms. Accordingly, for performing retail loans that their contractual
interest rate spread is scheduled to increase (step-up) over the next years, the Bank has assessed that the combined increase of the
reference interest rates and the pre-determined client spreads, increase the probability of the borrowers’ prepaying or refinancing
their loans at prevailing market rates earlier than their contractual maturity.
The Bank, considering the current and expected levels of the reference rates as well as the prevailing markets rates for newly
originated loans, adjusts the perimeter of performing retail loans that are likely to be repaid earlier and reassesses the prepayment
probability incorporated in the specific loans’ expected cash flows, adjusting their gross carrying amount accordingly. In the year
ended 31 December 2024, the loss resulting from the extension of the perimeter of the said loans and the reassessment of the
prepayment probability, which is included in “Loss on loans’ modification and related adjustments”, amounted to ca. € 86 million (31
December 2023: € 35 million).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
11. Operating expenses
2024
2023
€ million
€ million
Staff costs
(588)
(473)
Administrative expenses
(338)
(275)
Contributions to resolution and deposit guarantee funds
(11)
(33)
Depreciation of real estate properties and equipment
(47)
(42)
Depreciation of right of use assets
(37)
(37)
Amortisation of intangible assets
(51)
(41)
Contribution to the school renovations program
(27)
-
Contribution to restoration initiatives after natural disasters
-
(14)
Total from continuing operations ⁽¹⁾
(1,099)
(915)
(1)
In the context of the systemic banks’ participation in the Greek state’s school renovation program, the Bank has recognised a provision
of € 27 million in the fourth quarter of 2024.
Pursuant to the notification of the Hellenic Deposit and Investment Guarantee Fund (HDIGF) received by the Bank in November 2023,
no additional contributions were recognized for the Resolution Scheme of the HDIGF for the year ended 31 December 2024. In
addition, according to the announcement of the Single Resolution Board on 15 February 2024, no regular annual contributions were
collected in 2024 from the institutions falling within the scope of the Single Resolution Fund.
In the third quarter of 2023, the Bank recognized a provision of € 13.5 million for its contribution to the restoration of damages
following the recent natural disasters in Greece. This is mainly relating to the destructive floods in Thessaly and the relevant initiative
of the four Greek systemic banks, in the context of their corporate social responsibility, to contribute € 50 million to the restoration
effort, which will be allocated and provided mostly for infrastructure, in collaboration with the related ministries, the local
administration and social and economic institutions of the region.
Staff costs
2024
2023
€ million
€ million
Wages, salaries and performance remuneration
(446)
(355)
Social security costs
(62)
(52)
Additional pension and other post employment costs
(27)
(21)
Other
(53)
(45)
Total from continuing operations
(588)
(473)
The average number of employees during the year was 11,810 (2023: 10,323 from the Group’s continuing operations). As at 31
December 2024, the number of branches and business/private banking centers of the Group amounted to 568 (2023: 540).
Notes to the Consolidated Financial Statements
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31 December 2024 Consolidated Financial Statements
12. Other impairments, risk provisions and restructuring costs
2024
2023
€ million
€ million
Impairment and valuation losses on real estate properties⁽¹⁾
(21)
(49)
Impairment losses on computer hardware and software (notes 26, 28)
(19)
(17)
Impairment (losses)/reversal on bonds
(12)
4
Other impairments, litigation and conduct-related
provisions and costs
(8)
(34)
Other impairments, risk provisions and related costs
(60)
(96)
Voluntary exit schemes and other related costs (note 37)
(161)
(7)
Other restructuring costs
(7)
(30)
Restructuring costs
(168)
(37)
Total from continuing operations⁽²⁾
(228)
(133)
(1)
For 2024, it includes € 9.4 million remeasurement/impairment loss on real estate properties of IMO Property Investments Bucuresti S.A., (note 30). For 2023,
it includes € 23 million remeasurement/impairment loss on real estate properties of IMO Property Investments Sofia E.A.D, which was disposed of during the
year (note 23.1).
(2)
It includes € 3 million referring to Hellenic Bank group, which was consolidated as of the third quarter of 2024 (notes 23.2 and 44).
For the year ended 31 December 2024, an amount of ca. € 131 million, net of the discounting effect, has been recognised in the
Group’s income statement for the cost of employee termination benefits in respect of the new Voluntary Exit Scheme (VES) that was
launched by the Group in February 2024 for eligible units in Greece and offered mainly to employees over a specific age limit. The
new VES is implemented through either lump-sum payments or long term leaves during which they will be receiving a percentage of
a monthly salary, or a combination thereof. The saving in personnel expenses is expected at circa € 31 million on an annual basis
In the year ended 31 December 2023, the Group recognized € 30 million other restructuring costs of which € 10.6 million refers to
the acquisition of BNP Paribas Personal Finance Bulgaria by Eurobank Bulgaria A.D., while the remaining costs mainly relate to the
Group’s transformation projects and initiatives.
13.
Income tax
2024
2023
€ million
€ million
Current tax ⁽¹⁾
Deferred tax
Total income tax from continuing operations
(1)
Greek State.
According to Law 4172/2013 currently in force, the nominal Greek corporate tax rate for credit institutions that fall under the
requirements of article 27A of Law 4172/2013 regarding eligible deferred tax assets (DTAs)/deferred tax credits (DTCs) agains t the
Greek State is 29%. The Greek corporate tax rate for legal entities other than the aforementioned credit institutions is 22%. In addition,
the withholding tax rate for dividends distributed, other than intragroup dividends, is 5%. In particular, the intragroup dividends under
certain preconditions are relieved from both income and withholding tax.
The nominal corporate tax rates applicable in the banking subsidiaries incorporated in the international segment of the Group (note
44) are as follows: Bulgaria 10%, Cyprus 12.5% and Luxembourg 24.94%.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Pillar Two income taxes
The Group is subject to the top up tax under the Pillar Two legislation that introduces a global minimum effective tax rate at 15% on
multinational entities with consolidated revenues over € 750 million, effective as of 1 January 2024. The Pillar Two effective tax rate
is lower than 15% in respect of Group’s operations in Bulgaria and Cyprus, containing the operations of Eurobank Cyprus and those
of Hellenic Bank group (note 44), mainly due to the nominal corporate tax rates (CIT) applying in these jurisdictions (see above). For
the year ended 31 December 2024, the Group has recognized a current tax expense of € 21.6 million related to the top up tax
applicable on the profits earned in the aforementioned jurisdictions.
The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts on the top up tax and accounts
for it as a current tax when it is incurred.
Tax certificate and open tax years
The Company and its subsidiaries, associates and joint ventures, which operate in Greece (notes 23 and 24) have in principle up to 6
open tax years. For fiscal years starting from 1 January 2016 onwards, pursuant to the Tax Procedure Code, an ‘Annual Tax Certificate’
on an optional basis, is provided for the Greek entities, with annual financial statements audited compulsorily, which is issued after a
tax audit is performed by the same statutory auditor or audit firm that audits the annual financial statements. The Company and, as
a general rule, the Group’s Greek companies have opted to obtain such certificate.
The Company’s open tax years are 2020-2024, while the Bank’s open tax years are 2022-2024. The tax certificates of the Company,
the Bank and the other Group’s entities, which operate in Greece, are unqualified for their open tax years until 2023. In addition, for
the year ended 31 December 2024, the tax audits from external auditors are in progress.
In accordance with the Greek tax legislation and the respective Ministerial Decisions issued, additional taxes and penalties may be
imposed by the Greek tax authorities following a tax audit within the applicable statute of limitations (i.e. in principle five years as
from the end of the fiscal year within which the relevant tax return should have been submitted), irrespective of whether an
unqualified tax certificate has been obtained from the tax paying company. In light of the above, as a general rule, the right of the
Greek State to impose taxes up to tax year 2018 (included) has been time-barred for the Group’s Greek entities as at 31 December
2024.
The open tax years of the foreign banking entities of the Group are as follows: (a) Eurobank Cyprus Ltd, 2018-2024 (a tax audit for tax
years 2018-2020 is in progress), (b) Hellenic Bank Public Company Limited, 2016-2024 (a tax audit for tax years 2016-2022 is in
progress), (c) Eurobank Bulgaria A.D., 2019-2024 and (d) Eurobank Private Bank Luxembourg S.A.,2020-2024. The remaining foreign
entities of the Group (notes 23 and 24), which operate in countries where a statutory tax audit is explicitly stipulated by law, have in
principle up to 6 open tax years, subject to certain preconditions of the applicable tax legislation of each jurisdiction.
In reference to its total uncertain tax positions, the Group assesses all relevant developments (e.g. legislative changes, case law, ad
hoc tax/legal opinions, administrative practices) and raises adequate provisions.
Deferred tax
Deferred tax is calculated on all deductible temporary differences under the liability method as well as for unused tax losses at the
rate in effect at the time the reversal is expected to take place.
The net deferred tax is analyzed as follows:
2024
2023
€ million
€ million
Deferred tax assets
3,780
3,991
Deferred tax liabilities
(43)
(28)
Net deferred tax
3,737
3,963
The movement on deferred tax is as follows:
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
2024
2023
€ million
€ million
Balance at 1 January
3,963
4,130
Arising from acquisition⁽¹⁾
(14)
-
Income statement credit/(charge) from continuing operations
(220)
(178)
Investment securities at FVOCI
2
(8)
Cash flow hedges
0
1
Actuarial gains/(losses)
1
1
Discontinued operations (note 30)
3
17
Other
2
(0)
Balance at 31 December
3,737
3,963
(1)
Deferred income tax (charge)/credit from continuing operations is attributable to the following items:
2024
2023
€ million
€ million
Impairment/ valuation relating to loans, disposals and write-offs
(251)
(213)
Tax deductible PSI+ losses
(50)
(50)
Carried forward debit difference of law 4831/2021
111
39
Change in fair value and other temporary differences
(30)
46
Deferred income tax (charge)/credit from continuing operations
(220)
(178)
Deferred tax assets/(liabilities) are attributable to the following items:
2024
2023
€ million
€ million
Impairment/ valuation relating to loans and accounting write-offs
803
940
PSI+ tax related losses
851
901
Losses from disposals and crystallized write-offs of loans
1,998
2,120
Carried forward debit difference of law 4831/2021
150
39
Other impairments/ valuations through the income statement
(94)
(49)
Cash flow hedges
6
6
SLSRI and employee termination benefits⁽²⁾
40
17
Real estate properties, equipment and intangible assets
(122)
(97)
Investment securities at FVOCI
(21)
(23)
Other⁽¹⁾⁽²⁾
126
109
Net deferred tax
3,737
3,963
(1)
(2)
with DTA on SLSRI. Comparative information has been adjusted accordingly.
Further information, in relation to the aforementioned categories of deferred tax assets as at 31 December 2024, is as follows:
(a) € 803 million refer to deductible temporary differences arising from impairment/valuation relating to loans including the
accounting debt write-offs according to the Greek tax law 4172/2013, as in force. These temporary differences can be utilized in
future periods with no specified time limit and according to current tax legislation of each jurisdiction;
(b) € 851 million refer to losses resulted from the Group’s participation in PSI+ and the Greek’s state debt buyback program which
are subject to amortization for tax purposes over a thirty-year period, i.e. 1/30 of losses per year starting from year 2012 onwards
(see below – DTCs section);
(c) € 1,998 million refer to the unamortized part of the crystallized tax losses arising from write-offs and disposals of loans, which are
subject to amortization over a twenty -year period;
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Assessment of the recoverability of deferred tax assets
The recognition of the deferred tax assets is based on management’s assessment that the Group’s legal entities will have sufficient
future taxable profits, against which the deductible temporary differences and the unused tax losses can be utilized. The deferred tax
assets are determined on the basis of the tax treatment of each deferred tax asset category, as provided by the applicable tax
legislation of each jurisdiction and the eligibility of carried forward losses for offsetting with future taxable profits. Additionally, the
Group’s assessment on the recoverability of recognized deferred tax assets is based on (a) the future performance expectations
(projections of operating results) and growth opportunities relevant for determining the expected future taxable profits, (b) the
expected timing of reversal of the deductible and taxable temporary differences, (c) the probability that the Group entities will have
sufficient taxable profits in the future, in the same period as the reversal of the deductible and taxable temporary differences or in
the years into which the tax losses can be carried forward, and (d) the historical levels of Group entities’ performance in combination
with the previous years’ tax losses caused by one off or non-recurring events.
In particular, for the year ended 31 December 2024, the deferred tax asset (DTA) recoverability assessment has been based on the
three-year Business Plan that was approved by the Board of Directors in January 2025, for the period up to the end of 2027 (also
submitted to the Single Supervisory Mechanism -SSM-). For the years beyond 2027, the forecast of operating results was based on
the management projections considering the growth opportunities of the Greek and European economy, the banking sector and the
Group itself. Specifically, the management projections for the Group’s future profitability adopted in the Business Plan, have
considered, among others, (a) the gradual decrease of interest rates , starting from 2024, (b) the sustainable increase in loan volumes
with pressure in business lending spreads and the growth, at a relatively lower pace, of customer deposits with gradually lower betas,
(c) the increase in fee and commission income mostly driven by assets under management, and network activities, (d) the discipline
to operating expenses’ targets , (e) the further decrease of NPE ratio, (f) the resilient asset quality with lower cost of risk, which is
expected to carry the effect from the improved macroeconomic outlook driven by the resilient growth of Greek economy, above
European average, as well as the unemployment rate at single digit levels, close to historical lows and (g) the fulfilment of MREL
targets throughout the plan period. The major initiatives introduced in the context of the Group’s transformation plan “Eurobank
2030”, will contribute to meeting its financial objectives.
The Group closely monitors and constantly assesses the developments on the macroeconomic and geopolitical front (note 2) and
their potential effect on the achievement of its Business Plan targets in terms of asset quality and profitability and will continue to
update its estimates accordingly.
Deferred tax credit against the Greek State and tax regime for loan losses
As at 31 December 2024, pursuant to the Law 4172/2013, as in force, the Bank’s eligible DTAs/deferred tax credits (DTCs) against the
Greek State amounted to € 3,022 million (31 December 2023: € 3,212 million). The DTCs are accounted for on: (a) the unamortised
losses from the Private Sector Involvement (PSI) and the Greek State Debt Buyback Program, which are subject to amortisation over
a thirty-year period and (b) on the sum of (i) the unamortized part of the DTC eligible crystallized tax losses arising from write-offs
and disposals of loans, which are subject to amortization over a twenty-year period, (ii) the accounting debt write-offs and (iii) the
remaining accumulated provisions and other losses in general due to credit risk recorded up to 30 June 2015. The DTCs will be
converted into directly enforceable claims (tax credit) against the Greek State provided that the Bank’s after tax accounting result for
the year is a loss.
According to the Law 4831/2021 (article 125), which amended Law 4172/2013, the amortization of the PSI tax related losses is
deducted from the taxable income at a priority over that of the crystallized tax losses (debit difference) arising from write-offs and
disposals of loans. In addition, the amount of the annual tax amortization of the above crystallized tax losses is limited to the amount
of the annual taxable profits, calculated before the deduction of such losses and following the annual tax deduction of the PSI tax
related losses. The unutilized part of the annual tax amortization of the crystallized loan losses can be carried forward for offsetting
over a period of 20 years. If at the end of the 20-year utilization period, there are balances that have not been offset, these will qualify
as a tax loss, which is subject to the 5-year statute of limitation. The above provisions apply as of 1 January 2021 and cover the
crystallized tax losses that have arisen from write-offs and disposals of loans as of 1 January 2016 onwards.
Taking into account the tax regime in force, the recovery of the Bank’s deferred tax asset recorded on loans and advances to
customers and the regulatory capital structure are further safeguarded, contributing substantially to the achievement of NPE
management targets through write-offs and disposals, in line with the regulatory framework and SSM requirements.
Notes to the Consolidated Financial Statements
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31 December 2024 Consolidated Financial Statements
According to tax Law 4172/2013 as in force, an annual fee of 1.5% is imposed on the excess amount of deferred tax assets guaranteed
by the Greek State, stemming from the difference between the current tax rate for the eligible credit institutions (i.e. 29%) and the
tax rate applicable on 30 June 2015 (i.e. 26%). For the year ended 31 December 2024, an amount of € 5.2 million has been recognized
in “Other income/(expenses) (31 December 2023: € 5.6 million).
Income tax reconciliation and unused tax losses
The tax on the Group's profit before tax differs from the theoretical amount that would arise using the Bank’s applicable tax rate of
29% as follows:
2024
2023
€ million
€ million
Profit before tax
1,872
1,542
Tax at the applicable tax rate
(543)
(447)
Tax effect of:
- income not subject to tax and non deductible expenses
(16)
5
- effect of different tax rates in different countries
134
70
- Share of results of associates/joint ventures and related income
76
58
- Tax deductible losses for which DTA had not been recognised
18
63
- Pillar Two income taxes
(22)
-
- other
(8)
(10)
Total income tax from continuing operations
(361)
(261)
For the year ended 31 December 2024, the Group’s effective tax rate reached 19% (2023: 17%).
As at 31 December 2024, the Company and the Bank have not recognised deferred tax asset (DTA) on unused tax losses amounting
to € 362 million (2023: € 421 million). The analysis of unrecognized DTA on unused tax losses of the Company and the Bank per year
of maturity of related tax losses is presented in the table below:
Unrecognized
DTA
€ million
Year of maturity of unused tax losses
2025
347
2026
12
2027
1
2028
2
2029
1
Total
362
14. Earnings per share
Basic earnings per share, in principle, is calculated by dividing the net profit attributable to ordinary shareholders by the weighted
average number of ordinary shares in issue during the year, excluding the average number of ordinary shares purchased by the Group
and held as treasury shares.
The diluted earnings per share, in principle, is calculated by adjusting the weighted average number of ordinary shares outstanding
to assume conversion of all dilutive potential ordinary shares during the period. As at 31 December 2024, the Group’s dilutive
potential ordinary shares relate to the share options that were allocated to employees of Eurobank Holdings and its affiliated
companies (note 40). The weighted average number of shares is adjusted for the share options by calculating the weighted average
number of shares that could have been acquired at fair value (determined as the average market price of the Company's shares for
the period). The number of shares resulting from the above calculation is added to the weighted average number of ordinary shares
in issue in order to determine the weighted average number of ordinary shares used for the calculation of the diluted earnings per
share.
Notes to the Consolidated Financial Statements
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31 December 2024 Consolidated Financial Statements
Year ended 31 December
2024
2023
Net profit for the year attributable to ordinary shareholders
€ million
1,448
1,140
Net profit for the year from continuing operations attributable to ordinary
shareholders
€ million
1,455
1,281
Weighted average number of ordinary shares used for
basic earnings per share
Number of shares
3,665,235,475
3,698,802,084
Weighted average number of ordinary shares used for diluted earnings per
share
Number of shares
3,682,680,282
3,713,688,124
Earnings per share
- Basic earnings per share
€
0.40
0.31
- Diluted earnings per share
€
0.39
0.31
Earnings per share from continuing operations
- Basic and diluted earnings per share
€
0.40
0.34
Basic and diluted losses per share from discontinued operations for the year ended 31 December 2024 amounted to € 0.0019 (31
December 2023: € 0.04 losses).
15. Cash and balances with central banks
2024
2023
€ million
€ million
Cash in hand
617
502
Balances with central banks
15,514
10,441
Total
16,131
10,943
The Bank and its banking subsidiaries in Eurozone (Cyprus and Luxemburg), are required to hold a minimum level of deposits
(minimum reserve requirement - MRR) with their national central bank on an average basis over maintenance periods (i.e. six week
periods); these deposits are calculated as 1% of certain liabilities, mainly customers’ deposits, and can be withdrawn at any time
provided that the MRR is met over the determined period of time. Similar obligations for the maintenance of minimum reserves with
its national central bank are also applied to the banking subsidiary in Bulgaria. As at 31 December 2024, the mandatory reserves (i.e.
those that the Group entities maintain in order to meet the MRR) with central banks amounted to € 1,652 million (2023: € 1,096
million). MRR deposits placed to the European Central Bank (ECB) were remunerated at the ECB’s deposit facility rate (DFR) until
September 2023 and at zero (0%) thereafter.
.
Notes to the Consolidated Financial Statements
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31 December 2024 Consolidated Financial Statements
16. Cash and cash equivalents and other information on cash flow statement
For the purpose of the cash flow statement, cash and cash equivalents comprise the following balances with original maturities of
three months or less:
2024
2023
€ million
€ million
Cash and balances with central banks (excluding mandatory and collateral deposits with
central banks) (note 15)
14,479
9,847
Due from credit institutions
1,398
998
Securities held for trading
31
0
Total
15,908
10,845
Other (income)/losses on investment securities presented in continuing operating activities are analyzed as follows:
2024
2023
€ million
€ million
Amortisation of premiums/discounts and accrued interest
(102)
(10)
(Gains)/losses from investment securities
(13)
(57)
Dividends
(8)
(3)
Total
(123)
(70)
In the year ended 31 December 2024, other adjustments of € 253 million mainly include a) € 99 million gain on acquisition of additional
holding in Hellenic Bank (note 23.2) and b) € 161 million Group’s share of results (income) in associates and joint ventures (note 24),
(31 December 2023: € 153 million mainly include € 111 million gain on investment in Hellenic Bank accounted for as an associate,
note 24).
Changes in liabilities arising from financing activities
During the year ended 31 December 2024, changes in the Group’s liabilities arising from financing activities, other than lease liabilities
(note 42), are attributable to: a) debt issuance amounting to € 2,649 million (2023: € 1,078 million) (net of issuance costs), b) debt
repayment amounting to € 789 million (2023: € 30 million) and c) accrued interest and amortisation of debt issuance costs amounting
to € 1.4 million (2023: € 51.3 million).
17. Due from credit institutions
2024
2023
€ million
€ million
Pledged deposits with banks⁽¹⁾
580
1,036
Placements and other receivables from banks⁽¹⁾
1,112
970
Current accounts and settlement balances with banks
504
348
Total
2,196
2,354
(1)
As at 31 December 2024, the Group’s pledged deposits with banks include: a) € 543 million mainly cash collaterals on risk mitigation
contracts for derivative transactions and repurchase agreements (CSAs, GMRAs) and b) € 37 million cash collateral relating to the sale
of former Romanian subsidiaries.
The Group's exposure arising from credit institutions, as categorized by counterparty's geographical region, is presented in the
following table:
2024
2023
€ million
€ million
Greece
14
59
Other European countries
1,874
2,139
Other countries
307
156
Total
2,196
2,354
Notes to the Consolidated Financial Statements
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31 December 2024 Consolidated Financial Statements
18. Securities held for trading
2024
2023
€ million
€ million
Debt securities (note 5.2.1.3)
186
245
Equity securities
99
134
Total
285
379
19. Derivative financial instruments and hedge accounting
The Group uses derivative financial instruments both for hedging and non-hedging purposes.
The table below presents the fair values of the Group’s derivative financial instruments by product type and hedge relationship along
with their notional amounts. The notional amounts of derivative instruments provide a basis for comparison with instruments
recognized on the balance sheet but do not necessarily indicate the amounts of future cash flows involved or the current fair value
of the instruments and, therefore, are not indicative of the Group’s exposure at the reporting date.
31 December 2024
31 December 2023
Contract /
notional
amount
Fair values
Contract /
notional
amount
Fair values
Assets
Liabilities
Assets
Liabilities
€ million
€ million
€ million
€ million
€ million
€ million
Derivatives for which hedge accounting is not
applied/ held for trading
- Interest rate swaps
34,439
1,096
937
33,909
1,215
1,059
- Interest rate options ⁽¹⁾
8,265
45
47
9,268
69
71
- Foreign exchange contracts ⁽²⁾
4,700
54
26
3,468
21
26
- Other ⁽³⁾
893
3
14
462
5
40
1,199
1,025
1,310
1,196
Derivatives designated as fair value hedges
- Interest rate swaps
12,171
244
442
8,221
308
452
- Interest rate swaps/portfolio hedging ⁽⁴⁾
7,800
6
2
6,642
15
94
- Interest rate floors
5,759
-
33
6,447
-
53
- Bond Forwards
55
1
-
-
-
-
251
477
323
599
Derivatives designated as cash flow hedges
- Cross currency interest
rate swaps
819
7
38
1,579
-
147
7
38
-
147
Offsetting (note 5.2.1.4)
- Interest rate swaps
(619)
(420)
(752)
(492)
Total derivatives assets/liabilities
838
1,120
881
1,450
(1)
Interest rate options include interest rate caps and floors and swaptions.
(2)
(3)
It includes credit default swaps, warrants, commodity derivatives, futures and exchange traded equity options.
It includes deals that are transacted for macro hedging during the reporting month and will be included in the pool of hedging instruments at the end of the
month.
Information on the fair value measurement and offsetting of derivatives is provided in notes 5.3 and 5.2.1.4, respectively.
Notes to the Consolidated Financial Statements
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31 December 2024 Consolidated Financial Statements
The Group uses certain derivatives and other financial instruments, designated in a qualifying hedge relationship, to reduce its
exposure to market risks. The hedging practices applied by the Group, as well as the relevant accounting treatment are disclosed in
note 2.2.3. In particular:
(a) Fair value hedges
The Group hedges a portion of its existing interest rate risk resulting from any potential change in the fair value of fixed rate debt
securities, held or issued, or fixed rate loans, denominated both in local and foreign currencies, using interest rate swaps whereby
the fixed legs represent the economic risks of the hedged items. The Group uses pay fixed/receive floating interest rate swaps to
hedge its fixed rate debt securities held and loans and pay floating/receive fixed interest rate swaps to hedge its fixed rate liabilities.
The Group also hedges the changes in the fair value of debt securities to be disposed in the future under forward transactions. In
2024, the Group recognized a loss of € 34 million (2023: € 175 million loss) from changes in the carrying amount of the hedging
instruments and € 27 million gain (2023: € 173 million gain) from changes in the fair value of the hedged items attributable to the
hedged risk. The amount of hedge ineffectiveness recognized for 2024 in “Net trading income/(loss)” was € 7 million loss (2023: € 2
million loss).
(b) Fair value hedges – portfolios of assets and liabilities
The Group hedges a portion of its existing interest rate risk resulting from any potential change in the fair value of a portfolio of fixed
rate loans including securitization notes initially issued and subsequently held by the Group (macro-hedging), using a group of interest
rate swaps. The Group primarily designates the change in fair value attributable to changes in the benchmark interest rate as the
hedged risk including also assumptions for prepayment risk and, accordingly, enters into interest rate swaps whereby the fixed legs
represent the economic risks of the hedged items. In 2024, the Group recognized a gain of € 20 million (2023: € 139 million loss) from
changes in the carrying amount of the hedging instruments and € 18 million loss (2023: € 145 million gain) from changes in the fair
value of the designated hedged items attributable to the hedged risk. Accordingly, the amount of hedge ineffectiveness recognized
for 2024 in “Net trading income/(loss)” was € 2 million gain (2023: € 6 million gain).
The Group also hedges the variability deriving from the fair value changes of purchased interest rate floors embedded in portfolios
of floating rate loans and debt securities by writing the floors in the market. In 2024, the Group recognized a gain of € 15 million
(2023: € 45 ths gain) from changes in the carrying amount of the hedging instruments, and € 15 million loss (2023: € 45 ths loss) from
changes in the fair value of the hedged items attributable to the hedged risk.
Finally, similar to portfolio hedging of interest rate risk for assets, the Group hedges part of its interest rate exposure of demand
deposit portfolios attributable to changes in the benchmark interest rates (macro-hedging). Despite their contractual terms and due
to their nature, part of the demand deposits are interest rate-insensitive and hence behave similarly to fixed interest rate liabilities.
Accordingly, the Group enters into a group of interest rate swaps that receives fixed interest rate and pays floating interest rate based
on the benchmark rate and its volume is re-assessed on a monthly basis. In 2024, the Group recognized a loss of € 1 million (2023: €
7 million loss) from changes in the carrying amount of the hedging instruments and € 2 million gain (2023: € 5 million gain) from
changes in the fair value of the designated hedged items attributable to the hedged risk. Accordingly, the amount of hedge
ineffectiveness recognized for 2024 in “Net trading income/(loss)” was € 1 million gain (2023: € 2 million loss).
(c) Cash flow hedges
The Group hedges a portion of its existing interest rate and foreign currency risk resulting from any cash flow variability due to changes
in market interest rates on floating rate loans, denominated in foreign currency, using cross currency interest rate swaps, where the
variable legs are based on the benchmark rates of the hedged items. The interest rate risk with respect to the benchmark reference
rate - swap curve of such items, which share the same benchmark interest rate risk may be hedged on a single item or group basis
using interest rate swaps of similar maturity. For the year ended 31 December 2024, an amount of € 1 million loss was recognised in
other comprehensive income in relation to derivatives designated as cash flow hedges (2023: € 3 million loss). Furthermore, in 2024,
the ineffectiveness recognized in the income statement that arose from cash flow hedges was nil (2023: nil).
In addition, the Group uses other derivatives, not designated in a qualifying hedge relationship, to manage its exposure primarily to
interest rate and foreign currency risks. Non qualifying hedges are derivatives entered into as economic hedges of assets and liabilities
for which hedge accounting was not applied. The said derivative instruments are monitored and have been classified for accounting
purposes along with those held for trading.
The fair value of Group's derivative financial assets, as categorized by counterparty's geographical region and industry sector, is
presented in the following tables:
Notes to the Consolidated Financial Statements
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31 December 2024 Consolidated Financial Statements
31 December 2024
Greece
Other
European
countries
Other
countries
Total
€ million
€ million
€ million
€ million
Sovereign
167
-
-
167
Banks
5
235
310
550
Corporate
113
6
2
121
Total
285
241
312
838
31 December 2023
Greece
Other
European
countries
Other
countries
Total
€ million
€ million
€ million
€ million
Sovereign
227
-
-
227
Banks
12
228
335
575
Corporate
72
7
-
79
Total
311
235
335
881
As at 31 December 2024, the net carrying value of the derivatives with the Hellenic Republic amounted to a liability of € 233 million
(31 December 2023: € 260 million liability).
At 31 December 2024 and 2023, the maturity profile of the nominal amount of the financial instruments designated by the Group in
hedging relationships is presented in the tables below:
31 December 2024
Fair Value Hedges
Cash Flow Hedges
1 - 3
months
3 - 12
months
1-5 years
Over 5
years
Total
1 - 3
months
3 - 12
months
1-5 years
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Interest rate swaps⁽¹⁾
-
90
6,721
5,361
12,171
-
-
-
-
Interest rate options
-
-
800
4,847
5,647
-
-
-
-
Cross currency interest rate
swaps
-
-
112
-
112
-
618
201
819
Bond Forwards
55
-
-
-
55
-
-
-
-
Total
55
90
7,633
10,208
17,985
-
618
201
819
31 December 2023
Fair Value Hedges
Cash Flow Hedges
1 - 3
months
3 - 12
months
1-5 years
Over 5
years
Total
1 - 3
months
3 - 12
months
1-5 years
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Interest rate swaps⁽¹⁾
500
16
4,285
3,420
8,221
-
-
-
-
Interest rate options
-
-
800
5,647
6,447
-
-
-
-
Cross currency interest
rate swaps
-
-
-
-
-
175
602
802
1,579
Total
500
16
5,085
9,067
14,668
175
602
802
1,579
(1)
Nominal amount
of interest rate swaps designated as fair value macro hedges is not included.
Notes to the Consolidated Financial Statements
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31 December 2024 Consolidated Financial Statements
(a) Fair value hedges
The following tables present data relating to the hedged items under fair value hedges for the years ended 31 December 2024 and
2023:
2024
Carrying
amount/Exposure
designated as
hedged
amount of FV
hedge
adjustments
related to the
hedged item
the basis for
recognising hedge
ineffectiveness
€ million
€ million
Assets
Loans and advances to customers⁽¹⁾
6,939
(46)
(16)
Debt securities AC⁽¹⁾
5,568
195
41
Debt securities FVOCI
1,736
(26)
30
Liabilities
Debt securities in issue
5,864
47
61
Due to customers⁽¹⁾
4,700
(9)
(2)
2023
Carrying amount/
Exposure
designated as
hedged
amount of FV
hedge adjustments
related to the
hedged item
the basis for
recognising hedge
ineffectiveness
€ million
€ million
€ million
Assets
Loans and advances to customers⁽¹⁾
9,184
69
172
Debt securities AC⁽¹⁾
4,474
154
163
Debt securities FVOCI
1,027
(54)
88
Liabilities
Debt securities in issue
3,812
(15)
105
Due to customers⁽¹⁾
1,628
20
(5)
(1)
For loans and advances to customers hedges, debt securities at amortised cost included in portfolio hedges and due to customers hedges, the exposure
designated as hedged is presented.
At 31 December 2024, the accumulated amounts of fair value hedge adjustments remaining in the balance sheet for any items that
have ceased to be adjusted for hedging gains and losses were € 218 million assets for debt securities held at AC, € 2 million liabilities
for debt issued and € 28 million liabilities for adjustments related to debt securities held at FVOCI (2023: € 253 million assets for debt
securities held at AC, € 3 million liabilities for debt issued and € 44 million liabilities for adjustments related to debt securities at
FVOCI). The respective fair value hedge adjustments relating to macro-hedging, amounted to € 8 million gain for loans (including
securitization notes) and € 5 million gain for deposits (2023 : € 57 million loss and € 25 million gains, respectively).
(b) Cash flow hedges
The cash flow hedge reserves for continuing hedges as at 31 December 2024 were € 0.5 million loss (2023: € 0.7 million gain), which
relate to loans and advances to customers.
As at 31 December 2024, the balances remaining in the cash flow hedge reserve from any cash flow hedging relationships for which
hedge accounting is no longer applied was € 20 million loss (2023: € 20 million loss).
The reconciliation of the components of Group’s special reserves including cash flow hedges is provided in note 39.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
20. Loans and advances to customers
2024
2023
€ million
€ million
Loans and advances to customers at amortised cost
52,245
42,773
(1,309)
(1,258)
Carrying Amount
50,936
41,515
Fair value changes of loans in portfolio hedging of interest rate risk
(3)
15
Loans and advances to customers at FVTPL
19
15
Total
50,953
41,545
The table below presents the carrying amount of loans and advances to customers per product line and per stage as at 31 December
2024:
31 December 2024
31 December 2023
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL -
Stage 3
POCI⁽¹⁾
Total amount
Total amount
€ million
€ million
€ million
€ million
€ million
€ million
Loans and advances to customers at
amortised cost
Mortgage lending:
9,249
2,706
359
151
12,466
9,942
(64)
(218)
(177)
(10)
(469)
(382)
Carrying Amount
9,185
2,489
182
141
11,997
9,560
Consumer lending:
3,831
392
157
153
4,533
3,436
(51)
(48)
(114)
(11)
(223)
(210)
Carrying Amount
3,780
344
43
142
4,310
3,225
Small Business lending:
2,663
635
261
24
3,583
3,484
(17)
(50)
(126)
(1)
(194)
(219)
Carrying Amount
2,645
585
135
23
3,389
3,265
Wholesale lending:⁽²⁾⁽³⁾
29,717
1,184
672
90
31,663
25,912
(58)
(39)
(321)
(4)
(422)
(447)
Carrying Amount
29,659
1,145
351
86
31,241
25,465
Total loans and advances to customers at
AC
45,460
4,917
1,449
419
52,245
42,773
Non Performing exposures (NPE)
-
-
1,449
269
1,719
1,512
(191)
(354)
(738)
(27)
(1,309)
(1,258)
Carrying Amount
45,270
4,563
711
392
50,936
41,515
Fair value changes of loans in portfolio
hedging of interest rate risk
(3)
15
Loans and advances to customers at FVTPL
Carrying Amount⁽⁴⁾
19
15
Total
50,953
41,545
(1)
loans.
(2)
in Stage 1.
(3)
Includes loans to public sector.
(4)
Includes the mezzanine notes of securitizations of loans originated by the Bank.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
As at 31 December 2024, the Group’s NPE stock amounting to € 1,530 million excluding Hellenic Bank loans of € 0.2 billion covered
by the Asset Protection Scheme (APS) agreement in Cyprus. The Group NPE ratio, excluding the NPE covered by the APS, decreased
to 2.9% (31 December 2023: 3.5%), while the NPE coverage ratio improved to 88.4% (31 December 2023: 86.4%). With the inclusion
of the above NPE covered by the APS, the Group NPE ratio and the NPE coverage ratio would be 3.3% and 79.8% respectively.
According to the Group’s business plan for the period 2025-2027, the Group NPE ratio will be decreased further to ca 2.5% in 2027.
Sustainability linked loans
In line with its Sustainable Finance Framework, the Group grants loans, which as part of their contractual terms, incentivize the
borrower’s achievement of predetermined sustainability performance targets (SPTs). Specifically, these SPTs consist of a list of
environmental (E), social (S), and governance (G) targets, the fulfillment of which by the client is determined by meeting respective
KPIs, i.e., metrics to quantify the client’s performance, for example climate-related targets, such as reducing carbon emissions or
social targets, such as increasing the level of diversity at Board level. As part of the terms of these loans, the contractual interest rate
is increased if the borrower fails to meet specific targets linked to its activity.
The abovementioned loans held as of 31 December 2024 have been assessed, in line with the Group’s accounting policies (note 2)
that their contractual cash flows are SPPI pass.
As at 31 December 2024, the carrying amount of the sustainability linked loans measured at amortized cost amounted to € 1,024
million (2023: € 354 million).
Project “Solar”
In the context of its NPE management strategy, the Group has been structuring another NPE securitization transaction (project
‘Solar’), as part of a joint initiative with the other Greek systemic banks (the Banks) since 2018.Out of the notes to be issued by the
SPV, the Banks will hold 100% of the Senior notes as well as the 5% of the Mezzanine and Junior notes, and will dispose of the
remaining stake of the subordinated tranches. In June 2024, the Banks submitted to the Greek Ministry of Finance a joint application
for the inclusion of the senior notes to be issued in the Hellenic Asset Protection Scheme.
Since June 2022, the Group classified the underlying corporate loan portfolio as held for sale, while the remeasurement of its expected
credit losses, in accordance with the Group’s accounting policy for the impairment of financial assets, resulted in the recognition of
impairment loss of € 12 million in the fourth quarter of 2023. The aforementioned impairment loss is determined by reference to the
estimated fair value of the notes to be retained by the Group, upon the completion of transaction, and the consideration expected
to be received by the sale of mezzanine and junior notes. As at 31 December 2024, the carrying amount of the aforementioned loan
portfolio reached € 46 million, comprising loans with gross carrying amount of € 243 million, which carried an impairment allowance
of € 197 million. Furthermore, the impairment allowance of the letters of guarantee included in the underlying portfolio reached € 1
million (note 35).
Project ‘’Leon’’- loans’ derecognition and other loans held for sale
In December 2023, the Group, aiming to accelerate further its NPE reduction plan, initiated the sale process of a mixed NPE portfolio
of total gross book value ca. € 400 million, engaging in parallel in negotiations with potential investors. Accordingly, at 31 December
2023, the Bank classified the aforementioned loan portfolio as held for sale, remeasured the portfolio’s expected credit losses, in
accordance with the Bank’s accounting policy for the impairment of financial assets and recognized an impairment loss of € 55 million.
In the first half of 2024, the Bank revised its NPE sale target and increased the aforementioned perimeter of NPE loans by ca. € 240
million, which were also classified as held-for-sale. As a result of the above, at 30 June 2024, the carrying amount of the loan portfolio
under held for sale perimeter reached € 239 million, comprising loans with gross carrying amount of € 637 million, which carried an
impairment allowance of € 398 million.
On 8 July 2024, the Group, through its special purpose financing vehicle ‘’LEON CAPITAL FINANCE DAC’’ (SPV), issued senior,
mezzanine and junior notes of nominal amount of ca. € 1.5 billion, via the securitization of a mixed NPE portfolio, which comprises
the loans that were classified as held for sale at 30 June 2024 (project’s ‘’Leon’’ perimeter) as well as written off loans of total principal
amount due of ca. € 1.5 billion and gross carrying amount of ca.€ 0.6 billion that complied with the requirements of Hellenic Asset
Protection Scheme law. Further to the above, on 13 September 2024, the Group, as the holder of the notes issued by the SPV,
proceeded with the disposal of the 95% of the mezzanine and junior tranches to a third party investor. Accordingly, as of the
aforementioned date, the Group ceased to control the SPV and the related real estate company ‘Leon Capital Estate Single Member
S.A.’, which resides with the majority stake of mezzanine noteholders, derecognized the underlying loan portfolio on the basis that it
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
transferred substantially all risks and rewards of the portfolio’s ownership and relinquished its control over it, and recognized the
retained notes on its balance sheet, i.e. 100% of the senior and 5% of the mezzanine and junior notes of Leon securitization, at fair
value. In addition, prior to the derecognition of the loan portfolio, the Group reassessed the portfolio’s expected credit losses, which
was determined by reference to the estimated fair value of the notes to be retained by the Group and the consideration to be received
by the sale of mezzanine and junior notes, and recognized an impairment release of € 16 million (note 21).
The carrying amount of the loan portfolio derecognized, as a result of the Transaction, amounted to € 256 million, comprising loans
with gross carrying amount of € 589 million, which carried an impairment allowance of € 333 million. The respective derecognition
loss, recorded in “other income/(expenses)”, amounted to € 1 million. As at 31 December 2024, the gross carrying amount of the
remaining loan portfolio under sale amounted to € 42 million with an equal amount of impairment allowance.
Project “Wave”
In July 2024, the Bank proceeded with the execution of another synthetic risk transfer transaction (project “Wave V”) in the form of
a financial guarantee, providing credit protection over the mezzanine loss of a portfolio of performing SME and Large Corporate loans
amounting to € 1.1 billion (the reference portfolio). Similarly to the previous synthetic risk transfer transactions of similar
characteristics (“Wave” projects), the Wave V transaction was accounted for as a purchased financial guarantee contract that is not
integral to the contractual terms of the reference portfolio, where a compensation right resulting from the expected credit losses of
the protected loans is recognized, to the extent that it is virtually certain that the Group will be reimbursed for the credit losses
incurred. The reference portfolios of Wave V continued to be recognized on the Group’s Balance Sheet.
The Wave V transaction, that was performed in the context of the Group’s initiatives for the optimization of its regulatory capital,
resulted in a capital benefit of 25 bps to Eurobank Holdings Group’s CAD ratio.
Another synthetic risk transfer transaction was executed in December 2024 (project “Wave VI”), in the form of credit linked notes
(“CLN”). More specifically, the Bank issued a CLN of € 80 million that provides credit protection over the mezzanine loss of a portfolio
of performing SME and Large Corporate loans amounting to € 1.1 billion. The credit protection to the Bank is provided by means of
adjustments (write-downs) to the principal balance of the CLN, after the occurrence of certain credit events in relation to the
protected loans, pursuant to the terms and conditions of the CLN.
The CLN is accounted for as a financial liability presented under “Debt securities in issue” (note 34).
The Wave VI transaction, which was performed in the context of the Group’s initiatives for the optimization of its regulatory capital,
is expected to contribute 22 bps to Eurobank Holdings Group’s CAD ratio.
Securitizations of other loan portfolios originated by the Group
The Group in the context of the achievement of its NPE reduction targets has entered into the securitization of various classes of
primarily NPE through the issue of senior, mezzanine and junior notes, which resulted, as described below, in the derecognition of
the underlying loan portfolios and the recognition of the retained notes.
‘Mexico’ securitization
In May 2021, the Group, through its special purpose financing vehicle (SPV) ‘Mexico Finance Designated Activity Company’ issued
senior, mezzanine and junior notes of total face value of ca. € 5.2 billion, via a securitization of a mixed portfolio comprising primarily
NPE. The Group included ‘’Mexico” securitization under the Hellenic Asset Protection Scheme (HAPS) thus the senior note of the
securitization became entitled to the Greek State’s guarantee.
In December 2021, the sale of 95% of the mezzanine and junior notes of Mexico securitization to doValue S.p.A. was completed and,
as a result, the Group ceased to control the SPV and derecognized the underlying loan portfolio from its balance sheet, on the basis
that it transferred substantially all risks and rewards of the portfolio’s ownership and ceased to have control over the securitized
loans. In addition, the Group recognized the retained notes on its balance sheet i.e. 100% of the senior and 5% of the mezzanine and
junior notes, with carrying amount € 1,290 million at 31 December 2024 (31 December 2023: € 1,415 million).
‘Cairo’ securitization
In June 2019, the Group, through the special purpose financing vehicles (SPVs) ‘Cairo No. 1 Finance Designated Activity Company’,
‘Cairo No. 2 Finance Designated Activity Company’ and ‘Cairo No. 3 Finance Designated Activity Company’, issued senior, mezzanine
and junior notes of total face value of ca. € 7.5 billion, via a securitization of a mixed portfolio consisting primarily of non-performing
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
loans (NPE) (“Cairo” securitization). In December 2019, the Group announced that it has entered into a binding agreement with
doValue S.p.A. for the sale of 20% of the mezzanine and 50.1% of the junior notes of “Cairo” securitization. The Group included “Cairo”
securitization under the Hellenic Asset Protection Scheme (HAPS) thus the senior note of the securitization became entitled to the
Greek State’s guarantee.
In June 2020, the sale of the aforementioned notes was completed and, as a result, the Group ceased to control the Cairo SPVs on
the basis that it does not have the power to direct their relevant activities. Furthermore, in June 2020, Eurobank Holdings, following
a decision of the Board of Directors (BoD), proceeded to the contribution of the retained Cairo notes, i.e. 75% of the mezzanine and
44.9% of the junior notes, along with an amount of € 1.5 million in cash to its Cyprus-based subsidiary Mairanus Ltd, renamed to
‘Cairo Mezz Plc’, in exchange for the newly-issued shares of the aforementioned subsidiary. In July 2020, the General Shareholders’
Meeting of the Company approved the distribution of Cairo Mezz Plc shares to Eurobank Holding’s shareholders through the decrease
in kind of its share capital.
In September 2020, following the completion of the distribution of the Cairo Mezz Plc shares, the underlying loan portfolio and the
related assets and liabilities were derecognized from the Group’s balance sheet, on the basis that at that time the Group transferred
substantially all risks and rewards of the portfolio’s ownership and ceased to have control over the securitized portfolio. In addition,
the Group recognized the retained notes on its balance sheet, i.e. 100% of the senior notes, 5% of mezzanine and junior notes with
carrying amount € 1,790 million at 31 December 2024 (31 December 2023: € 2,019 million).
‘Pillar’ securitization
In June 2019, the Group, through the special purpose financing vehicle (SPV) ‘Pillar Finance Designated Activity Company’ issued
senior, mezzanine and junior notes of total value of ca. € 2 billion, via a securitization of residential mortgage primarily NPE. In
September 2019, the Group sold 95% of the above-mentioned mezzanine and junior notes to Celidoria S.A R.L. Upon the completion
of the sale, the Group ceased to control the SPV and derecognized the underlying loan portfolio in its entirety, on the basis that it
transferred substantially all the risks and rewards of the underlying loan portfolio’s ownership. In addition, the Group recognized the
retained notes, i.e. 100% of the senior, 5% of the mezzanine and junior notes, on its balance sheet with carrying amount € 966 million
at 31 December 2024 (31 December 2023: € 1,020 million).
‘Starlight’ notes held following the acquisition of Hellenic Bank
Following the acquisition of Hellenic Bank, which was consolidated as of the third quarter of 2024 (note 23.2), the Group, as at 31
December 2024, included in its loans and advances to customers, senior and mezzanine securitization notes of € 58 million and € 5
million respectively, retained by Hellenic Bank as part of the Starlight securitization of NPE loans originated by the latter.
Support measures to customers
In March 2024, the Bank announced the extension of the reward initiative for housing loan clients under floating rate loans, as initially
was implemented in April 2023. In particular, the Bank, in its effort to continue to support and reward its non-delinquent housing
clients, announced that the application of “a cap rate’’ in the loans’ applicable base rates is extended for another 12 months. The
effect of the extension of the cap rate was assessed against the prevailing market rates and was reflected prospectively in the loans’
effective interest rate.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
21. Impairment allowance for loans and advances to customers
The following tables present the movement of the impairment allowance on loans and advances to customers (expected credit losses – ECL):
31 December 2024
Wholesale
Mortgage
Consumer
Small business
12-month
ECL
-Stage 1
Lifetime
ECL
-Stage 2
Lifetime
ECL
-Stage 3
POCI
12-month
ECL
-Stage 1
Lifetime
ECL
-Stage 2
Lifetime
ECL
-Stage 3
POCI
12-month
ECL
-Stage 1
Lifetime
ECL
-Stage 2
Lifetime
ECL
-Stage 3
POCI
12-month
ECL
-Stage 1
Lifetime
ECL
-Stage 2
Lifetime
ECL
-Stage 3
POCI
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Impairment allowance as at 1 January
72
58
314
4
20
154
207
1
53
53
101
3
25
65
128
0
1,258
New loans and advances originated or
purchased
38
(0)
-
-
3
-
-
-
26
-
-
-
6
-
-
-
73
Transfers between stages
16
(11)
(5)
-
4
(3)
(1)
-
20
(14)
(6)
-
10
(7)
(3)
-
-
(6)
12
(5)
-
(3)
30
(27)
-
(3)
16
(13)
-
(1)
15
(13)
-
-
(1)
(4)
5
-
(5)
(12)
17
-
(2)
(8)
9
-
(1)
(10)
11
-
-
Impact of ECL net remeasurement
(46)
(12)
41
(4)
47
47
52
3
(36)
4
79
(1)
(33)
(11)
59
(7)
181
Recoveries from written - off loans
-
-
10
0
-
-
8
4
-
-
15
5
-
-
5
5
51
Loans and advances derecognised/
reclassified as held for sale during the
year⁽²⁾
(0)
-
(29)
-
(0)
(0)
(37)
-
(0)
(0)
(15)
-
-
-
(24)
-
(105)
Amounts written off⁽³⁾
-
-
(14)
(0)
-
-
(9)
(1)
-
-
(47)
(1)
-
-
(13)
(0)
(84)
Unwinding of Discount
(0)
-
(7)
-
-
-
(0)
-
-
-
(1)
-
-
-
(1)
-
(10)
Foreign exchange and other movements
(14)
(3)
11
4
(2)
2
(32)
3
(7)
(3)
(8)
5
12
(2)
(25)
3
(55)
Impairment allowance as at 31 December
58
39
321
4
64
218
177
10
51
48
114
11
17
50
126
1
1,309
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
Wholesale
Mortgage
Consumer
Small business
12-month
ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI⁽¹⁾
12-month
ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI⁽¹⁾
12-month
ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI⁽¹⁾
12-month
ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI⁽¹⁾
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Impairment allowance as at 1 January
68
75
478
21
160
229
37
48
186
23
72
229
1,626
New loans and advances originated or
purchased
23
-
-
0
-
-
20
-
-
4
-
-
47
Transfers between stages
23
(20)
(3)
10
(8)
(1)
15
(7)
(7)
11
(8)
(2)
-
(6)
28
(22)
(3)
27
(23)
(2)
15
(13)
(2)
13
(11)
-
(5)
(21)
27
(0)
(12)
12
(1)
(6)
6
(1)
(10)
11
-
Impact of ECL net remeasurement
(31)
(3)
72
(7)
(16)
148
4
10
84
(7)
(1)
89
342
Recoveries from written - off loans
-
-
18
-
-
8
-
-
18
-
-
6
49
Loans and advances
derecognised/reclassified as held for sale
during the year⁽²⁾
(4)
(1)
(17)
(0)
(0)
(92)
(4)
(7)
(95)
(1)
(1)
(115)
(337)
Amounts written off⁽³⁾
-
-
(216)
-
-
(46)
-
-
(62)
-
-
(62)
(387)
Unwinding of Discount
-
-
(8)
-
-
(3)
-
-
(2)
-
-
(3)
(16)
Foreign exchange and other movements
3
(0)
(10)
0
4
(24)
(16)
(1)
(11)
(1)
0
(13)
(67)
Impairment allowance as at 31 December
72
58
318
20
154
208
53
53
105
25
65
128
1,258
(1)
The impairment allowance for POCI loans of € 8.1 million is included in ‘Lifetime ECL – stage 3 and POCI’.
(2)
It represents the impairment allowance of loans derecognized due to a) substantial modifications of the loans’ contractual terms, b) sale and securitization transactions, c) debt to equity transactions and those that have been reclassified as
held for sale during the year (notes 20 and 30).
(3)
The contractual amount outstanding on lending exposures that were written off during the year ended 31 December 2024 and that are still subject to enforcement activity is € 68 million (2023: € 338 million).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The impairment losses relating to loans and advances to customers recognized in the Group’s income statement for the year ended
31 December 2024 amounted to € 303 million, including € 16 million impairment release relating to the project Leon (note 20) (2023:
€ 412 million) and are analyzed as follows:
2024
2023
€ million
€ million
Impairment loss on loans and advances to customers
(255)
(390)
Net income / (loss) from financial guarantee contracts⁽¹⁾
(44)
(37)
Modification gain / (loss) on loans and advances to customers
(5)
8
Impairment (loss)/ reversal for credit related commitments
(0)
7
Total from continuing operations⁽²⁾
(303)
(412)
(1)
(2)
to the initial provision for stage 1 loans upon acquisition.
22. Investment securities
2024
2023
€ million
€ million
Investment securities at FVOCI
4,148
3,492
Investment securities at amortised cost
17,651
10,955
Investment securities at FVTPL
384
263
Total
22,184
14,710
Note: information on debt securities of the investment portfolio is presented in note 5.2.1.3.
As part of its strategic and other initiatives, the Group has elected to designate the following equity securities at initial recognition
as measured at FVOCI.
.
2024
2023
€ million
€ million
Plum Fintech Ltd
12
7
Attica Bank S.A.
0
8
Mintus Group Limited
2
2
JCC Payment Systems Ltd
13
-
Demetra Holdings Plc
30
-
Other
2
-
Total
59
17
Sustainability linked bonds
As at 31 December 2024, the Group holds positions in sustainability linked bonds with Sustainability Performance Targets (SPTs) (note
20) of carrying value of € 248 million, of which € 156 million measured at FVOCI and € 92 million at AC (2023: € 118 million, of which
€ 82 million at FVOCI and € 36 million at AC). The Group has assessed the ESG features of the aforementioned debt instruments, in
line with the Group’s accounting policies (note 2) and has concluded that they do not create exposure to risks that are inconsistent
with a basic lending arrangement and therefore the SPPI criteria are met.
Post balance sheet event
In January 2025, the Bank announced the completion of the sale of its 8.58% holding in Demetra Holdings Plc for a cash consideration
of ca. € 27 million. This transaction was part of the Bank’s broader agreement with Demetra and Logicom for the acquisition of an
additional 24.66% stake in Hellenic Bank (note 23.2).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
22.1 Movement of investment securities
The tables below present the movement of the carrying amount of investment securities per measurement category and per stage:
31 December 2024
Debt securities at FVOCI
Investment securities at amortised cost
Investment
securities at
FVTPL
Equity
securities at
FVOCI
12-month
ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
12-month
ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Gross carrying amount at 1
January
3,427
48
-
10,935
7
32
263
17
14,729
Arising from acquisition
36
-
-
5,203
0
0
140
14
5,394
Additions, net of disposals and
redemptions
453
(22)
-
1,368
-
0
(23)
39
1,815
Transfers between stages
3
(3)
-
(12)
12
-
-
-
0
Net gains/(losses) from changes in
fair value for the year
66
5
-
-
-
-
16
(11)
76
Amortisation of
premiums/discounts and interest
18
1
-
82
0
1
0
-
102
Changes in fair value
due to hedging⁽¹⁾
-
-
-
5
0
1
-
-
6
Exchange adjustments and other
movements⁽²⁾
57
0
-
40
0
2
(12)
-
88
Discontinued operations
-
-
-
-
-
-
-
-
-
Gross carrying amount at 31
December
4,061
28
-
17,622
20
36
385
59
22,210
Impairment allowance
-
-
-
(15)
(1)
(9)
-
-
(26)
Net carrying amount at 31
December
4,061
28
-
17,606
19
27
385
59
22,184
31 December 2023
Debt securities at FVOCI
Investment securities at amortised cost
Investment
securities at
FVTPL
Equity
securities at
FVOCI
12-month
ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
12-month
ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Gross carrying amount at 1
January
3,612
121
-
9,175
6
33
241
95
13,283
Additions, net of disposals and
redemptions
(394)
-
-
1,621
-
(2)
3
18
1,246
Transfers between stages
76
(76)
-
(1)
1
-
-
-
-
Net gains/(losses) from changes in
fair value for the year
244
4
-
-
-
-
19
7
273
Amortisation of
premiums/discounts and interest
(19)
0
-
28
(0)
2
(0)
-
10
Changes in fair value due to
hedging⁽¹⁾
-
-
-
146
0
-
-
-
146
Exchange adjustments and other
movements⁽²⁾
(11)
(1)
-
(34)
(0)
(1)
0
(103)
(150)
Discontinued operations
(81)
-
-
-
-
-
-
-
(81)
Gross carrying amount at 31
December
3,427
48
-
10,935
7
32
263
17
14,729
Impairment allowance
-
-
-
(11)
(0)
(7)
-
-
(18)
Net carrying amount at 31
December
3,427
48
-
10,924
7
25
263
17
14,710
(1)
Changes in fair value due to continued hedging relationships amount to € 41 million gain (2023: € 172 million gain)
(2)
purposes following the acquisition of Hellenic Bank. Other movements in equity securities at FVOCI in the comparative year, mainly refer to Hellenic Bank which
was accounted for as a Group's associate as of the second quarter of 2023 (note 23.2).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
22.2 Movement of ECL
The table below presents the ECL movement per portfolio, including ECL movement analysis per stage:
31 December 2024
31 December 2023
Measured at
amortised cost
Measured at
FVOCI
Total
Measured at
amortised cost
Measured at
FVOCI
Total
€ million
€ million
€ million
€ million
€ million
€ million
Balance at 1 January
18
8
26
22
12
34
New financial assets purchased
6
4
10
4
2
6
- of which 12-month ECL-Stage 1
6
4
10
4
2
6
Transfers between stages
- (from)/to 12-month ECL-Stage 1
(0)
0
0
0
1
1
- (from)/to lifetime ECL-Stage 2
0
(0)
(0)
(0)
(1)
(1)
- (from)/to lifetime ECL-Stage 3
-
-
-
-
-
-
Remeasurement due to change in
ECL risk parameters
4
1
4
(8)
(5)
(13)
- of which 12-month ECL-Stage 1
1
(1)
0
(5)
(4)
(9)
- of which lifetime ECL-Stage 2
1
2
2
(0)
(1)
(1)
- of which lifetime ECL-Stage 3
2
-
2
(3)
-
(3)
Financial assets disposed during the
year
(1)
(5)
(6)
(1)
(1)
(2)
- of which 12-month ECL-Stage 1
(1)
(3)
(4)
(1)
(1)
(2)
Financial assets redeemed during the
year
(0)
(0)
(1)
(0)
(0)
(0)
- of which lifetime ECL-Stage 3
-
-
-
-
-
-
Foreign exchange and other
movements
0
0
0
1
(0)
1
Balance as at 31 December
26
8
33
18
8
26
22.3 Equity reserve: revaluation of the investment securities at FVOCI
Gains and losses arising from the changes in the fair value of investment securities at FVOCI are recognized in a corresponding
revaluation reserve in equity. The movement of the reserve is as follows:
2024
2023
€ million
€ million
Balance at 1 January
48
(10)
Net gains/(losses) from changes in fair value
60
255
Tax (expense)/benefit
(10)
(49)
50
206
Net (gains)/losses transferred to net profit on disposal
(7)
(50)
ECL transferred to net profit
4
(3)
Tax (expense)/benefit on net (gains)/losses transferred to net profit on disposal
2
15
Tax (expense)/benefit on ECL transferred to net profit
(1)
1
(2)
(37)
Net (gains)/losses transferred to net profit from fair value hedges
(45)
(91)
Tax (expense)/benefit
11
24
(34)
(67)
Revaluation reserve from associated undertakings, net of tax
(5)
1
Revaluation reserve for the investment in Hellenic Bank transferred to R/E
(0)
(45)
Balance at 31 December
57
48
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
23. Group composition
23.1 Shares in subsidiaries
The following is a listing of the Company's subsidiaries as at 31 December 2024, included in the consolidated financial statements for
the year ended 31 December 2024:
Name
Note
Percentage
holding
Country of
incorporation
Line of business
Eurobank S.A.
100.00
Greece
Banking
Be Business Exchanges Single Member Societe Anonyme
of Business Exchanges Networks and Accounting and Tax
Services
c
100.00
Greece
Business-to-business e-commerce,
accounting, tax and sundry services
Eurobank Asset Management Mutual Fund Mngt
Company Single Member S.A.
100.00
Greece
Mutual fund and asset management
Eurobank Equities Investment Firm Single Member S.A.
100.00
Greece
Capital markets and advisory services
Eurobank Leasing Single Member S.A.
100.00
Greece
Leasing
Eurobank Factors Single Member S.A.
100.00
Greece
Factoring
Herald Greece Single Member Real Estate development
and services S.A. 1
100.00
Greece
Real estate
Herald Greece Single Member Real Estate development
and services S.A. 2
100.00
Greece
Real estate
Piraeus Port Plaza 1 Single Member Development S.A.
100.00
Greece
Real estate
(Under liquidation) Anchor Hellenic Investment Holding
Single Member S.A.
100.00
Greece
Real estate
Athinaiki Estate Investments Single Member S.A.
100.00
Greece
Real estate
Piraeus Port Plaza 2 Single Member Development S.A.
100.00
Greece
Real estate
Piraeus Port Plaza 3 Single Member Development S.A.
100.00
Greece
Real estate
Tenberco Real Estate Single Member S.A.
100.00
Greece
Real estate
Value Touristiki Single Member Development S.A.
100.00
Greece
Real estate
Insignio Single Member S.A.
100.00
Greece
Real estate
Eurobank Ananeosimes Single Member S.A.
100.00
Greece
Production and distribution of solar generated
electric energy
Eurobank Bulgaria A.D.
99.99
Bulgaria
Banking
PB Personal Finance E.A.D.
99.99
Bulgaria
Pension assurance intermediary business
Berberis Investments Ltd
d
100.00
Channel Islands
Holding company
Eurobank Cyprus Ltd
100.00
Cyprus
Banking
Hellenic Bank Public Company Limited⁽²⁾
55.96
Cyprus
Banking
Hellenic Bank (Investments) Ltd⁽²⁾
55.96
Cyprus
Investment banking, asset management and
brokerage
HB Data Analytics Ltd⁽²⁾
55.96
Cyprus
Auxiliary services
Pancyprian Insurance Ltd⁽²⁾
55.94
Cyprus
General Insurance
Hellenic Life Insurance Company Ltd⁽²⁾
55.96
Cyprus
Life Insurance
Hellenic Bank Insurance Holding Ltd⁽²⁾
55.96
Cyprus
Insurance services
Hellenic Insurance Agency Ltd⁽²⁾
55.96
Cyprus
Insurance Intermediation
Ezmero Holdings Ltd⁽²⁾
55.96
Cyprus
Real estate
Anolia Industrial Ltd⁽²⁾
55.96
Cyprus
Real estate
Drypto Holdings Ltd⁽²⁾
55.96
Cyprus
Real estate
Arzetio Holdings Ltd⁽²⁾
55.96
Cyprus
Real estate
Katlero Holdings Ltd⁽²⁾
55.96
Cyprus
Real estate
Foramonio Ltd
100.00
Cyprus
Real estate
Lenevino Holdings Ltd
100.00
Cyprus
Real estate
Rano Investments Ltd
100.00
Cyprus
Real estate
Neviko Ventures Ltd
100.00
Cyprus
Real estate
Zivar Investments Ltd
100.00
Cyprus
Real estate
Amvanero Ltd
100.00
Cyprus
Real estate
Revasono Holdings Ltd
100.00
Cyprus
Real estate
Notes to the Consolidated Financial Statements
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Name
Note
Percentage
holding
Country of
incorporation
Line of business
Volki Investments Ltd
100.00
Cyprus
Real estate
Adariano Investments Ltd
100.00
Cyprus
Real estate
Elerovio Holdings Ltd
100.00
Cyprus
Real estate
Afinopio Investments Ltd
100.00
Cyprus
Real estate
Ovedrio Holdings Ltd
100.00
Cyprus
Real estate
Primoxia Holdings Ltd
100.00
Cyprus
Real estate
Severdor Ltd
100.00
Cyprus
Holding company
Eurobank Private Bank Luxembourg S.A.
100.00
Luxembourg
Banking
Eurobank Fund Management Company (Luxembourg) S.A.
100.00
Luxembourg
Fund management
ERB Lux Immo S.A.
100.00
Luxembourg
Real estate
ERB New Europe Funding B.V.
100.00
Netherlands
Finance company
ERB New Europe Funding II B.V.
100.00
Netherlands
Finance company
ERB New Europe Holding B.V.
100.00
Netherlands
Holding company
ERB IT Shared Services S.A.
100.00
Romania
Informatics data processing
IMO Property Investments Bucuresti S.A.⁽¹⁾
100.00
Romania
Real estate services
Seferco Development S.A.
99.99
Romania
Real estate
ERB Leasing A.D. Beograd-in Liquidation
100.00
Serbia
Leasing
IMO Property Investments A.D. Beograd
100.00
Serbia
Real estate services
Karta II Plc
-
United Kingdom
Special purpose financing vehicle
Astarti Designated Activity Company
-
Ireland
Special purpose financing vehicle
ERB Recovery Designated Activity Company
-
Ireland
Special purpose financing vehicle
(1)
(2)
certain shareholders of Hellenic Bank and Eurobank’s squeeze-out right to acquire the remaining shares of Hellenic Bank, the entity is included in the Company’s
consolidated financial statements with 100% holding percentage (note 23.2).
The following entities are not included in the consolidated financial statements due to immateriality:
(i) the Group’s special purpose financing vehicles and the related holding entities, which are dormant and/or are under liquidation:
Themeleion III Holdings Ltd, Themeleion IV Holdings Ltd, Themeleion Mortgage Finance Plc, Themeleion II Mortgage Finance Plc,
Themeleion III Mortgage Finance Plc, Themeleion IV Mortgage Finance Plc, Themeleion V Mortgage Finance Plc, Themeleion VI
Mortgage Finance Plc, Anaptyxi APC Ltd and Byzantium II Finance Plc.
(ii) the holding entity of Karta II Plc: Karta II Holdings Ltd.
(iii) dormant entity: Enalios Real Estate Development S.A.
(iv) entities controlled by the Group pursuant to the terms of the relevant share pledge agreements: Finas S.A., Rovinvest S.A. and
Promivet S.A.
In 2024, the changes in the Group structure due to: a) acquisitions and mergers of companies, b) sales and other corporate actions,
which resulted in loss of control, c) transactions with the non-controlling interests, which did not result in loss of control and d)
liquidations, are as follows:
(a) Reco Real Property A.D. Beograd, Serbia
In February 2024, the Bank signed an agreement for the sale of its participation interest of 100% in Reco Real Property A.D. Beograd
to a third party for a cash consideration of € 11.5 million. Following the above, the company was classified as held for sale and
measured by reference to the agreed consideration, being lower than its carrying amount. Accordingly, in the first quarter of 2024, a
fair value remeasurement loss of € 1.8 million for the company’s main asset, relating to investment property, was recognized in the
income statement line “Other income/(expenses)”. In June 2024, the sale of the company was completed, with an immaterial effect
on the Group’s income statement.
(b) Special purpose financing vehicle for the securitization of Bank’s loans and related real estate company
In the context of Project “Leon”, on 8 July 2024, the Bank proceeded to a securitization transaction through the special purpose
financing vehicle “LEON CAPITAL FINANCE DESIGNATED ACTIVITY COMPANY”. In September 2024, the Group disposed 95% of the
Notes to the Consolidated Financial Statements
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mezzanine and junior notes of the abovementioned securitization to a third party, therefore ceased to control the SPV and the related
real estate company “Leon Capital Estate Single Member S.A.” (note 20).
(c) Be Business Exchanges Single Member Societe Anonyme of Business Exchanges Networks and Accounting and Tax Services,
Greece
In September 2024, Εurobank Holdings acquired an additional participation interest of 1.99% in the company, therefore its holding in
the company’s share capital reached 100%. The transaction had an immaterial effect that was recognized directly in the equity
attributable to the shareholders of Eurobank Holdings. In October 2024, following the above transaction, the name of the company
was amended with the inclusion of the term “Single member”.
(d) Berberis Investments Ltd, Channel Islands
In 2024, the liquidation of the company was decided.
(e) ADEXA Real Estate Single Member S.A., Greece
In December 2024, the merger of the Bank and its wholly owned subsidiary ADEXA Real Estate Single Member S.A. was completed,
by absorption of the latter by the former
.
(f) Severdor Ltd, Cyprus and Insignio Single Member S.A., Greece
In December 2024, the Bank acquired 100% of the shares of Severdor Ltd for a cash consideration of ca. € 34 million. The main asset
of Severdor Ltd is the participation in the whole of the issued share capital of Insignio Single Member S.A., which in turn owns an
investment property as its main asset. In line with IFRS 3 requirements, the acquisition was accounted for as an asset acquisition
rather than a business combination, since substantially all of the fair value of the gross assets acquired was concentrated in a single
identifiable asset and no substantive business processes were acquired. Accordingly, no goodwill was recognized, whereas the
acquired property, along with other assets/other liabilities, were recognized in the Group’s balance sheet by allocating the purchase
price to the individual identifiable assets and liabilities on the basis of their relative fair values. Following the above treatment, at the
acquisition date the total assets of both companies amounted to ca. € 86 million, of which ca. € 75 million investment property, while
total liabilities amounted to ca. € 52 million, of which ca. € 44 million intragroup funding.
(g) Ezelco Holdings Ltd, Prunelox Holdings Ltd, Shanlo Holdings Ltd and Torki Holdings Ltd, Cyprus
In November 2024, the merger of Hellenic Bank with its above mentioned wholly owned subsidiaries was completed.
In 2023, the significant changes in the Group structure were as follows:
(i) Eurobank Direktna a.d., Serbia
On 2 November 2023, the Bank announced that the sale of its 70% shareholding in Eurobank Direktna a.d. to AIK Banka a.d. Beograd
was completed (note 30).
(ii) Acquisition of BNP Paribas Personal Finance Bulgaria by Eurobank Bulgaria A.D.
On 9 December 2022, Eurobank Holdings announced that it had reached an agreement for the acquisition of BNP Paribas Personal
Finance Bulgaria (the “Business”) by Eurobank’s subsidiary in Bulgaria, Eurobank Bulgaria A.D. (“Postbank”). The completion of the
transaction took place in May 2023, following the receipt of the approvals by all competent regulatory authorities. Further
information is provided in note 23.2 of the consolidated financial statements for the year ended 31 December 2023.
(iii) IMO Property Investments Sofia E.A.D., Bulgaria
During the second quarter of 2023, the sale of IMO Property Investments Sofia E.A.D. was considered highly probable, therefore the
company was classified as held for sale and measured by reference to the pre-agreed consideration with the third party, being the
lower of its carrying amount and fair value less costs to sell, in accordance with IFRS 5. Accordingly, a remeasurement/impairment
loss of € 23 million on real estate properties was recognised in the income statement. In May 2023, the sale of the Bank’s participation
interest of 100% in the company, along with the loan receivable from the company, was completed with a total cash consideration of
€ 15.5 million.
Notes to the Consolidated Financial Statements
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(iv) ADEXA Real Estate Single Member S.A., Greece
In June 2023, the Bank acquired 100% of the shares and voting rights of ADEXA Real Estate Single Member S.A. for a cash consideration
of € 50.8 million. In line with IFRS 3 requirements, the acquisition was accounted for as an asset acquisition rather than a business
combination, since substantially all of the fair value of the gross assets acquired was concentrated in a single identifiable asset and
no substantive business processes were acquired. Accordingly, no goodwill was recognized, whereas the acquired property, along
with other assets/other liabilities, were recognized in the Group’s balance sheet by allocating the purchase price to the individual
identifiable assets and liabilities on the basis of their relative fair values. Following the above treatment, at the acquisition date the
total assets of the company amounted to € 52.3 million, of which € 33.4 million refer to own used property and € 18.7 million refer
to investment property, while total liabilities amounted to € 1.5 million.
Significant restrictions on the Group's ability to access or use the assets and settle the liabilities of the Group
The Group does not have any significant restrictions on its ability to access or use its assets and settle its liabilities other than those
resulting from regulatory, statutory and contractual requirements, set out below:
●
Banking and other financial institution subsidiaries are subject to regulatory restrictions and central bank requirements in the
countries in which the subsidiaries operate. Such supervisory framework requires the subsidiaries to maintain minimum
capital buffers and certain capital adequacy and liquidity ratios, including restrictions to limit exposures and/or the transfer
of funds to the Company and other subsidiaries within the Group. Accordingly, even if the subsidiaries’ financial assets are
not pledged at an individual entity level, their transfer within the Group may be restricted under the existing supervisory
framework. As at 31 December 2024, the carrying amount of the Group financial institution subsidiaries’ assets and
liabilities, before intercompany eliminations, amounted to € 108.1 billion and € 96.2 billion, respectively, including Eurobank
S.A. (2023: € 85.6 billion and € 76.2 billion).
●
Subsidiaries are subject to statutory requirements mainly relating with the level of capital and total equity that they should
maintain, restrictions on the distribution of capital and special reserves, as well as dividend payments to their ordinary
shareholders.
●
Insurance subsidiaries, which are also subject to regulatory and statutory restrictions, hold financial assets of € 128 million,
(before intercompany eliminations) in order to satisfy their obligations to policy holders .
●
The Group uses its financial assets as collateral for repo and derivative transactions, secured borrowing from central and
other banks, issuances of covered bonds, as well as securitizations. As a result of financial assets’ pledge, their transfer within
the Group is not permitted. Information relating to the Group’s pledged financial assets is provided in notes 17, 29 and 41.
●
The Group is required to maintain mandatory and collateral deposits with central banks. Information for these deposits is
provided in note 15.
23.2 Consolidation of Hellenic Bank group
Hellenic Bank Public Company Ltd (“Hellenic Bank”), a financial institution based in Cyprus and listed in the Cyprus Stock Exchange,
was accounted for as a Group’s associate under the equity method from April 2023 until 30 June 2024 (note 24). The Hellenic Bank
group provides a wide range of banking and financial services, which include financing, investment and insurance services, custodian
and factoring services and the management and disposal of properties, predominantly acquired in debt satisfaction.
As a result of the agreements the Bank had entered into with certain of Hellenic Bank’s shareholders since August 2023, on 4 June
2024, the Bank announced that following the receipt of the relevant regulatory approvals, acquired an additional 26.1% holding in
Hellenic Bank (“Transaction”) for a total consideration of € 275.7 million. Following the aforementioned Transaction, pursuant to the
Takeover Bids Law of 2007 of the Republic of Cyprus, L.41(I)/2007 as amended (“Law”), the Bank also announced the submission of a
Mandatory Takeover Bid (“Takeover Bid”) to all shareholders of Hellenic Bank for the acquisition of up to 100% of the issued share
capital of Hellenic Bank. The consideration offered by the Bank was € 2.56 per share, paid in cash to all the shareholders who would
accept the Takeover Bid during the period from 1 July until 30 July 2024.
Furthermore, within June 2024, the Bank proceeded with the acquisition of an additional 0.18% holding in Hellenic Bank for a total
consideration of € 2 million, i.e. at a price of € 2.56 per share. Accordingly, as of 30 June 2024 the Bank’s participation percentage in
Hellenic Bank reached 55.48%.
Notes to the Consolidated Financial Statements
.
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Despite being the holder of over 50% of Hellenic Bank’s shares, until the expiration of the Takeover Bid acceptance period, and
pursuant to the Law, Eurobank as the offeror, its nominees and persons acting in concert with it could not be appointed to the Board
of Directors of Hellenic Bank, nor they could exercise, or procure the exercise of, the votes attaching to any shares they held in Hellenic
Bank. In addition, during the period when they became aware that a bid was imminent and until expiration of the Takeover Bid
acceptance period, the Board of Directors of Hellenic Bank could not without prior authorization of the general meeting of
shareholders, take any action which could result in the frustration of the Takeover Bid.
On 30 July 2024, the acceptance period for the Takeover Bid expired, therefore the restrictions imposed by the Law on the Bank’s
ability to exercise its voting rights no longer applied, and Eurobank, since then, has been able to exercise its rights in full. Based on
the above and considering the relevant provisions of the Cyprus’ legal framework including the Companies Law Cap. 113, and Hellenic
Bank’s articles of association in relation to the exercise of shareholders’ rights, including the timing for convening a general meeting
of the shareholders, it was assessed that the Group acquired control over Hellenic Bank group within July.
More specifically, in accordance with IFRS10, control exists when the investor has the practical ability to exercise its rights when
decisions for the relevant activities need to be made. In this context, based on legal and corporate provisions including the minimum
period required for the convocation of any shareholders’ meeting, 15 July 2024, was the last date that a general meeting of the
shareholders of Hellenic Bank could be convened and take place before the expiration of the Takeover Bid acceptance period, in
which the Bank would not have the ability to exercise its voting rights. From 16 July onwards, the Bank would be in a position to
exercise its rights freely should a shareholders’ meeting be convened, as it would not take place until after a minimum period of at
least 14 calendar days, when the restrictions would have already been lifted. Accordingly , Hellenic Bank and its subsidiaries were
included in the Company’s consolidated financial statements from the beginning of the third quarter of 2024 using the most recent
available published financial information. Any P&L from the date of consolidation up to the acquisition date was considered non-
significant.
The acquisition of Hellenic Bank was accounted for as a business combination using the purchase method of accounting, where
provisional values have been applied, as a fair value exercise is in progress by the Group to measure the identifiable assets acquired
and liabilities incurred and is expected to be completed no later than the one year initial measurement period from acquisition date,
given the size of the acquired group and related complexities. In accordance with the Group’s accounting policies, during this initial
measurement period the Group will retrospectively adjust the provisional amounts recognized at the acquisition date to reflect new
information obtained about facts and circumstances that existed as of the acquisition date.
Accordingly, the difference between (a) the measurement at acquisition date of fair values of the identifiable assets acquired and
liabilities assumed relating to 55.48% participation held in Hellenic Bank as of 30 June 2024 based on provisional values - see below -
amounting to € 868 million and (b) the carrying amount of the investment in the entity accounted for previously as an associate
amounting to € 862 million, resulted in ca. € 6 million gain, after taking into account the remeasurement loss of pre-existing interest
at its fair value of € 602 million, reflecting the price levels of the Hellenic Bank shares in the local stock exchange trading below the
entity’s book value . This result, along with the related acquisition costs of € 6 million have been recognized in the income statement
line “Other income/(expenses)”.
In particular, the acquisition balance sheet of Hellenic Bank group, based on its published interim financial statements for the six
month period ended 30 June 2024, including the provisional fair value adjustments recognized as updated in the fourth quarter, are
set out below:
Notes to the Consolidated Financial Statements
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Provisional
values on
acquisition
€ million
ASSETS
Cash and balances with central banks
5,390
Due from credit institutions
328
Loans and advances to customers
5,965
Investment securities
5,456
Property and equipment
171
Investment property
10
Intangible assets ⁽¹⁾
34
Other assets ⁽²⁾
167
Fair value adjustments (see below)
(81)
Total assets ⁽³⁾
17,439
LIABILITIES
Due to credit institutions
92
Due to customers
14,991
Debt securities in issue
437
of which intercompany balances with the Group
63
Other liabilities ⁽⁴⁾
320
Fair value adjustments (see below)
35
Total liabilities
15,875
Net assets of Hellenic Bank group acquired
1,565
Net assets attributable to non controlling interests
697
Net assets of Hellenic Bank group attributable to shareholders
868
Carrying amount of the investment in the Hellenic Bank group accounted for as an
associate as at 30 June 2024
862
Fair value of previously held interest in the Hellenic Bank group accounted for as an
associate as at 30 June 2024 ⁽⁵⁾
602
(1)
Group as the acquirer.
(2)
(3)
(4)
(5)
The above provisional fair value adjustments as of the acquisition that are presented within the balance sheet lines ‘Other assets’ and
‘Other liabilities’ of the Group, are analyzed in the table below per asset/liability category:
Notes to the Consolidated Financial Statements
.
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Provisional
fair value
adjustments
€ million
ASSETS
Loans and advances to customers
(17)
Investment securities
(84)
Intangible assets
6
Other assets (repossessed properties)
13
Total assets (81)
LIABILITIES
Debt securities in issue
31
Other Liabilities (contingent liabilities)
4
Total liabilities 35
As at 31 December 2024, the carrying amount of the provisional fair value adjustments, after the subsequent measurement of the
related assets and liabilities, as included in balance sheet lines ‘Other assets’ and ‘Other liabilities’ amounted to € 66 million (decrease)
and € 33 million (increase) respectively (notes 29 and 35).
In the first half of 2024, Hellenic Bank group recorded a net profit of € 189 million in accordance with its respective published financial
statements. In the same period, the Group’s share of results οf Hellenic Bank group that was accounted for under equity method
amounted to € 133 million income, as adjusted in the third quarter of 2024 (further information is provided in note 24 – investments
in associates and joint ventures). For the period from its acquisition until 31 December 2024, Hellenic Bank group contributed € 382
million to the Group's net revenues from international operations and € 141 million to its net profit attributable to shareholders
(further information is provided in note 44 “Operating segment information”).
On 7 August 2024, the Bank announced that after the final review of the Acceptance and Transfer Forms, the total percentage of
acceptance of the Takeover Bid reached 0.481%, giving Eurobank total participation of 55.962% in the issued share capital of Hellenic
Bank. For the additional stake acquired in the subsidiary, the difference between the fair value of the additional net assets acquired
(based on provisional values) amounting to ca. € 8 million and the consideration paid amounting to ca. € 6 million, including the
acquisition related costs, resulted in a gain of ca. € 2 million that was recorded directly in equity , as a transaction with the non-
controlling shareholders.
Furthermore, in November 2024, the Bank announced that it has entered into share purchase agreements with certain shareholders
of the Hellenic Bank, pursuant to which, it has agreed to acquire an additional total holding of 37.51% (154,832,195 shares) in the
entity, for a total consideration of ca. € 750 million, corresponding to € 4.843 per share. Specifically, Eurobank agreed to acquire a)
88,064,705 Hellenic Bank shares (21.33%) from Demetra Holdings Plc, for a consideration of ca. € 426.5 million, subject to the approval
of the General Assembly of the shareholders of the seller, b) 53,037,786 Hellenic Bank shares (12.848%) from Cyprus Union of Bank
Employees, the Cyprus Bank Employees Welfare Fund, the Cyprus Bank Employees Health Fund and the Financial Sector Provident
Fund, for a total adjusted consideration of ca. € 257 million and c) 13,729,704 Hellenic Bank shares (3.33%) from Logicom Services
Limited, for a consideration of ca. € 66.5 million.
As of 31 December 2024, the above transactions were subject to regulatory approvals and upon their completion, Eurobank’s total
holding in Hellenic Bank reaches 93.47%.
Moreover, in accordance with the provisions of the Takeover Bids Law of 2007 in Cyprus (“Law”), the Bank, following the completion
of the above-mentioned transactions has the obligation to proceed to a tender offer for the remaining outstanding shares of Hellenic
Bank for at least the same price i.e. € 4.843 per share, whereas pursuant to Article 36 of the same law it is able, after completion of
the said tender offer and given that it will hold more than 90% votes, to require all the holders of the remaining securities to sell those
securities. On those grounds, the Bank announced in November 2024 that it will exercise its squeeze-out right to acquire any
outstanding shares of Hellenic Bank and take all necessary steps for the delisting of Hellenic Bank's shares from the Cyprus Stock
Notes to the Consolidated Financial Statements
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Exchange. Effectively, the mandatory tender offer along with the squeeze-out right oblige counterparties to execute the acquisition
of all the remaining shares by the Bank and therefore the outcome is certain, thus the transaction is deemed as equivalent to a
forward contract that gives rise to a contractual obligation attached to the underlying shares.
The above transactions including the Bank’s squeeze-out right for the acquisition of the remaining shares of Hellenic Bank were
accounted for in the Group’s financial statements as forward contracts at a fixed price (€ 4.843 per share) to acquire shares in a
subsidiary that are held by non-controlling interests and were deemed to provide present access to the risks & rewards of ownership
of these shares to the Bank. Accordingly, as of November 2024 Hellenic Bank is included in the Group’s financial statements with
100% consolidation percentage. The difference between a) the carrying amount of non-controlling shareholders’ interest in Hellenic
Bank of ca. € 745 million that was derecognized and b) the financial liability of ca. € 880 million that was recognised to reflect the
Bank’s unconditional obligation to deliver cash to non-controlling shareholders for the acquisition of their Hellenic Bank’s shares,
resulted in a loss of ca. € 136 million, including acquisition-related costs that were recorded directly in equity.
Post balance sheet event
On 11 February 2025, the Bank announced that following the receipt of the relevant regulatory approvals, it completed the acquisition
of the additional holding of 37.51% in Hellenic Bank, as per the aforementioned agreements of the Bank with certain of Hellenic
Bank’s shareholders in November 2024. Following that and pursuant to the provisions of the Takeover Bids Law in Cyprus, the Bank
also announced the submission of a Mandatory Takeover Bid for the acquisition of up to 100% of the issued share capital of Hellenic
Bank (“Takeover Bid”). Further to the above, on 6 March 2025 the Bank announced that on 5 March 2025 the Cyprus Securities and
Exchange Commission (the “CySEC”) approved the Takeover Bid Document and authorised its publication. Pursuant to the Takeover
Bid Document, the consideration offered to the shareholders of Hellenic Bank who will accept the Takeover Bid is € 4.843 per share
paid in cash. The acceptance period of the Takeover Bid commences on 11th March 2025 and ends on 9th April 2025.
Agreement with CNP Assurances on CNP Cyprus Insurance Holdings
On 9 July 2024, Hellenic Bank and CNP Assurances signed a Sales and Purchase Agreement for the acquisition of its subsidiary CNP
Cyprus Insurance Holdings Limited, (the “Transaction”) for a total consideration that is expected to be € 182 million.
CNP Cyprus Insurance Holdings Limited group, which consists of amongst others: CNP Cyprialife Ltd, CNP Asfalistiki Ltd, CNP Zois SA
and CNP Cyprus Properties Ltd., is a leading insurance operator in Cyprus. It offers life and general insurance products and services
through a large network of independent agents in Cyprus. For the year ended 31 December 2023, it had c. 330 employees and
generated € 236 million of gross premiums. In terms of the potential profit contribution towards the Group going forward, CNP Cyprus
entities had a cumulative profit of c. € 21 million for the year ended 31 December 2023. CNP Cyprus Insurance Holdings Limited has
also presence in the Greek market.
On 28 November 2024, the Hellenic Bank announced that the Commission for the Protection of Competition, in its meeting held on
27 November 2024, approved the concentration arising from the Transaction . The Transaction is also subject to other regulatory
approvals and it is expected to be completed within the first quarter of 2025.
23.3 Initiation of the merger process between Eurobank Ergasias Services and Holdings S.A. and Eurobank S.A.
On 19 December 2024, Eurobank Holdings announced that its Board of Directors decided the initiation of the merger process of
Eurobank Holdings with the Bank through absorption of the former by the latter, in order that operational efficiencies and a leaner
group structure be achieved. The merger will be implemented with a combined application of Law 4601/2019 and article 16 of Law
2515/1997 and 31 December 2024, was defined as the merger transformation balance sheet date.
Upon the completion of the merger a) Eurobank Holdings ceases to exist and its shareholders become shareholders of the Bank with
the same stakes and the same number of shares, receiving the entirety of Bank’s newly issued shares and b) the Bank, that will retain
its banking license, substitutes Eurobank Holdings as universal successor in the totality of its assets and liabilities transferred to the
Bank, as they appear in the transformation balance sheet of Eurobank Holdings and as it is formulated until the completion of the
merger.
Before the completion of the merger, the shares of the Bank will be listed in the Athens Exchange and upon its completion, they will
be distributed to Eurobank Holdings shareholders in exchange of the Eurobank Holdings shares they possess at a ratio of one newly
issued share of the Bank for one existing share of Eurobank Holdings.
Notes to the Consolidated Financial Statements
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The completion of the merger is subject to all necessary by Law approvals, including the approval of the shareholders’ General
Meeting of both merging companies as well as the receipt of all the necessary approvals of the competent Authorities.
24. Investments in associates and joint ventures
.
.
As at 31 December 2024, the carrying amount of the Group’s investments in associates and joint ventures amounted to € 203 million
(2023: € 541 million). The following is the listing of the Group’s associates and joint ventures as at 31 December 2024:
.
Name
Country of
incorporation
Line of business
Group's
share
Femion Ltd
Special purpose investment vehicle
66.45
Global Finance S.A.
Investment financing
33.82
Odyssey GP S.a.r.l.
Special purpose investment vehicle
20.00
Eurolife FFH Insurance Group Holdings S.A.
Holding company
20.00
Alpha Investment Property Commercial Stores S.A.
Real estate
30.00
Peirga Kythnou P.C.
Real estate
50.00
doValue Greece Loans and Credits Claim Management S.A.
Loans and Credits Claim Management
20.00
Perigenis Business Properties S.A.
Real estate
18.90
Note: In the first half of 2024, in the context of Solar securitization (note 20), the Group along with the other Greek systemic banks established “REOCO SOLAR
S.A.” with its holding percentage amounting to 23.4%. The company’s operating activities are expected to commence upon the completion of the relevant
securitization transaction.
Omega Insurance and Reinsurance Brokers S.A. in which the Group holds 26.05% is not accounted under the equity method in the
consolidated financial statements. The Group is not represented in the Board of Directors of the company, therefore does not exercise
significant influence over it.
Femion Ltd. is accounted for as a joint venture of the Group based on the substance and the purpose of the arrangement and the
terms of the shareholder’s agreement which require the unanimous consent of the shareholders for significant decisions and establish
shared control through the equal representation of the shareholders in the management bodies of the company.
Perigenis Business Properties S.A. is accounted for as an associate of the Group based on the Bank’s representation in the Board of
Directors and the decision-making process as prescribed in the company’s articles of association.
Hellenic Bank Public Company Ltd, Cyprus
Hellenic Bank Public Company Ltd (“Hellenic Bank”), was accounted for as a Group’s associate under the equity method from April
2023 until 30 June 2024. During June 2024, the Group acquired an additional holding of 26.28% in Hellenic Bank, and as a result its
participation percentage in the company’s share capital reached 55.48%. As of 30 June 2024, the Group assessed that it still had not
obtained control over the company, therefore Hellenic Bank was accounted for as an associate under the equity method of accounting
(further information is provided in note 23.2).
The difference between: a) the additional 26.28% share of the fair value of the Hellenic Bank group’s net identifiable assets,
amounting to € 383.3 million and b) the cost of the additional Bank’s holding in the entity amounting € 277.7 million, resulted in a
gain of € 99.4 million net of € 6.2 million acquisition related costs that was recognized in the income statement line “Other
income/(expenses)” (31 December 2023: € 111 million gain, net of € 3 million acquisition related costs, following the initial application
of the equity accounting).
In the period that ended on 30 June 2024, the last date that Hellenic Bank group was accounted for as an associate, the share of its
results referred to the period from 30 September 2023 to 31 March 2024, as they were based on its available published financial
information. Accordingly, in the third quarter of 2024, the share of results of the Hellenic Bank group has been adjusted to include
the share of results for the second quarter of 2024 based on its published financial information. As a result, in the year ended 31
December 2024, the Group’s share of results of the Hellenic Bank group presented in the income statement line “Share of results of
associates and joint ventures”, amounted to € 133 million gain (31 December 2023: € 58 million gain).
Associates and joint ventures material to the Group
With regards to the Group’s associates and joint ventures, Eurolife FFH Insurance Group Holdings S.A. and doValue Greece Loans and
Credits Claim Management S.A. are considered individually material for the Group. Financial information regarding those entities is
provided in the tables below:
Notes to the Consolidated Financial Statements
.
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Eurolife FFH Insurance Group Holdings S.A.
2024
2023
€ million
€ million
Current assets
3,544
3,387
Non-current assets
290
353
Total assets
3,834
3,740
Current liabilities
389
380
Non-current liabilities
2,783
2,683
Total liabilities
3,172
3,063
Equity
662
677
Group’s carrying amount of the investment
132
135
Operating income
211
223
Net profit
90
112
Other comprehensive income
(46)
(18)
Total comprehensive income
45
94
Dividends paid to the Group
12
7
doValue Greece Loans and Credits Claim Management S.A.
2024
2023
€ million
€ million
Current assets
212
153
Non-current assets
309
323
Total assets
521
476
Current liabilities
117
157
Non-current liabilities
86
60
Total liabilities
203
217
Equity
318
259
Group's share in equity
64
52
Goodwill and other adjustments
(6)
(4)
Group’s carrying amount of the investment
58
48
Operating income
110
79
Net profit
56
57
Total comprehensive income
56
57
Dividends paid to the Group
-
5
Note:
Goodwill and other adjustments comprise a) € 6 million Goodwill included in the carrying amount of the investment, and b) € -12 million adjustment from
the elimination of the Group’s share of the associate’s income relating to upstream transactions with the Bank, of which € 2 million (loss) was recognised in
2024. The Group’s share of the associate’s results after the above adjustments, including cut off differences, amounts to € 10 million income (2023: € 7.5 million
income).
The carrying amount, in aggregate, of the Group's joint ventures as at 31 December 2024 amounted to € 4 million (2023: € 4 million).
The Group’s share of profit and loss and total comprehensive income of the above entities was immaterial (2023: immaterial).
Notes to the Consolidated Financial Statements
.
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The carrying amount, in aggregate, of the Group's associates excluding Eurolife FFH Insurance Group Holdings S.A. and doValue
Greece Loans and Credits Claim Management S.A. which is presented above (i.e. Global Finance S.A., Odyssey GP S.a.r.l., and Perigenis
Business Properties S.A.) as at 31 December 2024 amounted to € 9 million (2023: € 9 million). The Group’s share of profit and loss
and total comprehensive income of the above entities was immaterial (2023: immaterial).
The Group has not recognized losses in relation to its interest in its joint ventures, as its share of losses exceeded its interest in them
and no incurred obligations exist or any payments were performed on behalf of them. For the year ended 31 December 2024, the
unrecognized share of losses for the Group’s joint ventures amounted to € 0.1 million (2023: € 0.1 million). The cumulative amount
of unrecognized share of losses for the joint ventures amounted to € 4 million (2023: € 4 million).
As at 31 December 2024, the Group has no unrecognized commitments in relation to its participation in joint ventures nor any
contingent liabilities regarding its participation in associates or joint ventures, which could result to a future outflow of cash or other
resources.
The Group’s associate Eurolife FFH Insurance Group Holdings S.A is subject to regulatory and statutory restrictions and is required to
maintain sufficient capital to satisfy its insurance obligations.
Except as described above, no significant restrictions exist (e.g. resulting from loan agreements, regulatory requirements or other
contractual arrangements) on the ability of associates or joint ventures to transfer funds to the Group either as dividends or to repay
loans that have been financed by the Group.
25. Structured Entities
The Group is involved in various types of structured entities, such as securitization vehicles, mutual funds and private equity funds.
A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who
controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means
of contractual arrangements. A structured entity often has restricted activities, a narrow well-defined objective, insufficient equity to
permit it to finance its activities without subordinated financial support and financing in the form of multiple contractually linked
instruments to investors that create concentrations of credit or other risks.
An interest in a structured entity refers to contractual and non-contractual involvement that exposes the Group to variability of
returns from the performance of the structured entity. Examples of interest in structured entities include the holding of debt and
equity instruments, contractual arrangements, liquidity support, credit enhancement, residual value.
Structured entities may be established by the Group or by a third party and are consolidated when the substance of the relationship
is such that the structured entities are controlled by the Group, as set out in note 2.2.1(i). As a result of the consolidation assessment
performed, the Group has involvement with both consolidated and unconsolidated structured entities, as described below.
Consolidated structured entities
The Group, as part of its funding activity, enters into securitization transactions of various classes of loans (corporate, small and
medium enterprise, mortgage, consumer loans, credit card and bond loans), which generally result in the transfer of the above assets
to structured entities (securitization vehicles), which, in turn issue debt securities held by investors and the Group’s entities. The
Group monitors the credit quality of the securitizations’ underlying loans, as well as the credit ratings of the debt instruments issued,
when applicable, and provides either credit enhancements to the securitization vehicles and/or transfers new loans to the pool of
their underlying assets, whenever necessary, in accordance with the terms of the relevant contractual arrangements in force.
A listing of the Group’s consolidated structured entities is set out in note 23.
As at 31 December 2024, the face value of debt securities issued by the securitizations sponsored by the Group amounted to € 2,724
million, of which € 2,171 million were held by the Bank (2023: € 3,959 million, of which € 3,406 million were held by the Bank) (notes
20 and 34).
The Group did not provide any non contractual financial or other support to these structured entities, where applicable, and currently
has no intention to do so in the foreseeable future.
Notes to the Consolidated Financial Statements
.
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Unconsolidated structured entities
The Group enters into transactions with unconsolidated structured entities, which are those not controlled by the Group, in the
normal course of business, in order to provide fund management services or take advantage of specific investment opportunities.
Moreover, the Group in the context of its NPE reduction targets has entered into the securitization of various classes of primarily
NPE loan portfolios originated or acquired by the Group through the issue of senior, mezzanine and junior notes (note 20).
Group managed funds
The Group establishes and manages structured entities in order to provide customers, either retail or institutional, with investment
opportunities. Accordingly, through its subsidiaries Eurobank Asset Management Mutual Fund Mngt Company S.A. and Eurobank
Fund Management Company (Luxembourg) S.A., it is engaged with the management of different types of mutual funds, including
fixed income, equities, funds of funds and money market.
Additionally, the Group is entitled to receive management and other fees and may hold investments in such mutual funds for own
investment purposes as well as for the benefit of its customers.
The Group is involved in the initial design of the mutual funds and, in its capacity as fund manager, takes investment decisions on the
selection of their investments, nevertheless within a predefined, by relevant laws and regulations, decision making framework.
Τherefore, the Group has determined that it has no power over these funds.
Furthermore, in its capacity as fund manager, the Group primary acts as an agent in exercising its decision making authority over
them. Based on the above, the Group has assessed that it has no control over these mutual funds and as a result does not consolidate
them. The Group does not have any contractual obligation to provide financial support to the managed funds and does not guarantee
their rate of return.
Non-Group managed funds
The Group purchases and holds units of third party managed funds including mutual funds, private equity and other investment funds.
Securitizations
The Group has interests in unconsolidated securitization vehicles by investing in residential mortgage backed and other asset-backed
securities issued by these entities.
The table below sets out the carrying amount of the Group’s interests in unconsolidated structured entities, recognized in the
consolidated balance sheet as at 31 December 2024, representing its maximum exposure to loss in relation to these interests.
Information relating to the total income derived from interests in unconsolidated structured entities, recognized either in profit or
loss or other comprehensive income during 2024 is also provided (i.e. fees, interest income, net gains or losses on revaluati on and
derecognition):
31 December 2024
Unconsolidated structured entity type
Securitizations
Group managed
funds
Non- Group
managed funds
Total
€ million
€ million
€ million
€ million
Group's interest- assets
Loans and advances to customers
4,387
-
-
4,387
Investment securities
2,008
89
113
2,210
Other Assets
-
2
-
2
Total
6,395
91
113
6,599
Total comprehensive income from Group interests
158
77
3
238
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
Unconsolidated structured entity type
Securitizations
Group managed
funds
Non- Group
managed funds
Total
€ million
€ million
€ million
€ million
Group's interest- assets
Loans and advances to customers
4,454
-
-
4,454
Investment securities⁽¹⁾
1,517
85
28
1,630
Other Assets
-
2
-
2
Total
5,971
87
28
6,086
Total comprehensive income from Group interests
123
62
0
185
(1)
It includes asset-backed securities held by Group entities from third-party issuances; comparative information has been adjusted to align with the current
year’s presentation.
For the year ended 31 December 2024, total comprehensive income related to the Group’s interests from securitizations mainly
includes: (i) € 147.3 million interest income of debt securities retained by the Group measured at amortized cost, at FVOCI and FVTPL,
(ii) € 3.1 million from gains or losses on revaluation recognized in other comprehensive income and (iii) € 7.4 million gain on
revaluation of mezzanine securitization notes. Total income from Group interests in relation to Group managed funds consists of: (i)
€ 70.2 million income referring to management and related fees for the Group managed funds and (ii) € 7.3 million gains or losses on
revaluation or from sale of the Group’s holding in funds recognized in profit or loss. In addition, total income in relation to non-Group
managed funds consists mainly of gains or losses on revaluation or from sale of the Group’s holding in funds and has been recognized
in profit or loss.
As at 31 December 2024, the total assets of funds under the Group’s management amounted to € 5.9 billion (2023: € 4.3 billion).
For the securitization notes included in the balance sheet line “Loans and advances to customers”, referring to the senior, mezzanine
and junior notes of the securitizations of loans originated by Group entities (note 20), the notional amount of total issuances by the
unconsolidated securitization vehicles amounted to € 15.2 billion (2023: € 14.0 billion). As at 31 December 2024 and 2023, for the
securitization notes included in the balance sheet line “Investment securities” the Group did not hold a significant position of the
notional amount of total issuances by the unconsolidated securitization vehicles.
Notes to the Consolidated Financial Statements
.
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26. Property and equipment
31 December 2024
Land, buildings,
leasehold
improvements
Furniture,
equipment,
motor
vehicles
Computer
hardware,
software
Right of use assets
(RoU)⁽¹⁾
Total
€ million
€ million
€ million
€ million
€ million
Cost:
Balance at 1 January
697
191
316
338
1,542
Arising from acquisitions (note 23)
148
54
51
15
268
Transfers
21
(3)
3
-
21
Transfers from/to repossessed assets
2
(1)
-
-
1
Additions
26
21
26
15
88
Disposals, write-offs and adjustment to RoU ⁽¹⁾
(16)
(7)
(2)
7
(18)
Impairment
-
-
(5)
-
(5)
Balance at 31 December
878
255
389
375
1,897
Accumulated depreciation:
Balance at 1 January
(220)
(140)
(241)
(168)
(769)
Arising from acquisitions (note 23)
(1)
(45)
(42)
(8)
(96)
Transfers
0
1
-
-
1
Disposals, write-offs and adjustment to RoU ⁽¹⁾
11
7
2
3
23
Charge for the year
(15)
(11)
(21)
(34)
(81)
Balance at 31 December
(225)
(188)
(302)
(207)
(922)
Net book value at 31 December
653
67
87
168
975
31 December 2023
Land, buildings,
leasehold
improvements
Furniture,
equipment,
motor
vehicles
Computer
hardware,
software
Right of use assets
(RoU)⁽¹⁾
Total
€ million
€ million
€ million
€ million
€ million
Cost:
Balance at 1 January
676
206
526
328
1,736
Arising from acquisitions
33
1
1
2
37
Transfers
3
-
14
-
17
Additions
28
15
11
11
65
Disposals, write-offs and adjustment to RoU⁽¹⁾
(6)
(21)
(217)
20
(224)
Impairment
(1)
-
(9)
-
(10)
Discontinued operations
(36)
(10)
(10)
(23)
(79)
Balance at 31 December
697
191
316
338
1,542
Accumulated depreciation:
Balance at 1 January
(221)
(156)
(443)
(141)
(961)
Arising from acquisitions
-
(1)
-
-
(1)
Transfers
1
0
(1)
-
0
Disposals, write-offs and adjustment to RoU⁽¹⁾
4
20
217
2
243
Charge for the year
(13)
(8)
(20)
(37)
(78)
Discontinued operations
9
5
6
8
28
Balance at 31 December
(220)
(140)
(241)
(168)
(769)
Net book value at 31 December
477
51
75
170
773
(1)
The respective lease liabilities are presented in “other liabilities” (note 35). Adjustment to RoU refers to termination, modifications and remeasurements of
RoU. It includes the remeasurement from revised estimates of the lease term during the year, considering all facts and circumstances that affect the Group’s
housing needs.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
As at 31 December 2024, the RoU assets amounting to € 168 million (31 December 2023: € 170 million) refer to leased office and
branch premises, ATM locations, residential properties of € 159 million (31 December 2023: € 165 million) and motor vehicles of € 9
million (31 December 2023: € 5 million).
Leasehold improvements relate to premises occupied by the Group for its own activities.
27. Investment property
The Group applies the fair value model regarding the measurement of Investment Property according to IAS 40 “Investment
property”.
The movement of investment property is as follows:
2024
2023
€ million
€ million
Balance at 1 January
1,357
1,410
Additions
8
4
Arising from acquisition (note 23)
84
19
Transfers from/to repossessed assets
33
2
Other transfers
(20)
(3)
Disposals
(41)
(80)
Net gain/(loss) from fair values adjustments
9
6
Held for sale/Discontinued operations
(26)
(3)
Additions and adjustment to RoU
-
2
Balance at 31 December
1,404
1,357
As at 31 December 2024, RoU assets that meet the definition of investment property amount to € 17 million (31 December 2023: €
16 million). The respective lease liabilities are presented in “other liabilities” (note 35).
Changes in fair values of investment property are recognized as gains/(losses) in profit or loss and included in the "Other
Income/(expense)" (note 10). All gains/(losses) are unrealized.
During the year ended 31 December 2024, an amount of € 90 million (2023: € 89 million) was recognized as rental income from
investment property in income from non banking services (note 8).
The main classes of investment property have been determined based on the nature, the characteristics and the risks of the Group’s
properties. The fair value measurements of the Group’s investment property, which are categorized within level 3 of the fair value
hierarchy, are presented in the below table.
2024
2023
€ million
€ million
Residential
4
6
Commercial
1,373
1,320
Land Plots
27
30
Industrial
-
1
Total
1,404
1,357
The basic methods used for estimating the fair value of the Group’s investment property are the income approach (income
capitalization/discounted cash flow method), the comparative method and the cost approach, which are also used in combination
depending on the class of property being valued.
The discounted cash flow (DCF) method is the primary method used for estimating the fair value of the Group’s investment property
and is used mainly for the commercial class of investment property but also for other classes of investment property to a large extent,
in conjunction with other methods. Under DCF method, the fair value is calculated through the projection of a series of cash flows
using explicit assumptions regarding the benefits and liabilities of ownership (income and operating costs, vacancy rates, income
growth), including the residual value anticipated at the end of the projection period. To this projected cash flows series, an
appropriate, market-derived discount rate is applied to establish its present value.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Under the income capitalization method, also used for the commercial class of investment property, a property’s fair value is
estimated based on the normalized net operating income generated by the property, which is divided by the capitalization rate (the
investor's rate of return).
The comparative method is used for the residential, commercial and land plot classes of investment property. Fair value is estimated
based on data for comparable transactions, by analyzing either real transaction prices of similar properties, or by asking prices after
performing the necessary adjustments.
The cost approach is used for estimating the fair value of the residential and the industrial classes of the Group’s investment property.
This approach refers to the calculation of the fair value based on the cost of reproduction/replacement (estimated construction costs),
which is then reduced by an appropriate rate to reflect depreciation.
The Group’s investment property valuations are performed taking into consideration the highest and best use of each asset that is
physically possible, legally permissible and financially feasible.
The main method used to estimate the fair value of Group’s Investment property portfolio as at 31 December 2024, is the discounted
cash flow method. Significant unobservable inputs used in the fair value measurement of the relevant portfolio are the rental income
growth and the discount rate. Increase in rental income growth would result in increase in the carrying amount while an increase in
the discount rate would have the opposite result. The discount rate used ranges from 7% to 12%. As at 31 December 2024, an increase
or decrease of 5% in the discount rate used in the DCF analysis, would result in a downward or upward adjustment of the carrying
value of the respective investment properties by € 33 and € 35.4 million, respectively.
In the context of properties’ valuation, sustainability and environmental matters encompass a wide range of physical, climate change,
social, corporate responsibility and economic factors, including key environmental risks such as flooding, energy efficiency, as well as
matters of design, configuration, accessibility and legislation, that impact their value. The Group is gradually upgrading its real-estate
portfolio, aiming to reduce its environmental footprint and shift towards high-end, modern, environmentally friendly buildings, given
that such buildings are in high demand. In addition, the Group has introduced “green” certifications to its real estate assets, validating
their sustainability value and at the same time maximizing their return and market value. On the other hand, environmental risks are
taken into account in properties’ valuation in cases where there is an indication that the valued property is subject to physical risks,
such as floods, is contaminated or is adversely affected by existing environmental laws/regulations.
On an annual basis, the Group aims at the evaluation of an increased number of selected properties included in the investment
property portfolio for their gradual certification in accordance with international standards, while actively investing to improve the
energy efficiency of its properties’ portfolio and its environmental profile.
Notes to the Consolidated Financial Statements
.
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28. Intangible assets
As at 31 December 2024, the carrying amount of intangible assets was € 415 million (31 December 2023: € 334 million), comprising
€ 373 million computer software, which refer to purchased and developed software, and € 42 million goodwill (31 December 2023 €
44 million).
The table below presents the movement of computer software:
2024
2023
€ million
€ million
Cost:
Balance at 1 January
515
658
Arising from acquisitions (note 23)
107
1
Transfers
(2)
(14)
Additions
117
83
Disposals and write-offs
(13)
(142)
Impairment
(13)
(8)
Discontinued operations
(63)
Balance at 31 December
711
515
Accumulated amortisation:
Balance at 1 January
(225)
(362)
Arising from acquisitions (note 23)
(74)
Transfers
-
1
Amortisation charge for the year
(51)
(42)
Disposals and write-offs
12
142
Discontinued operations
-
36
Balance at 31 December
(338)
(225)
Net book value at 31 December
373
290
Impairment testing of goodwill
As at 31 December 2024, the carrying amount of goodwill in the Group is € 42 million, arising from the acquisition of BNP Paribas
Personal Finance Bulgaria by Eurobank Bulgaria A.D in May 2023, and is attributed to the Group’s International, Bulgaria segment.
For the purpose of impairment testing, goodwill is fully allocated to the Consumer Lending business of Eurobank Bulgaria A.D, being
the CGU that is expected to benefit from the abovementioned business combination. No impairment losses of the CGU to which
goodwill has been allocated were identified during the year ended 31 December 2024.
In particular, the recoverable amount of the CGU was determined to be its fair value less costs of disposal, calculated by discounting
the future cash flows expected to be generated from the continuing use of the CGU’s assets and their ultimate disposal. The CGU’s
future cash flows for a three-year period are in accordance with the officially approved three-year business plan, which already takes
into account factors such as expected market growth, inflation, as well as expectations of future outcomes taking into account past
experience. A long-term growth rate (terminal value growth rate) was used to extrapolate cash flows beyond the three-year horizon.
The terminal value growth rate is determined by considering factors such as the expected long-term inflation rate and real -GDP
growth rate in Bulgaria. The discount rate applied is constructed using the Capital Assets Pricing Model methodology (CAPM), based
on the rate of 10-year Bulgarian government bonds, adjusted for a risk premium to reflect both the increased risk of investing in
equities generally and the systematic risk of the specific CGU. The discounting of the budgeted cash flows and terminal values is done
on an after-tax cash flow basis.
The key assumptions used in the calculation of the CGU’s fair value less costs of disposal were as follows:
Budgeted operating income growth
(average for the 3-year period)
Discount Rate
Growth rate beyond
initial cash flow
Key assumption value
9.0%
14.5%
2.0%
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Cost of disposal is calculated as a percentage of the CGU’s assets and is based on observed averages from global industry practices
(2-4% range).
The values assigned to the above key assumptions represent Management’s assessment of future trends in the relevant sector and
have been based on historical data from both external and internal sources.
The recoverable amount of the CGU to which goodwill has been allocated is sensitive to the above key assumptions. A decrease in
the operating income by 5% or an increase in the discount rate of 1% are considered reasonably possible changes in key assumptions.
If the aforementioned changes occur, goodwill of the remaining CGU will continue to be recoverable.
The key assumptions described above may change as economic and market conditions change. The Group estimates that reasonably
possible changes in these assumptions would not cause the recoverable amount of either CGU to decline below the carrying amount.
29. Other assets
2024
2023
€ million
€ million
Receivable from Deposit Guarantee and Investment Fund
70
286
Repossessed properties and relative prepayments
541
509
Pledged amount for a Greek sovereign risk financial guarantee
242
236
Balances under settlement⁽¹⁾
55
53
Deferred costs and accrued income
144
85
Other guarantees
262
215
Income tax receivable⁽²⁾
98
58
Insurance and reinsurance contract assets (note 36)
30
-
Other assets⁽³⁾
253
325
Total
1,695
1,767
(1)
Includes settlement balances with customers and brokerage activity.
(2)
Includes withholding taxes, net of provisions.
(3)
Includes provisional fair value adjustments for Hellenic Bank group assets (decrease) of ca. € 66 million (note 23.2).
Pursuant to Law 4370/2016 as in force, in December 2024, an amount of € 215 million was refunded to the Bank by the Hellenic
Deposit and Investment Guarantee Fund (HDIGF) referring to the receivable for the “Supplementary Deposit Cover Fund”.
As at 31 December 2024, other assets net of provisions, amounting to € 253 million include, among others, receivables related to (a)
prepayments to suppliers, (b) public entities, (c) property management activities (d) legal cases and e) the sale of the Bank’s Merchant
Acquiring Business in 2022 .
30. Disposal groups classified as held for sale and discontinued operations
2024
2023
€ million
€ million
Assets of disposal groups
Real estate properties
33
37
Loans portfolios (note 20)
46
169
IMO Property Investments Bucuresti S.A.
12
-
Total
91
206
Liabilities of disposal groups
IMO Property Investments Bucuresti S.A.
2
-
Other liabilities related to loans portfolios (notes 20 and 35)
1
1
Total
3
1
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Real estate properties
In the context of its strategy for the active management of its real estate portfolio (repossessed, investment properties and own used
properties), the Group has gradually classified as held for sale certain pools of real estate assets of total remaining carrying amount
ca. € 33 million as at 31 December 2024 (31 December 2023: € 37 million), after their remeasurement in accordance with the IFRS 5
requirements.
The Group remains committed to its plan to sell the aforementioned assets, which are gradually being disposed, and undertakes all
necessary actions towards this direction.
The above non-recurring fair value measurements were categorized as Level 3 of the fair value hierarchy due to the significance of
the unobservable inputs used, with no change occurring up to 31 December 2024.
IMO Property Investments Bucuresti S.A., Romania
In June 2024, the sale of IMO Property Investments Bucuresti S.A. was considered highly probable, therefore the company was
classified as held for sale in accordance with IFRS 5. Accordingly, in the second quarter of 2024, a remeasurement/impairment loss of
€ 9.4 million on real estate properties was recognised in the income statement line “Other impairments, risk provisions and related
costs”.
Discontinued operations
In the year ended 31 December 2024, an additional provision of € 10 million (€ 7.1 million net of tax) was recognized, in relation to
the sale of a Bank’s former subsidiary, previously presented as a discontinued operation, based on specific indemnity clauses in the
relevant Sale Purchase Agreement.
Eurobank Direktna a.d. disposal group
As of 31 March 2023, the assets of Eurobank Direktna a.d. and the associated liabilities, which formed part of the share purchase
agreement signed by the Bank with AIK Banka a.d. Beograd, were classified as held for sale and presented as a discontinued operation.
The subsidiary was the major part of the Group’s operations in Serbia, which are presented in the International segment.
Until the completion of the sale, the net loss of Eurobank Direktna a.d. disposal group for 2023 amounted to € 47 million, of which €
12 million was attributable to non controlling interests.
On 2 November 2023, following the receipt of the approvals by all competent regulatory authorities, the
sale of the Group’s
shareholding in Eurobank Direktna to AIK Banka a.d. Beograd was completed for a cash consideration of € 188.7 million, net of related
costs. Following the remeasurement losses of € 63.5 million recognized until 31 October 2023, in accordance with IFRS 5 requirements
the resulting loss from the sale amounted to € 123 million before tax, including the recyclement to the income statement of € 124
million cumulative losses (mainly currency translation differences), previously recognized in other comprehensive income.
31. Due to central banks
In December 2024, the Group fully repaid its secured borrowing under the TLTRO III refinancing program of the European Central
Bank (ECB) (31 December 2023: € 3.7 billion outstanding principal under TLTRO III program).
32. Due to credit institutions
2024
2023
€ million
€ million
Secured borrowing from credit institutions⁽¹⁾
1,952
2,428
Borrowings from international financial and similar institutions
457
379
Deposits from banks received as collateral⁽¹⁾
118
87
Current accounts and settlement balances with banks
104
79
Interbank takings
169
105
Total
2,800
3,078
(1)
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Borrowings from international financial and similar institutions include borrowings from European Investment Bank, European Bank
for Reconstruction and Development and other similar institutions.
33. Due to customers
2024
2023
€ million
€ million
Savings and current accounts
49,993
37,238
Term deposits
28,604
20,209
Carrying amount
78,597
57,447
Fair value changes of deposits in portfolio hedging of interest rate risk
(4)
(5)
Total
78,593
57,442
For the year ended 31 December 2024, due to customers for the Greek and International operations amounted to € 43,287 million
and € 35,306 million, respectively (2023: € 39,950 million and € 17,492 million, respectively).
34. Debt securities in issue
2024
2023
€ million
€ million
Securitisations
554
555
Subordinated notes (Tier 2)
1,758
1,296
Medium-term notes (EMTN)
4,664
2,905
Credit linked notes
80
-
Total
7,056
4,756
Subordinated Tier 2 notes
In January 2024, the Company announced the issuance of a € 300 million subordinated Tier II debt instrument which matures in April
2034, is callable at par in April 2029 offering a coupon of 6.25% per annum and is listed on the Luxembourg Stock Exchange’s Euro
MTF market. On the same date, the Bank issued a subordinated instrument of equivalent terms, held by the Company. The proceeds
from the issue support Eurobank Holding’s Group strategy to ensure ongoing compliance with its total capital adequacy ratio
requirements and are used for the Bank’s general funding purposes. Further information about the issue is provided in the relevant
announcement published in the Company’s website on 19 January 2024.
As at 31 December 2024, Tier II subordinated instruments include notes issued by Hellenic Bank with nominal value € 200 million, out
of which € 33 million were held by Group entities. The notes were issued in March 2023 at par offering a coupon of 10.25% per
annum, mature in 14 June 2033, are callable at par for a 3-month period commencing on 14 March 2028 and are listed on the
Luxembourg Stock Exchange’s Euro MTF market.
Medium-term notes (EMTN)
In March 2024, the Bank exercised its call option on senior preferred notes of face value of € 500 million.
In April 2024, the Company announced that Eurobank S.A. successfully completed the issuance of € 650 million senior preferred notes.
The bond matures on 30 April 2031, is callable at par on 30 April 2030 offering a coupon of 4.875 % per annum and is listed on the
Luxembourg Stock Exchange’s Euro MTF market. The proceeds from the issue support Eurobank Group’s strategy to ensure ongoing
compliance with its Minimum Required Eligible Liabilities (MREL) requirement and are used for Eurobank’s general funding purposes.
Further information about the issue is provided in the relevant announcement published in the Company’s website on 24 April 2024.
In July 2024, the Company announced that Eurobank S.A. successfully completed a tap issue (“New Bonds”) to the April 2024 issuance
of € 650 million fixed rate senior preferred notes (“Initial Bonds”). The New Bonds, of an aggregate principal amount of € 100 million,
will be consolidated and form a single series with the Initial Bonds. Further information about the issue is provided in the relevant
announcement published in the Company’s website on 8 July 2024.
Notes to the Consolidated Financial Statements
.
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In September 2024, the Company announced that Eurobank S.A. successfully completed the issuance of € 850 million Green senior
preferred notes. The bond matures on 24 September 2030, is callable at par on 24 September 2029 offering a coupon of 4 % per
annum and is listed on the Luxembourg Stock Exchange’s Euro MTF market. The proceeds from the issue will be used to finance or
refinance a portfolio of Green Eligible Projects selected in accordance with the criteria described in Eurobank’s Green Bond
Framework and will support Eurobank Group’s strategy to ensure ongoing compliance with its MREL requirement. Further
information about the issue is provided in the relevant announcement published in the Company’s website on 18 September 2024.
In September 2024, Hellenic Bank announced the issuance of € 100 million senior preferred notes, out of which € 57 million were
held by Group entities. The bond matures on 17 September 2026, offering a coupon of 4 % per annum and is listed on the Luxembourg
Stock Exchange’s Euro MTF market.
In December 2024 the Company announced that Eurobank S.A. successfully completed the issuance of € 600 million senior preferred
notes. The bond matures on 12 March 2030, is callable at par on 12 March 2029 offering a coupon of 3.25% per annum and is listed
on the Luxembourg Stock Exchange’s Euro MTF market. The proceeds from the issue will support Eurobank Group’s strategy to ensure
ongoing compliance with its MREL requirements and will be used for Eurobank’s general funding purposes. Further information about
the issue is provided in the relevant announcement published in the Company’s website on 6 December 2024.
Credit linked note
In December 2024, the Bank issued a credit linked note (“CLN”) of € 80 million that provides credit protection over the mezzanine
tranche of a portfolio of performing SME and Large Corporate loans amounting to € 1.1 billion (“Wave VI” transaction - note 20). The
credit protection to the Bank is provided by means of adjustments (write-downs) to the principal balance of the CLN, after the
occurrence of certain credit events in relation to the protected loans, pursuant to the terms and conditions of the CLN. In addition,
the issued note matures in July 2039, is callable in September 2029 and pays a floating interest rate (3-month Euribor plus spread of
9.39%) that also reflects the tranche protection components, as specified in the terms and conditions of the CLN.
Post balance sheet events
Subordinated Tier 2 notes
In January 2025, the Company announced that it has successfully priced the issuance of € 400 million subordinated Tier II debt
instruments (New Instruments) which mature in April 2035, are callable at par from 30 January 2030 until 30 April 2030, offer ing a
coupon of 4.25% per annum and are listed on the Luxembourg Stock Exchange’s Euro MTF market. In addition, the Company
announced an any -and-all exchange offer for Hellenic Bank’s outstanding € 200 million Tier 2 notes, out of which € 33 million were
held by Group entities, with additional Eurobank Holdings Tier 2 subordinated notes, issued under a single series and with same terms
with the € 400 million subordinated notes. The offer period was set from 21 January 2025 until 27 January 2025.
On 28 January 2025, the Company announced that it has decided to accept all existing notes offered for exchange, pursuant to the
exchange offer, with nominal value of € 157 million. The nominal value of new instruments to be issued is € 188.5 million, which will
form a single series with the New Instruments with a combined aggregate nominal amount of € 589 million.
The purpose of the Exchange Offer and the issuance of the Eurobank Holdings subordinated notes is to optimize the regulatory
efficiency of Eurobank Holdings’ capital base while the proceeds will be used for general financing purposes.
Medium term notes (EMTN)
In February 2025 Eurobank S.A. successfully completed the issuance of € 350 million senior preferred notes through a private
placement. The bonds mature on 7 February 2036, are callable at par on 7 February 2035 offering a coupon of 4% per annum and are
listed on the Luxembourg Stock Exchange’s Euro MTF market. The proceeds from the issue will support Eurobank Group’s strategy to
ensure ongoing compliance with its MREL requirements.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
35. Other liabilities
2024
2023
€ million
€ million
Balances under settlement⁽¹⁾
439
380
Lease liabilities
190
190
Deferred income and accrued expenses
269
194
Other provisions
154
116
ECL allowance for credit related commitments (note 5.2.1.2)
63
48
Standard legal staff retirement indemnity obligations and employee termination benefits
(note 37)
143
59
Sovereign risk financial guarantee
29
31
Income taxes payable
70
30
Deferred tax liabilities (note 13)
43
28
Trading liabilities
43
121
Insurance contract liabilities
108
-
Obligation relating to the acquisition of NCI in Hellenic Bank (note 23.2)
880
-
Other liabilities⁽²⁾
251
188
Total
2,682
1,385
(1)
Includes settlement balances relating to bank cheques and remittances, credit card transactions, other banking and brokerage activities.
(2)
As at 31 December 2024, other liabilities amounting to € 251 million mainly consist of payables relating with (a) suppliers and
creditors, (b) contributions to insurance organizations, and (c) duties and other taxes.
In the context of its non-performing exposures (NPE) securitizations (Pillar, Cairo, Mexico), and as is customary for the seller in such
types of transactions, the Bank has provided representation and warranties (R&Ws) to the investors in respect of the underlying
loans, covering various areas such as legality, ownership and good title of the loans, accuracy of collateral data etc., time-barred up
to three years from the transactions’ date. Accordingly, as at 31 December 2024, the Bank has recognized a prov ision of ca. € 22
million for potential losses in expectation of such R&Ws realization (31 December 2023: € 12 million).
Considering that the substantiation and crystallization of potential amounts under dispute and final agreement between involved
parties require significant time, the Group continues to assess their impact as more information becomes available.
As at 31 December 2024, other provisions amounting to € 154 million (2023: € 116 million) mainly include: (a) € 33 million for claims
in dispute and outstanding litigations against the Group (note 43), (b) € 32 million relating to the sale of Bank’s former subsidiaries,
(c) € 22 million for R&Ws provided to investors in the context of the NPE securitization transactions, d) € 15 million for other
operational risk events e) € 12 million relating to contribution to restoration initiatives after natural disasters, and f) € 27 million
relating to the participation in the Greek state’ s school renovation program (note 11).
The movement of the Group's other provisions, is presented in the following tables:
31 December 2024
Litigations and
claims in
dispute
Other
Total
€ million
€ million
€ million
Balance at 1 January
38
78
116
Arising from acquisition
8
5
13
Amounts charged during the year
3
59
62
Amounts used during the year
(13)
(12)
(25)
Amounts reversed during the year
(2)
(7)
(9)
Foreign exchange and other movements
(1)
(2)
(3)
Balance at 31 December
33
121
154
Notes to the Consolidated Financial Statements
.
148
|
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31 December 2024 Consolidated Financial Statements
31 December 2023
Litigations and
claims in
dispute
Other
Total
€ million
€ million
€ million
Balance at 1 January
28
52
80
Amounts charged during the year
21
34
55
Amounts used during the year
(5)
(7)
(12)
Amounts reversed during the year
(1)
-
(1)
Foreign exchange and other movements
(1)
(0)
(1)
Discontinued operations
(4)
(1)
(5)
Balance at 31 December
38
78
116
36. Insurance contract (assets)/liabilities and reinsurance contract assets
Following Hellenic Bank group inclusion in the Company’s consolidated financial statements from the third quarter of 2024 (note
23.2), the Group assumed liabilities from insurance contracts issued that are presented within other liabilities (note 35), and acquired
assets from reinsurance contracts that are presented with other assets (note 29).
The Group applies the three measurement models under IFRS 17 Insurance contracts for the measurement of its insurance contract
liabilities and reinsurance contract assets, i.e. the variable fee approach ("VFA”), the premium allocation approach (“PAA”) and the
general measurement model (“GMM”), depending on the characteristics of each relevant group of contracts.
The breakdown of the insurance contract (assets)/liabilities and reinsurance contract assets per line of business and per measurement
method applied, is set out below.
31 December 2024
Life
Non - Life
Net Insurance
contract
(assets)/liabilities⁽¹⁾
Reinsurance
contract assets
Insurance contract
liabilities
Reinsurance
contract assets
€ million
€ million
€ million
€ million
VFA
61
-
-
-
PAA
8
0
37
3
GMM
(1)
11
1
14
Total
68
12
38
17
(1)
It includes insurance contract assets of € 1 million.
The following table presents the movement per line of business for the period 1 July - 31 December 2024 of the net insurance contract
(assets)/liabilities for remaining coverage (“LRC”) and incurred claims (“LIC”) from insurance contracts issued.
Notes to the Consolidated Financial Statements
.
149
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31 December 2024 Consolidated Financial Statements
31 December 2024
Life
Non - Life
Liabilities for
remaining
coverage
Liabilities for
incurred
claims
Liabilities for
remaining
coverage
Liabilities
for incurred
claims
Total
€ million
€ million
€ million
€ million
€ million
Net insurance contract (assets)/liabilities
as at 1 July
62
12
6
25
104
Insurance revenue
(11)
-
(22)
-
(34)
Incurred claims and other
insurance service expenses
0
5
3
17
25
Insurance service result
(11)
5
(19)
17
(9)
Insurance finance expenses
(2)
3
0
1
2
Total changes in the income statement
(13)
8
(19)
18
(7)
Premiums received
11
-
22
-
33
Claims and other insurance
service expenses paid
(3)
(8)
(3)
(10)
(24)
Total cash flows
8
(8)
19
(10)
9
Net insurance contract (assets)/liabilities
as at 31 December
57
11
5
33
106
As at 31 December 2024, the net insurance contract (assets)/liabilities under the PAA measurement model amounted to € 46 million
(1 July 2024 € 46 million), comprising a) a LIC of € 41 million (1 July 2024 € 33 million) including € 38 million in relation to estimates
of the present value of the future cash flows and € 2 million in relation to risk adjustment for non-financial risk (1 July 2024 € 31
million and € 2 million respectively) and b) a LRC of € 5 million (1 July 2024 € 13 million).
The following table presents the movement for the period 1 July - 31 December 2024 of net insurance contract (assets)/liabilities for
life business under the VFA and GMM measurement models by measurement component.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2024
Life
Estimates of PV of
future
cash flows
Risk
adjustment
Contractual
service
margin
Total
€ million
€ million
€ million
€ million
Net insurance contract (assets) /
liabilities as at 1 July
41
2
15
58
Contractual service margin (CSM)
recognised for services provided
-
-
(1)
(1)
Risk, experience and other adjustments
1
(0)
-
1
Changes that relate to current services
1
(0)
(1)
(0)
Contracts initially recognised in the period
(2)
0
2
0
Changes in estimates reflected in the CSM
(3)
0
3
(0)
Changes in estimates that do not adjust
the CSM
(0)
(0)
-
(0)
Changes that relate to future services
(5)
0
5
0
Adjustments to liabilities for
incurred claims
(2)
(0)
-
(2)
Insurance service result
(6)
0
3
(2)
Insurance finance expenses
0
0
1
1
Total changes in the income statement
(6)
0
4
(1)
Total cash flows
3
-
-
3
Net insurance contract (assets)/liabilities
as at 31 December
39
2
19
60
An analysis of insurance contracts issued that are liabilities based on their contractual maturity is provided in note 5.2.3
37. Standard legal staff retirement indemnity obligations (SLSRI) and termination benefits
The Group provides for staff retirement indemnity obligation for its employees in Greece and abroad, who are entitled to a lump sum
payment based on the number of years of service and the level of remuneration at the date of retirement, if they remain in the
employment of the Group until normal retirement age, in accordance with the local labor legislation. The above retirement indemnity
obligations typically expose the Group to actuarial risks such as interest rate risk and salary risk. Therefore, a decrease in the discount
rate used to calculate the present value of the estimated future cash outflows or an increase in future salaries will increase the staff
retirement indemnity obligations of the Group.
In addition, the Group has provided employee termination benefits mainly in respect of the Voluntary Exit Schemes (VES), which have
been implemented through either lump-sum payments or long-term leaves during which the employees will be receiving a percentage
of a monthly salary, or a combination thereof.
The table below presents the breakdown of defined benefit obligations.
31 December
2024
31 December
2023
€ million
€ million
SLSRI obligation
21
22
Employee termination benefits
122
37
Total
143
59
The table below presents a reconciliation from the opening to the closing balance for staff retirement indemnity obligations and
employee termination benefits.
Notes to the Consolidated Financial Statements
.
151
|
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31 December 2024 Consolidated Financial Statements
2024
2023
€ million
€ million
Balance at 1 January
59
80
Arising from acquisition
-
1
Current service cost
3
3
Interest cost
2
2
Past service cost and (gains)/losses on settlements
132
6
Remeasurements:
Actuarial (gains)/losses arising from changes in financial assumptions
1
(1)
Actuarial (gains)/losses arising from changes in demographic assumptions
(0)
(0)
Actuarial (gains)/losses arising from experience and other adjustments
2
3
Benefits paid
(56)
(34)
Discontinued operations
-
(1)
Balance at 31 December
143
59
For SLSRI obligations the significant actuarial assumptions (expressed as weighted averages) were as follows:
2024
%
2023
%
Discount rate
3.0
3.6
Future salary increases
3.3
3.2
As at 31 December 2024, the assumption for the price inflation (weighted average) is 2.0% (2023: 2.3%) and has been taken into
account in determining the above actuarial assumptions for future salaries increases.
As at 31 December 2024, the average duration of the standard legal staff retirement indemnity obligation was 7 years (2023: 7 years).
A quantitative sensitivity analysis based on reasonable changes to significant actuarial assumptions as at 31 December 2024 is as
follows:
An increase/(decrease) of the discount rate assumed, by 50 bps/(50 bps), would result in a (decrease)/increase of the standard legal
staff retirement obligations by (€ 0.8 million)/ € 0.8 million.
An increase/(decrease) of the future salary growth assumed, by 0.5%/(0.5%) would result in an increase/(decrease) of the standard
legal staff retirement obligations by € 0.8 million/(€ 0.8 million).
The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is
unlikely to occur, and changes in some of the assumptions may be correlated.
The methods and assumptions used in preparing the above sensitivity analysis were consistent with those used to estimate the
retirement benefit obligation and did not change compared to the previous year.
For employee termination benefits, the discount rate (weighted average) is the significant actuarial assumption, which as at 31
December 2024 stood at 2.5% (2023: 3.8%) based on the applicable tenor of the liabilities. On the same date, an increase/(decrease)
of the discount rate assumed, by 50 bps/(50 bps), would result in a (decrease)/increase of employee termination benefits by (€ 1.2
million)/ € 1.2 million.
Post balance sheet event
On 17 February 2025, Hellenic Bank Public Company Limited announced the launch of a Voluntary Exit Scheme (VES), which will be
offered to employees of the bank and its insurance subsidiaries.
38. Share capital, share premium and treasury shares
As at 31 December 2024, the par value of the Company's shares is € 0.22 per share (2023: € 0.22). All shares are fully paid. The
movement of share capital and share premium is as follows:
Notes to the Consolidated Financial Statements
.
152
|
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31 December 2024 Consolidated Financial Statements
Share capital
Share
premium
€ million
€ million
Balance at 1 January 2023
816.3
1,161.3
Share capital increase following the exercise of share options
1.3
0.1
Balance at 31 December 2023
817.6
1,161.4
Balance at 1 January 2024
817.6
1,161.4
Cancellation of treasury shares
(11.5)
(16.3)
Share capital increase following the exercise of share options
2.7
0.1
Balance at 31 December 2024
808.9
1,145.2
AGM decisions
On 23 July 2024, the Annual General Meeting (AGM) of the shareholders of the Company, among others, approved:
●
The cancellation of 52,080,673 treasury shares acquired in 2023 from Hellenic Financial Stability Fund. Following the said
cancellation, the share capital and the share premium of the Company decreased by € 11,457,748.06 and € 16,274,764.99,
respectively.
●
The distribution of a cash dividend of € 342 million from the “Special Reserves” account, following the approval received
from the European Central Bank (ECB) on 5 June 2024 (note 39). The said dividend corresponds to a 30% payout ratio of the
Group’s net profit for 2023 and a gross dividend of € 0.09333045 per share, following the above cancellation of treasury
shares.
●
The distribution of € 404,330 to senior management and employees of the Company from the “Special Reserves” account
(note 39). In addition, it was noted in AGM that the respective amount that was approved to be distributed to senior
management and employees of the Bank was € 26,237,474.
Share capital increase
Following the exercise of share options granted to executives of the Group under the current share options’ plan (see below), and by
virtue of the decision of the Board of Directors of the Company on 30 August 2024, the Company’s share capital increased by €
2,714,189.50 through the issue of 12,337,225 new common voting shares of a nominal value of € 0.22 per share and exercise price of
€ 0.23 per share. The difference between the exercise price of the new shares and their nominal value, net of the expenses directly
attributable to the equity transaction, amounted to € 100,899.18 and was recorded in the account “Share premium”. The new shares
were listed on the Athens Exchange on 12 September 2024.
The following is an analysis of the movement in the number of the Company’s shares outstanding:
Number of shares
Issued
Shares
Treasury
Shares
Net
Balance at 1 January 2023
3,710,677,508
(260,036)
3,710,417,472
Share capital increase following the exercise of share options
5,802,269
-
5,802,269
Buyback of shares held by HFSF
-
(52,080,673)
(52,080,673)
Other purchases of treasury shares
-
(5,740,696)
(5,740,696)
Sale of treasury shares
-
1,654,166
1,654,166
Balance at 31 December 2023
3,716,479,777
(56,427,239)
3,660,052,538
Balance at 1 January 2024
3,716,479,777
(56,427,239)
3,660,052,538
Share capital increase following the exercise of share options
12,337,225
-
12,337,225
Cancellation of treasury shares
(52,080,673)
52,080,673
-
Purchase of treasury shares
-
(1,475,008)
(1,475,008)
Sale of treasury shares
-
3,907,033
3,907,033
Balance at 31 December 2024
3,676,736,329
(1,914,541)
3,674,821,788
Treasury shares
Notes to the Consolidated Financial Statements
.
153
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31 December 2024 Consolidated Financial Statements
As at 31 December 2024, the number of treasury shares held by the Company’s subsidiary Eurobank Equities Investment Firm Single
Member S.A. (in the ordinary course of its business), was 1,914,541 and its carrying amount (debit balance within reserves) was € 3.9
million (31 December 2023: € 101 million, including € 93.8 million referring to the aforementioned treasury shares acquired from the
HFSF). On the same date, the number of the Company’s shares held by the Group’s associates in the ordinary course of their insurance
and investing activities was 64,163,790 in total (31 December 2023: 64,163,790).
39. Reserves and retained earnings/losses
Statutory
reserves
Non-taxed
reserves
Fair value reserve
Other
reserves
Retained
earnings/(losses)
Total
€ million
€ million
€ million
€ million
€ million
€ million
Balance at 1 January 2023
270
829
(10)
2,077
1,495
4,660
Net profit
-
-
-
-
1,140
1,140
Transfers between reserves
(42)
(0)
(45)
64
24
-
Debt securities at FVOCI
-
-
83
-
-
83
Cash flow hedges
-
-
-
(2)
-
(2)
Foreign currency translation (note 30)
-
-
-
123
-
123
Gains/(losses) from equity securities at FVOCI
-
-
18
-
-
18
Associates and joint ventures
-Adoption of IFRS 9 “Financial Instruments” by a
Group’s associate
-
-
(7)
-
7
-
-changes in the share of other comprehensive
income, net of tax
-
-
9
(12)
0
(4)
Actuarial gains/(losses) on post employment
benefit obligations, net of tax
-
-
-
-
(2)
(2)
Share options plan
-
-
-
-
7
7
Purchase/sale of treasury shares
-
-
-
(100)
-
(100)
Other
(1)
-
(0)
(1)
(1)
(3)
Balance at 31 December 2023
227
829
48
2,147
2,670
5,920
Balance at 1 January 2024
227
829
48
2,147
2,670
5,920
Net profit
-
-
-
-
1,448
1,448
Arising from acquisition (note 23.2)
260
-
-
-
(260)
-
Transfers between reserves
44
1
(1)
383
(428)
-
Debt securities at FVOCI
-
-
22
-
-
22
Cash flow hedges
-
-
-
(1)
-
(1)
Foreign currency translation
-
-
-
-
0
0
Gains/(losses) from equity securities at FVOCI
-
-
(8)
-
-
(8)
Associates and joint ventures
-changes in the share of other comprehensive
income, net of tax
-
-
(5)
(3)
(0)
(8)
Actuarial gains/(losses) on post employment
benefit obligations, net of tax
-
-
-
(2)
(2)
Dividends (see below)
-
-
-
(342)
-
(342)
Changes in participating interest/consolidation
percentage in subsidiaries (note 23.2)
-
-
-
-
(134)
(134)
Share options plan (note 40)
-
-
-
-
18
18
Purchase/sale and cancellation of treasury shares
(note 38)
-
-
-
97
(64)
33
Other
-
-
-
-
(1)
(1)
Balance at 31 December 2024
532
830
57
2,281
3,246
6,945
As at 31 December 2024, other reserves comprise, among others, a) € 1,752 million reserves relating to dividends and gains from the
sale of participations (2023: € 1,713 million), b) corporate law reserves of € 8 million, pursuant to the provisions of the Greek company
law in force (2023: € 8 million), c) € 4 million (debit balance) relating to the carrying amount of the treasury shares held by the
Company and its subsidiary Eurobank Equities Investment Firm Single Member S.A. (2023: € 101 million) (note 38), d) € 15 million
Notes to the Consolidated Financial Statements
.
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accumulated loss from cash flow hedging (2023: € 14 million accumulated loss) and e) € 3 million accumulated loss relating to foreign
operations’ translation differences (2023: € 2 million accumulated loss).
Dividends/Shareholders’ remuneration
In the third quarter of 2024, pursuant to the abovementioned decisions of the AGM of the shareholders of the Company, a cash
dividend of € 342 million was distributed to the shareholders, corresponding to a 30% payout ratio of the Group’s net profit for 2023
and a gross dividend of € 0.09333045 per share.
In December 2024, the Bank proceeded with the distribution of non-mandatory reserves for a total amount of € 240 million which is
part of the Banks’ overall contribution to its sole shareholder, Eurobank Holdings, in order to enable the latter to remunerate its
shareholders out of the profits of the financial year 2024, in accordance with the provisions of article 162 par. 3 of Company Law
4548/2018.
Based on the Group’s financial performance for the financial year 2024, Eurobank Holdings intends to remunerate its shareholders
with an amount of € 674 million corresponding to a 50% payout ratio of the Group’s net profit for 2024 less the negative goodwill (€
99.5 million gain on acquisition of a shareholding in Hellenic Bank), subject to approval of the Annual General Meeting of its
shareholders and the regulatory authorities. The final remuneration will be a combination of cash and share buyback.
40. Share options
The Annual General Meeting of the shareholders of Eurobank Holdings held on 28 July 2020 approved the establishment of a five
year shares award plan, starting from 2021, in the form of share options rights by issuing new shares with a corresponding share
capital increase, in accordance with the provisions of article 113 of law 4548/2018, awarded to executives and personnel of Eurobank
Holdings and its affiliated companies according to article 32 of law 4308/2014. The maximum number of rights that can be approved
was set at 55,637,000 rights, each of which would correspond to one new share with exercise price equal to € 0.23. The Annual
General Meeting authorized the Board of Directors of Eurobank Holdings to define the eligible staff and determine the remaining
terms and conditions of the plan.
The final terms and the implementation of the share options plan, which is a forward-looking long-term incentive aiming at the
retention of key executives, are defined and approved annually by the Board of Directors in accordance with the applicable legal and
regulatory framework, as well as the policies of the Group.
The options are exercisable in portions annually during a period from one to five years. Each portion may be exercised wholly or partly
and converted into shares at the employees’ option, provided that they remain employed by the Group until the first available
exercise date. Each portion is treated as a separate award with a different vesting period and different fair value. The corporate
actions that adjust the number and the price of shares also adjust accordingly the share options.
The movement of share options during the year is analysed as follows:
Share options granted
2024
2023
Balance at 1 January
26,863,702
22,268,322
Options awarded during the year
6,822,123
12,101,092
Options cancelled/expired during the year
-
(1,703,443)
Options exercised during the year
(12,337,225)
(5,802,269)
Balance at 31 December
21,348,600
26,863,702
In July 2024, the Group awarded to its executives 6,822,123 new share options, exercisable in annual portions up to 2029, out of
which 3,076,786 options were exercised during the third quarter of 2024.
From the total number of granted share options exercisable in 2024, 12,337,225 options were exercised during the year , resulting in
the issue of an equal number of new common voting shares.
The share options outstanding at the end of the year totaled to 21,348,600 (31 December 2023: 26, 863,702) and have the following
expiry dates:
Notes to the Consolidated Financial Statements
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Share options
Expiry date ⁽¹⁾
31 December 2024
2025
6,194,066
2026
5,763,315
2027
5,763,177
2028
3,149,366
2029
478,676
Weighted average remaining contractual life of share
options outstanding at the end of the period
23 months
(1)
In accordance with the Group’s accounting policy on employees’ share based payments, the grant date fair value of the options is
recognized as an expense with a corresponding increase in equity over the vesting period.
The fair value at grant date is determined using an adjusted form of the Black-Scholes model for Bermudan equity options which
takes into account the exercise price, the exercise dates, the term of the option, the share price at grant date and expected price
volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the options.
The weighted average fair value of the share options granted in July 2024 was € 1.66 (2023: € 1.13). The significant inputs into the
model were a share price of € 2.021 (2023: € 1.442) at the grant date, exercise price of € 0.23, annualized dividend yield of 3% (2023:
3%), expected average volatility of 32% (2023: 41%), expected option life of 1-5 years, and a risk-free interest rate corresponding to
the options’ maturities, based on the Euro swap yield curve. The expected volatility is measured at the grant date of the options and
is based on the average historical volatility of the share price.
41. Transfers of financial assets
The Group enters into transactions by which it transfers recognized financial assets directly to third parties or to Special Purpose
Entities (SPEs).
(a) The Group sells, in exchange for cash, securities under an agreement to repurchase them (repos) and assumes a liability to repay
to the counterparty the cash received. In addition, the Group pledges, in exchange for cash, securities, covered bonds, as well as loans
and receivables and assumes a liability to repay to the counterparty the cash received. The Group may also transfer securities under
securities lending agreements with no exchange of cash or pledging of other financial assets as collateral. For all the aforementioned
transactions, the Group has determined that it retains substantially all the risks, including associated credit and interest rate risks,
and rewards of these financial assets and therefore has not derecognized them. As a result, the Group is unable to use, sell or pledge
the transferred assets for the duration of the transaction. The related liability, where applicable, is recognized in Due to central banks
and credit institutions (notes 31 and 32), Due to customers (note 33) and Debt securities in issue (note 34), as appropriate.
The Group enters into securitizations of various classes of loans (corporate, small and medium enterprise, consumer and various
classes of non-performing loans), under which it assumes an obligation to pass on the cash flows from the loans to the holders of the
notes. The Group has determined that it retains substantially all risks, including associated credit and interest rate risks, and rewards
of these loans and therefore has not derecognized them. As a result of the above transactions, the Group is unable to use, sell or
pledge the transferred assets for the duration of their retention by the SPE. Moreover, the note holders' recourse is limited to the
transferred loans. As at 31 December 2024, the carrying value of the securitizations’ issues held by third parties amounted to € 554
million (2023: € 555 million) (note 34).
Notes to the Consolidated Financial Statements
.
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The table below sets out the details of Group's financial assets that have been sold or otherwise transferred to third parties, but which
do not qualify for derecognition:
Carrying amount⁽¹⁾
2024
2023
€ million
€ million
Securities held for trading
-
11
Loans and advances to customers
2,801
9,947
-securitized loans
727
767
-pledged loans under covered bond program
1,794
3,832
-pledged loans with central banks
-
5,017
-other pledged loans
280
332
Investment securities
1,200
2,231
Carrying amount of assets
4,001
12,189
Associated liabilities⁽²⁾
2,954
7,969
(1)
utilised for secured financing; comparative information has been adjusted accordingly.
(2)
Amounts are before offsetting repo agreements in the balance sheet against reverse repo deals of € 447 million (2023: € 1,210 million) (note 5.2.1.4)
(b) The Group may sell or re-pledge any securities borrowed or obtained through reverse repos and has an obligation to return the
securities. The counterparty retains substantially all the risks and rewards of ownership and therefore the securities are not
recognized by the Group. As at 31 December 2024, the securities obtained through reverse repo by the Group of face value of € 583
million had not been sold or re-pledged (2023: € 1,413 million face value obtained through reverse repo not sold or re -pledged).
The Group’s financial assets pledged as collaterals for repos, derivatives, securitizations and other transactions other than the
financial assets presented in the table above are provided in notes 17 and 29.
42. Leases
Group as a lessee
The Group leases office and branch premises, ATM locations, residential properties for the Group’s personnel, and motor vehicles.
The majority of the Group’s property leases are under long term agreements (for a term of 12 years or more in the case of leased real
estate assets), with options to extend or terminate the lease according to the terms of each contract and the usual terms and
conditions of commercial leases applicable in each jurisdiction, while motor vehicles generally have lease terms of up to 4 years.
Extension options held by the Group are included in the lease term when it is reasonably certain that they will be exercised based on
its assessment. For contracts having an indefinite remaining life, the lease term has been determined at an average of 7 years for the
Bank, after considering all relevant facts and circumstances. For new or modified lease contracts with an indefinite life, that are
effective from the fourth quarter of 2023 onwards, the estimated lease term has been revised to 5 years. Where applicable, depending
on the terms of each lease contract, lease payments are adjusted annually in line with the consumer Price Index, as published by the
Greek Statistical Authority, plus an agreed fixed percentage.
Information about the leases for which the Group is a lessee is presented below:
Right-of-Use Assets
As at 31 December 2024, the right-of-use assets included in property plant and equipment amounted to € 168 million (31 December
2023: € 170 million) (note 26), while those that meet the definition of investment property amounted to € 17 million (31 December
2023: € 16 million) (note 27).
Lease Liabilities
The lease liability included under other liabilities amounted to € 190 million as at 31 December 2024 (31 December 2023: € 190
million) (note 35). The maturity analysis of lease liabilities as at 31 December 2024, based on the contractual undiscounted cash flows,
is presented in note 5.2.3.
Notes to the Consolidated Financial Statements
.
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Amounts recognised in profit or loss
Interest on lease liabilities is presented in note 6 and the lease expense relating to short term leases is ca. € 1.2 million (31 December
2023: € 1.2 million).
The Group had total cash outflows for leases of € 41 million in 2024 (2023: € 44 million).
Group as a lessor
Finance lease
The Group leases out certain real estate properties and equipment under finance leases, in its capacity as a lessor.
The maturity analysis of finance lease receivables, based on the undiscounted lease payments to be received after the reporting date,
is provided below:
2024
2023
€ million
€ million
Not later than one year
205
230
1-2 years
88
89
2-3 years
74
95
3-4 years
64
53
4-5 years
36
34
Later than 5 years
116
154
Lease Payments:
583
656
Gross investment in finance leases
583
656
Less: unearned finance income
(60)
(83)
Net investment in finance leases
523
573
Less: impairment allowance
(80)
(93)
Total
443
480
Operating Leases
The Group leases out its investment property under the usual terms and conditions of commercial leases applicable in each
jurisdiction. When such leases do not transfer substantially all of the risks and rewards incidental to the ownership of the leased
assets, the Group classifies these lease as operating leases. Information relating to operating leases of investment property, including
the rental income recognised by the Group during the year, is provided in note 27. The maturity analysis of operating lease receivables,
based on the undiscounted lease payments to be received after the reporting date, is provided below:
2024
2023
€ million
€ million
Not later than one year
85
94
One to two years
75
83
Two to three years
67
76
Three to four years
61
68
Four to five years
47
64
More than five years
153
209
Total
488
594
43. Contingent liabilities and other commitments
The Group presents the credit related commitments it has undertaken within the context of its lending related activities into the
following three categories: a) financial guarantee contracts, which refer to guarantees and standby letters of credit that carry the
same credit risk as loans (credit substitutes), b) commitments to extend credit, which comprise firm commitments that are irrevocable
over the life of the facility or revocable only in response to a material adverse effect and c) other credit related commitments, which
Notes to the Consolidated Financial Statements
.
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refer to documentary and commercial letters and other guarantees of medium and low risk according to the Regulation No
575/2013/EU.
Credit related commitments are analyzed as follows:
2024
2023
€ million
€ million
Financial guarantee contracts
2,221
2,082
Commitments to extend credit
5,783
4,521
Other credit related commitments
1,298
1,268
Total
9,302
7,871
The credit related commitments within the scope of IFRS 9 impairment requirements of continuing operations amount to € 14 billion
(31 December 2023: € 11.4 billion), including revocable loan commitments of € 4.7 billion (31 December 2023: € 3.5 billion), while
the corresponding allowance for impairment losses amounts to € 63 million (31 December 2023: € 48 million).
In addition, the Group has issued a sovereign risk financial guarantee of € 0.24 billion (31 December 2023: € 0.24 billion) for which an
equivalent amount has been deposited under the relevant pledge agreement (note 29).
Other commitments
(a) The Bank has signed irrevocable payment commitment (IPC) and collateral arrangement agreements with the Single Resolution
Board (SRB) amounting in total to € 29 million as at 31 December 2024 (2023: € 29 million). According to the agreements, which are
backed by cash collateral of an equal amount, the Bank undertook to pay to the SRB an amount up to the above IPC, in case of a call
and demand for payment made by it, in relation to a resolution action taken for another European bank. The IPC has been accounted
for as a contingent liability and the said cash collateral has been recognized as a financial asset measured at amortized cost in the
Group’s balance sheet line “Other assets’’(note 29).
By a ruling in October 2023, the General Court of the European Union dismissed the appeal of a French Credit institution against the
Single Resolution Board (SRB) following the rejection, by the latter, of the request for return of collateral linked to ex-ante
contributions provided in the form of IPC. The reimbursement of the collateral linked to the IPC, requested by the institution after
the withdrawal of its license, had been refused by the SRB, arguing that the return of IPC collateral required the prior payment of the
compulsory contribution for which the institution was liable.
The aforementioned decision is not final, as the institution concerned decided to appeal to the European Court of Justice against the
ruling of the General Court of the European Union, therefore the Group has not proceeded to any change in the accounting treatment
described above for the purposes of these financial statements.
The Group will continue to monitor any developments in the case and assess the potential impact on its financial statements.
(b) As at 31 December 2024, the contractual commitments for the acquisition of own used property, investment property, equipment
and intangible assets amounted to € 51 million (2023: € 41 million).
Legal proceedings
As at 31 December 2024, the provisions for legal proceedings outstanding against the Group amounted to € 33 million (note 35) (31
December 2023: € 38 million).
Furthermore, in the normal course of its business, the Group has been involved in a number of legal proceedings, which are either at
still a premature or at an advanced trial instance. The final settlement of these cases may require the lapse of a certain time so that
the litigants exhaust the legal remedies provided for by the law. Management, is closely monitoring the developments to the relevant
cases and having considered the advice of Legal Services, does not expect that there will be an outflow of resources and therefore
does not acknowledge the need for a provision.
In addition, following Hellenic Bank group inclusion in the Company’s consolidated financial statements from the third quarter of
2024 (note 23.2), the Group is assessing the legal proceedings against Hellenic Bank group and has recognized contingent liabilities
at a provisional fair value of € 4 million on the acquisition date under the purchase method of accounting in accordance with IFRS 3,
Business Combinations.
Notes to the Consolidated Financial Statements
.
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44. Operating segment information
Management has determined the operating segments based on the internal reports reviewed by the Strategic Planning Committee
that are used to allocate resources and to assess their performance in order to make strategic decisions. The Strategic Planning
Committee considers the business both from a business unit and geographic perspective. Geographically, management considers the
performance of its business activities originated from Greece and other countries in Europe (International).
Greece is further segregated into retail, corporate, global markets & asset management, investment property and Remedial and
Servicing Strategy. International is monitored and reviewed on a country basis. The Group aggregates segments when they exhibit
similar economic characteristics and profile and are expected to have similar long-term economic development.
In more detail, the Group is organized in the following reportable segments:
-
Retail: incorporating customer current accounts, savings, deposits and investment savings products, credit and debit cards,
consumer loans, small business banking and mortgages.
-
Corporate: incorporating current accounts, deposits, overdrafts, loan and other credit facilities, foreign currency and
derivative products to corporate entities, custody and clearing services, cash management and trade services and
investment banking services including corporate finance, merger and acquisitions advice.
-
Global Markets & Asset Management: incorporating financial instruments trading, services to institutional investors, as well
as, specialized financial advice and intermediation. In addition, this segment incorporates mutual fund products, institutional
asset management and equity brokerage.
-
International: incorporating operations in a) Bulgaria, b) Cyprus, containing the operations of Eurobank Cyprus and those of
Hellenic Bank group, which is included in the Company’s consolidated financial statements as of the third quarter of 2024
(note 23.2), c) Luxembourg and d) Romania and Serbia, which as of the third quarter of 2024 are presented in “Other”
segment of the International operations.
-
Investment Property: incorporating investment property activities relating to a diversified portfolio of commercial real
estate assets.
-
Remedial and Servicing Strategy (RSS): incorporating the management of non - performing assets, the property management
(repossessed assets), the notes of the securitizations of loans originated by the Bank, which were retained by the Group,
and the Group’s share of results of doValue Greece Loans and Credits Claim Management S.A.
Other segment of the Group refers mainly to (a) property management (own used property & equipment), (b) other investing
activities (including equities’ positions), (c) private banking services to medium and high net worth individuals, (d) the Group’s share
of results of Eurolife Insurance group and (e) the results related to the Group’s transformation projects and initiatives.
The Group's management reporting is based on International Financial Reporting Standards (IFRS) as adopted by the EU. The
accounting policies of the Group's operating segments are the same with those described in the principal accounting policies.
Revenues from transactions between business segments are allocated on a mutually agreed basis at rates that approximate market
prices.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
44.1 Operating segments
31 December 2024
Retail
Corporate
Global Markets &
Asset Mngt
Investment
Property
RSS
International
Other and
Elimination
center
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Net interest income
1,170
405
32
1,023
2,507
Net banking fee and commission income
106
137
138
0
3
176
2
561
Other net revenue
19
76
108
61
91
272
Total external revenue
1,225
560
245
95
1,261
20
3,341
Inter-segment revenue
59
49
2
-
Total revenue
1,283
610
190
97
1,255
3,341
Operating expenses
Impairment losses relating to loans
and advances to customers
-
-
34
Other impairments, risk provisions and related costs
(note 12)
Share of results of associates and
joint ventures
-
-
-
10
133
18
161
Profit/(loss) before tax from continuing operations
before restructuring costs
658
476
116
64
893
2,040
Restructuring costs (note 12)
Profit/(loss) before tax from continuing operations
643
474
114
64
891
1,872
Loss before tax from discontinued operations (note 30)
-
-
-
-
-
-
Profit/(loss) before tax attributable to non controlling
interests
-
-
-
-
66
0
66
Profit/(loss) before tax attributable
to shareholders
643
474
114
64
825
1,796
31 December 2024
Retail
Corporate
Global Markets &
Asset Mngt
Investment
Property
RSS
International
Other and
Elimination
center⁽¹⁾
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Segment assets
11,921
18,825
14,617
1,474
7,734
42,318
4,260
101,150
Segment liabilities
32,270
12,215
4,391
221
1,288
37,874
3,992
92,251
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The International segment is further analyzed as follows:
31 December 2024
Cyprus⁽³⁾
Bulgaria
Eurobank Cyprus
Hellenic Bank
Luxembourg
Other
Total
International
€ million
€ million
€ million
€ million
€ million
€ million
Net interest income
Net banking fee and commission income
Other net revenue
Total external revenue
Inter-segment revenue
-
Total revenue
Operating expenses
Impairment losses relating to loans and
advances to customers
Other impairments, risk provisions and
related costs
Share of results of associates and joint
ventures
-
-
-
-
Profit/(loss) before tax from continuing
operations before restructuring costs
Restructuring costs (note 12)
-
-
-
Profit/(loss) before tax from continuing
operations
Loss before tax from discontinued operations
-
-
-
-
-
-
Profit/(loss) before tax attributable to non
controlling interests
-
-
-
Profit/(loss) before tax attributable to
shareholders
31 December 2024
Cyprus⁽³⁾
Bulgaria
Eurobank Cyprus
Hellenic Bank
Luxembourg
Other
Total
International
€ million
€ million
€ million
€ million
€ million
€ million
Segment assets⁽²⁾
11,529
9,275
18,262
3,240
128
42,318
Segment liabilities⁽²⁾
10,193
8,074
16,501
3,005
215
37,874
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
Retail
Corporate
Global Markets &
Asset Mngt
Investment
Property
RSS
International
Other and
Elimination
center
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Net interest income
1,118
437
59
(12)
(8)
657
(77)
2,174
Net banking fee and commission income
87
127
102
5
122
4
447
Other net revenue
(48)
3
108
103
15
(1)
113
293
Total external revenue
1,157
567
269
91
12
778
40
2,914
Inter-segment revenue
41
39
(40)
2
(8)
(34)
-
Total revenue
1,198
606
229
93
12
770
6
2,914
Operating expenses
(379)
(118)
(55)
(35)
(62)
(263)
(3)
(915)
Impairment losses relating to loans and advances to
customers
(126)
(31)
-
-
(159)
(57)
(39)
(412)
Other impairment losses,risk provisions and related
costs (note 12)
(20)
(1)
3
(1)
(25)
(36)
(16)
(96)
Share of results of associates and joint ventures
-
8
58
22
88
Profit/(loss) before tax from continuing operations
before restructuring costs
673
456
177
57
(226)
472
(30)
1,579
Restructuring costs (note 12)
(4)
(4)
(1)
(1)
(11)
(16)
(37)
Profit/(loss) before tax from continuing operations
669
452
176
57
(227)
461
(46)
1,542
Profit before tax from
discontinued operations
-
-
-
-
-
(170)
-
(170)
Profit/(loss) before tax attributable to non controlling
interests
-
-
-
-
-
(12)
(12)
Profit/(loss) before tax attributable to shareholders
669
452
176
57
(227)
303
(46)
1,384
31 December 2023
Retail
Corporate
Global Markets &
Asset Mngt
Investment
Property
RSS
International
Other and
Elimination
center⁽¹⁾
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Segment assets
12,344
15,897
14,627
1,453
8,259
21,336
5,865
79,781
Segment liabilities
31,264
11,558
4,942
280
1,767
18,740
3,331
71,882
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
Bulgaria
Cyprus
Luxembourg
Romania
Serbia
Total
International
€ million
€ million
€ million
€ million
€ million
€ million
Net interest income
322
273
58
3
1
657
Net banking fee and commission income
76
39
8
(1)
-
122
Other net revenue
6
-
(2)
(1)
(4)
(1)
Total external revenue
404
312
64
1
(3)
778
Inter-segment revenue
-
-
(8)
-
-
(8)
Total revenue
404
312
56
1
(3)
770
Operating expenses
(169)
(59)
(28)
(5)
(2)
(263)
Impairment losses relating to loans and
advances to customers
(52)
(16)
-
11
-
(57)
Other impairments, risk provisions and
related costs
(31)
(1)
-
(4)
-
(36)
Share of results of associates and joint
ventures
-
58.00
-
-
-
58
Profit/(loss) before tax from continuing
operations before restructuring costs
152
294
28
3
(5)
472
Restructuring costs
(11)
-
-
-
-
(11)
Profit/(loss) before tax from continuing
operations
141
294
28
3
(5)
461
Profit before tax from discontinued
operations
-
-
-
-
(170)
(170)
Profit/(loss) before tax attributable to non
controlling interests
-
-
-
-
(12)
(12)
Profit/(loss) before tax attributable to
shareholders
141
294
28
3
(163)
303
31 December 2023
Bulgaria
Cyprus
Luxembourg
Romania
Serbia
Total
international
€ million
€ million
€ million
€ million
€ million
€ million
Segment assets⁽²⁾
9,832
8,625
2,644
143
91
21,336
Segment liabilities⁽²⁾
8,714
7,300
2,426
214
86
18,740
(1)
(2)
segment of the Cyprus’ operations. In the comparative period, the Group’s share of results of the Hellenic Bank group included in Cyprus’ operations, amounted
to € 58 million gain (note 24).
44.2 Entity wide disclosures
Breakdown of the Group's revenue for each group of similar products and services is as follows:
2024
2023
€ million
€ million
Lending related activities
1,203
1,117
Deposits, network and asset management activities
2,011
1,671
Capital markets
(31)
(36)
Non banking and other services
158
162
Total from continuing operations
3,341
2,914
Information on the Country by Country Reporting based on Law 4261/2014 is provided in the Appendix.
Notes to the Consolidated Financial Statements
.
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45. Post balance sheet events
Details of post balance sheet events are provided in the following notes:
Note 4 – Capital Management
Note 22 – Investment securities
Note 23.2 – Consolidation of Hellenic Bank group
Note 34 – Debt securities in issue
Note 37 – Standard legal staff retirement indemnity obligations (SLSRI) and termination benefits
Note 46 – Related parties
46. Related parties
Eurobank Ergasias Services and Holdings S.A. (the Company or Eurobank Holdings) is the parent company of Eurobank S.A. (the Bank).
The Board of Directors (BoD) of Eurobank Holdings is the same as the BoD of the Bank and part of the key management personnel
(KMP) of the Bank provides services to Eurobank Holdings according to the terms of the relevant agreement between the two entities.
Fairfax Group (“Fairfax”) is considered to have significant influence over Eurobank Holdings. Following the changes in the Company’s
share capital in the third quarter of 2024 (note 38), Fairfax held 33.29% of Eurobank Holdings’ total number of voting rights as at 31
December 2024 (31 December 2023: 32.93%), based on the latest notification that the Company had received from the entity. On 7
February 2025 Eurobank Holdings announced that further to its announcement dated 23 January 2025, it has been informed by the
entity that following the completion of the sale of 80 million shares of the Company, Fairfax holds 32.89% of Eurobank Holdings’ share
capital and voting rights. Further information is provided in the Directors’ Report for the year ended 31 December 2024.
A number of banking transactions are entered into with related parties in the normal course of business and are conducted on an
arm's length basis. These include loans, deposits and guarantees. In addition, as part of its normal course of business in investment
banking activities, the Group at times may hold positions in debt and equity instruments of related parties.
The outstanding balances of the transactions with (a) Fairfax group, (b) the key management personnel (KMP) and the entities
controlled or jointly controlled by KMP and (c) other related parties, as well as the relating income and expenses are as follows:
31 December 2024
31 December 2023
Fairfax
Group⁽²⁾
KMP and Entities
controlled or jointly
controlled by KMP⁽¹⁾
Other Related
Parties⁽³⁾
Fairfax
Group⁽²⁾
KMP and Entities
controlled or jointly
controlled by KMP⁽¹⁾
Other Related
Parties⁽³⁾
€ million
€ million
€ million
€ million
€ million
€ million
Investment securities
60.95
Loans and advances to
customers
152.23
5.32
0.17
119.64
5.25
25.55
Other assets
11.97
99.77
12.89
0.54
85.19
Due to credit institutions
0.04
Due to customers
23.35
18.05
96.11
46.57
16.33
93.24
Debt securities in issue
0.91
1.23
82.85
2.01
103.56
Other liabilities
0.01
0.19
8.43
0.01
0.11
6.02
Net interest income
8.28
3.20
Net banking fee and
commission income
0.03
0.04
13.57
0.04
0.07
10.57
Gains less losses from
investment securities
0.57
Impairment losses relating to
loans and securities including
relative fees
0.72
Other operating
income/(expenses)
9.77
5.71
Guarantees issued
2.48
0.45
2.47
(1)
Includes the key management personnel of the Group and their close family members.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
(2)
other related parties.
(3)
Other related parties include associates (Hellenic Bank has been included from the second quarter of 2023 until the end of the second quarter of 2024, note
24), joint ventures and the Eurobank Group’s personnel occupational insurance fund.
For the year ended 31 December 2024, an impairment of € 0.01 million (2023: € 0.01 million) has been recorded against loan balances
with Group’s associates and joint ventures, while the respective impairment allowance amounted to € 0.1 million (31 December 2023:
€ 0.02 million).
Key management compensation (directors and other key management personnel of the Group)
Key management personnel are entitled to compensation in the form of short-term employee benefits of € 11.8 million (2023: € 8.3
million) including € 2.2 million in upfront variable remuneration awarded as profit sharing, and long-term employee benefits
amounting to € 5.3 million (2023: € 1.4 million) including € 3.2 million in deferred variable remuneration awarded as profit sharing
and payable in equal installments over the next 4-5 years. In addition, KMP have been granted € 5.5 million in variable remuneration
through share options (2023: € 7.8 million), € 3.3 million of which relates to options exercisable in equal portions over the next 4-5
years. The variable remuneration was awarded following the Annual General Meetings of the shareholders of the Company and the
Bank taken place on 23 July 2024 (note 38), in accordance with the Company’s and the Bank’s remuneration policy. Furthermore, as
at 31 December 2024, the defined benefit obligation for the KMP amounts to € 2.1 million (2023: € 1.8 million) while the respective
cost for the period through the income statement amounts to € 0.1 million (2023: € 0.1 million) and the other comprehensive income
(actuarial loss) amounts to € 0,3 million (2023: € 0.05 million actuarial loss).
47. External Auditors
The Group has adopted a Policy on External Auditors’ Independence which provides amongst others, for the definition of the
permitted and non-permitted services the Group auditors may provide further to the statutory audit. For any such services to be
assigned to the Group’s auditors there are specific controlling mechanisms in order for the Company’s Audit Committee to ensure
that a) the non-audit services assigned to “KPMG Certified Auditors S.A.”, along with the KPMG network (KPMG), have been reviewed
and approved as required and b) there is proper balance between audit and permitted non-audit work.
The total fees of the Group’s principal independent auditor KPMG, for audit and other services provided are analyzed as follows:
2024
2023
€ million
€ million
Statutory audit⁽¹⁾
(3.0)
(2.9)
Tax certificate
(0.5)
(0.4)
Other audit related assignments
(1.5)
(1.4)
Non audit assignments
(0.5)
(0.2)
Total from continuing operations
(5.5)
(4.9)
(1)
It is noted that the non-audit assignment fees of “KPMG Certified Auditors S.A.” Greece, statutory auditor of the Group, amounted
to € 0.23 million.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
48. Board of Directors
The Board of Directors (BoD) was elected by the Annual General Meeting of the Shareholders (AGM) held on 23 July 2024 for a three
- year term of office that will expire on 23 July 2027, prolonged until the end of the period the AGM for the year 2027 will take place.
The BoD is as follows:
G. Zanias
Chairman, Non-Executive Member
F. Karavias
Chief Executive Officer
S. Ioannou
Deputy Chief Executive Officer
K. Vassiliou
Deputy Chief Executive Officer
B.P. Martin
Non-Executive Member
A. Gregoriadi
Non-Executive Independent Member
I. Rouvitha Panou
Non-Executive Independent Member
R. Kakar
Non-Executive Independent Member
J. Mirza
Non-Executive Independent Member
C. Basile
Non-Executive Independent Member
B. Eckes
Non-Executive Independent Member
J. A. Hollows
Non-Executive Independent Member
E. Kotsovinos
Non-Executive Independent Member
Athens, 7 March 2025
Georgios P. Zanias
Fokion C. Karavias
Harris V. Kokologiannis
I.D. No ΑI - 414343
I.D. No ΑΙ - 677962
I.D. No AN - 582334
CHAIRMAN
OF THE BOARD OF DIRECTORS
CHIEF EXECUTIVE OFFICER
GENERAL MANAGER OF GROUP FINANCE
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
APPENDIX – Disclosures under Law 4261/2014
Country by Country Reporting
Pursuant to article 81 of Law 4261/2014, which incorporated article 89 of Directive 2013/36/EC into the Greek legislation, the Group
provides the following information for each country in which it has an establishment:
(i) Names, nature of activities and geographical location.
(ii) The operating income (turnover), the profit/(loss) before tax, the tax on profit/ (loss) and the current tax on a consolidated
basis for each country; intercompany transactions among countries are eliminated through the line ‘Intra-Group amounts’.
The amounts disclosed are prepared on the same basis as the Group’s financial statements for the year ended 31 December
2024.
(iii) The number of employees on a full time equivalent basis.
(iv) The public subsidies received.
For the listing of the Bank’s subsidiaries at 31 December 2024, the country of their incorporation and the line of their business refer
to note 23.1.
The information per country is set out below:
Year ended 31 December 2024
Operating
income
Profit/(loss)
before tax
Tax on profit/(loss)
Current
tax
Number of
employees at 31
December
€ million
€ million
€ million
€ million
Greece
2,064
918
6,043
Bulgaria
487
247
3,444
Romania
12
Cyprus
705
505
2,768
Serbia
6
Luxembourg⁽¹⁾
91
58
133
Netherlands
1
1
Other countries
0
Intra-Group amounts
Total from continuing operations
3,341
1,711
12,406
Total from discontinued operations
3
Total
3,341
1,701
12,406
(1)
Article 82 of Law 4261/2014
For 2024, the Group’s return on assets (RoA) was 1.64 %. RoA is calculated by dividing the net profit for the year ended 31 December
2024 by the Group’s average total assets for the year.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2024
8 Othonos Str, Athens 105 57, Greece
eurobankholdings.gr, Tel.: (+30) 214 40 61000
General Commercial Registry No: 000223001000
.
Index to the Financial Statements
Page
Balance Sheet ........................................................................................................................................................................................ 1
Statement of Comprehensive Income ................................................................................................................................................... 2
Statement of Changes in Equity................................ ............................................................................................................................. 3
Cash Flow Statement ............................................................................................................................................................................. 4
Notes to the Financial Statements
1. General information ................................................................................................ ..................................................................... 5
2. Basis of preparation and material accounting policies ................................................................................................................. 5
2.1 Basis of preparation ...................................................................................................................................................................... 5
2.2 Material accounting policies ......................................................................................................................................................... 8
3. Critical accounting estimates and judgments in applying accounting policies ........................................................................... 17
4. Financial risk management and fair value ................................................................................................ .................................. 18
4.1 Financial risk factors and risk management................................................................ ................................................................ 19
4.2 Fair value of financial assets and liabilities ................................................................................................................................. 19
5. Net interest income .................................................................................................................................................................... 20
6. Other income/(expenses) ........................................................................................................................................................... 21
7. Operating expenses .................................................................................................................................................................... 21
8. Income tax .................................................................................................................................................................................. 21
9. Investment securities ................................................................................................................................................................ .. 22
10. Shares in subsidiaries ................................................................................................................................................................ .. 22
11. Other assets ................................................................................................................................................................ ................ 23
12. Debt securities in issue ............................................................................................................................................................... 23
13. Other liabilities ................................................................................................................................ ........................................... 23
14. Share capital, share premium and treasury shares ................................ .................................................................................... 25
15. Reserves and retained earnings/(losses) .................................................................................................................................... 26
16. Share options ................................................................................................................................................................ .............. 26
17. Cash and cash equivalents .......................................................................................................................................................... 28
18. Post balance sheet events ................................................................................................................................ .......................... 28
19. Related parties ................................................................................................................................................................ ............ 28
20. External Auditors ................................................................................................................................................................ ........ 29
21. Board of Directors ................................................................................................................................................................ ....... 30
Balance Sheet
.
1
Page 31 December 2024 Financial Statements
Notes on pages 5 to 30 form an integral part of these financial statements.
Statement of Comprehensive Income
.
2
Page 31 December 2024 Financial Statements
Notes on pages 5 to 30 form an integral part of these financial statements
Statement of Changes in Equity
.
3
Page 31 December 2024 Financial Statements
(1)
Notes on pages 5 to 30 form an integral part of these financial statements.
Cash Flow Statement
.
4
Page 31 December 2024 Financial Statements
Notes on pages 5 to 30 form an integral part of these financial statements.
Notes to the Financial Statements
.
5
Page 31 December 2024 Financial Statements
1. General information
Eurobank Ergasias Services and Holdings S.A. (the Company or Eurobank Holdings) is the parent company of Eurobank S.A. (the
Bank) which along with its subsidiaries (Eurobank S.A. Group), comprise the major part of Eurobank Holdings Group (the Group)
(note 10). The Company operates mainly in Greece and through the Bank’s subsidiaries in Bulgaria, Cyprus and Luxembourg. Its
main activities relate to the strategic planning of the administration of non-performing loans and the provision of services to its
subsidiaries and third parties, while the Eurobank S.A. Group is active in retail, corporate and private banking, asset management,
treasury, capital markets and other services. The Company is incorporated in Greece, with its registered office at 8 Othonos Street,
Athens 105 57 and its shares are listed on the Athens Stock Exchange.
These financial statements were approved by the Board of Directors on 7 March 2025. The Independent Auditor’s Report is included
in section E.I of the Annual Financial Report.
2. Basis of preparation and material accounting policies
The financial statements of the Company have been prepared on a going concern basis and in accordance with the material
accounting policies set out below:
2.1 Basis of preparation
The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS)
issued by the International Accounting Standards Board (IASB), as endorsed by the European Union (EU), and in particular with
those standards and interpretations, issued and effective or issued and early adopted as at the time of preparing these financial
statements.
The financial statements are prepared under the historical cost basis except for the financial assets measured at fair value through
other comprehensive income and financial assets and financial liabilities measured at fair-value-through-profit -or-loss.
2024 and 2023, after taking into account the amendments in IFRSs as described in section 2.1.1 (a) “New and amended standards
adopted by the Company as of 1 January 2024”. Where necessary, comparative figures have been adjusted to conform to changes
in presentation in the current year.
The preparation of financial statements in accordance with IFRS requires the use of estimates and judgements that affect the
reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, as well as
the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's
best knowledge of current events and conditions, actual results ultimately may differ from those estimates.
The Company’s presentation currency is the Euro (€). Except as indicated, financial information presented in Euro has been rounded
to the nearest million. The figures presented in the notes may not sum precisely to the totals provided due to rounding.
Going concern considerations
The Company’s business strategy and activities are linked to those of its banking subsidiary Eurobank S.A. In this context, the
directors monitor closely the capital and liquidity position of the Bank as well as the associated risks, uncertainties and the mitigating
factors affecting its operations. In December 2024, the Board of Directors of Eurobank Holdings decided the initiation of the merger
process of the Company with the Bank through absorption of the former by the latter, in order that operational efficiencies and a
leaner group structure be achieved. Upon the completion of the merger, the Company’s shareholders become shareholders of the
Bank with the same stakes and the same number of shares, and the Bank will substitute Eurobank Holdings as universal successor
in the totality of its assets and liabilities transferred to the Bank (note 10). Following the above, the annual financial statements
have been prepared on a going concern basis, as the Board of the Directors considered as appropriate, taking also into
consideration:
In 2024, despite the challenging international environment, the macroeconomic backdrop was supportive in the Group’s three core
markets. In particular, the economies of Greece, Bulgaria and Cyprus remained in expansionary territory, overperforming most of
their European Union (EU) peers. According to the Hellenic Statistical Authority (ELSTAT) provisional data, the real GDP of Greece
expanded by 2.3% on an annual basis in the first nine months of 2024 –versus 0.5% in the euro area (Eurostat)– driven by household
consumption and the buildup of inventories. The average annual inflation rate based on the Harmonized Index of Consumer Prices
Notes to the Financial Statements
.
6
Page 31 December 2024 Financial Statements
(HICP) decreased to 3.0% in 2024 from 4.2% in 2023, while the average monthly unemployment rate declined to 10.1% in 2024,
from 11.1% in 2023, dropping to a 15-year low. In its Autumn Economic Forecasts (November 2024), the European Commission (EC)
expects real GDP in Greece to grow by 2.1% in 2024 and 2.3% in 2025 (2023: 2.3%). The HICP growth rate is expected to decelerate
to 2.4% in 2025 and the unemployment rate to drop to 9.8%, respectively. On the fiscal front, the EC expects a primary surplus of
2.9% of GDP in 2024 and 2025, up from 2.1% of GDP in 2023. The gross public debt -to-GDP ratio, following a sizeable increase in
nominal GDP due to the combination of real GDP growth and inflation, is expected to decline to 153.1% in 2024 and 146.8% in 2025,
from 163.9% in 2023.
According to the EC Autumn Economic Forecasts, real GDP growth in Bulgaria in 2024 is expected at 2.4%, with a moderate increase
in 2025 to 2.9% (2023: 1.8%), while the HICP is forecast to decrease to 2.5% in 2024 and to 2.3% in 2025 (2023: 8.6%). In Cyprus,
the real GDP growth is forecast at 3.6% and 2.8% in 2024 and 2025, respectively (2023: 2.5%), while the HICP is estimated at 2.2%
in 2024, and 2.1% in 2025 (2023: 3.9%).
Growth in Greece as well as in Bulgaria and Cyprus is expected to receive a significant boost from EU-funded investment projects
and reforms. Greece shall receive in total € 36 billion (€ 18.2 billion in grants and € 17.7 billion in loans) up to 2026 through the
Recovery and Resilience Facility (RRF), Next Generation EU (NGEU)’s largest instrument, out of which € 18.2 billion (€ 8.6 billion in
grants and € 9.6 billion in loans) had been disbursed by the EU as of the end 2024. A further € 40 billion is due through EU’s long-
term budget (MFF), out of which € 20.9 billion is to fund the National Strategic Reference Frameworks (ESPA 2021–2027).
In 2024, the Greek government raised € 9.55 billion from the international financial markets through the Public Debt Management
Agency (PDMA) by issuing two new bonds (a 10-year bond at a yield of 3.478% in January and a 30-year bond at a yield of 4.241%
in April), and re-opening eleven past issues with maturities of 5 and 10 years. At the end of 2024, the cash reserves of the Greek
government stood close to € 33 billion. Following a series of sovereign rating upgrades in the second half of 2023, the Greek
government’s long-term debt securities were considered investment grade by four out of the five Eurosystem-approved External
Credit Assessment Institutions (DBRS: BBB(low), positive outlook, Fitch: BBB-, stable outlook; Scope: BBB, stable outlook; S&P: BBB-
, positive outlook), and one notch below investment grade by the fifth one, Moody’s (Βa1, positive outlook) as of 31 December
2024. On monetary policy developments, after ten rounds of interest rate hikes in 2022 and in 2023 and on the back of an improved
inflation outlook, the European Central Bank (ECB) implemented five interest rate cuts from June 2024 to January 2025, lowering
its deposit facility rate by 125 basis points in total.
Regarding the outlook for the next 12 months, the major macroeconomic risks and uncertainties in Greece and our region are
associated with: (a) the geopolitical tensions caused primarily by the war in Ukraine and the fragile situation in the Middle East,
their implications regarding regional and global stability and security, and their repercussions on the global and the European
economy, (b) an interruption or even a reversal of the disinflationary trend observed in the past 24 months and its impact on
economic growth, employment, public finances, household budgets, firms’ production costs, external trade and banks’ asset quality,
as well as any potential social and/or political ramifications this may entail, (c) the timeline of the potential further interest rate
cuts by the ECB and the Federal Reserve Bank, as persistence on high rates for longer may keep exerting pressure on sovereign and
private borrowing costs and certain financial institutions’ balance sheets, but early rate cuts entail the risk of a rebound in inflation,
(d) the prospect of Greece’s and Bulgaria’s major trade partners, primarily the euro area, remaining stagnant or even facing a
temporary downturn, (e) the elevated political and economic uncertainty stemming from the international and trade policy
decisions of the new administration in the United States, (f) the persistently large current account deficit that seems to become
once again a structural feature of the Greek economy, (g) the absorption capacity of the NGEU and MFF funds and the attraction of
new investments in the countries of presence, especially in Greece, (h) the effective and timely implementation of the reform
agenda required to meet the RRF milestones and targets and to boost productivity, competitiveness, and resilience and (i) the
exacerbation of natural disasters due to the climate change and their effect on GDP, employment, fiscal balance and sustainable
development in the long run.
Materialization of the above risks would have potentially adverse effects on the fiscal planning of the Greek government, as it could
decelerate the pace of expected growth and on the liquidity, asset quality, solvency and profitability of the Greek banking sector.
In this context, the Group’s Management and Board are continuously monitoring the developments on the macroeconomic,
financial and geopolitical fronts as well as the evolution of the Group’s asset quality and liquidity KPIs and have maintaine d a high
level of readiness, so as to accommodate decisions, initiatives and policies to protect the Group’s capital, asset quality and liquidity
standing as well as the fulfilment, to the maximum possible degree, of its strategic and business goals in accordance with the
business plan for 2025 - 2027.
Notes to the Financial Statements
.
7
Page 31 December 2024 Financial Statements
For the year ended 31 December 2024, at the Group level, the net profit attributable to shareholders, following the inclusion of
Hellenic Bank group in the Company’s consolidated financial statements from the third quarter of 2024, amounted to € 1,448 million
(2023: € 1,140 million). The adjusted net profit, excluding (a) the € 121 million restructuring costs (after tax), mainly related to VES
, (b) the € 99.5 million gain arising from the acquisition of an additional 26.28% shareholding of Hellenic Bank in June 2024 , (c) the
€ 19 million Bank’s contribution (after tax) for the Greek state’s program for school renovations, (d) the € 11 million impairment
release (after tax) relating to the project “Leon” and (e) the € 7 million net loss from discontinued operations amounted to € 1,484
million (2023: € 1,256 million), of which € 709 million profit was related to the international operations (2023: € 468 million profit).
The net profit for the Company, carrying the impact of the Bank’s distribution of non-mandatory reserves totalling € 240 million to
the Company (note 15), equals to € 231 million (2023: € 403 million profit). As at 31 December 2024, the Group’s Total Adequacy
Ratio (total CAD) and Common Equity Tier 1 (CET1) ratios, including the impact of the distribution of cash dividend to shareholders
approved by the AGM in July 2024 and the inclusion of Hellenic Bank group in the Company’s consolidated financial statements,
stood at 19.5% (31 December 2023: 19.4%) and 16.8% (31 December 2023: 16.9%).
With regard to asset quality, as at 31 December 2024, the Group’s NPE stock, including the impact of Hellenic Bank, stood at € 1.5
billion, excluding the € 0.2 billion NPE of Hellenic Bank covered by the Asset Protection Scheme (APS) (31 December 2023: € 1.5
billion), driving the NPE ratio to 2.9% at 31 December 2024 (31 December 2023: 3.5%). Τhe NPE coverage ratio improved to 88.4%
(31 December 2023: 86.4%).
In terms of liquidity, as at 31 December 2024 the Group deposits, including the impact of the Hellenic Bank consolidation that added
€ 15.8 billion, stood at € 78.6 billion (31 December 2023: € 57.4 billion). The funding from the targeted long term refinancing
operations of the ECB – TLTRO III programme was fully repaid during the year (31 December 2023: € 3.8 billion), while the Group’s
debt securities in issue, increased by € 2.3 billion. The rise in high quality liquid assets of the Group led the respective Liquidity
Coverage ratio (LCR) to 188.2% (31 December 2023: 178.6%). Information on the financial risks to which the Company is exposed
and its risk management strategy is set out in note 4.
Going concern assessment
The Board of Directors, acknowledging the geopolitical, macroeconomic and financial risks to the economy and the banking system
and taking into account the above factors relating to (a) the idiosyncratic growth opportunities in Greece, Bulgaria and Cyprus for
this and the next years, also underpinned by the mobilisation of the EU funding mainly through the RRF, (b) the Bank’s and Group’s
pre-provision income generating capacity, asset quality, capital adequacy and liquidity position, and (c) the continuation of the
Company’s business operations by the Bank after their merger, has been satisfied that the financial statements of the Company can
be prepared on a going concern basis.
2.1.1 New and amended standards and interpretations
(a) New and amended standards adopted by the Company as of 1 January 2024
The following amendments to existing standards as issued by the IASB and endorsed by the EU, that are relevant to the Company’s
activities apply as of 1 January 2024:
IAS 1, Amendments, Classification of Liabilities as Current or Non-Current and Non-current liabilities with covenants
The amendments, published in January 2020, introduce a definition of settlement of a liability, while they make clear that the
classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period.
In addition, it is clarified that the assessment made at the end of the reporting period for liabilities’ classification is not affected by
the expectations about events after the reporting period and whether an entity will exercise its right to defer settlement of a liability.
The Board also clarified that when classifying liabilities as current or non-current, an entity can ignore only those conversion options
that are classified as equity.
In October 2022, the IASB issued “
Non-current Liabilities with Covenants (Amendments to IAS 1)”
an entity’s right to defer their settlement for at least 12 months after the reporting date, is subject to the entity complying with
conditions after the reporting period (“future covenants”). The amendments specify that covenants to be complied with after the
reporting date do not affect the classification of debt as current or non-current at the reporting date. However, the amendments
require a company to disclose information about these covenants in the notes to the financial statements.
The adoption of the amendments had no impact on the financial statements.
Notes to the Financial Statements
.
8
Page 31 December 2024 Financial Statements
(b) New and amended standards not yet adopted by the Company
A number of new standards and amendments to existing standards are effective after 2024, as they have not yet been endorsed by
the EU or have not been early applied by the Company. Those that may be relevant to the Company’s activities are set out below:
IFRS 18, Presentation and Disclosure in Financial Statements (effective 1 January 2027, not yet endorsed by EU)
In April 2024, the IASB published the new standard IFRS 18 “Presentation and Disclosure in Financial Statements” which will replace
IAS 1 “Presentation of Financial Statements”. The new standard sets out the requirements for presentation and disclosures in
financial statements with focus on the income statement and reporting of financial performance, in order to ensure that financial
statements provide relevant information that faithfully represents an entity’s financial position, performance, and cash flows.
Specifically, the new standard contains new guidance regarding the structure of the income statement, as well as disclosure
requirements for Management-defined Performance Measures (MPMs). In addition, it provides enhanced guidance on aggregation
and disaggregation of information on the face of financial statements and in the notes, while sets out general requirements for the
classification and presentation of assets, liabilities, equity, income, and expenses.
The new standard is effective for annual periods beginning on or after January 1, 2027, with early adoption permitted and will also
apply to comparative information.
Adoption of IFRS 18 is not expected to impact the financial statements.
IFRS 9 & IFRS 7, Amendments to the Classification and Measurement of Financial Instruments (effective 1 January 2026, not yet
endorsed by EU)
In May 2024, the IASB issued “Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS
9 and IFRS 7”. The amendments clarify the requirements related to the derecognition of financial liabilities settled through
electronic payment systems, provide additional guidance for the SPPI assessment of financial instruments with contingent features,
non-recourse features, as well as for transactions that are contractually linked instruments.
Additionally, the amendments introduce disclosure requirements regarding financial instruments with contingent features, as well
as for investment in equity instruments designated at FVOCI.
The amendments are effective for annual reporting periods beginning on or after 1 January 2026 with earlier application permitted.
The adoption of the amendments is not expected to impact the financial statements.
Annual improvements to IFRSs - Volume 11 (effective 1 January 2026, not yet endorsed by EU)
In July 2024, the IASB issued amendments to several IFRS standards, which resulted from the IASB’s annual improvements process.
This volume includes minor amendments to several standards namely :
-IFRS 1 “First -time Adoption of International Financial Reporting Standards” on Clarifications on hedge accounting for first-time
adopters,
-IFRS 7 “Financial Instruments: Disclosures” and its accompanying Guidance on implementing IFRS 7
in disclosures related to
derecognition, fair value and credit risk,
- IFRS 9 “Financial Instruments” on clarifications about lessee derecognition of lease liabilities and on definition of transaction price
over the initial measurement of trade receivables,
-IFRS 10 “Consolidated Financial Statements” on the determination of a 'De Facto Agent' and
-IAS 7 “Statement of Cash-Flows” on definition of cost method.
The adoption of the amendments is not expected to impact the financial statements.
2.2 Material accounting policies
2.2.1 Investments in subsidiaries
Investments in subsidiaries, including investments acquired through common control transactions, are accounted at cost less any
impairment losses. Cost is the fair value of the consideration given being the amount of cash or shares issued.
Notes to the Financial Statements
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As an exception to the above measurement basis, when the Company transfers a business sector to a new subsidiary formed for
this purpose in a transaction that does not have commercial substance, the Company’s investment in that newly formed subsidiary
is recognized at carrying amount of the net assets given up.
Dividend income from investments in subsidiaries is recognised in the income statement when the right to receive payment is
established, that is when the dividend distribution is approved by the appropriate body of the entity.
A listing of the Company’s subsidiaries is set out in note 10.
2.2.2 Foreign currencies
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in the income
statement.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates
prevailing at each reporting date and exchange differences are recognized in the income statement.
Non-monetary assets and liabilities are translated into the functional currency at the exchange rates prevailing at initial recognition.
2.2.3 Interest income and expense
Interest income and expense are recognized in the income statement for all interest bearing financial instruments on an accrual
basis, using the effective interest rate (EIR) method. The effective interest rate is the rate that exactly discounts estimated future
cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the gross
carrying amount of the financial asset or to the amortized cost of a financial liability. When calculating the EIR for financial
instruments, the Company estimates future cash flows considering all contractual terms of the financial instrument but does not
consider expected credit losses.
The EIR calculation includes fees and basis points paid or received that are an integral part of the effective interest rate, transaction
costs, and other premiums or discounts. Transaction costs include incremental costs that are directly attributable to the acquisition
or issue of a financial asset or liability.
The amortized cost of a financial asset or liability is the amount at which it is measured upon initial recognition minus principal
repayments, plus or minus cumulative amortization using the EIR (as described above) and for financial assets it is adjusted for the
expected credit loss allowance. The gross carrying amount of a financial asset is its amortized cost before adjusting for ECL
allowance.
The Company calculates interest income and expense by applying the EIR to the gross carrying amount of non-impaired financial
assets (exposures in Stage 1 and 2) and to the amortized cost of financial liabilities respectively.
For financial assets that have become credit-impaired subsequent to initial recognition (exposures in Stage 3), the Company
calculates interest income by applying the effective interest rate to the amortized cost of the financial asset (i.e. gross carrying
amount adjusted for the expected credit loss allowance). If the asset is no longer credit -impaired, then the EIR is applied again to
the gross carrying amount.
Interest income and expense are presented separately in the income statement for all interest bearing financial instruments within
net interest income.
2.2.4 Impairment of subsidiaries
The Company assesses at each reporting date whether there is any indication that its investments in subsidiaries may be impaired
by considering both external and internal sources of information, such as the net assets compared to the carrying value of each
subsidiary, as well as forward looking developments and/or economy sector in which they operate. In addition, the collection of
dividends from subsidiaries is also a potential trigger that may indicate that the respective investments are impaired. In particular,
when dividend is received from the Company’s subsidiaries, it is also examined whether that dividend exceeds the total
comprehensive income of the subsidiary in the period the dividend is declared, to determine whether an indication of impairment
exists.
Notes to the Financial Statements
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If any indication of impairment exists at each reporting date, the Company estimates the recoverable amount of the investment,
being the higher of its fair value less costs to sell and its value in use.
An impairment loss is recognized in profit or loss when the recoverable amount of the investment is less than its carrying amount.
Investments in subsidiaries for which an impairment loss was recognized in prior reporting periods, are reviewed for possible
reversal of such impairment at each reporting date.
2.2.5 Financial assets
Financial assets – Classification and measurement
The Company classifies its financial assets based on the business model for managing those assets and their contractual cash flow
characteristics. Accordingly, financial assets are classified into one of the following measurement categories: amortized cost (AC)
and fair value through other comprehensive income (FVOCI).
Financial Assets measured at Amortized Cost (‘AC’)
The Company classifies and measures a financial asset at AC only if both of the following conditions are met:
(a) The financial asset is held within a business model whose objective is to collect contractual cash flows (hold-to-collect business
model) and,
(b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding (SPPI).
These financial assets are recognized initially at fair value plus or minus direct and incremental transaction costs that are attributable
to the acquisition of these assets, and are subsequently measured at amortized cost, using the effective interest rate (EIR) method
(as described in 2.2.3 above).
Interest income, realized gains and losses on derecognition, and changes in expected credit losses from assets classified at AC, are
included in the income statement.
Financial Assets measured at Fair Value through Other Comprehensive Income (‘FVOCI’)
The Company classifies and measures a financial asset at FVOCI only if both of the following conditions are met:
(a) The financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and
selling financial assets (hold-to-collect-and-sell business model) and,
(b) The contractual terms of the financial asset give rise on specified dates to cash flows that are SPPI.
Financial assets that meet these criteria are debt instruments and are measured initially at fair value, plus or minus direct and
incremental transaction costs that are attributable to the acquisition of these assets.
Subsequent to initial recognition, FVOCI debt instruments are re-measured at fair value through OCI, except for interest income,
related foreign exchange gains or losses and expected credit losses, which are recognized in the income statement. Cumulative
gains and losses previously recognized in OCI are transferred from OCI to the income statement when the debt instrument is
derecognised.
Business model and contractual characteristics assessment
The business model assessment determines how the Company manages a group of assets to generate cash flows. That is, whether
the Company's objective is solely to collect contractual cash flows from the asset, to realize cash flows from the sale of assets, or
both to collect contractual cash flows and cash flows from the sale of assets. In addition, the business model is determined after
aggregating the financial assets into groups (business lines) which are managed similarly rather than at an individual instrument’s
level.
The business model is determined by the Company’s key management personnel consistently with the operating model, considering
how financial assets are managed in order to generate cash flows, the objectives and how performance of each portfolio is
monitored and reported and any available information on past sales and on future sales’ strategy, where applicable.
Notes to the Financial Statements
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Accordingly, in making the above assessment, the Company will consider a number of factors including the risks associated with the
performance of the business model and how those risks are evaluated and managed, the related personnel compensation, and the
frequency, volume and reasons of past sales, as well as expectations about future sales activity.
Types of business models
The Company’s business models fall into two categories, which are indicative of the key strategies used to generate returns. The
hold-to-collect (HTC) business model has the objective to hold the financial assets in order to collect contractual cash flows. Financial
assets classified within this business model include investment securities and due from banks, which are measured at amortized
cost. Sales within this model are monitored and may be performed for reasons which are not inconsistent with this business model.
More specifically, sales of financial assets due to credit deterioration, as well as sales close to the maturity are considered consistent
with the objective of hold-to-collect contractual cash flows regardless of value and frequency. Sales for other reasons may be
consistent with the HTC model such as liquidity needs in any stress case scenario or sales made to manage high concentration level
of credit risk. Such sales are monitored and assessed depending on frequency and value to conclude whether they are consistent
with the HTC model.
The hold-to-collect-and-sell business model (HTC&S) has the objective both to collect contractual cash flows and sell the assets.
Activities such as liquidity management, interest yield and duration are consistent with this business model, while sales of assets
are integral to achieving the objectives of this business model. Financial assets classified within this business model include
investment securities which are measured at FVOCI, subject to meeting the SPPI assessment criteria.
Cash flow characteristics assessment
For a financial asset to be measured at AC, its contractual terms must give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.
For the purpose of this assessment principal is defined as the fair value of the asset at initial recognition and interest as the
consideration for the time value of money, credit risk, other basic lending risks and a profit margin.
More specifically, at the initial recognition of a financial asset, an assessment is performed of whether the financial asset contains
a contractual term that could change the amount or timing of contractual cash flows in a way that it would not be consistent with
the above condition. The Company considers the existence of various features, including among others, prepayment terms,
deferred interest-free payments, extension and equity conversion options. Where the contractual terms introduce exposure to risk
or volatility that are inconsistent with a basic lending arrangement, the related financial asset is considered to have failed the SPPI
assessment and will be measured at FVTPL.
In addition, for the purposes of the SPPI assessment, if a contractual feature could have an effect that is de-minimis on the
contractual cash flows of the financial asset, it does not affect its classification. Moreover, a contractual feature is considered as not
genuine by the Company, if it affects the instrument’s contractual cash flows only on the occurrence of an event that is extremely
rare, highly abnormal and very unlikely to occur. In such a case, it does not affect the instrument’s classification.
Derecognition of financial assets
The Company derecognizes a financial asset when its contractual cash flows expire, or the rights to receive those cash flows are
transferred in an outright sale in which substantially all risks and rewards of ownership have been transferred. In addition, a financial
asset is derecognized even if rights to receive cash flows are retained but at the same time the Company assumes an obligation to
pay the received cash flows without a material delay (pass through agreement) or when substantially all the risks and rewards are
neither transferred nor retained but the Company has transferred control of the asset. Control is transferred if, and only if, the
transferee has the practical ability to sell the asset in its entirety to unrelated third party and is able to exercise that ability
unilaterally and without imposing additional restrictions on the transfer.
On derecognition of a financial asset, the difference between the carrying amount of the asset and the consideration received
(including any new asset obtained less any new liability assumed) is recognized in income statement.
Modification of financial assets that may result in derecognition
In addition, derecognition of financial asset arises when its contractual cash flows are modified and the modification is considered
substantial enough so that the original asset is derecognized and a new one is recognised. Substantial modifications resulting in
Notes to the Financial Statements
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derecognition may include among others change in borrower, change in the asset’s denomination currency, debt consolidation of
unsecured exposure into a single new secured asset. The Company records the modified asset as a ‘new’ financial asset at fair value
plus any eligible transaction costs and the difference with the carrying amount of the existing one is recorded in the income
statement as derecognition gain or loss.
2.2.6 Financial liabilities
Financial liabilities - Classification and measurement
The Company classifies its financial liabilities at amortized cost category.
These financial liabilities are recognized initially at fair value minus transaction costs that are attributable to the issue of these
liabilities, and are subsequently measured at amortized cost, using the effective interest rate (EIR) method (as described in 2.2.3
above).
Derecognition of financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires. When an existing
financial liability of the Company is replaced by another from the same counterparty on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as an extinguishment of the original
liability and the recognition of a new liability and any difference arising is recognized in the income statement.
The Company considers the terms to be substantially different, if the discounted present value of the cash flows under the new
terms, including any fees paid net of any fees received and discounted using the original effective interest rate, is at least 10%
different from the discounted present value of the remaining cash flows of the original financial liability.
If an exchange of debt instruments or modification of terms is accounted for as an extinguishment, any costs or fees incurred are
recognized as part of the gain or loss on the extinguishment. If the exchange or modification is not accounted for as an
extinguishment, any costs or fees incurred adjust the carrying amount of the liability and are amortized over the remaining term of
the modified liability.
Similarly, when the Company repurchases any debt instruments issued by the Company, it accounts for such transactions as an
extinguishment of debt.
2.2.7 Fair value measurement of financial instruments
Fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date under current market conditions in the principal or, in its
absence, the most advantageous market to which the Company has access at that date. The fair value of a liability reflects its non-
performance risk.
When available, the Company measures the fair value of an instrument using the quoted price in an active market for that
instrument. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume
to provide pricing information on an ongoing basis. If there is no quoted price in an active market, then the Company uses other
valuation techniques that maximize the use of relevant observable inputs and minimize the use of unobservable inputs. The chosen
valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction.
The Company has elected to use mid-market pricing as a practical expedient for fair value measurements within a bid-ask spread.
The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price, i.e. the fair value
of the consideration given or received unless the Company determines that the fair value at initial recognition differs from the
transaction price. In this case, if the fair value is evidenced by a quoted price in an active market for an identical asset or liability
(i.e. Level 1 input) or based on a valuation technique that uses only data from observable markets, a day one gain or loss is
recognized in the income statement. On the other hand, if the fair value is evidenced by a valuation technique that uses
unobservable inputs, the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair
value at initial recognition and the transaction price (day one gain or loss). Subsequently the deferred gain or loss is amortized on
an appropriate basis over the life of the instrument or released earlier if a quoted price in an active market or observable market
data become available or the financial instrument is closed out.
Notes to the Financial Statements
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All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy based on the lowest level input that is significant to the fair value measurement as a whole.
For assets and liabilities that are measured at fair value on a recurring basis, the Company recognizes transfers into and out of the
fair value hierarchy levels at the beginning of the quarter in which a financial instrument's transfer was effected.
2.2.8 Impairment of financial assets
The Company recognizes allowance for expected credit losses (ECL) that reflect changes in credit quality since initial recognition to
financial assets that are measured at AC. ECL are a probability-weighted average estimate of credit losses that reflects the time
value of money.
Upon initial recognition of the financial instruments, the Company records a loss allowance equal to 12-month ECL, being the ECL
that result from default events that are possible within the next twelve months. Subsequently, for those financial instruments that
have experienced a significant increase in credit risk (SICR) since initial recognition, a loss allowance equal to lifetime ECL is
recognized, arising from default events that are possible over the expected life of the instrument.
Accordingly, ECL are recognized using a three-stage approach based on the extent of credit deterioration since origination:
•
Stage 1 – When there is no significant increase in credit risk since initial recognition of a financial instrument, an amount equal
to 12-month ECL is recorded. The 12 – month ECL represent a portion of lifetime losses, that result from default events that
are possible within the next 12 months after the reporting date and is equal to the expected cash shortfalls over the life of the
instrument or group of instruments, due to loss events probable within the next 12 months. Not credit-impaired financial assets
that are either newly originated or purchased, as well as assets recognized following a substantial modification accounted for
as a derecognition, are classified initially in Stage 1.
•
Stage 2 – When a financial instrument experiences a SICR subsequent to origination but is not considered to be in default, it is
included in Stage 2. Lifetime ECL represent the expected credit losses that result from all possible default events over the
expected life of the financial instrument.
•
Stage 3 – Financial instruments that are considered to be in default are included in this stage. Similar to Stage 2, the allowance
for credit losses captures the lifetime expected credit losses.
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of
that exposure have occurred:
•
The borrower faces a significant difficulty in meeting his financial obligations.
•
There has been a breach of contract, such as a default or past due event.
•
The Company, for economic or contractual reasons relating to the borrower’s financial difficulty, has granted to the borrower
a concession(s) that the Company would not otherwise consider.
•
There is a probability that the borrower will enter bankruptcy or other financial re-organization.
The Company determines the risk of default using an internal credit rating scale. In particular, the Company considers financial
assets as credit impaired if the internal rating of the counterparty corresponds to a rating equivalent to "C" (Moody's rating scale).
Significant increase in credit risk (SICR) and staging allocation
Determining whether a loss allowance should be based on 12-month expected credit losses or lifetime expected credit losses
depends on whether there has been a significant increase in credit risk (SICR) of the financial assets since initial recognition.
At each reporting date, the Company performs an assessment as to whether the risk of a default occurring over the remaining
expected lifetime of the exposure has increased significantly from the expected risk of a default estimated at origination for that
point in time.
Specifically, the assessment of SICR is performed on an individual basis based on the number of notches downgrade in the internal
credit rating scale since the origination date.
Notes to the Financial Statements
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Measurement of Expected Credit Losses/ECL Key Inputs
The ECL calculations are based on the term structures of the probability of default (PD), the loss given default (LGD) and the exposure
at default (EAD). Generally, these parameters are based on observed point-in-time and historical data, derived by international
rating agencies.
The PDs are obtained by an international rating agency using risk methodologies that maximize the use of objective non-judgmental
variables and market data. The Company assigns internal credit ratings to each counterparty based on these PDs.
The Exposure at default (EAD) is an estimate of the exposure at a future default date, taking into account expected changes in the
exposure after the reporting date.
The LGD is typically based on historical data derived mainly from rating agencies’ studies but may also be determined considering
the existing and expected liabilities structure of the obligor and macroeconomic environment.
Presentation of impairment allowance
For financial assets measured at amortized cost, impairment allowance is recognized as a loss allowance reducing the gross carrying
amount of the financial assets in the balance sheet. The respective ECL is recognised within impairment losses.
Write-off of financial assets
Where the Company has no reasonable expectations of recovering a financial asset either in its entirety or a portion of it, the gross
carrying amount of that instrument is reduced directly, partially or in full, against the impairment allowance. The amount written-
off is considered as derecognized. Subsequent recoveries of amounts previously written off decrease the amount of the impairment
losses in the income statement.
2.2.9 Income tax
Income tax consists of current and deferred tax.
(i) Current income tax
Income tax payable on profits, based on the applicable tax law and the tax rate enacted at the reporting date, is recognized as an
expense in the period in which profits arise.
(ii) Deferred tax
Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax base of assets and
liabilities and their carrying amounts in the financial statements. Deferred tax assets and liabilities are measured at the tax rates
that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted by the balance sheet date.
Deferred tax assets are recognized where it is probable that future taxable profit will be available against which the temporary
differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Any such
reduction is reversed to the extent that it becomes probable that sufficient taxable profit will be available. The Company recognises
a previously unrecognised deferred tax asset to the extent that it has become probable that future taxable profit will allow the
deferred tax asset to be recovered. The deferred tax asset on income tax losses carried forward is recognized as an asset when it is
probable that future taxable profits will be available against which these losses can be utilized.
The Company has applied the mandatory temporary exception (relief) to the requirement of IAS 12 and does not recognise or
disclose information about deferred taxes arising from the Pillar Two Income taxes.
(iii) Uncertain tax positions
The Company determines and assesses all material tax positions taken, including all, if any, significant uncertain positions, in all tax
years that are still subject to assessment (or when the litigation is in progress) by relevant tax authorities. In evaluating tax positions,
the Company examines all supporting evidence (Ministry of Finance circulars, individual rulings, case law, past administrative
practices, ad hoc tax/legal opinions etc.) to the extent they are applicable to the facts and circumstances of the particular Company’s
case/ transaction.
Notes to the Financial Statements
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In addition, judgments concerning the recognition of a provision against the possibility of losing some of the tax positions are highly
dependent on advice received from internal/ external legal counselors. For uncertain tax positions with a high level of uncertainty,
the Company recognizes, on a transaction by transaction basis, or together as a group, depending on which approach better predicts
the resolution of the uncertainty using an expected value (probability-weighted average) approach: (a) a provision against tax
receivable which has been booked for the amount of income tax already paid but further pursued in courts or (b) a liability for the
amount which is expected to be paid to the tax authorities. The Company presents in its balance sheet all uncertain tax balances as
current or deferred tax assets or liabilities.
The Company as a general rule has opted to obtain an ‘Annual Tax Certificate’, which is issued after a tax audit is performed by the
same statutory auditor or audit firm that audits the annual financial statements. Further information in respect of the Annual Tax
Certificate and the related tax legislation, is provided in note 8.
2.2.10 Employee benefits
(i) Short term benefits
Short term employee benefits are those expected to be settled wholly before twelve months after the end of the annual reporting
period in which the employees render the related services and are expensed as these services are provided.
(ii) Pension obligations
The Company provides a number of defined contribution pension plans where annual contributions are invested and allocated to
specific asset categories. Eligible employees are entitled to the overall performance of the investment. The Company's contributions
are recognized as employee benefit expense in the year in which they are paid.
(iii) Standard legal staff retirement indemnity obligations (SLSRI) and termination benefits
The Company operates unfunded defined benefit plans, under the regulatory framework. In accordance with the local labor
legislation, the Company provides for staff retirement indemnity obligation for employees which are entitled to a lump sum
payment based a) on the number of years of service, as of the date when employee service first leads to benefits under the plan
until the date when further employee service will lead to no material amount of further benefits, and b) the level of remuneration
at the date of retirement, if they remain in the employment of the Company until normal retirement age. More specifically, in line
with the decision of IFRIC Committee for IAS 19 fact pattern issued in May 2021, the attribution of the benefit begins from the date
when the employee service first leads to benefits under the terms of the plan, and not from the employment date, until the date
when further employee service will lead to no material amount of further benefits.
In addition, the Company provides termination benefits mainly in respect of the Voluntary Exit Schemes (VES), which have been
implemented through either lump-sum payments or long-term leaves during which the employees will be receiving a percentage
of a monthly salary, or a combination thereof. Provision has been made for the actuarial value of the lump sum payable on
retirement (SLSRI) and termination benefits using the projected unit credit method. Under this method the cost of providing
retirement indemnities and termination benefits is charged to the income statement so as to spread the cost over the period of
service of the employees, in accordance with the respective actuarial valuations which are performed every year.
The SLSRI and termination benefits obligation is calculated as the present value of the estimated future cash outflows using interest
rates of high quality corporate bonds. The currency and term to maturity of the bonds used are consistent with the currency and
estimated term of the retirement benefit obligations. Actuarial gains and losses that arise in calculating the Company’s SLSRI and
termination benefits obligations are recognized directly in other comprehensive income in the period in which they occur and are
not reclassified to the income statement in subsequent periods.
Interest cost on the staff retirement indemnity and termination benefits obligations, as well as service cost, consisting of current
service cost, past service cost and gains or losses on settlement are recognized in the income statement.
Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or whenever
an employee accepts voluntary redundancy in exchange for these benefits (including those in the context of the VES implemented
by the Company). The Company recognizes termination benefits at the earlier of the following dates: (a) when the Company can no
longer withdraw the offer of those benefits; and (b) when the Company recognizes costs for a restructuring that involves the
payment of termination benefits. Any reversals of the SLRSI obligation arising from employees that are included in the long-term
leaves scheme are accounted for as a curtailment gain recognized in the income statement. In the case of an offer made to
Notes to the Financial Statements
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Page 31 December 2024 Financial Statements
encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept
the offer. Termination benefits falling due more than 12 months after the end of the reporting period are discounted to their present
value.
(iv) Performance-based cash payments
The Company's Management awards high performing employees with bonuses in cash, from time to time, on a discretionary basis.
Cash payments requiring only Management approval are recognized as employee benefit expenses on an accrual basis. Cash
payments requiring General Meeting approval as distribution of profits to staff are recognized as employee benefit expense in the
accounting period that they are approved by the Company’s shareholders.
(v) Share-based payments
The Company’s Management awards employees with bonuses in the form of shares and share options on a discretionary basis and
after taking into account the current legal framework. Non-performance related shares vest in the period granted. Share based
payments that are contingent upon the achievement of a performance and service condition, vest only if both conditions are
satisfied.
The fair value of the share options granted is recognized as an employee benefit expense over the vesting period, with an equal
credit in equity i.e. no impact on the Company’s equity. The amount ultimately recognised as an expense is based on the number
of awards that meet the related service and non-market performance conditions at the vesting date.
The fair value of the share options at grant date is determined by using an adjusted option pricing model which takes into account
the exercise price, the exercise dates, the term of the option, the share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and the risk-free interest rate for the term of the options. The expected volatility is
measured at the grant date of the options and is based on the historical volatility of the share price.
For share-based payment awards with non-vesting conditions, the fair value of the share-based payment at grant date also reflects
such conditions and there is no true-up for differences between expected and actual outcomes.
When the options are exercised and new shares are issued, the proceeds received net of any directly attributable transaction costs
are credited to share capital (par value) and share premium.
Share options granted by the Company to employees of group entities are treated as a contribution by the Company to these
entities, thus increasing the investment cost in them.
2.2.11 Related party transactions
Related parties of the Company include:
(a) an entity that has control over the Company and entities controlled, jointly controlled or significantly influenced by this entity,
as well as members of its key management personnel and their close family members;
(b) an entity that has significant influence over the Company and entities controlled by this entity;
(c) members of key management personnel of the Company, their close family members and entities controlled or jointly controlled
by the abovementioned persons;
(d) subsidiaries; and
(e) post-employment benefit plans established for the benefit of the Group’s employees.
Transactions of similar nature are disclosed on an aggregate basis. All banking transactions entered into with related parties are in
the normal course of business and are conducted on an arm's length basis.
2.2.12 Provisions and contingent liabilities
Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation, and reliable estimates of the
amount of the obligation can be made.
Notes to the Financial Statements
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Page 31 December 2024 Financial Statements
The amount recognized as a provision is the best estimate of the expenditure required to settle the present obligation at each
reporting date, taking into account the risks and uncertainties surrounding the amount of such expenditure. Where the effect of
the time value of money is material, the amount of the provision is the present value of the estimated future expenditures expected
to be required to settle the obligation.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If, subsequently, it is no longer
probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is
reversed.
A provision is not recognized and a contingent liability is disclosed when it is not probable that an outflow of resources will be
required to settle the obligation, when the amount of the obligation cannot be measured reliably or in case that the obligation is
considered possible and is subject to the occurrence or non-occurrence of one or more uncertain future events.
2.2.13 Share capital
Ordinary shares and preference shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction from the proceeds, net of tax.
Dividend distribution on shares is recognized as a deduction in the Company’s equity when approved by the General Meeting of
shareholders and the required regulatory approvals, if any, are obtained. Interim dividends are recognized as a deduction in the
Company's equity when approved by the Board of Directors.
Intercompany non-cash distributions that constitute transactions between entities under common control are recorded in the
Company’s equity by reference to the book value of the assets distributed.
Where the Company purchases own shares (treasury shares), the consideration paid including any directly attributable incremental
costs (net of income taxes), is deducted from shareholders’ equity until the shares are cancelled, reissued or disposed of. Where
such shares are subsequently sold or reissued, any consideration received is included in shareholders’ equity.
2.2.14 Cash and cash equivalents
Cash and cash equivalents include cash in hand and due from credit institutions that are all carried at amortized cost.
3. Critical accounting estimates and judgments in applying accounting policies
In the process of applying the Company’s accounting policies, the Management makes various judgments, estimates and
assumptions that may affect the reported amounts of assets and liabilities, revenues and expenses recognized in the financial
statements within the next financial year and the accompanying disclosures. Estimates and judgments are continually evaluated
and are based on current conditions, historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. Revisions to estimates are recognized prospectively.
The most significant areas in which the Company makes judgments, estimates and assumptions in applying its accounting policies
are set out below:
3.1
Impairment losses on financial assets
The expected credit losses (ECL) measurement of financial instruments requires management to apply judgement relating to the
risk parameters used in the calculation of the ECL and in assessing whether a significant increase of credit risk (SICR) event has
occurred since initial recognition. These estimates are based on quantitative and qualitative information reasonable and
supportable forward looking information. A degree of uncertainty is involved in making estimations using assumptions that may be
subjective and sensitive to the risk factors.
Specifically, the assessment of SICR is performed on an individual basis based on the number of notches downgrade in the internal
credit rating scale since the origination date, while the PD used for the ECL measurement is received by an international rating
agency using risk methodologies that maximize the use of observable variables and market data. Furthermore, the LGD used is
based on historical data derived from rating agencies’ studies that present the recoveries on such instruments taking into account
the seniority of the exposure.
competent resources.
Notes to the Financial Statements
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Page 31 December 2024 Financial Statements
3.2
Impairment losses on investment in subsidiaries
The Company assesses for impairment its investment in subsidiaries at each reporting date as described in note 2.2.4. If an indication
of impairment exists, the Company performs an impairment test by comparing the carrying value of the investment in the subsidiary
with its estimated recoverable amount, determined as the higher of its fair value less cost to sell and its value in use, based on
reasonable and supportable information. The calculation of the recoverable amount involves the exercise of judgement in selecting
the appropriate parameters, such as the applicable discount and growth rates.
3.3 Income tax
The Company is subject to income taxes and estimates are required in determining the liability for income taxes. The Company
recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due or for anticipated
tax disputes. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such
differences will impact the income tax in the period in which such determination is made.
In addition, the Company recognizes deferred tax assets to the extent that it is probable that sufficient taxable profit will be available
against which unused tax losses and deductible temporary differences can be utilized. Recognition therefore involves judgment
regarding the future financial performance of the Company. As at 31 December 2024, based on the Management’s assessment the
Company is not expected to have sufficient future taxable profits, against which the unused tax losses can be utilized (note 8).
3.4 Retirement and termination benefit obligations
The present value of the retirement and termination benefits’ obligations depends on a number of factors that are determined on
an actuarial basis using a number of assumptions, such as the discount rate and future salary increases. Any changes in these
assumptions impact the carrying amount of the respective benefits’ obligations.
The Company determines the appropriate discount rate used to calculate the present value of the estimated retirement and
termination benefits’ obligations, at the end of each year with reference to interest rates of high quality corporate bonds. The
currency and term to maturity of the bonds used are consistent with the currency and estimated average term to maturity of the
retirement benefit obligations. The salary rate increase assumption is based on future inflation estimates reflecting also the
Company's reward structure and expected market conditions.
Other assumptions for retirement and termination benefits’ obligations, such as future inflation estimates, are based in part on
current and expected market conditions.
For information in respect of the sensitivity analysis of the Company’s retirement and termination benefits’ obligations to
reasonably possible, at the time of preparation of these financial statements, changes in the abovementioned key actuarial
assumptions, refer to note 13.
3.5 Share-based payments
The Company grants shares and share options to its employees as well as the employees of the Group’s entities, as a common
feature of employee remuneration.
For shares granted to employees, the fair value is measured directly at the market price of the entity’s shares, adjusted to take into
account the terms and conditions upon which the shares were granted. For share options granted to employees, in many cases
market prices are not available because the options granted are subject to terms and conditions that do not apply to traded options.
If this is the case, the Company estimates the fair value of the equity instruments granted using a valuation technique, which is
consistent with generally accepted valuation methodologies.
The valuation method and the inputs used to measure the share options granted to employees of the Company and its Group
entities are presented in note 16.
4. Financial risk management and fair value
The Company is exposed to financial risks such as credit risk, market risk (including currency and interest rate risk) liquidity risk,
operational risk and other non-financial risks, as well as to sustainability risks.
Notes to the Financial Statements
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Page 31 December 2024 Financial Statements
4.1 Financial risk factors and risk management
As part of its overall system of internal controls the Company has engaged in a Service Level Agreement (SLA) with Eurobank S.A. in
order to receive supporting and advisory services in all applicable areas of risk management (credit, market, liquidity and non-
financial risks) undertaken by the Company.
The Company’s overall risk management strategy seeks to minimize any potential adverse effects on its financial performance,
financial position and cash flows.
The main financial risks to which the Company is exposed relate to:
(a) Credit risk
The Company takes on exposure to credit risk which is the risk that a counterparty will be unable to fulfill its payment obligations
in full when due. The Company is exposed to credit risk arising mainly from subordinated instruments (note 9) issued by its
subsidiary Eurobank S.A. and from its deposits that are placed with the latter of € 265 million. Accordingly, the aggregate carrying
amount of the above financial assets approximates the maximum credit risk exposure of the Company.
(b) Market risk
The Company takes on exposure to market risk, which is the risk of potential financial loss due to an adverse change in market
variables, such as interest rates and foreign exchange rates.
The Company’s interest rate risk, which relates to the position in the aforementioned subordinated fixed rate instruments, is
eliminated by the subordinated Tier II debt instruments issued by the Company, which have equivalent terms with those of the
forme
r.
With respect to the deposits and borrowing of the Company, a sensitivity analysis is performed to assess the impact on net interest
income (NII) to a hypothetical change in the market interest rates.
The impact on NII is calculated under the scenario of an instantaneous parallel shift of all interest rates by +/- 100bps, for a 1-year
period, assuming a static balance sheet approach. As at 31 December 2024 the impact on NII, under the scenario of a parallel shift
in the yield curves, stands at € 2 million (+100bps) and € -2 million (-100bps) (31 December 2023: € 2 million and € -2 million,
respectively).
The Company’s financial assets and liabilities are in Euro, therefore, currency risk is eliminated.
(c) Liquidity risk
The maturity of the Company’s main assets and liabilities, which relate to the aforementioned subordinated instruments, match,
and the underlying cash flows are the same. Accordingly, the Company’s liquidity or cash flow risk for these instruments is
substantially eliminated. In addition, the majority of the Company’s aforementioned deposits with Eurobank S.A. mature within six
months.
(d) Sustainability risks
Sustainability risks are defined as potential losses arising from any negative financial impact for the Company, stemming from
current or prospective impacts of any climate-related & environmental, social or governance event(s) on Company’s counterparties
or invested assets.
4.2 Fair value of financial assets and liabilities
The Company’s financial instruments carried at amortized cost are categorised into the three levels of fair value hierarchy based on
whether the inputs to their fair values are market observable or unobservable, as follows:
●
Level 1 - Financial instruments are measured based on quoted prices (unadjusted) in active markets for identical financial
instruments that the Company can access at the measurement date. A market is considered active when quoted prices are
readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and
represent actually and regularly occurring transactions. The Company’s financial instruments categorised into Level 1 of the
fair value hierarchy refer to certain subordinated instruments issued by its subsidiary, Eurobank S.A. and held by the
Company (note 9) and the related subordinated Tier II instruments issued by the Company (note 12).
Notes to the Financial Statements
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Page 31 December 2024 Financial Statements
●
Level 2 – Financial instruments are measured using valuation techniques with inputs other than level 1 quoted prices,
observable either directly or indirectly, such as (i) quoted prices for similar financial instruments in active markets (ii) quoted
prices for identical financial instruments in markets that are not active, (iii) inputs other than quoted prices that are directly
or indirectly observable, mainly interest rates and yield curves observable at commonly quoted intervals, forward exchange
rates, equity prices, credit spreads and implied volatilities obtained from internationally recognised market data providers
and (iv) other unobservable inputs which are insignificant to the entire fair value measurement.
As at 31 December 2024,
none of the Company’s financial instruments were categorized into Level 2 of the fair value hierarchy.
●
Level 3 - Financial instruments are measured using valuation techniques with significant unobservable inputs. When
developing unobservable inputs, best information available is used, including own data, while at the same time market
participants’ assumptions are reflected (e.g. assumptions about risk). The Company’s financial instruments, which are
categorised into Level 3 of the fair value hierarchy refer to the deposits with Eurobank S.A., certain subordinated instruments
issued by its subsidiary, Eurobank S.A. and held by the Company (note 9) and the related subordinated Tier II instruments
issued by the Company (note 12).
Company's valuation processes and techniques
The fair value of the subordinated Tier II debt instruments issued by the Company (note 12) is determined using quoted market
prices, if available. If quoted prices are not available, fair values are determined based on third party valuations, quotes for similar
debt securities or by discounting the expected cash flows at a risk-adjusted rate, where the Company’s own credit risk is determined
using inputs indirectly observable, i.e. quoted prices of similar securities issued by the Group or other Greek issuers. For the year
ended 31 December 2024, the Company has enhanced the methodology applied for the classification of debt securities into the
three levels of the fair value hierarchy, by assigning a rating scale for each debt security, based on the quality and quantity of the
market data inputs used to calculate its fair price at a specific date. The debt securities are then allocated into levels based on
specific rating thresholds representing highly liquid to thinly traded debt securities.
Based on the above, as at 31 December 2024, the fair value of the Company’s Tier II debt instruments issued by the Company (note
12) classified at Level 1 of the fair value hierarchy amounted to € 691 million, while those categorized at Level 3 amounted to € 954
million (2023: € 1,226 million categorized at Level 2).
Respectively, the fair value of the debt instruments issued by the Bank and held by the Company (note 9), which is determined
based on the valuation of the related subordinated Tier II debt instruments issued by the Company, amounted to € 1,645 million, €
691 million of which were categorized at Level 1 of the fair value hierarchy and € 954 million at Level 3 (2023: € 1,226 million
categorized at Level 2).
Moreover, the carrying amount of the Company’s borrowing and deposits with Eurobank S.A. represent reasonable approximation
of their fair value.
5. Net interest income
In the year ended 31 December 2024, the interest expense that was recognised in the income statement mainly relates to the
subordinated Tier II instruments issued by the Company, while the interest income of a similar amount relates to the subordinated
Tier II notes issued by Eurobank S.A. and held by the Company.
Notes to the Financial Statements
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Page 31 December 2024 Financial Statements
6. Other income/(expenses)
In the year ended 31 December 2024, other income /(expenses), amounting to € 4 million (2023: € 4 million), consist of € 2 million
income from IT services (2023: € 3 million) and € 2 million income regarding loan portfolio’s related services provided to the Bank
(2023: € 1 million).
7. Operating expenses
In the year ended 31 December 2024, the operating expenses of € 10 million (2023: € 11 million) mainly refer: a) to staff cost € 5.0
million (2023: € 4.4 million) and b) other administrative expenses € 5.4 million (2023: € 6.3 million). Administrative expenses include
€ 3.7 million (2023: € 4.3 million) insurance premiums relating to the Group’s financial lines insurance, including protection for
professional liability.
8. Income tax
According to Law 4172/2013 currently in force, the Greek corporate tax rate for legal entities other than credit institutions (i.e.
credit institutions that fall under the requirements of article 27A of Law 4172/2013 regarding eligible DTAs/deferred tax credits) is
22%. In addition, the withholding tax rate for dividends distributed, other than intragroup dividends, is 5%. In particular, the
intragroup dividends under certain preconditions are relieved from both income and withholding tax.
For the year ended 31 December 2024, an amount of € 4 million current income tax has been recognized by the Company related
to the top up tax (see below). Based on the management’s assessment the Company is not expected to have sufficient future taxable
profits against which the unused tax losses can be utilized and accordingly, in the year ended 31 December 2024, no deferred tax
has been recognized in the statement of comprehensive income.
Pillar Two income taxes
The Pillar Two legislation that introduces a minimum global tax rate at 15% on multinational entities with consolidated revenues
over € 750 million (top up tax) is effective as of 1 January 2024. In accordance with the Pillar Two legislation, the Ultimate Parent
Entity of an MNE Group is primarily liable for the Globe Top-up Tax of all Low-Tax (subject to an ETR below 15%) Constituent Entities.
Top-up taxation is mainly triggered when the jurisdictional GloBE ETR is below 15% and is levied on the aggregated Globe Pillar Two
results of all Constituent Entities per jurisdiction.
The Company, as the ultimate parent entity of the Group, has identified potential exposure to Pillar Two income taxes mainly
through its subsidiaries in Bulgaria and Cyprus, containing the operations of Eurobank Cyprus and those of Hellenic Bank group. The
Pillar Two effective tax rate is lower than 15% in the above jurisdictions mainly due to their nominal corporate tax rates (CIT)
applying on their profits (i.e. the current CIT in Bulgaria and Cyprus is 10% and 12.5% respectively). For the year ended 31 December
2024, the Group has recognized a current tax expense of € 21.6 million related to the top up tax applicable on the profits earned in
the aforementioned jurisdictions.
For the year 2024, the Company is required to pay a Top -up Tax with respect to earnings of Eurobank Cyprus and its subsidiaries,
and the corresponding tax recognized for the year ended 31 December 2024 amounts to € 4 million.
Tax certificate and open tax years
For fiscal years starting from 1 January 2016 onwards, pursuant to the Tax Procedure Code, an ‘Annual Tax Certificate’ on an optional
basis, is provided for the Greek entities, with annual financial statements audited compulsorily, which is issued after a tax audit is
performed by the same statutory auditor or audit firm that audits the annual financial statements. The Company has opted to obtain
such certificate.
The Company’s open tax years are 2020-2024. The tax certificates, which have been obtained by the Company are unqualified for
the open tax years until 2023, while for the year ended 31 December 2024, the tax audit from external auditor is in progress.
In accordance with the Greek tax legislation and the respective Ministerial Decisions issued, additional taxes and penalties may be
imposed by the Greek tax authorities following a tax audit within the applicable statute of limitations (i.e. five years as from the end
of the fiscal year within which the relevant tax return should have been submitted) , irrespective of whether an unqualified tax
certificate has been obtained from the tax paying company.
Notes to the Financial Statements
.
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Page 31 December 2024 Financial Statements
In reference to its total uncertain tax positions, the Company assesses all relevant developments (e.g. legislative changes, case law,
ad hoc tax/legal opinions, administrative practices) and raises adequate provisions.
Unused tax losses
As at 31 December 2024, the Company has not recognised deferred tax asset (DTA) on unused tax losses amounted to € 276 million
(2023: € 337 million). The analysis of unrecognized DTA on unused tax losses of the Company per year of maturity of related tax
losses is presented in the table below:
9. Investment securities
As at 31 December 2024, the total carrying amount of the subordinated debt instruments, issued by the Bank, held by the Company
and categorised as at amortized cost, amounted to € 1,556 million (31 December 2023: € 1,277 million), including accrued interest
of € 15.2 million (31 December 2023: € 32.9 million), € 6.5 unamortized issuance costs (31 December 2023: € 4.2 million) and
impairment allowance of € 2.5 million (31 December 2023: € 1.5 million) (12-month ECL). In particular, in the year ended 31
December 2024, the Company recognised in the statement of comprehensive income € 1 million loss, in relation to impairment
allowance (31 December 2023: € 1.2 million gain).
Post balance sheet event
In January 2025, the Bank following the issuance of a € 589 million subordinated Tier II debt instrument by the Company (note 12),
issued a subordinated instrument of equivalent terms, held by the Company.
10. Shares in subsidiaries
The following is a listing of the Company's subsidiaries held directly at 31 December 2024:
(a) Be Business Exchanges Single Member Societe Anonyme of Business Exchanges Networks and Accounting and Tax Services,
Greece
in the company’s share capital reached 100%. In October 2024, following the above transaction, the name of the company was
amended with the inclusion of the term “Single member”.
Initiation of the merger process between Eurobank Ergasias Services and Holdings S.A. and Eurobank S.A.
On 19 December 2024, Eurobank Holdings announced that its Board of Directors decided the initiation of the merger process of
Eurobank Holdings with the Bank through absorption of the former by the latter, in order that operational efficiencies and a leaner
group structure be achieved. The merger will be implemented with a combined application of Law 4601/2019 and article 16 of Law
2515/1997 and 31 December 2024, was defined as the merger transformation balance sheet date.
Notes to the Financial Statements
.
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Page 31 December 2024 Financial Statements
Upon the completion of the merger (a) Eurobank Holdings ceases to exist and its shareholders become shareholders of the Bank
with the same stakes and the same number of shares, receiving the entirety of Bank’s newly issued shares and (b) the Bank, that
will retain its banking license, substitutes Eurobank Holdings as universal successor in the totality of its assets and liabilities
transferred to the Bank, as they appear in the transformation balance sheet of Eurobank Holdings and as it is formulated until the
completion of the merger.
Before the completion of the merger, the shares of the Bank will be listed in the Athens Exchange and upon its completion, they
will be distributed to Eurobank Holdings shareholders in exchange of the Eurobank Holdings shares they possess at a ratio of one
newly issued share of the Bank for one existing share of Eurobank Holdings.
The completion of the merger is subject to all necessary by Law approvals, including the approval of the shareholders’ General
Meeting of both merging companies as well as the receipt of all the necessary approvals of the competent Authorities.
11. Other assets
As at 31 December 2024, other assets amounting to € 4 million (31 December 2023: € 4 million) primarily consist of (a) € 1.7 million
(31 December 2023: € 1.3 million) prepaid expenses mainly for insurance premiums, (b) € 1.7 million (31 December 2023: € 1.2
million) receivables for IT services provided to the Group companies and third parties, (c) € 0.3 million (31 December 2023: € 0.3
million) receivables from Fairfax Group relating to financial consulting services (d) € 0.1 million in relation to property and
equipment and intangible assets (31 December 2023: € 0.2 million).
12. Debt securities in issue
In January 2024, the Company announced the issuance of a € 300 million subordinated Tier II debt instrument which matures in
April 2034, is callable at par in April 2029 offering a coupon of 6.25% per annum and is listed on the Luxembourg Stock Exchange’s
Euro MTF market. On the same date, the Bank issued a subordinated instrument of equivalent terms, held by the Company (note
9). Further information about the issue is provided in the relevant announcement published in the Company’s website on 19 January
2024.
Post balance sheet event
In January 2025, the Company announced that it has successfully priced the issuance of € 400 million subordinated Tier II debt
instruments (New Instruments) which mature in April 2035, are callable at par from 30 January 2030 until 30 April 2030, offering a
coupon of 4.25% per annum and are listed on the Luxembourg Stock Exchange’s Euro MTF market. In addition, the Company
announced an any-and-all exchange offer for the Tier II notes of its indirect subsidiary, Hellenic Bank, of nominal value of € 200
million, with additional Eurobank Holdings Tier 2 subordinated notes, issued under a single series and with same terms with the €
400 million subordinated notes. The offer period was set from 21 January 2025 until 27 January 2025.
On 28 January 2025, the Company announced that it has decided to accept all existing notes offered for exchange, pursuant to the
exchange offer, with nominal value of € 157 million. The nominal value of new instruments to be issued is € 188.5 million, which
will form a single series with the New Instruments with a combined aggregate nominal amount of € 589 million.
13. Other liabilities
As at 31 December 2024, other liabilities amounting to € 6 million (31 December 2023: € 2 million) primarily consist of (a) € 0.6
million (31 December 2023: € 0.9 million) accrued expenses, (b) € 0.9 million (31 December 2023: € 0.8 million) current payables to
suppliers and (c) € 0.2 million (31 December 2023: € 0.2 million) Standard legal staff retirement indemnity obligations, d) € 0.7
million employee termination benefits obligation in respect of the new Voluntary Exit Scheme (VES) that was launched by the Group
in February 2024 and (e) € 4 million income tax payable referring to top up tax (note 8).
Standard legal staff retirement indemnity obligations (SLSRI) and termination benefits
The Company provides for staff retirement indemnity obligation for its employees, who are entitled to a lump sum payment based
on the number of years of service and the level of remuneration at the date of retirement, if they remain in the employment of the
Company until normal retirement age, in accordance with the local labor legislation. The above retirement indemnity obligations
typically expose the Company to actuarial risks such as interest rate risk and salary risk. Therefore, a decrease in the discount rate
used to calculate the present value of the estimated future cash outflows or an increase in future salaries will increase the staff
retirement indemnity obligations of the Company.
Notes to the Financial Statements
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Page 31 December 2024 Financial Statements
In addition, the Company has provided employee termination benefits mainly in respect of the Voluntary Exit Schemes (VES), which
have been implemented through either lump-sum payments or long-term leaves during which the employees will be receiving a
percentage of a monthly salary, or a combination thereof.
The table below presents the breakdown of defined benefit obligations.
The table below presents a reconciliation from the opening to the closing balance for staff retirement indemnity obligations and
employee termination benefits.
For SLSRI obligations the significant actuarial assumptions (expressed as weighted averages) were as follows:
As at 31 December 2024, the assumption for the price inflation (weighted average) is 2.0% (2023: 2.3%) and has been taken into
account in determining the above actuarial assumptions for future salaries increases.
As at 31 December 2024, the average duration of the standard legal staff retirement indemnity obligation was 7 years (2023: 7
years).
A quantitative sensitivity analysis based on reasonable changes to significant actuarial assumptions as at 31 December 2024 is as
follows:
An increase/(decrease) of the discount rate assumed, by 50 bps/(50 bps), would result in a (decrease)/ increase of the standard
legal staff retirement obligations by (€ 0.01 million)/ € 0.01 million.
An increase/(decrease) of the future salary growth assumed, by 0.5%/(0.5%), would result in an increase /(decrease) of the standard
legal staff retirement obligations by € 0.01 million/ (€ 0.01 million).
The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this
is unlikely to occur, and changes in some of the assumptions may be correlated.
The methods and assumptions used in preparing the above sensitivity analysis were consistent with those used to estimate the
retirement benefit obligation and did not change compared to the previous year.
Notes to the Financial Statements
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Page 31 December 2024 Financial Statements
For employee termination benefits, the discount rate (weighted average) is the significant actuarial assumption, which as at 31
December 2024 stood at 2.5% based on the applicable tenor of the liabilities. On the same date, an increase/(decrease) of the
discount rate assumed, by 50 bps/(50 bps), would result in a (decrease)/increase of employee termination benefits by (€ 0.01
million)/ € 0.01 million.
14. Share capital, share premium and treasury shares
As at 31 December 2024, the par value of the Company's shares is € 0.22 per share (2023: € 0.22). All shares are fully paid. The
movement of share capital and share premium is as follows:
AGM decisions
On 23 July 2024, the Annual General Meeting (AGM) of the shareholders of the Company, among others, approved:
●
The cancellation of 52,080,673 treasury shares acquired in 2023 from Hellenic Financial Stability Fund. Following the said
cancellation, the share capital and the share premium of the Company decreased by € 11,457,748.06 and € 16,274,764.99,
respectively.
●
The distribution of a cash dividend of € 342 million from the “Special Reserves” account, following the approval received
from the European Central Bank (ECB) on 5 June 2024 (note 15). The said dividend corresponds to a 30% payout ratio of
the Group’s net profit for 2023 and a gross dividend of € 0.09333045 per share, following the above cancellation of treasury
shares.
●
The distribution of € 404,330 to senior management and employees of the Company from the “Special Reserves” account
(note 15). In addition, it was noted in AGM that the respective amount that was approved to be distributed to senior
management and employees of the Bank was € 26,237,474.
Share capital increase
Following the exercise of share options granted to executives of the Group under the current share options’ plan (see below), and
by virtue of the decision of the Board of Directors of the Company on 30 August 2024, the Company’s share capital increased by €
2,714,189.50 through the issue of 12,337,225 new common voting shares of a nominal value of € 0.22 per share and exercise price
of € 0.23 per share. The difference between the exercise price of the new shares and their nominal value, net of the expenses
directly attributable to the equity transaction, amounted to € 100,899.18 and was recorded in the account “Share premium”. The
new shares were listed on the Athens Exchange on 12 September 2024.
Notes to the Financial Statements
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Page 31 December 2024 Financial Statements
The following is an analysis of the movement in the number of the Company’s shares outstanding:
15. Reserves and retained earnings/(losses)
As of 31 December 2024, 'Special reserves' of € 1,312 million (2023: € 1,414 million) relate to dividends from participations. In
particular, in December 2024, the Company recognised € 240 million dividend income, following the Bank’s distribution of reserves
of equal amount to the Company (see below).
Dividends/ Shareholders’ remuneration
In the third quarter of 2024, pursuant to the abovementioned decisions of the AGM of the shareholders of the Company, a cash
dividend of € 342 million was distributed to the shareholders, corresponding to a 30% payout ratio of the Group’s net profit for
2023 and a gross dividend of € 0.09333045 per share.
In December 2024, the Bank proceeded with the distribution of non-mandatory reserves for a total amount of € 240 million which
is part of the Banks’ overall contribution to its sole shareholder, Eurobank Holdings, in order to enable the latter to remunerate its
shareholders out of the profits of the financial year 2024, in accordance with the provisions of article 162 par.3 of Company Law
4548/2018.
Based on the Group’s financial performance for the financial year 2024, Eurobank Holdings intends to remunerate its shareholders
with an amount corresponding to a 50% payout ratio of the Group’s net profit for 2024 less the negative goodwill (€ 99.5 million
gain on acquisition of a shareholding in Hellenic Bank), subject to approval of the Annual General Meeting of its shareholders and
the regulatory authorities. The final remuneration will be a combination of cash and share buyback.
16. Share options
The Annual General Meeting of the shareholders of Eurobank Holdings held on 28 July 2020 approved the establishment of a five
year shares award plan, starting from 2021, in the form of share options rights by issuing new shares with a corresponding share
capital increase, in accordance with the provisions of article 113 of law 4548/2018, awarded to executives and personnel of
Eurobank Holdings and its affiliated companies according to article 32 of law 4308/2014. The maximum number of rights that can
Notes to the Financial Statements
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Page 31 December 2024 Financial Statements
be approved was set at 55,637,000 rights, each of which would correspond to one new share with exercise price equal to € 0.23.
The Annual General Meeting authorized the Board of Directors of Eurobank Holdings to define the eligible staff and determine the
remaining terms and conditions of the plan.
The final terms and the implementation of the share options plan, which is a forward-looking long-term incentive aiming at the
retention of key executives, are defined and approved annually by the Board of Directors in accordance with the applicable legal
and regulatory framework, as well as the policies of the Company and the Group.
The options are exercisable in portions, annually during a period from one to five years. Each portion may be exercised wholly or
partly and converted into shares at the employees’ option, provided that they remain employed by the Group until the first available
exercise date. Each portion is treated as a separate award with a different vesting period and different fair value. The corporate
actions that adjust the number and the price of shares also adjust accordingly the share options.
The movement of share options during the year is analysed as follows:
In July 2024, the Group awarded to its executives 6,822,123 new share options, exercisable in annual portions up to 2029, out of
which 3,076,786 options were exercised during the third quarter of 2024.
From the total number of granted share options exercisable in 2024, 12,337,225 options were exercised during the year, resulting
in the issue of an equal number of new common voting shares.
The share options outstanding at the end of the year totaled to 21,348,600 (31 December 2023: 26, 863,702) and have the following
expiry dates:
(1)
In accordance with the Company’s accounting policy on employees’ share based payments, the grant date fair value of the options
is recognized as an expense with a corresponding increase in equity over the vesting period. The share options granted by the
Company to employees of Group entities, are treated as a contribution by the Company to the Bank, being their parent entity, thus
increasing the investment cost of the Company in the latter.
The fair value at grant date is determined using an adjusted form of the Black-Scholes model for Bermudan equity options which
takes into account the exercise price, the exercise dates, the term of the option, the share price at grant date and expected price
volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the options.
model were a share price of € 2.021 (2023: € 1.442) at the grant date, exercise price of € 0.23, annualized dividend yield of 3%
(2023: 3%), expected average volatility of 32% (2023: 41%), expected option life of 1-5 years, and a risk-free interest rate
Notes to the Financial Statements
.
28
Page 31 December 2024 Financial Statements
corresponding to the options’ maturities, based on the Euro swap yield curve. The expected volatility is measured at the grant date
of the options and is based on the average historical volatility of the share price.
17. Cash and cash equivalents
For the purpose of the cash flow statement, cash and cash equivalents with original maturities of three months or less, as at 31
December 2024, amount to € 25 million (31 December 2023: € 399 million).
In the year ended 31 December 2024, the carrying amount of a) the debt securities in issue decreased by € 16 million due to changes
in accrued interest and amortisation of debt issuance costs (31 December 2023: increase by € 1 million) and b) the investment
securities decreased by € 18 million due to changes in accrued interest and amortisation of premium/discounts (31 December 2023:
increase by € 1 million).
18. Post balance sheet events
Details of post balance sheet events are provided in the following notes:
Note 9 - Investment securities
Note 12 - Debt securities in issue
Note 19 – Related parties
19. Related parties
Eurobank Ergasias Services and Holdings S.A. (the Company or Eurobank Holdings) is the parent company of Eurobank S.A. (the
Bank).
The Board of Directors (BoD) of Eurobank Holdings is the same as the BoD of the Bank and part of the key management personnel
(KMP) of the Bank provides services to Eurobank Holdings according to the terms of the relevant agreement between the two
entities.
Fairfax Group (“Fairfax”) is considered to have significant influence over Eurobank Holdings. Following the changes in the Company’s
share capital in the third quarter of 2024 (note 14), Fairfax held 33.29% of Eurobank Holdings’ total number of voting rights as at 31
December 2024 (31 December 2023: 32.93%), based on the latest notification that the Company had received from the entity. On
7 February 2025 Eurobank Holdings announced that further to its announcement dated 23 January 2025, it has been informed by
the entity that following the completion of the sale of 80 million shares of the Company, Fairfax holds 32.89% of Eurobank Holdings’
share capital and voting rights. Further information is provided in the Directors’ Report for the year ended 31 December 2024.
length basis. The outstanding balances of the transactions with the Company’s subsidiaries are as follows:
(1)
The expenses in relation to KMP services provided by the Company’s subsidiary Eurobank S.A. are included in Key management compensation disclosed
below.
Notes to the Financial Statements
.
29
Page 31 December 2024 Financial Statements
As at 31 December 2024, the Company has recognised receivables and operating income of amount € 0.33 million related to
financial consulting services with Fairfax group (31 December 2023: € 0.32 million). In addition, for the year ended 31 December
2024 the Company has recognized operating expenses of € 0.12 million (2023: € 0.14 million) related to the Group’s associate
Eurolife FFH Insurance Group Holdings S.A., which is also a member of Fairfax Group.
Key management compensation
In the year ended 31 December 2024, the Company recognized Key management compensation amounting to € 0.4 million that is
referring mainly to KMP services provided by Eurobank S.A. in accordance with the relevant agreement (2023: € 0.2 million).
20. External Auditors
The Company has adopted a Policy on External Auditors’ Independence which provides amongst others, for the definition of the
permitted and non-permitted services the Company’s auditors may provide further to the statutory audit. For any such services to
be assigned to the Company’s auditors there are specific controlling mechanisms in order for the Company’s Audit Committee to
ensure that (a) the non-audit services assigned to “KPMG Certified Auditors S.A.”, along with the KPMG network (KPMG), have been
reviewed and approved as required and (b) there is proper balance between audit and permitted non-audit work.
The total fees of the Company’s independent auditor KPMG for audit and other services provided are analyzed as follows:
(1)
Notes to the Financial Statements
.
30
Page 31 December 2024 Financial Statements
21. Board of Directors
The Board of Directors (BoD) was elected by the Annual General Meeting of the Shareholders (AGM) held on 23 July 2024 for a
three - year term of office that will expire on 23 July 2027, prolonged until the end of the period the AGM for the year 2027 will
take place.
The BoD is as follows:
G. Zanias
Chairman, Non-Executive Member
F. Karavias
Chief Executive Officer
S. Ioannou
Deputy Chief Executive Officer
K. Vassiliou
Deputy Chief Executive Officer
B.P. Martin
Non-Executive Member
A. Gregoriadi
Non-Executive Independent Member
I. Rouvitha Panou
Non-Executive Independent Member
R. Kakar
Non-Executive Independent Member
J. Mirza
Non-Executive Independent Member
C. Basile
Non-Executive Independent Member
B. Eckes
Non-Executive Independent Member
J. A. Hollows
Non-Executive Independent Member
E. Kotsovinos
Non-Executive Independent Member
Georgios P. Zanias
Fokion C. Karavias
Harris V. Kokologiannis
I.D. No ΑI - 414343
I.D. No ΑΙ - 677962
I.D. No AN - 582334
CHAIRMAN
OF THE BOARD OF DIRECTORS
CHIEF EXECUTIVE OFFICER
GENERAL MANAGER OF GROUP FINANCE
KPMG Certified Auditors S.A.
44 Syngrou Avenue
117 42 Athens, Greece
Telephone: +30 210 60 62 100
Fax: +30 210 60 62 111
Email: info@kpmg.gr
KPMG Certified Auditors S.A., a Greek Societe Anonyme and a member
firm of the KPMG global organization of independent member firms affiliated
with KPMG International Limited, a private English company limited by
guarantee.All rights reserved.
Certified Auditors
GCR 001352601000
Independent Auditor
’
s Report
To the Shareholders of
Eurobank Ergasias Services and Holdings S.A.
Report on the Audit of the Separate and Consolidated Financial Statements
Opinion
We have audited the Separate and Consolidated Financial Statements of Eurobank Ergasias
Services and Holdings S.A. (the “Company”) which comprise the Separate and Consolidated
Balance Sheet as at 31 December 2024, the Consolidated Income Statement, the Separate and
Consolidated Statements of Comprehensive Income, Changes in Equity and Cash Flow for the
year then ended, and notes, comprising material accounting policies and other explanatory
information.
In our opinion, the accompanying Separate and Consolidated Financial Statements present
fairly, in all material respects, the separate and consolidated financial position of Eurobank
Ergasias Services and Holdings S.A. and its subsidiaries (the “Group”) as at 31 December 2024
and its separate and consolidated financial performance and its separate and consolidated cash
flows for the year then ended, in accordance with International Financial Reporting Standards
(IFRS), as adopted by the European Union
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISA), as
incorporated in Greek legislation. Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Separate and Consolidated
Financial Statements section of our report. We are independent of the Company and the Group
in accordance with the International Ethics Standards Board for Accountants International Code
of Ethics for Professional Accountants, as incorporated in Greek legislation, and with the ethical
requirements that are relevant to the audit of the separate and consolidated financial statements
in Greece and we have fulfilled our other ethical responsibilities in accordance with the
requirements of the applicable legislation. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters, that, in our professional judgment, were of most significance
in our audit of the Separate and Consolidated Financial Statements of the current period. These
matters and the relevant significant assessed risks of material misstatement were addressed in
the context of our audit of the Separate and Consolidated Financial Statements as a whole, and
in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Impairment allowance on loans and advances at amortised cost
See
Notes 2.2.13
,
3.1
,
20
The key audit matter
How the matter was addressed in our audit
Loans and advances to customers at
amortized cost for the Group amounted to
EUR 52 245 million as at 31 December 2024
(2023: EUR 42 773 million) and impairment
allowance for expected credit losses (“ECL”)
for the Group amounted to EUR 1 309 million
as at 31 December 2024 (2023: 1 258 million).
Measurement of expected credit losses on
loans and advances at amortised cost
involves significant judgment and estimates.
The key areas where we identified greater
levels of management judgement and
therefore, increased levels of audit focus in the
Group’s estimation of ECL are:
●
– The identification of qualitative indicators
for identifying a significant increase in
credit risk for staging classification is
judgmental taking also into account the
current macroeconomic and geopolitical
uncertainty.
●
modelling and assumptions are used to
estimate ECL which involves determining
Probabilities of Default (“PD”), Loss Given
Our audit procedures included, among others:
Controls testing:
We tested relevant manual, general IT and
automated controls over key systems used in
the ECL process.
Main aspects of our controls testing involved
evaluating the design and testing the operating
effectiveness of the key controls over the:
●
inputs into the IFRS 9 impairment models.
●
●
●
●
related approvals.
Test of details:
Key aspects of our testing included, among
others the following:
●
sample basis in order to assess the SICR
assessment for both corporate and retail
portfolios.
Default (“LGD”), and Exposures at Default
(“EAD”). ECL may be inappropriate if
certain models or underlying assumptions
or their application or data used do not
accurately predict defaults or recoveries
over time or fail to reflect the estimated
credit losses of loans and advances to
customers. As a result, certain IFRS 9
models, model assumptions and data, are
the key drivers of complexity and
subjectivity in the Group’s calculation of the
ECL estimate.
●
model-driven ECL results are raised by
management to address any known
limitations or emerging trends as well as
risks not captured by models. These
adjustments are inherently uncertain and
significant management judgement is
involved especially in relation to the current
macroeconomic and geopolitical
environment.
●
Information scenarios – IFRS 9 requires
the Group to measure ECL on an unbiased
forward-looking basis reflecting a range of
future economic conditions. Significant
management judgement is applied in
determining the forward-looking economic
scenarios used, the probability weightings
associated with the scenarios and the
complexity of models used to derive the
probability weightings applied to them,
especially when considering the current
macroeconomic and geopolitical
environment.
●
estimation of future cash flows, valuation of
collateral and probability weighting of
scenarios constitute assumptions with high
estimation uncertainty.
Disclosures in the Consolidated Financial
Statements.
The disclosures regarding the Group’s
application of IFRS 9 are key for the
understanding of the significant judgements
and material inputs to the IFRS 9 ECL results,
●
adjustments to the model driven ECL
results, by considering the assumptions,
reviewing calculations and data used and
inspecting the governance around these
adjustments, with the support from our
financial risk specialists.
●
appropriateness of the macroeconomic
variables’ forecasts, scenarios, weights,
and models applied, with the support from
our specialists. Our testing included
benchmarking against external sources.
●
assess the completeness and accuracy of
critical data input used in the ECL models.
●
lending exposures in all stages, with the
support from our financial risk specialists
and on a sample basis.
●
assess the reasonableness of significant
assumptions used in the measurement of
impairment of individually assessed credit
impaired exposures, including the
assumptions used to estimate discounted
future cash flows and the valuation of
collaterals for which we have engaged our
real estate valuation specialists.
Our financial risk specialists assisted with the:
●
methodologies conceptual soundness.
●
methodologies implementation by
evaluating the risk parameter models used
as well as, reperforming the calculation of
certain risk parameters, on a sample basis.
Assessing disclosures:
●
appropriateness of the disclosures in the
Consolidated Financial Statements that
address the uncertainty which exists when
determining the ECL. In addition, we
assessed whether the disclosure of the key
judgements and assumptions was
sufficiently clear and explanatory.
as well as, to provide transparency of the
credit risk exposures of the Group.
Recognition of deferred tax assets
See
Notes 2.2.17
,
3.5
The key audit matter
How the matter was addressed in our audit
The Group has recognized deferred tax
assets of EUR 3 780 million as at
31 December 2024 (2023: 3 991 million).
The recognition and measurement of
deferred tax assets is considered a key
audit matter as it depends on estimates of
future profitability, which requires
significant judgement and includes the
risk of management bias.
Significant judgement and especially
complex assumptions and method, due to
inherent uncertainties relate to the
following:
●
The extent that there are probable
future taxable profits that will allow the
deferred tax asset amount to be
recovered in the foreseeable future.
●
Forecast of future taxable profit, which
is mainly impacted by macroeconomic
forward-looking information.
Disclosures in the Consolidated Financial
Statements
The disclosures regarding the Group’s
application of the Standards in this area
are key for the understanding of the key
judgements surrounding the
recoverability of deferred tax assets.
Our audit procedures, included, among others the
following:
●
We assessed the design and implementation of
controls relevant to the recognition and
recoverability of deferred tax assets including
the approval of three-year business plan and
monitoring of actual results against budgeted.
●
We evaluated the appropriateness of the
assumptions used by management in the
approved three-year business plan by
comparing the revenue and growth projections
to industry trends and ensuring consistency with
strategic plans. We also evaluated the
appropriateness of the assumptions used and
the reasonableness of projections for the period
that lies beyond the approved three-year
business plan.
●
We assessed the accuracy of forecasted future
taxable profits by evaluating the accuracy of
management’s projections of prior year by
comparing them to actual results.
●
We tested the accuracy of the relevant
underlying data of the estimate, including the
conversion of future accounting profits to
taxable profits.
●
Our tax specialists, considering current tax
legislation, assisted to confirm the
completeness and accuracy of the relevant tax
adjustments that produce the taxable results.
Assessing disclosures:
We evaluated the adequacy and appropriateness of
the disclosures in the Consolidated Financial
Statements that address the deferred tax asset
recoverability. In addition, we assessed whether the
disclosures of the key judgements and assumption
were sufficiently clear and explanatory.
Use of IT systems relevant to the financial information
The key audit matter
How the matter was addressed in our audit
The Group’s financial reporting processes
are dependent to a large extent on
information produced by the Group’s
Information Technology (IT) systems,
and/or automated processes and controls
(i.e. calculations, reconciliations)
implemented in these systems.
The above is a key audit matter as the
Group’s financial reporting systems rely
heavily on complex information systems
that process very large number of
transactions. These IT systems functions
are based on the operating effectiveness
of internal controls in place to assure the
completeness and accuracy as well as
the security of the information of the
Group that produce eventually the
financial information to be included in the
Consolidated Financial Statements.
We have evaluated in collaboration with our IT Audit
specialists the general controls over the IT systems,
databases and applications that support the
financial reporting process of the Group.
For this purpose, we performed procedures as
follows:
●
We evaluated the information security
resilience of the Group by evaluating the design
of key IT processes and controls over financial
reporting.
●
We evaluated the design of the relevant
preventative and detective general IT controls
over administration of access to programs and
data for the systems in scope of our audit and,
we tested the operating effectiveness of these
relevant controls.
●
We evaluated the design of the relevant general
IT controls of the Group over program
development, program change management
and computer operations for the systems in
scope of our audit and, we tested the operating
effectiveness of these relevant controls.
Other Information
The Board of Directors is responsible for the other information. The other information comprises
the information included in the Board of Directors’ Report, for which reference is made in the
“Report on Other Legal and Regulatory Requirements” and the Declarations of the Members of
the Board of Directors but does not include the Separate and Consolidated Financial Statements
and our Auditor’s Report thereon.
Our opinion on the Separate and Consolidated Financial Statements does not cover the other
information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Separate and Consolidated Financial Statements, our
responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the Separate and Consolidated Financial Statements,
or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based
on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Board of Directors and Those Charged with Governance
for the Separate and Consolidated Financial Statements
The Board of Directors is responsible for the preparation and fair presentation of the Separate
and Consolidated Financial Statements in accordance with IFRS as adopted by the European
Union, and for such internal control as the Board of Directors determines is necessary to enable
the preparation of separate and consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the Separate and Consolidated Financial Statements, the Board of Directors is
responsible for assessing the Company’s and the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Board of Directors either intends to liquidate the Company and the Group
or to cease operations, or has no realistic alternative but to do so.
The Audit Committee of the Company is responsible for overseeing the Company’s and the
Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Separate and Consolidated
Financial Statements
Our objectives are to obtain reasonable assurance about whether the Separate and
Consolidated Financial Statements as a whole are free from material misstatement, whether due
to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs which have been incorporated in Greek legislation will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these Separate and Consolidated Financial
Statements.
As part of an audit in accordance with ISAs, which have been incorporated in Greek legislation,
we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
●
financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
●
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Company’s and the Group’s internal control.
●
accounting estimates and related disclosures made by the Board of Directors.
●
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s and
the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditors’ report to the related disclosures in
the Separate and Consolidated Financial Statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditors’ report. However, future events or conditions may cause the Company
or the Group to cease to continue as a going concern.
●
Financial Statements, including the disclosures, and whether the separate and consolidated
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
●
the financial information of the entities or business activities within the Group to express an
opinion on these Group Financial Statements. We are responsible for the direction,
supervision and review of the audit work performed for purposes of the group audit. We
remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the Separate and Consolidated Financial
Statements of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1
Board of Directors’ Report
The Board of Directors is responsible for the preparation of the Board of Directors’ Report and
the Sustainability Report and the Corporate Governance Statement that are included in this
report. Our opinion on the financial statements does not cover the Board of Directors’ Report
and we do not express an audit opinion thereon. Our responsibility is to read the Board of
Directors’ Report and, in doing so, consider whether, based on our financial statements audit
work, the information therein is materially misstated or inconsistent with the financial statements
or our audit knowledge. Based solely on that work pursuant to the requirements of paragraph
1, cases aa and b, of article 154C of Law 4548/2018 and case ab, which does not include the
Sustainability Report and for which we have issued on date 7 March 2025 a relevant limited
assurance report in accordance with the International Standard on Assurance Engagements
3000 (Revised) we note that:
(a)
The Board of Directors’ Report includes a Corporate Governance Statement which provides
the information set by Article 152 of Law 4548/2018.
(b)
In our opinion, the Board of Directors’ Report has been prepared in accordance with the
applicable legal requirements of Articles 150 and 153 of Law 4548/2018 excluding the
requirement for the submission of the Sustainability Report of paragraph 5A of Article 150
of the same law and its contents correspond with the accompanying Separate and
Consolidated Financial Statements for the year ended 31 December 2024.
(c)
Based on the knowledge acquired during our audit, relating to Eurobank Ergasias Services
and Holdings S.A. and its environment, we have not identified any material misstatements
in the Board of Directors’ Report.
2 Additional Report to the audit Committee
Our audit opinion on the Separate and Consolidated Financial Statements is consistent with
the Additional Report to the Audit Committee of the Company dated 7 March 2025, pursuant to
the requirements of article 11 of the Regulation 537/2014 of the European Union (EU).
3 Provision of non-Audit Services
We have not provided to the Company and its subsidiaries any prohibited non-audit services
referred to in article 5 of Regulation (EU) 537/2014.
The permissible non-audit services that we have provided to the Company and its subsidiaries
during the year ended 31 December 2024 are disclosed in Notes 20 and 47 of the
accompanying Separate and Consolidated Financial Statements, respectively.
4 Appointment of Auditors
We were appointed for the first time as Certified Auditors of the Company based on the decision
of the Annual General Shareholders’ Meeting dated 10 July 2018. From then onwards our
appointment has been renewed uninterruptedly for a total period of seven years based on the
annual decisions of the General Shareholders’ Meeting.
5 Operations Regulation
The Company has an Operations Regulation in accordance with the content provided by the
provisions of the article 14 of Law 4706/2020.
6 Assurance Report on the European Single Electronic Reporting Format
Subject Matter
We were engaged to perform a reasonable assurance engagement to examine the digital files
of the company Eurobank Ergasias Services and Holdings S.A. (the Company or/and Group),
which were prepared in accordance with the European Single Electronic Format (ESEF) and
that include the Separate and Consolidated financial statements of the Company and the Group
for the year ended as at 31 December 2024 in XHTML format (JEUVK5RWVJEN8W0C9M24-
2024-12-31-en.xhtml), and also the file XBRL (JEUVK5RWVJEN8W0C9M24-2024-12-31-
en.zip) with the appropriate mark up of the those consolidated financial statements, including
other explanatory information (Notes to the Financial Statements) (hereafter the “Subject
matter”), in order to verify that it was prepared in accordance with the requirements set out in
the Applicable Criteria section.
Applicable Criteria
The Applicable Criteria for the European Single Electronic Format (ESEF) are defined by the
European Commission Delegated Regulation (EU) 2019/815, as in force (hereafter “the ESEF
Regulation”) and the 2020/C 379/01 Commission Interpretative Communication issued on
10 November 2020, as required by the Law 3556/2007 and the relevant announcements of the
Hellenic Capital Markets Commission and the Athens Stock Exchange.
In summary, these Criteria provide, among others, the following:
●
●
Reporting Standards (IFRS), the financial information that is included in the Consolidated
Balance Sheet, Consolidated Statements of Income and Comprehensive Income,
Changes in Equity and Cash Flow, as well as in the Notes to the Consolidated Financial
Statements, must be marked up with XBRL tags and “block tag”, in accordance with the
ESEF Taxonomy, as in force. The technical requirements for the ESEF, including the
relevant taxonomy, are included in the ESEF Regulatory Technical Standards.
Responsibilities of the Board of Directors and those charged with governance
The Board of Directors is responsible for the preparation and filing of the Separate and
Consolidated Financial Statements of the Company and the Group, for the year ended as at
31 December 2024, in accordance with the Applicable Criteria, and for such internal control as
the Board of Directors determines is necessary to enable the preparation of digital files that are
free from material misstatement, whether due to fraud or error.
Auditors’ Responsibilities
Our responsibility is to issue this Report regarding the evaluation of the Subject Matter, based
on our work performed, which is described below in the “Scope of Work Performed” section.
Our work was conducted in accordance with International Standard on Assurance
Engagements 3000 (Revised) “Assurance Engagements Other than Audits or Reviews of
Historical Financial Information” (hereafter “ISAE 3000”).
ISAE 3000 requires that we plan and perform our work to obtain reasonable assurance about
the evaluation of the Subject Matter in accordance with the Applicable Criteria. In the context of
the procedures performed, we assess the risk of material misstatement of the information
related to the Subject Matter.
We believe that the evidence we have obtained is sufficient and appropriate and support the
conclusion expressed in this assurance report.
Professional ethics and quality management
We are independent of the Company and the Group, throughout this engagement and have
complied with the requirements of the International Code of Ethics for Professional Accountants
issued by the International Ethics Standards Board for Accountants, the ethics and
independence requirements of Law 4449/2017 and Regulation (EU) 537/2014.
Our firm applies International Standard on Quality Management (ISQM) 1, “Quality
Management for Firms that Perform Audits or Reviews of Financial Statements, or Other
Assurance or Related Services Engagements” and consequently maintains a comprehensive
quality management system that includes documented policies and procedures regarding
compliance with ethical requirements, professional standards and applicable legal and
regulatory requirements.
Scope of work performed
The assurance work we performed covers only the items included in the 214/4/11-02-2022
Decision of the Hellenic Accounting and Auditing Standards Oversight Board and the Guidelines
for the assurance engagement and report of Certified Auditors on the European Single
Electronic Reporting Format (ESEF) of issuers with shares listed in a regulated market in
Greece”, as these were issued by the Institute of Certified Public Accountants of Greece on
14/02/2022, in order to obtain reasonable assurance that the financial statements of the
Company that are prepared by the Board of Directors of the Company comply in all material
respects with the Applicable Criteria.
Conclusion
Based on the procedures performed and the evidence obtained, we express the conclusion
that the Separate and Consolidated Financial Statements of the Company and the Group for
the year ended as of 31 December 2024 in XHTML format (JEUVK5RWVJEN8W0C9M24-
2024-12-31-en.xhtml), and the XBRL file (JEUVK5RWVJEN8W0C9M24-2024-12-31-en.zip)
marked up with respects to the Consolidated Financial Statements, including the other
explanatory information (Notes to financial statements), have been prepared, in all material
respects, in accordance with the requirements as defined in the Applicable Criteria.
Athens, 7 March 2025
KPMG Certified Auditors S.A.
AM SOEL 186
Nikolaos Vouniseas, Certified Auditor Accountant
Α.Μ. SOEL 18701
KPMG Certified Auditors S.A.
44 Syngrou Avenue
117 42 Athens, Greece
Telephone: +30 210 60 62 100
Fax: +30 210 60 62 111
Email: info@kpmg.gr
KPMG Certified Auditors S.A., a Greek Societe Anonyme and a member
firm of the KPMG global organization of independent member firms affiliated
with KPMG International Limited, a private English company limited by
guarantee.All rights reserved.
Certified Auditors
GCR 001352601000
Independent Auditor’s Limited Assurance Report
To the Shareholders of
Eurobank Ergasias Services and Holdings S.A.
Independent Auditor’s Limited Assurance Report on the Sustainability Report of Eurobank
Ergasias Services and Holdings S.A.
We have performed a limited assurance engagement in relation to the consolidated Sustainability
Report of Eurobank Ergasias Services and Holdings S.A. (hereafter the “Company” or the “Group”),
which is included in the section BII of the Report of the Directors (hereafter the “Sustainability
Report”), for the period from 1 January 2024 to 31 December 2024.
Limited assurance conclusion
Based on the procedures performed, as this is described in the “Scope of work performed”, as well
as the evidence obtained, nothing has come to our attention to cause us to believe that:
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the article 154 of L.4548/2018 as this was amended and in force with the Law 5164/2024 with
which the article 29(a) of EU Directive 2013/34/EU has been transposed into Greek legislation,
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Standards (hereafter “ESRS”), in accordance with Commission Regulation (EU) 2023/2772 of
31 July 2023 and EU Directive 2022/2464/EU of the European Parliament and of the Council
of 14 December 2022,
●
risks and opportunities (hereafter “the Process”), as set out in Note 1.5 of the Sustainability
Report, does not comply with the “Disclosure Requirement IRO-1 - Description of the
processes to identify and assess material impacts, risks and opportunities” of ESRS 2
“General Disclosures”,
●
Regulation (EU) 2020/852.
●
Basis for conclusion
We conducted our limited assurance engagement in accordance with the International Standard
on Assurance Engagements (ISAE) 3000 (Revised), “Assurance Engagements Other Than Audits
or Reviews of Historical Financial Information” (hereafter “ISAE 3000”).
The procedures performed in a limited assurance engagement vary in nature and timing from, and
are less in extent than for, a reasonable assurance engagement. Consequently, the level of
assurance obtained in a limited assurance engagement is substantially lower than the assurance
that would have been obtained had a reasonable assurance engagement been performed.
Our responsibilities are further described in the “Auditor’s responsibilities” section of our report.
Professional Ethics and Quality Management
We are independent of the Company throughout this engagement and have complied with the
requirements of the International Code of Ethics for Professional Accountants issued by the
International Ethics Standards Board for Accountants (IESBA Code), the ethics and independence
requirements of Law 4449/2017 and Regulation (EU) 537/2014.
Our firm applies International Standard on Quality Management (ISQM) 1, “Quality Management
for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related
Services Engagements” and consequently maintains a comprehensive quality management
system that includes documented policies and procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory requirements.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for
our conclusion.
Responsibilities of management for the Sustainability Report
Management of the Company is responsible for designing and implementing a process to identify
the required information reported in the Sustainability Report in accordance with the ESRS, as well
as for disclosing this process in Note 1.5 of the Sustainability Report.
More specifically, this responsibility includes:
●
relationships take place and developing an understanding of its affected stakeholders.
●
matters, as well as risks and opportunities that affect, or could reasonably be expected to affect,
the financial position, financial performance, cash flows, access to finance or cost of capital of
the Company and the Group over the short-, medium-, or long-term;
●
sustainability matters by selecting and applying appropriate thresholds; and
●
Management of the Company and the Group is responsible for the preparation of the Sustainability
Report, in accordance with article 154 of Law 4548/2018, as amended and in force by Law
5164/2024, which incorporated article 29(a)
of EU Directive 2013/34/EU into Greek legislation.
In this context, the Management of the Company and the Group is responsible for:
●
●
8 of Regulation (EU) 2020/852.
●
necessary to enable the preparation of the Sustainability Report such that it is free from material
misstatement, whether due to fraud or error; and
●
and estimates about individual sustainability disclosures in the Sustainability Report, that are
reasonable in the circumstances.
The Audit Committee is responsible for overseeing the process for the preparation of the
Company's Sustainability Report.
Inherent limitations in preparing the Sustainability Report
In reporting forward-looking information in accordance with ESRS, Management of the Company
is required to prepare the forward-looking information on the basis of disclosed assumptions about
events that may occur in the future and possible future actions by the Company and the Group.
The actual outcome of these actions is likely to be different since anticipated events frequently do
not occur as expected.
As stated in Note 2.2.2 to the Sustainability Report, the information incorporated in the relevant
disclosures is based, among other things, on climate-related scenarios, which are subject to
inherent uncertainty regarding the likelihood, timing or impact of potential future natural and
transitional climate-related impacts.
Our work covered the matters set out in the “Scope of Work Performed” section to obtain limited
assurance based on the procedures included in the program of limited assurance which was issued
with the Decision of the Hellenic Accounting and Auditing Standards Oversight Board on
22 January 2025 (hereafter “Program”). Our work does not constitute an audit or review of historical
financial information in accordance with applicable International Standards on Auditing or
International Standards on Review Engagements, and for this reason we do not express any other
assurance beyond that set out in the “Scope of Work Performed” section.
Auditors’ Responsibilities
This limited assurance report has been prepared based on the provisions of article 154C of
Law 4548/2018 and article 32A of Law 4449/2017.
Our responsibility is to plan and perform the assurance engagement to obtain limited assurance
about whether the Sustainability Report is free from material misstatement, whether due to fraud
or error, and issue a limited assurance report that includes our conclusion. Misstatement can arise
from fraud or error and is considered material if, individually or in the aggregate, it could reasonably
be expected to influence decisions of users taken on the basis of the Sustainability Report as a
whole.
In the context of a limited assurance engagement in accordance with ISA 3000 (Revised), we
exercise professional judgment and maintain professional skepticism throughout the engagement.
Our responsibilities regarding the Sustainability Report, in relation to the Process, include:
●
controls, to identify risks related to whether the Process followed by the Company and the
Group to determine the information reported in the Sustainability Report does not meet the
applicable requirements of the ESRS, but not for the purpose of providing a conclusion on the
effectiveness of internal controls over the Process; and
●
information reported in the Sustainability Report is consistent with the description of the
Process as disclosed in Note 1.5 of the Sustainability Report.
We are further responsible for:
●
identify those disclosures that are likely to be materially misstated, whether due to fraud or
error, but not for the purpose of providing a conclusion about the effectiveness of the
Company's and the Group's internal control.
●
Sustainability Report where material misstatements are likely to arise. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
Scope of work performed
Our engagement includes performing procedures and obtaining audit evidence in order to express
a limited assurance conclusion and covers exclusively the limited assurance procedures provided
for in the Program, as it was formulated for the purpose of issuing a limited assurance report on
the Sustainability Report of the Company and the Group.
Our procedures were designed to obtain a limited level of assurance on which to base our
conclusion and do not provide all the evidence that would be required to provide a reasonable level
of assurance.
Athens, 7 March 2025
KPMG Certified Auditors S.A.
AM SOEL 186
Anastasios Kyriacoulis, Certified Auditor Accountant