Eurobank merger creates €28bn powerhouse, showing confidence in Cypriot economy

Eurobank Limited, the new entity formed through the merger of Eurobank Cyprus and Hellenic Bank, is redefining Cyprus’ financial landscape while strengthening the island’s role as a key regional hub for banking and investment.

The newly merged bank has now become the largest financial institution in Cyprus, boasting assets exceeding €28 billion.

Its creation marks a historic milestone for the Cypriot banking sector and signals the start of what the bank’s leadership describes as a new era of stability, growth and international expansion.

Chief Executive Officer Michalis Louis described the merger as a landmark development that underscores Eurobank’s long-term commitment to Cyprus.

“The creation of Eurobank Ltd represents a historic milestone for the Cypriot banking sector and marks the beginning of a new era for the Eurobank Group in the country,” he said.

He added that the strategic investment of €1.3 billion constitutes “a strong vote of confidence in the Cypriot economy and its prospects,” reaffirming the country’s pivotal role in the group’s broader regional strategy and its commitment to supporting the economy and business community in the long term.

Louis noted that through the merger of Eurobank Cyprus and Hellenic Bank, two robust banking presences have been consolidated into a single organisation with increased reach and strength.

“With assets exceeding €28 billion, Eurobank Ltd becomes the largest financial institution in Cyprus, implementing the vision of sustainable growth, technological advancement and human-centred banking,” he said.

He stressed that since Eurobank first began operating in Cyprus in 2007, it has maintained a consistent, reliable and customer-centric approach, building strong ties with both the market and society.

“Today, through a modern business model, the bank responds effectively to the evolving needs of the Cypriot market and its international clients, offering specialised financial and insurance services of high added value,” Louis said.

He explained that strategic initiatives in the insurance sector and emerging synergies further strengthen Eurobank’s position, laying the groundwork for stronger support of entrepreneurship, innovation and sustainable development.

At the same time, Eurobank Ltd is emerging as a strategic business hub for the wider South-Eastern Mediterranean, linking Europe, the Middle East and Asia, and reinforcing both the group’s regional presence and its international outlook.

“In this new era, Eurobank Ltd focuses on enhancing stability, transparency and resilience, aiming to consolidate a modern, innovative and outward-looking bank, capable of meeting the challenges of the next decade and actively contributing to growth as a bridge for the group’s international expansion,” Louis said.

Echoing these sentiments, Stavros Ioannou, Deputy Chief Executive Officer, Group Chief Operating Officer and Head of International Activities at Eurobank SA, highlighted the group’s broader regional ambitions.

“By implementing a coherent growth strategy that combines diversified profitability, innovation, extroversion and sustainability, Eurobank is dynamically evolving into a strong regional banking group,” he said.

He added that the group’s balance sheet now exceeds €100 billion, making Eurobank “the only Greek banking organisation widely recognised by the market and institutions as systemically significant at the European level.”

Eurobank’s operations now include over €54.3 billion in loans and €79 billion in deposits, while 53 per cent of its net profits come from international activities, with a goal to increase this to 55 per cent by 2027.

Ioannou identified Eurobank Ltd in Cyprus as a cornerstone of the group’s regional strategy, underscoring the group’s confidence in Cyprus’ economy and business environment.

He said that the goal of this new era is to position Cyprus as an investment centre supporting Eurobank’s further expansion into markets such as India, Saudi Arabia, the United Arab Emirates and Israel.

“With the establishment of a representative office in Mumbai by the end of 2025 and subsequently in Abu Dhabi, Eurobank is emerging as a hub connecting emerging markets with Europe, making Cyprus a gateway for businesses from India and the Middle East,” Ioannou said.

He added that the bank continues to strengthen its diversified operating model, including the agreement to reacquire the life insurance operations of Eurolife, further expanding its presence in the insurance sector.

“Eurobank consistently invests in cutting-edge technologies with a human-centred philosophy, evolving into a modern banking platform that combines banking excellence with digital flexibility and strong regional presence,” he said.

The group’s latest financial results for the nine months ending September 30, 2025, underline this momentum.

Eurobank Holdings reported adjusted net profit of €1.06 billion, compared with €1.14 billion in the same period last year, marking a 7.6 per cent decline.

Total operating income grew by 6.6 per cent to €2.51 billion, while core pre-provision income remained steady at €1.53 billion.

Net Interest Income rose by 4.0 per cent to €1.90 billion, and Commission Income increased by a striking 23.7 per cent year-on-year to €557.2 million.

Profit before tax stood at €1.37 billion, while the group’s Return on Tangible Book Value (RoTBV) reached 16.2 per cent.

The Common Equity Tier 1 (CET1) ratio stood at 15.5 per cent, with the Total Capital Adequacy ratio at 18.9 per cent, reflecting a solid capital position despite a challenging interest rate environment.

The group achieved €3.3 billion in organic loan growth during the period, an 11.2 per cent year-on-year increase, while deposits increased by 5.9 per cent.

Cyprus continues to play a vital role in the group’s profitability, accounting for 35 per cent of adjusted net profit, or €370 million, representing 27 per cent of group assets, including €8.5 billion in loans and €23.3 billion in deposits.

Eurobank also completed the acquisition of 80 per cent of Eurolife Life Insurance at a 1.45 times price-to-book ratio, a transaction expected to increase Fees and Commissions by around 12 per cent and Earnings Per Share by 5 per cent.

The group plans to apply for classification as a Financial Conglomerate (FICO), which could further strengthen its capital position.

In a recent corporate note, Eurobank described itself as a reliable platform for innovation and sustainable growth, with a long-term focus on customer-centric banking, technological investment, and responsible corporate governance.

The group’s wealth management division aims to reach €30 billion in assets under management within three years, using Luxembourg as its central hub for private banking.