Letter to stakeholders

2024 has been a transformative year for Eurobank. A year marked by a number of successful strategic initiatives and buyouts which expanded our business, as well as a year of strong organic growth, culminating in historically the highest profitability. Combined, these developments have strengthened materially our franchise and enhanced its prospects. Eurobank is a robust, dynamic and pioneering regional banking group, with three core markets in Greece, Cyprus and Bulgaria, serving clients in five countries, including the European financial centres of Luxembourg and London, with a balance sheet exceeding for the first time the €100 billion threshold, a loan book of over €50 billion, over €75 billion in deposits and €20 billion in assets under management. The Group dynamics set in motion in the course of 2024 and our tested, diversified business model are the cornerstone of future performance, within an international economic backdrop of increased volatility and emerging challenges.

The global economy has entered a new phase. 2024 was a year of growth, at a pace of 3.3% for global GDP. Inflation continued to fall, and a supply shortage in labour markets supported households’ disposable income. However, different trends prevailed at the end of the year and in the first few months of 2025, with questions about the possibility of a protracted trade war, the return of tariffs as a tool of trade policy and policy uncertainty at unprecedented levels. The overall impact is difficult to forecast, but estimates already point to weaker growth and a negative effect on most major economies, with the EU somewhat less exposed to downward trends than the US, mainly due to the new European defence financing plan EURearm and increased infrastructure spending in Germany. It is clear, though, that the extent of disruption is altering the foundations of international trade for the longer term, as we witness a shift in the economic, financial and geopolitical order. Even the most fundamental relations are put to the test, including the Atlantic relation between the US and Europe, which was the pillar of the postwar world order. It is a once- or twice-in-a-century shift which presents all stakeholders, countries, supranational organisations, as well as corporates with new challenges in risk management, particularly pronounced in the financial sector.

Despite geopolitical tensions and geoeconomic turbulence, in all of our three core markets, the economy is performing considerably better than the eurozone average of 0.9%. In Greece, 2024 was the fourth consecutive year of overperformance, with a growth rate of 2.3%, unchanged year-on-year. Inflation remained relatively higher at around 3.1% (18-month average), mostly due to cost of services, whereas unemployment further declined to 10.1%. The Greek economy is benefiting from the continued inflow of EU funds, mainly from the Recovery and Resilience Facility (RRF), sustained external demand in the key tourism sector and a stable outlook at both the financial and fiscal level, with a healthy and active banking sector and a credible commitment to fiscal discipline. The latter was highlighted in a major achievement in public finances – a primary fiscal surplus of 4.8% and a total fiscal surplus of 1.8% in 2024. Public debt remains high at 153.6%, but on a steady downward trajectory from the 209.4% peak, as recently as in 2020. The external balance is more challenging, with a 6.4% deficit in 2024. Over the medium term, as Eurobank has repeatedly underlined and documented in detailed research, it is of paramount importance for Greece to shift from a consumption-based to an investment-driven growth model. Improvement is clear, as fixed asset investments have increased to 15.3% of GDP in 2024 from 11% in 2019. However, this is still lagging behind the eurozone average of 21% and bridging the gap is an absolute priority for the Greek economy in the immediate future. Over the next years, the growth rate is expected to remain in the region of 2-2.5%, with overall positive dynamics, but also some downside risks, including a weak external economic environment, geopolitical uncertainties, the impact of climate change, structural deficiencies, a slow reform pace and a growth model overly dependent on tourism and consumption.

Growth dynamics are equally positive in our two other core markets. The Cypriot economy grew by a strong 3.4% in 2024 and Cyprus’ credit rating was revised upwards. In Bulgaria, the economy gathered steam, growing by 2.8%, while inflation dropped to 2.6% from 8.6% in 2023, bringing the country within reach of the top goal of the national agenda, to become the next member of the eurozone.

For Eurobank, 2024 was a year marked by success in implementing strategic decisions. Cyprus is central to our planning. We completed the acquisition of Hellenic Bank, moving forward timely with our schedule to merge it with Eurobank Cyprus. We also acquired a top insurer, the ex-subsidiary of CNP in Cyprus, which will also be merged with the insurance companies already controlled by Hellenic Bank. Thus, we are creating the leading banking and insurance franchise in the country. Yet our plans and our aspirations go well beyond. As a large part of the global economic, business and trade activity is gradually migrating eastwards, to India and the GCC countries, and this shift is coupled with major international initiatives, such as the IMEC, Cyprus is becoming a key point with the potential to become a regional economic centre. We are streamlining our business priorities with the aim to become a catalyst for Cyprus to function as a hub for businesses for their regional activities and a first point of entry to the EU market, with Eurobank as a lever providing the necessary financial services and support.

Overall, the 2024 financial results exceeded expectations and were the best on record for the Group. In 2024, profitability was up by 27%, with international operations contributing almost half, and RoTBV came to 18.5%. Earnings per share grew to €0.39. Credit expansion was strong, with our total loan book growing by 10% and a particularly solid year in Bulgaria, with a 16% increase in loans and 10% in deposits. For the Group, total deposits were up by €6 billion. Asset quality continued to improve, with the NPE ratio edging below 3%, covered at almost 90% by provisions. Our efforts to contain cost continued and cost-to-income ratio remained at the low end of the European sector, at 33%. Organic profits strengthened our capital, with a CET1 ratio of 15.7% and a total CAD of 18.5%.

As a result we were able to achieve the main target we had set and reward our shareholders at a higher payout ratio of 50%, a total of €674 million, with a cash dividend of 10.5 euro cents per share and a share buyback programme to the tune of €288 million, both the highest among peers. After fully delivering on our previous business plans, we have outlined a thorough planning for the next three-year period, aiming to retain a recurring RoTBV in the region of 15%, with more than half coming from our international activities, and to distribute at least half of our profits, so that the cumulative distribution ends up double than in the previous 2022-2024 period.

Our purpose is to support the pioneers of growth so that all countries and communities that welcome us and honour us with their trust and their business benefit from our presence. Our clients are at the centre of our business, our everyday work, our plans and our strategy. We serve both households and businesses, and we are restless to provide a full array of top-notch, efficient banking services to those who choose to partner with us. This client-centric culture and, importantly, the way it is put into practice by our people, everyone at Eurobank, across all levels and in our every endeavours, is at the heart of our business model and the results it brings. We are financing growth and in 2024 our total loan book exceeded €50 billion, after expanding by almost €4 billion year-on-year. In Greece, where EU RRF funds are the main growth lever, Eurobank has from the outset been at the forefront of the effort to distribute available funding to the real economy and we were the first bank to apply for the 8^th tranche of the programme. Credit expansion in Greece came close to €3 billion, focused on financing investment projects, both public and private. SMEs are the backbone of the Greek economy and we spared no effort to support them, in terms of financing, but also as trusted advisors and consultants to our clients for all their needs, to sustain their present activities and grow their businesses by exploiting the opportunities of the economy’s upward cycle. In 2024, we provided more than €750 million in financing to more than 9,000 SMEs. We are also serving them with innovative, tailor-made products and services. After singling out a weakness in the financing system, whereby SMEs need working capital while unable to provide collateral, we created a truly groundbreaking product, the POS Cash Advance, through which the POS becomes a financing tool and small businesses can get credit on the back of their POS turnover, with no other strings attached. Eurobank is the only bank to provide credit on these terms. We are also offering a prime digital service for SMEs, v-Banking, which features fully remote banking, including contract signing.

We leverage technology to provide our time-conscious clients with seamless, easy-to-use service and to guarantee the security of our digital offering. Beyond the standard digital transactions, we are proceeding with the rollout of the phygital banking model we have adopted and pioneered. Our new-generation branches focus on banking advisory and have been welcomed by our clientele, while with the new mobile banking they can arrange for a physical meeting within just four days, at the time and in the branch of their choice.

For households, housing is a major challenge that tops the social agenda in many countries. We are focusing on providing mortgages that cover the needs of all clients, especially young couples, and we participate actively in the Greek state programme “Spiti mou 2” (My Home 2). However, demand remains relatively subdued in Greece, while the opposite is the case in Bulgaria, where mortgage loans increased at a double-digit yearly rate.

In bancassurance, we work with our long-standing partner, Eurolife FFH, to provide products that promote the idea of P&C insurance, with incentives including a graded pricing, with lower costs as the number of covered risks increases. Greece remains largely under-insured compared to mature European markets and we see potential in further growing cross-selling of banking and insurance products.

We are a banking group with presence in five markets, including the two main European financial centres of Luxembourg in London. This gives us a competitive advantage and the opportunity to materially expand our Wealth Management unit across geographies. We are also testing the waters in new markets, and with a new internal structure we aim to fully exploit potential synergies. Total AUMs reached €8 billion. We provide a unified service to 15,000 trusted clients, integrating all Private Banking offerings under our Eurobank Private Bank Luxembourg subsidiary.

As in every other business, AI is growing exponentially and bringing about radical change in the banking sector. We are investing heavily in technology, not only to provide next-gen digital products and services to clients, but also to integrate cutting-edge technologies into our operations. In this respect, we have rolled out the new, market-leading core system of Temenos, first in Cyprus and then in Luxembourg, while we are speeding up migration to cloud-based systems for our banking systems to guarantee efficiency and security of our IT infrastructure.

Delivering in the present is not enough. We focus on the future with sustainability at the core of our business model, planning, priorities and vision for Eurobank. In 2024, we joined the Net-Zero Banking Alliance (NZBA), reinforcing our goal of net-zero emissions by 2050 or sooner, in line with the most ambitious targets set by the Paris Climate Agreement. We are aligning our lending and investment portfolios with this target and issued a €850 million Green Senior Preferred Notes to finance green eligible projects.

We acknowledge that sustainable development is key to prosperity. To this end, our commitment to support the transition to a greener economy by offering financing solutions that promote growth and sustainable development is at the core of our financed impact strategy. Within 2024, we provided funding in the energy sector for RES projects of 6.3 GW installed capacity, maintained the highest Green Asset Ratio (2.6%) among Greek banks and provided a comprehensive suite of sustainable financing options for small businesses and households.

Following the guidelines of the NZBA, the Group is committed to reducing financed emissions from the most carbon-intensive and influential sectors, aiming to align with the ambition of limiting global warming to 1.5°C by 2050.

As part of our operational impact strategy, CO² emissions have been significantly reduced, energy self-production from solar panels has commenced, 97.97% of total electricity consumed was sourced from renewable energy sources and the number of our certified green buildings have increased to 20. We have incorporated sustainability considerations into our procurement processes, which have been successfully verified through the ISO certification on Sustainable Procurement in the past year. Additionally, Eurobank has endorsed the UN Women Empowerment Principles, promoting workplace gender equality.

Eurobank has also achieved its targets to attain Compliance Management Systems certifications for its Anti-bribery Management System and Anti-money Laundering, along with maintaining ISO certification for the Whistleblowing Management System. These certifications demonstrate the Group’s adherence to international standards in ethics and compliance, and the implementation of best practices for preventing, detecting and responding to bribery and corruption risks.

In 2024, we began preparing the first CSRD Group Sustainability Statement, a milestone in Eurobank’s sustainability trajectory. This was a major project, which required a coordinated effort, with direct involvement from more than 30 data owners and a dedicated core team of 45 members. The Statement was published in the first quarter of 2025.

We are fully aware of the role and the responsibility of a major financial organization in being a model and a leader in society, answering to needs that go beyond our narrow economic mandate. We are particularly proud of our record in Corporate Social Responsibility and we are committed to expanding an already extensive social footprint. Most of our initiatives share a common reference to youth – its challenges, needs and prospects. Our “Moving Education Forward” initiative rewards excellence and achievement in secondary education and is one of the longest-standing CSR programmes, active without interruption for more than two decades. It counts more than 23,500 alumni, who have been rewarded as top-of-class in nearly 2,000 general and vocational-training schools in the state-organised Greek university-entry exams. The initiative is continuously adapting to a changing educational environment, with meritocracy always at its heart. Moving beyond the annual awards, we added a pioneering, first of its kind in Greece, postgraduate programme in digital transformation, in cooperation with the Athens University of Economics and Business. And, in another innovative initiative, we are giving the top graduates of this programme the option of an offer to get immediately hired – with no other qualification required – by Eurobank. We are convinced that in this way not only are we rewarding academic excellence and creating a transparent, merit-based flow of new recruitments, but we are also forming a pool of colleagues from which the new generation of Eurobank leaders will emerge.

We are always present and ready to provide assistance whenever a major emergency creates unforeseen needs for society. And we are always present and ready to support major state initiatives and programmes that require the contribution of the private sector. Along with the other systemic banks, we committed to give €25 million each to the “Marietta Giannakou” programme to renovate and modernise the stock of school buildings, under the guidance of the Ministry of Education, Religious Affairs and Sports. We contributed an amount of €12.5 million, for a wide array of projects to rebuild and modernise the infrastructure in the region of Thessaly, after the devastating floods caused by Daniel storm in 2023. And another €25 million is our contribution to the private capital needed for the establishment of the state-led Property Repossession Agency, with a mandate to protect the main residence of vulnerable households with non-performing mortgages. This initiative will also help alleviate the acute shortage of available real estate assets, which has propelled the housing problem to social prominence.

Eurobank has identified the demographic problem in all its aspects, from low birth rates to ageing populations, as a major issue in Europe and the top long-term challenge for countries like Greece. Since 2021, we are unfolding an ever-increasing array of actions and our “Moving Family Forward” initiative has been greeted as both timely and effective from all stakeholders and warmly embraced by all communities involved. Apart from financing a white paper as a reference for future policymaking and supporting an annual conference on the demographic issue, we have focused our activities on eastern Greece. Results are beyond our expectations. Through our collaboration with Be-Live we provide low-income households with the possibility to proceed with in vitro fertilisation (IVF) and at least 60 babies have been born, while many pregnancies are already underway, and more families have joined and are following the medical process. Countering the shrinking population in smaller cities and villages hinges on providing the younger generations, those who are entering or just entered the labour market, with sufficient employment opportunities. Leveraging the possibility of working remotely, we established a pioneering programme of transferring job positions from the centre to the periphery. We already have 75 colleagues, mostly women, in permanent positions working from home, and thus able to cater to their families without having to move to a large city. To further assist these communities, we are the only bank to offer a special mortgage, at an ultra-low 1% interest rate, fixed until repayment, for households with 3 or more children who want to buy a primary residence in the reference regions of our “Moving Family Forward” initiative.

Within the same context, we launched a groundbreaking programme to support larger families within Eurobank. As an incentive, our colleagues who see a third (or more) child born into their family, get a generous lump sum of €25,000 or €30,000 to cope with the costs of a newborn. This initiative, unique in the sector, has been greeted even beyond the Eurobank family as a model for other private organisations.

We are constantly trying to look after our people, who are – as we have repeatedly underlined – Eurobank’s top competitive advantage. The positive financial results of the Group allow us to reward effort and achievement. Almost 80% of employees will receive a bonus for 2024. And practically all employees will receive an extra amount, beyond their salary, in recognition of the collective contribution to the Bank’s outstanding performance. However, variable pay for the CEO and the other two executive members of the BoD will remain at last year’s levels, despite the Bank reporting a 27% higher profitability. Bonus rise for the other top executives is also considerably lower than average, with single-digit increases, while at least 50% of these bonuses come in the form of stock options, linked to future performance of the Bank in a 5-year horizon, in order to streamline the priorities of the organisation with the personal benefit of its leading executives. This is a way for a larger chunk of the bonus pool to be directed towards rewarding the rest of the eligible colleagues. In total, 4,700 employees will share about €30 million, the largest sum among peers.

Retaining and bringing in new talent is paramount to our planning for the future of the Bank. We have embarked in a three-year programme of targeted hiring, aiming to onboard about 900 new employees, at all levels, with top qualifications and market credentials, able to perform in areas where we expect growing future needs and opportunities to expand our business.

Our continuous improvement in sustainability performance is reflected in the internationally renowned sustainability ratings in which we actively participate. Especially with respect to Sustainalytics, Eurobank has been ranked in the best risk category “Negligible”, being the first Greek bank to receive this top rating. Along with the important ESG Industry Top Rated 2025 and ESG Regional Top Rated 2025 distinctions, Eurobank has been placed among the top 4% of banks worldwide (33^rd out of 1,026 banks).

Eurobank has built a strong franchise with a solid business model, ready to leverage growth opportunities and handle external challenges. We recognise global economic and geopolitical developments and are confident in our ability to deliver value to shareholders, clients, employees and the communities we serve, fostering sustainable prosperity everywhere we operate.