Eurobank is taking another step towards further cleaning up its balance sheet by assessing its Swiss franc loans, a review that is expected to be completed by the end of the year.
The review will establish how many of the remaining loans in this category, with a gross carrying amount of €580 million as at 30 September, can be repaid given borrowers’ financial circumstances, and how many are considered unlikely to be collected and will be reclassified as non-performing exposures (NPEs).
In its nine-month financial statements, the bank says it intends to revise the “Unlikely to Pay” (UtP) criteria for the remaining Swiss franc loans, which are mainly mortgages, to strengthen its assessment framework.
If the review identifies borrowers facing financial difficulties that may affect their ability to meet their future obligations under their loan agreements, their loans will be reclassified from performing to non-performing and sold or securitised.
As at 30 September 2026, Eurobank’s balance sheet still included Swiss franc loans that had not been called in, with a gross carrying amount of about €580 million. The related impairment provision stood at €103 million.
The majority of borrowers used the provisions of Law 5264/2025, and their loans were converted into euros. By 30 September, loans with a gross carrying amount of €926 million had been converted into euros, out of total conversion applications amounting to nearly €1 billion. Provisions of €152 million were used for the conversions. After deducting provisions, the proportion of Swiss franc loans converted into euros exceeded 70%.
Eurobank was the only bank to have undertaken a similar assessment of borrowers’ financial difficulties from the outset, in relation to euro-denominated mortgages with step-up payments. Drawing on its substantial stock of accumulated provisions, it opted for clear-cut solutions, identifying loans considered unlikely to be collected well before completing its campaign to convert them into loans repaid in instalments of principal and interest.
As a result of the review, performing loans with a gross carrying amount of about €330 million were transferred from Stage II to Stage III and reclassified as NPEs because they were considered unlikely to be collected. Related provisions of about €100 million were transferred with them.
Subsequently, about €200 million of these loans, with provisions of €65 million, were included in the Moon II portfolio, which was classified as held for sale on 30 June. The portfolio has a total perimeter of €374 million and a net carrying amount of €236 million (figures as at 30 June).