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Eurobank Ergasias (EGFEY)
:EGFEY
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Eurobank Ergasias SA
(OTC:EGFEY)
Rating:80Outperform
Price Target:―
Eurobank Ergasias SA (EGFEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.54B
Dividend Yield3.2%
Average Volume (3M)82.81K
Price to Earnings (P/E)8.5
Beta (1Y)0.77
Revenue Growth24.26%
EPS Growth10.29%
CountryUS
Employees12,382
SectorFinancial
Sector Strength79
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.05
Shares Outstanding7,353,472,700
10 Day Avg. Volume245,230
30 Day Avg. Volume82,808
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.27
Price to Sales (P/S)0.00
P/FCF Ratio0.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Eurobank Ergasias SA Business Overview & Revenue Model
Company DescriptionEurobank Ergasias SA (EGFEY) is a leading financial institution in Greece, primarily engaged in providing a broad range of banking services. The company operates in several sectors including retail banking, corporate and investment banking, wealth management, and insurance. Eurobank offers products such as loans, deposits, credit cards, and investment services to individual customers and businesses, positioning itself as a comprehensive financial service provider in the region.
How the Company Makes MoneyEurobank Ergasias SA generates revenue through various streams including interest income from loans and advances to customers, which forms a significant portion of its earnings. The bank also earns from fee and commission income linked to its wealth management and investment banking services. Additionally, Eurobank benefits from trading income, insurance operations, and partnerships with other financial institutions. The bank's strategic focus on digital transformation and customer-centric services also contribute to its competitive positioning and revenue growth by enhancing operational efficiency and expanding its customer base.
Eurobank Ergasias SA Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q3-2024)
| % Change Since: 36.30%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, including high net profit, loan growth, and asset quality improvements. However, there were challenges related to interest rate impacts on NIM and the integration of Hellenic Bank. Overall, the positive aspects significantly outweighed the negative factors.Q3-2024 Updates
Positive Updates
Strong Net Profit and Loan Growth
Net profit reached EUR 1.14 billion with organic loan growth of EUR 2.1 billion, close to the full-year target, and expected to reach EUR 3.5 billion for the full year.
Increase in Tangible Book Value and Return on Tangible Book Value
Tangible book value per share increased to EUR 2.27, up 5% quarter-on-quarter, with return on tangible book value exceeding 19% for the 9-month period.
Improved Asset Quality
NPE ratio dropped below 3% to 2.9%, with coverage remaining at 90%.
Successful Capital Management
Fully loaded CET1 ratio rose to 17.8%, and total capital ratio to 20.9%, up by 100 and 140 basis points year-on-year, respectively.
Increased Dividend Payout Potential
Consideration to increase payout ratio from 40% up to 50% payable in 2025 from the 2024 profits.
Negative Updates
Interest Rate Impact
The Euribor effect and higher MREL costs led to a 15 basis points decrease in Greek NIM.
Challenges with Hellenic Bank Integration
Synergies from Hellenic Bank expected to be realized over 3 years, with challenges in loan portfolio expansion due to Cyprus's small economy.
Company Guidance
During the Eurobank Holdings Q3 2024 earnings call, CEO Fokion Karavias and CFO Charalambos Harris Kokologiannis provided a comprehensive overview of the bank's financial performance and future prospects. Eurobank reported robust growth, with net profit reaching EUR 1.14 billion and a return on tangible book value exceeding 19% for the first nine months. Organic loan growth was EUR 2.1 billion, with expectations to reach EUR 3.5 billion by year-end. The group also consolidated Hellenic Bank, increasing its balance sheet to EUR 100 billion, with assets distributed 60% in Greece, 27% in Cyprus, and 11% in Bulgaria. Asset quality remained strong with an NPE ratio of 2.9% and coverage at 90%. The bank's CET1 ratio increased to 17.8%, and plans are underway to accelerate DTC amortization and potentially increase the payout ratio to 50% in 2025. Furthermore, synergies from the Hellenic Bank acquisition are projected to contribute EUR 120 million over three years, and Eurobank aims for sustainable ROTE of 15% through the cycle. The call also highlighted a strategic merger plan between Eurobank S.A. and Eurobank Holdings to enhance operational efficiency.Eurobank Ergasias SA Financial Statement Overview
Summary
Eurobank Ergasias SA is in a strong financial position with solid profitability, a robust balance sheet with no debt, and strong cash flow generation. The company has shown consistent revenue growth and effective capital management. The absence of EBITDA figures may slightly limit operational performance insights, but overall, the financial health of the company is commendable.Income Statement
Eurobank Ergasias SA demonstrates strong profitability with a consistent increase in net income over the years. The TTM gross profit margin is 76.73%, and the net profit margin is 41.27%, indicating effective cost management and strong profit generation. Revenue has grown significantly in the TTM period by 25.27%, showcasing robust business growth. However, the absence of EBITDA figures could limit the complete assessment of operational efficiency.75
Positive
Balance Sheet
The company maintains a solid equity base with an equity ratio of 8.77% in the TTM, and has no total debt, signifying financial stability and low leverage risk. The return on equity is impressive at 14.82%, indicating efficient use of shareholders' funds. A strong cash position further enhances the balance sheet's strength.85
Very Positive
Cash Flow
Eurobank Ergasias SA shows a positive free cash flow in the TTM, indicating good cash management with a free cash flow to net income ratio of 1.64. The operating cash flow to net income ratio is 1.79, pointing to strong cash generation relative to net income. Although there was a negative operating cash flow in the prior period, the current figures reflect a recovery.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.87B | 3.24B | 2.51B | 2.81B | 1.90B | 2.18B |
| Gross Profit | 2.49B | 3.22B | 2.91B | 2.81B | 1.90B | 2.18B |
| EBITDA | 1.06B | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 1.48B | 1.45B | 1.14B | 1.35B | 328.00M | -1.21B |
Balance Sheet | ||||||
| Total Assets | 100.43B | 101.15B | 79.78B | 81.46B | 77.85B | 67.73B |
| Cash, Cash Equivalents and Short-Term Investments | 16.66B | 18.03B | 1.50B | 16.32B | 14.14B | 7.30B |
| Total Debt | 10.54B | 9.65B | 11.61B | 3.55B | 3.69B | 3.17B |
| Total Liabilities | 91.23B | 92.25B | 71.88B | 3.55B | 72.22B | 3.17B |
| Stockholders Equity | 9.20B | 8.90B | 7.90B | 6.62B | 5.54B | 5.25B |
Cash Flow | ||||||
| Free Cash Flow | -1.01B | 99.00M | -2.32B | 2.71B | 8.08B | 3.21B |
| Operating Cash Flow | -787.00M | 296.00M | -2.18B | 2.87B | 8.21B | 3.49B |
| Investing Cash Flow | 2.54B | 3.29B | -2.27B | -2.66B | -2.70B | -468.00M |
| Financing Cash Flow | 2.64B | 1.48B | 908.00M | 1.02B | 953.00M | -890.00M |
Eurobank Ergasias SA Technical Analysis
Positive
1.84
Price Trends
1.56
Positive
1.44
Positive
1.27
Positive
Market Momentum
0.08
Negative
79.74
Negative
97.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGFEY, the sentiment is Positive. The current price of 1.84 is above the 20-day moving average (MA) of 1.69, above the 50-day MA of 1.56, and above the 200-day MA of 1.27, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 79.74 is Negative, neither overbought nor oversold. The STOCH value of 97.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EGFEY.
Eurobank Ergasias SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $9.57B | 7.95 | 14.97% | 4.34% | 40.76% | 49.22% | |
80 Outperform | $13.54B | 8.52 | 16.98% | 3.20% | 24.26% | 10.29% | |
78 Outperform | $125.26B | 9.08 | 13.25% | 2.94% | 0.26% | 19.35% | |
76 Outperform | $70.73B | 10.72 | 11.92% | 11.99% | -0.63% | -6.01% | |
67 Neutral | $16.77B | 11.73 | 9.77% | 3.75% | 12.07% | -8.28% |
* Financial Sector Average
Performance Comparison
EGFEY
Eurobank Ergasias SA
1.84
0.75
68.81%
ING
ING Groep
22.74
5.73
33.69%
SAN
Banco Santander SA
8.43
3.77
80.90%
BPIRY
Piraeus Bank
7.66
3.70
93.43%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.