Eurobank reported “robust” operating performance for the first half of 2023, with net profit of 684 million euros compared with 941 million in the same period last year, mainly including 111 million euros in negative goodwill from Hellenic Bank in Cyprus.
More specifically, net interest income rose by 56.2% y-o-y in the first half of the year to 1,043 million euros, driven by interest rate increases, new lending, interest income from bonds and derivative products and international business. Net interest margin increased by 88 basis points y-o-y to 2.63%.
Net fee and commission income expanded by 9.9% y-o-y to 270 million euros, mainly due to fees from lending activities and accounted for 68 basis points of total assets in the first half of 2023.
Operating expenses increased by 5.7% y-o-y to 443 million euros, mainly due to SEE operations, inflationary pressure and investments in IT. The cost to core income ratio improved to 33.8% from 45.9% in the same period last year, while the cost to income ratio remained well below 40% at 33.3%.
Moreover, adjusted profit before tax amounted to 712 million euros and adjusted net profit totaled 599 million euros. Reported net profit reached 684 million euros, compared with 941 million euros in the first of 2022, and mainly included 111 million euros negative goodwill from Hellenic Bank in Cyprus.