Eurobank S.A.

Eurobank reported adjusted net profit of EUR 776 million for the first half of 2026 and return on tangible book value of 16.6%. NII rose 6.1% year on year, net interest margin increased to 248 basis points, fees and commissions were up 13.5% year on year, core pre-provision income increased 7.7% year on year to EUR 1.1 billion, and core operating profit reached EUR 952 million, up 10% year on year. Loan growth in the first half was EUR 2.7 billion, or 10.5% year on year, and the quarter added EUR 1.6 billion. Deposits grew EUR 3.1 billion in the quarter. The NPE ratio fell to 2.5%, cost of risk was 53 basis points in the first half, CET1 was 15.4%, and total capital ratio was 20.3%. For full-year 2026, management now expects loan growth of at least EUR 4.5 billion, NII above EUR 2.7 billion, organic fee growth of nearly 10%, OpEx of EUR 1.33 billion, cost of risk around 55 basis points, EPS growth clearly above 10%, and ROTBV close to 17%.

Fokion Karavias framed the environment as fragile but said Eurobank is benefiting from resilient regional economies, solid tourism, and strong credit demand. He emphasized that business lending in Greece and momentum in Bulgaria and Cyprus are driving double-digit loan growth, and he said the second quarter showed organic growth faster than previously. His tone was confident, repeatedly saying the bank expects to exceed full-year targets and has revised guidance upward.

Harris Kokologiannis focused on the mechanics behind the upgraded guidance. He cited Q2 loan growth of EUR 1.6 billion, H1 loans up EUR 2.7 billion, deposits up EUR 3.1 billion in the quarter, managed funds up EUR 2.5 billion year on year, NII up 6.1% year on year, and NIM at 248 basis points. He said the full-year NII guide was raised to more than EUR 2.7 billion from EUR 2.6 billion, OpEx remains guided at EUR 1.33 billion, and first-half loan loss provisions were EUR 148 million, or 53 basis points; CET1 stayed at 15.4% and total CAR at 20.3%.

Analysts pressed management on the stronger NII guide, fee outperformance, deposit sustainability, capital markets fees, tourism trends, and Swiss franc mortgages. Management said the NII upgrade reflects H1 volumes, some room for additional bond acquisitions, no material change in deposit spreads, and some compression in lending spreads, especially in corporate Greece and household Bulgaria. On fees, management said outperformance came mainly from lending fees and assets under management, while capital markets fees were seasonal and would not automatically repeat without more transaction pipeline. On Swiss franc loans, management said more than 50% of balances in scope have participated, average loss is 16%-18%, and the portfolio is fully provisioned.