The Eurobank Group subsidiary maintained strong capital adequacy and liquidity ratios

Limited reference was made to the voluntary exit plan, with management estimating annual cost savings of approximately €14 million

Profit for the first quarter of 2026 reached €103 million for the Eurobank Group subsidiary in Cyprus. However, according to the financial results announced by Eurobank, net profits recorded a decline.

As highlighted, the profits for the first quarter of the year were achieved in an exceptionally difficult environment, with lower interest rates and increased provisions.

In the first quarter of 2025, the Bank had announced profits of €121 million.

The €103 million profit was recorded in an environment of lower interest rates and higher provisions.

The Group’s subsidiary in Cyprus maintained strong capital adequacy and liquidity ratios despite the reduction in profitability.

It also continued to show improved portfolio quality.

Net interest income (NII) amounted to €187 million, while fee income reached €45 million.

Core Pre-Provision Income stood at €146 million, compared to €159 million in the fourth quarter of 2025 and €153 million in the first quarter of 2025.

Provisions for bad loans increased to €11 million from €4 million in the previous quarter and €6 million a year earlier.

The cost-to-core income ratio reached 36.9%, while the overall cost-to-income ratio rose to 37.1%, compared to 31.6% in the previous quarter.

Net interest margin (NIM) stood at 2.60%, compared to 2.61% in the fourth quarter of 2025 and 2.89% in the first quarter of the previous year, reflecting the impact of declining interest rates in the Eurozone.

On the balance sheet side, total assets of Eurobank Ltd remained stable at €28.7 billion, compared to €28.7 billion at the end of 2025 and up from €27.3 billion a year earlier.

Net loans increased to €8.9 billion from €8.7 billion in the previous quarter, while deposits stood at €23.8 billion compared to €23.9 billion at the end of December.

The loans-to-deposits ratio remained particularly low at 37.3%, confirming the Bank’s strong liquidity position.

The Bank’s capital base also remained particularly strong, with the CET1 ratio standing at 33.1%, despite a slight decline from 33.9% in the previous quarter.

Risk-weighted assets (RWAs) increased to €9.1 billion from €8.6 billion at the end of 2025.

At the same time, the liquidity coverage ratio (LCR) stood at an exceptionally high 323%, well above minimum regulatory requirements.

The quality of the loan portfolio continued to improve, with the non-performing exposure (NPE) ratio falling to 1.8% from 1.9% in the previous quarter. NPE coverage strengthened to 76%, up from 71% at the end of 2025 and 65% a year earlier.

The total gross loan portfolio reached €9 billion, of which €5.6 billion relates to business loans, €2.7 billion to mortgages, and €0.7 billion to consumer loans.

Savings From the Voluntary Exit Scheme

Within the announcement of its financial results, the Bank also referred, albeit belatedly, to the voluntary exit scheme, which was completed in early April.

The scheme aimed at the voluntary departure of approximately 200 employees.

The Bank avoided disclosing the number of employees who ultimately left through the scheme.

Management estimates that the programme will generate annual cost savings of approximately €14 million, with benefits expected to start being reflected from the second quarter of 2026 onwards.

Total net profits of parent company Eurobank amounted to €331 million and included, among other items, the cost of the voluntary exit scheme amounting to €35 million at Eurobank Ltd, as well as a €19 million gain from discontinued operations.

Source: Brief