In a stock market period that is not developing particularly positively for banking stocks, Eurobank CEO Fokion Karavias acquired the second largest financial institution in Cyprus, namely Hellenic Bank, completing an investment of 1.3 billion euros (for 93.4% of the shares).
The first benefits of this development have already become visible in Eurobank’s consolidated balance sheet, which showed that the Group’s assets reached the milestone of 100 billion euros in the 9-month period.
And all this, while Fokion Karavias, along with the help of the other members of the management, seems to be “betting” more and more on markets outside Greece.
Based on the latest data, 27% of the Group’s assets come from Cyprus and 11% from Bulgaria, where Eurobank has a presence via Postbank. Moreover, there is also Eurobank Private Bank Luxembourg with branches in Luxembourg – London.
Karavias, who will have completed 10 years at the “helm” of the management next year, sees the adjusted profits from foreign activities constituting 43.5% of the Group’s total profitability in the 9 months, with Cyprus contributing 335 million euros (Eurobank Cyprus + Hellenic) and Bulgaria 154 million euros (total 489 million euros).
The CEO’s “expansive” moves, in addition to the reasonable benefits in terms of strategy and business plan, are also supporting Eurobank’s stock on the Athens Stock Exchange, which is valued at 7.5 billion euros, offering a return of more than +27% since the beginning of the year – against the recent collapse of the broader sector.
In fact, analysts have upgraded their estimates to 2.75 euros (average price – target) over a 12-month period, which translates into a valuation of 10 billion euros or in other words, a rally of +35% compared to current levels.
