Eurobank proposes dividend distribution
After 16 years – the last time was in 2007 – we are able to propose to the General Assembly the approval of a dividend distribution of 9.33 euros per share, which corresponds to 30% of the net profits for the year 2023,” said Mr. Fokion Karavias, CEO of Eurobank, during the bank’s general assembly.
“Eurobank solidifies its position as a regional banking group,” he noted. “In Greece, our bank plays a central role in financing the economy – from large.”
Investment and Infrastructure Development in Greece
Greece is currently focusing on the development of infrastructure projects for businesses of all sizes and households. Mr. Karavias emphasized the importance of funding and facilitating investments, both foreign and domestic, private and public.
The average investment rate in our country is at 14% of the GDP, compared to 21.4% in the Eurozone. Recent calculations by the economic research department of Eurobank suggest a 2.5% economic growth rate for the next decade.
Investment Strategy for Economic Recovery in Greece
In order to reach the European average by 2033, investments in Greece need to increase by 6.7% annually, in real terms, consistently for the next ten years. Our focus is on channeling funds from the Recovery and Resilience Fund into the economy successfully. We are the bank that requested the most of the first six installments of the Fund,” he noted.
“We are already involved,” Mr. Karavias said, “in financing 76 investment projects, with a total budget of 5.7 billion euros, utilizing 1.5 billion in resources.”
Acquiring new customers and expanding our international presence are key priorities for Eurobank. We have successfully achieved our goal of increasing sustainable lending by 20% by 2023, as well as growing our Corporate and Investment Banking portfolio to 2.1 billion euros. Our international activities in Cyprus and Bulgaria have been instrumental in our overall success, allowing us to maintain a competitive advantage in the market. In compliance with Cypriot law, we have made a mandatory public offer for the acquisition of new shares in the market. Our commitment to sustainable growth and responsible banking practices remains at the core of our business strategy.
Acquisition of Greek Bank Shares
There is currently an ongoing acquisition process for up to 100% of the shares of the Greek Bank. At the moment, we already hold a 55.5% stake, which is necessary for the public offer to be considered successful. We are focusing on asset management, particularly in the private banking/wealth management sector. By adopting advanced digital infrastructures and aiming to double the capital under management within the next few years, which currently stands at around 12 billion euros,” he added.
Results and Employee Increases
“The net profits”
Financial Results of the Bank
The bank’s profits reached 1.25 billion euros, with international activities contributing 468 million. Earnings per share were at 0.31 euros and the book value exceeded our initial expectations, reaching 2.07, marking a 21.1% annual increase,” Mr. Karavias emphasized.
Dividend Distribution
Based on the results, the distribution of dividends was approved, corresponding to a distribution rate of 30% of the net profits for the year 2023, meaning a dividend of 9.33 cents per euro (342 million). For the coming years, a gradual increase in the distribution rate to 50% is expected.
Increased Profit and Employee Benefits
The bank has reported a 30% increase in annual net profits, showing a strong financial performance. Additionally, 7 out of 10 employees have received salary increases, boosting morale and motivation within the organization.
Departure of Key Executives
Both the president and CEO of the bank expressed gratitude towards George Chrysikos, the former vice president of Eurobank, for his valuable contributions. Mr. Chrysikos has decided to leave the bank after a decade of service in its management.
