Despite the two crises facing Europe — the energy crisis and inflation — and political volatility, «the economies of Greece, Cyprus and Bulgaria remain strong», Eurobank chief executive Fokion Karavias said earlier today during a briefing for analysts on the nine-month results. The group’s CFO, Haris Kokologiannis, also took part in the briefing.
Loan growth
With corporate lending leading the way, the target of €4.5 billion in new disbursements in 2026 will be met. Asked to comment on the outlook for loan growth in 2027, Mr Karavias said: «Loan growth will remain strong in 2027, but slightly lower than in 2025 and 2026, which were two exceptional years for lending growth. A slowdown is already being seen across Europe in 2026».
On competition over spreads on corporate lending, the bank’s CFO, Haris Kokologiannis, said there had been such a trend, with margins narrowing to 1.60 basis points from 1.80 basis points.
NII
Net interest income (NII) for the full year 2026 is expected to rise by around 9%, against an initial target of 7%. A range of factors, including higher interest income and returns on bonds, are driving NII higher.
Eurolife
In the fourth quarter of 2026, Eurobank Group will book €20-25 million in fee income from the absorption of Eurolife, while its annual contribution to fee income is estimated at around €100 million. «The new targets will be set in February, with the new business plan», Mr Kokologiannis said. It is worth noting that the bank will book a one-off €40 million as negative goodwill from the absorption of Eurolife.
Tax in Bulgaria
The group’s management said discussions were under way between the banks and the Bulgarian government over the latter’s stated intention to impose an additional tax. «No decision has been taken, the dialogue is continuing, and our estimates suggest that, if it goes ahead, the cost to Eurobank Group will be between €10 million and €15 million», H. Kokologiannis said.
Acquisitions
«We remain open to considering opportunities in the three markets where the group operates — Greece, Cyprus and Bulgaria — in banking, asset management and insurance. There are no opportunities at present», F. Karavias said.
Four branches in Abu Dhabi
Eurobank Group will establish a presence in Abu Dhabi with four branches in the first quarter of 2027, while it already operates a representative office in India. «We will focus on corporate transactions», F. Karavias said, referring to the main focus of the group’s presence in Abu Dhabi.