Greek lender Eurobank plans to unveil its 2027-2029 business strategy in late February, outlining profitability targets, international expansion plans and the integration of insurer Eurolife, as rising interest income supports earnings growth.
The announcement came during a conference call with analysts following the bank's financial results for the first nine months of 2026.
Chief Executive Fokion Karavias highlighted the favorable economic outlook for Greece and Cyprus, saying declining public debt levels distinguish the two economies from much of the eurozone.
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Group Chief Financial Officer Haris Kokologiannis forecast 9% growth in net interest income for 2026. Net interest income rose 8.7% to €2.068 billion during the first nine months, while fee and commission income increased 13% to €630 million.
The acquisition of Eurolife is expected to contribute an additional €20 million to €22 million in fee income during the fourth quarter, with its annual contribution estimated at approximately €100 million.
Eurobank also expects credit risk costs to remain broadly stable after reaching 53 basis points during the nine-month period.
Management separately addressed the restructuring of Swiss franc-denominated mortgages, reporting stronger-than-expected borrower participation in a recently introduced relief program.
More than 75% of eligible borrowers opted into the arrangement, executives said.
However, the program could temporarily weaken the bank's reported asset-quality indicators in the fourth quarter.
Some Swiss franc loans may be reclassified as unlikely-to-pay exposures, potentially increasing Eurobank's nonperforming exposure ratio by approximately 40 basis points, to 2.85% from 2.45% at the end of September.
The reclassification could also reduce the bank's coverage ratio for nonperforming exposures by roughly 10 percentage points, from 81.9% at the end of the third quarter.
Management emphasized that these accounting changes aren't expected to affect the bank's cost of risk.
