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ANNUAL
FINANCIAL
REPORT
FOR THE YEAR ENDED
31 DECEMBER 2024
According to
Article 4 of the Law 3556/2007
Table
of Contents
A.
Statements of members of the
Board of Directors
B.
Report of the Directors for
the year ended 31 December 2024
Attachments to the Report of the
Directors
I.
Corporate Governance
Statement
II.
Sustainability Statement
C.
Audit Committee Activity Report
D.
Financial Statements for
the year ended 31 December 2024
I.
Consolidated Financial Statements of the Company
II.
Financial Statements οf the Company
E.
Auditor’s reports
I.
Ιndependent Auditor’s Report
II.
Independent Auditor’s Limited Assurance Report on
Sustainability Statement
Statements
of Members of the Board of Directors
(according to the article 4 par. 2 of the Law 3556/2007)
We declare that to the best of our knowledge:
●
the annual
financial statements
for the
fiscal year
ended 31
December
2024, which
have
been prepared in accordance with the applicable set of accounting standards, honestly and
accurately reflect
the assets
and liabilities,
the equity
and the
annual results
of operations
of Eurobank Ergasias Services and Holdings S.A., as well
as the companies included in the
consolidation considered as a whole, and
●
the report of
the Board of
Directors fairly reflects
the development
and performance
of the
business and the position of Eurobank Ergasias Services and Holdings
S.A., as well as the
companies included in the consolidation considered
as a whole, along with a description
of
the
main
risks
and
uncertainties
they
face.
The
sustainability
statement
attached
to
the
report
of
the
Board
of
Directors
has
been
prepared
in
accordance
with
the
sustainability
reporting standards referred to in Article 154A of
Law 4548/2018 and with the specifications
approved pursuant to paragraph 4 of Article 8
of Regulation (EU) 2020/852 of the European
Parliament
and
of
the
Council
of
18
June
2020,
establishing
a
framework
to
facilitate
sustainable investments and amending Regulation (EU)
2019/2088.
Athens, 7 March 2025
Georgios P.
Zanias
I.D. No AI – 414343
CHAIRMAN
OF THE BOARD OF
DIRECTORS
Fokion C. Karavias
I.D. No ΑΙ - 677962
CHIEF EXECUTIVE
OFFICER
Stavros E. Ioannou
I.D. No A - 00546500
DEPUTY
CHIEF EXECUTIVE
OFFICER
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS
1
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€ = Euro
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1
2
The directors present
their report together
with the financial statements for
the year ended 31 December
2024.
General information
Eurobank Ergasias Services and Holdings S.A. (the Company or Eurobank Holdings) is a holding company
listed on the Athens
Exchange, owning 100% of the share capital of Eurobank S.A. (the Bank). Eurobank Holdings and its subsidiaries form a group
(Group),
consisting
mainly
of
Eurobank
S.A.
group,
that
being
the
Bank
and
its
subsidiaries.
The
Company’s
operations
principally relate
to the
strategic
planning of
the
non-performing
loans management
and the
provision
of services
to the
Group entities and third parties.
Financial Results Review and Outlook
In 2024, despite the challenging international environment,
the macroeconomic backdrop
was supportive in Greece and the
other
countries of
substantial presence.
The
Group,
following
the
full consolidation
of Cyprus’
Hellenic Bank
from
the
third
quarter of 2024, grew the size of its balance sheet,
expanded further its business and continued its solid performance
across
most
areas.
It
enhanced
its core
profitability,
maintained
its
resilient
capital
position
and
asset
quality,
strengthened
its
liquidity, rewarded
its shareholders and contributed to the
economies and the society.
As at 31 December 2024 total assets
increased by €21.4bn to €101.2bn (Dec.
2023: €79.8bn), of which €18bn related to Hellenic
Bank
group,
with
gross
customer
loans
amounting
to
€52.3bn
(Dec.
2023:
€42.8bn)
and
investment
securities
reaching
€22.2bn (Dec. 2023: €14.7bn). Out of the total loan portfolio, €30.5bn has been originated from Greek operations
(Dec. 2023:
€28.1bn),
€17.4bn
from
international
operations
(Dec. 2023:
€10.3bn), of
which €5.8bn
related
to Hellenic
Bank and
€4.4bn
refer
to
notes
from
securitizations
of
loans
originated
by
the
Group
(Dec.
2023:
€4.5bn).
Business
(wholesale
and
small
business) loans stood at €30.9bn
(Dec. 2023: €25bn) and accounted for 59% of total Group
loans, while loans to households
reached €17bn (Dec. 2023: €13.4bn), of which 73% is the mortgage portfolio and the
rest are consumer loans. Group deposits,
reached
€78.6bn
(Dec. 2023:
€57.4bn)
with
those
from
Greek
operations
amounting
to
€43.3bn (Dec.
2023: €40bn),
while
international operations
contributed with €35.3bn of which €15.7bn related to Hellenic
Bank (Dec. 2023: €17.5bn).
As a result,
the (net) loan–to–deposit (L/D) ratio stood at 64.8% for the Group (Dec. 2023: 72.3%)
and at 77.8% for Greek operations (Dec.
2023: 78.3%). In December 2024, the Group fully repaid its secured borrowing
under the TLTRO
III refinancing program of the
European Central Bank (ECB) (Dec. 2023: €3.8bn). During the year,
as part of its medium-term strategy to meet the Minimum
Requirements for
Eligible Own Funds
and Eligible Liabilities
(MREL), the
Group proceeded
with the
issue of €2.3bn in
senior
preferred
notes and €0.3bn in
Tier II
notes, thereby
increasing its total
debt securities in issue
to €7.1bn
(31 December
2023:
€4.8bn).
In
early
2025,
the
Company
completed
the
issuance
of
€0.6bn
Tier
II
notes
including
the
issued
notes
of
€189m
offered for
exchange for the Hellenic Bank’s outstanding Tier 2 notes, while the Bank completed an issuance of €350m senior
preferred
notes through a private placement
(notes 4 and 34 of the consolidated
financial statements). The
Group Liquidity
Coverage
ratio (LCR)
increased to 188.2% (31 December 2023: 178.6%).
Pre-provision
Income (PPI) amounted to
€2,242m or €2,170m
excluding a) the €99m
gain arising from
the acquisition
of the
additional
shareholding
in
Hellenic
Bank
in
June
2024
and
b)
the
€27m
estimated
cost
for
contribution
to
the
school
renovations
program
(2023: €1,999m
or €1,902m
excluding the
€111m gain
on investment
in Hellenic
Bank (Cyprus)
and the
€14m contribution
to restoration
initiatives
after natural
disasters). The
core pre-provision
income (Core
PPI) increased
by
15.7% year-on-year (or 3.8% excluding €217m related to Hellenic
Bank) to €2,074m or
€2,101m excluding the €27m contribution
as above
(2023: €1,802m or
€1,816m excluding the
€14m contribution as
above).
Net interest
income (NII)
grew by
15.3% (or
1.8%
excluding
€295m
related
to
Hellenic
Bank)
to
€2,507m
(2023:
€2,174m),
primarily
attributable
to
the
Hellenic
Bank
consolidation,
the
higher
average
interest
rates,
the
loan growth
and
the
increased
positions
in investment
bonds
partly
offset by higher debt issued and deposits
cost. Net interest margin (NIM) stood
at 2.73% (2023: 2.75%) with
the fourth quarter
reaching
2.70%. Fees
and commissions
expanded
by
22.4%
(or 13.5%
excluding €48m
related
to Hellenic
Bank) to
€666m
(2023: €544m), of which
banking fees and commissions by 25.5% (or
16.5% excluding €40m related to
Hellenic Bank) to €561m
(2023: €447m),
mainly due
to the
increased fees
from
network
operations,
lending activities
and asset
management.
Fees
and commission over
assets accounted for
73bps (2023: 69bps). Operating
expenses increased by
18.8% (or 4.8% excluding
the €127m
expenses from
Hellenic Bank)
to €1,071m excluding
the €27m
contribution as
above (2023:
€902m, excluding the
€14m contribution
as above)
due to
the
higher
staff costs,
the
inflationary
pressures
and the
higher
IT investments,
partly
offset by
lower
contributions to
resolution
and deposit guarantee
funds. Costs
from international
operations
amounted to
€408m (2023: €258m), while in Greece increased by 3% to €663m
(2023: €644m). The cost to income (C/I) ratio for the Group
reached
33%, excluding
the
€99m gain
and the
€27m contribution,
as mentioned
above
(2023: 32.2%, excluding
the
€111m
gain and
the
€14m
contribution
as above),
while
the
international
operations
C/I
ratio
stood
at
32.4%
(2023:
33.1%).
The
respective cost to core income
ratio for
the Group stood at
33.8% (2023: 33.2%).
Trading and other
activities recorded net income of €168m (2023:
€196m net income) of which a) €84m trading gains mainly
attributable to fair value changes of derivatives used to hedge
dynamically the interest rate
risk of fixed rate loan portfolios
and non-maturing deposits, including realized
gains/losses from the
derivatives’ terminations
(macro hedging)
(2023: €86m
gain), b) €13m gains on sale of
investment bonds at
FVOCI net
of hedging (2023: €57m
gain) and c) €61m net other
income,
including the €99m
gain on the
additional investment
of Hellenic Bank, as mentioned
above (2023: €68m
income, including
the €111m gain on investment
in Hellenic Bank) (notes 9 and 10 to the consolidated financial
statements).
During
the
year,
the
Group’s
NPE
formation
was
positive
by
€222m
(fourth
quarter
2024:
€47m
positive),
(2023:
€138m
positive).
In total,
the
Group’s
NPE stock
stood at
€1.5bn, excluding
the
€0.2bn NPE
of Hellenic
Bank covered
by the
Asset
1
Definitions of the selected financial ratios and the source of the financial data are provided in the
Appendix.
2
Total operating
expenses divided by total core income.
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS
2
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€ = Euro
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bn = billion
Protection
Scheme
(APS)
(31
December
2023:
€1.5bn)
driving
the
NPE
ratio
to
2.9%
(31
December
2023:
3.5%).
The
loan
provisions
(charge),
excluding the
€16m impairment
release
related
to project
Leon, reached
€319m and
corresponded
to
0.69%
of
average
net
loans
(2023:
€412m
or
€345m,
excluding
the
loss
recorded
for
projects
‘Leon’
and
‘Solar’
which
corresponded to
0.85% of average
net loans), while
the NPE
coverage
ratio improved
to 88.4% (31
December 2023: 86.4%).
As a result, “net” NPEs amounted to €177m (31 December 2023: €206m).
Furthermore,
the Group
recognized in 2024
other
impairments, risk provisions
and restructuring
costs amounting to €228m
(2023: €133m), of which a) €161m cost for
Voluntary Exit Schemes
(VES) and related expenses mainly referring
to the scheme
that was
launched in
February
2024 for
eligible units
in Greece,
b) €19m
impairment on
computer hardware
and software
(notes 26 and 28 to the consolidated financial statements),
c) €21m impairment on real estate properties,
including the €9m
remeasurement
loss upon
classification
of the
subsidiary IMO
Property
Investments
Bucuresti
S.A. as
held
for
sale, and
d)
€12m impairment
losses on
investment
bonds (note
12 to
the
consolidated financial
statements).
Moreover,
it recorded
an
additional provision
of € 10m (€7.1m
net of tax) in relation
to the sale
of a Bank’s former
subsidiary, previously
presented as
a
discontinued
operation,
based
on
specific
indemnity
clauses
in
the
relevant
Sale
Purchase
Agreement
(note
30
to
the
consolidated financial statements).
The Group’s
share of associates/JVs results
amounted to €161m income, of which €133m
income represents
the share
of results
of Hellenic Bank
group which
was accounted
for as
an associate
until 30 June
2024
(note 24
to the
consolidated
financial statements).
In accordance
with the
Pillar Two
legislation,
effective
as of
1 January
2024, the
Group has recognized
a current
tax expense of €21.6m
related to the
top up tax applicable
on the profits
earned
for its operations
in Bulgaria and Cyprus (note 13 to the consolidated
financial statements).
Profit or Loss
Overall,
in
2024,
the
profit
attributable
to
shareholders
amounted
to
€1,448m
(2023:
€1,140m
profit),
as
set
out
in
the
consolidated income statement. The adjusted net profit, excluding a) the €121m restructuring costs (after tax), mainly related
to VES, b) the
€99.5m
gain arising from
the acquisition
of the
additional 26.28% shareholding
of Hellenic Bank as
above, c)
the €19m
Bank’s contribution
(after tax)
for
the Greek
State’s school
renovations
program,
d) the
€11m impairment
release
(after tax) relating
to the project
“Leon” and e) the
€7m net loss from
discontinued operations,
amounted to €1,484m (2023:
€1,256m). The
contribution of
international operations
to the
adjusted net profit
amounted to €709m
(2023: €468m profit),
including €275m net profit related to Hellenic
Bank group, which has been fully consolidated from
the third quarter
of 2024.
Based
on
the
Group’s
profits
for
2024,
the
Basic
Earnings
per
Share
(EPS)
reached
€0.40
(2023:
€0.31)
and
the
Return
(adjusted profit) on Tangible
Book Value (RoTBV)
amounted to 18.5% (2023: 18.1%).
Going forward, the Group pursues its
key financial objectives outlined in
the business plan for the period 2025-2027, including
a) maintaining a sustainable 15% RoTBV in a
lower interest rates environment,
following a substantial increase of equity, and
b)
generating
sufficient
organic
capital
to
support
business
growth,
maintain
capital
buffers,
reward
shareholders
by
increasing the dividend payout ratio from 30% in
2024 to
50%, subject to
regulatory approval, over the next years and finance
strategic initiatives,
mainly through the
following initiatives
and actions:
a)
Maintain
high
NII
mainly
driven
by
the
organic
loan
growth
in
all
three
core
markets
and
across
segments
(households
and
business)
and
the
increase
in bond
positions,
which
may
offset
the
pressures
from
the
ongoing
decrease in ECB rates,
the increasing
competition for
good quality corporate
customers, and the
issuance of MREL
eligible senior and Tier II notes,
b)
Strengthening core
markets presence
and increasing earnings and volumes
contribution by international
activities,
which will
be further
enhanced by
the
full consolidation
of Hellenic
Bank in
Cyprus for
the
full year
from
2025 (six
months in 2024) and its planned merger with Eurobank Cyprus (subject to customary approvals) which will allow the
synergies realization
over the
next years,
c)
Growth
of fee
and commission
income in
a number
of fee
business segments
such as
new lending,
network, asset
management, bancassurance
and wealth management activities,
d)
Initiatives
for
pursuing further
operating
efficiency,
cost containment
of “run
the
bank” activities,
and proceeding
with further simplification and digitalization in
Greece and abroad, maintaining
the annual increase of
the operating
expenses
at
a
mid-single
digit
%,
considering
the
higher
staff
costs
including
the
talent
retention
cost,
the
inflationary pressures, and the
“grow the bank” needs
including higher IT investments,
e)
Maintaining low NPE ratios in
all core markets in which the
Group has a presence, which
may be challenged mainly
by the high interest rates
burden on households’ disposable income
and corporate profit margins,
f)
Major transformation
initiatives introduced
in the context of the Group’s
transformation
plan “Eurobank 2030”,
g)
Support the
green transition
and financial inclusion
through the
further
implementation of
the Environment,
Social
and Governance (ESG) criteria
in all Group’s activities and processes.
The
geopolitical and
macroeconomic
risks, including
the
sustained -
albeit easing
- inflationary
pressures,
set a
number of
challenges
to
the
achievement
of
the
Group’s
2025-2027
Business
Plan,
mainly
related
with
growth
potential,
lending
margins,
deposit
rates,
asset
quality
and operating
cost.
The
headwinds
coming
from
the
geopolitical
upheaval
and
the
macroeconomic environment
are likely to be mitigated by:
a)
The efficient mobilization
of the EU funding, mainly through
the Recovery
and Resilience Facility (RRF),
b)
The substantial pipeline of new
investments,
c)
The decrease of the
unemployment rate
in 2025 at single digit levels in Greece,
close to historical lows,
d)
The positive developments
in the tourism sector and the strong
investment inflows,
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS
3
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3
e)
The upgrade of the Greek sovereign to investment grade by four out
of the five Eurosystem-approved External Credit
Assessment Institutions,
f)
The growth
of GDP in our core markets at levels
higher that EU average.
(see also further information
in the section “Macroeconomic
Outlook and Risks”)
Capital adequacy
As
at
31
December
2024,
the
Group’s
Total
Regulatory
Capital
amounted
to
€9.8bn
(31
December
2023:
€8.4bn)
and
accounted for
19.5%
(total CAD)
of Risk
Weighted
Assets (RWA)
(Dec. 2023:
19.4%),
compared to
the
CAD Overall
Capital
Requirements (OCR)
ratio of 15.16%.
Respectively, the
Common Equity Tier 1 (CET1) stood at 16.8% of RWA (Dec. 2023: 16.9%)
compared to the
CET1 OCR ratio
of 10.41% or
12.45%, including the
Additional Tier
1 (AT1)
capital shortfall.
Pro-forma
for the
accrual
for
dividend
distribution
from
financial
year
2024
profits
(subject
to
regulatory
approval),
the
completion
of
the
project “Solar”, as well as
the confirmation by ECB of
the significant risk transfer (SRT) recognition for the “Leon” loan portfolio
and a new synthetic securitization
(project “Wave
VI”) (note 20 of the consolidated financial
statements), the total
CAD and
CET1 ratios would be
18.5% and 15.7% respectively.
As at 31 December
2024, the
Bank’s MREL ratio
at consolidated
level stands
at 28.22% of RWAs
(Dec. 2023: 24.91%),
higher
than the interim non-binding MREL target of 25.62%,
which is applicable from January 2025. Pro
-forma with the completion
of the
project
“Solar”,
projects
“Leon”
and “Wave
VI”, the
accrual for
dividend distribution
from
financial year
2024 profits
(subject
to regulatory
approval)
and for
the
new
issuances
of the
Company and
the
Bank in
early
2025
(see
above),
the
Bank’s MREL ratio at consolidated
level stands at 29.37%
(note 4 to the consolidated financial statements).
Project “Wave”
In the
context of the
Group’s
initiatives for
the optimization
of its regulatory
capital, in July
2024 the
Bank proceeded
with
the execution of another
synthetic risk transfer
transaction (project “Wave
V”) in the form of a financial guarantee, providing
credit protection
over the
mezzanine loss of
a portfolio
of performing
SME and Large Corporate
loans amounting to €1.1bn,
which resulted in a capital benefit of
25 bps to Eurobank Holdings Group’s CAD ratio. In addition, in December 2024, another
synthetic risk transfer transaction
was executed (project “Wave VI”), in the form of credit linked notes (“CLN”), where the Bank
issued a
CLN of
€80m that
provides
credit protection
over
the mezzanine
loss of a
portfolio
of performing
SME and
Large
Corporate loans amounting to €1.1bn. The Wave
VI transaction is expected to contribute 18bps
to Eurobank Holdings Group’s
CET1 ratio.
Pursuant to the Regulation (EU) No 575/2013
(CRR), the deferred tax assets (DTAs) that rely on future profitability and exceed
certain limits
shall be
deducted in the
calculation
of the
CET1 capital.
This deduction
should be
applied gradually
by 2025.
The enactment of the article 27A of Law
4172/2013, as in force, provided for the Greek credit institutions that the eligible DTAs
are accounted on a) the losses from the Private Sector Involvement
(PSI) and the Greek State Debt Buyback Program and b)
on the
sum of (i)
the unamortized
part of the
crystallized loan losses
from write-offs
and disposals, (ii)
the accounting
debt
write-offs and (iii) the remaining accumulated provisions and other losses in general due to credit risk recorded up to
30 June
2015 and can
be converted
into directly
enforceable
claims (tax credits)
against the
Greek State,
provided that
the Bank’s
after tax accounting
result for
the period
is a loss.
This legislative
provision
enabled the
Greek credit
institutions, including
the
Bank, not
to deduct
the
eligible DTAs
from
CET1 capital
but recognise
them
as a
100% weighted
asset, with
a positive
effect on the
capital position.
A potential
change in
the
regulatory
treatment
of eligible
DTAs
as tax
credits
may have
an adverse
effect
in the
Group’s
capital position.
As
at
31
December
2024,
the
Bank’s
eligible
DTAs
for
conversion
to
tax
credits
(DTC)
amounted
to
€3,022m
(Dec.2023:
€3,212m), standing at 36% of CET 1 capital as of 31 December 2024 (note 4 and 13 to the consolidated
financial statements).
In line with the
Bank's initiative
to enhance the
quality of its regulatory
capital, the
amortisation of DTC
will be accelerated
for regulatory purposes starting from
2025, aiming at its elimination by 2033.
2024 Cyber Resilience Stress Test
During the first half of
2024 ECB conducted a
cyber resilience stress test on 109 directly supervised banks,
including Eurobank.
The
aim of
the
exercise
was to
assess how
banks respond
to and
recover
from
a cyberattack,
rather
than
their
ability to
prevent
it.
In
particular,
under
the
stress
test
scenario,
the
cyberattack
succeeds
in
disrupting
banks’
daily
business
operations. Banks then
tested their response and recovery
measures, including the activation
of emergency procedures
and
contingency plans and the restoration
of normal operations. ECB assessed the
extent to which banks can cope under such a
scenario.
This
stress
test exercise
does not
have
an impact
on capital
through
the
Pillar 2
guidance
(P2G), which
is a
bank-specific
capital
recommendation
on
top
of
the
binding
capital
requirements.
The
results
of
the
exercise
feeds
into
the
2024
Supervisory
Review
and
Evaluation
Process
(SREP)
performed
by
the
ECB.
Overall,
Eurobank
demonstrated
a
very
good
performance in the
exercise.
3
The ‘Overall
capital requirement (OCR) is the sum of the total SREP capital requirement (TSCR) and the combined buffer requirement
(CBR).
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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2025 EU - wide stress test
The EU-wide
stress test exercise
is carried
out on a sample of banks
covering broadly
75% of the
banking sector in the
euro
area, each non-euro area EU Member
State and Norway, as expressed in terms of total
consolidated assets as of end 2023.
To be included in the
sample, banks have to have a minimum of EUR 30 bn total assets.
As per the 2025 EU-Wide Stress Test
Methodological Note (published on 11 November
2024, footnote 92), Eurobank
Ergasias
Services
and
Holdings
S.A.
has
been
excluded
from
the
sample
of
the
EU-wide
stress
test
exercise
because
of
a
major
acquisition (Hellenic Bank).
Initiation of the merger
process between
Eurobank Ergasias
Services and Holdings S.A. and Eurobank
S.A
On 18 December 2024, the Board of Directors of Eurobank Holdings
decided the initiation of the merger
process of Eurobank
Holdings with
the
Bank through
absorption of
the
former
by the
latter,
in order
that operational
efficiencies
and a
leaner
group structure
be achieved.
The merger
is not expected
to have
any material
effect
on the
Group’s
financial position
and
will be completed subject to all necessary by Law approvals
(note 23.3 to the consolidated financial statements).
International Operations
The Group has a significant presence in three countries apart from Greece. In
Cyprus, Eurobank Cyprus Ltd (Eurobank Cyprus)
and Hellenic
Bank Public
Company Ltd (Hellenic
Bank) (see
below) operate
in total
a network
of 71
branches,
business and
private banking centres. Specifically, Eurobank Cyprus has five main pillars of business namely, Wealth
& Asset Management,
Corporate &
Investment Banking,
International Business
Banking, Affluent Banking
and Global Markets,
while Hellenic Bank
group provides a wide range of banking and financial services, which include financing, investment, insurance, custodian and
factoring
services.
In
Luxembourg,
Eurobank
Private
Bank
Luxembourg
S.A.
in
parallel
to
its
operations
in
Luxembourg,
operates
a branch
in London
and in
Athens,
and offers
products
and services
in Private
Banking, Wealth
Management
&
Investment Fund Services, as well
as selected Corporate Banking services. In Bulgaria, Eurobank
Bulgaria AD (Postbank), is a
fully fledged multi
service bank,
holding strong
positions in retail
and wholesale banking,
offering
a wide range
of products
and services, through a network
of 200 branches and business centres.
The Company’s subsidiaries operate
with transparency,
build credibility, and apply modern corporate
governance practices.
A customer centric approach has been
adopted and they are constantly
evolving and adapting to a
demanding environment
and aiming at a sustainable development.
International
activities
are
on
a
Transformation
orbit
for
advancing
the
technological
capabilities
with
state-of-the-art
systems and implementation
of cutting-edge digital services,
aiming to meet the
demanding needs of our clients
and excel
customer experience.
International activities are a core
competitive advantage for the Group, with significant
contribution to its
results. Their vision
and strategy
ensure
responsiveness
to challenges,
growth
and profitability
while
promoting
sustainable
prosperity
in the
local communities, creating value for their
clients, employees, shareholders,
and the society at large. Furthermore,
the Group
is reviewing the
potential of expanding to new markets, aiming to boost business
growth via attracting
new clients.
Hellenic Bank Public Company Ltd, Cyprus (“Hellenic Bank”)
Hellenic
Bank Public
Company Ltd
(“Hellenic
Bank”) a
financial
institution
based
in Cyprus
and listed
in the
Cyprus
Stock
Exchange was accounted for as a Group’s associate under the
equity method from April 2023 until 30 June 2024 (note 24 to
the
consolidated
financial
statements).
As
a result
of the
agreements
the
Bank
had entered
into with
certain
of Hellenic
Bank’s
shareholders
since
August
2023,
on
4
June
2024,
the
Bank
announced
that,
following
the
receipt
of
the
relevant
regulatory
approvals,
acquired
an additional
26.1%
holding
in Hellenic
Bank (“Transaction”)
for
a total
consideration
of €
275.7m.
Following
the
aforementioned
Transaction,
pursuant to
the
Takeover
Bids Law
of 2007
of the
Republic of
Cyprus,
L.41(I)/2007 as amended
(“Law”), the
Bank also announced
the submission
of a Mandatory
Takeover
Bid (“Takeover
Bid”) to
all
shareholders
of
Hellenic
Bank
for
the
acquisition
of
up
to
100%
of
the
issued
share
capital
of
Hellenic
Bank.
The
consideration
offered
by the Bank was €2.56
per share, paid in cash
to all the shareholders
who would accept the
Takeover
Bid during the period
from 1 July until 30 July 2024.
Furthermore, within
June 2024 the
Bank proceeded with
the acquisition
of an additional 0.18% holding in Hellenic
Bank, for a total
consideration of € 2m, i.e at
a price of €
2.56 per share. Accordingly,
as of 30 June 2024 the Bank’s participation percentage
in Hellenic Bank reached 55.48%.
Despite being the
holder of
over
50% of Hellenic
Bank’s shares, until
the expiration
of the
Takeover
Bid acceptance
period,
and pursuant to the Law, Eurobank
as the offeror,
its nominees and persons acting in concert with it could not be appointed
to the
Board
of Directors
of Hellenic
Bank, nor
they
could exercise,
or procure
the
exercise
of,
the
votes
attaching to
any
shares they held in Hellenic Bank. In addition, during the
period when they
became aware that a bid was imminent and until
expiration
of
the
Takeover
Bid
acceptance
period,
the
Board
of
Directors
of
Hellenic
Bank
could
not
without
prior
authorization
of the
general
meeting of
shareholders,
take any
action which
could result
in the
frustration
of the
Takeover
Bid.
On 30 July
2024, the
acceptance period
for the
Takeover
Bid expired, therefore
the restrictions
imposed by the
Law on the
Bank’s ability to exercise
its voting rights
no longer applied,
and Eurobank
since then
has been able
to exercise
its rights in
full. Based on the above and considering the relevant provisions of the Cyprus’ legal framework including the Companies Law
Cap. 113, and Hellenic Bank’s articles of association in relation to the
exercise of shareholders’
rights, including the timing for
convening a general
meeting of the shareholders,
it was assessed that the Group acquired
control over
Hellenic Bank group
within July. Accordingly,
Hellenic Bank and its
subsidiaries were included in the Company’s consolidated financial statements
from the
beginning of
the
third quarter
of 2024
using the
most recent
available published
information.
On 7
August 2024,
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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the Bank
announced that
after the
final review
of the
Acceptance and
Transfer
Forms, the
total percentage
of acceptance
of the
Takeover
Bid reached
0.481%,
giving Eurobank
total participation
of 55.962%
in the
issued share
capital of
Hellenic
Bank.
Furthermore,
in
November
2024,
the
Bank
announced
that
it
has
entered
into
share
purchase
agreements
with
certain
shareholders
of the
Hellenic Bank,
pursuant to
which, it
has agreed
to acquire
an additional
total holding
of 37.51%
in the
entity
for
a
total
consideration
of
ca.
€
750m,
corresponding
to
€
4.843
per
share.
As
of
31
December
2024,
the
above
transactions
were
subject
to
regulatory
approvals
and
upon
their
completion,
Eurobank’s
total
holding
in
Hellenic
Bank
reaches 93.47%.
Moreover,
in accordance
with
the
provisions
of the
Takeover
Bids Law
of 2007
in Cyprus
(“Law”),
the
Bank, following
the
completion
of
the
above-mentioned
transactions
has
the
obligation
to
proceed
to
a
tender
offer
for
the
remaining
outstanding shares
of Hellenic Bank
for at
least the
same price
i.e. € 4.843
per share,
whereas pursuant
to Article 36
of the
same law
it is able,
after completion
of the
said tender
offer
and given that
it will hold
more than
90% votes,
to require
all
the
holders
of the
remaining
securities to
sell those
securities. On
those grounds,
the
Bank announced
in November
2024
that it will exercise
its squeeze-out right to acquire any outstanding shares
of Hellenic Bank and take all necessary
steps for
the delisting of Hellenic Bank's shares from
the Cyprus Stock Exchange.
More recently,
on 11
February
2025, the
Bank announced
that following
the
receipt
of the
relevant
regulatory
approvals,
it
completed the acquisition of the additional holding of 37.51%
in Hellenic Bank, as per the aforementioned
agreements of the
Bank with certain of Hellenic Bank’s. shareholders.
Following that
and pursuant to the provisions
of the Takeover
Bids Law in
Cyprus, the Bank also announced the submission of a Mandatory Takeover
Bid for the acquisition of up to 100% of the issued
share capital of Hellenic Bank (“Takeover
Bid”). Further to the
above, on 6 March 2025 the
Bank announced that on 5 March
2025 the
Cyprus Securities and
Exchange Commission
(the “CySEC”)
approved
the Takeover
Bid Document
and authorised
its publication. Pursuant
to the Takeover
Bid Document, the
consideration
offered
to the shareholders
of Hellenic Bank who
will accept the
Takeover
Bid is € 4.843 per
share paid in cash.
The acceptance
period of the
Takeover
Bid commences on
11
March 2025 and ends on 9
th
April 2025.
Detailed information in relation to Hellenic Bank
acquisition is provided in note 23.2
to the consolidated financial statements.
Risk management
The
Group
acknowledges
that
taking risks
is an
integral
part of
its operations
in order
to achieve
its business
objectives.
Therefore,
the Group’s
management sets adequate
mechanisms to identify
those risks at
an early stage and
assesses their
potential impact on the achievement
of these objectives.
Due
to
the
fact
that
economic,
industry,
regulatory
and
operating
conditions
will
continue
to
change,
risk
management
mechanisms are
set in
a manner
that enable
the Group
to identify and
deal with
the risks
associated with
those changes.
The Group’s
structure, internal
processes and
existing control
mechanisms ensure
both the
independence principle
and the
exercise of sufficient supervision.
The Group's Management
considers effective
risk management as a top priority, as well
as a major competitive advantage,
for
the
organization.
As
such,
the
Group
has
allocated
significant
resources
for
upgrading
and
maintaining
its
policies,
methods and
infrastructure
up to date,
in order
to ensure
compliance with
the requirements
of the
European Central
Bank
(ECB)
and
of
the
Single
Resolution
Board
(SRB),
the
guidelines
of
the
European
Banking
Authority
(EBA)
and
the
Basel
Committee
for
Banking
Supervision
as
well
as
the
best
international
banking
practices.
The
Group
implements
a
well-
structured credit
approval process,
independent credit reviews
and effective
risk management policies
for all
material risks
it
is
exposed
to,
both
in
Greece
and
in
each
country
of
its
international
operations.
The
risk
management
policies
implemented by the Group
are reviewed
on a regular basis.
Risk
culture
is
a
core
element
of
the
organisation.
Risk
management
function
provides
the
framework,
procedures
and
guidance to enable all
employees to proactively
identify, manage
and monitor the
risks in their
own areas and improve
the
control and co-ordination of risk
taking across their business. Ongoing
education, communication and awareness takes place
via dedicated
learning programs,
monthly meetings,
sharing of
best practices
and other
initiatives.
The
Group
has also
a
policy in place to address any risks associated with the
introduction, significant modifications
and periodic monitoring of its
products and services.
The
amount of
risk which
the
Group
is willing
to assume
in the
pursuit of
its strategic
objectives
is articulated
via a
set of
quantitative
and
qualitative
statements
for
risks
assessed
as
material,
that
are
described
in
the
Group’s
Risk
Appetite
Framework.
The objectives are to support the
Group’s business growth,
balance a strong capital position with higher
returns
on equity and to ensure
the Group’s
adherence
to regulatory requirements.
The Risk Appetite,
that is clearly communicated
throughout
the
Group
determines
risk culture
and forms
the
basis on
which risk
policies
and risk
limits are
established
at
Group and regional level. Aiming to identify relevant and material
risks the Bank maintains a well-defined Risk Identification
and Materiality
Assessment (RIMA)
Framework.
The
identification and
the assessment
of all risks
is the
cornerstone
for the
effective
Risk Management. The
Group aiming to ensure
a collective view
on the risks linked
to the execution of
its strategy,
acknowledges the new
developments at an early stage and assesses the
potential impact.
The
Board Risk
Committee (BRC)
is a
committee of
the Board
of Directors
(BoD) and
its task
is to advise
and support
the
BoD regarding
the monitoring of
Group’s
overall
actual and future
risk appetite and strategy,
taking into account all
types
of risks to
ensure that
they are
in line with
the business
strategy,
objectives, corporate
culture and values
of the
institution.
The BRC
assists the
BoD in overseeing
the implementation
of Group’s
risk strategy
and the
corresponding limits
set. It also
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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oversees the
implementation of the strategies
for capital and liquidity risk management as well as for
all material risks, such
as credit,
market, IRRBB,
sustainability risks and
non-financial risks
such as
operational,
reputational
conduct, legal,
cyber,
outsourcing,
in order
to assess
their
adequacy against
the
approved
risk appetite
limits. The
BRC consists
of five
(5) non-
executive directors,
meets at least 10
times per year
and reports to the
BoD on a quarterly
basis and on ad hoc instances
if
it is needed.
The Management
Risk Committee (MRC) is a management
committee established by the
Chief Executive Officer
(CEO) and
its main
responsibility
is to
oversee
the
risk management
framework
of the
Group.
As part
of its
responsibilities,
the
MRC
facilitates report
ing to the
BRC on the
range of risk-related
topics under its
purview,
including sustainability risks. The
MRC
proactively
supports
the
Group
Chief
Risk
Officer,
Chairman
of
the
MRC,
to
identify
material
risks,
in
addition
to
those
identified independently
by the
Group
CRO and
the
Group Risk
Management, and
to promptly
escalate
them
to the
BRC
and assists the Group CRO in ensuring that the necessary policies and procedures
are in place to prudently manage risk and
to comply with regulatory requirements.
The
Group’s
Risk Management
which is
headed by
the
Group Chief
Risk Officer
(GCRO), operates
independently from
the
business units and is
responsible for
the identification,
assessment, monitoring, measurement
and management of the
risks
that
the
Group
is exposed
to. It
comprises the
Group
Credit (GC),
the
Group
Credit Control
(GCC), the
Group
Credit Risk
Capital Adequacy Control
(GCRCAC), the
Group Market
and Counterparty
Risk (GMCR), the
Group Operational
and Non-
Financial
Risks
(GONFR),
the
Group
Model
Validation
and
Governance
(GMVG),
the
Group
Risk
Management
Strategy
Planning Operations
& Sustainability
Risk (GRMSPO&SR),
the
Supervisory
Relations
and Resolution
Planning (SRRP),
and
the Risk Analytics (RA) Units.
As part of its overall system of internal controls, Eurobank Ergasias Services
and Holdings S.A. has engaged in a
Service Level
Agreement (SLA) with Eurobank S.A.
(the banking subsidiary of
the Group) in order to
receive supporting and advisory
services
in all areas of risk management undertaken by
the Group.
The Group applies the
elements of the Three
Lines of Defense model for the
management of all types of risk. The Three
Lines
of Defense
Model
enhances
risk management
and
control
by
clarifying
roles
and responsibilities
within
the
organization.
Under the oversight
and direction of the Management
Body, the responsibilities
of each of these lines of defense are:
Line 1 - Own and manage
risk and controls.
The front
line business and operations
are accountable for
this responsibility as
they own the
rewards and are the
primary risk generators,
Line 2
- Monitor
risk and
controls
in support
of Executive
Management,
providing
oversight,
challenge, advice
and group-
wide direction. These
mainly include the Risk and Compliance Units,
Line 3
- Provide
independent assurance
to the
Board and
Executive
Management concerning
the
effectiveness
of risk
and
control management. This
refers to Internal
Audit.
Furthermore,
the Group
is in the process
of aligning Hellenic Bank risk management
policies and practices
with those of the
Group across key
risk types, following the
acquisition of control in the
third quarter of 2024 and in view of the
completion of
the Take
Over Bid process to acquire 100% of Hellenic Bank’s
shares. This includes harmonizing key risk policies, standardizing
regulatory as well as internal risk reporting,
and aligning risk methodologies.
The most important types of risk that
are addressed by the
risk management functions of the
Group are:
Credit Risk
Credit risk
is the
risk that
a counterparty
will be
unable to
fulfil its
payment obligations
in full
when due.
Credit risk
is also
related with
country risk and settlement
risk. Credit risk
arises principally from
the wholesale
and retail lending
activities of
the
Group,
as well
as from
credit enhancements
provided,
such as
financial guarantees
and letters
of credit.
The
Group is
also exposed to
credit risk
arising from
other
activities such as
investments
in debt securities,
trading, capital
markets and
settlement activities. Taking into account that credit risk
is the primary risk the
Group is exposed to,
it is very closely managed
and monitored by specialised risk units, reporting to the
GCRO.
The
credit review
and approval
processes
are centralized
both in
Greece
and in the
International
operations
following
the
“four-eyes”
principle and
specific
guidelines
stipulated
in the
Credit
Policy
Manual and
the
Risk Appetite
Framework.
The
segregation
of
duties
ensures
independence
among
executives
responsible
for
the
customer
relationship,
the
approval
process
and
the
loan
disbursement,
as
well
as
monitoring
of
the
loan
during
its
lifecycle.
The
credit
approval
process
in
Corporate
Banking is
centralized
through
the
establishment of
Credit
Committees with
escalating
Credit
Approval
Levels,
which assess and limit to the extent possible
the corporate credit risk. Rating models are used in order to calculate the credit
rating
of
corporate
customers,
reflecting
the
underlying
credit
risk.
The
most
significant
ones
are
the
MRA
(Moody’s
Risk
Analyst)
applied
for
companies
-mostly-
with
industrial
and
commercial
activity and
the
slotting
rating
models,
used
for
specialised lending portfolios (shipping, real estate and
project finance) with ring-fenced transactions. Credit risk assessment
is performed by Group Credit (GC), which assesses the credit requests submitted by the Business Units,
a procedure including
the
evaluation
of
the
operational
and
financial
profile
of
the
customer,
the
validation
of
the
borrower’s
rating
and
the
identification of potential risk factors
for the Bank.
The credit
review and
approval
processes
for loans
to Small Businesses
(turnover
up to €5m)
are also centralised
following
specific guidelines and applying the ‘four-eyes’
principle. The assessment is primarily based on the analysis of the borrower's
operational
characteristics and financial
position. The
same applies for
Individual Banking (consumer
and mortgage loans),
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where the credit risk assessment
is based on criteria related to the characteristics of the retail
portfolio, such as the financial
position of the borrower,
the payment behaviour,
the existence of real estate property and the type and quality of securities.
The ongoing
monitoring of the
portfolio
quality and of
any deviations
that may
arise, lead to
an immediate
adjustment of
the credit policy and procedures, when deemed necessary. The
quality of the Group’s loan portfolios (business, consumer and
mortgage
in
Greece
and
abroad)
is
monitored
and
assessed
by
the
Group
Credit
Control
(GCC)
via
field,
desktop
and
thematic
reviews
in order
to timely
identify emerging
risks, vulnerabilities,
compliance to
credit policies
and consistency
in
underwriting. Furthermore,
the GCC assumes
oversight and supervisory
responsibilities for proper
operation of
credit rating
and impairment
models.
Moreover,
GCC regularly
reviews
the
adequacy of
provisions
of all
loan portfolios.
The
Unit also
formulates Group’s credit policies, reviews policies developed
by other units and participates in the development of new loan
products. Finally, it monitors regulatory developments, emerging trends and best
practices proposing relevant policy updates
or product enhancements
when necessary.
GCC operates
independently from all the
business units of the
Bank and reports
directly to the GCRO.
The
measurement,
monitoring and
periodic
reporting of
the
Group’s
exposure to
counterparty
risk (issuer
risk and
market
driven
counterparty
risk),
which
is
the
risk
of loss
due
to
the
customer’s
failure
to
meet
its
contractual
obligations
in
the
context of treasury positions, such as debt securities, derivatives, repos, reverse repos, interbank placings, etc. are performed
by the
Group Market
and Counterparty Risk
(GMCR). The
Group sets
limits on the
level of
counterparty risk
that are
based
mainly on the
counterparty’s credit
rating, as
provided by
international rating
agencies, the
product type
and the
maturity
of the transaction
(e.g. control
limits on net open derivative
positions by both
amount and term, sovereign
bonds exposure,
corporate securities, asset backed securities,
etc.). GMCR maintains and updates the limits’ monitoring systems and ensures
the correctness and compliance of all financial institutions limits
with the Bank’s policies as approved by the Group’s relevant
bodies. The
utilization
of the
abovementioned
limits, any
excess
of them,
as well
as the
aggregate
exposure
per
Group’s
entity,
counterparty
and
product
type
are
monitored
by
GMCR
on
a
daily
basis.
The
Group
from
2021
applies
the
new
regulatory
framework
for the
counterparty risk
from derivatives
Standardised Approach
for
measuring counterparty
credit
risk (SA-CCR).
Market Risk
The
Group
has
exposure
to
market
risk,
which
is
the
risk
of
potential
financial
loss
due
to
an
adverse
change
in
market
variables. Changes in interest rates,
foreign exchange rates,
credit spreads, equity prices and other
relevant factors, such
as
the implied volatilities, can affect the Group’s
income or the fair value of its financial
instruments. The market risks, the Group
is exposed
to, are
monitored, controlled
and estimated
by
GMCR. GMCR
is responsible
for
the
measurement,
monitoring,
control
and
reporting
of
the
exposure
on
market
risks
including
the
Interest
Rate
Risk and
the
Credit
Spread
Risk
in the
Banking Book (IRRBB/CSRBB)
of the Group.
The GMCR
reports to the
GCRO. The
exposures and the
utilisation of the
limits
are reported to the Board
Risk Committee and to the BoD.
Market
risk
in
Greece
and
International
Subsidiaries
is
managed
and
monitored
mainly
using
Value
at
Risk
(VaR)
methodology,
sensitivity and
stress test
analysis. VaR
is a
methodology
used in
measuring financial
risk by
estimating the
potential negative
change in the
market value
of a portfolio
at a given
confidence level
and over
a specified time
horizon.
The VaR
that the
Group measures
is an estimate based upon
a 99% confidence level
and a holding period
of 1 day and the
methodology
used
for
the
calculation
is
Monte
Carlo
simulation
(full
re-pricing
of
the
positions
is
performed).
Since
VaR
constitutes an
integral
part
of the
Group's
market
risk control
regime,
VaR
limits have
been established
for
all portfolios
(trading and investment)
measured at
fair value
and actual exposure is
monitored daily by
management. However,
the use
of this
approach
does not
prevent
losses outside
of these
limits in
the event
of extraordinary
market movements.
For
that
reason, the Group
uses additional monitoring metrics such as: Stressed VaR,
Expected Shortfall and Stress Tests.
Finally, the
Group already monitors the
impact from the
new regulatory framework
for market risk (Fundamental
Review of the Trading
Book-FRTB) and monitors the
evolution
of the relevant
capital charges until
its official application
(2026) based on a
set of
established systems and procedures.
Interest Rate Risk in the Banking Book
(IRRBB)
The IRRBB is defined as
the current and the prospective risk of a
negative impact to the institution’s economic value of
equity,
or to the institution’s net interest income, taking
market value changes into
account as appropriate, which arise
from adverse
movements in interest
rates affecting
interest rate sensitive
instruments, including gap risk, basis risk and option risk.
GMCR
is
the
unit
responsible
for
the
monitoring,
control,
reporting
and
estimation
of
IRRBB
on
a
group
level.
Both
the
Economic Value of Equity (EVE) and NII sensitivity to a number of stresses on interest rates are
estimated on a periodic basis
and
are
compared
with
the
approved
BoD
Risk
Appetite
Statements
(RAS)
thresholds.
IRRBB
analysis
currently
uses
the
established Asset
and Liability
Management (ALM)
tools within
each entity.
The
plan is
to expand
the
use of
the
ALM tool
applied on
a solo
level (in
Greece) for
the future
Group-level
IRRBB analysis. The
CSRBB analysis is
conducted on
a Group
level by
a centralized
tool. Furthermore,
the Group
already applies a set
of extra
stress test analysis
for specific
parts of its
Banking
Book
for
the
assessment
to
the
exposure
on
Mark-to-Market
(MTM)
volatility
on
both
OCI
and
Amortised
Cost
portfolios of investment
securities and for the assessment of the
CSRBB (Credit Spread Risk in the Banking Book). The
policy
for
the
management
of
IRRBB
as
approved
by
BRC
and
BoD
provides
a
clear
description
of
the
methodologies,
the
governance, the
limits that are used for the
management of IRRBB & CSRBB.
Liquidity Risk
The Group
is exposed on a
daily basis to
liquidity risk due to
deposits withdrawals,
maturity of medium
or long term notes,
maturity of secured
or unsecured
funding (interbank
repos and money
market takings),
collateral
revaluation
as a result
of
market movements,
loan draw-downs
and forfeiture
of guarantees. The
Board Risk Committee and the
BoD sets in the RAS
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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Framework
the liquidity risk thresholds
to ensure that sufficient
funds are available to meet
all of these contingencies
under
any scenario.
The Group
monitors on a
continuous basis the
level of
liquidity risk using
regulatory and
internal metrics
and
methodologies (Liquidity
Coverage
Ratio/LCR,
Net Stable Funding Ratio/NSFR,
Liquidity Buffer
analysis, cash flow
analysis,
short-term and medium-term stress test etc.).
BRC’s
role
is
to
approve
all
strategic
liquidity
risk
management
decisions
and
monitor
the
quantitative
and
qualitative
aspects
of
liquidity
risk.
Group
Assets and
Liabilities
Committee
(G-ALCO)
has
the
mandate
to
form
and
implement
the
liquidity policies and
guidelines in conformity
with Group's
risk appetite, and to review
at least monthly
the overall
liquidity
position
of
the
Group.
Group
Treasury
is
responsible
for
the
implementation
of
the
Group's
liquidity
strategy,
the
daily
management of the Group’s
liquidity and for the preparation
and monitoring of the Group’s liquidity budget, while GMCR is
responsible for measuring,
control, monitoring and reporting the
liquidity of the Group to the
G-ALCO, BRC, BoD and to the
regulatory bodies.
Operational & Non-Financial Risks (NFRs)
Non-Financial Risks include operational
risks as well as
specific additional risks such as
business, strategic
and reputational
risk. Operational
risk is defined
by Basel III
as the
risk of loss
resulting from
inadequate or
failed internal
processes, people
and systems or from external events.
The
Group is
gradually
implementing the
Risk Appetite
Framework
to cover
NFRs, which sets
out the
mechanisms through
which the
Group
establishes
its risk
appetite and
ensures
that
its
risk profile
remains
within
that
appetite
to bear
risk in
relation to the internal
and external events as well
as other constraints.
Governance
responsibility
for
Non-Financial
Risks
management
stems
from
the
Board
of
Directors
(BoD),
through
the
Executive
Board
and
Senior
Management,
and
passes
down
to
the
Heads
and
staff
of
every
business
unit.
The
BoD
establishes the
mechanisms
used by
the
Group
to manage
NFRs, sets
the
tone and
expectations,
and delegates
relevant
responsibilities. The
Board Risk
Committee and the
Audit Committee monitor
the NFR
levels and
profile, including
relevant
events.
NFR management comprises
risk identification,
assessment, and mitigation
while employing independent oversight
and an
effective risk culture to ensure
that business objectives are met
within the NFR appetite
that is reflected in
the Group’s Policies
and Guidelines.
The Heads of each business unit (the risk owners)
are primarily responsible for the
day-to-day management of NFRs and the
adherence to relevant controls.
Each Business Unit appoints an Operational Risk Partner (OpRisk Partner) or an Operational
Risk Management Unit (ORMU) depending on the size of the business
unit, which is responsible for coordinating the
internal
risk management efforts
of the business unit while forming
the link between Line 1 and Line 2.
Eurobank has
adopted a Themes
-based risk taxonomy,
developed
along the lines
of the
industry reference
taxonomies, for
risk management
and reporting
purposes. Each
Risk Themes
is overseen
by Theme
Coordinators
(Second Line
of Defense
Units). The Risk Themes
which fall within the
scope of NFR are the following:
Group Operational
and Non-Financial Risks Unit (GONFR) has been positioned as an overlaying
framework
coordinator for
all
Non-Financial
Risks
(NFRs).
GONFR’s
overlaying
responsibilities
aim
to
harmonize
the
Second
Line
of
Defense
Units’
activities across
the
Group
and to
holistically
ensure
the effective,
consistent application
of the
Risk Appetite
Framework.
The 2LoD Units maintain their
responsibilities for specific Risk Theme(s)
owned.
Sustainability risks
Sustainability risks
are neither
new nor
stand-alone risks,
rather
they
are transverse
risks, manifesting
through
existing risk
types. As sustainability risks
interact with
other
risks and result in
direct distributional impacts
and indirect macroeconomic
impacts, the Group understands that careful
consideration of the cross
-cutting nature thereof is necessary in order to ensure
the optimal implementation
of adaptation activities.
Specifically,
sustainability
risks
are
defined
as
potential
losses
arising
from
any
negative
financial
impact
for
the
Group,
stemming
from
current
or
prospective
impacts
of
any
climate-related
&
environmental,
social
or
governance
event(s)
on
Group’s counterparties
or invested assets.
Definitions of sustainability risks include the following:
a)
Climate-Related and Environmental
risks: Climate-related and environmental
risks are defined as the
risks deriving
from potential loss or
negative impact to the Group, including
loss/ damage to
physical assets, disruption
of business
or
system
failures,
transition
expenditures
and
reputational
effects
from
the
adverse
consequences
of
climate
change and environmental degradation.
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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b)
Social risk: Social
risk refers
to potential losses
arising from
any negative
financial impact on
the Group
stemming
from the current or prospective impacts of
social factors (such as
human rights
violation, income inequality, customer
safety & protection and
consumers’ changing preferences)
on the Group’s
counterparties or invested assets.
c)
Governance risk: Governance
risk refers to potential losses arising from any negative financial impact on the
Group
stemming
from
the
current
or
prospective
impacts
of
governance
factors
(such
as
anti-financial
crime,
non-
compliance with policies or regulations and governance practices) on the Group’s
counterparties or invested assets.
The Group is adopting a strategic approach
towards sustainability, climate change risk identification and risk management,
signifying the great importance that is given in the risks and opportunities
arising from the transitioning to a low-carbon and
more circular economy.
In this context, the
Bank has approved
and implements its Financed
Impact Strategy,
which focuses
on:
a)
Clients’
engagement
and
awareness
to
adapt
their
business
so
as
to
address
climate
change
challenges
and
opportunities,
b)
Actions for supporting clients in their
transition efforts
towards a more sustainable economic environment,
c)
Enablers and tools, such as frameworks
and products, to underpin sustainable financing,
d)
Assessment
and
management
of
sustainability
related
risks
within
its
loan
and
investment
portfolios,
including
assessing exposure to transition and physical
risks linked to climate change.
To facilitate
the classification
of sustainable/green financing opportunities in a structural manner,
the Group has developed
its Sustainable Finance Framework
(SFF). Through
its SFF,
the Group
is able to classify sustainable
lending solutions offered
to
its
clients,
specifying
the
applied
classification
approach
and
the
activities
defined
as
eligible
to
access
sustainable
financing (eligible green and social assets). Moreover, the Group
maintains a Sustainable Investment Framework
(SIF), which
outlines the Group’s
various sustainable investment
approaches/
strategies based on
criteria observed
as per international
market practices,
the process
for the
selection of eligible investments,
as well as the
monitoring frequency applicable to the
sustainable portfolio.
Furthermore,
the Group
has updated its
Sustainability Governance
structure by
introducing and defining
specific roles
and
responsibilities
in
order
to
support
the
roll-out
of
the
Sustainability
Strategy
and
the
integration
of
sustainability
risks,
through the involvement
of various key stakeholders (i.e. Business & Risk Units, Committees, etc.). The Group
applies a model
of
defined
roles
and
responsibilities
regarding
the
management
of
Sustainability
risks
and
aspects
across
the
3
Lines
of
Defense.
In this context and taking into
account the significant
impact of sustainability risks both
on financial institutions and on
the
global economy,
the
Group developed
and approved
its Sustainability
Risk Management
Policy
which aims
at fostering
a
holistic understanding of
the effects of sustainability risks
on its business
model, as well
as support
decision-making regarding
these
matters
and
provide
a
robust
governance
under
its
Risk
Management
Framework.
The
purpose
of
the
Policy
is
to
provide
an
overview
and
a
common
understanding
of
Group’s
main
governance
arrangements,
as
well
as
roles
&
responsibilities undertaken
by the
Group Sustainability
Risk (GSR),
in the
context of the
Group’s
overall
Sustainability risks
management activities.
The
Group
Sustainability Risk
(GSR) has
the
overall
responsibility for
overseeing,
monitoring, and
managing sustainability
risks.
More
specifically,
it
prepares
and
maintains
the
Bank’s
Sustainability
Risk
Management
Policy,
as
well
as
relevant
policies,
processes
and methodologies
(e.g.
ESG Risk
Assessment,
Climate
Risk Scorecard,
exclusion
lists) in
collaboration
with the Group Sustainability Unit, Business & Risk Units. In addition, GSR leads the development and implementation of the
Sustainability
risk
related
framework,
as
well
as
relevant
policies
and
processes
(e.g.,
Sustainability
Risk
Management
Framework,
Climate Risk Stress
Test
Framework
documents) across
the Group,
in coordination
with other
involved
units, as
well as the development and update of the Sustainable Finance Frameworks. Moreover,
it monitors and reports to
the Group
Senior
Sustainability
Officer
(GSSO)
the
progress
of
the
implementation
of
the
developed
Climate
Risk
action
plan
and
reports
to the
Board
for
Sustainability Risk
matters.
The
GSR supports,
reviews
and challenges
the
involved
stakeholders,
across
the
Group,
regarding
the
setting
of
the
Net
Zero
targets
and
of
the
Financed
Impact
Strategy,
through
the
identification
of
material
Sustainability
risk
related
areas.
The
GSR
also
leads
the
2nd
line
of
defense
independent
sustainable lending re-assessment process (i.e. provides opinion on sustainable financing regarding the CIB Portfolio, as part
of a
bespoke
process
and the
characterization
of products
of the
Retail Portfolio
as sustainable),
against the
Sustainable
Finance criteria (as
per pre-determined thresholds). Furthermore, GSR develops and maintains
the Climate Risk Stress
Testing
(CRST)
Framework,
as
well
as
scenario
analysis
and
stress
testing
methodologies,
and
coordinates
the
performance
of
sustainability risk scenario analysis and relevant stress test exercises
at Group level. In line with good practices
identified by
the ECB, the Financed Impact Strategy of the Bank focuses on sustainable financing targets / commitments. In particular, the
Bank identified total portfolio
and sectoral targets with regards
to financing the green transition
of its clients.
Eurobank has set the
following targets
for sustainable finance corporate
disbursements in the following
years:
Portfolio
targets
New disbursements
•
€2bn in new green disbursements to businesses by
2025
•
20% of
the
annual new
Corporate
& Investment
Banking (CIB)
portfolio
disbursements
to be
classified as
Green/
Environmentally sustainable
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Green stock/ Exposure evolution
•
20% stock of green exposures by 2027 for
the CIB portfolio
Recovery and Resilience
Facility (RRF)
•
Mobilize €2.25bn total green RRF funds in the Greek
economy by 2026
Sectoral targets
Renewable energy
•
35% of new disbursements in the energy
sector will be directed to Renewable Energy Sources
(RES) financing
Green buildings
•
80% of new
disbursements related
to construction of
new buildings
(CIB portfolio)
to be allocated
with EPC A
and
above
•
20% of new disbursements related to
mortgage loans (excluding "My Home") to
be allocated with EPC B+ and
above
Furthermore,
Eurobank introduced
additional sustainable financing targets, enhancing its financed impact strategy:
Corporate and Investment
Banking green targets for
2024
New exposure to high emitters
•
No new investments in fixed income
securities (excluding exposures in Sustainability/Green bonds) towards
the top
20 most carbon-intensive corporates
worldwide
Increase in Sustainability-Linked loans
•
Double annual disbursements of Sustainability-Linked loans
Retail banking target for 2024
Maintain the
same
growth
in absolute
terms for
Retail Banking
new
green
disbursements (or
more
than 50%
increase
vs.
2023).
Further information
on the Group’s
financial risk management objectives
and policies, including the
policy for hedging
each
major type of transaction for which hedge
accounting is used is set out in the notes 2, 5 and 19 to the consolidated financial
statements for the year ended 31 December
2024 and as regards sustainability risks is provided in the Group’s Sustainability
Statement as at 31 December 2024.
Non Performing Exposures (NPE)
management
The Bank
realizes the
NPE Strategy
Plan through
its implementation
by doValue
Greece for
the assigned
portfolio
and the
securitization transactions.
Troubled Assets Committee
The Troubled
Assets Committee (TAC)
is established according to the regulatory provisions
and its main purpose is to act as
an independent
body,
closely
monitoring
the
Bank’s
troubled
assets portfolio
and
the
execution
of its
NPE
Management
Strategy.
Remedial and Servicing Strategy
(RSS)
The Remedial
Servicing and Strategy
(RSS) is responsible:
a) for
the management
of the
non-performing
and early arrears
loans of the Bank, b) for structured transactions
which create capital (such as Synthetic SRT STS securitizations) and/or offer
credit protection
and c) for
cooperation
with the
other
units of Group Strategy
for other
transactions and initiatives.
RSS is
closely monitoring the overall
performance of the
NPE portfolio as well
as the relationship of the
Bank with doValue Greece.
Furthermore,
following
Eurobank’s
commitments
against
the
significant
risk
transfer
(SRT)
monitoring
regulatory
requirements
pertaining
to
Bank’s
concluded
transactions,
RSS
has
a
pivotal
role
in
ensuring
that
relevant
process
is
performed
smoothly
and
in
a
timely
manner
and
that
any
shortcomings
are
appropriately
resolved,
while
providing
any
required clarifications
or additional material
required by the
regulatory authorities.
The Head of RSS
reports to the General
Manager of Group Strategy.
In this context, RSS has been assigned inter alia with the
following responsibilities:
a)
Structure new transactions and perform the execution of any
transaction processes, by also establishing negotiation
of Commercial / Legal Terms
as well monitoring of these transactions,
b)
Develop and actively monitor the
NPE targets and reduction plan,
c)
Set
the
strategic
principles,
priorities,
policy
framework
and
KPIs
under
which
doValue
Greece
is
servicing
the
portfolio,
d)
Closely monitor
the
execution of
the
approved
strategies,
as well
as all
contractual
provisions
under
the
relevant
contractual agreements
for Eurobank’s
portfolio
assigned to
doValue
Greece including
the securitized
portfolio
of
ERB Recovery DAC,
e)
Monitoring of
the performance
of the
senior notes
of the
securitizations in
collaboration
with Group
Risk so
as to
ensure compliance to significant risk transfer
(SRT) and to the Hellenic Asset Protection
Scheme (HAPS),
f)
Budget and monitor the Bank’s expenses and revenues
associated with the assigned portfolio,
g)
Cooperate closely with
doValue Greece
on a daily basis in achieving the Group’s
objectives,
h)
Maintain supervisory dialogue.
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Project “Solar”
In the
context of its
NPE management
strategy,
the Group
has been
structuring an
NPE securitization
transaction
(project
‘Solar’), as part of a
joint initiative with
the other
Greek systemic banks (the
banks) since 2018.Out
of the notes to
be issued
by the SPV,
the Banks will hold 100% of the Senior notes as well as the 5% of the Mezzanine and Junior notes and will dispose
of the
remaining stake
of the
subordinated tranches
.
In June 2024,
the banks
submitted to the
Greek Ministry of
Finance a
joint application
for the
inclusion of the
senior notes to
be issued in the
Hellenic Asset Protection
Scheme. Since
June 2022,
the Group has classified the
underlying corporate loan
portfolio as held
for sale.
Other loans held
for sale (incl. Project “Leon”)
In December
2023, the
Bank, aiming to accelerate
further
its NPE reduction
plan, initiated the
sale process
of a mixed NPE
portfolio of total gross
book value ca. €400m, engaged in parallel in negotiations with potential investors.
Accordingly, as at
31 December 2023, the Bank
classified the aforementioned loan portfolio as held for sale. In
first half of
2024, the Bank revised
its NPE
sale target
and increased
the
aforementioned
perimeter
of NPE
loans by
ca. €240m,
which were
also classified
as
held-for-sale.
On 8 July 2024, the Group, through its special purpose financing vehicle ‘’LEON CAPITAL
FINANCE DAC’’ (SPV), issued senior,
mezzanine and junior notes of nominal amount of
ca. € 1.5bn, via the securitization of a mixed
NPE portfolio, which comprises
the
loans that
were
classified as
held for
sale at
30 June
2024 (project’s
‘’Leon’’ perimeter)
as well
as
written off
loans of
total principal
amount due
of ca.
€ 1.5bn
and gross
carrying
amount of
ca. €0.6bn
that complied
with the
requirements
of
Hellenic Asset
Protection
Scheme
law.
Further
to the
above,
on 13
September
2024, the
Group,
as the
holder
of the
notes
issued by
the
SPV,
proceeded
with the
disposal of
the
95% of
the
mezzanine and
junior tranches
to a
third party
investor.
Accordingly,
as
of
the
aforementioned
date,
the
Group
derecognized
the
underlying
loan
portfolio
and
recognized
the
retained notes
on its balance
sheet, i.e. 100%
of the senior
and 5% of the
mezzanine and junior
notes of Leon securitization,
at fair value.
Further information
is provided in note 20 to the
consolidated financial statements.
Macroeconomic Outlook and Risks
In
2024,
despite
the
challenging international
environment,
the
macroeconomic
backdrop
was
supportive
in
the
Group’s
three
core
markets.
In
particular,
the
economies
of
Greece,
Bulgaria
and
Cyprus
remained
in
expansionary
territory,
overperforming
most of their European Union (EU)
peers. According to the Hellenic
Statistical Authority (ELSTAT)
provisional
data, the real GDP of Greece expanded by
2.3% on an annual basis in the first nine months of 2024 –versus 0.5% in the euro
area (Eurostat)
–
driven by
household consumption
and the
buildup of inventories.
The average
annual inflation
rate based
on the Harmonized Index of Consumer Prices (HICP) decreased to 3.0% in 2024 from 4.2% in
2023, while the average monthly
unemployment rate declined to 10.1%
in 2024, from 11.1% in 2023, dropping to a 15-year low. In its Autumn Economic Forecasts
(November
2024), the
European
Commission
(EC) expects
real
GDP in
Greece
to grow
by
2.1%
in 2024
and 2.3%
in 2025
(2023: 2.3%). The
HICP growth
rate is
expected to decelerate
to 2.4% in
2025 and the
unemployment rate
to drop
to 9.8%,
respectively.
Growth
in Greece
as well
as in
Bulgaria and
Cyprus is
expected to
receive
a significant
boost from
EU-funded investment
projects and
reforms.
Greece shall
receive
€36bn (€18.2bn in grants
and €17.7bn
in loans) up
to 2026 through
the Recovery
and Resilience
Facility (RRF),
Next Generation
EU (NGEU)’s
largest instrument,
out of
which €18.2bn
(€8.6bn in
grants and
€9.6bn
in loans)
had been
disbursed by
the
EU as
of the
end 2024.
A further
€40bn is
due through
EU’s long-term
budget
(MFF), out of which €20.9bn
is to fund the National Strategic
Reference Frameworks
(ESPA 2021–2027).
On monetary
policy developments,
following
ten rounds
of interest
rate
hikes in
2022 and
in 2023
and on
the
back of
an
improved inflation outlook, the ECB implemented five interest rate cuts from June 2024 to January 2025, lowering its deposit
facility rate by
125 basis points in total.
On the fiscal
front, the
EC in its Autumn Economic Forecasts
expects a primary surplus of 2.9%
of GDP in 2024 and 2025, up
from
2.1%
of
GDP
in 2023.
The
gross
public
debt-to-GDP
ratio,
following
a
sizeable
increase
in
nominal
GDP
due
to
the
combination of
real GDP
growth
and inflation,
is expected
to decline
to 153.1%
in 2024 and
146.8% in
2025, from
163.9%
in
2023.
In
2024,
the
Greek
government
raised
€
9.55bn
from
the
international
financial
markets
through
the
Public
Debt
Management Agency (PDMA) by issuing two new
bonds (a 10-year bond at a yield of 3.478% in January and a 30-year bond
at a yield of 4.241% in
April), and re-opening eleven past issues with maturities of 5 and 10
years. At the end of 2024, the cash
reserves
of the Greek
government
stood close to €
33bn. Following
a series of sovereign
rating upgrades
in the second
half
of
2023,
the
Greek
government’s
long-term
debt
securities
were
considered
investment
grade
by
four
out
of
the
five
Eurosystem-approved
External Credit Assessment
Institutions (DBRS: BBB(low),
positive outlook, Fitch:
BBB-, stable outlook;
Scope: BBB,
stable outlook;
S&P: BBB-,
positive outlook),
and one
notch below
investment
grade by
the fifth
one, Moody’s
(Βa1, positive outlook) as of. 31 December
2024.
According to Bank of Greece (BoG) data, the
stock of credit to the non-financial private sector amounted to €113.2bn at the
end
of
2024,
up
from
€109.1bn
at
the
end
2023,
marking
a
gross
annual
increase
of
3.8%.
Adjusted
for
write-offs,
reclassifications
and foreign
exchange fluctuations,
the
annual growth
rate
of domestic
credit
to the
non-financial sector
stood at 8.3%. On the other
side of the ledger,
domestic non-financial private sector deposits were
up by 4.6% on an annual
basis, standing at €199.5bn
at the end of 2024 from
€190.7bn at the end of 2023.
On real estate market developments,
BoG
data
shows
that
residential
real
estate
prices
recorded
an annual
increase
of 9.2%
in the
first nine
months
of 2024,
and
commercial real
estate prices an annual increase of 7.8%
in the first half of 2024.
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS
12
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m = million
bn = billion
In Bulgaria, real GDP growth came
in at 2.2% on an annual basis in the first three quarters of 2024, slightly higher compared
to 2.1%
in the
same
period
of 2023.
Household consumption
and investment
were
the
key
growth
drivers,
with the
former
GDP component benefitted
from declining unemployment, significant increases in the minimum
wage (+19.6% since 1 January
2024),
as
well
as
in public
sector
wages
and
pensions,
and
rapid
credit
expansion
for
consumption
purposes.
The
rise
in
investment
came
from
inventories
accumulation,
as gross
fixed capital
formation
was almost
flat.
The
contribution
of net
exports
weakened,
as
exports
contracted,
and
imports
expanded.
Based
on
the
autumn
forecasts
by
the
EC
(November
2024), GDP
growth
in 2024
was projected
at 2.4%,
while for
2025 a
moderate
increase to
2.9%
is anticipated.
Disinflation
progressed
in 2024 at
a much faster
pace than
in 2023,
with the
latest available
inflation print
of December
at 2.1%
on an
annual basis,
which led
to an average
annual HICP inflation
in 2024
of 2.6%, down
from 8.6%
in 2023.
The
December print
brought Bulgaria
just 10 bps
away from
fulfilling the
only pending criterion
for eurozone
entry, i.e.
the one
concerning price
stability.
The
EC forecast
for
HICP inflation
stands at
2.3% for
2025 due
to persistent
services
inflation. On
the
fiscal front,
according to preliminary
data from
the Ministry
of Finance,
the cash-based
fiscal deficit stood
at 3% of
the projected
GDP
in 2024. The
Eurostat-defined deficit
was projected by
the EC at
2.6% for 2024,
up from 2% in 2023.
Household demand will
continue supporting
GDP growth
in 2025,
on the
back of
expected historically
low unemployment
at 4%,
and new,
smaller
than in previous
years, increases in the
minimum wage, public sector salaries
and pensions. Investment
financed by the
RRF
are expected to bolster
gross fixed capital formation.
The risks to the
economic outlook related
to political uncertainty
may
ease in 2025,
after successful
negotiations for
a new coalition
government
following
the October
2024 elections, that
took
power in mid-January 2025. In October, Fitch Ratings has re-affirmed Bulgaria’s long-term foreign and local currency ratings
at ‘BBB’, with a positive rating
outlook.
In Cyprus, according to the
real GDP data for
the first nine months
of 2024, the
annual GDP growth
accelerated
to 3.7%, up
from 2.6% in
the same
period of 2023.
Although exports of goods
fell 2.1%,
higher exports of
services by
9.4%,
supported by
a range
of sectors
according to
current
account balance
data (tourism,
Information
and Communication
Technology
(ICT)
activities, financial
services),
led to
a 7.7%
increase
in total
exports, making
them
central
to the
GDP increase
in the
said
period. Household consumption (+4.2%), was the second more significant growth
driver, on the
back of a tight labour market
(unemployment at a 15-year low
of 5%). According to EC’s autumn economic forecasts (November
2024), Cyprus is expected
to grow by 3.6% in
2024, up from 2.5%
in 2023, with GDP
expansion decelerating in 2025 to
2.8%. HICP inflation
was projected
at 2.2% in 2024 and
2.1% in 2025 (2023:3.9%). Investment
is set to keep benefitting from the RRF funding in the coming years,
whereas
easing financial
conditions are
expected to
provide
a further
stimulus. Household
consumption will
be boosted
in
the coming years by a further decline in unemployment, to 4.7% in 2025
on the back of reforms in the labor market in
previous
years,
but
also
from
a
further
recovery
in
household
purchasing
power
due
to
increases
in
nominal
wages
and
declining
inflation. Export
performance
is projected
to continue
benefitting from
growing
tourist receipts
and a
dynamic outlook
for
services, particularly
related to the
ICT,
but also the
real estate and
energy sectors.
Indicative
of these
prospects is
the rise
in the
number of
tourists to a
new all-time
high in the
January-November
2024 period,
though the
annual rate
of increase
slowed
down
to
5%
from
the
20.4%
seen
in
2023.
In
December
2024,
Fitch
Ratings
and
S&P
Global
upgraded
Cyprus’s
sovereign credit
to A- from BBB+, with a stable outlook, on economic and fiscal overperformance.
Regarding the
outlook for
the
next 12
months, the
major macroeconomic
risks and
uncertainties
in Greece
and our
region
are associated with: (a)
the geopolitical tensions caused primarily by
the war in Ukraine and
the fragile situation in the Middle
East, their
implications
regarding regional
and global
stability and
security,
and their
repercussions
on the
global and
the
European economy, (b) an interruption
or even a reversal
of the disinflationary trend observed
in the past 24 months and its
impact on
economic growth,
employment,
public finances,
household budgets,
firms’ production
costs, external
trade
and
banks’
asset
quality,
as
well
as
any
potential
social
and/or
political
ramifications
this
may
entail,
(c)
the
timeline
of
the
potential further
interest
rate
cuts by
the
ECB and
the
Federal
Reserve
Bank, as
persistence
on high
rates
for
longer
may
keep exerting pressure
on sovereign and private borrowing
costs and certain financial institutions’ balance
sheets, but early
rate cuts entail
the risk of a
rebound in inflation,
(d) the prospect
of Greece’s
and Bulgaria’s major trade
partners, primarily
the euro area, remaining stagnant or even facing a temporary downturn,
(e) the elevated political and economic uncertainty
stemming from the international and trade policy decisions of
the new administration in the United States, (f) the persistently
large current account deficit that seems to become once again a structural feature of the Greek economy, (g) the absorption
capacity of the NGEU and MFF
funds and the attraction of new investments in the countries of
presence, especially in Greece,
(h) the
effective
and timely
implementation
of the
reform
agenda required
to meet the
RRF milestones and
targets and
to
boost productivity,
competitiveness, and
resilience and
(i) the
exacerbation
of natural
disasters due
to the
climate change
and their effect
on GDP,
employment, fiscal balance and sustainable
development in the
long run.
Materialization of the
above risks would have
potentially adverse effects
on the fiscal planning of the Greek
government, as
it could
decelerate
the pace
of expected
growth
and on
the
liquidity,
asset quality,
solvency
and profitability
of the
Greek
banking sector.
In this context,
the Group’s
Management and
Board are
continuously monitoring the
developments
on the
macroeconomic, financial and geopolitical
fronts as well as the
evolution of
the Group’s
asset quality and liquidity KPIs and
have maintained
a high level
of readiness,
so as to
accommodate decisions,
initiatives
and policies to
protect the
Group’s
capital, asset
quality and
liquidity standing
as well
as the
fulfilment,
to the
maximum possible
degree, of
its strategic
and
business goals in accordance with the
business plan for 2025 - 2027.
Share Capital
As at 31 December 2024:
a)
The
total
share
capital
of
Eurobank
Holdings
amounted
to
€808,881,992.38
divided
into
3,676,736,329
common
voting
shares
of nominal
value
of €0.22
each. All
shares are
registered,
listed on
the
Athens
Stock Exchange
and
incorporate all the
rights and obligations set by the
Greek legislation,
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS
13
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€ = Euro
m = million
bn = billion
b)
The
number of
Eurobank
Holdings shares
held by
the
Group’s
subsidiaries in
the
ordinary course
of their
business
was 1,914,541 (31 December
2023: 4,346,566) (note 38 to the consolidated financial statements),
On
23
July
2024,
the
Annual
General
Meeting
(AGM)
of
the
shareholders
of
the
Company,
among
others,
approved
the
cancellation
of
52,080,673
treasury
shares
acquired
in
2023
from
Hellenic
Financial
Stability
Fund.
Following
the
said
cancellation,
the
share
capital
and the
share
premium
of the
Company decreased
by €
11,457,748.06
and €
16,274,764.99,
respectively.
Share capital increase
Following the
exercise of share options granted to executives of the Group under the current
share options’ plan (see below),
and by
virtue of
the
decision
of the
Board
of Directors
of the
Company on
30 August
2024,
the
Company’s share
capital
increased by €2,714,189.50
through the
issue of 12,337,225 new
common voting shares
of a nominal value of €0.22 per
share
and exercise price of €0.23 per share. The
total difference
above par,
which amounts to 123,372.25 euros, is credited into the
account “Share premium”.
The new shares
were listed on the
Athens Exchange on 12 September 2024.
Share options
Under the
five-year
shares award
plan approved
in 2020
and initiated
in 2021,
Eurobank
Holdings grants
to its employees
and the
employees
of its
affiliated
companies share
options rights,
issuing new
shares with
a corresponding
share capital
increase upon the options’ exercise.
The maximum number of rights that can be approved
was set at 55,637,000
rights, each
of which would
correspond to
one new share
with exercise
price equal to
€ 0.23. The
final terms and the
implementation of
the share options plan, which is a forward
-looking long-term incentive aiming at the
retention of key executives, are
defined
and approved annually by
the Board of Directors in accordance
with the applicable legal and regulatory
framework,
as well
as the policies of the Group.
The options are
exercisable in portions annually during a period from
one to five years, while each portion may be exercised
wholly or partly and converted into shares at the employees’
option, provided that they
remain employed by the
Group until
the first available exercise date. The corporate actions that adjust the number and
the price of shares also adjust
accordingly
the share options.
Further information
is provided in note 40 to consolidated
financial statements.
Dividends/Distribution of Profits
On 23 July
2024, the AGM of
the shareholders of the Company, among
others, approved a) the distribution of a cash
dividend
of
€342m
from
the
“Special
Reserves”
account,
following
the
approval
received
from
the
ECB
on
5
June
2024.
The
said
dividend corresponded
to a
30% payout
ratio
of the
Group’s
net profit
for
2023 and
a gross
dividend of
€0.09333045
per
share, following
the cancellation
of treasury shares stated above
and b) the distribution of €404,330 to senior management
and employees
of the
Company from
the “Special
Reserves”
account. In
addition, it
was noted
in AGM
that the
respective
amount that was approved
to be distributed to senior management and employees
of the Bank was € 26,237,474.
In December 2024, the
Bank proceeded with the
distribution of non-mandatory reserves
for a total amount of €240m which
is part
of the Bank’s
overall contribution to its sole shareholder, Eurobank Holdings, in order to
enable the latter to
remunerate
its shareholders out of
the profits of the financial year 2024,
in accordance with the provisions of article 162
par.3 of Company
Law 4548/2018.
Based
on
the
Group’s
financial
performance
for
the
financial
year
2024,
Eurobank
Holdings
intends
to
remunerate
its
shareholders
with
an
amount
of €674m
corresponding
to
a 50%
payout
ratio
of
the
Group’s
net
profit
for
2024
less
the
negative goodwill (€99.5m
gain on acquisition of a shareholding in Hellenic Bank),
subject to approval of the Annual General
Meeting of its
shareholders
and the
regulatory authorities.
The
final remuneration
will be a
combination of cash
and share
buyback.
Major Shareholders
Based on the most recent notifications that Eurobank Holdings has received from shareholders controlling
5 per cent or more
of Eurobank Holdings’
voting rights, such significant shareholders
are the following:
a)
“Fairfax
Financial
Holdings
Limited”,
holding
32.89%
of
Eurobank
Holdings’
total
share
capital
and
voting
rights,
corresponding to 1,209,223,895
Eurobank Holdings’ ordinary
shares (effective
since 23 January 2025).
Specifically,
following
the
changes in
the
Company’s share
capital in
the
third
quarter
of 2024
(section of
“Share
capital”), and based
on the
latest notification
that Eurobank
Holdings had received
from Fairfax
Group (“Fairfax”),
the
latter
held 33.29%
of Eurobank
Holdings’
total number
of voting
rights as
at 31
December
2024 (31
December
2023: 32.93%).
On 23 January
2025, the
Company announced that
it had been
informed
by Fairfax
that the
latter
had sold 80
million ordinary
shares of the
Company through
an accelerated
book building
procedure
reserved
for
qualified investors (the
“Transaction”).
The Transaction
represented a
mandatory technical
adjustment to Fairfax’s
significant equity holding in the
Company, with Fairfax
remaining a long-term, committed reference
shareholder of
the Company. Furthermore,
on 7 February 2025, the Company announced that it had been informed by Fairfax,
that
following
the
aforementioned
sale,
the
latter
holds
32.89% of
Eurobank
Holdings’
total
share
capital
and
voting
rights.
b)
“The
Capital
Group
Companies,
Inc”,
holding
5,11%
of
Eurobank
Holdings’
total
number
of
voting
rights,
corresponding to
187,812,291
voting rights of
Eurobank Holdings’
ordinary shares.
(effective
since 1 December
2020,
while the percentage calculation is based on
the new total Company’s listed
shares that are tradeable on the Athens
Stock Exchange, following the
last share capital increase due to the exercise
of stock option rights),
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS
14
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m = million
bn = billion
c)
The “Helikon Investments Limited”, holding 5.06% of Eurobank Holdings’ total number of voting rights, corresponding
to
185,957,220
voting
rights
of
Eurobank
Holdings’
ordinary
shares.
(effective
since
25
January
2023,
while
the
percentage
calculation is
based on the
new total
Company’s listed shares
that are
tradeable on
the Athens
Stock
Exchange, following the
last share capital increase due to the
exercise of stock option rights).
Sundry information required
under Law 3556/2007 (article 4, par.7)
According to the Articles of Association:
a)
there are
no restrictions on the transfer
of the Eurobank
Holdings’ shares,
b)
there are
no shares with special controlling
or voting rights,
c)
there are
no restrictions on voting rights,
d)
the rules related
to the appointment
and replacement
of directors as well
as to the amendment
of the Articles
of Association are in accordance
with the provisions
of company law.
Eurobank Holdings is not aware of any shareholders’
agreements resulting in restrictions in the transfer
of its shares or in the
exercise of the shares’ voting rights. There
are no significant agreements that enter into force, are amended or expire if there
is change in the control
of Eurobank Holdings following
a public offer.
There
are no agreements between Eurobank
Holdings
and the Directors or the
staff for compensation
in the event
of departure as a result of a public offer.
Board of Directors
The Board
of Directors
(BoD) was elected
by the
Annual General
Meeting of the
Shareholders
(AGM) held
on 23 July
2024
for a
three - year
term of office
that will expire
on 23 July 2027,
prolonged until
the end of
the period
the AGM
for the
year
2027 will take place.
The BoD of Eurobank Holdings is set out in note 48 to the consolidated financial statements. Personal details of the Directors
are available on the website of Eurobank
Holdings (www.eurobankholdings.gr).
Information required
under Law 4548/2018 (article 97,
par.1
(b))
According to
article 97
par.
1 (b) of
Law 4548/2018
the BoD
members
owe to
disclose in a
timely and
adequate manner
to
the other
members of
the BoD
their own
interests, which may
arise from
the company's
transactions, which
fall within
their
duties, as well
as any conflict
of their
interests with
those of the
company or its
related companies.
In such case
and in line
with the provisions
of article 97 par 3 of the same law,
the member of the
BoD is not entitled to vote on issues in which there
is a conflict of interest with his own company or persons
with whom he is a related party.
In these cases, decisions are taken
by the other
BoD members.
For 2024, the
following issues were
noted in which there was a conflict of interest
with Eurobank Holdings:
For
the purposes of
discussions related
to the proposed
amendment of the
Shareholders Agreement
of Grivalia Hospitality
S.A.,
which
involved
a
business
arrangement
between
Eurobank,
a
subsidiary
of
Eurobank
Holdings,
and
certain
related
parties, the
Board
member
Mr.
B. Martin
was not
entitled to
vote.
This
restriction
was in
accordance
with paragraph
3 of
Article 97
of Company
Law 4548/2018,
due to
a conflict
of interest
arising from
Mr.
Martin’s position
as Vice
Chairman of
Strategic
Investments
at
Fairfax,
a
significant
shareholder
of
Eurobank
Holdings
and
a
related
party
to
the
particular
arrangement.
For
the
purposes
of a)
decisions
relating
to the
Stock
Options
plan (4th
series
implementation)
approved
by
the
Annual
General
Meeting of Shareholders
in 2020 b) approvals
according to article
86 of Law 4261/2014,
the CEO
Mr. Karavias
and
the Deputy
CEOs Messrs. Ioannou
and Vassiliou
were
not entitled to vote,
according to the
provisions
of par.
3 of art. 97
of
the Law 4548/2018, due to conflict of interests.
Related party transactions
As at
31 December
2024, the
Group’s
outstanding balances
of the
transactions
and the
relating net
income
/ expense
for
2024 with (a) the
key management personnel
(KMP) and the entities
controlled or jointly controlled
by KMP are: receivables
€5.3m, liabilities €21.2m, net expense €9m (b) the Fairfax
group (excluding Eurolife
FFH Insurance Group
Holdings S.A., which
is also a Group’s associate) are:
receivables €164.2m, liabilities €23.4m, guarantees issued €2.5m, net income
€18.8m and (c)
the associates
and joint ventures
and the Eurobank
Group’s personnel
occupational insurance
fund
are: receivables
€100m,
liabilities €106m, net expense €69m.
KMP are
entitled to
compensation in
the
form
of short-term
employee
benefits of
€11.8m (2023:
€8.3m) including
€2.2m in
upfront
variable
remuneration
awarded
as
profit
sharing,
and
long-term
employee
benefits
amounting
to
€5.3m
(2023:
€1.4m) including €3.2m
in deferred
variable remuneration
awarded as profit
sharing and payable
in equal instalments
over
the next 4-5 years. In addition, KMP have been granted €5.5m in variable remuneration
through share options (2023: €7.8m),
€3.3m
of
which
relates
to
options
exercisable
in
equal
portions
over
the
next
4-5
years.
The
variable
remuneration
was
awarded, following
the Annual
General
Meetings of the
shareholders
of the Company
and the Bank
taken place
on 23 July
2024, in accordance with the
Company’s and the Bank’s remuneration
policy.
At the same date, the
Company’s outstanding balances of the
transactions and the
relating net income / expense
for
2024
with (a) KMP are: compensation €0.4m that is referring
mainly to KMP services provided by Eurobank S.A. in accordance
with
the
relevant
agreement,
(b)
the
Fairfax
group
refer
to
receivables
and
operating
income
of
€0.33m
related
to
financial
consulting
services,
(c)
the
subsidiaries
are:
receivables
€1,822.5m,
liabilities
€0.8m
and
net
income
€355.2m
and
(d)
the
Group’s associate Eurolife
FFH Insurance Group Holdings
S.A. are: operating expense of €0.1m.
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS
15
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€ = Euro
m = million
bn = billion
All transactions
with related
parties are
entered into
the normal
course of
business and
are conducted
on an arm's
length
basis. Further
information
is provided
in the
note 46
to the
consolidated financial
statements
and note
19 to
the
financial
statements of the Company.
External Auditors
The Eurobank
Holdings’ Shareholders Annual General
Meeting held on 23 July 2024 approved the appointment of KPMG, as
statutory auditor for the
financial statements (separate
and consolidated) for the
year ending 31 December 2024.
During 2024,
the
Audit Committee
reviewed
KPMG’s independence
and effectiveness,
along with
its annual
audit plan.
In
addition, the
Audit Committee
ensured
on a
quarterly
basis that
a) the
non-audit services
assigned to
KPMG, have
been
reviewed
and approved
as required
and b) there
is a proper
balance between
the audit and
non-audit fees
paid to KPMG,
in
accordance
with
the
relevant
provisions
of
the
Group’s
Policy
on
External
Auditors’
Independence
(note
47
of
the
consolidated financial statements).
Corporate Governance
Statement
In compliance with
the art.
17 of the
Law 4706/2020 for
the listed companies,
which stipulates that
listed companies should
adopt and implement a corporate governance code, prepared by a recognized and reputable body, and following a relevant
resolution
of
the
Board
of
Directors
of
Eurobank
Holdings
on
29
September
2021,
Eurobank
Holdings
has
adopted
and
implements
the
Hellenic
Corporate
Governance
Code
(Code).
The
Code
has
been
posted
on
Eurobank
Holdings’
website
(www.eurobankholdings.gr).
The Corporate
Governance Statement
for the year
2024, attached herewith,
is an integral part of the Directors’
Report, and
outlines how
the
principles stipulated
by the
Code were
applied, during
2024, to
Eurobank
Holdings
and to
Eurobank
S.A.
(100% subsidiary of Eurobank Holdings).
Sustainability Statement
Under the Directive
(EU) 2022/2464 and the Delegated Directive
(EU) 2023/2775 as in force,
which were transposed
into the
Greek legislation pursuant
to Law 5164/2024 as in force,
the Sustainability Statement
for the
year 2024, attached
herewith,
is an integral part
of the Directors’
Report and provides the
necessary information
to understand the
impact of the Group’s
activities on sustainability, as well as the
impact of sustainability on the progress,
performance and position
of the Group.
Georgios Zanias
Fokion
Karavias
Chairman
Chief Executive Officer
7 March 2025
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS
16
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€ = Euro
m = million
bn = billion
APPENDIX
Definition of Alternative Performance
Measures (APMs) in accordance with European
Securities and Markets Authority
(ESMA) guidelines, which are included in the
Report of Directors/Financial Statements:
a)
Loans to Deposits ratio:
Loans and advances
to customers at
amortised cost divided by
due to customers
at the
end of the reported period,
b)
Pre-Provision
Income
(PPI):
Profit
from
operations
before
impairments,
provisions
and
restructuring
costs
as
disclosed in the financial statements
for the
reported period,
c)
Core
income:
The
total
of
net
interest
income,
net
banking
fee
and
commission
income
and
income
from
non
banking services for
the reported period,
d)
Core Pre-provision
Income (Core PPI):
The core
income minus the operating
expenses of the reported
period,
e)
Net Interest Margin (NIM):
The net interest income of the
reported period, annualised and divided by the average
balance of
continued operations’
total assets
(the
arithmetic average
of total
assets, excluding
those related
to
discontinued operations’,
at the
end of the
reported period,
at the
end of interim
quarters and
at the
end of the
previous period),
f)
Fees and commissions:
The total of net banking fee
and commission income and
income from non banking services
of the reported period,
g)
Fees and commissions over assets ratio:
The Fees and commissions of the reported period, annualised
and divided
by
the
average
balance
of continued
operations’
total
assets (the
arithmetic
average
of total
assets, excluding
those related to discontinued operations’,
at the end of the
reported period, at the
end of interim quarters and at
the end of the
previous period),
h)
Income
from
trading
and
other
activities
:
The
total
of
net
trading
income,
gains
less
losses
from
investment
securities and other
income/ (expenses) of the
reported period,
i)
Cost to Income ratio:
Total
operating expenses
divided by total operating
income,
j)
Adjusted
net
profit:
Net
profit/loss
attributable
to
shareholders
excluding
restructuring
costs,
goodwill
impairment/ gain on acquisition, gains/losses related
to the transformation
and NPE reduction plans, contribution
to Greek State’s infrastructure
projects,
net loss from discontinued operations
and income tax adjustments,
k)
Non-performing
exposures
(NPE):
NPE (in
compliance
with
EBA Guidelines)
are the
Group’s
material
exposures
which are more than
90 days past-due or for
which the debtor is assessed
as unlikely to pay its credit
obligations
in full without
realization of
collateral,
regardless of
the existence
of any past due
amount or the
number of days
past due. The
NPE, as reported herein,
refer to
the gross
loans at amortised cost
except for
those that
have been
classified as held for
sale,
l)
NPE ratio:
NPE divided
by gross
loans and
advances to
customers
at amortised
cost at
the
end of
the reported
period,
m)
NPE formation:
Net increase/decrease of NPE in the
reported period excluding the
impact of write offs, sales and
other movements,
n)
NPE Coverage
ratio:
Impairment allowance
for loans
and advances
to customers
and impairment
allowance for
credit related commitments
(off balance sheet
items), divided by NPE at the end
of the reported period,
o)
Provisions
(charge) to
average
net loans
ratio
(Cost of Risk):
Impairment losses
relating to
loans and advances
charged
in
the
reported
period,
excluding
the
amount
associated
with
loans
and
advances
to
customers
at
amortized cost classified
as held for
sale,
annualised and divided
by the
average
balance of loans
and advances
to customers at amortised cost (the
arithmetic average
of loans and advances to customers at amortised cost, at
the end of the
reported period, at the
end of interim quarters and at the
end of the previous
period),
p)
Return on
tangible
book
value
(RoTBV):
Adjusted
net
profit
divided
by
average
tangible
book
value.
Tangible
book value is the total equity excluding preference
shares, preferred
securities and non controlling interests
minus
intangible assets,
Definition of capital and other
selected ratios
in accordance with the
regulatory framework,
which are included in the
Report of Directors/Financial Statements:
a)
Total
Capital
Adequacy
ratio:
Total
regulatory
capital
as
defined
by
Regulation
(EU)
No
575/2013
as
in
force,
based on the transitional rules
for the reported period,
divided by total Risk Weighted Assets (RWA).
The RWA
are
the Group’s
assets and off-balance-sheet
exposures, weighted according to risk factors
based on Regulation (EU)
No 575/2013, taking into account credit,
market and operational
risk,
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS
17
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€ = Euro
m = million
bn = billion
b)
Common Equity Tier 1 (CET1):
Common Equity Tier I regulatory
capital as defined by Regulation
(EU) No 575/2013
as in force,
based on the transitional
rules for the
reported period, divided by
total RWA,
c)
Fully loaded Common
Equity Tier
I (CET1):
Common Equity
Tier
I regulatory
capital as
defined by
Regulation No
575/2013 as in force,
without the application
of the relevant transitional
rules, divided by total RWA,
d)
Liquidity Coverage Ratio (LCR):
The total amount of high quality liquid assets divided by the net liquidity
outflows
for a 30-day stress period,
e)
Minimum Requirements for Eligible Own Funds and Eligible Liabilities (MREL) ratio:
The sum of i) total regulatory
capital (at
Eurobank
S.A. consolidated
level) as
defined by
Regulation (EU)
No 575/2013 as in
force,
based on the
transitional rules
for the
reported period
ii) part of any Tier
2 instruments to the
extent that it
does not qualify as
Tier 2 capital (amortized part counts towards MREL), and iii)
liabilities issued by Eurobank S.A. that meet the MREL-
eligibility criteria set out in Regulation (EU) No 575/2013
as in force,
divided by RWA.
The
following
table
presents
the
components
of
the
calculation
of
the
above
APMs,
which
are
derived
from
the
Company’s
consolidated
financial
statements
for
the
year
ended
31
December
2024
and
for
the
year
ended
31
December 2023:
Components of Alternative Performance
Measures
€ million
FY 2024
FY 2023
Net Interest Income
⁽
¹
⁾
2,507
2,174
Fees and commissions
666
544
Total Operating
income
3,341
2,914
Total Operating
income, excluding the gain on investment
in Hellenic Bank
⁽
²
⁾
3,242
2,803
Total Operating
expenses excluding the contribution to Greek
State’s
infrastructure projects
⁽
³
⁾
(1,071)
(902)
Pre-provision
income (PPI)
2,242
1,999
Pre-provision
income (PPI), excluding the gain on investment
in Hellenic Bank and
the contribution to Greek State’s
infrastructure projects
2,170
1,902
Core Pre-provision
income (Core PPI) excluding the
contribution to Greek State’s
infrastructure projects
2,101
1,816
Net profit/(loss) from continued operations
1,511
1,281
Restructuring costs, after tax
(121)
(29)
Gain on investment in Hellenic Bank (as an associate)
99.5
111
Contribution to Greek State’s infrastructure
projects, before
tax
(27)
(14)
Contribution to Greek State’s infrastructure
projects, after tax
(19)
(10)
Impairment loss/reversal
on projects "Solar" and "Leon", after tax
11
(48)
Impairment loss/reversal
on projects "Solar" and "Leon", before
tax
16
(67)
Adjusted net profit
1,484
1,256
Net profit attributable to shareholders
1,448
1,140
Net loss from discontinued operations
(7)
(141)
Impairment losses relating to loans and advances
(303)
(412)
NPE formation
⁽⁴⁾
222
138
Non performing exposures (NPE)
1,719
1,512
NPE excluding Hellenic Bank NPEs covered
by Asset Protection Scheme
(APS)
1,530
1,512
Due to customers
78,593
57,442
Gross Loans and advances to customers
at amortized cost
52,245
42,773
Impairment allowance for
loans and advances to customers
(1,309)
(1,258)
Impairment allowance for
credit related commitments
(63)
(48)
Impairment allowance for
NPE of Hellenic Bank covered by APS
(19)
-
Due to customers (Greek operations)
43,287
39,950
Gross Loans and advances to customers
at amortized cost (Greek operations)
34,682
32,308
Impairment allowance for
loans and advances to customers (Greek
operations)
(998)
(1,003)
Average
balance of continued operations’
total assets
⁽⁵⁾
91,721
79,106
Average
balance of loans and advances to customers
at amortized cost
⁽⁶⁾
46,237
40,645
Average
balance of tangible book value
⁽⁷⁾
8,024
6,957
(1)
4Q2024 NIM: Net
interest income
of the
fourth
quarter 2024 (€677m),
annualised, divided by
the average
balance of
continued
operations’
total
assets
(€100,372m).
The
average
balance
of
continued
operations’
total
assets,
has
been
calculated
as
the
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS
18
|
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€ = Euro
m = million
bn = billion
arithmetic
average
of their
balances
at
the
end of
the
reporting period
(31 December
2024: €101,150
m) and
at
the
end of
third
quarter (30 September 2024: €99,593m).
(2)
International
Operations:
Operating
income:
€1,260m
(2023:
€778m).
Greek
operations:
Operating
income:
€1,982
m
(2023:
€2,025m).
(3)
International
Operations:
Operating
expenses:
€408m
(2023:
€258m).
Greek
operations:
Operating
expenses:
€663m
(2023:
€644m).
(4)
NPEs
formation
has
been
calculated
as
the
increase
of
NPE
in
2024
€18m,
after
deducting
the
impact
of
write-offs
€95m,
classifications as held for
sale / sales €242m and other movements
(€133m) including the NPE stock from Hellenic Bank acquisition.
(5)
The average balance of continued operations’
total assets, has been calculated as the arithmetic average of their balances at the
end of the reporting period (31 December 2024: €101,150
m), at the end of interim quarters (30 September 2024: €99,593m, 30 June
2024: €98,725m and 31 March 2024:
€79,356m), and at the end of the previous period (31 December 2023: €79,781m).
The respective
figures for
31 December
2023: €79,781
m, 30
September 2023:
€78,023m 30
June 2023:
€79,137
m
31 March
2023: €79,538
and 31
December 2022: €79,052m.
(6)
The
average
balance of
loans and
advances to
customers measured
at amortized
cost ,
has been
calculated as
the
arithmetic
average
of their
balances
at the
end of
the
reporting
period
(31 December
2024: €50,936m),
at the
end of
interim quarters
(30
September 2024:
€49,095
m, 30
June 2024:
€48,093m
and 31
March 2024:
€41,546m), and
at
the
end of
the
previous
period (31
December 2023
€41,515m). The
respective figures
for
31 December
2023: €41,515m,
30 September
2023: €40,734m
30 June
2023:
€40,604m
31 March 2023: €40,137 and 31 December 2022: €40,237m.
(7)
The
average
balance
of
tangible
book
value,
has
been
calculated
as
the
arithmetic
average
of
the
total
equity
minus
the
intangible assets and non
controlling interests
at the
end of the
reporting period (31
December 2024: €8,484m)
and at the
end of
the previous
period (31
December 2023:
€7,565m).
The
respective figures
for 31
December 2023:
€7,565m
and 31 December
2022:
€6,340m.
Note: For the
purpose of calculating the 2024 average balances used in the ratios
a) NIM, b) Fees and commissions over assets and
c)
Cost
of
risk,
the
balances
as
of
30
June
2024
for
continued
operations’
total
assets
and
loans
and
advances
to
customers
measured at amortized cost have been adjusted to include the
impact of respective balances for
Hellenic Bank group.
Source of financial Information
The
Directors’
Report
includes
financial
data
and
measures
as
derived
from
the
Company’s
consolidated
financial
statements for the year ended 31 December 2024
and for the year ended
31 December 2023, which have
been prepared
in accordance
with International
Financial Reporting
Standards (IFRS).
In addition,
it includes information
as derived
from
internal
information
systems,
consistent
with
the
Group’s
accounting
policies,
such
as
the
selected
financial
information
for
the
Group’s
two
main
reportable
segments
a)
Greek
Operations,
which
incorporate
the
business
activities originated
from the
Company,
the Bank
and the
Greek subsidiaries
and b) International
Operations,
which
incorporate
the
business activities
originated from
the
banks and
the
other
local subsidiaries
operating
in Bulgaria,
Cyprus and Luxembourg (as described at the
relevant section on page 4).
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / CORPORATE
GOVERNANCE STATEMENT
1
|
Page
CORPORATE GOVERNANCE
STATEMENT
2024
Index to the Corporate Governance
Statement
1.
Introduction .................................................................................................................................................................................
3
2.
Adoption of the Hellenic Corporate
Governance Code ....................................................................................................
3
3.
Corporate Governance
and Key Policies ..............................................................................................................................
3
3.1
Internal Governance
Control Manual ................................
................................
................................
................................
............... 3
3.2
Board Nomination Policy ................................
................................
................................
................................
................................
........
3
3.3
CEO Succession Planning................................
................................
................................
................................
................................
........
5
3.4
Board Evaluation Policy ................................
................................
................................
................................
................................
...........
5
3.5
Board of Directors Diversity
Policy
................................
................................
................................
................................
..................... 6
3.6
Remuneration
Policy................................
................................
................................
................................
................................
.................. 6
3.7
Board and Board Committees’ Attendance
Policy
................................
................................
................................
.................... 7
3.8
Directors’ Induction and Continuous Professional
Development Process
................................
................................
...... 7
3.9
Group Governance
Policy
................................
................................
................................
................................
................................
....... 7
3.10
Conflicts of interest Policy ................................
................................
................................
................................
................................
......
8
3.11
Other Key
Policies
................................
................................
................................
................................
................................
....................... 8
4.
Shareholders’ General
Meeting ..............................................................................................................................................8
4.1
Information about the
Eurobank Holdings General
Meetings
................................
................................
............................. 9
4.1.1
Requirements for
calling and convening the General
Meetings
................................
................................
...........
9
4.1.2
Participation and proxies ................................
................................
................................
................................
......................... 9
4.1.3
Annual General Meeting (AGM)
of the shareholders ................................
................................
................................
.
9
4.2
Information about the
Eurobank General
Meetings
................................
................................
................................
............... 10
4.2.1
Annual General Meeting (AGM)
of the shareholders ................................
................................
............................... 10
5.
Board of Directors ....................................................................................................................................................................
11
5.1
General
................................
................................
................................
................................
................................
................................
............ 11
5.2
Composition of the Board ................................
................................
................................
................................
................................
..... 11
5.3
CVs of Board Board
members and Secretary ................................
................................
................................
............................ 12
5.4
Re-election, Cessation, and Independence of Board
Members ................................
................................
......................... 17
5.5
Division of responsibilities ................................
................................
................................
................................
................................
.... 18
5.5.1
Chairperson................................
................................
................................
................................
................................
.................... 18
5.5.2
CEO ................................................................
................................
................................
................................
................................
.... 18
5.5.3
Executive Directors ................................
................................
................................
................................
................................
..... 18
5.5.4
Non-Executive Directors ................................
................................
................................
................................
.......................... 19
5.6
Operation of the
Board ................................
................................
................................
................................
................................
......... 19
5.6.1
Board Meetings................................
................................
................................
................................
................................
............ 19
5.6.2
Dissemination of Information ................................
................................
................................
................................
............... 19
5.6.3
Quorum in the Board Meetings ................................
................................
................................
................................
........... 19
5.6.4
Board Decisions and Minutes ................................
................................
................................
................................
............... 19
5.6.5
Company Secretary ................................
................................
................................
................................
................................
..
20
5.7
Attendance of Board members
in the Board and Board Committees ................................
................................
......... 20
5.8
Directorships of Board members ................................
................................
................................
................................
...................... 21
5.8.1
HoldCo and Eurobank Board
Members’ Directorships (including Directorships within
Eurobank
Group) as at 31.12.2024 ................................................................
................................
................................
........................... 22
5.9
Board Role and Responsibilities
................................
................................
................................
................................
....................... 23
5.10
Main issues the Board dealt with during 2024 ................................
................................
................................
......................... 24
5.10.1
Eurobank Holdings
................................
................................
................................
................................
................................
..... 24
5.10.2
Bank
................................
................................
................................
................................
................................
................................
..
25
5.10.3
Board Strategy Day ................................
................................
................................
................................
................................
..
28
5.11
Board and Board Committees overall
effectiveness
assessment ................................
................................
................... 28
5.11.1
Board and Board Committees Evaluation ................................
................................
................................
.................... 28
5.11.2
Assessment of the knowledge,
skills and experience (KSE) of the Board
collectively as well as
the KSE and contribution of individual Board members. ................................
................................
....................... 29
5.11.3
Individual Evaluations
................................
................................
................................
................................
.............................. 29
5.11.4
Collective Suitability Assessment................................
................................
................................
................................
....... 30
5.12
Directors’ Induction and Continuous Professional
Development ................................
................................
.................... 30
6.
Board Committees ..................................................................................................................................................................
30
6.1
Governance and Operations
of Board Committees
................................
................................
................................
............... 31
6.1.1
Board Committees’ members ................................
................................
................................
................................
............... 31
6.1.2
Board Committees’ Terms
of Reference (ToR) ................................
................................
................................
............. 31
6.1.3
Board Committees’ meetings ................................
................................
................................
................................
............... 31
6.1.4
Quorum in the Board Committees’
Meetings
................................
................................
................................
............... 31
6.1.5
Board Committees’ Decisions
................................
................................
................................
................................
............... 31
6.1.6
Board Committees’ Secretary and Minutes ................................
................................
................................
.................. 31
6.1.7
Board Committees’ Performance
Evaluation ................................
................................
................................
............... 31
6.2
Audit Committee
................................
................................
................................
................................
................................
....................... 31
6.2.1
AC Membership/Composition
................................
................................
................................
................................
.............. 32
6.2.2
AC Meetings................................
................................
................................
................................
................................
.................. 32
6.2.3
Attendance to the AC Meetings ................................
................................
................................
................................
......... 32
6.2.4
AC’s Performance
Evaluation
................................
................................
................................
................................
............... 33
6.2.5
ACs’ Activity in 2024 ................................................................
................................
................................
................................
.
33
6.3
Board Risk Committee ................................
................................
................................
................................
................................
.......... 36
6.3.1
BRC Membership/Composition
................................
................................
................................
................................
........... 36
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / CORPORATE
GOVERNANCE STATEMENT
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6.3.2
BRC Meetings
................................
................................
................................
................................
................................
................
37
6.3.3
Attendance to the BRC Meetings ................................
................................
................................
................................
.......
37
6.3.4
BRCs’ Performance
Evaluation
................................
................................
................................
................................
.............
37
6.3.5
BRCs’ Activity in 2024
................................
................................
................................
................................
.............................. 38
6.4
Remuneration
Committee
................................
................................
................................
................................
................................
.. 39
6.4.1
RemCos Membership/Composition ................................
................................
................................
................................
.. 39
6.4.2
RemCos meetings
................................
................................
................................
................................
................................
...... 40
6.4.3
Attendance to the RemCo meetings ................................
................................
................................
............................... 40
6.4.4
RemCo’s Performance
Evaluation ................................
................................
................................
................................
..... 40
6.4.5
RemCos' Activity in 2024................................
................................
................................
................................
........................ 40
6.5
Nomination and Corporate Governance
Committee
................................
................................
................................
........... 42
6.5.1
NomCo Membership/Composition ................................
................................
................................
................................
... 43
6.5.2
NomCo Meetings ................................
................................
................................
................................
................................
....... 43
6.5.3
Attendance to the NomCo meetings ................................................................
................................
............................... 43
6.5.4
NomCos’ Performance
Evaluation ................................
................................
................................
................................
.... 43
6.5.5
NomCos’ Activity in 2024
................................
................................
................................
................................
....................... 44
6.5.6
Board of Directors Diversity
................................
................................
................................
................................
.................. 45
6.5.7
Senior Management Diversity ................................
................................
................................
................................
............. 45
6.6
Board Digital & Transformation
Committee
................................
................................
................................
.............................. 46
6.6.1
BDTC Membership / Chairmanship ................................
................................
................................
................................
...
46
6.6.2
BDTC Meetings
................................
................................
................................
................................
................................
............ 46
6.6.3
BDTC Attendance
Rate
................................
................................
................................
................................
........................... 46
6.6.4
BDTC Performance
Evaluation
................................
................................
................................
................................
.............
47
6.6.5
BDTC’s Activity in 2024 ................................
................................
................................
................................
............................ 47
7.
Management Committees
.....................................................................................................................................................
47
7.1
Management Committees’ Policy
................................
................................
................................
................................
..................... 47
7.2
Executive Board (ExBo)................................
................................
................................
................................
................................
.......... 48
7.2.1
CVs of ExBo members (other
than BoD members) ................................
................................
................................
...
48
7.3
Strategic Planning Committee................................
................................
................................
................................
........................... 51
7.4
Management Risk Committee
................................
................................
................................
................................
........................... 52
7.5
Group Asset and Liability Committee (G-ALCO) ................................
................................
................................
..................... 52
7.6
Central Credit Committees ................................
................................
................................
................................
................................
.
55
7.6.1
Central Credit Committee I
................................
................................
................................
................................
................... 55
7.6.2
Central Credit Committee II ................................
................................
................................
................................
................. 55
7.7
Troubled Assets Committee................................
................................
................................
................................
................................ 56
7.8
Products & Services Committee
(PSC)
................................
................................
................................
................................
.......... 56
7.9
Sustainability Management Committee (SMC)
................................
................................
................................
........................ 56
7.10
Ethics Co ................................
................................
................................
................................
................................
................................
........
57
8.
Key Control
Functions ............................................................................................................................................................
57
8.1
Internal Audit................................
................................
................................
................................
................................
............................... 57
8.1.1
Eurobank Holdings
................................
................................
................................
................................
................................
......
57
8.1.2
Eurobank
................................
................................
................................
................................
................................
......................... 58
8.2
Risk Management
................................
................................
................................
................................
................................
.................... 59
8.2.1
Eurobank Holdings
................................
................................
................................
................................
................................
..... 59
8.2.2
Eurobank
................................
................................
................................
................................
................................
......................... 59
8.3
Compliance ................................
................................
................................
................................
................................
................................
.
60
8.3.1
Eurobank Holdings
................................
................................
................................
................................
................................
..... 60
8.3.2
Eurobank
................................
................................
................................
................................
................................
.......................... 61
8.4
Personal Data Protection
................................
................................
................................
................................
................................
....
62
8.4.1
Eurobank Holdings
................................
................................
................................
................................
................................
..... 62
8.4.2
Eurobank
................................
................................
................................
................................
................................
......................... 62
9.
System of Internal Controls ..................................................................................................................................................
62
9.1
Principles of Internal Controls
................................
................................
................................
................................
............................ 62
9.2
Characteristics of the
System of Internal Controls (SIC)
................................
................................
................................
...... 63
9.3
Evaluation of the System of Internal
Controls
................................
................................
................................
........................... 64
9.4
Independent Evaluation of the HoldCo/Bank
System of Internal Controls ................................
................................ 64
9.5
Corporate Governance
System Assessment in accordance with article 4 par.
1 of Law 4706/2020
............. 64
10.
Sustainability ...........................................................................................................................................................................
64
10.1
Sustainability Approach ................................
................................
................................
................................
................................
....... 64
10.2
Sustainability Policies & Frameworks ................................
................................
................................
................................
............ 65
10.3
Stakeholders engagement and
double materiality assessment ................................
................................
..................... 66
10.4
Reporting and Transparency ................................
................................
................................
................................
............................. 66
11.
Other information
required by Directive
2004/25/EU
....................................................................................................
67
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / CORPORATE
GOVERNANCE STATEMENT
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1.
Introduction
In accordance with Article 152(1)
and Article 153(3)
of Law 4548/2018, Law
4706/2020, and the Hellenic Corporate Governance
Code,
the
Report
of
the
Board
of
Directors
of
Eurobank
Ergasias
Services
and
Holdings
S.A.
(the
"Company",
"Eurobank
Holdings", "Holdings", or "HoldCo") includes the
Corporate Governance
Statement, which addresses the
following key
areas:
●
Adoption of the Hellenic Corporate
Governance Code
●
Corporate Governance
and Key Policies
●
Shareholders’ General
Meeting
●
Board of Directors
●
Board of Directors’ Committees
●
Management Committees
●
Key Control Functions
●
System of Internal Controls
●
Sustainability
●
Additional Disclosures Required by
Directive 2004/25/EU
2.
Adoption of the Hellenic Corporate
Governance Code
In
compliance
with
Article
17
of
Law
4706/2020,
which
requires
listed
companies
to
adopt
and
implement
a
corporate
governance
code
issued
by
a
recognized
and
reputable
body,
Eurobank
Holdings
has
adopted
and
applies
the
Hellenic
Corporate Governance
Code (the "Code").
The Code is available on Eurobank
Holdings’ website (https://www.eurobankholdings.gr).
Given that
the Eurobank
Holdings Group
(the "Group")
primarily comprises Eurobank
S.A. ("Eurobank"
or the
"Bank") and its
subsidiaries (the
"Eurobank
Group"), this
Corporate
Governance
Statement outlines
how the
principles set
out in
the Code
were implemented
across both Eurobank
Holdings and Eurobank throughout
2024.
3.
Corporate Governance
and Key Policies
The
corporate
governance
framework
of
the
Group,
aligned
with
the
applicable
legal
and
regulatory
requirements
and
international
best
practices,
ensures
that
HoldCo,
the
Bank,
and
their
subsidiaries
operate
with
credibility,
responsibility,
fairness, and transparency,
safeguarding the interests
of their shareholders
and all other stakeholders.
In this context,
HoldCo and the
Bank have established
a comprehensive
set of policies
and procedures,
which are regularly
reviewed
and approved
by the
respective Board
of Directors (BoD) and/or
Board Committees, as required.
The Key
Policies
governing HoldCo and the
Bank are outlined below.
3.1
Internal Governance Control
Manual
The Internal Governance Control Manual (IGCM) of Eurobank Holdings and Eurobank has been developed in
accordance with
Law 4706/2020 to ensure
compliance with regulatory
requirements
and internal governance
policies. The
IGCM defines the
overarching
framework
by
which
each
Company
is
directed
and
controlled,
serving
as
a
formal
record
of
the
high-level
internal control principles in operation.
The
policies and
controls
outlined in
both
the HoldCo
IGCM and
Bank IGCM
are designed
to minimize
the risk
of errors
or
financial losses, protect the interests of
shareholders and depositors, and
ensure full compliance with
regulatory requirements
at all times.
The HoldCo IGCM and Bank
IGCM provide a high-level overview of control policies, while
more detailed operating procedures
are
documented
in
individual
procedures
and
manuals
maintained
by
their
respective
units.
Subsidiaries
are
required
to
establish their
own IGCMs
and/or procedures
manuals and
to adopt
the
Group’s
policies where
applicable. The
principles
outlined
in the
IGCM
apply across
all units
and subsidiaries,
except
where
local
circumstances
or regulations
necessitate
deviations.
Each IGCM
includes a high-level
organizational chart
and a brief
description of
the key
responsibilities of
the main
control
functions within HoldCo and
Eurobank. These
manuals are supplemented by
the procedures
manuals of individual units and
subsidiaries, which provide a written description of the
uppermost levels of the
Group’s System of Internal Controls.
3.2
Board Nomination Policy
The
HoldCo/Banks’
Board
Nomination
Policy
sets
out
the
guidelines
and
formal
process
for
identifying,
selecting,
and
nominating candidates for the
Board. It ensures that appointments
are made:
(a) in compliance with legal and regulatory requirements,
(b) with due regard to the
expectations of major shareholders, and
(c) based on individual merit and ability,
following best practices.
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / CORPORATE
GOVERNANCE STATEMENT
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The primary objectives
of this Policy are
to:
●
Define
the
general
principles
that
guide
the
Nomination
and
Corporate
Governance
Committee
(NomCo)
in
all
stages of the nomination process,
●
Establish specific criteria and requirements for
Board nominees,
●
Ensure a transparent, efficient,
and fit-for-purpose nomination process,
and
●
Maintain a Board structure—including succession planning—that meets high ethical standards, achieves
an optimal
balance of knowledge, skills, and experience,
and aligns with current regulatory
requirements.
●
Nomination Criteria
The Board, supported
by NomCo, shall nominate candidates who meet the
following criteria:
1. Reputation, Honesty,
Integrity, and Trust
●
Reputation: Candidates
must have a
strong reputation
and high social esteem,
demonstrating good
repute in line
with the applicable regulatory
framework’s
standards for honesty and integrity.
●
Honesty,
Integrity,
and Trust:
Candidates should
exemplify the
highest standards
of ethics,
honesty,
fairness,
and
personal discipline, as evidenced by their
professional track
record, personal history,
and public commitments.
2. Knowledge, Skills, Experience (KSE), and General
Suitability
●
Understanding of
the
HoldCo/Bank: Candidates
must possess
sufficient knowledge,
skills, and
experience
(KSE) to
develop a thorough
and up-to-date understanding of the
business, governance
structures, regulatory environment,
markets, stakeholders,
and risks associated with the HoldCo
and its subsidiaries.
●
Seniority: A candidate must have several
years of experience in a recognized leadership position within their field of
expertise.
●
Independent
Mindset
and
Ability
to
Challenge:
Candidates
should
demonstrate
the
ability
to
form
and
express
independent judgments on all
matters before the Board, along with the candor to
challenge management and other
Board members when
necessary.
●
Collegiality,
Teamwork,
and
Leadership:
Candidates
should
contribute
constructively
and
productively
to
Board
discussions and decision-making, with the capability to lead discussions as a Committee Chair, Vice-Chair, or Board
Chair.
●
Additional
Criteria
for
Executive
Directors:
Candidates
for
Executive
Director
positions
must
have
demonstrated
leadership capabilities
through current
or previous executive
roles, along
with the
necessary expertise to
guide the
HoldCo/Bank in achieving its strategic
objectives. They
must also be willing to enter
into full-time employment
with
the HoldCo/Bank.
3. Conflicts of Interest and Independence of Mind
NomCo shall
assess candidates'
personal, professional,
financial, and
political
affiliations
to ensure
that they
do not
have
actual, potential,
or perceived
conflicts of interest
that cannot
be prevented,
adequately mitigated, or
managed under the
HoldCo/Bank’s policies. Candidates
must be able to represent
the interests
of all shareholders,
fulfill their responsibilities
as
Directors, and make sound, objective,
and independent decisions.
NomCo shall also examine candidates’
direct and indirect
monetary and non-monetary interests,
including their affiliations
with or membership in other
organizations.
4. Time Commitment
NomCo
shall
ensure
that
all
nominees
can
dedicate
the
time
required
to
effectively
discharge
their
responsibilities
as
Directors. This includes their
ability to attend and actively participate in Board
and Committee meetings on a regular basis.
5. Collective Suitability
The Board,
as a whole, must have the
ability to understand the
institution’s activities, assess
the associated risks,
and make
informed decisions aligned
with the institution’s business
model, risk appetite, strategy,
and market operations.
The
composition
of
the
Board
should
reflect
the
necessary
knowledge,
skills,
and
experience
required
to
fulfill
its
responsibilities. The Board
should collectively possess expertise in:
●
The institution’s
core business and its associated risks,
●
All material activities of the HoldCo/Bank,
●
Sector-specific
and
financial
competencies,
including
financial
and
capital
markets,
solvency,
risk
modeling,
and
environmental, social, and governance
(ESG) risks,
●
Financial accounting and reporting,
●
Risk management, compliance (including AML/CFT), and internal
audit,
●
Information and digital technology,
including cybersecurity,
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / CORPORATE
GOVERNANCE STATEMENT
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●
Local, regional, and global markets,
where applicable,
●
The legal and regulatory
framework,
●
Strategic planning and managerial experience,
●
Oversight of (inter)national
group structures and risks related
to group governance,
●
Corporate governance,
●
ESG issues, and
●
Gender representation, in accordance
with the Board Diversity
Policy.
Succession Planning
As part of its
oversight of the nomination process, NomCo shall ensure the implementation of structured, stepwise succession
planning to maintain
continuity and institutional
knowledge at the Board level. This is
particularly critical in
managing sudden
or unexpected absences or departures of Board
members.
To this end, NomCo shall:
●
Monitor
Board
members’
tenures
and
ensure
staggered
appointments
and
retirements
whenever
feasible.
The
reappointment of existing Board members shall be based on their continued adherence to the criteria set out in this
Policy.
●
Ensure an appropriate distribution of relevant
KSEs across the Board,
preventing undue reliance
on the expertise of
a few Directors.
●
Assess whether
a sufficient
number
of Board
members
are capable
of assuming
leadership roles,
including Board
and Committee Chair positions.
●
Periodically evaluate the availability of suitable candidates to
address the Board’s future succession planning needs.
●
Consider both:
a) the objectives and targets
defined in the HoldCo/Bank Board
Diversity Policy,
and
b) the
findings of
the
HoldCo
and Bank
Board Evaluations,
ensuring necessary
changes in
composition or
skills to
enhance effectiveness
and collective suitability.
The
CEO
Succession
Planning
Policy,
which
is
supplementary
to
this
Policy,
sets
out
the
framework
for
CEO
succession
planning.
3.3
CEO Succession Planning
The
HoldCo/Bank’s
CEO
Succession
Planning
Policy
(the
Policy)
plays
a
crucial
role
in
ensuring
a
seamless
leadership
transition. The
key elements of the
Policy are as follows:
●
Qualifications
for
the
CEO
Position:
The
Nomination
and
Corporate
Governance
Committee
(NomCo),
in
collaboration
with
the
current
CEO,
defines
the
qualifications
required
for
the
CEO
role.
This
ensures
that
the
successor possesses the necessary skills, experience,
and leadership attributes to guide the organization effectively.
●
Viable
Pool
of
Candidates:
NomCo
ensures
that
a
strong
pipeline
of
candidates
meets
the
CEO
position’s
requirements.
This includes
evaluating internal
candidates within
the
organization
while also
considering external
candidates when appropriate.
●
Annual Review: NomCo reviews the qualifications and candidate pool at
least annually to
ensure that the succession
planning process
remains
aligned
with
the
organization’s
evolving
needs,
regulatory
expectations,
and
strategic
direction.
●
Selection
Process:
NomCo
leads the
CEO
selection
process,
evaluating
candidates
based
on their
qualifications,
leadership capabilities, experience,
and alignment with the organization’s
culture and strategic objectives.
●
Tailored
Induction
Program:
Once
a
new
CEO
is
selected,
NomCo
approves
a
customized
induction
program
to
ensure
a
smooth
transition.
This
program
provides
the
new
CEO
with
the
necessary
knowledge,
resources,
and
support to succeed in the role
from the outset.
Overall,
the
CEO
Succession
Planning
Policy
ensures
that
the
organization
is
well-prepared
for
leadership
transitions,
maintaining continuity, stability,
and effectiveness
at the highest level
of management.
3.4
Board Evaluation Policy
The
Board
and
Board
Committees
Evaluation
Policy
of
Eurobank
Holdings
and
Eurobank
establishes
the
principles,
framework,
and process for the
annual assessment of the effectiveness
of the Board of Directors and its Committees at both
the HoldCo and the
Bank. The Policy
aspires to align with best European
banking practices
while fully complying with Greek
and European legal and regulatory requirements.
Under this Policy,
the Nomination and Corporate
Governance Committee (NomCo)
holds the overall
responsibility for:
●
Assessing the structure, size, composition, and performance
of the Board and its Committees,
●
Recommending to the Board any necessary
changes to enhance effectiveness,
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / CORPORATE
GOVERNANCE STATEMENT
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●
Evaluating the collective
suitability of the Board as a whole, as well as the
suitability and contributions of individual
Board members, and
●
Reporting its findings and recommendations to the
Board accordingly.
3.5
Board of Directors Diversity
Policy
The
HoldCo/Bank
Board
of
Directors
Diversity
Policy
reflects
the
organization’s
commitment
to
diversity
in
line
with
international best practices
and applicable legal requirements.
According to the Policy,
Board diversity encompasses multiple factors,
including:
●
Skills and expertise,
●
Educational and professional
background,
●
Geographical origin,
●
Gender,
●
Age, and
●
Other relevant
attributes that contribute to a well-balanced
and effective Board.
The
NomCo is
responsible
for
incorporating
diversity
considerations
when
assessing the
composition and
structure
of the
Board.
During
the
Board
collective
suitability
review,
NomCo
members
discuss
and
define
measurable
objectives
for
enhancing
Board
diversity.
These
objectives
guide
the
(re)appointment
and
succession
planning
of
individual
Board
members,
in
accordance with the
Board and Board Committees Evaluation Policy.
A key target outlined in the Policy is gender diversity.
Specifically, NomCo so far aimed for at least 25% representation
of the
less represented
gender on the
Board, calculated
based on the
total Board
size, according to
legal requirements.
After the
publication of Law 5178/2025, the
intention is to properly comply to its provisions.
3.6
Remuneration Policy
Eurobank Holdings has established
a Board of Directors’ Remuneration
Policy (Remuneration
Policy) in accordance
with the
requirements
of Law 4548/2018
(the Law).
The latest
version
of the
Policy
was approved
by the
Annual General
Meeting of
Shareholders
on 23 July
2024. The
Policy
has been designed
to comply with
the specific
provisions
of Articles 110
and 111 of
the Law.
The Remuneration
Policy sets
out the fundamental
principles and structure
governing the
remuneration
of Board members.
Its primary objective is to ensure that remuneration
is:
●
Reasonable and aligned with market standards,
●
Gender-neutral, promoting
equal treatment, and
●
Sufficiently
competitive
to
attract
and
retain
Directors
with
the
necessary
skills
and
experience
to
implement
Eurobank Holdings’ business
strategy effectively.
Additionally,
the Policy
safeguards the
long-term interests
and sustainability of the
organization by
discouraging excessive
risk-taking. This is achieved through continuous monitoring of market trends and best practices at both domestic and global
levels.
The
Policy
is informed
by external
and independent
benchmarking analyses
of remuneration
in the
financial and
banking
sectors, both in Greece and internationally. This benchmarking ensures that the remuneration
framework for
Board members
remains aligned with industry best practices.
In addition, the development
and implementation of the Remuneration
Policy are characterized
by:
●
Objectivity and transparency throughout
the process,
and
●
Independent
judgment
and
discretion
by
the
Board
when
approving
or
recommending
remuneration,
ensuring
alignment with both individual and Company performance.
Remuneration Report
In compliance
with Article 112(3)
of Law 4548/2018,
Eurobank Holdings
publishes an
annual Remuneration
Report, detailing
the remuneration
and financial benefits granted to each Executive
and Non-Executive Director during the
financial year.
The
Eurobank
Holdings
Remuneration
Report
for
2024
(
https://www.eurobankholdings.gr
)
was
approved
by
the
Annual
General
Meeting on
23 July
2024. The
report
provides
comprehensive
and transparent
disclosure
of Board
remuneration,
ensuring efficient communication with
shareholders and stakeholders.
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Remuneration Structure
Non-Executive Directors
●
Fixed Remuneration
Only: Non-Executive
Directors receive
fixed remuneration,
which is
annually approved
by the
Annual General Meeting. They
are not eligible for variable remuneration.
●
Board
Fees:
Their
fixed remuneration
consists of
Board
Fees,
determined
based
on their
roles
on the
Board
and
Committees, their expected contribution, and the
additional time and effort
required for
their responsibilities.
Executive Directors
●
Employment Contracts: Executive
Directors are employed
by the Bank under permanent, indefinite contracts.
These
contracts require a three
-month notice period in case
of resignation.
●
Remuneration
Structure:
o
Executive Directors
receive remuneration
under their
employment contracts
and do not receive
additional
compensation for their
role as Board members.
o
Variable
Remuneration:
Any
variable
remuneration
awarded
follows
the
provisions
of
the
Bank’s
Remuneration
Policy and is subject to approval by
the Shareholders'
General Meeting.
Remuneration Governance
Given
the
identical
composition
of
the
Boards
of
Eurobank
Holdings
and
Eurobank,
and
the
fact
that
Directors
are
compensated
solely
by
the
Bank,
any
reference
to
Board
remuneration
at
Eurobank
Holdings
also
applies
to
their
remuneration
as Directors of the Bank.
The 2024 Board and key management
remuneration
disclosure is included in the relevant note of the
consolidated accounts
of
Eurobank
Holdings.
To
ensure
market
transparency
regarding
remuneration
structures
and
associated
risks,
this
information is publicly available
on the Eurobank
Holdings website (
www.eurobankholdings.gr
).
3.7
Board and Board Committees’ Attendance
Policy
In
accordance
with
the
Board
and
Board
Committees’
Attendance
Policy
of
Eurobank
Holdings
and
Eurobank,
Board
members are expected to attend all Board
and Committee meetings to which they are appointed.
However,
it is
recognized
that, on
occasion,
Board
members
may be
unable to
attend certain
meetings due
to conflicting
commitments
or
unforeseen
circumstances.
To
ensure
active
participation,
each
member
must
maintain
a
minimum
attendance rate of 85% over
the course of the calendar
year.
Board members may miss up to 15% of scheduled
meetings, but only if a valid excuse is provided.
Additionally,
in accordance
with Law
4706/2020,
if a
Board
member
is unjustifiably
absent from
at
least two
consecutive
Board meetings,
they shall be
considered resigned.
This resignation
is formally established
through a Board
decision, which
subsequently initiates the replacement
process in accordance
with the applicable legal framework.
3.8
Directors’ Induction and Continuous Professional
Development Process
All new Board members
undergo a comprehensive
Induction Program,
designed to ensure a smooth and effective
transition
into their roles.
The program
aims to:
1.
Communicate the vision and corporate
culture of Eurobank Holdings and
Eurobank,
2.
Introduce practical
and procedural responsibilities
to facilitate a seamless onboarding
process,
3.
Accelerate
productivity by reducing the
time needed to familiarize new
members with their roles,
4.
Integrate new Directors
as valued members of the Board,
5.
Provide insight into the organizational
structure of the HoldCo/Bank, and
6.
Offer a comprehensive
understanding of the business, strategy,
market dynamics, key relationships,
and leadership
team of the HoldCo/Bank.
Upon
appointment,
new
Board
members
also
receive
a
Manual
of
Obligations,
which
outlines
their
core
responsibilities
towards the
Supervisory Authorities
and the
HoldCo/Bank. This
manual includes guidance
on local regulatory
requirements
and Board procedure
s.
Additionally,
newly
appointed
Directors
participate
in
meetings
and
presentations
with
key
executives
to
gain
a
holistic
overview of the
organization.
Recognizing
the
importance
of
continuous
professional
development,
Eurobank
Holdings
and
Eurobank
provide
ongoing
learning resources to support the
knowledge and skill enhancement of all Board
members.
3.9
Group Governance
Policy
In compliance with the regulatory
framework,
the Group Governance
Policy of Eurobank
Holdings and Eurobank establishes
general
governance
principles
for
the
Group
entities,
sets
common
governance
standards,
and
defines
authorities,
responsibilities, and expectations, ensuring the
Group operates
as a unified entity with a cohesive strategic
direction.
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The
policy integrates
internal governance
by clarifying
the
distinct roles
of the
parent company
and its
subsidiaries, while
also setting principles related to board composition, roles and responsibilities, chairmanship, board committees, nomination
processes,
board
diversity,
CEO
succession
planning,
board
evaluations,
professional
development,
management
committees, governance manuals,
and corporate governance
codes.
By
harmonizing
governance
practices
across
the
Group,
the
policy
promotes
accountability,
transparency,
and
effective
decision-making at all levels.
3.10
Conflicts of interest Policy
Eurobank
Holdings and
Eurobank
have
implemented
a Conflicts
of Interest
Policy,
approved
by their
respective
Boards of
Directors, to establish a comprehensive
framework
for identifying, preventing,
and managing actual, potential, or perceived
conflicts of interest
arising from
the Group’s
business activities. This
policy includes
a structured set
of policies, procedures,
systems, and controls to uphold ethical
standards and ensure transparent decision
-making.
To prevent
conflicts of duties, the Group has implemented
procedural
safeguards that:
●
Segregate executive
and non-executive responsibilities at
the Board
level, ensuring a clear
distinction between the
Chairperson of the Board and the
CEO’s executive functions,
●
Prevent incompatible roles
and conflicts of interest among Board members,
Management, and Executives, and
●
Mitigate the misuse of inside information
or corporate assets.
Board members are
expected to:
●
Adhere to high ethical
standards and comply with the principles set out in the
Conflicts of Interest Policy,
●
Act independently, making sound, objective,
and impartial decisions,
●
Disclose any personal interests that may conflict with
the interests of Eurobank
Holdings or the Group,
●
Maintain confidentiality
of non-public
information
and avoid
any conduct
that
could constitute
market
abuse or
create a conflict of interest.
Board members are
required to disclose:
●
All external engagements, directorships, or affiliations
outside the Group,
●
Any new or ongoing circumstances that could
affect their
independence of mind or create a conflict of interest.
All actual or potential conflicts of interest at the
Board level must be:
●
Communicated, documented, and discussed,
●
Decided upon and managed by the Group,
●
Mitigated
through
specific
measures
for
unexpected
conflicts,
while
persistent
conflicts
are
managed
through
continuous oversight.
Board
members
must
abstain
from
voting
on
matters
where
they
have
an
identified
conflict
of
interest,
ensuring
transparency,
impartiality, and effective
governance.
3.11
Other Key Policies
In addition
to the
above policies,
Eurobank
Holdings and
Eurobank
have established,
among others,
the following
policies,
which form an integral part of their
corporate governance
framework:
the Code of Conduct and Ethics, the
Anti-Bribery and
Corruption Policy,
and the Policy for
Reporting Illegal or Unethical Conduct or Violations
of European Union Law.
4.
Shareholders’ General
Meeting
The
Shareholders’
General
Meeting
(General
Meeting)
serves
as
the
highest
authority
within
Eurobank
Holdings
and
Eurobank and is convened
by the respective
Board of Directors to address all matters concerning
the entity.
It holds exclusive
jurisdiction over
matters specified in
Article 117 of Company
Law 4548/2018, including
amendments to
the
Articles of
Association. Every
shareholder
has the
right to
participate and
vote
at the
General
Meeting, either
in person
or
through a legal representative,
in accordance with the prescribed
legal procedures.
For
the General
Meeting to reach a
quorum and be considered
valid, shareholders
present or represented
must collectively
hold at
least 20%
(1/5) of
the
paid-in share
capital associated
with voting
shares.
Resolutions
are
passed by
an absolute
majority and are
binding on both absent
and dissenting shareholders. However, for significant decisions such as share capital
changes or mergers,
a higher
quorum of at
least 50% (1/2)
of the
paid-in share
capital is
required, and
resolutions must
be
approved by a two
-thirds (2/3) majority.
According to Article 119(1) of Law
4548/2018, the Annual General Meeting must be held no later than the tenth (10th) calendar
day
of
the
ninth
month
following
the
end
of
the
business
year.
Additionally,
an
Extraordinary
General
Meeting
may
be
convened by the Board
of Directors when deemed necessary
or required by law.
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Minutes of the
General
Meeting are authenticated
by the
Chairperson and the
Secretary of the
meeting, and the
standard
minority rights outlined in Company Law 4548/2018 apply.
4.1
Information about the
Eurobank Holdings
General Meetings
4.1.1
Requirements for calling
and convening the General
Meetings
All persons registered as shareholders of ordinary shares
of Eurobank Holdings in the Dematerialized Securities System
(DSS),
managed by Hellenic Central
Securities Depository S.A., on the
Record Date—specifically,
at the start of the
fifth day before
the General
Meeting—are entitled to participate
and vote in the
HoldCo General
Meeting. This Record Date
also applies to
any Repeat Meeting.
Shareholders
are
informed
in advance
about the
agenda of
each
General
Meeting,
and new
technologies
are
utilized
to
facilitate
their
participation.
At least
20 days
before
the
meeting,
shareholders
are
provided
with access
to all
necessary
information, in full
compliance with Greek law.
The Notice
of General Meeting includes:
●
The date, time, and place
of the meeting,
●
The agenda items,
●
Participation and voting
rights, along with the relevant
procedures,
●
Minority shareholder rights, and
●
Relevant documents made available to shareholders.
All resolutions and related
information from
each General Meeting are
published under the Investor
Relations section of the
Eurobank Holdings website.
4.1.2
Participation and proxies
Eurobank
Holdings
facilitates
shareholder
participation
in
General
Meetings. All
shareholders
have
the
right to
attend
in
person or appoint a proxy,
who must be designated at least 48 hours before the
meeting date.
If shareholders' questions
regarding agenda items are
not addressed during the
General Meeting, Eurobank
Holdings has a
structured process in place
to provide the relevant
responses.
4.1.3
Annual General Meeting (AGM)
of the shareholders
The
Annual General
Meeting of Eurobank
Holdings’ shareholders
was held
on July 23,
2024, remotely
via teleconference
in
real-time. Shareholders representing
2,849,603,397 shares out of 3,664,399,104
shares (excluding 52,080,673 treasury shares,
in accordance
with Article
50(1) of Law
4548/2018) participated,
corresponding
to 77.76%
of the
paid-up share
capital with
voting rights on the agenda items.
The General
Meeting:
1.
Approved, with a majority exceeding the minimum required by law, the Annual Separate and Consolidated Financial
Statements for the
financial year 2023, along with the
Directors’ and Auditors’ Reports.
2.
Approved,
with a majority
exceeding the
minimum required
by law,
the overall
management for
the financial
year
2023, as well as the
discharge of the Auditors for the
same period.
3.
Approved, with
a majority exceeding the minimum required
by law:
a)
The
appointment
of
KPMG
Certified
Auditors
S.A.
(KPMG)
as
the
statutory
auditor
for
the
Annual
and
Consolidated Financial Statements of the
Company for the
financial year 2024.
b)
The approval
of KPMG’s fees for the
2024 audit, amounting to €0.3 million.
4.
Approved,
with
a
majority
exceeding
the
minimum
required
by
law,
the
dividend
distribution
to
shareholders,
amounting to €342 million, from the “Special Reserves” account, and authorized the Board of Directors to undertake
all necessary actions for its implementation.
5.
Approved,
with
a
majority
exceeding
the
minimum
required
by
law,
the
amendment
of
Articles
8
and
9
of
the
Company’s Articles of Association, updating paragraphs
1 and 2 of Article 8 and paragraph 5 of Article 9.
6.
Approved, with
a majority exceeding the minimum required
by law:
a)
The addition
of a new
Article 11 to the
Company’s Articles of Association,
allowing for
the remuneration
of
Board
members
through
participation
in
the
profits
of
the
respective
financial year,
in accordance
with
Article 109(2) of Law 4548/2018.
b)
The renumbering
of Articles 11, 12, 13, 14, and 15 to Articles 12, 13, 14, 15,
and 16, respectively.
7.
Approved,
with
a
majority
exceeding
the
minimum
required
by
law,
the
distribution
of
€404,330
to
senior
management and employees of the
Company from the “Special
Reserves” account.
8.
Approved, with
a majority exceeding the minimum required
by law:
(i)
The cancellation
of 52,080,673 treasury shares, in accordance
with Article 49 of Law 4548/2018.
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(ii)
The reduction
of the Company’s share
capital by €11,457,748.06,
corresponding to the
nominal value of the
cancelled shares (€0.22 per share).
(iii)
The amendment
of Article 5 of the Company’s Articles of Association to reflect
the share capital reduction.
9.
Approved, with
a majority exceeding the minimum required
by law, in accordance
with Article 86 of Law 4261/2014,
a higher than 100% maximum level
of the ratio
between fixed and variable remuneration
for the CEO, three
Deputy
CEOs, Group Chief Risk Officer,
Group Chief Financial Officer,
General Manager
Group Strategy,
General Manager
Markets, and CEO of Eurobank Cyprus
Ltd & Head of International Activities & Group Private
Banking.
10.
Approved,
with a majority exceeding
the minimum required
by law,
the amendment
of the Remuneration
Policy for
Directors of the Company.
11.
Approved,
with a
majority exceeding
the minimum
required
by law,
the remuneration
paid to
Board members
for
the
financial year
2023,
for
their
roles
as Board
members
and Committee
members,
and the
remuneration
to be
paid for the financial year
2024.
12.
Casted a positive vote on the
Remuneration
Report for the financial year
2023.
13.
Approved,
with a
majority exceeding
the
minimum required
by law,
the
amendment
of the
Nomination
Policy
for
Board Directors.
14.
Approved, with
a majority exceeding the minimum required
by law:
(a)
The
election
of the
following
individuals as
Board
members,
with their
term
of office
expiring on
July 23,
2027,
extended until the conclusion of the
Annual General Meeting of 2027:
-
Konstantinos Vassiliou
-
Alice Gregoriadi
-
George Zanias
-
Stavros Ioannou
-
Fokion
Karavias
-
Evangelos Kotsovinos
-
Irene Rouvitha Panou
-
Cinzia Basile
-
Burkhard Eckes
-
John Hollows
-
Rajeev Kakar
-
Bradley Paul Martin
-
Jawaid Mirza
(b)
The appointment
of Alice Gregoriadi, Evangelos
Kotsovinos, Irene
Rouvitha Panou, Cinzia
Basile, Burkhard
Eckes, John Hollows, Rajeev
Kakar, and Jawaid Mirza as independent non-executive
Board members.
15.
Approved, with
a majority exceeding the minimum required
by law:
(a)
The Audit Committee
to function as a Committee of the
Board of Directors, composed of Board
members.
(b)
The Audit Committee to consist of five independent non-executive
Board members.
(c)
The term of office of the Audit Committee members to coincide with their term as Board members,
expiring
on July 23, 2027,
extended until the conclusion of the Annual
General Meeting of 2027.
16.
Was informed
on the Annual Activity Report of the Audit Committee
for the financial year
2023.
17.
Was informed
on the Independent Non-Executive Directors’
Report.
All
information
regarding
the
AGM
of
Eurobank
Holdings
can
be
found
on
the
Eurobank
Holdings
website:
Eurobank Holdings AGM
2024
.
4.2
Information about the
Eurobank General
Meetings
Following
the demerger,
Eurobank Holdings
became
the sole
shareholder
of Eurobank,
holding 100%
of its
share capital.
In
accordance
with
Article
121(5)
of Law
4548/2018,
a formal
invitation
to convene
a General
Meeting is
not
required
if the
meeting
is
attended
or
represented
by
shareholders
holding
the
entire
share
capital
and
none
of
them
objects
to
its
convening or decision-making.
In this context, the following
General Meeting of Eurobank
was held.
4.2.1
Annual General Meeting (AGM)
of the shareholders
The Annual
General
Meeting of Eurobank’s
shareholders
was held
on July 23,
2024, in Athens,
at Eurobank’s
Headquarters,
12
Stadiou
Street
&
2
Omirou
Street.
The
sole
shareholder,
Eurobank
Holdings,
participated,
representing
3,683,244,830
shares, corresponding to 100% of the
paid-up share capital with voting
rights on the agenda items.
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The General
Meeting:
1.
Approved
the Annual
Separate
and Consolidated Financial
Statements for
the financial
year 2023,
along with the
Directors’ and Auditors’ Reports.
2.
Approved the overall
management for the financial year 2023
and the discharge of
the Auditors for the same period.
3.
Appointed KPMG Certified Auditors S.A. as Auditors for the
financial year 2024.
4.
Approved the
amendment of Articles 8 and 9 of the Bank’s Articles of Association.
5.
Approved the
addition of a new Article 11 to the Bank’s Articles of Association regarding
the remuneration
of Board
members and the renumbering
of Articles 11, 12, 13, and 14 accordingly.
6.
Approved the
distribution of net profits to the
senior management and employees
of the Bank.
7.
Approved,
pursuant to
Article 86
of Law
4261/2014, a
higher
than 100%
maximum level
of the
ratio
between fixed
and variable remuneration
for nine executives.
8.
Approved the
remuneration
for the financial year 2023 and the
advance payment of remuneration
for the Directors
for the financial year
2024.
9.
Approved
the election
of a new
Board of
Directors due
to the
expiration
of the
term of
the current
Board and
the
appointment of independent non-executive Board
members.
10.
Determined the type and composition of the
Audit Committee.
11.
Was informed
on the Annual Activity Report of the Audit Committee
for the financial year
2023.
5.
Board of Directors
5.1
General
The
HoldCo/Bank are
managed by
their respective
Boards of
Directors (Board
or BoD), which
bear collective
responsibility
for their long-term success. The Boards exercise their duties in compliance
with Greek legislation, international best practices,
their Articles of Association, and the
legitimate decisions of the shareholders’
General Meetings.
The Board’s role
is to provide entrepreneurial
leadership to the Group
within a framework
of prudent and effective
controls,
enabling the identification, assessment, and management of risks. It establishes the Group's strategic objectives, ensures the
availability
of
financial
and
human
resources
necessary
to
achieve
these
objectives,
and
evaluates
management
performance.
Additionally,
the
Board
defines the
Group’s
values and
standards,
ensuring that
its responsibilities
towards
shareholders and other
stakeholders are
recognized and fulfilled.
All Board members are
required to act in the best interests
of the Group, in full alignment
with their legal duties.
5.2
Composition of the Board
The
members
of the
Board are
elected by
the General
Meetings of Eurobank
Holdings and
Eurobank,
which determine
the
exact number of directors and their term of office, in accordance with legal provisions
and the Articles of Association of both
entities. The
General Meetings also designate
the independent non-executive directors.
During 2024:
●
The Boards of Directors of
HoldCo and Eurobank, by their
decisions dated May
30, 2024, and
June 28, 2024,
following
the respective
recommendations of the
Nomination and Corporate
Governance Committees (NomCos) on May 28,
2024, and
June 26,
2024, proposed
to the
Annual General
Meetings (AGMs)
of July
23, 2024,
the appointment
of
Mr. Evangelos Kotsovinos
as an independent non-executive director (iNED) of the
BoDs.
●
Following
the announcement by
Mr. Georgios
Chryssikos (Non-Executive Director,
Vice Chair of the previous
Board)
regarding his decision
not to seek
renewal of
his term, the
necessity of the
Vice Chair
role
was reviewed.
The BoDs
of
HoldCo
and
Eurobank,
in
their
meetings
dated
May
30,
2024,
and
June
28,
2024,
following
the
NomCos'
recommendations
on May 28,
2024, and June
26, 2024,
decided to discontinue
the role
of Vice
Chair on the
BoDs
and certain Committees
(NomCo, RemCo, and BDTCo)
upon the conclusion
of Mr.
Chryssikos’ term.
Going forward,
in the event of the Chair’s absence
or impediment, the most senior iNED present at the meeting—based on tenure—
shall assume the Chair’s duties.
●
Due to the expiration of the Boards’ tenure,
the AGMs of HoldCo and Eurobank on July 23, 2024, appointed the new
Boards for
a three-year
term, extending until
the AGMs
of 2027.
The AGMs
also designated the
independent non-
executive members
of the
Boards. The
new BoDs,
in accordance
with the
BoD decisions
dated May
30, 2024,
and
June 28,
2024, following
the
NomCos' recommendations
on May
28, 2024,
and June
26,
2024, comprised
the
re-
election of twelve (12) previous
Board members and the
election of one (1) new member,
Mr. Evangelos Kotsovinos.
●
In accordance
with the
above
AGM decisions
and the
NomCos’ recommendations
dated May
28, 2024,
and June
26, 2024, the new BoDs, in their meeting of
July 23, 2024, decided on
their constitution, the appointment of the Chief
Executive
Officer
(CEO) and
Deputy Chief
Executive
Officers
(DCEOs), and
the
designation
of executive
and non-
executive directors.
For efficiency
reasons, the composition of HoldCo’s
BoD is identical to that of Eurobank’s
BoD.
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Following
these
developments,
as
of
the
date
of
approval
of
this
Statement,
the
current
Boards
consist
of
thirteen
(13)
directors, categorized as follows:
●
Three (3) executive directors,
●
Two (2) non-executive
directors, and
●
Eight (8) independent non-executive directors.
Name
Position
Eurobank Holdings
Eurobank
First
appointment
End of
Term
First
appointment
End of
Term
Georgios P.
Zanias
Chairperson, Non-Executive Director
Mar. 2019
2027
Mar. 2020
2027
Fokion
C. Karavias
Chief Executive Officer
Jun. 2014
2027
Mar. 2020
2027
Stavros E. Ioannou
Deputy Chief Executive Officer
Apr. 2015
2027
Mar. 2020
2027
Konstantinos V.
Vassiliou
Deputy Chief Executive Officer
July 2018
2027
Mar. 2020
2027
Bradley Paul L. Martin
Non-Executive Director
Jun. 2014
2027
Mar. 2020
2027
Rajeev K. L. Kakar
Non-Executive Independent Director
July 2018
2027
Mar. 2020
2027
Jawaid A. Mirza
Non-Executive Independent Director
Jun. 2016
2027
Mar. 2020
2027
Alice K. Gregoriadi
Non-Executive Independent Director
Apr. 2020
2027
Apr. 2020
2027
Irene Rouvitha Panou
Non-Executive Independent Director
Apr. 2020
2027
Apr. 2020
2027
Cinzia V.
Basile
Non-Executive Independent Director
Dec. 2020
2027
Dec. 2020
2027
Burkhard Eckes
Non-Executive Independent Director
Jul. 2023
2027
Jul. 2023
2027
John Arthur Hollows
Non-Executive Independent Director
Jul. 2023
2027
Jul. 2023
2027
Evangelos Kotsovinos
Non-Executive Independent Director
Jul. 2024
2027
Jul. 2024
2027
5.3
CVs of Board Board
members and Secretary
The short
CVs of the
HoldCo and Eurobank
Board members,
summarized below,
demonstrate that
the Boards’
composition
aligns with
the knowledge,
skills, and
experience
necessary for
the effective
execution of
their duties.
This is
in accordance
with the Board Nomination
Policy and the business model
and strategy of HoldCo and Eurobank.
Additionally, the directorships held by HoldCo and Eurobank Board members as of December 31, 2023, are outlined
in Section
"Directorships of Board Members".
Georgios Zanias - Chairperson, Non-Executive
Director
-
Membership in Board Committees: Nomination and Corporate
Governance Committee
– Member
-
Year of birth: 1955
-
Nationality: Hellenic
-
Number of shares in Eurobank
Holdings: None
Mr. Zanias
joined Eurobank
as the
Chairman of the
Board of Directors
in 2019.
He is also a
Professor
Emeritus of
Economics
at the Athens University
of Economics and Business and a Member of the
Board of IOBE.
In the past, Mr Zanias has served
as the Minister of Finance
(2012), Chairman of the Board of Directors
of the National
Bank
of Greece
(2012-2015), Chairman of
the Board
of the
Hellenic Banking Association
(2012-2015), Member
of the Board
of the
European Banking Federation
(2012-2015), Member of the Board of
the American-Greek Chamber of Commerce ( 2019-2022),
Chairman of
the
Council of
Economic Advisors
at the
Ministry of
Finance (2009-2012),
General
Secretary of
the
Ministry of
Economy and Finance (2001-2004), Chairman and Scientific Director of the
National Economic Institute (KEPE) (1998-2001).
He has also served
as a Director on
the Boards
of Hellenic Exchanges (2000-2001),
Public Debt Management Office
(PDMA)
(2009-2012),
General
Bank
(1997-1998),
CHIPITA
SA
(2015-2019),
the
European
Financial
Stability
Mechanism
(EFSF/ESM)
(2010-2012). Also: Member of the Board
of Governors of the
Black Sea Trade
and Development Bank (2003-2004),
Alternate
Governor
of
the
Board
of
Governors
of
EBRD
(2002-2004),
Member
of
the
European
Securities
Committee
(2001-2002),
Member of
the
Monetary Policy
Committee of
the
Bank of
Greece
(May-July 2012),
Chairman of
the
Board of
Directors of
Piraeus Real Estate SA and Picar SA (2017-2019), Vice
Chairman of the Board of ETVA
Industrial Zone SA (2018-2019).
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He holds a Doctorate from Oxford University,
an M.Sc. for the University of Reading and a B.Sc. from the Athens University
of
Economics and Business.
Fokion
Karavias-Chief Executive Officer
(CEO)
-
Membership in Board Committees: None
-
Year of birth: 1964
-
Nationality: Hellenic
-
Number of shares in Eurobank
Holdings: 775,878
Mr. Karavias
joined Eurobank in 1997 and served,
inter alia, as Member of the BoD of Eurobank
Private Bank Luxembourg SA
(2012-2022),
Senior
General
Manager,
Group
Corporate
&
Investment
Banking,
Capital
Markets
&
Wealth
Management
(2014-2015) and Executive
Committee Member (2014-2015),
General Manager and Executive Committee
Member (2005-2013),
Deputy General Manager
and Treasurer
(2002-2005), Head of fixed income and derivative product
trading (1997).
In the past,
Mr. Karavias
had also the
following
significant posts: Treasurer
of Telesis
Investment Bank (2000),
Head of fixed
income products
and derivatives
in Greece of
Citibank, Athens
(1994) and has also
worked in
the Market
Risk Management
Division of JPMorgan NY (1991).
He currently
also serves
as Vice
Chairman of
the
Board of
Directors ofHellenic
Bank Association
(HBA) ,
as Member
of the
General Council of the Hellenic
Federation
of Enterprises (SEV)
and as
Honorary Member of The Greek Tourism Confederation
(SETE).He holds a PhD in Chemical Engineering from the University of Pennsylvania, Philadelphia, USA and
an MA in Chemical
Engineering from
the same
university,
as well
as a Diploma
in Chemical
Engineering from
the National
Technical
University
of Athens. He has published articles on topics related
to his academic research.
Stavros Ioannou-Deputy Chief Executive Officer
(CEO), Group Chief Operating
Officer (COO) & International
Activities
-
Membership in Board Committees: Board Digital and Transformation
Committee - Member
-
Year of birth: 1961
-
Nationality: Hellenic
-
Number of shares in Eurobank
Holdings: 358,145
Mr.
Ioannou holds
several
other
posts in
the
Eurobank
Group as
Head of
International
Activities &
Group Private
Banking,
Member of the BoD
of Eurobank Private Bank
Luxembourg S.A (since October 2024),
Member of the BoD
of Eurobank Bulgaria
AD (since October 2015), Vice-Chairman in Eurobank
Cyprus Ltd (since November 2022) and is also the Chairman of the BoD
inBE-Business
Exchanges
SA
(since
January
2014).
He
has
been
appointed
as
the
responsible
BoD
member
of
Eurobank
Holdings and Eurobank for
climate-related and environment
al risks and for the outsourcing
function.
He is currently Non-Executive Board
member of Grivalia Management Company S.A. (since
September 2019).
In the past,
Mr. Ioannou
had also the following
significant posts: he
was appointed Chief Executive
Officer
at Eurobank
A.D.
Beograd (2005-2008), Chairman of the
Executive Committee in the
Hellenic Banking Association (2020-2022)
where he had
been member since
2013, Vice
Chairman at Cardlink SA
(2013-2015), Member of
the BoD in Millennium
Bank, responsible for
Retail,
Private
Banking and
Business
Banking
(2003),
Head at
Barclays
Bank
PLC,
responsible
for
Retail
Banking,
Private
Banking and Operations (1990
-1997).
He holds an MA in Banking
and Finance from
the University
of Wales, UK
and a Bachelor Degree
in Business Administration
from the University
of Piraeus.
Kostas Vassiliou
-Deputy Chief Executive Officer
(CEO), Head of Corporate & Investment
Banking
-
Membership in Board Committees: None
-
Year of birth: 1972
-
Nationality: Hellenic
-
Number of shares in Eurobank
Holdings: 356,617
Mr.
Vassiliou
holds several
other
posts in the
Eurobank
Group as
Chairman of the
BoD of Eurobank
Factors Single
Member
SA (since December 2018),
Member of the BoD
of Eurobank Equities
Single Member SA (since March
2015). He also serves as
Vice-Chairman of
the BoD
of Eurolife
FFH Insurance
Group Holdings
SA (since
January 2021), Eurolife
FFH Life
Insurance SA
(since December 2020) and Eurolife
FFH General Insurance
SA (since December 2020).
In
the
past,
Mr.
Vassiliou
had
also
the
following
significant
posts:
Country
Manager
for
Greece,
Cyprus
and
the
Balkans,
Mitsubishi
UFJ
Financial
Group,
London
(2000-2005)
and
Senior
Relationship
Manager,
Mitsubishi
UFJ
Financial
Group,
London (1998-2000).
He holds an MΒΑ from
Boston University,
USA and a BA in Business
Administration from
the Athens
University of Economics
and Business.
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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Alice Gregoriadi-Independent Non-Executive Director
-
Membership in Board Committees: a) Audit Committee – Member, b) Remuneration Committee – Member,
c) Board
Digital and Transformation
Committee – Chairwoman
-
Year of birth: 1968
-
Nationality: Hellenic
-
Number of shares in Eurobank
Holdings: None
Mrs. Gregoriadi also serves
as an Affiliate Partner
– Management Consultant at True
North Partners
LLP,
London, UK and is
a Non-Executive Board Director at Climate
Governance Initiative
Greece.
In the past, Mrs.
Gregoriadi had also the
following significant
posts: Hellenic Corporation
of Assets & Participations
(HCAP),
Greece,
Non-Executive
Board
member,
Audit
Committee
member,
Corporate
Governance
and
Nominations
Committee
member (February
2017 – February
2021), JPMorgan, London, UK, various
posts as Managing Director
(February 2010
– May
2015), IBOS Board Director (April 2010 – August 2014), ABN
Amro Bank, Amsterdam, Netherlands & London, UK, various posts
as Managing
/
Executive
Director
(November
2001
–
December
2009),
Citibank NA,
London,
UK,
various
Senior
Executive
Director
posts (February
1994
–
August
2001),
Clearing
House
Automated
Payments
System
(CHAPS),
UK,
Board
Director
(June 1997 – July 2000).
She holds
an MBA from
the Manchester
Business School, UK (1991-1993),
including an MBA international
exchange program
from
the
E.J.Cox
School
of Management,
Texas,
USA
–
(1992),
an
Executive
Certification
on
Blockchain
for
business
from
University
College
London
(2019),
an
Executive
Certification
on
eCommerce
from
the
Darden
School
of
Business,
Virginia
University, USA (2000)
and a BSc in Business Administration from
the The American
College, Athens, (1987-1990).
Rajeev Kakar-Independent Non-Executive Director
-
Membership
in
Board
Committees:
a)
Audit
Committee
–
Member,
b)
Board
Risk
Committee
–
Chairman,
c)Nomination & Corporate Governance
Committee – Member
-
Year of birth: 1963
-
Nationality: Indian
-
Number of shares in Eurobank
Holdings: None
Mr. Kakar is a senior international
banker with 37 years
of financial services experience, and currently
also serves as a board
member
of several
Financial Institutions-
including Commercial
International
Bank (Egypt),
Gulf International
Bank Group
Board
(Bahrain),
Gulf International
Bank (Saudi
Arabia) and
is also
a Global
Advisory Board
member
at the
University
of
Chicago’s Booth School of Business. In the past Mr. Kakar has also
served as board member on several international financial
institutions/bank
boards
-
eg.,
as
Board
Member
of
Visa
International
CEEMEA
(United
Kingdom
2004-2006),
Global
Management
Board
member
of
Fullerton
Financial
Holdings
(Singapore
2006-2018),
Board
member
of
UTI
AMC
in
India
(2019-2024), Chairman
of the
BoD, Fullerton
Securities &
Wealth
Advisors (New
Delhi, India
2008-2017), board
Member of
Fullerton India Credit Company (India
2009-2017), Member of the Board of
Commissioners, Adira Dinamika Multi Finance Tbk,
subsidiary of Bank Danamon (Indonesia 2010-2013), etc.
Between 2006-2018, Mr. Kakar served as the Global Co-Founder
of Fullerton Financial Holdings (Singapore) - a wholly owned
subsidiary of Temasek
Holdings, Singapore.
In this
role,
he also
concurrently
served as
Fullerton’s
Global CEO
of Consumer
Banking, Regional CEO for
Central Europe,
Middle East and Africa, and also
as the Founder,
Managing Director and CEO of
Dunia Finance (Fullerton’s UAE subsidiary). Prior to 2016, he was
at Citibank for 20 years working across various countries and
held various senior
management positions, including,
his most recent
Citibank assignment where
he served
as the Regional
CEO & Division Executive for Citibank-Turkey,
Middle East and Africa until Jan 2006.
Mr. Kakar holds an MBA, Finance
& Marketing from the
Indian Institute of Management, Ahmedabad (India) and a Bachelor
of Technology,
Mechanical Engineering from
the Indian Institute of Technology
(India).
Bradley Paul Martin-Non-Executive
Director
-
Membership in Board Committees: None
-
Year of birth: 1959
-
Nationality: Canadian
-
Number of shares in Eurobank
Holdings: 122,500
In the past Mr. Martin has also served
as: Vice President of Fairfax
Financial Holdings (1998 - 2024), Vice President, Strategic
Investments
of Fairfax
Financial
Holdings (2012
- 2024),
Member
of the
BoD, Bank
of Ireland
(2013-2017), Chief
Operating
Officer (COO), Fairfax
Financial Holdings (2006-2012) and Partner,
Torys LLP law firm (before
1998).
Mr. Martin also
serves as Non-Executive
Director,
of AGT Food
and Ingredients Inc. and as a
Non-Executive Director,
of Blue
Ant Media Inc
He holds a ΒΑ from Harvard University,
USA and an LLB from the University
of Toronto,
Canada.
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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Jawaid Mirza-Independent Non-Executive Director
-
Membership in
Board Committees:
a) Audit Committee
– Vice
Chairman, b) Nomination
& Corporate
Governance
Committee – Member, c) Remuneration
Committee – Member
-
Year of birth: 1958
-
Nationality: Canadian
-
Number of shares in Eurobank
Holdings: None
Mr. Mirza is a strong proponent and practitioner
of international corporate governance
and brings with him over 35 years of
diversified
experience
and
a
solid
track
record
in
all
facets
of
financial
and
risk
management,
technology,
mergers
and
acquisitions,
business turnarounds and operation
management.
In the past,
Mr. Mirza
was also the lead
Director with Commercial
International Bank of Egypt,
as well as Independent
Non-
Executive
Director
with
South
Africa
Bank
of
Athens
(Johannesburg).
He
also
served
Commercial
Bank
of
Egypt
(CIB)
as
Managing
Director
&
CEO
of
Consumer
Banking
and
Group
COO.
Over
the
years,
Mr.
Mirza
has
worked
with
global
institutions like Citibank and ABN
AMRO Bank Ltd
where he held several senior positions as CFO European Region, Managing
Director
and
Chief
Operating
Officer
for
Global
Private
Banking,
Asset
Management
and
New
Growth
Markets,
Chief
Financial Officer for
Asian region including Australia/New Zealand and Middle
East.
Mr. Mirza led several
due diligences for
acquiring banks in Europe,
Asia, and Latin America.
Mr. Mirza
was also a member
of the
Top Executive
Group (TEG)
of ABN
AMRO Bank as well as member of the
Group Finance and Group COO Board.
Mr.
Mirza also
serves
as Non-Executive
Independent Director
of AGT
Food
& Ingredients
(Canada), IDRF
(Canada) and
as
Non-Executive Independent Director of Commercial
International Bank (CIB) (Egypt).
Mr.
Mirza
holds
various
business
management
courses
from
reputable
institutions
like
Queens
Business
school,
Wharton
Business school, Stanford Graduate School of Business and
is also a member of
the Institute of Corporate Directors, Canada.
Irene Rouvitha Panou-Independent Non-Executive
Director
-
Membership
in Board
Committees:
a)
Nomination
& Corporate
Governance
Committee
–
Chairwoman,
b)
Audit
Committee – Member, c) Remuneration
Committee - Member
-
Year of birth: 1958
-
Nationality: Cypriot
-
Number of shares in Eurobank
Holdings: None
Mrs. Rouvitha Panou is an accomplished international leader with over
three decades of cross-border
financial experience in
strategy,
governance,
audit,
and
organizational
transformation.
She
has
driven
sustainable
organizational
growth
by
developing and
implementing strategic
initiatives, leading
corporate
turnarounds, enhancing governance
frameworks,
and
fostering
innovation,
also contributing
to the
drastic
upgrade
and digital
evolution
of key
services
in Cyprus,
a country
of
strategic
importance
to
Eurobank.
Her
career
spans
across
Cyprus,
the
UK,
Greece,
Romania,
Australia,
and
the
USA,
demonstrating broad
international exposure
in banking and financial services.
In
the
past, she
was Chair
of
the
Board
of Cyta
(Cyprus’
leading integrated
electronic
communications
provider)
for
two
consecutive
tenures
(July
2016-July
2021),
Chair
of
the
Management
Committee
of
the
Pensions
&
Grants
Fund
of
the
Personnel
of Cyta (January
2019-July 2021),
Chair of the
Board of
the Cyprus
Development
Bank following
its privatization
(September 2008-April 2014) and
Board Member of the Cyprus Employers and
Industrialists Federation (May 2020-July 2021).
She
was
Independent
Non-Executive
Director
and
Board
Committees
Chair/Member
of
the
Cyprus
Asset
Management
Company KEDIPES (March 2023-June 2024),
Alpha Bank subsidiaries in Romania, Cyprus and Greece
(November 2014-April
2020) and Vassiliko Cement
public company (February
2012-October 2014). She was Managing Director
of Laiki Bank Hellas
SA (April 2002-November 2006) and Group General Manager of Cyprus
Popular Bank (HSBC associate
bank) (January 2000-
November
2006)
also
serving,
among
others,
as
Group
Board
Director
and
Board
Member
of
the
Group’s
banking
subsidiaries in
Greece
and Australia.
Between
June 1984
and September
1991, she
worked
in Boston
USA, where
she held
senior positions in the field of management and
financial services consulting.
Mrs. Rouvitha Panou is also a committed board member
in academic and philanthropic organizations,
serving as a Member
of
the
Board
of
Trustees
of
the
UK-based
Stelios
Philanthropic
Foundation,
a
Member
of
the
International
Advisory
Committee
of
Komvos
Global
Hellenism
Network,
and
a
Member
of
the
Advisory
Council
of
the
School
of
Economics
&
Management
at
the
University
of
Cyprus,
focusing
on
integrating
financial
industry
objectives
into
academic
research
priorities. Her
leadership at
Cyta included
effecting
major M&A
activities and
driving key
digital transformation
projects—
such
as
the
early
rollout
of
5G
and
Fiber-To-The-Home
(FTTH)
technologies,
smart
city
initiatives,
and
significant
ESG
projects—contributing to the modernization
of Cyprus’ telecommunications infrastructure.
She graduated
from the
London School of
Economics, UK (B.Sc.
Economics, Metcalfe
Scholar) with
postgraduate studies
at
the University of Cambridge, UK (M.Phil.
Economics) and the Massachusetts
Institute of Technology, USA (M.Sc. Management,
Fulbright Scholar).
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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Cinzia Basile-Independent Non-Executive Director
-
Membership in Board Committees:
a) Board Risk Committee
– Member, b) Remuneration Committee – Chairwoman,
c) Board Digital and Transformation
Committee – Member
-
Year of birth: 1971
-
Nationality: Italian and British
-
Number of shares in Eurobank
Holdings: None
Mrs Basile
is the
Chairperson of
Nikko
Asset Management
Europe
(NAME),
one
of Asia’s
largest
asset managers;
she
also
Chairs the HR Advisory Committee and is a member of the
Risk & Stewardship Committee.
Mrs
Basile is
a
highly
accomplished
financial
leader
with
deep
expertise
in
the
financial
sector,
asset
management,
and
strategic growth.
She serves as Chairman of My Community Bank, where
she has driven significant balance sheet
growth by
leveraging fintech solutions to promote financial
inclusion in underserved markets. In addition,
she is a
Non-Executive Director
at several
prominent financial institutions, including Zenith Global,
and Creditis Servizi Finanziari.
In the past, Mrs. Basile had also the following
significant posts: she set up and ran Credit Suisse AG’s Investment
Bank multi-
asset investment management business (Custom Markets) in the UK, Ireland and Luxembourg, Non-Executive Member
of the
BoD and Chair of the Operating
and Risk Committee of Credit Suisse Custom Markets, a sponsored
management company
of
Credit
Suisse
located
Luxembourg
(August
2011
–
August
2017),
Non-Executive
Member
of
the
BoD
and
Chair
of
the
Operating of Custom Markets plc and Custom Markets QIAF,
sponsored management companies of Credit Suisse located in
Ireland (August
2011 – August
2017), Non-Executive
Member of the
BoD and Chair
of the
Operating
and Risk Committee
of
Custom Markets QIAF a subsidiary of Credit Suisse located in Ireland
(August 2011 – August 2017).
She is a
fellow at the CSaP's Dowling Policy Fellowship, Cambridge University. The fellowship's mission is to help public policy-
making address
the
major challenges
of the
21st century
by drawing
more
effectively
on the
best research,
evidence,
and
expertise. Fellows
share a
common interest
in advancing policies
that support
science, innovation,
and entrepreneurship
in
the public interest.
She holds a Juris Doctor Degree from the
University of Rome “La Sapienza”, Italy and she was awarded a Thesis
Scholarship
(derivative instruments), London School
of Economics, UK.
John Arthur Hollows-Independent, Non-Executive
Director
-
Membership in Board Committees: a) Board Risk Committee – Vice
Chairman, b) Board Digital and Transformation
Committee – Member, c) Remuneration
Committee - Member
-
Year of birth: 1956
-
Nationality: British
-
Number of shares in Eurobank
Holdings: None
Mr. Hollows served
for 26 years in the KBC Group as Member of the Boards of Directors, KBC Bank and KBC Insurance (2009-
2022),
Member
of
the
Executive
Committee,
KBC
Group
(2009-2022),
Chair
of
the
Board
of
Directors
of
Československá
obchodní banka, a.
s. (ČSOB) and CEO
(2014-2022), Member
of the Board
of Directors of KBC
Group N.V.,
Group Chief Risk
Officer
(2010-2014),
CEO,
Central
and Eastern
Europe
and Russia
(2009-2010),
Senior
General
Manager,
Banking,
Central
Europe Business
Unit, KBC Group,
Brussels (2006-2009), CEO,
Kereskedelmi
es Hitelbank Rt.,
Hungary (2003-2006), General
Manager,
Asia
Pacific,
KBC
Bank
N.V.
(1999-2003),
General
Manager,
Shanghai
Branch,
KBC
Bank
N.V.
(1997-1999)
and
Commercial Banking Head, Hong Kong Branch,
Kredietbank N.V (1996).
In the past. Mr. Hollows served at Barclays
Bank PLC as Chief
Manager, Taipei Branch (1991-1995), Head of International Trade
Services,
London
(1989-1991),
Manager,
Export
Finance
Department,
London
(1986-1989),
Corporate
Manager,
Watford
Branch (1984-1986), Assistant
Manager, Cost Control Unit, General Manager’s Office (1982-1984)
and Graduate Trainee (1978-
1982). He has also served as Chair, European Council of Commerce and Trade (1994-1995) and Deputy Chair, British Exporters
Association (1989-1991).
He holds a Master of Arts, Sidney Sussex College, Cambridge (law and economics).
Burkhard Eckes - Independent, Non-Executive
Director
-
Membership
in
Board
Committees:
a)
Audit
Committee
–
Chairman,
b)
Nomination
and
Corporate
Governance
Committee – Member, c) Board
Risk Committee - Member
-
Year of birth: 1960
-
Nationality: German
-
Number of shares in Eurobank
Holdings: None
Mr. Eckes served
for more than 30 years at PwC
as Senior Advisor, PwC Germany
and EMEA (Europe, Middle East and Africa)
(2022 - 2023), Global Banking and Capital
Markets (BCM) ESG Leader and member of the Global Financial Services (FS) ESG
Leadership Team
(2019 - 2022), responsible for
BCM activities in ESG consulting globally,
EMEA BCM Leader and member
of
the EMEA FS Leadership Team (2017 - 2022), responsible for
BCM client relationships, projects and strategy in consulting and
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assurance
services,
including
development
and
implementation
of
banking
strategies,
business
models,
supervisory
and
regulatory requirements
and practices,
governance,
risk management,
accounting and reporting
best practices,
ESG, bank
restructuring
and bank
transformation
advice,
Member
of the
Global
BCM Leadership
Team
(2009
- 2022),
German BCM
Leader
and member
of the
German
FS Leadership
Team
(2009 -
2018), responsible
for
consulting and
assurance
services,
including HR,
people development
and statutory
audits of
large German
banks, Chair
of the
Global Banking
International
Accounting Group (2002 - 2023) and Partner
(1996 - 2022).
Mr. Eckes
also serves as Member
of the Supervisory Board
of Bayerische
Landesbank (Munich) (since May 2024),
as Member
of the
Supervisory
Board and
Chair of
the
Audit Committee
of Bank
Pictet &
Cie (Europe)
AG, Frankfurt
(since June
2023)
and as Member of the Supervisory Board
and Chair of the Risk and Audit Committee of Solaris SE, Berlin (since
April 2023).
n the
past, Mr.
Eckes has
served as
Chair of
the Banks
Working
Party of
Accountancy Europe
(former
FEE -
Fédération
des
Experts Comptables Européens) (2015 - 2022), Chair of the Banking Committee (Bankenfachausschuss
– BFA) of the German
Institute of Public
Auditors (Institut der Wirtschaftsprüfer - IDW) (2017 - 2022) and member of the BFA (2008 - 2022), Member
of
the
European
Parlamentary
Financial
Services
Forum
-
EPFSF
(2012
-
2023)
and
Member
of
the
Steering
Committee
Sustainability of IDW (2020 - 2022).
He
holds
an
MBA
from
the
University
of
Saarland,
Saarbrücken
(1986)
and
is
a
Certified
Public
Auditor
(German
Wirtschaftsfprüfer)
(1996).
Evan Kotsovinos-Independent, Non-Executive
Director
-
Membership
in
Board
Committees:
a)
Board
Risk
Committee
–
Member,
b)
Board
Digital
and
Transformation
Committee – Member
-
Year of birth: 1979
-
Nationality: Greek
-
Number of shares in Eurobank
Holdings: None
Mr. Kotsovinos also serves as Vice President of Engineering and General
Manager, Google, New York (since November 2022).
In the past. Mr. Kotsovinos served
at American Express, New York
as Senior Vice President and Global Head of Infrastructure,
(2019-2022). He also held senior management positions at Morgan Stanley: Asia
Chief Information Officer,
Hong Kong (2018-
2019),
Head
of
Asia
Infrastructure,
China
CIO,
Hong
Kong
and
Shanghai
(2014-2018),
Head
of
Infrastructure
Hungary,
Executive Director,
Budapest (2013-2014), EMEA CTO of Infrastructure,
Global CTO of Cloud, Executive
Director (2012-2014).
He holds
a Masters
in Finance
(2010-2012), London
Business School,
a PhD
in Computer
Science (2001
-2004), University
of
Cambridge and a BSc in Computer Science (1997-2001), University
of Crete.
The Board is served
by a competent and experienced company secretary,
the short CV of whom is outlined below:
Ioannis Chadolias-Secretary to the BoD,
Head of Group Company Secretariat
-
Secretary to the following Board Committees: a)
Remuneration Committee, b) Nomination & Corporate Governance
Committee, c) Board Digital and Transformation
Committee
-
Year of birth: 1970
-
Nationality: Hellenic
-
Number of shares: 30,000
Mr. Chadolias is responsible to lead the
Group Company Secretariat unit and provide
effective company secretarial
support
to
the
Board
and
Board
Committees
of
Eurobank
and
Eurobank
Holdings
as
well
as
to
their
most
important
Executive
Committees, ensuring compliance with corporate
law and regulations and maintaining
effective corporate
governance
and
internal policy framework.
With
nearly three
decades of
experience
in corporate
governance,
compliance, and
financial services,
he previously
served
as Deputy
Company Secretary
of Eurobank
and Eurobank
Holdings (2016–2021)
and led the
Group Corporate
Governance
Division (2009–2016).
Earlier roles
at Eurobank
include Subsidiaries
Control
and Compliance
Manager (2006–2009).
Before
joining
the
Bank,
he
held
managerial
positions,
among
others,
at
Megatrust
(a
stockbroker
company-member
of
Interamerican
group)
and
Cosmote
(the
largest
telecommunications
group
in
Greece),
while
he
began
his
career
as
an
auditor and business consultant at PwC.
He holds an MSc in Project Analysis, Finance, and Investment from
the University of York
and a Bachelor's in Economics from
the Athens University
of Economics and Business and several
professional qualifications.
5.4
Re-election, Cessation, and Independence of Board
Members
There
are
no
limitations
on
the
re-election
or
cessation
of
Directors
in
the
Articles
of
Association
of
Eurobank
Holdings
(HoldCo)
and Eurobank.
In
cases
where
a Board
member’s
term
has expired,
the
Board
retains
the
authority
to continue
managing
and
representing
the
HoldCo/Bank
without
immediately
replacing
the
expired
members,
provided
that
the
remaining members
constitute more
than half
of the
original number
of members
before
the lapse
event
and, in any
case,
are not fewer
than three (3).
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As stipulated in the
Articles of Association
of HoldCo and Eurobank,
and in compliance with
Law 4548/2018, the
Board may
consist
of
three
(3)
to
fifteen
(15)
members.
Additionally,
in
accordance
with
Law
4706/2020
on
corporate
governance,
independent non-executive
directors are
appointed by
the
General
Meeting and must
constitute at
least one-third
(1/3) of
the total number of Board members
(rounded to the nearest integer),
with a minimum of two (2) independent non-executive
directors.
For the
year 2024, the Nominations and Corporate
Governance Committees of HoldCo and Eurobank,
in their meetings held
on May 28, 2024, and November 26, 2024, reviewed
the independence criteria in accordance with Law 4706/2020, European
Commission
Recommendation
2005/162/EC,
and
the
Executive
Committee
Act
of
the
Bank
of
Greece
No.
224/23.12.2023
(BoG ECA 224/2023),
which incorporated the Joint ESMA
and EBA Guidelines
on the Assessment of
the Suitability of Members
of
the
Management
Body
and
Key
Function
Holders.
The
Committees
concluded
that
the
Independent
Non-Executive
Directors meet the
applicable independence criteria.
5.5
Division of responsibilities
At the top level
of Eurobank Holdings
and Eurobank,
there
is a clear separation
of responsibilities between
governance
and
executive
management.
The
Chairperson
oversees
the
governance
functions,
while
the
Chief Executive
Officer
(CEO)
and
Deputy CEOs
manage the
operational
and managerial
aspects of
the
organization.
Importantly,
the
roles
of Chairperson
and CEO are held by different
individuals, ensuring a balanced and effective
leadership structure.
5.5.1
Chairperson
The
Chairperson
of
the
HoldCo
and
Eurobank
Boards
is
a
Non-Executive
Director
and
does
not
concurrently
serve
as
Chairperson of the Risk or Audit Committees. Elected by all Board members,
including Independent Non-Executive Directors,
in accordance
with Law 4548/2018
and the Articles
of Association, the
Chairperson presides
over
Board meetings,
ensuring
their effective
organization and operation.
The Chairperson’s
responsibilities include:
●
Organizing and coordinating the work
of the Board.
●
Setting the Board’s agenda and ensuring adequate time
for discussions, particularly
on strategic matters.
●
Promoting a culture of open-mindedness and constructive
dialogue.
●
Facilitating and promoting good relationships
among Board members and ensuring the effective
contribution of all
Non-Executive Directors.
●
Ensuring that Directors receive
accurate, timely,
and clear information and that
their developmental
needs are met
to enhance Board effectiveness.
●
Maintaining continuous communication
with representatives
of the
Ministry of Finance,
the Bank
of Greece
(BoG),
and other public authorities.
●
Ensuring that the Board
as a whole has a satisfactory understanding of shareholder
views.
●
Ensuring
effective
communication
with
all
shareholders,
promoting
fair
and
equitable
treatment,
and
fostering
constructive dialogue to understand their perspectives.
●
Working
closely
with
the
CEO
and
the
Corporate
Secretary
to
prepare
Board
meetings
and
ensure
that
Board
members are fully informed.
It is noted that the Board
has not appointed a Senior Independent Director (SID).
5.5.2
CEO
The CEO of HoldCo and Eurobank is responsible for the development and execution of strategy in
alignment with the Group's
vision.
As
the
leader
of
the
organization,
the
CEO
is
accountable
for
driving
the
achievement
of
the
Group’s
goals
and
objectives, ensuring effective
implementation of strategic
initiatives and operational
excellence.
5.5.3
Executive Directors
The
Executive
Directors of
HoldCo and
Eurobank,
including the
CEO and
Deputy CEOs,
are responsible
for
the
day-to-day
management and oversight of the
Group, as well as for executing its strategy,
as defined by the Board. Their
responsibilities
include:
●
Regularly consulting with Non-Executive Directors
to assess the appropriateness of the
implemented strategy.
●
Providing
updates
to
the
Board,
in
collaboration
with
senior
managers,
regarding
market
conditions
and
other
developments affecting
HoldCo and Eurobank.
●
Promptly informing
the Board,
either jointly
or individually in
writing, by submitting
a report with
assessments and
proposals, in the event
of crisis situations or anticipated risks that may impact the
financial position of HoldCo and
Eurobank.
The CEO and Deputy CEOs fulfill their duties in
accordance with the Internal Governance
Control Manuals (IGCMs) of HoldCo
and
Eurobank,
which
are
endorsed
by
their
respective
Boards.
These
IGCMs
provide
a
comprehensive
framework
for
the
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governance,
direction,
and supervision
of HoldCo
and Eurobank,
ensuring compliance
with legal
and regulatory
corporate
governance standards.
5.5.4
Non-Executive Directors
The
Non-Executive
Directors
are
responsible
for
promoting
and safeguarding
the
interests
of HoldCo
and Eurobank
as a
whole. Their key
responsibilities include:
●
Monitoring and evaluating the strategy
and its execution, as well as assessing the achievement
of objectives.
●
Ensuring effective oversight
of executive members, including monitoring and evaluating
their performance.
●
Reviewing
and
providing
feedback
on
proposals
submitted
by
the
Executive
Directors,
based
on
available
information.
●
Approving, revising, and overseeing
the implementation
of the Group-level
remuneration
policy.
The Non-Executive Directors
have the authority to request, in accordance
with HoldCo’s and Eurobank’s
internal procedures,
direct
engagement
with
senior
management.
This
is
facilitated
through
regular
presentations
by
department
heads
and
service leaders.
The
Non-Executive
Directors
convene
at
least
once
a year,
or as
deemed
appropriate,
without
the
presence
of executive
members, to evaluate
their performance.
These meetings
do not constitute a formal
Board body or committee.
In 2024, the
Non-Executive Directors of HoldCo and Eurobank
held meetings on February
29,
2024, and October 23, 2024.
HoldCo and Eurobank encourage
Non-Executive Directors to remain well
-informed on all matters
handled by the respective
Board.
The Independent
Non-Executive Directors
are required
to submit their
own reports,
either
individually or collectively,
to the
Annual or Extraordinary General
Meeting of Shareholders, in addition to the
reports presented by the
Board.
5.6
Operation of the
Board
The operation of the Board, including its meeting protocols, decision-making processes, and procedural
guidelines, is defined
in the Internal Governance Control Manual (IGCM) of HoldCo and Eurobank. This manual, endorsed by the respective Boards,
is
designed
to
adhere
to
legal
and
regulatory
corporate
governance
standards,
while
also
incorporating
the
relevant
provisions of the
Articles of Association of HoldCo and Eurobank.
5.6.1
Board Meetings
The Board convenes
regularly on a quarterly basis and on an ad hoc basis whenever
required by law or the needs of HoldCo
and Eurobank. Each
year,
within the third
quarter of the
preceding year,
the Board
establishes an annual calendar
of Board
and
Committee
meetings,
along
with
an
annual
action
plan.
This
plan
is
adjusted
as
necessary
to
ensure
the
timely,
comprehensive,
and effective
execution
of responsibilities
and the
thorough
review
of all
matters
requiring
decisions.
Any
updates
or
modifications
to
the
annual
calendar
are
promptly
communicated
to
all
Board
and
Committee
members
to
facilitate their
planning.
Board meetings
are convened
with a notice
period of at
least two (2)
business days or five
(5) business days if
the meeting
is held outside the registered office of HoldCo or Eurobank,
in accordance with Company Law 4548/2018. The invitation must
clearly state the
agenda items. If
the agenda
is not explicitly
stated, decisions
may only be
made if all Board
members are
present or represented and no objections are
raised regarding the
meeting’s convocation
and decision-making. Documents
submitted to the Board are
typically circulated along with the
agenda.
5.6.2
Dissemination of Information
The
Board utilizes
technological tools
with necessary
security specifications
to facilitate
real-time information
sharing and
connectivity for Board members.
The CEO and senior management are responsible for ensuring that Board members have access to all necessary information
required for
the performance
of their duties at any time.
5.6.3
Quorum in the Board Meetings
The
Board is
considered
to have
quorum and
may conduct
valid meetings
when at
least half
plus one
of its
members
are
present
or
represented.
The
number
of
present
or
represented
members
may
not
fall
below
three
(3),
and
any
resulting
fraction when determin
ing quorum is disregarded.
Board
decisions are
made by
an absolute
majority of
the
Directors present
or represented.
In the
event
of a
tie vote,
the
Chairperson does not have a casting vote.
5.6.4
Board Decisions and Minutes
Decisions are made following discussions that fully address
the agenda items, ensuring
that all members present are satisfied
with the deliberations.
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Board
meeting
minutes
are
kept
by
the
Company
Secretary,
approved
at
subsequent
Board
meetings,
and signed
by
all
members
present.
Additionally,
the
drafting
and
signing
of
minutes
by
all
Board
members
or
their
representatives
is
considered equivalent to a formal
Board decision, even
in the absence of a preceding physical meeting.
5.6.5
Company Secretary
The Boards of HoldCo
and Eurobank are supported by
a capable, skilled, and experienced Company Secretary,
who ensures
adherence
to internal
procedures
and policies,
as well
as compliance
with relevant
laws and regulations,
thereby
enabling
the effective
and efficient operation
of the Boards.
The
Company Secretary
holds
a senior
management
position
and is
appointed or
dismissed by
the
Board,
based
on the
recommendation of the
Chairperson.
Serving as the head of the Group Company Secretariat, a unit
within Eurobank, the Company Secretary, in collaboration with
the Chairperson, is responsible for:
●
Ensuring prompt, transparent,
and comprehensive communication
with the Board and its Committees.
●
Managing the integration
of new Board and Committee members.
●
Organizing General
Meetings of Shareholders.
●
Facilitating communication
between shareholders
and the Board.
●
Facilitating communication
between the Board
and senior management.
Additionally,
the
Company
Secretary
provides
advice
to
the
Board,
through
the
Chairperson,
on
governance
matters,
ensuring adherence
to Board procedures.
All Board
members have
the right
to access
the advice
and services
of the
Company Secretary,
who is also
responsible for
facilitating their
orientation and supporting their professional
development.
5.7
Attendance of Board members
in the Board and Board
Committees
In accordance
with the
HoldCo/Bank Board
and Board
Committees Attendance
Policy
(please refer
to the
relevant section
in
this
report),
and
within
the
scope
of
the
HoldCo/Bank
Nomination
and
Corporate
Governance
Committee’s
(NomCo)
responsibility to regularly
monitor Board members'
attendance and assess
whether
escalation to
the Board
is necessary
in
cases of inadequate participation, the NomCo conducted reviews
of Directors' attendance on June 28, 2024, and December
16, 2024.
Furthermore,
in 2024,
the
average
attendance
rate
of Directors
of HoldCo
and Eurobank
at Board
and Board
Committee
meetings was as follows:
Company
Meetings
Average
ratio
of
Directors’ attendance
2024
2023
2024
2023
HoldCo
20
24
98.8%
96.4%
Bank
25
23
98.16%
96.3%
During 2024, at individual level, the
attendance of the Directors
to the Board, stood above
the 85% threshold.
In addition, it
is noted that
all Directors
with missed Board
attendances, provided
representation
proxies, leading
to an attendance
rate
(physical and under representation)
of 100%.
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In particular, the
Directors’ attendance rates
at the Board meetings
in 2024 were the
following:
Name
Eurobank Holdings Board
Eurobank Board
Eligible to
attend
Attended in person
(# and %)
Eligible
to
attend
Attended in person
(# and %)
Georgios
Zanias,
Chairperson,
Non-Executive
Director
20
20
100%
25
25
100%
Georgios
Chryssikos,
Vice-Chairperson,
Non-
Executive Director
1
11
11
100%
13
13
100%
Fokion
Karavias,
Chief Executive Officer
20
20
100%
25
25
100%
Stavros Ioannou,
Deputy Chief Executive Officer
20
20
100%
25
25
100%
Konstantinos
Vassiliou,
Deputy
Chief
Executive
Officer
20
20
100%
25
25
100%
Bradley Paul Martin,
Non-Executive Director
20
18
90%
25
24
96%
Rajeev Kakar,
Non-Executive Independent Director
20
19
95%
25
24
96%
Jawaid Mirza,
Non-Executive Independent Director
20
20
100%
25
24
96%
Alice
Gregoriadi,
Non-Executive
Independent
Director
20
20
100%
25
25
100%
Irene
Rouvitha
Panou,
Non-Executive
Independent
Director
20
20
100%
25
25
100%
Cinzia Basile,
Non-Executive Independent Director
20
20
100%
25
25
100%
Burkhard Eckes,
Non-Executive Independent Director
20
19
95%
25
25
100%
John
Arthur
Hollows,
Non-Executive
Independent
Director
20
19
95%
25
24
96%
Evangelos
Kotsovinos,
Non-Executive
Independent
Director
2
9
9
100%
12
12
100%
1
Mr. Georgios
Chryssikos decided not
to pursue renewal
of his term, therefore
he remained in
HoldCo/Bank BoDs until their
Annual General Meetings on 23.07.2024,
when the new
BoDs were appointed.
2
Mr. Evangelos Kotsovinos
was appointed as BoD member on 23.07.2024.
The
average
Director’s
attendance
rates
to
HoldCo’s
and
Eurobank’s
Board
Committees,
along
with
the
individual
attendance
rates
per
Board
Committee
are
presented
separately,
under
the
subsection
of
the
present
Corporate
Governance Statement,
referring
to the Board Committees.
5.8
Directorships of Board members
The
directorships
held
by
Board
members,
including significant
non-executive
commitments
to companies
and non-profit
organizations, are notified prior to appointment to the
Chairperson of the Nomination & Corporate Governance
Committee
(NomCo)
and/or
NomCo,
in
accordance
with
the
HoldCo
and
Bank
External
Engagements
Policy.
Additionally,
Board
members must notify the
Bank Group Company Secretariat of any changes to their
directorships as soon as they occur.
The
number of
directorships a
Board member
may hold
simultaneously is
regulated
by Article
83 of
Law 4261/2014.
Under
this provision, a Director
may not hold more than one of the
following combinations
of directorships at the same
time:
●
One (1) executive directorship with two
(2) non-executive directorships, or
●
Four (4) non-executive
directorships.
This restriction
does not apply
to directorships within
the Group.
Additionally,
the Bank
of Greece
(BoG), as the
competent
authority, may permit a Board
member to hold one (1) additional non-executive
directorship.
Furthermore,
directorships
in
organizations
that
do not
pursue
predominantly
commercial
objectives
are
not
counted for
regulatory purposes.
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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As
part
of
the
Board’s
overall
effectiveness
assessment,
through
which
NomCo
annually
evaluates
the
knowledge,
skills,
experience,
and
contribution
of
both
individual
Board
members
and
the
Board
collectively,
the
directorships
of
Board
members were
reviewed for
2024. This review
confirmed that all Board members
comply with the provisions
of the Law.
5.8.1
HoldCo
and
Eurobank
Board
Members’
Directorships
(including
Directorships
within
Eurobank
Group)
as
at
31.12.2024
Georgios Zanias – Chairperson, Non-Executive
Director
●
Foundation for
Economic and Industrial Research (IOBE) – Board Member¹
Fokion
Karavias – Chief Executive
Officer
●
Hellenic Bank Association (HBA) – Vice
Chairman¹
Stavros Ioannou – Deputy Chief Executive
Officer
●
Grivalia Management Company S.A. – Non-Executive Director
●
Be-Business Exchanges S.A. of Business Exchanges Networks and Accounting and Tax
Services – Chairman²
●
Eurobank Cyprus Ltd – Non-Executive
Director
●
Eurobank Private Bank Luxembourg
S.A. – Non-Executive Director²
●
Eurobank Bulgaria AD – Non-Executive
Director, Supervisory Board²
Konstantinos Vassiliou
– Deputy Chief Executive Officer
●
Hellenic Exchanges – Athens Stock Exchange S.A. – Non-Executive
Director
●
Marketing Greece S.A. – Non-Executive
Director¹
●
Eurolife FFH General
Insurance Single Member S.A. – Vice
Chairman, Non-Executive Director³
●
Eurolife FFH Life
Insurance Single Member S.A. – Vice
Chairman, Non-Executive Director³
●
Eurolife FFH Insurance
Group Holdings S.A. – Vice
Chairman, Non-Executive Director³
●
Eurobank Equities Investment
Firm Single Member S.A. – Non-Executive Director²
●
Eurobank Factors Single
Member S.A. – Chairman²
Bradley Paul Martin – Non-Executive
Director
●
Blue Ant Media Inc. – Non-Executive Director
●
AGT Food and Ingredients
Inc. – Non-Executive Director
Rajeev Kakar – Non-Executive Independent Director
●
Gulf International Bank, Bahrain
– Non-Executive Director
⁴
●
Gulf International Bank, Kingdom of Saudi Arabia
– Non-Executive Director
⁴
●
Commercial International
Bank (CIB) – Non-Executive Director
Jawaid Mirza – Non-Executive Independent Director
●
AGT Food and Ingredients
Inc. – Non-Executive Director
●
Commercial International
Bank (CIB) – Non-Executive Director
Alice Gregoriadi – Non-Executive Independent Director
●
Hellenic Blockchain Hub – Non-Executive Director¹
●
Climate Governance
Initiative – Non-Executive Director
Cinzia Basile – Non-Executive Independent Director
●
Creditis Servizi Finanziari S.p.A. – Non-Executive Director
⁶
●
Brent Shrine Credit Union (trading name
My Community Bank) – Non-Executive Chair of the Board¹
●
Zenith Service S.p.A. – Non-Executive
Director
●
Nikko Europe Asset Management
– Chairperson, Non-Executive Director
⁵
●
Nikko AM Global Umbrella Fund – Chairperson,
Non-Executive Director
⁵
●
Fincentro Finance S.p.A. – Non-Executive
Director
⁶
Irene Rouvitha Panou – Non-Executive
Independent Director
●
Stelios Philanthropic Foundation
– Member of the Board of Trustees¹
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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GOVERNANCE STATEMENT
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Burkhard Eckes – Non-Executive
Independent Director
●
Solaris SE – Non-Executive Member of the
Supervisory Board
●
Bank Pictet & Cie (Europe) AG – Non-Executive
Member of the Supervisory Board
●
Bayerische Landesbank – Non-Executive
Member of the Supervisory Board
John Hollows – Non-Executive
Independent Director
●
None
Evangelos Kotsovinos – Non-Executive
Independent Director
●
None
Explanatory Notes
¹ Organization that
does not pursue predominantly commercial
objectives.
² Company that belongs to HoldCo Group and,
along with directorships in other HoldCo Group companies, is considered one
(1) directorship for regulatory
purposes.
³
Company
that
belongs
to
Eurolife
FFH
Group
and,
along
with
directorships
in
other
Eurolife
FFH
Group
companies,
is
considered one (1) directorship for
regulatory purposes.
⁴
Company that
belongs to
Gulf International
Bank Group
and, along
with
directorships
in other
Gulf International
Bank
Group companies, is considered one (1) directorship
for regulatory purposes.
⁵
Company that belongs to Nikko Asset Management Group and, along with directorships in other Nikko Asset Management
Group companies, is considered one (1) directorship
for regulatory purposes.
⁶
Company that
belongs to
Columbus HoldCo
S.à.r.l.
Group and,
along with
directorships in
other
Columbus HoldCo
S.à.r.l.
Group companies, is considered one (1) directorship
for regulatory purposes.
5.9
Board Role and Responsibilities
The
principal duties
and responsibilities
of the
HoldCo/Bank’s Board
encompass a
wide range
of strategic,
oversight,
and
governance functions:
●
review,
guide, and approve the
strategy, major plans of action,
risk policy, business and restructuring
plans, and set
performance objectives,
●
monitor
performance
and
oversee
major
capital
expenditures,
acquisitions,
divestitures,
and
formation
of
new
entities, including special purpose vehicles,
●
ensure the availability of necessary financial
and human resources, as well
as an internal control system,
●
approve the
annual budget and monitor its implementation quarterly,
●
approve the
three-year business plan and monitor its implementation,
●
review
and approve
at least
annually the
risk strategy
and risk
appetite, ensuring
alignment with
overall
business
strategy and other
plans,
●
receive and discuss comprehensive
risk reports on a quarterly basis,
●
develop and deliver
objectives in agreed restructuring plans under
applicable laws,
●
provide oversight
to senior management and approve
corporate governance
practices and values,
●
set standards shaping corporate culture
and integrate desired culture into systems, policies,
and behaviors,
●
approve risk and capital
strategy and monitor CEO and Executive
Board implementation,
●
approve organization
chart and related policies as required by
law or internal processes,
●
ensure
rigorous
processes
for
monitoring
organizational
compliance
with
strategy,
risk
appetite,
laws,
and
regulations,
●
select, compensate, monitor, and replace
key executives as needed and oversee
succession planning,
●
align executive and board remuneration
with long-term interests of Group
and shareholders,
●
facilitate formal
and transparent board nomination
and election processes,
●
monitor and manage potential conflicts of interest among management, board,
and shareholders,
●
ensure integrity of accounting and financial reporting systems, including independent audit and control
systems,
●
review and monitor Non-Performing
Loans (NPL) and Non-Performing
Exposures (NPE) performance,
●
oversee disclosure and communication
processes,
●
determine appropriate level
of remuneration
for Board and Committees’ members
pending ratification,
●
address matters related
to new technologies and environmental
issues,
●
identify
and
engage
with
important
stakeholders,
understanding
their
interests
and
interactions
with
Group
strategy,
●
facilitate
open dialogue
with
stakeholders
and utilize
various
communication
channels
for
effective
engagement
and understanding.
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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These
duties
collectively
contribute
to
the
effective
governance,
strategic
direction,
risk
management,
and
sustainable
growth of the
HoldCo/Bank and its operations.
5.10
Main issues the Board dealt with
during 2024
In 2024, the Boards of HoldCo and Eurobank
conducted a comprehensive review
of the corporate strategy,
the main risks to
the business, and the system
of internal controls.
The
main issues
addressed
by the
Boards
of Directors
of Eurobank
Holdings
(HoldCo)
and Eurobank
in 2024
included the
following:
5.10.1
Eurobank Holdings
a) Governance
●
Proposed to the Annual General
Meeting (AGM) the appointment of a new Board of Directors
due to the expiration
of the previous
Board’s term and the designation
of independent non-executive members.
●
Approved the
new composition of Board Committees and their
revised Terms
of Reference.
●
Convened the Shareholders’
General Meeting.
●
Discussed the 2023 annual evaluation of the
Board and Board Committees and reviewed
the Action Plan.
●
Reviewed the
attendance of Directors at Board
and Board Committee meetings.
●
Non-Executive Directors
approved
the CEO’s
performance
evaluation
for
2023 and his
financial and non-financial
objectives for 2024.
●
Approved key
governance policies,
including:
o
CEO Succession Planning Policy
o
Board of Directors Diversity
Policy
o
Board Nomination Policy
(also submitted to the AGM for
approval)
o
Board and Board Committees Evaluation Policy
o
Group Governance
Policy
o
Related Parties Transaction
Policy
o
Key Function Holders
Selection and Appointment Policy
o
Anti-Bribery and Corruption Policy
o
External Engagements Policy
o
Insider Dealing Guidelines
o
Conflict of Interest Policy
o
C-Level Succession Planning Policy
o
Senior Management Selection and Appointment
Policy
●
Addressed remuneration
matters, including:
o
Approval
by Non-Executive
Directors of
the Remuneration
Policy,
the
Variable
Remuneration
Framework,
and the Group Variable
Remuneration
Pool.
o
Proposal to
the AGM
for approval
of the
Board and
Board Committees'
fees for
Non-Executive Directors,
the Remuneration Policy
for Directors, the Remuneration
Report for 2023, and the distribution of net profits
to senior management and employees.
●
Approved HoldCo’s
Internal Governance
Control Manual.
●
Received regular updates on Board
Committee matters.
●
Approved the
Board and Board Committees’ calendar
for 2025.
●
Approved and submitted to the
AGM the appointment of auditors for
the financial year 2024.
●
Discussed the 2024 Supervisory Review
and Evaluation Process (SREP)
assessment.
b) Strategic Issues, Corporate,
and Other Actions
●
Discussed various strategy matters.
●
Approved a share capital increase following
the exercise of stock option rights and amended Article 5
of the Articles
of Association in accordance with Article
113(3) of Law 4548/2018.
●
Approved
(subject
to
AGM
approval)
the
dividend
distribution
for
2023,
in
line
with
the
approved
Dividend
Distribution Policy.
●
Approved
an increase
in the
aggregate
principal
amount of
notes
issued
under
the
Medium-Term
Notes
(EMTN)
program.
●
Approved the initiation of the merger process for the absorption of Eurobank Holdings by Eurobank (Project Square).
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c) Capital Adequacy
●
Approved the
2024 Internal Capital & Liquidity Adequacy Statements (CAS & LAS) as part
of the Internal Capital &
Liquidity Adequacy Assessment Process
(ICAAP & ILAAP 2024).
●
Approved the
Minimum Requirement for
Own Funds and Eligible Liabilities (MREL) Plan 2025-2027.
d) Business Monitoring
●
Approved the
2023 annual financial statements and the 2024
interim financial statements.
●
Approved the
Annual Budget 2025 and the Three
-Year
Business Plan (2025-2027), including an adverse scenario.
●
Discussed the
Annual Budget
2025
and the
Three-Year
Business Plan
(2025-2027),
including assumptions
for
the
adverse scenario.
●
Reviewed 2024 performance
versus budget.
●
Discussed business developments and liquidity.
●
Approved the
Business and Capital Plan Policy and discussed the
top-down Business and Capital Plan 2024-2026.
e) Risk Management and Internal Control
●
Approved the
Group Chief Risk Officer
succession plan.
●
Acknowledged
the
annual
regulatory
reports
of
Group
Compliance
and
Group
Internal
Audit
on
the
System
of
Internal Controls (SIC).
●
Reviewed
the Independent
Triennial
Evaluation of
the
System of
Internal Controls
(SIC) under
Bank of Greece
Act
2577.
●
Received updates on significant internal
audit and compliance issues.
●
Reviewed significant legal
and regulatory matters.
●
Approved the
Risk Appetite Framework
2024 and Risk Appetite Statements.
●
Approved the
Risk Identification and Materiality Assessment
(RIMA) Framework
and Reports.
●
Approved the
updated Funding Plan, the Leverage
Coverage Ratio
(LCR), and the Net Stable Funding Ratio (NSFR)
forecast plan (2024-2026).
●
Addressed various issues related to Basel Committee on Banking Supervision
(BCBS) standard No. 239 (BCBS 239),
including:
o
Discussed the action plan for
the On-Site Inspection (OSI).
o
Approved the establishment of the Internal Validation
Function for Risk Data Aggregation & Risk Reporting
(RRDAR) purposes and its Validation
Framework.
o
Approved the
BCBS 239 Overarching Framework.
o
Approved the
Data Governance
Deployment Plan.
●
Approved the
consolidated Pillar 3 Reports (capital
and risk management disclosures)
for 2023, Q1
2024, Q2 2024,
and Q3 2024.
●
Received updates on significant risk issues,
including the Group Chief Risk Officer’s
Annual Report for 2023.
●
Reviewed the
2023 Annual Activity Report of the Audit Committee before
submission to the AGM.
●
Approved new
and revised risk policies and plans, including:
o
Revised Non-Financial Risk Management Policy
o
Revised Group Liquidity Risk Policy
o
Revised Market & Counterparty Risk Policy
o
Interest Rate Risk in the Banking Book
(IRRBB) & Credit Spread Risk in the Banking Book
(CSRBB) Policy
o
Outsourcing Policy
f) Transformation
Project
●
Received regular updates on the
transformation
project.
5.10.2
Bank
a) Governance
●
Proposed to the Annual General
Meeting (AGM) the appointment of a new Board of Directors
due to the expiration
of the previous
Board’s term and the designation
of independent non-executive members.
●
Approved the
new composition of Board Committees and their
revised Terms
of Reference.
●
Convened the Shareholders’
General Meeting.
●
Discussed the 2023 annual evaluation of the
Board and Board Committees and reviewed
the Action Plan.
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / CORPORATE
GOVERNANCE STATEMENT
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●
Reviewed the
attendance of Directors at Board
and Board Committee meetings.
●
Non-Executive Directors
approved
the CEO’s
performance
evaluation
for
2023 and his
financial and non-financial
objectives for 2024.
●
Approved key
governance policies,
including:
o
CEO Succession Planning Policy
o
Board of Directors Diversity
Policy
o
Board Nomination Policy
(also submitted to the AGM for
approval)
o
Board and Board Committees Evaluation Policy
o
Group Governance
Policy
o
Related Parties Transaction
Policy
o
Key Function Holders
Selection and Appointment Policy
o
Anti-Bribery and Corruption Policy
o
External Engagements Policy
o
Insider Dealing Guidelines
o
Conflict of Interest Policy
o
C-Level Succession Planning Policy
o
Senior Management Selection and Appointment
Policy
o
AML/CFT and Sanctions Policy
●
Non-Executive Directors approved
the Remuneration
Policy, the
Variable Remuneration
Framework,
and the Group
Variable Remuneration
Pool.
●
Approved
the Board
and Board Committees'
fees for
Non-Executive Directors
and the distribution
of net profits
to
senior management and employees,
which were subsequently submitted to the
AGM for approval.
●
Reviewed the
implementation of the Group
Subsidiary Board Remuneration
Policy during 2023.
●
Approved the
Bank’s Internal Governance
Control Manual.
●
Approved the establishment of the Wealth Management Unit
and the revised Eurobank Group Organizational Chart.
●
Received regular updates on Board
Committee matters.
●
Approved the
Board and Board Committees’ calendar
for 2025.
●
Addressed remuneration
matters, including variable remuneration and remuneration
increases for senior executives
of international subsidiaries.
●
Approved and submitted to the
AGM for approval
the appointment of auditors for
the financial year 2024.
●
Received updates from
international banking subsidiaries.
●
Approved credit
facilities to related parties.
b) Strategic Issues, Corporate,
and Other Actions
●
Discussed various strategy matters.
●
Approved the
updated Group Investment
and Group Divestment Policies.
●
Approved
an increase
in the
aggregate
principal
amount of
notes
issued
under
the
Medium-Term
Notes
(EMTN)
program.
●
Approved
the
merger
of
the
Bank
with
“ADEXA
MONOPROSOPI
ANONYMI
ETAIREIA
DIACHEIRISIS
KAI
EKMETALLEFSIS AKINITON”.
●
Approved the initiation of the merger process for the absorption of Eurobank Holdings by Eurobank (Project Square).
●
Project Hermione: Discussed
the Hellenic Bank transaction and approved
the Mandatory Tender
Offer (MTO).
●
Project Hermione II: Approved
the acquisition of shares in Hellenic Bank and Demetra.
●
Project Hermione III:
Approved the
acquisition of an additional stake in Hellenic Bank.
●
Approved the
signing of a binding agreement for the
sale and transfer of 95% of the
mezzanine and junior notes of
the Leon Securitization.
●
Approved strategic
investments in private equity funds and the creation
of a Venture Banking Unit to support these
initiatives.
●
Approved Arbitration
Agreements and authorizations.
●
Approved the
closure of the Representative
Office in Moscow,
Russia, and ratified related authorizations.
●
Approved the
sale of eight (8) real estate properties
(Praktiker portfolio).
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GOVERNANCE STATEMENT
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c) Capital Adequacy
●
Approved the
2024 Internal Capital & Liquidity Adequacy Statements (CAS & LAS) as part
of the Internal Capital &
Liquidity Adequacy Assessment Process
(ICAAP & ILAAP 2024).
●
Approved the
securitization of the
Bank’s receivables from
business and other
loan portfolios
(Leon) and approved
synthetic securitizations (Wave
V and Wave VI).
●
Approved the
Minimum Requirement for
Own Funds and Eligible Liabilities (MREL) Plan 2025-2027.
●
Discussed the Deferred
Tax Credit
(DTC) acceleration
plans.
d) Business Monitoring
●
Approved
the
2023
annual
consolidated
financial
statements
and
the
2024
interim
consolidated
financial
statements.
●
Approved the
Annual Budget 2024 and the Three
-Year
Business Plan (2024-2026), including an adverse scenario.
●
Discussed the
Annual Budget
2025
and the
Three-Year
Business Plan
(2025-2027),
including assumptions
for
the
adverse scenario.
●
Approved the Group’s
Non-Performing Exposures
(NPE) Targets for
2024-2026 and the NPE Management Strategy.
●
Reviewed significant subsidiary
activities and strategic priorities.
●
Discussed 2024 performance versus
budget.
●
Reviewed business developments
and liquidity.
e) Risk Management and Internal Control
●
Approved the
Group Chief Risk Officer
succession plan.
●
Acknowledged
the
annual
regulatory
reports
of
Group
Compliance
and
Group
Internal
Audit
on
the
System
of
Internal Controls (SIC).
●
Reviewed
the Independent
Triennial
Evaluation of
the
System of
Internal Controls
(SIC) under
Bank of Greece
Act
2577.
●
Received updates on significant internal
audit issues.
●
Reviewed compliance updates, including the
Anti-Money Laundering Business Risk Assessment and the Compliance
Risk Assessment.
●
Received updates on significant legal and regulatory
matters.
●
Approved the
Risk Appetite Framework
2024 and Risk Appetite Statements.
●
Approved the
Risk Identification and Materiality Assessment
(RIMA) Framework
and Reports.
●
Approved the
updated Funding Plan, the Leverage
Coverage Ratio
(LCR), and the Net Stable Funding Ratio (NSFR)
forecast plan (2024-2026).
●
Addressed various issues related to Basel Committee on Banking Supervision
(BCBS) standard No. 239 (BCBS 239),
including:
o
Discussed the action plan for
the On-Site Inspection (OSI).
o
Approved the establishment of the Internal Validation
Function for Risk Data Aggregation & Risk Reporting
(RRDAR) purposes and its Validation
Framework.
o
Approved the
BCBS 239 Overarching Framework.
o
Approved the
Data Governance
Deployment Plan.
●
Approved the
consolidated Pillar 3 Report (capital and risk management disclosures)
for 2023.
●
Received updates on credit and NPE-related
issues.
●
Reviewed significant risk issues,
including the Group Chief Risk Officer’s
Annual Report for 2023.
●
Reviewed the
2023 Annual Activity Report of the Audit Committee before
submission to the AGM.
●
Approved new
and revised risk policies, including:
o
Non-Financial Risk Management Policy
o
Group Liquidity Risk Policy
o
Market & Counterparty Risk Policy
o
Interest Rate Risk in the Banking Book
(IRRBB) & Credit Spread Risk in the Banking Book
(CSRBB) Policy
o
Outsourcing Policy
●
Approved the
appointment of the Head of Group
Internal Audit (Group Chief Audit Executive).
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f) Transformation
Project
●
Received regular updates on the
transformation
project.
5.10.3
Board Strategy Day
In addition to
the formal
meetings focused
on Eurobank’s
annual budget and three
-year business plan,
the Board
holds an
annual strategy
meeting, known
as the
Board Strategy
Day.
This meeting
is separate
from the
regular Board
of Directors’
meetings and is conducted in an informal setting, without
the recording of formal
minutes.
The purpose of the
Board Strategy Day is to allow
Board members the
time and flexibility to engage in in-depth discussions
and deliberations
on the top
strategic initiatives
that are
critical to Eurobank’s
growth
and competitive positioning
among
its peers.
During the
most recent
Board Strategy
Day,
held on
September 26
and 27,
2024, various
strategic
issues were
discussed.
Following
the meeting, a memorandum
was issued summarizing the key discussions.
5.11
Board and Board Committees overall
effectiveness
assessment
5.11.1
Board and Board Committees Evaluation
In
accordance
with
the
HoldCo/Bank
Board
and
Board
Committees
Evaluation
Policy
(Section
B4),
the
HoldCo/Bank
Nomination and
Corporate
Governance
Committee (NomCo)
is responsible
for
evaluating the
structure, size,
composition,
and
performance
of
the
Board
and
its
Committees
and
making
recommendations
for
necessary
changes.
The
NomCo
oversees the annual self-evaluation
of the Board’s and Committees' effectiveness
(Internal Evaluation), typically using a self-
assessment questionnaire as the
primary tool.
For
the
2024 Internal
Evaluation, all
thirteen (13)
Board
members
participated
by completing
anonymous self-assessment
questionnaires,
which were
administered
via Diligent’s
secure
web-based
platform.
These
questionnaires
covered
various
areas, including:
●
Strategy oversight
●
Engagement with management
●
Risk management
●
Board composition and dynamics
●
Chairperson’s role
●
Secretarial support
●
Effectiveness of
Board Committees
Key Findings of the Internal Evaluation
The results
indicated that
the Boards
of HoldCo and Eurobank
continued to function
effectively
in 2023, maintaining a
high
level of performance
similar to the 2022 evaluation.
Strategy Oversight
●
Board members
expressed a
positive impression
of the
Board’s role
in strategy,
particularly regarding
discussions
on major investments and transactions,
which were viewed
as robust and well-structured.
Relationship with Management
●
The Board’s relationship
with management remained strong,
with clear delineation of roles between
the Board and
executive leadership.
Strategic HR and Remuneration
●
The
Board
demonstrated
strong
oversight
of
banking
culture,
ensuring
alignment
with
corporate
values
and
governance principles.
Risk Governance and Internal
Control
●
The Board maintained high standards
in risk governance
and internal control.
●
Key strengths
included robust
oversight
of internal
controls,
conflict of interest
policies, internal
audit, and conflict
of interest management.
Board Profile and Composition
●
The Board was recognized
for its adequate knowledge, skills, experience,
and diversity.
●
Key strengths included international
experience, as well as an appropriate
size and structure.
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Board Functioning and Dynamics
●
The Board demonstrated
robust annual agenda planning, with well
-established and consistent procedures.
●
Board discussions included constructive reviews
and challenges, fostering effective
decision-making.
Board Chairperson's Role
●
The Chairperson’s
leadership was recognized as a key
factor in the Board’s
overall
effectiveness and success.
Board Secretarial Support
●
Board
members
highlighted
the
effectiveness
of
operational
support,
particularly
in
the
quality
of
materials
submitted by management and the preparation
of meeting minutes.
Opportunities for further
enhancement
While the evaluation
was overwhelmingly positive,
some areas for enhancement
were identified:
●
Further enhancing the
Board’s strategic focus
to provide greater
long-term direction.
●
Strengthening the
Board’s oversight
of digital transformation
initiatives.
●
Improving the monitoring of
subsidiary performance, ensuring strategic
alignment across the
Group.
The main conclusions of the Internal Evaluation regarding Board Committees have been
integrated into the relevant sections
detailing their functioning and operations.
5.11.2
Assessment
of
the
knowledge,
skills
and
experience
(KSE)
of
the
Board
collectively
as
well
as
the
KSE
and
contribution of individual Board members.
In
accordance
with
the
HoldCo/Bank
Board
and
Board
Committees
Evaluation
Policy
(see
the
relevant
section
in
this
Statement), the
NomCo is responsible
for assessing
the knowledge,
skills, and experience
(KSE) of the
Board collectively,
as
well as the KSE and contribution of individual Board
members, and reporting to the
Board accordingly.
5.11.3
Individual Evaluations
The individual
evaluations (assessment
of the
Board Chairperson,
Non-Executive Directors
(NEDs), and Executive
Directors)
consider
the
status
of
the
member
(executive,
non-executive,
independent),
participation
in
committees,
specific
responsibilities/projects undertaken,
time commitment, behavior,
and the application of
knowledge and experience.
A. Assessment of the Board
Chairperson
The Board Chairperson’s
evaluation is part of the
Internal Evaluation and is conducted by
all other Board
members through
the Board and Board Committees’
Self-Evaluation Questionnaire.
The 2024 evaluation
of the HoldCo/Bank Board Chairperson
remained very strong,
consistent with the 2022 evaluation.
B. Assessment of the Non-Executive
Directors’ (NEDs) Contribution to the
Board (Excluding the Chairperson)
The Board Chairperson is responsible for
conducting the assessment of NEDs' contributions and presenting the results to the
NomCo.
The assessment process
follows these
steps:
●
NomCo approves the
NEDs’ self-evaluation questionnaire.
●
The questionnaire is distributed to the NEDs, and responses remain strictly confidential, accessible only to
the Board
Chairperson or designated individuals.
●
The
Board
Chairperson
conducts
confidential
one-on-one
interviews
with
each
NED,
using
the
self-evaluation
questionnaire as a reference.
●
The Board Chairperson
presents an overall
report on the findings to the
NomCo.
●
The Board Chairperson’s views on NEDs’ performance, knowledge, skills, and experience are
discussed in the NomCo,
particularly during the (re)appointment and
succession planning of Board members.
For the
2023 annual assessment, the Board Chairperson
led the evaluation
of the NEDs' contribution using a self-evaluation
questionnaire consisting of 10 questions focused
on five key areas:
●
Contribution to overall
Board profile and skillset
●
Board participation and quality of contributions to
deliberations
●
Punctuality and attendance
●
Team spirit and demeanor
●
Independent thinking and constructive challenge
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The 2024
annual assessment demonstrated
that the
NEDs adequately meet
expectations, effectively
fulfilling their
roles as
Directors of HoldCo/Bank.
C. Executive Directors’ Performance
Evaluation
The evaluation
of Executive
Directors, including
the CEO
and Deputy CEOs,
follows
a structured
process involving
the CEO,
the
NomCo,
and
the
Board
Remuneration
Committee
(RemCo).
This
annual
evaluation
is
based
on
qualitative
and
quantitative Key Performance
Indicators (KPIs) approved
by the Non-Executive Directors.
For
the
CEO’s evaluation,
the
RemCo proposes
KPIs related
to CEO
remuneration,
which are
then
submitted to
the
Non-
Executive
Directors
for
approval.
The
CEO's
performance
is
assessed
based
on
these
approved
KPIs,
and
the
results
are
communicated to the CEO and considered
in determining remuneration.
5.11.4
Collective Suitability Assessment
In 2024,
alongside the
Board of
Directors’
performance
evaluation,
an assessment
of the
Board’s collective
suitability was
conducted
in
accordance
with
the
Joint
ESMA/EBA
Guidelines
on
the
assessment
of
the
suitability
of
members
of
the
management body and key function
holders (EBA/GL/2021/06). This assessment
was supported by the NomCo.
The
evaluation
examined
whether
the
Board
collectively
possesses
the
necessary
knowledge,
skills,
and
experience
to
understand the
business model, strategy,
risks, and governance
-related matters.
The assessment
confirmed that
the Board
is collectively suitable to effectively
address these areas.
The evaluation
also identified potential
areas for
improvement
in specific business lines
and products, various
geographies
and subsidiaries,
and risk
management,
particularly
regarding
cybersecurity
and outsourcing
risks. It
was suggested
that
initiatives could be considered to address
these observations
and ensure alignment with HoldCo/Bank strategic
goals.
To
enhance
understanding
in
these
areas,
presentations
at
the
Board
and
Board
Committees
level,
along with
targeted
external training and internal sessions,
will continue to play a central role
in strengthening the Board’s
expertise.
5.12
Directors’ Induction and Continuous Professional
Development
In accordance
with the
Directors’
Induction
and Continuous
Professional
Development
Process,
Mr.
Evangelos Kotsovinos,
who joined
the Board
in 2024,
underwent a
comprehensive
Induction Program
designed to achieve
several
key objectives,
as outlined in Section B8.
Upon his appointment, Mr. Kotsovinos:
●
Received
a
Manual
of
Obligations
detailing
his
main
responsibilities
towards
the
Supervisory
Authorities
and
HoldCo/Bank, including local regulations
and Board procedures.
●
Attended meetings
and presentations
by Key
Executives
of HoldCo/Bank,
providing
a comprehensive
overview
of
the organization.
As
part
of
the
continuous
professional
development
framework,
in
2024,
Board
members
participated
in
formal
training
sessions on:
●
Challenger Banks and the Competitive
Landscape
●
Developments and challenges in the
new AML supervisory framework
●
Corporate Sustainability Reporting Directive
(CSRD)
Additionally, Board
members engaged in in-house meetings and discussions on Strategy,
Business Planning, and Budgeting.
They
received
regular updates,
reports, and
presentations
from
senior management
on operational
and strategic
targets,
market developmen
ts, and updates on risk, audit, compliance, financial, human resources,
legal, and regulatory matters.
Board members
also received
regular and ad-hoc
research and
economic bulletins from
Eurobank's Economic
Analysis and
Financial Markets Research.
6.
Board Committees
The Boards
of HoldCo and
Eurobank are
assisted in carrying
out their
duties by Board
Committees, to which they
delegate
specific responsibilities.
The HoldCo/Bank Board
Committees include:
●
Audit Committees (ACs)
●
Board Risk Committees (BRCs)
●
Remuneration
Committees (RemCos)
●
Nomination Committee (NomCo)
●
Bank Board Digital & Transformation
Committee (BDTC)
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4
6.1
Governance and Operations
of Board Committees
6.1.1
Board Committees’ members
The members of HoldCo/Bank
Board Committees are appointed by the respective
Board, following
a recommendation from
the NomCo and in accordance with the
applicable legal and regulatory framework.
The tenure
of Committee members
coincides with the
tenure of the
respective Board,
with the option
for renewal.
However,
total service on the
Committees must not exceed nine (9) years.
6.1.2
Board Committees’ Terms
of Reference (ToR)
The
ToR
of each
Board
Committee outlines
its purpose,
responsibilities,
and modus
operandi.
It is
reviewed
annually and
revised if necessary unless
significant changes require an
earlier revision. The ToR is approved by the Board and
made publicly
available on the HoldCo or Bank website.
6.1.3
Board Committees’ meetings
The minimum number of annual meetings
for each Board Committee is defined in its ToR.
Only
Committee
members
have
the
right
to
attend
meetings,
though
other
individuals,
such
as
Management
members,
external auditors, and
external advisors, may
be invited when
appropriate and
necessary.
The number
of invitees is kept
to
a minimum to preserve the
efficiency and effectiveness
of the meeting.
Members
may
attend
meetings
remotely
via
video
or
audio
conference.
A
mandatory
minimum
attendance
requirement
applies,
as
set
out
in
the
Board
and
Board
Committees’
Attendance
Policy
(please
refer
to
the
relevant
section
in
this
Statement).
6.1.4
Quorum in the Board Committees’
Meetings
A quorum is established when more than half of the
Committee members are present or represented,
provided that at least
three (3) members are present, including the Chairperson or, in the case of HoldCo/Bank ACs and BRCs,
the Vice Chairperson.
Each Committee member
may validly represent
only one other
Committee member.
Representation cannot
be assigned to
individuals outside the Committee.
6.1.5
Board Committees’ Decisions
Resolutions are validly adopted by an absolute majority of
the members present
or represented.
In the event
of a tie, the
Chairperson (or in their
absence, the Vice
Chairperson for
HoldCo/Bank ACs and BRCs)
or the most
senior Independent
Non-Executive Director
present (based
on tenure)
for HoldCo/Bank
RemCos, NomCos, and
Bank BDTC,
has the casting vote.
The Board is informed
whenever
an AC decision is not reached unanimously.
Minutes may be drawn up and signed by circulation by
all Committee members, which is equivalent to a valid decision, even
if no formal meeting takes place.
6.1.6
Board Committees’ Secretary and Minutes
Each
HoldCo/Bank
Board
Committee
appoints
its
Secretary,
who
reports
to
the
Group
Company
Secretariat
and
collaborates with the
Committee Chairperson and other
relevant parties.
The Secretary is responsible
for:
●
Recording the proceedings
and decisions of the Committee meetings.
●
Listing the names of attendees and documenting action
plans and follow-ups.
●
Issuing extracts of minutes as required.
●
Disseminating decisions, actions, and follow
-ups to the relevant parties.
6.1.7
Board Committees’ Performance
Evaluation
The performance
of Board Committees is evaluated annually, in line with the Board and
Board Committees Evaluation Policy
(please refer to the
relevant section in this Statement).
6.2
Audit Committee
The primary function
of the HoldCo/Bank Audit Committee
(AC) is to assist the respective
Board in discharging its oversight
responsibilities primarily relating to:
●
the
review
of the
adequacy of
the
Internal Control
and Risk
Management
systems and
the
compliance
with rules
and regulations monitoring process,
4
HoldCo/Bank ACs’ Terms
of Reference may be
found at the
HoldCo/Bank websites (
www.eurobankholdings.gr
&
www.eurobank.gr
).
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●
the
review
of
the
financial
reporting
process
and
satisfaction
as
to
the
integrity
of
the
HoldCO’s
Financial
Statements, also taking into account the provisions
of L. 5164/2024,
●
the External Auditors’ selection,
performance and independence,
●
the effectiveness
and performance
of the Internal Audit and of the Compliance
function.
In addition, in the context
of AC’s responsibility to safeguard External Auditors’ independence, the AC ensures that
the nature
of non-audit services, prior to their being undertaken
by the External Auditors, has been reviewed
and approved as required
and that there
is proper
balance between
audit and non-audit work
in accordance
with Group’s
/ Bank’s policy on
External
Auditors’ Independence.
6.2.1
AC Membership/Composition
The HoldCo/Bank’s ACs are Committees
consisted exclusively by Board
members and their compositions have
been approved
by the General
Meetings of the Shareholders (as per the
legal framework),
following the
recommendation of the
NomCos to
the
Boards.
The
Chairperson
of the
Committees
is appointed
by
the
members
of the
Committees,
while the
Committee’s
members may also appoint a Vice
Chairperson.
All AC members have
sufficient knowledge in the
field of HoldCo/Bank’s activities and the
necessary skills and experience
to
carry out their
duties and meet the requirement
of established knowledge and experience in auditing and/or accounting.
The ACs consist of five (5)
independent non-executive Directors of
the Board. In particular, the HoldCo/Bank’s AC composition
is outlined below:
AC Chairperson:
Burkhard Eckes,
Non-Executive Independent Director of the
Board
AC Vice-Chairperson:
Jawaid Mirza,
Non-Executive Independent Director of the
Board
AC Members:
Irene Rouvitha Panou,
Non-executive Independent Director of the
Board
Rajeev Kakar
,
Non-Executive Independent Director of the
Board
Alice Gregoriadi,
Non-Executive Independent Director of the
Board
It
is
noted
that
in
line
with
the
provisions
of
article
44
of
law
4449/2017,
as
in
force,
and
further
to
the
decision
of
the
HoldCo/Bank’s
Annual
General
Meetings
of
Shareholders
as
of
23.07.2024
regarding
the
recomposition
of
the
Audit
Committees and more specifically regarding their type, composition and term of office; and the BoDs’ decision of 23.07.2024
regarding the membership of the AC, following the relevant recommendations by the NomCos of28.05.2024, the ACs decided
on their constitution and on the
appointment of their Chairman.
Compared to
the previous
ACs’ composition
and following
the recomposition
of the
ACs on
23.07.2024,
the ACs’
members
increased
from
four
(4) to
five
(5) members,
with Ms.
Alice
Gregoriadi
being the
new
member
of the
ACs.
In addition,
Mr.
Burkhard
Eckes
(previously
Vice-Chairperson
of
the
ACs)
swapped
his
AC
status
with
Mr.
Jawaid
Mirza
(previously
Chairperson of the ACs) and
was appointed Chairperson
of the ACs, while Mr. Jawaid
Mirza was appointed
Vice-Chairperson
of the ACs.
6.2.2
AC Meetings
The
HoldCo/Bank’s ACs
meet at
least eight
(8) times
per year
or more
frequently,
as circumstances
require, report
on their
activities to the HoldCo/Bank’s Boards on a quarterly basis and submit the minutes of their meetings and the annual Activity
Reports (before their
submission to the HoldCo/Bank Shareholders’
Annual General Meeting) to the HoldCo/Bank’s
Boards.
Apart
from
the
AC
members,
the
BRC’s
members
may
also
attend
AC
sessions
when
common
issues
are
discussed
(e.g.
compliance risk
assessment).
The
Chairperson of
the
AC
may also
invite to
the
meetings other
executives
of the
Group
or
external advisors or experts, as deemed appropriate.
6.2.3
Attendance to the AC Meetings
During 2024 the attendance details for
the Audit Committee were
as follows:
Company
Meetings
Average
ratio
of
Directors’ attendance
2024
2023
2024
2023
HoldCo
15
17
97%
100%
Bank
14
16
98%
100%
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The Directors’
individual attendance rates at the
AC meetings in 2024 were
the following:
Name
Eurobank Holdings AC
Eurobank AC
Eligible to attend
Attended in person
(# and %)
Eligible to
attend
Attended in person
(# and %)
Burkhard Eckes,
AC Chairperson
15
14
93%
14
14
100%
Jawaid Mirza,
AC Vice-Chairperson
15
15
100%
14
14
100%
Irene Rouvitha Panou,
AC member
15
15
100%
14
14
100%
Rajeev Kakar,
AC member
15
14
93%
14
13
93%
Alice Gregoriadi,
AC member
7
7
100%
7
7
100%
It is noted
that in 2024,
Mr. B.
Eckes provided
representation
proxy for
his missed meeting
in HoldCo’s
AC and Mr.
R. Kakar
provided representation proxies for his missed meetings
in HoldCo/Bank’s ACs, leading
their overall attendance rate (physical
and under representation) at
100% in HoldCo/Bank’s ACs.
6.2.4
AC’s Performance
Evaluation
At
the
2024
self-evaluation
conducted
by
the
AC,
its
members
expressed
satisfaction
with
the
committee's
structure,
effectiveness
and
leadership.
They
commented
on
the
AC's
efficient
use
of
time
and
scheduling
and
the
well-structuring
meetings that
ensure
critical issues
are addressed
appropriately.
The
Chairperson of
the
AC
was praised
for
his ability
to
ensure continuity and strong guidance during the transition and to encourage critical discussions and inclusive participation.
The
evaluation
also
highlighted
opportunities
for
further
enhancement
Members
suggested
expanding
the
Committee’s
mandate
to
include
sustainability
oversight,
given
its
growing
importance
in
regulatory
and
strategic
discussions.
Strengthening
coordination
with subsidiary
audit committees
and addressing
cybersecurity
and data
privacy with
regular
updates and
improved
controls
were
also highlighted as
possible priorities.
Finally,
leveraging
technology and
analytics to
enhance risk identification, mitigation,
and audit processes remains another
focus area
6.2.5
ACs’ Activity in 2024
For 2024, ACs
have amongst others:
Eurobank Holdings
●
Decided on their constitution/reconstitution
and the appointment of their
Chairman.
●
Reviewed and approved
the Compliance Mandate.
●
Approved the
annual plans of Internal Audit and Compliance and monitored their
progress.
●
Reviewed
and
discussed
reports
related
to
Internal
Audit
and
Compliance,
including
quarterly
reports
from
the
Internal Audit and Compliance functions.
●
Discussed the progress
of actions taken to resolve
Internal Audit findings.
●
Received updates on various internal
control, legal, and regulatory
issues.
●
Ensured that an annual evaluation of the System of
Internal Controls (SIC) for 2023 was performed and documented
by Internal Audit. This report, along with the AC’s assessment, was further
submitted to the Board of Directors (BoD)
and subsequently to the Bank of Greece (BoG) as required.
●
In line with
the BoG Governors
Act 2577/2006,
acknowledged the
annual Group
Compliance report
on compliance
activities for 2023. This
report, along with the AC’s
assessment, was further
submitted to the BoD and subsequently
to BoG as required.
●
During
the
first
quarter
of
2024,
discussed
and
submitted
to
the
Board
Risk
Committee
(BRC)
and
BoD
for
acknowledgment, the independent triennial Evaluation
of the System of Internal Controls
(SIC) conducted by Grant
Thornton (Independent Evaluation) in accordance
with BoG Act 2577/2006. The Independent Evaluation,
along with
the AC’s assessment,
was submitted to BoG as required.
●
Reviewed and submitted to the
BoD for approval
the revised Related
Party Transactions
Policy.
●
Reviewed
and,
depending
on
the
case,
ratified,
approved,
or
approved
and
submitted
to
the
BoD
for
approval/information:
o
The revised
MiFID II Product Governance
Policy.
o
The Group
Anti-trust Compliance Policy.
o
The revised
Policy for Reporting Illegal or
Unethical Conduct or Violations
of European Union Law.
o
The revised
Anti-Bribery and Corruption Policy.
o
The Policy
for the Prevention
and Detection of Market Abuse.
o
The Insider Dealing Guideline.
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o
The revised
Conflict of Interest Policy.
o
The revised
Code of Conduct and Ethics.
●
In the context of
the Policy for Reporting Illegal or Unethical Conduct
or Violations of European Union Law, approved
and submitted to the BoD for
approval the appointment
of the Report Receiving & Monitoring Officer
(RRMO) and
the assistant RRMO.
●
Discussed financial results with Management, Internal
Audit, and External Auditors.
●
Reviewed and cleared the financial
statements and other financial reports
and trading updates
prior to their release.
●
Discussed with
Management the
implementation
of corrective
actions to recommendations
made by
Internal and
External Auditors and Regulatory Authorities.
●
Assessed
the
effectiveness,
objectivity,
and
independence
of
the
External
Auditors
for
the
financial
year
2023,
discussed the
results of
their evaluation
with Management
and Internal
Audit, and communicated
the final
results
to the Board and the
External Auditors.
●
Proposed
to the
Board
and the
Annual General
Meeting (AGM)
the
appointment
of the
External Auditors
for
the
financial year 2024.
●
Discussed and approved the
Global Group Audit and Assurance
Fees for
2024.
●
Approved
the External
Auditors’ Independence
Policy and monitored,
in line with
this policy,
the non-audit services
provided by the
External Auditor in 2024.
●
Reviewed and approved
the updated External Auditors Tendering
Policy and Procedure.
●
Reviewed:
o
The eligibility of audit firms for
the statutory audit versus IT delivery
sourcing for strategic
IT projects.
o
The five-year
rolling plan (2025-2029) regarding the
eligibility of audit firms for the statutory audit of Eurobank
Ergasias
Services
and Holdings
Group,
as well
as potential
conflicts of
interest
with
eligible
audit firms.
This
review was conducted in accordance with Greek Law 4449/2017,
EU Regulation 537/2014, and the requirements
of the
International
Code of
Ethics for
Professional
Accountants issued
by the
International
Ethics Standards
Board for Accountants (IESBA).
●
Initiated the External Auditors’
tendering process for
the Group statutory audit of 2027.
●
Assessed the
performance
of the
Internal Auditor
and the
Head of
Compliance/Anti-Money
Laundering Reporting
Officer for
2023.
●
Received updates on the
progress of the Annual Budget.
●
In accordance with the provisions
of Law 2533/1997,
reviewed reports
on substantial stock transactions by HoldCo’s
Directors and General
Managers that meet the
criteria set in Law 2533/1997 and notified the Board.
●
Approved and submitted to the
Board for further
submission to the AGM the
annual AC Activity Report for 2023.
●
Discussed the Annual AC Plan for
2025.
●
Participated in Board Risk Committee
(BRC) meetings, during which discussions included:
o
Accounting policies, including hedge accounting policy.
o
Progress reports on the
Corporate Sustainability Report Directive
(CSRD) Program Implementation.
o
Various
risks, including non-financial risks, climate-related
and environmental
risks, and the Environmental
and
Social Governance
(ESG) Strategy.
Eurobank
●
Decided on its constitution/reconstitution and the
appointment of its Chairman.
●
Reviewed and approved
the revised Compliance
Mandate.
●
Jointly with the
BRC, discussed and
further submitted to the BoD
for discussion the Business Risk
Assessment Exercise
(AML, CFT,
Sanctions) and the Compliance Risk Assessment.
●
Approved
and further
submitted to
the
BoD for
information
the
annual
and triennial
Plans of
Internal
Audit and
Compliance and monitored their
progress.
●
Reviewed
and discussed
regular
and ad
hoc reports
with information
relating
to the
System of
Internal
Controls,
including
quarterly
reports
from
Group
Internal
Audit,
Group
Compliance,
the
Operational
Risk
Sector,
Clients
Relations Office,
etc.
●
Received updates on various legal and regulatory
issues.
●
Discussed extensively AML issues, including the legal
and regulatory framework
for the EU’s Anti-Money
Laundering
Authority (AMLA) along with the respective
implementation timeline for
Eurobank.
●
Discussed various Group Compliance issues,
including the Compliance Transformation
Project.
●
Ratified the scoping memo and approved
the external advisor (i.e., EY) for
the review of Group
IA’s Risk Assessment
and Audit
Planning Methodology (External Review). Subsequently, after its
completion, the AC approved the External
Review and the respective
action plan.
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●
Discussed
the
quality
assessment
of
the
Group
Internal
Audit
activities,
covering
the
operations
of
the
entire
Eurobank
Group
in
Greece
and
its
subsidiaries
abroad,
against
the
Internal
Audit
Standards,
conducted
by
an
external advisor (i.e.,
Ernst & Young (EY)). EY
identified 12 improvement opportunities, and
the AC approved an action
plan for their implementation.
●
In line with the BoG Act
2577/2006, ensured that an annual evaluation of the System of Internal Controls for the year
2023 was performed and documented by the Internal Audit Group. This report, along with the AC’s assessment,
was
further submitted to the
BoD and subsequently to the BoG as required.
●
During the
1Q 2024 AC
meeting, discussed and
further
submitted to the
Board Risk
Committee (BRC) and
BoD for
acknowledgment,
the
independent
triennial
Evaluation
of
the
System
of
Internal
Controls
(SIC)
per
BoG
Act
2577/2006 conducted by Grant Thornton (Independent Evaluation). The Independent Evaluation, along
with the AC’s
assessment of the evaluation,
was submitted to the Bank of Greece (BoG) as required.
●
In line with the BoG Governors
Act 2577/2006, reviewed
the annual Group Compliance Sector’s reports
on AML and
compliance activities of the Bank for the year 2023. These reports, along with the AC’s own assessment, were
further
submitted to the Board and the
BoG.
●
Reviewed and submitted to the
BoD for approval
the revised Related
Party Transactions
Policy.
●
Reviewed
and,
depending
on
the
case,
approved
or
approved
and
further
submitted
to
the
BoD
for
approval/information:
o
The revised
MiFID II Product Governance
Policy
o
The new MiFID II
Marketing Communications Policy
o
The revised
Appropriateness Assessment Policy
o
The revised
Inducements Policy
o
The revised
Client/Investor Categorization Policy
o
The revised
Suitability Assessment Policy
o
The AML/CFT and Sanctions Policy
o
The Group
Anti-trust Compliance Policy
o
The revised
Policy for Reporting Illegal or
Unethical Conduct or Violations
of European Union Law
o
The revised
Anti-Bribery and Corruption Policy
o
The Policy
for the Prevention
and Detection of Market Abuse
o
The Insider Dealing Guideline
o
The revised
Code of Conduct and Ethics
o
The revised
Conflict of Interest Policy
o
The Order
Execution Policy
●
In
the
context
of
the
Policy
for
Reporting
Illegal
or
Unethical
Conduct
or
Violations
of
European
Union
Law
(mentioned
above),
approved
and further
submitted to
the
BoD for
approval
the
Report Receiving
& Monitoring
Officer (RRMO) and the
Assistant RRMO.
●
Discussed with Management, Internal Audit, and External Auditors issues relating
to the financial results.
●
Discussed/approved
(depending
on the
case)
various
Group
Internal
Audit issues,
including
its staffing,
strategy,
budget, and training.
●
Received an
update regarding
the gap
assessment performed
through interviews,
workshops, and documentation
analysis by an external
consultant (i.e., PwC) for
the evaluation
of the readiness
of Eurobank’s
Group Internal
Audit
function to conform with
Global International Audit Standards
(GIAS).
●
Strengthened its monitoring of the
effectiveness
of the IA functions of subsidiaries (in Greece
and abroad).
●
Reviewed and cleared
the consolidated financial statements.
●
Discussed with
Management the
implementation
of corrective
actions to recommendations
made by
Internal and
External Auditors and Regulatory Authorities.
●
Assessed
the
effectiveness,
objectivity,
and
independence
of
the
External
Auditors
for
the
financial
year
2023,
discussed the
results of
their evaluation
with Management
and Internal
Audit, and communicated
the final
results
to the Board and the
External Auditors.
●
Approved the
External Auditors’ Bank Group Audit and Assurance
Fees for
2024.
●
Proposed
to
the
Board
and
the
Annual
General
Meeting
of
Shareholders
for
approval
the
appointment
of
the
External Auditors for the
financial year 2024.
●
Approved
the External
Auditors’ Independence
Policy and
monitored, in line
with this Policy,
the non-audit services
provided by the
External Auditor in 2024.
●
Received an update on the
External Auditor’s tendering process
for the Group
statutory audit of 2027.
●
Assessed the performance
of the Chief Audit Executive
and the General
Manager Head of Group Compliance/Anti-
Money Laundering Reporting Officer.
●
Monitored
the
memberships
and
the
modus
operandi
of
the
Audit
Committees
of
the
banking
subsidiaries,
as
required, and reviewed
their Activity Reports.
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5
●
Approved banking subsidiaries’
AC Chairs appointed during 2024.
●
Discussed key Audit Committee issues with the
Chairpersons of banking subsidiaries.
●
In
accordance
with
the
provisions
of Law
2533/1997,
the
Audit Committee
reviewed
reports
on substantial
stock
transactions of
the Bank’s Directors
and General
Managers that met
the criteria
set in Law 2533/1997
and notified
the Board.
●
Approved and notified the Board for further submission to
the Annual General Meeting the annual
AC Activity Report
for 2023.
●
Discussed the Annual AC Plan for
2025.
●
At the BRC meetings that
the AC members
participated in, discussions included progress
reports for the
Corporate
Sustainability Report Directive
(CSRD) Program Implementation,
risk issues such as operational
risk, IT security risk,
and climate-related
and environmental
risk, the
MREL plan,
and the
Environmental
and Social
Governance
(ESG)
Strategy.
It is noted that
in accordance
with the
Law 4449/2017 as
in force,
the HoldCo/Bank
ACs submit an
annual activity report
to
their
Shareholders’
Annual General
Meeting on
the
issues dealt
with by
the
ACs during
the
previous
year,
also including
a
description of the sustainability policy followed
by each entity.
The 2024 HoldCo/Bank ACs
Activity Reports which are also part of the
2024 HoldCo/Bank Annual Financial Reports, refer
to
the AC activity during 2024, the
issues addressed and the sustainability policy.
6.3
Board Risk Committee
The purpose of the
HoldC/Bank’s Board Risk Committee (BRC) is to assist the Board
in the following
risk-related issues:
●
to advise and support BoD regarding
the monitoring of overall
actual and future risk appetite and strategy,
taking
into account all types of risks to ensure that they are in line with the
business strategy,
objectives, corporate
culture
and values
●
to provide BoD with recommendations
on necessary adjustments to the
risk strategy
●
to assist BoD in overseeing the
implementation of risk strategy
and the corresponding limits set
●
to oversee the implementation of the strategies for capital and liquidity management as well as for all material risks
of the
Group, as
identified through
the Risk
Identification and
Materiality Assessment
(RIMA) process
and listed in
the relevant RIMA report, in
order to assess
their adequacy against the
approved risk appetite and
strategy. Material
risk types include financial and
non-financial risks, indicatively
credit risk, market risk,
liquidity risk, interest
rate risk
and credit spread risk in the banking book, counterparty
risk, operational
risk, climate risk, country risk, reputational
risks, conduct risk, risks stemming from strategic projects
●
to
oversee
the
progress
made
to
enhance
resolvability
in
accordance
with
the
requirements
of
the
Resolution
Authorities (for Bank BRC only).
●
to review a
number of possible scenarios,
including stressed scenarios,
to assess how the
risk profile would
react to
external and internal events
●
to oversee
the
alignment between
all material
financial products
and services
offered
to clients
and the
business
model and risk strategy. The
BRC should assess the risks associated with the offered
financial products and services
and take
into account
the
alignment
between the
prices
assigned to
and the
profits
gained from
those products
and services (for Bank BRC only)
●
to provide advice on the appointment of external consultants that BoD may decide to engage for advice or support
●
to assess the
recommendations
of internal
or external
auditors and follow
up on
the appropriate
implementation
of measures taken
●
to ensure that an appropriate risk management framework has been developed which is embedded in the decision-
making process (e.g. new products and services introduction,
risk adjusted pricing, internal risk models, risk adjusted
performance measures
and capital allocation)
●
to define the risk management principles and ensure that there are the appropriate
methodologies, modeling tools,
data sources and sufficient and competent staff
to identify, assess, monitor and mitigate risks
●
to
set,
approve
and
oversee
the
implementation
of
the
risk
culture,
core
values
and
expectations
regarding
all
material risks.
6.3.1
BRC Membership/Composition
The BRCs
consist of five (5)
independent non-executive Directors.
The Chairperson
qualifies as independent member
with a
solid experience
in commercial
banking and preferably
risk and/or Non-Performing
Exposures management
and is familiar
with the Greek and international
regulatory framework.
The appointment of the Chairperson
and the Vice-Chairperson shall
go through the
NomCos’ proposal process
and approved by
the Board.
5
HoldCo/Bank BRCs’ Terms of Reference
may be found at the HoldCo/Bank websites (
www.eurobankholdings.gr
&
www.eurobank.gr
).
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The BRCs’ composition is outlined
below:
BRC Chairperson:
Rajeev Kakar,
Non-Executive Independent Director of the
Board
BRC Vice-Chairperson:
John Arthur Hollows,
Non-executive Independent Director of the Board
BRC Members:
Cinzia Basile,
Non-Executive Independent Director of the
Board
Burkhard Eckes,
Non-Executive Independent Director of the
Board
Evangelos Kotsovinos
, Non-executive Independent Director of the
Board
It
is noted
that
during
2024
and following
NomCos’
recommendations
for
the
recomposition
of
the
HoldCo/Bank’s
BoDs
Committees, the HoldCo/Bank’s BoDs decided on30.05.2024,
28.06.2024 and
23.07.2024,the
following:
●
to
appoint
Messrs.
Burkhard
Eckes
and
Evangelos
Kotsovinos
as
new
BRC
members,
in replacement
of
Ms.
Alice
Gregoriadi and Mr. Bradley
Paul Martin respectively.
●
Mr. John Arthur Hollows to
swap his
BRC status with
that of Ms.
Cinza Basile, i.e.
Mr. John Arthur Hollows to
undertake
the
position
of BRC’s
Vice
Chair (previously
held
the
position
of BRC’s
member)
whereas
Ms. Alice
Gregoriadi
to
undertake the position
of BRC’s member (previously
held the position of BRC’s Vice
Chair).
6.3.2
BRC Meetings
The
BRC
meets
at
least
ten (10)
times
per
year
and the
Chairperson
updates
the
BoD
members
on the
material
matters
covered
by the Committee during the previous
period (if any) at the quarterly
meetings of the BoD.
Apart from
the BRC
members, the
AC’s members
may also attend
BRC sessions when
common issues are
discussed (i.e. on
operational
risk matters,
on IT
security and
cyber risks).
The
Chairperson of
the
BRC may
also invite
to the
meetings other
executives of the
Group or external advisors or experts, as deemed
appropriate.
6.3.3
Attendance to the BRC Meetings
During 2024, attendance details for
the Board Risk Committee were
as follows,
Company
Meetings
Average ratio of
Directors’ attendance
2024
2023
2024
2023
HoldCo
12
12
95%
100%
Bank
12
13
95%
100%
The Directors’
individual attendance rates at the
BRC meetings in 2024 were the
following:
Name
Eurobank Holdings
BRC
Eurobank BRC
Eligible to attend
Attended in person
(# and %)
Eligible to
attend
Attended in
person
(# and %)
Rajeev Kakar,
BRC
Chairperson
12
11
92%
12
11
92%
John Arthur Hollows,
BRC Vice-Chairperson
12
11
92%
12
11
92%
Cinzia Basile,
BRC member
12
12
100%
12
12
100%
Burkhard Eckes,
BRC member since 23.07.2024
5
5
100%
5
5
100%
Evangelos Kotsovinos,
BRC member since 23.07.2024
5
4
80%
5
4
80%
Bradley Paul L. Martin,
BRC member until 23.07.2024
7
7
100%
7
7
100%
Alice Gregoriadi,
BRC member until 23.07.2024
7
7
100%
7
7
100%
It is noted
that in 2024, Messrs.
Rajeev Kakar, John Arthur Hollows and Evangelos
Kotsovinos provided representation proxies
for their
missed meetings in HoldCo/Bank’s
BRCs, leading their
overall
attendance rate
(physical and under
representation)
at 100% in HoldCo/Bank’s BRCs.
6.3.4
BRCs’ Performance
Evaluation
The 2024
self-evaluation conducted
by the
HoldCo/Bank BRCs indicates
overall
satisfaction among
its members
regarding
the
Committee's leadership,
participation,
and the
robustness
of discussions.
Members of
the
BRCs expressed
satisfaction
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with
the
Chairperson’s
preparedness
and
ability
to
guide
discussions.
Additionally,
members
of
the
BRCs
are
also
well-
prepared for
meetings, ensuring meaningful participation
in discussions.
he evaluation also highlighted opportunities for further enhancement. In particular, enhancements in meeting materials were
noted, scoring 4.80,
yet further
improvements
were
recommended in
areas such
as market
risk reporting
and non-financial
risk oversight, particularly operational
and cybersecurity risks.
Strengthening
oversight
of
subsidiaries
was
identified
as
a
priority
too,
similarly
to
the
Audit
Committee.
Members
highlighted specific areas, such as
credit, concentration, and merger
-related risks in Cyprus. Sensitivity
analyses on consumer
lending profitability and the euro’s
impact on the Bulgarian market were
also recommended. Cybersecurity governance
and
operational
resilience
emerged
as focus
areas, with
calls for
annual deep-dive
sessions and
greater
use of
data analytics
and stress testing
to improve
risk identification
and mitigation.
Coordination with
the Audit
Committee remained
effective
but saw a slight decline in its score, moving from 4.80 to 4.60.
6.3.5
BRCs’ Activity in 2024
For 2024, the
BRCs have, amongst others:
Eurobank Holdings
●
Monitored the
Group’s
overall
actual and
future
risk appetite
and strategy,
ensuring alignment
with the
business
strategy, objectives,
corporate culture, and values of the
Group, while considering all types of risks.
●
Approved various
regulatory and risk-related reports,
policies, and frameworks,
including:
o
Internal Capital & Liquidity Adequacy Assessment Processes
(ICAAP/ILAAP)
o
Capital Adequacy Statements (CAS) and Liquidity Adequacy Statements
(LAS)
o
Risk Identification and Materiality Process
(RIMA) Report
o
Group Recovery
Plan
●
Approved the
Group Chief Risk Officer
(GCRO) Annual Report.
●
Approved
the
Group
Risk
and
Capital
Strategy,
the
Risk
Appetite
Framework
(RAF),
and
the
Risk
Appetite
Statements (RAS), including the RAS dashboard.
Eurobank
●
Monitored
Eurobank’s
overall
actual
and
future
risk
appetite
and
strategy,
ensuring
that
all
types
of
risks
were
aligned with the institution’s
business strategy,
objectives, corporate
culture, and values.
●
Oversaw both qualitative
and quantitative aspects of credit, market,
liquidity, and operational
risks.
●
Reviewed
Information
and
Communication
Technology
(ICT)
Risk and
Security,
including Cyber
Security,
Physical
Security, and Fraud
Detection.
●
Approved various
regulatory and other
reports, risk policies, and frameworks,
including:
o
Non-Performing Exposures
(NPE) Targets
submission for 2024-2026 and the
NPE management strategy.
o
Liquidity Report.
o
Counterparty and Issuer Risk Report.
o
Interest Rate Risk in the Banking Book
/ Credit Spread Risk in the Banking Book.
o
Market Risk Developments
Report.
o
Group Operational
and Non-Financial Risk Report.
o
Asset Quality Monthly and Quarterly Update.
o
Impairment Results: Quarterly Update.
o
New Disbursements Performance
Report.
o
Forbearance
Report.
o
Quarterly NPE & Securitizations Performance
Update Report.
o
Risk Appetite Dashboard.
o
Bank’s Macro Hedging Strategy Updates.
o
BCBS239 Project, including:
-
Scope of Application and Inventory of Material
Risk Reports.
-
Definition of Compliance.
-
Overarching
Risk Reporting Framework.
-
Risk Data Aggregation
and Risk Reporting (RDARR) Validation
Governance Arrangements.
-
Initial Version of the
RDARR Validation
Framework.
o
Large Groups and Hyper Groups
– Degrouping Policy
Amendments.
o
Presentations of Large Groups,
including METLEN, DEI, GEK, among others.
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6
o
Leveraged
Transactions Update
& Dashboard.
o
Corporate & Investment
Banking (CIB) Industry Sectors Update.
o
International Subsidiaries Monitoring,
including key risk indicators,
the BRC Chairman’s
Annual Activity Report,
and the approval of BRC Chairs
appointed during 2024.
●
BRC meetings where
AC members were
also invited, discussing and approving the following
issues:
o
Resolvability Progress Report.
o
Group Chief Risk Officer
Succession Plan.
o
Notification for
breach of Risk Appetite Statements (RAS) thresholds,
specifically:
-
Level 1 KRI: "Operational
Risk Losses Ratio" (RAS 47).
-
Level 2 KRI: "Conduct Risk Exposure" (RAS 51), "Regulatory Compliance
Risk Exposure" (RAS 52).
o
Hellenic Bank Risk Assurance Analysis.
o
Minimum Requirement for
Own Funds and Eligible Liabilities (MREL) Issuance Plan & Targets.
o
Resolvability Self-Assessment Report.
o
Environmental and Social Governance
(ESG) Strategy.
o
Key Climate Risk & Environmental
(CR&E) Risk Monitoring Indicators & Pillar 3 Benchmarking.
o
Fit-for-55 Climate Risk Stress Test
Results.
o
Anti-Money Laundering (AML) Validation
– Onboarding and Transaction
Monitoring (SIRON).
o
Corporate Sustainability Reporting Directive
(CSRD) Governance Gap Analysis Status
Update.
o
Double Materiality Impact – Overview.
o
Discussion of the Digital Operational
Resilience Act (DORA) Gap Assessment & Results.
o
Semi-Annual Update by the Responsible BoD Member
for Climate-Related and Environmental
Risks.
6.4
Remuneration Committee
The
HoldCo/Bank’s
Boards
have
delegated
to
the
respective
RemCos
the
responsibilities
(a)
to
provide
specialized
and
independent advice for matters relating
to remuneration
policy and its implementation at HoldCo/Bank Group
level and for
the
incentives
created
while
managing
risks,
capital
and
liquidity,
(b)
to
safeguard
the
proper
exercise
of
its
duties
and
responsibilities,
the
efficient
alignment
of
the
personnel’s
remuneration
with
the
risks
the
HoldCo/Bank
undertakes
and
manages and the required alignment between
the HoldCo/Bank and the Group,
and (c) to approve or propose
for approval
all exposures of
Key Management
Personnel
and their relatives
(spouses, children, siblings).
The Non-Executive
Directors of
HoldCo/Bank have the
responsibility to approve
and periodically review
HoldCo/Bank’s remuneration
policy and oversee
its
implementation both at
Bank and Group level.
The
implementation
of the
HoldCo/Bank remuneration
policy
is in
line with
the
provisions
of Laws
4261/2014
and Bank
of
Greece Executive Committee’s
Act 231/2024.
The HoldCo/Bank RemCo is also responsible
to:
●
determine
the
remuneration
system for
the
members
of the
Board
of Directors
and the
senior
executives
and to
make
a
relevant
recommendation
on
them
to
the
Board
of
Directors,
which
decides
on
them
or
to
make
recommendations to the
General Meeting, where
required,
●
propose
to
the
Non-Executive
Directors
of
the
HoldCo/Bank’s
BoD
for
their
approval
the
goals
and
objectives
relevant
to
the
HoldCo/Bank’s
CEO
remuneration
and
evaluate
his/her
performance
in
light
of
these
goals
and
objectives,
●
guide and monitor the external remuneration
consultant (if hired) and ensure that it receives
appropriate reporting
from him/her.
In addition, HoldCo/Bank RemCo ensures that the external consultant is referred
in the HoldCo/Bank’s
annual
report
of
the
year
hired
and/or
completed
his/her
work,
together
with
a
statement
of
any
possible
relationship between him/her
and the HoldCo/Bank or with members
of the HoldCo/Bank’s Board individually.
6.4.1
RemCos Membership/Composition
The HoldCo/Bank RemCos consists of five
(5) independent non-executive Directors.
In
the
event
that
the
Chairperson
of
the
Bank’s
Board
is
a
member
of
the
RemCos,
she/he
cannot
participate
in
the
determination of his/her
remuneration.
6
HoldCo/Bank RemCos’ Terms of Reference
may be found at the HoldCo/Bank websites (
www.eurobankholdings.gr
&
www.eurobank.gr
).
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The HoldCo/Bank RemCos’
composition is outlined below:
RemCo Chairperson:
Cinzia Basile,
Non-executive Independent Director of the
Board
Members:
Jawaid Mirza,
Non-Executive Independent Director of the
Board
Alice Gregoriadi,
Non-Executive Independent Director of the
Board
Irene Rouvitha Panou,
Non-Executive Independent Director of the
Board
John Arthur Hollows,
Non-Executive Independent Director of the
Board
It
is noted
that
during
2024
and following
NomCos’
recommendations
for
the
recomposition
of
the
HoldCo/Bank’s
BoDs
Committees, the HoldCo/Bank’s BoDs decided on 30.05.2024,
28.06.2024 and 23.07.2024:
●
to appoint Ms.
Irene Rouvitha Panou as new
RemCos’ member in replacement of Mr. Geroge Chryssikos who
decided
not to pursue
renewal of
his term
to the
new HolDCo/Bank
BoDs (that were
appointed by the
HoldCo/Bank AGMs
of 23.07.2024)
and Mr. John Arthus Holl
ows as new RemCos’ member
●
Following
the
decision
of the
discontinuation
of Vice
Chair’s
role
on the
BoDs and
certain
committees (including
HoldC/Bank
RemCos)
upon
the
conclusion
of
Mr.
Georgios
Chryssikos’
term,
Mr.
Jawaid
Mirza
(previous
Vice-
Chairperson of
HoldCo /
Bank RemCos)
to be
appointed in
RemCos as
member.
The
Chair’s responsibilities
to be
assumed by the most senior
independent non-executive directors present at meetings
in the Chair’s absence.
6.4.2
RemCos meetings
HoldCo/Bank RemCos meet at least twice a year.
6.4.3
Attendance to the RemCo meetings
During 2024 the attendance details for
the Remuneration
Committees were as follows:
Company
Meetings
Average ratio of
Directors’ attendance
2024
2023
2024
2023
HoldCo
11
12
100%
97%
Bank
11
12
100%
98%
It is noted that
in 2024, representation
proxies were
provided for
all missed meetings
in HoldCo/Bank RemCos,
leading the
overall
attendance rate (physical and under
representation) at 100% in HoldCo/Bank
RemCos.
6.4.4
RemCo’s Performance
Evaluation
The
2024
self-evaluation
conducted
by
RemCos’
members
reflects
overall
satisfaction
with
the
Committees’
leadership,
preparedness, and agenda management. RemCos’ members demonstrate strong preparedness and active engagement and
these attributes contribute significantly to the Committees’ ability to
make informed decisions and provide meaningful input.
The
evaluation
also
highlighted
opportunities
for
further
enhancement.
Members
noted
the
need
for
improved
material
quality, timelier submissions, and deeper
discussions on remuneration
policies. The Committee’s skillset was also highlighted
as an area
for
possible improvement,
with recommendations
to include
more HR
expertise to
address complex
challenges
and better align the Committee's work with
Eurobank’s strategic
objectives.
Talent
retention emerged
as a priority,
with members
suggesting less reliance
on monetary rewards
and greater
emphasis
on
career
development
and
linking
incentives
to
growth.
Additionally,
strengthening
governance
at
subsidiaries
was
recommended to ensure alignment with
Group-level
objectives.
6.4.5
RemCos' Activity in 2024
For 2024, RemCos’
have amongst others:
Eurobank Holdings
●
Proposed to the Board
of Directors (BoD) for approval
the revised RemCo Terms
of Reference.
●
Reviewed and proposed
to the Non-Executive Directors
for approval the
Remuneration
Policy of the HoldCo.
●
Reviewed and proposed to the Board and the Annual General Meeting (AGM) for approval
the Remuneration Policy
for Directors.
●
Reviewed and proposed to the
Non-Executive Directors for approval
the Group Annual Base Salary Framework
and
the Annual Base Salary Framework
for Top
Management Roles.
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●
Reviewed and proposed to the
Non-Executive Directors for approval
the Variable
Remuneration
- Key Performance
Indicators (KPIs) & Key Risk Indicators
(KRIs) and the Group Variable
Remuneration
Pool.
●
Reviewed and approved
the Material Risk Takers’
List and the Remuneration
Disclosures for 2023.
●
Discussed the remuneration
policy implementation at the
Group level.
●
Discussed the
Remuneration
Policy
Review
– Follow
-up (for
the
years
2022 and
2023), conducted
by
the
Internal
Audit Group.
●
Proposed to the
Board and AGM
for approval
the Board
and Board Committees’
Fees for
Non-Executive Directors
of the HoldCo (Actual Fees
2023 & Estimated Fees 2024).
●
Proposed to the Board
and AGM for approval
the Remuneration
Report for the financial
year 2023.
●
Proposed to the Board
and AGM for approval:
o
The distribution of net profits
to senior management and employees.
o
Approvals in accordance
with Article 86 of Law 4261/2014.
●
Proposed to the
Non-Executive Directors
of the Bank
for approval
the CEO’s
Performance
Evaluation for
2023 and
the CEO’s Financial and Non-Financial Objectives for
2024.
●
Approved the
Remuneration
Disclosures for 2023.
●
Reviewed and proposed
to the Board for
approval the Board
and Board Committees’ Attendance Policy.
●
Reviewed the
implementation of the Board
and Board Committees’ Attendance Policy.
●
Depending on
the
case, approved
or proposed
to the
Non-Executive
Directors for
approval
various remuneration
issues and borrowing requests.
●
Received updates on:
o
Initiatives supporting employees
on the lowest salary levels.
o
The annual pension component.
o
The Benefits Policy.
o
The Voluntary
Exit Scheme effectiveness.
●
Discussed the Top
Management Remuneration
Benchmarking Project.
●
Discussed the Annual RemCo Plan for
2025.
Eurobank
●
Proposed to the Board
of Directors (BoD) for approval
the revised RemCo Terms
of Reference.
●
Reviewed and proposed
to the Non-Executive Directors
for approval the
Remuneration
Policy of the Bank.
●
Reviewed and proposed to the Non-Executive
Directors for approval the
Group Annual Base Salary Framework and
the Annual Base Salary Framework
for Top
Management Roles.
●
Reviewed and proposed to the
Non-Executive Directors for approval
the Variable
Remuneration - Key
Performance
Indicators (KPIs) & Key Risk Indicators
(KRIs) and the Group Variable
Remuneration
Pool.
●
Reviewed and approved
the Material Risk Takers’
List and the Remuneration
Disclosures for 2023.
●
Discussed the remuneration
policy implementation at both
the Bank and Group levels.
●
Discussed the
Remuneration
Policy
Review
– Follow
-up (for
the
years
2022 and
2023), conducted
by the
Internal
Audit Group.
●
Proposed to the Board and Annual General Meeting (AGM) for approval
the Board and Board Committees’ Fees for
Non-Executive Directors of the
Bank (Actual Fees 2023 & Estimated Fees
2024).
●
Proposed to the Board
and AGM for approval:
o
The distribution of net profits
to senior management and employees.
o
Approvals in accordance
with Article 86 of Law 4261/2014.
●
Proposed to the
Non-Executive Directors
of the Bank
for approval
the CEO’s Performance
Evaluation for
2023 and
the CEO’s Financial and Non-Financial Objectives for
2024.
●
Reviewed the
implementation of the Board
and Board Committees’ Attendance Policy.
●
Discussed and
further
submitted to
the Board
for
information
the implementation
of the
Group Subsidiary
Board
Remuneration
Policy across the
Group during 2023.
●
Depending on
the
case, approved
or proposed
to the
Non-Executive Directors
for
approval
various remuneration
issues
related
to
international
subsidiaries,
including
the
remuneration
framework,
performance-related
variable
remuneration,
and remuneration
increases.
●
Depending on
the
case, approved
or proposed
to the
Non-Executive Directors
for
approval
various remuneration
issues and borrowing requests.
●
Received and reviewed
the annual updates from the
RemCo Chairpersons of the Group’s
banking subsidiaries.
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7
●
Approved the
appointment of a new RemCo Chairperson in the
Group’s banking subsidiaries.
●
Received updates on:
o
Initiatives supporting employees
on the lowest salary levels.
o
The annual pension component.
o
The Benefits Policy.
o
The Voluntary
Exit Scheme effectiveness.
●
Discussed the Top
Management Remuneration
Benchmarking Project.
●
Discussed the Annual RemCo Plan for
2025.
6.5
Nomination and Corporate Governance
Committee
Eurobank
Holdings
and the
Bank’s Boards
have
delegated
to the
NomCos the
responsibilities
(a)
to lead
the
process
for
Board and
Board Committees
appointments, including
the
identification,
nomination
and recommendation
of candidates
for appointment
to the Board,
(b) to consider matters
related to the
Board’s adequacy,
efficiency and effectiveness
and (c)
review
the
Group’s
corporate
governance
policies,
procedures
and
arrangements.
The
Committees
were
renamed
Nomination and Corporate Governance
Committees in order to accurately
reflect their expanded purpose.
The NomCo, in carrying
out its duties, is accountable to the Board.
In particular, among others,
the NomCo is responsible:
●
at least
annually and
in accordance
with Board
and Board
Committees Evaluation
Policy,
to assess
the structure,
size, composition and performance
of the BoD and make recommendations
to the BoD with regard
to the need for
its renewal and/or any other
changes it considers appropriate,
●
at least annually and in accordance with Board
and Board Committees Evaluation Policy,
to assess the knowledge,
skills, experience and contribution of individual Board members
and of the Board collectively and report
to the BoD
accordingly,
●
in
the
context
of
Board
and
Board
Committees
Evaluation
Policy
implementation,
to
determine
the
evaluation
parameters
based
on
best
practices
and
ensure
the
effectiveness
of
the
evaluation
of
the
Board,
the
individual
evaluation
of
Non-Executive
Directors,
including
the
Chair,
the
succession
plan
of
the
Chief
Executive
and
the
members
of the
Board, the
targeted composition
of the
Board
of Directors
in relation
to the
strategy
and Board
Nomination Policy,
●
to play a leading role in the nomination process and the design of the succession plan for the members of the Board
and senior management,
●
to review at least once every
two years and recommend
for the
approval of the BoD the
BoD Nomination Policy,
●
to ensure that the nomination process, as this is defined in
the BoD Nomination Policy, is clearly defined and applied
in a transparent manner
and in a way that ensures its effectiveness,
●
to
ensure
that
there
is
adequate,
step-wise
succession
planning
for
Board
members
so
as
to
maintain
an
appropriate
level of
continuity and organizational
memory at
Board level,
especially when
dealing with
sudden or
unexpected absences or departures of Board
members,
●
to monitor
the
Board succession
planning in
order
to ensure
the
smooth succession
of the
members
of the
Board
with their gradual
replacement in order
to avoid the lack of management,
●
to ensure that
the succession
framework
takes into account
the findings
of the
evaluation of
the Board
in order
to
achieve the
necessary changes
in composition
or skills and
to maximise the
effectiveness
and collective
suitability
of the Board,
●
to review at least annually
and always before the initiation of the CEO
succession process the qualifications required
for
the
position of
the
CEO, to
ensure
that there
is a
viable pool
of internal
and external
candidates
and also
to
ensure that
the CEO
is involved
in all the
areas of CEO
Succession Plan,
including the
assessment of
the nominees
for his/her position,
as he deems appropriate,
●
to ensure that the CEO is involved in the succession planning process of the senior executives
at the level of the CEO
minus one, including the assessment of nominees for
the said positions.
As far as
NomCos of subsidiaries
are concerned, neither the HoldCo NomCo nor
the Eurobank NomCo replace them. However,
the
Eurobank
NomCo has
the
overall
responsibility to
oversee
that the
NomCos of
subsidiaries comply
with its
standards,
modus operandi and governance
framework.
7
HoldCo/Bank NomCos’ Terms of Reference
may be found at the HoldCo/Bank websites (
www.eurobankholdings.gr
&
www.eurobank.gr
).
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6.5.1
NomCo Membership/Composition
The NomCo consists of
five (5) non-executive Directors, four (4)
of whom are
independent Directors, including
the Chairperson
who may not serve as the
Chairperson of the Remuneration
Committee.
The NomCo composition is outlined below:
NomCo Chairperson:
Irene Rouvitha Panou,
Non-Executive Independent Director of the
Board
Members:
George Zanias,
Non-Executive Director of the
Board
Jawaid Mirza,
Non-Executive Independent Director of the
Board
Rajeev Kakar,
Non-Executive Independent Director of the
Board
Burkhard Eckes,
Non-Executive Independent Director of the
Board
It
is noted
that
during
2024
and following
NomCos’
recommendations
for
the
recomposition
of
the
HoldCo/Bank’s
BoDs
Committees, the HoldCo/Bank’s BoDs decided on 30.05.2024,
28.06.2024 and
23.07.2024:
●
to appoint Mr.
George Zanias as new
NomCos’ member,
in replacement
of of Mr.
Geroge Chryssikos
who decided
not to pursue
renewal of
his term
to the
new HolDCo/Bank
BoDs (that were
appointed by the
HoldCo/Bank AGMs
of 23.07.2024).
●
Following
the
decision
of the
discontinuation
of Vice
Chair’s
role
on the
BoDs and
certain
committees (including
HoldC/Bank
NomCos)
upon
the
conclusion
of
Mr.
Georgios
Chryssikos’
term,
Mr.
Jawaid
Mirza
(previous
Vice-
Chairperson of
HoldCo /
Bank NomCoCos)
to be
appointed in
NomCos as member.
The
Chair’s responsibilities
to
be assumed by the most senior
iNED present at meetings in the Chair’s absence.
6.5.2
NomCo Meetings
NomCo meets at least twice a year.
6.5.3
Attendance to the NomCo meetings
During 2024 the attendance details for
the NomCo were
as follows:
Company
Meetings
Average ratio of
Directors’ attendance
2024
2023
2024
2023
HoldCo
10
11
98%
100%
Bank
10
11
98%
100%
Directors’ individual attendance rates
at the NomCo meetings in 2024 were
the following:
Name
Eurobank
Holdings
NomCo
Eurobank NomCo
Eligible
to
attend
Attended in
person
(# and %)
Eligible
to
attend
Attended in
person
(# and %)
Irene Rouvitha Panou, NomCo
Chairperson
10
10
100%
10
10
100%
Geroge Zanias, NomCo member
since 23.07.2024
4
4
100%
4
4
100%
Jawaid
Mirza,
NomCo
Vice-Chairperson
until
23.07.2024
and
NomCo member since 23.07.2024
10
9
90%
10
9
90%
Rajeev Kakar
10
10
100%
10
10
100%
Burkhard Eckes, NomCo member
since 23.07.2024
4
4
100%
4
4
100%
Bradley Paul L. Martin, NomCo member
until 23.07.2024
6
6
100%
6
6
100%
It
is
noted
that
in
2024,
Mr.
Jawaid
Mirza
provided
representation
proxies
for
their
missed
meetings
in
HoldCo/Bank’s
NomCos, leading their overall
attendance rate (physical
and under representation)
at 100% in HoldCo/Bank’s NomCos.
6.5.4
NomCos’ Performance
Evaluation
The
2024
self-evaluation
conducted
by
the
NomCos
indicates
overall
satisfaction
among
its
members
regarding
the
Committees’
structured
approach,
thorough
discussions,
and
balanced
composition.
NomCos’
members
believe
that
the
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Committees foster
a collaborative
and inclusive
environment,
enabling high
levels
of participation
and open
expression of
views. The Chairperson
of NomCos is reported to be commendable for
her dedication and effective
guidance.
The
evaluation
also
highlighted
opportunities
for
further
enhancement.
Areas
requiring
ongoing
focus
included
senior
executive
succession
planning
and
talent
retention.
The
Committee
emphasized
maintaining
leadership
continuity
and
resilience across
the Group.
Enhancing diversity also
remains a central
effort
at both the
Board and the
Management level,
with a focus on attracting
candidates with diverse
backgrounds, experiences,
and perspectives.
6.5.5
NomCos’ Activity in 2024
For 2024, NomCos have
amongst others:
Eurobank Holdings
●
Proposed to the Board
of Directors (BoD) for approval
the revised NomCo Terms
of Reference.
●
Reviewed the
Board and Board Committees' 2023 self-evaluation and the Board’s overall
effectiveness assessment
for
further
update to
the Board.
Additionally,
reviewed
and acknowledged
the Action
Plan for
the BoD
Evaluation
2023.
●
Discussed and proposed to the Board for
approval the new
composition of the Board Committees and other
Board
and Board Committees’ matters.
●
In view of
the BoD’s tenure
renewal in 2024,
reviewed
the nomination
process and
proposed to
the Board
and the
AGM for approval
the new BoD and AC members.
●
Reviewed and proposed
to the Board for
approval various governance
and nomination policies, including:
o
CEO Succession Planning Policy.
o
Board of Directors Diversity
Policy.
o
Key Function Holders
Selection and Appointment Policy.
o
Group Governance
Policy.
o
External Engagements Policy.
o
Board and Board Committees Evaluation Policy.
o
C-Level Succession Planning Policy.
o
Senior Management Selection and Appointment
Policy.
o
Board Nomination Policy
(also proposed to the BoD and AGM
for approval).
●
Received an update on the
HoldCo Group Organizational
Chart.
●
Proposed to the Board
for approval
the Internal Governance
Control Manual.
●
Reviewed
and
proposed
to
the
Audit
Committee
and
the
Board
for
approval
the
2023
Corporate
Governance
Statement.
●
Received quarterly updates on governance
-related audit issues.
●
Discussed various governance
-related issues, including:
o
Overview of key
ESG rating agencies (with a focus
on the "G" element).
o
Compliance Risk Assessment (CRA) related
to the Corporate Governance
Framework.
o
Review of the Group's
Internal Governance
Framework.
●
Reviewed, discussed, and approved
(depending on the case) various succession
planning issues, including:
o
CEO Succession Plan.
o
C-Level Succession Planning.
o
Succession planning for the
Group CRO.
●
Approved external
engagements for Board
members.
●
Reviewed the
independence of the Independent Non-Executive
Directors.
●
Reviewed the
attendance of Directors at the
Board and Board Committees.
●
Discussed the NomCo Annual Plan for
2025.
Eurobank
●
Proposed to the Board
of Directors (BoD) for approval
the revised NomCo Terms
of Reference.
●
Reviewed the
Board and Board Committees' 2023 self-evaluation and the Board’s overall
effectiveness assessment
for
further
update to
the Board.
Additionally,
reviewed
and acknowledged
the Action
Plan for
the BoD
Evaluation
2023.
●
Discussed and proposed to the Board for
approval the new
composition of the Board Committees and other
Board
and Board Committees’ matters.
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●
In view of
the BoD’s tenure
renewal in 2024,
reviewed
the nomination
process and
proposed to
the Board
and the
AGM for approval
the new BoD and AC members.
●
Reviewed and proposed
to the Board for
approval various governance
and nomination policies, including:
o
CEO Succession Planning Policy.
o
Board of Directors Diversity
Policy.
o
Key Function Holders
Selection and Appointment Policy.
o
Group Governance
Policy.
o
External Engagements Policy.
o
Board and Board Committees Evaluation Policy.
o
C-Level Succession Planning Policy.
o
Senior Management Selection and Appointment
Policy.
o
Board Nomination Policy.
●
Reviewed and proposed
to the BoD for approval
top management changes (General Manager
level and above).
●
Was
informed
about the
organizational
chart of
Eurobank
and the
organizational
changes of
a functional
nature
approved by the
CEO during the past year.
●
Proposed to the Board
for approval
the Internal Governance
Control Manual.
●
Received quarterly updates on governance
-related issues.
●
Discussed various governance
-related issues, including:
o
Overview of key
ESG rating agencies (with a focus
on the "G" element).
o
Compliance Risk Assessment (CRA) related
to the Corporate Governance
Framework.
o
Review of the Group's
Internal Governance
Framework.
o
Annual implementation report of the
Group Governance
Policy by Eurobank’s
banking subsidiaries.
●
Discussed and/or
approved
various issues
regarding significant
subsidiaries, including
the
selection of
candidates
as Board members of the
Group’s significant subsidiaries.
●
Received and reviewed
the annual updates from the
NomCo Chairpersons of the Group’s
banking subsidiaries.
●
Reviewed, discussed, and approved
(depending on the case) various succession
planning issues, including:
o
CEO Succession Plan.
o
C-Level Succession Planning.
o
Succession planning for the
Group CRO.
●
Approved external
engagements for Board members
and General Managers/Executive
Board (ExBo) members who
are not Board members.
●
Approved promotions
to the Eurobank
hierarchical
level of General
Manager.
●
Reviewed the
independence of the Independent Non-Executive
Directors.
●
Reviewed the
attendance of Directors at the
Board and its Committees.
●
Discussed talent development and mobilization
practices within Eurobank.
●
Discussed the NomCo Annual Plan for
2025.
6.5.6
Board of Directors Diversity
As of 31.12.2024, the representation of the female gender on the Board
complied with the provisions of Greek Law, as outlined
in the HoldCo/Bank Board Diversity Policy (please refer to
the relevant section in this
Statement), which mandates a
minimum
25% representation.
In cases
where
the result
includes a fraction,
the percentage
is rounded
down to
the
previous
integer.
This
confirms
that
the
HoldCo/Bank
is
successfully
meeting
its
diversity
objectives,
particularly
regarding
gender
representation on the
Board.
6.5.7
Senior Management Diversity
The Bank/HoldCo
has taken significant steps
to enhance gender diversity
and support career
growth for
women executives,
creating a pipeline of eligible female professionals
for the Executive
Committee and Board.
A key initiative is the annual C-Level Succession Planning exercise,
which aims to improve the underrepresented
gender ratio
in
the
successors’
pool.
In
the
2024
succession
planning
exercise,
29%
of
the
total
successors’
pool
were
women,
demonstrating a strong commitment
to gender diversity at senior levels.
Additionally,
the Bank
actively participates
in initiatives
such as
"The
Boardroom"
in Greece,
which supports
senior female
leaders
aspiring
to
become
Board
members
in
major
organizations.
By
sponsoring
such
initiatives,
the
Bank
encourages
employees and clients to pursue leadership roles.
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8
The Bank
has also launched
the third
season of the
Women
in Banking (WiB)
programme,
following
the successful
previous
seasons.
WiB
is
a
talent
programme
designed
to
empower
women
within
Eurobank,
helping
them
advance
to
higher
leadership
roles,
drive
transformative
change,
and advocate
for
an inclusive
work
environment.
The
collaboration
among
participants from the
first, second, and third seasons, with
200 mentors and mentees, has created
a strong WiB Community
within Eurobank.
The
Bank’s
Human
Resources
unit
continues
to
explore
additional
measures
to
enhance
diversity
at
senior
management
levels within the
Bank/HoldCo. In 2024, Eurobank
introduced:
●
C-1
succession
planning,
complementing
C-Level
succession
planning,
focusing
on key
roles
reporting
to General
Managers and BU Management teams, while also emphasizing gender diversity.
●
As
part
of
its
ESG
Strategy,
a
DE&I
awareness
training
programme
for
all
managers
in
the
Bank
to
reinforce
inclusivity.
6.6
Board Digital & Transformation
Committee
The
Bank’s Board
Digital &
Transformation
Committee (BDTC)
is a
consultative
body that
reviews
proposals
and gives
its
strategic advice and guidance on
such proposals related to
the Group’s digital, innovation, transformation and cybersecurity,
in
order
to
contribute
in
achieving
the
vision
and
strategic
goals
of
the
Bank.
The
BDTC,
in
carrying
out
its
duties,
is
accountable to the Bank Board.
6.6.1
BDTC Membership / Chairmanship
The BDTC consists of five (5) Directors of whom one
(1) executive and (4) independent
non-executives.
The BDTC composition
is outlined below:
BDTC Chairperson:
Alice Gregoriadi,
Non-Executive Independent Director of the
Board
Members:
Cinzia Basile,
Non-Executive Independent Director of the
Board
John Arthur Hollows,
Non-Executive Independent Director of the
Board
Evangelos Kotsovinos,
Non-Executive Independent Director of the
Board
Stavros Ioannou,
Executive Director of the
Board
It
is
noted
that
during
2024
and
following
Bank
NomCo’s
recommendations
for
the
recomposition
of
the
Bank’s
BoD
Committees,
the
Bank’s BoD
decided
on 30.05.2024,
28.06.2024 and
23.07.2024
a) to
appoint Ms.
Cinzia
Basile as
new
BDTC’s member,
in replacement
of Mr.
Jawaid Mirza (previous
BDTC’s
member), b)
to appoint Mr.
Evangelos Kotsovinos
as
new BDTC’s
member,
in replacement
of Rajeev
Kakar (previous
BDTC’s
Vice Chairperson)
and c) the
Vice Chair’s
role
to be
discontinued on the BoD and certain committees (including BDTC)
upon the conclusion of Mr. Georgios
Chryssikos’ term and
The Chair’s responsibilities to be assumed by the
most senior independent non-executive director present at meetings in the
Chair’s absence.
6.6.2
BDTC Meetings
BDTC meets at least twice
a year and as each time required, also considering that
the annually held Strategy
Away Day is a
forum
in
which
relevant
digital
and
transformation
strategic
matters
are
also
discussed,
while
minutes
are
kept
for
all
meetings.
6.6.3
BDTC Attendance Rate
During
2024,
BDTC
held
four
(4)
meetings
and
the
ratio
of
attendance
was
100%
(vs.
three
(3)
meetings
with
ratio
of
attendance was 94% in 2023).
8
Bank BDTC Terms
of Reference may be found at the Bank websites (
www.eurobank.gr
).
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The Directors’
individual attendance rates at the
BDTC meetings in 2023
were the
following:
Name
Eurobank ‘s BDTC
Eligible to
attend
Attended in
person
(# and %)
Alice Gregoriadi,
BDTC Chairperson
4
4
100%
John Arthur Hollows,
BDTC member
4
4
100%
Cinzia Basile,
BDTC member
since 23.07.2024
1
1
100%
Evangelos
Kotsovinos,
BDTC
member
since
23.07.2024
1
1
100%
Stavros Ioannou,
BDTC member
4
4
100%
Rajeev
Kakar,
BDTC
Vice
Chairperson
until
23.07.2024
3
3
100%
Jawaid Mirza
BDTC member
until 23.07.2024
3
3
100%
6.6.4
BDTC Performance
Evaluation
The
2024 evaluation
of the
BDTC
highlights opportunities
to enhance
its effectiveness.
While the
Committee has provided
valuable
insights,
feedback
suggests
a
need
for
more
outcome-driven
discussions
and
a
stronger
focus
on
high-impact
initiatives.
Non-committee
members
emphasized
the
importance
of
fostering
dynamic
exchanges
on
emerging
digital
opportunities, while some Committee members noted areas
for improvement in strategic focus,
leadership engagement, and
meeting structures, particularly regarding
major projects.
To strengthen
its impact, aligning the
Committee’s activities more
closely with Eurobank’s
digital transformation
objectives
is essential,
supported by
a phased
strategy
and clear
deliverables.
Members highlighted
the
importance of
leveraging
AI
and data
to drive
innovation,
enhance efficiency,
and improve
customer experience
while ensuring robust
governance
and
ethical AI use. Structural refinements, including more focused discussions and streamlined agendas, were also recommended
to enhance the Committee’s
effectiveness.
6.6.5
BDTC’s Activity in 2024
In 2024,
the BDTC
proposed its
Terms
of Reference
(ToR)
for
BoD approval.
Throughout
the year,
the Committee
reviewed
updates on the Eurobank
Transformation
and the Digital Key Performance
Indicators (KPIs) Dashboard.
Additionally,
the
Committee
examined
the
status
of
Generative
AI,
the
Core
Banking
System
in
Eurobank,
and
new
collaboration
and
communication
tools.
It
was
also
updated
on
International
Technology
/
Digital
Initiatives
in
new
geographies,
toured
Eurobank’s
new
premises
in
Nea
Ionia
(Campus
Project),
and
noted
progress
on
innovation
and
customer experience
initiatives.
7
Management Committees
As there is neither a regulatory requirement
nor a business necessity, the CEO has not established committees at the HoldCo
level.
At the Bank level, however,
the CEO establishes committees as needed to
assist in fulfilling his duties
and responsibilities. The
most
significant
committees
include
the
Executive
Board,
the
Strategic
Planning
Committee,
the
Management
Risk
Committee, the Group Asset and Liability Committee, the Central Credit Committees (I & II), the Troubled
Assets Committee,
the Products and Services
Committee (PSC), and the Environmental,
Social & Governance
(ESG) Management Committee.
7.1
Management Committees’ Policy
The
Bank
has
implemented
the
Management
Committees’
Policy,
which
defines
the
framework
and
general
principles
governing
the
establishment,
dissolution,
and
operation
of
a
Management
Committee
(MCo).
This
policy
aligns
with
international
corporate
governance
best practices
and regulatory
requirements,
where
applicable.
It
also establishes
the
minimum requirements for
each MCo’s Terms
of Reference (ToR).
According to the Management Committees’
Policy:
●
The
establishment
of
each
MCo
is
formally
announced
through
a
Management
Act,
which
clearly
defines
the
purpose, composition,
and Chairperson
of the
Committee. This
Management Act
is signed
by the
CEO and, where
applicable, by the responsible
Deputy CEO or General Manager.
●
The
MCo’s
ToR
are
approved
by
the
CEO
and
define,
among
other
aspects,
the
modus
operandi,
including
the
frequency
of
meetings,
quorum
requirements,
and
decision-making
process.
The
ToR
are
reviewed
regularly
and
revised as needed, with any updates also re
quiring the CEO’s approval.
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●
Individuals who
are not
MCo members
or the
MCo Secretary—such
as Board
members,
Bank or
Group subsidiary
officers, or external auditors/consultants—may be invited to attend all
or part of an
MCo meeting, depending on the
topics under discussion. These individuals do not have voting rights, and their attendance is determined by the MCo
Chairperson.
●
The
MCo
Secretary,
appointed
when
the
MCo
is
established
and
stated
in
the
Management
Act,
supports
the
Chairperson in ensuring
the effective
operation
of the
MCo. The
Secretary’s responsibilities
include maintaining an
annual
meeting
calendar,
coordinating
logistics,
recording
attendance,
ensuring
quorum
requirements
are
met,
documenting meeting minutes and resolutions, and issuing extracts of decisions. Additionally,
the Secretary notifies
responsible managers about relevant discussions
or actions required.
●
Each MCo
is required
to define
evaluation
criteria based
on its
ToR
and to
assess its
performance
annually.
If the
Chairperson
identifies
concerns
related
to
the
scope
or
functioning
of
the
MCo,
an
earlier
evaluation
may
be
conducted.
●
The CEO
has the discretion
to dissolve
an MCo at any
time, with
the dissolution
formally communicated
through a
Management Act.
7.2
Executive Board (ExBo)
7.2.1
CVs of ExBo members (other
than BoD members)
The composition of the Executive Board (ExBo), excluding the Executive Members of the Board of Directors who are also ExBo
members, is summarized
below.
The CVs
of Mr.
F.
Karavias (CEO),
Mr. S. Ioannou
(Deputy CEO), and Mr.
K. Vassiliou
(Deputy
CEO) are presented in
the Board of Directors section. Short
biographical details of the remaining ExBo
members are provided
below.
Christos Adam-General Manager,
Group Risk Management, Group
Chief Risk Officer (Group
CRO)
-
Year of birth: 1958
-
Nationality: Hellenic
-
Number of shares in Eurobank
Holdings: 287,792
Mr.
Adam has
been
Group
CRO
since
November
2013
and he
has
served
within
the
Eurobank
Group
as Deputy
General
Manager
(2005-2013),
Head
of
Group
Credit
Control
Sector
(1998-2013)
and
Senior
Account
Officer
&
Senior
Manager,
Corporate Division (1990-1997). In the
past Mr. Adam worked
in ANZ Grindlays Greek Branch, he had the position of Account
Manager in the Corporate
Division.
He
holds
an
MBA
in
Finance
from
the
University
of
Michigan,
Ann
Arbor,
USA,
with
full
scholarship
from
the
Fulbright
Foundation and a Degree
in Economics with Honors from the School
of Economics & Political Sciences, University
of Athens.
Thanasis Athanasopoulos-General
Manager Group Compliance, Group
Chief Compliance Officer
-
Year of birth: 1973
-
Nationality: Hellenic
-
Number of shares in Eurobank
Holdings: 313,087
In the
past, Mr.
Athanasopoulos has served
as Chief Audit
Executive of
the Alpha
Bank Group
and Vice
President -
Audit &
Risk Review of the Mellon Financial Corporation.
He
holds
a BSc,
Business Administration
from
the
Athens
University
of Economics
and
Business,
a MSc,
Banking from
the
University of Reading, a
MSc, Economic History
from the London School of
Economics and he is
certified as a Fellow Chartered
Accountant of ICAEW,
as a Fellow of the
International Compliance Association
and a Certified Director (IDP) by INSEAD.
Iakovos Giannaklis-Deputy
Chief Executive Officer,
Head of Retail & Digital Banking of Eurobank
SA
-
Year of birth: 1971
-
Nationality: Hellenic
-
Number of shares in Eurobank
Holdings: 217,592
He is also
the Vice-Chairman in the Board of Directors of
Worldline Merchant Acquiring Greece S.A. In the past, Mr. Giannaklis
held
BoD
positions
in
the
following
entities
of Eurobank
Group:
Eurobank
FPS
Loans
and Credits
Claim
Management
SA
(2018-2019),
Eurobank
Household
Lending
Services
SA
(2016-2018),
Eurobank
Asset
Management
MFMC
(2014-2017)
and
Eurobank Business Services (2009-2017). He
also held the following posts
in Eurobank: Head of
Retail Banking General Division
(2016-2023),
Head
of
Branch
Network
General
Division
(2014-2016),
Head
of
Branch
Network
Commercial
Development
Sector (2014), and Head of Branch Network Sector (2009-2014).
He has also been
a member
of the
BoDs of Eurolife
FFH Group
Holdings, General
Insurance and
Life Insurance
(2021-2023).
Mr Giannaklis also
served as Group Deputy General Manager, Retail and
Digital, Growth and Transformation in Bank Muscat,
Oman (2023)
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He holds
an MBA from
the
University of
Indianapolis, USA
and a BA
in Business
Administration,
from the
City University
of
Seattle, USA.
Tasos Ioannidis-General
Manager Markets,
Eurobank SA
-
Year of birth: 1968
-
Nationality: Hellenic
-
Number of shares in Eurobank
Holdings: 311,015
In the
past Mr.
Ioannidis has
served
as General
Manager,
Head of
Markets
& Asset
Management (July
2019 -
June 2024),
General
Manager,
Head of
Global
Markets
& Treasury
(April 2015
- July
2019), Deputy
General
Manager,
Head of
Global
Markets
& Treasury
(October
2013 -
March 2015),
Deputy General
Manager,
Group
Treasurer
(April 2009
- October
2013),
Deputy General
Manager,
Group Head
of Trading
(March 2007
- April
2009).
He has also
served
Member of
the BoD,
ERB
Hellas PLC (August 2006 - June 2022), Member of the BoD, ERB Hellas Ltd (Cayman Islands) (August 2006
- December 2022),
as Member
of the
BoD, Eurobank
Asset Management
MFMC (May 2015
- September
2017), Chairman of
the BoD,
Eurobank
ERB MFMC,
former
TT ELTA
MFMC (February
2014 -
September
2015), Member
of the
BoD, Global
Asset Management
SA
(June 2006 - December 2009), and Member
of the BoD, Portfolio
Investment SA (June 2002 - April 2003).
He holds
a MSc
in Shipping,
Trade
and Finance
from
Cass Business
School,
London, UK
and a
BSc,
School
of Mechanical
Engineering from the
National Technical
University of Athens.
Apostolos Kazakos-General
Manager, Group
Strategy,
Eurobank SA
-
Year of birth: 1972
-
Nationality: Hellenic
-
Number of shares in Eurobank
Holdings: 269,681
Mr.
Kazakos has
also served
as CEO of
Eurobank Telesis
Finance,Deputy CEO
of Eurobank
Equities, the
investment banking
and brokerage
arm of
Eurobank
Group
(May 2010
– August
2013), Assistant
General
Manager,
Head of
Group
Strategy
&
Investment Relations,
National Bank
of Greece
(August 2014 –
March 2015),
General
Manager and Head
of the
Investment
Banking,
Restructuring
& Capital
Investment
Division,
General
Bank, Piraeus
Group
(September
2013
–
July
2014), Senior
Executive and eventually
Head of the Investment
Banking Division,
Eurobank Equities
and Telesis
Bank (January 1998 – May
2010).
He holds an MSc in International Securities, Investment and Banking, International Securities Market Association (ISMA) from
the
University
of
Reading,
UK
and
a
Degree
in
Accounting,
Faculty
of
Administration
&
Finance
from
the
International
University of Greece.
Harris Kokologiannis
-General Manager,
Group Finance, Group
Chief Financial Officer (Group
CFO), Eurobank SA
-
Year of birth: 1967
-
Nationality: Hellenic
-
Number of shares in Eurobank
Holdings: 287,215
Mr. Kokologiannis
joined Eurobank
in January 2008
as Head of Group
Finance and Control
until his appointment
as Group
CFO in July 2013.
He has
served
as Audit
Supervisor,
Deloitte (Tax,
Audit, Management
Consultant), Group
CFO (Lafarge
Cement
- Heracles
General Cement Company),
Director of Finance and Control
(L’Oreal
Hellas), Group Financial Manager (PLIAS Group).
He is a Chartered
Accountant in UK,
member of
the Chartered
Institute of Management
Accountant (C.I.M.A.),
UK. He holds
an
MBA
from
the
University
of
Warwick
(UK)
and
a
BA
in
Business
Management
and
Organization
from
the
School
of
Economics and Business Science (ASOEE).
Michalis
Louis-Chief
Executive
Officer
(CEO)
&
Executive
Board
Member
of
Hellenic
Bank
Public
Company
Limited
&
Executive Committee Member of Eurobank
S.A.
-
Year of birth: 1962
-
Nationality: Cypriot
-
Number of shares in Eurobank
Holdings: 391,402
Mr.
Louis has
also served
as Head
of International
Activities General
Division (2014-2024)
& Group
Private Banking
(2019-
2024), CEO of Eurobank
Cyprus Ltd (2007-2024), Member of
the BoD of Eurobank
Private Bank Luxembourg
SA (2014-2024)
and Member of the Supervisory Board
(SB) of Eurobank Bulgaria AD (2015-2024).
Additionally,
he
was
a
Member
of
various
Committees
within
Eurobank
Group
and
served
on
the
Boards
of
multiple
subsidiaries abroad owned by
Eurobank Group.
Earlier
in
his
career,
he
held
Senior
Management
roles
at
Laiki
Bank
of
Cyprus
and
at
an
HSBC
subsidiary
in
New
York,
specializing in Corporate Finance.
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He holds a B.A in Accounting Studies from Ealing College, London, and an M.Sc. in Corporate
Finance & Accounting from the
London School of Economics.
Natassa Paschali-General Manager,
Group Human Resources General
Division, (Group CHRO),
Eurobank SA
-
Year of birth: 1972
-
Nationality: Greek
-
Number of shares in Eurobank
Holdings: 130,859
Mrs.
Paschali
is
the
Group
Chief
Resources
Officer
(Group
CHRO),
since
June
2018.In
the
past
she
has
served
within
the
Eurobank Group as Head of People Engagement (January 2017
– June 2018), Head
of HR, Eurobank Private Bank Luxembourg
SA (parallel assignment), Luxembourg (May 2014
– May 2017),
Head of HR
Line Management, Wholesale Banking (2008-2016).
She also
held positions
in Citigroup
-
Citibank International
Plc as
Head of
HR –
Vice President,
Global Corporate
and Investment
Banking Group,
(July 2006
– June
2008) and
Head of
Training
& Development
– Assistant
Vice
President,
Consumer Banking Group, (February
2004 – July 2006)
She
holds
a
MSc
in
Industrial
Relations
and
Personnel
Management
from
the
London
School
of
Economics
and
Political
Science (1995-1996)
and a BA in English
Language and Literature
from the
University of
Athens, School
of Philosophy (1991-
1995).
Ioannis Serafeimidis-General
Manager, Retail Banking Strategy
& Growth, Chief Retail
Growth Officer,
Eurobank SA
-
Year of birth: 1973
-
Nationality: Hellenic
-
Number of shares in Eurobank
Holdings:
214,271
Mr Serafimidis
is also a
Non-Executive member
of the
BoDs in, Eurolife
FFH Insurance
Group Holdings
SA (since
July 2023),
Eurolife FFH Life
Insurance SA (since July 2023) and Eurolife
FFH General Insurance
SA (since July 2023).
In the past Mr. Serafeimidis
has served as Head of Retail Banking Channels, General
Manager
(2023-2024), Head of Branch
Network, General
Manager (2019-2023),
Executive Director
and Head
of Retail
Banking, Postbank,
Sofia (2014-2019),
Head
of Branch
Network, Postbank,
Sofia (2011-2014),
Senior Executive
Manager and
Head of
Small Business
Banking, Bancpost,
Bucharest (2008-2011), as well as other significant posts in Eurobank’s Branch Network, which he joined in 2002 after a 4 year
incumbency in KPMG Management Consulting in Athens.
He holds an MSc in
International Relations from London School of Economics (UK) and
a BSc in Economics
from the University
College London (UK).
Mrs. Veronique
Karalis,
Deputy Group
Company Secretary,
serves
as the
Secretary
of the
ExBo and
reports
to the
Group
Company Secretariat.
The ExBo manages the
implementation of Group’s
strategy in line with the
Board’s guidance.
The ExBo meets on a weekly
basis or ad hoc when necessary.
The
ExBo
is
in
quorum
and
meets
validly
when
half
of
its
members
plus
one
are
present
or
represented
and
either
the
Chairperson or the longest-serving Deputy
CEO (if chairing)
is present. In
determining the number of members
for the quorum,
fractions, if any,
shall not be counted. The ExBo resolutions
require a majority vote.
The ExBo’s key
tasks and responsibilities are to:
●
manage the implementation
of the Group’s
strategy, in line
with the BoD’s guidance
●
draw up the annual budget and the
business plan
●
approve
issues
concerning
the
Group’s
strategic
choices
(e.g.
partnerships,
share
capital
increase,
issuing
convertibles
and/or
launching
debt
issuance
programs,
mergers,
acquisitions
or
disposals,
the
formation
of
joint
ventures, creation
or dissolution of special purpose vehicles,
dividend distribution and all other
investments or non-
material disinvestments
by the
Group etc.), ensuring
these being in
line with the
approved
Group’s
strategy,
if the
issue under discussion is less than or equal to €40 million. In case though:
a.
the issue under discussion exceeds
€ 40 million,
b.
a decision of the Board is obligatory
by Law or by the Bank’s contractual
commitments,
c.
it is deemed necessary
by the
SPC, taking into account the
complexity and nature
of the strategic
choices
under discussion, the issues concerning
the Group’s
strategic choices are
approved by the
Board following
a relevant proposal by the
SPC (as per its Terms
of Reference)
●
monitor the
performance
of each business
unit and country
against budget and ensure
corrective
measures are
in
place wherever
required
●
decide on
all major
Group’s
initiatives
aiming
at transforming
the
business and
operating
model, enhancing
the
operating efficiency
and cost rationalization,
improving organizational
and business structure
●
ensure that adequate systems of internal controls
are properly
maintained
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9
●
review and approve
Bank’s Policies
and other governance
documents
that are related to its responsibilities and/or
are of critical importance to the
Bank,
●
review the
performance
of any Committee and /or individuals
to whom it has delegated
part of its responsibilities,
as approved
●
ensure adequacy of Resolution Planning governance,
processes and systems
●
hire and retain external consulting firms and approve
their compensation and terms
of engagement in accordance
with Bank’s policies and procedures
●
hire
and
retain
investment
banking
advisors,
and
approve
their
compensation
and
terms
of
engagement,
in
accordance with Bank’s policies and procedures,
where applicable
By
the
date
of
issuance
of
the
2024
Corporate
Governance
Statement,
ExBo’s
self-evaluation
for
2024
was
in
progress.
According
to ExBo’s
self-evaluation
for
2023,
it was
determined
that
its overall
performance
remained
strong
in all
areas
with a slight
decrease vs. last
year. Members of ExBo discussed
the following considerations: i) number of items
in the agendas
being excessive,
ii) Meetings’
agenda being
more
focused
on regulatory
and operational
and less
strategic
and business
oriented and iii) supporting material being lengthy and the
necessity of an executive summary.
7.3
Strategic Planning Committee
The primary purpose of the SPC is to support Management in planning, developing,
and implementing the Group’s
strategy.
Additionally,
the
SPC
is
responsible
for
recommending
certain
strategic
initiatives
to
the
Board
for
consideration
and
approval.
The key tasks and responsibilities
of the SPC are:
●
To
ensure
that
the
Group
establishes
a
well-defined,
planned
medium-term
strategy
aligned
with
the
Board’s
guidance and the approved
business plan.
●
To
review
the
key objectives
and goals
within the
framework
established by
the
Executive
Board’s annual
budget
and business plan, as well as major business initiatives, prior
to their submission for Board
approval.
●
To
review,
analyze,
and
deliberate
on
issues
concerning
the
Group’s
strategic
choices—such
as
strategic
partnerships,
capital
increases,
issuance
of
convertible
or
debt
instruments,
mergers/demergers,
acquisitions
or
disposals, joint ventures,
creation or dissolution
of special purpose vehicles, dividend distributions,
and other
major
investments or divestments—ensuring alignment with the approved
Group strategy.
The SPC will formulate relevant
proposals to the Board
if:
a)
The matter under discussion exceeds €40
million, while lower amounts
are approved by the Executive Board.
b)
A decision by the Board
is required by law or by the
Bank’s contractual commitments.
c)
The
SPC
deems Board
consideration
necessary
due to
the
complexity or
nature
of the
strategic
choices
under discussion.
●
To
submit proposals
to the
Board
for
approval
concerning
the
strategy
and budget
of the
property
portfolio,
as
outlined in the Service
Level Agreement
between Eurobank and Grivalia Management
Company.
●
To
submit
proposals
to
the
Board
for
approval
concerning
the
acquisition
or
disposal
of
assets,
excluding
repossessed
assets
(as
defined
in
the
Service
Level
Agreement
between
Eurobank
and
Grivalia
Management
Company), with a book value exceeding €10 million.
●
To
submit
proposals
to
the
Board
for
approval
regarding
the
disposal
of
repossessed
assets,
as
defined
in
the
Service Level Agreement between Eurobank and Grivalia Management Company, with a
gross book value exceeding
€20 million.
●
To
maintain
and
implement
all
necessary
measures
for
regulatory
and
internal
capital
management,
ensuring
sufficient
coverage
for
all
risk
types,
including
strategic,
reputational,
and
other
non-quantifiable
risks,
to
consistently meet capital requirements
.
●
To review
and assess all major Group initiatives aimed at
transforming the
business and operating model.
●
To regularly
monitor the Group's strategic
and key performance
indicators, including a segmental perspective.
●
To review
and, when necessary, make recommendations
to the Board on any other matters
of strategic significance
to the Group.
The SPC meets on a weekly
basis or ad hoc, when necessary.
The
SPC is
in quorum
and meets
validly when
a) half
of its
members
plus one
are present
(fractions
are excluded
from the
computation),
provided
that
at least
three
members
are present
and b)
SPC’s Chairperson
or the
longest serving
Deputy
CEO in attendance,
entitled to chair the Committee, is present.
Decisions are passed by majority vote. In
case of a tie of votes, SPC’s Chairperson has the casting vote.
If SPC’s Chairperson
is absent, the longest serving Deputy CEO in attendance,
entitled to chair the Committee, has the casting vote.
9
Information regarding current composition and short biographical details of its members may be found at the Bank’s website (www.eurobank.gr).
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10
11
By
the
date
of
issuance
of
the
2024
Corporate
Governance
Statement,
SPC’s
self-evaluation
for
2024
was
in
progress.
According
to
SPC’s
self-evaluation
for
2023,
it was
determined
that
its
overall
performance
and
all
the
specific
areas
of
evaluation
i.e. the
profile and
composition, the
organization
and administration
and the
key tasks
and responsibilities,
are
strong.
7.4
Management Risk Committee
The main responsibility of the MRC is to oversee
the risk management framework
of Eurobank S.A. (“the
Bank”). As part of its
responsibility,
the
MRC
facilitates
reporting
to
the
BRC
on
the
range
of
risk-related
topics
under
its
purview.
The
MRC
proactively
supports the
Group
CRO to
identify material
risks, in
addition
to those
identified independently
by the
Group
CRO and the
Group Risk
Management General
Division, and to
promptly escalate
them to
the BRC
and assists the
Group
CRO
in
ensuring
that
the
necessary
policies
and
procedures
are
in
place
to
prudently
manage
risk
and
to
comply
with
regulatory requirements.
As part of its responsibility, the
MRC, facilitates reporting to the
BRC on the range of risk-related
topics under its purview.
The
MRC understands
and evaluates
risks, addresses
issues, promotes
the
implementation
of risk
policies
and informs
the
BRC
of
the
Group’s
risk
profile.
Furthermore,
the
MRC
assists
the
BRC
in
defining
risk
management
principles
and
methodologies, thereby ensuring that the Group’s risk management framework contains processes for identifying,
measuring,
monitoring, mitigating and reporting the current
risk profile against its risk appetite, limits and performance
targets.
Specific responsibilities performed
by the MRC are relevant
to the following
areas:
●
Alignment of Business Plan with Risk Appetite
●
Provisioning
●
Risk monitoring, reporting and remediation
●
Stress Testing Programme
●
Regulatory required Stress Tests
(EBA / ECB)
●
Group ICAAP and ILAAP
●
Group Recovery
Plan
●
Internal Model approval, results
monitoring and reporting
●
BCBS 239 – Risk Data Aggregation and Risk Reporting (RDARR)
●
Resolution Planning
●
Reporting
●
Significant Risk Transfer
(SRT)
The
MRC achieves
quorum when
at least
five of
its members,
including the
Chairman, are
present. Selected
attendees can
be invited to the
MRC meetings, when
the topics
for discussion
fall under
their remit
or they
have the
requisite expertise
to
constructively participate. The
finalized minutes are distributed to the MRC and BRC members.
By the date
of issuance of the
2024 Corporate
Governance
Statement, MRC’s self-evaluation
for 2024
was in progress.
For
2023, it was determined that its overall
performance and all the
specific areas of evaluation i.e. the profile
and composition,
the organization
and administration and
the key
tasks and responsibilities, are
strong. Members reviewed
key points raised
by the
self-assessment exercise,
noting that
the main
issues concern
members’
attendance and participation,
the length
of
the
meeting
and
the
agenda
as
well
as
the
timely
submissions.
Members
exchanged
opinions
on
how
to
improve
the
committee
and
agreed
on
the
need
to
educate
the
presenters
to
be
short
and
concise
so
as
to
allow
more
time
for
questions/discussion.
7.5
Group Asset and Liability Committee (G-ALCO)
G-ALCO’s primary mandate is to:
a)
formulate, propose, approve,
implement and monitor – as the case may be
- the Group’s i) liquidity position and risk
profile and its funding strategies and policies
ii) interest rate guidelines and interest
rate risk profile and policies iii)
Capital
investments
-
as
well
as
FX
exposure
and
hedging
-
strategy
iv)
Group’s
business
initiatives
and/or
investments that
affect the
bank’s capital, market
and liquidity risk profile.
Further,
to approve
at a first stage, and
recommend
to BRC
for
final approval
the
respective
country limits
and the
relevant
policy/methodology
(special
attention is given for
the approval/monitoring of
the limits for
countries where Eurobank
has a local presence).
b)
approve
or propose
– as the case
may be - changes
to these policies
that conform
to the
Bank’s risk appetite and
levels
of exposure
as determined
by the
Board Risk
Committee (and
BoD as
the
case may
be) and
Management,
while complying with the framework
established by regulatory/supervisory
authorities.
G-
ALCO
responsibility
is
to
also
review
the
overall
liquidity
positions
and
developments
of
the
Group
on
a
country-by-
country level. In this
context, international subsidiaries’ ALCOs should report on
monthly basis material country developments
10
Information regarding current composition and short biographical details of its
members may be found at the Bank’s
website (www.eurobank.gr).
11
Information regarding current composition and short biographical details of its
members may be found at the Bank’s
website (www.eurobank.gr).
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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and decisions (reflected in respective country ALCO minutes) to G-ALCO,
based on the above principles and their respective
regulatory/supervisory authorities’
instructions and guidelines.
The key tasks and responsibilities
of G-ALCO are the
following:
Regarding
the
approval
of
general
policies
and
guidelines,
compliance
with
regulatory
requirements,
review
of
activities/investments, risks & exposures:
●
Formulate, propose and/or modify - as
appropriate - guidelines and
pricing policies for deposit
and loan interest
rates for
the Group, as well
as review and approve
business proposals for pricing loans
and deposits.
●
Regularly review,
adapt/modify - as
may be required
– and approve
on an annual
basis (or
ad-hoc if needed)
the
Group’s
internal Funds
Transfer
Pricing (FTP)
policies and
FTP annual
budget/business plan
guidelines,
in
order
to
reflect
current
market
developments
and
business
objectives.
With
regards
to
International
Subsidiaries,
local
FTP
policy
is
reviewed,
adapted/modified,
approved
by
local
ALCOs
and
presented
for
approval/acknowledgement
to G-ALCO whenever
it is deemed necessary.
●
Review
International
subsidiaries’
Capital
investments,
FX
exposures
and
hedging
strategies,
and
approve
related actions as may be required.
●
Review and
approve
the Market
& Counterparty
Risk policy
and the
relevant KRIs
and the
RAS framework
for
market and counterparty risks before
their submission to BRC/BoD.
●
Be informed of the MREL requirement and the MREL issuance plan following its approval by the BRC; review and
approve individual MREL instruments’ wholesale
issuance and related costs in the context of the approved
plan
and MREL targets. Similar intra-group requirements by International Subsidiaries are separately assessed when
they arise.
●
Approve the
liquidity-related resolution
deliverables prior
to their submission to the SRB/NRA.
●
Approve the
implementation of MREL and liquidity options
within the context of the Group’s
Recovery Plan.
●
Review
ERB/Group material
market risks
and exposures
across investment
portfolios
(AC, FVOCI
etc) and
risk
dimensions
(e.g.,
interest
rate
risk,
liquidity/currency
mismatch)
as
may
be
identified
by
Markets
&
and/or
GMCRS, and recommend actions as may be required.
●
Approve Markets’
new trading & investment
activities for the
bank’s own books (Trading,
FVOCI, AC).
●
Review
on annual
basis country
exposures/limits and
sovereign
exposure/limits (as
per Sovereign
Risk Policy);
approve
new
Country and/or
Sovereign
limits when
proposed
and modify
existing Country
and/or Sovereign
limits as/when
appropriate.
Any Country
Limit increases
approved
by G-ALCO
also require
BRC approval.
G-
ALCO
should allocate
country
limits between
exposures
in state
bonds/treasury
bills and
exposures
in credit
facilities to state controlled
entities.
●
Within the
context of the
approved
investment framework
for corporate/FI
bond portfolio,
review the
relevant
portfolio
limits
annually.
Review
and
approve
(prior
to
Group’s
formal
commitment)
business
proposals
for
planned
soft
underwriting
commitments.
Review
and
clear
hard
underwriting
commitments;
to
note,
these
would also require prior approval
by the appropriate
Credit Committees as per existing Credit policies.
Regarding Liquidity Risk
●
Within the
scope of the Group’s
Liquidity Risk Policy,
i) monitor the implementation of
the Asset Encumberance
policy and
the
execution
of the
Contingency Funding
Plan process,
as may
be required,
ii) establish,
monitor,
propose and approve
- as may be required - actions for the
maintenance of adequate liquidity buffers
in order
to withstand liquidity stress (or
alternatively,
adverse liquidity) events
and comply (as possible) with regulatory
requirements and internal thresholds
or targets.
●
Ensure
that
the
Group
Liquidity
Risk
policy
is
properly
coordinated,
integrated
and
updated
–
as
may
be
required
and
in
compliance
with
the
relevant
regulatory
framework,
and
market
practices
-
across
Group
entities.
●
Review planned/projected liquidity profile and performance,
monitor regulatory liquidity risk ratios (LCR, NSFR);
review wholesale funding strategies
and initiatives, and approve
related actions for the
Bank/Group.
●
Report
the
Bank’s
liquidity
position,
projections
and
risks,
recommend
actions
related
to
liquidity
risk
management
as
may
be
required
to
the
Board
Risk
Committee
(BRC)
and
BoD),
and
implement
/
monitor
related BRC and/or BoD decisions.
●
Review regulatory liquidity ratios,
liquidity stress tests, and internal liquidity related warning indicators.
Review
material liquidity
risks; formulate,
approve,
and propose
to MRC
related stress
test scenarios.
Formulate
and
implement action
plans in case
regulatory liquidity ratios
and indicators’
evolution
(and/or stress tests
results)
may so require, in the context of the
Group’s policies,
risk appetite and regulatory framework.
●
Determine
the
appropriate
KRIs
and
related
framework
for
the
monitoring
of
liquidity
risk,
approve
the
proposed KRIs and framework
before their
submission to BRC and BoD.
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●
Review
and approve
the
periodic
funding
plan,
including
the
funding
plan which
is
prepared
for
the
ILAAP/
ICAAP
exercise,
and
take
its
results
into
consideration
in
its
decision
making
process
as
appropriate.
Also,
review and approve
the LCR restoration
plan and the related funding
plan, and any major changes to it.
Regarding Interest Rate Risk in the
Banking Book (IRRBB) and Credit Spread Risk in the
Banking Book (CSRBB), G-ALCO (as
delegated by
the
BoD and
BRC) has
the
overall
responsibility for
the
monitoring and
management of
said risks,
and clear
authority over the
units responsible for taking such risks.
More specifically,
G-ALCO’s tasks, authorities and responsibilities are
to:
●
Formulate
the
Group’s
IRRBB and
CSRBB Policies’
framework
and assumptions
(e.g., models,
stress scenarios
etc.) before its submission to BRC/BoD; review
and approve the
Group’s strategies
for managing relevant risks
●
Review
and
approve
the
Group’s
guidelines
for
the
systems
used
for
IRRBB
and
CSRBB
monitoring
and
assessment; further
propose to BRC for
final approval
●
Formulate the risk appetite and appropriate exposure limits
(RAF thresholds) for the IRRBB and
CSRBB; propose
for approval
to BRC and BoD;
●
Establish a comprehensive IRRBB and
CSRBB reporting and
monitoring framework to regularly assess the IRRBB
and
CSRBB
exposure
against
the
respective
limits
(as
they
are
established);
GMCRS
is
the
responsible
monitoring/reporting unit
●
Ensure
that
adequate
controls
and
procedures
are
in
place,
and
appropriate
management
actions
are
triggered, when set limits and early warnings levels
are breached
●
Evaluate the
performance,
and impact, of
risk management
strategies
applied to relevant
exposures (interest
rate, credit risk) on EVE and NII in the
context of the IRRBB/CSRBB Policy
and Management targets
●
Approve
the Economic Hedging
Framework
and propose its
approval to
BRC/BoD (also part of
the IRRBB
and
CSRBB Policy)
●
Define the
high-level risk
management strategy
on a periodic
basis - quarterly
or ad hoc as may
be required -
in the context of the Economic Hedging
Framework (established to hedge the bank’s interest rate risk and credit
risk exposures on a
portfolio basis). Further,
to monitor and
evaluate the outcome of hedging strategies, request
their extension or
termination, escalate
significant developments
to BRC/BoD, monitor the
RAF thresholds and
the effect
of hedging strategies on the
CAD ratio and Bank results.
●
Review
and
approve
proposals
to
use
new
products,
or
engage
in
new
activities
-
related
to
risk
taking
or
hedging strategies,
prior to
acquisition or
implementation,
to ensure
that the
resources
required
to establish
sound and effective IRRBB management of the product
or activity have been identified, the proposed activities
are in line with the institution’s overall
risk appetite and RAS, and that procedures to identify, measure,
monitor
and control
the risks
of the
proposed product
or activity have
been established.
It should be
ensured that
the
IRRBB characteristics of these
new products and activities are well
understood.
●
Approve major hedging or risk-taking initiatives
in advance of implementation. Ensure that positions related
to
internal risk transfers
between the non-trading
book and the trading
book are properly
documented.
Key reports reviewed
by G-ALCO:
●
Loans and Deposits evolutions
(Greece and International)
●
Deposits Structure (Core, Time
Deposits)
●
Deposit rates evolution
(per business unit) and market share evolution
(Greece)
●
LCR & NSFR evolution
on a monthly basis (at a Solo and Group level)
●
FTP budget/business plan guidelines and funding cost
●
Sources and Uses of funds at Group/country
level, secured funding report
●
Liquidity buffer analysis (Solo,
Group, and per country).
●
Liquidity stress tests
●
Liquidity risk analysis/sensitivities
●
Interest Rate Gap report
●
Market risk analytics reports (PV01 in FVOCI
and AC, VaR analysis, historical
simulation results and reporting of
the relevant
KRIs for MTM exposure
in OCI & AC,
evolution of
RWAs for
market risk, reports on
the level
of KRIs
related to market risk.
●
IRRBB reports:
sensitivity of
NII
and sensitivity
of EVE
per
regulatory
framework
(EBA IRRBB
guideline)
& per
internal framework
●
Greek sovereign
exposure report (internal and regulatory)
●
RWA movement
report
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12
●
Secured funding analysis report
●
Quarterly report on economic hedging positions
●
International subsidiaries’ liquidity buffers
and regulatory ratios
●
International subsidiaries’ FX net investment
hedging analysis
Annually / or more frequently if needed:
●
Internal or external auditors reports with reference
to G-ALCO areas of responsibility.
●
Regulatory Reports with reference
to G-ALCO areas of responsibility
G-ALCO convenes once
a month and/or whenever
required.
Required
quorum
for
G-ALCO
meetings
to
be
effective
is
six
members.
In
order
to
have
a
quorum
the
presence
of
its
Chairperson and a
minimum of three
(3) SPC members
is required.
Decisions on issues
are to be
taken by majority;
in case
of a tie
vote,
the issue
under discussion
is escalated
to ExBo.
Additionally,
under exceptional
circumstances,
decisions may
be taken by circulation,
which is equal to a decision of the G-ALCO, even
if no meeting has taken place. A relevant approval
memo is then issued by the
Secretary.
During 2023 an extensive review and update of G-ALCO’s
Terms
of reference
was performed, with the
process completed in
Q4
2023,
while
the
membership
composition
also
changed.
In
this
context,
the
committee’s
performance
review
was
extended to
include 2024
for completeness;
it was determined
that: i)
G-ALCO
members’
composition and
engagement is
well appropriate,
and the committee’s
performance
is well satisfactory
ii) the Committee continues
to function effectively
in
relation
to its
mandate
and responsibilities,
with
members
actively
engaging in
critical
discussions
during
meetings,
with
special focus
on topics regarding
key risk
and regulatory/supervisory
issues iii) in
light of the
complexity and importance
of
issues arising,
the
continued evolution
of the
regulatory
framework
and complexity,
and the
emergence
of additional
risk
considerations/requirements
or activities, G-ALCO
should continue to improve
its organizational
and operational
efficiency
and
further
increase
the
scheduled
frequency,
and/or
length
of
meetings
(as
possible),
as
may
be
required
to
remain
as
effective.
Said action was already implemented for
the 2025 scheduled meetings
plan.
7.6
Central Credit Committees
7.6.1
Central Credit Committee I
The main objective
of Central Credit Committee I (CCCI)
is to ensure the objective
credit underwriting of relevant
exposures
of Greek
corporate
performing
and private
banking clients,
in accordance
to the
Risk Appetite
Framework
and the
Credit
Policy Manual of the Bank and in a way that
balances credit risk and return on equity.
The
CCCI is
chaired by
an independent to
Business and
Risk Professional,
convenes at
least once
a week
and all meetings
are minuted. Decisions are taken unanimously. If unanimity is
not achieved, the credit request is escalated by the Chairperson
to the
next (higher)
approval
level requiring
a unanimous decision.
In case
of non-unanimity the
final decision
lies with
the
Management Risk Committee (MRC), by majority voting.
The
main duty
and responsibility
of the
CCCI
is to
assess
and approve
all credit
requests
for
clients in
the
Greek
related
corporate
performing
and
private
banking
portfolio
of
a
total
exposure
above
€50mio
and
unsecured
exposure
above
€35mio. For total exposure exceeding €75mio and unsecured exposure exceeding €50mio, additional approval
by the GCRO
is required, while for
total exposure exceeding €150mio and unsecured
exposure exceeding €100mio, additional approval
by
the CEO is required. Furthermore,
for exposures higher than
10% (or 20% for selected borrowers
where no single risk exists) of
the Bank’s regulatory
capital the additional
approval of
the Management
Risk Committee (MRC) is required.
Subsequently,
the final approval is granted
by the Board Risk Committee (BRC).
7.6.2
Central Credit Committee II
The main objective
of the Central Credit
Committee II (CCCII) is the same as for
the CCCI for
lower levels
of exposure.
The CCCII convenes
at least once a week and all meetings are
minuted. Decisions are taken unanimously.
If unanimity is not
achieved, the
request is escalated by the Chairperson
to the next approval
level.
The main duty
and responsibility of
CCCII is to
assess and
approve all credit requests for clients
in the Greek related
corporate
performing and private banking portfolio for total exposure from €20mio up to €50mio and unsecured exposure from €10mio
up to €35mio and retail exposures for
total limits above €3mio.
By the date of issuance of
the 2024 Corporate Governance Statement, Committee’s self-evaluation for 2024 was in progress.
12
Information regarding current composition and short biographical details of its
members may be found at the Bank’s
website (www.eurobank.gr).
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14
15
7.7
Troubled Assets Committee
The Troubled
Assets Committee
(TAC)
is established according
to the
regulatory provisions.
The main
purpose of TAC
is to
act as an independent
oversight
body, closely
monitoring the
Bank’s troubled
assets portfolio
and the
execution of its
NPE
Management Strategy.
The
Committee
meets
at
least
once
per
month
and/or
whenever
required
if
the
majority
of
the
members,
including
the
Chairperson, are
present. Decisions
are taken
by majority,
are minuted and
circulated as
appropriate.
The Chairman
has a
castin vote.
TAC
cooperates
with Group Risk
Management to reach
a mutual understanding and develop
an appropriate methodology
for
the evaluation
of the
risks inherent
in the
portfolio
management. TAC’s
propositions
regarding NPE
policy updates
are
submitted to the Board Risk Committee. In exceptional
circumstances, decisions may be taken by
circulation.
TAC’s main responsibilities
are to:
●
review internal reports
regarding troubled assets management
under the regulatory
provisions,
●
approve
the
available
forbearance,
resolution
and closure
solutions
by
loan
sub-portfolio,
and monitor
their
performance through
Key Performance
Indicators (KPIs),
●
define the criteria to assess the sustainability of credit
and collateral
workout solutions through
the design and
use of “decision trees”,
●
approve, monitor and assess pilot
modification programmes
and
●
supervise and provide guidance and
know-how to the respective troubled assets
units of Eurobank’s subsidiaries
abroad.
By the date of issuance of
the 2024 Corporate Governance Statement, Committee’s self-evaluation for 2024 was in progress.
For
2023,
the
evaluation
concluded
that
the
committee
operates
effectively,
in
the
areas
of
Profile
and
Composition,
Organization
&
Administration
as
well
as
regarding
the
Key
Tasks
and
Responsibilities.
However,
the
evaluation
also
identified that
while the
overall
quality and
quantity of
information
submitted related
to the
proposals for
assessment by
the TAC
members is adequate, there
is room for further
enhancement on providing more
details on the quantification of the
impact
and measurable targets as well as indicating the monitoring frequency of all new remedial/work-out proposals. Such
enhancements will benefit TAC
members make more informed
decisions.
7.8
Products & Services Committee (PSC)
The
Products
& Services
Committee (PSC)
is responsible
for
developing and
supervising the
governance
framework
for
the
products and
services offered
to Eurobank’s
clients in Greece
through the
physical and alternative
channels, in accordance
with the supervisory and regulatory
requirements. A governance
framework
assessing the financial and non-financial risks is
in place. The
PSC approves
all new products
& services
as well as
significant modifications
in existing ones. The
Committee
also implements a periodic review of all products and services,
according to their risk profile to determine their continuation,
modification or discontinuation. The
products and services of Remedial & Servicing Strategy are
excluded and are under the
responsibility of TAC
(Troubled
Assets Committee).
PSC convenes once a month and/or whenever
required.
The
PSC
is in
quorum
and
meets
validly
when
half of
its
members
plus
one
are
present
(fractions
are
excluded
from
the
computation).
For
quorum,
the
Chairperson
or
the
Vice-Chairperson
(in
case
of
Chairperson’s
absence)
should
be
also
present.
Decisions require,
as a minimum,
a majority vote
of 50%+1
of the
members present
in the
meeting and
are recorded
in the
meeting’s minutes.
In case of a tie vote, the
Chairperson or the Vice
-Chairperson (in case of Chairperson’s absence)
has the
casting
vote.
All members
of the
PSC have
equal voting
rights. In
case
of no
reaching a
decision
due to
disagreement
of
Members, the issue under
discussion is escalated to the Executive
Board (ExBo).
Additionally,
decisions may
be taken
by circulation,
which is
equal to
a decision
of the
Committee, even
if no meeting
has
preceded.
No
resolution
can
be
deemed
for
high
risks
products/services
by
circulation.
They
will
be
submitted
to
a
PSC
Meeting for discussion and approval
or rejection.
By the date of
issuance of the 2024
Corporate Governance Statement, Committee’s self-evaluation for 2024 was in progress.
According to the Committee’s 2023 self-evaluation, its
performance was assessed as very strong, it
functions effectively,
adds
substantially to the governance
model of the Bank and its Members demonstrate
a high level of commitment.
7.9
Sustainability Management Committee (SMC)
The
primary
mandate
of
the
SMC
is
to
provide
strategic
direction
on
sustainability
initiatives,
review
the
Sustainability
Strategy,
Net Zero
targets and transition
plans prior to approval,
integrate the
elements of the
Sustainability Strategy
into
13
Information regarding current composition and short biographical details of its members may be found at the Bank’s website (www.eurobank.gr).
14
Information regarding current composition and short biographical details of its members may be found at the Bank’s website (www.eurobank.gr).
15
Information regarding current composition and short biographical details of its members may be found at the Bank’s website (www.eurobank.gr).
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the
Bank’s
business
model
&
operations,
approve
changes
in
eligible
assets
of
Green
Bond
and
Sustainable
Finance
Frameworks,
regularly
measure
and
analyze
the
progress
of
the
Sustainability
Strategy
goals
and
performance
targets,
ensure
the
proper
implementation
of
Sustainability-related
policies
and
procedures,
in
accordance
with
supervisory
requirements and voluntary
commitments.
SMC
convenes
four
times
a year
and/or
ad hoc
when
necessary.
Other
Bank employees,
depending on
the
subject
to be
discussed, may be invited as deemed appropriate.
Required
quorum
for
SMC
meetings
to
be
effective
is
eight
members.
In
order
to
have
a
quorum,
the
presence
of
its
Chairperson and a minimum of seven (7) members is required. Decisions on issues are taken by majority.
In case of a tie vote,
the
Chairperson has
the
casting vote.
Whenever
a decision
of the
SMC is
not reached
unanimously,
this is
recorded
in the
minutes along
with the
opinion of
the minority.
All meetings
and decisions
are minuted
by the
Committee’s Secretary
and
Required
quorum
for
SMC
meetings
to
be
effective
is
eight
members.
In
order
to
have
a
quorum,
the
presence
of
its
Chairperson and a minimum of seven (7) members is required. Decisions on issues are taken by majority.
In case of a tie vote,
the
Chairperson has
the
casting vote.
Whenever
a decision
of the
SMC is
not reached
unanimously,
this is
recorded
in the
minutes along
with the
opinion of
the minority.
All meetings
and decisions
are minuted
by the
Committee’s Secretary
and
distributed to SMC members.
The evaluation highlighted the need to strengthen Committee’s oversight of sustainability training and awareness initiatives,
remuneration
practices that link Sustainability criteria
and the sustainability controls and procedures
in place.
7.10
Ethics Co
The
task of
the
Ethics Committee
is to
ensure
that
the
Eurobank
Group’s
Code of
Conduct &
Ethics as
well
as the
Bank’s
Statute
of
Internal
Service
is
observed,
to
interpret
and
constantly
enrich
it,
as
well
as
to
contribute,
generally,
to
the
formulation
of a code
of values with
which the
behaviour of the
officers
and personnel of
Eurobank,
as well as
that of third
persons that regularly collaborate
with the Bank, must comply. Adherence
to the rules of ethics contributes, on the one hand,
to
the
protection
of
dignity
and
personality
of
the
personnel,
and
on
the
other
hand,
to
the
good
reputation
and
the
protection of the
interests of the Bank.
The Ethics
Committee convenes
once a month,
if there
are issues to
be discussed or,
exceptionally,
more frequently,
in case
of an
emergency,
in a
place
and time
that
are
stated
in the
agenda. The
Ethics
Committee
may convene
either
with
the
physical presence of its members,
or by electronic means. The
Committee shall act unanimously.
By the date of issuance of
the 2024 Corporate Governance Statement, Committee’s self-evaluation for 2024 was in progress.
Ethics Committee’s performance
was evaluated for the
first time in February of 2023 and it was determined that
it functions
effectively,
especially in the
areas of Profile
& Composition as well
as Organization &
Administration.
The Ethics
Committee
encourages critical discussion and a healthy
challenging of corporate tisk culture.
8
Key Control
Functions
As part
of its
overall
system of
internal
controls,
HoldCo/Bank
have
established
a number
of dedicated
control
functions
whose
main
responsibility
is
to
act
as
independent
control
mechanisms
thus
reinforcing
the
control
structure
of
the
HoldCo/Bank. The most important functions
and their key responsibilities
are described below.
8.1
Internal Audit
8.1.1
Eurobank Holdings
Internal Audit
(IA) is
an independent,
objective
assurance
and consulting
function designed
to add
value and
improve
the
operations
of Eurobank
Holdings. IA
has adequate
organisation
structure
and appropriate
resources
to ensure
that it
can
fulfil its roles
and responsibilities.
Eurobank’s Group
Internal Audit (Group
IA) maintains a quality assurance
and improvement
programme
to ensure that
the
methodology is applied consistently and the objectives and responsibilities of Group IA are met.
Under the framework
of co-
operation
between
IA
and
Group
IA,
IA
assigns
the
assessment
of
the
effectiveness
of
internal
audit
activities
and
conformance with IIA Standards
to Group IA.
In order to safeguard its independence, IA reports
functionally to the Audit Committee and administratively
to the CEO. The
Board
has
delegated
the
responsibility
for
monitoring
the
activity of
the
IA
to
the
Audit Committee
of
the
HoldCo.
IA
is
headed
by
the
Chief
Internal
Auditor
(CIA)
who
is
appointed
by
the
Audit
Committee.
The
latter
also
assesses
the
CIA’s
performance.
The
mission of
IA is
to enhance
and protect
organisational
value by
providing
risk-based and
objective
assurance,
advice
and insight. The key assurance
and consulting responsibilities of IA are to:
●
provide
reasonable assurance
in the
form of
an independent opinion,
as to the
adequacy and effectiveness
of the
governance
and risk
and internal
control
framework
of HoldCo
and adherence
to the
risk appetite
framework.
In
order to form an opinion, IAU establishes and carries
out a programme of audit work (based
on the risk assessment
of the audit universe)
16
Information regarding current composition and short biographical details of its members may be found at the Bank’s website (www.eurobank.gr).
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●
assist
management
in
enhancing
the
system
of
internal
control
including
improvement
of
existing
policies
and
procedures
●
manage effectively
the internal audit process
and resources of IA
●
provide
any information
requested in
writing by
the Supervisory
Authorities and
co-operate
with them
in order
to
facilitate
their
work.
The
AC
and/or Management
shall
always be
advised regarding
information
provided
to the
Authorities
●
carry out any other
specific duties required by the
Regulatory Authorities and/or participate in projects
undertaken
by the Company
●
participate in Company’s projects in an assurance
or consulting capacity
●
liaise with
the
external
auditors and
other
assurance
providers
to share
information,
minimise any
duplication
of
effort and ensure
adequate coverage
of risks
●
assess the
adequacy and
effectiveness
of the
control
functions (such
as risk
management, compliance
or finance)
and involving judgment determine to what extent it is appropriate
to take account of the relevant work undertaken
by these functions
●
strive to maintain an open, constructive and cooperative
relationship with the
Supervisors.
8.1.2
Eurobank
Group Internal
Audit (Group IA)
is an independent, objective
assurance and
consulting function designed
to add value and
improve
the operations
of Eurobank
and its subsidiaries.
Group IA
has appropriate
organisational structure
and resources
to ensure that it can fulfil the
roles and responsibilities as described in relevant
regulations.
Group
IA
comprises
the
“Internal
Audit”,
the
“Forensic
Audit”, the
“International
Audit”
and
the
“Business
Monitoring
and
Organisational Support”.
IA also has
a Quality Assurance,
Standards and Methodology
(QA), to
assess the
effectiveness
of
the
Group’s
internal
audit
activities
and conformance
with
IIA
Standards.
QA
operates
as Centre
of Excellence
for
Audit
Standards
&
Methodology,
acting
as
an
advisor
to
IAG
Management
in
topics
related
to
quality
improvement
and
methodology.
In
addition,
the
Data
Analytics
Centre
of
Excellence
(DAnCoE)
of
Group
IA
aims
to
enhance
people
skills
towards data analytics, enabling the
generation
of data-driven insights and provide
valuable perspectives to Management
of the Group.
In order
to safeguard
its independence,
Group IA
reports functionally
to the
Audit Committee
and administratively
to the
CEO. The
Board has delegated
the responsibility
for monitoring
the activity
of the
Group IA
to the
Audit Committee of
the
Bank. Group IA is headed by the Group Chief Audit Executive (CAE) who is appointed
by the Audit Committee. The latter also
assesses the CAE’s performance.
The key assurance
and consulting responsibilities of Group IA are to:
●
provide
reasonable assurance
in the
form of
an independent opinion,
as to the
adequacy and effectiveness
of the
governance
and risk and internal
control framework
of Eurobank
and adherence
to the risk
appetite framework.
In
order to form an opinion, IAG establishes and carries
out a programme of audit work (based on the risk assessment
of the audit universe)
●
assist
Management
in
enhancing
the
system
of
internal
controls
including
improvement
of
existing
policies
and
procedures
●
manage
effectively
the
internal
audit
process
and
resources
of
both
IAG
and
the
Internal
Audit
departments
of
subsidiaries that
are reporting
directly to
IAG and
assess the
performance
of the
Group’s
internal audit
functions,
which have a direct reporting line
●
follow-up
to ascertain
that
appropriate
action
is taken
on reported
audit findings
within
agreed
deadlines
[Law
3016/02 & Law 4706/20]
●
attend Shareholders’
General Meetings [Law 3016/02 & Law 4706/20]
●
provide
any information
requested in
writing by
the Supervisory
Authorities and
co-operate
with them
in order
to
facilitate
their
work.
The
Audit
Committee
and/or
Management
shall
always
be
advised
regarding
information
provided to the Authorities
●
carry out
any other
specific duties required
by the Supervisory
Authorities and/or participate
in bank wide projects
undertaken by the
Bank
●
participate in Bank projects in an assurance
or consulting capacity
●
liaise with the Legal Services
and Group Human Resources General
Divisions and provide support to the
Ethics and
Operational Risk Legal
Cases Committees
●
liaise with
the
external
auditors and
other
assurance
providers
to share
information,
minimise any
duplication
of
effort and ensure
adequate coverage
of risks
●
assess the
adequacy and
effectiveness
of the
control
functions (such
as risk
management, compliance
or finance)
and involving judgment determine to what extent it is appropriate
to take account of the relevant work undertaken
by these functions
●
maintain an open, constructive and cooperative
relationship with the
Supervisors
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●
assist and advise Management
on the prevention
and detection of fraud
or defalcation
or unethical
practices and
undertake such special projects as required.
8.2
Risk Management
8.2.1
Eurobank Holdings
As part
of its
overall
system of
internal controls
HoldCo has
engaged in
a Service
Level
Agreement
(SLA) with
Eurobank
in
order to
receive
supporting and advisory
services in
all areas of
risk management (credit,
market, liquidity
and operational
risks) undertaken by the
Group.
The most important services
provided through
the above-mentioned
SLA are described below:
●
provision of advice on:
-
Identification, evaluation
and monitoring of credit risk,
-
Ensuring policy
and instructions
(strategy
and products)
recommended
by business
owners
and Servicers
are
aligned to applicable credit policy manual and regulatory
guidelines,
-
Standardization of procedures
and guidelines,
-
Update and maintenance of the risk strategic
framework
master document,
-
Participation in systemic bank consultation
committees,
-
Review new remedial
products and initiatives prior submission
to TAC
or approval
●
coordination of NPE related regulatory
reporting
●
provision
of
input
for
SSM
submission
and
3-year
business
plan,
monthly
MIS
actual
data
(including
Greek
and
International subsidiaries)
●
advising on identification, support/advise, recording
and evaluation of liquidity risks and financial monitoring
●
advising in the identification, assessment,
recording and monitoring of operational
risks (e.g. RCSA, events capture,
outsourcing etc.)
●
advising in the identification,
assessment, recording and monitoring of sustainability risk.
8.2.2
Eurobank
The
Group
Risk Management,
which is
headed
by
the
Group
Chief Risk
Officer
(GCRO), operates
independently from
the
business
units and
is responsible
for
the
identification,
assessment,
monitoring
and measurement
of the
risks the
Bank is
exposed to.
The
major types
of risk
managed by
Eurobank
are the
material risks,
identified through
the
Risk Identification
and Materiality Assessment (RIMA) process
and listed in the relevant RIMA report.
Material risk types include
financial and non-financial risks, indicatively
credit risk, market risk, liquidity
risk, interest rate
risk
and credit
spread risk
in the
banking book,
operational
risk, sustainability
risk, country
risk, reputational
risks, conduct
risk,
risks stemming from strategic projects.
The Group Risk Management comprises the Group Credit, the Group Credit Control,
the Group Credit Risk Capital Adequacy
Control, the Group Market
& Counterparty Risk, the Group Operational and Non-financial Risks, the Group Model Validation
& Governance,
the Group
Risk Management Strategy
Planning Operations
& Sustainability Risk, the
Risk Analytics and the
Supervisory Relations & Resolution
Planning
.
The
GCRO
serves
as a
pivotal
point for
the
risk management
functions.
Centralization
ensures
that
business targets
and
related growth
are combined with a risk conscious perspective,
thus ensuring that the approved
risk appetite is adhered to.
The
GCRO
develops
and formalises
the
Risk Appetite
Framework
(RAF),
defines the
Risk Appetite
Statements
(RAS),
and
submits them
to the
Board
Risk Committee
for
approval.
The
GCRO oversees
the
implementation
of the
frameworks
and
policies for the
identification, measurement
and management of risks.
The GCRO reviews and approves the risk policies before
their submission for approval to the BRC or to the BoD and oversees
their implementation thereafter.
The GCRO reports to the
BRC deviations from the
risk policies or potential conflict with the
approved risk strategy
and risk appetite.
The GCRO is responsible to provide to the BRC
adequate information, so that the Committee can properly assess and advise
the BoD on the Group’s risk
exposures / profile and
risk strategy. The GCRO oversees compliance with approved Risk Appetite
limits, and reports to the BRC the compliance status and any deviations,
as stipulated in the Risk Appetite Framework
(RAF).
Eurobank
has
a
well-established
strategy
and
clear
risk
management
objectives
that
has
to
deliver
through
core
risk
management processes and
methodologies. At a strategic
level, the risk management
objectives are to:
●
identify the new risks relevant
to the Group and assess their
materiality
●
assess the current
and emerging risks as an integral part of the
strategic planning process
17
The Supervisory Relations & Resolution Planning has a dual reporting line to both the Group CRO & the Group CFO
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●
provide opinion for
the Group Business Plan
regarding the risk perspective
on the overall
outcome and reliability of
the Plan
●
ensure that business plan is consistent with Eurobank’s
risk appetite
●
participate actively in decision-making processes
to ensure that risk considerations
are considered appropriately
●
optimize risk/return decisions, while establishing strong and
independent review
●
ensure that business growth
plans are properly supported by effective
risk infrastructure
●
manage risk profile to ensure that specific financial deliverables
remain possible under a range of adverse
business
conditions
●
assist senior executives to improve
the control
and co-ordination of risk taking across their
business
●
cultivate
a
robust
risk
culture
throughout
the
Bank,
encouraging
a
positive
attitude
towards
risk
management,
regulatory compliance and
the internal
control framework,
through strong
risk awareness and ownership,
where all
staff members consider
risk management as an integral part of their
everyday responsibilities
●
provide
the
framework,
procedures
and guidance
to enable
all employees
to manage
risk in
their
own areas
and
improve the
control and co-ordination
of risk taking across the Bank
●
advise and support Eurobank Holdings in risk
management according to the
agreed Service Level
Agreement (SLA)
between Eurobank Holdings
and Eurobank.
Risk
Management
along
with
Compliance
and
other
Units
are
involved
in
the
assessment
of
all
products
and
services
throughout their
lifecycle.
The Group
applies the elements of the Three
Lines of Defence Model for the
management of risk. The Three
Lines of Defence
Model
enhances
risk
management
and
control
by
clarifying
roles
and
responsibilities
within
the
organization.
Under
the
oversight
and
direction
of
the
Management
Body,
three
separate
lines
of
defence
are
necessary
for
effective
risk
management. In particular:
-
Line
1
-
Own
and
manage
risk
and
controls.
The
front-line
business
and
operations
are
accountable
for
this
responsibility as they own the
rewards and are the
primary risk generators.
-
Line 2 -
Monitor risk and
controls
in support of
Executive Management,
providing
oversight,
challenge, advice
and
group-wide direction. These
include the Risk Management and Compliance Units, among others.
-
Line 3
- Provide
independent assurance
to the
Board and
Executive
Management concerning
the
effectiveness
of
risk and control management. This
refers to Internal Audit.
8.3
Compliance
8.3.1
Eurobank Holdings
Eurobank
Holdings
Compliance
is
established
with
the
approval
of
the
Board
of
Directors
and
the
Audit
Committee
of
Eurobank Holdings. It is a permanent
function and independent from Eurobank
Holdings’ business activities so that conflicts
of interests are
avoided. In order
to safeguard
its independence, Eurobank
Holdings Compliance
reports functionally
to the
Audit Committee of Eurobank
Holdings
and for administrative
purposes to the
CEO
. The Audit
Committee in consultation
with the
NomCo, proposes
to the
Board for
approval
the
appointment, replacement
or dismissal
of the
Head of
Eurobank
Holdings Compliance. The performance
of the Head of Eurobank Holdings Compliance
is assessed on an annual basis by the
AC.
The
Head
of
Compliance
attends
all
AC
meetings
and
submits
quarterly
and
annually
reports
(per
regulatory
requirements) summarizing Compliance’s
activity and highlighting the main compliance issues.
Its
mission
is
to
promote,
within
Eurobank
Holdings,
an
organizational
culture
that
encourages
ethical
conduct,
and
a
commitment to compliance with laws and regulations
as well as global governance
standards.
The
main
objective
of
Eurobank
Holdings
Compliance
is
to
ensure
that
Eurobank
Holdings
has
established
an
adequate
system of
internal controls
that allows
it to
operate
in accordance
with the
ethical
set of
values contained
in its
"Code of
Conduct
and
Ethics"
and
in
compliance
with
applicable
laws,
regulations
and
internal
policies.
More
specifically,
for
the
regulatory topics within its scope of responsibilities, Eurobank
Holdings Compliance is mandated to:
●
raise compliance awareness
in Eurobank Holdings
●
provide
advice the
Board of
Directors and
Senior Management
on Eurobank
Holdings compliance
with applicable
laws, rules and standards and keeping them informed
of related developments
●
issue,
as
necessary,
policies
and
other
documents,
in
order
to
provide
guidance
to
staff
on
the
appropriate
implementation of applicable
laws, rules and standards as well as to assist the
business to develop and implement
regulatory compliant policies and procedures
●
review new activities and advise on potential
compliance risks
●
ensure that staff is adequately
trained about compliance issues
18
The administrative reporting line to the CEO does not entail any form of oversight over
Compliance. It is rather intended to facilitate the smooth
day to day administrative processes
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19
●
provide
support
and
challenge,
if
required,
the
business
line
management
regarding
the
effectiveness
of
the
compliance risk management activities
●
monitor
whether
staff
applies
effectively
the
internal
processes
and
procedures
aimed
at
achieving
regulatory
compliance
●
monitor through appropriate
procedures
staff adherence
to internal policies and the
"Code of Conduct and Ethics"
and identify fraudulent activity
●
monitor
timely
submission
of
reports
to
Competent
Authorities
and
report
any
delays
and
fines
for
any
alleged
breaches of regulations to the
AC
●
fulfil any statutory responsibilities and liaise with regulators
and external bodies on compliance issues.
8.3.2
Eurobank
Group Compliance
is established with
the approval
of the
Board of
Directors and
the Audit
Committee of Eurobank.
It is a
permanent function
and independent from
the Bank’s
business activities
so that
conflicts of interests
are avoided.
In order
to safeguard
its independence, Group
Compliance reports functionally
to the
Board of Directors
through Audit
Committee
of the Bank
and for administrative
purposes
to the CEO.
The Audit Committee
in consultation with
the NomCo
proposes
to the Board
for approval
the appointment,
replacement or
dismissal of the
Group Chief
Compliance Officer
(Group CCO).
The performance
of the Group CCO is assessed on an annual basis by the AC. The Group CCO attends all Audit Committee’s
meetings and submits quarterly and annual reports (per regulatory
requirements) summarising Group
Compliance’s activity
and highlighting the main compliance issues.
Its mission is
to promote,
within Eurobank
and its subsidiaries
(Eurobank group),
an organizational
culture that
encourages
ethical conduct through
integrity and a commitment
to compliance with
laws and regulations
as well
as the application
of
international governance
standards.
The
main
objective
of
Group
Compliance
is
to
ensure
that
the
Eurobank
group
has
established
an
adequate
system
of
internal controls that allows
it to operate in accordance
with the ethical set of values contained in its “Code of Conduct and
Ethics” and
in compliance
with applicable
laws, regulations
and internal
policies, as
well as
international
best practices.
In
brief, for the
regulatory topics within its scope of responsibilities, Group
Compliance is mandated to:
●
raise compliance awareness
throughout the Eurobank
group,
●
provide
advice to
the
Board of
Directors
and Senior
Management on
compliance
with applicable
laws, rules
and
standards and keep them informed
of related developments,
●
issue policies, procedures and other documents such as compliance manuals, internal codes of conduct & ethics and
practice guidelines in order to provide guidance to
staff on the appropriate implementation of applicable laws, rules
and
standards
as
well
as
to
assist
the
business
to
develop
and
implement
regulatory
compliant
policies
and
procedures,
●
review new activities and advise on potential
compliance risks,
●
ensure
that
staff
is
adequately
trained
and
frequently
updated
about
compliance
issues
by
designing
training
programs and co-operating
with HR for their
implementation,
●
ensure the development
of a robust compliance risk identification
and assessment framework,
provide support and
challenge, if required, the
business line management
regarding the effectiveness of the compliance risk
management
activities,
●
coordinate compliance risk management actions
performed
by other business
units,
●
monitor
and
test
whether
staff
applies
effectively
the
internal
processes
and
procedures
aimed
at
achieving
regulatory
compliance
and report
to the
relevant
Business Units
any potential
breaches
in order
for
the
latter
to
proceed with the
required improvem
ents,
●
monitor staff
adherence
to internal policies
and the
"Code of Conduct
and Ethics" and
identify potential
breaches
or fraudulent activity,
●
monitor
timely
submission
of
reports
to
Competent
Authorities
and
report
any
delays
and
fines
for
any
alleged
breaches of regulations to the
AC,
●
fulfil any statutory responsibilities and liaise with regulators
and external bodies on compliance issues,
●
supervise,
monitor,
coordinate
and
evaluate
the
activities
of
the
Compliance
Officers
of
the
Bank’s
local
and
international subsidiaries in order
to ensure compliance with Eurobank
group standards.
The scope of activities of Group
Compliance covers the
following core
regulatory topics:
●
Financial Crime
including laws
and regulations
on Anti
Money Laundering
(AML) and
Countering
the
Financing of
Terrorism
(CFT)
and legislation
aimed
at
combatting
Tax
evasion
such
as FATCA
and
CRS
(tax compliance).
The
scope
includes
the
provision
of
timely
and
accurate
responses
to
requests
arising
from
regulatory
and
judicial
authorities for
the lifting of
banking secrecy or
freezing of assets and co-operation
with them.
Financial Crime also
19
The administrative reporting line to the CEO does not entail any form of oversight over
Group Compliance. It is rather intended to facilitate the
smooth day to day administrative processes
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includes
anti
-bribery
and
anti-corruption
legislation.
The
Eurobank
Audit
Committee
in
consultation
with
the
Eurobank NomCo proposes to the Board for approval the appointment, replacement, or dismissal of the Anti-Money
Laundering Reporting Officer
of Eurobank, who may be the same
person as the Group
CCO, and his/her Deputy
●
Conduct related regulations, including:
o
market
Conduct
related
regulation
regarding
the
provision
of
investment
products
and
services
to
clients
including
laws
and
regulations
on
Market
Manipulation,
Insider
Trading,
Unlawful
disclosure
of
inside
information and other
financial crimes,
o
Internal Conduct
and Ethics,
including monitoring
adherence
with the
Group Code
of Conduct and
Ethics and
its related policies, Conflicts of Interest,
insider dealing and manging the Ethics Hotline
o
customer
conduct
laws
and
regulations
(including,
inter
alia,
dormant
accounts
legislation,
BoG’s
Code
of
Conduct for loans, the Payment
Services Directive
and the Deposit Guarantee scheme).
Group
Compliance
has
an
overlay
role
over
the
regulatory
framework
concerning
personal
data
protection,
corporate
governance, prudential regulation
(credit market, liquidity and operational
risk), information & IT security,
cyber security risk,
outsourcing
and
Sustainability
Framework.
In
this
context
Group
Compliance
performs
a
high-level
monitoring
through
compliance risk assessments and monitoring of the
alignment of the Bank’s activities with regulatory
requirements.
The scope of activities can be expanded with the
approval of the
AC.
8.4
Personal Data Protection
8.4.1
Eurobank Holdings
In the
context of Personal
Data Protection,
Eurobank Holdings
has entrusted the
following
functions to
the Bank’s
Personal
Data Protection
Unit with the support of Legal where
needed:
●
consultation and advice regarding the
drafting of privacy notices for the
customers, employees, shareholders
of the
HoldCo and/ or persons with voting
rights and their representatives
in the HoldCo meetings and committees,
●
provision of drafts
of privacy policies, cookies policies and cookies management
tool for the
HoldCo's website,
●
provision of advice in handling
requests and complaints of data subjects,
●
provision
of
advice
for
incident
and
data
breach
management
and
notifications
to
the
competent
authority,
if
required,
●
provision of advice on GDPR policies
and related guidelines.
8.4.2
Eurobank
Personal Data Protection
Unit assists the Data Protection
Officer (DPO) in performing
his duties in an independent manner.
Key tasks include:
●
issues relevant guidelines on GDPR requirements
and provides relevant advice
to involved Units,
●
provides advice, where requested, for
the appropriate technical and organizational measures
to be implemented to
ensure compliance with the
principles of privacy by design and privacy by default,
●
provides advice regarding
the content of privacy notices,
●
provides advice on the
appropriate handling of the
GDPR requests and/or complaints,
●
upon request, provides
advice regarding
the categorization
of the
third parties,
in accordance
with the
GDPR and
any
other
applicable
data
protection
legislation
(controller/
joint
controller/processor/
sub-processor),
and
the
relevant privacy terms to be signed,
●
provides advice to the Incident Management Team on whether the incident must be reported to the data
protection
authority,
●
provides advice, where
requested, as regards the performance
of Data Protection
Impact Assessments,
●
provides advice where
requested as regards the maintenance
of the Register of Processing
Activity.
9
System of Internal Controls
9.1
Principles of Internal Controls
The
Group
has established
a robust
System
of Internal
Controls
that
aligns with
international
best practices
and
utilizes
COSO terminology.
This system is designed to provide reasonable assurance regarding
the achievement of objectives
in key
categories:
●
Efficient
and Effective
Operations:
The
Group's
internal
controls
ensure
that
operations
are
conducted efficiently
and effectively,
promoting productivity and optimal
resource utilization.
●
Reliability and Completeness
of Financial and
Management Information: Internal controls are in place to ensure that
financial and management information
is reliable, accurate, and complete. This
helps in making informed decisions
and maintaining transparency.
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●
Compliance
with
Applicable
Laws
and
Regulations:
The
Group
emphasizes
compliance
with
all
relevant
laws,
regulations, and
industry standards. Internal
controls are
designed to ensure
adherence
to legal requirements
and
mitigate regulatory risks.
The key principles
that underpin the Group’s
System of Internal Controls are
as follows:
●
Control
Environment:
The
control
environment
serves
as
the
foundation
for
all
internal
control
components.
It
includes factors such as management's integrity
and ethical values, recruitment and training policies, organizational
structure,
and
delegation
of
authority.
These
elements
contribute
to
a
strong
control
consciousness
among
employees.
●
Risk
Management:
The
Group
recognizes
the
importance
of
risk
management
in
its
operations.
It
implements
mechanisms
to
identify,
assess,
and
manage
risks
that
may
impact
the
achievement
of
objectives.
The
risk
management framework
is dynamic and evolves
to address new and emerging
risks.
●
Control Activities: Internal control
activities are documented in policies and procedures
that ensure safe operations
and
accurate
record-keeping.
Segregation
of
duties
is
a
crucial
organizational
measure
to
enhance
control
effectiveness,
ensuring that key functions
such as approval, dealing, administration,
and controlling are
separated.
●
Information and Communication:
Effective information
and communication channels are established to ensure
that
relevant
information
is
identified,
captured,
and
communicated
in
a
timely
manner.
This
includes
internal
communication
within
the
organization
and
external
communication
with
stakeholders
such
as
regulators,
shareholders, and customers.
●
Monitoring:
The
Group
conducts
ongoing
monitoring
of
activities
as
part
of
its
operations.
This
includes
regular
management and supervisory activities, internal audits, and independent evaluations of the internal control system.
Internal
control
deficiencies
are
reported
and
escalated
as
necessary,
with
major
issues
reported
to
top
management, the Audit Committee, and the
Board.
Additionally,
the
efficiency
of
the
internal
control
system
is
independently
evaluated
every
three
years
by
a
third-party
auditing firm, in accordance with regulatory requirements.
The evaluation report
is assessed by competent bodies within the
Group and submitted to regulatory authorities for
review and acknowledgment.
9.2
Characteristics of the System of Internal Controls
(SIC)
HoldCo and Eurobank have established key characteristics of their System of Internal Controls (SIC), which are indicative and
not restrictive. These
characteristics include:
●
Code of
Conduct: There
is a
defined Code
of Conduct
along with
processes
for
monitoring its
implementation
to
ensure ethical conduct and adherence
to standards.
●
Organizational
Chart: An approved
organizational chart
is in place,
depicting the
hierarchy
and functions
of each
sector/department clearly defined to ensure effective
management.
●
Audit Committee: The composition and function
of the Audit Committee are outlined to oversee
financial reporting
and compliance.
●
Strategic
Planning:
A
description
of
strategic
planning
processes
is
provided,
including
development,
implementation, and periodic
evaluation of strategic objectives.
●
Action Plans: Long-term
and short-term action
plans for
important activities are
established, with
periodic reports
and identification of deviations
along with justifications.
●
Articles
of
Association:
The
Articles
of
Association
are
complete
and
up-to-date,
reflecting
the
objectives
and
operations of the
entity.
●
Directorates and Departments: Tasks of directorates, departments, and job
descriptions are defined to
ensure clarity
in roles and responsibilities.
●
Policies
and
Procedures:
Policies
and
procedures
for
important
operations
are
documented,
including
internal
controls for
risk management.
●
Compliance
Processes:
Processes
for
compliance
with legal
and regulatory
frameworks
are
established to
ensure
adherence to laws and regulations.
●
Risk Assessment
and Management:
Processes
for
risk assessment
and
management
are
in place
to identify
and
mitigate risks effectively.
●
Financial
Information
Integrity:
Processes
ensure
the
integrity
and
reliability
of
financial
information
through
accurate reporting and controls.
●
Executive
Performance
Evaluation:
Processes
for
recruitment,
training,
delegation,
targeting,
and
evaluation
of
executive performance
are outlined.
●
Information
Systems
Security:
Processes
for
the
security,
adequacy,
and
reliability
of
information
systems
are
established to safeguard data.
●
Personnel
and Asset
Protection:
Processes
are
in place
to safeguard
personnel
and assets,
ensuring security
and
protection.
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●
Reporting and
Communication:
Reporting lines
and communication
channels within
and outside
the organization
are described for effective
information flow.
●
Monitoring
and
Evaluation:
Mechanisms
are
established
for
monitoring
and
evaluating
the
efficiency
and
effectiveness
of processes regularly.
●
Independent Evaluation: There
is a process
for periodic
evaluation of the
adequacy and efficiency
of the SIC
by an
independent auditor to ensure objectivity.
●
Environmental
Policies:
Policies
for
environmental
management
and
other
ESG
factors
are
recorded
to
address
sustainability and social responsibility.
●
These policies and procedures are part of
the corporate governance system's assessment and are regularly reviewed
and updated to align with best practices and regulatory
requirements.
9.3
Evaluation of the System of Internal Controls
The Bank's AC is responsible for annually reviewing and evaluating the adequacy of the Internal Control
System (ICS) of both
the Bank and its subsidiaries.
This evaluation
is based on data and information
provided by
the Group
Internal Audit (IA) of
the Bank, external auditors' findings and remarks,
as well as feedback from
supervisory authorities. The
AC utilizes oversight
and reporting
mechanisms
established
with
the
Audit
Committees
of the
Bank's Subsidiaries
to ensure
a comprehensive
assessment.
Similarly, the
HoldCo's AC is
tasked with reviewing
and evaluating the
adequacy of the
Internal Control
System (ICS) of the
HoldCo itself. This evaluation is conducted based on
relevant data and information from the Internal Audit (IA) of the HoldCo,
findings
and
remarks
from
external
auditors,
and
feedback
from
supervisory
authorities.
The
AC
ensures
a
thorough
assessment of the HoldCo's ICS to uphold
standards of governance
and compliance.
9.4
Independent Evaluation of the HoldCo/Bank
System of Internal Controls
In March 2024, Grant Thornton
presented the scope, findings, and methodology
of their Independent triennial Evaluation
of
the
HoldCo/Bank
System
of
Internal
Controls
(SIC)
to
the
HoldCo/Bank
AC
members,
as
per
the
Bank
of
Greece
Act
2577/9.3.2006 (BoG Act).
Based
on
the
procedures
conducted
and
the
evidence
gathered,
there
were
no
indications
that
the
SIC,
at
the
time
of
assessment, was not compliant in all material aspects with
the requirements
of the BoG Act.
Grant Thornton
identified 21 observations
during their
assessment, categorized
as 16 low-risk
observations
and 5 medium-
risk observation
related
to the
IT issues
in Eurobank
Equities, and
7 recommendations
for
improvement.
Management
will
take appropriate actions
in response to these observations.
9.5
Corporate Governance
System Assessment in accordance with
article 4 par. 1 of Law 4706/2020
In compliance with
Article 4, Paragraph
1 of Law 4706/2020
(the Law),
the HoldCo
and Bank Boards of
Directors (BoDs) are
responsible
for
designating and
overseeing
the
implementation
of the
corporate
governance
system (CGS)
as outlined
in
Articles 1 to
24 of the
Law.
Additionally,
the BoDs
must monitor and
evaluate the
application and
effectiveness
of the
CGS
at least every three
(3) financial years, taking necessary actions to address any deficiencies.
Given that the Law came into force on 17.7.2021,
the Hellenic Capital Market Commission (HCMC) specified
that the maximum
reporting period for
the first CGS review should extend from
17.7.2021
to 31.12.2024. It also required that the
2024 Corporate
Governance Statement
include a relevant reference
to this review.
In this context, the HoldCo and Bank NomCos reviewed
the CGS for the reporting
period and updated the HoldCo and Bank
BoDs accordingly. The
review concluded that HoldCo and Bank have taken all necessary actions to fully comply with the Law,
as no gaps were identified.
Furthermore,
in
line
with
supporting
work
related
to
the
Corporate
Governance
Framework,
performed
both
by
external
parties
and
internally,
HoldCo
and
Bank
have
taken
proactive
measures
to exceed
the
Law’s
provisions,
enhancing
their
processes and practices for more efficient
governance. In this regard, HoldCo and Bank have effectively
addressed identified
issues and implemented recommendations
for improvement
provided by
external parties, including
regulators and external
advisors.
10
Sustainability
10.1
Sustainability Approach
Eurobank
supports the
transition
towards
a sustainable
economy
and considers
sustainability and
climate
change as
an
opportunity. A key strategic
objective is to adapt the Bank’s business and operation in a way that addresses climate change
challenges,
accommodates
social
needs
within
its
business
model
and
safeguards
prudent
governance
for
itself
and
its
counterparties,
in
accordance
with
supervisory
initiatives,
and
following
international
standards
and
best
practice.
The
Bank’s commitment
to address
climate change
is expressed
through quantified
objectives,
such as its
detailed action
plan
to align its operations, lending and investment
portfolios to reach
Net Zero by 2050.
Eurobank
has expressed
the
sustainability aspect
of its
business through
the
lens of
Impact generation.
The
Sustainability
Strategy
has
been
defined
in
a
holistic
approach
across
two
pillars
of
impact:
the
operational
impact
arising
from
its
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operational
activities and
footprint,
and the
financed
impact resulting
from
the
Bank’s lending
and investing
activities to
specific
sectors
and
clients.
These
two
pillars
of
impact
aim
to
capture
the
essence
of
the
Bank’s
business
effect
on
the
climate, the protection
of the natural environment,
its contribution to addressing societal challenges at large, the prosperity
of its
own
people,
its contribution
to raising
business
capacity
in the
markets
where
the
Bank operates,
and the
internal
processes that build and secure
the confidence of its stakeholders.
Eurobank has designed, approved
and currently implements the
Sustainability Strategy including targets and commitments
along the two key pillars:
A. Operational Impact Strategy
The
Operational
Impact
Strategy
defines
the
Bank’s
operational
sustainability
priorities
and
objectives,
and
is
deployed
along three strategic pillars, each of which is supported by
a specific objective, commitments and targets:
●
Environmental
Impact:
Minimising
negative
impact
in
its
operations
to
promote
environmental
stewardship
and
attain climate neutrality.
●
Societal Impact: Providing a diverse and inclusive environment
for its people and clients, while fostering sustainable
development and prosperity
for the benefit of society.
●
Governance
and Business Impact: Focusing
on building ESG awareness,
internally and across
its value chain, while
intensifying its efforts for
ethics and transparency
B. Financed Impact Strategy
The Bank’s Financed
Impact Strategy
sets targets and commitments
addressing the
impact arising from the
Bank’s lending
and investing activities to specific sectors and clients and focuses on:
●
Clients’ engagement and awareness to adapt their
business so as to address climate change challenges.
●
Actions for supporting clients in their
transition efforts
towards a more sustainable economic environment.
●
Enablers and tools, such as frameworks
and products, to underpin sustainable financing.
●
Assessment and management of sustainability material
exposures and risks.
10.2
Sustainability Policies & Frameworks
Eurobank has
taken action
towards updating
its Sustainability Policy
Framework,
to outline the
approach for
adherence
to
applicable regulatory
requirements
and voluntary
initiatives
as well
as adopted standards
and guidelines,
thus enabling
a
contemporary
and
continuously
updated
approach
towards
Sustainability,
in
line
with
international
best
practice.
The
Sustainability
Policy
Framework
sets
the
foundation
towards
the
integration
of
Sustainability
principles
into
Eurobank’s
business model and operations.
Focusing
on the social
aspect of Sustainability,
Eurobank has
taken actions
that outline
its corporate
values, principles and
commitments by issuing the
Human Rights Statement, the
Diversity, Equity
and Inclusion Policy as well
as the Policy
against
Harassment and Violence in Workplace. In order to further enhance its
efforts against Harassment and Violence in Workplace,
the
Bank has
introduced
a relevant
focused
training
program
to all
employees.
This
approach
outlines
zero-tolerance
for
various
types
of
violation
and
discrimination
as
well
as
for
the
equal
opportunities
with
fairness
and
meritocracy
and
irrespective of gender, nationality,
age or other traits throughout the entire employee life cycle (i.e. recruitment and selection,
learning, performance,
talent and career development,
reward management).
Moreover,
Eurobank
has
developed
and
implements
three
guiding
frameworks,
defining
the
approach
and
criteria
for
classifying its financing and investing activities as sustainable:
●
its
Sustainable
Finance
Framework
(SFF),
which
supports
the
identification
of
sustainable/green
financing
opportunities
and
provides
a
clear
and
comprehensive
methodology
for
classifying,
monitoring
and
reporting
sustainable financing.
●
its Green
Bond Framework.
The
Framework,
which has
been
externally
reviewed
by
an established
second-party
opinion provider,
facilitates
the
financing of
projects
that
will deliver
environmental
benefits to
the
economy and
support Bank’s business strategy and vision,
●
its
Sustainable
Investment
Framework,
which
describes
the
Bank’s
potential
sustainable
investment
approaches/strategies
and
the
process
for
selection
of
eligible
investments,
based
on
criteria
observed
in
international market practices,
frameworks
and guidelines.
The above-mentioned
frameworks
enable the Bank to pursue economic growth
in line with sustainable criteria.
These
frameworks
are
complemented
by
the
adopted
Environmental
Policy,
Energy
Management
Policy
and
Water
Management Policy,
aiming to protect
the environment
in all aspects of
its operations.
In line with
these policies,
the Bank
applies certified management systems, in accordance
with international standards,
such as an Environmental Management
System (ISO 14001, EMAS) and an Energy Management System (ISO 50001).
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10.3
Stakeholders engagement and double materiality
assessment
An integral
part of Eurobank's
approach to
Sustainability is
to foster
strong relationships
of trust, cooperation
and mutual
benefit with all stakeholders affected
by its activities, directly or indirectly.
Eurobank promotes two
-way communication and
develops ongoing dialogue with stakeholders,
to be able to actively meet the expectations, concerns and issues raised by all
its stakeholders.
A more
detailed presentation
of the
cooperation
framework,
expectations
and means
of communication
and response for each stakeholder
group is included in the Annual Report 2023 – Business & Sustainability.
In
2023,
Eurobank
marked
the
early
adoption
and
implementation
of
the
Double
Materiality
Assessment,
highlighting
a
critical turning
point in
its sustainability
path under
the new
European Sustainability
Reporting Standards
(ESRS), which
is
the key process used to define the Annual
Report 2023 –
Business & Sustainability
content. In this
context, the Bank identified,
assessed, prioritized
and validated the
Environmental,
Social and Governance
(ESG) impacts arising
from its
activities and
also assessed risks and opportunities that
may have material
financial influence on Eurobank,
throughout its value
chain. In
this context, Eurobank has adopted a forward
-thinking approach by incorporating
the concept of Double Materiality into its
operational and financed activities. The methodology was
carried out in 4
phases, namely i.
Understanding the organization’s
context and value chain, ii. Identifying impacts, risks
and opportunities (IROs), iii. Assessing impacts, risks and
opportunities,
and iv. Prioritizing
and validating material topics and IROs. As per
the final stage of the double materiality
and as informed
by the results of the impact and financial materiality assessment
process, a list of topics was prioritized as material, which in
turn formed
the
basis for
determining
the
contents of
the
Annual Report
2023 –
Business &
Sustainability,
as well
as the
disclosures of relevant key
performance
indicators. Further
details regarding the
aforementioned
process and its results
are
embedded in the Annual Report 2023 – Business & Sustainability.
Governance
Sustainability
at
Eurobank
is
deployed
across
a
Governance
structure
that
addresses
both
regulatory
requirements
and
voluntary
commitments.
Board
oversight
with respect
to the
Sustainability Strategy
is addressed
through
the
inclusion
of
sustainability items in the Board Meetings agenda, as per international best practice. The
Group applies the elements of the
Three Lines of Defense
(3LoD) model for the
management of Sustainability risks and aspects. The
3LoD model enhances risk
management
and
control
by
clarifying
roles
and
responsibilities
within
the
organization.
Eurobank’s
Sustainability
Governance model
ensures that the management
of relevant Sustainability risks is integrated
into the Bank’s Three
Lines of
Defense.
Additionally,
the
Group
Senior
Sustainability
Officer
(GSSO)
plays
a
key
role
in
leading
and
coordinating
the
Group’s
sustainability initiatives,
reporting directly to
the senior
management and Board
for sustainability matters
and the
Group
Sustainability
Coordination
Office
serves
as
the
Secretary
of
the
Sustainability
Management
Committee.
The
Sustainability Governance
structure aims
to further
enhance effective
oversight of
sustainability matters
at Management
/
Board level, support the
roll out of its Sustainability Strategy
and the integration
of Sustainability risks.
In that context,
the Group
Sustainability Risk (GSR)
is responsible for
managing and monitoring Sustainability
risks, for
the
implementation of the
Climate related and Environmental
risks roadmap, designing, along with Business
and Risk Units, the
Financed Impact Strategy and monitoring
of its implementation thereof. Moreover,
the Eurobank Holdings / Eurobank Boards
have
assigned an
executive
member
as the
responsible
Board Member
for
climate and
environmental
risks
. This
member
provides
updates to
the
Board
Risk Committees
(BRC) at
least semi-annually.
As outlined
in their
Terms
of Reference,
the
BRC is responsible for overseeing
(among others) sustainability issues, including sustainability risks.
A
dedicated
Sustainability
Management
Committee
(SMC)
complements
the
Sustainability
Governance
model.
The
SMC
provides strategic
direction on sustainability
initiatives, reviews
the Sustainability Strategy,
Net Zero
targets and transition
plans
prior
to
approval,
integrates
the
elements
of
the
Sustainability
Strategy
and
the
Net
Zero
commitments,
into
Eurobank’s
business
model
and
operations,
approves
changes
in
eligible
assets
of
Green
Bond
and
Sustainable
Finance
Frameworks,
regularly
measures
and analyzes
the
progress
of the
Sustainability Strategy
goals and
performance
targets,
ensures
the
proper
implementation
of
Sustainability-related
policies
and
procedures,
in
accordance
with
supervisory
requirements and voluntary
commitments.
A dedicated
Group Sustainability
Unit (GSU)
is responsible
for
managing and
coordinating
sustainability strategy
related
issues, for the development of action plans
for the Bank's Net Zero portfolio strategies, as well as for monitoring
sustainability
performance
and coordinating
sustainability-linked
activities that
enhance
the
Group’s
Impact. In
this context,
the
Unit is
responsible for
facilitating the
development
of the
Sustainability data
framework
to coordinate
and prepare
external and
internal
Sustainability-related
reports.
Finally,
Group
Sustainability
Risk
is
responsible
for
managing
and
monitoring
sustainability risks,
for
acting as
a PMO
office
for
implementing the
sustainability risks
roadmap,
and for
designing, along
with the GSU and Business Units, and monitoring the
Financed Impact Strategy.
10.4
Reporting and Transparency
HoldCo/Bank
issues
its
Annual
Report
–
Business
&
Sustainability
with
a
view
to
fully
inform
its
stakeholders
about
its
performance
in
the
sustainable
development
pillars
(economy,
society,
environment).
The
publication
is
prepared
in
accordance with the Global Reporting Initiative (GRI) Standards (2021), applying the reporting principles (accuracy, balance,
clarity,
comparability,
completeness,
sustainability
context,
timeliness,
verifiability).
This
reporting
approach
aims
at
providing comprehensive
and transparent information
to stakeholders, relates
to Eurobank’s response to their
expectations
and interests, and invests in continuously promoting open dialogue with them.
Through the
Report, Euroban/HoldCo provide
full
disclosure
on
sustainability
impacts
such
as
environmental
performance,
energy
and
emissions,
social
impact
and
corporate governance, information regarding the
Bank’s initiatives, while addressing
all material stakeholder interests across
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the sustainability spectrum.
The Annual
Report - Business &
Sustainability is accessible
to all interested
parties through
the
corporate website. Additionally,
besides the sustainability reporting frameworks of the
GRI sectoral supplement on Financial
Services, the SASB Commercial
Banks Standard, as well as the Athens
Stock Exchange (ATHEX) ESG Reporting Guide (2024)
have been considered,
while the materiality
assessment was conducted in
accordance with
the ESRS standards.
This report
also incorporates the 10 Principles of the United Nations Global Compact (UNGC), as well as the Accountability AA1000 2018
Principles. The sustainability-related
disclosures in the report are assured
by a competent assurance provider
in accordance
with the AA1000 Assurance Standard (version
3) and related Principles for inclusivity, materiality,
responsiveness and impact,
as per
the
independent
auditor’s
Limited Assurance
Report which
is disclosed
as part
of the
Annual Report
– Business
&
Sustainability.
In addition, the
Holdco/Bank reports
disclosures as required
by the
EU Taxonomy
(Regulation (EU)
2020/852
of
the
European
Parliament
and
of
the
Council).
Specifically,
upon
reviewing
its
business
activities,
to
align
taxonomy
reporting with its core activities, provides the key performance
indicators (KPIs) and other disclosure requirements
related to
its dominant financial undertakings as laid down in Article 10 of the Art. 8 Delegated Act. Furthermore, in the context of Pillar
III disclosures on ESG risks, Holdco/Bank discloses sustainability risk information on a semi-annual basis. Moreover,
Eurobank
is publishing its Task Force
on Climate-related Financial Disclosures (TCFD) Climate - related & Environmental Risk Report on
an
annual
basis.
Also,
the
Bank's
GHG
financed
emissions
for
loans,
bonds
and
shares
positions,
following
the
PCAF
methodology,
were disclosed.
Furthermore,
the
Bank’s
environmental
and
energy
management
performance,
with
respect
to
the
improvement
of
its
operational
footprint,
is monitored
through
specific indicators
and associated
targets
disclosed also
in the
Environmental
Report (EMAS). This constitutes an environment and energy monitoring and self-improvement tool, in line with commitments,
regulated by
applicable standards,
audited & verified
by independent
third party.
Within
the EMAS
Report framework,
the
Bank discloses the Green House
Gas emissions record in
line with the ISO 14064
standard, as verified by external
independent
party and in line with the provisions
of the national Climate
Law.
Moreover,
Holdco/Bank actively
participates in
internationally
recognized Sustainability ratings
to highlight the
continuous
improvement
in
its
environmental,
social
and
governance
performance,
upgrade
the
relevant
disclosures,
and
further
enhance investor confidence in its practices.
11
Other information
required by Directive
2004/25/EU
The elements c), d), f), h), and i) of paragraph 1, Article 10 of
Directive 2004/25/EC of the European Parliament and the Council
have been
incorporated
into elements
c), d),
e), g),
and h)
of Article
4, Paragraph
7 of
Law 3556/2007.
These
elements are
included
and referenced
in the
Report
of the
Directors,
of which
the
present
Corporate
Governance
Statement
forms
an
integral part.
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SUSTAINABILITY STATEMENT
Index to the Sustainability Statement ................................
................................
................................
................................
................................
.............Page
1.
General information
1.1
Basis for preparation ................................
................................
................................
................................
................................
................................
............. 2
1.2
Disclosures in relation to specific circumstances ................................
................................
................................
................................
..................... 2
1.3
Governance
................................
................................
................................
................................
................................
................................
................................
.
2
1.4
Strategy - Company,
business model and stakeholder engagement ................................
................................
................................
......... 12
1.5
Materiality analysis and results according to the
concept of double materiality ................................
................................
................ 21
2.
Environmental information
2.1
Disclosures under Article 8 of Regulation (EU) 2020/852 ................................
................................
................................
................................
.
35
2.2
Climate change
................................
................................
................................
................................
................................
................................
...................... 38
2.3
Biodiversity and ecosystems ................................
................................
................................
................................
................................
........................... 58
2.4
Integration of sustainability in risk management ................................
................................
................................
................................
................ 60
2.5
Sustainable financing and investment offerings
................................
................................
................................
................................
.................. 65
3.
Social information
3.1
Own workforce ................................
................................
................................
................................
................................
................................
........................ 72
3.2
Consumers and end-users ................................
................................
................................
................................
................................
................................
88
3.3
Fostering innovation ................................
................................
................................
................................
................................
................................
............ 94
3.4
Financial inclusion
................................
................................
................................
................................
................................
................................
................
100
4.
Governance information
4.1
Business conduct
................................
................................
................................
................................
................................
................................
.................. 106
4.2
Data security and customer privacy
................................
................................
................................
................................
................................
............
112
APPENDIX – Disclosures under Article 8 of Regulation (EU) 2020/852 ................................................................
................................
................. 116
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1
General Information
1.1
Basis for Preparation
General basis for preparation of sustainability statements [BP-1]
This sustainability statement for the fiscal year ended 31 December 2024, has been prepared on a consolidated basis.
The scope of the statement covers the same scope of consolidation as the Financial Statements.
For the purpose
of this sustainability statement
the below definition is
incorporated: the Eurobank Holdings
Group (the Group)
consists mainly of Eurobank S.A. (Eurobank or Bank) and its subsidiaries (the Eurobank or Bank Group).
This sustainability statement
covers the upstream
and downstream value
chain to the
following extent: The upstream
value
chain includes key suppliers such as those providing IT
hardware, office supplies, energy, and capital, as well as the regulatory
and voluntary
frameworks provided
by bodies
like the
European Central
Bank (ECB),
the European
Banking Authority
(EBA),
and the
Single Resolution Board
(SRB). The
downstream
value
chain
includes
Eurobank's
corporate
and
retail
clients
who
benefit from financing, investment banking, advisory services, and leasing solutions.
The value chain
has been
considered in
the materiality assessment
to identify material
impacts, risks, and
opportunities by
evaluating the key activities and stakeholders
in both the upstream and downstream
segments, including the environmental
and social impacts of suppliers and
customers. Moreover, Eurobank’s policies, actions, and targets extend
to Eurobank’s value
chain
as
far
as
suppliers,
corporate
and
retail
clients,
ensuring
sustainability
considerations
are
integrated
into
decision-
making processes for financing, capital
markets, and real estate. Finally,
when disclosing metrics, upstream data
on supplier
performance and
downstream data
related to
customer engagement
in sustainable
financing has
been considered
along
with assessments of Sustainability risks tied to both the upstream and downstream sectors.
1.2
Disclosures in relation to specific circumstances
[BP-2].
Eurobank has adopted the
following
time-horizons as defined in ESRS 1 : 6.4 Definition of short-, medium
-
and long-term for
reporting purposes:
●
for
the
short-term
time
horizon:
the
period
adopted
by
the
undertaking
as
the
reporting
period
in
its
financial
statements.
●
for the medium-term time horizon: from the end of the short-term reporting period defined above up to 5 years; and
●
for the long-term
time horizon: more than 5 years.
1.3
Governance
1.3.1
The role
of the administrative,
management and supervisory bodies [ESRS 2 GOV
-1]
Eurobank
Holding’s
/
Eurobank’s
Board
of
Directors
(BoD)
is
comprised
of
3
executive
members,
and
10
non-executive
members.
The
members
of
the
Board
of
Directors
and
relevant
Committees
possess
experience
relevant
to
the
sectors,
products and geographic locations
of the undertaking:
Summary of Board Experience and Skills Matrix
Name
Position
Link to the Board of Directors CVs
Georgios Zanias
Chairperson, Non-Executive Director
Georgios Zanias CV
Fokion
Karavias
Chief Executive Officer
Fokion
Karavias CV
Kostas Vassiliou
Deputy Chief Executive Officer
Kostas Vassiliou
CV
Stavros Ioannou
Deputy Chief Executive Officer
Stavros Ioannou CV
Bradley Paul Martin
Non-Executive Director
Bradley Paul Martin CV
Rajeev Kakar
Non-Executive Independent Director
Rajeev Kakar CV
Alice Gregoriadi
Non-Executive Independent Director
Alice Gregoriadi CV
Jawaid Mirza
Non-Executive Independent Director
Jawaid Mirza CV
Rena Rouvitha Panou
Non-Executive Independent Director
Rena Rouvitha Panou CV
Cinzia Basile
Non-Executive Independent Director
Cinzia Basile CV
Burkhard Eckes
Non-Executive Independent Director
Burkhard Eckes CV
John Arthur Hollows
Non-Executive Independent Director
John Arthur Hollows CV
Evan Kotsovinos
Non-Executive Independent Director
Evan Kotsovinos CV
For more information,
please refer to Corporate
Governance Statement
.
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Board of Directors and Board
Committees - Eurobank Holdings and Eurobank
Directors
Board of
Directors
Audit
Committee
Board Risk
Committee
Nomination
and
Corporate
Governance
Committee
Remuneration
Committee
Board Digital
and
Transformation
Committee
(1)
Gender
Nationality
Georgios
Zanias
Chairperson,
Non-
Executive
Director
Member
Male
Hellenic
Fokion
Karavias
Chief
Executive
Officer
Male
Hellenic
Kostas
Vassiliou
Deputy Chief
Executive
Officer
Male
Hellenic
Stavros
Ioannou
Deputy Chief
Executive
Officer
Member
Male
Hellenic
Bradley Paul
Martin
Non-
Executive
Director
Male
Canadian
Rajeev Kakar
Non-
Executive
Independent
Director
Member
Chairperson
Member
Male
Indian
Alice
Gregoriadi
Non-
Executive
Independent
Director
Member
Member
Chairperson
Female
Hellenic
Jawaid Mirza
Non-
Executive
Independent
Director
Vice
Chairperson
Member
Member
Male
Canadian
Rena Rouvitha
Panou
Non-
Executive
Independent
Director
Member
Chairperson
Member
Female
Cypriot
Cinzia Basile
Non-
Executive
Independent
Director
Member
Chairperson
Member
Female
Italian
Burkhard
Eckes
Non-Executive
Independent
Director
Chairperson
Member
Member
Male
German
John Arthur
Hollows
Non-Executive
Independent
Director
Vice
Chairperson
Member
Member
Male
British
Evan
Kotsovinos
Non-Executive
Independent
Director
Member
Member
Member
Male
Hellenic
Total Number
of Members
13
5
5
4
5
5
(1)
Eurobank SA
As
presented
above,
Eurobank
Holding’s
Board
is
comprised
of
3
female
board
members,
and
10
male
board
members.
Female
representation
as mandated
by the
Greek Corporate
Governance
Law 4706/2020
is set
at a
minimum 25%
of the
total board membership.
In cases of a fraction, the
percentage is rounded
to the previous integer.
For
a BoD
comprising 13
members,
this translates
to 3.25,
which, after
rounding
down,
means at
least 3
female
members.
Currently,
Eurobank
is compliant with
this requirement,
as its Board
includes 3 female
members: Ms.
Rena Rouvitha
Panou,
Ms. Cinzia Basile, and Ms. Alice Gregoriadi.
Moreover,
62% of the
total BoD members
are independent. The
executive BoD members
are representing
the employees
of
the Group in the
Board of Directors.
Sustainability Governance
Eurobank
Group has
established the
Sustainability Management Committee
(Sustainability ManCo -
SMC). The
purpose of
the Sustainability ManCo is to:
●
provide strategic
direction on sustainability initiatives,
●
review and approve
the Sustainability Strategy,
Net Zero targets and transition
plans,
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●
ensure
that
the
elements
of
the
Sustainability
Strategy
and
the
Net
Zero
commitments
are
integrated
into
the
Group’s business model & operations,
●
approve changes in eligible assets of Green
Bond and Sustainable Finance Frameworks,
●
regularly measure and analyze the
progress of the Sustainability Strategy
goals and performance
targets,
●
ensure the proper
implementation of sustainability-related
policies and procedures,
in accordance with
supervisory requirements and voluntary
commitments.
The
Committee
includes
senior
management
roles
such
as
the
Deputy
CEO,
Group
Chief
Operating
Officer
(COO)
&
International Activities (Chairperson),
Deputy CEO, Head of Corporate & Investment
Banking, Deputy CEO, Head of Retail &
Digital Banking, Group Chief Risk Officer,
Group Senior Sustainability Officer,
Group Chief Financial Officer,
Group Chief HR
Officer
and
several
other
senior
leaders
from
Legal
Services,
Strategy,
Markets,
International
Activities,
Compliance,
and
Marketing
& Corporate
Communications
Group
units.
The
Group
Senior
Sustainability
Officer
(GSSO)
plays a
key
role
in
leading and coordinating
the Group’s
sustainability initiatives,
reporting directly
to the
senior management
and Board
for
sustainability matters and the Group Sustainability Coordination
Office serves as the Secretary
of the Sustainability ManCo.
Sustainability
ManCo’s
responsibilities
are
clearly
outlined
in
the
Terms
of
Reference,
which
guide
its
work,
including
approving
and monitoring
Sustainability Strategy,
Net Zero
commitments, targets,
action and
transition
plans, as
well
as
Sustainability
Frameworks
(e.g.
Green
Bond
Framework)
and
Policies,
ensuring
that
sustainability-related
projects
and
initiatives align with Sustainability Strategy
targets, objectives, Net Zero
commitments and sustainability-related KPIs.
Sustainability
at
Eurobank
is
deployed
across
a
Governance
structure
that
addresses
both
regulatory
requirements
and
voluntary
commitments. Board
oversight,
with respect
to the
Sustainability Strategy,
is addressed
through
the
inclusion of
sustainability items in
the Board
Meetings agenda, as
per international
best practice.
The Group’s
Governance
structure is
introducing and defining the roles and responsibilities in relation to sustainability risks, embedding
regulatory guidelines and
market practices.
Additionally,
the
Group
applies
the
Three
Lines
of
defense
model,
which
clarifies
the
roles
of
each
line
in
managing
sustainability risks. This model,
through structured policies, further delineates duties across each line, ensuring
that each body
and individual within the organisation
has a defined responsibility for managing sustainability impacts, mitigating risks and
leveraging opportunities within their operational
scope. The Sustainability Governance structure aims to further enhance the
effective
oversight
of
sustainability
matters
at
Management/Board
level,
through
direct
reporting
lines.
The
GSSO
as
represented in the
chart, along with the
Senior Risk Executive
Officer,
co-manages Group Sustainability Risk,
which involves
coordinating sustainability efforts and ensuring the
integration of sustainability principles
across the organisation. The GSSO
plays a
critical
role
in embedding
sustainability into
the
Group’s
strategic
decision-making,
ensuring that
sustainability is
considered in policies and operational
strategies.
Eurobank
enhanced
its sustainability
Governance
model and
supported the
roll
out of
its Sustainability
Strategy
and the
integration of sustainability risks.
Enhanced Governance Structure
and Committees:
●
Oversight
of
sustainability
risks
at
management
body
level
through
allocation
of
responsibilities
to
Board
and
management
committees.
Specifically,
Chairman
of
the
SMC
is
the
Deputy
Chief
Executive
Officer,
Group
Chief
Operating Officer
(Group COO) & International Activities.
●
A Board Member has been appointed as the overall
responsible for climate-related
and environmental risks.
●
Establishment
of
2
Committees
that
supplement
the
governance
arrangements
on
sustainability
risk,
i.e.
Sustainability Management Committee and Climate Risk Stress Test
Committee.
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●
Appointment of Group Senior Sustainability Officer
to lead the Group’s
sustainability initiatives.
Integration of Sustainability Risk Management
across the 3 lines:
●
Dedicated
teams within
the
CIB
and Retail
Banking Units
for
overseeing
sustainability and
sustainable financing
activities.
●
Automated process established
to assess and classify sustainable financing opportunities.
●
Group
Sustainability
Unit
responsible
for
managing
and
coordinating
sustainability
strategy
related
issues,
the
development
of
action
plans
for
the
Group’s
Net
Zero
portfolio
strategies,
as
well
as
monitoring
sustainability
performance
and coordinating sustainability-linked
activities that enhance
the Group’s
Impact. In this
context, the
Unit is responsible for facilitating the
development of the Sustainability data framework
to coordinate and prepare
external and internal sustainability-related
reports.
●
Group
Sustainability Risk
responsible
for
managing and
monitoring
sustainability
risks,
acting as
PMO
office
for
implementing
the
sustainability
risks
roadmap
and
monitoring
the
Sustainability
Strategy,
and
preparing
and
maintaining the Bank’s Sustainability risk
management policies, processes and methodologies, in collaboration with
the Group Sustainability Unit, Business
and Risk Units.
●
Intensive training on sustainability,
sustainable finance and sustainability risk topics to Group personnel.
The roles
and responsibilities of the key governance
bodies / committees / units-functions are outlined below.
Supervisory bodies:
Eurobank Holdings / Eurobank
Board of Directors (BoDs/Boards)
Eurobank Holdings
/ Eurobank
Boards’ role
is to offer
entrepreneurial leadership
to the Group
in the context of prudent
and
effective
controls
facilitating
the
assessment
and
management
of
risks.
The
Boards,
establish
the
Group’s
strategic
objectives, ensure the
availability of essential financial and human resources for the
Group to fulfil its purpose, and evaluate
management
performance.
The
Boards
define
the
Group’s
values
and
standards,
ensuring
that
its
responsibilities
to
shareholders and others
are acknowledged and
fulfilled. All members
of the Boards
are required
to act in the
best interests
of the Group, aligning with their legal
duties. The Eurobank Holdings
/ Eurobank Boards have assigned an executive
member
as the Board Member responsible
for climate-related
and environmental risks. As part of its duties, this member
updates, at
least on
a semi-annual
basis,
the
Eurobank
Holdings /
Eurobank
Board
Risk Committees
(BRC), which,
in accordance
with
their
Terms
of Reference,
are
responsible
for
overseeing
(among others)
the
sustainability
risks.
As per
international
best
practices,
effective
Board
oversight
with
respect
to
the
Group’s
Sustainability
Strategy
is
also
safeguarded
through
the
regular inclusion of Sustainability items in the agendas of Board
Meetings.
Eurobank Holdings / Eurobank
Board Risk Committee (BRC)
The Eurobank Holdings / Eurobank Board Risk
Committee (BRC), among
others, oversees the implementation of the strategies
for capital and liquidity management, as well as for all material
risks of the Group, including sustainability risks, as identified
through the
Risk Identification
and Materiality
Assessment (RIMA)
process and
listed in the
relevant RIMA
report, to assess
their
adequacy
against
the
approved
risk
appetite
and
strategy.
In
addition,
the
BRC
determines,
among
others,
the
principles which govern risk management
(including sustainability risks) across the
Group in terms of identifying, measuring,
monitoring, controlling and mitigating risks. To
this end, the Committee approves
risk principles, risk policies, risk procedures
and risk methodologies,
and the
Specific Risk
Management Frameworks
and policies
(e.g. Sustainability Risk
Management
Policy)
Audit Committee
In
line
with
the
stipulation
of
the
Law
5164
(Article
43),
Audit
Committee
(AC)
has
been
entrusted
with
additional
responsibilities concerning the
submission and assurance
of the Sustainability Statement.
The Audit Committee
informs the
Board of
Directors about
the outcome
of the
statutory audit
and the
assurance
of the
sustainability statement.
It explains
how these
processes
contributed to the
integrity of the
financial and sustainability
information
and clarifies the
role
of the
Audit Committee during this process
Management bodies:
Eurobank Management
Risk Committee (MRC)
The
Eurobank
Management
Risk
Committee
(MRC)
is
responsible
for
overseeing
the
risk
management
framework
of
Eurobank. As part of its responsibilities, the MRC facilitates reporting to the BRC on a wide range of risk-related topics under
its purview,
including sustainability
risks. The
MRC ensures
that material
risks are
identified and promptly
escalated to
the
BRC and
that the
necessary policies
and procedures
are in
place to
prudently manage
risk and
to comply
with regulatory
requirements.
Eurobank Sustainability Management
Committee (Sustainability ManCo-SMC)
The
Eurobank
Sustainability
ManCo
provides
strategic
direction
on
sustainability
initiatives,
reviews
the
Sustainability
Strategy,
Net Zero
targets and
transition
plans prior
to approval,
ensures that
the
elements of
the Sustainability
Strategy
and the
Net Zero
commitments are
integrated into
the Group’s
business model &
operations,
approves
changes in eligible
assets
of
Green
Bond
and
Sustainable
Finance
Frameworks,
regularly
measures
and
analyzes
the
progress
of
the
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Sustainability
Strategy
goals
and
performance
targets
and
ensures
the
proper
implementation
of
sustainability-related
policies and procedures, in accordance with supervisory requirements
and voluntary commitments. It is chaired by the Board
Member responsible for climate
-related and environmental
risks.
Eurobank Climate Risk Stress
Test Committee (CRSTC)
The
Eurobank
Climate
Risk
Stress
Test
Committee
(CRSTC)
is
responsible
for
designing
and
executing
the
Group’s
CRST
Programme,
as
well
as
for
coordinating
all
activities
relating
to
Climate
Risk
Stress
Testing,
including
risk
identification,
scenario design
and stress
test execution,
and reviewing
and challenging
the output
at each
stage of
the
process
prior to
escalating to the Executive
Board.
Administrative bodies:
Group Senior Sustainability Officer
(GSSO)
The
Group
Senior
Sustainability
Officer
(GSSO)
is
responsible
for
leading
and
coordinating
the
Group’s
sustainability
initiatives, for both Operational and Financed Impact. GSSO
manages the Group Sustainability, co-manages, as
a secondary
reporting line,
along with
the Senior
Risk Executive
Officer
the Group
Sustainability Risk,
coordinates Sustainability
Center
of Excellence of
CIB and Retail and oversees
the sustainability programs
of international
subsidiaries. The role
of the GSSO
is to foster
a deep understanding
of sustainability principles
and practices
across the
organisation by
building a culture
of
sustainability
and
collaborating
together
with
senior
management
to
embed
sustainability
into
the
Group’s
strategic
decision-making processes. GSSO secures and allocates resources effectively
to support the Group’s sustainability initiatives
and advocates
for
necessary
investments
in sustainability
projects
and technologies.
GSSO serves
as the
liaison between
the
Group
and Market/External
Stakeholders,
closely monitoring
industry trends,
regulatory
changes and
best practices
in
sustainability and ensuring that the Group
remains at the forefront
of sustainability innovation and compliance.
Group Sustainability Unit
The
Group
Sustainability Unit
acts as
a custodian
of Sustainability
Principles and
Culture to
enhance the
Group’s
Impact,
and
as
a
cross-functional
coordinator
to
ensure
alignment
on
sustainability
issues
and
interdependencies,
as
well
as
compliance
with
relevant
existing and
upcoming
regulations.
Specifically,
the
Group
Sustainability
Unit
is responsible
for
managing
and
coordinating
sustainability
strategy
related
issues,
ensuring
alignment
of
subsidiaries'
programs
with
the
Group's
overall
sustainability
strategy
and
goals,
supporting
their
implementation
efforts.
The
Group
Sustainability
Unit
coordinates
the
development
of
action
plans
for
the
Group’s
Net
Zero
portfolio
strategies
and
ensures
the
aligned
development of corresponding plans for subsidiaries. It directs the actions of the Bank's units and subsidiaries
on sustainable
financing matters and provides advisory support on broader sustainability issues. The Unit facilitates the development of the
Sustainability data framework and promotes sustainability knowledge and culture. Furthermore, it coordinates and prepares
external and internal sustainability-related reports
in line with
applicable standards/regulations, in cooperation with involved
subject-matter
responsible
Units,
while
it
is
responsible
for
the
UNEP
FI
PRB
implementation.
Being
responsible
for
the
oversight of the Bank’s overall
sustainability performance, its key roles
include the centralized management of Sustainability
Ratings,
seeking
continuous
improvement
in
related
scores.
The
Group
Sustainability
Unit
also
manages
the
ISO
Management
Systems under
the
related
provisions
of equivalent
policies
and the
Sustainability Strategy,
supporting also
the
development
/ maintenance
of ISO
Management Systems
at Group
level,
where
applicable. It
collects, calculates
and
reviews
data,
in
line
with
the
associated
certified
ISO
Management
Systems,
while
it
also
ensures
implementation
of
corresponding initiatives (e.g. operational
net zero transition, energy
self-production, energy and emission monitoring, green
building certifications, recycling
and circular economy management).
Business Units
The Business Units –
Corporate and Investment Banking, and
Retail Banking –
are primarily involved in executing
all portfolio-
related
sustainable
activities,
including
the
implementation
of
the
Financed
Impact
Strategy.
Key
responsibilities
are
classified, inter alia, under the following
3 main categories:
1.
Sustainability Strategy
●
Executing and monitoring financed and specific
operational
sustainable goals and performance
targets in line
with the Net Zero
Strategy.
2.
Sustainable Financing/Funding and Investments
●
Identifying sustainable financing opportunities and designing relevant solutions
and sustainable products.
●
Performing the
sustainable financing assessment, in line with the
Sustainable Finance Framework.
●
Implementing and monitoring the Sustainable Investment
and Green Bond Frameworks.
3.
Sustainability Risk Management
●
Performing the
overall
ESG Risk Assessment.
●
Identifying and implementing mitigation action plans for
sustainability risks.
Eurobank has established dedicated functions, namely the Sustainability Center of Excellence (CoE), within the Business Units
(Corporate
& Investment
Banking and
Retail Banking)
which are
responsible for
assessing, managing
and monitoring
risk
levels
in all
risk categories,
including Sustainability
risks.
The
Head of
CIB
Sustainability
CoE is
responsible
for
overseeing
sustainable
financing
activities,
while
two
Retail
Banking
Sustainability
Coordinators
(Business
and
Individual
clients
respectively) are re
sponsible for organising and supporting sustainable-related
financing activities.
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Group Sustainability Risk (GSR)
The
GSR has
the
overall
responsibility
for
overseeing,
monitoring and
managing sustainability
risks. More
specifically,
the
GSR
prepares
and
maintains
the
Bank’s
Sustainability
risk
management
policies,
processes
and
methodologies,
in
collaboration
with the
Group Sustainability Unit
and the Business
and Risk Units. In
addition, it leads the
development and
implementation of the
Sustainability risk-related framework,
policies and processes, in coordination
with other
units, as well
as acts, monitors and reports
the progress
of the implementation
of the developed
Climate Risk action
plan and reports to
the Board for Sustainability risks matters. The GSR monitors and challenges involved stakeholders
as to setting the Financed
Impact Strategy
(including Net
Zero
targets),
as well
as monitors
the
Financed
Impact
Strategy
(including Net
Zero)
and
reports financial targets
and KPIs. The
GSR also leads the
2nd line independent sustainable
lending re-assessment process
against the
Sustainable
Finance
criteria,
including
the
characterization
of products
of the
Retail Portfolio
as sustainable.
Reviews
and confirms
the
ESG Risk
Assessment and
challenges the
mitigating actions
(as per
pre-determined
thresholds).
Furthermore,
the GSR
develops and
maintains the
Climate Risk
Stress Testing
Framework,
as well
as the
Scenario Analysis
and
Stress
Testing
methodologies,
and
coordinates
the
performance
of
sustainability
risk
scenario
analysis
and
relevant
stress test exercises at Group
level.
Group Compliance
Group Compliance’s key
roles and responsibilities include:
1.
Regulatory compliance
●
Monitors
the
regulatory
environment
and
emerging
trends
around
sustainable
financing
and
suggests
the
Group of the respective
changes/enhancements to the relevant
policies and documents regarding sustainable
financing offerings.
●
Issues a regulatory bulletin, which includes regulatory developments
and their impact on the Bank’s operation.
●
Monitors
the
alignment
of
the
Group’s
activities
with
applicable
laws,
rules,
regulations
and
standards,
including sustainable finance regulatory aspects.
2.
Compliance risk assessment
●
Designs appropriate risk assessment methodologies
for compliance risk.
●
Establishes a monitoring programme
for the relevant
activities within its area of responsibility.
●
Assesses conduct risk in relation to sustainability financing.
3.
Policy updates
●
Maintains the Bank’s conduct-related policies,
including their sustainability components.
4.
Product offering
monitoring
●
Provides advice and recommends
controls over
the Bank’s sustainability product offerings,
while it also checks
that
promotional
statements
do
not
misrepresent
products
or
services
offered
to
customers,
through
its
participation in the Products
and Services Committee and related processes.
Group Internal Audit (Group IA)
The
role
of
the
3rd
line
within
Eurobank’s
governance
and
organisational
structure
is
allocated
to
the
Group
IA,
for
the
independent
review
of
the
adequacy
and
effectiveness
of
the
internal
control
system.
The
Group
IA
mandate
covers
all
processes,
risks
and
mechanisms,
for
all
business
lines
and
internal
units.
In
recent
years,
the
Group
IA
has
recognised
sustainability internal controls
and the risk
management framework
as areas of focus
and has taken
several
initiatives and
actions within
its strategy.
These
aim to ensure
adequate coverage
of the
area, in
line with
the
Bank’s strategy,
as well
as
industry and regulatory developments.
Specifically, the
Group IA strategically
focuses on the Sustainability risks, building on the
following pillars:
●
Methodology/ Infrastructure
– The Management
of sustainability risks and the
Bank’s initiatives are recognised
as
a
separate
auditable
area,
subject
to
risk
assessment.
Furthermore,
climate-related
and
environmental
risk
is
recognised as
a separate
risk category,
assessed in all
relevant areas
of the
audit universe,
in line
with the
Bank’s
risk
taxonomy.
This
category
will
be
extended
to
cover
the
entire
spectrum
of
sustainability
risks,
in
line
with
respective developments
in the Bank’s risk definitions.
●
Resources
–
The
Group
IA
has
extended
its
pool
of
professional
qualifications/
certifications
to
the
area
of
sustainability, with two staff members certified in Sustainability/ESG and Climate
Risk through different professional
bodies to diversify
relevant expertise
and with additional
auditors planned to
pursue relevant
industry-recognised
professional
body
certifications
in
the
future.
This
comes
simultaneously
with
other
initiatives
in
place,
aimed
at
further upskilling through dedicated training sessions,
on-the-job upskilling (participation in and consultation on the
Bank’s
projects
and
initiatives
around
sustainability)
and
increased
awareness
(e.g.
Group
IA
ESG
Focus
Group
focused
at sharing
knowledge on
sustainable practices
and regulatory
initiatives). At
this stage,
the Group
IA has
opted
to
embed
the
right
mix
of
skills
and
knowledge
within
its
existing
organisational
structure,
given
the
multifaceted nature of sustainability risks, affecting all businesses and operations
of the Bank, to a siloed approach,
aiming at a holistic consideration
of the Bank’s sustainability risks.
●
Sustainability
/ Audit Universe Coverage and Audit Planning
– Following the infrastructure
steps described above,
since 2021, the Group IA has been carrying out several assignments around sustainability,
along with monitoring the
Bank’s initiatives in this
area on a risk-based approach.
Key areas of focus
include risk materiality,
governance
and
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strategy,
Sustainability risk management
framework,
product design and
offering,
reporting disclosures,
etc. These
initiatives
come in
addition to
the
existing coverage
by Group
IA in
sustainability areas,
such as
consideration
of
AML-perspectives in loan origination (governance
-social financing practices), review of compliance with the code of
conduct or market practice codes (governance operational
and financing practices) and relevant non-recurring and
forensic audit work.
For more
information regarding
the responsibilities
for impacts, risks
and opportunities of the
administrative,
management
and
supervisory
bodies,
please
refer
to:
“1.3.2
Information
provided
to
and
sustainability
matters
addressed
by
the
undertaking's administrative, management and supervisory bodies
[GOV-2]” and
1.5.1 Description of the processes to identify
and assess material impacts, risks and opportunities [IRO-1].
Alignment of the Remuneration
Policy with the
Group’s sustainability risks objectives
The
Group
has
established
a
Remuneration
Policy
that
is
applicable
to
all
Group
employees
and
covers
their
total
remuneration.
The Remuneration
Policy forms an integral part of the
Group’s corporate
governance practice.
It is developed
in accordance
with its operational
model, business strategy,
objectives and long-term
interests and incorporates
measures
to avoid
conflict of
interest. The
Remuneration
Policy
promotes sound
and effective
risk management.
It is
consistent with
the objectives of the Group’s business
and risk
strategy, corporate culture and values, risk
culture, with regard to
sustainability
risk factors,
including long-term
interests of
the Group
and the
measures used
to avoid
conflicts of interest,
while it should
not encourage excessive
risk-taking on behalf of the Group. It also ensures that remuneration
practices are aligned with the
overall
risk appetite, taking into
account all risks.
Moreover
it includes sustainability
risks, reputational
risks, as well
as risks
resulting from the
mis-selling of products. More specifically,
the Remuneration
Policy has been designed to:
●
Be consistent with and to promote sound and effective
risk management.
●
Stimulate behaviours consistent with sustainability risks approach.
●
Comply with the Group’s
voluntary commitments.
Its basic principles are to:
●
Be gender neutral and non-discriminatory in any aspect of its implementation.
●
Safeguard that remuneration
is sufficient to retain and attract
executives with appropriate
skill and experience.
●
Monitor that internal equity between all
Units is applied.
●
Avoid excessive
risk-taking, even in the
case of direct or indirect sustainability risks.
●
Link remuneration
with long-term performance.
The
Group’s
sustainability-linked
remuneration
integrates
the
achievement
of
components
/
targets
of
the
Group’s
Sustainability Strategy, Operational
and Financed impact, to incentivise management and
employees to contribute towards
their achievement.
Operating model
The Group
has identified, assessed and implements relevant action plans addressing
sustainability risks within the 3 lines.
Integration of Sustainability Risk
Management across the
3 lines
The Group’s
Sustainability Governance
structure introduces
and defines specific
roles
& responsibilities in
order to
support
the roll-out
of the Sustainability
Strategy and
the integration
of the
sustainability risks, through
the involvement
of various
key
stakeholders
(e.g.
Business
&
Risk
Units,
Committees
etc.)
across
the
three
Lines
of
defense,
embedding
regulatory
guidelines and market practices,
as follows:
1st Line:
Dedicated functions, namely the Sustainability Centers of
Excellence (CoE), within the Business Units
(Corporate & Investment
Banking and Retail
Banking) are responsible for
assessing, managing
and monitoring risk
levels in all
risk categories, including
Sustainability risks.
The
Head of
CIB Sustainability
CoE is
responsible
for
overseeing
sustainable financing
activities, while
two Retail
Banking Sustainability
Coordinators (Business
and Individual
clients respectively)
are responsible
for
organising
and supporting sustainable
-related financing
activities. In
addition, the
role
of the
Group Sustainability
Unit in the
1st Line
includes the
responsibility for
managing and coordinating
sustainability strategy
related issues,
the development
of action
plans for the Group's Net Zero portfolio strategies,
the facilitation of the Sustainability data framework
development, as well
as Sustainability Reporting, Environmental
& Energy
Reporting (EMAS Report, Greenhouse
Gases Emissions Report
per ISO
14064) and Sustainability
ratings.
The 1st
Line, in coordination
with other
Units, execute and
monitor financed,
and specific
operational
sustainable goals
and performance
targets based
on the
Group’s
Sustainability Strategy
and in
line with
the
Net Zero Strategy.
2nd Line:
Group Risk Management (GRM) is independent from the Business Units and
has full responsibility in setting the Risk Strategy
and Risk Appetite Framework, including Sustainability risks. Within GRM, the dedicated GSR has the overall
responsibility for
overseeing,
monitoring and
managing Sustainability
risks in
cooperation
with the
other
GRM Units,
as well
as with
Group
Compliance.
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3rd Line:
The Group Internal Audit (Group IA) independently reviews the adequacy and effectiveness of the internal control
framework
in place regarding
Sustainability risk management,
following
a risk-based approach
in line with
its Annual Risk Assessment
and Audit Planning Methodology.
ESG awareness and capacity building
Eurobank places a great
emphasis on building capacity among its employees, so they
are able to support its clients on their
sustainability journey
and their
green transition.
To
this end, in
addition to launching
sustainability initiatives
for its
clients,
Eurobank implements an ESG upskilling plan for
its employees. Eurobank’s ESG awareness
program regarding
sustainability
matters,
is
directed
to
all
of
the
Group's
personnel
-
employees
and
management.
Additionally,
the
Group
has
offered
training to stakeholders
from all
3 lines (i.e. business
units, risk management
units, Group
IA) regarding the
SFF,
to enhance
their
understanding.
Finally,
the
Group
conducts
training
sessions/seminars
tailored
to
its
supervisory
and
management
bodies, tailored to their specific areas of interes
t/expertise.
Specifically, the
following awareness
programmes
are in place:
Employee ESG awareness training
modules
Since 2022, the Group has
launched “ESG Thinking”, an ESG
awareness programme for employees, consisting of the following
modules:
●
Module 1
– ESG
and World:
Fundamentals
of ESG,
megatrends
and related
risk and
opportunities as
well
as the
importance of ESG within an organisation described
through business cases.
●
Module
2
–
ESG
and
the
Bank:
Key
drivers
of
ESG,
its
impact
on
the
banking
industry
and
the
ESG
regulatory
landscape. The ways in which the
Bank engages with sustainability through frameworks,
initiatives and products.
●
Module 3
– ESG and Me: Content aiming to cultivate an open and growth mindset when dealing with sustainability
issues by motivating employees
to take personal action through
practical steps personally and professionally.
Target
setting
The
Board of
Directors, Board
Committees, Management
Committees and
functions oversee
the setting
of targets
related
to material
impacts, risks,
and opportunities
through
a combination
of strategic
review,
decision-making,
and continuous
monitoring.
The
Sustainability Management
Committee (Sustainability
ManCo -
SMC) plays
a central
role
in this
process
by reviewing
the Sustainability Strategy,
providing strategic
direction on sustainability
initiatives, reviewing
and approving
the Net Zero
targets and transition plans, integrating the elements
of the Sustainability Strategy and the Net Zero commitments, into the
Group’s
business
model
&
operations,
while
also
ensuring
that
stakeholder
interests
and
expectations
are
met.
It
also
approves
changes in eligible
assets of Green
Bond and Sustainable
Finance Frameworks,
regularly measures
and analyses
the
progress
of
the
Sustainability
Strategy
goals
and
performance
targets,
ensure
the
proper
implementation
of
Sustainability-related policies and procedures, in accordance with
supervisory requirements and voluntary commitments. The
Committee further
approves
Sustainability-related reports,
including the Sustainability
Statement and Green
Bond Report,
among others.
Additionally,
the
Sustainability ManCo
reviews
and endorses
Sustainability-related
KPIs linked
to variable
remuneration
and
incentive
schemes,
prior
to
submission
to
the
Incentive
Plan
Committee.
Through
this
oversight,
the
Sustainability
ManCo
ensures
the
continuous
improvement
and
alignment
of
Sustainability-related
ISO
Management
Systems, including
ISO standards
in the
environmental
and energy
domains, ensuring
their
ongoing suitability,
adequacy,
and effectiveness.
Sustainability-related expertise
The Board
of Directors,
Board Committees,
Management Committees,
functions and
involved
units possess a
collective set
of skills and
expertise that
are crucial
for overseeing
sustainability matters.
At the
Board level,
Sustainability Management
Committee
(Sustainability
ManCo
-
SMC)
and
senior
management,
expertise
in
sustainability
is
represented
through
a
structured approach
that integrates
both in-house knowledge
and external expertise.
The SMC provides
strategic direction
on Sustainability -related initiatives, aligning them
with the Group’s
broader transformation
plan. The members
of the SMC,
including senior roles like the
Deputy CEO, Group Chief Operating Officer
(COO) & International Activities, Chief Risk Officer
(CRO),
and
Group
Senior
Sustainability
Officer
(GSSO),
are
responsible
for
ensuring
that
Sustainability
issues
are
fully
incorporated into the operations
and decision-making processes across the organisation.
Furthermore, the SMC reviews and
approves sustainability
training and awareness
initiatives. Moreover
the BoD ensures
that key individuals
across the
Group
are equipped with necessary expertise as it has
the oversight over training
and awareness initiatives as evidenced by its role.
This
structure
ensures
that
expertise
is
both
possessed
internally
and
is
accessible
externally,
empowering
the
Group
to
manage sustainability challenges effectively.
The
skills
and
expertise
present
within
the
Board
of
Directors,
Board
Committees,
Management
Committees,
units
and
functions are directly aligned
with the undertaking's material impacts,
risks, and
opportunities. For instance, the Sustainability
ManCo
is
tasked
with
overseeing
the
integration
of
sustainability
goals,
including
Net
Zero
Strategy
and
Sustainable
Financing activities, into the Group’s broader strategic objectives. The expertise of senior executives such as the Deputy CEO,
Group COO and
International Activities,
CRO and GSSO ensures
that Sustainability considerations
are embedded into the
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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Group’s
daily operations,
enabling them to
address and manage the
material risks and
opportunities tied to sustainability.
The Business
Units (Corporate
& Investment
Banking, Retail Banking)
are actively
engaged in managing sustainability
risks
as
part
of
their
operations,
with
specific
responsibilities
assigned
through
the
Group
Sustainability
Unit,
responsible
to
manage and coordinate sustainability strategy related
issues. Through the
structure, these bodies ensure that sustainability
risks are appropriately assessed, monitored, and mitigated
at every level,
from operational
to strategic decision-making.
A
sustainability
awareness
training
was
conducted
for
the
Board
of
Directors,
enhancing
the
understanding
of
CSRD
Reporting requirements, including Double Materiality Assessment, EU Taxonomy,
and disclosure requirements among others.
Through
their participation
in this
training, the
Board of
Directors developed
a comprehensive
understanding of
the
CSRD
requirements
and
learned
how
to
consider
these
in
the
company’s
strategic
planning
and
long-term
growth
objectives
effectively
1.3.2
Information provided to and sustainability matters addressed by the undertaking's
administrative, management
and supervisory bodies [GOV-2]
The
Sustainability
Management
Committee
(SMC)
is
regularly
informed
about
material
impacts,
risks,
and
opportunities
through
multiple reporting
channels. Specifically,
the
SMC meets
quarterly
and/or on
an ad
hoc basis,
when necessary,
to
review
and
provide
strategic
direction
on
sustainability-related
issues,
including
material
risks
and
opportunities.
The
Committee reviews
and monitors
sustainability strategies,
action plans,
KPIs and
progress
towards sustainability
goals to
ensure
they
align
with
the
Group’s
objectives.
The
SMC
also
reviews
reports
on
sustainability
issues,
risk
management
processes, and performance
metrics, ensuring that decisions are
aligned with sustainability goals.
Impacts, Risks and Opportunities consideration
The SMC carefully
considers impacts, risks and opportunities when overseeing
the Group’s strategy.
The SMC plays a critical
role
in providing
strategic
direction
on sustainability
matters,
ensuring the
Sustainability Strategy
aligns with
the
Group’s
overall
Transformation
Plan. The
Committee is
involved
in the
approval
of action
plans, project
monitoring, and
reviewing
Sustainability-related
policies
and
frameworks.
Policies
affecting
internal
stakeholders
are
available
to
the
Eurobank’s
intranet, while those referring to external
stakeholders, such as the Group's
Code of Conduct
and Ethics, are
available through
corporate site.
Overall
the Group
ensures there
is a high level
of accountability in Policy
development
and implementation.
Policies are approved by the appropriate Governance bodies such as the Board of
Directors or specialized
committees, which
ensure that there
is alignment with the Group's
strategic goals and stakeholder
interests.
Additionally,
sustainability
risks
are
assessed
regularly,
ensuring
that
sustainability
factors
are
embedded
in
the
Group’s
strategic decisions, including sustainability targets,
major investments, and the
overall
risk management framework.
The Board Risk Committee plays a crucial role
in ensuring that the Group Risk Strategy
and Risk Appetite Framework inform
the business
plan and decision
-making, thus aligning
risk management
processes
with the
Group's broader
objectives and
actions. The
Committee considers
trade-offs
associated with
material sustainability
matters, for
example by
incorporating
sustainability-related
risks
and
opportunities
within
the
existing
risk
management
frameworks.
This
ensures
that
sustainability considerations
are evaluated alongside financial and operational
risks.
During the
reporting period,
the
Board
of Directors,
Board Committees,
Management Committees
and functions,
through
the
SMC, addressed
several
material
impacts, risks,
and opportunities.
Through
the
Double Materiality
Assessment
(DMA)
exercise, the SMC reviewed the Impacts, Risks, and Opportunities (IROs) that were identified as
material for the Group. These
IROs were assessed based on both
impact and financial materiality to ensure comprehensive
consideration.
For a detailed list of the Impacts, Risks,
and Opportunities (IROs) approved by the SMC, please refer to the respective section
of the Sustainability Statement, which outlines these
material issues in further
detail.
For
more information
regarding the
due diligence
process please
refer
to: 1.5.1
Description of
the processes
to identify and
assess material impacts, risks and opportunities [IRO-1]
1.3.3
Integration of sustainability-related
performance in incentive
schemes [GOV-3]
The
Group
has
established
a
Remuneration
Policy
that
is
applicable
to
all
Group
employees
and
covers
their
total
remuneration.
The
Remuneration
Policy
forms
an integral
part of
the
corporate
governance
practice
and is
developed
in
accordance
with
its
operational
model,
business
strategy,
objectives,
long-term
interests
of
the
Group
and
incorporates
measures to avoid conflict of interest.
The Remuneration
Policy promotes sound and effective risk management and is consistent with the objectives of the Group’s
business and risk strategy, corporate
culture, values and risk culture. It also considers sustainability risk factors, as well as the
long-term interests
of the
Group. Additionally,
it includes measures
to avoid conflicts
of interest
and should not
encourage
excessive
risk-taking on
behalf of the
Group. The
Group ensures
that remuneration
practices
are aligned
with their
overall
risk appetite, taking
into account all
risks, including sustainability
risks, reputational
risks, as well
as risks resulting
from the
mis-selling of products or services.
In addition, the
Remuneration
Policy has
been enhanced with
the establishment
of Variable
Remuneration
Framework,
Key
Performance
Indicators
(to balance
employees’
performance
and encourage
proper
conduct) and
Key
Risk Indicators
(to
promote sound and effective
risk management including sustainability risks) at Group/ Unit/ Individual level, as appropriate.
The
Variable
Remuneration
Framework
aims
at
providing
(i)
an
appropriate
balance
of
variable
remuneration
elements,
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aligning the
interests
of employees,
shareholders
and other
stakeholders,
strengthening
the
Group’s
position as
a leading
European
bank and
(ii) effective
remuneration
practices
in compliance
with the
applicable regulatory
environment.
In this
context, Key Risk
Indicators are
set at Group
level, whereas
Eurobank underscores
the significance
of introducing more
Key
Risk Indicators linked to sustainability risks in the
following years.
More specifically,
the Remuneration
Policy has been
designed to (a) be consistent with
and to promote
sound and effective
risk management,
(b) stimulate
behaviours consistent with
sustainability risks approach,
as well
as (c) comply
with Group’s
voluntary
commitments.
Its
basic
principles
are
to
(a)
be
gender
neutral
and
non-discriminatory
in
any
aspect
of
its
implementation,
(b)
safeguard
that
remuneration
is
sufficient
to
retain
and
attract
executives
with
appropriate
skill
and
experience, (c) monitor that internal equity between all Units is applied, (d) avoid excessive
risk-taking with respect to direct
or indirect sustainability risks and (e) link remuneration
with long-term performance.
The
Group’s
sustainability-linked
remuneration
integrates
the
achievement
of
components
/
targets
of
the
Group’s
Sustainability Strategy, Operational
and Financed impact, to incentivise management and
employees to contribute towards
their achievement.
The
Remuneration
Committee
approves
any
incentive
scheme
both
at
Bank
and
Group
level,
while
the
Non-Executive
Members
of
the
BoD
approve
and
periodically
review
the
Remuneration
Policy
and
are
responsible
for
overseeing
its
implementation.
For the time being, the remuneration
of members of the administrative, management and supervisory bodies is not assessed
against GHG emission reduction targets, and thus
no percentage of this year’s
remuneration
is linked with the
achievement
of sustainability targets.
1.3.4
Description of the due diligence on sustainability
matters [GOV-4]
The
following
table shows
how and
where
the application
of the
main aspects
and steps
of the
due diligence
process
are
reflected in Eurobank Holding’s
Sustainability Statement:
Core elements of due diligence
Paragraphs
in the Sustainability
Statement
Description
a) Embedding due diligence in
governance, strategy
and business
model
2.5.1 Sustainable financing and investment
offerings
2.4.3 Policies related to the
integration of
sustainability in risk management [MDR-P]
2.2.1 Integration
of sustainability-related
performance in incentive
schemes [ESRS 2
GOV-3]
The Group
integrates sustainability into
its governance and strategy
through
frameworks
like the Climate Risk
Scorecard and Sustainable Finance
Framework,
ensuring these principles
guide decision-making.
b) Engaging with affected
stakeholders in all key
steps of the
due diligence
1.4.3 Stakeholder interest
and engagement
[SBM-2]
1.4.4 Material impacts, risks and
opportunities and their interaction
with
strategy and business model [SBM-3]
2.4.3 Policies related to the
integration of
sustainability in risk management [MDR-P]
The Group
engages stakeholders to
align business practices with
expectations, informing its materiality
assessment and relative policies.
c) Identifying and assessing adverse
impacts
2.4.3 Policies related to the
integration of
sustainability in risk management [MDR-P]
2.5.1 Sustainable financing and investment
offerings
The Group
conducted a DMA to
identify and assess adverse impacts,
focusing on both potential
and actual
effects on people and the
environment.
In addition, Eurobank uses the
RIMA
process and ESG Risk Assessment to
evaluate risks, applying enhanced due
diligence for high-risk clients.
d) Taking actions
to address those
adverse impacts
2.5.1 Sustainable financing and investment
offerings
The Group
implements action plans for
workforce
impacts and supports
financial inclusion through various
initiatives.
e) Tracking the
effectiveness
of
these efforts
and communicating
2.4.1. Integration
of Sustainability in risk
management
2.5.1 Sustainable financing and investment
offerings
The Group
ensures transparency
through risk management and internal
controls
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1.3.5
Risk management and internal controls
over sustainability reporting [GOV
-5]
The
Group’s
risk
management
and
internal
control
system
concerning
Sustainability
Statement
reporting
covers
the
accuracy, completeness, and integrity of the data related
to Sustainability Statement reporting. It includes dry run exercises,
quality checks, workshops
with relevant
stakeholders,
and assumptions made when
direct data could
not be obtained
from
value chain
stakeholders
to ensure
the
accuracy and
integrity of
the
data. To
further
enhance this
process,
the
Group has
developed
a
comprehensive
Sustainability
Statement
reporting
process,
aligning
with
the
Corporate
Sustainability
Reporting Directive (CSRD)
requirements effective
from fiscal
year 2024. This
document establishes
a unified framework
for
data collection, quality assurance,
and reporting across all subsidiaries, ensuring
transparency and compliance.
In addition, the
relevant departments responsible for providing qualitative information are responsible for supplying
accurate
qualitative
information,
by
examining
the
provided
data
to
ensure
consistency
and
completeness.
The
reporting
process
outlines
clear
roles
and
responsibilities
for
data
and
content
owners
and
reviewers.
This
process
aims
to
reinforce
accountability
within
the
Group
and
foster
a
culture
of
continuous
improvement,
thereby
upholding
Group’s
enduring
commitment to environmental,
social, and governance (ESG) excellence.
Eurobank
adopted a risk
assessment approach
that incorporates
regular evaluations
of data completeness,
accuracy,
and
integrity.
To
prioritise
risks,
we
utilise
a
risk-based
approach,
considering
the
potential
impact
on
the
Sustainability
Statement
reporting
process.
The
CSRD
Operating
Committee
oversees
this
process,
ensuring
alignment
with
CSRD
standards and supporting continuous improvement.
The
main risks
identified
within
the
risk assessment
performed
are
data gaps
from
value
chain stakeholders,
accuracy
of
estimations,
and
timing
of
data
availability.
To
mitigate
these,
Eurobank
conducted
dry
run
exercises,
quality
checks,
workshops with
stakeholders,
and made necessary
assumptions to fill
data gaps. Eurobank
also conducted regular
reviews
to
ensure
the
coordination
of
data
collection,
consolidation,
and
verification
to
maintain
high
standards
of
quality
and
compliance.
The
outcomes
of the
risk assessment
and internal
controls
throughout
the
Sustainability Statement
reporting process
are
integrated into relevant internal functions
and procedures with regular
updates provided to the
Group Senior Sustainability
Officer and, if necessary,
to relevant Committees.
1.4
Strategy - Company,
business model and stakeholder engagement
1.4.1
Information on the
market position and strategy
of the company [SBM-1]
The
Group
offers
a
broad
range
of
financial
products
and
services,
including
corporate
and
investment
banking,
retail
banking
(personal
banking,
business
and
individual
banking),
wealth
management,
leasing,
factoring,
and
specialized
solutions such as shipping finance and syndicated debt solutions. In the reporting period, the Group has expanded its digital
transformation
efforts,
offering
services
like
digital
banking
solutions.
Moreover,
the
Group
has
increased
its
focus
on
financing
green
projects
and
promoting
ESG
(Environmental,
Social,
and
Governance)
criteria
in
its
products,
such
as
sustainability-linked loans, bridge financing programs for
energy efficiency projects,
financing for renewable energy
projects
and
other
activities
with
positive
environmental
and
social
impact.
Eurobank
serves
a
wide
range
of
customer
groups,
including
large
corporate
clients,
institutional
investors,
personal
banking
clients,
SMEs,
and
public-sector
entities.
Geographically,
the Group
is primarily active in Greece,
Cyprus, Bulgaria and Luxembourg. Furthermore,
it has made strides
in expanding its green financing services to support the
transition toward
sustainable business practices.
Eurobank’s sustainability-related
goals include financing the
transition to sustainable
energy,
enhancing the environmental
impact of
its clients,
and investing in
technologies that reduce carbon footprints. These goals will
be further enhanced through
the Group’s
Net Zero
Commitment to
the
Net Zero
Banking Alliance
(NZBA). In
addition, these
goals are
embedded in the
Group’s
core
strategy,
and
a
significant
portion
of
its
portfolio
focuses
on
renewable
energy
projects,
energy-efficient
technologies, and sustainability-linked financing. Eurobank’s commitment to sustainable finance also
includes driving growth
in digital services, which help reduce environmental impacts and promote green practices, aligning with the Group’s
broader
sustainability objectives.
Geographical area:
Headcount:
Bulgaria
3,859
Cyprus
2,768
Greece
6,058
Luxemburg
130
Sustainability Strategy
Eurobank
supports the
transition
towards
a sustainable
economy
and considers
sustainability and
climate
change as
an
opportunity.
A
key
strategic
objective
is
to
adapt
the
business
and
operation
in
a
way
that
addresses
climate
change
challenges,
accommodates
social
needs
within
its
business
model
and
safeguards
prudent
governance
for
itself
and
its
counterparties,
in accordance
with supervisory
initiatives,
and following
international
standards and
best practice.
To
this
end,
Eurobank
has
designed,
approved
and
is
currently
implementing
its
Sustainability
Strategy,
including
targets
and
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commitments, along two key pillars:
Operational Impact Strategy
(OIS)
and
Financed Impact Strategy (FIS)
, both of which
aim to address sustainability matters within the
context of the Group’s
business model and operations.
1.
Operational Impact Strategy
(OIS):
The
Operational Impact Strategy
(OIS) focuses on minimising
the operational environmental
footprint, ensuring that its own
activities are sustainable, and aligning its operations with climate and sustainability goals. The
key elements of this strategy
are:
●
Environmental
Impact
:
Minimising
negative
impact
of
Eurobank's
operations,
to
promote
environmental
stewardship with a clear goal of achieving climate neutrality.
●
Societal Impact
: Providing
a diverse
and inclusive
environment
for
Eurobank’s
people and
clients, while
fostering
sustainable development and prosperity
for the benefit of
society.
●
Governance & Business Impact
: Focusing on building sustainability awareness, internally and across its value
chain,
while intensifying Eurobank's efforts
for ethics and transparency.
The OIS is supported by a governance
structure of multiple project streams (one per
each commitment) and the supervisory
ESG/OIS Committee.
Progress
is regularly
reviewed
at the
Sustainability Management
Committee. Each
project
stream is
planned with
milestones, KPIs,
annual targets
and long-term
interim targets,
serving the
declared commitments,
spanning
over the
next decade. Links are established with Transformation
streams as well as corresponding ISO Management
System
standards, to
ensure substantiation
and certification
of activities,
validate target
setting and
measured
performance,
and
systematically monitor progress
through internal reviews
and external assurance.
2.
Financed Impact Strategy:
The
Financed Impact Strategy
focuses on foster
favorable economic,
social and environmental outcomes across
all aspects
of its
financing activities,
with
a commitment
to sustainability
and responsible
stewardship.
To
achieve
this objective,
the
Financed Impact Strategy is structured
around the following
4 strategic pillars:
●
Client
Engagement
and
Awareness
:
Helping
clients
transition
to
more
sustainable
business
models
by
raising
awareness of climate change challenges and opportunities.
●
Supporting
Clients
in
Transition
:
Facilitating
the
transition
of
clients
towards
sustainable
practices
by
offering
financing
solutions,
that
are
guided
by
the
financing
approaches
and
the
eligible
activities
of
the
Sustainable
Finance Framework.
goals and ambitions.
●
Enablers and Tools
for Sustainable
Financing
: Providing
frameworks,
tools, and
products to
underpin sustainable
financing
●
Assessment and Management of sustainability-Related Risks
: Identifying and managing the sustainability-related
risks within its loan and investment portfolios,
including assessing exposure to transition and physical risks linked to
climate change.
The Financed Impact Strategy
supports Eurobank's commitment to
sustainable financing
and ensuring that the Group’s
financial activities align with sustainability goals, such as reducing the
carbon footprint of financed
projects.
Main Challenges Ahead:
Both strategies face
several
challenges:
●
Operational Transition
: The
need of transition
to climate neutrality
in Eurobank’s
own operations
while managing
the associated
costs and risks.
This involves
transforming
internal processes
and aligning with
evolving
applicable
regulatory requirements
and voluntary initiatives as well
as adopted standards and guidelines enabling Eurobank’s
contemporary and continuously updated approach
towards Sustainability, in line
with international best practice.
●
Client
Transition
:
Assisting
clients
in
adapting
their
business
models
to
meet
sustainability
and
climate
change
objectives. This may involve addressing different levels of maturity, overcoming resistance to change, and
navigating
and aligning to complex regulatory requirements.
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●
Sustainability-related
Risks
:
Managing both
transition
risks
(e.g., changes
in market
and regulatory
conditions)
and
physical risks
(e.g., climate change
impacts such as
extreme weather)
that could
affect both
the Group’s
own
operations
and
the
sectors
in
which
it
invests
or
lends
to
is
dependent
on
data
availability
and
commitment
of
involved counterparties
and stakeholders
●
Alignment
with
Global
Standards
: Ensuring
full
compliance
with global
sustainability
standards,
climate-related
financial
disclosures
(such
as
TCFD
),
and
managing
the
increasing
demand
for
transparency
in
sustainability
reporting.
To overcome
these challenges, Eurobank
has implemented a series of strategic
initiatives:
●
Operational Impact Strategy
(OIS) key components
:
o
Operational efficiency
: Focus on energy efficiency,
reducing carbon emissions, towards the commitment to
achieve Net Zero in its
operations for Scope 1 & 2
by 2033 and
Scope 3 by
2050. Promotion of environmental
stewardship
by
accelerating
also
transition
towards
a
paperless
banking
network
and
preservation
of
natural resources,
as well as extending
circular economy practices.
Accommodation of social
needs within
its business
model and
safeguarding
prudent governance
for
itself and
its counterparties,
in accordance
with supervisory initiatives, and following
international standards and best practice.
o
The
OIS
is
supported
by
a
governance
structure
of
project
streams
per
each
commitment
and
the
supervisory ESG/OIS Committee. Regular review
of progress via milestones
and KPIs to ensure annual and
long-term sustainability
goals related
to Environmental,
Societal, and
Governance
& Business
Impact are
met. Progress is regularly
reviewed at the
Sustainability Management Committee.
●
Financed Impact Strategy (FIS) key
components
:
o
Sustainable Financing:
Development
of strategies
that
will
promote
the
green
transition
of the
Group’s
clients through sustainable financing.
o
Portfolio
alignment:
Gradual alignment of the Group’s portfolio
with sectoral transition pathways that are
aligned with the 1.5°C climate transition
scenario.
o
Net zero strategy:
Sectoral decarbonisation
targets covering
the Group’s
lending portfolios,
with phased
target-setting up to 2050.
In line with its commitment to address climate
change, the Group has joined
the Net-Zero
Banking Alliance (NZBA), a bank-
led, UN-convened
alliance of
banks worldwide,
reinforcing
its dedication
to aligning
its lending
and investment
portfolios
with net-zero
emissions by 2050 or sooner,
in line with the most ambitious targets set by
the Paris Climate Agreement.
The
Group has
started developing
sectoral,
financed emissions
reduction
targets based
on the
NZBA framework,
for some
of
the
most
carbon-intensive
and,
therefore,
most
relevant
and
impactful
sectors
and
portfolios.
The
Group
applies
established industry standards (e.g. NZBA, PCAF) and accredited science-based decarbonisation scenarios, in line with a 1.5-
degree Celsius objective by
2050.
1.4.2
Description of business model and value chain [42a-42c]
Upstream value chain
In
mapping
the
upstream
value
chain,
Eurobank
has
identified
the
key
activities
and
actors
involved
in
supporting
its
operations.
The
upstream
value
chain includes
suppliers
and stakeholders
that
provide
critical
inputs—both
non-financial
(e.g.
supply
of
goods
and
services)
and
financial—necessary
for
Eurobank’s
operations
to
function
effectively.
Given
the
complexity of
Eurobank’s
operations,
Eurobank
focuses
on direct
(Tier
1) suppliers
for
the
upstream side
of its
value chain.
These suppliers are identified as
having the most direct impact
on the Eurobank’s operations, providing capital, critical goods
and
services
such
as
IT,
real
estate
management,
energy,
and
shaping
the
surrounding
legal,
regulatory
and
voluntary
framework.
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Key Activities and Actors in the
upstream Value Chain:
●
Supply of Goods
and Services
- The
upstream value
chain for
Eurobank
consists of a
range of
suppliers providing
critical
goods
and
services.
These
include
suppliers
of
IT
hardware
and
software,
office
equipment,
paper,
and
consulting services.
●
Supply of Capital
- Eurobank
is also reliant
on upstream
capital providers
to maintain financial
liquidity and fund
its operations. This involves key activities such as deposit gathering, bond issuance, capital market transactions, and
other investor
-related activities.
●
Regulatory
and
Voluntary
Frameworks
-The
development
of
regulatory
and
voluntary
frameworks
is
a
critical
component of
Eurobank’s
upstream value
chain. Regulatory
bodies such
as the
European
Central
Bank (ECB),
the
European Banking Authority (EBA) and the Single
Resolution Board (SRB) provide
the regulatory frameworks
within
which Eurobank operates.
Downstream value chain
Eurobank
in
entities
downstream
from
the
reporting
organisation,
has
included
categories
such
as
customers,
receive
or
utilise the Eurobank’s products and services. Eurobank has established the boundary of its downstream value chain
to include
corporate and retail clients, but it does not extend to the
clients of those clients.
Key Activities and Actors in the
downstream Value
Chain:
●
Provision of Financing to Clients
-
Eurobank provides
loans to both corporate
and retail clients, funding a range of
business
activities.
This
includes
supporting
operational
needs
and
facilitating
growth
for
small
and
large
corporations while offering
financial solutions for
individual customers.
●
Capital Markets Activities
-
Eurobank provides
services related to investment
banking, instruments trading, mutual
fund
products,
institutional
asset
management,
private
banking
and
other
financial
advisory
services.
Eurobank
participates
in
market-making
and
advisory
roles
for
corporations,
financial
institutions,
and
governments,
promoting sustainable investments.
●
Real Estate
-
In addition to financing, Eurobank engages in construction, real estate properties operation
(including
those properties held
for the purpose of leasing) and other
real estate services.
Eurobank's Position
in the Value
Chain:
Eurobank is positioned as a central player in the financial services value chain, connecting a
diverse set of upstream suppliers
with downstream
customers.
Specifically,
key
activities in
its own
operations
include
Banking activities,
Global
Markets
&
Asset Management,
Investment
Property
& Real
Estate Management.
Its role
spans from
sourcing capital
and operational
inputs to providing
key financial
services and
products to both
corporate
and retail clients.
By fostering
sustainability in its
operations,
especially in sustainable
financing, Eurobank
is positioning
itself as a
leader in
promoting sustainable
business
practices within the
banking sector.
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1.4.3
Stakeholder interest and engagement
[SBM-2]
The Group
has developed a robust
Stakeholder Engagement Plan
as a core part of its materiality assessment. This
process
aligns
with
European
Sustainability
Reporting
Standards
(ESRS)
,
which
emphasise
the
importance
of
gathering
diverse
stakeholder
perspectives
to identify
impacts, risks,
and opportunities
(IROs) and
align business
practices
with stakeholder
expectations and sustainability objectives.
For
the
identification
and
mapping
of
its
stakeholders,
the
Group,
established
a
systematic
and
dynamic
process
in
the
context of the double materiality assessment
which involved the
following:
Stakeholder Engagement Disclosure
1.
Key Stakeholders
Eurobank has
identified and classified stakeholders
into three main
groups to ensure
effective
engagement across
various perspectives:
o
Primary/Affected Stakeholders
: Directly impacted by Eurobank’s
operations.
o
Secondary Stakeholders
: Indirectly affected
but influential in shaping Eurobank’s policies and operations.
o
ESG Experts
: Internal
and external
ESG experts
who own
the due
diligence and
stakeholder
engagement
process for
materiality assessment.
Key stakeholder
groups include:
o
Internal Stakeholders
: Board of Directors, Senior Management,
and Employees.
o
External Stakeholders
: Customers
and Clients, Business
Community, Civil
Society, Suppliers
and Partners,
Investors and Shareholders,
as well as Government
and Regulators.
2.
Engagement with Stakeholders
Eurobank engages with both
internal and external stakeholders
as part of its comprehensive impact and financial
materiality
assessments.
For
impact
materiality,
stakeholders
from
the
Group
are
engaged
to
understand
the
sustainability impacts across various entities and geographic
locations.
3.
Organisation of Stakeholder
Engagement
Engagement
is
organised
systematically
through
a
variety
of
methods
and
classified
into
Internal
and
External
Stakeholder Groups
:
o
Identification
and Classification
: Stakeholders
are identified
and categorized
based on
ESRS guidelines,
which include both “affected
stakeholders” and “users
of the Sustainability Statement.”
o
Engagement Methods
: Eurobank
employs electronic
questionnaires and
focus groups
to gather
feedback
from stakeholders. For impact materiality, online questionnaires are the primary
engagement method, while
focus groups are
used for financial materiality to assess sustainability-related
risks and opportunities.
o
Segmentation
by
Business
Areas
:
Engagement
activities
span
across
Eurobank’s
business
segments
to
ensure the inclusion of diverse
perspectives from each operational
area.
4.
Purpose of Engagement
The purpose of Eurobank’s stakeholder engagement is to establish open communication channels with stakeholders
to understand their needs and concerns
and integrate them into the
Group’s Sustainability Strategy.
Key priorities
for Eurobank’s
engagement include:
o
protection of their
personal data,
o
leveraging
new technologies to enhance service,
o
ensuring access to financial services,
o
respect for human rights and the
environment, and
o
upholding corporate culture
and governance values along
with adequate risk management practices.
5.
Consideration of Engagement
Outcomes
Eurobank integrates the feedback from stakeholders
into its decision-making processes to ensure that the identified
impacts,
risks,
and
opportunities
are
accurately
reflected
in
Group’s
Sustainability
Strategy.
Key
outcomes
are
validated
by
the
Sustainability
Management
Committee
to ensure
alignment
with
ESRS standards
and effective
incorporation into Eurobank’s
risk management and sustainability frameworks.
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Furthermore,
Eurobank
promotes
two-way
communication
and
develops
ongoing
dialogue
with
internal
and
external
stakeholders,
to
be
able
to
actively
meet
the
expectations,
concerns
and
issues
raised
by
all
its
stakeholders.
Further
information and the
means of communication are
presented in the table below:
Stakeholder group
Cooperation framework
and
expectations
Means of communication
Board of Directors
•
BoD member assigned as
responsible for climate-related
and environmental risks at
Group level.
Communication
with the
Board of
Directors is
facilitaded through
regular
and
ad-hoc
meetings
as
well
as
Progress
reports.
Regular
and
ad-hoc
meetings
ensure
structured
updates,
while
addressing
urgent
matters.
Progress
reports
are
consistently
shared
to
provide
ongoing
insights
ensuring the BoD is well-informed at
all times.
Executive
Management
•
CEO-appointed Sustainability
Management Committee.
•
Sustainability-related issues
raised at ExBo level.
Communication with Executive management is maintained through regular
and ad-hoc meetings, along with periodic progress reports.
Investors,
Shareholders and
Investment
Community
•
Timely reporting of accurate
and complete information on
the Group’s performance
and
strategy.
The
Group
engages
in
ongoing
communication
with
its
investors
to
enhance
their
understanding
of
matters
that
may
be
relevant
to
them,
thereby
enabling them to
effectively exercise
their voting
rights and make
informed
investment
decisions.The
Group
organises
Annual
General
Meetings
and
Extraordinary
General
Meetings
οf
Shareholders
and
publishes information
in a continuous, regular and
timely manner (through
the Annual Reports, Financial Results and announcements on its corporate
websites) ensuring that stakeholders have easy access to essential
updates
and disclosures.
Employees
•
Timely information
on issues
concerning the Group, the
development and progress of
skills, as well as employee
engagement and benefits.
The
Group places
a strong
emphasis on
the
upskilling and
reskilling of
its
employees,
upholding
a
high
standard
of
professionalism
while
implementing
anti-discrimination
policies
to
create
an
inclusive
work
environment.
The
Group
provides
extensive
benefits
to
all
employees,
irrespective of gender,
age, or marital status. Frequent meetings, breakfast
gatherings,
and
various
events
promote
open
communication
between
management
and
staff
representatives.
Enhanced
communication
channels
like
HR4U
and
the
Connected
portal
ensure
responsiveness
to
employee
inquiries.
The
Group
promotes
work-life
balance,
social
and
environmental
awareness,
and
volunteering
and
implements
an
ESG
upskilling
plan
and
awareness
initiatives
for
employees
and
clients
to
support sustainability efforts.
Business Community
(including corporate
networks,
entrepreneurship,
industry associations,
financial institutions
and start-up
entrepreneurs)
•
Mutual cooperation and open
communication driven by
ensuring the interests of the
business community.
•
Showcasing and promoting new
businesses based on specified
criteria and transparent
procedures.
The Group
supports entrepreneurship, innovation, and
internationalization
through
strategic
initiatives
including
dialogue
with
professional
associations and collaborations.
Civil Society
(including
communities, NGOs,
the academic and
scientific community,
international
organisations, and
the Media)
•
Engaging 3rd parties in CSR
initiatives designed and
implemented by the Group
•
Responding to 3rd party actions
with a social cause
•
Cooperation with the
Media to
ensure optimum and effective
promotion of the
Group and
its products and services.
The
Group
engages
with
non-governmental
organisations,
to
maintain
transparent
communication
and
prompt
responses.
The
Group
also
encourages
organisations
to
take
part
in
corporate
social
responsibility
initiatives,
providing
support
through
sponsorships
and
donations.
Employee
volunteer
efforts
enhance community involvement.
Partnerships
with academic institutions promote innovation in CSR practices.
Customers and Clients
•
Responsible information,
customer service and provision
of products and services with a
deep sense of respect and
transparency.
The
Group places
customers at
the
centre of
its activities
and one
of its
purposes
is to
help
them
in the
transition
to a
more
sustainable future,
accompanying
them
on
their
journey
towards
decarbonisation,
offering
them
innovative
solutions
to
finance
their
investments
with
positive
environmental
and
social
impacts
and
managing
initiatives
that
better
respond to sustainability-related challenges. For
more information
on the
Bank’s communication channels with customers and clients please
refer to
section 3.2.2 Policies and Actions.
Government and
Regulators
•
Compliance and harmonisation
with the supervisory and
regulatory framework.
The
Group
supports
open
communication
(meetings,
consultation etc.)
with government
and regulators in
order to
facilitate data sharing and issue resolution.
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Stakeholder group
Cooperation framework
and
expectations
Means of communication
Suppliers and Partners
•
Cooperation based on
transparent procedures
and
specified criteria to achieve
mutually beneficial
agreements.
•
Communication with third-
party partners, to investigate
further tailor-made business
offerings.
The
Group
provides
comprehensive
and
transparent
information
in
procurement
processes
to
its
suppliers,
ensuring
compliance
with
legal
requirements
in
labour
and
environmental
matters,
respecting
human
rights and
stimulating the
demand for
socially responsible
products and
services.
On
top,
Eurobank
implements
an
electronic
tendering
system
complemented by a supplier evaluation platform and procedure, ensuring
transparency and efficiency in supplier selection.
The Group’s understanding of the interests and views
of its
key stakeholders is shaped through its
comprehensive stakeholder
engagement and DMA processes. By engaging with a wide range of stakeholders, including customers, employees, investors,
business
community,
suppliers
and
partners,
regulators,
and
civil
society,
the
Group
gathers
crucial
insights
into
their
expectations
regarding
issues
such
as
environmental
sustainability,
governance,
human
rights,
and
access
to
financial
services.
These
insights are
integrated
into
the
Group’s
strategy
and business
model, ensuring
that
its
actions
align
with
stakeholder
needs. Additionally,
the materiality
assessment process
identifies the
actual and
potential positive,
as long as
negative impacts
of the
Group’s
activities on the
environment
and society,
guiding its
decision-making and
ensuring long-
term value creation for
all stakeholders.
Views and interests of affected
stakeholders
The views and interests of
affected stakeholders with regard to the Group’s sustainability-related impacts are communicated
to
the
Board
of
Directors,
Board
Committees,
Management
Committees
and
functions
through
a
structured
process.
Stakeholder engagement is integral to the Group’s materiality assessment, and
relevant insights gathered from both internal
and
external
stakeholders
are
reviewed
by
the
Sustainability
Management
Committee.
These
committees
oversee
the
sustainability
strategy
and
ensure
that
stakeholder
concerns
regarding
sustainability
impacts
are
incorporated
into
the
Group’s decision
-making processes.
The Board
of Directors (BoD) is
informed about
the interests
and views of stakeholders
through the
presentation of
the results
of the
DMA, which includes
an evaluation
of the
impacts identified by
both internal
and external stakeholders. The
BoD is regularly updated on the progress
and outcomes, ensuring that stakeholder
feedback
is integrated into the Group’s
strategy and operations.
1.4.4
Material impacts, risks and opportunities and their interaction
with strategy and business model [SBM-3]
The Group
has conducted a comprehensive
materiality assessment
to identify its material
impacts, risks, and opportunities
in relation to sustainability. This process allows the Group to prioritise the sustainability
factors most pertinent to its
strategy,
business
model,
and
resource
allocation.
By
identifying
and
assessing
these
key
factors,
the
Group
ensures
that
its
sustainability initiatives are aligned with regulatory
standards and long-term business objectives. The
business model of the
Group
is primarily
focused
on delivering
financial services
to individual,
corporate,
and institutional
clients. Therefore,
the
material
impacts,
risks,
and
opportunities
identified
are
concentrated
in
the
provision
of
such
services.
The
table
below
outlines the outcomes
of the Group's impact materiality
assessment, presenting the identified material
impacts:
Sustainability matter
Description
Positive/
Negative
Type of
Impact
Location in
the value
chain
Time-
horizon
E1 Climate change -
Energy
Organisation implements measures to reduce energy
consumption, leading to enhanced efficiency in
operations.
Positive
Actual
Own
operations
Mid-term
E1 Climate change –
Energy
Organisation contributes to climate change through its
in-house operations that contribute to the
release of
emissions.
Negative
Actual
Own
operations
Short-term
S1 Own workforce -
Equal Treatment and
Opportunities for All
Organisation puts into action internal management
systems and initiatives that improve employees’
ability
to live free from gender / sexual / ethnic / racial
discrimination and ageism.
Positive
Actual
Own
operations
Short-term
S1 Own workforce -
Equal Treatment and
Opportunities for All
Organisation’s lack of established policies, measures
and actions increases the risk of discrimination incidents
within its operations, potentially impacting the
well-
being and morale of employees.
Negative
Potential
Own
operations
Short-term
S1 Own workforce –
Other work-related
rights
Organisation supports employees’ well-being through
providing satisfying and high-quality working
conditions, including adequate workspace and respect
of privacy.
Positive
Actual
Own
operations
Short-term
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Sustainability matter
Description
Positive/
Negative
Type of
Impact
Location in
the value
chain
Time-
horizon
G1 Business Conduct –
Corporate culture
Organisation achieves positive impacts by
implementing operational practices
and initiatives that
improve stakeholders’
ability to benefit from effective,
accountable, and inclusive institutions, thereby
promoting business ethics and integrity.
Positive
Actual
Own
operations,
Upstream,
Downstream
Short-term
G1 Business Conduct –
Corruption and
bribery
Organisation’s commitment to corporate
integrity is
strengthened through the
implementation of robust
anti-corruption and anti-bribery policies, promoting
a
culture of transparency and ethical behaviour.
Positive
Actual
Own
operations
Long-term
G1 Business Conduct –
Corruption and
bribery
Corruption-related incidents can result in operational
disruptions, redirecting resources towards crisis
management and adversely affecting the
Organisation’s day-to-day business activities.
Negative
Potential
Own
operations
Mid-term
G1 Business Conduct –
Protection of
whistleblowers
Organisation’s commitment to whistleblower
protection
positively impacts society, employees, customers,
and
shareholders, setting a precedent for ethical
behaviour
and fostering a secure environment where
misconduct is
timely identified and stopped.
Positive
Actual
Own
operations
Short-term
Data security and
customer privacy
Organisation implements internal management systems
and initiatives that protect stakeholders'
data privacy.
Positive
Actual
Own
operations,
Downstream
Mid-term
Data security and
customer privacy
Organisation’s improper
implementation of established
cybersecurity systems and processes results in incidents
of data breach and leaks of personal data.
Negative
Potential
Own
operations,
Downstream
Mid-term
E1 Climate change –
Climate change
adaptation
Organisation actively contributes to GHG reduction
ambitions and targets, set by the EU, regulations,
central governments,
and other bodies, through its
sustainable financings and integration of climate risk in
the risk management framework.
Positive
Actual
Own
operations,
Downstream
Long-term
E1 Climate change –
Climate change
adaptation
Organisation’s business strategy may encompass the
continuation of financing to carbon-intensive sectors.
Negative
Potential
Own
operations,
Downstream
Long-term
E1 Climate change –
Climate change
mitigation
Organisation implements a robust climate change
mitigation strategy aiming to minimise the
consequences of climate change for its portfolio.
Positive
Actual
Own
operations,
Downstream
Long-term
E1 Climate change –
Climate change
mitigation
Organisation’s portfolio
faces negative impacts due to
the absence of a climate change mitigation strategy.
Negative
Potential
Own
operations,
Downstream
Long-term
S4 Consumers and
end-users -
Information-related
Impacts for
Consumers and/or
End-users
Organisation provides to clients access to accurate,
relevant and high-quality secured information, fostering
transparency and promoting the
principles of
responsible banking.
Positive
Actual
Downstream
Short-term
Sustainable financing
and investment
offerings
Organisation provides sustainable finance products and
services that promote green
and social investments and
incentivise improvement of its clients’ ESG performance.
Positive
Actual
Downstream
Long-term
Integration of
Sustainability in risk
management
The ESG / climate risk assessment may require
additional effort by the
clients in order to provide
required ESG data and may result in additional
conditions to comply with for financial agreements.
Negative
Potential
Downstream
Mid-term
In the fiscal year 2024, Eurobank has not provided specific financial figures regarding the
current financial effects of material
risks and opportunities. The Bank has opted for
a phased-in approach to report these
anticipated financial effects,
aligning
with the initial reporting period
requirements under
the European Sustainability Reporting Standards
(ESRS).
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The
table below
outlines the
outcomes of
the
Group's
financial materiality
assessment,
presenting the
identified risks
and
opportunities:
Sustainability matter
Description
Risk/
Opportunity
Location in
the value
chain
Expected time
horizons for
anticipated
financial effects
S1 Own workforce
-
Working conditions
Demonstrating commitment to exemplary working
condition expectations, such as offering adequate
compensation, promoting work-life balance,
and
ensuring workplace safety, can attract
and retain
employees.
Opportunity
Own
operations
Short-term
S1 Own workforce
-
Working conditions
Non-compliance with the modern workplace
expectations such as good working conditions, adequate
salaries, and workplace safety, can affect
employees'
motivation and performance,
leading to decreased
productivity.
Risk
Own
operations
Short-term
Fostering Innovation
Meeting evolving customer expectations and modern
lifestyle needs through utilising digital tools and
innovative services can improve
customer engagement.
Opportunity
Own
operations
Short-term
Fostering Innovation
Rapid technologic development in the banking sector
may pose competitive threats and risks if the
Organisation fails to adapt and innovate at the same
pace.
Risk
Own
operations
Mid-term
Data security and
customer privacy
Growing cybersecurity threats and cyber-attacks
targeting financial institutions, and their customer data
may compromise the Organisation’s
systems, networks
and sensitive information, leading to operational
disruptions and reputational harm.
Risk
Own
operations,
Downstream
Mid-term
E1 Climate change –
Climate change
adaptation/mitigation
Meeting climate objectives linked to legal, regulatory and
other stakeholders’
requirements for the Organisation’s
clients, entails the opportunity for the Organisation
to
finance the transition of its clientele.
Opportunity
Own
operations,
Downstream
Long-term
E1 Climate change –
Climate change
adaptation/mitigation
The actions required by the
Organisation’s clients to
address climate change mitigation and adaptation
requirements relating to impacts deriving from climate
change may impact the Organisation’s credit risk.
Risk
Own
operations,
Downstream
Long-term
E4
Biodiversity and
ecosystem - Direct impact
drivers of biodiversity loss
Biodiversity loss due to clients’ operations
may lead to
financial and reputational damage.
Risk
Downstream
Long-term
Sustainable financing and
investment offerings
Promoting green and social investments in line with
requirements to support climate transition and in
response to changing consumer preferences
enhances
the Organisation’s brand
reputation, attracting
sustainability conscious investors.
Opportunity
Own
operations,
Downstream
Long-term
Sustainable financing and
investment offerings
Evolving market preferences
and regulatory shifts may
impact the demand for sustainable finance, posing risks
to the Organisation’s existing product offerings.
Risk
Own
operations,
Downstream
Long-term
Integration of
Sustainability in risk
management
Integrating ESG in risk management in response to
evolving regulatory requirements
and business needs
improves the
Organisation’s resilience to sustainability-
related risks, safeguarding the Organisation
against
potential financial losses, strengthening its overall
risk
management framework.
Opportunity
Own
operations,
Downstream
Mid-term
Integration of
Sustainability in risk
management
Client hesitance or inability to meet sustainability
requirements may impact the Organisation’s
market
perception, potentially affecting
its competitive position
and leading to additional risks.
Risk
Own
operations,
Downstream
Mid-term
Financial inclusion
Contributing to financial inclusion aligns with social
impact goals, positively impacting brand reputation and
offering financing to underserved populations,
such as
students and geographically isolated communities.
Opportunity
Downstream
Mid-term
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Double materiality matrix:
1.5
Materiality analysis and results according to the
concept of Double Materiality
1.5.1
Description of the processes
to identify and assess material impacts, risks and opportunities [IRO-1]
Materiality assessment
is conducted
through
a comprehensive
process
that aims
to identify,
assess, prioritise
and monitor
both potential and
actual impacts on people
and the environment,
as well as risks
and opportunities that
may in turn have
a financial effect on the
organisation.
Phase 1 – Understanding of the business, value chain & related
activities
The first
step is to understand
Group’s
key business segments
and partners influenced
by and influencing those
operations.
Credit institutions are complex
entities that engage in
a wide range of
activities, varying significantly in
both scale and scope.
To effectively
evaluate these activities and include them within the context of DMA, value
chain boundaries were established.
Boundaries are applied to
the Upstream side of value
chain, that are limited to
direct Suppliers, as well as
to the downstream
side which includes
the Group’s customers. The focus areas for the materiality assessment are identified
and prioritised based
on the
potential significant
IROs. Business
activities and partners
are categorized
based on their
role
in the
value chain by
identifying whether they
operate upstream,
downstream, or within own operations.
The significant
activities across
Eurobank’s
value chain have
been systematically
mapped to relevant
ESRS Sectors as
part
of
an
extensive
value
chain
analysis.
This
mapping
encompassed
both
upstream
and
downstream
activities,
along
with
Eurobank's
own
operations,
while
carefully
considering
the
interconnections
between
ESRS,
rating
agencies
and
industry
specific standards. For this purpose, the
methodologies established by the
SASB Materiality Map and the MSCI ESG Industry
Materiality Map are utilised as
foundational tools to identify Sustainability issues. Expert judgment is
applied throughout this
process to ensure that the mappings are accurate and relevant. In the identification of potentially material sub-topics a peer
analysis of
major Greek
systemic banks
and foreign
banks operating
predominantly
within the
EU was
also incorporated.
The Risk
Identification and
Materiality Assessment
(RIMA) Framework
was also utilised in the
overall
process. RIMA
enables
Eurobank to systematically
build its risk inventory by identifying and evaluating both
current and potential risks.
Phase 2 – Stakeholder engagement and identification
of IROs
The materiality
assessment process,
in the second phase,
included comprehensive
consultation with affected
stakeholders
to understand how they may be impacted by the
organisation's activities. Stakeholders’
engagement is an integral part of
the
materiality assessment
process.
The
affected
stakeholders’
engagement is
central
to the
materiality assessment
and
therefore
it is critical to gather
and assess diverse stakeholder
perspectives to build a
balanced and comprehensive
set of
impacts, risks, and
opportunities (IROs).
Eurobank recognises
the importance
of a due
diligence processes
and thus plans
to develop such processes
and utilise its outcomes to inform
the materiality
assessment in the
future. Through
stakeholder
engagement, a wide range of diverse perspectives is gathered to identify and assess the full spectrum of impacts, risks, and
opportunities
(IROs).
Eurobank
considered
its stakeholder
groups
as well
as the
ESG
experts
and classified
them
in
the
following 3 categories:
i.
Primary/Affected stakeholders,
ii.
Secondary stakeholders,
iii.
ESG Experts
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The stakeholder engagement for impact materiality involved identifying and categorizing
stakeholders into two main
groups:
Internal
Stakeholders
(Board
of
Directors,
Senior
Management,
and
Employees)
and
External
Stakeholders
(Business
Community, Civil
Society, Customers
and Clients, Suppliers
and Partners,
Investors and Shareholders,
and Government
and
Regulators). To engage
these diverse
groups, electronic questionnaires
were circulated
via an online platform.
In the context of impact materiality ("inside-out" perspective) causal links between Eurobank’s
and its value chain’s practices
and their impacts on the environment
and society were assessed. First, the topics are contextualized to explain why they
are
relevant
to Eurobank
and its
value chain
from
an impact
perspective.
For
this purpose,
Eurobank
considers its
value chain
activities, prior
year
reporting,
as well
as other
sources
(e.g. peers,
indices).
Then,
for
those that
are
deemed
relevant,
the
impacts on society or the environment
are described. Finally, the
impacts are classified as:
●
actual or potential,
●
negative or positive impacts on people
or the environment,
●
over the
short, medium and long-term time horizon.
Impacts arising from Eurobank's operations
are considered negative, without factoring in the
potential effectiveness
of any
mitigation measures that
may be implemented.
Regarding financial materiality Eurobank engaged with internal stakeholders, who are representative of the whole Eurobank,
to assess
risks and
opportunities.
The
primary method
for
stakeholder
engagement was
through
dedicated
focus
groups,
designed
to
evaluate
the
potential
risks
and
opportunities
associated
with
sustainability.
Sustainability
risks
and
opportunities were
assessed based
on their
likelihood of
occurrence
and the
potential magnitude
of their
financial effects
over the
short, medium, and long term time horizons.
Risks and opportunities are associated with financial materiality ("outside-in"). First, the
topics are contextualized to explain
why
they
are
relevant
to
Eurobank
and
its
value
chain
from
a
financial
perspective
(i.e.
from
a
risk
and/or
opportunity
perspective).
For
this purpose,
the
identification
of impacts
was utilised
as a
starting point,
since the
financial materiality
assessment benefits from
the outcome
of the impact materiality
assessment. Eurobank
considered its value chain
activities,
prior year sustainability reporting
(e.g. Pillar 3, UNEP
FI), as well as other
sources (e.g. peers,
MSCI, etc.). Then,
for those that
are deemed
relevant, the
risks and/or
opportunities are
described in
the short,
medium, and
long-term time
horizon in line
with ESRS
definition. The
analysis is
risk-based and
hence
opportunities are
identified only
when there
is a direct
business
opportunity
linked
to
a
subject
that
does
not
result
from
mitigating
a
risk.
To
align
-to
the
extent
this
is
feasible-
this
identification process with Eurobank’s
existing risk management, the input of RIMA process is utilised. Moreover, the draft list
of ROs was subject to multiple iterations through discussions with
key internal stakeholders
involved in the broader
financial
risks and opportunities identification process
in Eurobank.
Phase 3 – Assessment of IROs
After
having identified
IROs, both
an impact
and a
financial materiality
assessment
takes
place
in the
third
phase of
the
process,
whereby
each of the
impacts, risks and
opportunities are
scored on
predefined scales
for severity,
magnitude and
likelihood, as appropriate.
A sustainability matter is
material from
an impact perspective
when it pertains to
the Group’s
material, actual or potential,
positive or
negative impacts
on people or
the environment
(environmental,
social and governance
matters) over
the short,
medium and long-term time horizons. It includes impacts
connected to Eurobank’s own operations and value chain, including
through its products and services,
as well as through its business relationships.
Impacts are assessed based on the following
criteria:
●
Severity
, which is composed of 3 elements:
o
Scale
: how grave the
negative impact is or how beneficial the
positive impact is for people or the
environment.
o
Scope
: how
widespread the
negative
or positive
impacts
are.
In the
case of
environmental
impacts, the
scope
may be understood as the
extent of environmental
damage or a geographical
perimeter.
In the case
of impacts
on people, the scope may be understood as the
number of people adversely affected;
and
o
Irremediable character
: whether and to what extent the negative impacts could be remediated, i.e., restoring the
environment or affected
people to their prior state.
●
Likelihood
The significance of positive impacts is assessed by stakeholders,
by considering the scale and scope of impacts, whereas the
severity of negative
impacts was assessed by considering their
scale, scope and irremediable
character.
For the
assessment
of
potential
impacts,
the
likelihood
factor
is
also
considered.
The
qualitative
thresholds
for
impact
assessment
were
established by applying experts’
judgment, in addition to
the application
of quantitative
thresholds. Consequently,
impacts
(positive and/or negative) with
an impact materiality score exceeding these
thresholds were
classified as material.
The financial materiality assessment
corresponds to the identification
of information that
is considered material for
primary
users
of
general-purpose
financial
reports
in
making
decisions
relating
to
providing
resources
to
the
entity.
Risk
and
Opportunities
are
assessed
based
on
severity
and
likelihood.
Similarly
to
the
impact
materiality
assessment,
Eurobank
developed
a scoring mechanism
by applying
thresholds
as cut-off
points. Eurobank
performed
the assessment
of risks and
opportunities, by
engaging internal
stakeholders
through
workshops
with
experts
from
Eurobank’s
key
business units.
The
outcome of stakeholder engagement
was a list of scored risks and opportunities.
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Phase 4 – Materiality overview
In the
final step of
the process,
the Group
undertakes
a comprehensive
analysis of the
collected data,
prioritising impacts,
risks
and
opportunities
(IROs)
based
on
the
scores
obtained
through
structured
questionnaires
(Impact
Materiality
assessment)
and
targeted
focus
group
(Financial
Materiality
assessment).
Applying
these
scoring
mechanisms
allows
to
further separate
material and non-material impacts, risks and opportunities (IROs) and topics. A topic is material if it scores
‘high’ from an impact (positive, negative and/or both) and/or financial perspective (risk, opportunity and/or
both). Materiality
thresholds classify topics
as material in
terms of impact
materiality, financial materiality or in
case of both,
double materiality.
The
IROs assessed
to be
material
are then
grouped
and mapped
to a
topic/sub-topic in
order
to report
according to
the
corresponding Disclosure Requirements
of the relevant topic. The SMC approves
the proposed contents of the Sustainability
Statement that derive
from the results
of the DMA.
Strategic implication
The
DMA
strengthens
the
Group’s
commitment
to
responsible
risk
management,
fostering
robust
corporate
governance
practices while advancing sustainability goals. The
DMA process enables Eurobank
to effectively manage and leverage
risks
and opportunities
in a
way that
not only
supports its
financial
performance
but also
contributes to
positive
societal
and
environmental impacts.
Risk management is a key component of the Group's operations to achieve its strategic and business objectives. As such, the
Group has put in
place effective mechanisms to identify, monitor, and assess risks
promptly, evaluating their potential impact
on the
attainment
of corporate
objectives.
The
Risk Identification
and Materiality
Assessment (RIMA)
process
at Eurobank
plays a crucial role in managing
effectively risks preventing significant impacts on the Group's financial performance, capital,
liquidity,
and
business
objectives.
This
proactive
approach
helps
identify
emerging
risks,
especially
those
related
to
the
interconnected
nature
of sustainability
risks, which
are
integrated
into the
Group's
broader
risk management
framework.
Given the increasing recognition of both financial and non-financial impacts, Eurobank
takes a holistic approach to manage
sustainability risks, aligning these considerations
with other
risk types
within the organisation.
Eurobank also places a strong emphasis on managing social risks as part of its sustainable business strategy. The Group
has
adjusted
its
business
model,
strategy
and
processes,
as
well
as
its
financial
planning,
to
address
these
risks
effectively.
Additionally,
Eurobank
continuously assesses
its exposure
to governance
risks, recognising
that poor
governance
practices
by clients can
adversely
affect its
own operations.
To
mitigate this,
Eurobank
has implemented
robust internal
governance
arrangements and processes
that allow for effective
evaluation of governance
risks, both within its own operations and with
respect to its clients' governance performance.
This strategic focus
on sustainability not only helps Eurobank remain resilient
and
adaptable
in
a
fast-changing
business
environment
but
also
recognises
the
importance
of
identifying
material
opportunities as a crucial source of innovation and value
creation.
Eurobank
performed
its
DMA
in
accordance
with
the
European
Sustainability
Reporting
Standards
(ESRS)
as
an
early
adoption in 2023.
The corresponding
disclosures have
been included in
the 2023
Annual Report –
Business & Sustainability
(Sustainability Report)
. Eurobank
identified, assessed,
prioritised and
validated the
sustainability impacts
arising from
its
activities and assessed risks and opportunities that may have material
financial influence on Eurobank,
throughout its value
chain.
For
the
current
reporting
year,
the
Group
continues
to
adhere
to
ESRS,
ensuring
alignment
with
all
applicable
regulatory requirements.
For
more information
regarding
the
internal control
procedures
for
the identification
and assessment
of material
impacts,
risks,
and
opportunities,
please
refer
to:
1.3.2
Information
provided
to
and
sustainability
matters
addressed
by
the
undertaking's administrative,
management and supervisory bodies [GOV
-2].
1.5.2
Disclosure requirements in ESRS
covered by the
undertaking’s sustainability statement [IRO-2]
Through the DMA process,
Eurobank has determined that the
following topics are not material to Eurobank’s operations
and
value chain: ESRS E2 - Pollution,
E3 - Water
and Marine Resources, E5 - Resource
Use and Circular Economy,
S2 - Workers
in
the Value
Chain, and S3 -
Affected Communities.
This conclusion
reflects Eurobank’s
commitment to focusing
on areas with
the greatest impact and relevance
to its stakeholders and business.
The
table
below
presents
the
progress
made
on
implementing
the
provisions
of
the
European
Sustainability
Reporting
Standards:
Nr.
Description
Reference
Explanation
ESRS 2: General disclosures
BP-1
General basis for preparation
of the sustainability
statement
1.1 Basis for
Preparation
BP-2
Disclosures in relation to specific circumstances
1.2 Disclosures in relation to specific
circumstances
GOV-1
The role of the
administrative, management and
supervisory bodies
1.3.1 The
role of the administrative,
management and supervisory
bodies
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Explanation
GOV-2
Information provided
to and sustainability matters
addressed by the undertaking’s administrative,
management and supervisory bodies
1.3.2 Information provided to and
sustainability matters addressed by
the undertaking's administrative,
management and supervisory
bodies
GOV-3
Integration of sustainability-related performance
in
incentive schemes
1.3.3 Integration of sustainability-
related performance
in incentive
schemes [GOV-3]
GOV-4
Statement on due diligence
1.3.4 Description of the due diligence
on sustainability matters [GOV-4]
GOV-5
Risk management and internal controls over
sustainability reporting
1.3.5 Risk management and internal
controls over
sustainability
reporting [GOV-5]
SBM-1
Strategy, business model and value chain
1.4.1 Information
on the market
position and strategy of the
company [SBM-1]
SBM-2
Interests and views of stakeholders
1.4.3 Stakeholder interest and
engagement [SBM-2]
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy
and business model
1.4.4 Material impacts, risks and
opportunities and their interaction
with strategy and business model
[SBM-3]
Omission of anticipated financial
effects for the
first year of
preparation
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
1.5.1 Description of the
processes to
identify and assess material
impacts, risks and opportunities
[IRO-1]
IRO-2
Disclosure requirements in ESRS covered
by the
undertaking’s sustainability statement
1.5.2 Disclosure requirements in
ESRS covered by the
undertaking’s
sustainability statement [IRO-2]
MDR-P
Policies adopted to manage material sustainability
matters
Policies analyzed per respective
topic
MDR-A
Actions and resources in relation to material
sustainability matters
Actions analyzed per respective
topic
MDR-M
Metrics in relation to material sustainability matters
Metrics analyzed per respective
topic
MDR-T
Tracking effectiveness
of policies and actions through
targets
Targets analyzed per
respective
topic
ESRS E1: Climate change
GOV-3
Integration of sustainability-related performance
in
incentive schemes
Integration of sustainability-related
performance in incentive schemes
[ESRS 2 GOV-3]
E1-1
Transition plan for
climate change mitigation
Transition plan for
climate change
mitigation [E1-1]
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy
and business model
Material impacts, risks and
opportunities and their interaction
with strategy and business model
[ESRS 2 SBM-3]
IRO-1
Description of the processes to identify and assess
material climate-related impacts, risks and
opportunities
Description of the processes to
identify and assess material
climate-related impacts, risks and
opportunities [ESRS 2 IRO-1]
E1-2
Policies related to climate change mitigation and
adaptation
Policies related to climate change
mitigation and adaptation [E1-2]
E1-3
Actions and resources in relation to climate change
policies
Actions and resources in relation to
climate change policies [E1-3]
E1-4
Targets
related to climate change mitigation and
adaptation
Targets
related to climate change
mitigation and adaptation [E1-4]
E1-5
Energy consumption and mix
Energy consumption & mix [E1-5]
E1-6
Gross Scopes 1, 2, 3 and Total GHG emissions
GHG Intensity based on net revenue
Gross Scopes 1, 2, 3 and Total GHG
emissions [E1-6]
E1-7
GHG removals and GHG mitigation projects financed
through carbon credits
GHG removals and GHG mitigation
projects financed through carbon
credits [E1-7]
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Explanation
E1-8
Internal carbon pricing
Not applicable
E1-9
Anticipated financial effects from material physical
and
transition risks and potential climate-related
opportunities
Phased-in provision
Omission of all information under
this sub-topic for the first year of
preparation
ESRS E4: Biodiversity and ecosystems
E4-1
Transition plan and consideration
of biodiversity and
ecosystems in strategy and business model
Information is disclosed in a manner that reflects the
application of
biodiversity matters for
the financial services sector.
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy
and business model
IRO-1
Description of processes to identify and assess material
biodiversity and ecosystem-related impacts, risks,
dependencies and opportunities
E4-2
Policies related to biodiversity
and ecosystems
E4-3
Actions and resources related to biodiversity
and
ecosystems
E4-4
Targets
related to biodiversity and ecosystems
E4-5
Impact metrics related to biodiversity and ecosystems
change
E4-6
Anticipated financial effects from biodiversity
and
ecosystem-related risks and opportunities
ESRS S1: Own Workforce
SBM-2
Interests and views of stakeholders
Stakeholder interest and
engagement [SBM-2]
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy
and business model
Material impacts, risks and
opportunities and their interaction
with strategy and business model
[ESRS 2 SBM-3]
S1-1
Policies related to own workforce
Policies related to own workforce
[S1-1]
S1-2
Processes for engaging with own workforce
and
workers’ representatives
about impacts
Processes for engaging with own
workforce and workers’
representatives about impacts [S1-
2]
S1-3
Processes to remediate negative
impacts and channels
for own workers
to raise concerns
Processes to remediate negative
impacts and channels for own
workforce to raise
concerns [S1-3]
S1-4
Taking action on material
impacts on own workforce,
and approaches to managing material risks and
pursuing material opportunities related to own
workforce, and effectiveness
of those actions
Action on material impacts on own
workforce, and approaches
to
managing material risks and
pursuing material opportunities
related to own workforce,
and
effectiveness of those actions [S1-4]
S1-5
Targets
related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities
Targets
related to managing
material negative impacts,
advancing positive impacts, and
managing material risks and
opportunities [S1-5]
S1-6
Characteristics of the undertaking’s employees
Characteristics of employees [S1-6]
S1-7
Characteristics of non-employee workers
in the
undertaking’s own workforce
Phased-in provision
Omission of all information under
this sub-topic for the first year of
preparation
S1-8
Collective bargaining coverage
and social dialogue
Phased-in provision
Omission of information about
own employees in non-EEA
countries for the first year of
preparation
S1-9
Diversity metrics
Diversity Metrics [S1-9]
S1-10
Adequate wages
Adequate Wages [S1-10]
S1-11
Social protection
Phased-in provision
Omission of all information under
this sub-topic for the first year of
preparation
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S1-12
Persons with disabilities
Phased-in provision
Omission of all information under
this sub-topic for the first year of
preparation
S1-13
Training and skills development metrics
Training and skills development
metrics [S1-13]
Omission of all information under
this sub-topic for the first year of
preparation
S1-14
Health and safety metrics
Health and safety metrics [S1-14]
Omission of the data points on
cases of work-related ill-health
and on number of days lost to
injuries, accidents, fatalities and
work-related ill health and
reporting on non-employees for
the first year of preparation
of its
sustainability statement
S1-15
Work-life balance metrics
Training and skills development
metrics [S1-15]
Omission of
information under
this sub-topic for the first year of
preparation
S1-16
Remuneration metrics (pay gap and total
remuneration)
Remuneration metrics (pay gap and
total remuneration)
[S1-16]
S1-17
Incidents, complaints and severe human rights impacts
Incidents, complaints and severe
human right [S1-17]
ESRS S-4: Consumers and end-users
SBM-2
Interests and views of stakeholders
Stakeholder interest and
engagement [SBM-2]
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy
and business model
Material impacts, risks and
opportunities and their interaction
with strategy and business model
[ESRS 2 SBM-3]
S4-1
Policies related to consumers and end-users
Policies related to consumers and
end-users [S4-1]
S4-2
Processes for engaging with consumers
and end-users
about impacts
Processes for engaging with
consumers and end-users about
impacts [S4-2]
S4-3
Processes to remediate negative
impacts and channels
for consumers and end-users to raise concerns
Processes to remediate negative
impacts and channels for consumers
and end-users to raise concerns [S4-
3]
S4-4
Taking action on material
impacts on consumers and
end-users, and approaches to managing material risks
and pursuing material opportunities related to
consumers and end-users, and effectiveness
of those
actions
Taking action on material
impacts
on consumers and end-users, and
approaches to managing material
risks, pursuing material
opportunities related to consumers
and end-users, and effectiveness of
those actions [S4-4]
S4-5
Targets
related to managing material negative
impacts, advancing positive impacts, and managing
material risks and opportunities
Targets
related to managing
material negative impacts,
advancing positive impacts, and
managing material risks and
opportunities [S4-5]
ESRS G1: Business conduct
GOV-1
The role of the
administrative, management and
supervisory bodies
The role of the
administrative,
management and supervisory
bodies [ESRS 2 GOV-1]
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
Description of the processes to
identify and assess material
impacts, risks and opportunities
[ESRS 2 IRO-1]
G1-1
Business conduct policies and corporate culture
Business conduct policies and
corporate culture [G1-1]
G1-2
Management of relationships with suppliers
Not material
G1-3
Prevention and detection of corruption
and bribery
Prevention and detection of
corruption and bribery [G1-3]
G1-4
Incidents of corruption or bribery
Incidents of corruption or bribery
[G1-4]
G1-5
Political influence and lobbying activities
Not material
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G1-6
Payment practices
Not material
Entity-specific: Integration of sustainability in risk management
GOV-1
The role of the
administrative, management and
supervisory bodies
The role of the
administrative,
management and supervisory
bodies [ESRS 2 GOV-1]
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy
and business model
Material impacts, risks and
opportunities and their interaction
with strategy and business model
[ESRS 2 SBM-3]
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
Description of processes to identify
and assess material impacts, risks
and opportunities [ESRS 2 IRO-1]
MDR-P
Policies adopted to manage material sustainability
matters
Policies related to the integration
of
sustainability in risk management
[MDR-P]
MDR-A
Actions and resources in relation to material
sustainability matters
Actions related to the integration
of
sustainability in risk management
[MDR-A]
MDR-M
Metrics in relation to material sustainability matters
Sustainability risk management
metrics [MDR-M]
MDR-T
Tracking effectiveness
of policies and actions through
targets
Sustainability risk management
targets [MDR-T]
Entity-specific: Sustainable financing and investment offerings
GOV-1
The role of the
administrative, management and
supervisory bodies
The role of the
administrative,
management and supervisory
bodies [ESRS 2 GOV-1]
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy
and business model
Material impacts, risks and
opportunities and their interaction
with strategy and business model
[ESRS 2 SBM-3]
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
Description of processes to identify
and assess material impacts, risks
and opportunities [ESRS 2 IRO-1]
MDR-P
Policies adopted to manage material sustainability
matters
Policies on sustainable financing
and investment offerings
[MDR-P]
MDR-A
Actions and resources in relation to material
sustainability matters
Actions on sustainable financing
and investment offerings
[MDR-A]
MDR-M
Metrics in relation to material sustainability matters
Metrics on sustainable financing
and investment offerings
[MDR-M]
MDR-T
Tracking effectiveness
of policies and actions through
targets
Targets on
sustainable financing
and investment offerings
[MDR-T]
Entity-specific: Fostering innovation
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy
and business model
Description of material impacts,
risks and opportunities and their
interaction with strategy
and
business model [SBM-3]
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
Description of processes to identify
and assess material impacts, risks
and opportunities [ESRS 2 IRO-1]
MDR-P
Policies adopted to manage material sustainability
matters
Policies related to fostering
innovation [MDR-P]
MDR-A
Actions and resources in relation to material
sustainability matters
Actions related to fostering
innovation [MDR-A]
MDR-M
Metrics in relation to material sustainability matters
Fostering Innovation
metrics [MDR-
M]
MDR-T
Tracking effectiveness
of policies and actions through
targets
Fostering innovation
targets [MDR-
T]
Entity-specific: Financial inclusion
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy
and business model
Description of material impacts,
risks and opportunities and their
interaction with strategy
and
business model [SBM-3]
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Explanation
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
Description of processes to identify
and assess material impacts, risks
and opportunities [ESRS 2 IRO-1]
MDR-P
Policies adopted to manage material sustainability
matters
Policies related to financial inclusion
[MDR-P]
MDR-A
Actions and resources in relation to material
sustainability matters
Actions related to financial inclusion
[MDR-A]
MDR-M
Metrics in relation to material sustainability matters
Financial inclusion metrics [MDR-M]
MDR-T
Tracking effectiveness
of policies and actions through
targets
Financial inclusion targets [MDR-T]
Entity-specific: Data security and customer privacy
GOV-1
The role of the
administrative, management and
supervisory bodies
The role of the
administrative,
management and supervisory
bodies [ESRS 2 GOV-1]
SBM-3
Material impacts, risks and opportunities and their
interaction with strategy
and business model
Description of material impacts,
risks and opportunities and their
interaction with strategy
and
business model [SBM-3]
IRO-1
Description of the processes to identify and assess
material impacts, risks and opportunities
Description of processes to identify
and assess material impacts, risks
and opportunities [ESRS 2 IRO-1]
MDR-P
Policies adopted to manage material sustainability
matters
Policies related to data security and
customer privacy [MDR-P]
MDR-A
Actions and resources in relation to material
sustainability matters
Actions related to data security and
customer privacy [MDR-A]
MDR-M
Metrics in relation to material sustainability matters
Data security and customer privacy
metrics [MDR-M]
MDR-T
Tracking effectiveness
of policies and actions through
targets
Data security and customer privacy
targets [MDR-T]
The table below presents
List of datapoints in cross-cutting and topical standards
that derive from
other EU legislation
:
Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU
Climate
Law
reference
Section
ESRS 2 GOV-1 Board's gender
diversity paragraph
21 (d)
Indicator number 13 of
Table #1 of Annex 1
Commission Delegated
Regulation (EU)
2020/1816, Annex II
The role of the
administrative,
management
and
supervisory
bodies [ESRS 2
GOV-1]
ESRS 2 GOV-1 Percentage of
board members who are
independent paragraph 21 (e)
Delegated Regulation
(EU) 2020/1816, Annex II
The role of the
administrative,
management
and
supervisory
bodies [ESRS 2
GOV-1]
ESRS 2 GOV-4 Statement on
due diligence paragraph 30
Indicator number 10
Table #3 of Annex 1
1.3.4
Description of
the due
diligence on
sustainability
matters [GOV-
4]
ESRS 2 SBM-1 Involvement in
activities related to fossil fuel
activities paragraph 40 (d) i
"Indicators number 4
Table #1 of Annex 1
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453 ( 28 )
Table 1:
Qualitative
information on
Environmental
risk and Table 2:
Delegated Regulation
(EU) 2020/1816, Annex II
1.4.1
Information on
the market
position and
strategy of the
company
[SBM-1]
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Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU
Climate
Law
reference
Section
Qualitative
information on
Social risk
ESRS 2 SBM-1 Involvement in
activities related to chemical
production paragraph
40 (d) ii
Indicator number 9 Table
#2 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II
1.4.1
Information on
the market
position and
strategy of the
company
[SBM-1]
ESRS 2 SBM-1 Involvement in
activities related to
controversial weapons
paragraph 40 (d) iii
Indicator number 14
Table #1 of Annex 1
Delegated Regulation
(EU) 2020/1818, Article
12(1) Delegated
Regulation (EU)
2020/1816, Annex II
1.4.1
Information on
the market
position and
strategy of the
company
[SBM-1]
ESRS 2 SBM-1 Involvement in
activities related to cultivation
and production of tobacco
paragraph 40 (d) iv
Delegated Regulation
(EU) 2020/1818, Article
12(1) Delegated
Regulation (EU)
2020/1816, Annex II
1.4.1
Information on
the market
position and
strategy of the
company
[SBM-1]
ESRS E1-1 Transition plan to
reach climate neutrality by
2050 paragraph 14
Regulation
(EU)
2021/1119,
Article 2(1)
Transition plan
for climate
change
mitigation [E1-
1]
ESRS E1-1 Undertakings
excluded from Paris-aligned
Benchmarks paragraph 16 (g)
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Template 1:
Banking book-
Climate Change
transition risk:
Credit quality of
exposures by
sector, emissions
and residual
maturity
Delegated Regulation
(EU) 2020/1818, Article
12.1 (d) to (g), and
Article 12.2
Transition plan
for climate
change
mitigation [E1-
1]
ESRS E1-4 GHG emission
reduction targets paragraph
34
Indicator number 4 Table
#2 of Annex 1
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Template 3:
Banking book –
Climate change
transition risk:
alignment
metrics
Delegated Regulation
(EU) 2020/1818, Article 6
Targets
related to
climate
change
mitigation and
adaptation
[E1-4]
ESRS E1-5 Energy consumption
from fossil sources
disaggregated by sources (only
high climate impact sectors)
paragraph 38
Indicator number 5 Table
#1 and Indicator n. 5
Table #2 of Annex 1
Energy
consumption
& mix [E1-5]
ESRS E1-5 Energy consumption
and mix paragraph 37
Indicator number 5 Table
#1 of Annex 1
Energy
consumption
& mix [E1-5]
ESRS E1-5 Energy intensity
associated with activities in
high climate impact sectors
paragraphs 40 to 43
Indicator number 6 Table
#1 of Annex 1
Energy
consumption
& mix [E1-5]
ESRS E1-6 Gross Scope 1, 2, 3,
and Total GHG emissions
paragraph 44
Indicators number 1 and
2 Table #1 of Annex 1
Article 449a;
Regulation (EU)
No 575/2013;
Commission
Implementing
Delegated Regulation
(EU) 2020/1818, Article
5(1), 6 and 8(1)
Gross Scopes
1, 2, 3 and
Total GHG
emissions [E1-
6]
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Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU
Climate
Law
reference
Section
Regulation (EU)
2022/2453
Template 1:
Banking book –
Climate change
transition risk:
Credit quality of
exposures by
sector, emissions
and residual
maturity
ESRS E1-6 Gross GHG
emissions intensity paragraphs
53 to 55
Indicators number 3
Table #1 of Annex 1
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Template 3:
Banking book –
Climate change
transition risk:
alignment
metrics
Delegated Regulation
(EU) 2020/1818, Article
8(1)
Gross Scopes
1, 2, 3 and
Total GHG
emissions [E1-
6]
ESRS E1-7 GHG removals and
carbon credits paragraph 56
Regulation
(EU)
2021/1119,
Article 2(1)
GHG removals
and GHG
mitigation
projects
financed
through carbon
credits [E1-7]
ESRS E1-9 Exposure of the
benchmark portfolio to
climate-related physical risks
paragraph 66
Delegated Regulation
(EU) 2020/1818, Annex II
Delegated Regulation
(EU) 2020/1816, Annex II
Phased-in
provision
"ESRS E1-9 Disaggregation of
monetary amounts by acute
and chronic physical risk
paragraph 66 (a)
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
paragraphs 46
and 47; Template
5: Banking book -
Climate change
physical risk:
Exposures subject
to physical risk.
Phased-in
provision
ESRS E1-9 Location of
significant assets at material
physical risk paragraph 66 (c)"
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
paragraphs 46
and 47; Template
5: Banking book -
Climate change
physical risk:
Exposures subject
to physical risk.
Phased-in
provision
ESRS E1-9 Breakdown of the
carrying value of its real estate
assets by energy-efficiency
classes paragraph 67 (c)
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
paragraph
34;Template
2:Banking book -
Climate change
transition risk:
Loans
collateralised by
Phased-in
provision
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Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU
Climate
Law
reference
Section
immovable
property - Energy
efficiency of the
collateral
ESRS E1-9 Degree of exposure
of the portfolio
to climate-
related opportunities
paragraph 69
Delegated Regulation
(EU) 2020/1818, Annex II
Phased-in
provision
ESRS E2-4 Amount of each
pollutant listed in Annex II of
the E- PRTR Regulation
(European Pollutant Release
and Transfer
Register) emitted
to air, water and soil,
paragraph 28
Indicator number 8 Table
#1 of Annex 1 Indicator
number 2 Table #2 of
Annex 1 Indicator number
1 Table #2 of Annex 1
Indicator number 3 Table
#2 of Annex 1
Not material
ESRS E3-1 Water and marine
resources paragraph
9
Indicator number 7 Table
#2 of Annex 1
Not material
ESRS E3-1 Dedicated policy
paragraph 13
Indicator number 8 Table
2 of Annex 1
Not material
ESRS E3-1 Sustainable oceans
and seas paragraph 14
Indicator number 12
Table #2 of Annex 1
Not material
ESRS E3-4 Total water recycled
and reused paragraph 28 (c)
Indicator number 6.2
Table #2 of Annex 1
Not material
ESRS E3-4 Total water
consumption in m3 per net
revenue on own operations
paragraph 29
"Indicator number 6.1
Table #2 of
Not material
ESRS 2- IRO 1 - E4 paragraph
16 (a) i
Indicator number 7 Table
#1 of Annex 1
Information is
disclosed in a
manner that
reflects the
application of
biodiversity
matters for
the financial
services
sector.
ESRS 2- IRO 1 - E4 paragraph
16 (b)
Indicator number 10
Table #2 of Annex 1
Information is
disclosed in a
manner that
reflects the
application of
biodiversity
matters for
the financial
services
sector.
ESRS 2- IRO 1 - E4 paragraph
16 (c)
Indicator number 14
Table #2 of Annex 1
Information is
disclosed in a
manner that
reflects the
application of
biodiversity
matters for
the financial
services
sector.
ESRS E4-2 Sustainable land /
agriculture practices or policies
paragraph 24 (b)
Indicator number 11 Table
#2 of Annex 1
Information is
disclosed in a
manner that
reflects the
application of
biodiversity
matters for
the financial
services
sector.
ESRS E4-2 Sustainable oceans
/ seas practices or policies
paragraph 24 (c)
Indicator number 12
Table #2 of Annex 1
Information is
disclosed in a
manner that
reflects the
application of
biodiversity
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Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU
Climate
Law
reference
Section
matters for
the financial
services
sector.
ESRS E4-2 Policies to address
deforestation paragraph
24 (d)
Indicator number 15Table
#2 of Annex 1
Information is
disclosed in a
manner that
reflects the
application of
biodiversity
matters for
the financial
services
sector.
ESRS E5-5 Non-recycled waste
paragraph 37 (d)
Indicator number 13
Table #2 of Annex 1
Not material
ESRS E5-5 Hazardous waste
and radioactive waste
paragraph 39
Indicator number 9 Table
#1 of Annex 1
Not material
ESRS 2- SBM3 - S1 Risk of
incidents of forced labor
paragraph 14 (f)
Indicator number 13
Table #3 of Annex I
Material
impacts, risks
and
opportunities
and their
interaction
with strategy
and business
model [ESRS 2
SBM-3]
ESRS 2- SBM3 - S1 Risk of
incidents of child labor
paragraph 14 (g)
Indicator number 12
Table #3 of Annex I
Material
impacts, risks
and
opportunities
and their
interaction
with strategy
and business
model [ESRS 2
SBM-3]
ESRS S1-1 Human rights policy
commitments paragraph 20
Indicator number 9 Table
#3 and Indicator number
11 Table #1 of Annex I
Policies
related to own
workforce
[S1-
1]
ESRS S1-1 Due diligence
policies on issues addressed by
the fundamental International
Labour Organisation
Conventions 1 to 8, paragraph
21
Delegated Regulation
(EU) 2020/1816, Annex II
Policies
related to own
workforce
[S1-
1]
ESRS S1-1 Processes and
measures for preventing
trafficking in human beings
paragraph 22
Indicator number 1 Table
#3 of Annex I
Policies
related to own
workforce
[S1-
1]
ESRS S1-1 Workplace accident
prevention policy or
management system
paragraph 23
Indicator number 1 Table
#3 of Annex I
Policies
related to own
workforce
[S1-
1]
ESRS S1-3
Grievance/complaints handling
mechanisms paragraph 32 (c)
Indicator number 5 Table
#3 of Annex I
Processes to
remediate
negative
impacts and
channels for
own workforce
to raise
concerns [S1-3]
ESRS S1-14 Number of fatalities
and number and rate of work-
related accidents paragraph
88 (b) and (c)
Indicator number 2 Table
#3 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
Health and
safety metrics
[S1-14]
ESRS S1-14 Number of days lost
to injuries, accidents, fatalities
or illness paragraph 88 (e)
Indicator number 3 Table
#3 of Annex I
Phased-in
provision
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Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU
Climate
Law
reference
Section
ESRS S1-16 Unadjusted gender
pay gap paragraph 97 (a)
Indicator number 12
Table #1 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
Remuneration
metrics (pay
gap and total
remuneration)
[S1-16]
ESRS S1-16 Excessive CEO pay
ratio paragraph
97 (b)
Indicator number 8 Table
#3 of Annex I
Remuneration
metrics (pay
gap and total
remuneration)
[S1-16]
ESRS S1-17 Incidents of
discrimination paragraph 103
(a)
Indicator number 7 Table
#3 of Annex I
Incidents,
complaints
and severe
human right
[S1-17]
ESRS S1-17 Non-respect of
UNGPs on Business and
Human Rights and OECD
paragraph 104 (a)
Indicator number 10
Table #1 and
Delegated Regulation
(EU) 2020/1816, Annex II
Delegated Regulation
(EU) 2020/1818 Art 12 (1)
Incidents,
complaints
and severe
human right
[S1-17]
ESRS 2- SBM3 – S2 Significant
risk of child labour or forced
labour in the value chain
paragraph 11 (b)
Indicators number 12 and
n. 13 Table #3 of Annex I
Not material
ESRS S2-1 Human rights policy
commitments paragraph 17
Indicator number 9 Table
#3 and Indicator n. 11
Table #1 of Annex 1
Not material
ESRS S2-1 Policies related to
value chain workers paragraph
18
Indicator number 11 and
n. 4 Table #3 of Annex 1
Not material
ESRS S2-1 Non- respect of
UNGPs on Business and
Human Rights principles and
OECD guidelines paragraph 19
Indicator number 10
Table #1 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II
Delegated Regulation
(EU) 2020/1818, Art 12
(1)
Not material
ESRS S2-1 Due diligence
policies on issues addressed by
the fundamental International
Labor Organisation
Conventions 1 to 8, paragraph
19
Delegated Regulation
(EU) 2020/1816, Annex II
Not material
ESRS S2-4 Human rights issues
and incidents connected to its
upstream and downstream
value chain paragraph 36
Indicator number 14
Table #3 of Annex 1
Not material
ESRS S3-1 Human rights policy
commitments paragraph 16
Indicator number 9 Table
#3 of Annex 1 and
Indicator number 11 Table
#1 of Annex 1
Not material
ESRS S3-1 non-respect of
UNGPs on Business and
Human Rights, ILO principles or
and OECD guidelines
paragraph 17
Indicator number 10
Table #1 Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II
Delegated Regulation
(EU) 2020/1818, Art 12
(1)
Not material
ESRS S3-4 Human rights issues
and incidents paragraph 36
Indicator number 14
Table #3 of Annex 1
Not material
ESRS S4-1 Policies related to
consumers and end-users
paragraph 16
Indicator number 9 Table
#3 and Indicator number
11 Table #1 of Annex 1
Policies
related to
consumers
and end-users
[S4-1]
ESRS S4-1 Non-respect of
UNGPs on Business and
Human Rights and OECD
guidelines paragraph 17
Indicator number 10
Table #1 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II
Delegated Regulation
(EU) 2020/1818, Art 12
(1)
Policies
related to
consumers
and end-users
[S4-1]
ESRS S4-4 Human rights issues
and incidents paragraph 35
Indicator number 14
Table #3 of Annex 1
Taking action
on material
impacts on
consumers
and end-users,
and
approaches to
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Disclosure Requirement and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark regulation
reference
EU
Climate
Law
reference
Section
managing
material risks,
pursuing
material
opportunities
related to
consumers
and end-users,
and
effectiveness
of those
actions [S4-4]
ESRS G1-1 United Nations
Convention against Corruption
paragraph 10 (b)
Indicator number 15
Table #3 of Annex 1
Business
conduct
policies and
corporate
culture [G1-1]
ESRS G1-1 Protection of
whistle-blowers paragraph
10
(d)
Indicator number 6 Table
#3 of Annex 1
Business
conduct
policies and
corporate
culture [G1-1]
ESRS G1-4 Fines for violation of
anti-corruption and anti-
bribery laws paragraph 24 (a)
Indicator number 17
Table #3 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex
II)
Incidents of
corruption or
bribery [G1-4]
ESRS G1-4 Standards of anti-
corruption and anti-bribery
paragraph 24 (b)
Indicator number 16
Table #3 of Annex 1
Incidents of
corruption or
bribery [G1-4]
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2. Environmental Information
2.1 Disclosures pursuant to
Taxonomy
Regulation
Disclosure pursuant to Article 8 of EU of Taxonomy
Regulation (Regulation 2020/852)
The EU Taxonomy
Regulation (Regulation EU) 2020/852 of the European Parliament and of the Council was adopted in 2020
by the European
Parliament and represents
an important step for
the EU to achieve
the Paris
Agreement climate
neutrality
goals.
It
sets
out
the
criteria
to
establish
a
common
classification
system
for
sustainable
economic
activities.
The
EU
Taxonomy
Regulation
determines
whether
an economic
activity is
environmentally
sustainable and
requires
financial and
non-financial entities subject to the Non-Financial Reporting Directive
(NFRD) to disclose the alignment of their
activities.
Article 8 of the Taxonomy
Regulation prescribes that
undertakings subject to the Non-Financial Reporting Directive
(NFRD),
including financial undertakings,
publish to what
extent their
activities are
associated with
economic activities
that qualify
as environmentally sustainable under EU Taxonomy Regulation. Separate disclosures requirements
and extensive criteria are
in place for financial and non-financial undertakings under Article 8 of EU Taxonomy Regulation Delegated
Act (Commission
Delegated Regulation (EU) 2021/2178.
For the
years 2021 and 2022, financial undertakings
subject to NFRD were
required to disclose the
proportion of taxonomy-
eligible and
taxonomy non-eligible
activities related
to the
environmental
objectives
of climate
change adaptation
(CCA)
and climate change mitigation (CCM).
In 2023, two new Delegated
Acts issued by the European
Commission were
adopted:
●
The
Delegated
Regulation
2023/2485,
which
extends
the
number
of
eligible
activities
in
the
climate
change
adaptation and mitigation objectives.
●
The Delegated
Regulation 2023/2486,
which establishes the
technical screening criteria
for the
economic activities
of the remaining four
environmental objectives.
For
the current
year,
in accordance with
the requirements
of the EU
Taxonomy
Regulation and
related Delegated
Acts, this
report includes the alignment
of Eurobank’s activities with
all six environmental objectives.
However,
it should be noted that
the
alignment
data
for
the
four
additional
environmental
objectives
presented
below,
rely
on
alignment
KPIs
that
non-
financial undertakings have chosen to report on a voluntary
basis:
a.
Sustainable use and protection of water
and marine resources,
b.
Transition to a circular
economy,
c.
Pollution control
and prevention, and
d.
Protection and restoration
of biodiversity and ecosystems.
This
is
due
to
the
fact
that
non-financial
undertakings,
whose
prior-year
data
forms
the
basis
for
Eurobank’s
alignment
calculations, are required to report alignment for these objectives starting only from their 2024 disclosures, available in
2025.
In
such
case,
the
Group
used
the
"best
available
data"
approach,
aligning
its
reporting
methodologies
with
regulatory
recommendations for
handling incomplete or transitional data.
With
the gradual
adoption of
the new
Corporate
Sustainability Reporting Directive
(CSRD) by
large companies,
small and
medium
listed
companies
and
large
companies
outside
the
EU
with
significant
activity
in
the
EU,
the
Group's
KPIs
are
expected to improve as the
number of companies subject to this new directive
will increase.
Credit institutions publish the Green Asset Ratio (GAR), which determines the extent to which the Group’s assets finance and
are invested
in taxonomy-aligned
economic activities, that
is the
ratio
of the
Group's taxonomy
-aligned assets
to covered
assets (total assets excluding exposure to sovereigns,
central banks and the
trading portfolio).
Moreover,
as required by the
EU Taxonomy
Regulation, activities, to be taxonomy-aligned,
must meet the specific taxonomy criteria
and ensure that they
cause no significant harm to any of the other
environmental objectives
(DNSH) and meet minimum social safeguards (MSS).
Additional KPIs are required regarding
the off-balance
sheet exposures and specifically for
financial guarantees to financial
and non-financial undertakings (FinGuar KPI) and assets under management (AuM KPI).
Integration of Taxonomy
in the Group’s
business strategy,
operating model, products
and customers
In line with best established practices,
the Group has integrated
the requirements
of the EU Taxonomy
Regulation within its
processes with key
roles consisting of
●
client engagement in the context of ESG/ Risk Assessment and Sustainable
Finance Assessment,
●
establishment
and
monitoring
of sustainability
risk and
EU
Taxonomy
-related
KPIs
to ensure
alignment
with
risk
limits and sustainable financing strategy/targets as well
as
●
the development
of relevant disclosures.
As part of its Sustainability Strategy,
the Group is implementing
initiatives that
will, among others, enable
it to increase the
share of taxonomy-aligned assets in the
coming years:
●
Development of sectoral near, mid and long-term financed emissions reduction pathways, in line with science-based
decarbonisation pathways,
in alignment with the Group’s
Net Zero commitments.
●
Performing
perimeter
analysis of Taxonomy
-related
sectors, counterparties
and financings
affecting
the GAR
and
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developing action plans for
increasing Taxonomy
-aligned financings in the future.
●
Further
integrating
sustainability
risks and
sustainable
financing considerations
in the
business
planning process
(e.g., project budgeting and prioritisation),
to reflect the Group’s
business strategy and relevant
targets.
Committed to
being transparent
about its
approach
and to
ensure
that
decision-
making is
in line
with best
practices
in
environmental
protection
and
sustainability,
Eurobank
has
developed
guiding
frameworks,
defining
the
approach
and
criteria for classifying its financing and investing activities
as sustainable:
The Sustainable Finance Framework
Through
its Sustainable
Finance
Framework
(SFF), Eurobank
is able
to classify
sustainable
lending solutions
offered
to its
clients, specifying the
applied classification
approach and
the activities
defined as eligible
to access sustainable
financing.
The
purpose of
establishing the
SFF is
to provide
a clear and
comprehensive
methodology
for
classifying, monitoring,
and
reporting
sustainable
financing
in
line
with
the
Financed
Impact
Strategy.
The
SFF
has
drawn
from
international
best
practices
and is
based on
two key
guiding frameworks:
The
International
Capital Market
Association
(ICMA)
principles on
sustainable financing
(Green
Bond Principles,
Green Loan
Principles and
Sustainability-linked Bond
Principles) and the
EU
Taxonomy.
Eurobank will closely monitor the developments of
the EU Taxonomy, to update its SFF as
relevant. The SFF defines
two levels of transaction
alignment:
●
SFF alignment - Fulfilment of criteria dictated by
established market practice
●
EU
Taxonomy
alignment
-
Fulfilment
of
criteria
associated
with
each
of
the
EU
Taxonomy
assessment
steps
(substantial contribution, DNSH, MSS)
Through the dedicated
purpose financing approach (i.e. where the use of proceeds is not known)
the Eurobank assesses and
classifies financings / transactions as “Not SFF aligned”,
“SFF aligned” or “SFF & EU Taxonomy
aligned”.
For
general
purpose
financing
/
transactions
(i.e.
where
the
use
of
proceeds
is
not
known),
the
SFF
defines
two
other
approaches:
●
Company Business mix
- Financing to
companies that fulfil the eligibility green/ social
criteria and derive the majority
of their revenues
from eligible activities.
●
Sustainability-linked
loans
-
Financing
linked
to
ambitious
and
predefined
Sustainability
Performance
Targets
(SPTs).
To adequately
embed of sustainable financing and the SFF in its practices,
the Group has developed
governance structures
and functions as well as a digital tool (SFF assessment
tool) that facilitate
the day-to-day implementation
of the SFF.
The
SFF assessment
tool supports
the process
of assessing
the financings
/ transactions
against the
criteria defined
in the
SFF and
the
EU Taxonomy.
Through
the
SFF assessment
tool,
users categorise
financing to
the
applicable
eligible activity
and are guided through the assessment steps which involve substantiating alignment with the criteria of each step,
including
Taxonomy
alignment assessment (TSC, DNSH criteria,
MSS).
Approach for
the preparation
of disclosures relating to Article 8 of the
Taxonomy
Regulation
The preparation
of mandatory disclosure
in taxonomy eligibility and alignment
is based on the
prudential consolidation for
the
Group.
The
consolidation
is in
accordance
with the
supervisory
reporting of
institutions
according
to the
Commission
Implementing Regulation (EU) 2021/451 (FINREP).
The Group,
upon reviewing its business
activities, to map Taxonomy
reporting requirements
with its core activities, provides
the key
performance
indicators (KPIs)
and other
disclosure requirements
as laid down
in the
EU Taxonomy
Regulation and
the EU Taxon
omy Delegated Act.
For 2024, credit institutions
shall disclose:
●
The
aggregate
GAR for
covered
on-balance
sheet
assets and
the
breakdown
by environmental
objective
and by
type of counterparty.
●
The percentage
of their total assets that are
excluded from the numerator
and the denominator of the GAR.
●
A complementary ratio
on the level
of association with Taxonomy
-aligned economic activities of off
-balance sheet
exposures.
These
exposures
include
financial
guarantees
granted
by
the
financial
institution
and
assets
under
management.
As
per
EU
Taxonomy
Regulation
Delegated
Act,
the
calculation
of
KPIs
for
off-balance
sheet
exposures shall
consider financial
guarantees
granted by
the
credit institution
and assets
under management
for
guarantee and investee
non-financial undertakings. Other
off-balance sheet
exposures such as commitments
shall
be excluded from that calculation.
The application
of the
EU Taxonomy
differs
for general
purpose financing and specific
purpose financing (i.e.
‘known use of
proceeds’).
General purpose financing
For general
purpose financing, the Group uses counterparties’
reported eligibility and alignment information from
the latest
published taxonomy information.
Specifically for corporate
counterparties, the Group
uses actual information that has been
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disclosed and collected by
its counterparties reporting
under NFRD up to the
2023 reporting year
and the CSRD
from 2023
onwards.
In
order
to
determine
which
companies
are
subject
to
NFRD,
an
assessment
is
carried
out
to
determine
that
all
of
the
following criteria are met; a) if the country of
incorporation of the counterparty is in the EU, and
b) whether the counterparty’s
is either
a listed
company,
a credit
institution,
or an
insurance
company,
and c)
whether
the
entity’s net
revenue
exceeds
€40m or its total assets exceed €20m and d) the counterparty
has over 500 employees.
The identification
of counterparties subject to NFRD and counterparties not subject to NFRD has been carried
out based on
internal customer segmentation
in the core banking systems as well
as external information.
The
Taxonomy
-aligned assets
presented include
the reported
alignment for
exposures to
non-financial companies
subject
to NFRD
based on
the
Turnover
and capital
expenditure
(CapEx) KPI
published
by
the
counterparties.
The
Taxonomy
KPI
operating
expenses
(OpEx)
is
not
used
for
assessing
Taxonomy
-aligned
activities,
in
accordance
with
EU
Taxonomy
Regulation
Delegated
Act For
financial undertakings
subject
to NFRD,
the
Group’s
exposures
have
been weighted
to the
counterparty’s proportion of Taxonomy
-aligned assets.
Financial and non-financial
undertakings that
do not
meet the
aforementioned
requirements
are identified
as non-subject
to NFRD. Undertakings that are not required to report under the EU Taxonomy regulation (non-NFRD) are not included in the
calculation of eligible and aligned assets since estimations are
not allowed in mandatory reporting. Therefore,
assets on the
Group’s
balance
sheet
to
non-NFRD
undertakings
are
not
assessed
for
taxonomy
eligibility.
Assets
of
non-NFRD
counterparties,
derivatives,
hedge
accounting
and
on-demand
interbank
loans
are
not
included
in
the
calculation
of
Taxonomy
-eligible and Taxonomy
-aligned assets.
Specific purpose financing
For
specific
purpose
financing
where
the
use
of
proceeds
is
known,
project-specific
KPIs
are
used
in
the
assessment
of
Taxonomy
-eligibility
and
Taxonomy
-alignment
to
the
extent
that
Taxonomy
eligibility
and
Taxonomy
alignment
can
be
demonstrated
for
the
underlying
transaction.
As
part
of
Eurobank’s
Sustainable
Finance
assessment
process,
we
assess
standalone
dedicated
purpose
financings
to
evaluate
alignment
with
the
EU
Taxonomy
requirements.
The
assessment
is
carried
out, based on available
documentary evidence
provided by
the counterparties,
required to
ensure adherence
to EU
Taxonomy
and
based
on
applicable
National
Legislation
in
specific
financing
cases
(i.e.
Resilience
and
Recovery
Fund
investments, which embed the
DNSH assessment).
Other matters
In relation
to households,
loans collateralised
by residential
real estate,
loans granted
for
renovation
purposes and
loans
granted with purpose to finance the purchase of
vehicles were assessed for taxonomy-alignment. The Group is also reporting
its exposure to economic activities related to fossil
gas and nuclear energy according
to Commission Delegated Regulation
(EU) 2022/1214, which
amended the
EU Taxonomy
Delegated Act.
Hence, the
taxonomy-non-eligible nuclear
energy related
activities
are
included
in
the
denominator
of
Eurobank’s
key
performance
indicators.
The
Group
also
uses
the
relevant
templates included in the Delegated Act to disclose information
for nuclear and fossil
gas related activities.
The Group’s
approach for
the disclosures
prepared as of 31 December
2024 reflects its understanding and
interpretation of
the EU Taxonomy
requirements and
is based on the
best effort
to adhere
to the applicable
regulations and new
regulatory
developments. In accordance with the European Commission guidance published in
December 2023 FAQs, no estimates were
included in the calculation of eligibility and alignment
for mandatory disclosures presented.
The
Group
continues
its
work
on
implementing
the
EU
taxonomy
requirements
and
further
enhancing
its
reporting
methodology to ensure transparency
and completeness of the information
disclosed as further
robust information
becomes
available from counterparties.
Results
The Group’s
total GAR based on turnover and total GAR based
on CapEx, as at year-end 2024 cover
the six climate-related
EU environmental objectives
and are presented in the summary below:
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Summary EU Taxonomy
KPIs
Million EUROS
Gross carrying
amount
Turnover
KPIs
Capex KPIs
Taxonomy
-eligible assets
17,868
24.6%
19,
408
26.7%
Taxonomy
-aligned assets
1,908
2.6%
2,658
3.7%
Assets
GAR-
Covered
assets
in
both
numerator
and
denominator
29,506
Assets
excluded
from
the
numerator
for
GAR
calculation (covered
in the denominator)
43,257
Total GAR assets
72,762
Total assets
102,567
Impairment for
loans and
advances at
amortised cost,
debt instruments
and other
adjustments, according
to
EU taxonomy methodology
(1,417)
Total
assets
according
to
the
consolidated
balance
sheet as at 31 December 2024
101,150
The reported main and additional
KPIs calculated on 31 December 2024 for
the Group, including the
reporting templates as
set out
in the
EU Taxonomy
Regulation, EU
Taxonomy
Regulation Delegated
Act and the
European Commission
FAQs,
are
presented in the Appendix.
Moreover,
comparative information
for 2023 is also reported, which
have been adjusted to reflect newly issued
guidance and
interpretations of the
existing EU taxonomy Regulation. The
adjustments aim to ensure that our disclosures are fully
aligned
with the latest regulatory
expectations, thereby
enhancing the transparency
and consistency of our reporting.
2.2
Climate change [E1]
2.2.1
Governance
Integration of sustainability-related
performance in incentive
schemes [ESRS 2 GOV-3]
Sustainability
at
Eurobank
is
deployed
across
a
Sustainability
Governance
structure
that
addresses
both
regulatory
requirements and voluntary
commitments. Board oversight
with respect to the Sustainability Strategy
is addressed through
the inclusion of Sustainability items in the
Board Meetings agenda, as per international
best practice.
The
Group
has updated
its
Governance
structure
by
introducing
and defining
the
roles
and responsibilities
in relation
to
climate
change
and
sustainability
risks,
embedding
regulatory
guidelines
and
market
practices.
The
Group
applies
the
elements
of the
three
lines of
defense
model for
the
management of
sustainability risks.
The
three
lines of
defense
model
enhances risk management and control
by clarifying roles and responsibilities within
the organisation.
The
Group
has
established
a
Remuneration
Policy
that
is
applicable
to
all
Group
employees
and
covers
their
total
remuneration.
The
Remuneration
Policy
forms
an
integral
part
of
the
Group’s
corporate
governance
practice
and
is
developed
in accordance
with
its
operational
model,
business
strategy,
objectives,
long-term
interests
of
the
Group
and
incorporates measures
to avoid conflict of interest.
The Remuneration
Policy promotes
sound and effective risk management
and is consistent with the objectives of the
Bank’s
business and
risk strategy,
corporate
culture
and values,
risk culture,
with regard
sustainability risk
factors,
including long
term interests
of the
Group and
the
measures
used to
avoid conflicts
of interest
and should
not encourage
excessive
risk-
taking on behalf of the Group.
The
Group
ensures
that
remuneration
practices
are
aligned
with
their
overall
risk
appetite,
taking
into
account
all
risks,
including sustainability
risks, reputational
risks, as
well as
risks resulting
from
the
mis-selling of
products.
More specifically,
the Remuneration
Policy has been designed in order
to:
●
Be consistent with and promote sound and effective
risk management.
●
Stimulate behaviours consistent with sustainability risks approach.
●
Comply with the Group’s
voluntary commitments.
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For the time being, the remuneration
of members of the administrative, management and supervisory bodies is not assessed
against GHG emission reduction targets, and thus
no percentage of this year’s
remuneration
is linked with the
achievement
of sustainability targets.
2.2.2
Strategy
Transition
plan for climate change mitigation
[E1-1]
The
Group
supports
the
transition
towards
a
sustainable
economy
and
considers
sustainability
and
addressing
climate
change as an opportunity. A key strategic
objective is to adapt the Group’s
business and operation in a way that addresses
climate change
challenges, accommodates
social needs
within its
business model
and safeguards
prudent governance
for
itself
and
its
counterparties,
in
accordance
with
supervisory
initiatives,
and
following
international
standards
and
best
practice.
Following
the
completion of
the
onboarding of
Hellenic Bank,
during 2024,
along with
the
upskilling achieved
for
the rest
of International
subsidiaries, the
Group aims to
align all entities’
Sustainability Strategies
to converge
to a Group-
wide Sustainability Strategy in both pillars.
To this
end, Eurobank
has designed, approved
and is currently
implementing the
Group’s Sustainability
Strategy,
including
targets and commitments, along two key
pillars:
●
Operational Impact
Strategy: Impact arising from
the Bank’s operational
activities and footprint in Greece
●
Financed Impact
Strategy:
Impact arising
from
the
Bank’s lending
and investing
activities to
specific sectors
and
clients
The
operational
impact
strategy
defines the
operational
sustainability priorities
and objectives.
The
strategy
is deployed
through
milestones and
KPIs that
support the
annual and
long-term
targets
set across
multiple
project
streams, and
key
pillars spanning over
the next
decade. The
operational
impact strategy
is developed
and deployed
along three
pillars, key
pillar of which is
the environmental
impact which aims at
minimizing negative
impact of Eurobank’s
operations
to promote
environmental stewardship
with a clear goal to attain climate neutrality.
The underlying target of
the environmental impact pillar is
the achievement of Net Zero emissions
from Eurobank’s operations
by 2033
for
Scope 1
& 2
emissions and
by 2050
for
Scope 3
emissions, with
2019 as
the
baseline year.
Τhe action
plan for
achieving this target and tracking the progress
against it, is informed by transition
pathways that are aligned with the
Paris
Agreement target of limiting global
warming to 1.5
o
C.
To
achieve its operational
Net Zero targets, the
Bank has identified the following
key decarbonisation
levers:
●
Promote energy
efficiency and self-generation
of electricity - Scopes 1 & 2:
o
Action
plan
to
reduce
emissions
from
its
operations
by
optimizing/upgrading
the
energy
efficiency
of
its
buildings. This
includes technical
interventions
(i.e. LED
light fixture
installations, minimum
energy
class of
A+
air
conditioning
and
heat
recovery
ventilation
systems)
as
well
as
system-level
building
upgrades
and
the
replacement of carbon-intensive
sources (i.e. heating oil).
o
Energy self-production
plan consisting of
rooftop photovoltaic
(PV) stations
installed on
Eurobank’s
buildings
and standalone PV parks developed on Eurobank
property.
o
Increase procurement
of electricity sourced by Renewable Energy
Sources (guarantees of origin).
●
Electromobility – Scope 1
o
Gradual increase
of the share
of plug-in/ electric vehicles
in Eurobank’s
fleet and installation
of EV recharging
infrastructure at buildings
●
Minimise business travel
– Scope 3
o
Measures to
reduce indirect
emissions associated
with transportation
and business
travel,
where
feasible, by
introducing alternative
methods such as teleconferencing
●
Transition to cloud
– Scopes 2 & 3
o
Initiative for transitioning to cloud computing which
will result in
the reduction of electricity usage
from physical
servers.
The targets
that have
been in place
for the
achievement
of the
operational
Net Zero
commitment for
Scope 1 &
2 by 2033
and for Scope 3 by 2050 commitment are
the following:
●
Establish a centralized web
-based Platform for
energy,
emissions and environmental Data
by 2025.
●
Implement energy self-production
activities:
o
Installation of roof-top PVs
on Eurobank buildings by 2024
o
Develop standalone PV parks by 2028
●
Electromobility: >25%
of leased vehicles to
be EV or hybrid (new
contracts) by 2024
and >75% of leased vehicles
to
be EV or hybrid (new contracts) by 2028.
●
Calculation of emissions savings due to data centre
modernization by 2024
●
Completion of the initiative
"Journey to Cloud" by 2025
●
100% of electricity consumed to be originated from RES by
2028
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●
Energy efficiency upgrade
of buildings that contribute to Scope 1 & 2 emissions by 2030
●
Increase the number of certified
green buildings in Eurobank's building portfolio
by 10 by 2030 (baseline 2023)
●
Acknowledge the Acharnes building
as a model environmental building by 2025
●
Monitor, certify,
disclose and optimize emissions of Scope 1,
Scope 2 and Scope 3 Operational in line with regulation
and all applicable categories of GHG Protocol
by 2025
●
Carbon credits (nature-based carbon removal projects
in line with SBTi) for the entirety of natural
gas emissions, up
to 3% of the total Bank emissions (Scope 1 & 2) by 2025
●
Develop Long-term Energy
Plan (including self-production and PPA
options) by 2025
●
Maintain and update
detailed Operational
Net Zero
Action Plan (SBTi
aligned, baseline year
2019) for
Scope 1 & 2
(Net-Zero by 2033) and for
Scope 3 (Net-Zero by 2050).
The
operational
Net Zero
action plan
is complemented
by milestones,
KPIs, annual
targets and
long-term
interim targets,
serving
the
declared
commitments.
Links
are
established
with
Transformation
streams
as
well
as
corresponding
ISO
Management System standards, to
ensure substantiation and certification of activities,
validate target setting
and measured
performance,
and systematically monitor progress
through internal reviews
and external assurance.
2024 was the third year of implementation
of Eurobank’s operational
impact strategy,
with the following
completed actions
demonstrating progress:
●
Update
of
the
operational
Net
Zero
Roadmap
and
transition
curves
with
2023
data,
in
line
with
the
transition
pathways that are aligned
with the Paris Agreement
target of limiting global warming to 1.5
o
C.
●
Verified operational
carbon footprint for
2023 as per ISO 14064, in line with National Climate
Law stipulations.
●
Considerable
reduction
of 5.04%
in purchased
electricity consumption,
reduction
of 10.16%
of equivalent
Scope 2
emissions and
reduction of
13.15%
of equivalent Scope
1 &2 emissions
(surpassing the
4.7% 2024 target)
in 2024,
compared to 2023.
●
97.96%
of total electricity consumed
in 2024 was sourced
from Renewable
Energy Sources
(certified guarantees
of
origin and self-production).
●
94.79%
of Eurobank's
leased
vehicles
are
plug-in/electric
(new
contracts),
as part
of its
efforts
to accelerate
the
complete replacement of its fleet with electric
or hybrid vehicles.
●
Additional chargers for
electric vehicles were installed in central
buildings.
●
Eurobank certified
its new Headquarters Building with LEED (Gold) and increased its certified
green buildings to 20
(LEED, BREEAM certifications).
●
Photovoltaic (PV) installations have been
completed under the Net
Metering principle in
the Nea Ionia
and Acharnes
buildings during 2023, Energy self-production
started in May 2024 in N. Ionia complex and in
July 2024 in Acharnes
building. Energy self-production
of 787.87
MWh from solar panels.
●
In 2024, the environmental
licensing process for
two PV standalone parks in central
Greece was initiated.
●
Completion of Eurobank’s Energy
profiling Report in the framework
of the development
of a long-term energy plan
for Bank’s building portfolio.
The Group recognises that the
most significant part of its impact
on climate arises from the financing it extends to its clients.
Therefore,
the
second
pillar
of
its
Sustainability
Strategy,
Financed
Impact
Strategy,
evolves
around
the
following
key
components:
●
Sustainable
financing:
Development
of
strategies
that
will
promote
the
green
transition
of
the
Group’s
clients
through sustainable financing.
●
Portfolio
alignment
:
Gradual alignment of
the Group’s
portfolio
with sectoral
transition pathways
that are aligned
with the 1.5°C climate transition
scenario.
●
Net Zero
strategy:
Sectoral
decarbonisation
targets covering
the
Group’s
lending portfolios,
with phased
target-
setting up to 2050.
In line with its commitment to address climate
change, the Group has joined
the Net-Zero
Banking Alliance (NZBA), a bank-
led, UN-convened
alliance of
banks worldwide,
reinforcing
its dedication
to aligning
its lending
and investment
portfolios
with net-zero
emissions by 2050 or sooner,
in line with the most ambitious targets set by
the Paris Climate Agreement.
As a
result,
the
Group
is now
taking the
next step
to identifying
and disclosing
its first
set of
sectoral
Net Zero
targets. In
doing so, it
aims to actively
support the
decarbonisation
policy agenda
and play a
pivotal
role
in channeling capital
flows
towards the
transition of key
sectors in the short,
medium and long-term time
horizons. Specifically,
the Group
has initiated
the process of developing sectoral, financed emissions reduction targets based on the NZBA
framework, for some of the most
carbon-intensive and, therefore,
most relevant and impactful sectors and portfolios.
It approaches its target setting process
on a
sector/portfolio basis, to factor in specific
elements of the climate
transition. It also adheres to
proven industry standards
(e.g. NZBA, PCAF) and accredited science-based decarbonisation
scenarios, in line with a 1.5
o
C objective by 2050.
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Based
on
the
NZBA
framework,
the
Group
has
identified
its
priority,
carbon
intensive
sectors,
representing
a
significant
proportion of
its financed emissions,
and is developing
its 2030 emission
reduction targets.
The first
wave of sector
targets
will be finalised within 2025, including phased target setting up to 2050, and operationalization of its Net Zero 2030 targets.
The activity
of the
Group is
part of the
EU Paris-aligned
Benchmark activities. As
part of the
Pillar 3 disclosures,
the Group
discloses the counterparties in its portfolio that are excluded from the Paris Aligned Benchmark (Consolidated Pillar 3 Report
- 11.4.1 Template 1: Banking book - Climate
Change transition risk: Credit quality
of exposures by sector, emissions and
residual
maturity).
Material impacts, risks and opportunities and their interaction
with strategy and business model [ESRS
2 SBM-3]
The Group
identifies and assesses sustainability-related
risks, including Climate-Related and Environmental
risks, within the
context of the Risk Identification and Materiality Assessment (RIMA) process,
which is performed at least on an annual basis,
or ad-hoc, if necessary. Through the RIMA process, the Group identifies material risks that could potentially have a significant
adverse impact on its financials, capital base, liquidity
position or business model, as well as
identifies any possible emerging
risks that
the
Group
might be
exposed to.
In this
context, the
Group
takes
into consideration
several
different
sources
to
identify new
risks, such as
the Single
Supervisory Mechanism
(SSM), the
Supervisory Priorities,
the EU
& national
legislation
changes, developments
in the
regulatory
landscape in
general,
along with
EBA Guideline
or Basel
Committee on
Banking
Supervision (BCBS) reports.
The
Group
has
identified
as
sustainability
risks,
the
risks
deriving
from
potential
loss
or
negative
impact
to
the
Group,
including loss/damage to physical assets, disruption
of business or system failures,
transition expenditures
and reputational
effects from
the adverse consequences
of climate change and environmental degradation.
As sustainability
risks interact
with other
risks and result
in both
direct distributional
impacts and
indirect macroeconomic
impacts,
the
Group
understands
that
careful
consideration
of the
cross-cutting
nature
thereof
is necessary
to ensure
the
appropriate implementation
of adaptation activities. Thus, the
Group considers sustainability risks as drivers
of existing risk
types, undertaking a holistic and systemic approach when examining the complex links between sustainability risks and
both
financial
and
non-financial
risks.
Eurobank
has
integrated
sustainability
risks
elements
into
its
existing
risk
management
processes, creating additional
procedures, policies
and tools so that these risks can be properly
identified and measured.
The
Group
has identified
the
risk drivers
related
to climate
change and
environmental
degradation,
through
internal
and
external sources
of knowledge, that
are most relevant
for the
business environment
in which it operates.
In this context, the
Group has identified the following
list of climate-related and environmental
risk drivers:
Climate-related risks
Transition
risk
Financial loss
that
can
result,
directly
or indirectly,
from
the
process
of
adjustment
towards
a
lower-carbon
and
more
environmentally
sustainable
economy.
This
transition
may
entail extensive behavioral,
policy and regulatory,
as well as
technological
changes,
to
address
mitigation
and
adaptation
requirements
relating
to
impacts
deriving
from
climate
change and
environmental
risks.
Depending on
the
nature,
speed,
and
focus
of
these
changes,
transition
risks
may pose varying
levels of
financial and reputational
risk to
organisations
Physical risk
Financial
impact
of
a
changing
climate,
including
more
frequent
extreme
weather
events
and
gradual
changes
in
climate, as well as the impact of environmental degradation,
such
as
air,
water
and
land
pollution,
water
stress,
biodiversity loss and deforestation
.
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Behavioural Changes
Behavioral
changes of consumers,
suppliers, employees
and
investors
could
trigger
shifts
in
supply
and
demand
for
certain
commodities,
products,
services
and
capital
as
climate-related
and
environmental
risks
and
opportunities
are
increasingly
taken
into
account.
Changing
client
or
community perceptions
of an
organisation’s
contribution to
or detraction from the transition
to a lower-carbon economy
and developments
aimed at halting
or reversing
damage to
nature,
can
all
result
in
decreased
revenue,
changes
in
the
revenue
mix
and
major
capex
requirements,
while
they
are
also
a
potential
source
of
reputational
risk
for
many
corporates.
Acute Hazards
Extreme weather
-related events
such as storms,
floods, fires
or
heatwaves
and
other
environmental
hazards
such
as
geologic events
or changes in ecosystem
equilibria (e.g., soil
pollution) that
may damage production/
operation
facilities
and disrupt value chains.
Policy & Regulatory Changes
The objectives of policy
actions and regulatory requirements
generally fall
into two categories:
1.
Policy
actions
that
aim
at
constraining
actions
that
contribute to the adverse
effects of climate change (e.g.,
implementing
carbon-pricing
mechanisms
to
reduce
greenhouse
gas
emissions,
energy
use
toward
lower
emission
sources)
and
environmental
degradation
(e.g.
restrictions
on water
consumption levels,
ban of
certain
environmentally damaging materials/chemicals).
2.
Policy
actions
that
seek
to
promote
adaptation
to
climate
change
(e.g.,
adopting
energy-efficiency
solutions,
encouraging
greater
water
efficiency
measures,
and
promoting
more
sustainable
land-use
practices)
and
environmental
degradation
(e.g.
more
efficient water management
practices).
Both the
nature and the
timing of policy changes
determine
the extent of the associated risk and its subsequent financial
impact.
Another
important
risk
is
litigation
or
legal
risk.
As
the
value
of loss
and damage
arising from
climate
change
and environmental
degradation
grows,
litigation risk
is also
likely to increase.
Chronic Hazards
Progressive
shifts, such as increasing temperatures,
sea level
rise, water
stress, biodiversity
loss, land use
change, habitat
destruction and
resource
scarcity.
This can
directly result
in,
for example, damage to property or reduced
productivity, or
indirectly
lead to
subsequent events,
such as
the
disruption
of supply chains
Technological
Changes
Technological
improvements
or innovations that support the
transition
to
a
lower-carbon,
energy
efficient
economic
system as well as
the substitution of products or services with
a lower / improved impact on nature or reduced dependency
on nature can have a significant impact on organisations, as
different
industries may encounter
difficulties in adapting to
technology
advancements
toward
greener
practices.
For
example, the development and use of
emerging technologies
such as renewable energy, battery storage, energy efficiency,
and
carbon
capture
and
storage
will
affect
certain
organisations,
their
production
and
distribution
costs,
and
ultimately the
demand for
their
products
and services
from
end
users.
The
timing
of
technology
development
and
deployment is also a key uncertainty in assessing technology
risk.
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Environmental Risks
Water Scarcity
Water
scarcity
is
assessed
in
the
context
of
environmental
risk.
However,
environmental
risk
is
not
further
split
into
physical and transition hazards at this stage, due to a lack
of
appropriate
data
and
the
overall
early
stage
of
the
corresponding
environmental
risk
management
framework;
rather,
water
scarcity
assessment
embodies
both
components
altogether.
The
analysis
for
environmental
hazards
will
resemble
the
analysis
for
climate
risk
going
forward, as the
risk environment matures.
Biodiversity Loss
Biodiversity
loss
as
a
relevant
risk
for
its
operations.
Biodiversity loss is an average loss in biological diversity over
time and/or space that leads to a decline in the ability of the
natural
world
to generate
flows of
ecosystem services,
with
negative
economic
impacts
on
individuals,
households,
organisations and countries.
As the global financial sector is increasingly recognising the importance of understanding
and managing sustainability risks,
scenario
analysis
has
emerged
as
a
valuable
tool
for
assessing
the
potential
impacts
of
climate
change
on
financial
institutions.
Scenario
analysis enables
Eurobank
to
evaluate
its resilience
and adaptability
in
different
climate-related
scenarios.
The
methodological
approach adopted allows
to measure impacts,
based on different
scenarios and time
horizons (2030, 2040
and 2050). The study aims to enhance Group’s
understanding of climate-related risks, inform strategic
decision making, and
facilitate the integration
of climate considerations
into its risk management framework.
The
purpose
of
the
scenario
analysis
is
to
inform
the
Group
to
proactively
identify
potential
vulnerabilities,
seize
opportunities,
and align
its
business
strategies
with
the
transition
to a
low-carbon
economy.
The
integration
of
scenario
analysis,
plays a
crucial role
in shaping
its strategy,
by
providing
valuable
insights into
the
potential
impacts
of climate-
related risks and opportunities on its financial performance
and long-term sustainability.
Forward-looking
analysis is especially important,
but also challenging. Efforts
to mitigate and adapt
to climate change
are
without historical precedent,
and many aspects regarding
the timing and magnitude
of climate change in specific
contexts
are uncertain.
The
set of
scenarios
that are
utilised by
the
Group,
include four
representative
scenarios
by the
Network for
Greening the
Financial System
(NGFS) and
two Representative
Concentration
Pathways
(RCPs) climate
scenarios.
More specifically,
the
scenarios used are:
NGFS scenarios
Representative Concentration
Pathways (RCPs)
climate scenarios
1.
Orderly: Net Zero 2050
, where climate
policies involve early,
ambitious action and the impacts are
low for both physical
and
transition Risks
1.
RCP2.6,
that incorporates strong
climate
policies and limit the increase in average
global temperature
to below 2
o
C.
2.
Disorderly:
Delayed Transition
, in which climate policies are not
introduced until 2030 and the
outcome has a higher impact on
transition risk.
3.
Hot house word: Current
Policies
, with limited climate policies
and severe physical
risks and irreversible
changes, including
higher sea level
2.
RCP8.5,
implying strong climate changes
and the necessity of strong
adaptation to
the new conditions
4.
Too-little-too-late: Fragmented
World
, in which delayed and
divergent climate policy
ambition globally,
leads to elevated
transition risks due to the overall
ineffectiveness
of the
transition.
The scenario analysis informs
the Group’s strategy
and decision making. The results
which provide a comparison of financial
evolutions
by sectors and geographies
over
a range of scenarios
and time horizons, indicate
that Group’s
strategy remains
adaptive.
2.2.3
Impact, risk and opportunity management
Description of the processes to identify and assess material climate-related impacts, risks and
opportunities [ESRS 2 IRO-
1]
Eurobank identifies material impacts, risks,
and opportunities related to
climate—such as climate change
adaptation, climate
change mitigation and energy
—through a comprehensive
DMA. This approach integrates
industry benchmarks, stakeholder
insights, and financial relevance to ensure
a robust evaluation
of climate-related topics.
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The impacts, risks and opportunities associated with
Climate change are displayed in the
table below:
Climate change adaptation
Impact
Positive
Actual
Eurobank
actively
contributes
to
GHG
reduction
ambitions
and
targets,
set
by
the
EU,
regulations, central
governments, and other
bodies, through its sustainable financings and
integration of climate risk in the
risk management framework.
Negative
Potential
Eurobank’s
business
strategy
may
encompass
the
continuation
of
financing
to
carbon-
intensive sectors.
Risk
The
actions
required
by
Eurobank’s
clients
to
address
climate
change
mitigation
and
adaptation
requirements
relating
to
impacts
deriving
from
climate
change
may
impact
Eurobank’s credit risk.
Opportunity
Meeting climate objectives linked to legal, regulatory and
other stakeholders’
requirements
for
Eurobank’s
clients, entails
the opportunity
for
Eurobank
to finance
the
transition
of its
clientele.
Climate change mitigation
Impact
Positive
Actual
Eurobank implements a robust
climate change mitigation strategy aiming to minimise
the
consequences of climate change for its portfolio.
Negative
Actual
Eurobank’s
portfolio
faces
negative
impacts
due
to
the
absence
of
a
climate
change
mitigation strategy.
Risk
The
actions
required
by
Eurobank’s
clients
to
address
climate
change
mitigation
and
adaptation
requirements
relating
to
impacts
deriving
from
climate
change
may
impact
Eurobank’s credit risk.
Opportunity
Meeting climate objectives linked to
legal, regulatory and other stakeholders’ requirements
for Eurobank’s
clients, entails
the opportunity
for Eurobank
to finance
the transition
of its
clientele.
Energy
Impact
Positive
Actual
Eurobank
implements
measures
to
reduce
energy
consumption,
leading
to
enhanced
efficiency in operations.
Negative
Actual
Eurobank
contributes to
climate change
through
its in-house
operations
that contribute
to the release of emissions.
Eurobank
has performed
an in-depth
analysis regarding
climate change
transition
and physical
risks within
the
context of
the Task
Force
on Climate-related Financial Disclosures (TCFD)
recommendations.
The
analysis
aims
to
enhance
Eurobank’s
understanding
of
sustainability
risks,
inform
strategic
decision-making,
and
facilitate
the
integration
of
climate
considerations
into
its
risk
management
framework,
as
well
as
to
inform
Eurobank’s
approach on identifying vulnerabilities,
seizing opportunities and aligning business strategies
within the context of the
Task
Force
on
Climate-related
Financial
Disclosures
(TCFD)
recommendations.
Please
refer
to
the
latest
TCFD
report
,
Group’s
“Climate - related & Environmental
Risk Report” “4.4 CR&E Risks Scenario Analysis” chapter
.
Transition
risk impacts
The Group explored 4 different
scenarios (stated in section 2.2.2.) as part
of its strategic planning and risk management with
time horizons up to 2050. The
overview of horizontal impacts includes
the following:
●
Overall,
the net impact on the economic activity (GDP) of Greece
is found to be small but negative in the long term
in all scenarios examined, compared with Hot House
World Scenario. However,
changes in the energy system in any
scenario examined
do not have
any critical impact
on the structural
growth drivers
of the economy
hence a stable
economic growth is projected
in all scenarios examined.
●
The low ambition scenarios
do not have any significant impact in the
short term.
●
Positive
impacts
are
brought
into
the
economy
mainly
through
energy
efficiency
improvements
as
these
are
characterized
by
high
multipliers
and
domestic
content.
Energy
efficiency
improvements
mainly
addresses
the
construction sector
(domestic capacity)
that is
characterized
by a
high output
and employment
multiplier.
Energy
efficiency improvements
also reduce the
dependency on imported fossil fuels and on electricity.
●
In the
high ambition
scenarios, the
Greek economy
is benefited from
reducing its
dependency on fossil
imports as
gradually its system is fully decarbonized.
However
increased penetration of RES
further burdens
the trade balance
as most of the equipment is imported.
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●
The
impact on
household income
is mixed:
An increase
in employment
in high
value-added sectors
takes place
in
order to support the deployment
of clean energy technologies. A decrease in employment in brown
sectors leads to
skills shortage
and increasing
unemployment
in ages
where
upskilling –
reskilling
has low
potentials –
leading to
long term unemployment. The
impacts are highly contrasted among regions within Greece
although the net impact
is small.
●
The
key
sector
benefiting
in
the
high
ambition
scenarios
are
the
power
generation
utilities.
Significant
positive
effects
on
electricity
production
driven
by
the
electrification
of
the
energy
system
(despite
the
energy
efficiency
improvements
the
electrification
of
the
economy
is
significant
–
in
particular
through
the
electrification
of
the
transport sector the net demand for
electricity increases significantly).
●
Negative
impacts are
mainly driven
by
import requirements
(assuming
that
the
market
share
of Greece
in clean
energy
technologies
will
not
change
considerably
in
the
future
–
significant
share
of
the
equipment
required
to
decarbonize the energy
system is imported – PV,
wind turbines, electric vehicles, batteries).
Key outcomes from
the transition risk scenario
analysis include the following:
●
Low ambition scenarios in the short-term have moderate
impacts on GDP and sectoral production as carbon prices
do not increase much production costs but also provide
a weak signal for investments.
●
Too Little too late and Delayed
transition scenarios have
marginal virtually zero impact on the
short term.
●
Net zero 2050 is projected
to have significant contrasted sectoral
impacts both in the short and long term.
●
Services
are
benefited
to
the
extent
that
they
operate
supplementary
to
the
deployment
of
the
clean
energy
technologies (design, implementation, financing etc.). Services
are characterized by low dependency on energy
and
openness to trade hence
higher energy costs leave
the competitiveness of the
sector virtually unaffected.
●
The demand of clean technologies increases
with positive impact in their
production. Biofuels,
batteries, PV,
energy
saving equipment/ materials and
Wind are essential
for the
decarbonization of the
system. Cost maturity achieved
both in the Net Zero
2050 and Delayed Transition
Scenarios.
●
The higher
carbon price
in Emissions Trading
Scheme
- ETS (incl.
the extended
ETS, Transport
& Services)
Net Zero
and Delayed Transition imply negative impact on GHG intensive industries - when not sufficient measures
are taken
to mitigate international competitiveness.
Physical risk impacts
Eurobank
assesses
the
physical
climate
risks
related
to
its
clients’
activities
following
an
analytical
and
transparent
methodological approach,
considering both:
●
Chronic effects: impact on companies’ revenue or operating costs due to
the long-term changes in weather patterns.
●
Acute effects: damages to companies’ assets or
revenue losses attributed to extreme
weather
events.
To this end, the
Group utilises two Climate Scenarios
for the analysis of physical
impacts, namely
1.
RCP 2.6, which is a stringent mitigation scenario
with the aim to keep global
warming below 2ºC, consistent with
the goals of the Paris
Agreement
2.
RCP 8.5, which is a scenario
with weak and delayed
action for
reducing global GHG
emissions. It is a “reference”
or
worst-case
scenario
where
GHG emissions
keep increasing
throughout
the
whole century
as it
incorporates
weak
policies for
tackling climate
change. In
other
words,
it is
associated with
hot house
world
scenarios,
with average
temperature
increases exceeding 4°C.
Chronic risk effects
The
analysis of
chronic
effects
has been
performed
for
2030,
2040 and
2050
for
13 regions
in Greece.
The
Group
utilised
climate indicators that are considered as the drivers
of the potential chronic impacts of climate change on the companies of
the respective economic sectors, affecting either their operating costs or their revenues. In the context of
the present analysis,
these effects either
directly (due to the structure of the climate indicators used) or indirectly (through the input-output tables
of the
respective
economies or
other
econometric
models)
were
expressed
as percentage
changes in
the
turnover
of the
respective
businesses. At
the
final stage
of the
process,
specific thresholds
were
adopted as
regards
the
estimated losses
due to climate change, with a view the
related risks to be characterized
as negligible, low, medium,
high or very high.
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Sector
2030
2040
2050
Agriculture
High
Very high
Very high
Construction
Negligible
Low
Low
Electricity Supply
Low
Low
Medium
Manufacturing
Low
Low
Low
Oil and Gas
Negligible
Negligible
Negligible
Real estate activities
Negligible
Negligible
Negligible
RES
Negligible
Negligible
Negligible
Transporting and Storage
Low
Low
Low
Water supply
Low
Low
Low
Wholesale and retail
Negligible
Negligible
Negligible
Acute risk effects
During the analysis of acute effects,
the Group takes
into consideration several
extreme phenomena, such as:
●
Fluvial floods (high-water levels in river
channels, causing dyke breach)
●
Pluvial floods (rainfall intensity exceeding
infiltration capacity)
●
Extreme heat
●
Wildfires
●
Water scarcity
●
Landslides
●
Coastal floods
The quantitative
analysis considers three main dimensions:
1.
Climate Hazards
2.
Exposure
3.
Vulnerability
The
climate
risk
attributed
to
each
extreme
phenomenon
under
consideration,
is
calculated
by
geographical
area
and
economic activity as the product of the three indicators formulated to evaluate the abovementioned
dimensions. Ultimately,
adopting appropriate thresholds,
this climate risk attributed
to acute effects
is characterized, similarly to chronic
effects, as
negligible, low,
medium, high, or very high.
Sector
Assessment
Agriculture
Negligible
Construction
Negligible
Electricity Supply
Low
Manufacturing
Negligible
Oil and Gas
Negligible
Real estate activities
Negligible
RES
Negligible
Transporting and Storage
Negligible
Water supply
Low
Wholesale and retail
Negligible
2.2.4
Policies & Actions
Policies related to climate change
mitigation and adaptation [E1-2]
Τhe Group
has adopted policies to manage material
impacts, risks, and opportunities related
to climate change mitigation
and adaptation
and the
environment.
Policies
affecting
internal
stakeholders
are
available to
the
Group's
intranet,
while
those referring
to external
stakeholders,
such as
the Group's
Code of
Conduct and Ethics,
are available
through
corporate
website.
Eurobank
is
committed
to
engaging
with
stakeholders
by
ensuring
a
high
level
of
accountability
in
policy
development
and
implementation.
Policies
are
approved
by
the
appropriate
Governance
bodies
such
as
the
Board
of
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Directors or specialized
committees, which ensure
that there
is alignment with
the Group's
strategic goals
and stakeholder
interests. The
relevant policies
are outlined in
the below
table as per the
Minimum Disclosure Requirements
with regards
to
policies (MDR-P) defined in ESRS 2.
Name of key policy
Addressed key areas of
policy
Relevant material identified
impact, risk or opportunity
Operational impact climate
change-related policies
Environmental & Energy
Management
Systems
- Energy management
- Energy assessment of facilities
- GHG emissions
- Environmental & Energy
targets
- Waste management
- Νatural resources
management
- Water resources
management
Energy
Climate change adaptation
Climate change mitigation
Energy Management Policy
Statement
-Energy performance
improvement
-Renewable energy
deployment
-Regulatory compliance
Energy
Climate change adaptation
Climate change mitigation
GHG emissions Inventory Report
- Energy management
- GHG emissions
- Operational GHG emissions
- Operational Net
Zero
Energy
Climate change adaptation
Climate change mitigation
Environmental Report
-Energy management
-Operational GHG emissions
-Operational Net
Zero
-Water consumption
-Solid Waste Management and
Recycling
-Noise
Energy
Climate change adaptation
Climate change mitigation
Water Management
Policy Statement
- Water resources
management
- Water consumption
-
Environmental Policy
Statement
-Energy management
-Climate change adaptation
-Climate change mitigation
-Impact of activities
Energy
Climate change adaptation
Climate change mitigation
Financed impact climate change-related
policies
Sustainable Finance Framework
-Renewable energy
deployment
-Climate change adaptation
-Climate change mitigation
Climate change adaptation
Climate change mitigation
Sustainable Investment Framework
-Renewable energy
deployment
-Climate change adaptation
-Climate change mitigation
Climate change adaptation
Climate change mitigation
Green Bond Framework
-Energy efficiency
-Renewable energy
deployment
-Climate change adaptation
-Climate change mitigation
Climate change adaptation
Climate change mitigation
Sustainability Risk Management Policy
-Climate change adaptation
-Climate change mitigation
Climate change adaptation
Climate change mitigation
Climate Risk Stress Test
Framework.
-Climate change adaptation
-Climate change mitigation
Climate change adaptation
Climate change mitigation
Group Environmental
& Social Policy
-Climate change adaptation
-Climate change mitigation
Climate change adaptation
Climate change mitigation
Eurobank recognises
the interdependency
between impacts on
the environment,
as well as
the risks and
opportunities they
present.
As
such,
we
have
implemented
policies
that
cover
several
material
sustainability
matters,
including
matters
addressed by more than one topical ESRS.
The following
policies address more than one
sustainability matter.
The
overarching
Sustainability
Policy
Framework
outlines
the
approach
for
adherence
to
applicable
regulatory
requirements and voluntary
initiatives as well
as adopted standards and guidelines enabling Eurobank’s
contemporary and
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continuously
updated
approach
towards
Sustainability,
in
line
with
international
best
practices.
The
Sustainability
Policy
Framework
sets the foundation
towards integration
of Sustainability into Eurobank’s business model
and operations.
The subject matter
of the operational
impact policies is outlined below:
The
Environmental
& Energy
Management
Systems outline
how the
various Environment
and Energy
policies of
Eurobank
interact,
as
well
as
environmental
management
practices,
responsibilities
and
targets.
These
ISO
certified
Management
Systems cover waste, natural resources,
water and energy systems management, GHG emissions, environmental
and energy
targets, obligations compliance, training and staff awareness of
Eurobank’s operations and upstream and downstream value
chain.
Eurobank
monitors
and
reviews
the
information
related
to
interested
parties
and
stakeholders
and
their
related
requirements,
defining a
specific
cooperation
framework
and communication
method
for
each
case.
Accountable
for
the
continuing
suitability,
adequacy
and
effectiveness
of
the
Environmental,
Energy
and
other
Sustainability-related
ISO
Management
Systems
are
the
Sustainability
Management
Committee,
the
Environmental
System
Manager,
the
Environmental Coordinators
and the Building Administrators.
The
Environmental Policy
Statement
outlines its commitment to the protection
of environment, seeking the optimum use of
natural resources,
mitigating its environmental impact, adapting to climate change, protecting biodiversity
and ecosystems,
and preventing waste pollution.
The
Energy
Management
Policy
Statement
outlines
its
commitment
to
responsible
energy
management
across
all
its
facilities, including branches and administration
buildings. Key objectives include the
continuous improvement of the
energy
performance
and the
Energy Management
System (EnMS), providing
the information
and resources
needed to achieve
the
goals
and
energy
objectives,
and
ensuring
compliance
with
applicable
legal/regulatory
requirements,
and
other
commitments of the Bank regarding energy use, energy
consumption and energy efficiency.
Eurobank aims to streamline the
energy use by minimising the energy costs, the environmental
impacts, and fossil fuel use, while promoting renewable energy
sources and maintaining business/operational goals and
a suitable working
environment for its employees. The policy applies
across Eurobank's operations,
focusing on enhancing energy efficiency and supporting the use of
energy-efficient equipment.
It is backed by
top management, which
is responsible for providing resources to implement and
improve energy performance.
The
Water Management Policy Statement
outlines its commitment to the responsible management of water use by seeking
the optimal use of natural
resources as part of the
overall
Environmental culture.
The
Environmental
Report
includes
an overview
of environmental
management
system and
an analysis
of environmental
performance. This report covers the operating context, the environmental legislation, targets and performance and personnel
training.
The
Report
applies
across
Eurobank's
operations,
focusing
on
communicating
about
energy
performance
and
setting targets.
Eurobank
recognises
the
importance
of engaging
in close
collaboration
and promoting
dialogue
with
all
stakeholders,
both
natural
and
legal
entities.
Accountable
for
the
implementation
of
the
Report
are
the
Sustainability
Management
Committee,
chaired
by
the
Deputy
Chief
Executive
Officer,
Group
Chief
Operating
Officer
(CΟΟ)
&
International Activities.
The
GHG emissions
Inventory Report
outlines the
best practices
implemented regarding
consistency and completeness
in
the calculation
of the
Bank’s greenhouse gas
(GHG) emissions for
all its facilities
in Greece.
It covers
100% of its operations
and has been prepared in accordance with
the requirements
of the ISO 14064-1:2018 standard.
To
follow
these policies,
the Bank
applies certified
management systems,
in accordance
with international
standards, such
as an Environmental Management System (ISO 14001, EMAS)
and an Energy Management System
(ISO 50001). Through these
certified management
systems, it monitors its performance
and minimises its carbon footprint.
The subject matter
of selected financed impact policies is outlined below:
The
Sustainable Finance Framework
outlines the
Group’s
sustainable lending solutions
offered
to its customers,
specifying
the applied classification
approach and the
activities defined as eligible to access sustainable financing (eligible green
and
social assets). The SFF scope encompasses a wide range of sustainable lending products, covering
both corporate and retail
banking portfolios. The
purpose of establishing the SFF is to provide a clear and comprehensive methodology
for classifying,
monitoring and reporting
sustainable financing.
Eurobank
has drawn
on internationally
recognised industry
guidelines and
principles for the development
of the SFF and is fully committed to being transparent
about its sustainability approach. The
Group Senior Sustainability Officer
(GSSO) holds the highest level of accountability for the
implementation and oversight
of
the policy within the
organisation.
The
Sustainable
Investment
Framework
policy
aims
to
guide
the
integration
of
ESG
factors
into
investment
decisions,
ensuring
alignment
with
long-term
sustainability
goals.
Its scope
includes
both
direct
and indirect
investments
across
all
sectors,
regions,
and
value
chains,
with
exclusions
in
areas
such
as
high-risk
fossil
fuels
and
activities
detrimental
to
biodiversity or
human rights. The
policy applies to
all stakeholders
involved
in the investment
process. Accountability
for its
implementation lies with the
organisation's Group Senior
Sustainability Officer (GSSO).
The
Green
Bond
Framework
outlines
the
principles
and
criteria
for
issuing
green
bonds
to
finance
environmentally
sustainable
projects
that
contribute
to
climate
change
mitigation
and
other
environmental
goals.
Its
general
objectives
include promoting
green investments,
while ensuring
transparency
and accountability in
the use
of proceeds.
The scope
of
the framework
covers both upstream
and downstream activities related to eligible projects, across
global geographies, with
exclusions for projects involving
fossil fuels, or other environmentally
harmful practices. Accountability for
its implementation
lies with the organisation's
Group Senior Sustainability Officer
(GSSO).
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The
purpose
of
the
Sustainability
Risk
Management
Policy
is
to
provide
an
overview
and
a
common
understanding
of
Group’s
main
governance
arrangements,
as
well
as
tasks
performed
by
the
Group
Sustainability
Risk
(GSR)
unit,
in
the
context
of
Group’s
overall
Sustainability
risks
management
activities.
This
policy
additionally
covers
Group’s
main
Sustainability risks management pillars, lists the
key responsibilities of GSR for
the development
and implementation of the
Sustainability risk
framework and describes the quantitative and qualitative
sustainability risks measurement methodologies.
Ongoing dialogue with the Group’s
relevant stakeholders,
as well as close monitoring of the regulatory
framework
and best
market practices, ensure the establishment of a well-defined and robust Sustainability Risk
Management Policy.
Accountable
for
the
implementation
of the
policy
is GSR
and the
policy
is approved
by
Management
Risk Committee
and Board
Risk
Committee.
The
Group Climate
Risk Stress
Test
(CRST) Framework
accommodates a dedicated
governance
structure and
defines the
minimum requirements for designing, executing, approving, and applying
the climate risk stress test. The Framework provides
a transparent
and repeatable
process
for designing
and executing
the climate
risk stress
test, as well
as for
reporting and
evaluating stress test outcomes and determining management actions. The CRST Framework has been developed as per the
overall
Stress Testing
Policy of
the Group,
also taking into
account the
provisions
of the
ECB Guide on
climate-related and
environmental
risks and
the
requirements
of the
2022 ECB
Climate Risk
Stress
Test.
Additionally,
the
Framework
complies
with
other
best
practices
and
supervisory
requirements,
such
as
the
EBA
Guidelines
on
institutions’
stress
testing
(EBA/GL/2018/04).
The
Group
has
developed
an
Environmental
and
Social
Policy
that
sets
the
framework
of
general
principles
and
requirements
for
managing
environmental
and
social
issues.
Through
the
Environmental
and
Social
Policy,
the
Group
achieves and maintains compliance
with existing national
and international environmental and social
legislation/regulations,
as well as with its
commitments, through a standardised Environmental and Social (E&S) assessment approach. Furthermore,
the objective of the Policy
is, inter alia, to ensure timely and accurate reporting to the European Bank for Reconstruction and
Development (EBRD) concerning
the management of the
Group ESMS (Environmental
and Social Management System).
As part of its Environmental and Social Policy,
Eurobank maintains a list of activities that are excluded from
financing, in line
with the exclusion lists
of the EBRD. For all
financing transactions, the Group ensures that
its clients
demonstrate an organised
and
systematic
approach
to
E&S
risk
management
that
complies
with
applicable
local,
national
and
international
environmental,
health
and
safety,
and
labour
legislation
and
standards,
relevant
permits,
as
well
as
public
disclosure
requirements.
The material impacts,
risks and opportunities that the policies
are related to are referenced
above in the table.
Actions and resources in relation
to climate change policies [E1-3]
As climate
change has become
a key
threat
for
the planet
and its population,
the Group
has taken
on an active
role,
with
actions that benefit the environment, for this generation
and the generations to come. To this end, the Group’s Sustainability
Strategy entails commitments to achieve Net Zero both for its physical operations as well as its portfolio through sustainable
financing activities.
The actions taken in Eurobank
Group in Greece as a result of the
Eurobank’s Operational
Impact Strategy for
achieving Net
Zero operational
impact for Scope 1 & 2 by 2033 and for
Scope 3 by 2050, by decarbonization
lever,
are the following:
●
Promote energy efficiency
and self-generation of
electricity (Reduction of Scope 1 & 2 emissions)
o
Action
plan
to
reduce
emissions
from
its
operations
by
optimizing/upgrading
the
energy
efficiency
of
its
buildings. This
includes technical
interventions
(i.e. LED
light fixture
installations, minimum
energy
class of
A+
air
conditioning
and
heat
recovery
ventilation
systems)
as
well
as
system-level
building
upgrades
and
the
replacement of carbon-intensive
sources (i.e. heating oil).
o
Energy self-production
plan consisting of rooftop
photovoltaic
(PV) stations
installed on Eurobank’s
buildings
and standalone PV parks developed
on Eurobank property.
In 2023, 1,203 PV panels were
installed on the roof
of the Nea
Ionia complex and 376 PV
panels were
installed on the
roof of the
Acharnes building.
In 2024, the
self-production
of
energy
from
the
two
rooftop
PV
stations
started.
Specifically,
the
energy
self-production
started in May 2024 in N.Ionia complex and in July 2024 in
Acharnes building. The amount of energy produced
from the
rooftop PV stations
for 2024
is 647.35
MWh for
N.Ionia and 140.52
MWh for
Acharnes .
In 2024, the
environmental licencing
process for
two standalone PV
parks in central
Greece was initiated.
The approval
of
environmental terms and the
application for grid
connectivity are expected to be completed within 2025.
o
Increase procurement
of electricity sourced by Renewable Energy
Sources (guarantees of origin)
Eurobank’s actions regarding the
climate change, are strategically adapted and deployed across our subsidiaries in
Bulgaria,
Cyprus, and
Luxembourg.
For
example, actions
such as
the
upgrade
of branch
offices,
LED lighting
and
installation of latest
generation of HVAC system are implemented. Similar actions
are tailored to
address the specific
local contexts and regulatory environments, they remain firmly aligned with
our overarching corporate sustainability
objectives.
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As
part
of
the
EnMS,
Eurobank
communicates
the
"energy
identity"
of
its
branches
on
a
semiannual
basis.
The
evaluation of each branch's performance
is accomplished by utilising the following:
o
Ranking of the branches
in ascending order
considering the total
energy consumption and
normalized energy
consumption values using the branches surface area and the heating and cooling degree days, in order to take
the impact of meteorological
conditions on the energy
needs for heating and cooling.
o
The
annual change
in energy
consumption in
total and
normalized values
by surface
area. The
absolute and
percentage variation in energy
consumption per surface area
in relation to the average
index for all branches.
In addition, through
the EnMS, monitoring and
analysis of energy
consumption are conducted with
the objective
of
implementing
necessary
technical
interventions
and
management
solutions.
This
process
follows
a
structured
methodology
that
involves
documenting
the
expected
enhancements
in
energy
performance.
To
facilitate
this,
Eurobank
collaborates
with
an
Energy
Services
Company
(ESCO)
under
a
"Shared
Benefit
Energy
Performance
Contract" model, which operates
on the "Pay as you save"
principle.
Eurobank’s
objective
is
the
gradual
energy
upgrade
of
its
real-estate
portfolio
and
issuance
of
green
building
certifications, aiming to reduce
its environmental footprint.
It is shifting towards high-end, modern, environmentally
friendly
buildings,
given
that
such demonstrate
increased
marketability
and market
resilience
as well
as multiple
environmental and social benefits. The Bank is already upgrading prime assets into energy-efficient green buildings,
focusing
on
continuous
improvement
towards
sustainable
development.
Eurobank
has
chosen
green
building
certifications (LEED,
BREEAM, EDGE), aiming to validate the sustainability value of its assets and to demonstrate
its
sustainability performance.
Within
2024, the
new Headquarters
building (Omirou
& Stadiou)
has been
certified with
LEED Gold
(Leadership in
Energy
&
Environmental
Design)
and
increased
the
Bank’s
certified
green
buildings
to
20
(LEED,
BREEAM
certifications).
Certified properties have
been included in the 2023 SBC Yearbook
for Green Buildings.
Green buildings usually
encompass multiple nature
-based characteristics
fostering
the sustainable
transformation
of the built environment and enhancing the resiliency of the asset itself. Location and land use play a significant role
in
creating
sustainable
buildings
improving
access
to
low-carbon
transportation
options,
while
encouraging
walkability and reducing
dependence on
driving. Biodiversity
is also crucial
for the
health and
wellbeing of
people
and our planet. Green buildings promote the
protection of natural
habitats, encourage the
use of biodiverse native
plants
and
green
infrastructure,
and
minimise
the
impact
of
construction
on
ecosystems.
Efficient
utilisation
of
resources
water
is
essential
due
to
its
finite
nature,
and
green
buildings
play
a
crucial
role
in
preserving
and
protecting
this
invaluable
resource.
More
specifically,
encourage
a
holistic
approach
to
building
water
systems,
promoting
not only
water-efficient
strategies,
but also
reuse through
alternative
sources, improved
management,
and potable water quality considerations.
As of
December
2023,
the
Eurobank
Headquarters
were
relocated
to a
new
building in
the
Athens
city centre,
on
Omirou and
Stadiou Street.
The high
functional standards
and bioclimatic
features
of the
Eurobank
Headquarters
significantly improve
the environmental
impact compared to
the previous
Headquarters: The
2024 performance
of
the
new
Headquarters
compared
to the
previous
Headquarters
is: reduction
of GHG
emissions at
59.30%
(374.18
tCO
2
e),
reduction
of
electricity
consumption
at
56.48%
(667,385
kWh
)
and
reduction
of
energy
intensity
(per
employee) at 13.51% .
●
Electromobility (Reduction of
Scope 1 emissions)
Gradual
increase
of
the
share
of
plug-in
/electric
vehicles
in
Eurobank’s
fleet
and
installation
of
EV
recharging
infrastructure at Eurobank’s
buildings.
●
Minimise business travel (Reduction
of Scope 3 emissions)
Measures
to
reduce
indirect
emissions
associated
with
transportation
and
business
travel,
where
feasible,
by
introducing alternative
methods such as teleconferencing.
●
Transition
to cloud (Reduction of Scope 2&3 emissions)
Initiative
for
transitioning
to cloud
computing which
will
result
in the
reduction
of electricity
usage
from
physical
servers.
●
Management Systems & Buildings – Scopes 1, 2, 3
Eurobank
applies
certified
ISO
Management
Systems,
in
accordance
with
international
standards,
such
as
an
Environmental
Management
System (ISO
14001, EMAS)
and an
Energy
Management
System (ISO
50001) with
the
purpose
of
responsible
energy
management
in
all
the
Bank’s
facilities
(all
administration
buildings
/
branches,
covering 100% of its
operations). Implementing these systems has led
to significant reductions in
energy consumption
and greenhouse gas emissions. This aims to
minimise energy costs, the environmental impact of harmful greenhouse
gas emissions and fossil fuel depletion.
Eurobank has
verified its
greenhouse gas (GHG)
emissions in compliance
with ISO 14064-1,
which provides
a framework
for
quantifying and reporting GHG emissions and removals.
By implementing these initiatives, the Bank achieved 5.04% reduction
in purchased electricity consumption, 37.72% reduction
in Scope
1 emissions,
10.16%
reduction
in Scope
2 emissions
and 13.15%
reduction
in Scope
1 &
2 emissions
(surpassing the
4.7% 2024 target in 2024, compared to 2023).
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In order to achieve its Net-Zero
operational impact targets,
the Bank’s planned initiatives
are the following:
●
Maintain and update detailed Operational
Net Zero Action Plan
- SBTi aligned (baseline year
2019) for Scope 1 & 2
(Net-Zero by 2033) and for
Scope 3 (Net-Zero by 2050).
●
Implement
energy
self-production
activities. Energy
self-production
from
rooftop
PV stations
has already
started
during 2024 in
N.Ionia and Acharnes
buildings, while the
procedure
for the
development of
standalone PV Parks
is
in progress (long-term target:
Energy self-production
from standalone PV Parks by 2028).
●
Increase electromobility for
Eurobank’s leased vehicles
(new contracts)
●
Completion of the initiative
“Journey to Cloud” by 2025
●
Attain emissions savings due to data centre modernisation
●
Attain 100% of electricity consumed to be originated from RES by
2028
●
Perform energy
upgrade of buildings
●
Achieve green building certifications
●
Carbon credits (nature-based carbon removal projects
in line with SBTi) for the entirety of natural
gas emissions, up
to 3% of the total Bank emissions (Scope 1, 2) by
2025
●
Design long-term Energy Plan. In 2024, Eurobank’s
energy profiling report
was completed.
Specifically
for
2025,
in the
context of
its EMS
and based
on energy
consumption metrics,
Eurobank
plans to
perform
the
following technical
energy saving actions, to achieve
its energy saving targets:
●
Continuation of the following
actions at all the Eurobank Group’s
new branches and office
spaces in Greece, as well
as all areas where extensive
refurbishment works are
implemented:
o
installation of new LED technology light fixtures
o
installation of
VRF air
conditioning systems
and autonomous
air-conditioning units,
as well
as installation
of
air-cooled water air-conditioning systems, with
a minimum energy class of A+.
o
installation of a heat recovery
ventilation system.
●
Energy audits as part of renovation
works by engineers in the
Technical
Projects Unit.
●
The environmental licensing of standalone photovoltaic
parks is in progress and during 2025 the decision regarding
the approval of environmental
terms and the application
for grid connectivity is expected to be completed.
The
Group
has
integrated
its
Financed
Impact
Strategy
into
its
operations
and
has
made
significant
progress
towards
achieving its targets.
1.
Operationalized its Sustainable Finance
Framework
The
Group
has
developed
governance
structures,
processes
and
tools
that
integrate
identifying
sustainable
financing
opportunities, engaging with clients
on sustainable financing offerings
and the evaluating
financings against the
criteria of
the SFF into the day-to-day operations.
It has, therefore,
increased its capacity to deliver its sustainable financing targets.
Key
elements
include
the
introduction
of
dedicated
roles
for
guiding
relationship
managers
in
engaging
with
clients
on
sustainable financing as
part of the loan
origination processes, as well as an
automated tool that underpins the classification
and evaluation of financings against the approaches
and criteria of the SFF.
It
has
extended
the
sustainable
financing
approach
to
its
retail
business
banking,
leveraging
co-financing
programmes
focusing on sustainability, as
well as introducing dedicated
products tailored to meet specific market
needs
2.
Enhanced its capabilities for
the collection of sustainability risk
data
The
Group
is
continuously
enhancing
its
capabilities
for
the
collection
of
Sustainability
risk
data,
through
integration
of
additional
information
requirements
in
the
credit
process,
as
well
as
cooperating
with
third-party
data
providers.
It
has
implemented a
set of
tools for
identifying, measuring
and managing
sustainability risks,
including the
credit granting
and
monitoring processes.
These are used by
the involved
Units across the Group’s
both 1st and 2nd lines, with the
relevant tasks being performed
in a
collaborative
and efficient
way.
Having already
performed
an assessment
of sustainability
data
availability in
its internal
systems
against
regulatory
requirements
/
expectations,
the
Group
continues
to
enhance
its
sustainability
risk
data
aggregation capabilities
and IT infrastructure
accordingly,
while also using
appropriate
controls
and safeguards
to ensure
the
accuracy
and completeness
of the
compiled information.
The
Group
seeks to
further
improve
environmental
risk data
granularity, through
the allocation of detailed roles
and responsibilities for the purposes of sustainability data management
and
addressing
identified
data
needs
(i.e.,
engagement
with
external
data
providers,
development
of
methodological
approaches for
the estimation of required
information).
3.
Intensified engagement with its counterparties on sustainability
risk mitigation
Aiming to
facilitate
the
green
transition
of
its clients,
the
Group
has developed
a dedicated
approach
to increase
client
engagement and
awareness
regarding
environmental
risks. Besides
the
initiatives
launched
aiming to
build sustainability
literacy and capacity among
its clients (e.g. online events, articles and webinars,
digital academy for businesses), the
Group
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also uses tools to engage with its counterparties in the context of its credit granting and asset management activities, so as
to understand their strategies
and mitigate their sustainability risks exposures.
4.
Introduced sustainable products
Eurobank
has developed
multiple products
that aim
to stimulate
sustainable growth,
including Renewable
Energy Systems
(RES) investments,
energy
saving programmes
for
residential buildings,
and debt
restructuring
programmes
for
vulnerable
groups. Going forward,
it plans to further develop
additional products dedicated to promoting
sustainable practices for
the
Retail portfolio.
5.
Achieved the sustainable financing
targets set as part of its financed impact strategy
For the
third consecutive year,
Eurobank achieved
the sustainable financing targets related
to its corporate portfolio,
set as
part of
its Financed
Impact Strategy.
New SFF-aligned
annual disbursements
exceeded the
20% target
of total
corporate
disbursements, while corporate sustainable
exposures increased from €2.18
billion in 2023 to €2.98 billion
in 2024, posting a
37% year-on-year growth.
More
information
on
the
Group’s
actions
on
climate
change
related
matters
are
detailed
in
the
chapters
“Sustainable
financing and investment offerings”
and “Integration of sustainability in risk management”.
2.2.5
Metrics & Targets
Targets
related to climate change mitigation and adaptation
[E1-4]
Through
its Sustainability Strategy,
the Group’s
overarching
climate-related
target for
its operational
impact is to
achieve
Net Zero emissions by 2033
for Scope 1 &
2 and by
2050 for Scope 3. The interim targets
supporting the Net Zero commitment
are the following:
Reduction in Electricity Consumption and Greenhouse Gas Emissions – Operations
in the Bank
Performance
2023
Target
2024 (%)
Target
value 2024
Performance
2024
Change (%)
Status
Target
2025 (%)
Target
value 2025
Reduction in
purchased
electricity
consumption
(ΜWh)
34,721
-5%
32,985
32,971
-5.04%
Target
achieved
-2%
(1)
33,070
(1)
Reduction of
Indirect GHG
Emissions Scope 1
& 2 (tCO
2
e)
20,807
-4.67%
19,835
18,070
-13.15%
Target
achieved
-2%
17,708
(1
)
The target of 2025 regarding -2% reduction in electricity consumption concerns the total
amount of electricity consumption including purchased
and self-generated electricity (amounted to 33,745 MWh in 2024)
The
targets concern
all Bank’s
office
buildings and
branches
and cover
100% of its
operations.
As presented
above,
during
2024 the electricity consumption
and Scope 1
& 2
emissions have been reduced and
the targets set for reduction
of purchased
electricity
consumption and of Scope 1 & 2 emissions for 2024 have
been achieved.
The Bank’s Financed Impact
Strategy evolves
based on the following
key components:
Portfolio
alignment
Gradual
alignment of
the
Group’s
portfolio
with sectoral
transition
pathways
that
are aligned
with the
1.5°C climate
transition scenario.
●
Net zero strategy
Sectoral decarbonisation targets
covering the
Group’s lending portfolios,
with phased target-setting up to 2050.
The Group
recognises that the
most significant part of
its impact on climate
arises from the
financing it extends to its
clients.
Therefore,
following
its
baselining
exercise
for
2022
–
the
most
complete
and
comprehensive
emissions
measurement it
has achieved so far
– it is now taking the
next step to identifying and disclosing its
first set of sectoral
Net Zero
targets. In doing
so, it aims to
actively support the
decarbonisation policy
agenda and play
a pivotal
role
in
channeling capital
flows towards
the
transition
of key
sectors in
the
short-, medium
-
and long-term.
Specifically,
the
Group
has
initiated
the
process
of
developing
sectoral,
financed
emissions
reduction
targets
based
on
the
NZBA
framework,
for some of the
most carbon intensive and, therefore,
most relevant and impactful sectors and portfolios.
It
approaches its target setting process on a sector/portfolio
basis, to factor in specific elements of the climate transition.
It
also
adheres
to
proven
industry
standards
(e.g.
NZBA,
PCAF)
and
accredited
science-based
decarbonisation
scenarios, in line with a 1.5 degree Celsius objective
by 2050.
Notably,
the Group,
in line with
its commitment
to address
climate change,
has joined the
NZBA, in order
to reinforce
its dedication
to aligning its
lending and investment
portfolios
with net-zero
emissions by
2050 or
sooner,
in line with
the
most
ambitious
targets
set by
the
Paris
Climate
Agreement.
The
Group
is proud
to join
leading
peers
from
the
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banking
industry
in
its
effort
to reach
net
zero
emissions
by
2050
and looks
forward
to engaging
with
its
clients
to
support their
transition
plans.
Even
though
its operational
carbon
footprint
is very
limited compared
to its
financed
emissions,
it
is
also
setting
reduction
targets
for
operational
emissions
under
its
sphere
of
direct
control.
Its
target
setting approach builds on an overarching
framework
that has been guiding its analysis and decisions.
Based on the NZBA framework,
the group has identified its priority,
carbon intensive sectors, representing a significant
proportion of its financed emissions, and is developing
its 2030 emission reduction targets.
●
Sustainable financing
Development of strategies
that will promote
the green transition
of the Group’s
clients through sustainable financing.
The
Group’s
strategic
approach
is
to
support
the
green
transition
efforts
of
its
clients
through
direct
financing and
advisory solutions
for
capital
raising
to current
and potential
clientele. To
this end,
the
Eurobank
S.A.’s
sustainable
financing targets for Greece
are the following:
●
Portfolio
targets:
o
€2 billion in new green disbursements to businesses
by 2025 from a 2022 baseline
o
20% of the annual new corporate
disbursements to be classified as Green / Environmentally
sustainable
o
20% stock of green exposures by 2027 for
the Corporate portfolio.
o
Mobilise €2.25 billion total green RRF funds in the
Greek economy by 2026.
o
No new
investments
in fixed
income securities
(excluding exposures
in Sustainability
/ Green
Bonds) towards
the top 20 most carbon-intensive
corporates worldwide.
●
Sectoral targets:
o
35% of new disbursements in the Energy
sector to be directed to RES financing.
o
80% of new
disbursements related
to construction of new
buildings (CIB portfolio)
to be allocated
with EPC A
and above
o
20% of new disbursements
related to mortgage loans (excluding
"My Home") to be allocated
with EPC B+ and
above
o
Maintain the
same growth
in absolute
terms for
Retail Banking
new green
disbursements (or
more than
50%
increase vs. 2023).
Performance
against financed impact
targets is presented
in the chapter
“Sustainable financing and investment
offerings”.
Following
the completion
of the onboarding
of Hellenic Bank, during 2024,
along with the
upskilling achieved for
the rest
of
International
subsidiaries,
the
Group
aims
to
align
all
entities’
Sustainability
Strategies
to
converge
to
a
Group-wide
Sustainability Strategy in both
pillars.
Energy consumption & mix [E1-5]
According to the energy
review conducted in the context of the
EnMS implementation, the
Energy consumption at Eurobank
occurs from:
●
Burning of natural gas and oil for
heating
●
The use of diesel and -petrol
by vehicles used for
transporting materials between its buildings within
Attica,
●
The use of electricity for
the organisation’s
operations.
The
table
below
outlines
the
total energy
consumed
by
the
Group’s
operations,
along with
the
breakdown
of the
energy
sources used,
including the
share of
renewable and
non-renewable
energy.
By sharing this
information,
The
Group aims
to
provide
a clearer
understanding
of its
efforts
to manage
energy
usage, reduce
carbon
emissions,
and transition
to
more
sustainable
energy
practices
in
line
with
its
broader
environmental
goals.
The
table
below
details
the
Group’s
energy
consumption and mix for the
reporting period.
Unit
2024
Total energy
consumption and mix (including purchased or acquired electricity,
heat, steam, and cooling from
fossil
sources)
(1) Fuel consumption from coal and coal products
MWh
0
(2) Fuel consumption from crude oil and petroleum
products
MWh
5,450
2.1 Fuel consumption from
petrol
MWh
2,922
2.2. Fuel consumption from diesel
MWh
2,243
2.3. Fuel consumption from LPG (Liquefied Petroleum
Gas)
MWh
171
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Unit
2024
Total energy
consumption and mix (including purchased or acquired electricity,
heat, steam, and cooling from
fossil
sources)
2.4 Fuel consumption from heating
oil
MWh
113
2.5 Fuel consumption from other
crude oil and petroleum products
MWh
0
(3) Fuel consumption from natural
gas
MWh
3,457
3.1
Fuel consumption from natural
gas
MWh
3,457
3.3 Fuel consumption from CNG (Compressed
Natural Gas)
MWh
0
(4) Fuel consumption from other
fossil sources
MWh
0
(5) Consumption of purchased or acquired electricity,
heat, steam, and cooling from fossil
sources
MWh
14,522
(6) Total energy
consumption from fossil sources
MWh
23,428
Share of fossil sources
in total energy consumption
%
36%
(7) Total energy
consumption from nuclear sources
MWh
4,862
Share of consumption from nuclear sources
in total energy consumption
%
7%
(8) Fuel consumption from renewable
sources, including biomass (also comprising industrial and
municipal waste of biologic origin), biofuels,
biogas, renewable hydrogen,
etc.
MWh
0
(9) Consumption of purchased or acquired electricity,
heat, steam, and cooling from renewable
sources
MWh
35,904
(10) The consumption of self-generated
non-fuel renewable energy
MWh
1,455
(11) Total renewable
energy consumption
MWh
37,359
Share of renewable sources
in total energy consumption
%
57%
Total energy
consumption
MWh
65,649
In 2024 the
Group’s total
energy consumption
reached 65,649
MWh. Renewable energy
consumption accounted for
37,359
MWh, which represents 57%
of the total
energy consumption,
while 4,862 MWh (7%) was from
nuclear sources (coming
from
Bulgaria’s
national
energy
mix)
and
the
remaining
36%
was
consumed
from
fossil
sources.
This
substantial
sourcing
of
renewable
energy
underscores
The
Group’s
dedication
to
reducing
its
carbon
footprint
and
advancing
its
sustainability
initiatives and will be the key
driver for
achieving annual reductions in the coming years.
The
above
consumptions
have
been
based
on
actual
consumption
data
for
a
10-month
period
of
2024,
while
for
the
remaining 2 months where actual data were not available,
due to timing
constraints, consumptions were extrapolated based
on the same period previous
years. Actual consumption data for the
Bank have been verified according to ISO 14064-1 while
the estimation methodolog
y
has been validated according to ISO14064-2 by an independent certification
body
Energy self-production
is a crucial element of Eurobank’s journey towards
Operational Net Zero.
The relevant project
stream
of the Operational
Impact Strategy includes 2 distinct self-production
initiatives:
●
Rooftop photovoltaic (PV) stations
installed on Eurobank buildings.
●
Standalone PV parks developed on Eurobank
property.
These initiatives are
implemented as cross-unit projects with the
support of dedicated consultants and with regular updates
to
Senior
Management.
The
energy
and
emission
benefits
of
these
projects
are
calculated
in
the
Operational
Net
Zero
transition path
to carbon neutrality for
Scope 1 & 2 by 2033, per the
respective commitments of Eurobank.
Furthermore, the
Group has produced 1,482 MWh of energy.
from renewable sources.
This includes energy produced
from PV
panels in Group’s operations
in Greece, Bulgaria, and Cyprus.
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Gross Scopes 1, 2, 3 and Total
GHG emissions [E1-6]
Eurobank is
committed to reducing
its environmental
footprint
and actively contributes
to the reduction
of greenhouse gas
emissions. As part of this
effort, the Bank closely monitors its operational emissions through the implementation
of a certified
Energy Management System (EnMS) in accordance
with the ISO 50001 standard.
In addition, the Bank applies the International Standard ISO 14064-1:2018 for the quantification and reporting of greenhouse
gas emissions (Category 1-6) as well as GHG removals. The
pertinent correspondence
with the International Standard
“GHG
Protocol Corporate
Accounting and Reporting Standard” (Scope 1, 2 & 3) is also mentioned.
In this
context, energy
consumption is
recorded
and allocated
as well
as the
direct and
indirect greenhouse
gas emissions
are calculated.
Direct emissions
(Scope 1) resulting
from the
Group’s
operations
reflect GHG emissions
released by
burning oil and natural
gas to heat
buildings (Direct
emissions from
stationary combustion),
the use
of diesel and
petrol
by the
Group owned
and
leased vehicles, the petrol used
to power the generators (Direct emissions from mobile
combustion) and the fugitive emissions
from
the
Group’s
air
conditioning
systems
and
the
automatic
extinguishing
systems
(Direct
fugitive
emissions
from
the
release of GHGs in anthropogenic systems).
Indirect emissions
are those
released by
the consumption
of electricity (Scope
2) as well
as other
indirect emissions
(Scope
3)
associated
with
employee
business
trips
(air
travel
and
hotel
stay)
and
employee
commuting,
waste
management,
emissions from
transportation
and distribution
of goods,
capital goods,
purchased good
and services,
emissions from
fuel
and energy related activities and emissions
from cloud computing usage have also been included.
When a
new category
is added,
the amount
for
that category
is added to
the previous
year to
normalise the
baselines for
comparison reasons. The
emissions from new
categories will also be included
in the operational
Net Zero for
Scope 1 & 2 by
2033 and for Scope 3 by 2050 project,
according to the SBTi methodology.
As per
emissions,
the
Eurobank
Group
in Greece
utilises emissions
conversion
coefficients
from
National
Inventory
Report
(NIR) Greece -2024, Renewable Energy Sources Operator & Guarantees of Origin (DAPEEP SA), Department for Environment,
Food &
Rural Affa
irs (UK- DEFRA)
(full set, version
1.0 of 2024), EXIOBASE
(2019 emission factors
for Greece),
BEIS (2021 and
2024
emission
factors
,
Greenview
(2022
emission
factors),
EPA
database
(2022
emission
factors)
and
Global
Warming
Potential (GWP) (2022 emission factors),
as needed for each specific case.
The Bank
verifies the
above greenhouse
gas (GHG) emissions
in compliance
with ISO
14064-1, which provides
a framework
for quantifying and reporting GHG emissions and removals.
The table below demonstrates
the breakdown
of the Group’s
Scope 1,2,3 emissions:
Total
Scope 1,2,3 emissions
Breakdown of Greenhouse Gas
emissions
2024
Gross Scope 1 GHG emissions (tCO
2
e)
3,421
Percentage of Scope 1 GHG emissions from
regulated emission trading
schemes
(%)
0%
Gross location-based
Scope 2 GHG emissions (tCO
2
e)
27,664
Gross market-based Scope 2
GHG emissions (tCO
2
e)
11,050
Total Gross
indirect
(2)
(Scope 3) GHG emissions (tCO
2
e)
75,301
1 Purchased goods and services
37,364
Cloud computing and data centre services
206.54
2 Capital goods
23,420
3 Fuel and energy-related Activities (not
included in Scope1 or Scope 2)
5,924
4 Upstream transportation and distribution
604
5 Waste generated
in operations
550
6 Business traveling
310
7 Employee commuting
7,127
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Breakdown of Greenhouse Gas
emissions
2024
8 Upstream leased assets
0
9 Downstream transportation
0
10 Processing of sold products
0
11 Use of sold products
0
12 End-of-life treatment of sold
products
0
13 Downstream leased assets
0
14 Franchises
0
15 Investments
Please refer to financed emissions
table below
Total GHG emissions
(location-based) (tCO
2
e)
106,386
Total GHG emissions
(market-based) (tCO
2
e)
89,772
(2)
Eurobank Cyprus and Luxemburg is only included in investments emissions (Scope 3 Category 15)
In 2024, the Group’s
total operations-related
GHG emissions reached 89,772
tCO
2
e (market-based) with Scope 1 account
for 4%, Scope 2 (market-based)
13% and Scope 3 83%.
The
calculation
of the
Scope 1
and Scope
2 emissions
was made
using actual
data for
a 10-month
period and
estimated /
extrapolated
data
for
a 2-month
period.
Emissions
for
the
Bank’s operations
(including
the
assumptions
/ extrapolations
approach)
has
been
verified/validated
by
an
independent
certification
body
according
to
ISO14064-1
and
ISO
14064-2
respectively.
The
above
data
may be
modified due
to issuance
of new
version
of emissions
conversion
coefficients
(emissions
factors)
during
2025
from
the
Ministry
of
Environment
and
Energy,
due
to
the
new
climate
law
4936/2022
(Government
Gazette
105/A/ 27.05.2022),
for operations
in Greece, or relevant Laws in the
countries where the
Eurobank Group
operates.
The
location-based
method
reveals
what is
physically
emitted by
the
Group,
while the
market-based
approach
concerns
residual emissions
for
which the
Group
does not
procure
Guarantees
of Origin
(GO’s). 95.66%
of the
Bank’s operations
in
Greece
electric energy
will be
certified
from
Renewable
Sources
(Guarantees
of Origin
will be
acquired during
2025). The
Bank’s have an annual Guarantee of Origins (GOs) contract
with the electricity provider.
The
Group
has
identified
the
significant
Scope
3
categories
for
its
operational
impact,
by
considering
estimated
GHG
emissions
alongside
criteria
outlined
in
the
GHG
Protocol
Corporate
Value
Chain
(Scope
3).
This
identification
process
involved
factors
such
as
financial
spend,
influence,
transition
risks
and
opportunities,
and
stakeholder
perspectives.
The
categories include:
●
Employee commuting and homeworking
●
Business travel (air-travel
and hotel-stay)
●
Transportation
and Distribution
●
Purchased Goods and Services
●
Capital Goods
●
Fuel and Energy related activities
●
Waste disposal and Water
consumption
●
Cloud Computing Usage
Scope 3 emissions totaled
75,301 tCO
2
e for 2024.
When a new category
is added, the amount for
that category is
added to
the previous
year and the base year
to normalise the baselines for comparison
reasons.
Assumptions applied
Eurobank estimates
Scope 1, 2, and 3 emissions by
assuming that historical
consumption patterns can
predict future trends,
allowing
past
data
to
guide
current
and
future
emissions
estimates.
This
approach
presumes
consistency
in
usage
over
comparable
periods,
making
it
especially
useful
for
stable
operations.
In
the
absence
of
historical
data,
Eurobank
uses
average
consumption
from
the
current
year
to
project
future
usage,
assuming
that
current
performance
can
provide
an
accurate forecast.
Where feasible,
the Group
utilises primary / source
data for
the relevant
calculations, either
from its own
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sources
or
by
acquiring
them
from
its
value
chain
stakeholders
(i.e.
suppliers).
When
those
are
not
available,
it
employs
estimations, assumptions and extrapolations
that produce
reasonable outcomes.
These assumptions
enable the
Eurobank Group
to maintain flexibility and accuracy
in its emissions estimation,
adapting to
varying
levels
of
data
availability.
By
doing
so,
the
Group
supports
its
sustainability
goals
and
ensures
compliance
with
environmental
reporting standards, providing
a comprehensive view of its environmental
impact.
Perimeter of Estimation
The emissions estimation
process covers
the entire Eurobank Group
and its subsidiaries, aligning with the perimeter
defined
in the Group's Sustainability Statement. This approach
ensures that all operations
and activities are considered, providing a
comprehensive view of Eurobank's
environmental impact and supporting its commitment
to sustainability.
Contractual instruments
Unit
2024
Contractual instruments used for
the purchase of bundled energy
with attributes about
energy generation
in relation to Scope 2 GHG emissions
MWh
32,282
In 2024 the
Bank continued
to purchase green energy from
Renewable Energy Sources (RES) with
Guarantees of Origin (GOs).
More specifically,
32,282 MWh of electricity was sourced from renewable
sources.
Regarding
its
financed
impact-related
Scope
3
emissions,
the
Group
calculates
and
discloses
its
financed
emissions
(category
15)
following
the
PCAF
methodology,
which
is
based
on
a
revenue-based
approach,
with
emission
factors
estimated
for
each
sector
and
country
through
a
multiregional
input-output
analysis
framework.
Note
that
reported
emissions from Group’s counterparties have
been used where available across Scope 1, 2 and 3. Where one or more reported
scope categories
were
not disclosed /
complete, the
Group has
incorporated
estimated emissions
according to its
internal
methodology,
in line with the PCAF standard.
More specifically,
the Group utilises a waterfall
approach for
the calculation of the
financed emissions:
●
To
the
extent
possible,
published
(reported)
emissions
of
the
counterparties
are
used.
(Option
1
–
Reported
emissions)
●
For sector D 35.11
physical activity based emissions are reported (Option
2 – Physical activity-based emissions)
●
In
all
other
cases
the
scope
1,
2
and
3
emissions
are
calculated
based
on
the
economic
activity
data
of
the
counterparty
(i.e.,
EUR
of
revenue)
and
appropriate
emission
factors
expressed
per
economic
activity
(e.g.,
tCO
2
e/million EUR output of the corresponding
sector). (Option 3 – Economic activity-based emissions.)
The Group
calculates and monitors its financed emissions for
the lending and investment portfolios
within its Banking Book,
while sectoral level financed emissions of its corporate lending portfolio,
is the key method for developing
targets to align its
portfolio with climate transition pathways and set
net zero targets. As
a key step
towards its commitment to
align its portfolio
with 1.5
o
aligned transition
pathways
and set
net zero
targets, the
Group
is in
the
process
of developing
the
first wave
of
sectoral financed emissions reduction
targets, covering the
Group’s lending portfolios,
with the ultimate objective
of setting
2030 targets for
the carbon intensive sectors of its portfolio
and reaching Net Zero by 2050.
Financed emissions
is the
most material
Scope 3 category
for
the Group,
accounting for
> 99% of
the total
emissions, and
are the basis for
its sectoral decarbonisation action
plan.
The Group
discloses financed emissions
for the
lending and investment
portfolio
based on counterparties'
scope 1, 2, and
3
emissions, which total 28.5
million tonnes of CO
2
equivalent (mtCO
2
e) for 2024.
It's noted that fluctuations
in total financed
emissions are expected as companies refine their
estimation methods and market practices
evolve.
Τhe table below presents the breakdown
of the Group’s total
financed emissions between lending and investment activities:
Emission covered exposure
(€mn)
Scope 1&2 (ktCO
2
e)
Scope 3 (ktCO
2
e)
Total emissions
(ktCO
2
e)
Lending
40,938
6,799
16,567
23,367
Corporate
29,364
6,440
16,567
23,007
Retail
11,574
359
-
359
Investments
23,155
2,647
2,470
5,117
Total
64,093
9,446
19,037
28,483
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The majority
of the
Group’s
financed emissions come
from its corporate
portfolio
lending, accounting for
c.81% of the
total,
while Scope 3 financed emissions account for c. 87%
of the total.
Emission covered
exposure (€mn)
Scope 1&2 (ktCO
2
e)
Scope 3 (ktCO
2
e)
Total emissions
(ktCO
2
e)
A - Agriculture
371
388
359
747
C - Manufacturing
4,446
1,975
10,140
12,115
D - Energy
2,800
1,200
216
1,416
F – Construction
1,065
63
694
757
G - Wholesale and retail trade
4,727
1,262
3,104
4,366
H - Transporting and storage
5,645
1,041
1,155
2,196
I – Accommodation
2,915
102
362
464
Other Sectors
7,396
409
537
946
Total
29,364
6,440
16,567
23,007
Regarding
the
corporate
portfolio,
lending
to the
manufacturing
sector has
the
biggest contribution,
c. 53%,
followed
by
wholesale and retail trade, c19%, and transportation,
c. 9%.
Total
GHG Emissions
ESRS Quantitative data / metric
Unit
2024
Total GHG emissions
(location-based)
tCO
2
e
28,589,386
Total GHG emissions
(market-based)
tCO
2
e
28,572,772
Total net revenue
(3)
mn €
3,341
(3)
In alignment with the “operating income”
as disclosed in the consolidated income statement.
In 2024, the Group’s GHG emissions amounted to
28.6 mn tCO
2
e with financed emissions contributing >99%
and operations-
related (Scope 1,2,3) emissions accounting for less than 1%.
Unit
2024
GHG intensity per net revenue
(location based)
tCO
2
e/ mn €
8,557
GHG intensity per net revenue
(market based)
tCO
2
e/ mn €
8,552
GHG removals and GHG mitigation projects
financed through
carbon credits [E1-7]
For
operations-related
emissions,
following
the
Science-Based
Targets
initiative
guidance,
90%
of
the
baseline
year’s
emissions will need to be reduced and the
remaining 10% will be removed
by purchasing Carbon Credits. Currently
there are
no plans
to include
Carbon Removals
across
Eurobank’
s value
chain (upstream
and downstream).
As for
Carbon Credits,
they
will
only
cover
the
remaining
10%
of
emissions,
complementing
Eurobank’s
carbon
reductions
across
its
value
chain.
Carbon
Credits
will
not
be
used
to
show
Carbon
Reductions
across
Eurobank’s
value
chain
and
they
will
not
impede
its
progress
towards
net-zero.
Eurobank’s
Carbon
Credits
are
purchased
from
credible
sources
that
follow
the
latest
quality
standards.
2.3
Biodiversity and ecosystems [E4]
2.3.1
Governance
Eurobank
acknowledges that
it currently
does not
have a
dedicated governance
structure in
place to
address biodiversity
conservation issues comprehensively. However,
recognising the increasing importance of
biodiversity in achieving sustainable
development and mitigating environmental risks, Eurobank is committed to developing a robust governance framework.
This
framework
will
include
clear
policies,
oversight
mechanisms,
and
accountability
structures
to
integrate
biodiversity
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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considerations into its decision
-making processes and business operations.
The development
of this governance
structure is
a priority, and Eurobank
aims to establish it within a defined timeframe to align with emerging
regulatory requirements and
stakeholder expectations.
Meanwhile, Eurobank engages regularly with its stakeholders,
including environmental organisations, regulators,
and clients,
to stay informed about biodiversity
issues and best practices.
2.3.2
Strategy
Material impacts, risks and opportunities and their interaction
with strategy and business model [ESRS
2 SBM-3]
Based
on
the
capability
of
the
financial
sector
to
influence
the
sustainable
use
of
nature
through
its
business
activities,
Eurobank is already
taking appropriate steps to integrate
biodiversity loss in
its operations,
by developing a
corresponding
response
strategy and incorporating
relevant provisions
in its overall
strategy and risk management framework.
Eurobank
is currently
developing a
model for
integrating biodiversity
considerations
into its
overall
strategy,
ensuring that
its financing and investing activities do not have a negative effect
on biodiversity and ecosystems and while also promoting
activities that rehabilitate
and restore ecosystems.
Eurobank recognises
that its physical
operations
have minimal effect
on
biodiversity and is thus developing
a proportional approach.
Eurobank’s strategic
action plan around biodiversity
will evolve
around the following
elements:
●
Risk Assessment: Integrate comprehensive transaction assessments to identify
and understand biodiversity risks and
dependencies using tools like ENCORE.
●
Sector
Analysis:
Focus
on
high
and
medium-risk
sectors,
such
as
agriculture,
forestry,
water
supply,
mining,
and
energy,
and promote measures and financing that
mitigates biodiversity impacts.
●
Sustainable
Finance:
Promote
and
finance
activities
and
projects
that
support
biodiversity
conservation,
rehabilitation of ecosystems and sustainable use of natural
resources.
Considering the
complexity of assessing the
issue of biodiversity
as a risk driver
in relation
to Eurobank’s
business practices
and own operations, given the fact that the
relevant guidance in this field is currently under development, Eurobank is closely
following several
related initiatives
and continues to build its
skills and capacity,
so as to ensure
readiness to appropriately
address such risks, upon the availability of more granular
guidelines and methodologies in this respect.
To identify
business operations
impacting biodiversity,
the Group
conducted a thorough
loan portfolio
analysis (materiality
assessment) to identify the sectors most vulnerable
to biodiversity loss. Utilising the ENCORE tool (Exploring Natural
Capital
Opportunities, Risks,
and Exposure),
the
Group
analyzed sector-specific
dependencies and
impacts related
to biodiversity
loss.
The
ENCORE
tool
facilitates
the
assessment
of
dependencies
on
biodiversity
loss
by
exploring
the
ways
in
which
economic activities rely on ecosystem services and natural capital. Based on the results,
primary economic activities, such as
agriculture and
water supply,
are significantly
more dependent
on ecosystem
services
than other
economic activities,
such
as transportation.
This
is mainly
because the
production
of agricultural
products
heavily relies
on the
use of
groundwater,
surface water,
and animal pollination.
2.3.3
.
Impact, risk and opportunity management
Description of processes to identify and assess
material impacts, risks and opportunities [ESRS 2 IRO-1]
Eurobank
identifies
material
impacts,
risks, and
opportunities
related
to integration
of
sustainability in
risk management
through a comprehensive
DMA. This approach integrates
industry benchmarks, stakeholder insights, and financial relevance
to ensure a robust evaluation
of integration of sustainability in risk management impacts.
During our Double materiality
assessment, the
following risk
associated with Biodiversity
and ecosystems matters has
been
identified:
Direct impact drivers of biodiversity
loss
Risk
Biodiversity loss due to clients’ operations
may lead to financial and reputational damage.
2.3.4 Policies and Actions
Policies related
to the integration
of sustainability in risk management
[MDR-P]
Eurobank
has developed
a set of policies
to guide its actions
on biodiversity,
ensuring that
all business activities
align with
the Group's
commitment to biodiversity
conservation.
Eurobank is
committed to engaging with
stakeholders
by ensuring a
high level of
accountability in policy
development and implementation. Policies are approved by the appropriate Governance
bodies
such
as
the
Board
of
Directors
or
specialized
committees,
which
ensure
that
there
is
alignment
with
the
Group's
strategic goals and stakeholder
interests.
Eurobank main policies that
incorporate biodiversity
issues are:
●
Environmental Policy
Statement: Incorporates
biodiversity
considerations
into environmental
risk assessments
and
decision-making processes.
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●
Sustainable
Finance
Framework: Guides
the
Group
in
aligning
its
financial
activities
with
sustainability
goals,
including biodiversity
conservation by
defining specific criteria
for projects
that support biodiversity
and excluding
activities that might harm the environment.
●
Sustainable
Investment
Framework:
Guides
investment
decisions
to
support
long-term
environmental
and
social
sustainability, including biodiversity
conservation by developing
criteria for investments
that promote biodiversity.
For
more information
regarding the
dedicated policies
please refer
to: 2.2.4 Policies
& Actions
- Policies
related to
climate
change mitigation and adaptation [E1-2]
Actions related to
the integration
of sustainability in risk management
[MDR-A]
Based
on
the
capability
of
the
financial
sector
to
influence
the
sustainable
use
of
nature
through
its
business
activities,
Eurobank is already
taking appropriate steps to integrate
biodiversity loss in
its operations,
by developing a
corresponding
response
strategy
and
incorporating
relevant
provisions
in
the
risk
management
framework.
These
actions
have
been
embedded into the Group’s operating
model in order to ensure that the Group has established actions on an ongoing basis:
According
to the
Group’s
Exclusion
List, activities
prohibited
by
the
laws of
the
host
country or
international
conventions
concerning the protection
of biodiversity or cultural
heritage resources
are excluded from financing.
At
the
same
time,
the
ESG
Questionnaire
that
is
used
by
the
Group
in
the
context
of
the
borrowers’
creditworthiness
assessment includes, inter alia, dedicated questions aiming
to capture the biodiversity loss risk of the Group’s counterparties.
Furthermore, a qualitative
Risk Appetite Statement (RAS) has been introduced in relation
to the environmental risk posed to
biodiversity.
Based on its exclusion list, the Group shall refrain from financing activities prohibited by
host country legislation
or international conventions relating
to the protection
of biodiversity resources.
As
per
the
Responsible
Investment
Policy
document
of
Eurobank
Asset
Management
MFMC,
the
Company
integrates
sustainability
factors
into
the
investment
process.
In
particular,
the
sustainability
analysis
includes
the
assessment
of
environmental
criteria (e.g.
emissions of
greenhouse
gases, exposure
to fossil
fuel and
water
emissions) at
the
level
of the
companies in which the
funds and portfolios
invest. The
events or conditions
that may be responsible
for a negative
impact
on the return
of the fund/portfolio
include environmental
aspects (e.g. carbon emissions,
water pollution,
loss of biodiversity
or damage to ecosystem). The specific sustainability factors considered may vary, as they depend on the
specific investment
strategy followed
by each fund/portfol
io.
Also, through the Climate-Related & Environmental Risks’ Materiality Assessment
has as main
objective to outline the general
methodological approach
by which the Group
assessed the materiality of the
sustainability risks, including biodiversity
loss,
and to demonstrate the exercise's
results.
2.3.5 Metrics & Targets
Biodiversity metrics [MDR-M]
Eurobank is currently in the process
of developing and monitoring biodiversity risk indicators through the ENCORE tool which
classifies sectors
into five
levels:
Very
Low,
Low,
Medium, High,
and Very
High. To
enhance
its approach,
Eurobank
initially
created
a numerical five-level
scale, where
0 represents Very
Low, 1 represents
Low, 2 represents
Medium, 3 represents High,
and 4 represents Very High. For
each subsector, the maximum score from
each subcategory of ecosystem services presented
by the ENCORE tool was used. The average
of these maximum scores for each subcategory was then calculated,
followed
by
the average
per Level 1 NACE sector.
The final scores for
each Level 1 NACE sector were
categorized as follows:
●
0-1: Minor,
●
1-2: Low,
●
2-3: Medium,
●
3+: High.
Biodiversity targets [MDR-T]
Eurobank is currently
in the process of developing
specific targets related to biodiversity
conservation. This initiative
aims to
establish clear, measurable goals that will guide the Group's efforts in mitigating biodiversity risks and enhancing its positive
impact on ecosystems. By setting these targets, Eurobank seeks
to ensure accountability and transparency in its biodiversity
strategy,
aligning
its
operations
with
global
sustainability
standards
and
contributing
to
the
preservation
of
natural
resources for
future generations.
2.4
Integration of sustainability in risk
management [Entity-specific]
2.4.1
Governance
The role
of the administrative,
management and supervisory bodies [ESRS 2 GOV
-1]
The Group applies a model of defined roles and responsibilities regarding
the management of Sustainability risks across the
Three lines of defense,
shaped by the European Central Group's Single Supervisory Mechanism (SSM) 13 expectations related
to climate-related and environmental
risksand considering all relevant guidelines
and regulatory requirements:
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●
1st line
The Business Units (CIB and Retail Banking) are responsible for assessing, managing and monitoring risk levels in all
risk
categories,
including
Sustainability
risks.
The
CIB
Sustainability
Center
of
Excellence
and
the
Retail
Banking
sustainability
coordinators,
are
responsible
for
undertaking
all
relevant
sustainability
and
sustainable
finance
activities. In addition, the role of the
Group Sustainability Unit in the 1st
line includes the responsibility for managing
and coordinating
sustainability strategy
related
issues, the
development
of action
plans for
the
Group's Net
Zero
portfolio
strategies,
the
facilitation
of
the
Sustainability
data
framework
development,
as
well
as
Sustainability
Reporting,
Environmental
& Energy
Reporting (EMAS
Report,
Greenhouse
Gases Emissions
Report
per
ISO14064)
and Sustainability ratings.
●
2nd line
The Group
Risk Management
(GRM) is independent
from the
Business Units and
is fully responsible
for setting
the
risk
strategy
and
risk
appetite
framework,
including
sustainability
risks.
Within
the
GRM,
a
dedicated
Group
Sustainability Risk
(GSR) unit
has been
established, with
the
overall
responsibility for
overseeing,
monitoring and
managing sustainability risks and sustainable financing
activities, in cooperation
with the
other
GRM Units, as well
as with Group Compliance.
●
3rd line
The Group
Internal Audit
(Group IA)
independently reviews
the adequacy
and effectiveness
of the
internal control
framework
in place regarding Sustainability risk management, following
a risk-based approach.
For more information,
please refer to: 1.3.1
The role
of the administrative,
management and supervisory bodies ESRS 2 GOV-
1]
The
GSR has
the
overall
responsibility
for
overseeing,
monitoring and
managing sustainability
risks. More
specifically,
the
GSR
prepares
and
maintains
the
Group’s
Sustainability
risk
management
policies,
processes
and
methodologies,
in
collaboration
with the
Group Sustainability Unit
and the Business
and Risk Units. In
addition, it leads the
development and
implementation of the
Sustainability risk-related framework,
policies and processes, in coordination
with other
units, as well
as acts, monitors and reports
the progress
of the implementation
of the developed
Climate Risk action
plan and reports to
the Board for Sustainability risks matters. In addition, the GSR reviews and challenges
the involved stakeholders as to setting
the Financed Impact
Strategy (including Net
Zero targets), as
well as monitors the
Financed Impact Strategy
(including Net
Zero) and reports financial targets and KPIs. The GSR also
leads the 2nd line independent sustainable lending
re-assessment
process against the Sustainable Finance Framework criteria, including the characterization
of products of the Retail Portfolio
as sustainable.
Reviews
and confirms
the
Risk Assessment
and challenges
the
mitigating
actions
(as per
pre-determined
thresholds). Furthermore,
the GSR develops and maintains the Climate Risk Stress Testing Framework, as well as the scenario
analysis
and
stress
testing
methodologies,
and
coordinates
the
performance
of
sustainability
risk
scenario
analysis
and
relevant stress test exercises
at Group level.
Also, Eurobank enhanced its Governance
Structure and Committees to support the integration
of Sustainability risks:
●
Oversight
of
sustainability
risks
at
management
body
level
through
allocation
of
responsibilities
to
Board
and
management
committees.
Specifically,
Chairman
of
the
SMC
is
the
Deputy
Chief
Executive
Officer,
Group
Chief
Operating Officer
(Group COO) & International Activities.
●
A Board Member is responsible for
climate-related and environmental
risks.
●
Establishment
of
2
Committees
that
supplement
the
governance
arrangements
in
sustainability
risk,
i.e.
Sustainability Management Committee and Climate Risk Stress Test
Committee.
●
Appointment of Group Senior Sustainability Officer
to lead the Group’s
sustainability initiatives.
For more information
please refer to :
1.3.1 The role
of the administrative, management and supervisory bodies [ESRS 2 GOV-
1]
2.4.2
Strategy
Material impacts, risks and opportunities and their interaction
with strategy and business model [ESRS
2 SBM-3]
Eurobank’s strategy,
climate transition plan ( as described in Chapter: 2.2.2)
and business model are closely integrated with
its
Sustainability
Risk
Management
Framework,
which
includes
robust
risk
management
processes
and
tools.
Eurobank
actively
evaluates
the
impact
of
climate
scenarios
on
its
counterparties,
helping
to
identify
climate
transition
financing
opportunities while ensuring resilience
to evolving
environmental and
regulatory risks. This
integration
of sustainability into
the bank's
risk management
practices
strengthens
its competitive
position by
enabling proactive
engagement with
clients
on sustainability-related matters.
It also aligns with regulatory expectations (i.e.
SSM’s 13 expectations on the management
climate-related
and environmental
risks) and supports
the
identification and
mitigation
of potential
financial losses linked
to sustainability risks.
Eurobank’s
risk
management
tools
ensure
comprehensive
assessment
and
monitoring
of
sustainability
risks
across
its
portfolio. While the integration of sustainability
factors may require clients
to provide additional data
and meet sustainability
requirements,
these
measures
safeguard
Eurobank
against
potential
risks
that
could
affect
its
market
perception
and
business model.
By embedding
sustainability considerations
into its
risk management
processes,
Eurobank
not only
meets
regulatory
obligations
but
also
enhances
its
long-term
resilience
and
sustainability,
securing
a
competitive
edge
in
the
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marketplace. This dual approach
of addressing risks and leveraging
opportunities ensures that Eurobank’s
strategy remains
aligned with both its business model and its commitment
to sustainable growth.
Sustainability Risk
management
accounts for
regulatory
guidelines and
expectations,
such as
ECB and
EBA guidelines
on
Climate-related environmental
risks, as well as the market practices. The
Group has developed an implementation roadmap
in alignment
with the
SSM’s 13 expectations
on climate-related
and environmental
risks. For
more information
please refer
to the
Consolidated Pillar 3 Report - 11.1.3
Risk Management
.
2.4.3
Impact, risk and opportunity management
Description of processes to identify and assess
material impacts, risks and opportunities [ESRS 2 IRO-1]
Eurobank
identifies
material
impacts,
risks, and
opportunities
related
to integration
of
sustainability in
risk management
through a comprehensive
DMA. This approach integrates
industry benchmarks, stakeholder insights, and financial relevance
to ensure a robust evaluation
of integration of sustainability in risk management impacts.
Nevertheless,
for
the
identification
and
assessment
of
sustainability
risk
management
the
Group
has
developed
comprehensive processes
that include RIMA,
Risk appetite framework,
and ICAAP.
For more
information, please
refer to the
Consolidated
Pillar
3
Report
-
11.1.3
Risk
Management
and
TCFD
Climate
-
related
&
Environmental
Risk
Report
(Risk
Management)
.
The impacts, risks and opportunities associated with the integration
of sustainability in risk management matters are shown
in the table below:
Integration of sustainability in risk
management
Impact
Negative
Potential
The ESG / climate risk assessment may require
additional effort by
the clients in
order to provide
required ESG data and may result in additional conditions
to
comply with for financial agreements.
Risk
Client hesitance or inability to meet sustainability requirements
may impact
Eurobank's market perception,
potentially affecting its competitive
position and
leading to additional risks.
Opportunity
Integrating ESG in risk management in response
to evolving regulatory
requirements
and business needs improves
Eurobank's resilience
to sustainability-related risks,
safeguarding Eurobank
against potential financial losses, strengthening its overall
risk management framework.
2.4.4
Policies and Actions
Policies related to the
integration of sustainability
in risk management [MDR-P]
Eurobank
has
incorporated
sustainability
risk
aspects
across
all
pillars
of
its
Risk
Management
Framework,
through
the
establishment of
comprehensive
policies and
processes.
It is
among the
Group’s
priorities to
identify,
assess, manage
and
mitigate relevant risks, with a view
towards ensuring alignment with its business strategy,
as well as regulatory and industry
developments.
Group Risk Management Framework
(RMF) and Sustainability Risk Management Policy
The Group
Risk Management Framework
defines the roles and responsibilities
of the Group Risk Management (GRM), which
is
independent
from
the
Business
Units
as
a
2nd
line,
having
full
responsibility
for
the
establishment
of
the
Group’s
Risk
Strategy and Risk Appetite
Framework, as well as for monitoring all risks assessed as
material through the Risk Identification
and Materiality Assessment (RIMA) process,
including climate-related and environmental
risks undertaken by the
Group. For
more information please
refer to the
Group’s “TCFD
Climate - related & Environmental
Risk Report
”.
In
accordance
with
relevant
supervisory
expectations
and
the
Group’s
enhanced
governance
operating
model
for
the
incorporation of
sustainability risks across
the Three
lines of defense, new
roles and responsibilities
regarding sustainability
risk management have
been embedded into the Group
Risk Management Framework.
In addition, Eurobank
has developed
its Sustainability
Risk Management
Policy,
which aims
at fostering
a holistic
understanding
of the
effects
of sustainability
risks
on
its
business
model,
as
well
as
supporting
decision-making
regarding
these
matters
and
providing
a
robust
governance under
its Risk Management Framework.
Collateral Valuation
Policy
Eurobank
has refined
its Collateral
Valuation
Policy
(CVP) to
specify accepted
collateral
types and
valuation
procedures,
while integrating assessments of climate-related
and environmental risks. This involves
collecting pertinent information
such
as Energy
Performance
Certificates
(EPCs)
and incorporating
forward-looking
estimates
of natural
hazards.
The
updated
Policy
will also
consider broader
climate-related
and environmental
factors, such
as waste
management and
accessibility,
to enhance valuation accuracy and risk management.
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Credit Policy Manual
The
Group’s
credit policy
manual has
been updated
to integrate
sustainability-related
risks by
incorporating
climate
and
environmental factors
into credit risk management practices,
aligning with the SSM's expectations.
Group Environmental
and Social Policy
In this
context, the
Group has
developed
an Environmental
and Social Policy
that sets
the framework
of general
principles
and requirements
for
managing environmental
and social
issues. Through
the
Environmental
and Social
Policy,
the
Group
achieves and maintains compliance
with existing national
and international environmental and social
legislation/regulations,
as well as with its commitments, through a standardised
E&S assessment approach. Furthermore,
the objective of the
Policy
is,
inter
alia,
to ensure
timely
and accurate
reporting
to
the
European
Bank for
Reconstruction
and
Development
(EBRD)
concerning the management
of the Group ESMS.
As part of its Environmental and Social Policy,
Eurobank maintains a list of activities that are excluded from
financing, in line
with the exclusion lists
of the EBRD. For all
financing transactions, the Group ensures that
its clients
demonstrate an organised
and
systematic
approach
to
E&S
risk
management
that
complies
with
applicable
local,
national
and
international
environmental,
health
and
safety,
and
labour
legislation
and
standards,
relevant
permits,
as
well
as
public
disclosure
requirements.
The ESMS process
consists of client/activity environmental and social risk screening,
risk assessment process, decision
of risk
control approach
and ongoing performance
monitoring.
Know-Your-Customer
(KYC) and Anti-Money Laundering/Terrorist
Financing (AML/TF) policies and processes
Eurobank has established Know
-Your-Customer
(KYC) and Anti-Money Laundering/Terrorist
Financing (AML/TF) policies and
standards, which
are designed
to provide
safeguards against,
inter alia,
fraud and
cooperation
with clients
with increased
financial crime risk (i.e. risk of involvement
in money laundering and terrorist
financing).
Within the scope of customer KYC profiling, Eurobank applies enhanced due diligence measures upon establishing a business
relationship and
when carrying
out transactions
with natural
or legal persons/entities who
are classified as
high-risk as per
Eurobank’s relevant
internal processes.
Climate Risk Stress Test
Framework
The
Framework
provides
a transparent
and repeatable
process
for
designing and executing
the
climate risk
stress test,
as
well as for reporting
and evaluating stress test outcomes and determining
management actions.
For more information,
please refer to
Consolidated Pillar 3 Report - 11.1.3 Risk Management
and
TCFD Report-
Sustainability
Risk Management Tools
& Processes
.
Actions related to the integration
of sustainability in risk management [MDR-A]
The Group has developed the following processes and tools for the monitoring and management of
sustainability risks. These
processes have been embedded into the
Group’s operating
model and are performed
on an ongoing basis in the context of
continuous sustainability risk management:
Risk Identification and Materiality Assessment
(RIMA) process
The Risk Identification and Materiality Assessment (RIMA) process sets the appropriate mechanisms to identify, measure and
monitor risks at
an early
stage, as well
as to manage
their potential
impact on the
achievement
of the
Group’s
objectives.
Through the
RIMA process, the Group
identifies material risks that could potentially have a significant adverse
impact on its
financials, capital base, liquidity position or business model, as well
as any exposure to possible emerging risks.
As sustainability risks
interact with other risks and result in direct
distributional impacts and indirect
macroeconomic impacts,
the
Group
understands
that
careful
consideration
of
the
cross-cutting
nature
thereof
is
necessary
to
ensure
the
optimal
implementation
of adaptation
activities. As
such, the
Group
considers
sustainability risks
as drivers
of existing
risk types,
undertaking
a
holistic
and
systemic
approach
when
examining
the
complex
links
between
sustainability
risks
and
both
financial
and
non-financial
risks.
Eurobank
has
integrated
sustainability
risk
elements
into
its
existing
risk
management
processes, creating additional
procedures, policies
and tools so that these risks can be properly
identified and measured.
Sustainability
Risk
Data
The
Group
recognises
the
importance
of
relevant
and
reliable
data
for
the
provision
of
meaningful
insights,
suitable
for
decision-making purposes. Having already performed an assessment of sustainability data availability in its internal systems
against
regulatory
requirements/expectations,
the
Group
continues
to
enhance
its
sustainability
risk
data
aggregation
capabilities and
IT infrastructure
accordingly,
while also using
appropriate
controls
and safeguards
to ensure
the accuracy
and
completeness
of
the
compiled
information.
The
Group
seeks
to
further
improve
sustainability
risk
data
granularity
through allocating detailed roles and responsibilities, for the purposes of
sustainability data management and implementing
approaches for
addressing data needs
(i.e. engaging with external
data providers,
developing methodological
approaches
for estimating required
information).
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Risk appetite
The
Group
articulates its
risk appetite
through
a set
of qualitative
and quantitative
statements with
respect to,
inter alia,
solvency,
liquidity, profitability,
asset quality and
other
areas related
to material
risks. The
purpose of these
indicators and
thresholds
is
to
facilitate
the
assessment
of
whether
the
Group
is
operating
within
its
defined
risk
appetite
levels.
The
outcome of
this process
is the
Risk Appetite
Statements (RAS)
document, whereas
the principles,
process
and governance
aspects related to the
RAS are outlined
in the Risk
Appetite Framework (RAF). The RAS are complemented
by a set
of Business
Line Statements (BLS), which constitute operational
metrics (and limits) at the business level
where the risks are
undertaken.
Moody’s Risk Analyst (MRA) model
The Group’s MRA Model assesses the CIB borrowers’
credit profile based on qualitative and quantitative criteria. Specifically,
the “Risk of Adverse Events” criterion assesses a client’s vulnerability to adverse developments or business interruptions, fines,
litigation and negative publicity, stemming, among others,
from environmental parameters
and social issues (e.g. health and
safety of customers).
Climate Risk Scorecard
In line
with leading
market practices,
as well
as taking
into account
supervisory requirements/expectations
with regard
to
establishing an approach for further assessing clients with
higher climate risk exposure, the Group has
developed the Climate
Risk Scorecard for
considering climate-related and environmental
risks.
In this context, an assessment
process based
on the Climate
Risk Scorecard
is performed
for all new
financing transactions,
limit increases and limit renewals (existing and new clients), initially applied to the Group’s
Corporate & Investment Banking
(CIB)
portfolio.
The
Climate
Risk
Scorecard
comprises
a
modular
questionnaire
which
includes
targeted
climate
risk
and
sustainable financing related questions, both qualitative and quantitative, capturing the following key dimensions: transition
risk, taxonomy aligned activities,
physical risk, sustainable financing, emissions,
strategy,
climate & environmental
incidents,
transition-green technology.
Interbank ESG Questionnaire
In recent years, the banking sector has faced
increased regulatory focus on ESG matters. Banks are now required
to improve
their credit
risk assessment
processes
to better
identify and evaluate
climate-related
and environmental
risks. In response,
the Hellenic
Bank Association
(HBA) and
major Greek
banks have
launched an
initiative
to create
a unified
Interbank ESG
Questionnaire
for
their
clients. This
questionnaire
aims to
standardize the
assessment
of ESG
factors
across
Greek banks,
ensuring compliance with regulatory expectations and international guidelines (e.g., EBA Guidelines, ECB's
climate risk guide,
and TCFD recommendations).
This process has been adopted by
the Group’s
entities in Greece and Cyprus as of 2024.
ESG Risk Assessment
Eurobank
has
developed
an
ESG
Risk
Assessment
by
combining
its
Climate
Risk
Scorecard
with
the
Interbank
ESG
Questionnaire. This comprehensive
approach helps assess and classify the
Group's clients based on ESG criteria, in line with
regulatory requirements.
Eurobank
uses an internal
ESG Risk Scoring
method, resulting
in one of
three ESG
risk categories:
High, Medium, or Low.
This assessment informs
credit decisions, considering ESG risks,
potential mitigation actions,
and due
diligence. The overall
approach aligns with Eurobank's business strategy,
enhances ESG risk awareness, supports sustainable
financing, and ensures compliance with the
Group's risk appetite and credit policies.
This process has been fully
adopted by
the Group’s
relevant entities in Greece and is gradually
being introduced into other
countries.
In 2025,
the similar
processes
and tools
for
the
monitoring and
management of
sustainability risks
will be
incorporated
in
Cyprus and Bulgaria.
2.4.5
Metrics & Targets
Sustainability risk management metrics [MDR-M]
Through
the
processes
described
above,
the
Group
monitors
its
performance
on
sustainability
through
the
metrics
and
indicators demonstrating the
sustainability risk level of its counterparties.
In
addition,
key
indicator
for
the
Group
is
the
allocation
of
its
portfolio
to
high
climate
impact
sectors
and
clients.
The
respective distribution
for 2024 is
presented in the
table below.
No external body other
than internal assurance
is provided
for the below
information.
2024 exposure
Loan exposures to sectors with high transition
risk in Group’s portfolios
bn €
24.9
Bond and share exposures to sectors that highly contribute to climate
change
bn €
1.4
Exposures towards the
top 20 most carbon intensive counterparties globally
in Group’s trading and
banking portfolios
mn €
31
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Sustainability risk management targets [MDR-T]
The Group
has achieved its
key Risk
Appetite Statement (RAS)
for at
least 20% of the
annual new CIB
disbursements to be
classified
as
green
/
environmentally
sustainable
loans,
by
applying
the
methodology
and
criteria
set
in
the
Group’s
Sustainable Finance Framework,
which outlines the
eligible approaches
and activities that
can be classified
as sustainable,
demonstrating the Group’s
commitment towards green transition.
In addition, the Group has demonstrated progress
in against the following areas which have been set as qualitative targets:
●
Significant progress in the
integration of sustainability risks in its Three
lines of defense Model
●
Incorporation of climate risk elements in
the Remuneration Policy (Please refer to “Integration of sustainability-related
performance in incentive
schemes [ESRS 2 GOV-3]” for
more information)
●
Deployment
of
the
ESG
Questionnaire,
which
has
been
developed
at
interbank
level
with
the
coordination
of
the
Hellenic Bank Association
●
Integration
of
the
ESG
Risk
Assessment
process,
a
combination
of
the
internal
Climate
Risk
Scorecard
and
the
Interbank ESG Questionnaire
●
Assessment
of
sustainability
risks
through
Sectoral
Analysis
and
forward-looking
Scenario
Analysis,
as
part
of
the
TCFD report (For
more information please refer
to:
“ TCFD Climate-Related & Environmental
Risk Report”
)
●
Alignment of its Risk Appetite with the articulated
Sustainability Strategy
●
Incorporation of climate risk aspects in collateral
valuation
●
Publication of the TCFD
Climate-Related & Environmental Risk Report
●
Performance
of
training
sessions
for
its
employees
in
relation
to
Climate
Risk,
ESG
Risk
Disclosures
and
ESG
Risk
Assessment
●
Further
integrate
climate
risk
regulatory
requirements
into
its
business
strategy
and
risk
management
framework,
leveraging
on key initiatives:
o
Governance, policies
and control framework.
o
Climate risk modelling and data management.
o
Commercial strategies/sector
policies.
o
Eurobank S.A. and its subsidiaries aim
to implement climate risk and
environmental action plans by 2025. These
initiatives are designed to ensure full alignment
of policies, actions, and
strategies across Eurobank Greece and
its subsidiaries, fostering a cohesive
and unified approach to achieving organizational
objectives.
2.5
Sustainable financing and investment offerings
[Entity-specific]
2.5.1
Governance
The role
of the administrative,
management and supervisory bodies [ESRS 2 GOV
-1]
Aiming to implement the Sustainability Strategy, the
Group has appointed a Group Senior Sustainability Officer responsible
for
the
implementation
of
the
Group’s
Sustainability
Strategy
and
engaging
the
following
committees
that
actively
contribute to
the
promotion
of sustainable
financings and
investment
offerings
and their
integration
into the
day-to-day
operations of the
Group:
●
Sustainability Management Committee (Sustainability
ManCo): Acts as
the final approval body, inter alia with
regards
to the inclusion
or substitution of
Eligible assets of the
Green Bond Portfolio,
and to the
update of the
annual Green
Bond Report.
The
Committee
approves
the
Sustainability
Frameworks
(e.g. Sustainable
Finance
Framework,
Green
Bond Framework,
Sustainability Policy Framework
and Sustainability Investment Framework)
●
Group
Asset
and
Liability
Committee
(G-ALCO):
Within
the
context
of
the
approved
investment
framework
for
corporate/FI bond portfolio,
reviews the relevant
portfolio limits annually.
As far
as the
Group Sustainability
Risk (GSR)
Unit is concerned,
it has the
overall
responsibility for
overseeing,
monitoring,
and
managing
sustainability
risks.
More
specifically,
the
GSR
leads
the
2nd
line
independent
sustainable
lending
re-
assessment process against
SFF criteria, including the characterisation
of retail portfolio
products as sustainable. Also, GSR
is responsible for the
assessment the sustainability features
of new loans/products according
to the SFF criteria.
Regarding the Business
Units CIB and Retail
Banking, are primarily involved
in executing all sustainable financing activities,
including
the
implementation
of
the
Financed
Impact
Strategy.
Key
responsibilities
are
classified,
inter
alia,
under
the
following
3 main categories:
1.
Sustainability
Strategy:
Executing
and
monitoring
financed
and
specific
operational
sustainable
goals
and
performance targets
in line with the Net Zero
Strategy.
2.
Sustainable
Financing/Funding
and
Investments:
Identifying
sustainable
financing
opportunities
and
designing
relevant
solutions
and
sustainable
products.
Performing
the
sustainable
financing
assessment,
in
line
with
the
Sustainable
Finance
Framework.
Implementing
and
monitoring
the
Sustainable
Investment
and
Green
Bond
Frameworks.
3.
Sustainability
Risk
Management:
Performing
the
ESG
Risk
Assessment
and
formulating
mitigation
action
plans,
where required.
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Dedicated functions, namely the Sustainability Centers of
Excellence (CoE), within the Business Units
(Corporate & Investment
Banking and Retail
Banking) are responsible for
assessing, managing
and monitoring risk
levels in all
risk categories, including
Sustainability risks.
The
Head of
CIB Sustainability
CoE is
responsible
for
overseeing
sustainable financing
activities, while
two Retail
Banking Sustainability
Coordinators (Business
and Individual
clients respectively)
are responsible
for
organising
and supporting sustainable-related activities.
Also, Group Compliance’s key roles
and responsibilities regarding sustainable financing and investment offerings include the
Regulatory Compliance:
o
Monitors the regulatory environment
and emerging trends
around sustainable financing
o
Monitors the alignment of
the Group’s activities with applicable laws, rules,
regulations and standards, including
sustainable finance regulatory aspects.
2.5.2
Strategy
Material impacts, risks and opportunities and their interaction
with strategy and business model [SBM-3]
The
Group
acknowledges
that
sustainable
development
is
key
to
prosperity.
To
this
end,
its
commitment
to
support
the
transition
to a
greener
economy by
offering
financing solutions
that foster
growth,
and sustainable
development
is at
the
core of its Financed Impact Strategy.
Leveraging
on tools and enablers, such as the Sustainable Finance Framework,
the Group’s strategic
approach is to support
the
achievement
of
the
sustainability
objectives
through
financing,
advisory
and
capital
raising
solutions
to
current
and
potential clientele.
Sustainable financing is at the
core of the
Bank’s Financed Impact Strategy,
guiding the approach
of offering
products and
services
that
support
green
transition
and
social
investments.
This
strategy
emphasises
driving
positive
sustainability
outcomes by
not only
financing projects
that contribute
to environmental
and social progress
but also incentivizing
clients
to improve
their sustainability performance.
Through
these sustainable financing
offerings,
the Group
seeks to create long-
term
value for
both
its stakeholders
and society,
aligning with
broader
climate
and social
goals.
By focusing
on financed
impact, Eurobank ensures
that its investments have
a measurable and positive
effect on sustainability.
In line with its commitment to address climate
change, the Group has joined
the Net-Zero
Banking Alliance (NZBA), a bank-
led, UN-convened
alliance of
banks worldwide,
reinforcing
its dedication
to aligning
its lending
and investment
portfolios
with net-zero
emissions by 2050
or sooner,
in line with
the most ambitious
targets set by
the Paris
Climate Agreement.
Key
enabler towards this commitment
is the promotion
of sustainable finance that will enable the
green transition of its clients.
However,
there are challenges associated
with sustainable finance, including the risk that
some products may not fully meet
globally recognised
sustainable finance
criteria, which could
lead to perceptions
of greenwashing
and damage Eurobank’s
credibility.
In addition,
evolving
market preferences
and regulatory
shifts may
impact the
demand for
sustainable finance,
posing risks to Eurobank’s current
product offerings.
Despite these risks, there
are clear opportunities for growth
by aligning
green
and
social
investments
with
climate
transition
requirements
and
changing
consumer
preferences.
This
approach
enhances Eurobank’s
brand
reputation,
attracts
sustainability-conscious
investors,
and positions
the
Group
as a
leader
in
responsible finance, ensuring that its business model
remains resilient and forward
-looking.
2.5.3
Impact, risk and opportunity management
Description of processes to identify and assess
material impacts, risks and opportunities [ESRS 2 IRO-1]
Eurobank
identifies
material
impacts,
risks,
and
opportunities
related
to
sustainable
financing
and
investment
offerings
through a comprehensive
DMA. This approach integrates
industry benchmarks, stakeholder insights, and financial relevance
to ensure a robust evaluation
of sustainable financing and investment offerings
impacts.
The
impacts, risks
and opportunities
associated with
sustainable financing
and investment
offerings
matters
are shown
in
the table below:
Sustainable financing and investment offerings
Impact
Positive
Actual
Eurobank provides
sustainable finance products and services
that promote green
and
social investments and incentivise improvement
of its clients’ ESG performance
.
Risk
Evolving market preferences
and regulatory shifts may impact the demand for
sustainable finance, posing risks to Eurobank's existing
product offerings.
Opportunity
Promoting green and social investments
in line with requirements to support climate
transition and in response to changing consumer
preferences
enhances Eurobank's
brand reputation, attracting
sustainability conscious investors.
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2.5.4
Policies and Actions
Policies on sustainable financing and investment
offerings [MDR-P]
The Group
has approved
and implements as
part of the
operationalization
its Sustainable Finance
Framework
(SFF), which
encompasses
a
wide
range
of
sustainable-green
lending
activities
and
supports
the
identification
and
classification
of
sustainable-green
financings,
covering
both
Corporate
and
Retail
banking
portfolios.
Eurobank
developed
its
SFF
in
accordance
with internationally
recognised industry
guidelines and
principles. In
addition, Eurobank
developed
and made
publicly
available
its
Green
Bond
Framework.
This
framework
facilitates
Eurobank
in
order
to
meet
its
environmental/sustainability commitments and finance
projects that will deliver environmental
benefits to the economy and
support Eurobank’s
business
strategy
and vision.
Furthermore,
Eurobank
approved
its Sustainable
Investment
Framework,
which outlines Eurobank’s available sustainable investment
approaches/strategies,
the selection of eligible investments
and
the monitoring
frequency of
the sustainable
portfolio
(the sustainable
portfolio
is part
of Eurobank’s
investment
portfolio).
Eurobank is
committed to engaging with
stakeholders
by ensuring a
high level
of accountability in policy
development
and
implementation. Policies
are approved
by the appropriate
Governance bodies such as
the Board of Directors
or specialized
committees, which ensure that there
is alignment with the Group's
strategic goals and stakeholder
interests.
More specifically:
●
Through
the
SFF
Eurobank
is
able
to
classify
sustainable
lending
solutions
offered
to
its
customers,
specifying
the
applied classification
approach
and the
activities defined
as eligible
to access
sustainable financing
(eligible green
and social assets).
The SFF scope encompasses a
wide range of sustainable
lending products, covering both wholesale
and retail
banking portfolios.
The
SFF also
incorporates
the
assessment process
of the
EU Taxonomy
for
which the
Group
pursues Taxonomy
-alignment
of financings
on a
best effort
basis.
The
purpose of
establishing the
SFF
is to
provide a clear
and comprehensive
methodology for
classifying, monitoring and reporting sustainable financing.
The
policy applies to all financial transactions, excluding certain activities deemed
incompatible with sustainability goals,
such as
fossil
fuel
extraction
or high
carbon-intensive
projects.
It covers
the
entire
value chain,
both
upstream
and
downstream.
Key
stakeholder
groups
affected
include
investors,
customers,
and
communities
within
operational
regions.
The
Group
Senior
Sustainability
Officer
(GSSO)
holds
the
highest
level
of
accountability
for
the
implementation and oversight
of the policy
within the
organisation. The
SFF draws from
guiding frameworks
such as
the LMA principles for loans – Green Loan Principles, Sustainability-Linked Loan Principles as well as the EU Taxonomy
Climate Delegated Act. For
more information please
refer to:
Sustainable Finance Framework
.
●
The Sustainable Investment Framework (SIF) aims to classifying investments as
sustainable based on
criteria observed
in
international
market
practices.
Eurobank’s
SIF
outlines
Eurobank’s
potential
sustainable
investment
approaches/strategies,
the process
for selecting
eligible investments,
as well
as the
monitoring frequency
regarding
the
sustainable portfolio.
Its scope
includes the
bond investment
portfolio,
for
both
direct and
indirect investments
across
all
sectors,
regions,
and
value
chains,
with
exclusions
in
areas
such
as
high-risk
fossil
fuels
and
activities
detrimental to biodiversity
or human rights. The
policy applies to all stakeholders
involved in
the investment
process.
Accountability for its implementation
lies with the organisation's
Group Senior Sustainability Officer
(GSSO).
●
The
Green
Bond Framework
(GBF)
assists Eurobank
in meeting
its environmental/
sustainability commitments
and
finance projects that will deliver
environmental benefits to the
economy and support its business strategy and vision.
The Green
Bond Framework
is developed
in accordance
with global
best practices
and standards and
considers EU
Taxonomy
eligibility criteria to classify potential investments as green.
The Framework
defines the eligible assets and
associated
criteria,
the
use
of
proceeds,
the
process
for
project
evaluation
and
selection,
the
management
of
proceeds,
as well
as the
relevant
reporting obligations.
Its general
objectives include
promoting
green investments,
while
ensuring
transparency
and
accountability
in
the
use
of
proceeds.
The
scope
of
the
framework
covers
both
upstream
and
downstream
activities
related
to
eligible
projects,
across
global
geographies,
with
exclusions
for
projects involving fossil fuels, or other environmentally
harmful practices. The Sustainability ManCo approves the GBF.
Accountability for
its implementation lies
with the
organisation's GSSO.
The Green
Bond Framework
has obtained a
Second Party
Opinion (
Green Bond Framework
-
Second Party Opinion
) for
its alignment with
the ICMA
Green Bond
Principles (GBP) and the EU Green Bond Standard (GBS).
)
For
more information
regarding
Policies
related
to Financial
Inclusion please
refer
to: “3.2.2: Policies
related
to consumers
and end-users [S4-1]”.
Actions on sustainable financing and investment offerings
[MDR-A]
The
Group
takes
key
actions
to
promote
sustainable
financing.
These
processes
have
been
embedded
into
the
Group’s
operating
model in
order to
ensure that
the Group
provides
continuous sustainable
financing and investment
offerings
on
an ongoing basis:
Net-Zero Banking Alliance (NZBA) Commitment
Key element of the Group’s NZBA commitment is the establishment of sectoral decarbonisation targets covering the Group’s
lending portfolios,
with phased
target-setting up
to 2050.
The
promotion
of sustainable
financing that
will enable
client’s
transition is the
key enabler towards achieving
those targets.
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Sustainable Finance Framework
Eurobank’s SFF defines four
classification approaches
for classifying its financing and investing activities as sustainable:
●
Dedicated-purpose
– Green/Social
loans:
Project-specific
loans or
financing instruments
whose use
of proceeds
is
100% directed
towards eligible
green /
social activities.
The
SFF defines
the eligible
activities (for
the wholesale
and
retail
portfolios)
along with
the
applicable
eligibility and
exclusionary
criteria
that
need
to be
fulfilled.
The
eligible
areas
and
activities
include
energy
efficiency,
renewable
energy,
clean
transportation,
green
buildings,
pollution
prevention and control, and circular economy regarding the
green activities, and economic inclusion, affordable basic
infrastructure,
access to
essential services,
affordable
housing, food
security and
sustainability regarding
the
social
activities.
●
General-purpose – Company
business mix:
Financing to companies that
fulfil the eligibility
green/social criteria and
derive their revenue
from eligible activities. Specifically, companies are
eligible under the business mix category when
they derive
a minimum predefined percentage of their
total revenue
from eligible activities.
●
General-purpose
–
Sustainability-linked
loans/facilities:
The
second
type
of
general-purpose
lending
adopted
relates
to Sustainability
Linked
Loans
(SLL). The
purpose of
SLLs
is to
enable and
accelerate
the
ESG
transition
of
clients. Through SLLs, Eurobank
provides ESG-related
incentives to its clients, by offering
products (loans, bond loans,
etc.) with terms
linked to ambitious
and predefined
Sustainability Performance
Targets
(SPTs).
The SPTs
are specific
targets that aim to improve
the ESG performance
of the client.
●
Recovery
and Resilience
Facility-based
approach:
Activities approved
through
the
Greek Recovery
and Resilience
Facility, contributing to the
green pillar.
Sustainable Finance Framework
Assessment Tool
Eurobank
has
developed
a
web-based
SFF
Assessment
Tool.
Integrated
within
its
core
systems,
for
the
CIB
portfolio,
to
underpin the classification and evaluation of sustainable/green
financing opportunities in a structural manner, as part of the
loan
origination
process.
The
SFF
Assessment
Tool
is delivered
through
an online
platform
a workflow
-based
application
which automates the process
of assessing the Group’s
financing solutions against the
criteria defined in the SFF.
Sustainable financing products
●
ESG programme for
hotels
Eurobank supports the
tourism industry's sustainability through two ESG programmes
for hotels:
1.
"Doing
Business
Sustainably
in
Tourism":
Offers
incentives
to
existing
hotel
borrowers
who
meet
sustainability
targets, catering to both
advanced and beginner hotels in ESG.
2.
“Constructing
Sustainably
in
Tourism":
Provides
incentives
for
new
hotel
projects
or
upgrades
that
meet
environmental construction standards.
●
ESG Deposits
Eurobank was the first Greek bank to offer ESG Deposits to its corporate clientele, and continues to offer this product,
allowing
its
clients
to
contribute
to
sustainable
development
projects.
The
amount
raised
from
ESG
Deposits
is
allocated to financing green and sustainability linked loans,
in agreement with Eurobank’s
SFF.
●
ESG-focused mutual criteria
Eurobank
has
introduced
the
LF
FoF
–
ESG
Focus,
a
mutual
fund
that
invests
in
shares
and
bonds
based
on
ESG
(Environmental,
Social, and Governance)
criteria. The
fund features
a diversified
portfolio
of equities and bonds that
adhere to ESG principles.
●
Green Mortgage Loans
Eurobank
has played
a key
role
in energy
-saving initiatives
in Greece,
, particularly
through
its participation
in the
Exoikonomo
programmes
since
2011,
which
support
the
energy
upgrade
of
private
homes.
In
2024,
the
Group
continued to solidify its
presence in green mortgage loans
by participating in Exoikonomo 2021, and Exoikonomo 2023
development
programmes
funded
by
the
EU's
Recovery
and Resilience
Facility.
The
programme
offer
interest
rate
subsidies, state
loan guarantees,
grants, and
other
support for
households making
green improvements
like energy
efficiency
upgrades
and
smart
home
automation.
For
those
not
eligible
for
Exoikonomo,
Eurobank
offers
a
Green
Mortgage
Loan
to
finance
energy-efficient
home
improvements,
such
as
installing
solar
panels
or
upgrading
insulation. Through
these efforts,
Eurobank
aims to help
Greece meet
its environmental
goals by
offering
accessible
green financing solutions for homeowners. In addition, initiatives related to the provision of green mortgage loans are
also in place in Group’s operations
in Bulgaria, as well as, in Cyprus.
●
Photovoltaic SB Loans
Eurobank offers
Photovoltaic SB
Loans to small businesses for
investing in renewable
energy,
specifically through
the
production
and sale
of energy
from photovoltaic
systems. Businesses
can choose
between a
loan or
leasing option,
with
the
loan
covering
up
to
80%
of
the
total
investment
costs,
including
infrastructure,
equipment
purchase
and
installation, site setup, and connection expenses.
●
Bridge Financing – Exoikonomo
Eurobank’s Bridge Financing - Exoikonomo
programme
provides a credit line to suppliers
and contractors working on
properties
under
the
Exoikonomo
–
Aftonomo
and
Exoikonomo
2021
programmes.
This
financing
helps
them
pre-
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finance their
work until
they are
paid through
the government
subsidies. Suppliers
can receive
up to 80%
or 100% of
the subsidy amount their customers
are eligible for,
regardless of whether
the customers use
Eurobank loans.
Our
actions
to
promote
sustainable
financing,
originally
developed
for
our
core
operations,
are
strategically
and
proportionally adapted and
deployed across
subsidiaries in Bulgaria, Cyprus, and Luxembourg.
For example, the
offering of
green lending such as Green home programmes, Green Car programme
s
for the purchase of new electric or hybrid cars, eco-
auto loans,
etc. While
these programs
are tailored
to address
the
specific local
contexts and
regulatory
environments,
we
are working towards achieving
a Group alignment.
ESG awareness and capacity building
Eurobank
is prioritising
the
development
of its
employees'
capabilities
to ensure
they
can effectively
assist clients
in their
sustainability efforts
and facilitate their
transition to green transition.
For more
information, please refer
to section 1.3.1.
The
role of the administrative,
management and supervisory bodies [ESRS 2 GOV
-1]
Dedicated training sessions
to Business Units
Apart from the
general upskilling
programmes,
during the past
years the
Group has conducted
dedicated sessions tailored
to the requirements of specific business
units and functions, crucial
for delivering the Group’s strategy.
These sessions focused
on engaging with clients to enable their green transition
efforts and identifying
sustainable financing opportunities through
publicly available sources, such as company sustainability disclosures.
A
sustainability
awareness
training
was
conducted
for
the
Board
of
Directors,
enhancing
the
understanding
of
CSRD
Reporting requirements, including Double Materiality
Assessment, EU Taxonomy
and disclosure requirements among others.
Through
their participation
in this
training, the
Board of
Directors developed
a comprehensive
understanding of
the
CSRD
requirements
and
learned
how
to
consider
these
in
the
company’s
strategic
planning
and
long-term
growth
objectives
effectively
2.5.5
Metrics & Targets
Metrics on sustainable financing and investment offerings
[MDR-M]
The
corporate
portfolio
of
Eurobank.,
which
is
the
Group’s
key
entity
sustainable
stock
exposures
amount
to
€
2.98
bn
demonstrating
a 37%
year-on-year
growth,
in line
with the
Group’s
green stock
targets, while
annual disbursements
have
reached
the
respective
annua
target.
The
tables
below
present
the
allocation
of
sustainable
exposures
as
well
as
the
disbursed amounts within 2024:
Corporate Banking
Outstanding balance as of
31.12.2024 (mn €)
Disbursed amounts within
2024 (mn €)
Dedicated purpose financings
1,898
537
Renewable energy
1,429
419
Green buildings
230
75
Energy efficiency
192
-
Clean transportation
40
36
Pollution Prevention
& Control & Circular Economy
8
7
General purpose financings
1,088
736
Business mix
80
29
Sustainability-Linked Loans (SLL)
1,008
707
Total sustainable financing
2,986
1,273
For
further
information
regarding
Sustainability-Linked
Loans
(SLL),
please
refer
to
note
20
“Loans
and
advances
to
customers” of the
consolidated financial statements.
In relation to the retail
portfolio, the
balance as of the end of 2024 stands at € 182 mn, while € 100 mn were
disbursed within
2024.
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Retail Banking
Outstanding balance as of
31.12.2024 (
mn €)
Disbursed amounts
within 2024 (
mn €)
Green mortgage loans
105
72
Energy renovation
loans
26
8
Bridge Financing - Exoikonomo
-
-
Electric vehicle loans
5
2
Photovoltaic SB loans
to small businesses and individuals
38
12
Net metering
1
-
Other dedicated
purpose sustainable loans to small businesses
7
5
Total sustainable financing
182
100
Regarding bond positions, as at 31.12.2024
the Bank held € 226 mn in Sustainability-Linked
Bonds.
Positions in green / sustainable bonds in
the Banking Book
Unit
Outstanding balance as of 31.12.2024
Positions in Sustainability-Linked Bonds
mn €
226
For
more
information
on
Sustainability-Linked
Bonds,
please
refer
to
note
22
“Investment
securities”
of
the
consolidated
financial statements.
Targets
on sustainable financing and investment offerings
[MDR-T]
As part of
the Group’s
ongoing efforts
to align its
business strategies
with global
sustainability goals,
the financed
impact
strategy is
underpinned by
clear targets
for
Eurobank’s
sustainable finance
and investment
offerings.
These
targets reflect
its dedication
to integrating
ESG factors
into our
financial services,
and they
guide its
approach
to funding
projects
that
have a positive impact on both society and the environment.
Through transparent
and measurable goals, we aim to support
the
transition
to a
more sustainable
economy while
delivering
responsible investment
opportunities for
Eurobank’s
clients.
Sustainable financing
targets are
based on
the
classification
approach
and/or eligible
activities described
by the
Group’s
SFF.
The table below demonstrates
Eurobank’s performance
against the targets set:
2024 Performance and progress
Portfolio
Targets
€2 billion in new green disbursements to businesses
by 2025
> € 2 bn as of 2024 - On track to meet target
20% of the annual new corporate
disbursements to be classified as
green
c. 21% - Annual target achieved
20% stock of green exposures by 2027 for
the corporate
portfolio
c. 16% - on track to achieve target
Mobilise €2.25 billion total green RRF funds in the
Greek economy
by 2026
c. € 2.1 bn - on track to achieve
target
No new investments in fixed income
securities (excluding exposures
in Sustainability / Green Bonds towards the top 20
most carbon-
intensive corporates worldwide.
0 new exposures – Target
maintained
Double annual disbursements of sustainability-linked loans
c. € 0.7 bn in SLL, disbursements, double in relation to
2023 – Annual target achieved
Sectoral targets
35%
of
new
disbursements
in
the
energy
sector
to
be
directed
to
(RES) financing
> 60% of sectoral disbursements towards RES
–
Annual target achieved
80% of
disbursements related
to the
construction of
new buildings
to be allocated to green buildings
100% of disbursements to construction of green
buildings – Annual target achieved
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2024 Performance and progress
Retail Banking targets
Maintain the same growth
in absolute terms for
Retail Banking
new green disbursements (or more
than 50% increase vs. 2023)
More than € 100 million increase in our new
green
disbursements towards households and small
businesses – Annual target achieved
Once Group’s
Net-Zero Strategy
will be finalized, each subsidiary will
set its own specific
targets. This will
ensure that every
part
of
the
Group
effectively
contributes
to
our
overall
sustainability
goals
while
considering
their
unique
operational
contexts and challenges.
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3
Social information
3.1
Own workforce
[ESRS S1]
3.1.1
Strategy
Material impacts, risks and opportunities and their interaction
with strategy and business model [ESRS
2 SBM-3]
The actual
and potential impacts
on own workforce
which have been
identified in the
course of the
DMA are connected
to
the
Group’s
strategy.
The
Group
has
committed
to
contributing
to
the
achievement
of
the
United
Nations
Sustainable
Development Goals (SDGs) and the
UN 2030 Agenda, as a signatory to the UN Global Compact since 2008, and by actively
promoting
its
fundamental
principles
and
applying
the
precautionary
approach.
In
this
context,
in
2022
a
new
holistic
Sustainability Strategy
was prepared,
that was
revised
in 2024,
the implementation
of which
is based
on two
main pillars
Operational Impact and Financed Impact. Key component of the Operational
Impact Strategy is Eurobank’s Societal Impact
that
focuses
on
providing
a
diverse
and
inclusive
environment
for
its
people
and
clients,
while
fostering
sustainable
development
and prosperity
for the
benefit of society.
The Societal
impact encompasses several
key commitments,
such as
embedding
a
diverse
and
inclusive
environment
by
2030,
cultivating
a
culture
of
wellbeing
by
2026.
These
key
strategic
commitments
address
material
IROs
of working
conditions,
other
work-related
rights, and
ensuring
equal
treatment
and
opportunities for all.
With regards
to material impacts, risks and opportunities, all people in own
workforce
who could be materially impacted by
business activities are in the scope of disclosures,
covering own operations
and the value chain.
The Group
recognises two distinct categories within its
workforce:
●
Employees
who are
directly employed
by the
organisation:
permanent, temporary,
full-time, part-time
employees,
as well as other
staff members such as trainees,
or those who have self-employed
status.
●
Non employees who are provided
by third party undertakings primarily engaged in employment
activities.
All
the
identified
negative
impacts
related
to
Eurobank’s
own
workforce
resulting
from
the
DMA
have
been
classified
as
potential.
Eurobank,
through
various
measures
and
mechanisms,
such
us
compliance
with
labor
laws
and
standards,
employee surveys, work
-life balance initiatives, diversity training
and awareness programs, ensures
that any related impacts
with widespread or systemic effects
will not be materialised.
Through
materiality assessment,
the magnitude
and scope of potential
and actual impacts
is taken into
consideration
and
are analyzed
further.
Identified impacts related
to Eurobank’s
own workforce
could only be
linked to
individual incidents of
discrimination or unethical behaviour.
Additionally,
the
Group
implements
a
range
of
actions
that
contribute
to
fostering
positive
outcomes
for
employees,
as
detailed below:
Actions promoting
positive impact of:
Implementing
internal
management
systems
and
initiatives
that
improve
employees’
ability
to
live
free
from
gender/sexual/ethnic/racial
discrimination and ageism.
Activities that contribute to material impacts:
●
Implementation
of Diversity,
Equity &
Inclusion
Policy:
the
policy ensures
that
all individuals,
regardless
of their
race, gender,
sexual orientation, age, disability, or background,
have equal access to opportunities and are treated
with respect and fairness.
●
Implementation
of Workplace
Violence
and Harassment
Policy:
the
policy outlines
behaviors that
are unethical,
provides
mechanisms
for
reporting and
corresponding
complaints, and
ensures that
all employees
work in
a safe
and respectful environment.
●
Establishment of
inclusivity and
diversity
Targets:
track
of progress
in order
to enhance
diversity
and inclusivity
within an organisation and in Top
Management.
●
The
Boardroom
initiative:
training
and networking
opportunities for
women
already in
managerial roles
so as
to
prepare them
for board positions.
●
Women
in
Banking
initiative:
programme
aimed
at
empowering
women
within
Eurobank
to
advance
to
higher
leadership
roles
through
mentoring,
interactive
workshops,
virtual
masterclasses,
gaming
and
various
engaging
activities.
●
Delivery
of
Workplace
Violence
& Harassment
virtual training
sessions
to all
Managers
of the
Group
in Greece
within 2024.
●
Implementation of
Inclusive Leadership virtual sessions
addressed to all Managers of the Group
in Greece
●
UN Women Empowerment Principles initiative
: Through the impactful community of “Women in Banking”, the Bank
embraces
the
7
Principles
of
Women’s
Empowerment
by
the
United
Nations
to
promote
gender
equality
in
the
workplace.
●
Women
in
Tech
initiatives:
webinars
in
cooperation
with
"Girls
in
Tech"
to
their
members
from
executives
of
Eurobank IT/Digital Unit
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Our actions to improve
employees’ ability to live
free from gender/sexual/eth
nic/racial discrimination and
ageism, originally
developed
for
our
core
operations,
are
strategically
adapted
and
deployed
across
subsidiaries
in
Bulgaria,
Cyprus,
and
Luxembourg. Examples
of relative
initiatives
are the
establishment of
Key Function
Holder Diversity
Policy
in Hellenic
Bank,
the
established mechanisms
of all
subsidiaries to
support appropriate
inclusion, etc.
While these
programs
are tailored
to
address
the
specific
local
contexts
and
regulatory
environments,
they
remain
firmly
aligned
with
Group’s
overarching
corporate sustainability objectives.
Scope of impact:
All employees, especially those who are more
vulnerable to discrimination incidents.
Actions promoting
positive impact of:
Supporting
employee’s
upskilling
and
well-being
by
providing
training
programs,
satisfying
and
high-quality
working
conditions, including adequate workspace
and respect of privacy.
Activities that contribute to material impacts:
●
Development
Plans
and
Improvement
Plan:
both
plans
are
designed
to
cultivate
employee
competencies
and
behaviours through
targeted training
and development
initiatives, aligning
their skillsets
with their
current roles
or
potential future positions.
●
Talent management
programme:
program that
aims at upskilling and reskilling the talent pool
●
Empowerment
programmes:
program
that empowers
employees,
so that
they
can assume
more demanding
roles
and improve their
leadership skills.
●
Occupational Health and Safety Management System: the
Group applies all measures required under
national and
EU legislation to ensure the
health and safety of its employees
●
myPROSPERITY: well-being program that aims to support employees facing daily
challenges in their personal, family
and professional environment.
o
Financial
well-being
initiative:
training
sessions
for
financially
responsible
decision
making
and
skills,
and
platform access providing
awareness and saving tips
o
Wellbeing podcasts and inspirational
talks
o
The Coach: on demand premium training
and wellness platform
o
Stress Management-
self-care sessions
Eurobank is committed to fully protecting and upholding the personal data rights of its employees, ensuring compliance with
the General
Data Protection
Regulation (GDPR).
Our actions
to protect
and uphold
the
personal
data rights
of Group’s
employees,
ensuring compliance
with the
General
Data Protection
Regulation (GDPR).,
originally developed
for our
core operations,
are strategically
adapted and deployed
across
subsidiaries
in Bulgaria,
Cyprus,
and Luxembourg.
While
these
programs
are
tailored
to address
the
specific
local
contexts and regulatory environments,
they remain firmly aligned with
our overarching
corporate sustainability objectives.
Scope of impact:
All employees
Actions promoting
positive impact of:
Generating direct,
indirect and induced jobs
across the value
chain, providing competitive
wages and benefits in alignment
with the
renumeration
policy,
while also
incorporating
Employee
Engagement
surveys
to quantify
employees’
opinions on
well-being.
Activities that contribute to positive impacts:
●
Supporting employees
and their
families:
a benefit
scheme
has been
in place
applying to
all its
employees
that
includes indicatively private healthcare and
life insurance, pension capital management
scheme through the Group’s
Occupational Fund, maternity benefits, discounted rates
for the
Group’s mortgage products
and services.
●
Gender pay gap analysis
●
WeSay 2023 survey: internal all-employee engagement survey to provide opinions on issues such as job
satisfaction,
employee engagement and wellbeing.
Scope of impact:
All employees
As part of the materiality
assessment, key risks
and opportunities that arise from
both the positive
and negative impacts of
own operations have been identified.
These include social factors,
as well as
those connected to
own workforce dependencies.
Equal Treatment
and Opportunities for All
Impact
Positive
Actual
Implementing
internal
management
systems
and
initiatives
that
improve
employees’
ability to live free from gender/sexual/eth
nic/racial discrimination and ageism.
Negative
Potential
Lack
of
established
policies,
measures
and
actions
increases
the
risk
of
discrimination
incidents within
Group’s
operations,
potentially
impacting
the
well-being
and morale
of
employees.
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Other work-related rights
Impact
Positive
Actual
Supporting employee’s
well-being through
providing
satisfying and
high-quality working
conditions, including adequate workspace
and respect of privacy.
Working conditions
Risk
Non-compliance with the modern workplace expectations such as good working conditions, adequate
salaries,
and
workplace
safety,
can
affect
employees'
motivation
and
performance,
leading
to
decreased productivity.
Opportunity
Demonstrating commitment to exemplary working
condition expectations, such as offering
adequate
salaries,
promoting
work-life
balance,
and
ensuring
workplace
safety,
can
attract
and
retain
employees.
The
environmental
pillar
of
the
Bank’s
Operational
Impact
Strategy
is
centered
around
reducing
carbon
emissions
and
achieving operational
net zero
by 2033.
Key drivers
in order to
achieve this
target are
energy efficiency
plans, transitioning
to
electromobility,
minimising
business
travel,
transitioning
to
cloud
services
as
well
as
becoming
a
paperless
banking
network. The
Bank’s operational
transition plan is not expected to have
material impacts on its employees.
The financed impact pillar of the Bank’s Sustainability Strategy focuses on aligning
the portfolio with 1.5
o
C sectoral transition
pathways (which
is also the
case for
subsidiaries’ portfolios)
through the
promotion
of sustainable
financing as well
as the
management
of
sustainability-related
risks.
Efforts
towards
those
areas
will
require
for
employees
to
gradually
focus
on
promoting
sustainable
financing
/
products
and
consider
client
sustainability
risks
in
their
day-to-day
activities.
These
aspects might entail upskilling which is expected to have a positive effect
on employees.
Eurobank
is a
signatory
to the
UN
Global
Compact
since
2008,
and is
committed
to
respecting,
actively
supporting
and
promoting
the
10 fundamental
principles relating
to human
rights, labour
rights, protection
of the
environment
and anti-
corruption.
Eurobank
is committed to
upholding the
highest standards
of human rights
and ethical
conduct throughout
its
operations
and supply chain. Based on its Code
of Conduct and Ethics and Human Rights
Statement, the
Group adheres
to
upholding
the
highest
standards
of
human
rights
and
ethical
conduct
throughout
its
operations
and
supply
chain.
It
is
ensured there
are no operations at
significant risk of incidents of forced
labor, compulsory labor and child labor.
Conducting the materiality assessment,
the main types of people of own workforce
who are or could be negatively affected
have
been identified.
Some
employees
may be
at greater
risk of
harm. To
gain this
insight, the
materiality
assessment
is
informed
by Diversity,
Equity,
and Inclusion
Policy,
which identifies as
vulnerable
groups those
that may
experience gender
or age
discrimination, people
with disabilities
and LGBTQ
individuals. “Equal
Treatment
and Opportunities
for
All” related
risks
and
opportunities
could
result
from
impacts
and
dependencies
on
those
vulnerable
group
of
people
within
own
workforce.
3.1.2
Policies & Actions
Policies related to own
workforce
[S1-1]
Eurobank
has adopted
policies
to manage
its material
impacts, risks,
and opportunities
related
to its
own workforce
and
disclose them in accordance with the minimum reporting requirements laid out in the Minimum Disclosure Requirements with
regards to poli
cies (MDR-P) as defined in
ESRS 2.
Eurobank is
committed to engaging with stakeholders
by ensuring a high
level
of accountability
in policy
development
and implementation.
Policies
are
approved
by
the
appropriate
Governance
bodies
such
as
the
Board
of
Directors
or
specialized
committees,
which
ensure
that
there
is
alignment
with
the
Group's
strategic goals and stakeholder
interests.
The Group
is committed to opposing all forms
of discrimination, inequality,
and human rights violations,
actively promoting
individuality
in
line
with
its
Diversity,
Equity
&
Inclusion
Policy
and
Human
Rights
Statement.
It
ensures
that
all
policies,
procedures,
and
human
resource
management
practices
are
guided
by
a
deep
respect
for
human
rights,
fostering
an
environment
where
diversity
and equity
are
recognised
and celebrated.
Through
the
implementation
of inclusive
policies,
commitments, and
mechanisms, the
Group reinforces
its dedication
to human rights
within its workforce,
in alignment with
the UN Guiding Principles on
Business and Human Rights,
the ILO Declaration on Fundamental Principles and Rights at
Work,
and the OECD Guidelines for
Multinational Enterprises.
Eurobank prioritises respect to human rights in line with the UN Guiding Principles on
Business and Human Rights. The Group
avoids causing or contributing to adverse human rights impacts through
its own operations
and business relationships. As a
signatory of the UN Global Compact since 2008, Eurobank actively supports the 10 principles related to human rights, labour
rights, environmental protection, and anti-corruption, reporting on these issues
annually in its
Sustainability Report. Eurobank
and
Postbank
are
also
signatories
of
the
UNEP
FI
Principles
for
Responsible
Banking,
publicly
disclosing
self-assessment
reports
as
part
of
their
commitment
to
responsible
banking
practices.
Additionally,
Eurobank
adheres
to
banking
labor
agreements in Greece
and the other
countries and participates in various organisations
promoting sustainable growth
and
responsible
entrepreneurship,
including the
Steering
Committee for
Sustainability,
Governance
and Green
Banking of
the
Hellenic Bank Association.
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Eurobank’s
Human Rights
Statement
applies across
its value
chain, encompassing
employees,
customers,
and suppliers.
A
key priority is ensuring all employees are treated with respect and
dignity, promoting fairness through
the exclusion of forced
and
child
labour,
equitable
compensation,
reasonable
working
hours,
and
upholding
freedom
of
association
and
data
privacy.
With
customers,
Eurobank
fosters
a relationship
of trust,
offering
fair
and transparent
services
while encouraging
feedback through
accessible complaint procedures.
The
Βank prioritises clear,
customized communication,
and compliance
with regulatory standards, enhancing customer
experience. In supplier relations,
Eurobank engages with those whose values
align
with
its
commitment
to
human
rights,
labour
rights,
and
environmental
standards.
The
Βank’s
Procurement
Policy
ensures
suppliers meet
local and
international
regulatory
requirements.
When human
rights violations
are
identified in
its
value chain, Eurobank takes immediate corrective action in collaboration with authorities, reinforcing its dedication to ethical
business practices and sustainable development.
Forced Labour,
Child Labour, and Human Trafficking
Eurobank maintains a strict policy against all forms
of forced labour,
child labour, and human trafficking.
The Bank prohibits
these practices both within its own operations and across its supply
chain. This commitment ensures that Eurobank’s business
practices
align with
ethical
standards,
promoting
human
rights and
dignity in
all
aspects of
its operations.
By
upholding
these
principles,
Eurobank
contributes
to
a
fairer
and
more
just
workplace
environment
and
ensures
that
its
business
relationships adhere
to high ethical and legal standards.
Wellbeing and Health & Safety
The Group is committed to maintaining
the highest standards of Occupational Health and Safety, recognising the well-being
of its employees as a critical asset
and driver of growth. In line with national and European legislation, health and safety risks
are proactively
assessed and
managed, ensuring
a safe
environment
for
employees,
customers,
visitors, and
stakeholders.
The Group
sets clear annual
objectives, regularly
monitor performance,
and encourages
continuous improvement.
Through
innovative
crisis response
plans, regular health
check-ups, employee
training, and
ongoing safety assessments,
a culture
of
safety is promoted. The
main goal is to establish a benchmark in the banking sector for
health and safety.
The Group
applies all measures required under
national and EU legislation to ensure the
health and safety of its employees,
customers and associates. At the
same time, the
Bank applies a Health and Safety Management
System (HSMS), as per the
ISO 45001:2018 international standard
on Occupational Health and
Safety. In this context, Eurobank implements a
prevention
and
safety
programme
for
its
employees
through
various
initiatives.
Eurobank’s
Occupational
Health
and
Safety
System
covers all its employees
and activities.
Certain employees are designated as Safety Coordinators and
Deputy Safety Coordinators. The responsibilities of the Safety
Coordinator and the Deputy Safety Coordinator
include their obligation to immediately notify the
competent officers of any
work-related risks and submit regular written reports regarding the current situation at the premises they are responsible for.
Diversity and Inclusion
The Group has committed to fostering a culture of diversity and inclusion and has adopted the “
Diversity, Equity & Inclusion
in Eurobank”
policy to
ensure
compliance
with human
rights standards,
mitigate
discrimination,
and foster
a diverse
and
inclusive workplace.
The
objectives of
the Diversity,
Equity,
and Inclusion
(DEI) policy
are focused
on creating
a diverse,
equitable, and
inclusive
workplace
where
all
employees
have
equal
opportunities,
feel
respected,
and
can
thrive.
The
Group
aims
to
build
a
representative
workforce,
free
from
discrimination,
and promote
transparent
processes
that
foster
talent and
clarity.
The
Group is committed to strengthening
an inclusive culture where
individuals feel they
belong and are empowered
to be their
authentic selves.
Inclusive leadership
is key,
and the
leaders are
accountable for
creating an
environment
that supports
all
employees.
With
a zero
-tolerance
policy for
harassment
and discrimination,
a safe,
healthy,
and flexible
work environment
that prioritises employee
well-being is ensured. Externally,
the Group focuses
on creating a positive societal impact through
education, employment opportunities, and social initiatives, while promoting diversity in marketing and communications and
ensuring ethical, non-discriminatory banking services.
The DEI
policy outlines clear
and specific commitments
to support individuals from
groups at
particular risk of
vulnerability,
ensuring an inclusive, equitable, and supportive environment for all employees. The
policy focuses on the following key
areas:
Gender
Equity
–
The
organisation
is
committed
to
advancing
gender
equality
through
targeted
programs
such
as
the
"Women
in
Banking
-
Leadership
Acceleration
Program"
and
through
successful
engagement
with
Bloomberg’s
Gender
Equality Score
evaluation.
Additionally,
initiatives
like
"the
Boardroom"
are designed
to promote
female
representation
in
leadership and decision-making roles,
ensuring women have equal opportunities for
career advancement.
Parents and Families
– The organisation
recognises the diverse
needs of families, offering
an extensive range of benefits to
support parents, regardless of gender,
age, or marital status.
Age Diversity
– The
policy promotes
the strengths
of different
generations
in the workforce,
ensuring that knowledge,
skills,
and experience are transferred
effectively.
People
with
Disabilities
–
The
organisation
is
committed
to
creating
an
inclusive
workplace
that
values
all
employees,
offering equal opportunities for
advancement, learning, and fair compensation.
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LGBTQ+
– The
policy ensures a safe,
respectful, and inclusive
environment for
LGBTQ+ employees,
with protections
against
discrimination and harassment.
The policy applies to Eurobank
Services and Holdings S.A., its subsidiaries (international and in Greece),
shareholders, Board
members,
directors,
representatives,
employees,
as well
as to
all interactions
with customers,
visitors, agents,
contractors,
suppliers, investors, external service
providers, business associates and the
communities in which it operates.
The
Nomination
& Corporate
Governance
Committee is
responsible
for
monitoring and
assessing on
an annual
basis the
effectiveness
of the DEI Policy.
The policy is readily accessible to all potentially affected stakeholders,
as well as to those responsible for its implementation,
through the Groups'
official website.
Eurobank prioritises mutual respect, dignity, and professionalism, ensuring that all employees treat the Group, its clients, and
colleagues
with
respect
and
integrity.
The
Group
values
diversity
and
fosters
an
inclusive
environment
that
welcomes
individuals regardless
of age, gender,
ethnicity, religion,
disability, or
other
personal characteristics.
Eurobank is
committed
to equal employment
opportunities, meritocracy,
and fair
treatment for
all staff.
It upholds
the principles
of understanding
and
cooperation,
encouraging
diverse
opinions
and
supporting
a
culture
free
from
discrimination,
harassment,
or
intimidation.
The
Group
has
a
zero-tolerance
policy
for
such
behaviours
and
provides
clear
channels
for
reporting
any
concerns,
including
through
managers,
HR,
compliance,
or a
dedicated
hotline.
Staff
are
encouraged
to speak
up
if they
suspect any unethical conduct or regulatory issues.
Furthermore, the
Group’s commitment to diversity
and inclusion aligns with its values and is reflected in its
Code of Conduct
and Ethics
. The
Code applies
to every
staff member,
irrespective
of segment,
level
or job
description, as
a daily
reference
manual. All senior management have the
duty to communicate the values of Eurobank
and inspire all employees under their
responsibility. The
Code is distributed to 100% of the staff members, including the
Board Members, as well as any individuals
who offer advisory services
or are employed based on fixed- term or project
employment agreements. With
reference
to the
Code of
Conduct and
Ethics,
staff
members
confirm having
read
and accepted
the
Code
through
an electronic
platform.
Compliance
and the
relevant
auditing bodies
of Eurobank
are
responsible
for
monitoring and
implementing
the
Code
of
Conduct and Ethics.
Respect for human dignity
is at the core of
Eurobank’s workplace culture, and the Group adopts a
strict zero-tolerance stance
against
violence,
harassment,
and
sexual
harassment.
Any
employee
who
experiences
or
witnesses
such
incidents
is
encouraged to report them promptly
through available communication
channels. All reported incidents are treated with the
utmost seriousness, confidentiality, and respect, with
a thorough investigation
and disciplinary action if necessary.
Eurobank
strives to
maintain a
safe
and respectful
environment
where
all associates
are protected
from
any form
of harassment
or
violence.
The
Policy against Violence
and Harassment
applies to a wide range of individuals associated with Eurobank. It includes all
members of the Group's staff, regardless of the type of employment contract they hold, whether permanent, temporary, fixed
term, or open-ended. Additionally, it covers
individuals working under project contracts,
independent service agreements, or
salaried mandates. The
policy also extends to employees
contracted by third
-party service providers
who work on behalf of
Eurobank,
as
well
as
those
participating
in
training
programs,
such
as
interns,
apprentices,
and
volunteers.
It
applies
to
members of Eurobank's staff
even if their work contract
has expired, and it also covers candidates seeking employment
with
the
Group.
To
ensure
transparency
and
accessibility,
the
policy
is
readily
available
to
all
staff,
candidates,
and
other
stakeholders through
the corporate
website.
The
Committee
against
Workplace
Violence
and
Harassment
is
entrusted
with
the
oversight
and
implementation
of
this
policy, ensuring that its provisions
are effectively
carried out across
the organisation.
Processes for
engaging with own workforce
and workers’ representatives
about impacts [S1-2]
In alignment with
the Sustainability Policy
Framework,
Eurobank engages
with its employees.
More specifically,
it prioritises
employee upskilling and reskilling, maintains professionalism,
and enforces anti-discrimination
policies to foster an inclusive
workplace.
The
Group
offers
comprehensive
benefits
for
employees
regardless
of
gender,
age,
or
marital
status.
Regular
meetings,
breakfast
sessions,
and
events
facilitate
dialogue
between
management
and
staff
representatives.
Enhanced
communication
channels
like
HR4U
and
the
Connected
portal
ensure
responsiveness
to
employee
inquiries.
The
Group
promotes work
-life balance,
social and environmental
awareness, and
volunteering
and implements an
ESG upskilling plan
and awareness initiatives for
employees and clients to support sustainability efforts.
The
perspectives
of
employees
inform
the
Group’s
decisions
and
activities
aimed
at
managing
the
actual
and
potential
impacts
on
them.
Employees
participate
in
stakeholder
engagement
as
part
of
the
annual
DMA,
which
enables
the
understanding of
their concerns
and priorities.
The
material topics
identified through
this engagement
are then
taken into
account and
inform
the
Group’s
policies, actions,
and targets.
This ensures
that the
issues that
matter
most to
employees
are addressed in the
decision-making processes.
Furthermore,
the engagement occurs
directly with employees,
through the
completion
of
questionnaires
on
potential
material
impacts,
risks,
and
opportunities.
The
Sustainability
Management
Committee is responsible for
overseeing the
DMA process and
approve
the proposed
contents of the Sustainability-related
reports,
that
derive
from
the
results
of
the
DMA.
The
assessment
of
engagement
effectiveness
is
measured
with
the
participation rate.
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The Group ensures
that the workforce’s
insights actively shape its decisions and guide its activities aimed at managing both
the actual
and potential impacts.
The engagement
occurs directly with
the employees
as well as
with their
representatives.
Eurobank fosters
the dialogue
with its own employees
and the engagement
with employees
is an ongoing process
with the
means of communication presented in bullets
below:
●
Sustainable dialogue with employee representatives
at company and industry level.
●
Staff-Management communication
via regular meetings, breakfast
with the Management and events.
●
Communication through
the HR4U contact centre.
●
Connected, the Bank’s internal portal.
●
Axiopoio, & Senior Management Performance
Feedback modern
employee performance
assessment system.
●
Upskilling and Reskilling of Employees.
●
Social and environmental issues awareness
campaigns (TeamUp
Employee Volunteering
Team).
●
myPROSPERITY wellbeing programme.
●
360
o
Informative & awareness
internal communication campaigns.
Improving
employee
engagement
is
a
crucial
goal
for
Eurobank,
seeking
to
enhance
productivity,
foster
a
positive
work
environment
and retain
top talent.
In pursuit
of this
objective,
the
Group
has extended
its efforts
aiming at
engaging
its
workforce
through
various
initiatives
and
communication
campaigns.
These
meticulously
crafted
initiatives
leverage
all
available communication channels, including Viber messages,
screensavers, emails, videos, intranet and more. By prioritising
employee engagement with
360-degree communication initiatives,
Eurobank demonstrates
its commitment to cultivating a
supportive and motivating work
environment, conducive
to individual and organisational success
In response
to the
above,
Eurobank
has conducted
an internal
all-employee
engagement
survey.
The
WeSay
survey,
that
took place in
2023, was conducted
fully digitally seeking employees’
opinions on various
issues concerning
the Group,
work
processes
and
the
work
environment
(such
as
compensation
and
benefits,
job
satisfaction,
employee
engagement
and
wellbeing, and corporate purpose). The survey involving all employees in
Greece and Cyprus was
completed with a
significant
participation rate
the Group.
The
survey findings
were
studied thoroughly,
and strengths
and areas
for
improvement
were
identified, shaping Eurobank’s next steps accordingly.
To communicate
its strategy and foster
2-way dialogue between the management
team and the employees,
Eurobank held
meetings with the Management,
with employees from
all divisions participating, as well
as 2 Senior Management meetings.
At
the
same
time,
aiming
to
foster
an
open
line
of
communication
with
the
regional
network,
4
onsite
visits
from
Retail
Management and 5 Top Management
roadshows took place
in regional markets across Greece.
People
Advisory
Committee
holds
the
operational
responsibility
to
ensure
review
and
evaluate
all
major
employee
engagement initiatives (employee
surveys, communication etc.)
Additionally,
the
Group
aligns its
actions with
corporate
values, principles
and commitments
by issuing
the
Human Rights
Statement,
the
DEI
policy
as
well
as
the
Policy
against
Harassment
and
Violence
in
Workplace.
Comprehensive
and
transparent
information
is
provided
throughout
engagement
with
all
business
partners
to
ensure
compliance
with
legal
requirements
in
labour
and
environmental
matters,
respect
for
human
rights,
and
the
promotion
of
demand
for
socially
responsible products and services.
Processes to remediate
negative impacts and channels for
own workforce
to raise concerns [S1-3]
In
case
of
negative
impacts
on
employees,
Eurobank
ensures,
through
grievance
mechanisms
and
its
illegal
or
Unethical
Conduct Policy,
that the appropriate
remediation actions
are taken.
Eurobank encourages
all stakeholders, including employees,
to report instances of potential or actual human rights impacts,
unethical conduct, or violations such as discrimination, harassment,
or intimidation. Eurobank has established clear channels
for
reporting,
including
branches,
the
website,
phone,
email,
and
in-person
communication.
Employees
are
expected
to
uphold a safe, respectful, and inclusive work environment, and are encouraged to speak
up about concerns regarding ethical,
legal, or regulatory issues. Eurobank’s Policy of Reporting Illegal or
Unethical Conduct ensures that staff and third parties can
report misconduct without fear of retaliation,
fostering trust and protection.
The responsible
officer
for the
receiving and
monitoring of reports
(RRMO) is tasked
with providing
clear guidance
on how
to
submit
a
report,
receiving
and
confirming
receipt
of
the
report
within
seven
working
days,
and
performing
an
initial
assessment.
They
are
also
responsible
for
designating
the
appropriate
unit
or
person
to
handle
the
report,
ensuring
the
confidentiality
of
the
reporting
person’s
identity
and
any
third
parties
mentioned.
Additionally,
the
officer
monitors
the
progress
of the
investigation,
maintains regular
contact with
the
reporting person,
and ensures
that feedback
is provided
within a reasonable period, not exceeding three months
from the receipt confirmation. The officer also plans and coordinates
relevant training efforts
to support the process.
The
Board
of
Directors
is
responsible
for
ensuring
the
existence
of
a
robust
framework
for
reporting
illegal
or
unethical
conduct, promoting
continuous improvement
of the
Policy,
committing to,
promoting
and practicing
a speak-up/listen-up
culture and ensuring the appointment of the
RRMO.
The Group encourages its workforce
to document incidents of
harassment, including actions taken to address them and prior
requests for assistance. The Group Human Resources, Group Compliance,
and Group Internal Audit
work together to examine
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grievances
or complaints,
ensuring a
prompt,
thorough,
and impartial
investigation
while
maintaining confidentiality
and
protecting
personal
data.
If
the
investigation
confirms
a
violation
of
the
Group’s
Policy
against
Workplace
Violence
and
Harassment,
the
responsible
Committee determines
appropriate
disciplinary measures,
taking suitable
and proportionate
action to prevent recurrence
of such incidents.
According to the
Policy for
Reporting Illegal or Unethical
Conduct, Eurobank
provides protection
against reprisal and keeps
confidential
the
identity
of
those
who
have
submitted
information
they
know
and
consider
to
be
accurate
and
true.
Additionally,
there
are
policies
in
place
to
prevent
any
form
of
retaliation
against
individuals,
including
workers'
representatives, utilising these channels. For
further reference,
applicable information has been disclosed in accordance with
ESRS G1-1 Business conduct policies and corporate
culture.
Action
on
material
impacts
on
own
workforce,
and
approaches
to
managing
material
risks
and
pursuing
material
opportunities related to own workforce,
and effectiveness
of those actions [S1-4]
Eurobank
has
formulated
action
plans
to effectively
manage
the
material
impacts,
risks
and opportunities
relating
to its
workforce,
which are consistent with ESRS 2 MDR-A. The following outlines a summarized description of the action plans and
allocated resources.
Eurobank has implemented the
following initiatives,
aimed at delivering
positive impacts to its own workforce.
Certifications
The Bank
consistently provides
a range of
learning solutions
to facilitate
employees achieve
certification/re
-certification
of
their
professional
competence
in
providing
investment
advice,
insurance
mediation,
mortgage
credit
and
small
business
banking. Over 1,500 new certifications
were recorded
in 2024, while more than 3,000 were
re-certified.”
Development Plans and Improvement
Plans
Career
development
holds
significant
importance
within
the
Group.
To
facilitate
this,
the
Group
uses
both
Development
Plans and
Improvement
Plans, which
encompass various
functionalities associated
with career
progression.
Through
these
mechanisms, employees
work with
their
managers to
create tailored
Development
Plans that
align with
their
professional
growth and
career aspirations.
Alternatively,
an Improvement
Plan can be crafted
to outline a strategic
path for
enhancing
performance
and addressing
areas
requiring
development.
Both
plans are
designed
to cultivate
employee
competencies
and
behaviours
through
targeted
training
and
development
initiatives,
aligning
their
skillsets
with
their
current
roles
or
potential future positions.
Talent management
programme
Eurobank
implements
a
structured
bank-wide
Talent
Management
Programme,
aiming
at
identifying,
developing
and
effectively
utilising a robust
talent pipeline
to deliver
business strategy.
During 2024, the
Group designed and
introduced a
new
segmentation
for
the
talent pool,
focusing
on mobility
as well
as structured
talent career
discussions. Through
these,
next career moves such as job swaps and various development
activities, like mentoring and job shadowing, were
offered to
career-oriented talents.
PROSPER Class of 2023 & 2024
In the context of developing
the Future
Leader pool recognised through
the Talent
Management process,
the Bank created,
in collaboration with
ALBA Graduate Business School, a unique Talent
Development experience
focusing on Leadership. The
program aims to provide
participants a modern educational
and developmental experience,
with opportunities for outside-
in perspectives,
interactivity,
networking,
practical
guidance
and useful
discussions with
experienced
academic professors
that will
empower
their out-of-the
-box thinking,
strategic
mindset and leadership
capabilities.
During 2024,
35 employees
completed the 2023 Class, while 36 participants joined the
2024 Class.
BeAPro in Banking Season
3
– Eurobank developed and launched the BeAPro talent
hiring program, targeting the Corporate
Investment
Banking, Wealth
Management
& Markets,
as well
as Risk
Management
Units, with
the
objective
of identifying
and retaining
high caliber
candidates with
1-3 years
of experience
and a
passion for
a career
in Banking.
The
assessment
framework
for this
program
was comprehensive,
utilising a mix of
hybrid assessment
tools and methodologies,
to maintain
high quality standards, enrich
candidate experience,
and ensure equitable practices.
A total number of
20 candidates have
been successful and will be joining Eurobank
through the
BeAPro in Banking Season 3talent program
in early Q1 2025.
Regarding employee
mobility
, the
Career Marketplace
intranet serves to inform internal talent about
available job openings
while also
providing
essential information
about potential
career
paths
within the
organisation.
Additionally,
it offers
tips
and best
practices
for
successfully
engaging in
the
internal
recruitment
process.
In 2024,
a total
of 82
job openings
were
posted on the Career Marketplace,
with 48% of job vacancies in Greece being filled internally.
Career Forums
– Eurobank has consistently demonstrated its commitment to the new generation
through various initiatives,
reinforcing
its
reputation
as
an
employer
of
choice.
The
Group
actively
participated
in
prominent
career
forums
across
Greece,
including the
Panorama
of Entrepreneurship
and Career
Development,
Career
Days
(Kariera.gr),
and Talent
Days
(hosted by
CollegeLink). Additionally,
Eurobank
engaged in
career
events organised
by leading
universities
in Greece,
such
as
the
Athens
University
of
Economics
and
Business,
the
University
of
Piraeus,
and
the
University
of
Macedonia,
among
others.
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Other Career
Events
– For
the 9
th
consecutive year,
Eurobank, in
collaboration
with the
Panorama of
Entrepreneurship and
Career Development, hosted the ‘Eurobank
Business Day’ on site career event. This initiative provided 60 young students and
graduates
from
various institutions
the
opportunity to
engage with
Eurobank
executives
and talented
employees,
gaining
insights
into
the
Group's
activities.
In
2024,
the
Eurobank
Business
Day
focused
on
Technology
and
Digital
streams,
highlighting the Group’s
innovative culture.
Succession planning
The Group’s C-Level
Succession Planning framework is assessed annually, following
a structured and comprehensive process,
according
to
the
guidelines
of
the
Group’s
Nomination
and
Corporate
Governance
Committee
as
well
as
its
Board
of
Directors. The Bank has a C-level
Succession Planning Policy in place to ensure
executive bench strength for
the C-level
roles
is aligned with the Group strategy, purpose and leadership culture, aiming to achieve business continuity
and growth. C-level
Succession Planning focuses on mobility of successors, while female representation is of
outmost importance. In 2024, female
successor
representation
increased
to
29%
at
C-Level.
Eurobank
also
introduced
targeted
career
discussions
with
high
potential internal successors, with
the discussion focusing
on progress and goals in their
current role,
career aspirations
and
development
areas. Key
radar
talented resources
were
identified and
will be
actively managed
through
the
Group
Talent
Mobilisation programme
launched in 2022.
Empower the Network
In 2024, the Group launched the “Empower the Network” project, aiming to
guarantee operational efficiency and at the same
time
offer
internal
advancement
opportunities
to
high
performing
and
high
potential
colleagues
of
the
Group’s
Branch
Network. More specifically,
29 Branch Managers, 13 Senior Relationship
Managers, and 5 Area Managers were
placed in the
relevant
positions.
Besides
internal
advancements
into
people
management
roles,
the
project
included
selective
external
hires as well. In total, 40 external candidates
joined the Group
through the program.
In this context,
replacement needs
were thoroughly
reviewed
in light of the
updated operational
model, and key
roles were
assessed accordingly.
The
selection
process
involved
a comprehensive
assessment
centre
and the
process
was concluded
with personalized feedback and career
discussions for all participants.
Wellbeing and work
-life balance
In 2023, Eurobank designed and introduced its first wellbeing programme, myPROSPERITY,
which aims to
support employees
facing daily
challenges in their
personal, family
and professional
environment.
The myPROSPERITY
support framework
was
designed to cultivate a more humancentric work environment and, therefore,
help employees listen and be heard, feel better
and lighten the burden they
carry in their
daily lives, aspiring to be a point of reference
for all Bank employees.
In this context, the myPROSPERITY programme
operates on 4 key
pillars:
●
Developing new habits that
help employees improve
their physical condition (For
my body).
●
Developing new
personal skills that
improve
their emotional
endurance,
whether
they are
single, partners,
parents
or caregivers of their
loved ones (For
my soul).
●
Supporting them in times when they are riddled with concerns and pressure, strengthening their ties with their social
environment, giving back and empowering
them (For
my community).
●
Providing a sense of security regarding
the management of their
financial future (For
my future).
The objective is to offer
fresh perspectives to uplift the mood, morale and physical wellbeing of employees,
thereby fostering
resilience. These
pillars centre
around themes
directly linked
to wellbeing
and mental health,
addressing everyday
stresses.
As part
of this
initiative,
employees
eagerly participated
in 11
online myPROSPERITY
Talks
delivered
during working
hours,
delving into contemporary topics.
Additionally, the employees had access to articles and
podcasts, via internal channels, that
not only
inspired and
informed
them,
but also
equipped them
with new
skills, empowering
them
to fortify
their
emotional
resilience.
Women in Banking (WiB)
As part
of its
commitment
to Diversity
and Inclusion,
the
Group
introduced
the
3rd Season
of Women
in Banking
(WiB)
in
2024, following
the highly
successful and
award-winning previous
two seasons. WiB
is a programme
aimed at empowering
women
within
Eurobank
to advance
to higher
leadership
roles,
drive
transformative
change
within
the
organisation,
and
advocate for
an inclusive and equitable work environment.
Designed by and addressed to talented women, this programme
integrates
mentoring
with
learning
through
interactive
workshops,
virtual
masterclasses,
gaming
and
various
engaging
activities.
The
initial two
seasons of
WiB
concluded with
resounding success,
encompassing 2,200 hours
of educational
programmes
and
980
hours
of
mentoring
sessions.
The
collaboration
among
participants
from
the
1st
and
2nd
cycles,
comprising
120
mentors and mentees,
culminated in the
formation of
a vibrant and
influential community within
Eurobank.
This community
aims to foster social connections, expand professional networks
within the Group, and enhance professional
growth through
knowledge
and
idea
exchange.
The
WiB
Community
has
already
undertaken
several
initiatives
with
the
objective
of
maintaining its active presence
and generating
a positive impact
on its members,
other
female colleagues
within Eurobank
and the broader
organisation.
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WiB not only
serves as a
cornerstone for
women’s empowerment,
but also plays a pivotal
role in championing
diversity and
inclusion,
cultivating
a
workplace
founded
on
acceptance
and
mutual
respect.
With
a
forward-looking
approach
and
unwavering
dedication,
the
WiB
community
is
spearheading
endeavors
to
empower
women
and
foster
a
more
inclusive
leadership landscape.
The abovementioned
initiatives are the ones in place with the wider spectrum, related to
the employees of the Greek entities.
There
are more initiatives implanted on a local level,
based on the specific characteristics and needs
of its entity.
In
2024,
Eurobank
signed
the
Women’s
Empowerment
Principles
(WEPs)
which
provide
essential
guidance
for
businesses
striving
to
promote
gender
equality
and
empower
women
within
the
workplace,
marketplace,
and
broader
community.
Established by
UN Women
and the
UN Global
Compact, these
principles are
informed
by international
labour and
human
rights standards, recognising that businesses play a critical
role in advancing gender equality and women's
empowerment.
Eurobank's
commitment to
these
principles transcends
mere
rhetoric; it
is integrated
into its Code
of Conduct and
reflects
the
organisation's
core
values.
With
a
steadfast
emphasis
on
empowering
women
and
enhancing
their
leadership
opportunities
within
the
Group,
Eurobank's
dedication
to
the
WEPs
represents
a
meaningful
step
towards
this
goal.
By
adopting the Women’s
Empowerment
Principles, the Group reaffirms
its unwavering commitment to fostering
a sustainable
and inclusive future for
its organisation, its employees,
and the wider community in which it operates.
Connected intranet
Eurobank’s internal
corporate intranet
serves as
a vital resource
for the
employees, keeping
them informed
on all strategic,
business,
HR
and
technology-related
matters.
It
is
a
digital
platform
that
promotes
the
Group’s
actions
and
initiatives,
providing
the
employees
with
immediate
access
to
important
information.
In
2024,
the
content
of
the
intranet
was
maintained and
updated, resulting
in 8,363
users visiting
Connected, and
on average,
users spent
several
minutes (06:50)
per session on the intranet. Additionally, to encourage internal social networking and the exchange of information and ideas,
the Yammer
platform is also available to the
employees.
The
effectiveness
of these
measures
is actively
tracked
through
regular
employee
feedback
surveys,
performance
metrics,
retention rates, alongside ongoing monitoring
of employee satisfaction
and engagement levels.
Additionally
in
order
mitigate
and
a
remediate
negative
impacts
on
its
workforce
stemming
from
Group’s
operations,
Eurobank have planned
the following
actions:
Work life balance
and mental health
Eurobank
extended
the
operating
times
and
days
of
the
existing
Mental
Health
Employee
Assistance
Helpline
for
all
its
employees, from
Monday to Sunday, including holidays, from 15:00 to 23:00.
The Helpline operates
completely confidentially
and without any financial burden. The dedicated
advisers from HELLAS EAP guide and support the Eurobank’s
employees on
a variety
of relevant
topics, such
as stress
management
at work,
emotional
resilience,
family
tensions or
addiction
issues.
Eurobank also offers:
●
Additional leave
on top of
the statutory
one, such as
childbirth leave
(pregnancy and post-partum)
and maternity
leave, with the option of
reduced working hours or accrued leave.
●
Leave for a child’s educational
-related school activities.
●
Paid
parental
leave,
minimum
2
weeks
more
than
the
legal
requirements,
unpaid
parental
leave,
paid
leave
for
single-parent
families,
paid
leave
to
adopt
a
child,
paid
parental
leave
for
parents
with
disabled
children,
paid
family/care leave
for medical rea
sons.
●
1 working hour less per day to employees
with certified disability equal to or more than 50%.
●
Measures to help employees keep
their schedule within their
working hours and promote their work
-life balance, i.e.
by sending out emails as reminders to clock out on time, in compliance with
regulatory requirements.
●
Hybrid Work
Model up
to 3
days from
home: 81%
of middle
or back-office
employees
have opted
for
Hybrid Work
Model via contractual agreement in accordance
with Eurobank's Hybrid Work
Policy.
●
The opportunity to the majority of employees to choose their working hours from a range of options, typically within
a 2-hour span, in order to better accommodate their
needs.
Learning initiatives regarding
violence and harassment
in the workplace
Eurobank
continually strives
to promote
a safe
and respectful
work environment.
Therefore,
a digital
learning programme
was implemented during 2023 for all Group employees in Greece, aiming to equip people with the necessary knowledge and
skills
to
identify,
prevent
and
properly
respond
to
instances
of
violence
and
harassment.
In
addition,
separate
virtual
workshops were
addressed to team managers,
to provide
them with practical
knowledge to prevent
such behaviours, while
amplifying the effort towards
nurturing an environment of mutual respect and dignity, where
no one tolerates harassment
in
any form.
Diversity, equity and inclusion
Discriminations based on nationality,
gender,
parental status, colour,
religion, health,
sexual orientation, etc. are
not in tune
with its principles and values. The Group
has adopted a zero-tolerance
approach, which applies to all staff and prohibits
all
forms of discrimination,
whether
direct or indirect.
It is also reflected
in contractual documents
adopted when entering
into
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relationships with third parties.
To this end, it has introduced
a Diversity, Equity and Inclusion
Policy and Workplace
Violence
and Harassment Policy.
Conducting the WeSay
2023 survey
As analyzed further
in section “Processes
for engaging with
own workforce
and workers’
representatives
about impacts [S1-
2]”, Eurobank
has implemented
the
initiative
“WeSay
2023 survey”
in order
to monitor
employee
satisfaction
and provide
opportunities for
feedback that will help
identify negative impacts, enabling proactive
intervention.
Eurobank
tracks
the
effectiveness
of these
measures
in practice
by
setting measurable
targets
relevant
to the
matters
of
employees’ well
-being, inclusivity, and diversity as presented
below:
●
Achieve
at
least
35%
gender
diversity
for
Top
Management
in
Greece
by
2030:
measures
the
increase
the
representation of women
in senior leadership positions within organisation
●
>20% of
employees
participating in
mental health
training
courses by
2025: tracks
the
improvement
of employee
well-being and the fostering
of a supportive workplace environment
●
Achieve an increase in wellbeing score
of people engagement survey: measures
various aspects of employees’ well-
being in the workplace.
The processes
of identification
of what action
is needed in
response to a
particular actual or
potential negative
impact on
own workforce
is informed
by the
Societal Impact
of the
Operational
Impact Strategy
and the
action plan
established as
part of its implementation. Eurobank continues to strengthen its capacity to identify and manage social risks stemming from
Employer Impact.
For more information
please refer to: 1.4.1
Information on the
market position and strategy
of the company [SBM-1]
To
address and
mitigate material
risks stemming
from
impacts and
dependencies on
the
workforce,
the
following
actions
have been initiated:
●
Comprehensive training
programs have
been implemented to enhance skill development
and reduce skill gaps.
●
Professional growth
opportunities have been launched to foster
career progression
and retain top talent.
●
Well-being initiatives have been rolled, including mental
health support, flexible working
arrangements, and wellness
programs.
●
An inclusive workplace
has been created by
establishing diversity and inclusion
policies and promoting
a culture of
respect and belonging.
3.1.3
Metrics & Targets
Targets
related to
managing material
negative impacts,
advancing positive
impacts, and managing
material risks
and
opportunities [S1-5]
Eurobank has set
measurable time
-bound outcome-oriented targets to
advance its commitments towards
its employees to
fostering a diverse
and inclusive internal environment
by 2030 and cultivating a culture of wellbeing by
2026.
●
Improve gender
diversity for Top
Management
●
Design a Generations Diversity
strategy proposal
●
Monitor, disclose and improve
Gender Pay Equity Gap
●
Maintain gender balance in workforce
and build on actions to promote STEM for
women
●
>20% of employees participating in mental
health training courses
by 2025
●
Investigate, specify and quantify the significant
aspects for employees’
wellbeing
●
Measure wellbeing score through
people engagement survey
●
Promote inclusive
management as part of the Culture shift initiative
The targets support and align with the core principles of
the Diversity, Equity and Inclusion (DEI) policy, emphasising diversity,
equity,
inclusion and
well-being across
the
organisation.
Eurobank
demonstrates
a long-term
commitment to
fostering
an
inclusive culture where all employees, regardless of gender, background, or identity, feel valued and
have equal opportunities.
The focus
on maintaining gender balance
in the workforce
and promoting STEM
for women
aligns with the DEI
policy’s goal
of
advancing
gender
equity.
Moreover,
the
commitment
to
inclusive
management
as
part
of
the
Culture
Shift
initiative
supports
the
development
of
an
inclusive
working
environment.
The
design
of
a
Generations
Diversity
strategy
proposal
further reflects
the company's commitment to fostering
an equitable and inclusive environment
that recognises the
value of
diverse
perspectives
across
all age
groups.
Monitoring and
improving
the
Gender
Pay
Equity Gap
ties directly
to the
DEI
policy's equity objectives, ensuring that compensation is fair and transparent.
Additionally, the targets focused
on workforce
well-being, including achieving an increase in wellbeing
score and offering
mental health training
to over 20% of employees
by 2025, underscore
the organisation's dedication
to the holistic well
-being of its employees.
Indicative achievements
against targets for 2024 are as follows:
●
Continuation of the “myProsperity” initiative (including inspirational talks by external experts), as part
of the Group’s
Wellbeing Framework.
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●
Implementation of the
Culture Shift programme,
promoting new ways of collaboration
in the workplace.
●
Training
programmes
in place to
promote diversity
and inclusion, as well
as anti-harassment
principles, addressed
to all employees.
●
Completion of wellbeing initiatives to promote
mental health.
●
Design a full scope People
Engagement Survey,
including a wellbeing and
life-work-balance
section, planned to be
executed in Q1 2025.
The Sustainability
Strategy
defines the
Group’s
sustainability priorities
and objectives.
The Operational
Impact Strategy
is
deployed through milestones and KPIs that support the
annual and the long-term interim targets set across multiple project
streams,
spanning
over
the
next
decade.
It
is
developed
and
deployed
along
3
pillars
and
corresponding
corporate
objectives, supported by a governance structure of project streams (one per each commitment) and the supervisory ESG/OIS
Committee.
Progress
is
regularly
reviewed
at
the
Sustainability
Management
Committee.
Links
are
established
with
Transformation
streams
as
well
as
corresponding
ISO
management
system
standards,
to
ensure
substantiation
and
certification
of activities,
validate target
setting and measured
performance,
and systematically
monitor progress
through
internal reviews and external assurance. The Group plans to revisit and update its Sustainability
Strategy on an annual basis,
in line with best market
practices and regulatory
requirements. The
targets’ progress
will be monitored throughout
the year
to ensure that they are
met with a final evaluation at the
end of the period they
are set.
Equal Treatment
and Opportunities for
All, Other Work
-Related Rights, Workforce
Wellbeing, and Working
Conditions have
been
identified
as
material
topics
during
stakeholder
engagement
process.
The
commitment
to
fostering
a
diverse
and
inclusive
internal
environment,
alongside
cultivating
a
culture
of
wellbeing
are
informed
by
the
impacts,
risks
and
opportunities that are directly linked
to these topics.
Characteristics of employees
[S1-6]
In 2024, the Group’s
employees amounted to 12,833.
The following
table illustrates the
total number of employees
by headcount, offering
a breakdown by
gender, as permanent
employees,
temporary
employees,
non-guaranteed
hours
employees.
In
2024
12,785
employees
were
of
permanent
employment status,
while the female employees
represented 65.7% of the
total headcount.
Total in Head count
Employees as of 31.12.2024
Male
Female
Other
Not reported
Total
Total number
of permanent employees
4,396
8,389
-
-
12,785
Total number
of temporary employees
14
34
-
-
48
Total of non-guaranteed
hours employees
0
0
-
-
0
Total number
of employees (sum)
4,410
8,423
0
0
12,833
The following
tables present the employee distribution for the
Group’s countries of operation – Greece,
Bulgaria, Cyprus and
Luxemburg.
Specifically, Greece
accounted for c. 47% of the Groups
total headcount, with c. 57% female
employees. Bulgaria accounted
for c. 30%, Cyprus c. 21% and Luxemburg c.1%
of the Group’s total
headcount.
Greece
Employees as of 31.12.2024
Male
Female
Other
Not
reported
Total
Total number
of permanent employees
2,559
3,499
0
0
6,058
Total number
of temporary employees
0
0
0
0
0
Total of non-guaranteed
hours employees
0
0
0
0
0
Total number of
employees (sum)
2,559
3,499
0
0
6,058
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Bulgaria
Employees as of 31.12.2024
Male
Female
Other
Not
reported
Total
Total number
of permanent employees
784
3,075
0
0
3,859
Total number
of temporary employees
0
0
0
0
0
Total of non-guaranteed
hours employees
0
0
0
0
0
Total number of
employees (sum)
784
3,075
0
0
3,859
Cyprus
Employees as of 31.12.2024
Male
Female
Other
Not
reported
Total
Total number
of permanent employees
973
1,753
0
0
2,726
Total number
of temporary employees
11
31
0
0
42
Total of non-guaranteed
hours employees
0
0
0
0
0
Total number of
employees (sum)
984
1,784
0
0
2,768
Luxemburg
Employees as of 31.12.2024
Male
Female
Other
Not
reported
Total
Total number
of permanent employees
72
52
0
0
124
Total number
of temporary employees
3
3
0
0
6
Total of non-guaranteed
hours employees
0
0
0
0
0
Total number of
employees (sum)
75
55
0
0
130
A total
of 1,305 of
the Group’s
employees
departed during
the reporting
period resulting
to an employee
turnover
rate for
the reporting period
of 10.2%. The table below presents
the turnover
distribution and ratio for
2024:
Employees as of 31.12.2024
Group
Unit
Male
Female
Other
Not
reported
Total
Total number
of employees who have left
your entity during the reporting period
Head count
451
854
0
0
1,305
Total number
of employees
Head count
4,410
8,423
0
0
12,833
Rate of employee turnover
%
10.2%
10.1%
0
0
10.2%
In the data collection
process for
employee-related information,
all figures are reported in headcount
for the reporting
year
of 2024.
This approach
ensures
that all
relevant
personnel
metrics across
the
Group
are captured
and accounted
for
in a
consistent
manner.
The
data
is
meticulously
gathered
from
each
subsidiary,
ensuring
that
every
entity
within
the
Group
structure is
represented.
Once collected,
this data
is consolidated
by the
Group
Human Resources,
enabling a
unified and
holistic view of the workf
orce.
Collective bargaining coverage
and social dialogue [S1-8]
Eurobank
follows
a policy
of direct
communication with
its employees
as well
as through
labour unions.
The union
with the
largest
membership
is
officially
recognised
as
the
representative
body
for
employees
in
labour
negotiations
with
management.
Over
94.40%
of
Group’s
employees
are
covered
by
collective
bargaining
agreements
at
the
enterprise,
sectoral,
and
national
levels.
Management
actively
collaborates
with
the
unions,
supporting
scheduled
meetings
and
fostering
open dialogue
to monitor developments
within the
work environment.
Collective bargaining
agreements address
various issues
such as
health
and safety,
compensation,
working
hours and
flexibility,
training,
career
development,
equal
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opportunities, absenteeism/leave/illness,
and insurance. In
line with Eurobank’s
internal policies,
employees' participation
in
trade union activities is a constitutional right, exercised
within the framework
of existing laws.
Legal trade union
activity does not affect
the employees’
employment status and
development in
any way, either
positively
or negatively. Employees can monitor and get
informed about their trade union rights, as
well as the activities
of associations,
through various communication channels of their Union and the Greek Federation
of Eurobank Employee Unions – OTOE
e.g.
websites, emails, notices, labour rights guides, codification
of collective agreements).
In addition, regarding
Group’s
operations
in Cyprus, the
Employers’
Association of Cyprus
Banks which covers
all the
banks
members of the Association of Cyprus Banks who have a Collective
Agreement with the same Trade
Union, is responsible for
industrial relation issues
and/or discussions for
the renewal
of the Collective
Agreement. Specifically,
Hellenic Bank engages
with Trade
Unions representing
its staff members
as part of its
ongoing stakeholder
engagement activities and
negotiates
for the settlement
of disputes arising from collective
agreement negotiations.
Social dialogue
Group
Unit
2024
Number of employees working in establishments with workers' representatives
Head count
6,971
Total Number
of employees
Head count
12,833
Total Employees
working in establishments with workers' representatives ratio
%
54.32%
Collective bargaining coverage
Group
Unit
2024
Number of employees covered
by collective bargaining agreements
Head count
12,114
Total Number
of employees
Head count
12,833
Total Employees
covered
by collective bargaining agreements
ratio
%
94.40%
Diversity Metrics [S1-9]
The Group is committed to fostering
equal opportunities for all employees, ensuring fair access to senior management
roles,
equitable salary structures, and merit-based evaluations and rewards.
Eurobank prioritises performance
and potential when
making decisions related to professional development, promotions, and career advancement. Eurobank’s
participation in the
Bloomberg Gender Equality Index for the third consecutive
year in 2024 highlights its ongoing dedication to responsible and
inclusive
growth.
This
involvement
underscores
the
company’s
focus
on
integrating
Diversity,
Equity,
and
Inclusion
(DEI)
principles, as well as broader
sustainability values, throughout its operations.
The
following
table
presents
the
gender
distribution
in
number
and
percentage
at
top
management
level.
As
top
management level is containing the
grade levels
of Executives and Senior Management within the
Group:
Employees in top management ratio
Group
Unit
Male
Female
Other
Not reported
Number of employees at top management
level
by gender
Head count
306
149
0
0
Percentage of employees
at top management
level by gender
%
67.3%
32.7%
0
0
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Distribution of employees by age group:
under 30 years old; 30-50 years
old; over 50 years old:
Total number of
employees by age
Group
Unit
under 30
years old
30-50 years
old
over 50
years old
Total
Number of employees during the
reporting
period
Head count
1,030
8,648
3,155
12,833
Percentage of employees
per age group
%
8.0%
67.4%
24.6%
100%
Adequate Wages [S1-10]
All of the Group’s
employees receive
adequate wages in compliance with the statutory
labour laws and salary practices in
place, applicable standard collective
and workplace agreements, as applicable
to each country of operation.
Training and skills
development metrics [S1-13]
Performance Management
In 2024,
Eurobank
continued to
implement the
Group
Performance
Management as
well
as Learning
Policies,
designed to
establish
a
transparent,
consistent
and
effective
framework
for
enhancing
employee
performance,
and
aligning
with
Eurobank’s strategic objectives
and values. This framework translates
the Group’s strategy
into practice by setting clear and
measurable
business
objectives
for
employees
and
promoting
a
cohesive
organisational
culture,
by
focusing
on
the
development of the
Group’s organisational
capabilities and qualitative competencies («how») across
all levels. Performance
Management
is
integrated
into
SAP
Success
Factors
for
enhanced
accessibility.
Both
tools
prioritise
development
and
emphasise continuous feedback, while for
Senior Managers, the
360 Feedback methodology
is applied.
The
percentage
of number
of employees
that
participated
performance
reviews
for
the
year
2024 was
93% for
the
male
employees
and 96% for
female employees.
In the
following
table the
percentage of
employees that
participated in
regular
performance and caree
r
development reviews
is presented, broken
down by gender.
Performance and career
development reviews
as of year-end
Group
Unit
Male
Female
Other
Not
reported
Total
Total number
of performance reviews
executed
Number
4,080
8,089
0
0
12,169
Total number
of performance reviews
agreed by the management
Number
4,081
8,092
0
0
12,173
Total number
of employees that
participated in regular performance
and
career development
reviews
Head Count
4,080
8,089
0
0
12,169
Total number
of eligible employees who
have been assessed for the
reporting year
Head Count
4,095
8,120
0
0
12,215
Total Number
of employees
Head Count
4,410
8,423
0
0
12,833
Eurobank
prioritises
learning and
development
as a
fundamental
aspect of
its operations
and overall
strategy.
Providing
equal learning opportunities for all employees—regardless of role, contract type (permanent, temporary, external associates,
contractors,
managers,
or
individual
contributors)—is
essential
for
enabling
skill
development
and
driving
sustainable
business outcomes.
This inclusive
approach
ensures that
every
team member
has the
resources
to grow
and contribute
to
the organisation’s long-term success. In 2024, Eurobank has consistently upheld its commitment to developing diverse talent,
fostering a culture of ongoing learning, and equipping its workforce
with the critical skills needed to drive
the organisation's
vision for Eurobank
2030.
Learning in numbers (2024):
●
588,469 learning hours Group-wide, including activities delivered
to temporary employees and contractors
●
47.4
average number
of training hours per male employee
●
45 average
number of training hours per female employee
●
45.9
average number
of training hours regarding the
Group’s employees
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Average
number of training hours per employee
and by gender is presented below.
Training hours per employee
and by gender as of year-end
Group
Unit
Male
Female
Other
Not
reported
Total
Training hours offered
to and completed
by employees
Hours
209,168
379,301
0
0
588,469
Total Number
of employees
Head Count
4,410
8,423
0
0
12,833
Average
number of training hours
Training
hours
47.4
45.0
0
0
45.9
Health and safety metrics [S1-14]
The Group
adheres
to all national
and EU regulations
to safeguard
the health
and safety
of its employees,
customers, and
partners.
Additionally,
Eurobank
has
implemented
a Health
and Safety
Management
System
in accordance
with
the
ISO
45001:2018
standard for
Occupational
Health and
Safety.
As part
of this,
Eurobank
runs a
comprehensive
prevention
and
safety
program,
featuring
a range
of initiatives
designed
to protect
its workforce.
The
scope of
Eurobank’s
Occupational
Health and Safety System encompasses all employees
and operations across
the Bank.
Health and safety templates present the
following information:
●
the percentage of people in its own
workforce who are covered
by the undertaking’s health and safety management
system based on legal requirements and/or recognised
standards or guidelines
●
the number and rate
of recordable work-related
accidents
●
the
number
of fatalities
as a
result
of work
-related
injuries &
work-related
ill health
of own
workforce
employees
(and other workers
working on the undertaking's sites)
o
Own workforce
covered by the
undertaking’s health and safety management
system ratio
Group
Unit
as of year-end
Number of employees in own workforce
who are covered
by the
undertaking’s health and safety management
system
Head Count
12,833
Total number
of employees in the undertaking’s
own workforce
Head Count
12,833
Percentage of employees
covered by
health and safety management system
%
100%
Work-related injuries and work
-related ill health
Group
Unit
Own workforce
-
Employees
Other workers working
on undertaking's site
Number of fatalities as a result of work
-related
injuries & work-related ill health
Number
0
0
Recordable work-related accidents ratio
Group
Unit
as of year-end
Number of recordable work
-related accidents
Number
21
Number of total hours worked
Hours
23,143,850
Rate of recordable work-related
accidents
Rate
0.91
All of Eurobank’s employees are covered by the
undertaking’s health and safety management system. Regarding the number
of fatalities as result of
work-related injuries and work-related ill health the number of
cases was 0
for both the own workforce
of the Group and the
other workers
working on the undertaking’s site.
For
the 2024, there
were 21
cases of recordable
work-related accidents,
and the rate
of work-related
accidents was at 0.91.
Regarding the
calculation of
the number
of total hours
worked, an
estimation has been
performed
based on the
normal or
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standard hours
of work
for
the
entity’s own
workforce,
considering entitlements
to periods
of paid
leave
of absence
from
work.
Remuneration metrics
(pay gap and total remuneration)
[S1-16]
The
Group adopts
a unified
remuneration
management approach
and a
common pay
framework
across all
positions and
roles,
applying the
job evaluation
methodology
which links
pay to
role
accountability.
Therefore,
salary variation
depends
heavily on the distribution of the
two genders on the job matrix.
Gender
pay
gap,
is
defined
as
the
difference
of
average
pay
levels
between
female
and
male
employees,
expressed
as
percentage of the
average pay level
of male employees.
For the
year 2024, the gender
pay gap ratio was 36.1%
The annual total remuneration ratio
of the highest paid individual to
the median annual total remuneration for all employees
(excluding the highest-paid individual).
For the
year 2024, the annual remuneration
ratio was 60.0.
The
Group
has
established
a
competitive
remuneration
policy
in
order
to
attract,
engage
and
retain
its
employees.
The
Remuneration
Policy basic principles are to:
●
be gender neutral and non-discriminatory in any aspect of its implementation
●
safeguard that remuneration
is sufficient to retain and attract
executives with appropriate
skill and experience
●
monitor that internal equity between all
Units is applied
●
link remuneration
with long-term performance
The
continuous
monitoring
of
market
trends
and
best
practices
at
the
domestic
and
global
level
ensures
a
competitive
Remuneration
Policy that is governed
by transparency and internal
equity.
Contextual information
necessary to
understand the
data and
how the
data has
been compiled and
other
changes to the
underlying data that are to be considered.
Renumeration metrics
Group
2024
Gender pay gap ratio (%)
36.1%
The annual total remuneration
ratio of the
highest paid individual to the median annual
total
remuneration
for all employees
x60
Practicing an inclusive culture
and ensuring equity and opportunities for all, the Group
reports on both our median and
mean (average)
raw gender pay gaps, unadjusted by factors
such as role and responsibility.
Group
Mean
Median
Gender pay pap
36%
24%
These
metrics
provide
insights
into
gender
representation
in
various
roles,
often
highlighting
a
concentration
of
men
in
higher-seniority positions.
Aiming to further quantify the potential effect of the gender representation of employees in top management,
we calculated
the pay gap ratio of the
Group per total remuneration
quartiles of the Group employees,
while the 4th quartile also includes
the Group’s
higher-seniority positions.
The average
gender pay gap at a Group Level
based on the total remuneration
quartiles' table
Group Level
Mean
1st Quartile
6%
2nd Quartile
0%
3rd Quartile
2%
4th Quartile
22%
The
results
of
this
exercise
provide
evidence
that
the
main
driver
of
the
pay-gap
ratio
is
the
gender
representation
of
employees in higher-seniority
positions.
The
Group,
as part
of its
commitment to
diversity
and inclusion,
introduced
the 3rd
Season of
Women
in Banking
(WiB)
in
2024, following the
highly successful and award-winning previous
two seasons.
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WiB
is
a
programme
aimed
at
empowering
women
within
Eurobank
to
advance
to
higher
leadership
roles,
drive
transformative
change within the organisation,
and advocate for
an inclusive and equitable work environment.
WiB not
only serves
as a cornerstone
for women’s
empowerment
but also plays a
pivotal role
in championing diversity
and
inclusion,
cultivating
a
workplace
founded
on
acceptance
and
mutual
respect.
With
a
forward-looking
approach
and
unwavering
dedication,
the
WiB
community
is
spearheading
endeavors
to
empower
women
and
foster
a
more
inclusive
leadership landscape.
Moreover,
in
2024,
Eurobank
signed
the
Women’s
Empowerment
Principles
(WEPs)
which
provide
essential
guidance
for
businesses
striving
to
promote
gender
equality
and
empower
women
within
the
workplace,
marketplace,
and
broader
community.
Established by
UN Women
and the
UN Global
Compact, these
principles are
informed
by international
labour
and
human
rights
standards,
recognising
that
businesses
play
a
critical
role
in
advancing
gender
equality
and
women's
empowerment.
With
a
steadfast
emphasis
on
empowering
women
and
enhancing
their
leadership
opportunities
within
the
Group,
Eurobank's dedication to the WEPs represents a meaningful step towards this goal. By adopting the Women’s Empowerment
Principles, the Group reaffirms its unwavering commitment to fostering a sustainable and inclusive future for its
organisation,
its employees, and the wider
community in which it operates.
The abovementioned
initiatives are the ones in place with the wider spectrum, related to
the employees of the Greek entities.
There
are more initiatives implanted on a local level,
based on the specific characteristics and needs
of its entity.
Incidents, complaints and severe human right
[S1-17]
Eurobank complies with frameworks
such as UN Guiding Principles on Business and Human Rights and UN Global
Compact. Information regarding
the incidents, and complaints that occurred
during the 2024 reporting year
are illustrated
below:
Incidents, complaints and severe human rights
impacts
Group
Unit
as of year-end
Total number
of incidents of discrimination, including harassment, reported
in the reporting period
Number
10
Number of complaints filed through channels for
people in the organisation's
own workforce
to raise concerns (including grievance
mechanisms)
Number
17
Total amount of fines,
penalties, and compensation for damages as a result
of the incidents and complaints disclosed
Monetary Terms
0
Number of severe
human rights incidents
Number
0
An indication of how many of severe
human rights incidents are cases of
non-respect of the UN Guiding Principles on Business and Human Rights, ILO
Declaration on Fundamental
Principles and Rights at Work or OECD
Guidelines for Multinational Enterprises.
Number
0
Total amount of fines,
penalties, and compensation for damages as a result
of the incidents disclosed
Monetary Terms
0
Regarding the number of complaints
filled through official
channels, most of the cases relate
to staff complaints received
in
writing by HR. Those complaints
related to matters such as performance appraisal, training, staff transfer and organisational
structure. All
cases were
investigated as
per the
respective
policies of
the Group.
As a result,
the Group
had no amount
of
fines and
penalties as
result
of the
incidents and
complaints disclosed,
as well
as zero
number
of cases
related
to severe
human rights incidents.
3.2
Consumers and end-users [ESRS S4]
3.2.1
Strategy
Material impacts, risks and opportunities and their interaction
with strategy and business model [ESRS
2 SBM-3]
The actual
and potential
impacts on consumers
and/or End-users
which have
been identified in
the course
of the
DMA are
connected
to
Eurobank’s
strategy.
Eurobank
has
committed
to
contributing
to
the
achievement
of
the
United
Nations
Sustainable Development
Goals (SDGs)
and the
UN 2030
Agenda, as
a signatory
to the
UN Global
Compact since
2008,
and by actively
promoting its
fundamental principles and
applying the precautionary
approach. In this
context, in 2022 the
Group prepared
a new
holistic Sustainability
Strategy,
that was
revised
in 2024,
the implementation
of which
is based
on
two main pillars Operational and Financed Impact. Key components of the Operational Impact Strategy are Societal impact
and Governance & Business impact. There
have been set several
commitments to this end, such as the boost of accessibility
and inclusion for
customers as
well as external
ESG awareness. These
key strategic
commitments address
material IROs
of
responsible banking towards customers.
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The types of consumers
and/or end-users who could be materially impacted by business
activities are:
●
consumers
and
end-users
who
are
highly
dependent
on
accurate
and
accessible
information
for
the
financial
products
All
the
identified
negative
impacts
related
to
Eurobank’s
consumer
and/or
end
users
resulting
from
the
DMA
have
been
classified as
potential. Eurobank,
through
various measures
and mechanisms,
such us
implementation
of Banking
Code of
Conduct,
development
of
simple
procedures
and
accessible
information
related
to
the
services
as
well
as
specialized
customer support departments, ensures that
any related impacts
with widespread or
systemic effects will not
be materialized.
Through
the
Responsible
marketing
and
communication
which
is
driven
by
its
human-centric
culture,
Eurobank
designs
products
and
services
tailored
to
the
individual
needs
of
its
customers.
With
a
view
to
optimising
the
messages
used
in
marketing campaigns, the
Group carries
out systematic market research
on each individual customer
category,
focusing on
both
quantitative
and
qualitative
features
that
highlight
the
trends
and
expectations
of
its
customers.
Using
adequate
Customer Relationship Management tools, it is able to propose or offer individual customers the
product or service that truly
meets their needs
Through
materiality assessment,
the magnitude
and scope of potential
and actual impacts
is taken into
consideration
and
are analyzed further.
Identified impacts related to consumers and/or end-users could be linked only to individual incidents of
restricted
access to information.
Eurobank
has
implemented
several
initiatives
to
enhance
accessibility
and
service
for
customers
with
disabilities.
Key
activities are described in the chapter “ESRS 3.5 Financial
inclusion”.
As part of the materiality assessment, key impact on customers
have been identified. This is presented in the following
table:
Information-related
Impacts for Consumers and/or End-users
Impact
Positive
Actual
Group provides
clients access to accurate, relevant
and high-quality secured
information, fostering
transparency and promoting
the principles of responsible
banking.
Conducting the
materiality
assessment,
the
main types
of customers
who are
or could
be negatively
affected
have
been
identified. Some
customers
may be
at greater
risk of
harm. To
gain this
insight, the
materiality
assessment is
informed
by
Diversity,
Equity,
and Inclusion
Policy,
which identifies as
vulnerable
groups elderly
people and people
with disabilities.
The
elderly are
more susceptible
to data
exploitation or
cybersecurity threats
due to
digital literacy
gaps. For
both vulnerable
groups
digital platforms
that
do not
adhere
to accessibility
standards (such
as WCAG)
could create
significant barriers
in
usage and overall
service.
3.2.2
Policies & Actions
Policies related to consumers
and end-users [S4-1]
Eurobank has
adopted policies to
manage its material
impacts, risks, and opportunities
related to its
consumer and/or end
users
and
disclose
them
in
accordance
with
the
minimum
reporting
requirements
laid
out
in
the
Minimum
Disclosure
Requirements with
regards to policies
(MDR-P) as defined in ESRS
2. Eurobank is
committed to engaging with
stakeholders
by
ensuring
a
high
level
of
accountability
in
policy
development
and
implementation.
Policies
are
approved
by
the
appropriate
Governance
bodies
such
as
the
Board
of
Directors
or
specialized
committees,
which
ensure
that
there
is
alignment with the Group's
strategic goals and stakeholder
interests.
Eurobank prioritises respect to human rights in line with the UN Guiding Principles on
Business and Human Rights. The Group
avoids causing or contributing to adverse human rights impacts through
its own operations
and business relationships. As a
signatory of the UN Global Compact since 2008, Eurobank actively supports the 10 principles related to human rights, labour
rights, environmental protection, and anti-corruption, reporting on these issues
annually in its
Sustainability Report. Eurobank
is also a founding signatory of the UNEP FI Principles
for Responsible Banking, publicly disclosing self-assessment reports as
part of its commitment to Human Rights as detailed in section 3.1.2.
Eurobank's
Code
of
Conduct
&
Ethics
regarding
customers
focuses
on
maintaining
transparency,
client
protection,
and
ethical behaviour. It ensures that clients receive clear, accurate, and comprehensive information
about products and services,
enabling them to make informed
decisions. Eurobank also
classifies clients according to legal categories to provide
tailored
protection, especially
for investment
-related transactions.
To uphold
high standards of professionalism,
Eurobank invests
in
continuous staff
training
and certification.
Additionally,
it emphasises
the
prevention
of conflicts
of interest
by prohibiting
staff from using their position
or internal information for personal gain
and ensuring
fair terms for all clients.
Staff are required
to seek compliance
approval for actions that may present
a conflict
of interest, reinforcing the Group's commitment to
ethical
conduct and transparency
in client relationships.
Compliance and the
relevant auditing bodies
of Eurobank
are responsible
for monitoring
and implementing
the Code
of Conduct and
Ethics. Through
the Governance
& Business impact
pillar of the
Sustainability Strategy,
and specifically,
the
commitment to
intensify ethics
and transparency
by 2025,
the
Group
has set
targets to attain Compliance Management Systems certifications,
including the following
certifications already
attained:
●
ISO 37002 – Whistleblowing Management System,
●
ISO 37001 – Anti-bribery Management System, and the
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●
ISO 9001 for Financial Crime Prevention
Services Certification.
The preparation
process for
ISO 37301 –Compliance Management Systems Certification
is scheduled to start within 2025.
The
Management of
Complaints Policy
follows
international best
practices
and is in
compliance with
the provisions
of the
Bank of Greece (Executive Committee’s Act 157/2019). The policy is ISO 9001 and ISO 10002 certified and aims to
provide fair,
transparent, and efficient solutions.
All complaints are treated equally,
with uniform procedures
applied while responses are
tailored to individual circumstances. Complaints can be
submitted through designated channels, and each case is
addressed
promptly to ensure resolution. The main objectives of
the policy are to enhance
customer satisfaction, improve service quality,
and
resolve
complaints
effectively
and
fairly.
Eurobank
Complaints
Management
is
responsible
for
submitting
the
Management of Complaints Policy and corresponding
statistics to BoG on an annual basis.
The
Sustainability Policy Framework
of Eurobank outlines the
commitments to supporting customers in their
transition to a
more sustainable future. A key
objective of this framework
is to assist customers in achieving their
decarbonization goals by
providing
innovative
financial
solutions
that
enable
investments
with
positive
environmental
and
social
impacts.
By
embedding
sustainability
principles
and
ESG
considerations
into
its
operations,
Eurobank
aims
to
address
emerging
sustainability
challenges
effectively.
Through
this
approach,
Eurobank
ensures
that
its
customers
have
access
to
the
necessary resources and expertise to navigate the complexities of sustainability. The Sustainability Management Committee
is responsible for
approving the
Sustainability Frameworks
(e.g. Sustainability Finance
Framework,
Green Bond Framework,
Sustainability Policy Framework
and Sustainability Investment Framework)
as well as other
sustainability-related Policies.
All the above-mentioned policies are readily accessible
to all
potentially affected stakeholders, as well as
to those responsible
for its implementation,
through the
corporate website.
Processes for
engaging with consumers and end-users about impacts [S4-2]
The Group
considers strengthening
its customer
relationships and
fostering
collaboration
as significant endeavors
and key
strategic
objectives.
Eurobank
engages with
its clients
through
responsible
information,
customer
service
and provision
of
products
and
services
with
a
deep
sense
of
respect
and
transparency
using
the
following
means
of
communication
and
response:
Processes for
engaging with customers:
1
Retail banking branch network and electronic
/ digital channels (ΑΤΜ, APS e-Banking, Eurobank
Mobile App, v-
Banking, Digital On boarding).
2
Expert relationship managers
(RMs) at branches and v-Banking (Personal
Banking, Retail Business Banking,
Expert RMs).
3
Operation of special purpose
branches: International
Branch (golden visa, non dom, etc. clients) Retail shipping
client branch and Legal Branch.
4
Private Banking network.
5
Dedicated Corporate Service
Centres.
6
24/7 customer call centre
via EuroPhone Banking for retail,
private and corporate customers
as well as via
dedicated EuroPhone International
Banking Line.
7
Economic reports and reviews on a regular
basis, by the analysts and economists of the
Eurobank Research team.
8
Ease of access via collaboration
with the Hellenic Post
(ELTA).
9
Publicly available information and communication
through eurobank.gr
and eurobankholdings.gr
10
Enhanced communication with
clients – video calls / click2chat / automated customer
appointment.
11
Automated customer journeys through
digital and alternative channels offering
a unique customer experience.
12
Οnline sales and lean processes to cover
client needs without physical presence.
13
Active customer input in market
research programs,
thus being part of customer propositions’
creation.
14
Social media channels.
15
Direct campaigning (viber,
email, sms).
16
Webinars and native articles
via Digital Academy for Business to boost business competitiveness
on its digital
transformation
journey.
17
Newsletters.
18
Business insight: external e-Newsletter,
excellent marketing tool to strengthen
relationships with customers
&
institutions, providing RBB ecosystems content and promoting
banking & non-banking added value services,
aiming to improve customer
loyalty & engagement.
19
Hosting of special conferences.
20
Retail Business Banking informational events
(BB Tourism, BB Health
Financing, etc).
21
Briefings with customer groups.
22
Non-banking services via wide network of selected
partners (Ecosystems).
23
Customer satisfaction
and NPS surveys.
24
Customer interviews based on Design Thinking
Methodology approach.
25
Centralised Complaints Management - Precise
responses to all incoming requests.
26
Customer Service Improvements.
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Processes for
engaging with customers:
27
Initiatives for people
with disabilities.
28
Focus group
discussions with RBB RMs for identifying ESG expectations
of clients.
29
Limited Edition annual magazine to Private Banking clients.
30
Informative “Your
Personal Experts” podcasts to Personal
Banking clients.
31
Informative Client Events
fοr Private and Personal Banking Clients.
32
Informative Client Events
and Reports on Investments by Eurobank
Equities and Eurobank Asset Management
MFMC.
The perspectives
of consumers and/or end-users
inform Group’s
decisions and activities aimed
at managing the actual
and
potential impacts on them. Customers participate in stakeholder
engagement as part of the Double Materiality Assessment,
which enables the understanding of their concerns and priorities. The material topics identified through this engagement are
then taken
into account and inform
the Group’s
policies, actions, and targets.
This ensures
that the
issues that matter
most
to consumers
and end-users are
addressed in the
decision-making processes.
Furthermore,
the engagement
occurs directly
with
consumers
and/or
end-users,
through
the
completion
of
questionnaires
on
potential
material
impacts,
risk
and
opportunities.
Processes to remediate
negative impacts and channels for
consumers and end-users to raise concerns
[S4-3]
Eurobank
has
established
policies
and
mechanisms
that
enable
customers
to
raise
concerns
and
ensure
appropriate
remediation for
any negative impacts.
For
Eurobank,
the
relationship
and
cooperation
with
its
clients
is
a
primary
strategic
objective.
Aiming
at
honest
and
transparent
communication,
it
has
set
up
specific
processes
to
communicate
information
surrounding
its
products
and
services.
Through
its Customer
Complaints Policy
and ISO
certified
processes,
the
Group
handles its
customer
complaints
with
compassion,
while
performance
is
measured
by
pertinent
qualitative
indicators.
Aiming
to
strengthen
its
customer
relationships,
Eurobank
has launched
Customer
Excellence,
to enhance
customer
service
through
all points
of contact
and
secure relationships of trust.
Eurobank addresses customer complaints in a spirit of good cooperation, understanding and respect, always in pursuit of an
appropriate and mutually acceptable solution. All complaints are managed
with impartiality and sincere willingness to reach
a
fair
solution.
Eurobank
has
harmonized
its
Management
of
Complaints
Policy
with
the
Bank
of
Greece's
Executive
Committee Act No.
157/2019 and revised
it in accordance
with ISO 9001
and ISO 10002
standards to enhance
the handling
of customer complaints. This updated policy
aims to improve the
effectiveness
and responsiveness of Eurobank’s
complaint
resolution process. Furthermore,
the customer is informed that if he is not satisfied
with the proposed solution, he can contact
Hellenic Financial
Ombudsman. Performance
in terms
of these
actions is
measured
using qualitative
indicators
set by
the
Bank,
while
statistics
are
extracted,
which
are
reflected
in
reports
used
to
keep
Eurobank’s
Management
updated.
The
commitment
to
customer
service
and
the
sincere
interest
of
Eurobank
are
reflected
at
every
stage
of
this
complaint
management
process,
as customers
are
continuously kept
up to
date about
the
progress
of their
case.
At the
same
time,
communication
is
maintained,
to
a
sample
of
cases,
even
after
the
case
has
been
resolved,
to
determine
whether
the
customer was
satisfied with the
outcome, as well
as to receive
their comments
and feedback.
All the
information
is used to
identify
and
highlight
the
reasons
for
dissatisfaction
among
customers
and
to
recommend
improvements
in
terms
of
provision of better service
and prevention of any future
issues.
Eurobank
closely
monitors the
effectiveness
of its
remediation
actions
through
a range
of client
complaints performance
indicators, which are:
●
Customer satisfaction
rate
●
Complaints resolved within 2 business days: 50%
for 2024
●
Annual new complaints: annual decrease of 15.3% for 2024
●
Client cases received: 10,825
for 2024
●
Client cases resolved:
10,522 for 2024
●
Overall resolution
rate: 97.2%
for 2024
Paying
attention
to the
importance
of complaint
management,
oversight
of results
takes
place
on a
regular
basis by
the
Executive Board as well as a Board
level Committee.
Additionally, Eurobank
makes the most of customer
experience data (Voice
of Customer) from
all available sources, internal
and
external,
such
as
complaints,
surveys
etc.,
constantly
adding
new
sources
by
initiating
new
NPS
surveys
at
various
touchpoints (branches, e-Banking, Eurobank Mobile App,
v-Banking, ATMs, EuroPhone Banking) and
for major products. These
are analyzed and evaluated
to identify areas that
call for
improvement
and to take corrective
and preventive
measures, so
that
Eurobank
services
fully
meet
its
customers’
wishes
and
expectations.
Moreover,
to
better
monitor
results,
certain
qualitative indicators have
been identified and are regularly monitored. In 2024:
●
Over 149,000
customer evaluations on banking
experience were
collected through regular
measurements.
●
62,000 comments were
analysed, which helped improve
existing services and/or design new ones.
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●
Over
1,042 customers
were
personally contacted
to be
informed
about the
actions Eurobank
initiated about
their
comments.
The responsible
officer
for the
receiving and
monitoring of reports
(RRMO) is tasked
with providing
clear guidance
on how
to
submit
a
report,
receiving
and
confirming
receipt
of
the
report
within
seven
working
days,
and
performing
an
initial
assessment.
They
are
also
responsible
for
designating
the
appropriate
unit
or
person
to
handle
the
report,
ensuring
the
confidentiality
of
the
reporting
person’s
identity
and
any
third
parties
mentioned.
Additionally,
the
officer
monitors
the
progress
of the
investigation,
maintains regular
contact with
the
reporting person,
and ensures
that feedback
is provided
within a reasonable period, not exceeding three months
from the receipt confirmation. The officer also plans and coordinates
relevant training efforts
to support the process.
According to the
Policy for
Reporting Illegal or Unethical
Conduct, Eurobank
provides protection
against reprisal and keeps
confidential
the
identity
of
those
who
have
submitted
information
they
know
and
consider
to
be
accurate
and
true.
Additionally,
there
are policies
in place
to prevent
any form
of retaliation
against individuals,
including customers,
utilising
these
channels.
For
further
reference,
applicable
information
has
been
disclosed
in
accordance
with
ESRS
G1-1
Business
conduct policies and corporate culture.
Eurobank
also prioritises
cybersecurity,
personal data,
and the
resilience
of its
ICT systems
against evolving
cyber threats.
Cybersecurity strategy follows
a comprehensive Predict,
Prevent, Detect, and Respond framework.
Customers
may
contact
the
Data
Protection
Officer
for
any
matter
regarding
the
processing
of
their
personal
data.
Additionally, for the exercise of their rights, customers may
submit a
written request to
Retail Business Planning
and Customer
Excellence
Retail
Banking
Unit.
Eurobank
shall
use
its
best
endeavors
to
address
such
requests
within
thirty
(30)
days
of
receipt
.
Taking
action on
material impacts
on consumers
and end-users,
and approaches
to managing
material risks,
pursuing
material opportunities related to consumers and end-users,
and effectiveness
of those actions [S4-4]
Eurobank is actively addressing and preventing potential
negative impacts on consumers and end-users through the
various
actions, that
are carried
out throughout
the reporting
period and
concern
the execution
of action plans
in own
operations
as well as its clients, as part of downstream value chain
.
●
Enhancement
of
threat
intelligence
capabilities
through
use
of
state-of
the-art
technologies/services,
and
collaboration with
peers from other
banks, as well as the Hellenic Police
and the National Cyber Defense
Agency.
●
Strengthening of the cybersecurity
capabilities for new digital products/
services, teleworking and cloud technology
adoption, as well as to address the ever
-growing threats (i.e.
Ransomware) and maintain compliance with evolving
regulatory requirements.
●
Application
of
multi-tiered
Endpoint Protection
Detection
Response
protection,
filtered
emails
and
web
content,
DDoS protection and SIEM services
to detect suspicious activities.
●
Vulnerability
assessments and penetration testing
to identify and address weaknesses in IT systems.
●
Operating
according
to ISO
27001,
ISO 22301,
ISO 20000,
and ISO
27701 standards.
The
scope of
the
ISO
27001
certification has been extended
to also cover cloud computing operations.
●
IT security awareness training and phishing simulation
exercises to educate staff on
recognising security threats.
●
Ensures compliance
with Regulation
(EU) 2016/679
(GDPR), Law
4624/2019,
and relevant
Greek and
EU legislation
on personal data protection.
●
Takes
appropriate
measures to
inform data
subjects (e.g.,
customers) about
the processing
of their
personal data
in a clear, concise, and easily accessible manner.
●
Mandatory training for
all staff on personal data protection
(GDPR) and IT security issues.
●
Development
and
enforcement
of
comprehensive
frameworks
to
ensure
data
security
and
privacy,
including:
IT
Security Policy,
Cyber Security, Risk Management Methodology,
Policy on Data Classification.
●
Addresses
customer
complaints
with
cooperation,
understanding,
and
respect,
striving
for
mutually
acceptable
solutions.
●
Harmonized Management of Complaints Policy with Bank of Greece
Executive Committee Act No. 157/2019.
●
Updated
complaint management processes based
on international standards (ISO 9001,
ISO 10002).
●
Utilises customer experience data (Voice
of Customer) from various sources,
including complaints, surveys, and NPS
(Net Promoter
Score) surveys
at touchpoints such
as branches,
e-Banking, Eurobank
Mobile App, v-Banking,
ATMs,
and EuroPhone Banking.
●
Analyzes
and
evaluates
customer
feedback
to
identify
areas
for
improvement
and
implement
corrective
and
preventive
measures.
●
Adheres to the regulatory framework
and the Banking Code of Conduct, with control mechanisms in place to ensure
compliance.
●
Advertising
and promotional
campaigns
are
subject to
prior
authorization
by
relevant
Group
units, with
content
reviewed
for compliance.
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In order to track the
effectiveness
of these results, certain
quantitative and qualitative indicators
have been identified and
are regularly monitored. These
include client complaints performance indicators
as well as customer privacy and
information prote
ction indicators.
Actions that promote
positive impacts on data security and customer
privacy /information include various
actions, that are
carried out throughout
the reporting period
and concern the execution
of action plans in own operations
as well as its
clients, as part of the downstream value
chain.
●
Customer Excellence
initiative launched to deliver
outstanding service at all customer touchpoints and foster
trust-
based relationships.
●
Recognises excellent performance
and encourages front-office
visits to ensure all staff members
share a customer-
centric culture.
●
Provides customized information
to every customer,
ensuring transparent communication
about products and
services.
●
Established customer support departments
and both traditional
and online service networks.
●
Developed easy-to-understand procedures
and brochures to inform customers
accurately about products
and
services.
In order
to track
the effectiveness
of these
results, certain
quantitative and
qualitative indicators
have been
identified and
are
regularly
monitored.
These
include
customers
satisfaction
surveys
as
well
as
Net
Promoter
Score
(NPS)
metrics.
The
effectiveness
of
these
actions
and
initiatives
is
further
supported
by
the
Retail
Customer
Excellence
Committee,
which
is
made up of senior Group
executives and is tasked
with making decisions that
will produce
the desired outcomes
for quality
and customer service
issues.
The
process
regarding
identifying what
action
is
needed
and what
response
to a
particular
actual
or potential
negative
impact
on
consumers
and/or
end-users
is
characterised
by
ESG
Risk
Assessment.
Eurobank
continues
to
strengthen
its
capacity to identify and manage social risk stemming from client operations.
The approach to take action in relation to
specific material negative impacts on consumers and/or
end-users is characterised
by
proactively
identifying
and
addressing
risks
associated
with
product
design,
marketing,
and
sales,
with
a
focus
on
monitoring and mitigating potential negative outcomes. This includes ensuring that advertising and promotional campaigns
are
subject
to
prior
authorization
to
prevent
misleading
or
harmful
messaging,
as
well
as
taking
steps
to
monitor
and
mitigate
data privacy
risks Eurobank
continuously seeks
to improve
the
transparency
and fairness
of product
design and
marketing strategies to safeguard
the interests of consumers.
Processes
to provide
remedy in
the event
of material
negative
impacts are
available and effective
in their
implementation
and outcomes.
These
processes
include actively
seeking customer
feedback
through
customized communication
tools and
ensuring that customers receive direct and prompt information about any new deals or changes to the products and services
they choose.
Severe
human rights
issues and
incidents connected
to consumers
and/or end-users
have
not been
reported.
In 2024,
no
incidents of non-compliance with regulations and voluntary codes concerning product and service information,
and labelling
or marketing communications were
identified and, as a result, no fines or sanctions were imposed on the
Group.
Resources
allocated
to
the
management
of
material
impacts
engage
internal
functions
such
as
Risk
Management,
Compliance, IT
Security,
and Customer
Experience
departments, which
take actions
like
enhancing threat
intelligence
and
cybersecurity
measures,
conducting
staff
training
and
awareness
programs,
ensuring
compliance
with
international
standards, and monitoring customer satisfaction
3.2.3
Metrics & Targets
Targets
related to managing material negative
impacts, advancing positive impacts, and managing
material risks and
opportunities [S4-5]
Eurobank has established the
following qualitative
targets to meet its commitments to improving accessibility
and inclusion
for customers,
as well as raising external ESG awareness
by 2025:
●
Enhance accessibility initiatives
for services and products
targeted to underserved
social groups
●
Raise staff awareness and familiarity
on disabilities (through experiential training)
●
Enhance outreach to customers
on sustainability through the Digital Academy
●
Develop responsible banking mechanisms
to raise customers’
ESG awareness
Eurobank’s
targets
for
enhancing
external
ESG
awareness
as
well
as
accessibility
and
inclusion
for
customers
align
with
Sustainability Policy Framework and the principles outlined in
its Code of
Conduct & Ethics,
emphasising transparency, ethical
behaviour,
and professionalism.
By 2025, Eurobank
aims to enhance ESG
awareness for
customers, ensuring they
can make
informed
decisions,
which
promotes
transparency.
The
Bank
assists
stakeholders
to
assimilate
ESG
terminology,
opportunities and applicability.
Raising ESG awareness
for
external stakeholders,
and particularly
for clients,
is an integral
part of Eurobank’s
Sustainability Operational
Impact Strategy.
To this
end, Eurobank
actively supports Greek
businesses in
their transition to the
digital and sustainability model, through a series of Digital Academy
articles and webinars.
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The Group also plans to develop responsible banking mechanisms to raise ESG awareness by providing
reliable information,
particularly
for
those
engaging
in
sustainable
investment
decisions.
By
focusing
on
vulnerable
groups,
equal
access
to
banking services
and strengthening
of inclusivity
are ensured.
Staff receives
experiential training
to provide
better quality
services to customers with
disabilities, reinforcing Eurobank’s
commitment to inclusivity.
Indicative achievements
against targets for 2024 are as follows:
●
Continuous improvement
of services and launch of additional inclusion initiatives
targeting specific social groups:
o
Services
now
include
sign
language
support
through
v-Banking
for
hearing-disabled
customers
and
Braille
documents and accessible PDFs for visually impaired customers. Additionally,
100% of ATMs have been adapted
to accessibility requirements (voice
guidance) while 92 branches are
equipped with ramps
o
Implementation
of
“Familiarity
with
disabilities”
training
sessions,
focused
on
Retail
banking
Networks
to
enhance accessibility and
inclusion for
customers. 1,900
employees have
been trained to
assist individuals with
disabilities
o
Inspirational talks by Eurobank's
Accessibility Ambassadors
o
Real Life Heroes Award
to a colleague who excelled in servicing clients with disabilities.
●
External ESG
awareness initiatives
for
clients, including
the
Digital Academy
series of
ESG webinars:
3 workshops
took place for “Sustainable Transition:
New prospects and new requirements”,
“Financing Sustainable Development
for SMEs” and “Interbank ESG
Questionnaire - Transition
from Theory
to Practice” with
441 clients participating.
The Sustainability
Strategy
defines the
Group’s
sustainability priorities
and objectives.
The Operational
Impact Strategy
is
deployed through milestones and KPIs that support the
annual and the long-term interim targets set across multiple project
streams,
spanning
over
the
next
decade.
It
is
developed
and
deployed
along
3
pillars
and
corresponding
corporate
objectives, supported by a governance structure of project streams (one per each commitment) and the supervisory ESG/OIS
Committee.
Progress
is
regularly
reviewed
at
the
Sustainability
Management
Committee.
Links
are
established
with
Transformation
streams
as
well
as
corresponding
ISO
management
system
standards,
to
ensure
substantiation
and
certification
of activities,
validate target
setting and measured
performance,
and systematically
monitor progress
through
internal reviews and external assurance. The Group plans to revisit and update its Sustainability
Strategy on an annual basis,
in line with best market practices,
and regulatory requirements.
Customers feedback
surveys, quantitative
data about changes
in users'
demographics and
courses completed per
training
and/or number
of participants
are exploited
in order
to track
effectiveness
of the
targets. Their
progress
will be monitored
throughout the
year to ensure that they
are met with a final evaluation
at the end of the period
they are set.
3.3
Fostering innovation
[Entity-specific]
3.3.1
Strategy
Description of material impacts, risks and opportunities and their
interaction with strategy
and business model [SBM-3]
Innovation
is
a
strategic
business
opportunity
for
Eurobank
in
relation
to
the
increase
of
positive
and
the
reduction
of
negative
impacts it
has identified.
Thus,
it places
great
emphasis in
creating
an environment
that
fosters
the
sustainable
growth
of small
and medium-sized
enterprises (SMEs)
both national
and international
and reinforces
the
outward-looking
potential of Greek companies with a view to promoting effective
entrepreneurship and improving the quality of key business
sectors through innovative services. Eurobank
is also promoting innovative channels for service delivery
and designing value-
adding solutions, tailor-made to its customer needs.
To
this end,
a key
component of
the
societal pillar
of the
Groups sustainability
strategy
focuses
on stimulating
innovative,
inclusive and youth-focused
entrepreneurship.
Eurobank’s mission
goes well beyond
its financial aspect and aims
to contribute to economic growth,
but also to enable an
inclusive and sustainable economic
model, one that champions innovation, supports
communities and generates widespread
prosperity.
Regarding the Governance
-related information
please refer to : 1.3 Governance.
3.3.2
Impact, risk and opportunity management
Description of processes to identify and assess
material impacts, risks and opportunities [ESRS 2 IRO-1]
Through the
DMA Eurobank has identified the
following material
risks and opportunities:
Fostering innovation
Risk
Rapid
technologic
development
in
the
banking
sector
may
pose
competitive
threats and risks if Eurobank
fails to adapt and innovate at the
same pace.
Opportunity
Meeting
evolving
customer
expectations
and
modern
lifestyle
needs
through
utilising digital tools and innovative services
can improve
customer engagement
The process
of assessing fostering innovation
applies across all regions where
Eurobank operates.
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3.3.3
Policies and actions
Policies related to fostering
innovation [MDR-P]
The Group’s
Sustainability Policy
Framework
is the underlying
policy describing its
strategic
objective to
adapt its business
and operations in a way that
accommodates social needs within its business model.
The Sustainability Policy
Framework
makes reference
to the significance
of fostering an
innovative environment
and its role
in the overall
sustainability strategy which includes its commitments and targets
of the societal pillar towards that
end.
Actions related to fostering
innovation [MDR-A]
Eurobank
is
an
innovator
when
it
comes
to
initiatives
and
Corporate
Social
Responsibility
(CSR)
activities
that
support
innovative entrepreneurship,
foster the
sustainable growth of small and medium
-sized enterprises (SMEs) both national
and
international
and
reinforce
the
outward-looking
potential
of
Greek
companies,
with
a
view
to
promoting
effective
entrepreneurship and improving
the quality of key business sectors through
innovative services.
Eurobank Next – Digital Growth
& Future Competitiveness
Eurobank
Next - Digital
Growth and
Future Competitiveness
is a strategic
initiative launched
in January 2024
under which
both the Innovation Center
and the GenAI Coordination Unit operate,
aspiring to be the driving force behind transformative
banking
solutions.
It
aims to
safeguard
the
Group’s
future
relevance
through
fostering
the
innovation
mindset
&
practice
across the Group while also
exploring
and exploiting
disruptive value propositions to
pursue growth & future competitiveness.
The
Innovation
Center’s
mission is
to provide
fast-paced,
focused
innovation
aligned with
Eurobank’s
broader
strategy
to
increase
profitability
and
efficiency.
With
its Innovation
&
UX
Labs,
Innovation
Center
fosters
both
entrepreneurship
and
intrapreneurship across Eurobank, and links the organisation with Fintech
companies to further elevate customer satisfaction.
The
team
scouted
more
than
50
startups
and
provided
recommendations
to
Business
Units
for
potential
opportunities,
resulting to
POCs or
partnerships.
Alongside this,
the
Unit constantly
monitors trends
and provides
market insights
across
the
Group
through
its
monthly
newsletter
and
quarterly
report.
Also,
it
forged
strategic
partnerships
with
International
Organisations
and platforms
to leverage
networks for
open innovation.
A Brainstorming
Session concept
was launched
to
accelerate
top-tier
ideas from
all business
units within
Eurobank
and customers
outside
Eurobank,
encouraging
collective
innovation in product development
through a dynamic, collaborative
approach.
Working in
tandem with
the Innovation
Center,
the GenAI
Coordination Unit
is responsible
for setting
Eurobank’s
strategic
ambition
in the
field
of Generative
AI
(GenAI).
The
unit focuses
on defining
use
cases
for
GenAI
across
the
organisation,
coordinating
the
various
stakeholders
involved,
and overseeing
the
deployment
of GenAI
technologies
in active
projects.
Their work ensures
the successful adoption and integration
of GenAI, aligning it with Eurobank's digital growth
ambitions.
While building
its operationalization
Framework,
the
GenAI Coordination
Unit is
working
closely with
all Business
units to
identify potential
Use Cases. To
this day,
one use
case is
launched into production,
six are
in pilot phase
and more
than 10
use cases
are being assessed and prioritised.
Further to the
above, with the
aim to strengthen competitiveness,
promote, support and integrate
Innovation at all levels
of
the Organisation's operation,
an Innovation Board was established
under the leadership of our
CEO. Its establishment is an
important step
towards
strengthening
the
culture
of innovation
and ensuring
the
Group’s
continuous
adaptation
to new
technological and business challenges.
egg - enter grow go
In the area of innovative entrepreneurship, Eurobank – in partnership with Corallia, a unit of
the Athena Research Centre that
implements
flagship
programmes
and
targeted
interventions
focusing
on
the
management
of
Clusters,
Incubators
and
Entrepreneurship
Programmes
– introduced
an initiative
in 2013:
the
egg –
enter grow
go. This
business accelerator
offers
entrepreneurs
an integrated
framework
of business
incubation,
acceleration,
and collaboration
among startups.
The
12th
cycle
commenced
in
2024,
continuing
to
support
innovative
businesses
in
3
key
areas:
extroversion,
financing
and
interconnection of businesses with
the global market.
In the
last 12
years, egg
has become
one of
the most
prominent business
acceleration
initiatives in
the country.
It has also
substantially
enhanced
its reputation
in Greece
and abroad,
and has
become
an industry
standard
in the
Greek
startup
ecosystem. Since
2019 egg
has been
consisting of
3 distinct
and complementary
entrepreneurship
support platforms:
egg
pre – acceleration,
egg Start-Up and egg Scale-Up.
egg
pre
–
acceleration
initiatives
aim
at
supporting
the
academic
community,
connect
research
and
innovation
with
entrepreneurship
and
support
groups
who
want
to
immerse
themselves
in
the
principles
of
entrepreneurship.
More
specifically, through
targeted pre-
acceleration
programs, egg provides
the academic community (undergraduate
students,
postgraduates, researchers,
teachers etc)
with mentoring,
guidance and training
to connect them
to entrepreneurship
and
the economic system.
More precisely,
egg launched in 2022 an
online acceleration
program
in collaboration with
ICC Hellas, their Cluster,
Female
Founders’
Startup, DUTH, and AUTH. This program saw the participation of eight female-led startups, achieving 100% female
representation. Building
on the success
and outcomes of this initiative,
egg introduced the
Female Entrepreneurship
– Mini
Acceleration
Program
in 2023, tailored
for female
researchers
and university students
in STEAM fields.
The program,
which
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was
delivered
twice
(2)
by
egg
in
2023,
is
a
multifaceted
approach
that
encompasses
mentorship,
skill-building
and
networking opportunities
tailored specifically
for female
researchers
and entrepreneurs in
Greek Universities
and Institutes.
It
empowers
women
to
overcome
barriers,
seize
opportunities and
flourish
in
their
respective
fields.
In
total,
48
research
teams participated in 2023, with women representing 67% of
the participants. Building on this success, in
2024, egg launched
a
Mini
Acceleration
Program
for
Researchers
.
This
iteration
of
the
program
followed
a
similar
structure,
providing
mentorship and
support to research
teams. A total
of 24 teams participated,
with 32%
female representation.
The primary
objective
was to
foster
research
and innovation
within universities,
helping participants
understand entrepreneurship
and
develop
their
entrepreneurial
ideas.
In
parallel,
egg,
in
collaboration
with
EBAN,
introduced
an
International
Pre
-
Acceleration
Program
,
offering
support,
guidance,
and
mentorship
to
8
international
startups.
This
program
focuses
on
helping startups expand their businesses
and establish a presence in Greece.
Tourism and Culture cluster
With egg –
enter grow
go as the administrator,
Eurobank supports
the first Greek
Cooperative
Innovation Cluster
in Digital
Technologies in the Tourism
and Culture Industries (Tourism and Culture Cluster). The main purpose of the Cluster is to secure
financial
viability
and
achieve
economies
of
scale
and
economies
of
scope
in
digital
applications
and
technologies
for
Tourism
and Culture. It
also fosters
an environment
of collaboration
and creativity and
encourages knowledge
sharing and
resource pooling among member companies, resulting in more efficient and sustainable practices. The initiative incorporates
innovative companies and other
organisations based in Greece that
promote innovation,
research and networking, and are
active in the wider digital tourism
technologies and ICT sector.
This approach aligns perfectly with the priorities set by the World Tourism Organisation (UNWTO)
and tourism organisations
globally.
The
objective
of
the
Cluster
is
to
digitise
tourism
and
cultural
products,
maximising
Greece’s
competitive
edge
through
the
use of
software
and digital
content technologies,
smart mobile
apps and
other
high-tech applications.
These
advancements
will offer
visitors new
and enhanced
travel
experiences,
aligning with
the
overarching
goal of
the
initiative.
Through the
integration of innovative
technologies, the Cluster
aims to modernise the tourism sector,
providing visitors with
tailored, cutting-edge
experiences,
while ensuring Greece’s
continued relevance
and competitiveness
in the
global tourism
market. The “Development of innovative technologies and new generation of digital applications in tourism and culture” R&D
programme
has
been
successfully
submitted
to
the
Innovation
Cluster
CfP
of
the
General
Secretariat
for
Research
&
Innovation, with a total budget of €2.8 million,
allocated to 6 ambitious collaborative
R&D projects from 13 companies.
Exportgate and extroversion
initiatives
Eurobank aims at actively contributing to the country’s economic growth and recognises the importance of entrepreneurship
as a major lever for the expansion of the Greek economy.
The Eurobank also focuses on supporting the extroversion
of Greek
businesses
by
encouraging
new
business initiatives.
With
the
support of
4 leading
Greek
export associations
(Panhellenic
Exporters Association, Greek International Business Association,
Exporters’ Association of Crete and SEV-Hellenic Federation
of Enterprises), Eurobank created
Exportgate, a pioneering international
web trade portal offering
networking opportunities
in the global market to Greek and
Cypriot companies and providing access to advanced tools for their international business
operations. With
more than 5,500 participating Greek
companies, it covers all major sectors of the
economy.
Exportgate members
have online
access to
information
for
over
1,000,000
partners located
in 200
countries. 2023
marked
the 10-year anniversary
since Exportgate’s launch and
Eurobank scheduled
a series of initiatives to celebrate
this significant
milestone
and
to
essentially
thank
its
valuable
partners
and
members
for
being
the
greatest
ambassadors
in
the
development
of its
extroversion
strategy.
Exportgate is
a member
of the
Trade
Club Alliance
(TCA)
network,
following
the
strategic agreement
between Eurobank
and Santander,
a leading bank in retail and corporate
banking registered in
Spain.
Supported by international banks
covering over 65% of global trade corridors, the
TCA is the first
e-business network enabling
its
members
to
identify
partners
easily,
quickly
and
reliably
around
the
globe
by
strongly
investing
in
advanced
AI
technologies. The network is still expanding, with the most recent integration in the market of China,
represented by the Bank
of China.
Additionally, there
is strong collaboration with Enterprise Greece,
the official investment, and trade promotion
agency of the
Greek State, aiming at
increasing export activity and
at attracting foreign investments. Through SEV’s extroversion
initiatives
(Export Ready Workshops and
Doing Business Events), SEV and
Eurobank have
established powerful
synergies offering
end-
to-end support to Greek businesses.
Growth Awards
Eurobank
established the
“Growth
Awards”
in 2016,
in partnership
with Grant
Thornton. The
aim was to
reward
companies
that combine high financial performance with a successful corporate history and
contribute to forming a new entrepreneurial
landscape and
work
culture
in Greece.
The
awards aspire
to become
one of
the
leading ways
of acknowledging
business
excellence and supporting the growth
of robust enterprises in Greece.
The
7 Growth
Awards
ceremonies
to date
have awarded
44 of
the most
robust
Greek enterprises.
More than
2,000 guests
attend the
award ceremony
every
year,
7 internationally
renowned
speakers
have been
hosted and
around 80
enterprises
apply annually. The
Award Committee consists of 20 distinguished individuals from the Greek
business and academic arena.
Digital Banking
Throughout 2024, Eurobank was fully committed to
continue delivering personalised and user-friendly digital
services, as part
of
its
digital
transformation,
investing
in
technological
infrastructure
and
human
resources,
and
supporting
all
users
in
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accessing
digital
solutions.
Eurobank
Group
Digital
Banking
leverages
its
expertise
to
provide
innovative,
data
driven
financial products
and services.
Placing customers
at the
center,
it delivers
simple, personalized
products and
ensures easy
access to
them.
Bringing technology
closer
to everyone,
it acts
as a
digital and
phygital
key enabler
and Eurobank’s
main
digital culture ambassador. 2
main aspects are identified in its digitisation journey:
1)
External
digitisation
–
Its
digital
footprint
through
web
and
mobile
banking,
websites
and
social
media
presence.
2)
Internal digitisation – Its simplified internal processes
through all customer
touchpoints.
Eurobank’s digital-first
approach has
led to a significant
expansion of its
digital portfolio,
offering
a range of
products and
services to enhance
customer experience
and address customer
needs as voiced directly
by them. The
main theme for
2024
involved
the
provision
of
new
digital
products
and
services
for
both
Individuals
and
Businesses
Key
digital
products
and
initiatives for 2024:
●
Group
Sales
Digital Onboarding:
a unique
in the
Greek
market,
digital service
allowing
companies
to digitalise
their
payroll process
while enabling their employees
to digital onboard their employers
payroll service,
●
New credit
products –
Introduced
personalised and pre
-advised products
with automated
credit decisions,
enabling a
seamless and fast digital experience.
Launched a market-first virtual credit card
●
Insurance products – Launched
additional general insurance
products via digital channels, such as Motor Insurance
and
Pet insurance products.
●
A new product offering
for teenagers: a virtual prepaid
issued by the parent/guardian
and used by the minor.
●
Digital offering for businesses – Introduced
online set up of Time Deposit deals with personalized options application for
POS facility, as well
as numerous digital tools for
the administration
of a company’s legal documentation.
These products
cater for the
everyday
needs of businesses, providing efficient financial solutions
to support their operations
and growth, alleviate
the need to visit a branch and save
valuable time.
In addition to these digital products, Eurobank
made notable advancements in 2024:
●
Expanded partnerships
in embedded
financing –
Launched
new
partnerships
with merchants
in embedded
financing.
This
initiative
enables consumers
to finance
their
online
purchases
directly
through
the
Group
when
shopping online,
streamlining the payment
process and enhancing convenience
for customers.
●
Enhanced
customer
service
features
–
Introduced
several
features
to
upgrade
the
customer
experience
and
save
customers
time from
visiting a
branch for
service requests,
such as
the addition
of a
new account
beneficiary and
the
ability to issue Certificates with a simple click of a button.
●
Open
Banking
–
Eurobank
made
further
progress
in
Open
Banking
by
offering
new
custom
added-value
APIs,
to
cooperating companies, in the
areas of onboarding, account and transactions
management etc
●
The Open Banking channel:
o
Served 150,000 customers
with 12,000,000 calls.
o
Increased transaction volume
to €171 million, up from 7M compared to 2023.
Eurobank’s
digital
initiatives
epitomise
a
strategic
commitment
to
harnessing
technology
for
delivering
cutting-edge
solutions
and
tailored
experiences
for
individuals
and
business
customers.
These
efforts
were
recognised
by
notable
distinctions.
In
2024,
Eurobank
was
honoured
as
«Best
Consumer
Digital
Bank
in
Western
Europe
for
2024»
for
the
5th
consecutive year,
by the esteemed US Global Finance magazine,
affirming its continuous excellence in digital banking on an
international
scale. Additionally,
during 2024
Eurobank
the
Eurobank
Mobile App
was ranked
1st in
the
App store
and iOS
among all other banks in Greece.
Digital and hybrid sales
– In 2024, the volume
of digital and hybrid sales increased significantly by 28% (in items) through:
●
Enriching product offering
across product categories
and segments, such as new credit products (personalized and pre-
advised loans), virtual credit card, virtual prepaid for teenagers,
“Salary Link” service (allowing employees to have salary
deposited into a Eurobank account), Motor & Pet
insurance products
●
Increasing traffic
and optimizing
journeys through
various digital
campaigns, promotions,
and events
for
a significant
number of digital
products. Additionally,
designing and making
the most of
new capabilities
to drive engagement
and
sales (e.g., personalized promo areas in e/m banking, lead generation
from eurobank.gr).
●
Designing
and
developing
new
hybrid
journeys
and
capabilities,
contributing
to
Eurobank’s
phygital
model.
Key
initiatives included
enhancements and
the addition
of new
products in
the Digital
Safebox (the
application is
initiated
at the
branch or through
telemarketing and completed
by the
customer via
e/m banking), guiding customers
to digital
channels during the “Book a Branch
appointment” process.
User experience
- The User
Experience (UX) team
prioritises the customer/user
in all Bank's operations.
UX Researchers
and
Designers work
to improve
the experiences
of both
customers
and staff
across various
channels and touchpoints,
applying
established design standards,
including accessibility considerations
and best practices.
To conduct
user research,
the team
utilises state-of-the-art
UX Lab
facilities,
employs
a variety
of methods
and custom
tools
(such as
user
interviews,
design
thinking, usability tests,
card sorting, tree testing).
This approach involves recruiting both external and internal users to
ensure
a holistic understanding of user needs and behaviours.
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The
UX
team
has
created
4
user
pools:
the
Digital
Community
(digital
banking
customers),
the
Digiators
(internal
staff),
Friends & Family, and Accessibility
for all (people with disabilities) to simplify processes
and efficiently gain insights.
During 2024, approximately
179 users, including users with disabilities,
were engaged in
31 research activities and testing
as
well as 326
users were
engaged in online
questionnaire for
9 projects.
User flows and
designs were
created for
117 projects.
It
also
implemented
design
systems
for
mobile
app,
e-banking,
eurobank.gr,
unify and
drive+
so as
to work
with
specific
design
standards,
patterns
and
components,
to
provide
consistent
experiences
and
efficiencies
to
the
design
and
development teams. Organised specialist accessibility training and experiential workshops for cross-functional collaborating
teams (25 hours).
Websites
- In
2024,
eurobank.gr
attracted
over
27.2
million visits
where
55% of
this traffic
originated
organically
through
search engines,
such as Google.
The year
also marked
a major technological
advancement with
a comprehensive
upgrade
to
the
Sitecore
infrastructure,
incorporating
features
like
Sitecore
Personalise
to
power
personalised
user
journeys.
Additionally,
ongoing improvements
to calculators
and interactive
tools were
implemented to enhance
the user
experience
and drive lead generation.
Social media
– With
11 active
channels on
different
platforms,
such as Facebook,
LinkedIn, Instagram,
TikTok
and YouTube,
Eurobank:
●
Recorded 334,951
interactions.
●
Produced content with 866 organic posts across
social media platforms.
●
Performed
community management, responding to 9,466
user comments
Community management
across
the
Eurobank’s
social media
channels helps
the
bank forge
better customer
relationships
within the
digital environment
but also
introduces
a new
approach
to the
bank-customer
relationship
and digital
sales. In
terms of interactions,
Eurobank ranked
1st on LinkedIn and
on TikTok
and 2nd on YouTube
across the
Greek banking sector.
The €pistrofi
loyalty
page on Facebook
was 1st in
interactions
and followers
growth
across the
Greek banking
sector.
Also,
Eurobank was the first bank to launch a TikTok series in Greece & create native content on TikTok,
adapting to the platform's
unique style and
user preferences.
Additionally,
it completely
transformed
its tone of
voice
for community
management on
TikTok,
ensuring it remains relevant and engaging to the
platform's audience.
Digital
Creative
Hub
–
Our
content
leading
team
with
dedicated
digital
copywriters
and
designers
responded
to
an
increased demand (+39%) for
digital content through 2,436
deliverables
for 597 projects
in Group Websites
(incl. Robochat,
chatBot features),
175 email campaigns, 93 digital channels product pages, flows
and microcopy projects.
Performance marketing
– Through digital advertising platforms, it helps business growth directly,
by supporting digital sales
in achieving their sales targets, and indirectly,
with marketing campaigns aiming at increasing brand
awareness. In 2024, 111
digital campaigns were
launched, reaching:
●
Over 4 million users
●
1 billion impressions
●
67.2
million video views
●
Approximately
16
million
clicks
Using
cookies
in
accordance
with
the
applicable
data
protection
legislation,
Eurobank continues to collect data from
user interactions
on its websites, to serve personalized
ad content.
Customer journeys and internal digitisation
– Eurobank continued to re-design and simplify
major customer journeys across
channels. Numerous
initiatives were carried
out across channels and segments, aiming to achieve customer
and operational
excellence through sustainable paths. As a
result, Eurobank achieved a Net Promoter Score (NPS)
over 40 in a
major customer
journeys.
Key highlights per journey:
●
Customer
onboarding
and
management
–
Made
it
easier
and
faster
for
customers
to
start
and
manage
their
relationship
with
it
through
physical
channels,
by
integrating
various
technologies
and
improvements,
such
us:
automating document submission and
e-kyc services, reducing customer signatures by 80%
and time-to service even
further.
Notably, for private clientele, it reduced signatures by 66%, as part of its commitment to excel on the wealth
management operation
spectrum.
●
Banking everywhere
– Empowered
its Relationship and
Branch Managers
to deliver
banking services
directly to its
clients, wherever
they may be, in
an effort
to boost service accessibility
and convenience.
From account opening to
card issuance, it is bringing the
Group to its customers’
doorsteps, with secure.
●
Lending journeys
– Reduced
time-to-cash even
further
less than
one and a
half days), aiming
to respond faster
to
customer
requests.
In
addition,
the
consumer
lending
process
achieved
remarkable
efficiency,
with
over
50%
of
applications seamlessly
progressing
without the
foureyes
principle, due to
automated checks.
Moreover,
Eurobank
maintained
a
robust
80%
automation
rate
on
credit
decision
procedure,
demonstrating
its
commitment
to
operational excellence and risk management. It
also recorded significant improvement in business financing,
leading
to
a
50%
reduction
in
time-to-cash
by
automating
credit
underwriting
(40%
in
simple
products)
and
contract
drafting
(90% automation).
As a
result,
within 2024
more than
1,000
businesses were
able to
proceed
in contract
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signing on
the
same
day they
visited the
branch
to apply.
Similarly,
it implemented
automated credit
decision in
revolving loan
renewal, aiming to boost solution scalability.
Business Analytics & Customer Value
Management
In 2024,
Eurobank
continued to
advance its
data-driven transformation
strategy,
leveraging
advanced analytics
and data
integration
to enhance
efficiency
and deliver
personalization
at
scale.
Through
its
Campaign
Management
platform,
the
Business Analytics and Customer Value Management team
executed over 30,000 actions and facilitated
47 million customer
interactions, optimizing communication
across both digital and physical
channels.
Eurobank’s
commitment to
data-driven
transformation
is exemplified
by the
successful
development
and deployment
of a
Comprehensive
Recommendation
Engine,
which
combines
machine
learning
algorithms
with
business
rules
to
effectively
prioritise
business
objectives.
This
initiative
resulted
in
2.1
million
customers
receiving
at
least
one
personalized
recommendation, covering
87% of the transactional
customer base.
Additionally,
Eurobank significantly
improved
its anti-money
laundering (AML) detection
processes through
the application
of diverse machine learning techniques, achieving
a 20-fold increase in accuracy. The
integration of AML data with advanced
visualization tools further streamlined case investigations, supported by GenAI-generated text to
assist agents
in articulating
the outcomes of ML-driven
analyses.
Eurobank also enhanced system
integration and automation
by successfully connecting its Campaign Management
System
with the mobile
app, enabling real-time
data flow and always-on campaigns.
Notably,
more than 60% of
digital sales were
driven by the Campaign
Management Ecosystem, reflecting the
impactful use of business analytics and AI.
These
achievements
underscore
Eurobank’s
dedication
to
driving
business
growth
and
operational
efficiency
through
advanced analytics, automation, and robust
data integration strategies.
External ESG awareness
Eurobank has taken measures
to assist stakeholders to assimilate ESG terminology,
opportunities and applicability. Building
ESG awareness
for
external stakeholders,
and particularly
for
clients, is
an integral
part of
Eurobank’s
Operational
Impact
Strategy.
Digital
Academy
for
Business
Eurobank
actively
supports
Greek
businesses
in
their
digital
and
sustainability
transition,
through
a groundbreaking
CSR initiative,
constituting a
catalyst for
business transformation
and success.
Since
2019,
the
Digital
Academy
has
been
offering
a
transformative
learning
experience,
tailored
to
the
evolving
needs
of
businesses in
the
digital age.
With
a deep
commitment
to fostering
digital literacy,
innovation
and entrepreneurship,
the
Academy stands as a beacon of excellence
in capacity building.
The scope
of these
actions is to
consistently deliver
exceptional service
and leveraging
digital innovations.
The timeline
for
completing these actions is ongoing, reflecting Eurobank's
commitment to adapting to and fostering innovation.
3.3.4
Metrics & Targets
Fostering Innovation
metrics [MDR-M]
The metrics are reflecting the performance of Eurobank, which is the Group’s key entity.
The primary metrics used to evaluate
performance and effectiveness
in relation to the e-Banking and Eurobank Mobile
App, as well as the Digital and hybrid sales
include:
2023
2024
Use of digital channels
Use of digital
channels-
% of mobile
users exclusively
using Mobile
App for their transactions
with the Bank on a monthly basis
78%
78%
Transactions
Volume
of digital transactions in respect to transactions (excluding
withdrawals/deposits) from
all Eurobank channels
95%
96%
Value
of digital
transactions
in respect
to transactions
(excluding
withdrawals/deposits) from
all Eurobank channels
54%
54%
Percentage change in volume
of digital transactions
15%
21%
Percentage change in value of digital transactions
12%
26%
Statements
e-Statements produced
(million)
4.7
5.3
Additional savings from e-Statement
use (€)
1,154,000
620,000
egg Start-Up
Platform
- The
initiative
is aimed
at start-ups
and business
teams with
innovative
business ideas
at various
stages of
development:
pre-seed,
seed and
early stage.
It provides
support for
their
business ventures
and helps
them
to
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develop
and bring their
product or
service to
market faster.
Once business
teams set
up the
company that
will implement
their business plan, they gain
access to specific financial tools to obtain financing based on their
needs.
egg Scale-Up platform
– It is addressed
to businesses with
significant growth
potential, which are
looking to increase
their
growth
and
reach
the
next
round
of
financing
through
their
accelerated
expansion.
The
egg
–
enter
grow
go
business
accelerator
has left its entrepreneurial and social mark:
●
1,500 entrepreneurs have been hosted in egg premises
●
450 business teams have been participated in egg Platforms
●
220 business teams have created legal entities
●
96 startups are spin-offs from Universities
in Greece and abroad
●
€49.2 million revenues
from 159 egg alumni startups
●
€55.2 million from private investment
funds (Equity funding - Funds/Business Angels) in 76 egg startups
●
€3.3 million financing from Eurobank
to 51 egg startups (Eurobank Financing Tool)
●
over €12 million Eurobank’s
investment in egg over
the past 12 years
●
360 recruitments (part time/full
time job)
●
61 companies have filed patents
●
83 companies have participated in 17 business trips to 10 innovative
ecosystems abroad (Europe,
USA, Canada,
Middle East) through egg extroversion
program
●
€75,000 from Eurobank
in cash prizes
●
€100,000 donated to charities
●
130 synergies among egg alumni
●
45 female CEOs in the egg startups
●
26.4% in egg community are women
●
Since 2020, egg has co-organised 52 events.
●
Since 2019,
egg has sponsored 32 initiatives.
Fostering innovation
targets [MDR-T]
Through the
Social impact pillar of the Sustainability Strategy,
the Group has set targets to enhance
accessibility initiatives
for
services
and products
targeted
to underserved
social groups
and raise
staff
awareness
and familiarity
on disabilities
through
experiential training by 2025.
3.4
Financial Inclusion [Entity-specific]
3.4.1
Strategy
Description of material impacts, risks and opportunities and their
interaction with strategy
and business model [SBM-3]
Eurobank
considers financial
inclusion as
a core
aspect of
its strategy
and business
model and
approaches
it in
a twofold
manner.
Offering financing products that specifically relate to infrastructure and supported services, aiming to assist businesses grow
and become updated, boost their competitiveness.
Making
its
services,
assets,
resources
and
opportunities
accessible
to
all.
This
means
continuous
investment
in
banking
services friendly towards persons with
disabilities, but above all, training and awareness
for all on accessible banking issues.
To
this
end,
through
its
network,
Eurobank
aims
to
maintain
its
presence
in
remote
and
inaccessible
areas,
serving
populations having difficulty to physically
access banking services.
The Group has identified social
impact financing, which
relates to activities such
as education, upskilling health care, financial
inclusion, social
cohesion
and gender
equality, as
a key
focus area.
The Group
understands that
social risk management
is
crucial to ensure an effective
and sustainable business model and has, therefore,
taken actions to adjust its business model,
strategy and
processes,
as well
as its financial planning
to account for
risks arising from
social matters,
planning to further
enhance such activities in the foreseeable
future. Key strategy
to manage those risks is the promotion
of financial inclusion.
Financial Inclusion
is a
strategic
business opportunity
in relation
to the
increase of
positive and
the
reduction
of negative
impacts has
identified and
have worked
on these
in the
reporting period
by constantly
identifying innovative
channels for
service delivery
and designing value-adding solutions, tailor-made to its customer
needs.
Regarding the Governance
-related information
please refer to :
1.3 Governance.
3.4.2
Impact, risk and opportunity management
Description of processes to identify and assess
material impacts, risks and opportunities [ESRS 2 IRO-1]
Through the
DMA Eurobank has identified the
following material
opportunity related to financial inclusion:
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Opportunity
Contributing
to
financial
inclusion
aligns
with
social
impact
goals,
positively
impacting
brand
reputation
and
offering
financing
to
underserved
populations,
such
as
students
and
geographically isolated communities.
The process
of assessing financial inclusion applies across all regions
where Eurobank
operates.
3.4.3
Policies related to financial inclusion
Policies related to financial inclusion
[MDR-P]
The Group’s
Sustainability Policy
Framework
is the underlying
policy describing its
strategic
objective to
adapt its business
and operations in a way that:
●
Addresses climate change challenges
●
Accommodates social needs within its business model, and
●
Safeguards prudent governance for
the Group and its counterparties, in accordance with supervisory initiatives and
following international
standards/ best practices.
The Sustainability Policy Framework makes explicit reference to the significance of financial
inclusion and its
role in the overall
sustainability
strategy
which
includes
its
commitments
and
targets
of
the
societal
pillar
for
boosting
accessibility
and
inclusion of customers by 2025.
In addition, in relation to the promotion
social finance, the Group has established the
Sustainable Finance Framework
which
defines
the
financing
approaches,
activities
and
criteria
that
need
to
be
met
in
order
for
financings
to
be
classified
as
sustainable. Specifically
for the
social pillar,
the Framework
sets out the
following
eligible activities and
associated criteria
that need to be met for
financings to contribute financial / economic inclusion purposes:
Activity
Eligibility Criteria
Exclusions
Employment generation
& Access to
financing
Infrastructure & other
projects that generate
local
employment
Microfinance & SME financing
Loans to
businesses in
excluded sectors
Equitable access to and control over
assets,
services, resources,
and opportunities
Financing to vulnerable groups
Financing of publicly accessible assets, services, and
resources
For more information
regarding Policies
related to Financial Inclusion please refer
to: “3.2.2: Policies related to consumers
and end-users [S4-1]” and 2.5.4
Policies and Actions.
Actions related to financial inclusion
[MDR-A]
Supporting small businesses and social finance
Eurobank
promotes
financing
products
that
specifically
relate
to
infrastructure
and
supported
services,
aiming
to
assist
businesses grow
and become
updated, boost
their
competitiveness,
and improve
the
quality of
the
products
and services
they offer.
These processes
have been embedded into the Group’s
operating model and are performed
on an ongoing basis
in the context of continuous financial inclusion:
●
Financing under InvestEU
RRF _GR under
the Member
State compartment
of the
InvestEU programme
for Greece,
funded by
the Recovery
and Resilience
Facility (RRF)
and in
line with
the
Recovery
and Resilience
Plan for
Greece
which targets actions in three areas
:
1.
Strengthening Competitiveness
"RRF GR SME Competitiveness" –RBB only
2.
Developing Innovation
& Digitalization "RRF GR Innovation
& Digitalization" (Not yet available CBN
& RBB)
3.
Sustainability
"RRF
GR
Sustainability"
(Not
yet
available
CBN
&
RBB)
with
the
Guarantee
of
the
European
Investment Fund (EIF). The funding available under the new (sub)programmes
is targeted at SMEs, to cover their
working
capital
needs
and/or
to
implement
investment
projects,
aimed
at
improving
their
competitiveness
including research & innovation,
sustainability, digitalisation and digital upgrading
of their operations.
●
Financing under
SME
Competitiveness
which benefits
from
support from
the
European
Union
under
the
InvestEU
Fund.
(RBB
only).
Through
InvestEU
SME
Competitiveness
Guarantee
Programme,
with
the
guarantee
of
the
European
Investment
Fund (EIF),
eligible enterprises
can access
liquidity with
reduced
collateral
requirements
and
favourable
pricing conditions to
cover their
working capital
needs and/or to implement
investment projects
aimed
at improving their
competitiveness.
●
EIB Funding (FIs 88311/2017,
89424/2018, 90866/2019) (Re-employment of funds for
CBN).
Standard facility
of EIB
Loan for
SMEs and
MidCaps, which
focuses
(for
at least
1/3) on
the
financing of
Final Beneficiaries
which promote youth
employment, in the context of the
EIB’s Jobs for Youth
Initiative.
SMEs and Midcaps that are financed for
“Jobs for Youth”
have an additional 20bps transfer
of financial advantage.
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●
Criteria for Jobs for
Youth Initiative:
o
In the
last 6
months it
has employed
at least
one young
person (5
for
MidCaps), or
in the
coming 6
months it
plans to
employ at least
one young person (5
for MidCaps), calculated from the signature date
of the On-lending
Agreement; it commits to keep the
young people in employment for
at least 1 year
o
In the last 6 months it has provided
a vocational training
or internship position to at least one young person
(5
for
MidCaps), or
in the
coming 6
months it
plans to
provide
a vocational
training
or internship
position to
at
least one young person
(5 for
MidCaps), calculated from
the signature
date of the
On-lending Agreement.
The
training/internship
has a duration
of at least
3 months and
is formalised
by an active
cooperation
agreement
with a technical school, university or public employment agency and/or is confirmed by a letter signed by one of
these
institutions
and/or
is
part
of
the
Final
Beneficiary’s
own
formalised
vocational
training
or
internship
programme,
and/or
o
In
the
last
6
months
it
has
participated
in
a
youth
entrepreneurship
programme
of
a
Non-Governmental
Organisation or educational
institution, or plans to participate in such programme
in the coming 6 months.
HDB Programs
Co-Financed Programs
●
TEPIX III (Co-financing rate 40%-60% HDB/ERB)
The Fund improves the
access to finance for all small and medium-sized enterprises (SMEs) and aims to support
and
develop
their business
activity,
so as to
cover
a wide range
of their
financing needs.
Furthermore,
the programme
aims to
enhance
the
productivity
of the
enterprises,
by
improving
their
processes
for
products
& services
and to
improve their
competitiveness.
●
Micro Agri (Co-financing rate
50%-50% HDB/ERB).
The
Fund aims
to provide
micro loans
for
investment purposes,
covering
investments in
agricultural sector,
as well
as in
investments
related
to the
processing
of agricultural
products
with
a final
product
that
is also
agricultural.
Working Capital may be granted
subject to and for the purposes of investment.
●
Business Growth Fund (Co-financing rate
HDB/ERB 40%-60%).
Green Loans Program
The Fund
aims to support SMEs
to meet
their investment
purposes in implementing
Green Transition
projects that
facilitate reducing emissions,
protect the environment
and reduce energy
consumption costs.
●
Digital Loans Program
The Fund aims to support SMEs to meet their
investment purposes, which are submitted via a business plan, in
order to digitize and digital upgrade their
operations, so as to increase
productivity, achieve
business growth and
create new jobs.
Guarantee Programs
●
TEPIX III
This Fund
was designed
by the
HDB to support
SMEs by
offering
them not
only the
necessary liquidity
and capital
for investments but also the ability to
reduce their financing costs. The zero guarantee fee, grace period, and interest
subsidy
make
financing
more
accessible,
while
revolving
credit
facility
provides
the
flexibility
that
SMEs
need
to
respond to the constantly changing market needs. Additionally, the investment and special purpose working capital
loans enable SMEs to implement their strategic
investments, expand, and enhance their
competitiveness.
●
Tameio
Eggyodosias TMEDE
The Fund aims
to enhance the
liquidity of SMEs of the
construction and engineering
sectors that wish to undertake
or have undertaken
the execution
of projects and/or
studies of public interest,
regardless of the
stage of execution
of the project or study, through the provision
of guarantees to the cooperative Credit Institutions providing
Working
Capital
Loans,
with
a
regular
maturity,
with
a
disbursement.
(RBB
only). Active
program
in
1st
semester
of
2024,
expected to be reactivated again
o
Tameio
Eggyodosias Kainotomias
finance innovative
SMEs, for
the implementation
of investment
projects, with
the aim of research and innovation,
through the
creation and implementation
of a new or significantly improved
product or a process,
a new marketing method
or a new organisational
method in business practices,
workplace
organisation. (RBB only). Active
program in 1st semester
of 2024, expected to be reactivated again.
●
DeLFI GF
It applies to existing and newly established Very
Small, Small, and Medium-sized Enterprises (SMEs) that have been
classified under a support scheme through
the new Development
Law 4887/2022. (RBB & CBN)
In the area of financial inclusion, there
also the following
actions:
●
Moving Education
Forward
- Professional
MSc on
Digital Transformation
: we
are covering
all the
expenses of
a
new MSc at the Athens University
of Economics and Business, and in this way, we are helping up to 25 young people
to study with very low fees in a field of high demand and enter the job market successfully.
We have also committed
to be hiring 10 of them each year.
●
Moving
Education
Forward
-
mprostagiatinpaideia.gr
:
we
are
funding
development
and
operation
of
a
digital
platform for connecting students with
the job market, though training
for hard and soft skills, counseling, mentoring
and internships.
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●
Moving Family Forward
- As part of Eurobank’s program
for addressing the
demographic problem,
focusing on the
country’s eastern borders,
we have
moved 75 europhone
banking. positions to
Evros and
Northern Aegean
Islands,
creating opportunities for young
people to work from home and have
their families there.
●
Moving
Family Forward
- Free IVF
to underprivileged
young couples: We
are supporting young
families who need
to have
an IVF
treatment in
order to
have a
baby.
In this
way we
give them
access to medical
infrastructures
and
services that they
would not be able to use otherwise.
50 kids have been born so far in this way.
●
Reviving savings culture
- we are
collaborating with
the Hellenic
Financial Literacy Institute
in order to help
young
children understand the concept of savings, through two sub-projects: Awarding student assays on
the International
Savings Day
– 31
st
of October,
and training teachers
on savings and
other
financial literacy
topics in order
to pass
this knowledge to their young
students.
Making banking accessible
Focusing
on customer
service, Eurobank
aims to
make its
services,
assets, resources
and opportunities
accessible to
all. To
this end,
through its branch network (266
branches), the Hellenic Post Office network (469
offices) and the self-service banking
terminal
network
(1,627
service
points), Eurobank
aims to
maintain its
presence
in remote
and inaccessible
areas,
serving
populations having difficulty to physically access
services, as well as people with disabilities.
100% ATM with voice
guidance
and
117
ATM
(10%)
for
wheelchair
access.
Through
the
Hellenic
Post
branches,
Eurobank
is
present
in
238
Municipal
Communities with
a population
of less
than 5,000
people, many
of whom
have
difficulty
accessing
services,
especially on
remote islands (e.g. Agathonisi, Anafi, Karpathos,
Nisyros, Tilos, Halki, Folegandros,
Amorgos, etc.). Additionally, in 242 areas
with a
population
less than
5,000
people, access
to services
is provided
via off
-site ATMs
(e.g. Agios
Efstratios,
Alonissos,
Symi, etc.). In 2024, the
number of ATMs
with deposit facilities
increased by 206,
as OffSite ATMs
with deposits were
added
and the old ELTA
ATM fleet was replaced.
The 52% of the
ATM fleet has already deposit
functionality.
With customer
service being a key priority,
Eurobank is also particularly aware
of the need to make its services
accessible to
people with disabilities
and takes all
the appropriate
measures.
Specialized banking personnel
in the innovative
v-Banking
service
are
continuously
trained
in
sign
language
to
guide
deaf
and
hard-of-hearing
customers
step-by-step
via
video
communication.
E-banking is
now accessible
to people
with visual
impairments,
mobility issues,
epilepsy,
dyslexia, hearing
loss, and more,
through continuous
accessibility audits and
improvements
based on WCAG
level
AA. Specifically,
font sizes
for text,
images, etc., have
been adjusted, as
well as colors
and contrast
ratios
between text
and backgrounds
to meet the
minimum contrast
ratio
of the
4.5:1 rule.
Navigation can
be done
via the
keyboard,
and the
code is
properly
structured
to
work
with
any
assistive
technology.
The
content
structure
facilitates
navigation
for
users
using
assistive
navigation
technologies, such as the correct
order of headings, texts, and various components using appropriate
HTML tags.
In
addition,
Eurobank
is
creating
conditions
for
seamless
banking
services
for
individuals
on
the
autism
spectrum.
In
collaboration
with Happy
Act, the
Group is
mapping the
environments
of future
branches
to identify conditions
and areas
that
can
serve
as
sensory
relief
spaces.
Additionally,
sensory
maps
and
social
stories
are
being
developed
and
will
be
available on interaction tables and the website, allowing customers and their companions to understand the conditions they
will encounter at the branch
in advance.
Eurobank also
offers
clients the
option to be served
in English at branches
and through
EuroPhone Banking,
while English is
also available
as an
option
at ATMs.
EuroPhone
Banking, v-Banking,
e-Banking and
the
Eurobank
Mobile
App contribute
significantly
to
customers
having
access
to
services.
The
Group’s
new
“Going
from
physical
to
phygital”
approach,
an
innovative mentality that combines physical
service with technology,
introduces a new perspective
in the Bank’s relationship
with its customers. Furthermor
e, the Retail International Customers One-Stop Hub offers
continuous support to non-resident
customers. As
it is referenced
in more detail
at section
3.4 Fostering
Innovation, Eurobank
Group Digital
Banking leverages
its expertise
to provide
innovative,
data driven
financial products
and services.
Placing customers
at the
centre,
it delivers
simple, personalized
products and
ensures easy
access to them.
Bringing technology closer
to everyone,
it acts as
a digital
and phygital key enabler
and Eurobank’s main digital culture
ambassador.
Our actions
to make
Eurobank’s
services,
assets, resources
and opportunities
accessible to
all consumers,
are strategically
adapted and
deployed
across
subsidiaries in
Bulgaria, Cyprus,
and Luxembourg.
Example of
relative
initiatives
are
Touch
Credit
and
Debit
Cards
designed
to
make
payments
more
accessible
to
visually
impaired
customers,
ATM/Branch
accessibility
for
people with
disabilities, responsible
individual in
each branch
to assist
people with
disabilities, etc.
While
these
programs
are tailored
to address
the
specific local
contexts and
regulatory
environments,
they
remain aligned
with
Eurobank’s ove
rarching sustainability objectives.
Moreover,
in 2024, Eurobank tried to improve
customer service and productivity
by:
●
Scheduling appointments
at all
Eurobank
branches
– Over
1,114,000
appointments were
scheduled throughout
the
year. The online appointment booking option (through eurobank.gr) became available towards the end of July 2023.
Τhe total appointments during the
whole year 2024 was 32%.
●
Increasing
the
time
relationship
managers
allocate
to
each
client
–
To
achieve
this,
Eurobank
implemented
2
changes:
o
The Eurobank
call centre answers
incoming calls to all branches, allowing for
faster and more efficient
service.
o
Branch
staff
between
10:00
–
13:00
focus
on
advisory
services
and
customers
can
carry
out
monetary
transactions exclusively with the use of self-service transaction
terminals. This has been implemented in 264 out
of 266 branches.
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●
Launching the project Mobility – This project
allows offsite banking, as part of the Group’s
consulting approach and
the further
development of
its services. 1,400
officers have
offsite access during
their visit to a
customer’s premises,
to provide end-to-end services
for a specific range of banking transactions/products.
●
Enhancing digital and
hybrid offering with the Digital Safe Box
– This allows customers to
get even complex products
remotely, signing all necessary paperwork
through their e-Banking, in line with Eurobank’s
“bank everywhere”
vision.
The
Digital
Safe
Box
accounts
for
10-15%
of
product
sales,
for
available
product
categories,
while
numbers
are
growing, and a wider product
range is expected to be covered.
Eurobank has
an exclusive cooperation
agreement with
Hellenic Post (ELTA)
that allows
Eurobank’s customers
to enjoy core
banking services
through the
Hellenic Post
branch network.
With more
than 465 branches
and 116 ATMs
across Greece,
the
Hellenic
Post
branch
network
provides
extensive
nationwide
service,
both
in
urban
and
in
remote
areas,
where
banking
presence is limited or non-existent.
In
addition.
Eurobank’s
Telemarketing
is
an
alternative
channel
which
promotes
products
and
services
to
existing
Group
customers. The promotions
and targeted customers are selected in collaboration with 3 segments (IB, PB, SB). Telemarketing
offers
direct,
personal
and 2-way
communication.
The
sales
are
completed
over
the
phone,
digitally or
at
the
customer’s
place of choice. The main promotional products
are credit and debit cards, and simple bancassurance products. Information
is provided directly over
the
telephone or through referral
to the branch network.
In 2024, Eurobank received
three awards at the Diversity,
Equity & Inclusion Awards 2024 organised by the Diversity
Charter.
The
Eurobank
was recognised
for
its features
and services
aimed
at improving
the
experience
of people
with disabilities,
achieving high scores in the categories
of "Bank Strategy" and "Innovation/Creativity".
●
Diversity, Equity & Inclusion
Awards 2024 by Diversity
Charter:
o
Gold Award in "Mental Health
& Neurodiversity"
for initiatives supporting individuals on the
autism spectrum.
o
Silver
Award
in
"Disabilities/Chronic
Diseases"
for
comprehensive
efforts
to
improve
services
for
people
with
disabilities.
o
Silver Award
in "Physical Abilities" for initiatives
aiding individuals with mobility challenges.
●
National Customer Service
Awards 2024:
o
Excellence
Award
in
"Best
Outsourcing
Partnership":
Recognized
for
collaboration
with
The
Happy
Act,
enhancing accessibility in next-generation
branches for
individuals on the autism spectrum.
o
Best
Organisation
for
ESG
Factors
&
Practices
in
Customer
Service:
Recognised
for
its
innovative
practices
across
service
channels,
recognised
for
the
inclusion
of
customers
with
disabilities
through
technology,
and
noted for its systematic approach
to measuring
and leveraging
ESG practices.
Additionally, Eurobank
received three
awards at DEI Bite awards 2024.
The
Group
was recognised
for
projects
Mobility
& online
customer
appointment.
Eurobank's
adopts
the
human-centered
Phygital
model,
combining
technological
infrastructure
with
the
human
factor
to
provide
simple,
fast,
and
personalized
service. The
term Phygital is derived
from the combination
of physical and digital experiences and interactions.
●
Μοbility
o
Gold award in Digital Transformation
of Customer Experience
o
Silver award in Digital Transformation
of Business Model
●
Online Customer Appointment
o
Bronze award in Digital Transformation
of Business Model
3.4.4
Metrics & Targets
Financial inclusion metrics [MDR-M]
Supporting small businesses and social finance
With respect to SME support and social finance, Eurobank, which is the Group’s key entity, measures
its performance through
the financing amounts directed to through
relevant programs:
Outstanding balance as of
31.12.2024 (€ mn)
Disbursed amounts in 2024
(€ mn)
EIF – ESIF ERDF
20.7
-
Financing under the European
Commission’s EaSI
1.8
-
Hellenic Development Bank (HDB) TEPIX III
125.8
169.6
Business Growth Fund
13.4
1.4
EAT Micro
AGRI
0.8
0.5
Tamio
Eggiodosias EAT TMEDE
1.3
0.4
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Tamio
Eggiodosias Kenotomias
1.5
0.3
Mortgage Loans for Multichild families
in remote areas
0.8
0.8
“My Home”
44.3
31
Total
210.5
204
Making banking accessible
Through the
Hellenic Post branches,
Eurobank is present
in 238 Municipal Communities
with a population of
less than 5,000
people,
many
of
whom
have
difficulty
accessing
services,
especially
on
remote
islands
(e.g.
Agathonisi,
Anafi,
Karpathos,
Nisyros, Tilos,
Halki, Folegandros,
Amorgos, etc.). Additionally,
in 242 areas with a
population less than 5,000
people, access
to services is provided via off
-site ATMs (e.g. Agios Efstratios,
Alonissos, Symi etc.)
The following
metrics and actions demonstrate
Eurobank’s efforts
to serve people with disabilities:
●
100% ATM with voice
guidance and 117 ATM (10%) for
wheelchair access
●
Customers
with disabilities
receive
priority service
at all
branches,
where
appropriate
signage and
Braille
writing
are
provided
at
the
entrance,
and
managers
use
QR
codes
via
Nemo
Q
machines
to
ensure
maximum
priority.
Additionally,
priority
service
is
provided
through
Europhone
Banking,
where
keywords
such
as
"disability"
are
recognised
by the
voice
portal and
routed
to a
dedicated skill
set serviced
by specially
trained
agents, based
on
customer declaration.
●
92 branches
have access
ramps for
customers
with reduced
mobility,
all new
branches
feature
permanent ramps,
and 7 branches have detachable
ramps, with plans to expand to more branches
by 2025.
●
All transaction
documents are
emailed in a
format readable
by assistive
technologies, allowing
people with visual
impairments to read them immediately,
easily, and safely.
●
More
than
1117
ATMs
and
441
APS
are
installed
at
a
lower
height
to
serve
customers
in
wheelchairs
at
selected
branches, as detailed in the
Br./ATM
locator on Eurobank.gr.
●
People with visual impairment can receive
documents in Braille and statements in pdf that can
be read by assistive
technologies.
●
Eurobank’s innovative
v-Banking service
includes specialized banking
personnel trained
in sign language,
enabling
deaf
and
hard-of-hearing
customers
to
receive
comprehensive
assistance
through
video
communication.
This
service allows them to update their
information via e-banking without visiting a branch
and consult with experts on
complex issues, ensuring full access to banking services
from the comfort
of their home.
●
More than 1186 ATMs are equipped with voice guidance that gives instructions in private on how clients can perform
their transactions.
●
Continuous accessibility audits drive in improvements
based on WSAG 2.1
level AA in digital channels.
●
The website features
dedicated pages that provide
information on multiple service
options tailored to each type of
disability, and it offers
people with disabilities the
opportunity to communicate
their suggestions
to the bank
via a
special contact form.
●
Eurobank enhances awareness through educational programs attended by 1,827 employees, including online
courses
and experiential training, as well
as inspirational events involving
approximately 2,500 employees.
●
11 staff members have
participated in training on sign language.
Financial inclusion targets [MDR-T]
Through the
Societal impact pillar of the sustainability strategy,
and specifically, the
commitment to boost accessibility and
inclusion
for
customers
by
2025,
the
Group
has
set
targets
to
enhance
accessibility
initiatives
for
services
and
products
targeted
to underserved social groups and raise
staff awareness and familiarity on disabilities through experiential
training.
In
2025,
with
the
integration
of the
digital disability
card
into the
Bank's systems,
customers
with
disabilities
receive
the
highest
priority
in service
at
all branches.
Customers
with
disabilities are
able to
use their
debit or
credit
card
to receive
expedited
service
through
the
Nemo
Q
system,
provided
they
have
submitted
their
digital
disability
card.
Additionally,
Eurobank offers
exclusive benefits and discounts with
the Digital Disability Card.
These include the
Eurobank My Advantage
Blue privilege package, which is available free of charge for
2025 and 2026, and a preferential
interest rate of 1.85% for
one
year
on the
"Αποταμιεύω"
savings account
for
amounts up
to 5,000
euros,
compared to
the
current
interest
rate
of 0.30%.
These
initiatives are
part of
Eurobank's
broader
financial inclusion
targets, aiming
to provide
equitable access
to financial
services and benefits.
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4.
Governance Information
4.1
Business conduct [ESRS G1]
4.1.1
Governance
The role
of the administrative,
management and supervisory bodies [ESRS 2 GOV
-1]
The
CEO has
administrative
oversight
of Board
of Directors,
through
the
Audit Committee,
which is
provided
with reports
from the
independent function of
Group Compliance.
Eurobank addressed
the role
of the administrative,
management and
supervisory
bodies
related
to
business
conduct
through
a
range
of
Board
Committees
that
support
Eurobank’s
strategy,
governance and regulatory
adherence:
Audit Committee
The
primary function
of the
Eurobank
Holdings and
Eurobank
Audit Committees
(ACs) is
to assist the
Board in
discharging
its oversight responsibilities primarily
relating to the:
●
Review
of the
adequacy of
the
Internal
Control
and Risk
Management
systems, and
compliance
with rules
and
regulations monitoring process.
●
Review of the financial reporting process
and satisfaction as to the
integrity of the Financial Statements.
●
External Auditor selection, performance
and independence.
●
Effectiveness and
performance
of the Internal Audit and of the Compliance
function.
●
In line with
the stipulation
of the
Law 5164 (Article
43), Audit Committee (AC)
has been entrusted
with additional
responsibilities concerning the
submission and assurance of the
Sustainability Statement
Board Risk Committee
The Eurobank
Holdings and Eurobank Board
Risk Committees (BRCs) assists the Board in risk issues and ensures
that:
●
The
monitoring of
the
overall
actual and
future
risk appetite
and strategy,
takes into
account all
types of
risks to
ensure that they
are in line with the business strategy,
objectives, corporate
culture and values of the institution.
●
The
risk management
framework
is appropriate
and integrated
in the
decision-making
process.
The
Committees
also define the risk management principles.
●
There
are suitable
methods,
tools, models
and data
sources
in place,
as well
as qualified
and competent
staff
to
identify, assess, monitor and mitigate risks.
A
range
of
committees
established
by
the
CEO
and
functions
support
Eurobank's
strategy,
governance,
and
regulatory
adherence.
Among these, key committees and functions
with roles in overseeing
business conduct include:
●
Executive
Board
: Manages
the
implementation
of the
group's
strategy
and
aligns operational
goals
with
Board
guidance, ensuring actions are conducted ethically
and transparently.
●
Ethics
Committee
:
Ensures
compliance
with
the
Code
of
Conduct
and
Ethics,
promoting
a
code
of
values
for
employees, officers,
and collaborators.
●
Regulatory
Matters
Committee
:
The
purpose
of
the
Regulatory
Matters
Committee
(RMC)
is
to uphold
ethical
practices and ensure the highest
standards of conduct by coordinating the actions required
to improve the Group’s
compliance
with
existing
or
new
regulatory
requirements.
In
this
context,
the
Committee actively
monitors
and
oversees projects
to address the impact of new regulatory
requirements as well
as control improvements
identified
by the Group’s
control functions, external
auditors, and regulators.
●
Group Compliance
: Plays
a critical
role
in upholding
regulatory compliance
and ethical
conduct standards
across
Eurobank’s
operations
by
ensuring
adherence
to
corporate
governance
standards
and
training
Eurobank’s
employees in the Code
of Conduct and Ethics.
●
Group
Internal
Audit
(Group
IA)
:
Independently
reviews
the
adequacy
and
effectiveness
of
the
internal
control
framework
in place regarding Sustainability risk related
areas.
●
Committee against
Violence
and Harassment
in Workplace:
The
main objective
of the
Committee is
to examine
and manage complaints
/ reports
concerning incidents
of violence
and harassment
at work,
as well
as to take
the
necessary, appropriate
and suitable measures on a case-by-case basis, to prevent and not reoccur
similar incidents
or behaviors.
The
expertise of
the
administrative,
management and
supervisory
bodies on
business conduct
matters
is ensured
through
Directors’ Induction
and Continuous
Professional
Development
Process.
All new
Board members
undergo a
comprehensive
Induction Program
designed to achieve several
key objectives.
●
Firstly, it aims to convey the
vision and culture of the HoldCo/Group.
●
Secondly, it covers
practical procedural
duties to ensure a smooth transition into
their roles.
●
Thirdly,
it
aims
to
expedite
their
productivity
by
reducing
the
time
needed
to
familiarize
themselves
with
their
responsibilities.
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●
Fourthly,
it integrates them as valued members
of the Board.
●
Fifthly, it familiarizes
them with the HoldCo/Group's
organisational structure.
●
Lastly, it provides
an understanding of
the HoldCo/Group's
business, strategy,
market dynamics, relationships,
and
its people.
4.1.2 Impact, risk and opportunity
management
Description of the processes
to identify and assess material impacts, risks and opportunities [ESRS 2 IRO-1]
Eurobank identifies
material impacts, risks,
and opportunities related
to Governance
and Business Conduct practices
—such
as corporate
culture,
anti-corruption
and anti-bribery
measures,
and whistleblower
protection—through
a comprehensive
DMA.
This
approach
integrates
industry
benchmarks,
stakeholder
insights,
and
financial
relevance
to
ensure
a
robust
evaluation of governance
-related topics.
The material impacts
identified through our DMA exercise
are shown in the table below:
Corporate culture
Impact
Positive
Actual
Implementing operational
practices and initiatives
that improve
stakeholders’ ability
to benefit from effective,
accountable, and inclusive institutions, thereby
promoting
business ethics and integrity.
Corruption and bribery
Impact
Positive
Actual
Commitment to corporate integrity is strengthened
through the
implementation of
robust anti-corruption
and anti-bribery policies, promoting
a culture of transparency
and ethical behaviour.
Negative
Potential
Corruption-related
incidents can result in operational
disruptions, redirecting
resources towards
crisis management and adversely affecting
Eurobank’s day-today
business activities.
Protection of whistleblowers
Impact
Positive
Actual
Commitment to whistleblower
protection positively
impacts society, employees,
customers, and shareholders,
setting a precedent for ethical
behaviour and fostering
a secure environment where
misconduct is timely identified and stopped.
The
process
of assessing
governance
and business
conduct practices
applies across
all regions
where
Eurobank
operates,
and concerns staff
members, customers,
contractors, suppliers,
beneficiaries or other
persons or entities that
participate or
seek to participate in activities that involve
Eurobank.
As mentioned in Reporting of Illegal
or Unethical Conduct Policy Statement, all staff members and all concerned third parties
are encouraged to submit a report
regarding any incident of actual, attempted or reasonably
suspected illegal or unethical
behaviour which
affects
and/or may
be harmful
to Eurobank
and its
mission, Eurobank’s
staff members
or concerned
third
parties. This
process
may, indicatively
and not exhaustively,
refer
to incidents of
serious
misconduct or serious
violations
of
Eurobank’s
procedures,
policies,
guidelines
or
of
the
Code
of
Conduct
and
Ethics
or
anything
that
could
damage
the
reputation of Eurobank,
as well as any attempt to cover
up the above. It may also include violations
of laws and regulations
and various
forms of
criminal behaviour,
integrity violations
and/or unethical
behaviour including,
but not
limited to,
theft,
embezzlement, corruption, bribery, conflicts of interest, money laundering, abuse or improper use of
inside information, abuse
or improper use of Eurobank
property,
etc.
Group Compliance is responsible for the design, implementation, operation and improvement of the reporting system as well
as for the reporting
on the performance
of the reporting system to top management.
Business conduct policies and corporate
culture [G1-1]
In relation to Eurobank’s
policies on business conduct matters, in order
to develop, promote
and evaluate corporate culture,
Eurobank established
mechanisms for
identifying, reporting and investigating
concerns about behaviour
in contradiction of
Code of Conduct &
Ethics. Specifically, a series of measures and controls are established that include carrying out monitoring
exercises, using systems,
providing appropriate training to employees and
having an
appropriate body in place
which reviews
cases
relating
to the
Code by
control
and monitoring
while
also accommodating
reporting
from
internal
and/or external
stakeholders.
Group Compliance
is responsible for
reviewing and
revising relevant
policies regarding
the Business
Conduct.
Eurobank prioritises the interests of its key stakeholders, including customers, employees, investors, and the community, when
setting
policies.
The
Board
of
Directors
regularly
reviews
the
Group’s
operations
to
ensure
they
meet
stakeholder
expectations and
regulatory requirements.
Based on
their assessments,
the Board
approves
any necessary
policy changes
to align Eurobank's practices
with stakeholder needs
and values.
Eurobank
has
developed
policies
on
Anti-bribery
and
Corruption
consistent
with
the
United
Nations
Convention
against
corruption
and
protects
whistleblowers
through
internal
reporting
channels
such
as
Whistleblowing
Mechanism.
All
staff
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members are encouraged to raise issues of concern and speak up when they suspect potential wrongdoing or are faced with
conduct or situations that may raise
ethical, legal or regulatory concerns.
A Policy for Reporting Illegal or
Unethical Conduct is in
place and a
respective Policy Statement to facilitate its staff members
and
concerned
third
parties
to
submit
reports
–
through
recommended
internal
or
external
reporting
channels
–
on
any
actual, attempted or suspected fraud or other
unethical conduct, while eliminating any concerns that
their report may result
in adverse consequences for
themselves.
Eurobank
implemented
the
following
measures
to
protect
against
retaliation
on
employees
who
are
whistleblowers
in
accordance with the
applicable law transposing Directive
(EU) 2019/1937 of the European Parliament
and of the Council:
●
Zero
Tolerance
:
Eurobank
applies
a
strict
zero-tolerance
approach
to
any
instances
of
retaliation
against
whistleblowers,
ensuring
protection
for
those
reporting
fraud,
corruption,
money
laundering,
or any
conduct
that
could damage Eurobank’s reputation.
●
Confidentiality
Assurance
:
Eurobank
is
committed
to
maintaining
confidentiality
of
whistleblowers’
identities.
Reports
submitted
by
employees,
or
third
parties
are
kept
confidential,
as
long
as
the
information
provided
is
accurate and submitted in good faith.
●
Safe Reporting Environment
: Unit heads are required to foster a workplace
atmosphere where
employees feel safe
to report
issues. This
includes
encouraging
open
communication
and
ensuring
staff
feel
free
to express
concerns
without fear of adverse
consequences.
●
ISO certifications
: Surveillance for ISO certification
(37002) on the management of the Whistleblowing
System and
new ISO certification
(37001) on Anti-Bribery and Corruption
Management Systems.
●
Accessible Reporting Channels
: Eurobank provides
multiple reporting channels to report misconduct:
o
Email: Reports can be submitted to the dedicated email
address, ethicshotline@eurobank.gr.
o
Phone Hotline: A 24/7 phone line (+30 214 4058990) is available for
reporting concerns at any time.
o
Postal Mail: Reports
can also be
sent by mail
to the
Report Receiving and
Monitoring Officer
(RRMO) and the
Assistant RRMO.
●
Encouragement
to
Speak
Up
:
The
policy
actively
encourages
all
staff
to
voice
concerns
and
report
suspected
wrongdoing, particularly if they
encounter conduct that raises ethical,
legal, or regulatory questions.
●
Centralized Reporting
and Monitoring
: All reports,
regardless of the
internal party that
initially receives
them, are
forwarded
to the
Report Receiving
and Monitoring
Officer
(RRMO), and
the
Assistant RRMO,
ensuring consistent
handling and monitoring of reported issues.
Beyond the procedures to follow-up on reports by whistleblowers in
accordance with the applicable law
transposing Directive
(EU) 2019/1937, Eurobank investigates procedures
on business conduct
incidents, including incidents
of corruption and bribery,
promptly, independently and
objectively.
For more information,
refer to [G1-3].
In 2023,
a new
digital learning programme
on the
Code of Conduct
and Ethics
was carried
out
to all staff,
which included
corruption
and bribery
issues as
well,
that continued
in 2024
for
all the
newcomers
employees,
aiming to
raise
awareness
and cultivate
a strong
culture
of values
and integrity.
Additionally,
in 2024
the
updated
Code of
Conduct and
Ethics
was
distributed to all staff to raise awareness
and educate the employees.
Eurobank confirms that
is subject to legal requirements under
national law transposing Directive
(EU) 2019/1937 with regard
to the protection
of whistle-blowers.
Eurobank has in place the
following policies
with regard to business conduct:
●
Code of Conduct and Ethics
●
Anti-Bribery and Corruption Policy
●
Conflicts of Interest Policy
●
Policy for
Reporting Illegal or Unethical Conduct
●
Group Antitrust Compliance Policy
●
External Engagement Policy
●
Insider Dealing Guideline
●
Management of Complaints policy
●
Personal Data Protection
Policy
Eurobank’s
mission is
to promote
a sustainable
compliance
culture that
encourages
integrity through
ethical
conduct and
commitment
to
compliance
with
the
applicable
regulatory
framework
and
the
international
corporate
governance
standards.
Key actions taken to establish, develop
and promote corporate
culture include:
●
Expanding the
Compliance Risk Assessment
Framework,
including coordination
of the
Compliance risk assessment
activities in the areas of corporate
governance and data protection.
●
Introducing a Regtech solution for
regulatory analysis and preliminary impact assessment.
●
Further calibrating
the AML risk assessment process
and enhancing the AML transaction
monitoring system.
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●
Launching an
automated
ML/TF risk
assessment
mechanism
for
financial institutions/banks,
as well
as additional
scenarios in the correspondent
banking transaction monitoring system.
●
Developing scorecards
for financial institutions, and a monthly Power
BI activity report for correspondent
banking.
●
Offering continued support and monitoring the
implementation of the AML e2e
projects in Bulgaria and Cyprus.
●
Implementing further
actions to increase the effectiveness
of MiFID controls.
●
Participating
in an advisory
capacity in
a bank-wide
project for
advisory products
and services,
and in bank-wide
projects relating to bancassurance
business, deposit products and payment services.
●
Obtaining ISO surveillance (37002) on the
management of the Whistleblowing System.
●
Obtaining ISO certification (37001)
on the management of Anti-Bribery and Corruption
System.
●
Further
revising
the
Policy
for
Reporting
Illegal
or
Unethical
Conduct
and
appointing of
a
Report
Receiving
and
Monitoring Officer
responsible for
receiving and
monitoring of reports
received
through the
reporting channels
for
illegal or unethical conduct.
●
Revising the Code of Conduct and Ethics
●
Developing a compliance control
catalogue.
●
Continuing initiatives
for
developing
data
analytics capabilities
within
Group
Compliance
and granularity
of the
Compliance Risk Appetite Framework.
●
Finalising the GC skillset mapping and identifying development initiatives vis-à-vis the GC Target Operating
model.
●
Successfully completing digital learning
programmes – such as specialist
AML workshops by business
line, and digital
learning on Code of Conduct and Ethics – and completing of establishment of a dedicated space within Eurobank’s
intranet as part of the
awareness initiatives.
During 2024, the following
actions set by Group Compliance
were successfully
completed:
●
Maintaining the percentage of at least 65% of the Group Compliance staff members holding certifications
on issues
regarding money laundering and terrorist
financing, compliance, operational
risk and related topics.
●
Providing training
on the
Code of Conduct
and Ethics and
its complementary
policies to
at least 95%
of Eurobank
employees and executives.
●
Conducting training
sessions on consumer
protection
issues, payments
and consumer
credit, as part
of Eurobank’s
consumer protection
actions.
●
Updating the
Code of
Conduct and
Ethics,
the
Conflicts of
Interest
Policy,
the
Group
Antitrust Compliance
Policy
and public statements (Anti-bribery Corruption and Policy, External Engagement Policy,
Illegal or Unethical Conduct
Policy)
●
Providing training on antitrust
issues to relevant personnel.
●
Providing training on Consumer Protection
issues, aiming to raise awareness and cultivate a strong culture of
values
within the Group.
●
Training Conflict of Interest
to all staff.
●
Training Insider
Dealing Guideline - Market Abuse to all staff.
Introducing
Supplier Code
of Conduct
and Ethics
inviting the
Eurobank’s
Suppliers to
accept the
content and
terms of
the
Code. Code of
Conduct establishes clear
principles and
rules that must
be followed to ensure that the Eurobank’s partnerships
are built upon fundamental values such as integrity,
transparency,
and responsibility.
Regarding
2025,
Group
Compliance
intends
to
continue
maintaining
the
percentage
of
at
least
65%
of
the
Group
Compliance staff members
holding professional
certifications on issues
regarding money laundering
and terrorist financing,
compliance, operational
risk and
related
topics. Eurobank
can measure
this target
by tracking
the
percentage
of certified
staff
on
a
regular
basis.
By
achieving
this
target,
Eurobank
will
enhance
the
team's
expertise
and
improve
the
overall
compliance framework within the organisation.
Progress will be assessed regularly, with a final
evaluation at the end of 2025.
In addition, in order to track the effectiveness
of policies and actions in relation to the Business Conduct material matter,
the
following qualitative
indicators are used:
●
Provide
dedicated
training
courses
to
Eurobank’s
staff
on
Compliance-related
topics,
and
specific
training
on
consumer protection
issues, through e-learning solutions.
●
Assess the impact of the New
AML Package and design an action plan.
●
Implement a compliance risk assessment tool.
●
Have an external consultant independently assess the compliance
Risk Assessment (CRA) Methodology.
●
Expand the CRA perimeter to cover areas outside GC mandate, such as prudential regulations, information security,
outsourcing and sustainability framework.
●
Develop dedicated methodologies
for CFT and Sanctions Risk Assessments.
●
Update
the
existing
AML
Business
Risk
Assessment,
to
ensure
alignment
with
developments
and
regulatory
expectations.
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●
Review
end-to-end
the
Trade
Finance
Control
Framework
and
create
an
action
plan
for
further
enhancing
Eurobank’s controls
in Trade.
●
Use
AML
Analytics
for
achieving
efficiencies
(among
other
risk
mitigation
benefits)
as
well
as
infrastructure
improvements
in AML/CFT operations.
●
Continue the ongoing monitoring of Russian sanctions.
●
Obtain ISO certification
for AML Operations,
Anti-Bribery and Corruption and Compliance
Processes.
●
Implement the FATCA/CRS
Action Plan.
●
Continue the implementation
of further actions to increase
the effectiveness
of MiFID controls.
●
Provide advice and monitor Eurobank’s
compliance with the regulatory
framework.
●
Continue participating
in an
advisory capacity
in bank-wide
projects
relating to
bancassurance
business, deposit
products and payment services.
●
Support Eurobank’s
readiness initiatives
for
compliance with
upcoming regulations,
such as
the
Retail Investment
Strategy,
Consumer and Mortgage Credit Directives,
Payment Services Directive
III.
●
Update public statements.
●
Completed a
new digital learning
programme addressed to all staff
on conflicts
of interest and
a new digital
learning
programme
addressed to targeted staff on market
abuse.
●
Review all compliance policies at least once
per year as per AC guideline
The
scope
of
the
respective
key
actions
taken
and
successfully
achieved,
as
well
as
Eurobank
‘s
targets,
includes
all
the
activities across all regions that
Eurobank operates,
throughout the
value chain.
Prevention and detection
of corruption and bribery [G1-3]
The
Group
has implemented
the
following
procedures
aimed
at preventing,
detecting, and
addressing
any allegations
or
incidents of
corruption
and bribery
which are
outlined in
Anti-Bribery &
Corruption
Policy
Statement.
Group’s
policies are
developed to be consistent with the
United Nations Convention’s
principles against corruption.
Specifically, the
Group:
●
Has zero tolerance
to bribery and corruption.
●
Establishes and follows
effective
control procedures
to prevent or identify bribery and corruption.
●
Ensures the implementation
of a control program.
●
Evaluates suppliers in order
to mitigate the risk of
bribery and corruption.
The Supplier Code
of Conduct and Ethics
applies to
all Eurobank suppliers and
is a
guide to
clear principles and
rules to be
followed. (Supplier Code of Conduct
and Ethics) Includes anti-bribery terms are
also included in contractual documents.
●
Provides
efficient, confidential
reporting mechanisms
to staff
and encourages
their use
by providing
protection
to
individuals who report in good faith. Staff
are encouraged to report
bribery attempts by third parties.
●
Establishes mechanisms for
monitoring incidents of bribery.
●
Assists competent authorities in conducting investigations.
●
Adopts regular
risk assessment
mechanisms
of the
Group's
structures
and operations,
which it
oversees,
reviews,
adapts and revises.
●
In the context of the ongoing risk assessment,
a record of bribery complaints and/or incidents is maintained.
●
Records in
a formal
questionnaire the
minimum requirements
of Eurobank
towards third
parties regarding
bribery
issues.
●
Provides
ongoing
training
and
briefing
of
staff
on
the
prevention
and
identification
of
bribery
and
corruption
incidents.
●
On a
regular basis,
through
training
modules and
internal communication,
staff
awareness
is raised
on emerging
risks when dealing with cases of bribery and corruption.
Training is provided
to all new staff.
●
The
relevant
policy
is
reviewed
and
revised
every
year
by
Group
Compliance,
unless
legislative
changes
require
earlier revision.
Eurobank,
both
through
this Policy
and as
defined in
the
Policy
for
Reporting Illegal
or Unethical
Conduct encourages
the
reporting of bribery and corruption incidents by
both staff and third
parties. For this reason, it has established
a mechanism
for submitting and monitoring anonymous reports and protects
bona fide witnesses, as referenced
above in [G1-1].
Eurobank
has
clear
disciplinary
procedures
that
are
implemented
timely
and
fairly
for
all
staff
members,
irrespective
of
hierarchy.
Eurobank
reserves
the
right to
refer
cases to
the
police,
judicial and/or
supervisory
authority and
to bring
legal
action,
either
civil
and/or
criminal, against
those
involved
in
the
case.
It
may
also
take
disciplinary
actions
against
staff,
including dismissal. When cooperating with third parties,
natural or legal, a written
acceptance is obtained of their obligation
to prevent
and combat against bribery and corruption.
If cases of corruption are identified,
the cooperation
is denounced.
The Group
Compliance is responsible
for handling such
matters. Group
Compliance is an independent
function and reports
functionally
to
the
Board
of
Directors
through
the
Audit
Committee
and
for
administrative
purposes
to
the
CEO.
Group
Compliance supervises
the overall
compliance function
in the
Group. Within
this context,
the Compliance
Divisions/Units of
the Group in Greece
and abroad have a direct reporting line
to Group Compliance.
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Eurobank
has
established
communication
channels
to
effectively
communicate
relevant
policies
and
make
them
easily
understandable for
those to whom they apply.
Policies affecting
internal stakeholders
are available to the
Group's intranet,
while those
refering
to external
stakeholders,
such as
the
Group's
Code of
Conduct, are
available through
Eurobank's
site.
These mainly include:
●
The
Anti-Bribery
and
Corruption
Policy
and
Anti-Bribery
and
Corruption
Policy
Statement,
which
applies
to
all
Eurobank
staff,
aims
to
prevent
instances
of
bribery
and
corruption,
and
promote
integrity
within
the
business
environment.
●
Ongoing Training and Awareness
to staff on preventing and
identifying bribery and corruption incidents.
●
Systematic Evaluation of Suppliers, includes anti-bribery
terms in contractual documents.
●
Corporate
website,
includes a
corporate
governance
section
that
clarifies for
all stakeholders
the
opportunity to
report a misconduct incident through mail or telephone.
●
Sustainability report, explains the mechanisms
to report a misconduct incident.
4.1.3.
Metrics & Targets
Incidents of corruption or bribery [G1-4]
The number of convictions
stands at zero, and no fines have
been imposed for violations
of anti-corruption and anti-bribery
laws, as shown in the table below.
ESRS Quantitative data / metric
2024
Number of convictions for violation
of anti-corruption and anti-
bribery laws
0
The amount (€) of fines for
violation of anti-corruption
and anti-bribery laws.
0
Eurobank implemented a comprehensive anti-bribery and anti-corruption policy, delineating clear procedures and standards
as outlined by the Anti-bribery & Corruption Policy and the Anti-bribery & Corruption
Policy Statement, as referenced
above.
All reports
are investigated,
and appropriate
disciplinary actions are
taken. In response
to any breaches
of anti-corruption
and
anti-bribery
procedures,
Eurobank
has
implemented
a
structured
disciplinary
process.
Specifically,
any
established
violations
of
the
provisions
of
the
Policy
may
be
reported
to
the
competent
Eurobank
bodies
and
can
even
lead
to
administrative
or
disciplinary
action,
including
the
staff
member’s
termination
of
employment.
When
breaches
in
anti-
corruption
and
anti-bribery
standards
are
identified,
the
internal
audit
team
undertakes
a
comprehensive
review
of
the
circumstances.
Also,
Eurobank
provides
ongoing
training
and
briefing
to
staff
on
preventing
and
identifying
bribery
and
corruption incidents. Through training modules and internal communication, staff awareness is
raised on emerging risks when
dealing with cases of bribery and corruption.
One of Eurobank’s
key initiatives
regarding anti-bribery
and corruption
is obtaining ISO
37001 certification
for Anti-bribery,
Corruption
and
Compliance
processes.
Achieving
ISO
certification
demonstrates
Eurobank’s
commitment
to
rigorous
international
standards
in
ethics
and
compliance
and
serves
as
a
benchmark
for
its
policies,
ensuring
they
align
with
recognised best practices for
preventing, detecting, and responding to bribery
and corruption risks.
As described above in
[G1-1], Eurobank is committed to
the maintaining high professional standards for its Group Compliance
staff
though
professional
certifications
and
ongoing
training,
which
among
others
covers
aspects
of
anti-bribery,
anti-
corruption, compliance,
and related areas. Within
2024, there were
no:
●
Confirmed incidents of bribery and corruption.
●
Confirmed incidents in which employees were
dismissed or disciplined for corruption.
●
Confirmed
incidents
where
contracts
with
business
partners
were
terminated
or
not
renewed
due
to
violations
related to corruption.
●
Public legal cases regarding corruption
brought against the organisation
or its employees.
●
Monetary
losses
from
business
ethics
violations
as
a
result
of
legal
proceedings
associated
with
insider
trading,
antitrust, anti-competitive behaviour,
market manipulation or malpractice.
These
metrics
show that
Eurobank
successfully
maintains zero
incidents related
to bribery,
corruption,
and business
ethics
violations,
thus
contributing
to
maintaining
a
transparent
corporate
culture
and
demonstrating
a
stable
commitment
to
compliance.
This
target
will
continue
to
be
upheld
in
2025,
with
performance
monitored
and
reviewed
regularly
through
Group Compliance. Regular review processes and monitoring ensure that
the metrics remain on track. No
significant changes
in metrics’
performance
were noted
in 2024, indicating
a consistent trend
that Eurobank
is well-positioned
to maintain this
target level in 2025.
Eurobank actively
tracks the
effectiveness
of its anti-bribery,
anti-corruption, and compliance
policies and actions to assess
and mitigate
material
sustainability-related
impacts,
risks, and
opportunities.
This
is conducted
through
the
independent
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function
of Group
Compliance
which tracks
incidents for
any breaches
or compliance
issues and
collects data
on training
participation rates,
certification renewals,
and the rate of compliance
-related issues identified and resolved.
In the reporting
year,
Eurobank undertook
several
key actions to strengthen
its anti-bribery and anti-corruption
efforts.
This
included enhancing
compliance
training programs
for
all staff,
evaluating suppliers
in order
to mitigate
the
risk of
bribery
and corruption, including
anti-bribery terms
in contractual documents,
reviewing and revising
the Anti-bribery
& Corruption
Policy
and encouraging
the
reporting
of bribery
and corruption
incidents
by
both
staff
and third
parties
through
various
channels. These actions will be maintained for
2025. These initiatives
are expected to reinforce
a culture of integrity, directly
contributing to Eurobank’s policy objectives of minimising corruption risks and
promoting transparency,
throughout the value
chain and across all regions where
Eurobank operates.
4.2
Data security and customer privacy [Entity-specific]
4.2.1. Governance
The role
of the administrative,
management and supervisory bodies [ESRS 2 GOV
-1]
Eurobank has embedded cybersecurity and data privacy within its core strategy
and business model. Eurobank has adopted
the
3
lines
model
to
ensure
that
risks
and
controls
are
properly
managed
on
an
ongoing
basis.
In
the
2nd
line,
a
Chief
Information
Security
Officer
(CISO)
has
been
appointed,
who
heads
Group
Corporate
Security
and
reports
directly
to
a
Deputy Chief Executive Officer
who sits on Eurobank’s Board of Directors (Board)
and Executive Board (ExBo). The CISO
also
regularly updates the ExBo, the Board
Risk Committee, and the Board to provide objective
assurance on the effectiveness
of
Eurobank’s cybersecurity
controls.
The Data
Protection
Officer
(DPO) heads Eurobank’s
Personal Data
Protection
Unit, acting and reporting
independently to
the Deputy CEO and keeping the
Executive Board and Board
Risk Committee informed of key
GDPR compliance issues. This
senior leadership structure reinforces
the importance of data protection
across the organisation.
Data
Protection
Officer
provides
among
others,
advice
on
digital
transformation
projects
and
new
services,
following
a
"privacy by
design" approach.
Eurobank
also conducts
regular
data privacy
impact assessments,
and ongoing
training
to
keep employees info
rmed about privacy requirements.
4.2.2 Strategy
Description of material impacts, risks and opportunities and their
interaction with strategy
and business model [SBM-3]
Cybersecurity risks continue to impact the financial industry around the world, as the number and complexity
of cyberattacks
have increased significantly.
Cyberattacks, digital fraud,
compromised customer data, and personal
data breaches are part
of today’s everyday reality, especially in the financial/banking sector, due to the evolution of new technologies, the increasing
use of digital channels
for financial transactions, and the increased sophistication of cyber criminals. Eurobank, its customers,
and its third-party service
providers cannot be
an exception to that.
As a
result
of the
increasing
number
and complexity
of cyber
threats
and as
a result
of the
IROs
mentioned
below,
data
security and customer privacy are critical areas for Eurobank’s
strategy and business model. The financial sector,
particularly
banks,
faces
cybersecurity
risks
such
as
“cyberattacks,
digital
fraud,
compromised
customer
data,
and
personal
data
breaches,”
all of which are now
daily realities due to“the evolution of new technologies, the increasing use of digital channels
for
financial
transactions,
and
the
increased
sophistication
of
cyber
criminals.”
These
risks
emphasise
the
importance
of
securing customer trust through
robust cybersecurity
measures and privacy safeguards.
Cybersecurity is a top priority, with Eurobank implementing a “multi-faceted defense approach” guided by a Predict, Prevent,
Detect,
and
Respond
framework.
Regarding
the
customer
privacy,
Eurobank
places
high
importance
on
personal
data
protection, not only to meet regulatory
requirements but as a cornerstone of good corporate
governance and trust-building
with clients and partners.
Through
integrated
efforts
in
cybersecurity
and
data
protection,
Eurobank’s
strategy
and
business
model
uphold
data
protection and customer privacy as a
priority, support regulatory compliance, and reinforce resilience against growing digital
threats, ultimately enhancing customer confidence and trust in
its digital services. Furthermore, Eurobank allocates adequate
current and future financial resources towards enhancing its cybersecurity strategy, ensuring the protection of customer data
and compliance with evolving
regulatory requirements.
4.2.3. Impact, risk and opportunity management
Description of processes to identify and assess
material impacts, risks and opportunities [ESRS 2 IRO-1]
Through the
DMA Eurobank has identified the
following material
impacts and risks:
Data security and customer privacy
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Impact
Positive
Actual
Implementation of internal management
systems and initiatives that protect
stakeholders’ data privacy.
Negative
Potential
Improper implementation
of established cybersecurity systems and processes
results in incidents of data breach and leaks of personal data.
Risk
Growing cybersecurity threats
and cyber-attacks targeting financial institutions,
and their customer
data may compromise Eurobank's systems,
networks and
sensitive information,
leading to operational disruptions
and reputational harm
The process
of assessing data security and customer privacy applies across
all regions where
Eurobank operates.
Policies related to data security
and customer privacy [MDR-P]
Eurobank has implemented comprehensive
policies to manage material sustainability matters concerning
data security and
customer privacy,
with a particular focus
on compliance with the
General
Data Protection
Regulation (GDPR). The
Personal
Data Protection
Policy outlines
key contents that
include the
procedures
for handling
personal data,
ensuring data subject
rights, and establishing clear protocols for
data breaches.
The protection
of personal data
is an important priority
for Eurobank,
not only because
of its statutory
obligation, but
also
because it recognises it
as a key element
of good corporate
governance
and responsibility,
as well as a key
part in building
relationships of trust with its clients and partners.
In this context, it continuously ensures that the necessary actions are taken for complying with Regulation (EU) 2016/679, Law
4624/2019 and other provisions
of the relevant Greek and EU legislation on personal
data. As part of its GDPR and personal
data protection
obligations, Eurobank
takes appropriate
measures to provide
information to
data subjects (e.g. customers)
relating to the processing
of their personal data in
a concise, transparent, intelligible
and easily accessible form, using clear
and
plain
language.
Its
main
privacy
notice,
available
both
online
and
in
branches,
outlines
details
such
as
data
types
collected, purposes for collection,
recipients, data retention periods,
and data subject rights. Eurobank’s main privacy notice
(Information on the
Processing of Personal
Data of Eurobank
pursuant to Regulation (EU) 2016/679 and the relevant
EU and
Greek legislation) is available online and in hard copy through
its branches. This privacy
notice includes information
on the:
i.
Type of personal data the
Bank collects and from which sources
ii.
Reason why the Bank collects data and for
which purpose
iii.
Recipients of the data subjects’ data
iv.
Whether the
Bank is entitled to transfer the
data subjects’ data to third countries (outside
the EEA)
v.
Length of time the Bank shall maintain the
data subjects’ personal data
vi.
Data subjects’ rights are with
regard to the protection
of their personal data
vii.
Way the data
subjects can exercise their
rights
viii.
Data Protection
Officer
ix.
Way the Bank protects
the data subjects’ personal
data.
The scope of this
policy covers all
operations
involving personal data
processing within
Eurobank, including digital products
and services, while ensuring that third
-party processors and joint controllers
are also adhere to these
standards. Eurobank’s
privacy policies are
regularly updated in line
with legislative
developments occur
and are integrated
into various customer-
facing documents to ensure transparency.
Eurobank respects various third-party standards and initiatives, including internationally
recognised frameworks such as ISO
27001, and ISO
27701. In developing
these policies,
Eurobank has
taken into consideration
the interests
of key
stakeholders,
including customers, employees, and regulatory
bodies. This stakeholder engagement ensures
that the policies are reflective
of broader societal expectations
and regulatory requirements.
Actions related to data security and customer
privacy [MDR-A]
Throughout
2024, Eurobank
continued to proactively
invest in up-to-date,
efficient and cost-effective
security technologies
and controls to address
the ever-growing
threats and the
evolving regulatory
requirements, to minimise
disruptions, and to
keep
systems
and
data
protected
from
unauthorised
or
unlawful
processing
and
against
accidental
loss,
destruction
or
damage.
This
proactive
approach
stance
aligns
with
the
Group’s
customer-centered
strategy
approach,
ensuring
secure
digital transactions while
building long-term customer
trust through transparency
and robust data
protection.
During 2024
Eurobank:
●
Continued to ensure its compliance with the evolving
regulatory and legal requirements.
●
Continued
to
strengthen
its
cybersecurity
capabilities
for
new
digital
products/
services,
teleworking
and
cloud
technology adoption,
as well
as to
address the
ever-growing
threats
(i.e. Ransomware)
and maintain
compliance
with
evolving
regulatory
requirements.
Continued
to
be
certified
and
operate
based
on
the
internationally
recognised
ISO
27001,
ISO
22301
and
ISO
20000
standards.
The
scope
of
the
ISO
27001
certification
covers
the
processing
of
personal
data
and
has
been
extended
to
also
cover
Eurobank’s
cloud
computing
operations.
Additionally,
Eurobank
has
achieved
the
ISO
27701
certification
for
its
Privacy
Information
Management
System
(PIMS), further
emphasising its commitment
to the
secure management
of personal
data and full
compliance with
data protection regulations,
including the General
Data Protection
Regulation (GDPR).
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●
Continuously educated
employees
and customers
on emerging
cyber threats
and online fraud
scams, with
various
methods.
●
Regularly performed risk assessments, penetration tests and vulnerability assessments, and timely addressed global
0-day cybersecurity vulnerabilities
on critical infrastructure.
●
Evaluated the cybersecurity posture
of outsourcers for
IT services.
●
Applied
multi-tiered
Endpoint
Protection
Detection
Response
protection,
filtered
emails
and
web
content,
DDoS
protection and SIEM services
to detect suspicious activities.
●
Continuously enhanced its
threat intelligence capabilities through use of state-of-the-art technologies/
services, and
collaboration with
peers from other
Banks, as well as the Hellenic Police
and the National Cyber Defence
Agency.
The scope
of these
actions includes
comprehensive
employee
and customer
training on
emerging
cyber threats
and online
fraud schemes.
The timeline
for completing
these actions
is ongoing, reflecting
Eurobank's commitment
to adapting to
the
evolving cybersec
urity landscape.
4.2.4 Metrics & Targets
Data security and customer privacy metrics
[MDR-M]
The primary metrics
used to evaluate
performance
and effectiveness
in relation
to the security
of transactions, information,
and personal data, as
well as the resilience of its
Information and Communication Technology
(ICT) systems against
the ever-
increasing and constantly changing cyber threats
include:
●
the management of cybersecurity
attacks
●
the occurrence
of data breaches involving personally
identifiable information (PII),
●
and business disruptions.
During 2024 the Group
successfully managed all cybersecurity attacks, and as such there
were:
●
No data breaches involving
personally identifiable information
(PII).
●
No business disruptions.
●
No monetary losses.
●
No cybersecurity incidents that needed to be reported
to Authorities.
●
No account holders affected
This
effective
management
demonstrates
Eurobank’s
commitment
to
maintaining
robust
cybersecurity
protocols
and
its
ability to mitigate risks effectively. In addition, 578 customer/data subject access requests were handled within the deadlines
set out in the
GDPR.
To support
these evaluations,
Eurobank has adopted
a comprehensive
methodology that
includes regular risk assessments,
penetration
tests,
and
vulnerability
assessments.
Throughout
2024,
Eurobank
regularly
performed
these
assessments
to
ensure
that
all
potential
vulnerabilities
were
identified
and
addressed
promptly.
This
methodology
is
based
on
the
assumption that the sophistication
of cyber threats is continually evolving, requiring
an adaptive and proactive approach to
cybersecurity
management.
Additionally,
we
focus
on
emerging
threats,
such
as
ransomware,
ensuring
that
Eurobank’s
metrics reflect the changing landscape
of cyber risks.
Validation
of Eurobank’s
metrics
is conducted
through
various external
bodies other
than Eurobank’s
assurance
providers.
Eurobank collaborates with industry experts and regulatory authorities to validate its cybersecurity performance metrics and
methodologies.
The involvement
of external entities
ensures that
Eurobank’s
metrics are
credible and aligned
with industry
standards.
This
collaboration
further
enhances
cybersecurity
posture
and
allows
us
to
remain
compliant
with
evolving
regulatory
requirements,
ensuring
that
Eurobank’s
performance
metrics
are
both
reliable
and
effective
in
measuring
its
success in cybersecurity.
Data security and customer privacy targets
[MDR-T]
For
2024, Eurobank
set a
target to
maintain zero
data breaches
involving
personally
identifiable information
(PII) and
no
business disruptions, which aligns with its objective of ensuring
customer trust and regulatory compliance.
The
scope of
these targets
encompasses all
cybersecurity incidents
and personal
data processing
within Eurobank,
as well
as those involving third-party
service providers.
The target is maintained an ongoing basis, aiming to continuously maintain
this performance
through ongoing assessments to ensure
relevance in the
face of evolving
cyber threats
Eurobank also
sets milestones such
as periodic risk
assessments, employee
training sessions, and
incident response drills
to
ensure that the targets
are met throughout
the year.
Key methodologies and approaches to measure progress against targets include penetration tests vulnerability assessments
and incident monitoring mechanisms.
Eurobank ensures
that its cybersecurity
targets are informed
by market
best practice
and regulatory requirements.
Stakeholders
are involved
in target setting through
regular communication
and training sessions
while their
input is sought
to
align
targets
with
customer
expectations
and
regulatory
compliance.
Throughout
2024,
Eurobank
has
not
made
any
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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significant
changes
to
its
targets;
however,
the
Group
remains
alert
to
the
evolving
circumstances
in
cybersecurity
and
regulatory environments.
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APPENDIX - Disclosures under Article 8 of Regulation (EU) 2020/852
Reporting templates for the
years ended 31 December 2024 and 31 December
2023
0. Summary of KPIs to be disclosed by credit institutions
under Article 8 Taxonomy
Regulation for
the year ended 31 December
2024
Total environmentally sustainable
assets
⁽
¹
⁾
KPI
⁽
³
⁾
KPI
⁽⁴⁾
% coverage (over total
assets)
⁽⁵⁾
% of assets excluded from the numerator
of the GAR (Article 7(2) and (3) and
Section 1.1.2. of Annex V)
% of assets excluded from the
denominator of the GAR
(Article 7(1) and Section 1.2.4
of Annex V)
Main KPI
Green asset ratio (GAR) stock
1,908
2.6
3.7
70.9
42.2
29.1
Total environmentally sustainable
activities
⁽
²
⁾
KPI
⁽
³
⁾
KPI
⁽⁴⁾
% coverage (over total
assets)
⁽⁵⁾
% of assets excluded from the numerator
of the GAR (Article 7(2) and (3) and
Section 1.1.2. of Annex V)
% of assets excluded from the
denominator of the GAR
(Article 7(1) and Section 1.2.4
of Annex V)
Additional KPIs
GAR (flow)
589
3.7
6.5
31.4
N/A
N/A
Trading book
⁽⁶⁾
Financial guarantees
⁽⁷⁾
115
4.7
15.7
Assets under management
⁽⁷⁾
79
1.1
2.9
Fees and commissions income
⁽⁶⁾
(1)
Total environmentally
sustainable assets used for turnover
KPI. Total environmentally
sustainable assets used for Capex KPI amounts to EUR 2,658 million
(2) Total environmentally
sustainable assets used for turnover
KPI. Total environmentally
sustainable assets used for Capex KPI amounts to EUR 1,020 million
for GAR flow
(3) Based on the Turnover
KPI of the counterparty
(4) Based on the CapEx KPI of the counterparty
(5) % of assets covered by
the KPI over
Group’s total assets
(6) "Trading book"
and "fees and commissions income" KPIs shall apply from
FY2025 onwards
(7) Total environmentally sustainable assets used for turnover KPI. Total environmentally
sustainable assets used for Financial
guarantees - Capex KPI amounts to
EUR 386 million and for assets
under management is EUR 209 million.
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1.Assets for the calculation
of GAR - Turnover
a
b
c
d
e
f
g
h
i
j
Million EUR
Total [gross]
carrying
amount
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
GAR- Covered assets in both numerator
and denominator
1
Loans and advances, debt securities and equity instruments
no HfT eligible for GAR calculation
28,809
17,150
1,905
1,409
15
140
123
3
0
2
2
Financial undertakings
4,332
1,095
127
0
9
17
18
0
0
0
3
Credit institutions
3,980
1,049
113
0
9
15
12
0
0
0
4
Loans and advances
958
230
38
0
1
1
1
0
0
0
5
Debt securities, including UoP
3,020
819
75
0
8
14
11
0
0
0
6
Equity instruments
2
0
0
0
0
0
0
0
7
Other financial corporations
352
46
14
0
0
2
6
0
0
0
8
of which investment firms
0
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
0
13
Loans and advances
0
0
0
0
0
0
0
0
0
0
14
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
15
Equity instruments
0
0
0
0
0
0
0
0
16
of which insurance undertakings
5
2
0
0
0
0
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
5
2
0
0
0
0
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
0
20
Non-financial undertakings
6,138
2,282
1,752
1,383
6
123
105
3
0
2
21
Loans and advances
5,416
2,084
1,679
1,383
2
84
82
2
0
2
22
Debt securities, including UoP
705
194
71
0
4
40
22
0
0
0
23
Equity instruments
17
3
1
0
0
1
0
0
24
Households
18,338
13,773
26
26
0
0
0
0
0
0
25
of which loans collateralised by residential
immovable
property
12,316
12,316
22
22
0
0
0
0
0
0
26
of which
building renovation loans
2,115
2,115
0
0
0
0
0
0
0
0
27
of which motor vehicle loans
546
546
4
4
0
0
28
Local governments financing
0
0
0
0
0
0
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
0
30
Other local govemment
financing
0
0
0
0
0
0
0
0
0
0
31
Collateral obtained by taking possession: residential and
commercial immovable properties
697
520
0
0
0
0
0
0
0
0
32
Assets excluded from the numerator for
GAR calculation
(covered in the denominator)
43,257
33
Financial and Non-financial undertakings
33,496
34
SMEs and NFCs (other than SMEs)
not subject to NFRD
disclosure obligations
26,005
35
Loans and advances
23,806
36
of which loans collateralised by commercial
immovable
property
7,140
37
of which building renovation loans
33
38
Debt securities
1,977
39
Equity instruments
222
40
Non-EU country counterparties not subject to NFRD disclosure
obligations
7,491
41
Loans and advances
4,641
42
Debt securities
2,761
43
Equity instruments
88
44
Derivatives
836
45
On demand interbank loans
251
46
Cash and cash-related assets
617
47
Other categories of assets (e.g. goodwill, commodities etc.)
8,057
48
Total GAR
assets
72,762
17,670
1,905
1,409
15
140
123
3
0
2
49
Assets not covered for GAR calculation
29,805
50
Central governments and Supranational
issuers
14,257
51
Central banks exposure
15,263
52
Trading book
285
53
Total assets
102,567
17,670
1,905
1,409
15
140
123
3
0
2
Off-balance sheet exposures-Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
948
295
113
0
0
10
52
1
0
1
55
Assets under management
2,374
559
77
0
6
21
34
2
0
0
56
Of which debt securities
1,529
364
52
0
4
13
23
1
0
0
57
Of which equity instruments
345
81
18
0
1
8
11
1
0
0
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1.Assets for the calculation
of GAR - Turnover
k
l
m
n
o
p
q
r
s
t
u
v
Million EUR
31 December 2024
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
GAR- Covered assets in both numerator
and denominator
1
Loans and advances, debt securities and equity instruments
no HfT eligible for GAR calculation
0
0
0
0
14
0
0
0
9
0
0
0
2
Financial undertakings
0
0
0
0
0
0
0
0
0
0
0
0
3
Credit institutions
0
0
0
0
0
0
0
0
0
0
0
0
4
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
5
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
6
Equity instruments
0
0
0
0
0
0
0
0
0
7
Other financial corporations
0
0
0
0
0
0
0
0
0
0
0
0
8
of which investment firms
0
0
0
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
0
0
0
13
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
14
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
15
Equity instruments
0
0
0
0
0
0
0
0
0
16
of which insurance undertakings
0
0
0
0
0
0
0
0
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
0
0
20
Non-financial undertakings
0
0
0
0
14
0
0
0
9
0
0
0
21
Loans and advances
0
0
0
0
10
0
0
0
1
0
0
0
22
Debt securities, including UoP
0
0
0
0
3
0
0
0
8
0
0
0
23
Equity instruments
0
0
0
0
0
0
0
0
0
24
Households
0
0
0
0
25
of which loans collateralised by residential
immovable
property
0
0
0
0
26
of which
building renovation loans
0
0
0
0
27
of which motor vehicle loans
28
Local governments financing
0
0
0
0
0
0
0
0
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
0
0
0
30
Other local govemment
financing
0
0
0
0
0
0
0
0
0
0
0
0
31
Collateral obtained by taking possession: residential and
commercial immovable properties
0
0
0
0
0
0
0
0
0
0
0
0
32
Assets excluded from the numerator for
GAR calculation
(covered in the denominator)
33
Financial and Non-financial undertakings
34
SMEs and NFCs (other than SMEs)
not subject to NFRD
disclosure obligations
35
Loans and advances
36
of which loans collateralised by commercial
immovable
property
37
of which building renovation loans
38
Debt securities
39
Equity instruments
40
Non-EU country counterparties not subject to NFRD disclosure
obligations
41
Loans and advances
42
Debt securities
43
Equity instruments
44
Derivatives
45
On demand interbank loans
46
Cash and cash-related assets
47
Other categories of assets (e.g. goodwill, commodities etc.)
48
Total GAR
assets
0
0
0
0
14
0
0
0
9
0
0
0
49
Assets not covered for GAR calculation
50
Central governments and Supranational
issuers
51
Central banks exposure
52
Trading book
53
Total assets
0
0
0
0
14
0
0
0
9
0
0
0
Off-balance sheet exposures-Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
0
0
0
0
3
0
0
0
0
0
0
0
55
Assets under management
0
0
0
0
3
0
0
0
9
0
0
0
56
Of which debt securities
0
0
0
0
0
0
0
0
2
0
0
0
57
Of which equity instruments
0
0
0
0
3
0
0
0
8
0
0
0
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1.Assets for the calculation
of GAR - Turnover
w
x
z
aa
ab
ac
ad
ae
af
Million EUR
31 December 2024
Biodiversity and Ecosystems (BIO)
TOTAL
(CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-
aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR- Covered assets in both numerator
and denominator
1
Loans and advances, debt securities and equity instruments
no HfT eligible for GAR calculation
40
0
0
0
17,348
1,908
1,409
15
141
2
Financial undertakings
0
0
0
0
1,125
128
0
9
16
3
Credit institutions
0
0
0
0
1,074
114
0
9
15
4
Loans and advances
0
0
0
0
235
38
0
1
1
5
Debt securities, including UoP
0
0
0
0
839
76
0
8
14
6
Equity instruments
0
0
0
0
0
0
0
7
Other financial corporations
0
0
0
0
52
14
0
0
1
8
of which investment firms
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
13
Loans and advances
0
0
0
0
0
0
0
0
0
14
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
15
Equity instruments
0
0
0
0
0
0
0
16
of which insurance undertakings
0
0
0
0
2
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
0
0
0
0
2
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
20
Non-financial undertakings
40
0
0
0
2,450
1,754
1,383
6
125
21
Loans and advances
40
0
0
0
2,217
1,681
1,383
2
86
22
Debt securities, including UoP
0
0
0
0
228
72
0
4
40
23
Equity instruments
0
0
0
4
1
0
0
24
Households
13,773
26
26
0
0
25
of which loans collateralised by residential
immovable
property
12,316
22
22
0
0
26
of which
building renovation loans
2,115
0
0
0
0
27
of which motor vehicle loans
546
4
4
0
0
28
Local governments financing
0
0
0
0
0
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
30
Other local govemment
financing
0
0
0
0
0
0
0
0
0
31
Collateral obtained by taking possession: residential and
commercial immovable properties
0
0
0
0
520
0
0
0
0
32
Assets excluded from the numerator for
GAR calculation
(covered in the denominator)
33
Financial and Non-financial undertakings
34
SMEs and NFCs (other than SMEs)
not subject to NFRD
disclosure obligations
35
Loans and advances
36
of which loans collateralised by commercial
immovable
property
37
of which building renovation loans
38
Debt securities
39
Equity instruments
40
Non-EU country counterparties not subject to NFRD disclosure
obligations
41
Loans and advances
42
Debt securities
43
Equity instruments
44
Derivatives
45
On demand interbank loans
46
Cash and cash-related assets
47
Other categories of assets (e.g. goodwill, commodities etc.)
48
Total GAR
assets
40
0
0
0
17,868
1,908
1,409
15
141
49
Assets not covered for GAR calculation
50
Central governments and Supranational
issuers
51
Central banks exposure
52
Trading book
53
Total assets
40
0
0
0
17,868
1,908
1,409
15
141
Off-balance sheet exposures-Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
0
0
0
0
350
115
0
0
12
55
Assets under management
0
0
0
0
606
79
0
6
22
56
Of which debt securities
0
0
0
0
389
53
0
4
13
57
Of which equity instruments
0
0
0
0
103
18
0
1
8
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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STATEMENT
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1.Assets for the calculation
of GAR - Capex
a
b
c
d
e
f
g
h
i
j
Million EUR
Total [gross]
carrying
amount
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
GAR- Covered assets in both numerator
and denominator
1
Loans and advances, debt securities and equity instruments
no HfT eligible for GAR calculation
28,809
18,752
2,653
1,409
55
394
61
5
0
2
2
Financial undertakings
4,332
1,244
194
0
10
31
14
1
0
0
3
Credit institutions
3,980
1,017
141
0
9
25
14
1
0
0
4
Loans and advances
958
191
38
0
1
1
1
0
0
0
5
Debt securities, including UoP
3,020
826
103
0
8
23
13
1
0
0
6
Equity instruments
2
0
0
0
0
0
0
0
7
Other financial corporations
352
226
53
0
1
6
0
0
0
0
8
of which investment firms
0
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
0
13
Loans and advances
0
0
0
0
0
0
0
0
0
0
14
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
15
Equity instruments
0
0
0
0
0
0
0
0
16
of which insurance undertakings
5
2
0
0
0
0
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
5
2
0
0
0
0
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
0
20
Non-financial undertakings
6,138
3,736
2,432
1,383
45
363
46
4
0
2
21
Loans and advances
5,416
3,292
2,231
1,383
19
288
37
4
0
2
22
Debt securities, including UoP
705
438
197
0
27
74
8
0
0
0
23
Equity instruments
17
6
4
0
0
1
0
0
24
Households
18,338
13,773
26
26
0
0
0
0
0
0
25
of which loans collateralised by residential
immovable
property
12,316
12,316
22
22
0
0
0
0
0
0
26
of which
building renovation loans
2,115
2,115
0
0
0
0
0
0
0
0
27
of which motor vehicle loans
546
546
4
4
0
0
28
Local governments financing
0
0
0
0
0
0
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
0
30
Other local govemment
financing
0
0
0
0
0
0
0
0
0
0
31
Collateral obtained by taking possession: residential and
commercial immovable properties
697
520
0
0
0
0
0
0
0
0
32
Assets excluded from the numerator for
GAR calculation
(covered in the denominator)
43,257
0
0
0
0
0
0
0
0
0
33
Financial and Non-financial undertakings
33,496
0
34
SMEs and NFCs (other than SMEs)
not subject to NFRD
disclosure obligations
26,005
35
Loans and advances
23,806
36
of which loans collateralised by commercial
immovable
property
7,140
37
of which building renovation loans
33
38
Debt securities
1,977
39
Equity instruments
222
40
Non-EU country counterparties not subject to NFRD disclosure
obligations
7,491
41
Loans and advances
4,641
42
Debt securities
2,761
43
Equity instruments
88
44
Derivatives
836
45
On demand interbank loans
251
46
Cash and cash-related assets
617
47
Other categories of assets (e.g. goodwill, commodities etc.)
8,057
48
Total GAR
assets
72,762
19,272
2,653
1,409
55
394
61
5
0
2
49
Assets not covered for GAR calculation
29,805
0
50
Central governments and Supranational
issuers
14,257
51
Central banks exposure
15,263
52
Trading book
285
53
Total assets
102,567
19,272
2,653
1,409
55
394
61
5
0
2
Off-balance sheet exposures-Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
948
609
385
0
2
37
22
1
0
37
55
Assets under management
2,374
802
206
0
19
52
17
2
0
1
56
Of which debt securities
1,529
551
137
0
11
34
9
2
0
1
57
Of which equity instruments
345
131
57
0
7
17
6
0
0
0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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STATEMENT
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1.Assets for the calculation
of GAR - Capex
k
l
m
n
o
p
q
r
s
t
u
v
Million EUR
31 December 2024
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
Of which
Use of
Proceeds
Of which
enabling
GAR- Covered assets in both numerator
and denominator
1
Loans and advances, debt securities and equity instruments
no HfT eligible for GAR calculation
0
0
0
0
7
0
0
0
17
0
0
0
2
Financial undertakings
0
0
0
0
0
0
0
0
0
0
0
0
3
Credit institutions
0
0
0
0
0
0
0
0
0
0
0
0
4
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
5
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
6
Equity instruments
0
0
0
0
0
0
0
0
0
7
Other financial corporations
0
0
0
0
0
0
0
0
0
0
0
0
8
of which investment firms
0
0
0
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
0
0
0
13
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
14
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
15
Equity instruments
0
0
0
0
0
0
0
0
0
16
of which insurance undertakings
0
0
0
0
0
0
0
0
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
0
0
20
Non-financial undertakings
0
0
0
0
7
0
0
0
17
0
0
0
21
Loans and advances
0
0
0
0
4
0
0
0
12
0
0
0
22
Debt securities, including UoP
0
0
0
0
3
0
0
0
5
0
0
0
23
Equity instruments
0
0
0
0
0
0
0
0
0
24
Households
0
0
0
0
25
of which loans collateralised by residential
immovable
property
0
0
0
0
26
of which
building renovation loans
0
0
0
0
27
of which motor vehicle loans
28
Local governments financing
0
0
0
0
0
0
0
0
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
0
0
0
30
Other local govemment
financing
0
0
0
0
0
0
0
0
0
0
0
0
31
Collateral obtained by taking possession: residential and
commercial immovable properties
0
0
0
0
0
0
0
0
0
0
0
0
32
Assets excluded from the numerator for
GAR calculation
(covered in the denominator)
0
0
0
0
0
0
0
0
0
0
0
0
33
Financial and Non-financial undertakings
34
SMEs and NFCs (other than SMEs)
not subject to NFRD
disclosure obligations
35
Loans and advances
36
of which loans collateralised by commercial
immovable
property
37
of which building renovation loans
38
Debt securities
39
Equity instruments
40
Non-EU country counterparties not subject to NFRD disclosure
obligations
41
Loans and advances
42
Debt securities
43
Equity instruments
44
Derivatives
45
On demand interbank loans
46
Cash and cash-related assets
47
Other categories of assets (e.g. goodwill, commodities etc.)
48
Total GAR
assets
0
0
0
0
7
0
0
0
17
0
0
0
49
Assets not covered for GAR calculation
50
Central governments and Supranational
issuers
51
Central banks exposure
52
Trading book
53
Total assets
0
0
0
0
7
0
0
0
17
0
0
0
Off-balance sheet exposures-Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
0
0
0
0
3
0
0
0
0
0
0
0
55
Assets under management
0
0
0
0
3
0
0
0
4
0
0
0
56
Of which debt securities
0
0
0
0
1
0
0
0
1
0
0
0
57
Of which equity instruments
0
0
0
0
2
0
0
0
3
0
0
0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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STATEMENT
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1.Assets for the calculation
of GAR - Capex
w
x
z
aa
ab
ac
ad
ae
af
Million EUR
31 December 2024
Biodiversity and Ecosystems (BIO)
TOTAL
(CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-
eligible)
Of which environmentally
sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-
aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR- Covered assets in both numerator
and denominator
1
Loans and advances, debt securities and equity instruments
no HfT eligible for GAR calculation
40
0
0
0
18,888
2,658
1,409
55
395
2
Financial undertakings
0
0
0
0
1,269
195
0
9
30
3
Credit institutions
0
0
0
0
1,042
142
0
9
25
4
Loans and advances
0
0
0
0
195
38
0
1
1
5
Debt securities, including UoP
0
0
0
0
847
104
0
8
23
6
Equity instruments
0
0
0
0
0
0
0
7
Other financial corporations
0
0
0
0
226
53
0
0
5
8
of which investment firms
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
13
Loans and advances
0
0
0
0
0
0
0
0
0
14
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
15
Equity instruments
0
0
0
0
0
0
0
16
of which insurance undertakings
0
0
0
0
2
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
0
0
0
0
2
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
20
Non-financial undertakings
40
0
0
0
3,846
2,436
1,383
45
365
21
Loans and advances
40
0
0
0
3,385
2,235
1,383
19
290
22
Debt securities, including UoP
0
0
0
0
454
197
0
27
74
23
Equity instruments
0
0
0
7
4
0
0
24
Households
13,773
26
26
0
0
25
of which loans collateralised by residential
immovable
property
12,316
22
22
0
0
26
of which
building renovation loans
2,115
0
0
0
0
27
of which motor vehicle loans
546
4
4
0
0
28
Local governments financing
0
0
0
0
0
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
30
Other local govemment
financing
0
0
0
0
0
0
0
0
0
31
Collateral obtained by taking possession: residential and
commercial immovable properties
0
0
0
0
520
0
0
0
0
32
Assets excluded from the numerator for
GAR calculation
(covered in the denominator)
0
0
0
0
0
0
0
0
0
33
Financial and Non-financial undertakings
34
SMEs and NFCs (other than SMEs)
not subject to NFRD
disclosure obligations
35
Loans and advances
36
of which loans collateralised by commercial
immovable
property
37
of which building renovation loans
38
Debt securities
39
Equity instruments
40
Non-EU country counterparties not subject to NFRD disclosure
obligations
41
Loans and advances
42
Debt securities
43
Equity instruments
44
Derivatives
45
On demand interbank loans
46
Cash and cash-related assets
47
Other categories of assets (e.g. goodwill, commodities etc.)
48
Total GAR
assets
40
0
0
0
19,408
2,658
1,409
55
395
49
Assets not covered for GAR calculation
50
Central governments and Supranational
issuers
51
Central banks exposure
52
Trading book
53
Total assets
40
0
0
0
19,408
2,658
1,409
55
395
Off-balance sheet exposures-Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
0
0
0
0
634
386
0
2
75
55
Assets under management
0
0
0
0
832
209
0
19
54
56
Of which debt securities
0
0
0
0
566
139
0
11
35
57
Of which equity instruments
0
0
0
0
143
58
0
7
18
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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STATEMENT
123
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a
b
c
d
e
f
g
h
2. GAR sector information - Turnover
31 December 2024
Breakdown by sector - NACE 4 digits level (code and label)
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to
NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to
NFRD
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which
environmentally
sustainable (CCM)
Mn EUR
Of which
environmentally
sustainable (CCM)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
1
B7 - Mining of metal ores
16
-
16
-
2
C10.6.1 - Manufacture
of grain mill products
0
0
0
-
3
C11 - Manufacture of beverages
5
-
5
-
4
C13.9.5 - Manufacture
of non-wovens and articles made
from non-wovens, except
apparel
1
1
1
-
5
C14.1.3 - Manufacture of other
outerwear
0
-
0
-
6
C15 - Manufacture of leather
and related products
2
-
2
-
7
C17 - Manufacture of paper and paper
products
4
0
4
-
8
C18.1.0 - Printing and service
activities related to printing
0
-
0
-
9
C19 - Manufacture of coke and refined
petroleum products
85
1
85
-
10
C19.2.0 - Manufacture of refined
petroleum products
767
10
767
-
11
C20.1.1 - Manufacture
of industrial gases
0
-
0
-
12
C20.4.2 - Manufacture of perfumes
and toilet preparations
30
-
30
-
13
C20.5.9 - Manufacture
of other chemical products
n.e.c.
4
4
4
-
14
C21 - Manufacture of basic pharmaceutical
products and pharmaceutical preparations
22
-
22
-
15
C21.2.0 - Manufacture of pharmaceutical
preparations
25
-
25
-
16
C22.2.1 - Manufacture of plastic plates,
sheets, tubes and profiles
12
0
12
-
17
C22.2.2 - Manufacture of plastic packing goods
10
-
10
2
18
C23 - Manufacture of other
non-metallic mineral products
87
4
87
-
19
C24 - Manufacture of basic metals
10
-
10
-
20
C24.1.0 - Manufacture of
basic iron and steel and of ferro
-alloys
85
8
85
-
21
C24.2 - Manufacture of tubes, pipes, hollow
profiles and related fittings, of steel
8
2
8
-
22
C24.4.2 - Aluminium production
52
3
52
-
23
C24.4.4 - Copper production
61
1
61
-
24
C24.5.1 - Casting of iron
58
4
58
-
25
C27.3.2 - Manufacture of other
electronic and electric wires and cables
196
50
196
-
26
C27.5.1 - Manufacture
of electric domestic appliances
1
1
1
-
27
C28.9 - Manufacture of
other special-purpose machinery
18
-
18
-
28
C29 - Manufacture of motor vehicles,
trailers and semi-trailers
53
4
53
-
29
C29.3.2 - Manufacture of other
parts and accessories for motor vehicles
0
0
0
-
30
C33.1.1 - Repair of
fabricated metal products
9
9
9
-
31
C33.1.2 - Repair of machinery
0
0
0
-
32
D35 - Electricity, gas, steam and air conditioning
supply
297
48
297
0
33
D35.1.1 - Production
of electricity
1,403
1,297
1,403
-
34
D35.1.3 - Distribution of electricity
355
-
355
-
35
D35.1.4 - Trade of
electricity
341
-
341
-
36
E38.3.2 - Recovery of sorted materials
2
0
2
-
37
F41.2.0 - Construction of residential and non-residential
buildings
1
-
1
-
38
F42 - Civil engineering
42
5
42
0
39
F42.2.2 - Construction of utility projects for electricity
and telecommunications
198
198
198
-
40
F42.9.9
- Construction of other civil engineering
projects n.e.c.
19
4
19
-
41
F43.2.9 - Other construction
installation
21
-
21
-
42
F43.9.9
- Other specialised construction activities
n.e.c.
5
-
5
-
43
G45 - Wholesale and retail trade and
repair of motor vehicles and motorcycles
3
0
3
0
44
G45.1.1 - Sale of
cars and light motor vehicles
1
0
1
0
45
G45.1.9 - Sale
of other motor vehicles
2
0
2
-
46
G45.3.0 - Sale of motor vehicle parts
and accessories
4
0
4
0
47
G46 - Wholesale trade, except of motor
vehicles and motorcycles
1
-
1
-
48
G46.3.6 - Wholesale of sugar and chocolate
and sugar confectionery
4
-
4
-
49
G46.4.2 - Wholesale of clothing and footwear
7
-
7
-
50
G46.4.6 - Wholesale of pharmaceutical
goods
23
-
23
-
51
G46.4.7 - Wholesale of furniture,
carpets and lighting equipment
8
-
8
-
52
G46.5.1 - Wholesale of computers,
computer peripheral equipment
and software
7
0
7
0
53
G46.5.2 - Wholesale of electronic and telecommunications
equipment and parts
11
-
11
-
54
G46.7 - Other specialised wholesale
1
-
1
-
55
G46.7.1
- Wholesale of solid, liquid and gaseous fuels
and related products
319
36
319
-
56
G46.7.2 - Wholesale of
metals and metal ores
13
1
13
-
57
G46.7.7 - Wholesale of
waste and scrap
6
0
6
-
58
G47 - Retail trade, except of motor vehicles
and motorcycles
0
-
0
-
59
G47.1.9
- Other retail sale in non-specialised stores
28
5
28
-
60
G47.7.1
- Retail sale of clothing in specialised stores
12
0
12
0
61
G47.7.8
- Other retail sale of new goods
in specialised stores
1
-
1
-
62
H49 - Land transport and transport via
pipelines
8
7
8
-
63
H50.1.0 - Sea and coastal passenger
water transport
0
-
0
-
64
H51 - Air transport
25
-
25
-
65
H52.1 - Warehousing and storage
1
-
1
-
66
H52.2.1 - Service activities incidental to land
transportation
21
1
21
0
67
H52.2.3 - Service activities incidental to air transportation
402
6
402
-
68
I55 - Accommodation
3
-
3
-
69
I55.1.0 - Hotels and similar
accommodation
40
-
40
-
70
J61 - Telecommunications
23
0
23
-
71
J62.0 - Computer programming, consultancy
and related activities
9
-
9
-
72
J62.0.1 - Computer programming
activities
2
2
2
-
73
J62.0.3 - Computer facilities management
activities
2
-
2
-
74
K64.2.0 - Activities of holding companies
64
0
64
0
75
K64.9.1
- Financial leasing
3
-
3
-
76
K65.1.2 - Non-life insurance
0
-
0
-
77
K66.1.9 - Other
activities auxiliary to financial services, except
insurance and pension funding
9
-
9
-
78
L68 - Real estate activities
14
3
14
0
79
L68.1.0 - Buying and selling of own
real estate
116
19
116
-
80
L68.2.0 - Renting and operating of own or
leased real estate
89
7
89
-
81
L68.3.2 - Management of real estate on a fee
or contract basis
71
10
71
-
82
M71.2.0 - Technical testing and analysis
2
0
2
-
83
M74.1.0 - Specialised design activities
0
-
0
-
84
M74.9.0 - Other
professional, scientific and technical
activities n.e.c.
0
0
0
-
85
N77.1.1
- Renting and leasing of cars and light motor vehicles
10
0
10
0
86
N77.3.9
- Renting and leasing of other machinery,
equipment and tangible goods n.e.c.
11
0
11
0
87
N81.2.2 - Other building and industrial cleaning activities
2
0
2
-
88
N82 - Office administrative,
office support and other
business support activities
3
-
3
-
89
Q86.1.0 - Hospital activities
57
-
57
-
90
R92 - Gambling and betting activities
392
-
392
-
91
S95.1.1 - Repair of
computers and peripheral
equipment
0
0
0
-
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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2. GAR sector information - Turnover
31 December 2024
Breakdown by sector - NACE 4 digits level (code and label)
Water and marine resources (WTR)
Circular economy (CE)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to
NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to
NFRD
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
1
B7 - Mining of metal ores
2
C10.6.1 - Manufacture
of grain mill products
3
C11 - Manufacture of beverages
4
C13.9.5 - Manufacture
of non-wovens and articles made
from non-wovens, except
apparel
5
C14.1.3 - Manufacture of other
outerwear
6
C15 - Manufacture of leather
and related products
7
C17 - Manufacture of paper and paper
products
8
C18.1.0 - Printing and service
activities related to printing
9
C19 - Manufacture of coke and refined
petroleum products
10
C19.2.0 - Manufacture of refined
petroleum products
11
C20.1.1 - Manufacture
of industrial gases
12
C20.4.2 - Manufacture of perfumes
and toilet preparations
13
C20.5.9 - Manufacture
of other chemical products
n.e.c.
14
C21 - Manufacture of basic pharmaceutical
products and pharmaceutical preparations
15
C21.2.0 - Manufacture of pharmaceutical
preparations
16
C22.2.1 - Manufacture of plastic plates,
sheets, tubes and profiles
17
C22.2.2 - Manufacture of plastic packing goods
18
C23 - Manufacture of other
non-metallic mineral products
19
C24 - Manufacture of basic metals
20
C24.1.0 - Manufacture of
basic iron and steel and of ferro
-alloys
21
C24.2 - Manufacture of tubes, pipes, hollow
profiles and related fittings, of steel
22
C24.4.2 - Aluminium production
23
C24.4.4 - Copper production
24
C24.5.1 - Casting of iron
25
C27.3.2 - Manufacture of other
electronic and electric wires and cables
26
C27.5.1 - Manufacture
of electric domestic appliances
27
C28.9 - Manufacture of
other special-purpose machinery
28
C29 - Manufacture of motor vehicles,
trailers and semi-trailers
29
C29.3.2 - Manufacture of other
parts and accessories for motor vehicles
30
C33.1.1 - Repair of
fabricated metal products
31
C33.1.2 - Repair of machinery
32
D35 - Electricity, gas, steam and air conditioning
supply
33
D35.1.1 - Production
of electricity
34
D35.1.3 - Distribution of electricity
35
D35.1.4 - Trade of
electricity
36
E38.3.2 - Recovery of sorted materials
37
F41.2.0 - Construction of residential and non-residential
buildings
38
F42 - Civil engineering
39
F42.2.2 - Construction of utility projects for electricity
and telecommunications
40
F42.9.9
- Construction of other civil engineering
projects n.e.c.
41
F43.2.9 - Other construction
installation
42
F43.9.9
- Other specialised construction activities
n.e.c.
43
G45 - Wholesale and retail trade and
repair of motor vehicles and motorcycles
44
G45.1.1 - Sale of
cars and light motor vehicles
45
G45.1.9 - Sale
of other motor vehicles
46
G45.3.0 - Sale of motor vehicle parts
and accessories
47
G46 - Wholesale trade, except of motor
vehicles and motorcycles
48
G46.3.6 - Wholesale of sugar and chocolate
and sugar confectionery
49
G46.4.2 - Wholesale of clothing and footwear
50
G46.4.6 - Wholesale of pharmaceutical
goods
51
G46.4.7 - Wholesale of furniture,
carpets and lighting equipment
52
G46.5.1 - Wholesale of computers,
computer peripheral equipment
and software
53
G46.5.2 - Wholesale of electronic and telecommunications
equipment and parts
54
G46.7 - Other specialised wholesale
55
G46.7.1
- Wholesale of solid, liquid and gaseous fuels
and related products
56
G46.7.2 - Wholesale of
metals and metal ores
57
G46.7.7 - Wholesale of
waste and scrap
58
G47 - Retail trade, except of motor vehicles
and motorcycles
59
G47.1.9
- Other retail sale in non-specialised stores
60
G47.7.1
- Retail sale of clothing in specialised stores
61
G47.7.8
- Other retail sale of new goods
in specialised stores
62
H49 - Land transport and transport via
pipelines
63
H50.1.0 - Sea and coastal passenger
water transport
64
H51 - Air transport
65
H52.1 - Warehousing and storage
66
H52.2.1 - Service activities incidental to land
transportation
67
H52.2.3 - Service activities incidental to air transportation
68
I55 - Accommodation
69
I55.1.0 - Hotels and similar
accommodation
70
J61 - Telecommunications
71
J62.0 - Computer programming, consultancy
and related activities
72
J62.0.1 - Computer programming
activities
73
J62.0.3 - Computer facilities management
activities
74
K64.2.0 - Activities of holding companies
75
K64.9.1
- Financial leasing
76
K65.1.2 - Non-life insurance
77
K66.1.9 - Other
activities auxiliary to financial services, except
insurance and pension funding
78
L68 - Real estate activities
79
L68.1.0 - Buying and selling of own
real estate
80
L68.2.0 - Renting and operating of own or
leased real estate
81
L68.3.2 - Management of real estate on a fee
or contract basis
82
M71.2.0 - Technical testing and analysis
83
M74.1.0 - Specialised design activities
84
M74.9.0 - Other
professional, scientific and technical
activities n.e.c.
85
N77.1.1
- Renting and leasing of cars and light motor vehicles
86
N77.3.9
- Renting and leasing of other machinery,
equipment and tangible goods n.e.c.
87
N81.2.2 - Other building and industrial cleaning activities
88
N82 - Office administrative,
office support and other
business support activities
89
Q86.1.0 - Hospital activities
90
R92 - Gambling and betting activities
91
S95.1.1 - Repair of
computers and peripheral
equipment
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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STATEMENT
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r
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t
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y
z
aa
ab
2. GAR sector information - Turnover
31 December 2024
Breakdown by sector - NACE
4 digits level (code and label)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA
+ WTR + CE + PPC + BIO)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to
NFRD
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable
(CCM + CCA + WTR +
CE + PPC + BIO)
Mn EUR
Of which
environmentally
sustainable
(CCM + CCA + WTR +
CE + PPC + BIO)
1
B7 - Mining of metal ores
16
-
2
C10.6.1 - Manufacture
of grain mill products
0
0
3
C11 - Manufacture of beverages
5
-
4
C13.9.5 - Manufacture
of non-wovens and articles made from non-wovens,
except
apparel
1
1
5
C14.1.3 - Manufacture of other
outerwear
0
-
6
C15 - Manufacture of leather
and related products
2
-
7
C17 - Manufacture of paper and paper
products
4
0
8
C18.1.0 - Printing and service
activities related to printing
0
-
9
C19 - Manufacture of coke and refined
petroleum products
85
1
10
C19.2.0 - Manufacture of refined
petroleum products
767
10
11
C20.1.1 - Manufacture
of industrial gases
0
-
12
C20.4.2 - Manufacture of perfumes
and toilet preparations
30
-
13
C20.5.9 - Manufacture
of other chemical products
n.e.c.
4
4
14
C21 - Manufacture of basic pharmaceutical products and pharmaceutical preparations
22
-
15
C21.2.0 - Manufacture of pharmaceutical
preparations
25
-
16
C22.2.1 - Manufacture of plastic plates,
sheets, tubes and profiles
12
0
17
C22.2.2 - Manufacture of plastic packing goods
10
2
18
C23 - Manufacture of other
non-metallic mineral products
87
4
19
C24 - Manufacture of basic metals
10
-
20
C24.1.0 - Manufacture of
basic iron and steel and of ferro
-alloys
85
8
21
C24.2 - Manufacture of tubes, pipes, hollow profiles and related
fittings, of steel
8
2
22
C24.4.2 - Aluminium production
52
3
23
C24.4.4 - Copper production
61
1
24
C24.5.1 - Casting of iron
58
4
25
C27.3.2 - Manufacture of other
electronic and electric wires and cables
196
50
26
C27.5.1 - Manufacture
of electric domestic appliances
1
1
27
C28.9 - Manufacture of
other special-purpose machinery
18
-
28
C29 - Manufacture of motor vehicles,
trailers and semi-trailers
53
4
29
C29.3.2 - Manufacture of other
parts and accessories for motor vehicles
0
0
30
C33.1.1 - Repair of
fabricated metal products
9
9
31
C33.1.2 - Repair of machinery
0
0
32
D35 - Electricity, gas, steam and air conditioning
supply
297
48
33
D35.1.1 - Production
of electricity
1,403
1,297
34
D35.1.3 - Distribution of electricity
355
-
35
D35.1.4 - Trade of
electricity
341
-
36
E38.3.2 - Recovery of sorted materials
2
0
37
F41.2.0 - Construction of residential and non-residential
buildings
1
-
38
F42 - Civil engineering
42
5
39
F42.2.2 - Construction of utility projects for electricity and telecommunications
198
198
40
F42.9.9
- Construction of other civil engineering
projects n.e.c.
19
4
41
F43.2.9 - Other construction
installation
21
-
42
F43.9.9
- Other specialised construction activities
n.e.c.
5
-
43
G45 - Wholesale and retail trade and repair of motor
vehicles and motorcycles
3
0
44
G45.1.1 - Sale of
cars and light motor vehicles
1
0
45
G45.1.9 - Sale
of other motor vehicles
2
0
46
G45.3.0 - Sale of motor vehicle parts
and accessories
4
0
47
G46 - Wholesale trade, except of motor
vehicles and motorcycles
1
-
48
G46.3.6 - Wholesale of sugar and chocolate
and sugar confectionery
4
-
49
G46.4.2 - Wholesale of clothing and footwear
7
-
50
G46.4.6 - Wholesale of pharmaceutical
goods
23
-
51
G46.4.7 - Wholesale of furniture,
carpets and lighting equipment
8
-
52
G46.5.1 - Wholesale of computers, computer
peripheral equipment and software
7
0
53
G46.5.2 - Wholesale of electronic and telecommunications
equipment and parts
11
-
54
G46.7 - Other specialised wholesale
1
-
55
G46.7.1
- Wholesale of solid, liquid and gaseous fuels
and related products
319
36
56
G46.7.2 - Wholesale of
metals and metal ores
13
1
57
G46.7.7 - Wholesale of
waste and scrap
6
0
58
G47 - Retail trade, except of motor vehicles
and motorcycles
0
-
59
G47.1.9
- Other retail sale in non-specialised stores
28
5
60
G47.7.1
- Retail sale of clothing in specialised stores
12
0
61
G47.7.8
- Other retail sale of new goods
in specialised stores
1
-
62
H49 - Land transport and transport via
pipelines
8
7
63
H50.1.0 - Sea and coastal passenger
water transport
0
-
64
H51 - Air transport
25
-
65
H52.1 - Warehousing and storage
1
-
66
H52.2.1 - Service activities incidental to land
transportation
21
2
67
H52.2.3 - Service activities incidental to air transportation
402
6
68
I55 - Accommodation
3
-
69
I55.1.0 - Hotels and similar
accommodation
40
-
70
J61 - Telecommunications
23
0
71
J62.0 - Computer programming, consultancy
and related activities
9
-
72
J62.0.1 - Computer programming
activities
2
2
73
J62.0.3 - Computer facilities management
activities
2
-
74
K64.2.0 - Activities of holding companies
64
0
75
K64.9.1
- Financial leasing
3
-
76
K65.1.2 - Non-life insurance
0
-
77
K66.1.9 - Other
activities auxiliary to financial services, except insurance
and pension
funding
9
-
78
L68 - Real estate activities
14
3
79
L68.1.0 - Buying and selling of own
real estate
116
19
80
L68.2.0 - Renting and operating of own or
leased real estate
89
7
81
L68.3.2 - Management of real estate on a fee
or contract basis
71
10
82
M71.2.0 - Technical testing and analysis
2
0
83
M74.1.0 - Specialised design activities
0
-
84
M74.9.0 - Other
professional, scientific and technical
activities n.e.c.
0
0
85
N77.1.1
- Renting and leasing of cars and light motor vehicles
10
0
86
N77.3.9 - Renting and leasing of other machinery,
equipment and tangible goods n.e.c.
11
0
87
N81.2.2 - Other building and industrial cleaning activities
2
0
88
N82 - Office administrative, office support
and other business support activities
3
-
89
Q86.1.0 - Hospital activities
57
-
90
R92 - Gambling and betting activities
392
-
91
S95.1.1 - Repair of
computers and peripheral
equipment
0
0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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STATEMENT
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a
b
c
d
e
f
g
h
2. GAR sector information - Capex
31 December 2024
Breakdown by sector - NACE 4 digits level (code and label)
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to
NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to
NFRD
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which
environmentally
sustainable (CCM)
Mn EUR
Of which
environmentally
sustainable (CCM)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
1
B7 - Mining of metal ores
16
-
16
-
2
C10.6.1 - Manufacture
of grain mill products
0
0
0
-
3
C11 - Manufacture of beverages
5
0
5
-
4
C13.9.5 - Manufacture
of non-wovens and articles made
from non-wovens, except
apparel
1
1
1
-
5
C14.1.3 - Manufacture of other
outerwear
0
0
0
-
6
C15 - Manufacture of leather
and related products
2
0
2
-
7
C17 - Manufacture of paper and paper
products
4
0
4
-
8
C18.1.0 - Printing and service
activities related to printing
0
-
0
-
9
C19 - Manufacture of coke and refined
petroleum products
85
23
85
-
10
C19.2.0 - Manufacture of refined
petroleum products
767
179
767
-
11
C20.1.1 - Manufacture
of industrial gases
0
-
0
-
12
C20.4.2 - Manufacture of perfumes
and toilet preparations
30
6
30
-
13
C20.5.9 - Manufacture
of other chemical products
n.e.c.
4
4
4
-
14
C21 - Manufacture of basic pharmaceutical
products and pharmaceutical preparations
22
-
22
-
15
C21.2.0 - Manufacture of pharmaceutical
preparations
25
-
25
-
16
C22.2.1 - Manufacture of plastic plates,
sheets, tubes and profiles
12
0
12
-
17
C22.2.2 - Manufacture of plastic packing goods
10
-
10
2
18
C23 - Manufacture of other
non-metallic mineral products
87
24
87
-
19
C24 - Manufacture of basic metals
10
-
10
-
20
C24.1.0 - Manufacture of
basic iron and steel and of ferro
-alloys
85
17
85
-
21
C24.2 - Manufacture of tubes, pipes, hollow
profiles and related fittings, of steel
8
3
8
-
22
C24.4.2 - Aluminium production
52
9
52
-
23
C24.4.4 - Copper production
61
4
61
-
24
C24.5.1 - Casting of iron
58
10
58
-
25
C27.3.2 - Manufacture of other
electronic and electric wires and cables
196
73
196
-
26
C27.5.1 - Manufacture
of electric domestic appliances
1
1
1
-
27
C28.9 - Manufacture of
other special-purpose machinery
18
-
18
-
28
C29 - Manufacture of motor vehicles,
trailers and semi-trailers
53
10
53
-
29
C29.3.2 - Manufacture of other
parts and accessories for motor vehicles
0
0
0
-
30
C33.1.1 - Repair of
fabricated metal products
9
9
9
-
31
C33.1.2 - Repair of machinery
0
0
0
-
32
D35 - Electricity, gas, steam and air conditioning
supply
297
112
297
0
33
D35.1.1 - Production
of electricity
1,403
1,360
1,403
-
34
D35.1.3 - Distribution of electricity
355
-
355
-
35
D35.1.4 - Trade of
electricity
341
-
341
-
36
E38.3.2 - Recovery of sorted materials
2
0
2
-
37
F41.2.0 - Construction of residential and non-residential
buildings
1
-
1
-
38
F42 - Civil engineering
42
19
42
0
39
F42.2.2 - Construction of utility projects for electricity
and telecommunications
198
198
198
-
40
F42.9.9
- Construction of other civil engineering
projects n.e.c.
19
13
19
-
41
F43.2.9 - Other construction
installation
21
-
21
-
42
F43.9.9
- Other specialised construction activities
n.e.c.
5
-
5
-
43
G45 - Wholesale and retail trade and
repair of motor vehicles and motorcycles
3
1
3
0
44
G45.1.1 - Sale of
cars and light motor vehicles
1
0
1
0
45
G45.1.9 - Sale
of other motor vehicles
2
1
2
-
46
G45.3.0 - Sale of motor vehicle parts
and accessories
4
1
4
0
47
G46 - Wholesale trade, except of motor
vehicles and motorcycles
1
-
1
-
48
G46.3.6 - Wholesale of sugar and chocolate
and sugar confectionery
4
-
4
-
49
G46.4.2 - Wholesale of clothing and footwear
7
1
7
-
50
G46.4.6 - Wholesale of pharmaceutical
goods
23
-
23
-
51
G46.4.7 - Wholesale of furniture,
carpets and lighting equipment
8
-
8
-
52
G46.5.1 - Wholesale of computers,
computer peripheral equipment
and software
7
1
7
-
53
G46.5.2 - Wholesale of electronic and telecommunications
equipment and parts
11
-
11
-
54
G46.7 - Other specialised wholesale
1
-
1
-
55
G46.7.1
- Wholesale of solid, liquid and gaseous fuels
and related products
319
187
319
-
56
G46.7.2 - Wholesale of
metals and metal ores
13
2
13
-
57
G46.7.7 - Wholesale of
waste and scrap
6
1
6
-
58
G47 - Retail trade, except of motor vehicles
and motorcycles
0
-
0
-
59
G47.1.9
- Other retail sale in non-specialised stores
28
14
28
-
60
G47.7.1
- Retail sale of clothing in specialised stores
12
-
12
-
61
G47.7.8
- Other retail sale of new goods
in specialised stores
1
-
1
-
62
H49 - Land transport and transport via
pipelines
8
6
8
-
63
H50.1.0 - Sea and coastal passenger
water transport
0
0
0
-
64
H51 - Air transport
25
0
25
-
65
H52.1 - Warehousing and storage
1
-
1
-
66
H52.2.1 - Service activities incidental to
land transportation
21
2
21
0
67
H52.2.3 - Service activities incidental to air transportation
402
20
402
-
68
I55 - Accommodation
3
-
3
-
69
I55.1.0 - Hotels and similar
accommodation
40
-
40
-
70
J61 - Telecommunications
23
-
23
-
71
J62.0 - Computer programming, consultancy
and related activities
9
0
9
0
72
J62.0.1 - Computer programming
activities
2
-
2
2
73
J62.0.3 - Computer facilities management
activities
2
0
2
-
74
K64.2.0 - Activities of holding companies
64
0
64
-
75
K64.9.1
- Financial leasing
3
-
3
-
76
K65.1.2 - Non-life insurance
0
-
0
-
77
K66.1.9 - Other
activities auxiliary to financial services, except
insurance and pension funding
9
0
9
-
78
L68 - Real estate activities
14
5
14
0
79
L68.1.0 - Buying and selling of own
real estate
116
58
116
-
80
L68.2.0 - Renting and operating of own or
leased real estate
89
17
89
-
81
L68.3.2 - Management of real estate on a fee
or contract basis
71
32
71
-
82
M71.2.0 - Technical testing and analysis
2
0
2
-
83
M74.1.0 - Specialised design activities
0
-
0
-
84
M74.9.0 - Other
professional, scientific and technical
activities n.e.c.
0
0
0
-
85
N77.1.1
- Renting and leasing of cars and light motor vehicles
10
2
10
0
86
N77.3.9
- Renting and leasing of other machinery,
equipment and tangible goods n.e.c.
11
2
11
0
87
N81.2.2 - Other building and industrial cleaning activities
2
1
2
-
88
N82 - Office administrative,
office support and other
business support activities
3
0
3
-
89
Q86.1.0 - Hospital activities
57
0
57
-
90
R92 - Gambling and betting activities
392
-
392
-
91
S95.1.1 - Repair of
computers and peripheral
equipment
0
-
0
0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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STATEMENT
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j
k
l
m
n
o
p
2. GAR sector information - Capex
31 December 2024
Breakdown by sector - NACE 4 digits level (code and label)
Water and marine resources (WTR)
Circular economy (CE)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to
NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to
NFRD
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
1
B7 - Mining of metal ores
2
C10.6.1 - Manufacture
of grain mill products
3
C11 - Manufacture of beverages
4
C13.9.5 - Manufacture
of non-wovens and articles made
from non-wovens, except
apparel
5
C14.1.3 - Manufacture of other
outerwear
6
C15 - Manufacture of leather
and related products
7
C17 - Manufacture of paper and paper
products
8
C18.1.0 - Printing and service
activities related to printing
9
C19 - Manufacture of coke and refined
petroleum products
10
C19.2.0 - Manufacture of refined
petroleum products
11
C20.1.1 - Manufacture
of industrial gases
12
C20.4.2 - Manufacture of perfumes
and toilet preparations
13
C20.5.9 - Manufacture
of other chemical products
n.e.c.
14
C21 - Manufacture of basic pharmaceutical
products and pharmaceutical preparations
15
C21.2.0 - Manufacture of pharmaceutical
preparations
16
C22.2.1 - Manufacture of plastic plates,
sheets, tubes and profiles
17
C22.2.2 - Manufacture of plastic packing goods
18
C23 - Manufacture of other
non-metallic mineral products
19
C24 - Manufacture of basic metals
20
C24.1.0 - Manufacture of
basic iron and steel and of ferro
-alloys
21
C24.2 - Manufacture of tubes, pipes, hollow
profiles and related fittings, of steel
22
C24.4.2 - Aluminium production
23
C24.4.4 - Copper production
24
C24.5.1 - Casting of iron
25
C27.3.2 - Manufacture of other
electronic and electric wires and cables
26
C27.5.1 - Manufacture
of electric domestic appliances
27
C28.9 - Manufacture of
other special-purpose machinery
28
C29 - Manufacture of motor vehicles,
trailers and semi-trailers
29
C29.3.2 - Manufacture of other
parts and accessories for motor vehicles
30
C33.1.1 - Repair of
fabricated metal products
31
C33.1.2 - Repair of machinery
32
D35 - Electricity, gas, steam and air conditioning
supply
33
D35.1.1 - Production
of electricity
34
D35.1.3 - Distribution of electricity
35
D35.1.4 - Trade of
electricity
36
E38.3.2 - Recovery of sorted materials
37
F41.2.0 - Construction of residential and non-residential
buildings
38
F42 - Civil engineering
39
F42.2.2 - Construction of utility projects for electricity
and telecommunications
40
F42.9.9
- Construction of other civil engineering
projects n.e.c.
41
F43.2.9 - Other construction
installation
42
F43.9.9
- Other specialised construction activities
n.e.c.
43
G45 - Wholesale and retail trade and
repair of motor vehicles and motorcycles
44
G45.1.1 - Sale of
cars and light motor vehicles
45
G45.1.9 - Sale
of other motor vehicles
46
G45.3.0 - Sale of motor vehicle parts
and accessories
47
G46 - Wholesale trade, except of motor
vehicles and motorcycles
48
G46.3.6 - Wholesale of sugar and chocolate
and sugar confectionery
49
G46.4.2 - Wholesale of clothing and footwear
50
G46.4.6 - Wholesale of pharmaceutical
goods
51
G46.4.7 - Wholesale of furniture,
carpets and lighting equipment
52
G46.5.1 - Wholesale of computers,
computer peripheral equipment
and software
53
G46.5.2 - Wholesale of electronic and telecommunications
equipment and parts
54
G46.7 - Other specialised wholesale
55
G46.7.1
- Wholesale of solid, liquid and gaseous fuels
and related products
56
G46.7.2 - Wholesale of
metals and metal ores
57
G46.7.7 - Wholesale of
waste and scrap
58
G47 - Retail trade, except of motor vehicles
and motorcycles
59
G47.1.9
- Other retail sale in non-specialised stores
60
G47.7.1
- Retail sale of clothing in specialised stores
61
G47.7.8
- Other retail sale of new goods
in specialised stores
62
H49 - Land transport and transport via
pipelines
63
H50.1.0 - Sea and coastal passenger
water transport
64
H51 - Air transport
65
H52.1 - Warehousing and storage
66
H52.2.1 - Service activities incidental to land
transportation
67
H52.2.3 - Service activities incidental to air transportation
68
I55 - Accommodation
69
I55.1.0 - Hotels and similar
accommodation
70
J61 - Telecommunications
71
J62.0 - Computer programming, consultancy
and related activities
72
J62.0.1 - Computer programming
activities
73
J62.0.3 - Computer facilities management
activities
74
K64.2.0 - Activities of holding companies
75
K64.9.1
- Financial leasing
76
K65.1.2 - Non-life insurance
77
K66.1.9 - Other
activities auxiliary to financial services, except
insurance and pension funding
78
L68 - Real estate activities
79
L68.1.0 - Buying and selling of own
real estate
80
L68.2.0 - Renting and operating of own or
leased real estate
81
L68.3.2 - Management of real estate on a fee
or contract basis
82
M71.2.0 - Technical testing and analysis
83
M74.1.0 - Specialised design activities
84
M74.9.0 - Other
professional, scientific and technical
activities n.e.c.
85
N77.1.1
- Renting and leasing of cars and light motor vehicles
86
N77.3.9
- Renting and leasing of other machinery,
equipment and tangible goods n.e.c.
87
N81.2.2 - Other building and industrial cleaning activities
88
N82 - Office administrative,
office support and other
business support activities
89
Q86.1.0 - Hospital activities
90
R92 - Gambling and betting activities
91
S95.1.1 - Repair of
computers and peripheral
equipment
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY
STATEMENT
128
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q
r
s
t
u
v
w
x
y
z
aa
ab
2. GAR sector information - Capex
31 December 2024
Breakdown by sector - NACE
4 digits level (code and label)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA
+ WTR + CE + PPC + BIO)
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to NFRD
Non-Financial corporates
(Subject to NFRD)
SMEs and other NFC not subject
to
NFRD
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Gross carrying amount
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable (CCA)
Mn EUR
Of which
environmentally
sustainable
(CCM + CCA + WTR +
CE + PPC + BIO)
Mn EUR
Of which
environmentally
sustainable
(CCM + CCA + WTR +
CE + PPC + BIO)
1
B7 - Mining of metal ores
16
-
2
C10.6.1 - Manufacture
of grain mill products
0
0
3
C11 - Manufacture of beverages
5
0
4
C13.9.5 - Manufacture of non-wovens
and articles made from non-wovens, except apparel
1
1
5
C14.1.3 - Manufacture of other
outerwear
0
0
6
C15 - Manufacture of leather
and related products
2
0
7
C17 - Manufacture of paper and paper
products
4
0
8
C18.1.0 - Printing and service
activities related to printing
0
-
9
C19 - Manufacture of coke and refined
petroleum products
85
23
10
C19.2.0 - Manufacture of refined
petroleum products
767
179
11
C20.1.1 - Manufacture
of industrial gases
0
-
12
C20.4.2 - Manufacture of perfumes
and toilet preparations
30
6
13
C20.5.9 - Manufacture
of other chemical products
n.e.c.
4
4
14
C21 - Manufacture of basic pharmaceutical products and pharmaceutical preparations
22
-
15
C21.2.0 - Manufacture of pharmaceutical
preparations
25
-
16
C22.2.1 - Manufacture of plastic plates,
sheets, tubes and profiles
12
0
17
C22.2.2 - Manufacture of plastic packing goods
10
2
18
C23 - Manufacture of other
non-metallic mineral products
87
24
19
C24 - Manufacture of basic metals
10
-
20
C24.1.0 - Manufacture of
basic iron and steel and of ferro
-alloys
85
17
21
C24.2 - Manufacture of tubes, pipes, hollow profiles and related
fittings, of steel
8
3
22
C24.4.2 - Aluminium production
52
9
23
C24.4.4 - Copper production
61
4
24
C24.5.1 - Casting of iron
58
10
25
C27.3.2 - Manufacture of other
electronic and electric wires and cables
196
73
26
C27.5.1 - Manufacture
of electric domestic appliances
1
1
27
C28.9 - Manufacture of
other special-purpose machinery
18
-
28
C29 - Manufacture of motor vehicles,
trailers and semi-trailers
53
10
29
C29.3.2 - Manufacture of other
parts and accessories for motor vehicles
0
0
30
C33.1.1 - Repair of
fabricated metal products
9
9
31
C33.1.2 - Repair of machinery
0
0
32
D35 - Electricity, gas, steam and air conditioning
supply
297
112
33
D35.1.1 - Production
of electricity
1,403
1,360
34
D35.1.3 - Distribution of electricity
355
-
35
D35.1.4 - Trade of
electricity
341
-
36
E38.3.2 - Recovery of sorted materials
2
0
37
F41.2.0 - Construction of residential and non-residential
buildings
1
-
38
F42 - Civil engineering
42
19
39
F42.2.2 - Construction of utility projects for electricity
and
telecommunications
198
198
40
F42.9.9
- Construction of other civil engineering
projects n.e.c.
19
13
41
F43.2.9 - Other construction
installation
21
-
42
F43.9.9
- Other specialised construction activities
n.e.c.
5
-
43
G45 - Wholesale and retail trade and
repair of motor vehicles and
motorcycles
3
1
44
G45.1.1 - Sale of
cars and light motor vehicles
1
0
45
G45.1.9 - Sale
of other motor vehicles
2
1
46
G45.3.0 - Sale of motor vehicle parts
and accessories
4
1
47
G46 - Wholesale trade, except of motor
vehicles and motorcycles
1
-
48
G46.3.6 - Wholesale of sugar and chocolate
and sugar confectionery
4
-
49
G46.4.2 - Wholesale of clothing and footwear
7
1
50
G46.4.6 - Wholesale of pharmaceutical
goods
23
-
51
G46.4.7 - Wholesale of furniture,
carpets and lighting equipment
8
-
52
G46.5.1 - Wholesale of computers,
computer peripheral equipment
and
software
7
1
53
G46.5.2 - Wholesale of electronic and telecommunications
equipment and
parts
11
-
54
G46.7 - Other specialised wholesale
1
-
55
G46.7.1
- Wholesale of solid, liquid and gaseous fuels
and related products
319
187
56
G46.7.2 - Wholesale of
metals and metal ores
13
2
57
G46.7.7 - Wholesale of
waste and scrap
6
1
58
G47 - Retail trade, except of motor vehicles
and motorcycles
0
-
59
G47.1.9
- Other retail sale in non-specialised stores
28
14
60
G47.7.1
- Retail sale of clothing in specialised stores
12
-
61
G47.7.8
- Other retail sale of new goods
in specialised stores
1
-
62
H49 - Land transport and transport via
pipelines
8
6
63
H50.1.0 - Sea and coastal passenger
water transport
0
0
64
H51 - Air transport
25
0
65
H52.1 - Warehousing and storage
1
-
66
H52.2.1 - Service activities incidental to land
transportation
21
2
67
H52.2.3 - Service activities incidental to air transportation
402
20
68
I55 - Accommodation
3
-
69
I55.1.0 - Hotels and similar
accommodation
40
-
70
J61 - Telecommunications
23
-
71
J62.0 - Computer programming, consultancy
and related activities
9
0
72
J62.0.1 - Computer programming
activities
2
2
73
J62.0.3 - Computer facilities management
activities
2
0
74
K64.2.0 - Activities of holding companies
64
0
75
K64.9.1
- Financial leasing
3
-
76
K65.1.2 - Non-life insurance
0
-
77
K66.1.9 - Other activities auxiliary
to financial services, except insurance and pension funding
9
0
78
L68 - Real estate activities
14
5
79
L68.1.0 - Buying and selling of own
real estate
116
58
80
L68.2.0 - Renting and operating of own or
leased real estate
89
17
81
L68.3.2 - Management of real estate on a fee
or contract basis
71
32
82
M71.2.0 - Technical testing and analysis
2
0
83
M74.1.0 - Specialised design activities
0
-
84
M74.9.0 - Other
professional, scientific and technical
activities n.e.c.
0
0
85
N77.1.1
- Renting and leasing of cars and light motor vehicles
10
2
86
N77.3.9 - Renting and leasing of other machinery,
equipment and tangible goods n.e.c.
11
2
87
N81.2.2 - Other building and industrial cleaning activities
2
1
88
N82 - Office administrative, office support and other business
support activities
3
0
89
Q86.1.0 - Hospital activities
57
0
90
R92 - Gambling and betting activities
392
-
91
S95.1.1 - Repair of
computers and peripheral
equipment
0
0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
129
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€ = Euro
m = million
bn = billion
3. GAR KPI Stock - Turnover
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
% (compared to total covered
assets in the
denominator)
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
59.5
6.6
4.9
0.1
0.5
0.4
0.0
-
0.0
0.0
-
-
-
0.0
-
-
-
2
Financial corporations
25.3
2.9
-
0.2
0.4
0.4
0.0
-
0.0
-
-
-
-
0.0
-
-
-
3
Credit institutions
26.4
2.8
-
0.2
0.4
0.3
0.0
-
0.0
-
-
-
-
-
-
-
-
4
Loans and advances
24.0
3.9
-
0.1
0.1
0.1
0.0
-
0.0
-
-
-
-
-
-
-
-
5
Debt securities, including UoP
27.1
2.5
-
0.3
0.5
0.4
0.0
-
0.0
-
-
-
-
-
-
-
-
6
Equity instruments
19.7
1.5
0.1
0.1
0.6
0.0
-
-
-
-
-
-
-
7
Other financial corporations
12.9
4.1
-
0.0
0.5
1.6
0.0
-
-
-
-
-
-
0.1
-
-
-
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
12
of which
management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
37.5
0.2
-
0.0
0.0
0.8
0.8
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
37.5
0.2
-
0.0
0.0
0.8
0.8
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
37.2
28.5
22.5
0.1
2.0
1.7
0.0
-
0.0
0.0
-
-
-
0.2
-
-
-
21
Loans and advances
38.5
31.0
25.5
0.0
1.5
1.5
0.0
-
0.0
-
-
-
-
0.2
-
-
-
22
Debt securities, including UoP
27.6
10.1
-
0.6
5.6
3.1
0.0
-
0.0
0.0
-
-
-
0.5
-
-
-
23
Equity instruments
20.0
7.9
-
0.9
4.9
0.0
-
-
-
-
0.0
-
-
24
Households
75.1
0.1
0.1
-
-
-
-
-
-
-
-
-
-
25
of which loans collateralised by residential
immovable property
100.0
0.2
0.2
-
-
-
-
-
-
-
-
-
-
26
of which building renovation loans
100.0
-
-
-
-
-
-
-
-
-
-
-
-
27
of which motor vehicle loans
100.0
0.8
0.8
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government
financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
74.6
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32
Total GAR assets
24.3
2.6
1.9
0.0
0.2
0.2
0.0
-
0.0
-
-
-
-
0.0
-
-
-
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
130
|
Page
€ = Euro
m = million
bn = billion
3. GAR KPI Stock - Turnover
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
% (compared to total covered
assets in the
denominator)
31 December 2024
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM
+ CCA + WTR + CE + PPC + BIO)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total
assets covered
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
0.0
-
-
-
0.1
-
-
-
60.2
6.6
4.9
0.1
0.5
39.6
2
Financial corporations
-
-
-
-
-
-
-
-
26.0
3.0
-
0.2
0.4
6.0
3
Credit institutions
-
-
-
-
-
-
-
-
27.0
2.9
-
0.2
0.4
5.5
4
Loans and advances
-
-
-
-
-
-
-
-
24.5
4.0
-
0.1
0.1
1.3
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
27.8
2.5
-
0.3
0.5
4.2
6
Equity instruments
-
-
-
-
-
-
20.2
1.5
0.1
0.1
0.0
7
Other financial corporations
-
-
-
-
-
-
-
-
14.6
4.1
-
0.0
0.3
0.5
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
12
of which
management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
-
-
-
-
-
-
-
-
38.3
1.0
-
0.0
0.0
0.0
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
38.3
1.0
-
0.0
0.0
0.0
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
0.1
-
-
-
0.7
-
-
-
39.9
28.6
22.5
0.1
2.0
8.4
21
Loans and advances
0.0
-
-
-
0.7
-
-
-
40.9
31.0
25.5
0.0
1.6
7.4
22
Debt securities, including UoP
1.2
-
-
-
0.0
-
-
-
32.4
10.2
-
0.6
5.6
1.0
23
Equity instruments
-
-
-
-
-
-
25.0
7.9
-
0.9
0.0
24
Households
75.1
0.1
0.1
-
-
25.2
25
of which loans collateralised by residential
immovable property
100.0
0.2
0.2
-
-
16.9
26
of which building renovation loans
100.0
-
-
-
-
2.9
27
of which motor vehicle loans
100.0
0.8
0.8
-
-
0.8
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government
financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
74.6
-
-
-
-
1.0
32
Total GAR assets
0.0
-
-
-
0.1
-
-
-
24.6
2.6
1.9
0.0
0.2
100.0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
131
|
Page
€ = Euro
m = million
bn = billion
3. GAR KPI Stock - Capex
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
% (compared to total covered
assets in the
denominator)
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
65.1
9.2
4.9
0.2
1.4
0.2
0.0
-
0.0
-
-
-
-
0.0
-
-
-
2
Financial corporations
28.7
4.5
-
0.2
0.7
0.3
0.0
-
0.0
-
-
-
-
0.0
-
-
-
3
Credit institutions
25.6
3.6
-
0.2
0.6
0.4
0.0
-
0.0
-
-
-
-
-
-
-
-
4
Loans and advances
19.9
3.9
-
0.1
0.1
0.1
0.0
-
0.0
-
-
-
-
-
-
-
-
5
Debt securities, including UoP
27.4
3.4
-
0.3
0.8
0.4
0.0
-
0.0
-
-
-
-
-
-
-
-
6
Equity instruments
22.1
3.2
0.1
0.2
0.5
0.0
-
-
-
-
-
-
-
7
Other financial corporations
64.3
15.1
-
0.2
1.7
0.0
0.0
-
-
-
-
-
-
0.0
-
-
-
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
12
of which
management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
37.3
0.3
-
0.0
0.0
0.8
0.8
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
37.3
0.3
-
0.0
0.0
0.8
0.8
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
60.9
39.6
22.5
0.7
5.9
0.8
0.1
-
0.0
-
-
-
-
0.1
-
-
-
21
Loans and advances
60.8
41.2
25.5
0.3
5.3
0.7
0.1
-
0.0
-
-
-
-
0.1
-
-
-
22
Debt securities, including UoP
62.1
27.9
-
3.8
10.5
1.2
0.0
-
0.0
0.0
-
-
-
0.4
-
-
-
23
Equity instruments
37.4
26.2
0.1
2.1
3.5
-
-
-
-
-
0.0
-
-
24
Households
75.1
0.1
0.1
-
-
-
-
-
-
-
-
-
-
25
of which loans collateralised by residential
immovable property
100.0
0.2
0.2
-
-
-
-
-
-
-
-
-
-
26
of which building renovation loans
100.0
-
-
-
-
-
-
-
-
-
-
-
-
27
of which motor vehicle loans
100.0
0.8
0.8
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government
financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
74.6
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32
Total GAR assets
26.5
3.6
1.9
0.1
0.5
0.1
0.0
-
0.0
-
-
-
-
0.0
-
-
-
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
132
|
Page
€ = Euro
m = million
bn = billion
3. GAR KPI Stock - Capex
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
% (compared to total covered
assets in the
denominator)
31 December 2024
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM
+ CCA + WTR + CE + PPC + BIO)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total
assets covered
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
0.1
-
-
-
0.1
-
-
-
65.6
9.2
4.9
0.2
1.4
39.6
2
Financial corporations
-
-
-
-
-
-
-
-
29.3
4.5
-
0.2
0.7
6.0
3
Credit institutions
-
-
-
-
-
-
-
-
26.2
3.6
-
0.2
0.6
5.5
4
Loans and advances
-
-
-
-
-
-
-
-
20.3
4.0
-
0.1
0.1
1.3
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
28.1
3.4
-
0.3
0.8
4.2
6
Equity instruments
-
-
-
-
-
-
22.8
3.2
0.1
0.2
0.0
7
Other financial corporations
-
-
-
-
-
-
-
-
64.3
15.1
-
0.1
1.4
0.5
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
12
of which
management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
-
-
-
-
-
-
-
-
38.1
1.1
-
0.0
0.0
0.0
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
38.1
1.1
-
0.0
0.0
0.0
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
0.3
-
-
-
0.7
-
-
-
62.7
39.7
22.5
0.7
5.9
8.4
21
Loans and advances
0.2
-
-
-
0.7
-
-
-
62.5
41.3
25.5
0.3
5.4
7.4
22
Debt securities, including UoP
0.6
-
-
-
0.0
-
-
-
64.4
27.9
-
3.8
10.6
1.0
23
Equity instruments
-
-
-
-
-
-
40.9
26.2
0.1
2.1
0.0
24
Households
75.1
0.1
0.1
-
-
25.2
25
of which loans collateralised by residential
immovable property
100.0
0.2
0.2
-
-
16.9
26
of which building renovation loans
100.0
-
-
-
-
2.9
27
of which motor vehicle loans
100.0
0.8
0.8
-
-
0.8
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government
financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
74.6
-
-
-
-
1.0
32
Total GAR assets
0.0
-
-
-
0.1
-
-
-
26.7
3.7
1.9
0.1
0.5
100.0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
133
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Page
€ = Euro
m = million
bn = billion
4. GAR KPI flow - Turnover
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
% (compared to flow of total eligible assets)
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
53.5
11.9
5.8
0.0
1.4
1.6
0.1
-
0.1
0.0
-
-
-
0.1
-
-
-
2
Financial corporations
21.1
1.1
-
0.1
0.1
0.3
0.0
-
0.0
-
-
-
-
-
-
-
-
3
Credit institutions
21.1
1.1
-
0.1
0.1
0.3
0.0
-
0.0
-
-
-
-
-
-
-
-
4
Loans and advances
1.4
0.6
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5
Debt securities, including UoP
21.3
1.1
-
0.1
0.1
0.3
0.0
-
0.0
-
-
-
-
-
-
-
-
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
7
Other financial corporations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
12
of which
management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
30.8
23.3
12.0
-
2.9
3.1
0.2
-
0.1
0.0
-
-
-
0.2
-
-
-
21
Loans and advances
30.5
24.7
13.3
-
2.3
2.7
0.2
-
0.1
0.0
-
-
-
0.2
-
-
-
22
Debt securities, including UoP
33.3
10.3
0.0
-
8.3
7.0
0.4
-
0.4
-
-
-
-
0.0
-
-
-
23
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
24
Households
100.0
0.9
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25
of which loans collateralised by residential
immovable property
100.0
1.2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
26
of which building renovation loans
100.0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27
of which motor vehicle loans
100.0
0.8
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government
financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
82.8
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32
Total GAR assets
16.8
3.7
1.8
0.0
0.4
0.5
0.0
-
0.0
0.0
-
-
-
0.0
-
-
-
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
134
|
Page
€ = Euro
m = million
bn = billion
4. GAR KPI flow - Turnover
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
% (compared to flow of total eligible assets)
31 December 2024
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM
+ CCA + WTR + CE + PPC + BIO)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total
assets covered
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
0.2
-
-
-
-
-
-
-
55.3
12.0
5.8
0.0
1.5
31.3
2
Financial corporations
-
-
-
-
-
-
-
-
21.3
1.1
-
0.1
0.1
5.0
3
Credit institutions
-
-
-
-
-
-
-
-
21.4
1.1
-
0.1
0.1
5.0
4
Loans and advances
-
-
-
-
-
-
-
-
1.4
0.6
-
-
-
0.0
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
21.5
1.1
-
0.1
0.1
5.0
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
7
Other financial corporations
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
12
of which
management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
0.3
-
-
-
-
-
-
-
34.3
23.5
12.0
-
3.0
15.3
21
Loans and advances
0.0
-
-
-
-
-
-
-
33.4
24.9
13.3
-
2.4
13.8
22
Debt securities, including UoP
3.3
-
-
-
-
-
-
-
43.6
10.7
0.0
-
8.7
1.5
23
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
24
Households
-
-
-
-
-
-
-
-
100.0
0.9
-
-
-
11.0
25
of which loans collateralised by residential
immovable property
-
-
-
-
-
-
-
-
100.0
1.2
-
-
-
7.9
26
of which building renovation loans
-
-
-
-
-
-
-
-
100.0
-
-
-
-
1.4
27
of which motor vehicle loans
-
-
-
-
-
-
-
-
100.0
0.8
-
-
-
1.3
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government
financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
82.8
-
-
-
-
0.1
32
Total GAR assets
0.0
-
-
-
-
-
-
-
17.4
3.7
1.8
0.0
0.5
100.0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
135
|
Page
€ = Euro
m = million
bn = billion
4. GAR KPI flow - Capex
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
% (compared to flow of total eligible assets)
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WTR)
Circular economy (CE)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
67.1
20.6
5.8
0.1
4.7
0.5
0.2
-
0.1
-
-
-
-
0.0
-
-
-
2
Financial corporations
19.5
2.0
-
0.2
0.1
0.2
0.0
-
0.0
-
-
-
-
-
-
-
-
3
Credit institutions
19.6
2.0
-
0.2
0.1
0.2
0.0
-
0.0
-
-
-
-
-
-
-
-
4
Loans and advances
1.8
1.2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5
Debt securities, including UoP
19.7
2.0
-
0.2
0.1
0.2
0.0
-
0.0
-
-
-
-
-
-
-
-
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
7
Other financial corporations
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
12
of which
management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
59.1
40.8
12.0
0.2
9.6
0.9
0.3
-
0.2
-
-
-
-
0.0
-
-
-
21
Loans and advances
59.6
42.5
13.3
0.1
9.1
0.5
0.2
-
0.1
-
-
-
-
0.0
-
-
-
22
Debt securities, including UoP
54.7
25.4
-
0.3
13.8
4.4
1.5
-
1.5
-
-
-
-
0.0
-
-
-
23
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
-
24
Households
100.0
0.9
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25
of which loans collateralised by residential
immovable property
100.0
1.2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
26
of which building renovation loans
100.0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27
of which motor vehicle loans
100.0
0.8
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government
financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
82.8
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32
Total GAR assets
21.1
6.4
1.8
0.0
1.5
0.2
0.0
-
0.0
-
-
-
-
0.0
-
-
-
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
136
|
Page
€ = Euro
m = million
bn = billion
4. GAR KPI flow - Capex
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
af
% (compared to flow of total eligible assets)
31 December 2024
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM
+ CCA + WTR + CE + PPC + BIO)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total
assets covered
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered
assets
funding taxonomy relevant sectors
(Taxonomy-aligned)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for GAR
calculation
0.3
-
-
-
-
-
-
-
67.9
20.8
5.8
0.1
4.8
31.3
2
Financial corporations
-
-
-
-
-
-
-
-
19.9
2.0
-
0.2
0.1
5.0
3
Credit institutions
-
-
-
-
-
-
-
-
19.9
2.0
-
0.2
0.1
5.0
4
Loans and advances
-
-
-
-
-
-
-
-
1.8
1.2
-
-
-
0.0
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
20.1
2.0
-
0.2
0.2
5.0
6
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
7
Other financial corporations
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
12
of which
management companies
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
16
of which insurance undertakings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
0.5
-
-
-
-
-
-
-
60.6
41.2
12.0
0.2
9.8
15.3
21
Loans and advances
0.5
-
-
-
-
-
-
-
60.6
42.7
13.3
0.1
9.2
13.8
22
Debt securities, including UoP
1.2
-
-
-
-
-
-
-
60.4
27.0
-
0.3
15.3
1.5
23
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
24
Households
-
-
-
-
-
-
-
-
100.0
0.9
-
-
-
11.0
25
of which loans collateralised by residential
immovable property
-
-
-
-
-
-
-
-
100.0
1.2
-
-
-
7.9
26
of which building renovation loans
-
-
-
-
-
-
-
-
100.0
-
-
-
-
1.4
27
of which motor vehicle loans
-
-
-
-
-
-
-
-
100.0
0.8
-
-
-
1.3
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government
financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained by taking possession:
residential and commercial immovable
properties
-
-
-
-
-
-
-
-
82.8
-
-
-
-
0.1
32
Total GAR assets
0.1
-
-
-
-
-
-
-
21.3
6.5
1.8
0.0
1.5
100.0
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m = million
bn = billion
5. KPI off-balance sheet
exposures-
Stock-
Turnover
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
% (compared to total eligible off
-balance
sheet assets)
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-eligible)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-eligible)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant
sectors (Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant
sectors (Taxonomy
-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
1
Financial guarantees (FinGuar KPI)
12.0
4.6
-
0.0
0.4
2.1
0.1
-
0.1
-
-
-
-
0.1
-
-
-
2
Assets under management
7.7
1.1
-
0.1
0.3
0.5
0.0
-
0.0
0.0
-
-
-
0.0
-
-
-
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
% (compared to total eligible off
-balance
sheet assets)
31 December 2024
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL
(CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-eligible)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy
-eligible)
Proportion of total covered
assets
funding taxonomy relevant
sectors (Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant
sectors (Taxonomy
-aligned)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
1
Financial guarantees (FinGuar KPI)
0.0
-
-
-
-
-
-
-
14.2
4.7
-
0.0
0.5
2
Assets under management
0.1
-
-
-
0.0
-
-
-
8.3
1.1
-
0.1
0.3
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€ = Euro
m = million
bn = billion
5. KPI off-balance sheet
exposures-
Stock-
Capex
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
% (compared to total eligible off
-balance
sheet assets)
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-eligible)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-eligible)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant
sectors (Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant
sectors (Taxonomy
-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
1
Financial guarantees (FinGuar KPI)
24.7
15.6
-
0.1
1.5
0.9
0.1
-
1.5
-
-
-
-
0.1
-
-
-
2
Assets under management
11.0
2.8
-
0.3
0.7
0.2
0.0
-
0.0
0.0
-
-
-
0.0
-
-
-
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
% (compared to total eligible off
-balance
sheet assets)
31 December 2024
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL
(CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-eligible)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy
-eligible)
Proportion of total covered
assets
funding taxonomy relevant
sectors (Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant
sectors (Taxonomy
-aligned)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
1
Financial guarantees (FinGuar KPI)
0.0
-
-
-
-
-
-
-
25.7
15.7
-
0.1
3.0
2
Assets under management
0.1
-
-
-
0.0
-
-
-
11.5
2.9
-
0.3
0.7
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€ = Euro
m = million
bn = billion
5. KPI off-balance sheet
exposures-
Flow-
Turnover
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
% (compared to total eligible off
-balance
sheet assets)
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-eligible)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-eligible)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant
sectors (Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant
sectors (Taxonomy
-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
1
Financial guarantees (FinGuar KPI)
5.2
1.8
-
0.0
0.3
1.6
0.0
-
-
-
-
-
-
0.0
-
-
-
2
Assets under management
22.8
3.2
-
0.2
1.2
1.5
0.1
-
0.0
0.0
-
-
-
0.5
-
-
-
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
% (compared to total eligible off
-balance
sheet assets)
31 December 2024
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL
(CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-eligible)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy
-eligible)
Proportion of total covered
assets
funding taxonomy relevant
sectors (Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant
sectors (Taxonomy
-aligned)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
1
Financial guarantees (FinGuar KPI)
0.0
-
-
-
0.0
-
-
-
6.8
1.8
-
0.0
0.3
2
Assets under management
0.2
-
-
-
0.0
-
-
-
25.1
3.3
-
0.2
1.2
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m = million
bn = billion
5. KPI off-balance sheet
exposures-
Flow-
Capex
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
% (compared to total eligible off
-balance
sheet assets)
31 December 2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-eligible)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-eligible)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant
sectors (Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant
sectors (Taxonomy
-aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
1
Financial guarantees (FinGuar KPI)
12.2
6.9
-
0.1
1.3
0.2
0.0
-
-
-
-
-
-
-
-
-
-
2
Assets under management
34.4
9.0
-
0.9
2.4
0.6
0.1
-
0.0
0.0
-
-
-
0.2
-
-
-
r
s
t
u
v
w
x
z
aa
ab
ac
ad
ae
% (compared to total eligible off
-balance
sheet assets)
31 December 2024
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL
(CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-eligible)
Proportion of total covered
assets
funding taxonomy relevant
sectors
(Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy
-eligible)
Proportion of total covered
assets
funding taxonomy relevant
sectors (Taxonomy
-aligned)
Proportion of total covered
assets
funding taxonomy relevant
sectors (Taxonomy
-aligned)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-aligned)
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
1
Financial guarantees (FinGuar KPI)
0.0
-
-
-
0.0
-
-
-
12.5
6.9
-
0.1
1.3
2
Assets under management
0.1
-
-
-
0.0
-
-
-
35.5
9.2
-
0.9
2.4
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m = million
bn = billion
Template 1
Nuclear and fossil gas related activities for
2024
Row
Nuclear energy related activities
1.
The undertaking carries
out, funds or has exposures to research, development,
demonstration and
deployment of innovative electricity generation
facilities that produce
energy from nuclear
processes with minimal waste from the
fuel cycle.
YES
2.
The undertaking carries
out, funds or has exposures to construction and safe
operation of new
nuclear installations to produce electricity or process
heat,
including for the purposes of district heating or industrial processes
such as
hydrogen production,
as well as their safety upgrades,
using best available
technologies.
YES
3.
The undertaking carries
out, funds or has exposures to safe operation
of existing
nuclear installations that produce electricity or process
heat, including for the
purposes of district heating or industrial processes such as hydrogen
production
from nuclear energy,
as well as their safety upgrades.
YES
Fossil gas related activities
4.
The undertaking carries
out, funds or has exposures to construction or operation
of electricity generation facilities
that produce electricity using fossil
gaseous
fuels
YES
5.
The undertaking carries
out, funds or has exposures to construction, refurbishment,
and operation of combined heat/cool
and power generation
facilities using fossil
gaseous fuels.
YES
6.
The undertaking carries
out, funds or has exposures to construction, refurbishment
and operation of heat
generation facilities
that produce heat/cool
using fossil gaseous
fuels.
YES
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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€ = Euro
m = million
bn = billion
Turnover KPI Tables
for 2024
Template 2 - Taxonomy
-aligned economic activities (denominator)
Row
Economic activities
Amount (in Million EUR) and proportion
(the information is to be presented in monetary amounts and as
percentages)
(CCM + CCA)
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.26 of Annexes I and II
to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
0
0.0
0
0.0
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.27 of Annexes I and
II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
3
0.0
3
0.0
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.28 of Annexes I and II
to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
110
0.2
110
0.2
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.29 of Annexes I and II
to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
-
-
-
-
-
-
5.
Amount and proportion of taxonomy-aligned economic activity EN
3 EN
referred to in Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
2
0.0
1
0.0
1
0.0
6.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.31 of Annexes I and
II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of
the applicable KPI
1,793
2.5
1,791
2.5
2
0.0
8.
Total applicable KPI
1,908
2.6
1,905
2.6
3
0.0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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€ = Euro
m = million
bn = billion
Template 3 -Taxonomy
-aligned economic activities (numerator)
Row
Economic activities
Amount (in Million EUR) and proportion
(the information is to be presented in monetary amounts and as
percentages)
(CCM + CCA)
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.26 of Annexes I and II
to Delegated Regulation 2021/2139
in the numerator of the applicable KPI
0
0.0
0
0.0
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.27 of Annexes I and
II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
3
0.2
3
0.2
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.28 of Annexes I and II
to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
110
5.8
110
5.8
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.29 of Annexes I and II
to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
-
-
-
-
-
-
5.
Amount and proportion of taxonomy-aligned economic activity EN
3 EN
referred to in Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
2
0.1
1
0.0
1
0.1
6.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.31 of Annexes I and
II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of
the applicable KPI
1,793
94.0
1,791
93.9
2
0.1
8.
Total amount and proportion of taxonomy-aligned economic
activities in the numerator of the applicable KPI
1,908
100.0
1,905
99.8
3
0.2
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m = million
bn = billion
Template 4 - Taxonomy
-eligible but not taxonomy-aligned economic activities
Row
Economic activities
Amount (in Million EUR) and proportion
(the information is to be presented in monetary amounts and as
percentages)
(CCM + CCA)
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
1
0.0
1
0.0
-
-
2.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
9
0.0
9
0.0
-
-
3.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
11
0.0
7
0.0
-
-
4.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
176
0.2
164
0.2
-
-
5.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
94
0.1
60
0.1
1
0.0
6.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.31 of Annexes I and II to
Delegated EN 6 EN Regulation 2021/2139 in the denominator of
the
applicable KPI
1
0.0
1
0.0
-
-
7.
Amount and proportion of other taxonomy-eligible but not taxonomy-
aligned economic activities not referred to in rows 1 to 6 above in the
denominator of the applicable KPI
15,593
21.4
15,523
21.3
119
0.2
8.
Total amount and proportion of taxonomy eligible but not taxonomy-
aligned economic activities in the denominator of the applicable KPI
15,885
21.8
15,765
21.7
120
0.2
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m = million
bn = billion
Template 5 - Taxonomy
non-eligible economic activities
Row
Economic activities
Amount
(in Million
EUR)
%
1.
Amount and proportion of economic activity referred to in row 1 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.26 of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
2.
Amount and proportion of economic activity referred to in row 2 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.27 of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
3.
Amount and proportion of economic activity referred to in row 3 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.28 of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
4.
Amount and proportion of economic activity referred to in row 4 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.29 of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
5.
Amount and proportion of economic activity referred to in row 5 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the
denominator of EN 7 EN the applicable KPI
-
-
6.
Amount and proportion of economic activity referred to in row 6 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.31 of Annexes I and II to
Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
7.
Amount and proportion of other taxonomy-non-eligible economic
activities not referred to in rows 1 to 6 above in the denominator of
the applicable KPI
54,970
75.5
8.
Total amount and proportion of taxonomy-non-eligible economic
activities in the denominator of the applicable KPI
54,970
75.5
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bn = billion
CapexKPI Tables for 2024
Template 2 - Taxonomy
-aligned economic activities (denominator)
Row
Economic activities
Amount (in Million EUR) and proportion
(the information is to be presented in monetary amounts and as
percentages)
(CCM + CCA)
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.26 of Annexes I and II
to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
0.01
-
0.01
-
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.27 of Annexes I and
II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
60
0.1
60
0.1
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.28 of Annexes I and II
to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
26
0.0
26
0.0
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.29 of Annexes I and II
to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
12.54
0.0
12.54
0.0
-
-
5.
Amount and proportion of taxonomy-aligned economic activity EN
3 EN
referred to in Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
0.00
-
0.00
-
-
-
6.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.31 of Annexes I and
II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of
the applicable KPI
2,561
3.5
2,555
3.5
5
0.0
8.
Total applicable KPI
2,658
3.7
2,653
3.6
5
0.0
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bn = billion
Template 3 -Taxonomy
-aligned economic activities (numerator)
Row
Economic activities
Amount (in Million EUR) and proportion
(the information is to be presented in monetary amounts and as
percentages)
(CCM + CCA)
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.26 of Annexes I and II
to Delegated Regulation 2021/2139
in the numerator of the applicable KPI
0.0
0.0
0.0
0.0
-
-
2.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.27 of Annexes I and
II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
60
2.2
60
2.2
-
-
3.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.28 of Annexes I and II
to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
26
1.0
26
1.0
-
-
4.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.29 of Annexes I and II
to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
12.5
0.5
12.5
0.5
-
-
5.
Amount and proportion of taxonomy-aligned economic activity EN
3 EN
referred to in Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
0.0
0.0
0.0
0.0
-
-
6.
Amount and proportion of taxonomy-aligned economic activity referred
to in Section 4.31 of Annexes I and
II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
-
-
-
-
-
-
7.
Amount and proportion of other taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in the denominator of
the applicable KPI
2,561
96.3
2,555
96.1
5
0.2
8.
Total amount and proportion of taxonomy-aligned economic
activities in the numerator of the applicable KPI
2,658
100.0
2,653
99.8
5
0.2
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bn = billion
Template 4 - Taxonomy
-eligible but not taxonomy-aligned economic activities
Row
Economic activities
Amount (in Million EUR) and Pproportion
(the information is to be presented in monetary amounts and as
percentages)
(CCM + CCA)
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
0
-
0
-
-
-
2.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
-
-
-
-
-
-
3.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
0
-
0
-
-
-
4.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
100
0.1
100
0.1
0
0.0
5.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable
KPI
47
0.1
47
0.1
-
-
6.
Amount and proportion of taxonomy-eligible but not taxonomy-aligned
economic activity referred to in Section 4.31 of Annexes I and II to
Delegated EN 6 EN Regulation 2021/2139 in the denominator of
the
applicable KPI
1
0.0
1
0.0
-
-
7.
Amount and proportion of other taxonomy-eligible but not
taxonomy-aligned economic activities not referred to in rows 1 to 6
above in the denominator of the applicable KPI
16,527
22.7
16,471
22.6
55
0.1
8.
Total amount and proportion of taxonomy eligible but not taxonomy-
aligned economic activities in the denominator of the applicable KPI
16,675
22.9
16,619
22.8
55
0.1
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m = million
bn = billion
Template 5 - Taxonomy
non-eligible economic activities
Row
Economic activities
Amount
(in Million
EUR)
%
1.
Amount and proportion of economic activity referred to in row 1 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.26 of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
2.
Amount and proportion of economic activity referred to in row 2 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.27 of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
3.
Amount and proportion of economic activity referred to in row 3 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.28 of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
4.
Amount and proportion of economic activity referred to in row 4 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.29 of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
5.
Amount and proportion of economic activity referred to in row 5 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the
denominator of EN 7 EN the applicable KPI
-
-
6.
Amount and proportion of economic activity referred to in row 6 of
Template 1 that is taxonomy-non-eligible in accordance with Section
4.31 of Annexes I and II to
Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
-
-
7.
Amount and proportion of other taxonomy-non-eligible economic
activities not referred to in rows 1 to 6 above in the denominator of
the applicable KPI
53,429
73.4
8.
Total amount and proportion of taxonomy-non-eligible economic
activities in the denominator of the applicable KPI
53,429
73.4
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€ = Euro
m = million
bn = billion
1.Assets for the
calculation of GAR - Turnover
Million EUR
Total [gross]
carrying
amount
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL
(CCM + CCA)
Of which towards taxonomy
relevant sectors (Taxonomy
-eligible)
Of which towards taxonomy
relevant
sectors (Taxonomy
-eligible)
Of which towards taxonomy
relevant sectors (Taxonomy
-eligible)
Of which environmentally
sustainable (Taxonomy
-aligned)
Of which environmentally
sustainable (Taxonomy
-aligned)
Of which environmentally sustainable
(Taxonomy
-aligned)
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which
enabling
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
GAR- Covered assets in both
numerator and
denominator
1
Loans and advances, debt securities and
equity
instruments no HfT eligible for
GAR calculation
21,065
11,393
1,474
1,327
9
62
173
10
-
1
12,015
1,484
1,327
9
63
2
Financial undertakings
2,519
9
4
-
0
0
5
-
-
-
463
4
-
0
0
3
Credit institutions
2,447
-
-
-
-
-
-
-
-
-
446
-
-
-
-
4
Loans and advances
987
-
-
-
-
-
-
-
-
-
169
-
-
-
-
5
Debt securities, including UoP
1,451
-
-
-
-
-
-
-
-
-
275
-
-
-
-
6
Equity instruments
9
-
-
-
-
-
-
-
1
-
-
-
7
Other financial corporations
71
9
4
-
0
0
5
-
-
-
18
4
-
0
0
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
14
-
-
-
-
-
-
-
-
-
1
-
-
-
-
13
Loans and advances
12
-
-
-
-
-
-
-
-
-
1
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
1
-
-
-
-
-
-
-
0
-
-
-
16
of which insurance undertakings
12
-
-
-
-
-
-
-
-
-
2
-
-
-
-
17
Loans and advances
0
-
-
-
-
-
-
-
-
-
0
-
-
-
-
18
Debt securities, including UoP
12
-
-
-
-
-
-
-
-
-
2
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial undertakings
5,016
1,794
1,434
1,291
9
62
167
10
-
1
1,961
1,444
1,291
9
63
21
Loans and advances
4,286
1,663
1,377
1,291
2
56
95
1
-
-
1,758
1,378
1,291
2
56
22
Debt securities, including UoP
721
126
57
-
6
5
72
9
-
1
198
66
-
6
6
23
Equity instruments
9
5
0
0
0
0
-
-
5
0
0
0
24
Households
13,512
9,590
36
36
-
-
-
-
-
-
9,590
36
36
-
-
25
of which loans collateralised
by residential
immovable property
9,162
9,162
-
-
-
-
-
-
-
-
9,162
-
-
-
-
26
of which
building renovation loans
36
36
36
36
-
-
-
-
-
-
36
36
36
-
-
27
of which motor vehicle loans
392
392
-
-
-
-
392
-
-
-
-
28
Local governments financing
18
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local govemment
financing
18
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained
by taking possession:
residential and commercial immovable
properties
590
590
-
-
-
-
-
-
-
-
590
-
-
-
-
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€ = Euro
m = million
bn = billion
1.Assets for the
calculation of GAR - Turnover
Million EUR
Total [gross]
carrying
amount
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL
(CCM + CCA)
Of which towards taxonomy
relevant sectors (Taxonomy
-eligible)
Of which towards taxonomy
relevant
sectors (Taxonomy
-eligible)
Of which towards taxonomy
relevant sectors (Taxonomy
-eligible)
Of which environmentally
sustainable (Taxonomy
-aligned)
Of which environmentally
sustainable (Taxonomy
-aligned)
Of which environmentally sustainable
(Taxonomy
-aligned)
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which
enabling
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
32
Assets excluded from the numerator
for GAR
calculation (covered
in the denominator)
38,795
33
Financial and Non-financial undertakings
28,901
34
SMEs and NFCs (other
than SMEs) not subject to
NFRD disclosure obligations
23,799
35
Loans and advances
21,576
36
of which loans collateralised
by commercial
immovable property
7,074
37
of which building renovation
loans
-
38
Debt securities
2,038
39
Equity instruments
185
40
Non-EU country counterparties not
subject to
NFRD disclosure obligations
5,102
41
Loans and advances
4,732
42
Debt securities
321
43
Equity instruments
49
44
Derivatives
897
45
On demand interbank loans
19
46
Cash and cash-related assets
502
47
Other categories of assets (e.g. goodwill,
commodities etc.)
8,476
48
Total GAR
assets
60,449
11,983
1,474
1,327
9
62
173
10
-
1
12,605
1,484
1,327
9
63
49
Assets not covered for
GAR calculation
20,715
50
Central governments
and Supranational
issuers
9,914
51
Central banks exposure
10,422
52
Trading book
379
53
Total assets
81,165
11,983
1,474
1,327
9
62
173
10
-
1
12,605
1,484
1,327
9
63
Off-balance sheet exposures
-Undertakings subject to
NFRD disclosure obligations
54
Financial guarantees
796
360
44
-
3
4
28
0
-
0
387
44
-
3
4
55
Assets under management
866
142
21
-
3
7
27
2
-
0
169
24
-
3
7
56
Of which debt securities
629
107
10
-
1
1
13
1
-
0
120
11
-
1
1
57
Of which equity instruments
237
35
11
-
2
6
14
1
-
0
49
13
-
2
6
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€ = Euro
m = million
bn = billion
1.Assets for the
calculation of GAR - Capex
Million EUR
Total [gross]
carrying
amount
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL
(CCM + CCA)
Of which towards taxonomy
relevant sectors (Taxonomy
-eligible)
Of which towards taxonomy
relevant sectors
(Taxonomy
-eligible)
Of which towards taxonomy
relevant sectors (Taxonomy
-eligible)
Of which environmentally
sustainable (Taxonomy
-aligned)
Of which environmentally sustainable
(Taxonomy
-aligned)
Of which environmentally sustainable
(Taxonomy-
aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which
enabling
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
GAR- Covered assets in both
numerator and
denominator
1
Loans and advances, debt securities and
equity
instruments no HfT eligible for
GAR calculation
21,065
12,469
2,081
1,327
26
78
333
7
-
1
13,251
2,088
1,327
26
79
2
Financial undertakings
2,519
19
18
-
1
0
4
-
-
-
472
18
-
1
0
3
Credit institutions
2,447
-
-
-
-
-
-
-
-
-
446
-
-
-
-
4
Loans and advances
987
-
-
-
-
-
-
-
-
-
169
-
-
-
-
5
Debt securities, including UoP
1,451
-
-
-
-
-
-
-
-
-
275
-
-
-
-
6
Equity instruments
9
-
-
-
-
-
-
-
1
-
-
-
7
Other financial corporations
71
19
18
-
1
0
4
-
-
-
26
18
-
1
0
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
12
of which management companies
14
-
-
-
-
-
-
-
-
-
1
-
-
-
-
13
Loans and advances
12
-
-
-
-
-
-
-
-
-
1
-
-
-
-
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
1
-
-
-
-
-
-
-
0
-
-
-
16
of which insurance undertakings
12
-
-
-
-
-
-
-
-
-
2
-
-
-
-
17
Loans and advances
0
-
-
-
-
-
-
-
-
-
0
-
-
-
-
18
Debt securities, including UoP
12
-
-
-
-
-
-
-
-
-
2
-
-
-
-
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial undertakings
5,016
2,860
2,027
1,291
25
78
329
7
-
1
3,189
2,034
1,291
25
78
21
Loans and advances
4,286
2,498
1,811
1,291
3
67
247
1
-
-
2,745
1,811
1,291
3
67
22
Debt securities, including UoP
721
357
216
-
21
11
82
6
-
1
440
222
-
21
11
23
Equity instruments
9
5
1
0
0
0
-
-
5
1
0
0
24
Households
13,512
9,590
36
36
-
-
-
-
-
-
9,590
36
36
-
-
25
of which loans collateralised
by residential
immovable property
9,162
9,162
-
-
-
-
-
-
-
-
9,162
-
-
-
-
26
of which
building renovation loans
36
36
36
36
-
-
-
-
-
-
36
36
36
-
-
27
of which motor vehicle loans
392
392
-
-
-
-
392
-
-
-
-
28
Local governments financing
18
-
-
-
-
-
-
-
-
-
-
-
-
-
-
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
153
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Page
€ = Euro
m = million
bn = billion
1.Assets for the
calculation of GAR - Capex
Million EUR
Total [gross]
carrying
amount
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL
(CCM + CCA)
Of which towards taxonomy
relevant sectors (Taxonomy
-eligible)
Of which towards taxonomy
relevant sectors
(Taxonomy
-eligible)
Of which towards taxonomy
relevant sectors (Taxonomy
-eligible)
Of which environmentally
sustainable (Taxonomy
-aligned)
Of which environmentally sustainable
(Taxonomy
-aligned)
Of which environmentally sustainable
(Taxonomy-
aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which
enabling
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
30
Other local govemment
financing
18
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31
Collateral obtained
by taking possession:
residential and commercial immovable
properties
590
590
-
-
-
-
-
-
-
-
590
-
-
-
-
32
Assets excluded from the numerator
for GAR
calculation (covered
in the denominator)
38,795
33
Financial and Non-financial undertakings
28,901
34
SMEs and NFCs (other
than SMEs) not subject to
NFRD disclosure obligations
23,799
35
Loans and advances
21,576
36
of which loans collateralised
by commercial
immovable property
7,074
37
of which building renovation
loans
-
38
Debt securities
2,038
39
Equity instruments
185
40
Non-EU country counterparties not
subject to
NFRD disclosure obligations
5,102
41
Loans and advances
4,732
42
Debt securities
321
43
Equity instruments
49
44
Derivatives
897
45
On demand interbank loans
19
46
Cash and cash-related assets
502
47
Other categories of assets (e.g. goodwill,
commodities etc.)
8,476
48
Total GAR
assets
60,449
13,059
2,081
1,327
26
78
333
7
-
1
13,841
2,088
1,327
26
79
49
Assets not covered for
GAR calculation
20,715
50
Central governments
and Supranational
issuers
9,914
51
Central banks exposure
10,422
52
Trading book
379
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
154
|
Page
€ = Euro
m = million
bn = billion
1.Assets for the
calculation of GAR - Capex
Million EUR
Total [gross]
carrying
amount
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL
(CCM + CCA)
Of which towards taxonomy
relevant sectors (Taxonomy
-eligible)
Of which towards taxonomy
relevant sectors
(Taxonomy
-eligible)
Of which towards taxonomy
relevant sectors (Taxonomy
-eligible)
Of which environmentally
sustainable (Taxonomy
-aligned)
Of which environmentally sustainable
(Taxonomy
-aligned)
Of which environmentally sustainable
(Taxonomy-
aligned)
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which
enabling
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
53
Total assets
81,165
13,059
2,081
1,327
26
78
333
7
-
1
13,841
2,088
1,327
26
79
Off-balance sheet exposures
-Undertakings subject to
NFRD disclosure obligations
54
Financial guarantees
796
462
152
-
4
6
25
0
-
-
487
152
-
4
6
55
Assets under management
866
287
116
-
3
11
22
1
-
0
309
116
-
3
11
56
Of which debt securities
629
205
64
-
1
3
12
0
-
0
217
64
-
1
3
57
Of which equity instruments
237
82
52
-
2
8
10
1
-
-
92
53
-
2
8
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
155
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Page
€ = Euro
m = million
bn = billion
3. GAR KPI Stock - Turnover
% (compared to total covered
assets in the
denominator)
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL
(CCM + CCA)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of
total assets
covered
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy
-aligned)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy
-aligned)
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which enabling
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both
numerator
and denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for
GAR
calculation
54.1
7.0
6.3
0.0
0.3
0.8
0.0
-
0.0
57.0
7.0
6.3
0.0
0.3
34.8
2
Financial corporations
0.4
0.2
-
0.0
0.0
0.2
-
-
-
18.4
0.2
-
0.0
0.0
4.2
3
Credit institutions
-
-
-
-
-
-
-
-
-
18.2
-
-
-
-
4.0
4
Loans and advances
-
-
-
-
-
-
-
-
-
17.1
-
-
-
-
1.6
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
19.0
-
-
-
-
2.4
6
Equity instruments
-
-
-
-
-
-
14.0
-
-
-
0.0
7
Other financial corporations
13.2
6.0
-
0.5
0.4
7.6
-
-
-
25.2
6.0
-
0.5
0.4
0.1
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
12
of which
management companies
-
-
-
-
-
-
-
-
-
8.6
-
-
-
-
0.0
13
Loans and advances
-
-
-
-
-
-
-
-
-
8.2
-
-
-
-
0.0
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
11.9
-
-
-
0.0
16
of which insurance undertakings
-
-
-
-
-
-
-
-
-
16.6
-
-
-
-
0.0
17
Loans and advances
-
-
-
-
-
-
-
-
-
8.2
-
-
-
-
-
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
156
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Page
€ = Euro
m = million
bn = billion
3. GAR KPI Stock - Turnover
% (compared to total covered
assets in the
denominator)
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL
(CCM + CCA)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of
total assets
covered
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy
-aligned)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy
-aligned)
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which enabling
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
16.6
-
-
-
-
0.0
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
35.8
28.
6
25.7
0.2
1.2
3.3
0.2
-
0.0
39.1
28.
8
25.7
0.2
1.2
8.3
21
Loans and advances
38.8
32.1
30.1
0.1
1.3
2.2
0.0
-
-
41.0
32.1
30.1
0.1
1.3
7.1
22
Debt securities, including UoP
17.5
7.9
-
0.9
0.7
10.0
1.3
-
0.1
27.5
9.2
-
0.9
0.8
1.2
23
Equity instruments
50.6
1.3
-
0.2
0.9
-
-
51.5
1.3
-
0.2
0.0
24
Households
71.0
0.3
0.3
-
-
-
-
-
-
71.0
0.3
0.3
-
-
22.4
25
of which loans collateralised
by residential
immovable property
100.0
-
-
-
-
-
-
-
-
100.0
-
-
-
-
15.2
26
of which building renovation
loans
100.0
100.
0
100.0
-
-
-
-
-
-
100.0
100.
0
100.0
-
-
0.1
27
of which motor vehicle loans
100.0
-
-
-
-
100.0
-
-
-
-
0.6
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government
financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0
31
Collateral obtained
by taking possession:
residential and commercial immovable
properties
100.0
-
-
-
-
-
-
-
-
100.0
-
-
-
-
1.0
32
Total GAR assets
19.8
2.4
2.2
0.0
0.1
0.3
0.0
-
0.0
20.9
2.5
2.2
0.0
0.1
100.0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
157
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Page
€ = Euro
m = million
bn = billion
3. GAR KPI Stock - Capex
% (compared to total covered
assets in the
denominator)
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL
(CCM + CCA)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of
total assets
covered
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy
-aligned)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy
-aligned)
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
GAR - Covered assets in both
numerator
and denominator
1
Loans and advances, debt securities and
equity instruments not HfT eligible for
GAR
calculation
59.2
9.9
6.3
0.1
0.4
1.6
0.0
-
0.0
62.9
9.9
6.3
0.1
0.4
34.8
2
Financial corporations
0.8
0.7
-
0.0
0.0
0.2
-
-
-
18.7
0.7
-
0.0
0.0
4.2
3
Credit institutions
-
-
-
-
-
-
-
-
-
18.2
-
-
-
-
4.0
4
Loans and advances
-
-
-
-
-
-
-
-
-
17.1
-
-
-
-
1.6
5
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
19.0
-
-
-
-
2.4
6
Equity instruments
-
-
-
-
-
-
-
14.0
-
-
-
0.0
7
Other financial corporations
26.9
25.9
-
1.5
0.6
5.7
-
-
-
37.0
25.9
-
1.5
0.6
0.1
8
of which investment firms
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
Loans and advances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
12
of which
management companies
-
-
-
-
-
-
-
-
-
8.6
-
-
-
-
0.0
13
Loans and advances
-
-
-
-
-
-
-
-
-
8.2
-
-
-
-
0.0
14
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15
Equity instruments
-
-
-
-
-
-
-
11.9
-
-
-
0.0
16
of which insurance undertakings
-
-
-
-
-
-
-
-
-
16.6
-
-
-
-
0.0
17
Loans and advances
-
-
-
-
-
-
-
-
-
8.2
-
-
-
-
-
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
REPORT OF THE DIRECTORS / SUSTAINABILITY STATEMENT
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Page
€ = Euro
m = million
bn = billion
3. GAR KPI Stock - Capex
% (compared to total covered
assets in the
denominator)
31 December 2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL
(CCM + CCA)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy
-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy
-eligible)
Proportion of
total assets
covered
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy
-aligned)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy-
aligned)
Proportion of total covered
assets funding
taxonomy relevant sectors (Taxonomy
-aligned)
Of which Use of
Proceeds
Of which
transitional
Of which
enabling
Of which Use of
Proceeds
Of which enabling
Of which Use
of Proceeds
Of which
transitional
Of which
enabling
18
Debt securities, including UoP
-
-
-
-
-
-
-
-
-
16.6
-
-
-
-
0.0
19
Equity instruments
-
-
-
-
-
-
-
-
-
-
-
-
20
Non-financial corporations
57.0
40.
4
25.7
0.5
1.6
6.6
0.1
-
0.0
63.6
40.
5
25.7
0.5
1.6
8.3
21
Loans and advances
58.3
42.2
30.1
0.1
1.6
5.8
0.0
-
-
64.0
42.3
30.1
0.1
1.6
7.1
22
Debt securities, including UoP
49.6
29.9
-
2.9
1.5
11.4
0.8
-
0.1
61.0
30.8
-
2.9
1.5
1.2
23
Equity instruments
50.9
9.5
-
0.2
1.2
-
-
52.1
9.5
-
0.2
0.0
24
Households
71.0
0.3
0.3
-
-
-
-
-
-
71.0
0.3
0.3
-
-
22.4
25
of which loans collateralised
by residential
immovable property
100.0
-
-
-
-
-
-
-
-
100.0
-
-
-
-
15.2
26
of which building renovation
loans
100.0
100.
0
100.0
-
-
-
-
-
-
100.0
100.
0
100.0
-
-
0.1
27
of which motor vehicle loans
100.0
-
-
-
-
100.0
-
-
-
-
0.6
28
Local governments financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0
29
Housing financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
Other local government
financing
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.0
31
Collateral obtained
by taking possession:
residential and commercial immovable
properties
100.0
-
-
-
-
-
-
-
-
100.0
-
-
-
-
1.0
32
Total GAR assets
21.6
3.4
2.2
0.0
0.1
0.6
0.0
-
0.0
22.9
3.5
2.2
0.0
0.1
100.0
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
AUDIT COMMITTEE ACTIVITY REPORT
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AUDIT COMMITTEE ACTIVITY REPORT FOR THE YEAR 2024
Purpose
1.
In
accordance
with
the
Law
4449/2017
as
amended,
the
Audit
Committee
(AC)
of
Eurobank
Ergasias
Services
and
Holdings S.A.
(Eurobank
Holdings or
HoldCo or
Company) should
submit an annual
report to
the Shareholders’
Annual
General
Meeting on the issues dealt
with by the
AC during the
previous year,
also including therein
a description of the
sustainability policy followed
by the entity.
2.
The current
2024 AC Activity Report of Eurobank
Holdings which is also part of the
2024 Annual Financial Report, refers
to the AC activity during
2024 and the issues addressed.
In addition, it
describes Eurobank Holdings’ sustainability policy.
3.
No deviations from the
AC’s Terms
of Reference (ToR)
have been identified.
AC Composition / Membership
4.
It is
noted that
in line
with the
provisions
of article
44 of
law 4449/2017,
as in
force,
and further
to the
decision of
the
HoldCo’s Annual General Meeting of Shareholders as of 23.07.2024 regarding the recomposition of the Audit Committee
and more specifically regarding its type, composition and term of
office; and the BoD’s decision of 23.07.2024
regarding
the
membership
of
the
AC,
following
the
relevant
recommendations
by
the
Nomination
and
Corporate
Governance
Committee (NomCo)
of 28.05.2024
and 26.06.2024,
the AC
decided on
its constitution
and on
the
appointment of
its
Chairman.
5.
Following
the
above,
the
AC
consists exclusively
of BoD
members,
five
(5) in
total,
all of
which are
independent non-
executive Directors, according to the provisions of article 9 of L. 4706/2020. In particular, the
AC consists of the following
members: 1.
Burkhard Eckes
(Chairperson of the
Audit Committee, independent non-executive
BoD member), 2.
Jawaid
Mirza (Vice
-Chairperson
of the
Audit Committee,
independent non-executive
BoD member),
3.
Irene
Rouvitha-Panou
(Audit
Committee
member,
independent
non-executive
BoD
member),
4.
Rajeev
Kakar
(Audit
Committee
member,
independent
non-executive
BoD
member),
and
5.
Alice
Gregoriadi
(Audit
Committee
member,
independent
non-
executive BoD member).
6.
All AC
members
have
sufficient knowledge
in the
field of
HoldCo
activities and
the
necessary
skills and
experience
to
carry out their duties and meet the requirement of established knowledge and experience in auditing
and/or accounting.
7.
Information
regarding
current
AC
composition
and
short
biographical
details
of
its
members
may
be
found
at
the
HoldCo’s website (www.eurobankholdings.gr).
Meetings Held During the Period
& Attendance
8.
During 2024, the Audit Committee held fifteen (15) meetings, while during
2023, the Audit Committee held seventeen (17)
meetings, including four (4) meetings
by circulation.
9.
The
average
ratio
of
attendance
at
the
meetings
by
the
AC
members
stood
at
97%
(2023:
100%).
The
AC
members
provided proxies for
all missed AC meetings, they were
eligible to attend.
10.
The quarterly
meetings were
attended in person and
the rest were
held via conference
calls. This practice
is allowed by
the AC ToR
and is consistent across all HoldCo’s
BoD Committees.
11.
The submissions for
the AC meetings have
become available to all BoD members through
the Diligent platform.
12.
The
BoD Chair
has regularly
attended the
AC meetings.
In addition,
all meetings
were
attended by
the
Internal Audit
(IA),
while
the
General
Manager
of
Group
Compliance
was attending
the
meetings
depending
on
the
subject
under
discussion.
13.
The
External
Auditor of
2023
and 2024
financial statements
(i.e.
KPMG) has
been
invited and
attended
meetings
as
required.
14.
The
AC
Chair updated
the
Board
members,
at the
quarterly meetings
of the
Board,
on the
material
matters
covered
during the AC meetings.
15.
In 2024,
the members
of the
AC have
been invited and
participated in
the Board
Risk Committee
(BRC) meetings
and
similarly
the
members
of
the
BRC
have
been
invited
and
participated
in
the
Audit
Committee
meetings
(joint
Audit
Committee and Board Risk Committee meetings) for
the discussion / approval
of items that fall under the
responsibility
of both
Committees.
More
specifically,
at
the
BRC
meetings
that
the
AC
members
have
participated,
among others,
accounting
policies
(including
hedge
accounting
policy),
progress
reports
for
the
Corporate
Sustainability
Report
Directive (CSRD) Program Implementation, various risks, (including
non-financial risks, climate
related and environmental
related risks) and the Environmental
and Social Governance
(ESG) Strategy have been discussed.
16.
The AC Chair had regular
private meetings with the Head of Internal
Audit, Head of Group Compliance and Group CFO
as well as the External Auditors.
17.
The AC Chair informed
the AC on his meeting with the
JST.
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
AUDIT COMMITTEE ACTIVITY REPORT
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Highlights of Issues of Importance during 2024
Internal Controls System and Risk Management
18.
The AC,
in accordance with
its Terms
of Reference,
reviews the
adequacy of the
Internal Control
and Risk Management
systems and the compliance with rules and regulations
of the monitoring process.
19.
In the context of the Independent Evaluation
of the System of Internal Controls:
●
During 1Q 2024
AC meeting,
the AC
discussed and further
submitted to the
Board Risk
Committee (BRC)
and
BoD for
acknowledgement,
the
independent triennial
Evaluation
of the
System of
Internal
Controls
(SIC) per
BoG Act
2577/9.3.2006
conducted by
Grant
Thornton
(Independent
Evaluation).
The
Independent Evaluation
along with AC’s assessment on the
evaluation were
submitted to Bank of Greece (BoG) as required.
It is
noted that
no findings of
High significance
were
identified during the
assessment, that
would fall
in the
category “Key
Findings” to be reported to the BoG.
●
Moreover,
at the same
AC meeting, the
AC discussed the
additional work performed
by Grant Thornton,
in the
context of
the
evaluation
of the
adequacy of
the
Internal Control
System (ICS),
following
the identification
of
the
need to
assess the
regulatory
compliance risk
management, in
the
context of
a) clarity
of responsibilities
between
different
Bank Units
within the
3 Lines
of Defense
Model and
b) the
consistency of
governance
and
aggregation of regulatory
compliance risk at the Board of
Directors level.
It is noted that the expanded
assessment did not reveal
any recommendations for
improvement.
20.
Further to the
above, throughout
the year 2024:
●
the AC Members
received update by
IA and Compliance and other
Bank Units as required, covering
matters of
the System of Internal Controls,
Risk Management, Compliance with rules and regulations
and legal issues.
●
significant weaknesses
in internal controls
and the progress
of actions taken
to address them,
were presented
in the Internal Audit
Activity Report and
several pending issues (including External
Auditors’ Management Letter)
were discussed with Management
and the AC ensured
that the time plans and deadlines
will be followed
up.
●
the
AC
acknowledged
the
annual
Internal
Audit
Evaluation
Report
of
the
System
of
Internal
Controls,
a
requirement
of the
Bank of Greece
Act 2577/9.3.2006.
The said
report along
with the
AC’s own
assessment of
the evaluation was
further submitted to the
BoD and subsequently to BoG in June 2024.
●
the AC reviewed
and submitted to the BoD for approval
the revised Related
Party Transactions
Policy.
●
in accordance with
the provisions
of Law 2533/1997,
the AC reviewed
reports on substantial stock transactions
performed
by the Company’s Directors and General
Managers in listed securities and notified the Board.
Internal Audit (IA)
21.
The Internal
Audit (IA) function of
HoldCo is independent (Internal
Audit has a functional
reporting line to the
AC and a
dotted
reporting
line
for
administrative
matters
to
the
CEO),
adequately
organized,
has
unrestricted
access
to
any
pertinent information and operates efficiently and effectively in compliance
with the Standards of
the Institute of
Internal
Auditors.
22.
During 2024, the AC:
●
received confirmation from
the Chief Internal Auditor (CIA) regarding
IA’s independence
for 2023.
●
discussed the performance
of the IA Annual Plan for 2023.
●
Received information
on the IA Medium term plan 2024-2026.
●
approved
and further
submitted to the
BoD for
information
the 2025
IA Annual Plan for
and the
3-year Audit
Plan (2025-2027).
●
monitored the progress
of the IA Audit Plan for 2024 through
the Activity Reports.
●
at the Quarterly AC
meetings, discussed the key
highlights of the IA Activity Reports (including the follow
-up of
the external auditors’ Management
Letter points).
●
Discussed the progress
of the actions for
the resolution
of IA findings.
●
Carried out the assessment
of the Internal Auditor’s performance
for 2023.
Compliance
23.
The
Compliance of
HoldCo is
a permanent
and independent
function (the
Head of
Compliance reports
functionally
to
the AC
and for
administrative
purposes to the
CEO of Holdings)
adequately organized,
has unrestricted
access to
any
pertinent information
and operates efficiently
and effectively.
24.
During 2024, the AC:
●
reviewed
and approved the
Compliance Mandate.
●
approved and further
submitted to the BoD for information
the 2025 Compliance Annual Plan.
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
AUDIT COMMITTEE ACTIVITY REPORT
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●
at the
Quarterly
AC
meetings,
discussed the
key
highlights of
the
Compliance
Activity Reports,
including the
progress of the 2024
Compliance Annual Plan.
●
discussed and further submitted
to the BoD for discussion the
Ethics Hotline Reports received
during 2023.
●
reviewed
and
depending
on the
case,
ratified,
approved
or
approved
and
further
submitted to
the
BoD
for
approval /
information
a) the
revised MiFID
II Product
Governance
Policy,
b) the
Group Anti-trust
Compliance
Policy,
c) the
revised Policy
for Reporting
Illegal or Unethical
Conduct or Violations
of European
Union Law,
d)
the revised
Anti-Bribery and Corruption
Policy,
e) the Policy
for the
Prevention
and Detection of Market
Abuse,
f) the
Insider
Dealing Guideline,
g) the
revised
Conflict of
Interest
Policy,
h) the
revised
Code of
Conduct and
Ethics.
●
In
the
context
of
the
Policy
for
Reporting
Illegal
or
Unethical
Conduct
or
Violations
of
European
Union
Law
(mentioned above), approved and further
submitted to the BoD
for approval the Report Receiving & Monitoring
Officer (RRMO) and the
assistant RRMO.
●
In line with the BoG requirements, received
the Annual Group Compliance Report as per BoG
Act 2577/9.3.2006
(including
MiFID
report)
for
acknowledgement.
The
said
report
along with
the
AC’s
assessment
was
further
submitted to the BoD and subsequently to the BoG in June
2023.
●
Carried out the assessment
of the performance
of the Head of Compliance for
2023.
Financial reporting
25.
The
AC,
in
accordance
with
its
Terms
of
Reference,
monitors
the
financial
reporting
process
and
submits
recommendations
and
proposals
to
ensure
its
integrity.
In
addition,
it
supervises
and
assesses
whether
the
internal
controls
related
to financial
reporting are
adequate and
effective
and that
these
controls
are adjusted
to reflect
any
major changes in the risk profile of Holdings.
26.
During the AC meetings in 2024:
●
the
AC,
among
others,
reviewed
and
approved
the
quarterly
results,
semi-annual
and
annual
Accounts
and
Financial Statements, Annual General Meeting (AGM) matters and matters of the External auditors. In addition,
the AC reviewed
and proposed to the BoD for
approval the
Consolidated Pillar III report.
●
Group
Finance
made
presentations
on
issues
such
as
accounting
policies,
critical
accounting
estimates,
significant
one-off
items
impacting
the
Financial
Statements,
major
variations
between
periods,
important
disclosures,
significant issues with tax authorities, as well as Group
Control issues.
●
Group Legal Services presented
the Outstanding Significant Litigations and
Provisions.
●
IA performed
a high level
review of
material submitted
to the
AC for
the clearance
of the
financial results and
reported significant items to the AC
Chairman for his attention.
●
with regards
to the
monitoring of
the
Actual
vs Budget
Report, the
AC
received
quarterly
updates by
Group
Finance which were
subsequently submitted to the BoD for discussion.
●
The
AC
discussed
Group
Finance’s
planned
steps
to
improve
its
reporting
process
(increased
international
subsidiaries oversight) as requested
by the SSM.
External Auditors
27.
The
AC, in
accordance
with its
Terms
of Reference,
is responsible
for
the
selection, performance
and independence
of
the External
Auditors, KPMG. In addition,
the AC
reviews the
scope of audit work
and audit approach
and assesses the
process for
identifying and responding to key audit and internal control
risks.
28.
During the AC meetings in 2024:
●
KPMG presented its 2024
Audit Plan to the AC.
The AC
has also, in line with
its ToR,
reviewed
the Engagement
letter for the
2024 Statutory Audit of the Company.
●
KPMG presented and discussed with the
AC members a summary of audit work
done, major findings, including
a summary of unadjusted differences,
and other issues of importance.
29.
The
AC
has
received
the
2023
KPMG
Management
Letter
(ML)
and
has
discussed
the
issues
raised
with
KPMG
and
Management.
30.
The annual assessment of the External Auditors for
the 2023 audit was discussed by the AC members and Management.
At the
same AC
meeting, the
AC decided
to propose
to the
BoD for
approval and
subsequent recommendation
to the
Annual General Meeting of
shareholders for approval, the reappointment of KPMG as
statutory auditors for the separate
and consolidated Financial Statements of Eurobank
Holdings for the
financial year of 2024.
31.
The AC has discussed and approved
the Global Group
Audit and assurance Fees
of 2024.
32.
The AC
has received
the External
Auditors’ Independence written
confirmation, while it
monitored the
independence of
the
External
Auditors
through
the
Auditors
independence
monitoring
tool
submitted
quarterly
by
Group
Finance,
depicting
the
value
of
non-audit
services
provided
as
compared
to
the
limits
set
by
the
Group
External
Auditor’s
Independence Policy that was
also updated during 2024.
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
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33.
In
line
with
the
Group
External
Auditor’s
Independence
Policy,
the
AC
in
2024
reviewed
and
approved
all
non-audit
services including the audit assurance related work, ensuring that the independence limits are complied with. Among the
non-audit services
reviewed
and approved,
the
following
services,
exceeding €50k,
were
included: a)
Fairfax
Financial
Holdings (FFH) annual requirement on the reconciliation of IFRS
consolidated Total Equity and Profit & Loss to
U.S. GAAP,
for
the
year
ending
31.12.2023,
b)
Engagement
of
KPMG
by
Eurobank
Cyprus
for
advisory
services
to
support
with
transitioning
to the
Capital Requirements
Regulation (CRR)
III framework
c) engagement
of KPMG
Cyprus by
Hellenic
Bank for the
provision of
advisory services
for the
development of a
decarbonization strategy
and additional scope for
Climate Environmental
(CE) Risks
Action Plan
and d)
engagement of
KPMG for
Sales training
to the
Eurobank’s
Retail
Banking Networks’ employees.
34.
The AC reviewed
the services assigned to the
Big Audit Firms in 2023 vs 2024.
35.
The AC met
with the External Auditors (with and without Management’s
presence) to discuss issues related to the audit,
in addition to any significant issues related to the
External Auditors’ audit plan.
36.
The AC reviewed
the External Auditor’s Report and the Report on Key
Audit Issues.
37.
The AC reviewed
and approved the
updated External Auditors Tendering
Policy and Procedure.
38.
The AC reviewed
the services assigned to the
Big Audit Firms in 2023 vs 2024.
39.
The AC reviewed
a) the eligibility of audit firms for the statutory audit vs IT delivery sourcing for strategic IT projects
and
b) the 5-yr rolling
plan (for years 2025-2029) on the eligibility of audit firms for
the statutory audit of Eurobank Ergasias
Services
and Holdings
Group and
the
potential conflict
of interest
situations with
eligible audit
firms, based
on Greek
Law
4449/17
and
EU
Reg
537/14,
considering
also
requirements
of
the
International
Code
of
Ethics
for
Professional
Accountants of the International
Ethics Standards Board for
Accountants (IESBA).
40.
The
AC initiated
the External
Auditor’s tendering
process
for
the Group
statutory audit
of 2027.
in relation
to this,
the
AC,
during
the
internal
independence
assessment
process,
a)
approved
External
Auditor's
tendering
time-plan,
b)
reviewed
and approved
the eligible
audit firms, the
eligibility criteria as
well as information
for each
of the short-listed
eligible audit firms supporting their
eligibility and the initial letter
Request for Independence
(RfI) as sent to the eligible
audit
firms
and
c)
reviewed
and
approved
statements
of
independence
of
the
two
(2)
eligible
audit
firms
and
the
“Request for Proposal
[RfP]” (invitation to tender) as sent to the short-listed eligible
audit firms.
41.
The
AC
discussed
with
the
external
auditor
the
accounting
process
for
the
integration
with
Hellenic
Bank
(step
up
acquisition accounting).
42.
The AC discussed the
provision of limited assurance
review by the
external auditors for the
CSRD reporting.
AC’s Evaluation
43.
The
AC’s
performance
is
evaluated
annually
according
to
the
provisions
of
HoldCo’s
Board
and
Board
Committees
Evaluation
Policy.
According
to
the
AC’s
2024
self-evaluation,
the
AC
members
expressed
satisfaction
with
the
committee’s structure,
effectiveness
and leadership.
They
commented on
the
AC's efficient
use of
time and
scheduling
and the
well-structuring
meetings, ensuring
critical issues
are addressed
efficiently and
effectively.
The
Chairperson of
the AC was praised for his
ability to ensure continuity
and strong guidance during the
transition and to encourage critical
discussions and inclusive participation.
44.
However,
the evaluation
identified areas
for
improvement,
notably the
need for
better collaboration
between AC
and
BRC
on
overlapping
responsibilities
and
enhanced
oversight
of
external
auditors.
There
were
also
calls
for
better
alignment
with
evolving
regulatory
requirements
and enhanced
oversight
of subsidiaries
and emerging
risks
such
as
cybersecurity and compliance.
Other AC Matters
45.
The AC has reviewed
and proposed to the BoD for
approval its Terms
of Reference.
46.
The AC
has approved
and notified the
Board for
further
submission to the
Annual General
Meeting, the annual
Activity
Report for 2023.
47.
The AC has discussed its annual
Plan for 2025.
Sustainability Overview
48.
Eurobank
Holdings
supports
the
transition
towards
a
sustainable
economy
and
considers
sustainability
and
climate
change
as
an
opportunity.
A
key
strategic
objective
is
to adapt
its
business
and
operation
in
a
way
that
addresses
climate change challenges, accommodates
social needs within its
business model and safeguards
prudent governance
for
itself and its
counterparties,
in accordance
with supervisory
initiatives,
and following
international
standards/ best
practice. Adopting
a strategic
approach for
the management
of risks and the
identification of opportunities
in relation
to sustainability and climate change, the Bank
follows, and accelerates
where possible, a detailed roadmap
prioritizing
actions for
the
effective
management of
sustainability and
climate-related
& environmental
(CR&E) risks
in alignment
with
the
supervisory
expectations
included
at
the
ECB
Guide
on
Climate-Related
and
Environmental
Risks.
The
IA
is
informed
and
follows
up
on
the
Climate
Risk
Roadmap,
which
has
been
agreed
with
the
supervisor.
The
respective
developments are considered in IA
risk-based audit approach. In
this respect IA
issued in 2024
one consulting
assignment
EUROBANK ERGASIAS SERVICES AND HOLDINGS S.A.
AUDIT COMMITTEE ACTIVITY REPORT
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report
(Pillar
III
disclosures
on
ESG
risks)
and
one
assurance
assignment
report
(Review
of
C&E
Risk
Management
Framework),
for which the AC
was also informed through
IA activity report.
49.
Eurobank
Holdings,
during
2024,
has
updated
its
Sustainability
Governance
structure
by
introducing
and
defining
specific
roles
and responsibilities
to further
support the
roll-out
of the
Sustainability
Strategy
and the
integration
of
Sustainability risks, through
the involvement
of various key
stakeholders,
embedding regulatory
guidelines and market
practices within the 3 Lines of Defense. To this end, Eurobank
Holdings in 2024 appointed its Group Senior Sustainability
Officer
(GSSO)
to lead
and
coordinate
sustainability
initiatives
for
both
operational
and
financed
impact,
reporting
directly to the
senior management and Board
for sustainability matters.
GSSO manages the Group
Sustainability Unit,
co-manages, as
a secondary
reporting line,
the
Group
Sustainability Risk
along with
the
Senior Risk
Executive
Officer
(primary reporting line). The AC for the year 2024, through the
monthly joined meetings with the BRC, has been informed
(and contributed) by the GSSO and/or the Senior Risk Executive Officer and/or the Head of the Group Sustainability Risk
for a significant number of topics as stated below:
-
Monthly monitoring of CSRD reporting project progress
(4 sessions during 2024)
-
Semi-annual update by the responsible BoD member
for climate-related
and environmental risks
-
Hellenic Bank’s status on management of sustainability and climate-related
& environmental (CR&E) risks
-
CR&E Risks' Materiality Assessment Key Updates
-
ERB Group Climate Risk Roadmap Progress
Update
-
Key areas of the Group
Climate Risk Stress Test
Framework
Update
………………….
Burkhard Eckes
AC Chairman
Athens, March 2025
CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2024
8 Othonos Str, Athens
105 57,
Greece
eurobankholdings.gr,
Tel.: (+30) 214 40 61000
General Commercial
Registry No: 000223001000
.
.
Index to the Consolidated Financial Statements ........................................................................................................................
Page
Consolidated Balance Sheet ................................................................................................................................
.....................................
1
Consolidated Income Statement ................................................................................................
..............................................................
2
Consolidated Statement of Comprehensive
Income ................................................................................................................................
3
Consolidated Statement of Changes in Equity ..........................................................................................................................................
4
Consolidated Cash Flow Statement .......................................................................................................................................................... 5
Notes to the Consolidated Financial Statements
1.
General information ................................................................................................
........................................................................
6
2.
Basis of preparation and material accounting
policies
.................................................................................................................... 6
2.1
Basis of preparation .........................................................................................................................................................................
6
2.2
Material accounting policies ..........................................................................................................................................................
10
3.
Critical accounting estimates and judgments
in applying accounting policies ..............................................................................
40
4.
Capital Management ................................................................................................................................
.....................................
49
5.
Financial risk management and fair value ................................................................................................
.....................................
52
5.2.1 Credit Risk ......................................................................................................................................................................................
54
5.2.2 Market risk
................................................................................................................................................................
.....................
88
5.2.3 Liquidity risk
................................................................................................................................................................
...................
93
5.2.4 Sustainability risks ................................................................
......................................................................................................... 96
5.3
Fair value of financial assets and liabilities ....................................................................................................................................
97
6.
Net interest income ..................................................................................................................................................................... 101
7.
Net banking fee and commission income ....................................................................................................................................
102
8.
Income from non banking services ..............................................................................................................................................
103
9.
Net trading income and gains less losses from investment
securities ........................................................................................ 103
10.
Other income/ (expenses) ........................................................................................................................................................... 104
11.
Operating expenses ..................................................................................................................................................................... 105
12.
Other impairments, risk provisions and restructuring costs ........................................................................................................
106
13.
Income tax ................................................................................................................................................................................... 106
14.
Earnings per share ................................................................................................................................................................
.......
110
15.
Cash and balances with central banks .........................................................................................................................................
111
16.
Cash and cash equivalents and other information
on cash flow statement
................................................................................
112
17.
Due from credit institutions
......................................................................................................................................................... 112
18.
Securities held for trading................................................................
............................................................................................
113
19.
Derivative financial instruments and hedge
accounting.............................................................................................................. 113
20.
Loans and advances to customers ............................................................................................................................................... 117
21.
Impairment allowance for loans and advances to
customers .....................................................................................................
121
22.
Investment securities
................................................................................................................................................................
...
123
.
.
23.
Group composition ......................................................................................................................................................................
126
23.1
Shares in subsidiaries
................................................................................................................................................................
...
126
23.2
Consolidation of Hellenic Bank group
.......................................................................................................................................... 129
23.3
Initiation of the merger process between Eurobank
Ergasias Services and Holdings S.A. and Eurobank S.A. ............................
133
24.
Investments in associates and joint
ventures
.............................................................................................................................. 134
25.
Structured Entities .......................................................................................................................................................................
136
26.
Property and equipment ................................................................................................
.............................................................
139
27.
Investment property ....................................................................................................................................................................
140
28.
Intangible assets .......................................................................................................................................................................... 142
29.
Other assets
................................................................................................................................................................
.................
143
30.
Disposal groups classified as held for sale and discontinued
operations ....................................................................................
143
31.
Due to central banks ....................................................................................................................................................................
144
32.
Due to credit institutions .............................................................................................................................................................
145
33.
Due to customers
................................................................................................................................................................
.........
145
34.
Debt securities in issue ................................................................................................................................................................
145
35.
Other liabilities ................................................................................................................................
............................................
147
36.
Insurance contract (assets)/liabilities and reinsurance
contract assets ......................................................................................
148
37.
Standard legal staff retirement
indemnity obligations (SLSRI) and termination benefits ...........................................................
150
38.
Share capital, share premium and treasury shares ................................
.....................................................................................
151
39.
Reserves and retained earnings
................................................................................................................................................... 153
40.
Share options
................................................................................................................................................................
...............
154
41.
Transfers
of financial assets
......................................................................................................................................................... 155
42.
Leases ................................................................................................................................................................
..........................
156
43.
Contingent liabilities and other commitments ............................................................................................................................ 157
44.
Operating segment information .................................................................................................................................................. 159
45.
Post balance sheet events ................................................................................................................................
...........................
164
46.
Related parties
................................................................................................................................................................
.............
164
47.
External Auditors ................................................................................................................................................................
.........
165
48.
Board of Directors
................................................................................................................................................................
........
166
APPENDIX – Disclosures under Law 4261/2014 ................................................................
...................................................................
167
Consolidated Balance Sheet
.
1
|
Page
31 December 2024 Consolidated Financial Statements
31 December
2024
2023
Note
€ million
€ million
ASSETS
Cash and balances with central banks
15
16,131
10,943
Due from credit institutions
17
2,196
2,354
Securities held for trading
18
285
379
Derivative financial instruments
19
838
881
Loans and advances to customers
20
50,953
41,545
Investment securities
22
22,184
14,710
Investments in associates and joint ventures
24
203
541
Property and equipment
26
975
773
Investment property
27
1,404
1,357
Intangible assets
28
415
334
Deferred tax assets
13
3,780
3,991
Other assets
29
1,695
1,767
Assets of disposal groups classified as held for sale
30
91
206
Total assets
101,150
79,781
LIABILITIES
Due to central banks
31
-
3,771
Due to credit institutions
32
2,800
3,078
Derivative financial instruments
19
1,120
1,450
Due to customers
33
78,593
57,442
Debt securities in issue
34
7,056
4,756
Other liabilities
35
2,682
1,385
Total liabilities
92,251
71,882
EQUITY
Share capital
38
809
818
Share premium
38
1,145
1,161
Reserves and retained earnings
39
6,945
5,920
Total equity
8,899
7,899
Total equity and liabilities
101,150
79,781
Notes on pages
6
to
166
form an integral part of these consolidated financial statements.
Consolidated Income Statement
.
2
|
Page
31 December 2024 Consolidated Financial Statements
Year ended 31 December
2024
2023
Note
€ million
€ million
Interest income
5,096
4,454
Interest expense
(2,589)
(2,280)
Net interest income
6
2,507
2,174
Banking fee and commission income
705
570
Banking fee and commission expense
(144)
(123)
Net banking fee and commission income
7
561
447
Income from non banking services
8
105
97
Net trading income/(loss)
9
94
71
Gains less losses from investment securities
9
13
57
Other income/(expenses)
10
61
68
Operating income
3,341
2,914
Operating expenses
11
(1,099)
(915)
Profit from operations before impairments,
risk provisions and restructuring costs
2,242
1,999
Impairment losses relating to loans and
advances to customers
21
(303)
(412)
Other impairments, risk provisions and related costs
12
(60)
(96)
Restructuring costs
12
(168)
(37)
Share of results of associates and joint ventures
24
161
88
Profit before tax from continuing operations
1,872
1,542
Income tax
13
(361)
(261)
Net profit from continuing operations
1,511
1,281
Net loss from discontinued operations
30
(7)
(153)
Net profit
1,504
1,128
Net profit/(loss) attributable to non controlling interests
56
(12)
Net profit attributable to shareholders
1,448
1,140
€
€
Earnings per share
-Basic earnings per share
14
0.40
0.31
-Diluted earnings per share
14
0.39
0.31
Earnings per share from continuing operations
-Basic and diluted earnings per share
14
0.40
0.34
Notes on pages
6
to
166
form an integral part of these consolidated financial statements.
Consolidated Statement of Comprehensive Income
.
3
|
Page
31 December 2024 Consolidated Financial Statements
Year ended 31 December
2024
2023
€ million
€ million
Net profit
1,504
1,128
Other comprehensive income:
Items that are or may be reclassified subsequently to
profit or loss:
Cash flow hedges
- changes in fair value, net of tax
21
19
- transfer to net profit, net of tax
(22)
(1)
(21)
(2)
Debt securities at FVOCI
- changes in fair value, net of tax (note 22)
58
188
- transfer to net profit, net of tax (note 22)
(36)
22
(104)
84
Foreign currency translation
- foreign operations' translation differences
0
1
- transfer to net profit on the sale/liquidation of
foreign subsidiaries (note 23.1)
-
0
122
123
Associates and joint ventures
- changes in the share of other comprehensive
income, net of tax (note 24)
(9)
(9)
(4)
(4)
12
201
Items that will not be reclassified to profit or loss:
- Gains/(losses) from equity securities at
FVOCI, net of tax
(8)
18
- Actuarial gains/(losses) on post employment
benefit obligations, net of tax
(2)
(2)
- Changes in the share of other comprehensive income of
associates and Joint ventures, net of tax
1
0
(9)
16
Other comprehensive income
3
217
Total comprehensive
income attributable to:
Shareholders
- from continuing operations
1,458
1,371
- from discontinued operations
(7)
(15)
Non controlling interests
- from continuing operations
56
0
- from discontinued operations
-
(11)
1,507
1,345
Notes on pages
6
to
166
form an integral part of these consolidated financial statements
Consolidated Statement of Changes in Equity
.
4
|
Page
31 December 2024 Consolidated Financial Statements
Share
capital
Share
premium
Reserves and
retained
earnings
Non
controlling
interests
Total
€ million
€ million
€ million
€ million
€ million
Balance at 1 January 2023
816
1,161
4,660
95
6,732
Net profit/(loss)
-
-
1,140
(12)
1,128
Other comprehensive income
-
-
216
1
217
Total comprehensive income for
the
year ended 31 December 2023
-
-
1,356
(11)
1,345
Changes in participating interest in subsidiaries
-
-
-
(83)
(83)
Share options plan
1
0
7
-
8
Purchase/sale of treasury shares
-
-
(100)
-
(100)
Other
-
-
(3)
-
(3)
1
0
(96)
(83)
(178)
Balance at 31 December 2023⁽¹⁾
818
1,161
5,920
0
7,899
Balance at 1 January 2024
818
1,161
5,920
0
7,899
Net profit
-
-
1,448
56
1,504
Other comprehensive income
-
-
3
0
3
Total comprehensive income for
the year ended 31 December 2024
-
-
1,451
56
1,507
Dividends (note 39)
-
-
(342)
-
(342)
Consolidation of Hellenic Bank group (note 23.2)
-
-
-
696
696
Changes in participating interest/consolidation percentage in
subsidiaries
-
-
(134)
(753)
(887)
Share options plan (note 40)
3
0
18
-
20
Purchase/sale and cancellation of treasury
shares (notes 38 and 39)
(12)
(16)
33
-
5
(9)
(16)
(426)
(56)
(507)
Balance at 31 December 2024⁽¹⁾
809
1,145
6,945
0
8,899
Note 38
Note 38
Note 39
(1)
The changes in equity do not sum to the totals provided due to rounding.
Notes on pages
6
to
166
form an integral part of these consolidated financial statements.
Consolidated
Cash Flow Statement
.
5
|
Page
31 December 2024 Consolidated Financial Statements
Year ended 31 December
2024
2023
Note
€ million
€ million
Cash flows from continuing operating activities
Profit before income tax from continuing operations
1,872
1,542
Adjustments for :
Impairment losses relating to loans and advances to customers
21
303
412
Other impairments, risk provisions and restructuring costs
12
228
133
Depreciation and amortisation
11
135
120
Other (income)/losses οn investment securities
16
(123)
(70)
Valuation of investment property
10
(17)
(6)
Other adjustments
16
(253)
(153)
2,145
1,978
Changes in operating assets and liabilities
Net (increase)/decrease in cash and balances with central banks
(344)
104
Net (increase)/decrease in securities held for trading
125
(260)
Net (increase)/decrease in due from credit institutions
556
(447)
Net (increase)/decrease in loans and advances to customers
(3,476)
(1,517)
Net (increase)/decrease in other assets
(18)
158
Net (increase)/decrease in derivative financial instruments
(290)
(62)
Net increase/(decrease) in due to central banks and
credit institutions
(4,140)
(3,637)
Net increase/(decrease) in due to customers
6,166
1,730
Net increase/(decrease) in other liabilities
(286)
(313)
(1,707)
(4,244)
Income tax paid
(142)
(64)
Net cash from/(used in) continuing operating activities
296
(2,330)
Cash flows from continuing investing activities
Acquisition of fixed and intangible assets
26,27,28
(197)
(140)
Proceeds from sale of fixed and intangible assets
26,27
42
33
(Purchases)/sales and redemptions of investment securities
(1,807)
(1,287)
Acquisition of subsidiaries, net of cash acquired
23
5,500
(440)
Acquisition of holdings in associates and joint ventures, participations in capital increases
24
(284)
(73)
Disposal of subsidiaries, net of cash disposed
10,23,30
11
(425)
Disposal/liquidation of holdings in associates and joint ventures
24
-
3
Dividends from investment securities, associates and
joint ventures
16,24
20
15
Net cash from/(used in) continuing investing activities
3,285
(2,314)
Cash flows from continuing financing activities
(Repayments)/proceeds from debt securities in issue
16
1,860
1,048
Repayment of lease liabilities
42
(38)
(40)
Τransactions with non-controlling interests
(6)
-
Dividends Paid
(342)
-
(Purchase)/sale of treasury shares and exercise of share options
38
8
(99)
Net cash from/(used in) continuing financing activities
1,482
909
Net increase/(decrease) in cash and cash equivalents from continuing operations
5,063
(3,735)
Net cash flows from discontinued operating activities
-
148
Net cash flows from discontinued investing activities
-
44
Net cash flows from discontinued financing activities
-
(1)
Effect of exchange rate changes on cash and cash equivalents
-
1
Net increase/(decrease) in cash and cash equivalents from discontinued operations
-
192
Cash and cash equivalents at beginning of year
16
10,845
14,388
Cash and cash equivalents at end of year
16
15,908
10,845
Notes on pages
6
to
166
form an integral part of these consolidated financial statements.
Notes to the Consolidated Financial Statements
.
6
|
Page
31 December 2024 Consolidated Financial Statements
1.
General information
Eurobank Ergasias Services and Holdings S.A.
(the Company
or Eurobank
Holdings), which
is the
parent
company of
Eurobank S.A.
(the
Bank)
and
its
subsidiaries
(the
Group),
consisting
mainly
of
Eurobank
S.A.
Group,
are active in retail, corporate and private
banking, asset management, treasury, capital markets and other services (note 44).
The Group operates mainly in Greece and in
Bulgaria, Cyprus and Luxembourg.
The Company is incorporated in Greece
,
with
its registered
office at
8 Othonos Street, Athens
105 57
and its shares are listed on the Athens
Stock Exchange.
These consolidated financial statements, which include the Appendix, were approved by the Board of
Directors on 7 March 2025. The
Independent Auditor’s Report of the Financial Statements
is included in the section E.I of the Annual Financial Report.
The website
address,
where the
annual
financial statements
of the
consolidated
non-listed
Company’s
subsidiaries are
uploaded,
along with the independent Auditors’ reports and the Board
of Directors’ Reports for these entities
is: www.eurobankholdings.gr.
2.
Basis of preparation and material accounting policies
The consolidated financial statements of the Group have been prepared on a
going concern basis and in
accordance with the material
accounting policies set out below:
2.1
Basis of preparation
The
consolidated
financial
statements
of
the
Group
have
been
prepared
in
accordance
with
International
Financial
Reporting
Standards
(IFRS) issued
by the
International
Accounting
Standards
Board
(IASB), as
endorsed by
the European
Union (EU),
and in
particular with those standards and interpretations, issued and
effective or issued and early adopted as
at the time of
preparing these
consolidated financial statements.
The consolidated
financial statements
are prepared
under the
historical
cost basis
except
for the
financial assets
measured at
fair
value through
other comprehensive
income, financial
assets and
financial liabilities
(including derivative
instruments) measured
at
fair-value-through-profit-or-loss
and investment property measured
at fair value.
The accounting policies for
the preparation of
the consolidated financial
statements of the
Group have been
consistently applied to
the years
2024 and
2023, after
taking into
account the
amendments in
IFRSs as
described in
section 2.1.1
(a) “New
and amended
standards
adopted
by the
Group
as of
1 January
2024”.
In addition,
where necessary,
comparative
figures
have
been adjusted
to
conform to changes in presentation
in the current year.
The preparation of financial
statements in accordance with IFRS
requires the use of
estimates and judgements that affect the
reported
amounts of
assets and liabilities
and disclosure
of contingent
liabilities at the
date of the
consolidated financial
statements,
as well
as
the
reported
amounts
of
revenues
and
expenses
during
the
reporting
period.
Although
these
estimates
are
based
on
management's best knowledge of current events
and conditions, actual results ultimately may differ
from those estimates.
The Group’s presentation
currency is the Euro (€) being the functional currency of the parent company. Except
as indicated, financial
information presented in Euro
has been rounded to the nearest million. The figures
presented in the notes may not sum precisely to
the totals provided due to rounding.
Going concern considerations
The annual financial
statements have been prepared on
a going
concern basis, as
the Board of
the Directors considered as
appropriate,
taking into consideration the following:
In 2024, despite the
challenging international environment,
the macroeconomic backdrop
was supportive in the
Group’s three
core
markets.
In particular,
the economies
of Greece,
Bulgaria
and Cyprus
remained in
expansionary territory,
overperforming
most
of
their European
Union (EU)
peers. According
to the
Hellenic Statistical
Authority (ELSTAT)
provisional
data, the
real GDP
of Greece
expanded by 2.3% on an annual basis in the first nine months of 2024 –versus
0.5% in the euro area (Eurostat)–
driven by household
consumption and
the buildup of
inventories.
The average
annual inflation
rate based
on the Harmonized
Index of Consumer
Prices
(HICP) decreased to 3.0% in 2024 from 4.2% in 2023, while the average monthly unemployment rate declined to 10.1% in 2024, from
11.1% in 2023,
dropping to a 15-year
low. In its Autumn Economic
Forecasts (November 2024), the European Commission
(EC) expects
real GDP in
Greece to grow
by 2.1% in 2024
and 2.3% in 2025
(2023: 2.3%). The HICP
growth rate
is expected to
decelerate to
2.4%
in 2025 and the unemployment rate to drop to
9.8%, respectively. On the fiscal front, the EC expects a primary
surplus of 2.9% of GDP
Notes to the Consolidated Financial Statements
.
7
|
Page
31 December 2024 Consolidated Financial Statements
in 2024 and 2025, up from 2.1% of GDP in 2023.
The gross public debt-to-GDP ratio, following a sizeable increase in nominal GDP due
to the combination
of real GDP
growth and
inflation, is expected
to decline to
153.1% in 2024
and 146.8% in
2025, from 163.9%
in
2023.
According to the EC Autumn
Economic Forecasts, real
GDP growth in Bulgaria in 2024
is expected at 2.4%, with
a moderate increase
in 2025 to 2.9% (2023: 1.8%), while the HICP is forecast
to decrease to 2.5% in 2024 and to 2.3% in 2025 (2023: 8.6%). In
Cyprus, the
real GDP growth is forecast at 3.6%
and 2.8% in 2024
and 2025, respectively (2023: 2.5%), while
the HICP is estimated at
2.2% in 2024,
and 2.1% in 2025 (2023: 3.9%).
Growth in Greece as well as in Bulgaria and Cyprus is expected to receive a significant boost from EU-funded investment projects and
reforms. Greece shall receive in
total € 36 billion (€ 18.2 billion in grants and
€ 17.7 billion in loans) up to 2026 through the Recovery
and Resilience Facility (RRF), Next Generation EU (NGEU)’s
largest instrument, out of which € 18.2 billion (€ 8.6 billion in grants and €
9.6 billion
in loans)
had been
disbursed by
the EU
as of
the end
2024. A
further €
40 billion
is due
through EU’s
long-term budget
(MFF), out of which € 20.9 billion is to fund the National Strategic Reference
Frameworks (ESPA
2021–2027).
In 2024, the
Greek government
raised €
9.55 billion from
the international
financial markets
through the
Public Debt Management
Agency (PDMA) by issuing two new
bonds (a 10-year bond at a yield
of 3.478% in January and a 30-year
bond at a yield of 4.241% in
April),
and
re-opening
eleven
past
issues
with
maturities
of
5
and
10
years.
At
the
end
of
2024,
the
cash
reserves
of
the
Greek
government
stood
close
to
€
33
billion.
Following
a
series
of
sovereign
rating
upgrades
in
the
second
half
of
2023,
the
Greek
government’s
long-term
debt
securities were
considered
investment
grade
by
four
out of
the five
Eurosystem-approved
External
Credit Assessment Institutions (DBRS:
BBB(low), positive outlook, Fitch:
BBB-, stable outlook; Scope: BBB,
stable outlook; S&P: BBB-,
positive outlook), and one notch
below investment grade
by the fifth one, Moody’s
(Βa1, positive outlook) as of
31 December 2024.
On monetary policy developments, after
ten rounds of interest rate hikes
in 2022 and
in 2023 and
on the back
of an improved inflation
outlook, the European
Central Bank (ECB)
implemented five interest
rate cuts
from June 2024 to
January 2025, lowering
its deposit
facility rate by 125 basis points in total.
Regarding
the
outlook
for
the
next
12
months,
the
major
macroeconomic
risks
and
uncertainties
in
Greece
and
our
region
are
associated with: (a) the geopolitical tensions caused primarily by the war in Ukraine and the fragile situation
in the Middle East, their
implications regarding
regional and
global stability
and security,
and their repercussions
on the global
and the European
economy,
(b) an interruption or even a reversal of the disinflationary trend observed in the past 24 months and its impact on economic growth,
employment,
public finances,
household
budgets,
firms’
production
costs,
external
trade
and banks’
asset quality,
as
well
as
any
potential social and/or political ramifications this may entail, (c) the timeline of the potential further interest rate cuts by the ECB
and
the Federal
Reserve Bank,
as persistence
on high
rates for
longer may
keep exerting
pressure on
sovereign and
private
borrowing
costs and certain financial institutions’ balance
sheets, but early rate cuts entail
the risk of a rebound in inflation, (d) the prospect
of
Greece’s and
Bulgaria’s
major trade partners,
primarily the euro area,
remaining stagnant or
even facing a temporary
downturn, (e)
the elevated political and economic
uncertainty stemming from the international and
trade policy decisions of
the new administration
in the
United States,
(f) the
persistently
large current
account deficit
that seems
to become
once again
a structural
feature
of the
Greek economy,
(g) the absorption
capacity of the
NGEU and MFF
funds and
the attraction
of new
investments in
the countries
of
presence, especially in
Greece, (h) the effective and
timely implementation of the
reform agenda required to meet the
RRF milestones
and targets and to boost productivity,
competitiveness, and resilience and (i) the exacerbation of natural disasters due to the climate
change and their effect on GDP,
employment, fiscal balance and sustainable development
in the long run.
Materialization of the
above risks would have
potentially adverse effects
on the fiscal planning of the
Greek government, as
it could
decelerate the pace of
expected growth
and on the liquidity,
asset quality,
solvency and profitability of
the Greek banking sector.
In
this context,
the Group’s
Management and
Board are
continuously monitoring
the developments
on the macroeconomic,
financial
and geopolitical
fronts
as well
as the
evolution of
the Group’s
asset quality
and liquidity
KPIs and
have
maintained
a high
level of
readiness, so as to accommodate decisions, initiatives
and policies to protect the Group’s
capital, asset quality and liquidity standing
as well as the fulfilment, to the maximum possible degree, of its strategic and business goals in accordance with the business plan for
2025 - 2027.
In the
year ended
31 December 2024,
the net
profit attributable
to shareholders,
following the
inclusion of
Hellenic Bank group
in
the Company’s consolidated financial statements from the third quarter of 2024, amounted to € 1,448 million (2023:
€ 1,140 million).
The adjusted
net profit,
excluding a)
the €
121 million
restructuring costs
(after tax),
mainly related
to VES
(note 12),
b) the €
99.5
million gain arising
from the acquisition
of an additional
26.28% shareholding of
Hellenic Bank in
June 2024 (note
23.2), c) the €
19
million Bank’s contribution
(after tax) for the Greek state’s
program for school renovations
(note 11), d) the € 11 million impairment
Notes to the Consolidated Financial Statements
.
8
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31 December 2024 Consolidated Financial Statements
release (after
tax)
relating
to the
project
“Leon” (note
21) and
e) the
€ 7
million net
loss from
discontinued
operations
(note
30)
amounted to € 1,484
million (2023: € 1,256 million),
of which € 709 million profit
was related to
the international operations
(2023:
€ 468 million profit). As at 31 December 2024, the Group’s Total
Adequacy Ratio (total CAD) and Common Equity Tier 1 (CET1) ratios,
including the
impact of
the distribution
of cash
dividend to
shareholders
approved
by the
AGM
in July
2024 and
the inclusion
of
Hellenic Bank group
in the Company’s
consolidated financial statements
,
stood at 19.5% (31
December 2023: 19.4%) and
16.8% (31
December
2023:
16.9%)
respectively.
Pro-forma
with
the
dividend
accrual
to
be
distributed
to
shareholders
in
2025
(subject
to
regulatory
approval),
the
completion
of
project
“Solar” as
well
as
the
confirmation
by
ECB,
of
the
significant
risk
transfer
(SRT)
recognition for
the “Leon” loan portfolio
and the project
“Wave VI”,
the total CAD
and CET1 ratios,
as of 31 December
2024, would
be 18.5% and 15.7% respectively (note 4).
With regard
to asset quality,
the Group’s
NPE formation, including
the impact of Hellenic Bank,
was positive by €
222 million during
the year
(fourth
quarter 2024:
€ 47
million positive),
(2023: €
138 million
positive). In
total, the
Group’s
NPE stock
stood
at €
1.5
billion, excluding
the €
0.2 billion
NPE of
Hellenic Bank
covered
by the
Asset Protection
Scheme (APS)
(31 December
2023: €
1.5
billion), driving
the NPE ratio
to 2.9% at
31 December 2024
(31 December 2023:
3.5%). Τhe
NPE coverage
ratio improved
to 88.4%
(31 December 2023: 86.4%) (note 20).
In terms of liquidity, as at 31 December 2024 the
Group deposits, including the impact of the Hellenic Bank consolidation that added
€ 15.8
billion, stood
at €
78.6 billion
(31 December
2023: €
57.4 billion),
leading the
Group’s
(net) loans
to deposits
(L/D) ratio
to
64.8% (31 December 2023:
72.3%). The funding from the
targeted long term refinancing operations of the ECB –
TLTRO III programme
was fully repaid
during the year (31
December 2023: € 3.8 billion)
(note 31), while the
Group’s debt
securities in issue, increased
by
€ 2.3 billion (note
25). As at 31
December 2024, the Bank’s
MREL ratio
at consolidated
level stands at
28.22% of RWAs,
higher than
the interim non-binding
MREL target
of 25.62% from
January 2025 (note 4).
The Group Liquidity
Coverage ratio
(LCR) has increased
to
188.2%
(31 December
2023:
178.6%).
In
the
context
of
the 2024
ILAAP
(Internal
Liquidity
Adequacy
Assessment
Process),
the
liquidity stress tests
results indicated
that the Bank has
adequate liquidity buffer
to cover the
potential outflows that
could occur in
all scenarios regarding the short term (1 month),
the 3-month and the medium-term horizon (1 year).
On 18 December
2024, the Board of Directors of
Eurobank Holdings decided the
initiation of the merger
process of Eurobank Holdings
with the Bank
through absorption of
the former by
the latter,
in order that
operational efficiencies
and a leaner group
structure be
achieved.
The merger is not
expected to have
any material effect
on the Group’s
financial position and will be
completed subject to
all necessary by Law approvals (note 23.3).
Going concern assessment
The Board of
Directors, acknowledging
the geopolitical, macroeconomic
and financial risks
to the economy
and the banking
system
and taking into account the above factors relating to (a) the idiosyncratic growth opportunities in Greece, Bulgaria and Cyprus
for this
and the next years, also underpinned by the
mobilisation of the EU funding mainly
through the RRF, and (b) the Group’s pre-provision
income generating capacity,
asset quality, capital
adequacy and liquidity position, has been satisfied
that the financial statements
of
the Group can be prepared on a going concern basis.
Notes to the Consolidated Financial Statements
.
9
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31 December 2024 Consolidated Financial Statements
2.1.1
New and amended standards and interpretations
(a) New and amended standards adopted by the Group as
of 1 January 2024
The following
amendments to
existing
standards
as issued
by the
IASB and
endorsed by
the EU,
that
are relevant
to
the Group’s
activities apply as of 1 January 2024:
IAS 1, Amendments, Classification of Liabilities as Current or Non-Current
and Non-current liabilities with covenants
The
amendments,
published
in
January
2020,
introduce
a
definition
of
settlement
of
a
liability,
while
they
make
clear
that
the
classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period.
In addition,
it is clarified
that the assessment
made at the
end of the
reporting period
for liabilities’ classification
is not affected
by
the expectations about events after the reporting period and whether an entity will exercise its right to defer settlement of a liability.
The Board also clarified that when classifying liabilities as current
or non-current, an entity can ignore only
those conversion options
that are classified as equity.
In October 2022, the IASB issued
“
Non-current Liabilities with Covenants
(Amendments to IAS 1)”
with respect to liabilities for
which
an entity’s
right to
defer
their settlement
for
at
least
12 months
after the
reporting
date,
is subject
to the
entity
complying with
conditions after
the reporting
period (“future
covenants”).
The amendments
specify that
covenants
to be
complied with
after the
reporting
date do
not affect
the classification
of debt
as current
or non-current
at the
reporting date.
However,
the amendments
require a company to disclose information
about these covenants in the notes to the financial statements.
The adoption of the amendments had no impact on the consolidated financial statements.
IFRS 16, Amendments, Lease Liability in a Sale and Leaseback
The amendments require a seller-lessee
to subsequently measure lease liabilities arising in a sale and
leaseback transaction in a way
that it does not recognise any amount of the gain or loss that relates to the right of use it retains. Any gains
and losses relating to the
full or partial termination of a lease continue to be recognised when they occur. The amendment does not change the accounting for
leases unrelated to sale and leaseback transactions.
The adoption of the amendments had no impact on the consolidated financial statements.
(b) New and amended standards not yet adopted by the Group
A number of new
standards and amendments
to existing standards
are effective
after 2024, as
they have not
yet been endorsed
by
the EU or have not been early applied by the Group. Those that may
be relevant to the Group are set
out below:
IFRS 18, Presentation and Disclosure in Financial Statements
(effective 1 January 2027, not yet endorsed by EU)
In April 2024, the IASB published
the new standard
IFRS 18 “Presentation
and Disclosure in Financial Statements”
which will replace
IAS 1 “Presentation of
Financial Statements”. The new standard sets out the
requirements for presentation and disclosures in financial
statements with focus
on the income statement and reporting of financial performance,
in order to ensure that financial statements
provide relevant information
that faithfully represents an entity’s
financial position, performance, and cash flows.
Specifically,
the
new
standard
contains
new
guidance
regarding
the
structure
of
the
income
statement,
as
well
as
disclosure
requirements for
Management-defined Performance
Measures (MPMs). In
addition, it provides
enhanced guidance on
aggregation
and disaggregation
of information on
the face of financial
statements and
in the notes,
while sets out general
requirements for
the
classification and presentation of assets, liabilities,
equity, income, and expenses.
The new standard
is effective
for annual periods
beginning on or
after January 1,
2027, with early
adoption permitted
and will also
apply to comparative information.
The Group is currently assessing the impact of IFRS 18 on its
consolidated financial statements.
IAS 21, Amendments, Lack of Exchangeability (effective
1 January 2025)
The
amendments
to
IAS 21”
The
Effects
of
Changes
in
Foreign
Exchange
Rates”,
specify how
an
entity
can
determine
whether
a
currency
is
exchangeable
into
another
currency
at
the
measurement
date,
and
the
spot
exchange
rate
to
use
when
it
is
not.
In
addition,
when
a
currency
is
not
exchangeable
an
entity
should
disclose
information
that
would
enable
users
of
its
financial
statements to understand
the related effects and risks as well as the
estimated rates and techniques used.
Notes to the Consolidated Financial Statements
.
10
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31 December 2024 Consolidated Financial Statements
The adoption of the amendments is not expected to impact the consolidated
financial statements.
IFRS 9
& IFRS
7, Amendments
to the
Classification and
Measurement of
Financial Instruments
(effective 1
January 2026,
not yet
endorsed by EU)
In May 2024,
the IASB issued “Amendments
to the Classification
and Measurement of
Financial Instruments
– Amendments to
IFRS
9 and IFRS 7”. The amendments clarify the requirements related to the derecognition
of financial liabilities settled through electronic
payment
systems,
provide
additional
guidance
for
the
SPPI
assessment
of
financial
instruments
with
contingent
features,
non-
recourse features,
as well as for transactions that are contractually
linked instruments.
Additionally, the amendments introduce disclosure requirements regarding
financial instruments with contingent features, as well as
for investment in equity instruments
designated at FVOCI.
The amendments are effective for
annual reporting periods beginning on or after 1 January 2026 with earlier application permitted.
The Group is currently assessing the impact of the amendments on its
consolidated financial statements.
Annual improvements to IFRSs - Volume
11 (effective 1 January 2026, not yet endorsed by EU)
In July 2024,
the IASB issued
amendments to several
IFRS standards,
which resulted
from the IASB’s
annual improvements
process.
This volume includes minor amendments to several standards
namely:
-IFRS 1 “First-time
Adoption of International
Financial Reporting Standards”
on Clarifications on hedge
accounting for first
-time
adopters,
-IFRS 7
“Financial Instruments:
Disclosures”
and its
accompanying
Guidance on
implementing IFRS
7
in disclosures
related
to
derecognition,
fair value and credit risk,
-IFRS 9
“Financial Instruments”
on clarifications
about lessee
derecognition
of lease
liabilities and
on definition
of transaction
price over the initial measurement of trade receivables,
-IFRS 10 “Consolidated Financial Statements”
on the determination of a 'De Facto Agent'
and
-IAS 7 “Statement of Cash-Flows” on definition of cost
method.
The adoption of the amendments is not expected to impact the consolidated
financial statements.
2.2
Material accounting policies
2.2.1
Consolidation
(i) Subsidiaries
Subsidiaries are all entities controlled by the Group. The Group controls an entity when it is exposed, or
has rights to, variable returns
from
its
involvement
with
the
entity,
and
has
the
ability
to
affect
those
returns
through
its
power
over
the
entity.
The
Group
consolidates an entity only when all the above three elements
of control are present.
Power over
the entity may
arise from voting rights
granted by equity
instruments such as shares
or,
in other cases, may
result from
contractual arrangements.
Where voting
rights are
relevant,
the Group
is deemed
to have
control
where it
holds, directly
or indirectly,
more than
half of
the
voting rights over
an entity,
unless there is evidence
that another investor
has the practical
ability to unilaterally
direct the relevant
activities.
The
Group
may
have
power,
even
when
it
holds
less
than
a
majority
of
the
voting
rights
of
the
entity,
through
a
contractual
arrangement
with
other
vote
holders,
rights
arising
from
other
contractual
arrangements,
substantive
potential
voting
rights,
ownership of the largest
block of voting rights in a situation
where the remaining rights are
widely dispersed (‘de
facto power’), or a
combination
of
the
above.
In assessing
whether
the
Group
has
de
facto
power,
it
considers
all
relevant
facts
and
circumstances
including
the
relative
size
of
the
Group’s
holding
of
voting
rights
and dispersions
of
holdings of
other
vote
holders
to
determine
whether the Group has the practical ability to direct
the relevant activities.
In assessing whether the
Group has the ability
to use its power
to affect
the amount of returns
from its involvement
with an entity,
the Group determines whether in
exercising its decision-making rights,
it is acting as an agent or
as a principal. The Group acts as
an
agent when it is engaged
to act on behalf and for
the benefit of another party,
and as a result does not
control an entity.
Therefore,
in
such
cases,
the
Group
does not
consolidate
the
entity.
In making
the
above
assessment,
the
Group
considers
the scope
of
its
Notes to the Consolidated Financial Statements
.
11
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31 December 2024 Consolidated Financial Statements
decision-making authority over the
entity, the
rights held by other
parties, the remuneration
to which the Group
is entitled from its
involvement, and its exposure to
variability of returns from other interests
in that entity.
The Group
has interests
in certain
entities which
are structured
so that
voting rights
are not
the dominant
factor
in deciding
who
controls the entity, such as when any voting rights
relate to administrative tasks only and the relevant activities are
directed by means
of contractual rights. In determining whether the Group
has control over such structured entities, it considers
the following factors:
•
The purpose and design of the entity;
•
Whether the
Group has
certain rights
that give
it the
ability to
direct the
relevant
activities of
the entity
unilaterally,
as a
result of existing contractual
arrangements that give it the power to govern
the entity and direct its activities;
•
In case another entity
is granted decision making
rights, the Group assesses whether
this entity acts as
an agent of the
Group
or another investor;
•
The existence of any special relationships
with the entity; and
•
The extent
of the Group’s
exposure to
variability of
returns from
its involvement
with the entity,
including its exposure
in
the most subordinated securitization notes issued by the entity as well as subordinated loans or other credit enhancements
that may be granted to the entity,
and if the Group has the power to affect such variability.
Information about the Group’s
structured entities is set out in note 25.
The Group reassesses whether it
controls an entity if facts
and circumstances indicate that there are
changes to one or
more elements
of
control.
This
includes
circumstances
in
which
the
rights
held
by
the
Group
and
intended
to
be
protective
in
nature
become
substantive upon
a breach of
a covenant
or default on
payments in a
borrowing arrangement,
and lead to
the Group having
power
over the investee.
Subsidiaries are
fully consolidated
from the
date on
which control
is transferred
to the Group
and are
no longer consolidated
from
the
date
that
control
ceases.
Total
comprehensive
income
is
attributed
to
the
owners
of
the
parent
and
to
the
non-controlling
interests even if this results
in the non-controlling interests having
a deficit balance.
In determining the proportion of profit or loss and changes in equity allocated
to the Group and non-controlling interests,
the Group
takes
into
account
current
ownership
interests,
also
including
in-substance
current
ownership
interests,
after
considering
the
eventual exercise
of any potential
voting rights
and other derivatives
that currently
give the Group
access to the returns
associated
with an ownership interest.
Changes in the
Group's ownership
interest in
subsidiaries that do
not result in
a loss of control
are recorded
as equity transactions.
Any difference between the consideration
and the share of the new net assets acquired is recorded directly in equity. Gains or losses
arising from disposals of
ownership interests that
do not result in a
loss of control
by the Group are
also recorded directly
in equity.
For disposals of ownership interests
that result in a loss of control, the Group derecognizes
the assets and liabilities of the subsidiary
and any related
non-controlling interest
and other components
of equity and
recognizes gains
and losses in
the income statement.
When
the
Group
ceases to
have
control,
any
retained
interest
in
the former
subsidiary
is re-measured
to
its
fair
value,
with
any
changes in
the carrying
amount recognized
in the
income statement.
The Group
considers
the eventual
exercise
of any
potential
voting
rights
and
other
derivatives
and
whether
they
currently
give
the
Group
access
to
the
returns
associated
with
a
retained
ownership interest, in determining
whether that ownership interest should
be derecognised or not.
Intercompany transactions,
balances and intragroup
gains on transactions between
Group entities are eliminated;
intragroup losses
are also eliminated unless the transaction provides
evidence of impairment of the asset transferred.
(ii) Business combinations
The purchase method of accounting is used to account for the acquisition of subsidiaries by the
Group. The consideration transferred
for an acquisition is measured at the fair value of the assets given, equity instruments
issued or exchanged and liabilities undertaken
at
the
date
of
acquisition,
including
the
fair
value
of
assets
or
liabilities
resulting
from
a
contingent
consideration
arrangement.
Acquisition related
costs are expensed
as incurred. Identifiable
assets acquired and
liabilities and contingent
liabilities assumed in a
business combination are measured initially at
their fair values at the
acquisition date irrespective of the
extent of any non-controlling
interest. Any previously held interest in
the acquiree is
remeasured to fair value
at the acquisition
date with any gain
or loss recognized
in the
income statement.
The Group
recognizes
on an
acquisition-by-acquisition basis
any non-controlling
interest
in the
acquiree
either at fair value or at the non-controlling
interest's proportionate share
of the acquiree's net assets.
Notes to the Consolidated Financial Statements
.
12
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31 December 2024 Consolidated Financial Statements
The excess of the consideration
transferred, the
amount of any non-controlling
interest in the acquiree and
the acquisition-date fair
value of
any previous
equity interest
in the
acquiree over
the fair
value of
the identifiable
net assets
of the
subsidiary acquired,
is
recorded as
goodwill. If
this is
less than
the fair
value of
the net
assets of
the acquiree,
the difference
is recognized
directly in
the
income statement.
If the
initial accounting
for a
business combination
is incomplete
by the
end of
the reporting
period in
which it
occurs, the
Group
reports
provisional
amounts
for
the
items
for
which
the
accounting
is
incomplete.
Those
provisional
amounts
are
adjusted
retrospectively
during
the
measurement
period
to
reflect
the
new
information
obtained
about
the
facts
and
circumstances
that
existed at
the acquisition
date that,
if known,
would have
affected the
amounts recognized
at that
date. The
measurement period
adjustments, as
mentioned above,
affect accordingly
the amount
of goodwill
that was
initially recognized,
while the
measurement
period cannot exceed one year from
the acquisition date.
Commitments to
purchase non-controlling
interests
through derivative
financial instruments
with the
non-controlling
interests,
as
part of
a business
combination
are
accounted
for
as a
financial liability,
with no
non-controlling
interest
recognized
for
reporting
purposes.
The
financial
liability
is
measured
at
fair
value,
using
valuation
techniques
based
on
best
estimates
available
to
Management. Any difference between
the fair value of the financial liability upon initial recognition and the nominal non-controlling
interest's share of net assets is recognized as part of goodwill. Subsequent revisions to the valuation of the
derivatives are recognized
in the income statement.
Agreements to acquire or dispose shares in an entity that will be settled at a future date and will result in a business combination are
accounted for by the Group as executory contracts and not as derivatives, under the relevant accounting standards. The term of such
agreements
should
not
exceed
a
reasonable
period
normally
necessary
to
obtain
any
required
approvals
and
complete
the
transaction.
For
acquisitions
of
subsidiaries
not
meeting
the
definition
of
a
business,
the
Group
allocates
the
consideration
to
the
individual
identifiable assets and liabilities based
on their relative fair
values at the date of
acquisition. Such transactions or events
do not give
rise to goodwill.
A listing of the Bank’s subsidiaries is set
out in note 23.
(iii) Business combinations involving entities under common control
Pursuant to
IAS 8 ‘Accounting
Policies, Changes
in Accounting
Estimates and
Errors’,
since business
combinations between
entities
under common
control
are excluded
from the
scope of
IFRS 3
‘Business Combinations’,
such transactions
are accounted
for in
the
Group’s financial statements by using the pooling of interests method (also known as merger accounting), with reference to the most
recent pronouncements of other standard-setting bodies that use a similar conceptual framework and comply with the IFRSs general
principles, as well as accepted industry practices.
Under the
pooling
of interests
method, the
Group
incorporates
the assets
and liabilities
of the
acquiree
at their
pre-combination
carrying amounts from the highest level of
common control, without any
fair value adjustments. Any difference
between the cost
of
the transaction and the carrying amount of the net assets acquired
is recorded in Group's equity.
The Group accounts for the cost of such business combinations at the fair value of the consideration
given, being the amount of cash
or shares issued or if that cannot be reliably measured, the consideration
received.
Formation of a new Group entity to effect a business combination
Common control transactions that involve the formation of a new Group entity to effect a business combination by bringing together
two or more previously uncombined
businesses under the new Group entity
are also accounted for
by using the pooling of interests
method.
Other common control
transactions that involve
the acquisition of a single existing
Group entity or a single
group of businesses by
a
new entity formed
for this purpose
are accounted
for as capital
reorganizations,
on the basis that
there is no business
combination
and no substantive
economic change in
the Group. Under
a capital reorganization,
the acquiring entity
incorporates the
assets and
liabilities of the acquired
entity at their carrying
amounts, as presented
in the books of
that acquired entity,
rather than those
from
the highest level
of common control.
Any difference
between the cost
of the transaction
and the carrying amount
of the net assets
acquired is
recognized
in the
equity of
the new
entity.
Capital reorganization
transactions do
not have
any impact
on the
Group’s
consolidated financial statements.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
(iv) Associates
Investments
in associates are
accounted for
using the equity
method of
accounting in the
consolidated financial
statements. These
are undertakings over which the Group exercises
significant influence but which are not controlled.
Equity accounting
involves recognizing
in the income
statement
the Group's
share of
the associate's profit
or loss for
the year.
The
Group's interest in the associate is carried
on the balance sheet at an amount that reflects its share of the net assets of the associate
and any
goodwill identified
on acquisition
net of any
accumulated impairment
losses. If the
Group's share
of losses of
an associate
equals or
exceeds its
interest
in the associate,
the Group
discontinues recognizing
its share
of further
losses, unless
it has incurred
obligations or made payments on behalf of the associate.
When the Group obtains
or ceases to have
significant influence, any
previously held or retained
interest in the
entity is remeasured
to its fair value, with any change in the carrying amount recognized in the income statement,
except in cases where an investment in
associate becomes
an investment
in a joint
venture where
no remeasurement
of the interest
retained is
performed and
use of the
equity method continues to apply.
(v) Joint arrangements
A
joint
arrangement
is
an
arrangement
under
which
the
Group
has
joint
control
with
one
or
more
parties.
Joint
control
is
the
contractually agreed sharing of control and exists only when decisions about relevant activities require the unanimous consent of the
parties sharing control. The Group evaluates
the contractual terms of joint arrangements
to determine whether a joint arrangement
is a joint operation or a joint venture.
All joint arrangements in which the Group has an interest
are joint ventures.
As
investments
in
associates,
the
Group's
interest
in
joint
ventures
is
accounted
for
by
using
the
equity
method
of
accounting.
Therefore, the accounting policy described
in note 2.2.1 (iv) applies also for joint ventures.
A listing of the Group's associates and joint ventures
is set out in note 24.
2.2.2 Foreign currencies
(i) Translation of foreign subsidiaries
Assets and liabilities of foreign
subsidiaries are translated
into the Group’s
presentation currency at
the exchange rates
prevailing at
each reporting
date whereas
income and expenses
are translated
at the average
exchange rates
for the
period reported.
Exchange
differences
arising from
the translation
of the
net investment
in a
foreign
subsidiary,
including exchange
differences
of monetary
items receivable or payable to the foreign
subsidiary for which settlement is neither planned nor likely
to occur that form part of the
net investment
in the
foreign
subsidiaries, are
recognized
in other
comprehensive income.
Exchange differences
from the
Group’s
foreign subsidiaries are released to
the income statement on their disposal.
(ii) Transactions in foreign currency
Foreign
currency
transactions
are
translated
into
the
functional
currency
using
the
exchange
rates
prevailing
at
the
dates
of
the
transactions.
Foreign
exchange
gains
and
losses
resulting
from
the
settlement
of
such
transactions
are
recognized
in
the
income
statement.
Monetary assets
and liabilities denominated
in foreign
currencies are translated
into the
functional currency
at the
exchange rates
prevailing at each reporting
date and exchange
differences are recognized
in the income statement,
except when deferred
in equity
as qualifying cash flow or net investment hedges.
Non-monetary assets and liabilities are
translated into the
functional currency at the exchange
rates prevailing
at initial recognition,
except for non-monetary items denominated
in foreign currencies that are measured at fair value
which are translated at the rate of
exchange at the date the fair value
is determined. The exchange differences
relating to these items are treated
as part of the change
in fair value
and are recognized
in the income statement
or directly in other
comprehensive income depending
on the classification
of the non-monetary item.
2.2.3 Derivative financial instruments and hedging
Derivative financial instruments that mainly include foreign exchange
contracts, forward currency agreements, currency
and interest
rate options (both written and purchased), as well as currency and
interest rate swaps are
initially recognized in the balance sheet at
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
fair value,
on the date
on which the
derivative contracts
are entered
into, and
subsequently are
re-measured at
their fair value.
All
derivatives are carried as assets when fair
value is positive and as liabilities when fair value is negative.
The principles
for the
fair value
measurement
of financial
instruments,
including derivative
financial instruments,
are described
in
notes 3.2 and 5.3.
Embedded derivatives
Embedded derivatives
are components
of hybrid
contracts
that also
include non-derivative
hosts with
the effect
that some
of the
cash flows of the combined instruments vary
in a way similar to stand-alone derivatives.
Financial
assets
that
contain
embedded
derivatives
are
recognised
in
the
balance
sheet
in
their
entirety
in
the
appropriate
classification category,
following the instruments’
assessment of their contractual
cash flows and
their business model as
described
in note 2.2.9.
On the other
hand, derivatives embedded in
financial liabilities, such
as bonds issued
by the Group, are
treated as separate derivatives
when their risks
and characteristics are
assessed not to
be closely related
to those of
the host contract
and the host
contract is not
carried
at
fair
value through
profit
or loss.
These embedded
derivatives
are
separated
in the
balance sheet
and
accounted
for
as
stand-alone derivatives measured at fair
value with changes in fair value recognized
in the income statement.
Derivatives held for hedge accounting
The use of derivative financial instruments is inherent
in the Group’s activities and aims principally at
managing risks effectively.
Accordingly,
the Group,
as part of
its risk management
strategy,
may enter
into transactions
with external
counterparties to
hedge
partially or fully exposure to interest rates,
foreign currency rates, equity prices and other market
factors that are generated
from its
activities.
The objectives of hedging with derivative financial instruments
include:
•
Reduce interest rate
exposure that is in excess of the Group’s
interest rate limits;
•
Manage efficiently
interest rate
risk and achieve
optimization and stabilization
of the evolution
of net interest
margin and
net interest
income by tracking
the evolution of
interest rates
and spreads and
hedging the changes
to the movements
of
the benchmark interest rates
represented by the prevailing reference
rates;
•
Manage the overall fair value
exposure on settled or unsettled (forward)
transactions
•
Reduce variability deriving from the fair value
changes of derivatives embedded in financial assets;
•
Manage future variable cash flows;
•
Reduce foreign currency risk or inflation
risk;
•
Reduce variability of the consideration to
be paid/received to acquire/sell a debt
security under a forward transaction,
•
Reduce accounting
exposure, i.e.
the variability
in the
Group’s
equity arising
from translating
a foreign
net investment
at
different exchange
rates.
Hedge accounting
The Group has elected,
as a policy choice permitted
under IFRS 9, to
continue to apply
hedge accounting in accordance
with IAS 39,
as endorsed by the European Union (IAS 39 “carve out'’). In 2023,
the Group introduced a new risk management strategy which is the
fair value hedging
of the core
deposits held in Greece
and Cyprus from
both retail and
wholesale portfolios. Accordingly,
the Group
applied for
the first
time the
provisions
of IAS
39 carve-out
that
enables entities
to designate
core
deposits as
hedged
items in
a
portfolio
hedge of
interest
rate
risk, as
further described
in the
sections below.
Under the
EU carve-out
version
of IAS
39, certain
requirements related
to hedge accounting
were removed,
in order to
facilitate (a)
the application of
fair value
hedge accounting
to
the macro-hedges
used for
structural hedges
including demand deposits
and (b) the
hedge effectiveness
assessment by
permitting
the use of bottom layer approach for
the determination of the fair value of hedged item,
attributable to interest
rate risk.
For
hedge
accounting
purposes,
the
Group
forms
a
hedging
relationship
between
a
hedging
instrument
or
group
of
hedging
instruments and a
related item or
group of items
to be hedged.
A hedging instrument
is a
designated derivative or group
of derivatives,
or a designated non-derivative financial asset or financial liability whose fair value or cash flows are expected to offset changes in the
fair value
or cash flows
of a designated
hedged item
or group of
items. Specifically,
the Group designates
certain derivatives
as: (a)
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
hedges of the exposure to changes in
the fair value of recognized assets or liabilities
on a single or
portfolio basis or unsettled forward
transactions,
or
unrecognized
firm
commitments
(fair
value
hedging),
(b)
hedges
of
the
exposure
to
variability
in
cash
flows
of
recognized assets
or liabilities or
unsettled forward
transactions, or highly
probable forecasted
transactions (cash
flow hedging) or,
(c) hedges of the
exposure to variability in the value of
a net investment in a foreign operation which is
associated with the translation
of the investment's net assets in the Group's
functional currency (net investment hedging).
In
order
to
apply
hedge
accounting,
specified
criteria
should
be
met.
Accordingly,
at
the
inception
of
the
hedge
accounting
relationship, the Group documents the
relationship between hedging instruments
and hedged items, as well as its risk management
objective
and
strategy
for
undertaking
various
hedge
transactions,
together
with
the
method
that
will
be
used
to
assess
the
effectiveness of the hedging
relationship. The Group also
documents its assessment, both
at inception of
the hedge and
on an ongoing
basis, of whether the
derivatives that are
used in the hedging transactions
are highly effective
in offsetting
changes in fair
values or
cash flows
of hedged
items and
whether the actual
results of
each hedge
are within
a range
of 80-125%.
If a relationship
does not
meet
the
abovementioned
hedge
effectiveness
criteria,
the
Group
discontinues
hedge
accounting
prospectively.
Similarly,
if
the
hedging
derivative
expires
or
is
sold,
terminated
or
exercised,
or
the
hedge
designation
is
revoked,
then
hedge
accounting
is
discontinued prospectively.
(i) Fair value hedging
The Group applies
fair value hedging
primarily to hedge exposures
to changes in the
fair value attributable
to interest
rate risk with
respect to the applicable benchmark rate
and currency risk.
Hedged items
The items that qualify for fair value hedge accounting
include financial assets and liabilities such as:
•
fixed rate investment
securities measured at AC or FVOCI,
•
fixed rate term deposits and debt
securities issued measured at amortized cost;
•
portfolios of
floating-rate
loans and
debt securities
with embedded
interest rate
options (such
as purchased
interest rate
floors) measured at AC;
•
portfolios
of
fixed
rate
amortizing
loans
(macro
hedging)
including
securitization
notes
issued
and
held
by
the
Group
measured at AC.
•
portfolios of liabilities (macro hedging) and more specifically demand deposits with interest
rates determined by the Group
and
announced
on
its
pricing
list
(sight/savings
deposit
rate)
that
are
identified
as
interest
rate-insensitive
liabilities
measured at
AC. More
specifically,
demand deposits
(sight or
savings) are
liabilities with
no contractual
maturity that
the
customers have the flexibility
to withdraw at any time. Despite
their contractual terms, and due to
their nature, part of the
demand
deposits
behaves
as
a
portfolio
of
longer-term
fixed
rate
liabilities,
as
they
remain
insensitive
to
interest
rate
movements. This part of demand deposits represents the core
deposits.
Hedge effectiveness assessment
The Group uses the regression analysis or the dollar-offset
method at inception (prospective measurement) and on
an ongoing basis
(retrospective measurement),
in order to assess
the effectiveness of
fair value hedges
on a single or portfolio
basis. Specifically,
the
regression analysis
is the
default method
of assessing
effectiveness
which applies
to all
single fair
value hedging
relationships
and
portfolios hedging of interest rate risk (macro-hedging) and demonstrates that there is
high historical and expected future correlation
between
the interest
rate
risk designated
as being
hedged
and
the interest
rate
risk of
the hedging
instrument.
If the
regression
coefficient of the equation,
that represents the effectiveness
ratio, ranges
between -0.8 to -1.25, the
hedge relationship is expected
to be
highly effective,
further supported
by the coefficient
of determination
(R2) which should
be greater
than 80%
to confirm
the
statistical
level of
high effectiveness.
For hedging
relationships, that
regression analysis
is not
available the
dollar-offset
method is
used, which
is a quantitative method that involves the comparison of the change in the fair value of the hedging instrument with the
change in the fair value
of the hedged item attributable
to the hedged risk. The above
comparison constitutes the dollar-offset
ratio
and should be within the range of 80% -125% for the hedge to be
highly effective.
The Group
may also
apply the
hypothetical derivative
method, an
approach to
the dollar
offset method,
where the
hedged risk
is
modelled through hypothetical
derivatives, which replicate
the embedded derivative. The
fair value of the hypothetical
derivative is
used
as
a proxy
for
the
net
present
value
of
the
hedged
future
cash
flows
against
which
changes
in
value
of
the
actual hedging
Notes to the Consolidated Financial Statements
.
16
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31 December 2024 Consolidated Financial Statements
instrument are
compared to
assess effectiveness and
measure ineffectiveness.
Hedge ineffectiveness
may arise in
case of potential
differences in the critical terms between the hedged item and the hedging instrument such as maturity, interest rate
reset frequency
and discount curves as well as differences between
expected and actual cash flows.
In addition, for hedging relationships
where the critical terms
of the hedged item match
the ones of the hedging instrument
such as
coupon, maturity,
and payment frequency,
it is presumed that by construction, effectiveness
is expected to be highly effective.
The Group has identified the following sources of ineffectiveness:
•
Differences in the repricing frequency
of the hedged items and hedging instruments
•
The use of different interest
rate curves applied to discount the hedged items
and hedging instruments.
Fair value hedging adjustments and discontinuation of hedge
accounting
Changes in the fair value of derivatives that are designated and qualify as
fair value hedges are recorded in the income statement line
“net trading income/(loss)”
together with the changes
in the fair value
of the hedged assets
or liabilities that are
attributable to the
hedged risk
(fair value
hedging adjustments).
Fair value
hedging adjustments
to the
hedged items
measured at
amortised cost
are
recorded as
part of their
carrying value in
the balance sheet,
with the exception
of hedging adjustments
for portfolios
of fixed
rate
assets in the context of macro-hedging (see below).
The Group
discontinues hedge
accounting prospectively
in case the
hedging instrument
expires or
is sold, terminated
or exercised,
the hedge no
longer meets the
qualifying criteria for
hedge accounting, or
designation is revoked.
In such cases,
any adjustment
to
the carrying amount of
the hedged item, for which
the effective interest method is applied, is
amortized to profit or loss in
the income
statement
line
“interest
income”
over
the
remaining
period
to
maturity
with
amortization
commencing
no
later
than
when
the
hedged
item
ceases
to
be
adjusted
for
changes
in
its
fair
value
attributable
to
the
risk
being
hedged.
If
the
hedged
item
is
derecognised, the unamortised fair value adjustment
is recognised immediately in the income statement.
Portfolio hedging of interest rate risk (macro
-hedging)
With
reference
to
portfolio
hedging
of
interest
rate
risk,
a
dynamic
hedging
strategy
is
applied
according
to
which
the
Group
voluntarily designates and de-designates
the hedge relationship on a monthly basis.
For portfolios of financial assets, the Group determines the designated hedged amount by
identifying portfolios of homogenous fixed
rate assets based on their contractual interest rates, maturity and other risk characteristics. Assets within the identified portfolios are
allocated into
repricing time periods
based on their
repricing/maturity dates or
interest payment
dates with assumptions
made for
expected prepayments
and capital repayments.
The hedging instruments
are groups
of interest
rate swaps
replicating in
aggregate
the amortization
profile of
the assets
and designated
appropriately to
their repricing
time periods.
Following the
above allocation
into time buckets, the designated
hedged principal and the resulting percentage
of the asset portfolio hedged (hedge ratio)
for each
time bucket are determined.
For
the core
deposits’ portfolios,
the Group
determines
their aggregated
balances and
allocation
into
time buckets
by applying
a
modelled approach that is based
on regulatory standards. More specifically, the portfolio of core deposits to
be hedged is determined
by an internal
designated behavioral
model that utilizes
a number of
assumptions regarding
the behavior and
evolution of demand
deposits balances, which are assessed,
monitored and documented in accordance with the
Group’s risk management framework. The
approach
involves
the
allocation
of
demand
deposits
in
sub-categories
considering
their
nature,
i.e.
retail
and
wholesale,
their
idiosyncratic behavioral analysis per portfolio,
their sensitivity on interest rates and their withdrawal patterns
and expected maturity
profile
analyzed
in time
buckets
for
a maximum
period of
ten years.
Furthermore, the
model performs
a capacity
check per
time
bucket to ensure that there is sufficient hedge capacity on the hedged item amortizing profile, compared to the
hedging instruments’
profile in order to ensure that there is no
over hedge.
Against
this
modelled
interest
rate
exposure,
the
Group
then
uses
groups
of
interest
rate
swaps
with
maturity
up
to
ten
years,
designated as hedging
instruments, that receive
fixed interest rate and pay floating
interest rate based on
the benchmark rate
hedged.
The groups
of swaps
are staggered
to cover
different
periods in time
replicating in
aggregate the
estimated amortization
profile of
the hedged core deposits
per time bucket. Additionally, their volume is
re-assessed on a monthly
basis. Following the above
allocation
into time buckets,
the designated hedged principal
and the resulting percentage
of the portfolio hedged
(hedge ratio) for
each time
bucket are determined.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
For hedge effectiveness assessment purposes,
the regression analysis is
used to demonstrate that
there is high
historical and expected
future correlation between the
interest rate
risk designated as being hedged and the
interest rate
risk of the hedging instrument, as
described above.
Fair
Value
hedging
adjustments
do
not
affect
the
carrying
amount
of
the
hedged
assets
or
liabilities
pool,
but
instead
they
are
presented
as a
separate
line item
within balance
sheet lines
loans and
advances to
customers
and due
to customers
respectively.
Considering the designation and de-designation process for
a portfolio hedging of interest
rate risk is performed on a monthly
basis,
the hedging
adjustments are
recorded in
the income
statement
line “net
trading income/(loss)”,
begin amortization
on the month
they occur and are
amortized per bucket
on a straight
line basis, until the maturity
of the last designated
time bucket on
a straight
line basis.
Furthermore, the pool of hedging instruments is managed
dynamically and therefore when
new derivatives are added in the pool
of
hedging instruments, they are included in the
next period’s hedge assessment and consequently the change in
fair value in the month
of their inception affects the P&L. Similarly,
when existing swaps are de-designated,
either to improve expected hedge
effectiveness
or to be liquidated, the respective change in fair value from de-designation up to the next designation
or liquidation date, affects the
P&L.
(ii) Cash flow hedging
The Group applies cash flow hedging to hedge exposures to variability in cash flows primarily attributable to the interest rate risk and
currency risk associated with
a recognized asset or
liability or a highly probable forecast
transaction. Additionally,
cash flow hedging
may be applied to
hedge the variability of
the consideration to be
paid in order to
acquire assets under unsettled forward transactions
(All-In-One Cash flow hedge).
The items that qualify for cash flow hedging include recognized assets and liabilities such as variable rate deposits
or loans measured
at amortized cost, variable rate
debt securities in issue, foreign currency variable
rate loans and fixed or variable
rate debt securities
to be purchased
under unsettled forward
transactions. The interest
rate risk
with respect to
the applicable benchmark
rate may
be
hedged using
interest rate
swaps and
cross currency
swaps. The
foreign currency
risk may
be hedged
using currency
forwards and
currency swaps. The variability of the consideration to be paid to acquire assets
under unsettled forward transactions may be hedged
using debt securities under
forward transactions treated
as derivatives and considered eligible hedging instruments.
Furthermore, cash
flow hedging is
used for
hedging highly probable
forecast transactions
such as the
anticipated future
rollover of
short-term
deposits
or
repos
measured
at
amortized
cost.
Specifically,
the
forecast
variable
interest
payments
of
a
series
of
anticipated
rollovers
of these
financial liabilities
are aggregated
and hedged
as a
group with
respect to
changes in
the benchmark
interest rates, eliminating cash flow variability.
In addition, cash flow hedging applies to
hedges of currency risk arising from probable
forecasted sales of financial assets or
settlement of financial liabilities in foreign currency.
If the
hedged item
is documented
as a
forecast
transaction, the
Group
assesses and
verifies that
there is
a high
probability of
the
transaction occurring.
In order to assess the effectiveness
of cash flow hedges of interest
rate risk, the Group
uses regression analysis which demonstrates
that there is high
historical and expected future correlation between
the interest rate risk designated as
being hedged and the
interest
rate
risk of
the hedging
instrument. For
assessing the
effectiveness
of cash
flow hedges
of currency
risk and
debt securities
under
unsettled forward transactions,
the Group uses the dollar-offset
method as it is described in section (i) above.
The effective
portion of changes
in the fair
value of derivatives
that are designated
and qualify as cash
flow hedges is recognized
in
other comprehensive income whereas the ineffective portion is recognized in the income statement line “net trading income/(loss)”.
Amounts accumulated
in equity
are recycled
to the
income statement
in the
periods in which
the hedged
item will
affect profit
or
loss (for example, when the forecast
sale that is hedged takes place).
When a
hedging instrument
expires or
is sold,
or when
a hedge no
longer meets
the criteria
for hedge
accounting, the
cumulative
gain or loss existing in equity at that time remains
in equity until the hedged cash flows affect
the income statement.
When a forecast
transaction is
no longer
expected to
occur,
the cumulative
gain or
loss that was
reported in
equity is immediately
transferred to the income
statement.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
(iii) Net investment hedging
The Group
applies net
investment
hedging to
hedge exposures
to variability
in the
value of
a net
investment
in foreign
operation
(including monetary items that form part of the net investment),
such as foreign subsidiaries, associates or other foreign
operations,
associated
with
the
translation
of
the
net
investment’s
carrying
amount
into
the
Group’s
presentation
currency.
Any
exchange
differences deriving from the translation
are deferred in OCI until the net investment
is disposed of or liquidated, at which time they
are recognized in the profit or loss.
The
foreign
currency
exposure
that
arises
from
the
fluctuation
in
spot
exchange
rates
between
the
net
investment’s
functional
currency and the Group’s presentation currency may be
hedged using currency swaps, currency
forward contracts and their economic
equivalents, as well as cash instruments.
The effectiveness of net investment
hedges is assessed with the Dollar-Offset Method
as described above for fair value hedge.
Hedges of
net investments
in foreign
operations
are accounted
for
similarly to
cash flow
hedges. Any
gain or
loss on
the hedging
instrument relating to
the effective portion of the
hedge is recognized in equity;
the gain or loss relating
to the ineffective portion
is
recognized in the income statement.
Gains and losses accumulated in equity are included in the income statement
when the foreign
operation is disposed of as part of the gain or loss on the disposal.
Derivatives not designated as hedging instruments for hedge accounting
purposes
Changes
in the
fair
value
of derivative
financial instruments
that
are
entered
into
for
trading purposes
or as
economic hedges
of
assets, liabilities or
net positions in
accordance with the Group’s hedging
objectives and risk
management policies that may
not qualify
for hedge accounting are recognized
in the income statement.
The fair
values of
derivative instruments
held for
trading, including
those entered
into as
economic hedges,
and hedge
accounting
purposes are disclosed in note 19.
2.2.4 Offsetting financial instruments
Financial
assets
and
liabilities
are
offset
and
the net
amount
is presented
in
the balance
sheet when,
and only
when,
the Group
currently
has a
legally enforceable
right to
set off
the recognized
amounts
and intends
either to
settle them
on a
net basis,
or to
realize the asset and settle the liability simultaneously.
2.2.5 Income statement
(i) Interest income and expense
Interest income and expense are recognized in the
income statement for all interest bearing financial instruments on an
accrual basis,
using
the effective
interest
rate
(EIR)
method. The
effective
interest
rate
is the
rate
that
exactly
discounts
estimated
future
cash
payments or receipts through the
expected life of the financial
instrument or, when appropriate, a shorter period to
the gross carrying
amount of the financial asset or to the amortized
cost of a financial liability. When
calculating the EIR for financial instruments
other
than purchased or originated credit-impaired, the Group estimates future cash flows considering all contractual terms of the financial
instrument
but does
not
consider
expected
credit
losses.
For
purchased
or originated
credit
impaired
(POCI) financial
assets,
the
Group
calculates
the
credit-adjusted
EIR,
which
is
the
interest
rate
that
upon
the
original
recognition
of
the
POCI
financial
asset
discounts the estimated future cash flows
(including expected credit losses) to the fair
value of the POCI asset.
The
amortized
cost
of
a
financial asset
or
liability
is
the
amount
at
which
it
is
measured
upon
initial
recognition
minus
principal
repayments, plus
or minus cumulative
amortization using
the EIR (as
described above)
and for
financial assets it
is adjusted
for the
expected credit loss allowance. The gross carrying amount of a
financial asset is its amortized cost before adjusting for ECL allowance.
The EIR calculation includes fees and points paid
or received that are an integral part
of the effective interest rate,
transaction costs,
and other premiums or discounts. Transaction costs include incremental costs that are directly attributable to the acquisition or issue
of a financial asset or liability.
The Group calculates interest
income and expense by applying the EIR to
the gross carrying amount of non
-impaired financial assets
(exposures in Stage 1 and 2) and to the amortized
cost of financial liabilities respectively.
For financial assets
that have
become credit-impaired
subsequent to
initial recognition (exposures
in Stage 3),
the Group calculates
interest income by applying the effective interest rate to the amortized cost of the financial asset (i.e. gross carrying amount adjusted
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
for the
expected credit
loss allowance).
If the
asset is no
longer credit-impaired,
then the EIR
is applied
again to
the gross
carrying
amount with the exception of POCI assets for
which interest income does not revert
to gross basis calculation.
For inflation-linked
instruments the
Group recognizes
interest
income and
expense by
adjusting the
effective interest
rate on
each
reporting period due
to changes in
expected future cash
flows, incorporating
changes in inflation
expectations over
the term of the
instruments.
The adjusted
effective
interest
rate
is applied
in order
to calculate
the new
gross carrying
amount on
each reporting
period.
Interest income
and expense are
presented separately
in the income statement
for all interest
bearing financial instruments
within
net interest income.
(ii) Fees and commissions
Fee and commission received
or paid that are
integral to the effective interest rate on a
financial asset or
financial liability are included
in the effective interest
rate.
Other
fee
and
commission
income
such
as
account
servicing
and
asset
management
fees
(including
performance
based
fees)
is
recognised
over
time
as
the
related
services
are
being
provided
to
the
customer,
to
the
extent
that
it
is
highly
probable
that
a
significant reversal
of the revenue
amount recognized
will not occur.
Transaction-based
fees such as
foreign exchange
transactions,
imports-exports, remittances,
bank charges and
brokerage
activities are recognised
at the point
in time when the
transaction takes
place. Other
fee
and
commission
expenses
relate
mainly
to
transaction
and service
fees,
which
are
expensed
as
the
services are
received.
In the case of a contract
with a customer that results
in the recognition of a financial
instrument in the Group’s
financial statements
which may
be partially
in the
scope of
IFRS 9
and partially
in the
scope of
IFRS 15,
the Group
first
applies IFRS
9 to
separate
and
measure the part of the contract that is in the scope of
IFRS 9 and subsequently applies IFRS 15 to the residual part.
2.2.6 Property, equipment and
Investment property
(i) Property and equipment
Property and equipment are measured at cost
less accumulated depreciation and any accumulated impairment
losses. Cost includes
expenditure that
is directly attributable
to the acquisition
of the asset. Subsequent
expenditure is recognized
in the asset's
carrying
amount only
when it
is probable
that
future economic
benefits will
flow to
the Group
and the
cost of
the asset
can be
measured
reliably. All other repair
and maintenance costs are recognized in
the income statement as incurred.
Depreciation is calculated
using the straight-line method
to write down the cost
of property and equipment,
to their residual values
over their estimated useful life as follows:
•
Land: no depreciation;
•
Freehold
buildings:
40-50
years
and
up
to
70
years
(for
specific
strategic
properties
constructed
or
heavily
renovated
according
to
the
best
practices
and
guidelines
of
sustainable
construction
and
renovation,
using
resilient
materials
and
designs);
•
Leasehold improvements: over the lease term or
the useful life of the asset if shorter;
•
Computer hardware and related
integral software: 4-10 years;
•
Other furniture and equipment: 4-20 years; and
•
Motor vehicles: 5-7 years.
(ii) Investment property
Property
held
for
rental
yields and/or
capital
appreciation
that
is not
occupied by
the
Group’s
entities
is classified
as
investment
property.
Investment
property
is
measured
initially
at
its
cost,
including
related
transaction
costs,
and
subsequently
at
fair
value
with
any
change therein recognized
in income statement
line ‘’other
income / (expenses)’’.
Subsequent expenditure
is charged to the asset’s
carrying amount only when it is probable that
future economic benefits associated with the
item will flow to the Group and the cost
of the
item can
be measured
reliably.
Such expenditure
includes enhancements
that increase
the value
of the
asset and
its future
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
income-earning
potential,
as well
as costs
to
comply with
environmental
and other
legal requirements.
Repairs
and maintenance
costs are recognized to
the income statement during the financial period in which they are
incurred.
Any gain
or loss
on disposal
(calculated as
the difference
between the
net proceeds
from disposal
and the
carrying amount
of the
asset) is recognized in income statement.
If an
investment
property
becomes
owner-occupied,
it is
reclassified
as
property
and equipment
and its
fair
value
at
the date
of
reclassification becomes its deemed cost. If an item of property and equipment becomes an investment property because its use has
changed, any resulting
decrease between the
carrying amount and the
fair value of this
item at the date
of transfer
is recognized in
income statement
while any resulting
increase, to the extent
that the increase
reverses previous
impairment loss for
that property,
is
recognized
in
income
statement
while
any
remaining
part
of
the
increase
is
recognized
in
other
comprehensive
income
and
increases the revaluation surplus within equity.
If a
repossessed asset
becomes investment
property,
any difference
between the
fair value
of the
property at
the date
of transfer
and its previous carrying amount is recognized
in income statement.
Reclassifications among own used, repossessed assets and
investment properties may occur when there is
a change in the
use of such
properties. Additionally,
an investment property
may be reclassified to ‘non-current
assets held for sale’ category
to the extent that
the criteria described in note 2.2.25 are met.
2.2.7 Intangible assets
(i) Goodwill
Goodwill
arising on
business
combinations
is included
in ‘intangible
assets’
and is
measured at
cost less
accumulated
impairment
losses.
Goodwill arising on acquisitions of associates and jointly controlled entities is neither disclosed nor tested separately for impairment,
but instead is included in ‘investments
in associates’ and ‘investments in jointly
controlled entities’.
(ii) Computer software
Computer software
is measured
at cost
less accumulated
amortisation
and accumulated
impairment losses.
Costs associated
with
the
maintenance
of
existing
computer
software
programs
are
expensed
as
incurred.
Development
costs
associated
with
the
production
of identifiable
assets controlled
by the
Group are
recognized
as intangible
assets when
they are
expected to
generate
economic benefits and can be measured reliably. Internally generated computer software assets are amortized using the straight-line
method over 4 to 15 years, except
for core systems whose
useful life may extend up to 20 years.
(iii) Other intangible assets
Other
intangible
assets
are
assets that
are
separable
or arise
from
contractual
or other
legal
rights
and are
amortized
over
their
estimated useful lives. These include intangible
assets acquired in business combinations.
Intangible assets that have an indefinite
useful life are not subject to amortization
and are tested annually for impairment.
2.2.8 Impairment of non-financial assets
(i) Goodwill
Goodwill is tested
for impairment annually
or more frequently
if there are
any indications that
impairment may have
occurred. The
Group considers
external information
such as prevailing
economic conditions, persistent
slowdown in financial markets,
volatility in
markets and changes in levels of market and exchange risk, an unexpected decline in an asset’s market value or market capitalization
being below the book value of equity, together
with a deterioration in internal performance
indicators, in assessing whether there is
any indication of impairment.
For the purpose of impairment testing,
goodwill acquired in a business combination
is allocated to each Cash
Generating Unit (CGU)
or groups of CGUs that are expected to
benefit from the synergies of the combination.
The Group impairment model compares the carrying
value of a CGU or
group of CGUs with its
recoverable amount. The carrying value
of a CGU is based on
the assets and liabilities of
each CGU. The recoverable
amount is determined
on the basis of the
present value
of the future
cash flows expected
to be derived
from the CGU or
group of CGUs.
The estimated future
cash flows are
discounted to
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
their present
value using a
pre-tax discount
rate that
reflects current
market assessments
of the time
value of money
and the risks
specific to the asset or CGU and the countries where the CGUs operate.
An impairment loss arises if the carrying amount of an asset or CGU
exceeds its recoverable
amount and is recognized in the
income
statement.
Impairment
losses
are
not
subsequently
reversed.
Gains
and
losses
on
the
disposal
of
an
entity
include
the
carrying
amount of goodwill relating to the entity sold.
Goodwill arising
in a business
combination is
not tested
for impairment
during the
measurement period
extending
up to
one year
from the acquisition date
that is allowed for
the completion of the
purchase accounting and
allocation of goodwill, unless
there has
been a triggering event
or changes in other
facts and circumstances,
suggesting that the acquired
goodwill might be impaired,
even
if the allocation process is not complete.
(ii) Other non-financial assets
Other non-financial assets, including property and equipment and other intangible assets, are assessed for indications of impairment
at each reporting date
by considering both external
and internal sources of information
such as a significant reduction
in the asset’s
value
and
evidence
that
the
economic
performance
of
the
asset
is
or
will
be
worse
than
expected.
When
events
or
changes
in
circumstances indicate
that the carrying amount may
not be recoverable,
an impairment loss is recognized
for the amount by which
the asset’s carrying
amount exceeds its recoverable
amount. The recoverable
amount is the higher of
an asset’s fair
value less costs
to
sell
and
value
in
use.
For
the
purposes
of
assessing
impairment,
assets
are
grouped
at
the
lowest
levels
for
which
there
are
separately
identifiable
cash
flows,
where
applicable.
Non-financial
assets,
other than
goodwill, for
which an
impairment
loss was
recognized in prior reporting periods, are reviewed
for possible reversal of such impairment at
each reporting date.
Impairment losses arising from the Group’s
associates and joint ventures are determined
in accordance with this accounting policy.
2.2.9 Financial assets
Financial assets - Classification and measurement
The
Group
classifies
financial
assets
based
on
the
business
model
for
managing
those
assets
and
their
contractual
cash
flow
characteristics.
Accordingly,
financial assets
on initial
recognition
are classified
into one
of the
following
measurement categories:
amortized cost, fair value through
other comprehensive income or fair value
through profit or loss.
Purchases and
sales of
financial assets
are recognized
on trade
date, which
is the
date the
Group commits
to purchase
or sell
the
assets. Loans originated by the Group are recognized
when cash is advanced to the borrowers.
Financial Assets measured at Amortized Cost (‘AC’)
The Group classifies and measures
a financial asset at AC only
if both of the following conditions
are met and is not designated
as at
FVTPL:
(a) The
financial asset
is held within
a business model
whose objective
is to
collect contractual
cash flows
(hold-to-collect business
model) and
(b) The
contractual
terms of
the financial
asset give
rise on
specified dates
to cash
flows that
are solely
payments of
principal and
interest on the principal amount outstanding
(SPPI).
These financial
assets are
recognized initially
at fair
value plus
or minus direct
and incremental
transaction costs
and fees
received
that are attributable to the acquisition of these assets, and are subsequently measured at amortized cost, using the effective interest
rate (EIR) method (as described in note 2.2.5 above).
Interest
income, realized
gains and
losses on derecognition,
and changes
in expected
credit losses
from assets
classified at
AC, are
included in the income statement.
Financial Assets measured at Fair Value through Other
Comprehensive Income (‘FVOCI’)
The Group classifies and measures a financial asset at FVOCI only if both of the following conditions are
met and is not designated as
at FVTPL:
(a) The financial asset
is held within a
business model whose objective
is achieved by both collecting
contractual cash flows and selling
financial assets (hold-to-collect-and-sell business
model) and
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
(b) The contractual terms of the financial asset give rise on specified dates
to cash flows that are SPPI.
Financial
assets
that
meet
these
criteria
are
debt
instruments
and
are
measured
initially
at
fair
value,
plus
or
minus
direct
and
incremental transaction costs that
are attributable to the acquisition of these assets.
Subsequent
to
initial recognition,
FVOCI
debt
instruments
are
re-measured
at
fair
value
through
OCI, except
for
interest
income,
related foreign exchange gains
or losses and expected credit losses, which are recognized in the income statement.
Cumulative gains
and losses previously recognized in OCI are transferred from OCI to the income statement when the debt instrument is
derecognised.
Equity Instruments designated at FVOCI
The Group may make an irrevocable election to
designate an equity instrument at FVOCI.
This designation, if elected, is
made at initial
recognition
and on
an
instrument
by
instrument
basis.
Gains and
losses
on these
instruments,
including when
derecognized,
are
recorded
in
OCI
and
are
not
subsequently
reclassified
to
the
income
statement.
Dividends
received
are
recorded
in
the
income
statement.
Financial Assets measured at Fair Value through Profit
and Loss (“FVTPL”)
The
Group
classifies
and
measures
all
other
financial
assets
that
are
not
classified
at
AC
or
FVOCI,
at
FVTPL.
Derivative
financial
instruments
are measured
at FVTPL
with changes
in fair
value recognized
in the
income statement,
unless they
are designated
as
effective hedging instruments, where
hedge accounting requirements under IAS 39 apply (as described
in note 2.2.3 above).
Furthermore, a financial asset that meets the above conditions
to be classified at AC or FVOCI, may be irrevocably
designated by the
Group at
FVTPL at
initial recognition,
if doing
so eliminates,
or significantly
reduces an
accounting mismatch
that would
otherwise
arise.
Financial assets measured at FVTPL are initially recorded at fair value
and any unrealized gains or losses arising due to changes in fair
value are included in the income statement.
Business model and contractual characteristics assessment
The business model assessment
determines how the
Group manages a
group of assets
to generate cash
flows. That is,
whether the
Group's objective
is solely
to collect
contractual
cash flows
from the
asset, to
realize cash
flows from
the sale
of assets,
or both to
collect contractual cash flows and cash flows
from the sale of assets. In addition, the business model is determined after aggregating
the financial assets into groups (business lines) which are managed
similarly rather than at an individual instrument’s
level.
The business
model is
determined
by the
Group’s
key
management personnel
consistently
with the
operating
model, considering
how financial assets are managed
in order to generate cash flows, the objectives
and how performance of each
portfolio is monitored
and reported and any available information
on past sales and on future sales’ strategy,
where applicable.
Accordingly,
in making
the above
assessment, the
Group
will consider
a number
of factors
including the
risks associated
with the
performance of
the business model
and how those
risks are evaluated
and managed, the
related personnel
compensation, and the
frequency, volume
and reasons of past sales, as well as expectations about future
sales activity.
Types of business models
The Group’s business
models fall into three categories, which
are indicative of the key strategies
used to generate returns.
The
hold-to-collect
(HTC)
business model
has the
objective
to
hold
the financial
assets in
order
to
collect contractual
cash flows.
Financial
assets
classified
within
this
business
model
include
investment
securities,
due
from
banks
and
loans
and
advances
to
customers
including securitization
notes issued
by special
purpose entities
established
by the
Group
and recognized
in its
balance
sheet, which are measured
at amortized cost. Sales
within this model are monitored
per financial asset class and may
be performed
for reasons which are not inconsistent with this
business model. More specifically, sales of financial
assets due to credit deterioration,
as well as sales close to the maturity are considered consistent with the objective of hold-to-collect contractual cash flows regardless
of value
and frequency.
Sales for
other
reasons
may
be consistent
with the
HTC
model such
as liquidity
needs in
any
stress
case
scenario
or
sales
made
to
manage
high
concentration
level
of
credit
risk.
Such
sales
are
monitored
and
assessed
depending
on
frequency and value to conclude whether they are
consistent with the HTC model.
The
hold-to-collect-and-sell
business
model
(HTC&S)
has
the
objective
both
to
collect
contractual
cash
flows
and
sell
the
assets.
Activities such as liquidity management, interest
yield and duration are consistent with this
business model, while sales of assets are
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
integral to
achieving the objectives
of this business
model. Financial assets
classified within this
business model include
investment
securities which are measured at FVOCI, subject to meeting the SPPI assessment
criteria.
Other business models
include financial assets
which are managed
and evaluated
on a fair
value basis as
well as portfolios
that are
held for trading. This is a residual category for financial assets not meeting the criteria of the business models of
HTC or HTC&S, while
the collection of contractual cash flows may
be incidental to achieving the business models’ objective.
The Group’s
business models
are
reassessed
at
least
annually or
earlier,
if there
is a
sales’ assessment
trigger or
if there
are
any
changes in the Bank’s strategy
and main activities, as evidenced by the Bank’s
business plan, budget and NPE strategy.
Cash flow characteristics assessment
For a
financial asset
to be
measured at
AC or
FVOCI, its
contractual
terms must
give rise
on specified
dates to
cash flows
that
are
solely payments of principal
and interest (SPPI)
on the principal amount outstanding.
For the purpose of this
assessment principal is
defined as the
fair value of
the asset at
initial recognition and
interest as
the consideration
for the time
value of money,
credit risk,
other basic lending risks and a profit margin.
More
specifically,
at
initial
recognition
of
a financial
asset,
an
assessment
is performed
of whether
the
financial
asset
contains
a
contractual term that
could change the amount or timing
of contractual cash flows
in a way that it would
not be consistent with the
above
condition.
The
Group
considers
the
existence
of
various
features,
including
among
others,
contractually
linked
terms,
prepayment
terms,
deferred
interest-free
payments,
extension
and
equity
conversion
options,
terms
that
introduce
leverage
including index linked payments, as well
as environmental, social and governance linked features (ESG)
where the contractual interest
rate
is
adjusted
if
the
borrower
meets,
or
fail
to
meet
specific
sustainability
performance
targets.
Where
the
contractual
terms
introduce exposure to risk or volatility that are
inconsistent with a basic lending
arrangement, the related financial asset is considered
to have failed the SPPI assessment and will be measured
at FVTPL.
In addition, if a contractual feature could have an effect that is de-minimis on the contractual cash flows of the financial asset, it does
not affect
its classification. Moreover,
a contractual
feature is considered
as not genuine by
the Group, if
it affects
the instrument’s
contractual cash flows
only on the occurrence of an event
that is extremely rare,
highly abnormal and very unlikely
to occur.
In such
a case, it does not affect the instrument’s
classification.
Moreover,
for the securitization
notes issued by special
purpose entities and held
by the Group, the
cash flow characteristics
of the
notes and the
underlying pool of financial
assets as well
as the credit
risk inherent in
each securitization’s
tranche compared
to the
credit risk of all of the underlying pool of financial assets, are considered.
In case of
special lending arrangements such
as non-recourse loans,
in its assessment
of the SPPI
criterion, the Group considers
various
factors
such
as
the
nature
of
the
borrower
and
its
business,
the
pricing
of
the
loans,
whether
it
participates
in
the
economic
performance of the
underlying asset and
the extent to
which the collateral
represents all
or a substantial
portion of the borrower’s
assets. Moreover,
for non-recourse
loans, the Group
takes into
consideration the
borrower’s adequacy
of loss absorbing
capital by
assessing jointly the criteria of equity
sufficiency, Loan to
Value ratio (LTV),
the Average Debt Service Coverage
ratio (ADSCR) as well
as the existence of corporate
and personal guarantees.
In certain cases when
the time value of
money element is modified
in that the financial
asset’s interest
rate is periodically
reset but
the reset frequency
does not match
the tenor of
the interest
rate or when
a financial asset’s
interest rate
is periodically reset
to an
average of particular short-term and long-term
interest rates, a quantitative assessment is
performed (the “Benchmark Test”) in order
to determine whether the contractual cash
flows are SPPI.
In particular,
the Group
assesses the contractual
cash flows
of the “real
instrument”,
whose interest
rate is
reset with
a frequency
that does not match
the tenor of the
interest rate, and those of
the “benchmark instrument”, which are identical in
all respects except
that the tenor of the
interest rate
matches exactly the
interest period.
If the undiscounted cash
flows of the former
are significantly
different
from the
benchmark cash
flows due
to the
modified time value
of money
element, the
financial asset
does not
meet the
SPPI criterion. In its assessment, the Group considers
both the effect of the modified time value of money element
in each reporting
period
and
cumulatively
over
the
life
of
the
instrument.
This
is
done,
as
far
as
the
lifetime
of
the
instrument
is
concerned,
by
comparing
the
cumulative
projected
undiscounted
cash
flows
of
the
real
and the
benchmark
instrument,
and
for
each
quarterly
reporting period,
by comparing
the projected
undiscounted
cash flows
of the
two instruments
for that
quarterly reporting
period,
based on predefined thresholds.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The Group performs the SPPI assessment for its
lending exposures on a product basis for the
retail and part of the wholesale portfolio
where
contracts
are
of
standardized
form,
whereas
for
the
remaining
wholesale
portfolio,
securitization
notes
issued
by
special
purpose
entities,
either
established
by
the
Group
or
third
parties,
and
held
by
the
Group,
and
debt
securities
the
assessment
is
performed on an individual basis.
Derecognition of financial assets
The
Group
derecognizes
a
financial
asset
when
its
contractual
cash
flows
expire,
or
the
rights
to
receive
those
cash
flows
are
transferred in an outright sale in which substantially all risks and rewards of ownership have
been transferred. In addition, a financial
asset is derecognized
even if rights
to receive cash
flows are retained
but at the same
time the Group
assumes an obligation
to pay
the received cash flows without a material delay (pass through agreement) or when substantially all
the risks and rewards are neither
transferred
nor retained
but the Group
has transferred
control of
the asset. Control
is transferred
if, and
only if,
the transferee
has
the practical ability to sell
the asset in its entirety to
unrelated third party and is able to
exercise that ability unilaterally
and without
imposing additional restrictions on the transfer.
The main transactions that are subject to the above de-recognition
rules are securitization transactions, repurchase
agreements and
stock lending
transactions. In
the case of
securitization transactions,
in order
to assess the
application of
the above
mentioned de-
recognition
principles,
the
Group
considers
the
structure
of
each
securitization
transaction
including
its
exposure
to
the
more
subordinated
tranches
of
the
notes
issued
and/or
credit
enhancements
provided
to
the
special
purpose
entities,
as
well
as
the
securitization’s contractual
terms that may indicate that the Group retains control of the underlying assets. In the case of repurchase
transactions and stock lending, the assets transferred
are not derecognised since the terms of the transaction
entail the retention of
all their risks and rewards.
On derecognition of
a financial asset,
the difference
between the carrying
amount of the
asset and the sum
of (i) the consideration
received
(including
any
new
asset
obtained
less
any
new
liability
assumed)
and
(ii)
any
cumulative
gain
or
loss
that
had
been
recognized
in OCI
for
financial assets
at FVOCI,
is recognized
in income
statement,
except
for
cumulative
gains or
losses of
FVOCI
equity instruments which are not reclassified from OCI to
income statement at the date of
derecognition.
Modification of financial assets that may result in derecognition
In addition,
derecognition of
financial asset
arises when
its contractual
cash flows
are modified
and the
modification is
considered
substantial
enough
so
that
the
original
asset
is derecognized
and
a new
one
is
recognised.
Substantial
modifications
resulting
in
derecognition
may include
among others
change in
borrower,
change in
the asset’s
denomination
currency,
debt consolidation
of
unsecured exposure into a single new secured asset. The Group records the modified asset as a ‘new’ financial asset at fair value plus
any eligible transaction costs and the difference
with the carrying amount of the existing one is recorded in the income statement
as
derecognition gain or loss.
The Group may
modify the contractual
terms of a lending exposure
either as a concession granted
to a client facing
or that is about
to
face
financial
difficulties
or
due
to
other
commercial
reasons
such
as
changes
in
market
conditions,
competition
or
customer
retention.
In addition,
the Group
may occasionally
enter,
in the
context
of loans’
modifications, into
debt-for-equity
transactions.
These are
transactions where the terms of a lending exposure
are renegotiated and as a result,
the borrower issues equity instruments (voting
or no
voting) in
order to
extinguish part
or all
of its
financial liability
to the
Group. Such
transactions
may include
also exercise
of
conversion rights embedded into
convertible or exchangeable bonds
and enforcement of shares held as collateral.
In debt-for-equity transactions, the
modified loan is derecognized while the
equity instruments received in
exchange are recognized
at their fair value, with any resulting gain
or loss recognized in the Group’s
income statement.
2.2.10 Reclassifications of financial assets
The Group reclassifies a financial
asset only when it changes its business
model for managing financial assets. Generally,
a change in
the business model is expected to be rare and occurs when the Group either begins or ceases to perform an activity that is significant
to its operations; for
example, when a business
line is acquired, disposed of or
terminated. In the rare
event when there is
a change
to the existing business
models, the updated assessment
is approved by the Group’s
competent Committees and
the amendment is
reflected appropriately in the Group’s
budget and business plan.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Changes
in intention
related
to particular
financial assets
(even in
circumstances
of significant
changes in
market
conditions), the
temporary disappearance of
a particular market for
financial assets or a transfer
of financial assets between parts of the
Group with
different business models, are not
considered by the Group changes in business model.
The reclassification
is applied
prospectively
from the
reclassification
date,
therefore
previously
recognized
gains,
losses (including
impairment losses) or interest are not restated.
2.2.11 Financial liabilities
Financial liabilities - Classification and measurement
The Group
classifies its
financial liabilities
in the
following
categories: financial
liabilities measured
at amortized
cost and
financial
liabilities measured at fair-value-through
-profit-or-loss (FVTPL).
Financial liabilities at FVTPL comprise two sub categories: financial
liabilities held for trading and financial liabilities designated at fair-
value-through-profit-or-loss upon
initial recognition.
Financial liabilities
held for
trading, which
include short positions
of debt
securities (sold but
not yet
purchased), are
liabilities that
the Group
incurs principally
for
the purpose
of repurchasing
in the
near term
for
short term
profit
or in
the context
of economic
hedging strategies of groups of assets
and/or liabilities or net positions for which hedge accounting
is not applied.
Additionally,
the Group
may also,
at initial
recognition,
irrevocably designate
financial liabilities
at fair-value
-through-profit-or-loss
when certain criteria are met.
Financial liabilities held for trading or designated at FVTPL are initially recognized at fair value. Changes in fair value are recognized
in
the income statement, except
for changes in the fair value of liabilities designated
at fair-value-through-profit
-or-loss attributable to
changes in the
Group’s
own credit risk,
which are recognised
in OCI and
are not subsequently
reclassified to
the income statement
upon derecognition of the
liabilities. However, if such treatment creates or
enlarges an accounting mismatch
in the income
statement,
all gains or losses of this financial liability,
including the effects of changes in the credit risk, are recognized
in the income statement.
Derecognition of financial liabilities
A
financial
liability
is
derecognized
when
the
obligation
under
the
liability
is
discharged,
cancelled
or
expires.
When
an
existing
financial liability of the Group is replaced by another from the same counterparty on substantially different
terms, or the terms of an
existing liability are
substantially modified,
such an exchange
or modification is
treated as
an extinguishment of
the original liability
and the recognition of a new liability and any difference
arising is recognized in the income statement.
The Group considers
the terms to be
substantially different,
if the discounted present
value of the cash
flows under the new
terms,
including any fees paid net of any fees received and discounted using the original effective interest rate, is at least 10% different from
the discounted present value of the remaining
cash flows of the original financial liability.
If an
exchange
of debt
instruments
or modification
of terms
is accounted
for as
an extinguishment,
any costs
or fees
incurred are
recognized as part of
the gain or
loss on
the extinguishment. If
the exchange or modification
is not
accounted for as an
extinguishment,
any
costs
or fees
incurred
adjust the
carrying amount
of the
liability and
are amortized
over the
remaining
term
of the
modified
liability.
Similarly,
when
the
Group
repurchases
any
debt
instruments
issued
by
the
Group,
it
accounts
for
such
transactions
as
an
extinguishment of debt.
2.2.12 Fair value measurement of financial instruments
Fair
value
of
financial
instruments
is the
price
that
would
be received
to
sell
an
asset
or paid
to
transfer
a liability
in
an
orderly
transaction between market participants at the measurement date under
current market conditions in the principal
or, in its absence,
the most advantageous
market to
which the Group
has access at
that date.
The fair value
of a liability
reflects its non-performance
risk.
When available, the
Group measures the fair
value of an instrument
using the quoted price
in an active market
for that instrument.
A market
is regarded
as active
if transactions
for
the asset
or liability
take
place with
sufficient
frequency and
volume to
provide
pricing
information
on
an
ongoing
basis.
If
there
is
no
quoted
price
in
an
active
market,
then
the
Group
uses
other
valuation
Notes to the Consolidated Financial Statements
.
26
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31 December 2024 Consolidated Financial Statements
techniques that maximize
the use of relevant
observable inputs and minimize
the use of unobservable
inputs. The chosen valuation
technique incorporates all of the factors
that market participants would take
into account in pricing a transaction.
The Group has elected to use mid-market pricing as
a practical expedient for fair
value measurements within a bid-ask spread.
The best evidence
of the fair value
of a financial instrument
at initial recognition
is normally the transaction
price, i.e. the fair
value
of the consideration given
or received unless
the Group determines
that the fair
value at initial
recognition differs from the transaction
price. In this case,
if the fair value is evidenced
by a quoted price in
an active market for an identical asset
or liability (i.e. Level 1 input)
or based on
a valuation
technique that
uses only data
from observable
markets, a
day one
gain or
loss is recognized
in the
income
statement.
On the
other hand,
if the
fair value
is evidenced
by a
valuation
technique that
uses unobservable
inputs, the
financial
instrument
is initially
measured at
fair value,
adjusted to
defer the
difference
between the
fair value
at initial
recognition and
the
transaction price (day
one gain or
loss). Subsequently the
deferred gain
or loss is amortized
on an appropriate
basis over the
life of
the instrument or released
earlier if a quoted
price in an active market
or observable market
data become available
or the financial
instrument is closed out.
All assets and liabilities for
which fair value is measured
or disclosed in the financial statements
are categorized
within the fair value
hierarchy based on the lowest
level input that is significant to the fair value
measurement as a whole.
For assets and
liabilities that are
measured at fair
value on a
recurring basis, the
Group recognizes
transfers
into and out
of the fair
value hierarchy levels at
the beginning of the quarter in which a financial instrument's transfer
was effected.
2.2.13 Impairment of financial assets
The
Group
recognizes
allowance
for
expected
credit
losses
(ECL)
that
reflect
changes
in
credit
quality
since initial
recognition
to
financial assets that are measured
at AC and FVOCI, including
loans, securitization notes issued by special
purpose entities established
by the Group, lease
receivables, debt securities, as well
as
financial guarantee contracts and loan
commitments. ECL are a probability-
weighted average estimate of credit losses that reflects the time value of money. Upon initial recognition of the financial instruments
in scope of the impairment policy,
the Group records a
loss allowance equal to 12-month ECL,
being the ECL that result from default
events
that
are
possible
within
the
next
twelve
months.
Subsequently,
for
those
financial
instruments
that
have
experienced
a
significant
increase
in
credit
risk
(SICR) since
initial
recognition,
a loss
allowance
equal
to
lifetime
ECL
is recognized,
arising
from
default
events
that are
possible over
the expected
life
of the
instrument.
If upon
initial recognition,
the financial
asset meets
the
definition of purchased or originated credit
impaired (POCI), the loss allowance is based on the change in
the ECL over the life of the
asset.
Loss allowances for
trade receivables
are always
measured at an
amount equal to
lifetime ECL. For
all other financial assets
subject
to impairment, the general three-stage
approach applies.
Accordingly,
ECL are recognized using a three-stage
approach based on the extent of credit deterioration
since origination:
•
Stage 1
– When
there is
no significant
increase in
credit risk
since initial
recognition of
a financial
instrument, an
amount
equal to 12-month ECL is
recorded. The 12 – month
ECL represent a portion of
lifetime losses, that result from default events
that are
possible within the
next 12
months after
the reporting
date and
is equal to
the expected
cash shortfalls
over the
life of the instrument
or group of instruments, due
to loss events probable
within the next 12 months.
Not credit-impaired
financial
assets
that
are
either
newly
originated
or
purchased,
as
well
as
assets
recognized
following
a
substantial
modification accounted for as a derecognition,
are classified initially in Stage 1.
•
Stage 2 – When
a financial instrument
experiences a SICR subsequent
to origination but
is not considered
to be in default,
it is included
in Stage 2.
Lifetime ECL
represent the
expected credit
losses that result
from all possible
default events
over
the expected life of the financial instrument.
•
Stage
3
–
Financial
instruments
that
are
considered
to
be
in
default
are
included
in
this
stage.
Similar
to
Stage
2,
the
allowance for credit losses captures
the lifetime expected credit losses.
•
POCI
-
Purchased
or
originated
credit
impaired
(POCI)
assets
are
financial
assets
that
are
credit
impaired
on
initial
recognition. They are not subject
to stage allocation and are always measured on
the basis of lifetime
expected credit losses.
Accordingly,
ECL are only recognized
to the extent that
there is a subsequent change
in the assets’ lifetime expected
credit
losses.
Any
subsequent
favorable
change
to
their
expected
cash
flows
is
recognized
as
impairment
gain
in
the
income
statement
even
if
the
resulting
expected
cash
flows
exceed
the
estimated
cash
flows
at
initial
recognition.
Apart
from
purchased
assets
directly
from
the
market
or
through
a
business
combination,
POCI
assets
may
also
include
financial
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
instruments
that
are
considered
new
assets,
following
a
substantial
modification
accounted
for
as
a
derecognition
(see
section 2.2.9).
Definition of default
To determine the risk of default, the
Group applies a
default definition for accounting purposes, which
is consistent with the
European
Banking Authority
(EBA) definition
for non-performing
exposure
and regulatory
definition of
default
as applied
by the
Group on
1
January 2021 (refer
to note
5.2.1.2 (a)). The
accounting definition
of default
is also consistent
with the
one used for
internal credit
risk management purposes.
A financial asset
is credit-impaired
when one or
more events
that have
a detrimental
impact on the
estimated future
cash flows
of
that exposure have occurred:
•
The borrower faces a significant difficulty
in meeting his financial obligations.
•
There has been a breach of contract,
such as a default or unpaid amounts, above specified materiality
thresholds, for more
than 90 consecutive days.
•
The Group, for
economic or contractual
reasons relating to
the borrower’s financial
difficulty,
has granted to
the borrower
a concession(s) that the Group would not otherwise consider.
•
There is a probability that the borrower
will enter bankruptcy or other financial re-organization.
•
For POCI
financial assets,
a purchase
or origination
at a
deep discount
that reflects
incurred credit
losses is
considered a
detrimental
event. The
Group assesses
the deep
discount criterion
following a
principle -based
approach with
the aim
to
incorporate
all
reasonable
and
supportable
information
which
reflects
market
conditions
that
exist
at
the
time
of
the
assessment.
For debt securities, the Group determines the risk of default using an internal credit rating scale. The Group considers debt securities
as credit impaired if the internal rating of the issuer/counterparty
corresponds to a rating equivalent to "C" (Moody's ratin
g
scale) or
the external rating of the issuer/counterparty at
the reporting date is equivalent to “C” (Moody’s rating scale) and the internal rating
is not available.
Significant increase in credit risk (SICR) and staging allocation
Determining whether a loss
allowance should be based
on 12-month expected credit losses
or lifetime expected credit losses
depends
on whether
there has been
a significant
increase in credit
risk (SICR) of
the financial assets,
issued loan commitments
and financial
guarantee contracts,
since initial recognition.
At each reporting date, the Group performs an assessment as to whether
the risk of a default occurring over the remaining expected
lifetime of the exposure has increased significantly from the expected
risk of a default estimated at origination for
that point in time.
The
assessment
for
SICR
is
performed
using
both
qualitative
and
quantitative
criteria
based
on
reasonable
and
supportable
information
that is
available
without undue
cost or
effort
including forward
looking information
and macroeconomic
scenarios as
well as historical experience. Furthermore, regardless
of the outcome of the SICR assessment based on the above triggers, the credit
risk of a financial asset is deemed to have increased significantly
when contractual payments are more
than 30 days past due.
As a primary criterion
for SICR assessment, the Group compares
the residual lifetime probability of default (PD) at
each reporting date
to the residual lifetime PD for the same point
in time which was expected at the origination.
The Group
may also consider
as a SICR
trigger when the
residual lifetime
PD at each
reporting date
exceeds certain
predetermined
values. The criterion may be applied in order to
capture cases where the relative
PD comparison does not result to the identification
of SICR although the absolute value of PD is at levels which
are considered high based on the Group’s
risk appetite framework.
Internal credit risk rating
(on a borrower basis) is also used
as a basis for the identification
of SICR with regards to
lending exposures
of the
Wholesale portfolio.
Specifically,
the Group
takes
into consideration
the changes
of internal
ratings
by a
certain number
of
notches. In
addition, a watchlist
status is
also considered
by the Group
as a trigger
for SICR
identification. Internal
credit risk rating
models include borrower specific
information as well as, forward-looking information regarding the prospects
of the industry in
which
it operates. For securitization notes issued by special purpose entities established by the Group, the SICR assessment is performed by
considering
the
performance
of
the
underlying
assets,
where
the
level
of
their
expected
cash
flows
is
compared
to
the
carrying
Notes to the Consolidated Financial Statements
.
28
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31 December 2024 Consolidated Financial Statements
amount of the securitized notes.
In addition, the assessment of SICR for
debt securities is performed on an individual
basis based on
the number of notches downgrade in the internal
credit rating scale since the origination date.
Forbearance measures as monitored by the
Group are considered as a SICR trigger and thus the exposures are
allocated into Stage 2
upon
forbearance,
unless
they
are
considered
credit-impaired
or
the
net
present
value
of
their
cash
flows
before
and
after
the
restructuring exceed the threshold of 1%, in which cases they are classified
as Stage 3. Furthermore, regardless of the outcome of the
SICR
assessment
based
on
the
above
triggers,
the
credit
risk
of
a
financial
asset
is
deemed
to
have
increased
significantly
when
contractual payments are
more than 30 days past due.
Furthermore,
Management
may
apply
temporary
collective
adjustments
when
determining
whether
credit
risk
has
increased
significantly since initial
recognition on exposures
that share the same
credit risk characteristics
to reflect macro-economic
or other
factors which are
not adequately addressed by the
current credit risk models. These factors
may depend on information
such as the
type of the
exposure, counterparty’s
specific information
and the characteristics
of the financial instrument,
while their application
requires the application of significant judgment.
Transfers from Stage
2 to Stage 1
A financial asset,
which is classified to
Stage 2 due
to Significant
Increase in Credit
Risk (SICR), is reclassified
to Stage 1,
as long as
it
does not meet anymore any of the Stage 2 Criteria.
Where forbearance measures have been applied, the Group uses a probation period of two years,
in order to fulfill the requirements
for
a transfer
back to
Stage
1. If
at
the end
of that
period
the borrowers
have
made regular
payments
of
a significant
aggregate
amount, there are
no past due amounts
over 30 days and
the loans are neither credit
impaired, nor any other
SICR criteria are met,
they exit forborne status and are
classified as stage 1.
Transfers from Stage
3 to Stage 2
A financial
asset is
transferred
from Stage
3 to
Stage 2,
when the
criteria based
on which
the financial
asset was
characterized
as
credit impaired
are no
longer valid
and the
applicable probation
period for
the assets’
return in
non impaired
status, ranging
from
three to twelve months, has passed.
Criteria for grouping of exposures based on shared credit risk characteristics
The assessment
of loss allowance
is performed
either on an
individual basis or
on a collective
basis for
groups of similar
items with
homogeneous
credit
risk
characteristics.
The
Group
applies
the
same
principles
for
assessing
SICR
since
initial
recognition
when
estimating ECL on a collective or on an individual basis.
The
Group
segments
its
lending
exposures
on
the
basis
of
shared
credit
risk
characteristics
for
the
purposes
of
both
assessing
significant
increase
in
credit
risk
and
measuring
loan
loss
allowance
on
a collective
basis.
The
different
segments
aim to
capture
differences in PDs and in the rates
of recovery in the event of default.
The
shared
credit
risk
characteristics
used
for
the segmentation
of
exposures
include
several
elements
such
as: instrument
type,
portfolio
type,
asset
class,
product
type,
industry,
originating
entity,
credit
risk
rating,
remaining
term
to
maturity,
geographical
location of the borrower,
value of collateral to the financial asset, forbearance
status and days in arrears.
The Group
identifies individually
significant exposures
and performs
the ECL measurement
based on borrower
specific information
for both
retail and
wholesale portfolios.
This measurement
is performed
at a
borrower level,
hence the
criteria are
defined at
this
level, while both qualitative and quantitative
factors are taken
into consideration including forward
looking information.
For
the
remaining
retail
and
wholesale
exposures,
ECL
are
measured
on
a
collective
basis.
This
incorporates
borrower
specific
information,
collective historical
experience of
losses and
forward-looking information.
For debt
securities and
securitization notes
issued by
special purpose
entities established
by the
Group, the
measurement of
impairment losses
is performed
on an
individual
basis.
Measurement of Expected Credit Losses
The measurement of ECL is an unbiased probability-weighted average estimate of credit losses that reflects the time value of money,
determined by
evaluating a
range of
possible outcomes.
A credit
loss is
the difference
between the
cash flows
that are
due to
the
Group in
accordance with
the contractual
terms of
the instrument
and the
cash flows
that the
Group
expects to
receive (i.e.
cash
shortfalls)
discounted
at
the
original
effective
interest
rate
(EIR)
of
the
same
instrument,
or
the
credit-adjusted
EIR
in
case
of
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
purchased
or
originated
credit
impaired
assets
(POCI).
In
measuring
ECL,
information
about
past
events,
current
conditions
and
reasonable
and
supportable
forecasts
of
future
conditions
are
considered.
For
undrawn
commitments,
ECL
are
calculated
as
the
present value
of the difference
between the contractual
cash flows due if
the commitment was
drawn and the
cash flows expected
to be received, while for financial guarantees ECL are measured
as the expected payments to reimburse the holder less any amounts
that the Group expects to receive.
The Group
estimates expected
cash shortfalls,
which reflect
the cash
flows expected
from all
possible sources,
including collateral,
guarantees
and other
credit enhancements
that are
part of
the contractual
terms and
are not
recognized
separately.
In case
of a
collateralized financial instrument,
the estimated expected cash flows related
to the collateral reflect the amount
and timing of cash
flows
that
are
expected
from
liquidation
less the
discounted
costs
of obtaining
and selling
the collateral,
irrespective
of
whether
liquidation is probable.
ECL are calculated
over the maximum contractual
period over which the
Group is exposed
to credit risk,
which is determined based
on the
substantive
terms of
the instrument,
or in
case of
revolving credit
facilities, by
taking into
consideration factors
such as
the
Group’s expected
credit risk management actions to mitigate
credit risk and past practice.
Receivables from customers arising from the Group’s activities other than lending, are presented under Other
Assets and are typically
short term. Therefore, considering that usually
there is no
significant financing component, the
loss allowance for such
financial assets
is measured at an amount equal to the lifetime expected
credit losses under the simplified approach.
ECL Key Inputs
The ECL calculations are based on the term structures
of the probability of default (PD), the loss given default
(LGD), the exposure at
default (EAD) and
other input parameters
such as the credit conversion
factor (CCF) and the
prepayment rate.
Generally,
the Group
derives these parameters from internally
developed statistical models and observed point
-in-time and historical data, leveraging the
existing infrastructure development
for the regulatory framework
and risk management practices.
The PD
represents the
likelihood of
default assessed
on the
prevailing economic
conditions at
the reporting
date, adjusted
to take
into account estimates of future economic
conditions that are likely to impact the
risk of default, over a given time horizon.
The Group uses Point in Time (PiT) PDs in order to remove any bias towards historical data thus aiming to reflect management’s
view
of the future as at the reporting date, incorporating
relevant forward looking information
including macroeconomic scenarios.
Two types of PD are used for
calculating ECL:
•
12-month PD, which
is the estimated probability
of default occurring within the
next 12 months (or over
the remaining life
of the financial asset if this is less than 12 months). It is used to calculate 12-month
ECL for Stage 1 exposures.
•
Lifetime PD, which is the estimated probability
of a default occurring over the remaining life of the financial asset. It is used
to calculate lifetime ECL for
Stage 2, Stage 3 and POCI exposures.
For debt securities,
PDs are obtained
by an international
rating agency using
risk methodologies that
maximize the use
of objective
non-judgmental variables and market data. The Group assigns internal credit ratings to each issuer/counterparty based on these PDs.
In case of counterparties for which no information
is available, the Group assigns PDs which are derived from
internal models.
The Exposure
at default
(EAD) is an
estimate of
the exposure
at a
future default
date, taking
into account
expected changes
in the
exposure after
the reporting date,
including repayments
of principal and interest
and expected drawdowns
on committed facilities.
The EAD includes both on and off balance sheet exposures. The on balance sheet exposure corresponds
to the total amount that has
been withdrawn and is due to be paid, which includes the outstanding
principal, accrued interest and any past
due amounts. The off
balance sheet exposure represents the credit
that is available to be withdrawn,
in excess of the on balance sheet exposure.
Furthermore, the CCF factor is used to
convert the amount of a credit facility and
other off-balance sheet amounts to an
EAD amount.
It is a modelled assumption
which represents a proportion
of any undrawn
exposure that is expected
to be drawn
prior to a default
event occurring.
In
addition,
the
prepayment
rate
is
an
estimate
of
early
prepayments
on
loan
exposure
in
excess
of
the
contractual
repayment
according to the repayment schedule and is expressed as a percentage applied to the EAD at each period, reducing the latter amount
accordingly.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
LGD represents the Group's expectation of the extent of loss on a
defaulted exposure and it is the difference between the contractual
cash flows due and
those that the Group
expects to receive including
any amounts from
collateral liquidation.
LGD varies by type
of
counterparty,
type and seniority of claim, availability of collateral or other credit support, and is usually expressed as a percentage of
EAD. The Group distinguishes
its loan portfolios into two
broad categories i.e. secured
and unsecured. The Group estimates
the LGD
component
using
cure
rates
that
reflect
cash
recoveries,
estimated
proceeds
from
collateral
liquidation,
estimates
for
timing
realization,
realization
costs,
etc.
Where
the
LGD’s
component
values
are
dependent
on
macro
–
economic
data,
such
types
of
dependencies are reflected by incorporating forward looking information, such as
forecasted price indices into the respective models.
The
estimation
of
the
aforementioned
component
values
within
LGD
reflects
available
historical
data
which
cover
a
reasonable
period, i.e. a full economic cycle.
For
debt
securities,
the
LGD
is
typically
based
on
historical
data
derived
mainly
from
rating
agencies’
studies
but
may
also
be
determined considering the existing and expected
liabilities structure of the obligor and macroeconomic environment.
Furthermore, the
seniority of
the debt
security,
any potential
collaterals
by the
obligor or
any other
type of
coverage is
taken
into
account for the calculation.
Forward-looking information
The
measurement
of
expected
credit
losses
for
each
stage
and
the
assessment
of
significant
increases
in
credit
risk
consider
information
about
reasonable
and
supportable
forecasts
of
future
events
and
macroeconomic
conditions.
The
estimation
and
application of forward-looking information
requires significant judgment.
The Group uses three macroeconomic scenarios (i.e. base, adverse and optimistic) to achieve the objective of
measuring ECL in a way
that reflects an unbiased and probability weighted outcome.
The baseline scenario represents the most likely scenario and is aligned
with the information used by the Group for
strategic planning and budgeting purposes.
The scenarios
are reflected
in the
risk parameters,
and, namely
12-month PD,
Lifetime PD
and LGD,
hence 3
sets of
each of
these
parameters are used, in line with the scenarios developed.
The Group then
proceeds to the
calculation of weights
for each scenario,
which represent
the probability of
occurrence for each
of
these
scenarios.
These
weights
are
applied
on
the
3 sets
of
calculations
of
the
parameters
in order
to
produce
a single
scenario
weighted
risk
parameter
value
which
is
subsequently
used
in
both
SICR
assessment
and
ECL
measurement.
ECL
calculation
incorporates
forward-looking
macroeconomic
variables,
including
GDP
growth
rates,
house
price
indices,
unemployment
rates,
interest
rates,
inflation,
etc.
In order
to
capture
material
non –
linearities
in the
ECL model,
in the
case of
individually
significant
exposures, the
Group considers
the relevance
of forward
looking information
to each
specific group
of borrowers
primarily on
the
basis of the business sector they belong and other drivers of credit risk
(if any).
Modified Financial Assets
In
cases
where
the
contractual
cash
flows
of
a financial
asset have
been
modified
and the
modification
is considered
substantial
enough (for the
triggers of derecognition,
refer to
Derecognition of Financial
assets in section 2.2.9
above), the modificati
on date is
considered
to
be
the
date
of
initial
recognition
for
impairment
calculation
purposes,
including
for
the
purposes
of
determining
whether a significant increase in credit risk has occurred. Such a modified asset is typically classified as Stage
1 for ECL measurement
purposes. However,
in some circumstances following a modification that results in derecognition of the original financial asset, there
may be evidence that the new financial asset is credit-impaired
at initial recognition, and thus, the financial asset is recognized
as an
originated credit-impaired financial asset (POCI).
In cases where the contractual
cash flows of a financial asset
have been modified and the
modification is not considered
substantial
enough, the Group recalculates the
gross carrying amount of the financial asset and
recognizes the difference
as a modification gain
or loss in the
income statement
and determines if
the financial asset’s
credit risk has
increased significantly
since initial recognition
by comparing the risk
of a default occurring
at initial recognition based
on the original unmodified contractual
terms and the risk
of
a default occurring at the reporting date, based
on the modified contractual terms.
Presentation of impairment allowance
For financial assets measured
at amortized cost, impairment
allowance is recognized as
a loss allowance reducing the
gross carrying
amount of the financial assets in the balance sheet. For debt instruments measured at
FVOCI, impairment allowance is recognized in
other comprehensive income and does not reduce the carrying amount of the debt instruments in the balance sheet. For off-balance
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
sheet financial items arising from lending activities, impairment allowance is presented in Other Liabilities. The respective ECL for the
above financial items is recognised within impairment
losses.
Write-off of financial assets
Where the
Group
has no
reasonable
expectations
of recovering
a financial
asset either
in its
entirety
or a
portion of
it, the
gross
carrying amount of that instrument is reduced directly,
partially or in full, against the impairment allowance. The amount written-off
is considered
as derecognized.
Subsequent
recoveries
of amounts
previously
written
off decrease
the amount
of the
impairment
losses in the income statement.
Financial assets that
are written
off could
still be subject
to enforcement
activities in order
to comply with
the Group’s
procedures
for recovery of amounts due.
2.2.14 Sale and repurchase agreements, securities lending and borrowing
(i) Sale and repurchase agreements
Securities sold subject to repurchase
agreements (repos) continue
to be recorded in the
Group's Balance Sheet as the Group
retains
substantially all risks
and rewards of
ownership, while the
liability to the counterparty
is included in amounts
due to other banks
or
due to customers, as
appropriate, and measured at
amortized cost. Securities purchased
under agreements to resell (reverse
repos)
are recorded
as loans
and advances
to other
banks or
customers, as
appropriate,
and measured
at amortized
cost. The
difference
between the
sale and repurchase
price in case
of repos
and the purchase
and resale
price in case
of reverse
repos is
recognized
as
interest and accrued over the period of the repo
or reverse repo agreements using the effective
interest method. .
(ii) Securities lending and borrowing
Securities lent to
counterparties against the receipt of
a fee continue to
be recognized in the
financial statements. Securities borrowed
are
recognized
as trading
liabilities when
sold to
third parties
and measured
at fair
value with
any
gains or
losses included
in the
income statement.
2.2.15 Leases
T
he Group enters into leases either
as a lessee or as a lessor.
At inception of a contract, the Group
assesses whether a contract is, or
contains, a lease.
(i) Accounting for leases as lessee
When the
Group
becomes the
lessee in
a lease
arrangement,
it recognizes
a lease
liability and
a corresponding
right-of-use
(RoU)
asset at the commencement of the lease term when the Group acquires
control of the physical use of the asset.
Lease liabilities are presented within Other liabilities and RoU assets within Property
and equipment and investment property.
Lease
liabilities are measured based on
the present value of
the future lease
payments over the lease term,
discounted using an incremental
borrowing rate. The interest
expense on lease liabilities is presented within net interest
income.
The lease liability is remeasured when there is a
change in future lease payments
arising from a change in an index or rate,
a change
in the Group’s estimate of
the amount expected to
be payable under a
residual value guarantee or if
the Group changes its
assessment
of
whether
it
will
exercise
a
purchase,
extension
or
termination
option.
When
the
lease
liability
is
remeasured
in
this
way,
a
corresponding
adjustment
is made
to the
carrying amount
of the
right-of-use
asset, or
is recorded
in profit
or loss
if the
carrying
amount of the right-of-use asset has been reduced to zero.
The RoU asset
is initially recorded
at an amount
equal to the lease liability
and is adjusted
for rent prepayments,
initial direct costs,
or lease incentives
received. Subsequently,
the RoU
asset is depreciated
over the
shorter of
the lease term
or the useful
life of
the
underlying asset, with the depreciation presented
within operating expenses.
When a lease
contains extension
or termination options
that the Group
considers reasonably
certain to
be exercised,
the expected
future lease payments or costs of early termination
are included within the lease payments used to calculate
the lease liability.
The Group has
elected not to
recognise right-of-use
assets and lease
liabilities for
leases of low-value
assets and short-term
leases.
The Group recognises the lease payments
associated with these leases as an expense on a straight-line basis
over the lease term.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
(ii) Accounting for leases as lessor
At inception date of the lease, the Group, acting as a lessor,
classifies each of its leases as either an operating lease or a finance lease
based on whether the lease transfers
substantially all of the risks and
rewards incidental to the
ownership of the underlying asset. If
this is the case, then the
lease is a finance lease; if not,
then it is an operating
lease. As part of this assessment,
the Group considers
certain indicators such as whether the
lease is for the major part of the economic life of the asset.
Finance leases
At commencement date,
the Group derecognizes
the carrying amount
of the underlying assets held under
finance lease, recognizes
a receivable at
an amount equal to
the net investment
in the lease and recognizes,
in income statement,
any profit or
loss from the
derecognition
of the
asset and
the recognition
of the
net investment.
The net
investment
in the
lease is
calculated as
the present
value of the future lease payments in the same way
as for the lessee.
After
commencement
date,
the
Group
recognizes
finance
income
over
the
lease
term,
based
on
a
pattern
reflecting
a
constant
periodic rate of return on the lessor’s net investment in the lease. The
Group also recognizes income from variable payments that are
not included in the net
investment in the
lease. After lease commencement,
the net investment
in a lease is not remeasured
unless
the lease is modified or the lease term is revised.
Operating leases
The Group continues to recognize
the underlying asset and does not recognize a net
investment in the lease on the balance sheet or
initial profit (if any) on the income statement.
The Group recognizes
lease payments
from the lessees as
income on a
straight-line basis
or another systematic
basis considered as
appropriate.
Also it
recognizes
costs,
including depreciation,
incurred in
earning the
lease income
as an
expense. The
Group
adds
initial direct costs incurred in obtaining an operating
lease to the carrying amount of the underlying asset and recognizes those costs
as an expense over the lease term on the same basis as the lease income.
Subleases
The Group, acting as a
lessee, may enter into arrangements to sublease a
leased asset to a third
party while the original
lease contract
is in effect. The Group acts as both the lessee and lessor of the same underlying asset. The sublease is a separate lease agreement, in
which the intermediate lessor classifies the sublease as a finance lease or an operating
lease as follows:
•
if the head lease is a short-term lease, the sublease is classified as an operating
lease; or
•
otherwise,
the
sublease
is
classified
by
reference
to
the
right-of-use
asset
arising
from
the
head
lease,
rather
than
by
reference to the underlying asset.
2.2.16 Insurance and reinsurance contracts
Definition and classification of insurance and reinsurance contracts
IFRS 17 is applicable to insurance contracts, reinsurance contracts and investment contracts with discretionary participation features.
Insurance
contracts
are
contracts
under
which
the
Group
accepts
significant
insurance
risk
from
a
policyholder
by
agreeing
to
compensate the policyholder if a specified uncertain future event adversely affects the policyholder. The Group only issues insurance
contracts
(including unit-linked
contracts).
In making
this assessment,
all substantive
rights and
obligations, including
those arising
from law or regulation, are considered
on a contract-by-contract basis at
the contract issue date.
Insurance contracts
are classified as
direct participating
contracts or contracts
without direct participation
features. The
unit-linked
contracts
issued
by
the
Group
are
classified
as
direct
participating
contracts.
Such
contracts
allow
policyholders
to
participate
in
investment
returns
with
the
Group,
in
addition
to
compensation
for
losses
from
insured
risk.
These
contracts
are
substantially
investment service-related contracts where the return on the underlying portfolios of investment assets is shared with policyholders.
The Group
also holds
reinsurance contracts
that transfer
significant insurance
risk, or
are deemed
to transfer
significant insurance
risk,
since
they
transfer
to
the
reinsurer
substantially
all
the
insurance
risk
relating
to
the
reinsured
portions
of
the
underlying
insurance contracts.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Insurance
contracts
issued are
aggregated
at a
portfolio
level once
they are
subject to
similar risks
and are
managed together.
In
addition, reinsurance
contracts held
are grouped
into portfolios
by taking
into consideration
the nature
of the risk
and the
type of
reinsurance cover.
At initial recognition,
the Group segregates
contracts based
on when they were
issued. An annual cohort
contains all contracts
that
were issued within a 12-month period. Each annual cohort is then further disaggregated
into three groups of contracts: (a)
contracts
that are
onerous on initial
recognition; (b) contracts
that, on initial
recognition, have
no significant possibility
of becoming onerous
subsequently; and (c) any remaining contracts
in the annual cohort.
The composition of groups established at
initial recognition is not subsequently reassessed.
Recognition
The Group recognises groups of insurance contracts that it issues from the earliest of the following: (a) the beginning of the coverage
period
of
the group
of
contracts,
(b) the
date
when
the first
payment
from
a policyholder
in the
group
is due,
or
when
the
first
payment is received if there is no due date,
or (c) when the Group determines that a group of contracts
becomes onerous.
The Group
recognises a group
of reinsurance
contracts held
(a) if the
reinsurance contracts
provide proportionate
coverage, at
the
later
of the
beginning of
the coverage
period of
the group,
or the
initial recognition
of any
underlying contract,
or (b)
in all
other
cases, from the beginning of the coverage period
of the first contract in the group.
Measurement of insurance contracts issued
The carrying amount of a group
of insurance contracts at each reporting date is the
sum of the liability for
remaining coverage (“LRC”)
and the liability for incurred claims (“LIC”).
The LRC represents
the Group’s
obligation to
investigate
and pay
valid claims under
existing contracts
for insured
events that
have
not yet occurred (i.e. the obligation that
relates to the unexpired portion of the coverage
period).
The
LIC
includes
the
Group’s
liability
to
pay
valid
claims
for
insured
events
that
have
already
incurred,
other
incurred
insurance
expenses arising
from past
coverage
service and
the liability
for claims
incurred but
not yet
reported.
It also
includes the
Group’s
liability
to
pay
amounts
the
Group
is
obliged
to
pay
the
policyholder
under
the
contract,
including
repayment
of
investment
components, when a contract is derecognised.
Initial and subsequent measurement of contracts under the general
measurement model (“GMM”) and the variable fee approach
("VFA”)
Under the GMM
and the VFA,
the Group measures
a group of
contracts on
initial recognition as
the sum of the
expected fulfilment
cash flows (’FCF’’) and
the contractual service
margin (‘’CSM’’) representing
the unearned profit in
the contracts relating
to services
that will be provided
under the contracts.
The Group applies the
GMM approach to
its life insurance
contracts (except
its group life
contracts and other
life contracts
with coverage period
of one year or less) as
well as to reinsurance
contracts with coverage
period
over one year,
while the VFA approach is applied to life
insurance contracts in the unit-linked
portfolio.
FCF comprise
unbiased and
probability-weighted
estimates of
future cash
flows, an
adjustment to
reflect the
time value
of money
and the
financial risks
related to
future cash
flows, to
the extent
that the
financial risks
are not
included in the
estimates
of future
cash
flows,
plus
a
risk
adjustment
for
non-financial
risk.
The
Group
estimates
FCF
considering
a
range
of
scenarios
which
have
commercial substance and give a good representation of possible outcomes, considering all supportable information at the reporting
date
including
historic
evidence
and
information
about
trends.
The
cash
flows
from
each
scenario
are
probability-weighted
and
discounted
using
current
assumptions.
The
Group
estimates
certain
FCF
at
the
portfolio
level
or
higher
and
then
allocates
such
estimates to groups of contracts.
At the end of each reporting period, the Group updates the fulfilment cash flows for both LIC
and LRC to reflect the current estimates
of the amounts, timing and uncertainty of future cash flows,
as well as discount rates and other financial variables.
The Risk Adjustment (“RA”) for non-financial risk for a group of insurance contracts, determined separately from the other estimates,
is the compensation
required for
bearing uncertainty
about the amount
and timing of
the cash flows
that arises from
non-financial
risk. The RA also reflects the degree of diversification
benefit the Group includes when determining the compensation
it requires for
bearing that risk; and both favourable
and unfavorable outcomes, in
a way that reflects the Group’s
degree of risk aversion.
Notes to the Consolidated Financial Statements
.
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The Contractual Service Margin
(CSM) is a component of
the overall carrying amount
of a group of insurance
contracts representing
unearned profit the Group will recognise as it provides insurance contract services over the coverage
period. On initial recognition of
a group of insurance
contracts, if the total
of (a) the fulfilment cash flows,
(b) any cash flows arising
at that date and
(c) any amount
arising from
the derecognition
of any
assets or liabilities
previously recognised
for cash
flows related
to the group
(including assets
for insurance acquisition cash flows) is a net
inflow, the CSM is measured
as the equal and opposite amount of the net inflow,
which
results in
no gain
no loss,
arising on
initial recognition.
In the
case of
net outflow,
then the
group is
onerous. In
this case,
the net
outflow is recognised immediately as
a loss in profit or
loss. A loss
component is created to depict the
amount of the net cash
outflow,
which determines the amounts
that are subsequently
presented in profit
or loss as reversals
of losses on onerous
contracts and are
excluded from insurance revenue.
The CSM
of a
group of
insurance contracts
is recognised
in profit
or loss
to reflect
services provided
in each year.
Additionally,
the
amount of CSM at the end
of the reporting period is adjusted in
order to reflect the effect
of any new contracts
added to the group,
changes to
fulfilment cash
flows relating
to future
service, the amount
recognized as
insurance revenue
because of
the transfer
of
services in the period.
For reinsurance contracts held, the CSM amortization reflects
the level of service received and depends on the number of underlying
contracts in-force.
Experience
adjustments
relating
to
current
or
past
service are
recognized
in
profit
or
loss
as
part
of
insurance
service expenses.
Experience adjustments relating to future
service are included in the LRC by adjusting the CSM.
Measurement of contracts under the premium allocation approach
(PAA)
The premium allocation approach is an optional simplified
measurement model in IFRS 17 that is
available to insurance contracts that
meet the
eligibility criteria.
The Group
applies the
PAA
approach
to
substantially
all its
non-life
insurance
contracts,
to
group
life
insurance contracts
as well
as to
individual life
contracts
and reinsurance
contracts
with coverage
period of
one year
or less.
The
resulting LRC,
under the PAA
approach, is not
discounted to
reflect the
time value of
money and the
effect of
financial risk since
at
initial recognition of each group
of contracts, the expected time between providing each
part of the services
and the related premium
due date in no more than a year.
The
carrying
amount
of
the LRC
at
the
end of
each reporting
period
for
a group
of
contracts
that
is not
onerous,
represents
the
carrying amount
at the
start of
the reporting
period, plus
premiums received
in the
period, minus
insurance acquisition
cash flows
paid
in
the
period,
plus
any
amounts
relating
to
the
amortisation
of
the
acquisition
cash
flows
recognised
as
an
expense
in
the
reporting period, minus the amount recognised as insurance
revenue for the services provided in the period.
Applying the
PAA,
the insurance
revenue
for
the period
consists of
the amount
of expected
premium receipts
including premium
experience adjustments allocated to
the period.
Measurement of reinsurance contracts
held
The same accounting policies are applied as for insurance contracts
issued to measure a group of reinsurance contracts
held.
Insurance contracts – modification and derecognition
The Group derecognises insurance
contracts when the rights
and obligations relating to
the contract are extinguished (i.e.,
discharged,
cancelled or expired), or the contract is modified such that the modification results in (a) the contract being outside the scope of IFRS
17,
(b)
a different
insurance
contract
due to
separating
components
from
the host
contract,
(c) a
substantially
different
contract
boundary, or (d) the contract
being included in a different group of contracts.
On derecognition
of a
contract
from within
a group
of contracts,
the fulfilment
cash flows
allocated
to the
group are
adjusted
to
eliminate those that relate
to the rights
and obligations derecognised, the
CSM of the
group is adjusted
for the change
in the fulfilment
cash
flows
(except
where
such
changes
are
allocated
to
a
loss
component)
and
the
number
of
coverage
units
for
the
expected
remaining services is adjusted to reflect the coverage
units derecognised from the group.
When a modification
is not treated
as derecognition,
the Group recognises
amounts paid
or received for
the modification
with the
contract as an adjustment to the relevant
liability for remaining coverage.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Insurance service result
Insurance revenue reflects the consideration to which the Group expects to be entitled in exchange for the provision of coverage and
other services arising from a group of insurance contracts (excluding any investment components). For insurance contracts under the
Premium
allocation
approach,
insurance
revenue
is
based
on
the
expected
premium
of
the
period.
Insurance
service
expenses
comprise the incurred
claims and other incurred
insurance service expenses
(excluding any
investment components),
and losses on
onerous groups of contracts
and reversals of such losses.
Insurance finance income or expenses
Insurance finance income and expenses comprise the change in the carrying amount of the group of insurance contracts arising from
the effects of
the time value of
money,
financial risk and changes
therein. For VFA
contracts, changes
in the fair value
of underlying
items are recognised in insurance finance income or
expenses.
2.2.17
Income tax
Income tax consists of current and
deferred tax.
(i) Current income tax
Income tax payable
on profits, based on
the applicable tax
law in each jurisdiction
and the tax rate
enacted at the
reporting date, is
recognized as an expense in the period in which profits
arise.
(ii) Deferred tax
Deferred
tax
is
provided
in
full,
using
the
liability
method,
on
temporary
differences
arising
between
the
tax
base
of
assets
and
liabilities and their carrying amounts in the consolidated
financial statements. Deferred
tax assets and liabilities are measured
at the
tax rates that are expected to apply to the period when the asset is realized or the liability is
settled, based on tax rates (and tax laws)
that
have
been
enacted
or
substantively
enacted
by
the
balance
sheet
date.
The
principal
temporary
differences
arise
from
impairment/valuation
and
accounting
write-offs
relating
to
loans,
Private
Sector
Initiative
(PSI+)
tax
related
losses,
losses
from
disposals and crystallized write-offs
of loans, depreciation of property and equipment, fair value adjustment
of investment property,
pension
and
other
retirement
benefit
obligations,
and
revaluation
of
certain
financial
assets
and
liabilities,
including
derivative
financial instruments.
Deferred
tax
assets
are
recognized
where
it
is
probable
that
future
taxable
profit
will
be
available
against
which
the
temporary
differences can be utilized.
The carrying amount of deferred
tax assets is reviewed at
each reporting date and reduced
to the extent
that it is no longer probable
that sufficient taxable
profits will be available
to allow all or part of the
asset to be recovered.
Any such
reduction is
reversed to
the extent
that it becomes
probable that
sufficient taxable
profit will be
available. The
Group recognises
a
previously unrecognised deferred tax asset to the extent that it
has become probable that future taxable profit will
allow the deferred
tax asset to be recovered.
Deferred
tax
related
to
debt
securities
at
FVOCI
and
cash
flow
hedges
is
recognized
to
other
comprehensive
income,
and
is
subsequently recognized in the income statement
together with the deferred gain
or loss.
The deferred
tax asset on
income tax losses
carried forward
is recognized as
an asset when it
is probable that
future taxable
profits
will be available against which these losses can be utilized.
The Group has
applied the mandatory
temporary exception
(relief) to the requirement
of IAS 12 and
does not recognise or
disclose
information about deferred
taxes arising from the Pillar Two
Income taxes.
(iii) Uncertain tax positions
The Group determines and assesses all material tax positions taken, including all, if
any, significant uncertain positions, in all tax years
that are
still subject
to assessment
(or when
the litigation
is in
progress)
by relevant
tax authorities.
In evaluating
tax positions
in
various states,
local, and foreign
jurisdictions, the
Group examines
all supporting
evidence (Ministry of
Finance circulars,
individual
rulings,
case
law,
past
administrative
practices,
ad
hoc
tax/legal
opinions
etc.)
to
the
extent
they
are
applicable
to
the
facts
and
circumstances of the particular Group’s
case/ transaction.
In addition, judgments concerning
the recognition of a provision
against the possibility of
losing some of the tax
positions are highly
dependent on
advice received
from internal/
external legal
counselors. For
uncertain tax
positions with a
high level of
uncertainty,
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
the Group recognizes, on a transaction by transaction basis, or together as a group, depending
on which approach better predicts the
resolution of the uncertainty using an expected value (probability
-weighted average) approach: (a)
a provision against tax receivable
which has been booked for the amount of
income tax already paid but further
pursued in courts or (b) a
liability for the amount which
is expected to be paid to the tax authorities. The Group presents in its balance sheet all uncertain tax balances as current or deferred
tax assets or liabilities.
The Group as a general
rule has opted to obtain
for the Group’s
Greek companies an ‘Annual
Tax
Certificate’,
which is issued after a
tax audit is performed by the same statutory auditor or audit firm that audits the annual financial statements. Further
information in
respect of the Annual
Tax
Certificate and the
related tax
legislation, as well as
the unaudited tax
years for
the Group’s
companies is
provided in note 13.
2.2.18 Employee benefits
(i) Short term benefits
Short term
employee benefits
are those
expected to
be settled wholly
before twelve
months after
the end of
the annual reporting
period in which the employees render the related
services and are expensed as these services are provided.
(ii) Pension obligations
The Group provides a number
of defined contribution pension
plans where annual contributions are invested and
allocated to specific
asset
categories.
Eligible
employees
are
entitled
to
the
overall
performance
of
the
investment.
The
Group's
contributions
are
recognized as employee benefit expense
in the year in which they are paid.
(iii) Standard legal staff retirement indemnity obligations (SLSRI) and termination
benefits
The
Group
operates
unfunded
defined
benefit
plans
in
Greece
and
Bulgaria,
under
broadly
similar
regulatory
frameworks.
In
accordance
with the
local labor
legislation, the
Group
provides for
staff
retirement
indemnity obligation
for
employees which
are
entitled to
a lump
sum payment
based on
a) the
number of
years
of service,
as of
the date
when employee
service first
leads to
benefits under the plan until the date
when further employee service will lead to
no material amount of further
benefits, and b) the
level of remuneration
at the date
of retirement,
if they remain
in the employment
of the Group
until normal retirement
age. More
specifically,
in line
with the
decision of
IFRIC Committee
for
IAS 19
fact pattern
issued in
May 2021,
the attribution
of the
benefit
begins from the
date when the
employee service first
leads to benefits
under the terms
of the plan,
and not from
the employment
date, until the date when further employee service will lead to no material
amount of further benefits.
In
addition,
the
Group
provides
termination
benefits
mainly
in
respect
of
the
Voluntary
Exit
Schemes
(VES),
which
have
been
implemented through
either lump-sum payments or
long-term leaves during
which the employees will be
receiving a percentage
of
a monthly salary,
or a combination thereof.
Provision has been made for
the actuarial value of the
lump sum payable on
retirement
(SLSRI)
and
termination
benefits
using
the
projected
unit
credit
method.
Under
this
method
the
cost
of
providing
retirement
indemnities and termination
benefits is charged
to the income
statement
so as to
spread the cost
over the period
of service of
the
employees, in accordance with the respective actuarial
valuations, which are performed every year.
The SLSRI and termination benefits
obligation is calculated
as the present value
of the estimated future
cash outflows using interest
rates of high quality corporate bonds. In countries where there is no deep market in such bonds, the yields on government bonds are
used. The currency
and term to
maturity of the
bonds used are
consistent with
the currency and
estimated term
of the retirement
and termination
benefit obligations.
Actuarial gains
and losses
that arise
in calculating
the Group’s
SLSRI and
termination
benefits
obligations are
recognized directly
in other comprehensive
income in the
period in which
they occur and
are not reclassified
to the
income statement in subsequent
periods.
Interest
cost on
the staff
retirement
indemnity and
termination
benefits
obligations,
as well
as service
cost,
consisting
of current
service cost, past service cost and gains or losses on settlement
are recognized in the income statement.
Termination
benefits are payable when employment is terminated by the Group before
the normal retirement date, or whenever an
employee accepts
voluntary redundancy
in exchange
for these
benefits (including
those in
the context
of the VES
implemented by
the
Group).
The
Group
recognizes
termination
benefits
at
the
earlier
of
the
following
dates:
(a)
when
the
Group
can
no
longer
withdraw
the
offer
of
those
benefits;
and
(b)
when
the
Group
recognizes
costs
for
a
restructuring
that
involves
the
payment
of
termination benefits. Any
reversals of the
SLRSI obligation arising
from employees that
are included in the long-term
leaves scheme
are accounted
for as
a curtailment
gain recognized
in the
income statement.
In the
case of
an offer
made to
encourage voluntary
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
redundancy,
the termination
benefits are measured
based on the
number of employees
expected to
accept the
offer.
Termination
benefits falling due more than 12 months after
the end of the reporting period are discounted to their present
value.
(iv) Performance-based cash payments
The Group's Management awards high performing employees with bonuses in cash, from time to time, on a discretionary basis. Cash
payments
requiring only
Management approval
are recognized
as employee
benefit expenses
on an
accrual basis.
Cash payments
requiring General
Meeting approval
as distribution of
profits to staff
are recognized
as employee benefit
expense in the
accounting
period that they are approved by the Group’s
shareholders.
(v) Share-based payments
The Group’s Management awards
employees with bonuses in the form of shares and share options on a discretionary basis and after
taking into account the current
legal framework. Non-performance
related shares vest in the
period granted. Share based payments
that are contingent upon the achievement
of a performance and service condition, vest only if both conditions are
satisfied.
The fair value of the share options
granted is recognized as an employee benefit expense over the
vesting period, with an equal credit
in equity,
i.e.no impact on
the Group’s
equity.
The amount
ultimately recognised
as an expense
is based on
the number
of awards
that meet the related service and non-market
performance conditions at the vesting date.
The fair
value of the
share options
at grant
date is determined
by using an
adjusted option
pricing model which
takes into
account
the
exercise
price,
the
exercise
dates,
the
term
of
the
option,
the
share
price
at
grant
date
and
expected
price
volatility
of
the
underlying share,
the expected
dividend yield
and the
risk-free
interest
rate
for the
term of
the options.
The expected
volatility is
measured at the grant date of the options
and is based on the historical volatility of the share price.
For share-based
payment awards
with non-vesting
conditions, the fair
value of the
share-based payment
at grant
date also reflects
such conditions and there is no true-up for differences
between expected and actual outcomes.
When the options
are exercised
and new shares
are issued, the
proceeds received
net of any
directly attributable
transaction costs
are credited to share capital
(par value) and share premium.
2.2.19 Repossessed properties
Land and buildings repossessed
through an auction
process to recover
impaired loans are,
except where
otherwise stated, included
in ‘Other Assets’. Assets acquired from an auction process are held temporarily for liquidation and are valued at the lower of cost and
net realizable value, which is the estimated
selling price, in the ordinary course of business, less costs necessary
to make the sale.
In cases where the Group makes use of repossessed
properties as part of its operations, they may be reclassified to
own occupied or
investment properties, as appropriate.
Any gains or losses on liquidation are included in the income statement.
2.2.20 Related party transactions
Related parties of the Group include:
(a) an entity
that has control
over the Group
and entities controlled,
jointly controlled
or significantly influenced
by this entity,
as well as members of its key management
personnel and their close family members;
(b) an entity that has significant influence over the Group
and entities controlled by this entity,
(c) members of key management personnel of the Group, their
close family members and entities controlled or jointly controlled
by the abovementioned persons;
(d) associates and joint ventures of the Group;
(e) fellow subsidiaries;
(f) post-employment benefit plans established for the benefit
of the Group’s employees.
Transactions
of similar
nature are
disclosed on
an aggregate
basis. All
banking transactions
entered into
with related
parties are
in
the normal course of business and are conducted on an arm's length
basis.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
2.2.21 Provisions and contingent liabilities
Provisions are recognized when
the Group has a present legal or
constructive obligation as a result of past
events, it is probable that
an outflow of resources embodying economic benefits will be required
to settle the obligation, and reliable estimates
of the amount
of the obligation can be made.
The amount recognized as a provision is the best
estimate of the expenditure required to settle a present obligation at each reporting
date, taking into account the risks and uncertainties surrounding the amount of such expenditure. Where the effect of the time value
of money is material, the amount of the provision is the present
value of the estimated future expenditures
expected to be required
to settle the obligation.
Provisions
are reviewed
at
each reporting
date
and adjusted
to
reflect
the current
best
estimate.
If,
subsequently,
it is
no longer
probable that an outflow
of resources embodying economic
benefits will be
required to settle the
obligation, the provision is
reversed.
A provision is not
recognized and a contingent liability
is disclosed when
it is not
probable that an outflow
of resources will be
required
to settle the
obligation, when the
amount of the obligation
cannot be measured reliably
or in case that
the obligation
is considered
possible and is subject to the occurrence or non -occurrence of one or more uncertain
future events.
2.2.22 Operating segment
An operating
segment is
a component
of the
Group that
engages in
business activities
from which
it may
earn revenue
and incur
expenses within
a particular
economic environment.
Operating segments
are identified
on the
basis of
internal reports,
regarding
operating results, of components of the
Group that are regularly reviewed
by the chief operating decision maker
in order to allocate
resources
to the
segment
and to
assess its
performance.
The chief
operating
decision maker
has been
identified
as the
Strategic
Planning Committee that is
responsible for strategic decision making.
Segment revenue, segment expenses
and segment performance
include
transfers
between
business
segments.
Such
transfers
are
accounted
for
at
competitive
prices
in
line
with
charges
to
unaffiliated customers
for similar services.
2.2.23 Share capital
Ordinary shares and preference
shares are classified as equity.
Incremental
costs directly
attributable
to the
issue of
new shares
or
options are shown in equity as a deduction from the proceeds, net
of tax.
Dividend
distribution
on
shares
is
recognized
as
a
deduction
in
the
Group’s
equity
when
approved
by
the
General
Meeting
of
shareholders
and the
required
regulatory
approvals,
if any,
are
obtained.
Interim
dividends are
recognized
as
a deduction
in
the
Group's equity when approved by the Board
of Directors.
Intercompany
non-cash
distributions
that
constitute
transactions
between
entities
under
common
control
are
recorded
in
the
Group’s equity by reference
to the book value of the assets distributed.
Where any Group entity purchases the Company’s equity share capital (treasury shares), the consideration paid including any
directly
attributable incremental
costs (net
of income taxes),
is deducted
from shareholders’
equity until the
shares are
cancelled, reissued
or disposed of. Where such
shares are subsequently sold or reissued, any consideration
received is included in shareholders’ equity.
2.2.24
Financial guarantees and commitments to extend
credit
Financial guarantees
Financial guarantee
contracts are
contracts that
require the issuer
to make
specified payments to
reimburse the
holder for a
loss it
incurs because
a specified
debtor fails
to make
payments when
due, in
accordance with
the terms
of a
debt instrument.
Financial
guarantees
granted
by the
Group to
financial institutions
and other
bodies on
behalf of
customers to
secure loans,
overdrafts
and
other
banking
facilities,
are
initially
recognized
at
fair
value,
being
the
premium
received.
Subsequent
to
initial recognition,
such
guarantees are measured
at the higher of the amount of
the ECL allowance, and the
amount initially recognised less any
cumulative
amortization of the fee earned, where appropriate.
Financial guarantees purchased
by the Group that
are considered as integral
to the contractual
terms of the guaranteed
instrument
are not accounted for separately and
the cash flows from
the guarantee are taken into account
in the measurement of
the guaranteed
instrument’s expected credit losses, whereas any fees paid or transaction costs incurred for the acquisition of the financial guarantee
are considered as part of the guaranteed
asset’s effective interest
rate.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
On the
other hand,
financial guarantees
purchased that
are not
considered as
integral to
the contractual
terms of
the guaranteed
instruments are accounted for separately where a reimbursement asset is recognized and included in Other
Assets once is its
virtually
certain that, under the terms and conditions of the guarantee, the Group will be reimbursed for the credit loss incurred.
The changes
in the carrying
amount of the
above reimbursement
asset arising from
financial guarantees,
entered into
to mitigate
the credit risk
of lending exposures measured at amortized
cost, are recognized under ‘Impairment
losses’ in the Group’s income
statement.
Commitments to extend credit
Commitments represent
off-balance sheet items
where the
Group commits,
over the
duration of
the agreement,
to provide
a loan
with
pre-specified
terms
to
the
customer.
Such
contractual
commitments
represent
commitments
to
extend
credit
and
standby
letters and they are part of the normal lending
activities of the Group, for which an ECL allowance is recognised
under IFRS 9.
ECL allowance for off-balance sheet exposures
(financial guarantees granted and
commitments) is included within Other Liabilities.
2.2.25 Non-current assets classified as held for sale and discontinued
operations
Non-current
assets are
classified as
held for
sale if
their carrying
amount will
be recovered
through a
sale transaction
rather than
through
continuing
use.
For
a non
-
current
asset
to
be classified
as
held
for
sale, it
is available
for
immediate
sale
in
its
present
condition, subject to terms that are usual and
customary for sales of such assets, and the sale is considered
to be highly probable. In
such cases, management
is committed to
the sale and actively markets
the property for
sale at a price that
is reasonable in relation
to the
current
fair value.
The sale
is also
expected to
qualify for
recognition
as a
completed sale
within one
year from
the date
of
classification.
Before
their
classification
as
held
for
sale,
such
assets
or
disposal
groups
are
remeasured
in
accordance
with
the
respective accounting standard.
Assets held for sale are subsequently remeasured at the lower of their carrying amount and
fair value less cost to sell. Any loss arising
from the above measurement is recorded in
profit or loss and can
be reversed in the future. When
the loss relates to a disposal
group,
it
is allocated
to
the assets
within that
disposal
group.
Those assets
and liabilities
that
are not
in the
scope
of the
measurement
requirements of IFRS 5
‘Non-current assets held for
sale and discontinued operations’,
such as financial instruments and investment
properties measured at fair value, continue to be
measured in accordance with the
Group’s relevant accounting policies, despite their
classification as held for sale.
The Group presents discontinued
operations in a
separate line in
the consolidated income statement. if
a Group entity
or a
component
of a Group entity has been disposed of or is classified as held for sale and:
(a) Represents a separate
major line of business or geographical area of operations;
(b) Is part of a single coordinated plan to dispose of a separate
major line of business or geographical area of operations;
or
(c) Is a subsidiary acquired exclusively with a view
to resale.
Profit or
loss from
discontinued operations
includes the
profit or
loss before
tax from
discontinued operations,
the gain
or loss
on
disposal
before
tax
or
measurement
to
fair
value
less
costs
to
sell
and
discontinued
operations
tax
expense.
Intercompany
transactions
between
continuing
and
discontinued
operations
are
presented
on
a
gross
basis
in
the
income
statement.
Upon
classification of a Group entity as a discontinued operation,
the Group restates prior periods in
the consolidated income statement.
2.2.26 Cash and cash equivalents
Cash and
cash equivalents
include cash
in hand,
unrestricted
deposits with
central
banks,
due from
credit institutions
that are
all
carried at amortised cost and other short-term highly liquid investments with original maturities of three months or
less that are held
for trading.
2.2.27 Government grants
Government grants are recognized when there is reasonable assurance that the grant will
be received and the Group will
comply with
the conditions
attached to
it. The
grants
are recognized
in the
income statement
on a
systematic
basis to
match the
way that
the
Group
recognizes
the
expenses
for
which
the
grants
are
intended
to
compensate.
In
case
of
subsequent
changes
in
the Group’s
expectations
of
meeting
the
conditions
attached
to
the
government
grants,
the
effect
of
such
changes
is
recognised
in
income
statement.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
2.2.28 Fiduciary activities
The Group provides
custody,
trustee, corporate
administration, investment
management and advisory
services to third
parties that
result in the
holding or investing
of assets on behalf
of its clients. Those
assets that are
held in a fiduciary
capacity are not
assets of
the Group and are not recognized
in the financial statements. In addition,
the Group does not guarantee these investments
and as a
result it is not exposed to any credit risk in relation
to them.
3.
Critical accounting estimates and judgments in applying accounting policies
In the process
of applying the Group’s
accounting policies, Management
makes various
judgments, estimates and
assumptions that
may affect
the reported
amounts of
assets and
liabilities, revenues
and expenses
recognized in
the financial
statements within
the
next financial year
and the accompanying
disclosures. Estimates and
judgments are continually
evaluated and
are based on current
conditions, historical experience
and other factors, including
expectations of future
events that are believed
to be reasonable under
the
circumstances.
Revisions
to
estimates
are
recognized
prospectively.
The
most
significant
areas
in
which
the
Group
makes
judgments, estimates and assumptions in applying its accounting
policies are set out below:
3.1
Impairment losses on loans and advances to customers
The
economies
in
which
the
Group
operates
are
expected
to
continue
presenting
positive
growth
rates
despite
the
challenging
international
environment.
In 2024,
the Group's
asset quality
continued
its solid
performance as
demonstrated
by the
level of
its
credit quality indicators in terms of NPE ratio
and NPE coverage (note 2).
The Group remains cautious
for any developments
in the macroeconomic trends
and geopolitical front and
closely monitors all loan
portfolios, so as to revise, if needed, the respective estimates
and assumptions.
Expected Credit Loss (ECL) measurement
The ECL measurement requires
Management to apply
judgment, in particular,
to the estimation of
the amount and timing
of future
cash flows and collateral values when determining impairment losses and the
assessment of a significant increase in credit risk.
These
estimates are driven by a number of factors, changes in
which can result in significant changes to the
timing and amount of allowance
for credit loss to be recognized.
The Group’s ECL calculations are
outputs of complex
models with a
number of underlying
assumptions regarding the choice
of variable
inputs
and
their
interdependencies.
In
addition,
temporary
adjustments
may
be
required
to
capture
new
developments
and
information available, which are not
reflected yet in the ECL calculation through
the risk models.
The elements of the ECL models that are considered
significant accounting judgments and estimates include:
Determination of a significant increase of credit risk
IFRS 9
does not
include a definition
of what
constitutes a
significant increase
in credit
risk (SICR). An
assessment of
whether credit
risk has increased
significantly since initial
recognition is performed
at each reporting
period by considering
primarily the change
in
the risk of default occurring over the
remaining life of the financial instrument. The Group assesses
whether a SICR has occurred since
initial
recognition
based
on
qualitative
and
quantitative
reasonable
and
supportable
forward-looking
information
that
includes
significant management judgment (note 2.2.13).
Retail lending
For retail
lending exposures
the primary criterion
is the change in
the residual cumulative
lifetime Probability
of Default (PD)
above
specified thresholds. These thresholds vary per portfolio,
origination year,
product type as well as origination PD level.
As at 31 December 2024 and
2023, the upper PD thresholds based
on the above segmentation,
that trigger the allocation to stage
2
for Greece’s retail
exposures are set out below:
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Retail exposures
31 December 2024
31 December 2023
Upper SICR threshold
Mortgage
170%
170%
Home Equity
80%
80%
SBB
130%
130%
Consumer
100%
100%
Wholesale lending
For wholesale lending exposures, the origination PD curves and the residual lifetime PD curves at each reporting date
are mapped to
credit rating
bands. Accordingly,
SICR thresholds
are based
on the
comparison of
the origination
and reporting
date credit
ratings,
whereby rating
downgrades represent
changes in residual
lifetime PD.
Similar to retail
exposures, the
wholesale lending exposures
are segmented based
on asset class,
loan type and
credit rating at
origination.
In addition, for
securitization notes
issued by special
purpose entities established by
the Group, the
SICR assessment is
performed by considering the
performance of the
underlying assets.
As
at
31
December
2024
and
2023,
the
credit
rating
deterioration
thresholds
per
rating
bands
for
Greece’s
wholesale
lending
exposures that trigger
allocation to stage
2 are set
out below.
In addition, any
downgrade to rating
band 6 or high-risk
rating bands
(7,8 or 9) is considered as SICR event to all corporate
lending portfolios:
.
Wholesale internal rating bands
Minimum SICR threshold range
1
Five notches
2
Four notches
3
Three notches
4
Two notches
5-8
One notch
Determination of scenarios, scenario weights and macroeconomic factors
To achieve
the objective of measuring ECL, the Group evaluates a
range of possible outcomes in line with the requirements
of IFRS 9
through the
application of
three macroeconomic
scenarios, i.e. baseline,
adverse and
optimistic, in a
way that
reflects an
unbiased
and probability weighted outcome.
The probability weights for
the above mentioned scenarios as
applied by the Bank, were revised
in the
first quarter
of 2024
in order
to appropriately
reflect Management’s
sentiment regarding
future economic
conditions in
the
form of macroeconomic, market and other factors as embodied
in each of the
three scenarios. More specifically, the scenario weights
applied in
the context
of IFRS9
ECL measurement
for
Greek lending
portfolios
were
revised as
follows:
adverse
30% -
base 50%
-
optimistic 20% (31 December 2023:
25%-50%-25%), having an insignificant
impact on impairment allowance
for loans and advances
to customers.
The weight
allocation among
IFRS9 ECL scenarios
as applied by
the Group
subsidiaries approximates
the one applied
by the Bank with the exception of Eurobank Bulgaria AD that applied the following
weights: adverse 30% - base 40% - optimistic 30%
considering macroeconomic, market and other
country -specific factors.
The baseline scenario for
Greek lending portfolios
assumed no escalation
of the open war
fronts, no change
in EU sanctions against
Russia, continuation
of ECB’s
monetary policy trajectory
as well as
Greek government’s
fiscal support
measures. Core
inflation rate
for
Greece
was
assumed
to
gradually
de-escalate
suggesting
a
moderate
economic
growth
path,
employment
was
assumed
to
contribute
to
lower
unemployment
path
given
the
capacity
constraints
stemming
from
demographic
factors,
real
estate
prices
registered
signs
of
slowing
down
for
2024
and
2025
compared
to
2023 but
remained
on
a positive
range
and
inflation
rate
was
forecasted to decrease
as a result of the ECB monetary
policy actions. Additionally,
the Greek economy’s short-term
prospects were
supported
by
the:
(a)
expected
strong
tourist
season,
(b)
Recovery
and
Resilience
Facility,
Multiannual
Financial
Framework
and
European Investment Bank funds, (c) ample liquidity
including strong deposit levels and the state cash
buffer and (d) fiscal measures
implemented to mitigate the impact of energy
costs.
The optimistic
and adverse
scenarios originated
from forecasts
that were,
respectively,
more positive,
or more
negative
regarding
real
GDP
growth,
unemployment
rates and
real
estate
prices,
in
comparison
to
the
baseline
scenario. On
the
other
hand,
an
environment
with lower
inflation relative
to the
baseline is
assumed for
the adverse
scenario in
combination with
the gradual
de-
escalation of
interest
rates.
For the
optimistic scenario
inflation remained
at low
levels while
growth increased
above the
baseline
scenario
levels.
The
forecasts
for these macroeconomic
variables
in
the
adverse/optimistic
scenarios
of
the
IFRS9
probability-
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
weighted
framework
were estimated
using a
Vector
Auto
Regression model.
This model
used historical
data
on real
GDP growth,
inflation, and unemployment rates together
with the aforementioned weights for
each scenario to generate its forecasts.
Forward-looking information
The Group ensures that impairment
estimates and macroeconomic forecasts applicable for business and
regulatory purposes are fully
consistent. Accordingly, the IFRS 9 baseline scenario applied in the
ECL calculation coincides with the one
used for ICAAP and business
planning
purposes.
In
addition,
relevant
experience
gained
from
the
stress
tests
imposed
by
the
regulator,
has
been
taken
into
account
in the
process of
developing
the macroeconomic
scenarios, as
well as
impairments for
stress testing
purposes have
been
forecasted in line with IFRS 9 ECL
methodology.
In terms of
macroeconomic assumptions,
the Bank assesses
a number of
indicators in
projecting the risk
parameters, namely
Gross
Domestic Product (GDP), Unemployment, Residential and
Commercial Property Price Indices,
inflation as well as
interest and FX rates.
The arithmetic averages of the key annual forecasts per macroeconomic
scenario for the next four year
period following the reporting
date used in the
ECL measurement of Greek
lending portfolios for the
year ended 31
December 2024 and
2023, are set
in the following
table:
Key macroconomic
indicators
31 December 2024
Average (2025-2028) annual forecast
31 December 2023
Average (2024-2027) annual forecast
Optimistic
Base
Adverse
Optimistic
Base
Adverse
Gross Domestic Product growth
3.35%
2.15%
0.94%
3.91%
2.05%
0.19%
Unemployment Rate
7.04%
8.84%
10.72%
7.60%
9.09%
10.60%
Residential property prices' index
6.39%
4.20%
1.64%
6.14%
3.90%
1.66%
Commercial property prices' index
4.05%
1.84%
-1.18%
5.37%
1.47%
-2.42%
Inflation rate
1.50%
2.15%
1.55%
1.75%
2.10%
2.44%
The table below provides
the respective arithmetic averages of
the key annual forecasts used in
the ECL measurement in
the countries
where the Group operates with a significant
contribution to the Group ECL:
Key macroconomic
indicators
31 December 2024
Average (2025-2028) annual forecast
31 December 2023
Average (2024-2027) annual forecast
Optimistic
Base
Adverse
Optimistic
Base
Adverse
Bulgaria
Gross Domestic Product growth
5.18%
2.70%
0.61%
7.08%
2.44%
-0.69%
Unemployment Rate
3.73%
4.57%
5.49%
3.84%
4.86%
5.97%
Residential property prices' index
9.87%
4.60%
1.33%
10.07%
2.92%
-0.31%
Cyprus
Gross Domestic Product growth
3.54%
2.91%
1.51%
3.60%
3.23%
1.35%
Gross fixed capital formation
6.70%
5.18%
2.38%
6.13%
5.50%
1.68%
Real Consumption growth
3.58%
3.08%
1.53%
-
-
-
Unemployment Rate
4.48%
5.20%
6.35%
-
-
-
Residential property prices' index
2.60%
1.95%
0.22%
-
-
-
Commercial property prices' index
2.32%
1.66%
0.05%
-
-
-
Inflation rate
1.99%
1.76%
2.86%
-
-
-
Note:
In
2024,
Eurobank
Cyprus,
αs
α
result
of
models’
recalibration,
updated
the
macroeconomic
variables
incorporated
in
ECL
measurement.
Changes in the
scenarios and weights,
the corresponding
set of macroeconomic
variables and
the assumptions made
around those
variables for
the forecast
horizon would
have a significant
effect on
the ECL amount.
The Group independently
validates all models
and
underlying
methodologies
used
in
the
ECL
measurement
through
competent
resources,
who are
independent
of
the
model
development process.
Development of ECL models, including the various formulas, choice
of inputs and interdependencies
For the purposes
of ECL measurement
the Group performs
the necessary model parameterization
based on observed point
-in-time
data on
a granularity
of monthly intervals.
The ECL calculations
are based
on input parameters,
i.e. exposure
at default
(EAD), PDs,
loss
given
default
(LGD),
credit
conversion
factors
(CCFs)
etc.
incorporating
Management’s
view
of
the
future.
The
Group
also
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
determines the
links between
macroeconomic scenarios
and, economic inputs,
such as unemployment
levels and collateral
values,
and the effect on PDs, EADs and LGDs.
Furthermore,
the
PDs
incorporate
relevant
forward
looking
information
including
macroeconomic
scenarios.
The
forecasting
risk
parameters
models
incorporate
a
number
of
macroeconomic
variables,
such
as
GDP,
unemployment
etc.
and
portfolio
specific
variables such as seasonal flag etc., which are used as independent
variables for optimum predictive capability.
The
ECL
models
are
based
on
linear
and
logistic
regressions
and
run
under
the
different
macroeconomic
scenarios
and
relevant
changes and shocks in the macro environment
are reflected accordingly.
Segmentation of financial assets when their ECL is assessed on a collective
basis
The Group segments
its exposures on the
basis of shared credit
risk characteristics
upon initial recognition
for the purposes
of both
assessing significant
increase in
credit risk
and measuring
loan loss
allowance on
a collective
basis. The
different
segments aim
to
capture differences
in PDs
and in the
rates of
recovery in
the event
of default.
On subsequent
periods, the
Group re-evaluates
the
grouping
of
its
exposures
at
least
on
an
annual basis,
in
order
to
ensure
that
the groups
remain
homogeneous
in
terms
of
their
response
to the
identified
shared credit
risk characteristics.
Re-segmentation
reflects
management’s
perception
in respect
to
the
change of credit risk associated with the particular exposures
compared to initial recognition.
Modeling and Management overlays / adjustments
A number
of sophisticated
models have
been developed
or modified
to calculate
ECL, while
temporary
management
adjustments
may be required to
capture new developments and information
available, which are not yet
reflected in the ECL calculation
through
the risk models.
Such adjustments are governed
by the Group’s IFRS9
ECL Model Adjustments’ framework which
aims to ensure
timely
identification of non-modeled risks, if
any, that
may have an impact on
lending portfolios, as well as sufficient
quantification of such
risks based on sound methodologies and processes.
As at 31 December 2024, the Group re-estimated the post model adjustment for
addressing potentially negative macro
environment developments
in the foreseeable future to € 14 million (2023: € 31 million).
The risk
models are
governed
by the
Group’s
validation
framework
which aims
to
ensure their
independent
verification.
The risk
models as well as the management adjustments, if any, are approved by the Board Risk Committee (BRC) as per the internal approval
processes.
Sensitivity analysis on lending portfolios
The sensitivity analysis when performed on certain key parameters can provide meaningful information only for portfolios
where the
risk parameters have a significant
impact on the overall credit risk of a lending portfolio, particularly where such sensitivities are also
used for internal credit risk management purposes. Otherwise, a sensitivity analysis on certain combinations of some
risk parameters
may not produce
meaningful results, as
in reality there
are interdependencies
between the various
economic inputs, rendering
any
changes in the parameters, changes correlated
in other factors.
The sensitivity analysis presented
in the tables below
is applied in the modeled ECL
output and assumes a favorable
and an adverse
shift
in
the
scenario
weighting,
compared
to
the
one
applied
in
the
ECL
measurement.
As
at
31
December
2024
and
2023,
the
favorable shift assumes an increase in the weighting of the optimistic scenario at 50% and a stable weighting of the baseline scenario
at 50%,
while the
adverse shift
assumes an
increase in
the weighting
of the
adverse scenario
at 50%
and a
stable weighting
of the
baseline scenario at 50%.
The tables below present the estimated effect in the
ECL measurement (including off-balance sheet items) per stage and
per
country
with significant contribution to the Group ECL
,
upon a positive and an adverse shift in the scenario weighting
as described above :
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Estimated effect per stage as at 31 December 2024
Positive change
Adverse change
12-month ECL
- Stage 1
Lifetime ECL
- Stage 2
Lifetime ECL
credit-impaired
31 December
2024
12-month ECL
- Stage 1
Lifetime ECL
- Stage 2
Lifetime ECL
credit-impaired
31 December
2024
Greece
Ιmpact in € million
(12)
(38)
(20)
(70)
9
30
14
53
Ιmpact in % allowance
(8)
(12)
(3)
(7)
6
10
2
5
Bulgaria
Ιmpact in € million
(1)
(1)
(2)
(4)
1
1
2
4
Ιmpact in % allowance
(4)
(2)
(2)
(2)
4
2
2
2
Cyprus
Ιmpact in € million
(2)
(1)
(3)
(6)
2
0
3
5
Ιmpact in % allowance
(13)
(6)
(4)
(5)
12
5
3
5
Total
Ιmpact in € million
(15)
(40)
(25)
(80)
12
31
19
62
Ιmpact in % allowance
(7)
(11)
(3)
(6)
6
9
2
5
Estimated effect per stage as at 31 December 2023
Positive change
Adverse change
12-month ECL
- Stage 1
Lifetime ECL
- Stage 2
Lifetime ECL
credit-impaired
31 December
2023
12-month ECL
- Stage 1
Lifetime ECL
- Stage 2
Lifetime ECL
credit-impaired
31 December
2023
Greece
Ιmpact in € million
(12)
(24)
(17)
(53)
11
30
17
58
Ιmpact in % allowance
(9)
(9)
(3)
(5)
8
10
3
6
Bulgaria
Ιmpact in € million
(1)
(1)
(2)
(4)
2
1
2
5
Ιmpact in % allowance
(4)
(2)
(2)
(2)
4
2
2
2
Cyprus
Ιmpact in € million
(3)
(2)
(2)
(7)
3
2
2
7
Ιmpact in % allowance
(38)
(32)
(4)
(13)
41
33
4
13
Total
Ιmpact in € million
(16)
(27)
(21)
(64)
16
33
21
70
Ιmpact in % allowance
(9)
(8)
(3)
(5)
8
10
3
5
Note
:
Figures as at 31 December 2023 for Cyprus refer to Eurobank Cyprus.
The
Group
updates
and
reviews
the
reasonability
and
performs
back-testing
of
the
main
assumptions
used
in
its
methodology
assessment for SICR
and ECL measurement,
at least on an
annual basis or earlier,
based on facts and
circumstances. In this
context,
experienced and dedicated staff within the
Group’s Risk Management function monitor the
risk parameters applied for the
estimation
of ECL. Furthermore, as part of the well-defined governance framework,
any revisions to the methodology used are approved by the
Group competent committees and
ultimately the Board Risk Committee (BRC).
3.2
Fair value of financial instruments
The fair
value of financial
instruments is
the price that
would be received
to sell an
asset or paid
to transfer
a liability in
an orderly
transaction
between market
participants in
the principal
(or most
advantageous)
market
at the
measurement
date
under current
market
conditions
(i.e. an
exit price)
regardless
of whether
that
price is
directly
observable
or estimated
using another
valuation
technique.
The fair
value of
financial instruments
that are
not quoted
in an
active market
is determined
by using
other valuation
techniques
including the use of valuation models. In addition, for financial instruments that trade infrequently and have little price transparency,
fair
value
is less
objective
and
requires
varying
degree
of
judgment
depending
on
liquidity,
concentration,
uncertainty
of market
factors,
pricing
assumptions
and
other
risks
affecting
the
specific
instrument.
In
these
cases,
the
fair
values
are
estimated
from
observable data in respect of similar financial instruments
or using other valuation techniques.
The valuation models used include
present value methods and other models based
mainly on observable inputs and
to a lesser extent
to non-observable inputs, in order to maintain
the reliability of the fair value measurement.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Where valuation models are
used to determine the fair
values of financial instruments that
are not quoted in an active market,
they
are
validated
and
periodically
reviewed
by
qualified
personnel
independent
of
the
personnel
that
created
them.
All
models
are
certified before they are used and are calibrated
to ensure that outputs reflect actual data and comparative
market prices. The main
assumptions and estimates, considered by
management when applying a valuation model include:
●
the likelihood and expected timing of future
cash flows;
●
the selection of the appropriate discount
rate, which is based on
an assessment of what a market
participant would regard
as an appropriate spread of the rate
over the risk-free rate;
and
●
judgment to determine what model to use in order
to calculate fair value.
To the extent practicable, models use only observable
data, however areas such as
credit risk (both own
and counterparty), volatilities
and correlations require Management to
make estimates to reflect uncertainties
in fair values resulting from the lack of market
data
inputs. Inputs into
valuations based on
unobservable data are
inherently uncertain
because there is little
or no current market
data
available. However,
in most
cases there
will be
some historical
data on
which to
base a
fair value
measurement and
consequently
even when unobservable inputs are used, fair values
will use some market observable inputs.
Information in respect of the fair valuation
of the Group’s financial assets and liabilities
is provided in note 5.3.
3.3
Classification of financial instruments
The Group applies significant judgment in assessing the classification
of its financial instruments and especially, in
the below areas:
Business model assessment
Judgment is exercised
in order
to determine
the appropriate
level at which
to assess the
business model. In
assessing the business
model of financial instruments, these are aggregated into groups (business lines) based on their characteristics, and the way they are
managed in order
to achieve the
Group’s
business objectives. In
general, the
assessment is performed
for lending exposures
at the
level
of
business
units
that
manage
the
respective
portfolio,
including
securitization
notes
issued
by
special
purpose
entities
established by the Group
and at the level of the measurement
category for debt
securities. However,
further disaggregation may be
performed by business strategy
or region.
In assessing the business model for financial
instruments, the Group performs a past sales evaluation of the
financial instruments and
assesses their expected evolution in the future. Judgment is
exercised in determining the effect of sales to a “hold
to collect” business
model depending on their objective and their acceptable level and frequency.
Contractual cash flow characteristics test
(SPPI test)
The
Group
performs
the
SPPI
assessment
of
lending
exposures
and
debt
securities
by
considering
all
the
features
which
might
potentially lead to SPPI failure. The above assessment may be
particularly challenging for more complex instruments with contractual
terms including leverage, prepayment
or extension options, securitizations
where the cash flows are linked
to the underlying assets,
non-recourse
arrangements,
as
well
as
environmental,
social
and
governance
linked
features
(sustainability
linked).
Judgment
is
applied by the responsible business
units when considering whether
certain contractual features significantly affect future cash flows,
are de-minimis or not genuine.
Accordingly, for
non-recourse financial assets, the Group assesses jointly criteria such as the adequacy of equity,
LTV (Loan-to-Value)
and DSCR (Debt-Service-Coverage
-Ratio) ratios
as well as the
existence of corporate
and personal guarantees.
For the securitization
notes
issued
by
special
purpose
entities,
either
established
by
the
Group
or
third
parties,
and
held
by
the
Group,
the
cash
flow
characteristics of the notes
and the underlying
pool of financial
assets as well
as the credit
risk inherent in
each securitization’s tranche
compared to
the credit
risk of all
of the underlying
pool of
financial assets,
are assessed.
Furthermore, in
order to
assess whether
any
variability
in
the
cash
flows
is
introduced
by
the
modified
time
value
of
money
element,
the
Group
performs
a
quantitative
assessment (as described
in note 2.2.9). For
the SPPI assessment
of sustainability linked
instruments that include
features that
may
change the contractual
cash flows, by
reducing or increasing
the interest rate
depending on whether the
borrower meets or
fails to
meet predetermined
ESG targets,
the Group
considers whether
such targets
are referenced
to an
index that
is not
specific to
the
borrower,
as
well
as
whether
the
related
contractual
cash
flows’
change
introduces
compensation
for
non-basic
lending
risks
(information about the Group’s
exposure in sustainability linked
instruments is provided in note 20). Moreover,
the Group evaluates
certain cases on whether the existence of performance-related
terms exposes the Group to asset risk rather to the borrower's credit
risk.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The Group has established a robust framework to perform the necessary assessments in accordance with Group’s
policies in order to
ensure
appropriate
classification
of
financial
instruments,
including
reviews
by
experienced
staff
for
lending
exposures
and
debt
securities.
3.4
Assess control over investees
Management exercises
judgment in
order to
assess if the
Group has control
over another
entity based on
the control
elements set
out in note 2.2.1 (i).
In particular, as part of its
funding activity and
non-performing loans’ management strategy, the Group sponsors certain securitization
vehicles, the relevant
activities of which have
been predetermined as part of
their initial design by the Group.
The Group is exposed
to variability of returns
from these vehicles
through the holding of
debt securities issued
by them or
by providing credit enhancements
in accordance with the respective contractual terms. In assessing whether it
has control, the Group considers whether it manages the
substantive decisions that could
affect these vehicles’ returns. Accordingly,
the Group assesses on a case-by-case basis the structure
of securitization transaction, including the respective
contractual arrangements, in order
to conclude if it controls these vehicles.
In
addition,
the
Group
is
involved
in
the
initial
design
of
various
mutual
funds
in
order
to
provide
customers
with
investment
opportunities. The
Group primarily
acts as
an agent
in exercising
its decision
making authority
as it
is predefined
by the
applicable
regulated framework.
As a result, the Group has concluded that it does not control
these funds.
Further information in respect of the structured
entities the Group is involved, either consolidated
or not, is provided in note 25.
3.5
Income tax
The Group is subject to income taxes
in various jurisdictions and estimates are required
in determining the liability for income taxes.
The Group
recognizes
liabilities
for
anticipated
tax
audit issues
based on
estimates
of whether
additional taxes
will be
due or
for
anticipated
tax disputes.
Where the
final tax
outcome of
these matters
is different
from the
amounts that
were initially
recorded,
such differences will impact the income tax and deferred
tax in the period in which such determination is made. Further information
in relation to the above is provided in
note 13.
In addition,
the Group
recognizes deferred
tax assets
to the
extent that
it is probable
that sufficient
taxable profit
will be
available
against
which
unused
tax
losses
and
deductible
temporary
differences
can
be
utilized.
Recognition
therefore
involves
judgment
regarding the
future financial performance
of the particular Group
legal entity in which
the deferred tax
asset has been recognized.
Particularly,
in order to determine the amount of deferred
tax assets that can be recognized,
significant management judgments are
required regarding the likely timing
and level of
future taxable profits. In
making this evaluation,
the Group has
considered all available
evidence, including management’s projections
of future taxable income and the tax legislation
in each jurisdiction.
The most significant judgment exercised by Management relates to the recognition of deferred tax assets in respect of losses realized
in Greece. In the event that, the Group assesses that it
would not be able to recover any portion of
the recognized deferred tax assets
in the future, the unrecoverable portion
would impact the deferred tax balances in the period in which
such judgment is made.
Further
information
in
respect
of
the
deferred
tax
assets
recognized
by
the
Group
and the
assessment
for
their recoverability
is
provided in note 13.
3.6
Retirement and termination benefit obligations
The present value of the retirement and termination benefits’ obligations depends on a number of factors that are determined on an
actuarial basis using a
number of assumptions, such as
the discount rate and future salary
increases. Any change in these
assumptions
impacts the carrying amount of the respective benefits’ obligations.
The Group determines the appropriate discount rate used to calculate the present value of
the estimated retirement and termination
benefits’ obligations,
at the
end of
each year
with reference
to interest
rates
of high-quality
corporate
bonds. In
countries where
there is no
deep market
in such bonds,
the yields on
government bonds
are used.
The currency and
term to
maturity of
the bonds
used are consistent
with the currency and estimated
average term to
maturity of the retirement
benefit obligations. The
salary rate
increase
assumption
is
based
on
future
inflation
estimates
reflecting
also
the
Group's
reward
structure
and
expected
market
conditions.
Other
assumptions
for
retirement
and
termination
benefits’
obligations,
such
as
future
inflation
estimates,
are
based
in
part
on
current and expected market
conditions.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
For information
in respect
of the
sensitivity analysis
of the
Group’s
retirement
and termination
benefits’ obligations
to reasonably
possible, at the
time of preparation
of these financial
statements,
changes in the
abovementioned key
actuarial assumptions, refer
to note 36.
3.7
Investment properties
Investment
property is
carried at
fair value,
as determined
by external,
independent and
certified valuators
on an
annual basis,
or
more frequently
if deemed
appropriate
upon assessment
of any
relevant
circumstances.
The primary
valuation method
applied in
determining the fair
value of the Group’s
investment properties
is the Discounted
Cash Flow (DCF) method
which is considered
the
most appropriate
in cases of income generating
assets. This method is
based on discounting the
net future cash flows
generated by
a property over the assumed holding period, by using an appropriate
market derived discount rate.
Accordingly,
the main factors underlying the determination
of fair value under the DCF method, are related
with rental income from
current leases and assumptions
about its future
growth in the light
of current market conditions, including
CPI indexation that is based
on CPI predictions for the
next 10 years, as well
as exit yields that
are determined based on each
property’s characteristics/use, future
prospects of the
economy and property
market in general
as forecasted
by the IMF or
other internationally recognized
institutions.
In addition, potential legal or other restrictions on the
aforementioned rental income levels are taken into account, where applicable.
The present value of each property
is derived by discounting the above projected
net cash flows series with an appropriate,
market-
derived
discount.
Such
discount
rate
is
calculated
by
taking
into
consideration
the
initial
yield
of
the
investment
property,
the
expected return, the real rental
growth and annual obsolescence of the property.
Other assumptions incorporated in the valuations include
future vacancy rates and periods, the
level of future maintenance and
other
operating costs, as well as sustainability
issues, where applicable.
Where
the
fair
value
is
determined
based
on
market
prices
of
comparable
transactions
those
prices
are
subject
to
appropriate
adjustments,
in
order
to
reflect
current
economic
conditions
and
Management’s
best
estimate
regarding
the
future
trend
of
properties market based on advice received from
its independent external valuers.
Further information in respect of the fair valuation
of the Group’s investment
properties is provided in note 27.
3.8
Provisions and contingent liabilities
Considering the
subjectivity and
uncertainty
inherent
in the
determination
of the
probability and
amount of
the abovementioned
outflows, the Group takes into account
a number of factors including primarily legal advice, the progress of the matter
and historical
evidence from
similar cases.
In the
case of
an offer
made within
the context
of the
Group’s
voluntary
exit scheme,
the number
of
employees expected to accept the
abovementioned offer along with their
age cluster is a
significant factor affecting the measurement
of the outflow for the termination benefits.
Further information in relation to
the Group’s provisions
and contingent liabilities is provided in notes 35 and 42.
3.9
Share-based payments
The Group
grants shares
and share
options to
its employees
as a
common feature
of employee
remuneration.
IFRS 2
requires the
recognition of
an expense for
those shares
and share options
at their
fair value
on the grant
date (equity-settled
plans). For shares
granted to employees, the fair value is measured directly
at the market price of the entity’s shares, adjusted
to take into account the
terms and conditions upon which the shares were granted. For share options
granted to employees, in many cases market
prices are
not available because the options granted
are subject to terms and conditions that do not apply to
traded options. If this is the case,
the Group estimates
the fair value of the
equity instruments granted
using a valuation technique,
which is consistent with
generally
accepted valuation methodologies.
The valuation
method and the
inputs used to
measure the share
options granted
to employees of
the Group are
presented in
note
39.
3.10
Leases
The Group, as a lessee, determines the lease term as the non-cancellable term of the
lease, together with any periods covered by
an
option to extend
the lease if it is
reasonably certain to
be exercised,
or any periods covered
by an option to
terminate the lease if
it
is reasonably certain not to be exercised.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The Group
applies judgement
in evaluating
whether it is
reasonably certain
or not to
exercise an
option to
renew or
terminate the
lease, by
considering all
relevant
factors
and economic
aspects that
create an
economic incentive.
The Group
reassesses the
lease
term if
there is
a significant
event or
change in
circumstances
that is
within its
control
that affects
its ability
to exercise
or not
to
exercise the
option to
renew or to
terminate, such
as significant leasehold
improvements or
significant customization
of the leased
asset.
In measuring
lease liabilities,
the Group
uses the
lessees’ incremental
borrowing
rate
(‘IBR’) when
it cannot
readily determine
the
interest rate implicit in the
lease. The IBR is the rate of interest
that the Group would have to
pay to borrow over a similar
term, and
with
a
similar
security,
the
funds
necessary
to
obtain
an
asset
of
a
similar
value
to
the
right-of-use
asset
in
a
similar
economic
environment.
Therefore,
estimation is
required when
no observable
rates are
available (such
as for
subsidiaries that
do not
enter into
financing
transactions) or when
they need to
be adjusted to
reflect the terms
and conditions of
the lease. The Group
estimates the IBR
using
observable inputs (such as government bond yields)
as a starting point when available, and
performs certain additional entity-specific
adjustments,
such as
credit spread
adjustments
or adjustments
to reflect
the lease
terms and
conditions. For
the Bank
and Greek
subsidiaries,
the
IBR
is
derived
from
the
estimated
covered
bonds
yield
curve,
which
is
constructed
based
on
observable
Greek
Government
Bond
yields,
while
for
international
subsidiaries
the
IBR
is
determined
on
a
country
basis,
taking
into
consideration
specific local conditions.
3.11
Insurance contracts
The measurement of
insurance contract liabilities involves the
exercise of judgment, estimates, and
assumptions, especially in
relation
to mortality
and morbidity
rates,
claims, lapse
and surrender
rates,
and costs.
The basic
approaches
used in
the measurement
of
insurance contract liabilities are described in Note 2.2.16. Additionally,
the following assumptions were used when estimating future
cash flows:
Mortality and morbidity rates
:
The
Group
reviews,
at
least
on
an
annual
basis,
the
validity
of
the
mortality
assumptions,
and
when
deemed
necessary
the
assumptions
are
adjusted
accordingly.
The
assumptions
are
set
based
on
the
internal
experience
of
the
Group
when
there
are
sufficient volumes or data to support a credible investigation. When internal experience is not sufficient the assumptions are set with
reference to industry experience
and commonly used tables.
Expenses
:
The Group applies judgement
in assessing whether cash
flows are directly attributable
to a specific portfolio
of insurance contracts.
The
Group
considers
as
attributable
cash
flows
fixed
and
variable
overheads
directly
attributable
to
the
fulfilment
of
insurance
contracts. The Group also reviews,
at least on an annual basis, the expense assumptions used in the cashflow projections.
Lapse and surrender rates
:
Lapse and surrenders assumptions relate
to the rate by which policyholders cancel/surrender
their policies. The assumptions are set
in line with recent Group experience, by adjusting
for expected improvements/deteriorations
where necessary.
Discount rates
Long term life insurance
contract liabilities are
calculated by discounting
expected future cash flows.
The Group uses the bottom-up
approach in determining the discount rates and hence
uses a risk-free rate, plus an illiquidity premium.
Risk free rates are determined
by reference to the European Insurance and
Occupational Pensions Authority (EIOPA) yields and the
illiquidity premium is determined
using EIOPA’s
volatility adjustment.
Risk adjustments for non-financial risk
The risk adjustment for non-financial risk is determined to reflect the
compensation that the Group requires for bearing non-financial
risk and its
degree of risk
aversion. The
risk adjustment
is determined using
a confidence level
technique and
specifically the scalar
approach method with its target confidence level
set at 80 percent which represents
the Group’s degree of risk
aversion.
3.12
Other accounting estimates and judgments
Information in respect of other estimates
and judgments that are made by the Group is provided
in notes 20, 23.2, 24, 28 and 30.
.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
4.
Capital Management
The Group’s capital
adequacy position is presented in the following table:
31 December
2024
31 December
2023
€ million
€ million
Equity attributable to shareholders
of the Company
8,899
7,899
Less: Goodwill
(42)
(44)
Less: Other regulatory adjustments
(465)
(507)
Common Equity Tier 1 Capital
8,392
7,348
Total Tier 1 Capital
8,392
7,348
Tier 2 capital-subordinated debt
1,201
1,074
Add: Other regulatory adjustments
174
-
Total Regulatory
Capital
9,767
8,422
Risk Weighted Assets
49,977
43,395
Ratios:
%
%
Common Equity Tier 1
16.8
16.9
Pro-forma Common Equity Tier 1⁽¹⁾
15.7
17.0
Total
Capital Adequacy Ratio
19.5
19.4
Pro-forma Total
Capital Adequacy Ratio⁽¹⁾
18.5
20.2
(1)
As of
31 December
2024, pro-forma
with the
completion of
the project
“Solar” (note
20), projects
“Leon” and
“Wave
VI” that
significant risk
transfer
recognition is subject to ECB’s
confirmation (note 20), as well
as with the accrual for
dividend distribution from financial year 2024
Group profits, (subject to
regulatory approval).
As of
31 December
2023, pro-forma
with the
completion of
the projects
“Solar”,
“Leon” and
the impact
from the
completion of
the
issuance of Subordinated Tier II debt instruments in January 2024.
Notes:
a) The profit of € 1,448 million attributable to the shareholders of the Company for the period ended 31 December 2024 (31 December 2023: profit of € 1,140
million) has been included in the calculation of the above capital ratios.
b) As of 31
December 2024, the decrease
in CET1 ratio, compared
to 31 December
2023, is mainly attributed
to the increase
of the RWAs
mainly due to the
inclusion of Hellenic Bank and its subsidiaries in
the Company’s consolidated financial statements
in 2024 and the new production of
loans, partly offset by i)
the Group’s organic profitability, ii)
the change in
the mapping, following
the publication of
the Commission Implementing
Regulation (EU) 2024/1872,
between
corporate credit ratings and
respective risk weighting factors (Credit
Quality Steps), set out in
Regulation EU 575/2013 and
iii) the change of
the applicable Risk
Weighting Factors (RWF) for Central Bank/Central Government assets, according to article 244 (applicable from 1 July 2024) of Regulation 2024/1623/EU.
c) Deferred
tax credits
(DTC) stand
at 36%
of CET
1 capital
(note 13).
In line
with the
Bank's initiative
to enhance
the quality
of its
regulatory capital,
the
amortisation of DTC will be accelerated for regulatory purposes starting from 2025, aiming at its elimination by 2033.
The Group
has sought
to
maintain
an actively
managed
capital
base to
cover
risks
inherent
in the
business.
The adequacy
of the
Group's
capital
is
monitored
using, among
other
measures,
the
rules
and
ratios
established
by
the
Basel
Committee
on
Banking
Supervision (BIS rules/ratios) which have been incorporated in the European Union (EU)
legislation through the Directive 2013/36/EU
(known
as
CRD
IV)
along
with
the
Regulation
575/2013/EU
(known
as
CRR),
as
they
are
in
force.
The
above
Directive
has
been
transposed into Greek legislation by Law 4261/2014, as in force. Furthermore, the CRR as amended by the Regulation 2020/873 (CRR
quick fix) provides, among others, for the extension by two years of the ability of the
banks to add back to their regulatory capital any
increase in provisions
for (stage
1 and stage
2) expected losses
compared to those
that they have
recognized on
1 January 2020 for
their financial assets, which have not been defaulted.
The relief which is applicable for 2024 is 25%.
On 19 June
2024, Regulation
2024/1623/EU and Directive
2024/1619/EU of the
European Parliament
and of the
Council of 31
May
2024,
amending
Regulation
575/2013/EU
and
Directive
2013/36/EU,
respectively,
were
published
in
the Official
Journal
of
the
European Union. The revised CRR
(CRR3) will, in general, become
applicable from 1 January 2025,
with a transitional period envisaged
for certain rules set
out therein. EU member states
will need to transpose
the revised CRDIV (CRD6)
into national law,
to be applied
from 11
January
2026.
In
addition,
following
its
publication
in
the
Official
Journal
of
the
European
Union,
the
Commission
Implementing Regulation (EU) 2024/1872 of 1 July 2024, amended the implementing
technical standards laid down in Implementing
Regulation
(EU)
2016/1799 as
regards
the mapping
tables
specifying the
correspondence
between
the
credit
risk
assessments
of
external credit assessment institutions and
the credit quality steps
set out in
Regulation (EU) No 575/2013
of the European Parliament
and of the Council.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Supplementary to the above, in the context of Internal Capital Adequacy Assessment Process (ICAAP), the Group considers a broader
range of risk types
and the Group’s risk management capabilities.
ICAAP aims ultimately to
ensure that the Group
has sufficient capital
to cover all material risks that it is exposed
to, over a three-year horizon.
Based on Council Regulation No 1024/2013, the European Central Bank (ECB) conducts annually a Supervisory Review and
Evaluation
Process (SREP) in order
to define the prudential
requirements of the
institutions under its supervision.
The key purpose
of the SREP
is
to
ensure
that
institutions
have
adequate
arrangements,
strategies,
processes
and
mechanisms
as
well
as
capital
and
liquidity
to ensure a sound management and coverage of their risks, to which they are
or might be exposed, including those revealed by stress
testing and risks the institution may pose to
the financial system.
According to the 2024 SREP decision, from December 2024 the P2R for the Group is set at 2.85% in terms of total capital (or at 1.60%
in terms of
CET1 capital). The change
in the P2R is the
outcome of the
consolidation of Hellenic Bank.
Based on the ECB’s
‘Guide on
the
supervisory
approach
to
consolidation
in
the
banking
sector’,
in
case
of
M&As,
the
P2R
of
the
combined
entity/group
is
determined based
on the
weighted
average
of the
P2R (based
on RWAs)
of the
two entities
(i.e. Eurobank
Group: 2.75%,
Hellenic
Bank: 3.45%).
Thus, as of 31 December 2024, the Group is required
to meet a Common Equity Tier 1 Ratio
of at least 12.45% (including AT1
capital
shortfall)
and a
Total
Capital
Adequacy
Ratio
of
at
least
15.16% (Overall
Capital
Requirement
or OCR)
including Combined
Buffer
Requirement of 4.31%, which is covered with
CET1 capital and sits on top of the Total
SREP Capital Requirement (TSCR).
From
1
January
2024,
the
O-SII
buffer
for
the
Group
increased
to
1.25%
(from
1%
in
2023),
in
accordance
with
the
Executive
Committee Act 221/1/17.10.2023 of the Bank of Greece, following a change in the methodology applied for the determination of the
O-SII buffer rate. In addition, in accordance with the Executive Committee Act 235/07.10.2024 of the Bank of Greece, from 1 October
2025, a countercyclical capital buffer rate of 0.25%
will apply to
banks’ exposures to Greece, which
is expected to increase the
Group’s
capital requirements by 15bps.
The countercyclical capital buffer is
updated on a
quarterly basis in
accordance with the
countercyclical
capital buffer rates
applicable in each country to which the Group has exposures.
The breakdown of the Group’s
CET1 and Total
Capital requirements,
applicable from 31 December 2024, is presented below.
31 December 2024
CET1 Capital
Requirements
Total Capital
Requirements
Minimum regulatory requirement
4.50%
8.00%
Pillar 2 Requirement (P2R)
1.60%
2.85%
Total SREP Capital Requirement
(TSCR)
6.10%
10.85%
Combined Buffer Requirement (CBR)
Capital conservation buffer
(CCoB)
2.50%
2.50%
Countercyclical capital buffer
(CCyB)
0.56%
0.56%
Other systemic institutions buffer
(O-SII)
1.25%
1.25%
Overall Capital Requirement (OCR), excluding
shortfall
10.41%
15.16%
AT1 capital
shortfall
2.04%
-
Overall Capital Requirement (OCR), including shortfall
12.45%
15.16%
The
above
CET1
capital
requirement
of
12.45%
takes
into
account
that
the
Group
had
no
AT1
capital
as
of
31
December
2024.
Assuming that
the Group
had fully utilized
the AT1
capital capacity
as at
31 December 2024,
the CET1
requirement would
stand at
10.41%.
Following the receipt of regulatory approval,
in December 2024, Hellenic Bank redeemed its outstanding AT1
instruments of €130m.
Further disclosures regarding capital
adequacy in accordance with the Regulation 575/2013 are
provided in the Consolidated Pillar 3
Report on the Company’s website.
Minimum Requirements for Eligible Own Funds and Eligible Liabilities (MREL)
Under the Directive
2014/59 (Bank
Recovery and
Resolution Directive)
as in force,
which was
transposed into
the Greek legislation
pursuant to Law
4335/2015 as in force,
European banks are
required to
meet the minimum requirement
for own funds
and eligible
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
liabilities (MREL). The Single Resolution Board (SRB) has determined Eurobank S.A. as the Group’s resolution entity and a Single Point
of Entry (SPE)
strategy for
resolution purposes. Based
on the latest
SRB’s communication,
the fully calibrated
MREL (final target)
to
be met by Eurobank S.A. on a consolidated basis from 30 June 2025 is
set at 27.80% of its total risk weighted assets (RWAs), including
a combined
buffer requirement
(CBR) of
4.31%. The
final MREL
target
is updated
by the
SRB on
an annual
basis. The
2025 interim
non-binding MREL
target,
applicable from
January 2025,
stands at
25.62% of
RWAs,
including a
CBR of
4.31%. As
at 31
December
2024, the Bank’s MREL ratio at consolidated
level stands at 28.22% of RWAs including profit for
the period ended 31 December 2024
(31
December
2023:
24.91%),
while,
the
Bank’s
MREL
ratio
at
consolidated
level,
pro-forma
with
the
completion
of
the
project
“Solar”, projects
“Leon” and “Wave
VI”,
the accrual
for dividend
distribution from
financial year 2024
profits (subject
to regulatory
approval) and for the new issuances of the Company
and the Bank in 2025 (see post balance sheet event below) stands at
29.37% of
RWAs, exceeding
both the interim non-binding and the
final binding MREL targets,
as stated above.Finally,
as of 31 December 2024,
the Group’s assets stood at €101.2bn, exceeding the threshold of €100bn for
the classification of the Group as ‘top-tier’
for resolution
purposes. Hence, in accordance with Art. 12k(4) Regulation 806/2014 (SRMR) after a
3-year transitional period, Eurobank is expected
to be subject to an MREL subordination target of
ca 18% (i.e. subordination target of 13.5% RWAs
plus the then applicable CBR). The
MREL subordination
target
shall be
met with
subordinated
instruments
(i.e. capital
instruments
and senior
non-preferred
bonds).
Considering that the Group’s
total capital ratio
is expected to remain above
the aforementioned level
until the end of 2027,
there is
no need for the Group to issue senior non-preferred
instruments.
On 6 December 2024,
the Company announced that
the Bank successfully completed
the issuance of €
600 million Senior Preferred
Notes. The
proceeds from
the issue
support Eurobank
Group’s
strategy
to ensure
ongoing compliance
with its
Minimum Required
Eligible Liabilities (MREL) requirement and aim at increasing Eurobank’s MREL ratio towards the end-state MREL targeted compliance
range (note 34).
Post balance sheet event
In January 2025, Eurobank Holdings successfully completed the issuance of € 589 million Subordinated
Tier 2 debt instrument and in
February 2025, the
Bank successfully completed
the issuance of € 350
million Senior Preferred
Notes. The proceeds
from the issues
will support the Group’s
strategy to ensure ongoing compliance with
its total capital adequacy and MREL (note 34).
2025 EU - wide stress test
The EU-wide stress test exercise is carried out on a sample of
banks covering broadly 75% of the banking sector in
the euro area, each
non-euro area EU Member State and Norway, as expressed in terms of total consolidated assets as of end 2023. To be included in the
sample, banks have to have a minimum of
€ 30 bn total assets.
As per the 2025
EU-Wide Stress Test Methodological Note (published on 11 November
2024, footnote 92), Eurobank Ergasias Services
and Holdings
S.A. has
been excluded
from the
sample of
the EU-wide
stress test
exercise
because of
a major
acquisition (Hellenic
Bank).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
5.
Financial risk management and fair value
5.1
Use of financial instruments
By
their
nature
the
Group's
activities
are
principally
related
to
the
use
of
financial
instruments
including
derivatives.
The
Group
accepts deposits from
customers, at both
fixed and floating
rates, and
for various periods
and seeks to
earn above average
interest
margins by investing these funds in high quality assets. The Group seeks to increase these margins by consolidating
short-term funds
and lending for longer periods at higher rates,
while maintaining sufficient liquidity to meet all claims that might
fall due.
The
Group
also
seeks
to
raise
its
interest
margins
by
obtaining
above
average
margins,
net
of
provisions,
through
lending
to
commercial and retail borrowers within a range of credit standing. Such exposures include both on-balance sheet loans and advances
and off-balance sheet guarantees and other commitments
such as letters of credit.
The Group also trades in financial instruments where it
takes positions in traded and over the counter financial
instruments, including
derivatives, to take
advantage of short-term
market movements in the equity and bond markets
and in currency and interest
rates.
5.2 Financial risk factors
Due to its activities,
the Group is
exposed to several
financial risks, such as
credit risk, market
risk (including currency,
interest rate,
spread, equity
and volatility
risk), liquidity,
operational
and other
non-financial risks,
as well
as to
sustainability
risks. The
Group's
overall risk management strategy seeks to minimize
any potential adverse effects
on its financial performance, financial position and
cash flows.
Risk Management objectives and policies
The Group
acknowledges that
taking risks
is an integral
part of its
operations in
order to
achieve its business
objectives. Therefore,
the Group’s
management sets adequate
mechanisms to identify those
risks at an
early stage and
assesses their potential
impact on
the achievement of these objectives.
Due to the fact that
economic, industry,
regulatory and operating conditions
will continue to change,
risk management mechanisms
are set in
a manner that
enable the Group
to identify and
deal with the risks
associated with those
changes. The Group’s
structure,
internal processes and existing control mechanisms
ensure both the
independence principle and
the exercise of sufficient supervision.
The Group's
Management considers
effective risk
management as
a top priority,
as well as
a major
competitive advantage,
for the
organization. As such, the Group has allocated significant resources for upgrading its policies, methods and infrastructure,
in order to
ensure compliance with the requirements of
the European Central Bank (ECB) and
of the Single
Resolution Board (SRB), the guidelines
of
the
European
Banking
Authority
(EBA)
and
the
Basel
Committee
for
Banking
Supervision
and
the
best
international
banking
practices.
The
Group
implements
a
well-structured
credit
approval
process,
independent
credit
reviews
and
effective
risk
management policies for all material risks it is exposed to, both in Greece and in each country of its international operations. The risk
management policies implemented by the Group are
reviewed mainly annually.
The maximum amount
of risk which the
Group is willing
to assume in the
pursuit of its strategic
objectives is articulated
via a set of
quantitative
and
qualitative
statements
for
specific risk
types,
including
specific tolerance
levels
as
described
in
the
Group’s
Risk
Appetite Framework. The objectives are to support the
Group’s business growth, balance a strong capital position with higher
returns
on equity and to ensure the Group’s
adherence to regulatory requirements.
The risk appetite that is
clearly communicated throughout the Group, determines risk culture and
forms the basis on which
the Group
establishes its risk limits
and risk policies. Aiming to
identify its material risks
,
the Group maintains
a well-defined Risk Identification
and Materiality Assessment (RIMA) Framework.
The identification and the
assessment of all risks is the
cornerstone for
the effective Risk Management.
The Group aiming to
ensure
a
collective
view
on
the
risks
linked
to
the
execution
of
its
strategy,
acknowledges
the
new
developments
at
an
early
stage
and
assesses the potential impact.
Board Risk Committee (BRC)
The Board Risk Committee (BRC)
is a committee of the
Board of Directors (BoD) and its
task is to advise
and support the BoD
regarding
the monitoring of Group’s overall actual and future risk appetite and
strategy, taking into account all types of risks to ensure that they
are in line with
the business strategy, objectives, corporate culture and values of the institution. The
BRC assists the BoD
in overseeing
the implementation
of Group’s
risk strategy
and the corresponding
limits set. It
also oversees
the implementation
of the strategies
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
for capital
and liquidity risk
management as well
as for all
material risks, such
as credit, market,
IRRBB, sustainability
risks and non-
financial
risks
such
as
operational,
reputational
conduct,
legal,
cyber,
outsourcing,
in
order
to
assess
their
adequacy
against
the
approved risk appetite limits.
The BRC consists of five (5) non-executive directors,
meets at least 10 times per year and reports to the BoD on a quarterly basis and
on ad hoc instances if it is needed.
Management Risk Committee
The Management Risk Committee (MRC) is a management committee established by the
CEO and its main responsibility is to
oversee
the risk management framework of the Group. As part of its responsibilities, the MRC facilitates
reporting to the BRC on the range of
risk-related topics under its purview,
including sustainability risks. The MRC supports the Group Chief Risk Officer to identify material
risks, to promptly escalate them
to the BRC
and to ensure that
the necessary policies
and procedures are in
place to prudently manage
risks and to comply with regulatory requirements.
Group Risk Management
The
Group’s
Risk
Management
Unit
which
is
headed
by
the
Group
Chief
Risk
Officer
(GCRO),
operates
independently
from
the
business units and is responsible for the identification, assessment,
monitoring, measurement and management of the risks that the
Group
is exposed to.
It comprises of the
Group Credit (GC),
the Group Credit
Control (GCC), the
Group Credit
Risk Capital Adequacy
Control
(GCRCAC), the Group
Market and
Counterparty Risk
(GMCR), the Group
Operational and Non-Financial
Risks (GONFR), the
Group Model
Validation
and Governance
(GMVG), the
Group Risk
Management Strategy
Planning Operations
& Sustainability
Risk
(GRMSPO&SR), the Supervisory Relations and Resolution Planning (SRRP), and the Risk Analytics (RA) Units.
Furthermore, the
Group is
in the process
of aligning Hellenic
Bank risk management
policies and practices
with those of
the Group
across key risk types, following
the acquisition of control in the third
quarter of 2024 and in view of the completion of the Take
Over
Bid process to acquire 100% of Hellenic Bank’s
shares. This includes harmonizing key risk policies, standardizing
regulatory as well as
internal risk reporting, and aligning risk methodologies.
Non-Performing Exposures (NPEs) management
The Bank realizes the NPE Strategy
Plan through its implementation
by doValue Greece
for the assigned portfolio and
the successful
securitization transactions.
Troubled Assets Committee
The
Troubled
Assets
Committee
(TAC)
is
established
according
to
the
regulatory
provisions
and
its
main
purpose
is
to
act
as
an
independent body,
closely monitoring the Bank’s troubled
assets portfolio and the execution of its NPE Management
Strategy.
Remedial and Servicing Strategy (RSS)
The Remedial Servicing and Strategy (RSS) is responsible: a) for the management of the
non-performing and early arrears loans of the
Bank, b) for structured transactions which create capital (such as Synthetic SRT STS securitizations) and/or offer credit protection and
c) for cooperation with the other units of Group
Strategy for other transactions and initiatives.
RSSis closely
monitoring the
overall performance
of the NPE
portfolio as
well as the
relationship of
the Bank with
doValue
Greece.
Furthermore,
following
Eurobank’s
commitments
against
the
significant
risk
transfer
(SRT)
monitoring
regulatory
requirements
pertaining to Bank’s
concluded transactions, RSS
has a pivotal role
in ensuring that relevant
process is performed
smoothly and in a
timely manner and
that any shortcomings are
appropriately resolved, while providing any
required clarifications or additional
material
required by the regulatory authorities.
The Head of
RSS reports to the
General Manager of Group Strategy.
In this context, RSS
has been assigned
inter alia with
the following
responsibilities:
●
Structure
new
transactions
and perform
the
execution
of
any
transaction
processes,
by
also
establishing
negotiation
of
Commercial / Legal Terms
as well monitoring of these transactions
●
Develop and actively monitor the NPE targets
and reduction plan
●
Set the strategic principles, priorities, policy framework
and KPIs under which doValue Greece is servicing the portfolio
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
●
Closely monitor the execution of the
approved strategies, as well as all
contractual provisions under the relevant contractual
agreements for Eurobank’s
portfolio assigned to doValue Greece
including the securitized portfolio of ERB Recovery
DAC
●
Monitoring of
the performance
of the
senior notes
of the securitizations
in collaboration
with Group
Risk so
as to
ensure
compliance to significant risk transfer
(SRT) and to the Hellenic Asset Protection Scheme (HAPS)
●
Budget and monitor the Bank’s expenses
and revenues associated with the assigned portfolio
●
Cooperate closely with doValue
Greece on a daily basis in achieving the Group’s
objectives
●
Maintain supervisory dialogue
5.2.1 Credit Risk
Credit risk
is the risk
that a
counterparty will
be unable
to fulfill
its payment
obligations in
full when due.
Credit risk
is also related
with country risk and settlement risk, specified below:
a)
Country risk
is the
risk of
losses arising
from cross
-border lending
and investment
activities and
refers
to the
uncertainty
associated
with exposure
in a
particular country.
This uncertainty
may relate
to a
number of
factors
including the
risk of
losses following nationalization, expropriation,
debt restructuring and foreign exchange
rates’ movement.
b)
Settlement
risk
is
the
risk
arising
when
payments
are
settled,
for
example
for
trades
in
financial
instruments,
including
derivatives
and
currency
transactions.
The
risk
arises
when
the
Group
remits
payments
before
it
can
ascertain
that
the
counterparties’ payments have
been received.
Credit
risk
arises
principally
from
the
wholesale
and
retail
lending
activities
of
the
Group,
as
well
as
from
credit
enhancements
provided, such as financial guarantees and
letters of credit. The Group
is also exposed to credit risk arising from other activities
such
as investments in debt securities, trading, capital markets and settlement activities. Taking
into account that credit risk is the primary
risk the Group is exposed to, it is very closely managed and
monitored by specialised risk units, reporting to the GCRO.
(a) Credit approval process
The credit
approval and
credit review
processes are
centralized
both in
Greece and
in the
International operations
.
Segregation of
duties
ensures
independence
among
executives
responsible
for
the
customer
relationship,
the
approval
process
and
the
loan
disbursement, as well as monitoring of the loan during its lifecycle.
Credit Committees
The credit
approval process
in Corporate
Banking is centralized
through establishment
of Credit
Committees with
escalating Credit
Approval Levels. Main Committees of the Bank
are the following:
•
Credit Committees (Central
and Local) authorized to approve
new financing, renewals or amendments
mainly for domestic
groups in
the existing
credit limits,
in accordance
with their credit
approval authority,
depending on total
limit amount
of
the customer/group and risk category
(i.e. high, medium or low), as well as the value and type of security;
•
Special Handling Credit Committees authorized to
approve credit requests and take
actions for distressed clients;
•
International
Credit
Committees
(Regional
and
Country)
established
for
the
wholesale
borrowers
of
the
Group’s
international bank subsidiaries, authorized to approve new limits, renewals or amendments to existing limits, in accordance
with their credit approval
authority, depending on
total customer exposure
and risk category (i.e. high, medium
or low), as
well as the value and type of security; and
•
International
Special
Handling
Committees
established
for
handling
distressed
wholesale
borrowers
of
the
Group’s
international bank subsidiaries.
The Credit Committees meet on a weekly basis or more frequently,
if needed.
Group Credit (GC)
Within an environment of increased risk
requirements, Group Credit (GC) mission is
to safeguard the Group’s asset side, by evaluating
credit risk
and making
recommendations,
so that
borrower’s
credit exposure
is acceptable
and within
the approved
Risk Appetite
Framework. GC is headed by the Group Chief Credit
Officer (GCCO) with direct reporting to the Group
Chief Risk Officer (GCRO).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
GC operations
are comprised
of two
functions, i.e.
the Corporate
Credit, including
both the domestic
and the
foreign underwriting
activities (the latter only
for material exposures of
International Subsidiaries), and
Retail Credit respectively, covering the underwriting
needs of the SBB portfolio and the Individuals Lending (mortgage, consumer
loans, auto-moto loans and credit cards).
1.
Corporate Credit
(a) Domestic and Greek related portfolio: the underwriting function includes the review of
credit requests originating from Corporate
Units handling
large and
medium scale
corporate
entities of
every risk
category and
specialised lending
units such
as Shipping
and
Structured Finance (Commercial
Real Estate,
Hotels & Leisure,
Project Finance, M&A
Financing) and Private
Banking. Major tasks
of
the respective workstream and involved
credit units pertain to the following:
•
Evaluation
of
credit
applications
and
issuance
of
an
independent
Risk
Opinion
when
required
according
to
internal
procedures, which includes:
(i)
assessment
of
the
customer
credit
profile
based
on
the
qualitative
and
quantitative
risk
factors
identified
(market,
operational, structural and financial)
(ii) recommendations for the formulation of bankable, well-secured and well-controlled
transactions (credit facility), as well
as
(iii) review and confirmation of the ratings
of each separate borrower to reflect
the risks acknowledged
•
Participation with voting right in all credit committees
as per the Credit Approval procedures
•
Active participation in
the regulatory audits and
major internal projects of
the Bank, providing
at the same
time credit related
knowledge, expertise and support to other Units
•
Preparation
of specialised reports
to Management
on a regular
basis, with regards
to the Top
25 largest,
in terms of
total
exposure, borrower Groups,
statistics on the new approved
financings and leveraged transactions.
(b)
International
Subsidiaries’
portfolio:
The
GC
through
its
specialized
International
Corporate
Credit
Unit
(IC)
is
responsible
to
actively
participate
in
the
evaluation
of
credit
applications
that
exceed
a
certain
threshold
for
the
wholesale
portfolio
of
the
International
Subsidiaries covering
Bulgaria,
Cyprus, and
portion of
the loan
portfolio
of Luxemburg
(and London).
Moreover,
the
respective unit’s tasks and responsibilities
are highlighted below:
•
Participation with voting right in all International Committees (Regional and Special Handling) and Country Risk Committees
(CRCs)
•
Participation
in
the
sessions
of
Special
Handling
Monitoring
Committees
for
Bulgaria
which
monitor
and
decide
on
the
strategy
of problematic
corporate
relationships with
loan outstanding
exceeding a
certain threshold,
that is
jointly set
by
ICC and Country TAG
•
Advice on best practices to the Credit Risk Units of International
Subsidiaries
GC is also responsible for the preparation
of all credit committees’ agendas, distribution of the respective
material and maintenance
of the respective Credit Committees’ minutes.
2.
Retail Credit
The scope of the Retail
Credit is the assessment of credit
applications submitted by Retail
Business Units, in relation to Borrowers
of
the performing
retail credit
portfolio (SBB
loans and
Individual Banking).
Such applications
refer to
new loans,
review /
renewal of
existing lines and after sales requests.
The main tasks of Retail Credit function are
outlined below:
•
Assess credit
requests in
alignment with
the credit
risk assessment
criteria and
methodology provided
in the
appropriate
Credit Policy Manual, in accordance with the defined
approval levels.
•
Analyze and evaluate risk factors depending
on the type
of credit request based
on both financial
and qualitative information
•
Prepare an independent Credit Opinion ensuring that the risks
identified are dully reflected in the Borrower’s
Rating
•
Participate with voting
rights in the credit committees
as per the credit
approval process,
according to the Approval
Levels
defined in the CPM
•
Active participation in
the regulatory audits and
major internal projects of
the Bank, providing
at the same
time credit related
knowledge, expertise and support to other units
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
(b)
Credit risk monitoring
Group Credit Control
The Group Credit
Control
(GCC) monitors
and assesses the
quality of all of
the Group’s
loan portfolios and
operates independently
from the business units of the Bank. The GCC reports directly to the GCRO.
The main responsibilities of the GCC are to:
•
supervise, support and maintain
the credit rating and impairment
systems used to assess the
wholesale and Large SB
lending
customers;
•
monitor and review the performance of all of the Group’s
loan portfolios;
•
supervise and control the foreign subsidiaries’ credit
risk management units;
•
monitor on
a regular
basis and
report on
a quarterly
basis to
the Board
of Directors
and the
BRC of
risk exposures,
along
with accompanying analyses;
•
monitor and evaluate the
efficiency of adopted strategies
and proposed solutions in terms
of dealing with Non-Performing
Exposures (NPEs)
and the
achievement of
targets
for NPEs
reduction, as
communicated
and agreed
with the
Supervisory
Authorities;
•
conduct field
reviews and
prepare written
reports to
the Management
on the
quality of
all of the
Group’s
loan portfolios
and adherence with EBA prevailing regulations;
•
monitor the proper EBA classifications in accordance
with the relevant provisions and guidelines;
•
participate in the approval of new credit policies and
new loan products;
•
participate in the Troubled
Asset Committee;
•
attend meetings of Credit Committees and
Special Handling Committees, without voting right;
•
formulate
the Group’s
credit
impairment
policy and
measure
the
provisions
of
the
Greek loan
portfolios
along with
the
relevant reporting to Management;
•
regularly review the adequacy of provisions of all of the Group’s
loan portfolios;
•
formulate, in collaboration
with the responsible lending Units the credit policy manuals for performing
borrowers;
•
provide guidance and monitor the process of designing and reviewing
credit policies before approved
by Management.
•
Through field
/ thematic reviews
on a sample
basis monitor the
proper application
of Real Estate
collaterals’ valuation,
as
per the Banks’ Collateral Valuation
policy and procedures;
•
monitor the supervisory,
regulatory developments,
emerging trends and
best practices within
its purview in order
to keep
Management abreast and propose required
actions;
•
Lead or participate in various risk related
projects including but not limited to supervisory
investigations, stress
tests, Asset
Quality Reviews, process improvement
projects etc.
Group Credit Risk Capital Adequacy Control
The Group Credit Risk Capital Adequacy Control develops and maintains the credit risk assessment models for the loans portfolio and
securitized
exposures
of
the
Group,
performs
capital
adequacy
calculations
and
assessment
for
the
loan
portfolios
of
the
group,
conducts internal & external stress test exercises as well as well as
forecasting of risk parameters, impairments in the context of IFRS9
and
RWAs
and
the
three
year
business
plan.
In
addition,
prepares
the
Pillar
2
assessment
for
credit
risk,
foreign
exchange
risk,
concentration risk and securitisation risk. The Unit
reports directly to the GCRO.
Specifically, the main responsibilities
of the Group Credit Risk Capital Adequacy Control
are to:
•
control,
measure
and
monitor
the
capital
requirements
arising
from
the
Group’s
loan
portfolio
along
with
the
relevant
reporting to Management and regulators
(ECB/SSM);
•
perform significant Risk Transfer
(SRT) tests and monitor independent synthetic
and traditional securitsations
•
manage the models
development, implementation
and monitoring of
the internal models
and IFRS9 models
of Probability
of Default (PD), Loss Given Default (LGD)
and Exposure at Default (EAD) for evaluating
credit risk
Notes to the Consolidated Financial Statements
.
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•
measure and monitor the risk parameters
(PD, LGD, EAD)
for the purposes of internal capital adequacy
assessment, as well
as the estimation
of risk
related parameters (such as
forecast 12-m PD, forecast lifetime PD)
for IFRS 9
impairment calculation
purposes;
•
review the grouping
of lending exposures
and ensuring their homogeneity
in accordance with the
Group’s IFRS
accounting
policies
•
development and monitoring of the significant increase
in credit risk (SICR) thresholds under IFRS9 standard;
•
prepare monthly
capital adequacy calculations
(Pillar 1) and
relevant management,
as well as
regulatory reports
(COREPs,
SREP) on a quarterly basis;
•
projection of asset quality and capital requirements
for the loan book (projected impairments and RWAs),
in the context of
the business plan, ICAAP and recovery plan and participation in the relevant
committees;
•
perform stress tests, both internal
and external (EBA/SSM), and maintain the credit risk
stress testing infrastructure;
•
coordinate the stress testing
exercises for the loan portfolios at
Group Level;
•
prepare the credit risk analyses for Internal
Capital Adequacy Assessment (ICAAP)/ Pillar 2 purposes;
•
prepare the Basel Pillar 3 and relevant IFRS9 disclosures
for credit risk;
•
regularly
report
to
the
GCRO,
to
the
Management
Risk
Committee
and
to
the
Board
Risk
Committee
on:
risk
models
performance,
risk
parameters
(PD,
LGD,
EAD),
forbearance
reporting,
vintage
analysis
and
default
/
redefault
statistics
portfolios forward looking analysis and new
disbursements quality.
•
guide, monitor and supervise the Credit Risk divisions of the subsidiaries on modelling, credit stress testing and other credit
risk related regulatory issues.
•
monitor and guide Group’s
international subsidiaries on credit risk related
ICAAP,
stress testing and other regulatory
credit
risk related issues, based on Group standards.
Review of local credit risk stress test
exercises;
•
support the business units in the use
of credit risk models in business decisions,
for funding purposes, in the capital
impact
assessment of strategic
initiatives and the development
and usage of risk related
metrics such as risk adjusted
pricing, Risk
Adjusted Return on Capital (RAROC) etc.; and
•
assist Remedial Servicing Strategy in the risk assessment
and risk impact of various programs and products.
Group Model Validation and Governance
1.
Group Model Validation and
Governance was set up with key mandates:
•
the establishment of a comprehensive model validation
and governance framework, and
•
the independent validation of significant models (credit risk, pricing, profitability etc.) used by the Group, in order to ensure
that the results produced are correct,
cover fully business needs, as well as that the methodologies and tools
applied are in
alignment with industry standards and the corresponding
regulatory requirements.
2.
In more detail, the tasks of the Unit are
outlined as follows:
•
Prepare
and
update
the
Group’s
Models
Framework
(to
include
model
definition,
roles
involved
per
model,
model
classification
principles
and methodology,
model validation
principles,
materiality
classifications
and thresholds,
models’
registry governance, etc)
•
Establish and update the Group’s
Models Registry
•
Review models’ classification, in accordance with the
methodology provided in the Group Models Framework
•
Support and advise Group subsidiaries in the implementation of the Group
Models Framework
•
Prepare and update the Group Models Validation
Framework
•
Design and update the methodologies
and procedures used
for model validation tests,
as defined in the Models Validation
Framework.
•
Prepare annual models’ validation/revalidation
plan.
•
Propose and escalate for approval
the quantitative thresholds, in order to
assess the results of the validation tests.
•
Conduct model validation tests in alignment with the Group
Model Validation Framework
and regulatory requirements.
•
Prepare detailed
reports with the model
valuation results according
to the specific requirements
of the model validated,
if
any
Notes to the Consolidated Financial Statements
.
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•
Support
and
advise
Group
subsidiaries
with
regards
to
the
preparation
and
implementation
of
their
model
validation
framework.
•
Disseminate models’ validation results within the Group,
as appropriate.
•
Prepare action plan for
remediation actions, if any,
as a result of the model
validation tests implemented,
and escalate the
plan for its approval by the appropriate
Management Authority
•
Participate in the sign-off of new models for
assessing ratings’ system accuracy
and suitability.
•
Monitor industry practices on the development
and use of models as well as related ECB guidelines and restrictions.
•
Monitor changes in ECB guidelines on models’ validation.
3.
As
of
September
2024,
the
Unit
has
additionally
assumed
responsibility
for
the
validation
of
Eurobank’s
compliance
to
the
requirements of
BCBS 239 (Risk
Data Aggregation
and Risk Reporting
framework). In
this context,
the relevant
tasks of
the unit are
outlined as follows:
•
Design and maintain an effective RDARR Validation
Framework describing the relevant methodologies and processes based
on most recent relevant regulatory
guidelines and other requirements.
•
Prepare annual RDARR compliance validation
plan.
•
Perform
Periodic validations
of level
of compliance
with regards
to the
implementation
of the
BCBS 239
Principles in
the
Group’s RDARR
processes and systems, in a timely manner,
in line with the RDARR Validation Framework
•
Perform periodic reviews of the validation
activities carried out by material subsidiaries.
•
Report the Group’s level of compliance with the BCBS 239
Principles in the annual validation report, in
the form of an overall
compliance score,
reflecting
the overall
results
derived
following
the completion
of all
its annual
validation
activities, as
described in the RDARR Validation
Framework
•
Disseminate validation results within the
Group, as appropriate.
•
Prepare action plan for remediation actions, if any, as a result of the validation tests implemented, and escalate the plan for
its approval by the appropriate Management
Authority
•
Supervise
and
review
of
changes
in
the
BCBS
239
Overarching
Framework,
in
order
to
proceed
with
the
necessary
amendments (if any) in the RDARR Validation
Framework
Group Market and Counterparty Risk
Group Market
and Counterparty Risk (GMCR) is responsible
for the measurement,
monitoring and periodic reporting
of the Group’s
exposure to counterparty
risk (issuer risk and market driven counterparty
risk), which is the risk of loss due to the custome
r’s failure
to
meet
its contractual
obligations
in the
context
of treasury
positions,
such as
debt
securities, derivatives,
repos,
reverse
repos,
interbank placings, etc.
In addition, GMCR monitors, controls and regularly reports country limits, exposures and escalates breaches to the Management and
to Committees.
GMCR uses a
comprehensive methodology
approved by
the BRC, for
determining the
acceptable country
risk level,
including the countries in which the Group has a strategic
presence.
The
Group
sets
limits on
the level
of
counterparty
risk
that
are
based
mainly
on
the counterparty’s
credit
rating,
as
provided
by
international rating agencies, the product type and
the maturity of the
transaction (e.g. control limits on net
open derivative positions
by both amount and term, sovereign bonds exposure,
corporate securities, asset backed securities etc.).
GMCR maintains and updates
the limits’ monitoring systems
and ensures the correctness and
compliance of all financial institutions
limits with the Bank’s policies as approved
by the Group’s relevant
bodies.
The utilization of the abovementioned limits, any excess of them, as well as the aggregate
exposure per Group’s
entity, counterparty
and product type are monitored by
GMCR on a daily basis. Risk mitigation contracts
are taken into account
for the calculation of the
final exposure.
Also, GMCR ensures that the
exposure arising from counterparties complies
with the approved country limits
framework. The GMCR’s
exposure
measurement
and
reporting
tool
is
also
available
to
the
Group’s
subsidiaries
treasury
divisions,
thus
enabling
them
to
monitor each counterparty’s exposure
and the limit availability.
Additionally,
for
the
Banks’
corporate
bond
portfolio,
GMCR
measures
and
monitors
daily
the
total
notional
limits,
the
sectoral
concentration
and the
maximum size
per issuer.
It uses
a measurement
tool for
monitoring any
downgrades and
any idiosyncratic
spread widening from purchase and any breach
is communicated to the Management and to
the relevant Committees.
Notes to the Consolidated Financial Statements
.
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GMCR implements the
market’s best practices and safeguards the compliance
of all involved parties
to limits’ policies
and procedures.
To
this direction,
for various
units and
International
subsidiaries, GMCR
provides
support and
guidance for
implementation
of the
limits’ guidelines and policies.
Furthermore,
GMCR prepares
specialized
reports for
the Management/Committees
along with
regular reporting
that includes
the
exposure
to the
Hellenic Republic
and a
report
that
is based
on the
calculation
of the
Lifetime
Expected
Losses for
the exposure
towards the Hellenic Republic (HR).
(c) Credit related commitments
The primary purpose of credit related commitments is
to ensure that funds are available to a
customer as agreed. Financial guarantee
contracts carry
the same credit
risk as loans
since they represent
irrevocable assurances
that the
Group will
make payments
in the
event that a customer
cannot meet its obligations
to third parties. Documentary
and commercial letters
of credit, which are written
undertakings by the Group
on behalf of a customer
authorizing a third party
to draw drafts
on the Group up to
a stipulated amount
under specific terms
and conditions,
are secured by
the underlying shipment
of goods to
which they relate
and therefore
carry less
risk than a loan. Commitments to extend credit
represent contractual commitments
to provide credit under pre-specified terms
and
conditions (note 42) in the form of loans, guarantees or letters of credit for which the
Group usually receives a commitment fee. Such
commitments are irrevocable over the
life of the facility or revocable only in response
to a material adverse effect.
(d) Concentration risk
The Group
structures the
levels of
credit risk
it undertakes
by placing
exposure limits
by borrower,
or groups
of borrowers,
and by
industry segments.
The exposure
to each
borrower is
further restricted
by sub-limits
covering on
and off-balance
sheet exposures,
and daily delivery risk limits in relation to trading items
such as forward foreign exchange
contracts.
Such risks are
monitored on a
revolving basis and are
subject to an
annual or more
frequent review. Risk concentrations are monitored
regularly
and
reported
to
the
BRC.
Such
reports
include
the
25
largest
exposures,
major
watch
list
and
problematic
customers,
industry analysis, analysis by rating/risk class, by delinquency bucket,
and loan portfolios by country.
(e) Rating systems
Rating of wholesale lending exposures
The Group has decided upon the differentiation of rating models for wholesale lending activities, in order to reflect appropriately the
risks
arising
from
customers
with
different
characteristics.
Accordingly,
the
Group
employs
the
following
rating
models
for
the
wholesale portfolio:
•
Moody’s Risk Analyst
model (“MRA” or “Fundamental
Analysis”-“FA”)
is used to assess the
risk of borrowers
for Corporate
Lending.
•
Internal Credit Rating model (“ICR”) is used for
those customers that cannot be rated
by MRA.
•
Slotting rating models are employed
in view of assessing the risk of specialized exposures,
which are part of the Specialized
Lending corporate portfolio.
•
Transactional
Rating model (“TR”) has
been developed in
order to
assess the risk
of transactions
taking into
consideration
their collaterals/guarantees.
•
Finally,
an
assessment
of
the
borrowers’
viability
and
the
identification
of
impairment
triggers
is
performed
using
the
“Unlikely to Pay” (“UTP”) / impairment test.
MRA, ICR, Slotting and ”UTP” functions are supported by the CreditLens (“CL”)
computing platform provided
by an external provider
(Moody’s Analytics), while the TR is internally developed
and is being supported by the core applications of the Bank.
MRA follows
the Moody’s
fundamental analysis
(FA)
approach. The
FA
models belong
to a
family of
models defined
as Knowledge
Based Systems and rely on a
probabilistic reasoning approach. They use quantitative and qualitative information of
individual obligors
in
order
to
assess
their
creditworthiness
and
determine
their
credit
rating.
In
particular,
MRA
takes
into
account
the
company's
balance sheets, profit & loss accounts and cash flow statements to calculate key ratios. Its ratio analysis includes assessments of each
ratio’s
trend across multiple periods, both in terms of the slope
and volatility of the trend. It also compares
the value of the ratio for
the most recent period
with the quartile values for
a comparable peer group.
Moreover,
MRA is supplied with a commonly
used set
of qualitative
factors
relating to
the quality
of the company’s
management, the
standing of
the company,
including the
company’s
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
transaction behavior towards the Bank, and the
perceived riskiness of the
industry. MRA is used for the assessment
of all legal entities
with full accountancy tax books irrespective
of their legal form, and is calibrated
on the Greek corporate environment.
The MRA is
not employed
for certain
types of entities
that use different
accounting methods
to prepare
their financial statements,
such as Insurance companies and brokerage firms. Moreover,
entities such as start-ups that have not produced financial information
for at least
two annual accounting periods
are not rated
with MRA. In such cases, the
Internal Credit Rating
(“ICR”) is utilized, which
is
a
scorecard
consisting
of
a
set
of
factors
grouped
into
3
main
sections
corresponding
to
particular
areas
of
analysis:
Financial
Information,
Qualitative
Criteria,
and
Behavior
Analysis.
In
addition,
the
Group
performs
an
overall
assessment
of
wholesale
customers, based both on their rating
(MRA or ICR) and the collaterals and guarantees
regularly at every credit assessment. In 2021,
in
combination
with
the
application
of
the
new
Definition
of
Default,
the
Bank
calibrated
its
MRA
and
ICR
models,
which
were
approved by the regulatory authorities.
With reference to Specialized Lending portfolio (for which the Bank is using Slotting rating models) and in line with European Banking
Authority (EBA) definitions, it comprises types of
exposures towards entities specifically created to finance or operate physical assets,
where the primary source of
income and repayment
of the obligation lies directly
with the assets being financed. Accordingly,
three
of its
product lines
that are
included in
the Specialized
Lending exposure
class: Project
Finance (assessed
with the
Project Finance
Scorecard), Commercial Real Estate
(assessed with the CRE investor & CRE Developer
Scorecards) and Object Finance (assessed with
the Object Finance Scorecard tailored for
the Shipping portfolio).
In addition, the
Group has developed
an Unlikely to Pay/Impairment test. Unlikeliness
to pay refers to circumstances when
a Borrower
is assessed as unlikely
to pay its credit
obligations in full without
realization of collateral,
regardless of the existence
of any past due
amount or of the days past due (i.e. to exposures less than 90 dpd). The impairment test , which is performed to all borrowers during
every credit assessment is implemented in the CL platform
and includes clearly defined indicators of unlikeliness to
pay (UTP). These
indicators are separated
in “Hard” and “Soft” UTP triggers.
•
Hard UTP indicators
lead directly to
a recognition of
non-performing (automatic
NPE classification), as
in most cases these
events, by their very nature, directly fulfil the definition
of UTP and there is little room for interpretation.
•
Soft
UTP
triggers
when
applied,
do
not
automatically
mean
that
an
exposure
is
non-performing,
but
that
a
thorough
assessment should be performed (assessment prior to
NPE classification).
The Group has further enhanced
its wholesale credit risk assessment
models linking risk parameters estimation with macro-economic
factors allowing the forecasting
of rating transitions under different
macroeconomic scenarios (base, adverse and optimistic).
The rating systems described
above are an integral part of the wholesale banking decision-making
and risk management processes:
•
the credit approval or rejection, both at the origination
and review process;
•
the allocation of competence levels for
credit approval;
•
risk-adjusted pricing;
•
the calculation of Economic Value
Added (EVA) and internal capital
allocation; and
•
the impairment calculation (staging criteria and
subsequent ECL estimation of forecasted
risk parameters).
Rating of retail lending exposures
The Group
assigns credit
scores to
its retail
customers
using a
number of
statistically-based
models both
at the
origination and
on
ongoing basis
through behavioral
scorecards.
These models have
been developed
to predict,
on the
basis of available
information,
the probability of default, the loss given default and the exposure at default. They cover the entire spectrum of retail products (credit
cards, consumer lending, unsecured revolving credits,
car loans, personal loans, mortgages and small business loans).
The
Bank’s
models
were
developed
based
on
historical
data
and
credit
bureau
data.
Behavioral
scorecards
are
calculated
automatically on a monthly basis, thus ensuring that the credit risk
assessment is up to date.
The
models
are
applied
in
the
credit
approval
process,
the
credit
limits
management,
as
well
as
the
collection
process
for
the
prioritization of the accounts in
terms of handling. Furthermore, the
models are often used
for the risk segmentation of
the customers
and the
risk based
pricing of
particular segments
or new
products
introduced
as well
as in
the calculation
of the
Economic
Value
Added (EVA) and Risk Adjusted Return
on Capital (RaRoC) measures.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
In the context of IFRS9 implementation, the Bank
has further enhanced its retail credit
risk assessment models linking risk
parameters
estimation with macro-economic factors allowing their
forecasting over one year and
lifetime horizon under different macroeconomic
scenarios (base, adverse and optimistic) and supporting the staging analysis and allocation to risk classes under homogeneous pools.
The Group
Credit Risk
Capital Adequacy
Control
monitors the
capacity of
rating
models and
scoring systems
to classify
customers
according to
risk, as well as
to predict the
probability of default
and loss given
default and exposure
at default on
an ongoing basis.
The
Group
Models
Validation
and
Governance
implements
the
Bank's
validation
policy
which
complies
with
international
best
practices and regulatory requirements. The Bank verifies the validity of the rating models and scoring systems on an annual basis and
the validation includes both quantitative and qualitative aspects. The validation procedures
are documented, and regularly reviewed
and reported to the BRC.
The Group’s Internal
Audit also independently reviews the validation
process in wholesale and retail rating systems
annually.
(f) Credit risk mitigation
A key component of the Group's business strategy is to reduce risk by utilizing various risk mitigating techniques. The most important
risk mitigating means are collaterals'
pledges, guarantees and master
netting arrangements.
Types of collateral commonly accepted
by the Group
The Group has internal
policies in place
which set out
the following types of
collateral that are usually accepted
in a credit
relationship:
•
residential real estate,
commercial real estate (offices, shopping malls, etc.),
industrial buildings and land;
•
receivables (trade debtors)
and post dated cheques;
•
securities, including listed shares and bonds;
•
deposits;
•
guarantees and letters
of support;
•
insurance policies; and
•
equipment, mainly, vehicles
and vessels.
A specific
coverage
ratio
is pre-requisite,
upon the
credit relationship’s
approval and
on ongoing
basis, for
each collateral
type, as
specified in the Group’s credit
policy.
For
exposures,
other than
loans to
customers
(i.e. reverse
repos,
derivatives),
the
Group
accepts as
collateral
only
cash or
liquid
bonds.
Valuation principles of collaterals
In defining
the maximum
collateral
ratio for
loans, the
Group considers
all relevant
information available,
including the
collaterals’
specific characteristics,
if market
participants
would
take
those into
account
when
pricing the
relevant
assets.
The valuation
and
hence eligibility is based on the following factors:
•
the collateral’s
fair value, i.e. the
exit price that
would be received
to sell the asset
in an orderly transaction
under current
market conditions;
•
the fair
value reflects
market participants’
ability to
generate economic
benefits by
using the
asset in
its highest
and best
use or by selling it;
•
a reduction in the collateral’s
value is considered if the type, location or condition (such as deterioration
and obsolescence)
of the asset indicate so; and
•
no collateral value is assigned if a pledge is not
legally enforceable.
The
Group
performs
collaterals’
valuation
in
accordance
with
its
processes
and
policies.
The
Group
has
an
approved
list
of
independent and qualified appraisers, which is updated on an annual basis or at shorter intervals if necessary.
With the exception of
special cases (e.g. syndicated
loans), the real estate collaterals
of all units are valued by
Cerved Property Services S.A. (“CPS”) who is
the successor
of the Bank’s
former subsidiary,
Eurobank Property
Services S.A. CPS
is regulated
by the
Royal Institute
of Chartered
Surveyors
and
employs
internal
or
external
qualified
appraisers
based
on
predefined
criteria
(qualifications
and
expertise).
All
appraisals
take
into
account
factors
such
as
the
region,
age
and
marketability
of
the
property,
and
are
further
reviewed
and
countersigned by experienced staff.
The valuation methodology employed is based on International
Valuation Standards
(IVS), while
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
quality controls are in place, such as reviewing mechanisms, independent
sample reviews by independent well established
valuation
companies.
In order to monitor the valuation of residential property held as collateral, the Group uses the Residential Property Index of the Bank
of Greece. The
index has been
created by
the Real Estate
Market Analysis
Section of BoG using
detailed information
collected from
all Credit
Institutions
and Real
Estate
Investment
Companies (REIC)
operating
in Greece.
The Residential
Property
Index is
used in
combination with physical inspection and desktop
valuation, depending on the EBA status and the
balance of the loan.
For commercial
real
estates,
the Group
uses the
Commercial Real
Estate
Index developed
by CPS.
This index
is derived
through
a
combination of CPS & BoG CRE indices and it is
based on internationally accepted methodology. It constitutes a tool for the statistical
monitoring
of possible
changes of
the values
of the
commercial properties
as well
as for
the trends
in the
particular market.
The
Commercial Real
Estate
Index is
used in
combination with
physical inspection
and desktop
valuation, depending
on the
EBA status
and the balance of the loan.
To ensure
the quality of the post-dated cheques
accepted as collateral, the Bank has developed
a pre-screening system, which
takes
into
account
a
number
of
criteria
and
risk
parameters,
so
as
to
evaluate
their
eligibility.
Furthermore,
the
post-dated
cheques’
valuation is monitored through
the use of advanced statistical
reports and through the review
of detailed information
regarding the
recoverability of cheques, referrals
and bounced cheques, per issuer broken down.
Collateral policy and documentation
Regarding collaterals, Group’s
policy emphasizes the need that collaterals and relevant processes are timely and prudently executed,
in
order
to
ensure
that
collaterals
and relevant
documentation
are
legally
enforceable
at
any
time. The
Group
holds the
right
to
liquidate collateral in the event
of the obligor’s financial
distress and can claim
and control cash proceeds
from the liquidation process.
Guarantees
The guarantees used as credit risk mitigation
by the Group are largely issued by central and
regional governments in the countries in
which
it
operates.
The
Hellenic
Development
Bank
(HDB)
and
similar
funds,
banks
and
insurance
companies
are
also
significant
guarantors of credit risk.
Management of repossessed properties
The
objective
of
the
repossessed
assets’
management
is
to
minimize
the
time
cycle
of
the
asset’s
disposal
and
to
maximize
the
recovery of the capital engaged.
To this
end, the management of repossessed assets
aims at improving rental
and other income from the
exploitation of such assets,
and at the
same time reducing
the respective holding and
maintenance costs. Additionally, the Group is
actively engaged in identifying
suitable potential buyers for its portfolio of repossessed assets (including specialized funds involved
in acquiring specific portfolios of
properties repossessed), both in Greece and abroad,
in order to reduce its stock of properties with a time horizon
of 3-5 years.
Repossessed assets are closely monitored based on technical and
legal due diligence reports, so that their market value
is accurately
reported and updated in accordance with market
trends.
Counterparty risk
The
Group
mitigates
counterparty
risk
arising
from
treasury
activities
by
entering
into
master
netting
arrangements
and
similar
agreements, as well
as collateral agreements
with counterparties with
which it undertakes
a significant volume
of transactions. The
respective credit risk is reduced through a master netting agreement to the extent that if an event of default occurs, all amounts with
the counterparty are terminated and
settled on a net basis.
In the case of
derivatives, the Group
makes use of
International Swaps
and Derivatives Association
(ISDA) contracts,
which limit the
exposure
via
the
application
of
netting,
and
Credit
Support
Annex
(CSAs),
which
further
reduce
the
total
exposure
with
the
counterparty. Under these agreements, the total exposure with the counterparty is calculated on a daily
basis taking into account any
netting arrangements and collaterals.
The same
process is
applied in
the case
of repo
transactions where
standard
Global Master
Repurchase
Agreements
(GMRAs) are
used. The exposure
(the net difference
between repo
cash and the
market value
of the securities)
is calculated
on a daily basis
and
collateral is transferred
between the counterparties thus minimizing the exposure.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Following
the
European
Market
Infrastructure
Regulation
(EMIR),
the
Bank
performs
centrally
cleared
transactions
for
eligible
derivative contracts
through an EU
authorized European
central counterparty
(CCP), recorded
in trade
repositories. The
use of CCP
increases market transparency
and reduces counterparty credit and operational
risks inherent in derivatives markets.
The Bank uses a comprehensive
collateral management
system for
the monitoring of ISDA, CSAs
and GMRAs, i.e. the daily valuation
of the derivatives
and the market value
of the securities are used for
the calculation of each counterparty’s
exposure. The collateral
which should be posted or requested by the relevant
counterparty is calculated daily.
With
this
system,
the
Bank
monitors
and
controls
the
collateral
flow
in
case
of
derivatives
and
repos,
independently
of
the
counterparty. The effect of any market
movement that increases the Bank’s exposure is reported and the Bank proceeds to collateral
call accordingly.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
5.2.1.1 Maximum exposure to credit
risk before collateral held
2024
2023
€ million
€ million
Credit risk exposures relating to on-balance sheet assets
are as
follows:
Due from credit institutions
2,197
2,355
Less: Impairment allowance
(1)
2,196
(1)
2,354
Debt securities held for trading
186
245
Derivative financial instruments
838
881
Loans and advances to customers at
amortised cost:
- Wholesale lending⁽¹⁾
31,663
25,912
- Mortgage lending
12,466
9,942
- Consumer lending
4,533
3,436
- Small business lending
3,583
3,484
Less: Impairment allowance
(1,309)
50,936
(1,258)
41,516
Fair value changes of loans in portfolio hedging of
interest rate risk
(3)
15
Loans and advances to customers measured
at FVTPL
19
15
Investment securities:
- Debt securities measured at amortised cost
17,677
10,974
Less: Impairment allowance
(26)
17,651
(18)
10,955
Debt securities measured at FVOCI
4,148
3,492
Investment securities at FVTPL
384
263
Other financial assets⁽²⁾
149
218
Less: Impairment allowance
(23)
126
(22)
196
Credit risk exposures relating to off-balance
sheet items (note 43):
- Loan commitments
10,489
8,068
- Financial guarantee contracts and
other commitments
3,517
3,348
Total
90,487
71,348
(1)
Includes loans to public sector.
(2)
Refers to financial assets subject to IFRS 9 impairment requirements, which are recognised within other assets
The above table represents the Group’s
maximum credit risk exposure as at 31 December 2024 and
31 December 2023 respectively,
without taking
account
of any
collateral
held or
other credit
enhancements
that
do not
qualify for
offset
in the
Group's
financial
statements.
For on-balance
sheet assets,
the exposures
set out above
are based
on the carrying
amounts as reported
in the balance
sheet. For
off-balance
sheet
items,
the
maximum
exposure
is
the
nominal
amount
that
the
Group
may
be
required
to
pay
if
the
financial
guarantee contracts
and other commitments
are called upon
and the loan
commitments are drawn
down. Off-balance
sheet credit
risk exposures
presented
above, include
revocable loan
commitments to
extend credit
of €
4.7 billion
(2023: €
3.5 billion)
that are
subject to ECL measurement.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
5.2.1.2
Loans and advances to customers
The section below provides an
overview of the Group’s exposure to credit risk arising
from its customer lending portfolios, in line
with
the guidelines
set by
the Hellenic
Capital
Markets
Commission and
the Bank
of Greece
(BoG) released
on 30
September 2013,
as
updated by the Group
in order to comply with
the revised IFRS 7 ‘Financial
Instruments: Disclosures’,
following the adoption of
IFRS
9
from
2018.
In
addition,
the
types
of
the
Group’s
forbearance
programs
are
in
line
with
the
BoG’s
Executive
Committee
Act
42/30.05.2014 and its amendments.
(a) Credit quality of loans and advances to customers
Loans and advances to customers carried
at amortised cost are classified depending on how ECL is measured.
Accordingly,
loans reported
as non-impaired
include loans
for
which a
‘12-month
ECL allowance’
is recognized
as they
exhibit
no
significant increase in credit risk since initial recognition and loans for which a ‘Lifetime ECL allowance’
is recognized as they exhibit a
significant increase in credit risk since initial recognition
but are not considered to be in default.
Credit impaired loans category includes loans that are considered to be in default, for which a loss allowance equal to a ‘Lifetime ECL’
is recognized,
and loans
classified as ’Purchased
or originated
credit impaired’
(POCI) which are
always measured
on the
basis of a
‘Lifetime
ECL’.
The
Group
applies
a
default
definition
for
accounting
purposes,
which
is
consistent
with
the
European
Banking
Authority (EBA) definition for non-performing
exposure and regulatory definition of default.
Loans
and
advances
to
customers
carried
at
FVTPL
are
not
subject
to
ECL
measurement
and
therefore
are
not
included
in
the
quantitative information provided in the below sections for loans and advances measured at amortised cost, except where indicated.
The Group’s accounting
policy for impairment of financial assets is set out in note 2.2.13.
Quantitative information
The
following
quantitative
analysis
presents
information
about
the
total
gross
carrying
amount
of
loans
and
advances
including
securitization
notes
issued
by
special
purpose
entities
established
by
the
Group,
and
the
nominal
amount
of
credit
related
commitments, that are
classified as non-impaired (stage
1 and stage
2) and those classified as
credit-impaired (stage
3 and POCI). It
also presents
the impairment
allowance recognized
in respect of
all loans and
advances and
credit related
commitments, analyzed
into individually or
collectively assessed, based
on how the
respective impairment allowance has
been calculated, the
carrying amount
of
loans
and advances,
as well
as
the
value
of
collateral
held to
mitigate
credit
risk
which is
capped
to
the respective
gross
loan
amount. In particular,
the following four tables for 2024 and
2023
provide:
●
a
summary
of
the
credit
quality
of
lending
exposures
and
credit
related
commitments,
presenting
product
line,
stage
allocation, respective impairment allowance and
collateral held
●
the classification of lending exposures and credit related
commitments into the internal credit rating
categories,
●
the movement of the gross carrying amounts for
loans and advances to customers by product line and
stage,
●
the ageing analysis of credit impaired (Stage 3 and
POCI) loans and advances to customers
Public Sector lending
exposures include exposures
to the central
government, local
authorities, state-linked
companies and entities
controlled and fully
or partially owned by the
state, excluding
public and private
companies with commercial activity.
For credit risk
management purposes, exposures to Public Sector
are incorporated in wholesale lending.
.
Notes to the Consolidated Financial Statements
.
66
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31 December 2024 Consolidated Financial Statements
The following tables present
summary information about the
credit quality (stage analysis,
impairment allowance and
collateral held per product
line) of loans
and advances to
customers carried at amortised
cost and
credit related
commitments.
In addition,
they include the
fair value
changes of
loans in
portfolio hedging
of interest
rate risk
and the loans
and advances
to customers
carried at
FVTPL for
the
purpose of reconciliation with the total carrying amount
of loan and advances to customers:
.
31 December 2024
Impairment allowance
Lifetime ECL - Stage 3
Lifetime ECL - Stage 3
12-month ECL -
Stage 1
Lifetime ECL -
Stage 2
Individually
assessed
Collectively
assessed
POCI
Total gross carrying
amount/nominal
exposure
12-month ECL -
Stage 1
Lifetime ECL -
Stage 2
Individually
assessed
Collectively
assessed
POCI
Carrying
amount
Value of
collateral
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Retail Lending
15,743
3,733
62
715
329
20,582
(132)
(315)
(43)
(374)
(23)
19,695
14,806
- Mortgage
9,249
2,706
36
323
151
12,466
(64)
(218)
(30)
(147)
(10)
11,997
Value of collateral
9,090
2,405
20
258
147
11,919
- Consumer
3,064
317
1
127
152
3,660
(42)
(42)
(0)
(90)
(10)
3,475
Value of collateral
711
7
1
7
148
874
- Credit card
767
75
0
29
1
873
(8)
(5)
(0)
(23)
(1)
835
Value of collateral
29
1
0
0
1
30
- Small business
2,663
635
24
237
24
3,583
(17)
(50)
(13)
(113)
(1)
3,389
Value of collateral
1,296
507
13
142
24
1,982
Wholesale Lending
29,687
1,184
532
140
89
31,632
(58)
(39)
(244)
(77)
(4)
31,211
20,012
- Large corporate
20,189
568
272
17
38
21,082
(42)
(23)
(115)
(10)
(2)
20,889
Value of collateral
10,637
372
152
9
36
11,206
- SMEs
5,130
617
260
124
51
6,182
(16)
(16)
(129)
(67)
(2)
5,953
Value of collateral
3,653
468
188
78
51
4,438
- Securitization notes⁽²⁾
4,368
-
-
-
-
4,368
(0)
-
-
-
-
4,368
Value of collateral
4,368
-
-
-
-
4,368
Public Sector
30
-
-
0
1
31
(0)
-
-
(0)
-
30
4
- Greece
12
-
-
0
-
13
(0)
-
-
(0)
-
12
Value of collateral
-
-
-
0
-
0
- Other countries
18
-
-
-
1
18
(0)
-
-
-
-
18
Value of collateral
3
-
-
-
0
4
Fair value changes of loans in portfolio
hedging of
interest rate risk
(3)
Loans and advances to customers at
FVTPL
19
19
Total
45,460
4,917
593
856
419
52,245
(191)
(354)
(287)
(451)
(27)
50,953
34,841
Total value of collateral
29,787
3,760
373
495
407
Credit related commitments
13,645
263
39
26
33
14,005
(22)
(4)
(21)
(7)
(9)
Loan commitments
10,256
212
7
7
6
10,489
(15)
(4)
(0)
(0)
(1)
Financial guarantee contracts and
other
commitments
3,389
50
32
19
26
3,517
(7)
(1)
(21)
(6)
(8)
Value of collateral
2,077
74
20
5
11
Notes to the Consolidated Financial Statements
.
67
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31 December 2024 Consolidated Financial Statements
31 December 2023
Impairment allowance
Lifetime ECL - Stage 3 and POCI⁽¹⁾
Lifetime ECL - Stage 3 and POCI⁽¹⁾
12-month ECL -
Stage 1
Lifetime ECL - Stage 2
Individually
assessed
Collectively
assessed
Total gross carrying
amount/nominal
exposure
12-month ECL -
Stage 1
Lifetime ECL - Stage 2
Individually
assessed
Collectively
assessed
Carrying amount
Value of
collateral
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Retail Lending
12,331
3,716
85
730
16,861
(99)
(272)
(60)
(381)
16,050
11,385
- Mortgage
6,909
2,618
39
376
9,942
(20)
(154)
(33)
(175)
9,560
Value of collateral
6,726
2,237
16
310
9,289
- Consumer
2,242
297
1
102
2,642
(45)
(48)
(1)
(84)
2,463
Value of collateral
132
1
1
0
133
- Credit card
701
73
0
20
794
(8)
(4)
(0)
(19)
762
Value of collateral
0
0
0
0
0
- Small business
2,480
728
45
231
3,484
(25)
(65)
(26)
(102)
3,265
Value of collateral
1,246
547
23
147
1,962
Wholesale Lending
23,987
1,198
539
169
25,893
(71)
(58)
(219)
(99)
25,447
16,621
- Large corporate
15,791
544
232
27
16,593
(47)
(30)
(85)
(12)
16,420
Value of collateral
8,370
395
150
10
8,926
- SMEs
3,752
654
307
142
4,856
(25)
(28)
(134)
(86)
4,584
Value of collateral
2,429
517
220
86
3,252
- Securitization notes⁽²⁾
4,444
-
-
-
4,444
(0)
-
-
-
4,444
Value of collateral
4,444
-
-
-
4,444
Public Sector
18
0
-
0
19
(0)
(0)
-
(0)
18
1
- Greece
18
-
-
0
18
(0)
-
-
(0)
18
Value of collateral
1
-
-
0
1
- Other countries
0
0
-
-
0
(0)
(0)
-
-
0
Value of collateral
-
-
-
-
-
Fair value changes of loans in portfolio
hedging of
interest rate risk
15
Loans and advances to customers
at FVTPL
15
15
Total
36,336
4,914
624
899
42,773
(170)
(329)
(279)
(480)
41,545
28,022
Total value of collateral
23,348
3,697
409
553
Credit related commitments
11,049
311
36
20
11,416
(18)
(4)
(20)
(6)
Loan commitments
7,801
259
6
2
8,068
(11)
(3)
-
-
Financial guarantee contracts and
other
commitments
3,247
51
31
19
3,348
(7)
(1)
(20)
(6)
Value of collateral
1,193
101
14
7
(1)
As at 31 December 2023, total gross carrying amount of credit impaired loans includes POCI loans
of € 29 million and carry an impairment allowance of € 8.1 million.
(2)
It refers to the
notes of securitizations of
loans originated by Group
entities measured at amortised
cost, that are collateralized by
the underlying pool
of loans held by
the respective securitization
vehicles (note 20). The
amount of the securitized
loan portfolios presented as collateral has been capped to the gross carrying amount
of the senior notes. Moreover, the senior notes of the Cairo and Mexico securitizations are guaranteed by the Hellenic Republic in the context of Hellenic Asset
Protection Scheme (note 20). The respective approval for the senior note of Leon securitization is in progress
and expected shortly.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The Group assesses the credit quality of its loans and advances to customers
and credit related commitments that are subject to
ECL
using internal credit
rating systems
for the wholesale
portfolio, which
are based on
a variety of quantitative
and qualitative factors,
while the credit quality of the retail portfolio is based
on the allocation of risk classes into homogenous pools.
The following tables present the distribution
of the gross carrying amount of loans and advances and the nominal exposure
of credit
related commitments based on the credit quality
classification categories and stage allocation:
31 December 2024
Internal credit rating
12-month
ECL-Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL -
Stage 3
POCI
Total gross
carrying
amount
Retail Lending
€ million
€ million
€ million
€ million
€ million
- Mortgage
PD<2.5%
8,905
1,534
-
33
10,471
2.5%<=PD<4%
197
18
-
0
215
4%<=PD<10%
93
754
-
7
854
10%<=PD<16%
43
148
-
3
194
16%<=PD<99.99%
12
252
-
4
269
100%
-
-
359
104
463
- Consumer
PD<2.5%
995
2
-
15
1,012
2.5%<=PD<4%
1,484
4
-
14
1,502
4%<=PD<10%
443
34
-
20
497
10%<=PD<16%
103
12
-
4
119
16%<=PD<99.99%
38
264
-
8
310
100%
-
-
128
92
219
- Credit card
PD<2.5%
353
2
-
0
355
2.5%<=PD<4%
381
25
-
-
406
4%<=PD<10%
31
16
-
0
47
10%<=PD<16%
1
4
-
0
5
16%<=PD<99.99%
0
28
-
0
28
100%
-
-
29
1
30
- Small business
PD<2.5%
1,563
21
-
1
1,585
2.5%<=PD<4%
696
32
-
0
728
4%<=PD<10%
374
355
-
0
729
10%<=PD<16%
28
148
-
3
179
16%<=PD<99.99%
2
79
-
0
81
100%
-
-
261
20
280
Wholesale Lending
- Large corporate
Strong
14,005
29
-
-
14,034
Satisfactory
5,898
360
-
9
6,268
Watch list
285
178
-
12
475
Impaired (Defaulted)
-
-
288
17
305
- SMEs
Strong
1,593
24
-
0
1,616
Satisfactory
3,334
312
-
14
3,661
Watch list
203
281
-
9
493
Impaired (Defaulted)
-
-
383
28
412
- Securitization notes
Strong
4,368
-
-
-
4,368
Public Sector
All countries
Strong
13
-
-
-
13
Satisfactory
17
-
-
1
18
Watch list
-
-
-
-
-
Impaired (Defaulted)
-
-
0
-
0
Total
45,460
4,917
1,449
419
52,245
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
Internal credit rating
12-month ECL -
Stage 1
Lifetime ECL -
Stage 2
Lifetime ECL -
Stage 3 and
POCI
Total gross
carrying amount
Retail Lending
€ million
€ million
€ million
€ million
- Mortgage
PD<2.5%
6,587
1,282
0
7,869
2.5%<=PD<4%
196
69
0
265
4%<=PD<10%
105
874
0
980
10%<=PD<16%
14
192
0
206
16%<=PD<99.99%
7
201
1
209
100%
-
-
414
414
- Consumer
PD<2.5%
512
0
-
512
2.5%<=PD<4%
700
21
-
721
4%<=PD<10%
945
29
0
975
10%<=PD<16%
54
74
-
129
16%<=PD<99.99%
30
172
0
202
100%
-
-
103
103
- Credit card
PD<2.5%
335
1
-
337
2.5%<=PD<4%
338
26
0
364
4%<=PD<10%
27
15
-
42
10%<=PD<16%
-
3
0
3
16%<=PD<99.99%
-
27
-
27
100%
-
-
20
20
- Small business
PD<2.5%
912
26
-
938
2.5%<=PD<4%
715
161
-
876
4%<=PD<10%
825
381
-
1,206
10%<=PD<16%
1
67
-
68
16%<=PD<99.99%
26
93
-
119
100%
-
-
276
276
Wholesale Lending
- Large corporate
Strong
11,391
1
-
11,392
Satisfactory
4,197
377
10
4,583
Watch list
204
166
-
369
Impaired (Defaulted)
-
-
249
249
- SMEs
Strong
1,194
19
-
1,213
Satisfactory
2,401
334
0
2,735
Watch list
157
301
-
458
Impaired (Defaulted)
-
-
450
450
- Securitization notes
Strong
4,444
-
-
4,444
Public Sector
All countries
Strong
18
-
-
18
Satisfactory
1
-
-
1
Watch list
-
0
-
0
Impaired (Defaulted)
-
-
0
0
Total
36,336
4,914
1,523
42,773
Notes to the Consolidated Financial Statements
.
70
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31 December 2024 Consolidated Financial Statements
31 December 2024
31 December 2023
Internal credit rating
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL -
Stage 3 and
POCI
Total
nominal
amount
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL -
Stage 3 and
POCI
Total
nominal
amount
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Credit Related
Commitments
Retail Lending
Loan commitments
PD<2.5%
1,571
8
0
1,579
1,084
6
-
1,090
2.5%<=PD<4%
1,571
45
0
1,615
1,356
46
-
1,401
4%<=PD<10%
492
51
0
544
574
97
-
671
10%<=PD<16%
41
12
0
54
47
18
-
64
16%<=PD<99.99%
0
28
0
28
0
30
-
30
100%
-
-
4
4
-
-
2
2
Financial guarantee
contracts and other
commitments
PD<2.5%
38
0
0
38
14
-
-
14
2.5%<=PD<4%
118
0
-
118
136
0
-
136
4%<=PD<10%
38
1
-
39
29
1
-
30
10%<=PD<16%
-
-
-
-
5
0
-
6
16%<=PD<99.99%
-
-
-
-
1
-
-
1
100%
-
-
6
6
-
-
2
2
Wholesale Lending
Loan commitments
Strong
4,184
2
-
4,185
3,738
1
-
3,739
Satisfactory
2,339
57
1
2,397
978
56
-
1,034
Watch list
58
9
0
67
25
7
-
31
Impaired
(Defaulted)
-
-
15
15
-
-
6
6
Financial guarantee
contracts and other
commitments
Strong
2,396
1
-
2,398
2,017
1
-
2,018
Satisfactory
728
27
-
755
987
31
-
1,018
Watch list
70
21
-
91
57
19
-
77
Impaired
(Defaulted)
-
-
72
72
-
-
48
48
Total
13,645
263
98
14,005
11,049
311
57
11,416
The table below depicts the internal credit rating
bands (MRA rating scale or equivalent)
for the wholesale portfolio that correspond
to the credit quality classification categories
presented in the above tables:
Wholesale Lending
Credit Quality classification
categories
Internal Credit Rating
Large Corporate
Internal Credit Rating
SMEs
Strong
1-4
1-3
Satisfactory
5-6
4-6
Watch list
7-9
7-9
Impaired (Defaulted)
10
10
Notes to the Consolidated Financial Statements
.
71
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31 December 2024 Consolidated Financial Statements
The following tables present the movement of the gross carrying
amounts for loans and advances to customers
by product line and stage and is calculated by reference
to the opening and closing balances
for the reporting years from 1 January
2024 to 31 December 2024 and 1 January 2023 to 31 December 2023:
31 December 2024
Wholesale
Mortgage
Consumer
Small business
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
POCI
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
POCI
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
POCI
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
POCI
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Gross carrying amount at 1
January
24,005
1,198
688
21
6,909
2,618
411
4
2,942
369
119
5
2,480
728
276
0
42,773
New loans and advances
originated or purchased
8,427
-
-
-
1,090
-
-
-
1,189
-
-
-
674
-
-
-
11,380
Arising from acquisition (note
23.2)
2,593
-
-
71
2,229
-
-
159
617
-
-
160
111
-
-
27
5,965
Securitization notes (note 20)
281
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
281
Transfers between
stages
-to 12-month ECL
265
(257)
(8)
-
107
(97)
(10)
-
116
(105)
(10)
-
99
(91)
(9)
-
-
-to lifetime ECL
(672)
689
(17)
-
(354)
436
(82)
-
(218)
240
(22)
-
(110)
157
(47)
-
-
-to lifetime ECL credit-impaired
loans
(82)
(54)
136
-
(66)
(136)
203
-
(75)
(49)
124
-
(59)
(89)
148
-
-
Loans and advances
derecognised/ reclassified as
held for sale during the year
(25)
-
(21)
-
(7)
(1)
(133)
-
(4)
(0)
(15)
(3)
(0)
(1)
(70)
-
(279)
Amounts written-off⁽¹⁾
-
-
(14)
(0)
-
-
(9)
(1)
-
-
(47)
(1)
-
-
(13)
(0)
(84)
Repayments
(5,092)
(428)
(83)
(6)
(992)
(209)
(42)
(14)
(823)
(61)
(33)
(14)
(625)
(93)
(35)
(6)
(8,556)
Foreign exchange differences
and other movements
17
36
(9)
5
334
96
21
3
88
(4)
41
7
93
23
11
4
766
Gross Carrying amount at 31
December
29,717
1,184
672
90
9,249
2,706
359
151
3,831
392
157
153
2,663
635
261
24
52,245
Impairment allowance
(58)
(39)
(321)
(4)
(64)
(218)
(177)
(10)
(51)
(48)
(114)
(11)
(17)
(50)
(126)
(1)
(1,309)
Carrying amount at 31
December
29,659
1,145
351
86
9,185
2,489
182
141
3,780
344
43
142
2,645
585
135
23
50,936
Notes to the Consolidated Financial Statements
.
72
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31 December 2024 Consolidated Financial Statements
31 December 2023
Wholesale
Mortgage
Consumer
Small business
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Gross carrying amount at 1
January
23,448
1,581
1,024
6,832
2,825
545
2,669
427
257
2,668
740
434
43,450
New loans and advances
originated or purchased
5,930
-
-
756
-
-
859
-
-
536
-
-
8,081
Arising from acquisition
-
-
-
-
-
-
443
-
6
-
-
-
450
Transfers
between stages
-to 12-month ECL
451
(443)
(8)
532
(520)
(12)
74
(65)
(9)
123
(116)
(7)
-
-to lifetime ECL
(363)
498
(135)
(392)
487
(95)
(84)
103
(18)
(186)
235
(49)
-
-to lifetime ECL credit-
impaired loans
(55)
(173)
228
(54)
(163)
217
(36)
(38)
74
(53)
(77)
130
-
Loans and advances
derecognised/ reclassified as
held for sale during the year
(696)
(53)
(29)
(180)
(11)
(174)
(465)
(91)
(129)
(104)
(23)
(155)
(2,109)
Amounts written-off⁽¹⁾
-
-
(216)
-
-
(46)
-
-
(62)
-
-
(62)
(387)
Repayments
(4,654)
(240)
(135)
(858)
(185)
(49)
(484)
(59)
(44)
(578)
(75)
(36)
(7,396)
Foreign exchange differences
and other movements
(55)
27
(21)
274
185
30
(33)
92
48
73
44
21
685
Gross Carrying amount at 31
December
24,005
1,198
709
6,909
2,618
415
2,942
369
124
2,480
728
276
42,773
Impairment allowance
(72)
(58)
(318)
(20)
(154)
(208)
(53)
(53)
(105)
(25)
(65)
(128)
(1,258)
Carrying amount at 31
December
23,934
1,140
391
6,888
2,464
207
2,890
317
19
2,454
663
148
41,515
(1)
The contractual amount outstanding on lending exposures that were written off during the year ended 31 December 2024 and that are
still subject to enforcement activity is € 68 million (2023: € 338 million).
Note 1: Wholesale product line category includes also Public sector loans portfolio.
Note 2: “Loans and advances derecognised/ reclassified as
held for sale during the year” presents loans
derecognized due to a) substantial
modifications of the loans’ contractual terms,
b) sale and securitization transactions, c) debt
to equity
transactions and those that have been reclassified as held for sale during the year
(notes 20 and 30).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Credit impaired loans and advances to customers
The following
tables present
the ageing
analysis of
credit impaired
(Stage 3
and POCI)
loans and
advances by
product line
at their
gross carrying amounts, as well as the respective impairment
allowance and the value of collaterals held to
mitigate credit risk.
For denounced loans, the Group ceases to monitor the delinquency status and therefore the respective balances have
been included
in the ‘over 360 days’ time band, with the
exception of consumer exposures which continue to be monitored up to 360
days past due.
31 December 2024
Retail lending
Wholesale lending
Public sector
Lifetime ECL
credit-impaired
Mortgage
Consumer
Credit card
Small
business
Large
corporate
SMEs
Greece and
other countries
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
up to 90 days
235
133
6
125
185
236
1
920
90 to 179 days
43
25
7
21
0
7
-
103
180 to 360 days
76
38
10
49
6
13
-
192
more than 360 days
156
84
8
90
135
179
0
653
Total gross carrying
amount
511
280
30
285
326
435
1
1,868
Impairment allowance
(188)
(101)
(24)
(127)
(127)
(197)
(0)
(765)
Carrying amount
323
179
6
158
199
238
1
1,103
Value of Collateral
425
156
1
179
198
316
0
1,275
31 December 2023
Retail lending
Wholesale lending
Public sector
Lifetime ECL
credit-impaired
Mortgage
Consumer
Credit card
Small
business
Large
corporate
SMEs
Greece and
other countries
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
up to 90 days
174
42
6
132
191
189
0
734
90 to 179 days
32
18
6
20
33
14
-
123
180 to 360 days
73
22
5
33
1
45
-
179
more than 360 days
136
21
3
91
33
202
0
487
Total gross carrying
amount
415
104
20
276
259
450
0
1,523
Impairment allowance
(208)
(86)
(19)
(128)
(98)
(220)
(0)
(759)
Carrying amount
207
18
1
148
161
230
0
764
Value of Collateral
326
1
0
169
160
306
0
962
Note: As at 31 December 2024, total gross carrying amount of credit impaired loans includes POCI loans
of € 419 million (2023: € 29 million).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
(b) Collaterals and repossessed assets
Collaterals
The Loan-to-Value
(LTV)
ratio of
the mortgage
lending reflects
the gross
loan exposure
at the
balance sheet
date over
the market
value of the property held as collateral.
The LTV ratio
of the mortgage portfolio is presented below:
2024
2023
€ million
€ million
Mortgages
Less than 50%
4,740
2,852
50%-70%
3,221
2,456
71%-80%
1,689
1,621
81%-90%
1,041
979
91%-100%
599
659
101%-120%
502
557
121%-150%
333
402
Greater than 150%
343
415
Total exposure
12,466
9,942
Average LTV
44.64%
55.18%
The breakdown of collateral
and guarantees for loans and advances to
customers at amortised cost is presented
below:
31 December 2024
Value of collateral received
Guarantees
received⁽¹⁾
Real Estate
Financial
Other
Total
€ million
€ million
€ million
€ million
€ million
Retail Lending
13,421
701
684
14,806
857
Wholesale Lending
6,864
1,601
11,547
20,012
613
Public sector
1
3
0
4
-
Total
20,285
2,306
12,231
34,822
1,470
31 December 2023
Value of collateral received
Guarantees
Received⁽¹⁾
Real Estate
Financial
Other
Total
€ million
€ million
€ million
€ million
€ million
Retail Lending
10,618
304
463
11,385
554
Wholesale Lending
5,300
877
10,444
16,621
632
Public sector
-
1
0
1
-
Total
15,919
1,181
10,907
28,007
1,186
(1)
In addition
to the
above presented
guarantees, the
Group has
entered into
financial guarantees
contracts (projects
‘Wave’)
related to
the portfolios
of
performing SME, SBB and large corporate loans of € 4.3 billion as at 31 December 2024 (31 December 2023: € 4
billion) (note 20).
The collaterals
presented in
the above table
under category
“Other”, include
assigned receivables,
equipment, inventories,
vessels,
etc. They
also include
the amount
of the securitized
loans held
by the
securitizations vehicles
that issued
the related
senior notes.
The amount of the securitized
loans has been capped to the
gross carrying amount of the
senior notes. In addition, the
senior notes
of the Cairo
and Mexico securitizations
are guaranteed
by the Hellenic
Republic in
the context
of Hellenic Asset
Protection Scheme
(note 20).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Repossessed assets
The Group recognizes
collateral assets
on the balance
sheet by taking
possession usually through
legal processes or
by calling upon
other credit enhancements. As at 31 December
2024, the carrying amount of repossessed assets
which are included in “Other assets”
amounted to € 527 million
(31 December 2023: €
495 million), note 29. These
assets are carried at the lower of
cost and net realizable
value (note 2.2.19).
The main
type of
collateral
that the
Group repossesses
against
repayment
or reduction
of the
outstanding
loan is
real estate.
The
below
table
presents
the
movement
of
repossessed
real
estate
assets
during
the
year,
including
a)
those
transferred
to
the
appropriate category based on their use by the Group as part of its operations i.e. investment property or own-used (notes 2.2.6, 26,
and 27) and b) those reclassified to “held for sale” category
(notes 30).
2024
2023
Real estate
Real estate
Residential
Commercial
Total
Residential
Commercial
Total
€ million
€ million
€ million
€ million
€ million
€ million
Balance at 1 January
195
298
493
212
345
557
Arising from acquisition (note 23.2)
4
105
109
-
-
-
Additions⁽¹⁾
7
26
33
11
17
28
Transfers
to investment property
(2)
(18)
(20)
(2)
-
(2)
Disposals
(14)
(45)
(59)
(12)
(27)
(39)
Valuation losses
(2)
(26)
(28)
(4)
(14)
(18)
Held for Sale (note 30)
(1)
(0)
(1)
(8)
(24)
(32)
Other
(0)
(2)
(2)
(2)
1
(1)
Balance at 31 December
187
338
525
195
298
493
(1)
The carrying amount
of the real
estate properties
obtained during the
year and held
at the year
ended 31
December 2024
amounted to €
32 million
(31
December 2023: € 24 million).
In addition, the Group
repossesses other types of
collaterals mainly
referring to
equity positions due to
the participation in debt
for
equity transactions as part of forbearance measures.
(c) Geographical and industry concentrations
of loans and advances to customers
As
described
above
in
note
5.2.1,
the
Group
holds
diversified
portfolios
across
markets
and
countries
and
implements
limits
on
concentrations arising from the
geographical location or the
activity of groups
of borrowers that could
be similarly affected by
changes
in economic or other conditions, in order to mitigate
credit risk.
Notes to the Consolidated Financial Statements
.
76
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31 December 2024 Consolidated Financial Statements
The following
tables break
down the
Group’s
exposure into
loans and
advances to
customers and
credit related
commitments at
their gross
carrying amount
and nominal
amount respectively
by stage,
product line, industry and geographical region
and impairment allowance by product line, industry and geographical
region:
31 December 2024
Greece
Rest of Europe
Other Countries
Gross carrying/nominal amount
Gross carrying/nominal amount
Gross carrying/nominal amount
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL
-Stage 3
POCI
Impairment
allowance
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL
-Stage 3
POCI
Impairment
allowance
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL
-Stage 3
POCI
Impairment
allowance
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Retail Lending
8,038
3,324
624
0
(683)
7,625
408
153
327
(203)
80
0
0
2
(1)
-Mortgage
4,476
2,595
302
0
(410)
4,759
111
57
150
(59)
14
0
0
1
(0)
-Consumer
986
72
55
0
(68)
2,012
244
72
151
(117)
66
0
0
1
(0)
-Credit card
568
41
23
0
(28)
199
34
6
1
(9)
0
0
0
0
(0)
-Small business
2,008
615
243
-
(177)
655
20
18
24
(17)
0
-
-
-
(0)
Wholesale Lending
14,000
622
518
12
(298)
11,579
551
151
77
(120)
4,107
11
3
0
(4)
-Commerce and services⁽²⁾
5,717
271
248
9
(136)
7,000
104
83
39
(50)
580
3
1
0
(2)
-Manufacturing
2,927
204
182
3
(119)
839
52
19
9
(14)
69
-
0
-
(0)
-Shipping
76
-
-
-
(0)
589
1
3
8
(1)
3,112
-
1
-
(2)
-Construction
1,318
30
24
-
(16)
1,192
59
11
10
(9)
217
7
0
-
(0)
-Tourism
1,406
110
59
-
(18)
472
159
11
1
(9)
-
-
-
-
-
-Energy
2,505
0
4
-
(6)
249
7
0
0
(3)
-
-
-
-
-
-Other
51
8
1
-
(3)
1,238
169
24
10
(34)
130
-
-
-
(0)
Public Sector
12
-
0
-
(0)
18
-
-
1
(0)
-
-
-
-
-
Total
22,051
3,947
1,142
12
(982)
19,222
959
304
404
(323)
4,188
11
3
2
(4)
Credit related Commitments
8,609
144
47
0
(44)
4,574
116
18
32
(19)
462
3
0
0
(0)
-Loan commitments
6,468
119
0
0
(12)
3,338
91
14
6
(8)
450
3
0
0
(0)
-Financial guarantee
contracts and other
commitments
2,141
25
47
-
(32)
1,236
25
4
26
(11)
12
0
0
0
(0)
Notes to the Consolidated Financial Statements
.
77
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31 December 2024 Consolidated Financial Statements
31 December 2023
Greece
Rest of Europe
Other Countries
Gross carrying/nominal amount
Gross carrying/nominal amount
Gross carrying/nominal amount
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI⁽¹⁾
Impairment
allowance
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI⁽¹⁾
Impairment
allowance
12-month ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI⁽¹⁾
Impairment
allowance
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Retail Lending
8,338
3,374
687
(638)
3,983
341
127
(173)
10
0
0
(0)
-Mortgage
4,821
2,531
361
(331)
2,080
87
53
(51)
7
0
0
(0)
-Consumer
936
131
53
(89)
1,303
166
50
(89)
3
0
0
(0)
-Credit card
546
43
16
(25)
154
30
5
(7)
0
0
0
(0)
-Small business
2,035
670
258
(193)
445
59
18
(26)
0
-
-
(0)
Wholesale Lending
11,601
668
573
(348)
9,038
527
133
(96)
3,348
3
3
(3)
-Commerce and services⁽²⁾
4,443
284
270
(168)
5,411
69
70
(45)
427
3
1
(1)
-Manufacturing
2,614
131
189
(110)
780
42
21
(14)
5
-
-
(0)
-Shipping
14
-
0
(0)
210
-
-
(0)
2,725
-
1
(2)
-Construction
1,329
30
42
(36)
784
80
4
(4)
83
-
0
(0)
-Tourism
1,045
215
67
(22)
357
98
9
(8)
-
-
-
-
-Energy
2,098
0
4
(7)
244
21
3
(4)
-
-
-
-
-Other
58
9
1
(4)
1,253
217
25
(20)
107
-
-
(0)
Public Sector
18
-
0
(0)
0
0
-
-
-
-
-
-
Total
19,957
4,042
1,260
(986)
13,021
868
260
(269)
3,358
3
3
(3)
Credit related Commitments
8,066
199
49
(44)
2,634
109
8
(4)
349
3
0
(0)
-Loan commitments
5,778
163
0
(11)
1,687
94
7
(3)
336
3
0
(0)
-Financial guarantee
contracts and other
commitments
2,287
36
49
(33)
947
15
1
(1)
13
-
0
(0)
(1)
Includes POCI loans of € 12.7 million held by operations in Greece, € 16.1 million held
by operations in Rest of Europe and € 0.1 million held by operations in Other Countries.
(2)
The operations in Rest of Europe include € 4,368 million related to the notes of securitizations of loans originated by Group entities (2023: € 4,444 million).
As at 31 December 2024,
the carrying amount of
Group's loans measured at
FVTPL of € 19 million
was included in Wholesale
lending portfolio, which
was held by operations
in Rest of Europe
(2023: € 15
million).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
(d) Forbearance practices on lending activities
Modifications
of
the
loans’
contractual
terms
may
arise
due
to
various
factors,
such
as
changes
in
market
conditions,
customer
retention and other factors as
well as due
to the potential
deterioration in the borrowers’ financial
condition. The Group
has employed
a range of forbearance
solutions in order to
enhance the management of
customer relationships
and the effectiveness
of collection
efforts, as well as to improve
the recoverability of cash flows
and minimize credit losses for both retail
and wholesale portfolios.
Forbearance practices’ classification
Forbearance practices
as monitored
and reported by
the Group, based
on the European
Banking Authority Implementing
Technical
Standards (EBA
ITS) guidelines,
occur only
in the
cases where
the contractual
payment terms
of a
loan have
been modified,
as the
borrower is considered unable to
comply with the existing loan’s
terms due to apparent financial difficulties, and
the Group grants a
concession by
providing more
favorable
terms and
conditions that
it would
not otherwise
consider had
the borrower
not been
in
financial difficulties.
All other
types of
modifications granted
by the
Group, where
there is
no apparent
financial difficulty
of the
borrower and
may be
driven by factors of a business nature
are not classified as forbearance measures.
Forbearance solutions
Forbearance solutions are granted following an assessment of the borrower’s ability and willingness to repay and can be of a short or
longer
term
nature.
The
objective
is to
assist
financially
stressed
borrowers
by rearranging
their
repayment
cash
outflows into
a
sustainable
modification,
and
at
the
same
time,
protect
the
Group
from
suffering
credit
losses.
The
Group
deploys
targeted
segmentation strategies
with the objective
to tailor different
short or long
term and sustainable
management solutions
to selected
groups of borrowers for
addressing their specific financial needs.
The nature and type of forbearance options
may include but is not necessarily limited to, one or more of the following:
●
arrears capitalization;
●
arrears repayment plan;
●
reduced payment above interest
only;
●
interest-only payments;
●
reduced payment below interest
only;
●
grace period;
●
interest rate reduction;
●
loan term extensions;
●
split balance and gradual step-up of installment
payment plans;
●
partial debt forgiveness/write-down;
●
operational restructuring; and
●
debt to equity swaps.
Specifically
for
unsecured
consumer
loans
(including
credit
cards),
forbearance
programs
(e.g.
term
extensions),
are
applied
in
combination with debt consolidation whereby all existing consumer balances are pooled together.
Forbearance solutions are applied
in
order
to
ensure
a
sufficient
decrease
on
installment
and
a
viable
solution
for
the
borrower.
In
selected
cases,
the
debt
consolidations may be combined with mortgage prenotations
to convert unsecured lending exposures
to secured ones.
In the case of mortgage loans, a decrease of installment
may be achieved through
forbearance measures such as extended payment
periods, capitalization of arrears,
split balance and gradual step-up of installment
payment plans.
Wholesale exposures
are subject to
forbearance when
there are indications
of financial difficulties
of the borrower,
evidenced by a
combination of factors including the deterioration
of financials, credit rating downgrade, payment
delays and other.
Debt for equity swaps
For
wholesale
portfolios,
the Group
on
occasion
participates
in
debt
for
equity
transactions
as
part
of
forbearance
measures,
as
described in note
2.2.9. In 2024
and 2023, there
were no equity
positions acquired by
the Group and
held as of
31 December 2024
and 31 December 2023 respectively.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
i.
Classification of Forborne loans
Loans for which forbearance measures have been applied after origination or acquisition, are classified either as non-impaired (stage
2), or impaired (stage 3) by assessing their delinquency and credit
quality status.
Credit impaired
forborne loans enter
initially a probation
period of one
year where
the borrowers’
payment performance
is closely
monitored. If at
the end of the abovementioned
period, the borrowers
have complied with
the terms of the
program and there
are
no past due amounts and concerns
regarding the loans’ full
repayment, the loans are
then reported as non-impaired forborne
loans
(stage 2).
In addition,
non-impaired forborne
loans, including those
that were
previously classified as
credit impaired
and complied
with the
terms of
the program,
are monitored
over a
period of
two years.
If,
at the
end of
that period,
the borrowers
have made
regular payments
of a
significant aggregate
amount, there
are no
past due
amounts over
30 days
and the
loans are
neither credit
impaired nor any other SICR criteria are met they
exit forborne status and are classified as stage
1.
Particularly,
the category
of
credit
impaired
forborne
loans includes
those that
(a) at
the date
when
forbearance
measures
were
granted, were
more than
90 days
past due
or assessed
as unlikely
to pay,
(b) at
the end
of the one
year probation
period met
the
criteria of entering the
non -impaired status and
during the two years monitoring
period new forbearance
measures were extended
or became more than 30 days past
due, and (c) were initially classified as non-
impaired and during the two years
monitoring period
met the criteria for entering the credit impaired
status.
Furthermore,
forborne
loans
that
fail
to
perform
under
the
new
modified
terms
and
are
subsequently
denounced
cease
to
be
monitored as
part of the
Group’s
forbearance activities
and are reported
as denounced credit
impaired loans (stage
3) consistently
with the Group’s management
and monitoring of all denounced loans.
ii.
Impairment assessment
Where forbearance
measures are extended,
the Group performs
an assessment of
the borrower’s
financial condition and
its ability
to repay,
under the
Group’s
impairment policies,
as described
in notes
2.2.13 and
5.2.1. Accordingly,
forborne loans
to wholesale
customers,
retail
individually
significant
exposures
and
financial
institutions
are
assessed
on
an
individual
basis.
Forborne
retail
lending
portfolios
are
generally
assessed
for
impairment
separately
from
other
retail
loan portfolios
on a
collective
basis as
they
consist of large homogenous portfolio.
iii.
Loan restructurings
In
cases
where
the
contractual
cash
flows
of
a
forborne
loan
have
been
substantially
modified,
the
original
forborne
loan
is
derecognized
and a
new loan
is recognized.
The Group
records
the modified
asset as
a ‘new’
financial asset
at fair
value and
the
difference with the carrying amount of the existing
one is recorded in the income statement
as derecognition gain or loss.
In cases where
the modification as
a result of
forbearance measures
is not considered
substantial, the Group
recalculates the
gross
carrying amount of
the loan and
recognizes the difference as a
modification gain or loss
in the income
statement. The Group continues
to monitor the modified forborne loan in
order to determine if the financial
asset exhibits significant increase in credit risk since
initial
recognition during the forbearance period.
As at 31 December 2024, the carrying amount of Group's forborne
loans measured at FVTPL was nil (2023: nil).
The following
tables present
an analysis
of Group’s
forborne activities
for loans
measured at
amortised cost.
In order
to align
with
the quantitative information provided in section (a) based on
IFRS 7 requirements, the relevant tables below are presented on a
gross
carrying amount
basis, while cumulative
impairment allowance
is presented
separately,
in line with
the Group’s
internal credit
risk
monitoring and reporting.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The following table presents a summary of the types of the Group’s
forborne activities:
2024
2023
€ million
€ million
Forbearance measures:
Split balance
275
147
Loan term extension
693
787
Arrears capitalisation
77
72
Reduced payment below interest owed
34
36
Interest rate reduction
153
117
Reduced payment above interest owed
98
81
Arrears repayment plan
56
96
Interest only
27
57
Grace period
92
68
Partial debt forgiveness/Write-down
19
1
Operational restructuring
11
13
Other
55
34
Total gross carrying
amount
1,588
1,509
Less: cumulative impairment allowance
(321)
(307)
Total carrying amount
1,267
1,202
The following tables present a summary of the credit
quality of forborne loans and advances to customers:
31 December 2024
Total loans &
advances at
amortised
cost
Forborne
loans &
advances
% of Forborne
loans &
advances
€ million
€ million
Gross carrying amounts:
12-month ECL-Stage 1
45,460
50
0.1
Lifetime ECL-Stage 2
4,917
788
16.0
Lifetime ECL-Stage 3
1,449
559
38.6
POCI
419
191
45.6
Total Gross Amount
52,245
1,588
3.0
Cumulative ECL Loss allowance:
12-month ECL-Stage 1
(191)
(0)
Lifetime ECL-Stage 2
(354)
(49)
Lifetime ECL-Stage 3 of which:
(738)
(258)
- Individually assessed
(287)
(118)
- Collectively assessed
(451)
(140)
POCI
(27)
(13)
Total carrying amount
50,936
1,267
2.5
Collateral received
34,822
1,211
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
Total loans &
advances at
amortised cost
Forborne loans
& advances
% of Forborne
loans &
advances
€ million
€ million
Gross carrying amounts:
12-month ECL-Stage 1
36,336
-
-
Lifetime ECL-Stage 2
4,914
889
18.1
Lifetime ECL-Stage 3 and POCI
1,523
620
40.7
Total Gross
Amount
42,773
1,509
3.5
Cumulative ECL Loss allowance:
12-month ECL-Stage 1
(170)
-
Lifetime ECL-Stage 2
(329)
(49)
Lifetime ECL-Stage 3 and POCI of which:
(759)
(257)
- Individually assessed
(279)
(112)
- Collectively assessed
(480)
(145)
Total carrying amount
41,515
1,202
2.9
Collateral received
28,007
1,184
Note: As at 31 December 2024, performing forborne loans of € 50 million acquired from Hellenic Bank,
are presented at stage 1.
The following table presents the movement
of forborne loans and advances:
2024
2023
€ million
€ million
Gross carrying amount at 1 January
1,509
2,012
Arising from acquisition (note 23.2)
275
-
Forbearance measures in the year
377
322
Forborne loans derecognised/ reclassified as held
for sale during the year ⁽¹⁾
(29)
(85)
Write-offs of forborne loans
(5)
(47)
Repayment of loans
(310)
(221)
Loans & advances that exited forbearance status
⁽²⁾
(328)
(582)
Other
99
110
Less: cumulative impairment allowance
(321)
(307)
Carrying amount at 31 December
1,267
1,202
(1)
“Forborne loans derecognised/ reclassified
as held for
sale during the
year” presents loans derecognized
during the year
due to a)
sale and securitization
transactions and b) substantial modifications
of the loans’ contractual terms
and those that have been reclassified
as held for sale
during the year (notes 20
and 30).
(2)
In 2024, an amount of € 46 million loans and advances that exited forbearance status refers to loans that were denounced (2023: € 73 million).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The following table presents the Group’s
exposure to forborne loans and advances by
product line:
2024
2023
€ million
€ million
Retail Lending
813
762
- Mortgage
437
457
- Consumer
183
78
- Credit card
4
6
- Small business
188
220
Wholesale Lending
775
747
-Large corporate
282
237
-SMEs
493
510
Total gross carrying
amount
1,588
1,509
Less: cumulative impairment allowance
(321)
(307)
Total carrying amount
1,267
1,202
The following table presents the Group’s
exposure to forborne loans and advances
by geographical region:
2024
2023
€ million
€ million
Greece
947
1,116
Rest of Europe
636
388
Other countries
6
5
Total gross carrying
amount
1,588
1,509
Less: cumulative impairment allowance
(321)
(307)
Total carrying amount
1,267
1,202
The
following
table
provides
information
on
modifications
due
to
forbearance
measures
on
lending
exposures
which
have
not
resulted
in
derecognition.
Such financial
assets
were
modified
while
they
had
a loss
allowance
measured
at
an
amount
equal
to
lifetime ECL.
2024
2023
Modified lending exposures
€ million
€ million
Loans modified during the year with loss allowance measured
at an amount equal to lifetime ECL
Gross carrying amount at 31 December
396
401
Modification gain / (loss)
(5)
8
Loans modified since initial recognition at a time when loss allowance was based on
lifetime ECL
Gross carrying amount at 31 December for which loss allowance has changed to 12-month
ECL measurement
244
410
In
the
year
ended
31
December
2024,
the
gross
carrying
amount
of
loans
previously
modified
for
which
the
loan
allowance
has
reverted to being measured at an amount
equal to lifetime ECL amounted to
€ 300 million (2023: € 284 million).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
5.2.1.3 Debt Securities
The following
tables present
an analysis
of debt
securities by
external
credit rating
agency designation
at 31
December 2024
and
2023, based on Moody's ratings or their equivalent:
31 December 2024
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
Total
€ million
€ million
€ million
€ million
Debt securities at amortised cost
Aaa
6,661
-
-
6,661
Aa1 to Aa3
855
-
-
855
A1 to A3
1,833
4
-
1,837
Lower than A3
8,110
15
-
8,125
Unrated
163
-
36
199
Gross Carrying Amount
17,621
20
36
17,677
Impairment Allowance
(15)
(1)
(9)
(26)
Carrying Amount
17,606
19
26
17,651
Debt securities at FVOCI
Aaa
514
-
-
514
Aa1 to Aa3
551
-
-
551
A1 to A3
546
-
-
546
Lower than A3
2,385
28
-
2,414
Unrated
64
-
-
64
Carrying Amount
4,061
28
-
4,090
31 December 2023
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
Total
€ million
€ million
€ million
€ million
Debt securities at amortised cost
Aaa
2,789
-
-
2,789
Aa1 to Aa3
132
-
-
132
A1 to A3
231
4
-
235
Lower than A3
7,602
3
-
7,605
Unrated
180
-
32
212
Gross Carrying Amount
10,935
7
32
10,974
Impairment Allowance
(11)
(0)
(7)
(18)
Carrying Amount
10,924
7
25
10,955
Debt securities at FVOCI
Aaa
316
-
-
316
Aa1 to Aa3
202
-
-
202
A1 to A3
436
8
-
444
Lower than A3
2,411
40
-
2,451
Unrated
63
-
-
63
Carrying Amount
3,427
48
-
3,475
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2024
Debt securities
held for trading
Debt securities
measured at
FVTPL
€ million
€ million
Debt securities at FVTPL
Aaa
19
11
Aa1 to Aa3
-
6
A1 to A3
10
1
Lower than A3
158
0
Carrying Amount
186
18
31 December 2023
Debt securities
held for trading
Debt securities
measured at
FVTPL
€ million
€ million
Debt securities at FVTPL
Aaa
55
-
A1 to A3
14
-
Lower than A3
176
0
Unrated
0
25
Carrying Amount
245
26
The carrying
amount of
debt securities rated
lower than
A3, amounting
to €
10,684 million (2023:
€ 10,222
million), is
analyzed as
follows:
2024
2023
Sovereign
Banks and
Corporate
Sovereign
Banks and
Corporate
€ million
€ million
€ million
€ million
Debt securities
Greece
5,919
1,399
6,015
1,248
Other Eurozone members
762
775
967
604
Other EU members ⁽¹⁾
990
73
765
67
Other countries
240
527
194
362
Carrying Amount
7,911
2,773
7,941
2,281
(1)
It includes debt securities issued by non-Eurozone members European countries of the Group's presence. As at 31 December 2024, it includes
debt securities
issued by Bulgaria with carrying value of € 660 million (2023: securities issued by
Bulgaria with carrying value of € 527 million).
Following a
series of sovereign
rating upgrades
in the second
half of 2023,
the Greek
government’s
long-term debt
securities were
considered investment
grade by four
out of the five
Eurosystem-approved
External Credit Assessment
Institutions (DBRS: BBB(low),
positive
outlook,
Fitch:
BBB-,
stable
outlook;
Scope:
BBB,
stable
outlook;
S&P:
BBB-,
positive
outlook),
and
one
notch
below
investment grade by the fifth one, Moody’s
(Βa1, positive outlook) as of early 2025.
The carrying amount of
unrated debt securities
of € 254 million (2023: €
293 million) comprise € 188
million Greek corporate
bonds
(2023: €
181 million),
€ 42
million
Cyprus
corporate
bonds
(2023: €
90 million)
and
€ 24
million
corporate
bonds
issued in
other
European countries (2023: € 22 million).
As at
31 December 2024,
the nominal
value of
the Group’s
Russian debt
exposures, which
have been
classified as
credit impaired,
amounted
to
€
39
million,
with
an
impairment
allowance
of
€
7
million
(2023:
€
36
million
nominal
value
with
an
impairment
allowance of € 5 million).
In the first
quarter of 2024,
the Group
proceeded with
the disinvestment
of short-term
sovereign debt
securities of face
value of €
365 million
measured at
amortized cost,
resulting in
a derecognition
loss of
€ 16.6
million. The
sale was
assessed to
be consistent
with the held to collect business model in accordance with the Group’s
accounting policy.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The following tables present the Group's exposure in debt securities, as categorized by stage, counterparty's geographical
region and
industry sector:
31 December 2024
Greece
Other European countries
Other countries
12-month ECL-
Stage 1
Lifetime ECL-
Stage 3
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Debt securities at amortised cost
Sovereign
5,039
-
4,004
-
-
1,434
-
10,477
Banks
1,097
-
2,621
-
-
832
-
4,551
Corporate
304
5
1,499
14
31
791
6
2,649
Gross Carrying Amount
6,440
5
8,124
14
31
3,057
6
17,677
Impairment Allowance
(9)
(2)
(5)
(1)
(7)
(1)
(0)
(26)
Net Carrying Amount
6,431
3
8,119
13
24
3,056
6
17,651
Debt securities at FVOCI
Sovereign
803
-
1,566
-
-
449
-
2,817
Banks
16
-
164
-
-
-
-
179
Corporate
177
-
612
28
-
276
-
1,093
Carrying Amount
995
-
2,342
28
-
725
-
4,090
31 December 2023
Greece
Other European countries
Other countries
12-month ECL-
Stage 1
Lifetime ECL-
Stage 3
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
12-month ECL-
Stage 1
Lifetime ECL-
Stage 2
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Debt securities at amortised cost
Sovereign⁽¹⁾
4,966
-
1,561
-
-
1,164
-
7,691
Banks⁽¹⁾
923
-
369
-
-
-
-
1,292
Corporate
326
4
1,012
3
27
614
4
1,991
Gross Carrying Amount
6,215
4
2,942
3
27
1,778
4
10,974
Impairment Allowance
(7)
(2)
(3)
(0)
(5)
(1)
(0)
(18)
Net Carrying Amount
6,208
3
2,939
3
22
1,777
4
10,955
Debt securities at FVOCI
Sovereign
909
-
887
-
-
426
-
2,221
Banks
14
-
210
-
-
-
-
224
Corporate
172
-
528
40
-
281
8
1,029
Carrying Amount
1,095
-
1,625
40
-
707
8
3,475
31 December 2024
Greece
Other
European
countries
Other countries
Total
€ million
€ million
€ million
€ million
Debt securities at FVTPL
Sovereign
-
16
-
16
Banks
-
2
-
2
Corporate
0
-
-
0
Carrying Amount
0
18
-
18
Debt securities held for trading
Sovereign
80
19
19
118
Corporate
-
62
6
69
Carrying Amount
80
81
25
186
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
Greece
Other
European
countries
Other countries
Total
€ million
€ million
€ million
€ million
Debt securities at FVTPL
Banks
-
25
-
25
Corporate
0
-
-
0
Carrying Amount
0
25
-
26
Debt securities held for trading
Sovereign
142
18
55
216
Corporate
0
27
3
30
Carrying Amount
142
45
58
245
(1)
In the comparative year, € 203 million debt securities at AC
previously classified under the industry sector of "Banks" have been transferred to "Sovereign",
in order to align with this year's presentation.
5.2.1.4 Offsetting of financial assets and financial liabilities
Financial assets and
financial liabilities are
offset according
to IAS 32
‘Financial Instruments
and the net
amount is presented
in the
balance sheet when, there is a legally enforceable right
to set off the recognized amounts and there
is an intention to settle on a net
basis, or to realize the asset and settle the liability simultaneously (the offsetting criteria), as also set out in Group's accounting policy
2.2.4.
Financial instruments
that meet the
offsetting criteria
include the eligible
repos and
reverse repos
under global
master repurchase
agreements
(GMRAs)
and
the
CCP
(Central
Counterparty)
cleared
OTC
derivative
financial
instruments.
Regarding
the
latter,
the
Group has assessed the terms of the clearing agreements for the derivatives
entered into with Clearing Members and has concluded
that the offsetting criteria are met, in respect of the cash accounts used for variation margin purposes for such derivatives, which are
also used
for
the settlement
of all
payments
thereunder.
Accordingly,
derivative
assets of
€ 619
million (2023:
€ 752
million)
and
derivative
liabilities
of
€
420
million
(2023:
€
492
million)
(note
19)
were
offset
against
€
240
million
(2023:
€
317
million)
cash
collateral received (note 32) and
€ 42 million (2023: € 57 million) cash collateral pledged (note
17).
Financial instruments under
master netting
arrangements and
similar agreements that
do not meet the
criteria for offsetting
in the
balance
sheet
include
derivatives
(bilateral
agreements)
as
well
as
repos
and
reverse
repos,
for
which
a)
the
right
of
set-off
is
enforceable
only
following
an
event
of
default,
insolvency
or
bankruptcy
of
the
Group
or
the
counterparties
or
following
other
predetermined events and/or b)
the Group and its counterparties may not intend to settle
on a net basis or to realize the assets and
settle the liabilities simultaneously.
The following tables
present financial assets
and financial liabilities that
meet the criteria for
offsetting and thus
are presented
on a
net
basis
in
the
balance
sheet,
as
well
as
amounts
that
are
subject
to
enforceable
master
netting
arrangements
and
similar
agreements for
which the offsetting
criteria mentioned above
are not satisfied.
In respect of
the latter,
the Group
may receive and
provide
collateral
in
the
form
of
marketable
securities
and
cash
that
are
included
in
the
tables
below
under
columns
‘financial
instruments’ and ‘cash collateral’.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2024
Related amounts not offset in the BS
Gross amounts
of recognised
financial assets
Gross amounts of
recognised
financial
liabilities offset in
the balance sheet
Net amounts of
financial assets
presented in the
balance sheet
Financial
instruments
(incl. non-cash
collateral)
Cash
collateral
received
Net
amount
€ million
€ million
€ million
€ million
€ million
€ million
Financial Assets
Reverse repos with banks
481
(447)
34
(32)
2
Derivative financial instruments
1,447
(619)
828
(550)
(153)
125
Other financial assets
4
(4)
-
-
Deposits to banks pledged as collateral
622
(42)
580
(150)
430
Total
2,554
(1,112)
1,442
(732)
(153)
557
31 December 2024
Related amounts not offset in the BS
Gross amounts
of recognised
financial
liabilities
Gross amounts of
recognised
financial assets
offset in the
balance sheet
Net amounts of
financial
liabilities
presented in the
balance sheet
Financial
instruments
(incl. non-cash
collateral)
Cash
collateral
pledged
Net
amount
€ million
€ million
€ million
€ million
€ million
€ million
Financial Liabilities
Derivative financial instruments
1,510
(420)
1,090
(783)
(150)
157
Repurchase agreements with banks
2,399
(447)
1,952
(1,952)
-
-
Other financial liabilities
4
(4)
-
-
Deposits from banks received as collateral
358
(240)
118
(118)
-
Total
4,271
(1,111)
3,160
(2,853)
(150)
157
31 December 2023
Related amounts not offset in the BS
Gross amounts
of recognised
financial assets
Gross amounts of
recognised
financial liabilities
offset in the
balance sheet
Net amounts of
financial assets
presented in the
balance sheet
Financial
instruments (incl.
non-cash
collateral)
Cash
collateral
received
Net amount
€ million
€ million
€ million
€ million
€ million
€ million
Financial Assets
Reverse repos with banks
1,249
(1,210)
39
(39)
-
-
Derivative financial instruments
1,612
(752)
860
(672)
(56)
132
Other financial assets
4
(4)
-
-
-
-
Deposits to banks pledged as collateral
1,093
(57)
1,036
(340)
-
696
Total
3,958
(2,023)
1,935
(1,051)
(56)
828
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
Related amounts not offset in the BS
Gross amounts
of recognised
financial
liabilities
Gross amounts of
recognised
financial assets
offset in the
balance sheet
Net amounts of
financial
liabilities
presented in the
balance sheet
Financial
instruments (incl.
non-cash
collateral)
Cash
collateral
pledged
Net amount
€ million
€ million
€ million
€ million
€ million
€ million
Financial Liabilities
Derivative financial instruments
1,906
(492)
1,414
(930)
(340)
144
Repurchase agreements with banks
3,638
(1,210)
2,428
(2,428)
-
-
Other financial liabilities
4
(4)
-
-
-
-
Deposits from banks received as collateral
404
(317)
87
(56)
-
31
Total
5,952
(2,023)
3,929
(3,414)
(340)
175
Derivative
financial assets
and liabilities
not under
master
netting arrangements
and similar
agreements
of carrying
value of
€ 10
million and € 30 million, respectively,
(2023: € 21 million and € 36 million, respectively) are not presented
in the above tables.
Financial assets and
financial liabilities are
disclosed in the above
tables at their
recognized amounts,
either at fair
value (derivative
assets and liabilities) or amortized cost (all other financial instruments),
depending on the type of financial instrument.
5.2.2
Market risk
The Group takes on exposure to market risk, which is the risk of potential financial loss due to an adverse change in market variables.
Changes
in
interest
rates,
foreign
exchange
rates,
credit
spreads,
equity
prices
and
other
relevant
factors,
such
as
the
implied
volatilities, can affect the Group’s
income or the fair value of its financial instruments. The market
risks, the Group is exposed to, are
monitored, controlled and estimated
by Group Market and Counterparty Risk
Unit (GMCRU).
GMCRU is responsible
for the measurement,
monitoring, control
and reporting of
all market
risks, including the
interest rate
risk in
the Banking Book (IRRBB) and the credit spread risk
in the Banking Book (CSRBB) of the Group. In particular,
the Bank in response to
the
regulatory
developments
and requirements
(EBA/GL/2022/14),
has
further
enhanced
its infrastructure,
governance
and
limit
structure accordingly, so as to measure and monitor its
CSRBB, via a
dedicated stress testing framework. The Unit reports
to the GCRO
and its main responsibilities include:
●
Monitoring of all key market,
IRRBB and CSRBB risk indicators;
●
Implementation of Stress Testing
methodologies for market risk, IRRBB and
CSRBB (historical and hypothetical);
●
Monitoring and reporting of market and IRRBB and CSRBB risk limits utilization;
●
Development, maintenance and expansion of risk management
infrastructure.
The market risks the Group is exposed
to, are the following:
(a) Interest rate risk
The Group takes
on exposure to
the effects of
fluctuations in the
prevailing levels
of market interest
rates on its
cash flows and
the
fair
value
of
its financial
positions.
Cash flow
interest
rate
risk is
the risk
that
the future
cash flows
of
a financial
instrument
will
fluctuate because of
changes in market
interest rates.
Fair value interest
rate risk
is the risk that
the value of
a financial instrument
will fluctuate because of changes in market interest
rates. Fair value interest
rate risk is further split into ‘General’ and ‘Specific’.
The
former refers
to changes in the fair valuation
of positions due to the movements
of benchmark interest rates,
while the latter refers
to changes in the fair valuation of positions due to the
movements of specific issuer yields and credit spreads.
(b) Currency risk
The Group takes
on exposure to the
effects of fluctuations
in the prevailing foreign
currency exchange rates
on its financial position
and cash flows.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
(c) Equity risk
Equity price risk is the risk
of the decrease of fair values as
a result of changes in the
levels of equity indices and the
value of individual
stocks. The equity risk that the Group undertakes
arises mainly from the investment portfolio.
(d) Implied volatilities
The Group carries limited implied volatility (vega)
risk, mainly as a result of open positions on options.
The BoD and
Board Risk Committee set limits on the level of exposure
to market risks, which are monitored
on a daily basis.
Market
risk
in
Greece
and
International
Subsidiaries
is
managed
and
monitored
mainly
using
Value
at
Risk
(VaR)
methodology.
Sensitivity and stress test analysis is additionally performed.
(i) VaR
summary for 2024 and 2023
VaR is a
methodology used in measuring financial risk
by estimating the potential
negative change in the
market value of
a portfolio
at a
given confidence
level and
over a
specified time
horizon. The
VaR
that the
Group measures
is an
estimate based
upon a
99%
confidence level and a holding period of 1 day and the methodology used for the calculation is Monte Carlo simulation (full
re-pricing
of the positions is performed).
The VaR
models are designed
to measure
market risk
in a normal
market environment.
It is assumed
that any
changes occurring
in
the risk factors affecting the
normal market environment
will follow a normal distribution.
Although VaR
is an
important tool
for measuring
market risk,
the assumptions
on which
the model
is based
do give
rise to
certain
limitations. Given this, actual outcomes are
monitored regularly,
via back testing process, to test
the validity of the assumptions and
the parameters used in the VaR
calculation.
The perimeter of the
VaR analysis
includes Eurobank Ergasias
Services and Holdings S.A., Eurobank
S.A. and its banking subsidiaries,
taking into account the FVTPL, including trading
and FVOCI portfolios. Consequently,
the potential impact as it is depicted in the VaR
figures would directly affect Group’s
Capital (income statement or equity).
Since VaR
constitutes an
integral part
of the Group's
market risk
control regime,
VaR limits
have been
established for
all the above
operations
(trading
and
investment
portfolios
measured
at
fair
value)
and
actual
exposure
is
reviewed
daily
by
management.
However,
the use of this approach does not prevent losses outside of these limits in the
event of extraordinary market
movements.
VaR by risk type - Greece and International
Subsidiaries
(1)
.
2024
(Average)
2024
2023
(Average)
2023
€ million
€ million
€ million
€ million
Interest Rate Risk
6
6
7
9
Foreign Exchange Risk
0
1
0
1
Equities Risk
1
1
2
1
Total VaR
6
6
8
9
(1)
Includes all portfolios measured at fair value.
The aggregate VaR of the interest
rate, foreign exchange and equities VaR
benefits from diversification effects. The largest portion
of
the Group’s Interest Rate VaR figures is attributable to the risk associated with
interest rate and credit spread sensitive debt securities
and derivatives. The average
VaR of 2024 remains
relatively stable at
low levels, as compared to
the average VaR
of 2023, reflecting
the reduced volatility observed in the markets.
(ii) Interest rate gap and sensitivity
The following
table provides
the interest
rate repricing
gap of
the Group,
which analyses
the structure
of interest
rate mismatches
within the balance sheet. The Group’s
financial assets/liabilities are included at their notional/outstanding
amounts and categorized
based on either (i) the next contractual repricing date if floating rate
or (ii) the maturity/call date (whichever is first) if fixed
rate. The
below analysis provides an approximation of the interest rate risk exposure since transactions with different
duration are aggregated
together per time bucket.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2024⁽²⁾
less than 1
month
1-3 months
3-12 months
1-5
years
More than 5
years
€ million
€ million
€ million
€ million
€ million
Balances with central banks
15,512
-
-
-
-
Due from credit institutions
2,185
355
7
60
-
Debt securities⁽¹⁾
1,518
1,086
1,532
8,121
8,988
Loans and advances to customers
18,023
11,724
12,563
6,225
3,510
37,238
13,165
14,102
14,407
12,499
Due to central banks
-
-
-
-
-
Due to credit institutions
(2,936)
(596)
(0)
(10)
-
Due to customers
(53,944)
(8,155)
(11,024)
(3,157)
(2,071)
Debt securities in issue
(660)
(0)
(335)
(3,771)
(2,165)
(57,540)
(8,752)
(11,360)
(6,938)
(4,237)
Derivative financial instruments
(6,382)
(776)
(171)
11,573
(4,375)
Interest rate gap
(26,684)
3,638
2,571
19,042
3,887
31 December 2023⁽²⁾
less than 1
month
1-3 months
3-12 months
1-5
years
More than 5
years
€ million
€ million
€ million
€ million
€ million
Balances with central banks
10,438
-
-
-
-
Due from credit institutions
2,208
1,125
7
-
60
Debt securities⁽¹⁾
758
481
928
5,333
6,446
Loans and advances to customers
16,453
8,026
8,084
5,133
4,675
29,857
9,632
9,018
10,467
11,182
Due to central banks
(3,665)
-
-
-
-
Due to credit institutions
(1,148)
(3,260)
-
(251)
-
Due to customers
(44,418)
(4,859)
(6,655)
(1,406)
-
Debt securities in issue
-
-
(96)
(3,872)
(711)
(49,231)
(8,118)
(6,751)
(5,529)
(711)
Derivative financial instruments
1,891
2,397
60
1,146
(5,584)
Interest rate gap
(17,483)
3,910
2,327
6,084
4,886
(1)
Including short positions in debt securities (note 35).
(2)
Amounts are before offsetting (note 5.2.1.4).
The Group performs a sensitivity analysis to assess
the impact on net interest income (NII) and
on other comprehensive income (OCI),
to a hypothetical change in the market
interest rates.
.
The impact
on NII is
calculated under
the scenario of
an instantaneous
parallel shift
of all interest
rates by
+/- 100bps,
for a 1-year
period, assuming a static balance sheet approach. As at 31 December 2024 the impact on NII, under the scenario of a parallel shift
in
the yield curves, stands at € 122 million (+100bps) and € -167 million (-100bps) (31 December
2023: € 194 million and € -171 million,
respectively).
The
impact on
OCI is
calculated
as the
fair
value
movement
of
all financial
assets measured
at
FVOCI,
net of
hedging
and of
any
hedging instruments
designated in
qualifying cash flow
hedge relationships.
As at 31
December 2024 the
impact on OCI,
under the
scenario of a parallel shift
in the yield curves, stands
at € -71 million (+100bps) and
€ 75 million (-100bps) (31 December
2023: € -68
million and € 72 million, respectively).
.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
(iii) Foreign exchange risk
The following tables present the Group’s
exposure to foreign currency
exchange risk as at 31 December 2024 and 2023:
31 December 2024
USD
CHF
GBP
RON
BGN
OTHER
EUR
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
ASSETS
Cash and balances with
central banks
18
2
7
0
684
2
15,417
16,131
Due from credit
institutions
641
47
62
27
0
70
1,349
2,196
Securities held for trading
19
-
28
-
20
-
219
285
Derivative financial
instruments
29
0
1
0
-
1
808
838
Loans and advances to
customers
3,936
1,690
985
6
6,078
6
38,251
50,953
Investment securities
1,985
-
121
-
103
190
19,784
22,184
Other assets⁽¹⁾
12
2
1
19
308
0
8,130
8,472
Assets of disposal groups
classified as held for sale
(note
30)
-
0
-
5
-
-
85
91
Total Assets
6,641
1,743
1,205
56
7,193
269
84,043
101,150
LIABILITIES
Due to central banks and
credit institutions
32
3
4
0
2
3
2,755
2,800
Derivative financial
instruments
10
3
1
0
0
2
1,104
1,120
Due to customers
7,489
80
610
6
5,541
165
64,702
78,593
Debt securities in issue
76
-
-
-
-
-
6,980
7,056
Other liabilities⁽²⁾
47
1
6
37
99
1
2,491
2,682
Total Liabilities
7,654
87
621
43
5,643
171
78,032
92,251
Net on balance sheet
position
(1,013)
1,656
583
13
1,550
98
6,011
8,899
Derivative forward
foreign exchange position
1,040
(1,705)
(571)
(7)
(439)
(107)
1,777
(12)
Total Foreign
Exchange
Position
27
(49)
12
6
1,112
(9)
7,788
8,887
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
USD
CHF
RON
BGN
OTHER
EUR
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
ASSETS
Cash and balances with
central banks
13
2
0
867
7
10,054
10,943
Due from credit
institutions
380
31
33
2
72
1,836
2,354
Securities held for trading
55
-
-
19
0
305
379
Derivative financial
instruments
19
0
-
0
1
861
881
Loans and advances to
customers
3,210
1,886
7
5,129
714
30,599
41,545
Investment securities
1,668
-
-
75
288
12,679
14,710
Other
assets ⁽¹⁾
13
4
4
288
2
8,452
8,763
Assets of disposal groups
classified as held for sale
(note 30)
0
59
-
-
-
147
206
Total Assets
5,358
1,982
44
6,380
1,084
64,933
79,781
LIABILITIES
Due to central banks and
credit institutions
188
0
0
5
11
6,645
6,849
Derivative financial
instruments
18
2
0
0
1
1,429
1,450
Due to customers
5,822
61
2
5,035
593
45,929
57,442
Debt securities in issue
76
-
-
-
0
4,680
4,756
Other
liabilities⁽²⁾
43
1
21
80
7
1,233
1,385
Total Liabilities
6,147
64
23
5,120
612
59,916
71,882
Net on balance sheet
position
(789)
1,918
21
1,260
472
5,017
7,899
Derivative forward foreign
exchange position
668
(1,921)
(10)
(329)
(502)
1,781
(313)
Total Foreign
Exchange
Position
(121)
(3)
11
931
(30)
6,798
7,586
(1)
Other assets include Investments in associates and joint ventures, Property and equipment, Investment
property, Intangible assets, Deferred tax
assets and
Other assets.
(2)
Other liabilities include liabilities of disposal group classified
as held for sale (note 30).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
5.2.3
Liquidity risk
The Group
is exposed
to daily
calls on
its available
cash resources
due to
deposits withdrawals,
maturity of
medium or
long-term
notes,
maturity of
secured
or unsecured
funding (interbank
repos and
money market
takings), loan
drawdowns
and forfeiture
of
guarantees. Furthermore, margin calls on secured funding transactions (with ECB and the market), on risk mitigation contracts (CSAs,
GMRAs) and on
centrally cleared transactions
(CCPs) result in
liquidity exposure. The
Group maintains
cash resources to
meet all of
these needs. The Board Risk Committee sets liquidity limits to ensure
that sufficient funds are available to
meet such contingencies.
Past experience
shows that
liquidity requirements
to support
calls under
guarantees and
standby letters
of credit
are considerably
less than the amount
of the commitment. This is
also the case with credit
commitments where the outstanding
contractual amount
to extend
credit does
not necessarily
represent
future cash
requirements,
as many
of these
commitments will
expire or
terminate
without being funded.
The
matching
and
controlled
mismatching
of
the
maturities
and
interest
rates
of
assets
and
liabilities
is
fundamental
to
the
management of the
Group. It is
unusual for banks
to be completely
matched, as transacted
business is often
of uncertain term
and
of different types. An unmatched
position potentially enhances profitability,
but also increases the risk of losses.
The maturities of assets and liabilities and the ability to
replace, at an acceptable cost, interest
bearing liabilities as they mature, are
important factors in assessing the liquidity of the
Group.
Liquidity Risk Management Framework
The Group’s Liquidity Risk Policy
defines the following supervisory and control structure:
●
Board Risk Committee's role
is to approve all
strategic liquidity risk
management decisions and to monitor
the quantitative
and qualitative aspects of liquidity risk;
●
Group
Assets
and
Liabilities Committee
has
the
mandate
to
form
and
implement
the
liquidity
policies and
guidelines
in
conformity with Group's risk appetite, and
to review at least monthly the overall
liquidity position of the Group;
●
Group Treasury is responsible for the implementation of the
Group's liquidity strategy, taking into account the latest funding
plan and for the daily management of the Group’s
liquidity;
●
Group Market and Counterparty Risk Sector is responsible for measuring, controlling, monitoring and reporting the liquidity
risk of the Group.
The main items related to liquidity risk that are
monitored on a periodic basis are summarized as follows:
●
The analysis of liquidity buffer held on Group level
per asset type and per subsidiary;
●
The Liquidity Coverage Ratio (LCR) both in solo
and group level;
●
The Net Stable Funding Ratio (NSFR) both in solo and group level;
●
Liquidity stress
test
scenarios. These
scenarios evaluate
the impact
of a
number of
stress events
on the
Group's liquidity
position;
●
Market sensitivities affecting liquidity;
●
The Additional Liquidity Monitoring Metrics (ALMM) both in solo and group level;
●
The Asset Encumbrance (AE) both in solo and group level;
●
Monitoring and implementation of the funding plan.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Maturity analysis of assets and assets held for managing liquidity risk
The following tables present maturity analysis of Group assets as at 31 December 2024 and 2023, based on their carrying values. The
Group has established credit risk mitigation contracts
with its interbank counterparties (ISDA/CSA). Under these contracts
the Group
has
posted
or
received
collateral,
which
covers
the
corresponding
net
liabilities
or
net
assets
from
derivative
transactions.
The
collateral
posted
is
not
presented
in
the
below
tables.
For
derivative
assets
not
covered
by
ISDA/CSA
agreements
the
positive
valuation is presented at fair
value in the ‘over 1 year’ time bucket.
31 December 2024
Less than 1
month
1 - 3
months
3 months
to 1 year
Over 1
year
Total
€ million
€ million
€ million
€ million
€ million
- Cash and balances with central banks
16,131
-
-
-
16,131
- Due from credit institutions
1,275
121
50
250
1,696
- Loans and advances to customers
3,304
1,557
3,894
42,198
50,953
- Debt Securities
246
332
1,275
20,092
21,945
- Equity securities
-
-
-
524
524
- Derivative financial instruments
-
-
-
6
6
- Other assets⁽¹⁾
60
16
8
8,388
8,472
- Assets of disposal groups classified as held for sale (note 30)
-
12
79
-
91
Total
21,016
2,038
5,306
71,458
99,818
31 December 2023
Less than 1
month
1 - 3
months
3 months
to 1 year
Over 1
year
Total
€ million
€ million
€ million
€ million
€ million
- Cash and balances with central banks
10,943
-
-
-
10,943
- Due from credit institutions
841
128
-
330
1,299
- Loans and advances to customers
2,841
1,348
3,817
33,539
41,545
- Debt Securities
72
93
617
13,919
14,701
- Equity securities
-
-
-
388
388
- Derivative financial instruments
-
-
-
13
13
- Other assets⁽¹⁾
62
16
8
8,677
8,763
- Assets of disposal groups classified as held for sale
-
-
206
-
206
Total
14,759
1,585
4,648
56,866
77,858
(1)
Other assets include Investments in associates and joint ventures, Property and equipment, Investment property,
Intangible assets, Deferred tax assets and
Other assets.
The
Group
holds
a
diversified
portfolio
of
cash
and
highly
liquid
assets
to
support
payment
obligations
and
contingent
deposit
withdrawals in a stressed market
environment. The Group's assets held for
managing liquidity risk comprise:
(a) Cash and balances with central banks;
(b) Eligible bonds and other financial assets for collateral
purposes; and
(c) Current accounts with banks and interbank
placings maturing within one month.
The unutilized assets, containing highly liquid and central banks eligible assets, provide
a contingent liquidity reserve of € 40.1 billion
as
of
31 December
2024
(2023:
€
22.3
billion).
This
increase
is
attributed
mainly
to:
i)
inflows
due
to
customer
deposits
(annual
increase by € 6 billion), ii) EMTN
and Tier II issuances equal to € 2 billion),
and iii) the impact from the consolidation
of Hellenic Bank
(€ 11 billion)
(note 23.2).
In addition,
the Group
holds other types
of liquid assets,
as defined by
the regulator,
amounting to
€ 6.6
billion (cash value) (2023: €
7.0 billion). It should be noted that
a part of the ECB available
collateral of € 7 billion
(cash value) (2023:
€
1.8
billion)
is
held
by
Group’s
subsidiaries
for
which
regulatory
restrictions
are
applied
and
currently
limit
the
level
of
its
transferability between
group entities.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Maturity analysis of liabilities
The amounts disclosed
in the
tables below are
the contractual undiscounted cash
flows for the
years 2024 and
2023. Liabilities without
contractual
maturities (sight
and saving
deposits) are
presented in
the ‘less
than 1 month’
time bucket.
The Group
has established
credit risk
mitigation
contracts with
its interbank
counterparties (ISDA/CSA).
Due to
these contracts
the Group
has already
posted
collateral which covers the valuation
of its net liabilities from interbank derivatives. For derivative liabilities not covered
by ISDA/CSA
agreements the negative valuation
is presented at fair value in the ‘less than
1 month’ time bucket.
It should be noted that this table represents the worst case scenario since it is based on the assumption that all liabilities will be paid
at maturity
and they will
not be rolled
over
(e.g. all term
deposits are
withdrawn at
their contractual
maturity.
Even in
an adverse
scenario of a systemic financial crisis the likelihood
of such an event is remote.
31 December 2024
Gross nominal
Less than
1 - 3
3 months
Over
(inflow)/
1 month
months
to 1 year
1 year
outflow
€ million
€ million
€ million
€ million
€ million
Non-derivative liabilities:
- Due to central banks and credit institutions
992
1,032
251
1,109
3,384
- Due to customers
59,640
7,912
10,166
984
78,702
- Debt securities in issue
90
36
478
8,096
8,700
- Lease liabilities
4
7
29
181
221
- Insurance contract liabilities
-
5
15
88
108
- Other liabilities
482
1,471
433
-
2,386
61,208
10,463
11,372
10,458
93,501
Derivative financial instruments
6
-
-
-
6
Off-balance sheet items
Less than
Over
1 year
1 year
€ million
€ million
Credit related commitments
6,241
7,767
Contractual commitments⁽¹⁾
51
Total
6,292
7,767
31 December 2023
Gross nominal
Less than
1 - 3
3 months
Over
(inflow)/
1 month
months
to 1 year
1 year
outflow
€ million
€ million
€ million
€ million
€ million
Non-derivative liabilities:
- Due to central banks and credit institutions
713
2,889
3,079
396
7,077
- Due to customers
44,691
5,775
6,682
424
57,572
- Debt securities in issue
75
593
245
4,986
5,899
- Lease liabilities
4
16
55
143
218
- Other liabilities
501
460
234
-
1,195
45,984
9,733
10,295
5,949
71,961
Derivative financial instruments
11
-
-
-
11
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Off-balance sheet items
Less than
Over
1 year
1 year
€ million
€ million
Credit related commitments
2,429
8,989
Contractual commitments⁽¹⁾
41
-
Total
2,470
8,989
(1)
It refers to contractual commitments for the purchase of own used, investment property and intangible assets (note 43).
5.2.4 Sustainability risks
Sustainability risks are neither new
nor stand-alone risks, rather they are
transverse risks, manifesting
through existing risk types. As
sustainability risks interact with other risks and result in direct
distributional impacts and indirect macroeconomic impacts, the Group
understands that careful consideration of the cross-cutting nature thereof
is necessary in
order to ensure the
optimal implementation
of adaptation activities.
Specifically,
sustainability
risks are
defined as
potential
losses arising
from any
negative
financial impact
for
the Group,
stemming
from current or prospective impacts of
any climate-related & environmental, social or governance event(s) on Group’s counterparties
or invested assets.
Definitions of sustainability risks include the following:
•
Climate-Related
and Environmental
risks:
Climate-related
and environmental
risks
are
defined
as the
risks
deriving from
potential loss or
negative impact
to the Group,
including loss/ damage to
physical assets,
disruption of business
or system
failures,
transition
expenditures
and
reputational
effects
from
the
adverse
consequences
of
climate
change
and
environmental degradation.
•
Social risk: Social risk refers
to potential losses arising
from any negative
financial impact on the Group
stemming from the
current
or
prospective
impacts
of
social
factors
(such
as
human
rights
violation,
income
inequality,
customer
safety
&
protection and consumers’ changing preferences)
on the Group’s counterparties
or invested assets.
•
Governance
risk:
Governance
risk
refers
to
potential
losses
arising
from
any
negative
financial
impact
on
the
Group
stemming from the current or prospective impacts of governance factors (such as anti-financial crime, non-compliance with
policies or regulations and governance practices) on the
Group’s counterparties
or invested assets.
The Group is adopting a strategic approach towards
sustainability, climate change risk identification
and risk management, signifying
the great
importance that
is given
in the
risks
and opportunities
arising from
the transitioning
to
a low-carbon
and more
circular
economy. In
this context, the Bank has approved and implements
its Financed Impact Strategy,
which focuses on:
•
Clients’ engagement and awareness
to adapt their business so as to address climate change challenges and
opportunities
•
Actions for supporting clients in their transition efforts
towards a more sustainable economic environment
•
Enablers and tools, such as frameworks
and products, to underpin sustainable financing
•
Assessment and
management of
sustainability
related
risks within
its loan
and investment
portfolios,
including assessing
exposure to transition and physical
risks linked to climate change.
To
facilitate
the
classification
of
sustainable/green
financing
opportunities
in
a
structural
manner,
the
Group
has
developed
its
Sustainable Finance Framework (SFF). Through its SFF,
the Group is able to classify sustainable lending solutions offered to its clients,
specifying the applied classification approach
and the activities defined as eligible to
access sustainable financing (eligible green
and
social
assets).
Moreover,
the
Group
maintains
a
Sustainable
Investment
Framework
(SIF),
which
outlines
the
Group’s
various
sustainable investment
approaches/ strategies
based on criteria observed
as per international
market practices,
the process for
the
selection of eligible investments, as well as the
monitoring frequency applicable to the sustainable portfolio.
Furthermore,
the
Group
has
updated
its
Sustainability
Governance
structure
by
introducing
and
defining
specific
roles
and
responsibilities in
order to
support the roll
-out of the
Sustainability Strategy
and the integration
of sustainability
risks, through
the
involvement
of various
key stakeholders
(i.e. Business
& Risk
Units, Committees,
etc.). The
Group applies
a model
of defined
roles
and responsibilities regarding the management
of sustainability risks across the 3 Lines of Defense.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
In this
context and
taking into
account the
significant impact
of sustainability
risks both
on financial
institutions and
on the
global
economy,
the
Group
developed
and
approved
its
Sustainability
Risk
Management
Policy
which
aims
at
fostering
a
holistic
understanding of the effects of sustainability
risks on its business model, as well as support decision-making regarding these matters
and provide a robust
governance under its Risk Management
Framework. The purpose
of the Policy is to
provide an overview
and a
common
understanding
of
Group’s
main
governance
arrangements,
as
well
as
roles
&
responsibilities
undertaken
by
the
Group
Sustainability Risk (GSR), in the context of the Group’s
overall Sustainability risks management activities.
GSR has the overall responsibility for overseeing,
monitoring, and managing sustainability risks. More specifically,
GSR:
•
prepares
and
maintains
the
Bank’s
Sustainability
Risk
Management
Policy,
as
well
as
relevant
policies,
processes
and
methodologies
(e.g.
ESG
Risk
Assessment,
Climate
Risk
Scorecard,
exclusion
lists)
in
collaboration
with
the
Group
Sustainability Unit, Business & Risk Units.
•
leads the
development
and implementation
of the
Sustainability
risk related
framework,
as well
as relevant
policies and
processes
(e.g., Sustainability
Risk Management
Framework,
Climate
Risk
Stress
Test
Framework
documents)
across
the
Group,
in
coordination
with
other
involved
units,
as
well
as
the
development
and
update
of
the
Sustainable
Finance
Frameworks.
•
monitors and reports to the Group Senior Sustainability Officer
(GSSO) the progress of the implementation of
the developed
Climate Risk action plan and reports to the Board for
Sustainability Risk matters.
•
supports, reviews and challenges the involved
stakeholders, across the Group,
regarding the setting of the Net Zero
targets
and of the Financed Impact Strategy implementation, through the identification of material Sustainability risk related areas.
•
leads the 2nd Line of Defense
independent sustainable lending re
-assessment process (i.e. provides
opinion on sustainable
financings
regarding
the
CIB
Portfolio,
as
part
of
a
bespoke
process
and
the
characterization
of
products
of
the
Retail
Portfolio as sustainable) against
the Sustainable Finance criteria (as per pre-determined
thresholds).
•
develops
and maintains
the Climate
Risk Stress
Testing
(CRST) Framework,
as well
as scenario
analysis and
stress testing
methodologies, and coordinates the performance of sustainability risk scenario analysis and relevant stress test exercises at
Group level.
Further information on sustainability risks
is provided in the Group’s
Sustainability Statement as at 31 December 2024.
5.3
Fair value of financial assets and liabilities
Fair value is
the price that
would be received
to sell an asset
or paid to
transfer a
liability in an orderly
transaction between
market
participants in
the principal (or
most advantageous)
market at
the measurement
date under
current market
conditions (i.e. an
exit
price).
When
a
quoted
price
for
an
identical
asset
or
liability
is
not
observable,
fair
value
is
measured
using
another
valuation
technique that
is appropriate
in the
circumstances
and maximizes
the use
of relevant
observable inputs
and minimizes
the use
of
unobservable inputs. Observable inputs are developed
using market data, such as publicly available
information about actual events
or transactions, and reflect assumptions that market participants would
use when pricing financial
instruments, such as quoted prices
in active markets for similar instruments,
interest rates and yield curves,
implied volatilities and credit spreads.
The Group’s financial instruments measured at fair value or at amortized cost for which fair value is disclosed
are categorized into the
three levels of the fair value hierarchy
based on whether the inputs to the fair values are observable or
unobservable, as follows:
(a)
Level 1-Financial instruments measured based on quoted prices (unadjusted)
in active markets for identical financial instruments
that the Group can
access at the measurement date.
A market is considered
active when quoted prices are
readily and regularly
available
from
an
exchange,
dealer,
broker,
industry
group,
pricing
service,
or
regulatory
agency
and
represent
actually
and
regularly
occurring
transactions.
Level
1 financial
instruments
include
actively
quoted
debt
instruments
held
or
issued
by the
Group,
equity
and
derivative
instruments
traded
on
exchanges,
as
well
as
mutual
funds
that
have
regularly
and
frequently
published quotes.
(b)
Level
2-Financial
instruments
measured
using
valuation
techniques
with
inputs,
other
than
level
1
quoted
prices,
that
are
observable either directly or
indirectly, such as: i)
quoted prices for similar
financial instruments in active
markets, ii) quoted prices
for identical or similar financial instruments in markets
that are not active, iii) inputs other than quoted prices that are directly or
indirectly observable,
mainly interest
rates and
yield curves observable
at commonly
quoted intervals,
forward exchange
rates,
equity prices, credit spreads and implied volatilities obtained from internationally recognized market
data providers and iv) other
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
unobservable inputs which
are insignificant to
the entire fair
value measurement. Level
2 financial instruments
include over the
counter (OTC) derivatives,
less liquid debt instruments held or issued by the Group and equity instruments.
(c)
Level
3-Financial
instruments
measured
using
valuation
techniques
with
significant
unobservable
inputs.
When
developing
unobservable
inputs,
best
information
available
is
used,
including
own
data,
while
at
the
same
time
market
participants'
assumptions are reflected (e.g.
assumptions about risk). Level
3 financial instruments include
unquoted equities or equities
traded
in markets that are not considered active, certain OTC derivatives, loans and advances to customers including securitization notes
of loan
portfolios
originated
by the
Group
and recognized
in financial
assets and
certain debt
securities held
or issued
by the
Group.
Financial instruments carried at fair value
The fair value hierarchy categorization of the
Group's financial assets and
liabilities measured at
fair value is presented in
the following
tables:
31 December 2024
Level 1
Level 2
Level 3
Total
€ million
€ million
€ million
€ million
Securities held for trading
285
0
-
285
Investment securities at FVTPL
259
33
92
384
Derivative financial instruments⁽¹⁾
0
838
-
838
Investment securities at FVOCI
3,881
191
77
4,148
Loans and advances to customers mandatorily
at FVTPL
-
-
19
19
Financial assets measured at fair value
4,425
1,062
188
5,675
Derivative financial instruments⁽¹⁾
1
1,119
-
1,120
Trading liabilities
43
-
-
43
Financial liabilities measured at fair value
44
1,119
-
1,163
31 December 2023
Level 1
Level 2
Level 3
Total
€ million
€ million
€ million
€ million
Securities held for trading
379
0
-
379
Investment securities at FVTPL
137
21
105
263
Derivative financial instruments⁽¹⁾
0
881
0
881
Investment securities at FVOCI
3,209
271
12
3,492
Loans and advances to customers mandatorily
at FVTPL
-
-
15
15
Financial assets measured at fair value
3,725
1,173
132
5,030
Derivative financial instruments⁽¹⁾
2
1,448
-
1,450
Trading liabilities
121
-
-
121
Financial liabilities measured at fair value
123
1,448
-
1,571
(1)
Amounts
are presented after offsetting € 619
million and € 420 million level 2
derivative financial assets and liabilities, respectively,
against cash collateral
received/pledged (2023: after offsetting € 752 million and € 492 million derivative financial
assets and liabilities, respectively) (note 5.2.1.4).
The Group
recognizes
transfers
into
and out
of the
fair value
hierarchy
levels at
the beginning
of the
quarter in
which a
financial
instrument's
transfer
was effected.
During the
year ended
31 December
2024, the
Group transferred
debt securities
measured at
FVOCI of € 94 million
from level 2 to
level 1 and € 26
million from level 2
to level 3, following
the enhancement of the methodology
applied for their classification (see below in section Group’s
valuation processes and techniques).
Reconciliation of Level 3 fair value measurements
Notes to the Consolidated Financial Statements
.
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2024
2023
€ million
€ million
Balance at 1 January
132
155
Arising from acquisition ⁽²⁾
20
-
Transfers
into Level 3
27
1
Transfers
out of Level 3
(0)
(7)
Additions, net of disposals and redemptions ⁽¹⁾
12
(20)
Total gain/(loss)
for the year included in profit or loss
1
3
Total gain/(loss)
for the year included in other comprehensive income
1
0
Foreign exchange differences and other
(4)
0
Balance at 31 December
188
132
(1)
Including capital returns on equity instruments.
(2)
It refers to Level 3 fair value measurements of Hellenic Bank group, which was consolidated as of the third quarter of 2024 (note 23.2).
Group's valuation processes and techniques
The Group’s
processes and procedures
governing the
fair valuations
are established
by the Group
Market Counterparty
Risk Sector
in line
with the
Group’s
accounting policies.
The Group
uses widely
recognized
valuation
models for
determining the
fair value
of
common
financial
instruments
that
are
not quoted
in an
active market,
such as
interest
and cross
currency
swaps,
that
use only
observable market data
and require little management
estimation and judgment. Specifically,
observable prices or model inputs are
usually
available
in
the
market
for
listed
debt
and
equity
securities,
exchange-traded
and
simple
over-the-counter
derivatives.
Availability
of
observable
market
prices
and
model
inputs
reduces
the
need
for
management
judgment
and
estimation
and
also
reduces
the uncertainty associated with determining fair values. For the year ended 31 December 2024, the Group has enhanced the
methodology applied for the classification of debt
securities into the three levels of
the fair value hierarchy, by assigning a rating scale
for each debt
security, based
on the quality and quantity
of the market data
inputs used to calculate
its fair value
at a specific date.
The debt securities are
then allocated into
levels based on specific rating
thresholds representing
highly liquid to thinly
traded debt
securities.
Where valuation
techniques are used
to determine the
fair values
of financial instruments
that are not
quoted in an
active market,
they
are
validated
against
historical
data
and,
where
possible,
against
current
or
recent
observed
transactions
in
different
instruments,
and
periodically
reviewed
by
qualified
personnel
independent
of
the
personnel
that
created
them.
All
models
are
certified before
they are
used and models
are calibrated
to ensure
that outputs reflect
actual data
and comparative
market prices.
Fair values’
estimates obtained
from models
are adjusted
for any
other factors,
such as liquidity
risk or model
uncertainties, to
the
extent that market
participants would take
them into account in
pricing the instrument. Fair
values also reflect the credit
risk of the
instrument and include adjustments to take
account of the credit risk of the Group and the counterparty,
where appropriate.
Valuation
controls applied by
the Group may
include verification of
observable pricing, re-performance
of model valuations,
review
and approval process for new models and/or changes
to models, calibration and back-testing against observable market transactions,
where available, analysis of
significant valuation movements, etc.
Where third parties'
valuations are used for
fair value measurement,
these are reviewed in order to ensure
compliance with the requirements of IFRS 13.
The fair values of
OTC derivative financial
instruments are estimated
by discounting expected cash
flows using market
interest rates
at the measurement date.
Counterparty credit risk adjustments
and own credit risk
adjustments are applied to
OTC derivatives, where
appropriate. Bilateral
credit risk adjustments
consider the expected cash
flows between the Group
and its counterparties under
the
relevant terms
of the derivative
instruments and the
effect of the
credit risk on
the valuation of
these cash flows.
As appropriate in
circumstances,
the Group
considers also
the effect
of any
credit risk
mitigating arrangements,
including collateral
agreements and
master netting agreements on the calculation of
credit risk valuation adjustments (CVAs). CVA calculation uses probabilities of default
(PDs) based
on observable
market data
such as
credit default
swaps (CDS)
spreads, where
appropriate, or
based on
internal rating
models.
The
Group
applies
similar
methodology
for
the
calculation
of
debit-value-adjustments
(DVAs),
when
applicable.
Where
valuation techniques
are based
on internal
rating models
and the
relevant
CVA is
significant to
the entire
fair value
measurement,
such
derivative
instruments
are
categorized
as
Level
3
in
the
fair
value
hierarchy.
A
reasonably
possible
change
in
the
main
unobservable input (i.e.
the recovery rate), used
in their valuation,
would not have
a significant effect on
their fair value measurement.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The Group
determines
fair values
for
debt securities
held using
quoted
market
prices in
active markets
for
securities with
similar
credit
risk,
maturity
and
yield, quoted
market
prices
in
non
active markets
for
identical
or
similar
financial
instruments,
or
using
discounted cash flows method.
Unquoted equity
instruments at
FVTPL, included
in Level
3, are estimated
using mainly
(i) third
parties' valuation
reports based
on
investees'
net
assets,
where
management
does
not
perform
any
further
significant
adjustments,
and
(ii)
net
assets'
valuations,
adjusted where considered necessary.
Loans and advances to customers including securitization notes of loan
portfolios originated by the Group with contractual cash flows
that do not represent
solely payments of principal and interest
(SPPI failures), are measured
mandatorily at fair value
through profit
or loss. Quoted market
prices are not available
as there are no active
markets where these
instruments are traded.
Their fair values
are estimated on an individual loan basis by discounting the future expected cash flows over the time period they are expected to
be
recovered, using an appropriate discount rate or by reference to other comparable assets of
the same type that have been
transacted
during
a
recent
time
period.
Expected
cash
flows,
which
incorporate
credit
risk,
represent
significant
unobservable
input
in
the
valuation and as such, the entire fair value
measurement is categorized as Level
3 in the fair value hierarchy.
Financial instruments not measured at fair value
The fair value hierarchy
categorization of the
Group’s financial assets
and liabilities not measured at fair
value on the balance sheet,
is presented in the following tables:
31 December 2024
Level 1
Level 2
Level 3
Fair value
Carrying
amount⁽¹⁾
€ million
€ million
€ million
€ million
€ million
Loans and advances to customers
-
-
51,923
51,923
50,934
Investment securities at amortised cost
12,716
3,237
1,313
17,267
17,651
Financial assets not measured at fair value
12,716
3,237
53,236
69,190
68,585
Debt securities in issue
5,371
351
1,588
7,310
7,056
Financial liabilities not measured at fair value
5,371
351
1,588
7,310
7,056
31 December 2023
Level 1
Level 2
Level 3
Fair value
Carrying
amount
€ million
€ million
€ million
€ million
€ million
Loans and advances to customers
-
-
41,888
41,888
41,530
Investment securities at amortised cost
7,191
1,948
1,323
10,462
10,955
Financial assets not measured at fair value
7,191
1,948
43,211
52,350
52,485
Debt securities in issue
2,540
1,626
554
4,720
4,756
Financial liabilities not measured at fair value
2,540
1,626
554
4,720
4,756
(1)
Provisional fair
value adjustments resulting
from the acquisition
of Hellenic Bank
(note 23.2), are
not reflected in
the carrying amount
of the acquired
financial
assets and liabilities.
The assumptions and methodologies underlying the calculation of fair values
of financial instruments not measured at fair value,
are
in line with those used to calculate the fair values for
financial instruments measured at fair value. Particularly:
(a)
Loans and advances to customers including
securitization notes of loan portfolios originated
by the Group: quoted market
prices
are not available as there are no active markets where these instruments are traded. The fair values are estimated by discounting
future expected
cash flows
over the
time period
they are
expected to
be recovered,
using appropriate
risk-adjusted
rates (i.e.,
discounted
expected
cash
flows
technique).
More
specifically,
loans
to
customers
are
grouped
into
homogenous
assets
with
similar
characteristics,
as
monitored
by
Management,
such
as
lending
business
unit,
products’
characteristics,
and
performing/nonperforming status, in
order to improve the
accuracy of the estimated
valuation outputs. In estimating
the future
cash flows of
lending portfolios, the
Group makes assumptions on
expected prepayments, products’ spreads over
risk-free interest
rates, where applicable. The discount
rates applied for the
discounting of loans’ expected
cash flows incorporate inputs that
would
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
be taken
into account by
independent market participants,
such as risk
-free interest
rates, expected
credit losses, cost
of equity
requirements and
funding. For credit
impaired-loans, the timing of
collateral realization
is taken into
account for the
estimation
of the future cash flows which are
discounted by non-credit risk adjusted
rates. In addition, the fair
value of securitization senior
notes of
loan portfolios
originated by
the Group
is estimated
by discounting
the expected
cash flows
using appropriate
market
interest rates of other
comparable assets with similar quality and duration;
(b)
Investment securities
measured at amortized
cost: the fair
values are determined
using prices quoted in
an active market
when
these are
available. In
other cases,
fair values
are determined
using quoted
market prices
for securities
with similar
credit risk,
maturity
and
yield,
quoted
market
prices
in
non
active
markets
for
identical
or
similar
financial
instruments,
or
by
using
the
discounted cash flows method. In addition, for certain high quality corporate bonds for which quoted prices are not available,
fair
value
is determined
using
prices that
are
derived
from
reliable data
management
platforms
while
part
of them
is verified
by
market
participants
(e.g. brokers).
In certain
cases, prices
are
implied by
liquidity agreements
(e.g. repos,
pledges) with
other
financial institutions; and
(c)
Debt securities in issue: the fair values are determined using quoted market prices,
if available. If quoted prices are not available,
fair values are determined based on third party
valuations, quotes for similar debt securities or by discounting the
expected cash
flows at a risk-adjusted rate, where the Group's own credit risk is
determined using inputs indirectly observable, i.e. quoted prices
of similar securities issued by the Group or other Greek issuers.
For other financial instruments, which are short term or re
-price at frequent intervals (cash and balances with central
banks, due
from credit
institutions, due
to central
banks, due
to credit
institutions and
due to
customers), the
carrying amounts
represent
reasonable approximations of fair values.
6.
Net interest income
2024
2023
€ million
€ million
Interest income
Customers
2,479
2,122
- measured at amortised cost
2,479
2,121
- measured at FVTPL
0
1
Banks and other assets⁽¹⁾
583
460
Securities
618
429
- measured at amortised cost
492
309
- measured at FVOCI
119
107
- measured at FVTPL
7
13
Derivatives (hedge accounting)
507
527
Derivatives (no hedge accounting)
909
916
5,096
4,454
Interest expense
Customers ⁽¹⁾
(655)
(435)
Banks ⁽¹⁾
(291)
(317)
Debt securities in issue ⁽¹⁾
(300)
(222)
Derivatives (hedge accounting)
(454)
(430)
Derivatives (no hedge accounting)
(886)
(873)
Lease liabilities - IFRS 16
(3)
(3)
(2,589)
(2,280)
Total from continuing
operations
2,507
2,174
(1)
Measured at amortized cost.
.
In 2024, the increase
in net interest income is primarily attributable to the
consolidation of Hellenic Bank group as
of the third quarter
2024 contributing € 295 million (notes 23.2 and 44), the higher average interest rates, the loan growth and the increased positions in
investment bonds partly offset by
higher debt issued and deposits cost.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Interest income recognized
by quality of Loans and Advances and Product Line is further analyzed
below:
31 December 2024
Interest income
on non-impaired
loans and
advances
Interest
income on
impaired loans
and advances
Total
€ million
€ million
€ million
Retail lending
1,007
36
1,043
Wholesale lending⁽¹⁾
1,408
28
1,436
Total interest
income from customers
2,415
64
2,479
31 December 2023
Interest income
on non-impaired
loans and
advances
Interest
income on
impaired loans
and advances
Total
€ million
€ million
€ million
Retail lending
854
33
888
Wholesale lending⁽¹⁾
1,193
41
1,234
Total interest
income from customers
2,048
74
2,122
(1)
Including interest income on loans and advances to Public Sector.
7.
Net banking fee and commission income
The
following
tables
include
net
banking
fees
and
commission
income
from
contracts
with
customers
in
the
scope
of
IFRS
15,
disaggregated by major type of services and operating
segments (note 44).
31 December 2024
Retail
Corporate
Global
Markets &
Asset Mngt
International
Other ⁽²⁾
Total
€ million
€ million
€ million
€ million
€ million
€ million
Lending related activities
7
120
33
25
1
186
Asset management ⁽¹⁾
22
2
50
15
3
92
Network activities and other ⁽³⁾
77
8
33
131
2
250
Capital markets
-
7
23
6
(2)
34
Total from continuing
operations ⁽⁴⁾
106
137
138
176
5
561
31 December 2023
Retail
Corporate
Global
Markets &
Asset Mngt
International
Other⁽²⁾
Total
€ million
€ million
€ million
€ million
€ million
€ million
Lending related activities
8
111
16
15
2
152
Asset management ⁽¹⁾
17
2
39
11
6
75
Network activities and other
⁽³⁾
62
7
31
90
3
193
Capital markets
-
7
16
6
(2)
27
Total from
continuing operations
87
127
102
122
9
447
(1)
It includes mutual funds, assets under management and bank assurance.
(2)
Includes “Remedial and Servicing Strategy” and “Other and elimination
center” segments.
(3)
Including income from credit cards related services.
(4)
It includes € 40 million referring to Hellenic Bank group, which was consolidated
as of the third quarter of 2024 (notes 23.2 and 44).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
8.
Income from non banking services
Income
from
non
banking
services
from
continuing
operations
includes
(a)
net
insurance
income
of
€
8.1
million,
following
the
consolidation of Hellenic Bank group as of the third quarter 2024 (note 23.2), (b) rental income of € 95.8 million (31 December 2023:
€ 95.5 million) from real estate properties and (c) income of € 1.1 million (31 December 2023: € 1.0 million) from IT services provided
by the Group entities.
The breakdown of the net insurance income is set out
below.
31 December 2024
Life
insurance
Non-Life
insurance
Total
€ million
€ million
€ million
Insurance revenue
11
22
33
Insurance service expenses
(5)
(19)
(24)
Insurance service result from insurance contracts issued
6
3
9
Allocation of reinsurance premiums
(4)
(10)
(14)
Amounts recoverable from reinsures
5
9
14
Net expense from reinsurance contracts held
1
(1)
(0)
Net insurance service result
7
2
9
Finance income/(expense) from
insurance/reinsurance contracts
(1)
(0)
(1)
Total
6
2
8
9.
Net trading income and gains less losses from investment securities
2024
2023
€ million
€ million
Net trading income/(loss)
Debt securities, including short positions
(3)
(24)
Derivative financial instruments
84
86
Equity securities⁽¹⁾
8
4
Revaluation on foreign exchange
positions
5
5
Total
94
71
Gains less losses from investment securities
Debt securities
2
38
- measured at FVOCI ⁽²⁾
13
57
- measured at AC⁽³⁾
(12)
(18)
- measured at FVTPL
1
(1)
Equity securities
11
19
Total from
continuing operations
13
57
(1)
Includes € 16 million loss relating to
derivatives on equity instruments which is presented
along with equity securities that hedge economically
(2023: € 22
million loss).
(2)
It includes termination fees from related derivatives in single hedging relationships
amounting to € 5 million income (2023: € 6 million income)
(3)
Mainly refers to the disinvestment of short-term sovereign debt securities (note 5.2.1.3).
In the comparative
year trading results
include € 23
million loss on
short positions on
debt instruments
entered into
the context
of
the Group's economic hedging strategies.
Gains from
derivative
financial instruments
of €
84 million
comprise mainly
a) €
6 million
loss resulting
from fair
value changes
of
derivatives
not designated
in hedge
accounting relationships
(31 December
2023: €
33 million
loss) and
b) €
88 million
gains from
portfolio hedging of interest
rate risk (macro hedging)
(31 December 2023: € 124 million gains), of which
€ 3 million gains arise from
hedge ineffectiveness
and €
85 million
gains from
fair value
changes of
the hedging
derivatives that
occur as
part of
the dynamic
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
management of the pool of hedging instruments on a monthly basis, and include fair value changes before initial designation or after
de-designation as well as realized gains of the
liquidated positions following de-designation (notes 2.2.3(i) and
19).
10.
Other income/ (expenses)
2024
2023
€ million
€ million
Gain/(loss) from change in fair value of investment
property (note 27)
17
6
Gain from acquisition/increase in shareholding of Hellenic Bank as an associate⁽¹⁾
99
111
Derecognition gain/(loss) on loans measured at
amortised cost (note 20)
5
3
Loss on loans' modifications and related adjustments
(97)
(49)
Fee expense related to the deferred
tax credits (note 13)
(5)
(6)
Dividend income
8
3
Gains/(losses) on loans at FVTPL
8
(0)
Gain on sale of real estate properties
12
3
Change in provisional fair value adjustments related to
the acquisition of Hellenic Bank
17
-
Other
(3)
(3)
Total from continuing
operations
61
68
(1)
Reflects the gain on initial application of equity accounting (2023) and the increase in ownership
interest in Hellenic Bank as an associate (note 24).
From the date of
acquisition of Hellenic
Bank till the
end of 2024,
the change in
provisional fair value adjustments from
the subsequent
measurement of the related assets and liabilities, amounted
to € 17 million income (note 23.2).
In the context of the
increased interest rates
environment, the Bank has
introduced since 2023 the probability
of prepayment on
its
floating rate
loans, focusing
on retail
portfolios
of long-term
loans that
are expected
to exhibit
higher,
than historically
observed,
prepayment
rates,
depending on
their particular
contractual
terms.
Accordingly,
for
performing retail
loans that
their contractual
interest rate
spread is scheduled to
increase (step-up) over the next
years, the Bank has assessed
that the combined increase
of the
reference interest
rates and
the pre-determined
client spreads,
increase the probability
of the borrowers’
prepaying or
refinancing
their loans at prevailing market rates
earlier than their contractual maturity.
The
Bank,
considering
the
current
and
expected
levels
of
the
reference
rates
as
well
as
the
prevailing
markets
rates
for
newly
originated loans, adjusts
the perimeter of
performing retail
loans that are likely
to be repaid
earlier and reassesses the
prepayment
probability
incorporated
in the
specific loans’
expected
cash flows,
adjusting
their gross
carrying amount
accordingly.
In the
year
ended
31
December
2024,
the
loss
resulting
from
the
extension
of
the
perimeter
of
the
said
loans
and
the
reassessment
of
the
prepayment probability,
which is included in “Loss on loans’ modification and related adjustments”,
amounted to ca. € 86 million (31
December 2023: € 35 million).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
11.
Operating expenses
2024
2023
€ million
€ million
Staff costs
(588)
(473)
Administrative expenses
(338)
(275)
Contributions to resolution and deposit guarantee
funds
(11)
(33)
Depreciation of real estate properties
and equipment
(47)
(42)
Depreciation of right of use assets
(37)
(37)
Amortisation of intangible assets
(51)
(41)
Contribution to the school renovations program
(27)
-
Contribution to restoration
initiatives after natural disasters
-
(14)
Total from
continuing operations ⁽¹⁾
(1,099)
(915)
(1)
It includes € 127 million referring to Hellenic Bank group, which was consolidated as of the third quarter of
2024 (notes 23.2 and 44).
In the context of
the systemic banks’ participation in
the Greek state’s school renovation program, the
Bank has recognised
a provision
of € 27 million in the fourth quarter of 2024.
Pursuant to the notification of the Hellenic
Deposit and Investment Guarantee Fund (HDIGF) received by the Bank in November 2023,
no
additional
contributions
were
recognized
for
the
Resolution
Scheme
of
the
HDIGF
for
the
year
ended
31
December
2024.
In
addition, according to the announcement of the
Single Resolution Board on 15 February
2024, no regular annual contributions were
collected in 2024 from the institutions falling within the scope of
the Single Resolution Fund.
In
the third
quarter
of 2023,
the Bank
recognized
a provision
of
€ 13.5
million
for
its contribution
to
the restoration
of damages
following the recent natural disasters in Greece. This is mainly relating to the destructive floods in Thessaly and the relevant initiative
of the four Greek
systemic banks,
in the context
of their corporate
social responsibility,
to contribute € 50
million to the restoration
effort,
which
will
be
allocated
and
provided
mostly
for
infrastructure,
in
collaboration
with
the
related
ministries,
the
local
administration and social and economic institutions
of the region.
Staff costs
2024
2023
€ million
€ million
Wages, salaries and performance remuneration
(446)
(355)
Social security costs
(62)
(52)
Additional pension and other post employment costs
(27)
(21)
Other
(53)
(45)
Total from
continuing operations
(588)
(473)
The
average
number
of
employees
during
the
year
was
11,810 (2023:
10,323
from
the
Group’s
continuing
operations).
As
at
31
December 2024, the number of branches and business/private banking
centers of the Group amounted to
568 (2023: 540).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
12.
Other impairments, risk provisions and restructuring costs
2024
2023
€ million
€ million
Impairment and valuation losses on real estate properties⁽¹⁾
(21)
(49)
Impairment losses on computer hardware and software (notes 26,
28)
(19)
(17)
Impairment (losses)/reversal on bonds
(12)
4
Other impairments, litigation and conduct-related
provisions and costs
(8)
(34)
Other impairments, risk provisions and related costs
(60)
(96)
Voluntary exit schemes and other related costs
(note 37)
(161)
(7)
Other restructuring costs
(7)
(30)
Restructuring costs
(168)
(37)
Total from continuing
operations⁽²⁾
(228)
(133)
(1)
For 2024, it includes € 9.4
million remeasurement/impairment loss
on real estate properties of IMO
Property Investments Bucuresti S.A., (note
30). For 2023,
it includes € 23 million remeasurement/impairment loss on real estate
properties of IMO Property Investments Sofia E.A.D,
which was disposed of during the
year (note 23.1).
(2)
It includes € 3 million referring to Hellenic Bank group, which was consolidated as of the third quarter of 2024 (notes 23.2 and 44).
For the
year ended
31 December
2024, an
amount
of ca.
€ 131
million, net
of the
discounting
effect,
has been
recognised
in the
Group’s income statement
for the cost of employee termination benefits in respect of the new Voluntary
Exit Scheme (VES) that was
launched by
the Group
in February
2024 for
eligible units
in Greece and
offered
mainly to
employees over
a specific age
limit. The
new VES is implemented through either lump-sum
payments or long term leaves during which they
will be receiving a percentage of
a monthly salary, or a
combination thereof. The
saving in personnel expenses is expected at
circa € 31 million on an annual basis
In the year
ended 31 December
2023, the Group
recognized €
30 million other
restructuring costs
of which €
10.6 million refers
to
the acquisition
of BNP
Paribas Personal
Finance Bulgaria
by Eurobank
Bulgaria A.D.,
while the
remaining costs
mainly relate
to the
Group’s transformation
projects and initiatives.
13.
Income tax
2024
2023
€ million
€ million
Current tax ⁽¹⁾
(141)
(83)
Deferred tax
(220)
(178)
Total income tax from
continuing operations
(361)
(261)
(1)
In the year ended 31 December 2024, following a favorable court decision, the Group has recognized a tax income of €
20 million for tax claims against the
Greek State.
According
to
Law
4172/2013
currently
in
force,
the
nominal
Greek
corporate
tax
rate
for
credit
institutions
that
fall
under
the
requirements
of article 27A
of Law
4172/2013 regarding
eligible deferred
tax assets
(DTAs)/deferred
tax credits
(DTCs) agains
t
the
Greek State is 29%.
The Greek corporate tax
rate for legal entities
other than the
aforementioned credit institutions is
22%. In addition,
the withholding tax rate for
dividends distributed, other than
intragroup dividends, is 5%.
In particular, the intragroup dividends under
certain preconditions are relieved from
both income and withholding tax.
The nominal corporate tax
rates applicable in the banking
subsidiaries incorporated in the
international segment of the Group
(note
44) are as follows: Bulgaria 10%, Cyprus 12.5%
and Luxembourg 24.94%.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Pillar Two income taxes
The Group is subject to the top
up tax under the Pillar Two
legislation that introduces a global minimum
effective tax rate
at 15% on
multinational entities with consolidated
revenues over € 750
million, effective as of 1
January 2024. The Pillar Two
effective tax rate
is lower than
15% in respect
of Group’s
operations in Bulgaria
and Cyprus, containing
the operations of
Eurobank Cyprus and
those
of Hellenic Bank group (note
44), mainly due to the
nominal corporate tax
rates (CIT) applying in
these jurisdictions (see above). For
the
year
ended
31
December
2024,
the
Group
has
recognized
a
current
tax
expense
of
€
21.6
million
related
to
the
top
up
tax
applicable on the profits earned in the aforementioned
jurisdictions.
The Group
has applied a
temporary mandatory
relief from
deferred
tax accounting
for the
impacts on the
top up
tax and
accounts
for it as a current tax when it is incurred.
Tax certificate
and open tax years
The Company and its subsidiaries, associates
and joint ventures, which operate
in Greece (notes 23 and 24) have
in principle up to 6
open tax years. For fiscal years starting from 1 January
2016 onwards, pursuant to the Tax Procedure Code, an ‘Annual Tax Certificate’
on an optional basis, is provided for the Greek entities, with annual financial statements audited compulsorily,
which is issued after a
tax audit is performed
by the same statutory auditor
or audit firm that audits the annual
financial statements. The Company
and, as
a general rule, the Group’s
Greek companies have opted to obtain
such certificate.
The Company’s
open tax years
are 2020-2024, while
the Bank’s
open tax years
are 2022-2024. The
tax certificates
of the Company,
the Bank and the other Group’s entities,
which operate in Greece, are unqualified for
their open tax years until 2023. In addition, for
the year ended 31 December 2024, the tax audits from external
auditors are in progress.
In accordance
with the
Greek tax
legislation and
the respective
Ministerial Decisions
issued, additional
taxes and
penalties may
be
imposed by
the Greek
tax authorities
following a
tax audit
within the applicable
statute
of limitations
(i.e. in principle
five years
as
from
the
end
of
the
fiscal
year
within
which
the
relevant
tax
return
should
have
been
submitted),
irrespective
of
whether
an
unqualified tax
certificate has
been obtained
from the
tax paying
company.
In light of
the above,
as a general
rule, the
right of the
Greek State
to impose taxes
up to tax
year 2018 (included)
has been time-barred
for the Group’s
Greek entities
as at 31
December
2024.
The open tax years of the foreign banking entities of the Group are as follows: (a) Eurobank Cyprus Ltd, 2018-2024 (a tax audit for tax
years
2018-2020
is
in
progress),
(b)
Hellenic
Bank
Public
Company
Limited,
2016-2024
(a
tax
audit
for
tax
years
2016-2022
is
in
progress),
(c) Eurobank Bulgaria
A.D., 2019-2024 and
(d) Eurobank Private
Bank Luxembourg S.A.,2020-2024.
The remaining foreign
entities of the Group (notes 23 and 24), which operate
in countries where a statutory
tax audit is explicitly stipulated by
law, have
in
principle up to 6 open tax years, subject to
certain preconditions of the applicable tax legislation of
each jurisdiction.
In reference
to its total
uncertain tax
positions, the Group
assesses all relevant
developments (e.g. legislative
changes, case
law,
ad
hoc tax/legal opinions, administrative
practices) and raises adequate provisions.
Deferred tax
Deferred tax
is calculated
on all deductible
temporary differences
under the
liability method as
well as for
unused tax losses
at the
rate in effect at
the time the reversal is expected to take
place.
The net deferred tax is analyzed
as follows:
2024
2023
€ million
€ million
Deferred tax assets
3,780
3,991
Deferred tax liabilities
(43)
(28)
Net deferred tax
3,737
3,963
The movement on deferred tax
is as follows:
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
2024
2023
€ million
€ million
Balance at 1 January
3,963
4,130
Arising from acquisition⁽¹⁾
(14)
-
Income statement credit/(charge) from
continuing operations
(220)
(178)
Investment securities at FVOCI
2
(8)
Cash flow hedges
0
1
Actuarial gains/(losses)
1
1
Discontinued operations (note 30)
3
17
Other
2
(0)
Balance at 31 December
3,737
3,963
(1)
it mainly includes deferred tax liability upon acquisition of Hellenic Bank group (note 23.2).
Deferred income tax (charge)/credit
from continuing operations is attributable
to the following items:
2024
2023
€ million
€ million
Impairment/ valuation relating to loans, disposals and write-offs
(251)
(213)
Tax deductible PSI+ losses
(50)
(50)
Carried forward debit difference of law 4831/2021
111
39
Change in fair value and other temporary differences
(30)
46
Deferred income tax (charge)/credit
from continuing operations
(220)
(178)
Deferred tax assets/(liabilities) are
attributable to the following items:
2024
2023
€ million
€ million
Impairment/ valuation relating to loans and accounting write-offs
803
940
PSI+ tax related losses
851
901
Losses from disposals and crystallized write-offs of loans
1,998
2,120
Carried forward debit difference of law 4831/2021
150
39
Other impairments/ valuations through the income statement
(94)
(49)
Cash flow hedges
6
6
SLSRI and employee termination benefits⁽²⁾
40
17
Real estate properties, equipment and intangible assets
(122)
(97)
Investment securities at FVOCI
(21)
(23)
Other⁽¹⁾⁽²⁾
126
109
Net deferred tax
3,737
3,963
(1)
It includes, among others, DTA on deductible temporary differences relating to operational risk provisions and the leasing operations.
(2)
DTA attributable to employee termination benefits (mainly referring to the new VES, note 12), previously included in line “Other”, has been presented along
with DTA on SLSRI. Comparative information has been adjusted accordingly.
Further information, in relation to
the aforementioned categories of deferred
tax assets as at 31 December 2024, is as follows:
(a)
€
803
million
refer
to
deductible
temporary
differences
arising
from
impairment/valuation
relating
to
loans
including
the
accounting debt write-offs
according to the Greek
tax law 4172/2013, as
in force. These temporary
differences can be utilized
in
future periods with no specified time limit and according to current
tax legislation of each jurisdiction;
(b) €
851 million
refer to
losses resulted
from the
Group’s
participation in
PSI+ and the
Greek’s
state debt
buyback program
which
are subject to amortization for tax purposes over a thirty-year period, i.e. 1/30 of
losses per year starting from year 2012 onwards
(see below – DTCs section);
(c) € 1,998 million refer to the unamortized part of the crystallized tax
losses arising from write-offs and disposals of loans, which are
subject to amortization over a twenty
-year period;
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Assessment of the recoverability of deferred
tax assets
The recognition
of the deferred
tax assets
is based on
management’s assessment
that the Group’s
legal entities will
have sufficient
future taxable profits, against which the deductible temporary differences and the unused tax losses can be utilized. The deferred tax
assets
are
determined
on
the
basis
of
the
tax
treatment
of
each
deferred
tax
asset
category,
as
provided
by
the
applicable
tax
legislation of each jurisdiction
and the eligibility of
carried forward
losses for offsetting
with future taxable
profits. Additionally,
the
Group’s
assessment
on
the
recoverability
of
recognized
deferred
tax
assets
is
based
on
(a)
the
future
performance
expectations
(projections
of
operating
results)
and
growth
opportunities
relevant
for
determining
the
expected
future
taxable
profits,
(b)
the
expected timing of reversal of the
deductible and taxable temporary
differences, (c) the probability
that the Group entities will have
sufficient taxable
profits in the
future, in the
same period as
the reversal
of the deductible
and taxable
temporary differences
or in
the years into which the tax losses can be carried forward, and (d) the historical levels of Group entities’ performance in combination
with the previous years’ tax losses caused
by one off or non-recurring events.
In particular,
for the year
ended 31 December
2024, the deferred
tax asset (DTA)
recoverability assessment
has been based on
the
three-year
Business Plan
that was
approved
by the
Board of
Directors
in January
2025, for
the period
up to
the end
of 2027
(also
submitted to
the Single Supervisory
Mechanism -SSM-). For
the years
beyond 2027,
the forecast
of operating
results was
based on
the management projections considering the growth opportunities
of the Greek and European economy,
the banking sector and the
Group
itself.
Specifically,
the
management
projections
for
the
Group’s
future
profitability
adopted
in
the
Business
Plan,
have
considered, among others, (a) the gradual decrease of interest rates
,
starting from 2024, (b) the sustainable increase in loan volumes
with pressure in business lending spreads and
the growth, at a relatively lower pace, of
customer deposits with gradually lower
betas,
(c) the increase in fee and commission income mostly
driven by assets under management, and network
activities,
(d) the discipline
to operating
expenses’ targets
, (e)
the further
decrease of
NPE ratio,
(f) the resilient
asset quality
with lower
cost of
risk, which
is
expected
to
carry the
effect
from the
improved
macroeconomic outlook
driven by
the resilient
growth
of Greek
economy,
above
European
average,
as well
as the
unemployment
rate
at single
digit levels,
close to
historical
lows and
(g) the
fulfilment of
MREL
targets
throughout
the plan
period. The
major initiatives
introduced
in the
context
of the
Group’s
transformation
plan “Eurobank
2030”, will contribute
to meeting its financial objectives.
The Group
closely monitors
and constantly
assesses the
developments
on the
macroeconomic and
geopolitical front
(note 2)
and
their potential
effect on
the achievement
of its Business
Plan targets
in terms of
asset quality and
profitability and
will continue
to
update its estimates accordingly.
Deferred tax credit against the
Greek State and tax regime for
loan losses
As at 31 December
2024, pursuant to the Law 4172/2013, as in force, the Bank’s eligible DTAs/deferred tax credits (DTCs) against the
Greek State
amounted to
€ 3,022 million (31
December 2023: €
3,212 million). The
DTCs are
accounted for
on: (a) the unamortised
losses from the Private
Sector Involvement (PSI)
and the Greek State Debt
Buyback Program, which are subject to
amortisation over
a thirty-year
period and
(b) on the
sum of (i)
the unamortized
part of the
DTC eligible
crystallized tax
losses arising
from write-offs
and disposals
of loans, which
are subject
to amortization
over a
twenty-year period,
(ii) the accounting
debt write-offs
and (iii) the
remaining
accumulated
provisions
and
other
losses
in
general
due
to
credit
risk
recorded
up
to
30
June
2015.
The
DTCs
will
be
converted into directly enforceable claims (tax credit) against
the Greek State provided that the Bank’s after tax accounting
result for
the year is a loss.
According
to
the
Law
4831/2021
(article
125),
which
amended
Law
4172/2013,
the
amortization
of
the
PSI
tax
related
losses
is
deducted from
the taxable
income at a
priority over
that of the
crystallized tax
losses (debit difference)
arising from
write-offs and
disposals of loans. In addition, the amount of the annual tax amortization of the above crystallized tax losses is limited to the amount
of the
annual taxable
profits, calculated
before the
deduction of
such losses
and following
the annual
tax deduction
of the
PSI tax
related losses. The
unutilized part of the
annual tax amortization
of the crystallized
loan losses can be carried
forward for
offsetting
over a period of 20
years. If at the end
of the 20-year utilization period, there are balances
that have not been offset, these will
qualify
as
a tax
loss, which
is subject
to
the
5-year
statute
of
limitation.
The above
provisions
apply
as
of
1 January
2021 and
cover
the
crystallized tax losses that
have arisen from write-offs and disposals of
loans as of 1 January 2016 onwards.
Taking
into
account
the
tax
regime
in
force,
the
recovery
of
the
Bank’s
deferred
tax
asset
recorded
on
loans
and
advances
to
customers
and
the
regulatory
capital
structure
are
further
safeguarded,
contributing
substantially
to
the
achievement
of
NPE
management targets through
write-offs and disposals, in line with the regulatory framework
and SSM requirements.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
According to tax Law 4172/2013 as in
force, an annual fee of 1.5% is
imposed on the excess amount of
deferred tax assets guaranteed
by the Greek
State, stemming
from the difference
between the current
tax rate
for the eligible
credit institutions
(i.e. 29%) and
the
tax rate applicable on 30 June 2015 (i.e. 26%). For the year ended
31 December 2024, an amount of €
5.2 million has been recognized
in “Other income/(expenses) (31 December 2023: € 5.6 million).
Income tax reconciliation and unused tax losses
The tax on the
Group's profit before
tax differs
from the theoretical
amount that would
arise using the Bank’s
applicable tax rate
of
29% as follows:
2024
2023
€ million
€ million
Profit before tax
1,872
1,542
Tax at the applicable tax
rate
(543)
(447)
Tax effect
of:
- income not subject to tax and non deductible expenses
(16)
5
- effect of different tax rates
in different countries
134
70
- Share of results of associates/joint ventures and related income
76
58
- Tax deductible losses for which DTA
had not been recognised
18
63
- Pillar Two income taxes
(22)
-
- other
(8)
(10)
Total income tax from
continuing operations
(361)
(261)
For the year ended 31 December 2024, the Group’s
effective tax rate
reached 19% (2023: 17%).
As at 31 December
2024, the Company
and the Bank have
not recognised deferred
tax asset (DTA)
on unused tax losses
amounting
to € 362 million (2023: € 421
million). The analysis of unrecognized
DTA on
unused tax losses of the Company
and the Bank per year
of maturity of related tax losses is presented
in the table below:
Unrecognized
DTA
€ million
Year of maturity of unused tax losses
2025
347
2026
12
2027
1
2028
2
2029
1
Total
362
14.
Earnings per share
Basic earnings
per share,
in principle, is
calculated by
dividing the
net profit
attributable to
ordinary shareholders
by the
weighted
average number of ordinary shares in issue
during the year, excluding the average number of ordinary shares purchased by the Group
and held as treasury shares.
The diluted earnings
per share, in principle,
is calculated by
adjusting the weighted
average number
of ordinary shares
outstanding
to
assume
conversion
of
all
dilutive
potential
ordinary
shares
during
the
period.
As
at
31
December
2024,
the
Group’s
dilutive
potential
ordinary
shares
relate
to
the
share
options
that
were
allocated
to
employees
of
Eurobank
Holdings
and
its
affiliated
companies (note 40). The
weighted average
number of shares is adjusted
for the share
options by calculating the
weighted average
number of shares
that could have
been acquired at
fair value (determined
as the average
market price of
the Company's shares
for
the period). The number of shares resulting from
the above calculation is added to the weighted
average number of ordinary
shares
in issue in
order to determine
the weighted
average number
of ordinary shares
used for the
calculation of the
diluted earnings per
share.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Year ended 31 December
2024
2023
Net profit for the year attributable to ordinary shareholders
€ million
1,448
1,140
Net profit for the year from continuing operations attributable
to ordinary
shareholders
€ million
1,455
1,281
Weighted average number of ordinary
shares used for
basic earnings per share
Number of shares
3,665,235,475
3,698,802,084
Weighted average number of ordinary
shares used for diluted earnings per
share
Number of shares
3,682,680,282
3,713,688,124
Earnings per share
- Basic earnings per share
€
0.40
0.31
- Diluted earnings per share
€
0.39
0.31
Earnings per share from continuing operations
- Basic and diluted earnings per share
€
0.40
0.34
Basic and
diluted losses
per share
from discontinued
operations for
the year
ended 31
December 2024
amounted to
€ 0.0019
(31
December 2023: € 0.04 losses).
15.
Cash and balances with central banks
2024
2023
€ million
€ million
Cash in hand
617
502
Balances with central banks
15,514
10,441
Total
16,131
10,943
The
Bank
and
its
banking
subsidiaries
in
Eurozone
(Cyprus
and
Luxemburg),
are
required
to
hold
a
minimum
level
of
deposits
(minimum reserve requirement
- MRR) with their national
central bank on an
average basis
over maintenance periods
(i.e. six week
periods);
these deposits
are
calculated
as 1%
of certain
liabilities, mainly
customers’
deposits, and
can be
withdrawn
at any
time
provided that the MRR is met over the determined period of time. Similar obligations for the maintenance of minimum reserves with
its national central bank are also applied to the banking subsidiary in
Bulgaria. As at 31 December 2024, the mandatory reserves (i.e.
those that
the Group
entities maintain
in order
to meet
the MRR)
with central
banks amounted
to €
1,652 million
(2023: €
1,096
million). MRR
deposits placed
to the
European Central
Bank (ECB)
were remunerated
at the
ECB’s
deposit facility
rate
(DFR) until
September 2023 and at zero (0%) thereafter.
.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
16.
Cash and cash equivalents and other information on cash flow statement
For the
purpose of
the cash
flow statement,
cash and
cash equivalents
comprise the
following balances
with original
maturities of
three months or less:
2024
2023
€ million
€ million
Cash and balances with central banks (excluding mandatory and collateral
deposits with
central banks) (note 15)
14,479
9,847
Due from credit institutions
1,398
998
Securities held for trading
31
0
Total
15,908
10,845
Other (income)/losses on investment securities presented
in continuing operating activities are analyzed
as follows:
2024
2023
€ million
€ million
Amortisation of premiums/discounts and accrued interest
(102)
(10)
(Gains)/losses from investment securities
(13)
(57)
Dividends
(8)
(3)
Total
(123)
(70)
In the year
ended 31 December
2024, other adjustments
of € 253
million mainly include
a) € 99
million gain on
acquisition of additional
holding in Hellenic Bank (note 23.2) and b) € 161 million Group’s
share of results (income) in associates and
joint ventures (note 24),
(31 December
2023: € 153
million mainly include
€ 111 million
gain on
investment
in Hellenic Bank
accounted for
as an associate,
note 24).
Changes in liabilities arising from financing activities
During the year ended
31 December 2024,
changes in the Group’s liabilities arising
from financing activities, other
than lease liabilities
(note 42),
are attributable
to: a) debt
issuance amounting
to € 2,649
million (2023: €
1,078 million) (net
of issuance costs),
b) debt
repayment amounting to € 789 million (2023: €
30 million) and c) accrued
interest and amortisation of debt issuance costs amounting
to € 1.4 million (2023: € 51.3 million).
17.
Due from credit institutions
2024
2023
€ million
€ million
Pledged deposits with banks⁽¹⁾
580
1,036
Placements and other receivables from banks⁽¹⁾
1,112
970
Current accounts and settlement balances with banks
504
348
Total
2,196
2,354
(1)
The amounts presented are after offsetting (note 5.2.1.4).
As at 31 December 2024, the Group’s
pledged deposits with banks include: a) € 543 million mainly
cash collaterals on risk mitigation
contracts for derivative transactions and repurchase agreements (CSAs, GMRAs) and b) € 37 million
cash collateral relating to the sale
of former Romanian subsidiaries.
The
Group's
exposure
arising
from
credit
institutions,
as
categorized
by
counterparty's
geographical
region,
is
presented
in
the
following table:
2024
2023
€ million
€ million
Greece
14
59
Other European countries
1,874
2,139
Other countries
307
156
Total
2,196
2,354
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
18.
Securities held for trading
2024
2023
€ million
€ million
Debt securities (note 5.2.1.3)
186
245
Equity securities
99
134
Total
285
379
19.
Derivative financial instruments and hedge accounting
The Group uses derivative financial instruments
both for hedging and non-hedging purposes.
The table below presents the fair values of the Group’s derivative financial instruments by product type and hedge relationship along
with
their
notional
amounts.
The
notional
amounts
of
derivative
instruments
provide
a
basis
for
comparison
with
instruments
recognized on
the balance sheet
but do not
necessarily indicate the
amounts of future
cash flows involved
or the current
fair value
of the instruments and, therefore, are
not indicative of the Group’s
exposure at the reporting date.
31 December 2024
31 December 2023
Contract /
notional
amount
Fair values
Contract /
notional
amount
Fair values
Assets
Liabilities
Assets
Liabilities
€ million
€ million
€ million
€ million
€ million
€ million
Derivatives for which hedge accounting is not
applied/ held for trading
- Interest rate swaps
34,439
1,096
937
33,909
1,215
1,059
- Interest rate options ⁽¹⁾
8,265
45
47
9,268
69
71
- Foreign exchange contracts ⁽²⁾
4,700
54
26
3,468
21
26
- Other
⁽³⁾
893
3
14
462
5
40
1,199
1,025
1,310
1,196
Derivatives designated as fair value hedges
- Interest rate swaps
12,171
244
442
8,221
308
452
- Interest rate swaps/portfolio hedging ⁽⁴⁾
7,800
6
2
6,642
15
94
- Interest rate floors
5,759
-
33
6,447
-
53
- Bond Forwards
55
1
-
-
-
-
251
477
323
599
Derivatives designated as cash flow hedges
- Cross currency interest
rate swaps
819
7
38
1,579
-
147
7
38
-
147
Offsetting (note 5.2.1.4)
- Interest rate swaps
(619)
(420)
(752)
(492)
Total derivatives assets/liabilities
838
1,120
881
1,450
(1)
Interest rate options include interest rate caps and floors and swaptions.
(2)
It includes currency swaps, forwards and options
(3)
It includes credit default swaps, warrants, commodity derivatives, futures and exchange traded equity options.
(4)
It includes deals that are transacted for macro hedging during the reporting
month and will be included in the pool of hedging instruments at the end of the
month.
Information on the fair value measurement
and offsetting of derivatives is provided
in notes 5.3 and 5.2.1.4, respectively.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The
Group
uses
certain
derivatives
and
other
financial
instruments,
designated
in
a
qualifying
hedge
relationship,
to
reduce
its
exposure to market
risks. The hedging practices
applied by the Group,
as well as the
relevant accounting
treatment are disclosed
in
note 2.2.3. In particular:
(a) Fair value hedges
The Group
hedges a
portion of
its existing
interest
rate risk
resulting from
any potential
change in
the fair
value of
fixed rate
debt
securities, held
or issued,
or fixed
rate loans,
denominated both
in local
and foreign
currencies, using
interest rate
swaps whereby
the fixed
legs represent
the economic
risks of
the hedged
items. The
Group uses
pay fixed/receive
floating interest
rate
swaps to
hedge its fixed rate debt
securities held and loans and pay floating/receive fixed interest
rate swaps to hedge its
fixed rate liabilities.
The Group
also hedges
the changes
in the
fair value
of debt
securities to
be disposed
in the
future under
forward
transactions. In
2024,
the
Group
recognized
a loss
of
€ 34
million
(2023: €
175 million
loss)
from
changes
in the
carrying
amount
of the
hedging
instruments and
€ 27 million
gain (2023:
€ 173 million
gain) from
changes in
the fair
value of the
hedged items
attributable to
the
hedged risk. The amount
of hedge ineffectiveness
recognized for
2024 in “Net trading
income/(loss)” was € 7
million loss (2023: € 2
million loss).
(b) Fair value hedges – portfolios of assets
and liabilities
The Group hedges a portion of its existing interest rate risk resulting from any potential
change in the fair value of a portfolio of fixed
rate loans including securitization notes initially issued
and subsequently held by
the Group (macro-hedging), using a
group of interest
rate
swaps. The
Group
primarily designates
the change
in fair
value attributable
to changes
in the
benchmark interest
rate as
the
hedged risk including
also assumptions for
prepayment risk and,
accordingly,
enters into
interest rate
swaps whereby
the fixed legs
represent the economic risks of the hedged items. In 2024, the Group recognized a gain of €
20 million (2023: € 139 million loss)
from
changes in the
carrying amount of
the hedging instruments
and € 18
million loss (2023:
€ 145 million
gain)
from changes in
the fair
value of the
designated hedged
items attributable
to the hedged
risk. Accordingly,
the amount of
hedge ineffectiveness
recognized
for 2024 in “Net trading income/(loss)” was
€ 2 million gain (2023:
€ 6 million gain).
The Group
also hedges the
variability deriving
from the fair
value changes of
purchased interest
rate floors
embedded in portfolios
of floating
rate
loans and
debt securities
by writing
the floors
in the
market.
In 2024,
the Group
recognized
a gain
of €
15 million
(2023: € 45 ths gain) from changes in the carrying amount of the hedging instruments, and € 15 million loss (2023: € 45
ths loss) from
changes in the fair value of the hedged items attributable
to the hedged risk.
Finally,
similar to
portfolio
hedging of
interest
rate
risk for
assets, the
Group
hedges part
of its
interest
rate
exposure
of demand
deposit portfolios attributable
to changes in the benchmark interest
rates (macro-hedging). Despite
their contractual terms and due
to their nature,
part of the demand deposits
are interest
rate-insensitive and
hence behave similarly to
fixed interest
rate liabilities.
Accordingly, the Group enters into a group of interest rate swaps that receives fixed interest rate and pays floating interest rate based
on the benchmark rate
and its volume is re-assessed on a
monthly basis. In 2024, the Group recognized
a loss of € 1 million (2023: €
7 million
loss) from
changes in
the carrying
amount of
the hedging
instruments
and €
2 million
gain (2023:
€ 5
million gain)
from
changes
in
the
fair
value
of
the
designated
hedged
items
attributable
to
the
hedged
risk.
Accordingly,
the
amount
of
hedge
ineffectiveness recognized
for 2024 in “Net trading income/(loss)” was
€ 1 million gain (2023: € 2 million loss).
(c) Cash flow hedges
The Group hedges
a portion of
its existing interest rate and
foreign currency risk resulting
from any cash flow
variability due to
changes
in market interest
rates on floating rate
loans, denominated in foreign currency,
using cross currency interest
rate swaps, where
the
variable legs are based
on the benchmark rates
of the hedged items. The
interest rate
risk with respect to the
benchmark reference
rate -
swap curve
of such items,
which share the
same benchmark interest
rate risk
may be hedged
on a single
item or group
basis
using interest rate
swaps of similar maturity.
For the year ended 31 December 2024, an amount
of € 1 million loss was recognised in
other comprehensive income in relation to derivatives
designated as cash flow hedges (2023: € 3 million loss). Furthermore, in 2024,
the ineffectiveness recognized
in the income statement that
arose from cash flow hedges was nil (2023: nil).
In addition, the Group
uses other derivatives,
not designated in a
qualifying hedge relationship,
to manage its exposure
primarily to
interest rate and foreign currency risks. Non
qualifying hedges are derivatives entered into
as economic hedges of
assets and liabilities
for which hedge accounting
was not applied. The said derivative
instruments are monitored
and have been classified for
accounting
purposes along with those held for trading.
The
fair
value
of
Group's
derivative
financial
assets,
as
categorized
by
counterparty's
geographical
region
and
industry
sector,
is
presented in the following tables:
Notes to the Consolidated Financial Statements
.
115
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31 December 2024 Consolidated Financial Statements
31 December 2024
Greece
Other
European
countries
Other
countries
Total
€ million
€ million
€ million
€ million
Sovereign
167
-
-
167
Banks
5
235
310
550
Corporate
113
6
2
121
Total
285
241
312
838
31 December 2023
Greece
Other
European
countries
Other
countries
Total
€ million
€ million
€ million
€ million
Sovereign
227
-
-
227
Banks
12
228
335
575
Corporate
72
7
-
79
Total
311
235
335
881
As at 31 December 2024,
the net carrying value
of the derivatives with
the Hellenic Republic amounted
to a liability of €
233 million
(31 December 2023: € 260 million liability).
At 31 December 2024 and 2023,
the maturity profile of the nominal amount
of the financial instruments designated
by the Group in
hedging relationships is presented in the tables
below:
31 December 2024
Fair Value Hedges
Cash Flow Hedges
1 - 3
months
3 - 12
months
1-5 years
Over 5
years
Total
1 - 3
months
3 - 12
months
1-5 years
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Interest rate swaps⁽¹⁾
-
90
6,721
5,361
12,171
-
-
-
-
Interest rate options
-
-
800
4,847
5,647
-
-
-
-
Cross currency interest rate
swaps
-
-
112
-
112
-
618
201
819
Bond Forwards
55
-
-
-
55
-
-
-
-
Total
55
90
7,633
10,208
17,985
-
618
201
819
31 December 2023
Fair Value Hedges
Cash Flow Hedges
1 - 3
months
3 - 12
months
1-5 years
Over 5
years
Total
1 - 3
months
3 - 12
months
1-5 years
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Interest rate swaps⁽¹⁾
500
16
4,285
3,420
8,221
-
-
-
-
Interest rate options
-
-
800
5,647
6,447
-
-
-
-
Cross currency interest
rate swaps
-
-
-
-
-
175
602
802
1,579
Total
500
16
5,085
9,067
14,668
175
602
802
1,579
(1)
Nominal amount
of interest rate swaps designated as fair value macro hedges is not included.
Notes to the Consolidated Financial Statements
.
116
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31 December 2024 Consolidated Financial Statements
(a) Fair value hedges
The following
tables present
data relating
to the hedged
items under fair
value hedges
for the years
ended 31 December
2024 and
2023:
2024
Carrying
amount/Exposure
designated as
hedged
Accumulated
amount of FV
hedge
adjustments
related to the
hedged item
Change in value as
the basis for
recognising hedge
ineffectiveness
€ million
€ million
€ million
Assets
Loans and advances to customers⁽¹⁾
6,939
(46)
(16)
Debt securities AC⁽¹⁾
5,568
195
41
Debt securities FVOCI
1,736
(26)
30
Liabilities
Debt securities in issue
5,864
47
61
Due to customers⁽¹⁾
4,700
(9)
(2)
2023
Carrying amount/
Exposure
designated as
hedged
Accumulated
amount of FV
hedge adjustments
related to the
hedged item
Change in value as
the basis for
recognising hedge
ineffectiveness
€ million
€ million
€ million
Assets
Loans and advances to customers⁽¹⁾
9,184
69
172
Debt securities AC⁽¹⁾
4,474
154
163
Debt securities FVOCI
1,027
(54)
88
Liabilities
Debt securities in issue
3,812
(15)
105
Due to customers⁽¹⁾
1,628
20
(5)
(1)
For loans
and advances
to customers
hedges,
debt securities
at amortised
cost included
in portfolio
hedges and
due to
customers hedges,
the exposure
designated as hedged is presented.
At 31 December
2024, the accumulated
amounts
of fair value
hedge adjustments
remaining in the balance
sheet for any
items that
have ceased to be adjusted for
hedging gains and losses were € 218 million assets for
debt securities held at AC, € 2 million liabilities
for debt issued and € 28 million liabilities for adjustments related to debt securities held at FVOCI (2023: € 253 million assets for debt
securities held
at
AC,
€ 3
million liabilities
for
debt
issued and
€ 44
million liabilities
for
adjustments
related
to
debt securities
at
FVOCI). The
respective
fair
value hedge
adjustments
relating
to
macro-hedging, amounted
to
€ 8
million gain
for
loans (including
securitization notes)
and € 5 million gain for deposits (2023 : € 57 million loss and € 25 million gains, respectively).
(b) Cash flow hedges
The cash flow hedge reserves
for continuing hedges as at
31 December 2024 were € 0.5 million
loss (2023: € 0.7 million gain), which
relate to loans and advances to customers.
As at 31 December 2024, the
balances remaining in the cash
flow hedge reserve from
any cash flow hedging
relationships for which
hedge accounting is no longer applied was € 20 million loss (2023: € 20 million loss).
The reconciliation of the components of Group’s
special reserves including cash flow hedges is provided in note 39.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
20.
Loans and advances to customers
2024
2023
€ million
€ million
Loans and advances to customers at amortised cost
- Gross carrying amount
52,245
42,773
- Impairment allowance
(1,309)
(1,258)
Carrying Amount
50,936
41,515
Fair value changes of loans in portfolio hedging of interest rate
risk
(3)
15
Loans and advances to customers at FVTPL
19
15
Total
50,953
41,545
The table below presents the carrying amount of loans and advances to customers
per product line and per stage as at 31 December
2024:
31 December 2024
31 December 2023
12-month ECL-
Stage 1
Lifetime
ECL-
Stage 2
Lifetime ECL -
Stage 3
POCI⁽¹⁾
Total amount
Total amount
€ million
€ million
€ million
€ million
€ million
€ million
Loans and advances to customers at
amortised cost
Mortgage lending:
- Gross carrying amount
9,249
2,706
359
151
12,466
9,942
- Impairment allowance
(64)
(218)
(177)
(10)
(469)
(382)
Carrying Amount
9,185
2,489
182
141
11,997
9,560
Consumer lending:
- Gross carrying amount
3,831
392
157
153
4,533
3,436
- Impairment allowance
(51)
(48)
(114)
(11)
(223)
(210)
Carrying Amount
3,780
344
43
142
4,310
3,225
Small Business lending:
- Gross carrying amount
2,663
635
261
24
3,583
3,484
- Impairment allowance
(17)
(50)
(126)
(1)
(194)
(219)
Carrying Amount
2,645
585
135
23
3,389
3,265
Wholesale lending:⁽²⁾⁽³⁾
- Gross carrying amount
29,717
1,184
672
90
31,663
25,912
- Impairment allowance
(58)
(39)
(321)
(4)
(422)
(447)
Carrying Amount
29,659
1,145
351
86
31,241
25,465
Total loans and advances to customers at
AC
- Gross carrying amount , of which:
45,460
4,917
1,449
419
52,245
42,773
Non Performing exposures (NPE)
-
-
1,449
269
1,719
1,512
- Impairment allowance
(191)
(354)
(738)
(27)
(1,309)
(1,258)
Carrying Amount
45,270
4,563
711
392
50,936
41,515
Fair value changes of loans in portfolio
hedging of interest rate risk
(3)
15
Loans and advances to customers at FVTPL
Carrying Amount⁽⁴⁾
19
15
Total
50,953
41,545
(1)
Following the acquisition of Hellenic Bank (note 23.2), loans with a
carrying amount of € 0.4 billion as of 30
June 2024 have been added to the Group POCI
loans.
(2)
Includes € 4,368 million
related to the notes of
securitizations of loans
originated by Group entities
measured at amortised cost,
which have been categorized
in Stage 1.
(3)
Includes loans to public sector.
(4)
Includes the mezzanine notes of securitizations of loans originated by the Bank.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
As at 31 December
2024, the Group’s
NPE stock amounting
to € 1,530 million
excluding Hellenic
Bank loans of
€ 0.2 billion covered
by the Asset
Protection Scheme (APS) agreement
in Cyprus. The Group
NPE ratio, excluding
the NPE covered
by the APS, decreased
to 2.9% (31 December 2023: 3.5%), while the NPE coverage
ratio improved
to 88.4% (31 December 2023: 86.4%). With the inclusion
of
the
above
NPE
covered
by
the
APS,
the
Group
NPE
ratio
and
the
NPE
coverage
ratio
would
be
3.3%
and
79.8%
respectively.
According to the Group’s
business plan for the period 2025-2027, the Group NPE ratio
will be decreased further to ca 2.5% in 2027.
Sustainability linked loans
In
line
with
its
Sustainable
Finance
Framework,
the
Group
grants
loans,
which
as
part
of
their contractual
terms,
incentivize
the
borrower’s
achievement
of
predetermined
sustainability
performance
targets
(SPTs).
Specifically,
these
SPTs
consist
of
a
list
of
environmental
(E), social (S), and
governance (G) targets,
the fulfillment of
which by the
client is determined
by meeting respective
KPIs, i.e.,
metrics to
quantify the
client’s
performance,
for
example
climate-related
targets,
such as
reducing
carbon
emissions or
social targets, such as increasing the level of diversity at Board level. As part of the terms of these loans, the contractual
interest rate
is increased if the borrower fails to meet
specific targets linked to its
activity.
The abovementioned
loans held
as of 31
December 2024 have
been assessed,
in line with
the Group’s
accounting policies
(note 2)
that their contractual cash flows are
SPPI pass.
As at
31 December
2024, the
carrying amount
of the
sustainability linked
loans measured
at amortized
cost amounted
to €
1,024
million (2023: € 354 million).
Project “Solar”
In
the
context
of
its
NPE
management
strategy,
the
Group
has
been
structuring
another
NPE
securitization
transaction
(project
‘Solar’), as part of a
joint initiative with
the other Greek
systemic banks
(the Banks) since
2018.Out of the
notes to be
issued by the
SPV,
the
Banks
will hold
100%
of
the
Senior
notes
as
well
as
the
5%
of
the
Mezzanine
and
Junior
notes,
and will
dispose
of
the
remaining stake of the subordinated tranches.
In June 2024, the Banks submitted to the Greek Ministry of Finance a joint application
for the inclusion of the senior notes to be issued in the Hellenic Asset Protection
Scheme.
Since June 2022,
the Group classified
the underlying corporate loan
portfolio as held
for sale, while
the remeasurement of its
expected
credit losses, in
accordance with the
Group’s
accounting policy for
the impairment of
financial assets, resulted
in the recognition
of
impairment loss of € 12 million in the fourth quarter of 2023. The aforementioned impairment loss is determined by reference to the
estimated fair
value of the
notes to be
retained by
the Group, upon
the completion of
transaction, and the
consideration expected
to be received by the sale
of mezzanine and junior notes. As at
31 December 2024, the carrying amount of the aforementioned
loan
portfolio reached € 46 million, comprising loans with gross carrying
amount of € 243 million, which carried an impairment allowance
of € 197 million. Furthermore, the impairment allowance of the letters
of guarantee included in the underlying portfolio reached
€ 1
million (note 35).
Project ‘’Leon’’- loans’ derecognition and other loans held for sale
In December 2023, the Group, aiming to accelerate further its NPE reduction plan, initiated the sale process of a mixed
NPE portfolio
of total gross book value
ca. € 400 million, engaging in
parallel in negotiations with potential
investors. Accordingly,
at 31 December
2023, the
Bank classified
the aforementioned
loan portfolio
as held
for
sale, remeasured
the portfolio’s
expected credit
losses, in
accordance with the Bank’s accounting policy
for the impairment of
financial assets and recognized an
impairment loss of €
55 million.
In the first
half of 2024, the
Bank revised its
NPE sale target
and increased the
aforementioned perimeter
of NPE loans by
ca. € 240
million, which were also classified as held-for-sale. As
a result of the above, at 30
June 2024, the carrying amount of
the loan portfolio
under held for sale
perimeter reached € 239
million, comprising loans with
gross carrying amount of
€ 637 million, which carried
an
impairment allowance of € 398 million.
On
8
July
2024,
the
Group,
through
its
special
purpose
financing
vehicle
‘’LEON
CAPITAL
FINANCE
DAC’’
(SPV),
issued
senior,
mezzanine and
junior notes of
nominal amount
of ca. €
1.5 billion, via
the securitization
of a mixed
NPE portfolio,
which comprises
the loans that were
classified as held
for sale at 30
June 2024 (project’s ‘’Leon’’
perimeter) as well
as
written off loans of
total principal
amount due
of ca. €
1.5 billion and
gross carrying
amount of ca.€
0.6 billion that
complied with
the requirements
of Hellenic Asset
Protection
Scheme law.
Further
to
the
above,
on
13
September
2024,
the
Group,
as
the
holder
of
the
notes
issued
by
the
SPV,
proceeded
with
the
disposal
of
the
95%
of
the
mezzanine
and
junior
tranches
to
a
third
party
investor.
Accordingly,
as
of
the
aforementioned date,
the Group ceased to control
the SPV and the related real
estate company
‘Leon Capital Estate Single Member
S.A.’,
which resides with the majority stake of mezzanine noteholders,
derecognized the underlying loan portfolio on the basis that it
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
transferred
substantially
all risks
and rewards
of the
portfolio’s
ownership and
relinquished its
control
over it,
and recognized
the
retained notes
on its balance
sheet, i.e. 100%
of the senior
and 5% of the
mezzanine and
junior notes of
Leon securitization,
at fair
value. In addition, prior to the derecognition of the loan portfolio, the Group reassessed the portfolio’s
expected credit losses, which
was determined by reference to
the estimated fair value of
the notes to
be retained by the
Group and the
consideration to be received
by the sale of mezzanine and junior notes,
and recognized an impairment release of € 16 million (note
21).
The carrying amount of
the loan portfolio derecognized,
as a result of
the Transaction,
amounted to €
256 million, comprising loans
with gross
carrying amount of
€ 589 million,
which carried
an impairment allowance
of € 333
million. The respective
derecognition
loss, recorded
in “other
income/(expenses)”,
amounted
to €
1 million.
As at
31 December
2024, the
gross carrying
amount of
the
remaining loan portfolio under sale amounted to
€ 42 million with an equal amount of impairment allowance.
Project “Wave”
In July 2024, the Bank
proceeded with the execution
of another synthetic risk
transfer transaction
(project “Wave V”) in
the form of
a financial guarantee, providing credit protection over the mezzanine loss of a portfolio of
performing SME and Large Corporate loans
amounting
to
€
1.1
billion
(the
reference
portfolio).
Similarly
to
the
previous
synthetic
risk
transfer
transactions
of
similar
characteristics (“Wave”
projects), the Wave
V transaction was accounted
for as a purchased
financial guarantee contract
that is not
integral to the contractual
terms of the reference
portfolio, where a compensation
right resulting from the
expected credit losses of
the protected
loans is
recognized,
to
the extent
that
it is
virtually certain
that
the Group
will be
reimbursed
for
the credit
losses
incurred. The reference portfolios
of Wave V continued to
be recognized on the Group’s
Balance Sheet.
The Wave
V transaction,
that was
performed in
the context
of the
Group’s
initiatives for
the optimization
of its
regulatory capital,
resulted in a capital benefit of 25 bps to Eurobank
Holdings Group’s CAD ratio.
Another synthetic
risk transfer
transaction was
executed in
December 2024
(project “Wave
VI”), in
the form
of credit
linked notes
(“CLN”). More specifically, the Bank issued a CLN of € 80 million that provides credit protection over the mezzanine loss of a portfolio
of performing SME
and Large Corporate
loans amounting to
€ 1.1 billion. The
credit protection
to the Bank
is provided by
means of
adjustments
(write-downs)
to
the
principal
balance
of
the
CLN,
after
the
occurrence
of
certain
credit
events
in
relation
to
the
protected loans, pursuant to
the terms and conditions of the CLN.
The CLN is accounted for as a financial liability presented
under “Debt securities in issue” (note 34).
The Wave VI transaction,
which was performed in the
context of the Group’s
initiatives for the optimization
of its regulatory capital,
is expected to contribute 22 bps to
Eurobank Holdings Group’s
CAD ratio.
Securitizations of other loan portfolios originated by the Group
The Group
in the
context
of the
achievement
of its
NPE reduction
targets
has entered
into the
securitization
of various
classes of
primarily NPE
through the
issue of senior,
mezzanine and
junior notes,
which resulted,
as described below,
in the derecognition
of
the underlying loan portfolios and the recognition of the retained
notes.
‘Mexico’ securitization
In May
2021, the
Group, through
its special
purpose financing
vehicle (SPV)
‘Mexico Finance
Designated
Activity Company’
issued
senior, mezzanine and
junior notes of total face value of ca. € 5.2 billion, via a securitization of a mixed portfolio comprising primarily
NPE. The
Group
included ‘’Mexico”
securitization
under the
Hellenic Asset
Protection
Scheme (HAPS)
thus
the senior
note of
the
securitization became entitled to the Greek State’s
guarantee.
In December 2021, the sale of 95% of the mezzanine and junior notes of Mexico securitization to doValue
S.p.A. was completed and,
as a result, the Group
ceased to control
the SPV and derecognized
the underlying loan portfolio
from its balance sheet,
on the basis
that
it transferred
substantially
all risks
and rewards
of the
portfolio’s
ownership and
ceased to
have
control
over the
securitized
loans. In addition, the Group recognized the retained notes on its balance sheet i.e. 100% of the senior and 5% of the mezzanine and
junior notes, with carrying amount € 1,290 million at 31 December 2024 (31 December 2023:
€ 1,415 million).
‘Cairo’ securitization
In June
2019, the
Group, through
the special
purpose financing
vehicles (SPVs)
‘Cairo No.
1 Finance
Designated Activity
Company’,
‘Cairo No. 2 Finance Designated
Activity Company’ and ‘Cairo No. 3 Finance Designated
Activity Company’,
issued senior,
mezzanine
and junior notes of total face value of ca. € 7.5 billion, via a securitization
of a mixed portfolio consisting primarily of non-performing
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
loans
(NPE)
(“Cairo”
securitization).
In
December
2019,
the
Group
announced
that
it
has
entered
into
a binding
agreement
with
doValue S.p.A. for the sale
of 20% of
the mezzanine and 50.1%
of the junior
notes of “Cairo”
securitization. The Group included
“Cairo”
securitization under
the Hellenic Asset
Protection Scheme
(HAPS) thus
the senior
note of
the securitization
became entitled
to the
Greek State’s
guarantee.
In June 2020,
the sale of
the aforementioned
notes was
completed and,
as a result,
the Group ceased
to control
the Cairo
SPVs on
the basis that it does not have
the power to direct their
relevant activities. Furthermore,
in June 2020, Eurobank Holdings,
following
a decision of the Board of
Directors (BoD), proceeded
to the contribution of the
retained Cairo notes,
i.e. 75% of the mezzanine
and
44.9% of
the junior
notes, along
with an
amount of
€ 1.5
million in
cash to
its Cyprus-based
subsidiary Mairanus
Ltd, renamed
to
‘Cairo Mezz Plc’,
in exchange for
the newly-issued shares
of the aforementioned
subsidiary.
In July 2020, the
General Shareholders’
Meeting of the Company
approved the distribution of Cairo
Mezz Plc shares to
Eurobank Holding’s shareholders through the decrease
in kind of its share capital.
In September 2020,
following the completion
of the distribution
of the Cairo
Mezz Plc shares,
the underlying loan
portfolio and the
related assets and liabilities were derecognized
from the Group’s
balance sheet, on the basis that at that time the Group transferred
substantially all risks
and rewards of the portfolio’s
ownership and ceased to have
control over the securitized
portfolio. In addition,
the Group recognized
the retained notes
on its balance sheet,
i.e. 100% of the
senior notes, 5% of
mezzanine and junior
notes with
carrying amount € 1,790 million at 31 December 2024 (31 December 2023: € 2,019 million).
‘Pillar’ securitization
In
June
2019, the
Group,
through
the special
purpose
financing vehicle
(SPV)
‘Pillar
Finance Designated
Activity
Company’ issued
senior,
mezzanine
and
junior
notes
of
total
value
of
ca.
€
2
billion,
via
a
securitization
of
residential
mortgage
primarily
NPE.
In
September 2019, the Group sold 95% of the above-mentioned mezzanine
and junior notes to Celidoria S.A R.L. Upon the completion
of the
sale, the
Group ceased
to control
the SPV
and derecognized
the underlying
loan portfolio
in its
entirety,
on the
basis that
it
transferred substantially
all the risks and rewards of the underlying loan portfolio’s
ownership. In addition, the Group recognized the
retained notes, i.e. 100% of the senior, 5% of the mezzanine and junior notes, on
its balance sheet with carrying amount €
966 million
at 31 December 2024 (31 December 2023: € 1,020 million).
‘Starlight’ notes held following the acquisition of Hellenic Bank
Following the
acquisition of
Hellenic Bank,
which was
consolidated as
of the
third quarter
of 2024 (note
23.2), the
Group, as
at 31
December 2024, included
in its loans
and advances to
customers,
senior and mezzanine
securitization notes
of € 58
million and € 5
million respectively,
retained by Hellenic Bank as part of the Starlight securitization
of NPE loans originated by the latter.
Support measures to customers
In March 2024, the
Bank announced the extension of
the reward initiative for housing loan clients
under floating rate loans, as
initially
was implemented
in April
2023. In
particular,
the Bank,
in its
effort
to continue
to support
and reward
its non-delinquent
housing
clients, announced
that the
application of
“a cap
rate’’
in the
loans’ applicable
base rates
is extended
for another
12 months.
The
effect of the extension of the
cap rate was assessed against
the prevailing market rates
and was reflected prospectively
in the loans’
effective interest
rate.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
21.
Impairment allowance for loans and advances to customers
The following tables present the movement
of the impairment allowance on loans and advances to customers
(expected credit losses – ECL):
31 December 2024
Wholesale
Mortgage
Consumer
Small business
12-month
ECL
-Stage 1
Lifetime
ECL
-Stage 2
Lifetime
ECL
-Stage 3
POCI
12-month
ECL
-Stage 1
Lifetime
ECL
-Stage 2
Lifetime
ECL
-Stage 3
POCI
12-month
ECL
-Stage 1
Lifetime
ECL
-Stage 2
Lifetime
ECL
-Stage 3
POCI
12-month
ECL
-Stage 1
Lifetime
ECL
-Stage 2
Lifetime
ECL
-Stage 3
POCI
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Impairment allowance as at 1 January
72
58
314
4
20
154
207
1
53
53
101
3
25
65
128
0
1,258
New loans and advances originated or
purchased
38
(0)
-
-
3
-
-
-
26
-
-
-
6
-
-
-
73
Transfers
between stages
- to 12-month ECL
16
(11)
(5)
-
4
(3)
(1)
-
20
(14)
(6)
-
10
(7)
(3)
-
-
- to lifetime ECL
(6)
12
(5)
-
(3)
30
(27)
-
(3)
16
(13)
-
(1)
15
(13)
-
-
- to lifetime ECL credit-impaired
loans
(1)
(4)
5
-
(5)
(12)
17
-
(2)
(8)
9
-
(1)
(10)
11
-
-
Impact of ECL net remeasurement
(46)
(12)
41
(4)
47
47
52
3
(36)
4
79
(1)
(33)
(11)
59
(7)
181
Recoveries from written -
off loans
-
-
10
0
-
-
8
4
-
-
15
5
-
-
5
5
51
Loans and advances derecognised/
reclassified as held for sale during the
year⁽²⁾
(0)
-
(29)
-
(0)
(0)
(37)
-
(0)
(0)
(15)
-
-
-
(24)
-
(105)
Amounts written off⁽³⁾
-
-
(14)
(0)
-
-
(9)
(1)
-
-
(47)
(1)
-
-
(13)
(0)
(84)
Unwinding of Discount
(0)
-
(7)
-
-
-
(0)
-
-
-
(1)
-
-
-
(1)
-
(10)
Foreign exchange and other movements
(14)
(3)
11
4
(2)
2
(32)
3
(7)
(3)
(8)
5
12
(2)
(25)
3
(55)
Impairment allowance as at 31 December
58
39
321
4
64
218
177
10
51
48
114
11
17
50
126
1
1,309
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
Wholesale
Mortgage
Consumer
Small business
12-month
ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI⁽¹⁾
12-month
ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI⁽¹⁾
12-month
ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI⁽¹⁾
12-month
ECL
-Stage 1
Lifetime ECL
-Stage 2
Lifetime ECL -
Stage 3 and
POCI⁽¹⁾
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Impairment allowance as at 1 January
68
75
478
21
160
229
37
48
186
23
72
229
1,626
New loans and advances originated or
purchased
23
-
-
0
-
-
20
-
-
4
-
-
47
Transfers between stages
- to 12-month ECL
23
(20)
(3)
10
(8)
(1)
15
(7)
(7)
11
(8)
(2)
-
- to lifetime ECL
(6)
28
(22)
(3)
27
(23)
(2)
15
(13)
(2)
13
(11)
-
- to lifetime ECL credit-impaired loans
(5)
(21)
27
(0)
(12)
12
(1)
(6)
6
(1)
(10)
11
-
Impact of ECL net remeasurement
(31)
(3)
72
(7)
(16)
148
4
10
84
(7)
(1)
89
342
Recoveries from written - off loans
-
-
18
-
-
8
-
-
18
-
-
6
49
Loans and advances
derecognised/reclassified as held for sale
during the year⁽²⁾
(4)
(1)
(17)
(0)
(0)
(92)
(4)
(7)
(95)
(1)
(1)
(115)
(337)
Amounts written off⁽³⁾
-
-
(216)
-
-
(46)
-
-
(62)
-
-
(62)
(387)
Unwinding of Discount
-
-
(8)
-
-
(3)
-
-
(2)
-
-
(3)
(16)
Foreign exchange and other movements
3
(0)
(10)
0
4
(24)
(16)
(1)
(11)
(1)
0
(13)
(67)
Impairment allowance as at 31 December
72
58
318
20
154
208
53
53
105
25
65
128
1,258
(1)
The impairment allowance for POCI loans of € 8.1 million is included in ‘Lifetime ECL – stage 3 and POCI’.
(2)
It represents the impairment allowance of loans derecognized due
to a) substantial modifications of the
loans’ contractual terms, b) sale and securitization
transactions, c) debt to equity transactions and those
that have been reclassified as
held for sale during the year (notes 20 and 30).
(3)
The contractual amount outstanding on lending exposures that were written off during the year ended 31 December 2024 and that
are still subject to enforcement activity is € 68 million (2023: € 338 million).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The impairment losses relating
to loans and advances
to customers recognized
in the Group’s
income statement
for the year
ended
31 December 2024 amounted to € 303 million, including € 16
million impairment release relating to the project Leon (note 20) (2023:
€ 412 million) and are analyzed as follows:
2024
2023
€ million
€ million
Impairment loss on loans and advances to customers
(255)
(390)
Net income / (loss) from financial guarantee contracts⁽¹⁾
(44)
(37)
Modification gain / (loss) on loans and advances to customers
(5)
8
Impairment (loss)/ reversal for credit
related commitments
(0)
7
Total from
continuing operations⁽²⁾
(303)
(412)
(1)
It refers to purchased financial guarantee contracts, not integral to the guaranteed loans (projects Wave).
(2)
It includes €
9 million referring to
Hellenic Bank group, which
was consolidated as of the
third quarter of 2024
(notes 23.2 and 44),
of which € 15
million refers
to the initial provision for stage 1 loans upon acquisition.
22.
Investment securities
2024
2023
€ million
€ million
Investment securities at FVOCI
4,148
3,492
Investment securities at amortised cost
17,651
10,955
Investment securities at FVTPL
384
263
Total
22,184
14,710
Note: information on debt securities of the investment portfolio is presented in note 5.2.1.3.
As part of
its
strategic and
other initiatives, the
Group has elected
to designate
the following equity
securities at initial
recognition
as measured at FVOCI.
.
2024
2023
€ million
€ million
Plum Fintech Ltd
12
7
Attica Bank S.A.
0
8
Mintus Group Limited
2
2
JCC Payment Systems
Ltd
13
-
Demetra Holdings Plc
30
-
Other
2
-
Total
59
17
Sustainability linked bonds
As at 31 December
2024, the Group holds positions
in sustainability linked bonds with Sustainability
Performance Targets (SPTs)
(note
20) of carrying value of € 248 million, of which € 156 million measured
at FVOCI and € 92 million at AC (2023: € 118 million, of
which
€ 82 million at
FVOCI and € 36
million at AC).
The Group has
assessed the ESG features
of the aforementioned
debt instruments,
in
line with the
Group’s
accounting policies (note
2) and has concluded
that they do
not create exposure
to risks that
are inconsistent
with a basic lending arrangement and therefore
the SPPI criteria are met.
Post balance sheet event
In January 2025, the Bank announced the
completion of the sale of its
8.58% holding in Demetra Holdings Plc for a cash
consideration
of ca.
€ 27 million.
This transaction
was part
of the Bank’s
broader agreement
with Demetra
and Logicom
for the
acquisition of
an
additional 24.66% stake in Hellenic Bank (note
23.2).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
22.1
Movement of investment securities
The tables below present the movement of the carrying
amount of investment securities per measurement
category and per stage:
31 December 2024
Debt securities at FVOCI
Investment securities at amortised cost
Investment
securities at
FVTPL
Equity
securities at
FVOCI
12-month
ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
12-month
ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Gross carrying amount at 1
January
3,427
48
-
10,935
7
32
263
17
14,729
Arising from acquisition
36
-
-
5,203
0
0
140
14
5,394
Additions, net of disposals and
redemptions
453
(22)
-
1,368
-
0
(23)
39
1,815
Transfers between stages
3
(3)
-
(12)
12
-
-
-
0
Net gains/(losses) from changes in
fair value for the year
66
5
-
-
-
-
16
(11)
76
Amortisation of
premiums/discounts and interest
18
1
-
82
0
1
0
-
102
Changes in fair value
due to hedging⁽¹⁾
-
-
-
5
0
1
-
-
6
Exchange adjustments and other
movements⁽²⁾
57
0
-
40
0
2
(12)
-
88
Discontinued operations
-
-
-
-
-
-
-
-
-
Gross carrying amount at 31
December
4,061
28
-
17,622
20
36
385
59
22,210
Impairment allowance
-
-
-
(15)
(1)
(9)
-
-
(26)
Net carrying amount at 31
December
4,061
28
-
17,606
19
27
385
59
22,184
31 December 2023
Debt securities at FVOCI
Investment securities at amortised cost
Investment
securities at
FVTPL
Equity
securities at
FVOCI
12-month
ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
12-month
ECL-
Stage 1
Lifetime ECL-
Stage 2
Lifetime ECL-
Stage 3
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Gross carrying amount at 1
January
3,612
121
-
9,175
6
33
241
95
13,283
Additions, net of disposals and
redemptions
(394)
-
-
1,621
-
(2)
3
18
1,246
Transfers between stages
76
(76)
-
(1)
1
-
-
-
-
Net gains/(losses) from changes in
fair value for the year
244
4
-
-
-
-
19
7
273
Amortisation of
premiums/discounts and interest
(19)
0
-
28
(0)
2
(0)
-
10
Changes in fair value due to
hedging⁽¹⁾
-
-
-
146
0
-
-
-
146
Exchange adjustments and other
movements⁽²⁾
(11)
(1)
-
(34)
(0)
(1)
0
(103)
(150)
Discontinued operations
(81)
-
-
-
-
-
-
-
(81)
Gross carrying amount at 31
December
3,427
48
-
10,935
7
32
263
17
14,729
Impairment allowance
-
-
-
(11)
(0)
(7)
-
-
(18)
Net carrying amount at 31
December
3,427
48
-
10,924
7
25
263
17
14,710
(1)
Changes in fair value due to continued hedging relationships amount to € 41 million gain (2023: € 172 million
gain)
(2)
Other movements include
debt securities of
face value of
€ 3
million at
FVOCI, €
31 million at
AC and
€ 25
million at FVTPL,
eliminated for consolidation
purposes following the acquisition
of Hellenic Bank. Other
movements in equity securities
at FVOCI in the
comparative year, mainly refer to Hellenic
Bank which
was accounted for as a Group's associate as of the second quarter of 2023 (note 23.2).
Notes to the Consolidated Financial Statements
.
125
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31 December 2024 Consolidated Financial Statements
22.2
Movement of ECL
The table below presents the ECL movement per portfolio,
including ECL movement analysis per stage:
31 December 2024
31 December 2023
Measured at
amortised cost
Measured at
FVOCI
Total
Measured at
amortised cost
Measured at
FVOCI
Total
€ million
€ million
€ million
€ million
€ million
€ million
Balance at 1 January
18
8
26
22
12
34
New financial assets purchased
6
4
10
4
2
6
- of which 12-month ECL-Stage 1
6
4
10
4
2
6
Transfers
between stages
- (from)/to 12-month ECL-Stage 1
(0)
0
0
0
1
1
- (from)/to lifetime ECL-Stage 2
0
(0)
(0)
(0)
(1)
(1)
- (from)/to lifetime ECL-Stage 3
-
-
-
-
-
-
Remeasurement due to change in
ECL risk parameters
4
1
4
(8)
(5)
(13)
- of which 12-month ECL-Stage 1
1
(1)
0
(5)
(4)
(9)
- of which lifetime ECL-Stage 2
1
2
2
(0)
(1)
(1)
- of which lifetime ECL-Stage 3
2
-
2
(3)
-
(3)
Financial assets disposed during the
year
(1)
(5)
(6)
(1)
(1)
(2)
- of which 12-month ECL-Stage 1
(1)
(3)
(4)
(1)
(1)
(2)
Financial assets redeemed during the
year
(0)
(0)
(1)
(0)
(0)
(0)
- of which lifetime ECL-Stage 3
-
-
-
-
-
-
Foreign exchange and other
movements
0
0
0
1
(0)
1
Balance as at 31 December
26
8
33
18
8
26
22.3
Equity reserve: revaluation of the investment
securities at FVOCI
Gains
and
losses
arising
from
the
changes
in
the
fair
value
of
investment
securities
at
FVOCI
are
recognized
in
a
corresponding
revaluation reserve in equity.
The movement of the reserve is as follows:
2024
2023
€ million
€ million
Balance at
1 January
48
(10)
Net gains/(losses) from changes in fair value
60
255
Tax (expense)/benefit
(10)
(49)
50
206
Net (gains)/losses transferred to net profit on disposal
(7)
(50)
ECL transferred to net profit
4
(3)
Tax (expense)/benefit on net (gains)/losses
transferred to net profit on disposal
2
15
Tax (expense)/benefit on ECL
transferred to net profit
(1)
1
(2)
(37)
Net (gains)/losses transferred to net profit from
fair value hedges
(45)
(91)
Tax (expense)/benefit
11
24
(34)
(67)
Revaluation reserve from associated undertakings, net of tax
(5)
1
Revaluation reserve for the investment
in Hellenic Bank transferred to R/E
(0)
(45)
Balance at 31 December
57
48
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
23.
Group composition
23.1
Shares in subsidiaries
The following is a listing of the Company's subsidiaries as at 31 December 2024, included in the consolidated financial statements
for
the year ended 31 December 2024:
Name
Note
Percentage
holding
Country of
incorporation
Line of business
Eurobank S.A.
100.00
Greece
Banking
Be Business Exchanges Single Member Societe Anonyme
of Business Exchanges Networks and Accounting and Tax
Services
c
100.00
Greece
Business-to-business e-commerce,
accounting, tax and sundry services
Eurobank Asset Management Mutual Fund Mngt
Company Single Member S.A.
100.00
Greece
Mutual fund and asset management
Eurobank Equities Investment Firm Single Member S.A.
100.00
Greece
Capital markets and advisory services
Eurobank Leasing Single Member S.A.
100.00
Greece
Leasing
Eurobank Factors Single Member S.A.
100.00
Greece
Factoring
Herald Greece Single Member Real Estate development
and services S.A. 1
100.00
Greece
Real estate
Herald Greece Single Member Real Estate development
and services S.A. 2
100.00
Greece
Real estate
Piraeus Port Plaza 1 Single Member Development S.A.
100.00
Greece
Real estate
(Under liquidation) Anchor Hellenic Investment Holding
Single Member S.A.
100.00
Greece
Real estate
Athinaiki Estate Investments Single Member S.A.
100.00
Greece
Real estate
Piraeus Port Plaza 2 Single Member Development S.A.
100.00
Greece
Real estate
Piraeus Port Plaza 3 Single Member Development S.A.
100.00
Greece
Real estate
Tenberco Real Estate
Single Member S.A.
100.00
Greece
Real estate
Value Touristiki Single Member Development S.A.
100.00
Greece
Real estate
Insignio Single Member S.A.
100.00
Greece
Real estate
Eurobank Ananeosimes Single Member S.A.
100.00
Greece
Production and distribution of solar generated
electric energy
Eurobank Bulgaria A.D.
99.99
Bulgaria
Banking
PB Personal Finance E.A.D.
99.99
Bulgaria
Pension assurance intermediary business
Berberis Investments Ltd
d
100.00
Channel Islands
Holding company
Eurobank Cyprus Ltd
100.00
Cyprus
Banking
Hellenic Bank Public Company Limited⁽²⁾
55.96
Cyprus
Banking
Hellenic Bank (Investments) Ltd⁽²⁾
55.96
Cyprus
Investment banking, asset management and
brokerage
HB Data Analytics Ltd⁽²⁾
55.96
Cyprus
Auxiliary services
Pancyprian Insurance Ltd⁽²⁾
55.94
Cyprus
General Insurance
Hellenic Life Insurance Company Ltd⁽²⁾
55.96
Cyprus
Life Insurance
Hellenic Bank Insurance Holding Ltd⁽²⁾
55.96
Cyprus
Insurance services
Hellenic Insurance Agency Ltd⁽²⁾
55.96
Cyprus
Insurance Intermediation
Ezmero Holdings Ltd⁽²⁾
55.96
Cyprus
Real estate
Anolia Industrial Ltd⁽²⁾
55.96
Cyprus
Real estate
Drypto Holdings Ltd⁽²⁾
55.96
Cyprus
Real estate
Arzetio Holdings Ltd⁽²⁾
55.96
Cyprus
Real estate
Katlero Holdings Ltd⁽²⁾
55.96
Cyprus
Real estate
Foramonio Ltd
100.00
Cyprus
Real estate
Lenevino Holdings Ltd
100.00
Cyprus
Real estate
Rano Investments Ltd
100.00
Cyprus
Real estate
Neviko Ventures Ltd
100.00
Cyprus
Real estate
Zivar Investments Ltd
100.00
Cyprus
Real estate
Amvanero Ltd
100.00
Cyprus
Real estate
Revasono Holdings Ltd
100.00
Cyprus
Real estate
Notes to the Consolidated Financial Statements
.
127
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31 December 2024 Consolidated Financial Statements
Name
Note
Percentage
holding
Country of
incorporation
Line of business
Volki Investments Ltd
100.00
Cyprus
Real estate
Adariano Investments Ltd
100.00
Cyprus
Real estate
Elerovio Holdings Ltd
100.00
Cyprus
Real estate
Afinopio Investments Ltd
100.00
Cyprus
Real estate
Ovedrio Holdings Ltd
100.00
Cyprus
Real estate
Primoxia Holdings Ltd
100.00
Cyprus
Real estate
Severdor Ltd
100.00
Cyprus
Holding company
Eurobank Private Bank Luxembourg S.A.
100.00
Luxembourg
Banking
Eurobank Fund Management Company (Luxembourg) S.A.
100.00
Luxembourg
Fund management
ERB Lux Immo S.A.
100.00
Luxembourg
Real estate
ERB New Europe Funding B.V.
100.00
Netherlands
Finance company
ERB New Europe Funding II B.V.
100.00
Netherlands
Finance company
ERB New Europe Holding B.V.
100.00
Netherlands
Holding company
ERB IT Shared Services S.A.
100.00
Romania
Informatics data processing
IMO Property Investments Bucuresti S.A.⁽¹⁾
100.00
Romania
Real estate services
Seferco Development S.A.
99.99
Romania
Real estate
ERB Leasing A.D. Beograd-in Liquidation
100.00
Serbia
Leasing
IMO Property Investments A.D. Beograd
100.00
Serbia
Real estate services
Karta II Plc
-
United Kingdom
Special purpose financing vehicle
Astarti Designated Activity Company
-
Ireland
Special purpose financing vehicle
ERB Recovery Designated Activity Company
-
Ireland
Special purpose financing vehicle
(1)
The company has been classified as a held for sale subsidiary (note 30).
(2)
Entities of Hellenic Bank group, which was
consolidated as of the third quarter of 2024.As of
November 2024, following the share purchase agreements
with
certain shareholders of
Hellenic Bank and
Eurobank’s squeeze-out right to acquire
the remaining shares
of Hellenic Bank,
the entity is
included in the
Company’s
consolidated financial statements with 100% holding percentage (note 23.2).
The following entities are not included in the consolidated
financial statements due to immateriality:
(i) the Group’s
special purpose financing
vehicles and the
related holding
entities, which are
dormant and/or
are under liquidation:
Themeleion
III
Holdings
Ltd,
Themeleion IV
Holdings
Ltd,
Themeleion Mortgage
Finance Plc,
Themeleion
II Mortgage
Finance Plc,
Themeleion
III
Mortgage
Finance
Plc,
Themeleion
IV
Mortgage
Finance
Plc,
Themeleion
V
Mortgage
Finance
Plc,
Themeleion
VI
Mortgage Finance Plc, Anaptyxi APC Ltd and Byzantium
II Finance Plc.
(ii) the holding entity of Karta II Plc: Karta II Holdings Ltd.
(iii) dormant entity: Enalios Real Estate
Development S.A.
(iv) entities
controlled by
the Group
pursuant to
the terms
of the relevant
share pledge
agreements: Finas
S.A., Rovinvest
S.A. and
Promivet S.A.
In 2024, the changes
in the Group structure
due to: a) acquisitions
and mergers of
companies, b) sales and
other corporate
actions,
which
resulted
in loss
of
control,
c) transactions
with
the non-controlling
interests,
which did
not
result
in loss
of
control
and
d)
liquidations, are as follows:
(a) Reco Real Property A.D. Beograd,
Serbia
In February 2024, the Bank signed an agreement for
the sale of its participation interest
of 100% in Reco Real Property
A.D. Beograd
to
a third
party
for
a
cash
consideration
of
€
11.5
million.
Following
the
above,
the
company
was
classified
as
held
for
sale and
measured by reference to the agreed consideration,
being lower than its carrying amount. Accordingly,
in the first quarter of 2024, a
fair value remeasurement
loss of € 1.8 million
for the company’s
main asset, relating
to investment property,
was recognized
in the
income statement
line “Other income/(expenses)”.
In June 2024, the sale of the company
was completed, with an immaterial
effect
on the Group’s income
statement.
(b) Special purpose financing vehicle for the securitization of Bank’s
loans and related real estate
company
In
the context
of
Project
“Leon”,
on 8
July
2024, the
Bank proceeded
to
a securitization
transaction
through
the special
purpose
financing vehicle
“LEON CAPITAL
FINANCE DESIGNATED
ACTIVITY COMPANY”.
In September
2024, the
Group
disposed 95%
of the
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
mezzanine and junior notes of
the abovementioned securitization to a
third party, therefore ceased to control the SPV and
the related
real estate company
“Leon Capital Estate Single Member S.A.”
(note 20).
(c) Be
Business Exchanges
Single Member
Societe
Anonyme
of Business
Exchanges
Networks
and Accounting
and Tax
Services,
Greece
In September 2024, Εurobank Holdings acquired an additional participation interest of 1.99% in the company, therefore its holding in
the
company’s
share
capital
reached
100%.
The
transaction
had
an
immaterial
effect
that
was
recognized
directly
in
the
equity
attributable to
the shareholders of
Eurobank Holdings. In October
2024, following the
above transaction, the
name of the company
was amended with the inclusion of the term “Single member”.
(d) Berberis Investments Ltd, Channel Islands
In 2024, the liquidation of the company was decided.
(e) ADEXA Real Estate Single Member S.A., Greece
In December 2024,
the merger of
the Bank and
its wholly owned subsidiary
ADEXA Real Estate
Single Member S.A.
was completed,
by absorption of the latter by the former
.
(f) Severdor Ltd, Cyprus and Insignio Single Member S.A., Greece
In December 2024, the Bank acquired 100% of the shares of Severdor
Ltd for a cash consideration
of ca. € 34 million. The main asset
of Severdor
Ltd is
the participation
in the
whole of
the issued
share capital
of Insignio
Single Member
S.A., which
in turn
owns an
investment
property as
its main
asset. In
line with
IFRS 3
requirements,
the
acquisition was
accounted
for as
an asset
acquisition
rather than a
business combination, since substantially
all of the fair
value of the gross
assets acquired was
concentrated in
a single
identifiable
asset
and
no
substantive
business
processes
were
acquired.
Accordingly,
no
goodwill
was
recognized,
whereas
the
acquired property,
along with other assets/other liabilities, were recognized
in the Group’s
balance sheet by allocating the purchase
price to the individual identifiable assets and liabilities on the basis of their relative fair values. Following the above treatment, at the
acquisition date the total assets of both companies amounted to ca. €
86 million, of which ca. € 75
million investment property, while
total liabilities amounted to ca. € 52 million, of which ca.
€ 44 million intragroup funding.
(g) Ezelco Holdings Ltd, Prunelox Holdings Ltd,
Shanlo Holdings Ltd and Torki
Holdings Ltd, Cyprus
In November 2024, the merger of Hellenic Bank with its above mentioned
wholly owned subsidiaries was completed.
In 2023, the significant changes in the Group structure
were as follows:
(i) Eurobank Direktna a.d., Serbia
On 2 November 2023, the Bank announced that the sale of its 70% shareholding in Eurobank Direktna a.d. to AIK Banka a.d. Beograd
was completed (note 30).
(ii) Acquisition of BNP Paribas Personal Finance Bulgaria by Eurobank
Bulgaria A.D.
On 9 December
2022, Eurobank
Holdings announced that
it had reached
an agreement
for the
acquisition of
BNP Paribas
Personal
Finance Bulgaria
(the “Business”)
by Eurobank’s
subsidiary in Bulgaria,
Eurobank Bulgaria
A.D. (“Postbank”).
The completion
of the
transaction
took
place
in
May
2023,
following
the
receipt
of
the
approvals
by
all
competent
regulatory
authorities.
Further
information is provided in note 23.2 of the
consolidated financial statements
for the year ended 31 December 2023.
(iii) IMO Property Investments Sofia E.A.D., Bulgaria
During the second quarter of 2023, the sale of IMO Property
Investments Sofia E.A.D. was
considered highly probable, therefore
the
company was
classified as held
for sale
and measured
by reference
to the
pre-agreed consideration
with the third
party,
being the
lower of
its carrying amount
and fair
value less
costs to
sell, in accordance
with IFRS
5. Accordingly,
a remeasurement/impairment
loss of € 23
million on real estate properties
was recognised in the
income statement. In May 2023, the
sale of the
Bank’s participation
interest of 100% in the company, along with the loan receivable from the company,
was completed with a total cash consideration of
€ 15.5 million.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
(iv) ADEXA Real Estate Single Member S.A., Greece
In June 2023,
the Bank acquired
100% of the
shares and voting
rights of ADEXA
Real Estate Single Member
S.A. for a
cash consideration
of €
50.8 million.
In line with
IFRS 3 requirements,
the acquisition
was accounted
for as
an asset acquisition
rather than
a business
combination, since
substantially all
of the fair
value of the
gross assets
acquired was
concentrated
in a single
identifiable asset
and
no substantive
business processes
were acquired.
Accordingly,
no goodwill
was recognized,
whereas the
acquired property,
along
with other
assets/other liabilities,
were recognized
in the
Group’s
balance sheet
by allocating
the purchase
price to
the individual
identifiable assets and
liabilities on the basis
of their relative
fair values. Following
the above treatment,
at the acquisition
date the
total assets of
the company amounted
to € 52.3 million,
of which € 33.4
million refer
to own used
property and €
18.7 million refer
to investment property,
while total liabilities amounted to € 1.5 million.
Significant restrictions on the Group's ability to access or
use the assets and settle the liabilities of the Group
The Group does
not have any
significant restrictions
on its ability to
access or use its
assets and settle
its liabilities other than
those
resulting from regulatory,
statutory and contractual requirements,
set out below:
●
Banking and other financial institution subsidiaries are subject to regulatory restrictions and central bank requirements
in the
countries
in which
the subsidiaries
operate.
Such supervisory
framework
requires
the subsidiaries
to
maintain
minimum
capital buffers and certain capital
adequacy and liquidity ratios, including restrictions to limit exposures
and/or the transfer
of funds to the
Company and other subsidiaries
within the Group. Accordingly,
even if the subsidiaries’
financial assets are
not pledged
at an
individual entity
level, their
transfer
within the
Group may
be restricted
under the
existing supervisory
framework.
As
at
31
December
2024,
the
carrying
amount
of
the
Group
financial
institution
subsidiaries’
assets
and
liabilities, before intercompany eliminations, amounted to € 108.1 billion and
€ 96.2 billion, respectively, including Eurobank
S.A. (2023: € 85.6 billion and € 76.2 billion).
●
Subsidiaries are subject to statutory requirements
mainly relating with the level of capital and total
equity that they should
maintain,
restrictions
on the
distribution
of
capital
and
special reserves,
as
well
as
dividend
payments
to
their
ordinary
shareholders.
●
Insurance subsidiaries, which are also subject to regulatory
and statutory restrictions, hold financial assets
of € 128 million,
(before intercompany
eliminations)
in order to satisfy their obligations to policy holders
.
●
The Group
uses its
financial assets
as collateral
for repo
and derivative
transactions, secured
borrowing from
central and
other banks, issuances
of covered bonds, as
well as securitizations. As
a result of
financial assets’ pledge,
their transfer within
the Group is not permitted. Information
relating to the Group’s
pledged financial assets is provided in notes 17, 29 and 41.
●
The Group
is required
to maintain
mandatory and
collateral deposits
with central
banks. Information
for these deposits
is
provided in note 15.
23.2 Consolidation of Hellenic Bank group
Hellenic Bank Public
Company Ltd
(“Hellenic Bank”), a
financial institution
based in Cyprus
and listed in
the Cyprus Stock
Exchange,
was accounted
for as a
Group’s
associate under the
equity method from
April 2023 until
30 June 2024 (note
24). The Hellenic Bank
group provides a wide range of banking and financial services, which include financing, investment and insurance services, custodian
and factoring services and the management and disposal of properties,
predominantly acquired in debt satisfaction.
As a result
of the agreements
the Bank had
entered into
with certain
of Hellenic Bank’s
shareholders since
August 2023,
on 4 June
2024, the
Bank announced
that following
the receipt
of the relevant
regulatory approvals,
acquired an
additional 26.1% holding
in
Hellenic Bank (“Transaction”) for a total consideration
of € 275.7 million. Following the aforementioned Transaction,
pursuant to the
Takeover
Bids Law of 2007 of the Republic of Cyprus, L.41(I)/2007 as amended (“Law”), the Bank also announced the submission of a
Mandatory Takeover
Bid (“Takeover
Bid”) to all
shareholders of Hellenic
Bank for
the acquisition
of up to
100% of the
issued share
capital of Hellenic Bank. The
consideration offered
by the Bank was € 2.56
per share, paid in cash to
all the shareholders who would
accept the Takeover
Bid during the period from 1 July until 30 July 2024.
Furthermore, within
June 2024, the
Bank proceeded with
the acquisition of
an additional 0.18%
holding in Hellenic
Bank for
a total
consideration of € 2 million,
i.e. at a price of € 2.56 per share.
Accordingly,
as of 30 June 2024 the Bank’s
participation percentage in
Hellenic Bank reached 55.48%.
Notes to the Consolidated Financial Statements
.
130
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31 December 2024 Consolidated Financial Statements
Despite
being
the
holder
of
over
50%
of
Hellenic Bank’s
shares,
until
the
expiration
of
the
Takeover
Bid
acceptance
period,
and
pursuant to the Law,
Eurobank as the offeror,
its nominees and persons acting in concert with it could not be appointed to the Board
of Directors of Hellenic
Bank, nor they
could exercise, or procure the
exercise of, the votes attaching to any
shares they held in
Hellenic
Bank.
In
addition,
during
the period
when
they
became aware
that
a bid
was
imminent
and until
expiration
of the
Takeover
Bid
acceptance
period,
the
Board
of
Directors
of
Hellenic
Bank
could
not
without
prior
authorization
of
the
general
meeting
of
shareholders, take any
action which could result in the frustration of the Takeover
Bid.
On 30
July 2024,
the acceptance
period for
the Takeover
Bid expired,
therefore
the restrictions
imposed by
the Law
on the
Bank’s
ability to
exercise its
voting rights
no longer applied,
and Eurobank,
since then, has
been able to
exercise its
rights in
full. Based on
the above and considering the
relevant provisions of the Cyprus’ legal framework including the
Companies Law Cap. 113,
and Hellenic
Bank’s articles of
association in relation to
the exercise of shareholders’
rights, including the timing for
convening a general
meeting
of the shareholders, it was assessed that the Group
acquired control over Hellenic Bank group within
July.
More
specifically,
in
accordance
with
IFRS10,
control
exists
when
the investor
has the
practical
ability to
exercise
its rights
when
decisions for the relevant activities need to be made. In this context, based on legal and
corporate provisions including the minimum
period
required
for
the
convocation
of
any
shareholders’
meeting, 15
July
2024, was
the
last
date
that
a general
meeting of
the
shareholders
of Hellenic
Bank could
be convened
and take
place before
the expiration
of the
Takeover
Bid acceptance
period, in
which the
Bank would
not have
the ability
to exercise
its voting
rights. From
16 July
onwards,
the Bank
would be
in a
position to
exercise its
rights freely should
a shareholders’
meeting be convened,
as it would
not take
place until after
a minimum period
of at
least 14
calendar
days,
when the
restrictions
would have
already been
lifted. Accordingly
,
Hellenic Bank
and its
subsidiaries were
included in the
Company’s consolidated
financial statements
from the beginning
of the third quarter
of 2024 using the
most recent
available
published financial
information.
Any P&L
from the
date
of consolidation
up to
the acquisition
date was
considered non-
significant.
The
acquisition
of
Hellenic
Bank
was
accounted
for
as
a
business
combination
using
the
purchase
method
of
accounting,
where
provisional values have
been applied, as a fair
value exercise is
in progress by the
Group to measure the
identifiable assets acquired
and liabilities incurred and is expected to be completed no later than the one year initial measurement
period from acquisition date,
given the size
of the acquired
group and related
complexities.
In accordance with
the Group’s
accounting policies, during
this initial
measurement period the Group will retrospectively
adjust the provisional amounts recognized
at the acquisition date to reflect
new
information obtained about facts
and circumstances that existed as
of the acquisition date.
Accordingly,
the difference
between (a)
the measurement
at acquisition
date of
fair values
of the
identifiable assets
acquired and
liabilities assumed relating to 55.48% participation held in Hellenic Bank as of 30 June 2024 based on provisional
values - see below -
amounting
to
€ 868
million and
(b) the
carrying
amount
of the
investment
in the
entity accounted
for
previously
as an
associate
amounting to € 862 million, resulted in
ca. € 6 million gain, after taking into
account the remeasurement loss of pre-existing
interest
at its fair
value of € 602
million, reflecting the
price levels of
the Hellenic Bank shares
in the local
stock exchange
trading below
the
entity’s book value . This result, along with the related acquisition costs
of € 6 million have been recognized in the income statement
line “Other income/(expenses)”.
In particular,
the acquisition
balance sheet
of Hellenic
Bank group,
based on
its published
interim
financial statements
for
the six
month period ended 30 June 2024,
including the provisional fair
value adjustments recognized
as updated in the fourth
quarter,
are
set out below:
Notes to the Consolidated Financial Statements
.
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Provisional
values on
acquisition
€ million
ASSETS
Cash and balances with central banks
5,390
Due from credit institutions
328
Loans and advances to customers
5,965
Investment securities
5,456
Property and equipment
171
Investment property
10
Intangible assets ⁽¹⁾
34
Other assets ⁽²⁾
167
Fair value adjustments (see below)
(81)
Total assets ⁽³⁾
17,439
LIABILITIES
Due to credit institutions
92
Due to customers
14,991
Debt securities in issue
437
of which intercompany balances with the Group
63
Other liabilities ⁽⁴⁾
320
Fair value adjustments (see below)
35
Total liabilities
15,875
Net assets of Hellenic Bank group acquired
1,565
Net assets attributable to non controlling interests
697
Net assets of Hellenic Bank group attributable to shareholders
868
Carrying amount of the investment in the Hellenic Bank group accounted for as an
associate as at 30 June 2024
862
Fair value of previously held interest in the Hellenic Bank group accounted for
as an
associate as at 30 June 2024
⁽⁵⁾
602
(1)
Intangible assets of
Hellenic Bank group
were reduced by
€ 14 million,
referring to recorded
Goodwill not to
be recognized as
an identifiable asset
of the
Group as the acquirer.
(2)
Other assets include € 24 million reinsurance contract assets.
(3)
Includes cash and cash equivalents of € 5,506 million.
(4)
Other liabilities include € 104 million insurance contract liabilities.
(5)
Based on the price of Hellenic Bank shares as at 28 June 2024.
The above provisional fair value adjustments as of the acquisition
that are presented within the balance sheet lines
‘Other assets’ and
‘Other liabilities’ of the Group, are analyzed
in the table below per asset/liability category:
Notes to the Consolidated Financial Statements
.
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Provisional
fair value
adjustments
€ million
ASSETS
Loans and advances to customers
(17)
Investment securities
(84)
Intangible assets
6
Other assets (repossessed properties)
13
Total assets
(81)
LIABILITIES
Debt securities in issue
31
Other Liabilities (contingent liabilities)
4
Total liabilities
35
As at
31 December 2024,
the carrying
amount of
the provisional
fair value
adjustments, after
the subsequent
measurement of
the
related assets and liabilities,
as included in
balance sheet lines
‘Other assets’ and ‘Other
liabilities’ amounted to €
66 million (decrease)
and € 33 million (increase) respectively (notes 29 and 35).
In the first half of
2024, Hellenic Bank group recorded a
net profit of € 189
million in accordance with its respective published financial
statements.
In the
same period,
the Group’s
share of
results οf
Hellenic Bank
group that
was accounted
for under
equity method
amounted to € 133 million income, as adjusted in the third quarter of 2024 (further information is provided in note 24 – investments
in associates and joint ventures).
For the period from its
acquisition until 31 December 2024, Hellenic
Bank group contributed
€ 382
million to
the Group's
net revenues
from
international
operations
and €
141 million
to
its net
profit
attributable
to
shareholders
(further information is provided in note
44 “Operating segment information”).
On 7
August 2024,
the Bank
announced that
after the
final review
of the
Acceptance and
Transfer
Forms, the
total percentage
of
acceptance of the Takeover Bid reached 0.481%, giving Eurobank total participation of 55.962% in the issued share capital of Hellenic
Bank. For the additional stake
acquired in the subsidiary,
the difference between
the fair value of
the additional net assets
acquired
(based on
provisional
values)
amounting to
ca. €
8 million
and the
consideration
paid amounting
to
ca. €
6 million,
including the
acquisition
related
costs,
resulted
in a
gain
of
ca.
€ 2
million that
was
recorded
directly
in equity
,
as
a transaction
with the
non-
controlling shareholders.
Furthermore, in November 2024, the Bank announced that it has entered
into share purchase agreements with certain shareholders
of the
Hellenic Bank,
pursuant to
which, it
has agreed
to acquire
an additional
total holding
of 37.51%
(154,832,195 shares)
in the
entity,
for a total
consideration of
ca. € 750
million, corresponding
to € 4.843
per share. Specifically,
Eurobank agreed
to acquire
a)
88,064,705 Hellenic Bank
shares (21.33%) from
Demetra Holdings Plc,
for a consideration of
ca. € 426.5
million, subject to
the approval
of the General
Assembly of the shareholders
of the seller,
b) 53,037,786 Hellenic Bank
shares (12.848%) from
Cyprus Union of Bank
Employees, the
Cyprus Bank
Employees Welfare
Fund, the
Cyprus Bank
Employees Health
Fund and
the Financial
Sector Provident
Fund, for
a total
adjusted consideration
of ca.
€ 257 million
and c) 13,729,704
Hellenic Bank
shares (3.33%)
from Logicom
Services
Limited, for a consideration of ca. € 66.5 million.
As of 31
December 2024, the
above transactions
were subject
to regulatory
approvals and
upon their completion,
Eurobank’s
total
holding in Hellenic Bank reaches 93.47%.
Moreover,
in accordance with the provisions of the Takeover
Bids Law of 2007 in Cyprus (“Law”), the Bank, following the completion
of the above-mentioned transactions has the obligation to proceed to a tender offer for the remaining outstanding shares of Hellenic
Bank for at least
the same price i.e. € 4.843
per share, whereas
pursuant to Article
36 of the same law
it is able, after
completion of
the said tender offer and given
that it will hold more
than 90% votes, to require all
the holders of the remaining
securities to sell those
securities.
On
those
grounds,
the
Bank
announced
in
November
2024
that
it
will
exercise
its
squeeze-out
right
to
acquire
any
outstanding
shares of
Hellenic Bank
and take
all necessary
steps
for
the delisting
of Hellenic
Bank's shares
from the
Cyprus Stock
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Exchange. Effectively,
the mandatory tender
offer along with
the squeeze-out right
oblige counterparties to
execute the
acquisition
of
all the
remaining
shares
by the
Bank
and therefore
the outcome
is certain,
thus
the transaction
is deemed
as
equivalent
to
a
forward contract that
gives rise to a contractual obligation
attached to the underlying shares.
The
above
transactions
including
the
Bank’s
squeeze-out
right
for
the
acquisition
of
the
remaining
shares
of
Hellenic Bank
were
accounted
for
in the
Group’s
financial statements
as forward
contracts
at a
fixed
price (€
4.843 per
share)
to
acquire shares
in a
subsidiary that are held by non-controlling interests and were deemed to provide present
access to the risks & rewards of ownership
of these
shares to
the Bank.
Accordingly,
as of
November 2024
Hellenic Bank
is included
in the
Group’s
financial statements
with
100% consolidation percentage.
The difference between
a) the carrying amount of non-controlling shareholders’
interest in Hellenic
Bank of
ca. €
745 million
that was
derecognized and
b) the
financial liability
of ca.
€ 880
million that
was recognised
to reflect
the
Bank’s
unconditional
obligation
to deliver
cash to
non-controlling
shareholders
for
the acquisition
of their
Hellenic Bank’s
shares,
resulted in a loss of ca. € 136 million, including acquisition-related
costs that were recorded directly
in equity.
Post balance sheet event
On 11 February
2025, the Bank
announced that following the
receipt of the
relevant regulatory approvals, it completed the
acquisition
of the
additional
holding of
37.51% in
Hellenic Bank,
as per
the aforementioned
agreements
of the
Bank with
certain
of Hellenic
Bank’s shareholders
in November 2024. Following
that and pursuant
to the provisions
of the Takeover
Bids Law in Cyprus,
the Bank
also announced the submission of a Mandatory Takeover
Bid for the acquisition of up to 100% of the issued share capital
of Hellenic
Bank (“Takeover
Bid”). Further to the above,
on 6 March 2025 the
Bank announced that on
5 March 2025 the Cyprus
Securities and
Exchange Commission (the “CySEC”) approved
the Takeover
Bid Document and authorised its
publication. Pursuant to
the Takeover
Bid Document, the consideration
offered to the
shareholders of Hellenic Bank who
will accept the Takeover
Bid is € 4.843 per
share
paid in cash. The acceptance period of the Takeover
Bid commences on 11th March 2025 and ends on 9th April 2025.
Agreement with CNP Assurances on CNP Cyprus Insurance Holdings
On 9
July 2024, Hellenic
Bank and
CNP Assurances
signed a Sales
and Purchase
Agreement for
the acquisition of
its subsidiary CNP
Cyprus Insurance Holdings Limited, (the “Transaction”)
for a total consideration that is expected
to be € 182 million.
CNP Cyprus Insurance
Holdings Limited group,
which consists of amongst
others: CNP Cyprialife
Ltd, CNP Asfalistiki
Ltd, CNP Zois
SA
and CNP Cyprus
Properties Ltd.,
is a leading
insurance operator
in Cyprus. It
offers life
and general
insurance products
and services
through
a
large
network
of
independent
agents
in
Cyprus.
For
the
year
ended
31
December
2023,
it
had
c.
330
employees
and
generated € 236 million
of gross premiums. In
terms of the
potential profit contribution towards the Group going
forward, CNP Cyprus
entities had a cumulative
profit of c. € 21 million
for the year ended
31 December 2023. CNP Cyprus
Insurance Holdings Limited has
also presence in the Greek market.
On 28 November
2024, the Hellenic Bank announced
that the Commission for
the Protection of
Competition, in its meeting
held on
27 November
2024, approved
the concentration
arising from
the Transaction
.
The Transaction
is also
subject to
other regulatory
approvals and it is expected to be completed
within the first quarter of 2025.
23.3
Initiation of the merger process between Eurobank Ergasias Services and Holdings
S.A. and Eurobank S.A.
On 19
December 2024,
Eurobank
Holdings
announced
that
its Board
of
Directors
decided
the initiation
of the
merger
process
of
Eurobank Holdings with
the Bank through
absorption of the
former by the
latter,
in order that
operational efficiencies
and a leaner
group structure
be achieved. The merger
will be implemented
with a combined
application of Law 4601/2019
and article 16 of
Law
2515/1997 and 31 December 2024, was defined as the merger transformation
balance sheet date.
Upon the completion of the merger a) Eurobank Holdings ceases to exist and its shareholders
become shareholders of the Bank with
the same stakes and the same number of shares, receiving the entirety of Bank’s newly issued shares and b) the Bank, that will retain
its banking license, substitutes
Eurobank Holdings as
universal successor in
the totality
of its assets and
liabilities transferred
to the
Bank, as
they appear
in the
transformation
balance sheet
of Eurobank
Holdings and
as it
is formulated
until the
completion of
the
merger.
Before the completion of the merger,
the shares of the Bank will be listed in the Athens
Exchange and upon its completion, they
will
be distributed to
Eurobank Holdings shareholders
in exchange of
the Eurobank Holdings shares
they possess at a
ratio of one
newly
issued share of the Bank for one existing share of Eurobank
Holdings.
Notes to the Consolidated Financial Statements
.
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The
completion
of
the
merger
is
subject
to
all
necessary
by
Law
approvals,
including
the
approval
of
the
shareholders’
General
Meeting of both merging companies as well as the receipt of
all the necessary approvals of the competent Authorities.
24.
Investments in associates and joint ventures
.
.
As at 31 December 2024, the
carrying amount of the Group’s investments in associates and joint ventures amounted to € 203 million
(2023: € 541 million). The following is the listing of the Group’s
associates and joint ventures as at 31 December 2024:
.
Name
Country of
incorporation
Line of business
Group's
share
Femion Ltd
Cyprus
Special purpose investment vehicle
66.45
Global Finance S.A.
Greece
Investment financing
33.82
Odyssey GP S.a.r.l.
Luxembourg
Special purpose investment vehicle
20.00
Eurolife FFH Insurance Group Holdings S.A.
Greece
Holding company
20.00
Alpha Investment Property Commercial Stores S.A.
Greece
Real estate
30.00
Peirga Kythnou P.C.
Greece
Real estate
50.00
doValue Greece Loans and Credits Claim Management S.A.
Greece
Loans and Credits Claim Management
20.00
Perigenis Business Properties S.A.
Greece
Real estate
18.90
Note: In the first half of 2024, in the context of Solar securitization (note 20), the Group along with the other Greek systemic banks established “REOCO SOLAR
S.A.”
with its
holding percentage
amounting to
23.4%. The
company’s operating
activities are
expected to
commence upon
the completion
of the
relevant
securitization transaction.
Omega Insurance
and Reinsurance
Brokers
S.A. in which
the Group
holds 26.05% is
not accounted
under the
equity method in
the
consolidated financial statements. The Group is
not represented in the
Board of Directors of
the company, therefore does not exercise
significant influence over it.
Femion Ltd.
is accounted
for as
a joint
venture of
the Group
based on
the substance
and the
purpose of
the arrangement
and the
terms of the
shareholder’s agreement which require the
unanimous consent of
the shareholders for significant
decisions and establish
shared control through the equal representation
of the shareholders in the management bodies of the company.
Perigenis Business Properties
S.A. is accounted
for as an
associate of the
Group based
on the Bank’s
representation
in the Board
of
Directors and the decision-making process as prescribed
in the company’s articles of association.
Hellenic Bank Public Company Ltd, Cyprus
Hellenic Bank
Public Company
Ltd (“Hellenic
Bank”), was
accounted for
as a Group’s
associate under
the equity
method from
April
2023 until 30
June 2024. During
June 2024, the
Group acquired
an additional holding
of 26.28% in
Hellenic Bank, and
as a result
its
participation percentage in the
company’s share
capital reached 55.48%. As of
30 June 2024, the Group assessed that
it still had not
obtained control over the company, therefore Hellenic Bank
was accounted for as
an associate under
the equity method
of accounting
(further information is provided in note
23.2).
The
difference
between:
a)
the
additional
26.28%
share
of
the
fair
value
of
the
Hellenic
Bank
group’s
net
identifiable
assets,
amounting to
€ 383.3 million
and b) the
cost of
the additional Bank’s
holding in the
entity amounting
€ 277.7 million,
resulted in
a
gain
of
€
99.4
million
net
of
€
6.2
million
acquisition
related
costs
that
was
recognized
in
the
income
statement
line
“Other
income/(expenses)” (31 December 2023:
€ 111 million
gain, net of €
3 million acquisition
related costs, following the initial
application
of the equity accounting).
In the period that
ended on 30 June
2024, the last date
that Hellenic Bank group
was accounted for
as an associate, the
share of its
results
referred
to the
period from
30 September
2023 to
31 March
2024, as
they were
based on
its available
published financial
information. Accordingly,
in the third
quarter of 2024,
the share
of results
of the Hellenic
Bank group
has been adjusted
to include
the share
of results
for the
second quarter
of 2024
based on
its published
financial information.
As a
result, in
the year
ended 31
December 2024, the Group’s
share of results of the Hellenic Bank
group presented in the
income statement line
“Share of results of
associates and joint ventures”,
amounted to € 133 million gain (31 December 2023: € 58 million gain).
Associates and joint ventures material to
the Group
With regards to the Group’s associates and joint ventures,
Eurolife FFH Insurance Group Holdings S.A. and doValue Greece Loans and
Credits Claim Management
S.A. are considered
individually material for
the Group. Financial
information regarding
those entities is
provided in the tables below:
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Eurolife FFH Insurance Group Holdings S.A.
2024
2023
€ million
€ million
Current assets
3,544
3,387
Non-current assets
290
353
Total assets
3,834
3,740
Current liabilities
389
380
Non-current liabilities
2,783
2,683
Total liabilities
3,172
3,063
Equity
662
677
Group’s carrying amount of the investment
132
135
Operating income
211
223
Net profit
90
112
Other comprehensive income
(46)
(18)
Total comprehensive
income
45
94
Dividends paid to the Group
12
7
doValue Greece Loans and Credits
Claim Management S.A.
2024
2023
€ million
€ million
Current assets
212
153
Non-current assets
309
323
Total assets
521
476
Current liabilities
117
157
Non-current liabilities
86
60
Total liabilities
203
217
Equity
318
259
Group's share in equity
64
52
Goodwill and other adjustments
(6)
(4)
Group’s carrying amount of the investment
58
48
Operating income
110
79
Net profit
56
57
Total comprehensive
income
56
57
Dividends paid to the Group
-
5
Note:
Goodwill and other
adjustments comprise a) €
6 million Goodwill included
in the carrying amount
of the investment, and b)
€ -12 million adjustment from
the elimination of the Group’s
share of the associate’s
income relating to upstream
transactions with the Bank,
of which € 2
million (loss) was recognised in
2024. The Group’s share of
the associate’s results after the
above adjustments, including
cut off differences, amounts
to € 10 million
income (2023: € 7.5
million
income).
The carrying amount, in aggregate, of the Group's joint ventures as at 31 December 2024 amounted to € 4 million (2023: € 4 million).
The Group’s share
of profit and loss and total comprehensive income of the
above entities was immaterial (2023: immaterial).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The
carrying
amount,
in
aggregate,
of
the
Group's
associates
excluding
Eurolife
FFH
Insurance
Group
Holdings
S.A.
and
doValue
Greece Loans and Credits Claim
Management S.A. which is
presented above (i.e. Global Finance
S.A., Odyssey GP S.a.r.l.,
and Perigenis
Business Properties
S.A.)
as at 31
December 2024 amounted
to €
9 million
(2023: € 9
million). The Group’s
share of
profit and
loss
and total comprehensive income of the above
entities was immaterial (2023: immaterial).
The Group has not recognized losses in relation
to its interest in its joint ventures,
as its share of losses exceeded its interest
in them
and no
incurred obligations
exist or
any payments
were performed
on behalf
of them. For
the year
ended 31
December 2024,
the
unrecognized share
of losses for the
Group’s
joint ventures
amounted to €
0.1 million (2023: €
0.1 million). The cumulative
amount
of unrecognized share of losses for
the joint ventures amounted to € 4 million
(2023: € 4 million).
As
at
31
December
2024,
the
Group
has
no
unrecognized
commitments
in
relation
to
its
participation
in
joint
ventures
nor
any
contingent liabilities regarding its participation
in associates or joint ventures, which could result to a future outflow
of cash or other
resources.
The Group’s associate
Eurolife FFH Insurance Group Holdings S.A is subject to regulatory
and statutory restrictions and is required
to
maintain sufficient capital to satisfy
its insurance obligations.
Except
as described
above, no
significant restrictions
exist (e.g.
resulting
from loan
agreements, regulatory
requirements
or other
contractual arrangements) on the ability of associates or joint ventures to
transfer funds to the Group either as dividends or to repay
loans that have been financed by the Group.
25.
Structured Entities
The Group is involved in various types of structured
entities, such as securitization vehicles, mutual funds and private
equity funds.
A structured
entity is
an entity that
has been
designed so
that voting
or similar rights
are not the
dominant factor
in deciding
who
controls the entity, such as when any voting rights
relate to administrative tasks only and the relevant activities are
directed by means
of contractual arrangements. A structured entity often has restricted activities, a narrow well-defined objective, insufficient equity to
permit it
to finance
its activities
without subordinated
financial support
and financing
in the
form
of multiple
contractually
linked
instruments to investors
that create concentrations
of credit or other risks.
An
interest
in
a
structured
entity
refers
to
contractual
and non-contractual
involvement
that
exposes
the
Group
to
variability
of
returns from
the performance
of the
structured
entity.
Examples of
interest
in structured
entities include
the holding
of debt
and
equity instruments, contractual arrangements,
liquidity support, credit enhancement, residual value.
Structured entities may be established
by the Group or by a third party and are
consolidated when the substance of the relationship
is such that the structured entities are controlled by the Group, as set out in note 2.2.1(i). As a result of the consolidation assessment
performed, the Group has involvement
with both consolidated and unconsolidated structured
entities, as described below.
Consolidated structured entities
The
Group,
as
part
of
its
funding activity,
enters
into
securitization
transactions
of
various
classes of
loans
(corporate,
small
and
medium enterprise, mortgage, consumer loans, credit card and bond loans), which generally result in
the transfer of the above assets
to structured
entities (securitization
vehicles), which,
in turn
issue debt
securities held
by investors
and the
Group’s
entities.
The
Group monitors the credit quality of the securitizations’ underlying loans, as well as the credit ratings of the debt instruments issued,
when applicable,
and provides
either credit
enhancements to
the securitization
vehicles and/or
transfers
new loans
to the
pool of
their underlying assets, whenever necessary,
in accordance with the terms of the relevant
contractual arrangements in force.
A listing of the Group’s
consolidated structured entities is set out in note 23.
As at 31 December 2024, the face value of debt securities issued by the securitizations sponsored by the Group amounted
to € 2,724
million, of which € 2,171 million were held by the Bank (2023: € 3,959 million, of which € 3,406 million were held by the Bank) (notes
20 and 34).
The Group did not provide any
non contractual financial or other support
to these structured entities, where applicable,
and currently
has no intention to do so in the foreseeable future.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Unconsolidated structured entities
The
Group
enters
into
transactions
with
unconsolidated
structured
entities,
which
are
those not
controlled
by
the Group,
in
the
normal course of business, in order to provide
fund management services or take advantage
of specific investment opportunities.
Moreover,
the Group
in the
context of
its NPE
reduction targets
has
entered into
the securitization
of various
classes of
primarily
NPE loan portfolios originated or acquired by the Group
through the issue of senior,
mezzanine and junior notes (note 20).
Group managed funds
The Group establishes
and manages structured
entities in order
to provide customers,
either retail or
institutional, with investment
opportunities.
Accordingly,
through
its subsidiaries
Eurobank
Asset Management
Mutual Fund
Mngt
Company
S.A. and
Eurobank
Fund Management
Company
(Luxembourg)
S.A., it
is engaged
with the
management
of different
types of
mutual funds,
including
fixed income, equities, funds of funds and money market.
Additionally,
the Group
is entitled to
receive management
and other
fees and
may hold
investments
in such mutual
funds for
own
investment purposes as well as for the benefit
of its customers.
The Group is involved in the initial design of the mutual funds and, in its capacity as fund manager, takes investment decisions on the
selection
of
their
investments,
nevertheless
within
a
predefined,
by
relevant
laws
and
regulations,
decision
making
framework.
Τherefore, the Group has determined
that it has no power over these funds.
Furthermore,
in its
capacity as
fund manager,
the Group
primary acts
as an
agent in
exercising
its decision
making authority
over
them. Based on the above, the
Group has assessed that it has no
control over these mutual funds and as a
result does not consolidate
them. The Group does not have any contractual obligation to provide financial
support to the managed funds and
does not guarantee
their rate of return.
Non-Group managed funds
The Group purchases and
holds units of
third party managed
funds including mutual
funds, private equity and
other investment funds.
Securitizations
The Group has interests in unconsolidated securitization vehicles by investing in residential
mortgage backed and other asset-backed
securities issued by these entities.
The
table
below
sets
out
the
carrying
amount
of
the
Group’s
interests
in
unconsolidated
structured
entities,
recognized
in
the
consolidated
balance
sheet
as
at
31
December
2024,
representing
its
maximum
exposure
to
loss
in
relation
to
these
interests.
Information relating
to the
total income
derived from
interests in
unconsolidated
structured entities,
recognized either
in profit
or
loss or
other comprehensive
income during
2024 is also
provided (i.e.
fees, interest
income, net
gains or
losses on revaluati
on and
derecognition):
31 December 2024
Unconsolidated structured entity type
Securitizations
Group managed
funds
Non- Group
managed funds
Total
€ million
€ million
€ million
€ million
Group's interest-
assets
Loans and advances to customers
4,387
-
-
4,387
Investment securities
2,008
89
113
2,210
Other Assets
-
2
-
2
Total
6,395
91
113
6,599
Total
comprehensive income from Group interests
158
77
3
238
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
Unconsolidated structured entity type
Securitizations
Group managed
funds
Non- Group
managed funds
Total
€ million
€ million
€ million
€ million
Group's interest-
assets
Loans and advances to customers
4,454
-
-
4,454
Investment securities⁽¹⁾
1,517
85
28
1,630
Other Assets
-
2
-
2
Total
5,971
87
28
6,086
Total
comprehensive income from Group interests
123
62
0
185
(1)
It includes asset-backed
securities held by Group
entities from third-party
issuances; comparative information has
been adjusted to
align with the
current
year’s presentation.
For
the
year
ended
31 December
2024, total
comprehensive
income
related
to
the
Group’s
interests
from
securitizations
mainly
includes: (i) € 147.3 million
interest income of debt securities retained by the Group measured at amortized cost,
at FVOCI and FVTPL,
(ii)
€
3.1
million
from
gains
or
losses
on
revaluation
recognized
in
other
comprehensive
income
and
(iii)
€
7.4
million
gain
on
revaluation of mezzanine
securitization notes. Total
income from Group interests
in relation to Group
managed funds consists of: (i)
€ 70.2 million income referring to management and related fees for
the Group managed funds and (ii) € 7.3 million gains or losses on
revaluation or from sale of the Group’s holding in funds recognized in profit or loss. In addition, total income in relation to non-Group
managed funds consists mainly of gains or losses on revaluation or from sale of
the Group’s holding in funds and has been recognized
in profit or loss.
As at 31 December 2024, the total assets of funds under the Group’s
management amounted to € 5.9 billion (2023: € 4.3 billion).
For the securitization notes included in the balance sheet line “Loans and advances to customers”,
referring to the senior,
mezzanine
and junior notes of the
securitizations of loans
originated by Group
entities (note 20), the notional
amount of total
issuances by the
unconsolidated
securitization vehicles
amounted to
€ 15.2 billion
(2023: € 14.0
billion). As
at 31
December 2024
and 2023,
for the
securitization
notes included
in the
balance sheet
line “Investment
securities” the
Group did
not hold
a significant
position of
the
notional amount of total issuances by the unconsolidated
securitization vehicles.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
26.
Property and equipment
31 December 2024
Land, buildings,
leasehold
improvements
Furniture,
equipment,
motor
vehicles
Computer
hardware,
software
Right of use assets
(RoU)⁽¹⁾
Total
€ million
€ million
€ million
€ million
€ million
Cost:
Balance at 1 January
697
191
316
338
1,542
Arising from acquisitions (note 23)
148
54
51
15
268
Transfers
21
(3)
3
-
21
Transfers from/to repossessed assets
2
(1)
-
-
1
Additions
26
21
26
15
88
Disposals, write-offs and adjustment to RoU ⁽¹⁾
(16)
(7)
(2)
7
(18)
Impairment
-
-
(5)
-
(5)
Balance at 31 December
878
255
389
375
1,897
Accumulated depreciation:
Balance at 1 January
(220)
(140)
(241)
(168)
(769)
Arising from acquisitions (note 23)
(1)
(45)
(42)
(8)
(96)
Transfers
0
1
-
-
1
Disposals, write-offs and adjustment to RoU ⁽¹⁾
11
7
2
3
23
Charge for the year
(15)
(11)
(21)
(34)
(81)
Balance at 31 December
(225)
(188)
(302)
(207)
(922)
Net book value at 31 December
653
67
87
168
975
31 December 2023
Land, buildings,
leasehold
improvements
Furniture,
equipment,
motor
vehicles
Computer
hardware,
software
Right of use assets
(RoU)⁽¹⁾
Total
€ million
€ million
€ million
€ million
€ million
Cost:
Balance at 1 January
676
206
526
328
1,736
Arising from acquisitions
33
1
1
2
37
Transfers
3
-
14
-
17
Additions
28
15
11
11
65
Disposals, write-offs and adjustment to RoU⁽¹⁾
(6)
(21)
(217)
20
(224)
Impairment
(1)
-
(9)
-
(10)
Discontinued operations
(36)
(10)
(10)
(23)
(79)
Balance at 31 December
697
191
316
338
1,542
Accumulated depreciation:
Balance at 1 January
(221)
(156)
(443)
(141)
(961)
Arising from acquisitions
-
(1)
-
-
(1)
Transfers
1
0
(1)
-
0
Disposals, write-offs and adjustment to RoU⁽¹⁾
4
20
217
2
243
Charge for the year
(13)
(8)
(20)
(37)
(78)
Discontinued operations
9
5
6
8
28
Balance at 31 December
(220)
(140)
(241)
(168)
(769)
Net book value at 31 December
477
51
75
170
773
(1)
The respective lease liabilities are presented in “other
liabilities” (note 35). Adjustment to RoU
refers to termination, modifications and remeasurements of
RoU. It includes the remeasurement from
revised estimates of the lease term
during the year, considering all
facts and circumstances that affect
the Group’s
housing needs.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
As at
31 December
2024, the
RoU assets
amounting to
€ 168
million (31
December 2023:
€ 170
million) refer
to leased
office and
branch premises, ATM
locations, residential properties
of € 159 million (31 December 2023: € 165
million) and motor vehicles of € 9
million (31 December 2023: € 5 million).
Leasehold improvements relate to
premises occupied by the Group for its own activities.
27.
Investment property
The
Group
applies
the
fair
value
model
regarding
the
measurement
of
Investment
Property
according
to
IAS
40
“Investment
property”.
The movement of investment property
is as follows:
2024
2023
€ million
€ million
Balance at 1 January
1,357
1,410
Additions
8
4
Arising from acquisition (note 23)
84
19
Transfers
from/to repossessed assets
33
2
Other transfers
(20)
(3)
Disposals
(41)
(80)
Net gain/(loss) from fair values adjustments
9
6
Held for sale/Discontinued operations
(26)
(3)
Additions and adjustment to RoU
-
2
Balance at 31 December
1,404
1,357
As at 31 December
2024, RoU assets
that meet the definition
of investment
property amount to
€ 17 million (31
December 2023: €
16 million). The respective lease liabilities are presented
in “other liabilities” (note 35).
Changes
in
fair
values
of
investment
property
are
recognized
as
gains/(losses)
in
profit
or
loss
and
included
in
the
"Other
Income/(expense)" (note 10). All gains/(losses) are
unrealized.
During
the year
ended 31
December 2024,
an amount
of €
90 million
(2023: €
89 million)
was
recognized
as rental
income from
investment property in income from
non banking services (note 8).
The main classes of investment property have
been determined based on the nature, the characteristics
and the risks of the Group’s
properties. The
fair value
measurements of
the Group’s
investment property,
which are categorized
within level
3 of the
fair value
hierarchy,
are presented in the below table.
2024
2023
€ million
€ million
Residential
4
6
Commercial
1,373
1,320
Land Plots
27
30
Industrial
-
1
Total
1,404
1,357
The
basic
methods
used
for
estimating
the
fair
value
of
the
Group’s
investment
property
are
the
income
approach
(income
capitalization/discounted
cash flow
method), the
comparative
method and
the cost
approach, which
are also
used in
combination
depending on the class of property being valued.
The discounted cash flow (DCF) method is the primary method used for estimating
the fair value of the Group’s
investment property
and is used mainly
for the commercial class of investment property but also
for other classes of investment property to a
large extent,
in conjunction
with other methods.
Under DCF method,
the fair
value is
calculated through
the projection
of a series
of cash
flows
using explicit
assumptions
regarding
the benefits
and liabilities
of ownership
(income and
operating
costs,
vacancy
rates,
income
growth),
including
the
residual
value
anticipated
at
the
end
of
the
projection
period.
To
this
projected
cash
flows
series,
an
appropriate, market-derived discount
rate is applied to establish its present
value.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Under
the
income
capitalization
method,
also
used
for
the
commercial
class
of
investment
property,
a
property’s
fair
value
is
estimated based on the
normalized net operating
income generated by
the property,
which is divided by the capitalization
rate (the
investor's rate of
return).
The comparative method is used for the residential, commercial and land plot classes of investment
property. Fair value
is estimated
based on data for
comparable transactions, by
analyzing either real transaction
prices of similar properties,
or by asking prices after
performing the necessary adjustments.
The cost approach is used
for estimating the fair value of
the residential and the industrial
classes of the Group’s investment property.
This approach refers to the
calculation of the
fair value based on
the cost of
reproduction/replacement (estimated construction costs),
which is then reduced by an appropriate rate
to reflect depreciation.
The Group’s
investment
property valuations
are performed
taking into
consideration the
highest and
best use of
each asset that
is
physically possible, legally permissible and financially feasible.
The main method used to estimate the fair value of Group’s Investment property portfolio as at 31 December 2024, is
the discounted
cash flow method. Significant unobservable inputs used in the fair value measurement of the
relevant portfolio are the rental income
growth and the discount
rate. Increase in rental
income growth would result
in increase in the carrying
amount while an increase in
the discount rate would have the
opposite result. The discount rate used
ranges from 7% to 12%.
As at 31
December 2024, an increase
or decrease
of 5% in
the discount
rate used
in the DCF
analysis, would
result in
a downward
or upward
adjustment of
the carrying
value of the respective investment
properties by € 33 and € 35.4 million, respectively.
In the context of properties’ valuation, sustainability and environmental matters encompass a wide
range of physical, climate change,
social, corporate responsibility and economic factors, including key
environmental risks such as flooding, energy efficiency,
as well as
matters of design, configuration, accessibility and legislation, that impact their value. The Group is gradually upgrading its real-estate
portfolio, aiming to reduce its environmental footprint and shift towards high-end, modern, environmentally friendly buildings, given
that such buildings are in
high demand. In addition,
the Group has introduced “green” certifications to its real
estate assets, validating
their sustainability value and at the same time maximizing their return and market value. On the other hand, environmental
risks are
taken into
account in properties’ valuation
in cases where there
is an indication that
the valued property is
subject to physical
risks,
such as floods, is contaminated or is adversely
affected by existing environmental
laws/regulations.
On an
annual
basis,
the
Group
aims at
the
evaluation
of
an
increased
number
of
selected
properties
included
in
the
investment
property portfolio
for their
gradual certification
in accordance with
international standards,
while actively investing
to improve
the
energy efficiency of its properties’ portfolio and its
environmental profile.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
28.
Intangible assets
As at 31 December
2024, the carrying
amount of intangible assets
was € 415 million
(31 December 2023: € 334
million), comprising
€ 373 million computer software, which refer
to purchased and developed software,
and € 42 million goodwill (31 December 2023 €
44 million).
The table below presents the movement of computer
software:
2024
2023
€ million
€ million
Cost:
Balance at 1 January
515
658
Arising from acquisitions (note 23)
107
1
Transfers
(2)
(14)
Additions
117
83
Disposals and write-offs
(13)
(142)
Impairment
(13)
(8)
Discontinued operations
(63)
Balance at 31 December
711
515
Accumulated amortisation:
Balance at 1 January
(225)
(362)
Arising from acquisitions (note 23)
(74)
Transfers
-
1
Amortisation charge for the year
(51)
(42)
Disposals and write-offs
12
142
Discontinued operations
-
36
Balance at 31 December
(338)
(225)
Net book value at 31 December
373
290
Impairment testing of goodwill
As at
31 December
2024, the
carrying amount
of goodwill
in the
Group is
€ 42
million, arising
from the
acquisition of
BNP Paribas
Personal Finance Bulgaria by Eurobank
Bulgaria A.D in May 2023, and is attributed to the Group’s
International, Bulgaria segment.
For the purpose of impairment testing,
goodwill is fully allocated to
the Consumer Lending business of Eurobank
Bulgaria A.D, being
the CGU
that
is expected
to benefit
from
the abovementioned
business
combination.
No impairment
losses of
the CGU
to which
goodwill has been allocated were identified during the year
ended 31 December 2024.
In particular,
the recoverable amount
of the CGU was determined to be its fair
value less costs of disposal, calculated
by discounting
the future cash
flows expected to
be generated
from the continuing
use of the
CGU’s
assets and their
ultimate disposal.
The CGU’s
future cash flows for a three-year period are in accordance with the officially approved three-year business plan, which already takes
into account
factors such
as expected market
growth, inflation, as
well as expectations
of future outcomes
taking into
account past
experience. A long-term growth rate (terminal value growth rate)
was used to extrapolate cash flows beyond the three-year
horizon.
The
terminal
value
growth
rate
is
determined
by
considering
factors
such
as
the
expected
long-term
inflation
rate
and real
-GDP
growth rate in
Bulgaria. The discount rate
applied is constructed using the Capital
Assets Pricing Model methodology (CAPM), based
on the
rate
of 10-year
Bulgarian government
bonds, adjusted
for
a risk
premium
to reflect
both the
increased
risk of
investing
in
equities generally and the systematic risk of the specific CGU. The discounting of the budgeted cash flows and terminal values is
done
on an after-tax cash flow basis.
The key assumptions used in the calculation of the CGU’s
fair value less costs of disposal were as follows:
Budgeted operating income growth
(average for the 3-year period)
Discount Rate
Growth rate beyond
initial cash flow
Key assumption value
9.0%
14.5%
2.0%
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Cost of disposal
is calculated
as a percentage
of the CGU’s
assets and is
based on observed
averages from
global industry practices
(2-4% range).
The values assigned
to the above
key assumptions
represent Management’s
assessment of future
trends in the
relevant sector
and
have been based on historical data
from both external and internal sources.
The recoverable
amount of
the CGU to
which goodwill
has been allocated
is sensitive to
the above
key assumptions.
A decrease in
the operating income by 5% or an
increase in the discount rate of 1% are considered reasonably possible
changes in key assumptions.
If the aforementioned changes occur,
goodwill of the remaining CGU will continue to be recoverable.
The key assumptions described above may change as economic and market
conditions change. The Group estimates that reasonably
possible changes in these assumptions would not cause the recoverable amount of either CGU to decline
below the carrying amount.
29.
Other assets
2024
2023
€ million
€ million
Receivable from Deposit Guarantee and Investment
Fund
70
286
Repossessed properties and relative prepayments
541
509
Pledged amount for a Greek sovereign risk financial guarantee
242
236
Balances under settlement⁽¹⁾
55
53
Deferred costs and accrued income
144
85
Other guarantees
262
215
Income tax receivable⁽²⁾
98
58
Insurance and reinsurance contract assets (note 36)
30
-
Other assets⁽³⁾
253
325
Total
1,695
1,767
(1)
Includes settlement balances with customers and brokerage activity.
(2)
Includes withholding taxes, net of provisions.
(3)
Includes provisional fair value adjustments for Hellenic Bank group assets (decrease) of
ca. € 66 million (note 23.2).
Pursuant
to Law
4370/2016 as
in force,
in December
2024, an
amount of
€ 215
million was
refunded
to the
Bank by
the Hellenic
Deposit and Investment Guarantee Fund
(HDIGF) referring to the receivable for
the “Supplementary Deposit Cover Fund”.
As at 31 December 2024, other assets net of provisions, amounting to
€ 253 million include, among others, receivables related
to (a)
prepayments to suppliers, (b) public entities,
(c) property management activities (d)
legal cases and e) the
sale of the Bank’s Merchant
Acquiring Business in 2022 .
30.
Disposal groups classified as held for sale and discontinued operations
2024
2023
€ million
€ million
Assets of disposal groups
Real estate properties
33
37
Loans portfolios (note 20)
46
169
IMO Property Investments Bucuresti S.A.
12
-
Total
91
206
Liabilities of disposal groups
IMO Property Investments Bucuresti S.A.
2
-
Other liabilities related to loans portfolios (notes 20 and 35)
1
1
Total
3
1
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Real estate properties
In the context of its strategy for the active management of its real
estate portfolio (repossessed, investment properties and own used
properties), the Group
has gradually classified as
held for sale certain
pools of real estate
assets of total
remaining carrying amount
ca. € 33 million as at
31 December 2024 (31 December 2023: €
37 million), after their remeasurement
in accordance with the IFRS 5
requirements.
The Group remains
committed to
its plan to sell
the aforementioned
assets, which are gradually
being disposed, and undertakes
all
necessary actions towards this direction.
The above
non-recurring fair
value measurements
were categorized
as Level 3
of the fair
value hierarchy
due to the
significance of
the unobservable inputs used, with no change occurring up to 31 December 2024.
IMO Property Investments Bucuresti S.A., Romania
In
June
2024,
the
sale
of
IMO
Property
Investments
Bucuresti
S.A.
was
considered
highly
probable,
therefore
the
company
was
classified as held for sale in accordance with IFRS 5. Accordingly, in the second quarter of 2024, a remeasurement/impairment loss of
€ 9.4 million on
real estate
properties was recognised
in the income statement
line “Other impairments,
risk provisions and related
costs”.
Discontinued operations
In the year
ended 31 December 2024,
an additional provision
of € 10 million
(€ 7.1 million net
of tax) was
recognized, in
relation to
the sale of a
Bank’s former
subsidiary,
previously presented
as a discontinued
operation, based on
specific indemnity clauses in
the
relevant Sale Purchase Agreement.
Eurobank Direktna a.d. disposal group
As of
31 March
2023, the
assets of
Eurobank
Direktna a.d.
and the
associated liabilities,
which formed
part of
the share
purchase
agreement signed by the
Bank with AIK
Banka a.d. Beograd, were
classified as held
for sale and presented as
a discontinued operation.
The subsidiary was the major part of the Group’s
operations in Serbia, which are presented
in the International segment.
Until the completion of the sale, the net loss of Eurobank
Direktna a.d. disposal group for 2023 amounted
to € 47 million, of which €
12 million was attributable to non controlling
interests.
On
2
November
2023,
following
the
receipt
of
the
approvals
by
all
competent
regulatory
authorities,
the
sale
of
the
Group’s
shareholding in Eurobank Direktna to AIK
Banka a.d. Beograd was completed for a
cash consideration of € 188.7
million, net of related
costs. Following the remeasurement losses
of € 63.5
million recognized until 31 October
2023, in accordance with
IFRS 5 requirements
the resulting
loss from
the sale amounted
to € 123
million before
tax, including
the recyclement
to the income
statement
of € 124
million cumulative losses (mainly currency translation
differences), previously recognized
in other comprehensive income.
31.
Due to central banks
In December
2024, the
Group fully
repaid its
secured borrowing
under the
TLTRO
III refinancing
program
of the
European Central
Bank (ECB) (31 December 2023: € 3.7 billion outstanding principal under TLTRO
III program).
32.
Due to credit institutions
2024
2023
€ million
€ million
Secured borrowing from credit institutions⁽¹⁾
1,952
2,428
Borrowings from international financial and similar institutions
457
379
Deposits from banks received as collateral⁽¹⁾
118
87
Current accounts and settlement balances with banks
104
79
Interbank takings
169
105
Total
2,800
3,078
(1)
The amounts presented are after offsetting (note 5.2.1.4).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Borrowings from international
financial and similar institutions include
borrowings from European
Investment Bank, European
Bank
for Reconstruction and Development
and other similar institutions.
33.
Due to customers
2024
2023
€ million
€ million
Savings and current accounts
49,993
37,238
Term deposits
28,604
20,209
Carrying amount
78,597
57,447
Fair value changes of deposits in portfolio hedging
of interest rate risk
(4)
(5)
Total
78,593
57,442
For the year
ended 31 December
2024, due to
customers for
the Greek and
International operations
amounted to
€ 43,287 million
and € 35,306 million, respectively (2023: € 39,950 million and € 17,492 million, respectively).
34.
Debt securities in issue
2024
2023
€ million
€ million
Securitisations
554
555
Subordinated notes (Tier 2)
1,758
1,296
Medium-term notes (EMTN)
4,664
2,905
Credit linked notes
80
-
Total
7,056
4,756
Subordinated Tier 2 notes
In January 2024, the Company announced the issuance of a € 300 million subordinated Tier II debt instrument which matures in April
2034, is callable
at par
in April 2029
offering a
coupon of
6.25% per annum
and is listed
on the Luxembourg
Stock Exchange’s
Euro
MTF market. On the same date, the Bank issued a subordinated instrument
of equivalent terms, held by the Company.
The proceeds
from
the
issue
support
Eurobank
Holding’s
Group
strategy
to
ensure
ongoing
compliance
with
its
total
capital
adequacy
ratio
requirements and are
used for the Bank’s
general funding purposes.
Further information about
the issue is provided
in the relevant
announcement published in the Company’s website
on 19 January 2024.
As at 31 December 2024, Tier
II subordinated instruments include notes issued by Hellenic Bank with nominal value €
200 million, out
of which
€ 33
million were
held by
Group
entities. The
notes were
issued in
March
2023 at
par offering
a coupon
of 10.25%
per
annum,
mature
in
14
June
2033,
are
callable
at
par
for
a
3-month
period
commencing
on
14
March
2028
and
are
listed
on
the
Luxembourg Stock Exchange’s
Euro MTF market.
Medium-term notes (EMTN)
In March 2024, the Bank exercised its call option
on senior preferred notes of face
value of € 500 million.
In April 2024,
the Company announced
that Eurobank S.A.
successfully completed the
issuance of €
650 million senior
preferred notes.
The bond matures
on 30 April 2031,
is callable at
par on 30 April
2030 offering
a coupon of 4.875
% per annum
and is listed
on the
Luxembourg Stock Exchange’s
Euro MTF market. The
proceeds from the issue support
Eurobank Group’s
strategy to ensure
ongoing
compliance with its Minimum Required Eligible Liabilities (MREL) requirement and are used for Eurobank’s general funding purposes.
Further information about the issue is provided in the relevant announcement published in the Company’s
website on 24 April 2024.
In July 2024, the
Company announced that Eurobank S.A. successfully
completed a tap issue (“New
Bonds”) to the April 2024
issuance
of € 650 million fixed rate senior preferred notes (“Initial Bonds”). The New Bonds, of an aggregate principal amount of € 100 million,
will be
consolidated and
form a
single series with
the Initial
Bonds. Further
information about
the issue
is provided
in the
relevant
announcement published in the Company’s website
on 8 July 2024.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
In September
2024, the Company
announced that Eurobank
S.A. successfully completed
the issuance of
€ 850 million
Green senior
preferred
notes. The
bond matures
on 24
September 2030,
is callable
at par
on 24
September 2029
offering
a coupon
of 4
% per
annum and is
listed on
the Luxembourg
Stock Exchange’s
Euro MTF
market. The
proceeds from
the issue will
be used to
finance or
refinance
a
portfolio
of
Green
Eligible
Projects
selected
in
accordance
with
the
criteria
described
in
Eurobank’s
Green
Bond
Framework
and
will
support
Eurobank
Group’s
strategy
to
ensure
ongoing
compliance
with
its
MREL
requirement.
Further
information about the issue is provided in the relevant
announcement published in the Company’s website
on 18 September 2024.
In September
2024, Hellenic
Bank announced
the issuance
of €
100 million
senior preferred
notes, out
of which
€ 57
million were
held by Group entities.
The bond matures on
17 September 2026, offering a
coupon of 4
% per annum and
is listed on the
Luxembourg
Stock Exchange’s
Euro MTF market.
In December 2024 the Company announced that Eurobank S.A. successfully completed the issuance of € 600 million senior preferred
notes. The bond matures
on 12 March 2030, is callable
at par on 12 March
2029 offering a coupon of
3.25% per annum and is listed
on the Luxembourg Stock Exchange’s Euro MTF market. The
proceeds from the issue
will support Eurobank Group’s strategy to ensure
ongoing compliance with its MREL
requirements and will be used
for Eurobank’s general funding purposes. Further information about
the issue is provided in the relevant announcement
published in the Company’s website on 6 December 2024.
Credit linked note
In December
2024, the
Bank issued
a credit
linked note
(“CLN”) of €
80 million
that provides
credit protection
over the
mezzanine
tranche of a portfolio of performing SME and Large Corporate loans amounting
to € 1.1 billion (“Wave VI” transaction - note 20). The
credit
protection
to
the
Bank
is
provided
by
means
of
adjustments
(write-downs)
to
the
principal
balance
of
the
CLN,
after
the
occurrence of certain
credit events
in relation to
the protected
loans, pursuant to
the terms and
conditions of the
CLN. In addition,
the issued note matures in
July 2039, is callable in September 2029 and pays
a floating interest rate
(3-month Euribor plus spread of
9.39%) that also reflects the tranche protection
components, as specified in the terms and conditions of the CLN.
Post balance sheet events
Subordinated Tier 2 notes
In
January
2025,
the
Company
announced
that
it
has
successfully
priced
the
issuance
of
€
400
million
subordinated
Tier
II
debt
instruments (New
Instruments) which
mature in
April 2035, are
callable at par
from 30 January
2030 until 30
April 2030, offer
ing a
coupon
of
4.25%
per
annum
and
are
listed
on
the
Luxembourg
Stock
Exchange’s
Euro
MTF
market.
In
addition,
the
Company
announced an any
-and-all exchange
offer for
Hellenic Bank’s
outstanding €
200 million Tier
2 notes, out
of which €
33 million were
held by Group entities,
with additional Eurobank Holdings Tier
2 subordinated notes, issued under
a single series
and with same terms
with the € 400 million subordinated notes. The offer
period was set from 21 January 2025 until 27 January 2025.
On 28 January
2025, the Company
announced that it
has decided to
accept all existing
notes offered
for exchange,
pursuant to
the
exchange offer,
with nominal value of € 157 million. The nominal value of new
instruments to be issued is € 188.5 million, which will
form a single series with the New Instruments with a combined aggregate
nominal amount of € 589 million.
The
purpose
of
the
Exchange
Offer
and
the
issuance
of
the
Eurobank
Holdings
subordinated
notes
is
to
optimize
the
regulatory
efficiency of Eurobank Holdings’ capital base while the proceeds
will be used for general financing purposes.
Medium term notes (EMTN)
In
February
2025
Eurobank
S.A.
successfully
completed
the
issuance
of
€
350
million
senior
preferred
notes
through
a
private
placement. The bonds mature on 7 February 2036, are callable at par on 7 February 2035
offering a coupon of 4% per annum and are
listed on the Luxembourg Stock Exchange’s
Euro MTF market. The proceeds from the issue will support Eurobank Group’s strategy
to
ensure ongoing compliance with its MREL requirements.
Notes to the Consolidated Financial Statements
.
147
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31 December 2024 Consolidated Financial Statements
35.
Other liabilities
2024
2023
€ million
€ million
Balances under settlement⁽¹⁾
439
380
Lease liabilities
190
190
Deferred income and accrued expenses
269
194
Other provisions
154
116
ECL allowance for credit related commitments (note
5.2.1.2)
63
48
Standard legal staff retirement
indemnity obligations and employee termination benefits
(note 37)
143
59
Sovereign risk financial guarantee
29
31
Income taxes payable
70
30
Deferred tax liabilities (note 13)
43
28
Trading liabilities
43
121
Insurance contract liabilities
108
-
Obligation relating to the acquisition of NCI in Hellenic Bank (note 23.2)
880
-
Other liabilities⁽²⁾
251
188
Total
2,682
1,385
(1)
Includes settlement balances relating to bank cheques and remittances, credit card transactions,
other banking and brokerage activities.
(2)
Includes provisional fair value adjustments for Hellenic Bank group liabilities (increase) of
ca. € 33 million (note 23.2).
As
at
31
December
2024,
other
liabilities
amounting
to
€
251
million
mainly
consist
of
payables
relating
with
(a)
suppliers
and
creditors, (b) contributions to insurance
organizations, and (c) duties and other taxes.
In the context
of its non-performing exposures
(NPE) securitizations (Pillar,
Cairo, Mexico), and
as is customary for
the seller in such
types
of transactions,
the Bank
has provided
representation
and warranties
(R&Ws)
to the
investors
in respect
of the
underlying
loans, covering various
areas such as legality,
ownership and good
title of the loans,
accuracy of collateral
data etc., time-barred
up
to three
years
from the
transactions’
date. Accordingly,
as at
31 December
2024, the
Bank has
recognized
a prov
ision of
ca. €
22
million for potential losses in expectation
of such R&Ws realization (31 December 2023: € 12 million).
Considering that
the substantiation
and crystallization
of potential
amounts
under dispute
and final
agreement
between
involved
parties require significant time, the Group continues
to assess their impact as more information becomes available.
As at 31 December 2024, other provisions amounting to €
154 million (2023: € 116 million) mainly include: (a) € 33 million for claims
in dispute and
outstanding litigations against
the Group (note 43), (b)
€ 32 million relating to
the sale of Bank’s
former subsidiaries,
(c)
€
22
million
for
R&Ws
provided
to
investors
in
the
context
of
the
NPE
securitization
transactions,
d)
€
15
million
for
other
operational
risk events
e) €
12 million
relating
to contribution
to restoration
initiatives
after natural
disasters,
and f)
€ 27
million
relating to the participation in the Greek state’
s school renovation program
(note 11).
The movement of the Group's other provisions,
is presented in the following tables:
31 December 2024
Litigations and
claims in
dispute
Other
Total
€ million
€ million
€ million
Balance at 1 January
38
78
116
Arising from acquisition
8
5
13
Amounts charged during the year
3
59
62
Amounts used during the year
(13)
(12)
(25)
Amounts reversed during the year
(2)
(7)
(9)
Foreign exchange and other movements
(1)
(2)
(3)
Balance at 31 December
33
121
154
Notes to the Consolidated Financial Statements
.
148
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31 December 2024 Consolidated Financial Statements
31 December 2023
Litigations and
claims in
dispute
Other
Total
€ million
€ million
€ million
Balance at 1 January
28
52
80
Amounts charged during the year
21
34
55
Amounts used during the year
(5)
(7)
(12)
Amounts reversed during the year
(1)
-
(1)
Foreign exchange and other movements
(1)
(0)
(1)
Discontinued operations
(4)
(1)
(5)
Balance at 31 December
38
78
116
36.
Insurance contract (assets)/liabilities and reinsurance contract assets
Following
Hellenic Bank
group
inclusion in
the Company’s
consolidated
financial statements
from
the third
quarter
of 2024
(note
23.2), the Group assumed liabilities from insurance contracts issued that are presented within other liabilities
(note 35), and acquired
assets from reinsurance contracts
that are presented with other assets (note
29).
The Group applies the three
measurement models under IFRS
17 Insurance contracts
for the measurement of
its insurance contract
liabilities and reinsurance
contract assets,
i.e. the variable
fee approach
("VFA”),
the premium allocation
approach (“PAA”)
and the
general measurement model (“GMM”),
depending on the characteristics of each relevant
group of contracts.
The breakdown of the
insurance contract (assets)/liabilities and reinsurance
contract assets per line
of business and
per measurement
method applied, is set out below.
31 December 2024
Life
Non - Life
Net Insurance
contract
(assets)/liabilities⁽¹⁾
Reinsurance
contract assets
Insurance contract
liabilities
Reinsurance
contract assets
€ million
€ million
€ million
€ million
VFA
61
-
-
-
PAA
8
0
37
3
GMM
(1)
11
1
14
Total
68
12
38
17
(1)
It includes insurance contract assets of € 1 million.
The following table presents the
movement per line of
business for the period
1 July -
31 December 2024
of the net
insurance contract
(assets)/liabilities for remaining coverage
(“LRC”) and incurred claims (“LIC”) from insurance contracts issued.
Notes to the Consolidated Financial Statements
.
149
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31 December 2024 Consolidated Financial Statements
31 December 2024
Life
Non - Life
Liabilities for
remaining
coverage
Liabilities for
incurred
claims
Liabilities for
remaining
coverage
Liabilities
for incurred
claims
Total
€ million
€ million
€ million
€ million
€ million
Net insurance contract (assets)/liabilities
as at 1 July
62
12
6
25
104
Insurance revenue
(11)
-
(22)
-
(34)
Incurred claims and other
insurance service expenses
0
5
3
17
25
Insurance service result
(11)
5
(19)
17
(9)
Insurance finance expenses
(2)
3
0
1
2
Total changes in the income statement
(13)
8
(19)
18
(7)
Premiums received
11
-
22
-
33
Claims and other insurance
service expenses paid
(3)
(8)
(3)
(10)
(24)
Total cash flows
8
(8)
19
(10)
9
Net insurance contract (assets)/liabilities
as at 31 December
57
11
5
33
106
As at 31 December 2024, the net insurance contract (assets)/liabilities under the PAA
measurement model amounted to € 46 million
(1 July 2024 €
46 million), comprising
a) a LIC of
€ 41 million (1 July
2024 € 33 million)
including € 38 million
in relation to
estimates
of the
present
value of
the future
cash flows
and €
2 million
in relation
to risk
adjustment for
non-financial risk
(1 July
2024 €
31
million and € 2 million respectively) and b) a LRC of € 5 million (1 July 2024 € 13 million).
The following table presents the movement for
the period 1 July - 31 December 2024 of net insurance contract (assets)/liabilities
for
life business under the VFA
and GMM measurement models by measurement component.
Notes to the Consolidated Financial Statements
.
150
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31 December 2024 Consolidated Financial Statements
31 December 2024
Life
Estimates of PV of
future
cash flows
Risk
adjustment
Contractual
service
margin
Total
€ million
€ million
€ million
€ million
Net insurance contract (assets) /
liabilities as at 1 July
41
2
15
58
Contractual service margin (CSM)
recognised for services provided
-
-
(1)
(1)
Risk, experience and other adjustments
1
(0)
-
1
Changes that relate to current services
1
(0)
(1)
(0)
Contracts initially recognised in the period
(2)
0
2
0
Changes in estimates reflected in the CSM
(3)
0
3
(0)
Changes in estimates that do not adjust
the CSM
(0)
(0)
-
(0)
Changes that relate to future services
(5)
0
5
0
Adjustments to liabilities for
incurred claims
(2)
(0)
-
(2)
Insurance service result
(6)
0
3
(2)
Insurance finance expenses
0
0
1
1
Total changes in the income statement
(6)
0
4
(1)
Total cash flows
3
-
-
3
Net insurance contract (assets)/liabilities
as at 31 December
39
2
19
60
An analysis of insurance contracts issued that
are liabilities based on their contractual maturity is provided
in note 5.2.3
37.
Standard legal staff retirement indemnity obligations (SLSRI) and termination benefits
The Group provides for staff retirement indemnity obligation for its employees in Greece and abroad, who are entitled to a lump sum
payment
based on
the number
of years
of service
and the
level of
remuneration
at the
date
of retirement,
if they
remain in
the
employment of the Group until
normal retirement age, in accordance with the
local labor legislation. The
above retirement indemnity
obligations typically expose the Group to actuarial risks such as interest rate risk and salary risk. Therefore, a decrease in the discount
rate used to calculate
the present value of
the estimated future cash
outflows or an increase in
future salaries will increase the
staff
retirement indemnity obligations of
the Group.
In addition, the Group has
provided employee termination benefits mainly in respect of
the Voluntary Exit Schemes (VES), which have
been implemented through either
lump-sum payments or long-term
leaves during which the
employees will be
receiving a percentage
of a monthly salary, or a combination
thereof.
The table below presents the breakdown
of defined benefit obligations.
31 December
2024
31 December
2023
€ million
€ million
SLSRI obligation
21
22
Employee termination benefits
122
37
Total
143
59
The table
below presents
a reconciliation
from
the opening
to
the
closing balance
for
staff
retirement
indemnity
obligations
and
employee termination benefits.
Notes to the Consolidated Financial Statements
.
151
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Page
31 December 2024 Consolidated Financial Statements
2024
2023
€ million
€ million
Balance at 1 January
59
80
Arising from acquisition
-
1
Current service cost
3
3
Interest cost
2
2
Past service cost and (gains)/losses on settlements
132
6
Remeasurements:
Actuarial (gains)/losses arising from changes in financial assumptions
1
(1)
Actuarial (gains)/losses arising from changes in demographic assumptions
(0)
(0)
Actuarial (gains)/losses arising from experience and other adjustments
2
3
Benefits paid
(56)
(34)
Discontinued operations
-
(1)
Balance at 31 December
143
59
For SLSRI obligations the significant actuarial assumptions
(expressed as weighted averages)
were as follows:
2024
%
2023
%
Discount rate
3.0
3.6
Future salary increases
3.3
3.2
As at
31 December
2024, the
assumption for
the price
inflation
(weighted
average)
is 2.0%
(2023: 2.3%)
and has
been taken
into
account in determining the above actuarial assumptions for
future salaries increases.
As at 31 December 2024,
the average duration of the standard legal staff retirement indemnity obligation was 7 years (2023: 7 years).
A quantitative
sensitivity analysis
based on
reasonable
changes to
significant actuarial
assumptions as
at 31
December 2024
is as
follows:
An increase/(decrease) of the discount
rate assumed, by 50 bps/(50 bps),
would result in a (decrease)/increase of the
standard legal
staff retirement obligations
by (€ 0.8 million)/ € 0.8 million.
An increase/(decrease) of
the future salary
growth assumed, by
0.5%/(0.5%) would result
in an increase/(decrease)
of the standard
legal staff retirement
obligations by € 0.8 million/(€ 0.8 million).
The above sensitivity analysis is based on a change in an assumption while
holding all other assumptions constant. In practice,
this is
unlikely to occur,
and changes in some of the assumptions may be correlated.
The
methods
and
assumptions
used
in
preparing
the
above
sensitivity
analysis
were
consistent
with
those
used
to
estimate
the
retirement benefit obligation
and did not change compared to the previous year.
For
employee
termination
benefits,
the
discount
rate
(weighted
average)
is
the
significant
actuarial
assumption,
which
as
at
31
December 2024 stood at 2.5% (2023: 3.8%) based on the applicable tenor of the liabilities. On the same date, an increase/(decrease)
of the discount
rate assumed,
by 50 bps/(50
bps), would result
in a (decrease)/increase
of employee termination
benefits by (€
1.2
million)/ € 1.2 million.
Post balance sheet event
On 17 February
2025, Hellenic Bank
Public Company Limited
announced the launch
of a Voluntary
Exit Scheme (VES),
which will be
offered to employees of the bank
and its insurance subsidiaries.
38.
Share capital, share premium and treasury shares
As
at
31 December
2024, the
par value
of the
Company's
shares is
€ 0.22
per
share
(2023: €
0.22). All
shares
are
fully paid.
The
movement of share capital and share
premium is as follows:
Notes to the Consolidated Financial Statements
.
152
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Page
31 December 2024 Consolidated Financial Statements
Share capital
Share
premium
€ million
€ million
Balance at 1 January 2023
816.3
1,161.3
Share capital increase following the exercise of share options
1.3
0.1
Balance at 31 December 2023
817.6
1,161.4
Balance at 1 January 2024
817.6
1,161.4
Cancellation of treasury shares
(11.5)
(16.3)
Share capital increase following the exercise of share options
2.7
0.1
Balance at 31 December 2024
808.9
1,145.2
AGM decisions
On 23 July 2024, the Annual General Meeting (AGM) of the shareholders
of the Company, among others,
approved:
●
The cancellation
of 52,080,673
treasury shares
acquired in
2023 from
Hellenic Financial
Stability Fund.
Following the
said
cancellation, the share capital
and the share premium of the
Company decreased by € 11,457,748.06 and
€ 16,274,764.99,
respectively.
●
The distribution
of a
cash dividend
of €
342 million
from the
“Special Reserves”
account, following
the approval
received
from the European Central Bank (ECB) on 5 June 2024 (note 39). The said dividend corresponds to a 30% payout ratio of the
Group’s
net profit
for 2023
and a
gross dividend
of €
0.09333045 per
share, following
the above
cancellation of
treasury
shares.
●
The distribution
of € 404,330
to senior management
and employees of
the Company from
the “Special Reserves”
account
(note
39).
In
addition,
it
was
noted
in
AGM
that
the
respective
amount
that
was
approved
to
be
distributed
to
senior
management and employees of the Bank was € 26,237,474.
Share capital increase
Following the exercise of share options granted
to executives of the Group under the current share options’ plan (see below), and by
virtue
of
the decision
of
the
Board
of
Directors
of
the Company
on
30 August
2024, the
Company’s
share
capital
increased
by
€
2,714,189.50 through the issue of 12,337,225 new common voting shares of a nominal value of € 0.22 per
share and exercise price of
€ 0.23 per share.
The difference between
the exercise price
of the new
shares and their nominal
value, net of the
expenses directly
attributable to the equity transaction, amounted to € 100,899.18 and was recorded in the account “Share premium”. The new shares
were listed on the Athens Exchange
on 12 September 2024.
The following is an analysis of the movement in the number of the
Company’s shares outstanding:
Number of shares
Issued
Shares
Treasury
Shares
Net
Balance at 1 January 2023
3,710,677,508
(260,036)
3,710,417,472
Share capital increase following the exercise of share options
5,802,269
-
5,802,269
Buyback of shares held by HFSF
-
(52,080,673)
(52,080,673)
Other purchases of treasury shares
-
(5,740,696)
(5,740,696)
Sale of treasury shares
-
1,654,166
1,654,166
Balance at 31 December 2023
3,716,479,777
(56,427,239)
3,660,052,538
Balance at 1 January 2024
3,716,479,777
(56,427,239)
3,660,052,538
Share capital increase following the exercise of share options
12,337,225
-
12,337,225
Cancellation of treasury shares
(52,080,673)
52,080,673
-
Purchase of treasury shares
-
(1,475,008)
(1,475,008)
Sale of treasury shares
-
3,907,033
3,907,033
Balance at 31 December 2024
3,676,736,329
(1,914,541)
3,674,821,788
Treasury shares
Notes to the Consolidated Financial Statements
.
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As at 31 December 2024, the number of treasury shares held
by the Company’s subsidiary Eurobank
Equities Investment Firm Single
Member S.A. (in the ordinary course of its business), was 1,914,541 and its carrying amount (debit balance within reserves) was € 3.9
million (31 December 2023: € 101 million, including € 93.8 million referring to the aforementioned treasury shares acquired from the
HFSF). On the same
date, the number of
the Company’s shares held by
the Group’s associates in the ordinary
course of their insurance
and investing activities was 64,163,790 in total
(31 December 2023: 64,163,790).
39.
Reserves and retained earnings/losses
Statutory
reserves
Non-taxed
reserves
Fair value reserve
Other
reserves
Retained
earnings/(losses)
Total
€ million
€ million
€ million
€ million
€ million
€ million
Balance at 1 January 2023
270
829
(10)
2,077
1,495
4,660
Net profit
-
-
-
-
1,140
1,140
Transfers between reserves
(42)
(0)
(45)
64
24
-
Debt securities at FVOCI
-
-
83
-
-
83
Cash flow hedges
-
-
-
(2)
-
(2)
Foreign currency translation (note 30)
-
-
-
123
-
123
Gains/(losses) from equity securities at FVOCI
-
-
18
-
-
18
Associates and joint ventures
-Adoption of IFRS 9 “Financial Instruments” by a
Group’s associate
-
-
(7)
-
7
-
-changes in the share of other comprehensive
income, net of tax
-
-
9
(12)
0
(4)
Actuarial gains/(losses) on post employment
benefit obligations, net of tax
-
-
-
-
(2)
(2)
Share options plan
-
-
-
-
7
7
Purchase/sale of treasury shares
-
-
-
(100)
-
(100)
Other
(1)
-
(0)
(1)
(1)
(3)
Balance at 31 December 2023
227
829
48
2,147
2,670
5,920
Balance at 1 January 2024
227
829
48
2,147
2,670
5,920
Net profit
-
-
-
-
1,448
1,448
Arising from acquisition (note 23.2)
260
-
-
-
(260)
-
Transfers between reserves
44
1
(1)
383
(428)
-
Debt securities at FVOCI
-
-
22
-
-
22
Cash flow hedges
-
-
-
(1)
-
(1)
Foreign currency translation
-
-
-
-
0
0
Gains/(losses) from equity securities at FVOCI
-
-
(8)
-
-
(8)
Associates and joint ventures
-changes in the share of other comprehensive
income, net of tax
-
-
(5)
(3)
(0)
(8)
Actuarial gains/(losses) on post employment
benefit obligations, net of tax
-
-
-
(2)
(2)
Dividends (see below)
-
-
-
(342)
-
(342)
Changes in participating interest/consolidation
percentage in subsidiaries (note 23.2)
-
-
-
-
(134)
(134)
Share options plan (note 40)
-
-
-
-
18
18
Purchase/sale and cancellation of treasury shares
(note 38)
-
-
-
97
(64)
33
Other
-
-
-
-
(1)
(1)
Balance at 31 December 2024
532
830
57
2,281
3,246
6,945
As at 31 December 2024, other reserves comprise, among others, a) € 1,752 million reserves relating to dividends and gains from the
sale of participations
(2023: € 1,713
million), b) corporate law reserves
of
€ 8 million,
pursuant to the provisions
of the Greek
company
law
in
force
(2023:
€
8 million),
c) €
4 million
(debit
balance)
relating
to
the
carrying
amount
of
the
treasury
shares
held by
the
Company and
its subsidiary
Eurobank Equities
Investment
Firm Single
Member S.A.
(2023: €
101 million)
(note 38),
d) €
15 million
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
accumulated loss from cash flow hedging (2023: € 14 million accumulated loss) and e)
€ 3 million accumulated loss relating to foreign
operations’ translation differences
(2023: € 2 million accumulated loss).
Dividends/Shareholders’ remuneration
In the
third quarter
of 2024,
pursuant
to the
abovementioned
decisions of
the AGM
of the
shareholders
of the
Company,
a cash
dividend of € 342 million was distributed to the shareholders, corresponding to a 30% payout
ratio of the Group’s net profit
for 2023
and a gross dividend of € 0.09333045 per share.
In December 2024, the Bank proceeded with the distribution of non-mandatory
reserves for a total amount of € 240 million which
is
part of
the Banks’
overall
contribution to
its sole
shareholder,
Eurobank
Holdings, in
order
to enable
the latter
to remunerate
its
shareholders
out of
the profits
of the
financial year
2024, in
accordance with
the provisions
of article
162 par.
3 of
Company
Law
4548/2018.
Based on the
Group’s
financial performance
for the
financial year 2024,
Eurobank Holdings
intends to
remunerate
its shareholders
with an amount of € 674 million corresponding
to a 50% payout ratio of the
Group’s net profit
for 2024 less the negative goodwill
(€
99.5
million
gain
on
acquisition
of
a
shareholding
in
Hellenic
Bank),
subject
to
approval
of
the
Annual
General
Meeting
of
its
shareholders and the regulatory authorities. The final
remuneration will be a combination of cash and
share buyback.
40.
Share options
The Annual
General Meeting
of the
shareholders
of Eurobank
Holdings held
on 28
July 2020
approved
the establishment
of a
five
year shares
award
plan, starting
from 2021,
in the
form
of share
options rights
by issuing
new shares
with a
corresponding share
capital increase, in accordance with the provisions of article
113 of law 4548/2018, awarded to executives and personnel of Eurobank
Holdings and its affiliated companies according to article 32 of law 4308/2014. The maximum number
of rights that can be approved
was
set at
55,637,000
rights,
each of
which would
correspond
to
one new
share
with
exercise
price equal
to
€ 0.23.
The Annual
General
Meeting authorized
the Board
of Directors
of Eurobank
Holdings to
define the
eligible staff
and determine
the remaining
terms and conditions of the plan.
The
final
terms
and the
implementation
of
the
share
options
plan,
which
is
a
forward-looking
long-term
incentive
aiming
at
the
retention of key executives,
are defined and approved annually by the Board of Directors
in accordance with the applicable legal and
regulatory framework, as well as the policies of the
Group.
The options are exercisable in portions annually
during a period
from one to five years.
Each portion may be exercised wholly or
partly
and
converted
into
shares
at
the
employees’
option,
provided
that
they
remain
employed
by
the
Group
until
the
first
available
exercise
date.
Each
portion
is treated
as a
separate
award
with
a different
vesting
period
and different
fair
value.
The
corporate
actions that adjust the number and the price of shares also adjust
accordingly the share options.
The movement of share options during the year
is analysed as follows:
Share options granted
2024
2023
Balance at 1 January
26,863,702
22,268,322
Options awarded during the year
6,822,123
12,101,092
Options cancelled/expired during the year
-
(1,703,443)
Options exercised during the year
(12,337,225)
(5,802,269)
Balance at 31 December
21,348,600
26,863,702
In July
2024, the
Group
awarded to
its executives
6,822,123 new
share options,
exercisable
in annual
portions up
to 2029,
out of
which 3,076,786 options were exercised
during the third quarter of 2024.
From the total number of granted share options exercisable
in 2024, 12,337,225 options were exercised during the year , resulting in
the issue of an equal number of new common voting shares.
The share options outstanding at the end of the year totaled
to 21,348,600 (31 December 2023: 26, 863,702) and have the following
expiry dates:
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Share options
Expiry date ⁽¹⁾
31 December 2024
2025
6,194,066
2026
5,763,315
2027
5,763,177
2028
3,149,366
2029
478,676
Weighted average remaining contractual
life of share
options outstanding at the end of the period
23 months
(1)
Based on the earliest contractual exercise date.
In accordance
with the
Group’s
accounting policy
on employees’
share based
payments, the
grant date
fair value
of the
options is
recognized as an expense with a corresponding
increase in equity over the vesting period.
The fair
value at
grant date
is determined
using an
adjusted form
of the
Black-Scholes
model for
Bermudan equity
options which
takes
into account
the exercise
price, the
exercise
dates, the
term of
the option,
the share
price at
grant
date and
expected price
volatility of the underlying share, the expected dividend
yield and the risk-free interest
rate for the term of the options.
The weighted
average fair
value of the
share options
granted in
July 2024 was
€ 1.66 (2023:
€ 1.13). The
significant inputs
into the
model were a share price of € 2.021 (2023: € 1.442) at the grant date, exercise price of € 0.23, annualized dividend yield of 3% (2023:
3%), expected average
volatility of 32% (2023:
41%), expected option
life of 1-5 years,
and a risk-free
interest rate
corresponding to
the options’ maturities, based on the Euro swap yield curve. The expected
volatility is measured at the grant date
of the options and
is based on the average historical volatility
of the share price.
41.
Transfers
of financial assets
The Group
enters
into transactions
by which
it transfers
recognized
financial assets
directly to
third
parties or
to Special
Purpose
Entities (SPEs).
(a) The Group sells, in exchange
for cash, securities under an agreement
to repurchase them (repos)
and assumes a liability to repay
to the counterparty the cash received.
In addition, the Group pledges,
in exchange for cash, securities, covered bonds, as well
as loans
and receivables and assumes a liability to
repay to the counterparty
the cash received. The Group
may also transfer securities under
securities lending agreements with no exchange of cash or pledging of other financial assets as collateral.
For all the aforementioned
transactions, the
Group has
determined that
it retains
substantially all
the risks,
including associated
credit and
interest rate
risks,
and rewards of these financial assets and therefore has not derecognized them. As a result, the Group
is unable to use, sell or pledge
the transferred assets for the duration of the transaction. The related liability, where applicable, is recognized in Due to central banks
and credit institutions (notes 31 and 32), Due to customers
(note 33) and Debt securities in issue (note 34), as appropriate.
The Group
enters
into
securitizations
of various
classes of
loans
(corporate,
small and
medium enterprise,
consumer
and various
classes of non-performing loans), under which it assumes an obligation to pass on the cash flows from the loans to the holders of the
notes. The Group has determined that it retains substantially
all risks, including associated credit and interest rate risks,
and rewards
of these
loans and
therefore
has not
derecognized
them. As
a result
of the
above transactions,
the Group
is unable
to use,
sell or
pledge the
transferred
assets for
the duration
of their retention
by the
SPE. Moreover,
the note
holders' recourse
is limited
to the
transferred
loans. As at 31
December 2024, the carrying
value of the
securitizations’ issues held
by third parties
amounted to €
554
million (2023: € 555 million) (note 34).
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The table below sets
out the details of
Group's financial assets that
have been sold or
otherwise transferred to third parties, but
which
do not qualify for derecognition:
Carrying amount⁽¹⁾
2024
2023
€ million
€ million
Securities held for trading
-
11
Loans and advances to customers
2,801
9,947
-securitized loans
727
767
-pledged loans under covered bond program
1,794
3,832
-pledged loans with central banks
-
5,017
-other pledged loans
280
332
Investment securities
1,200
2,231
Carrying amount of assets
4,001
12,189
Associated liabilities⁽²⁾
2,954
7,969
(1)
The amounts presented above
do not include securitised loans
and assets pledged under cover
bond program or with
central banks, which
have not been
utilised for secured financing; comparative information has been adjusted accordingly.
(2)
Amounts are before offsetting repo agreements in the balance sheet against reverse repo deals of € 447 million (2023: € 1,210 million)
(note 5.2.1.4)
(b) The Group
may sell or
re-pledge any
securities borrowed
or obtained through
reverse repos
and has an
obligation to
return the
securities.
The
counterparty
retains
substantially
all
the
risks
and
rewards
of
ownership
and
therefore
the
securities
are
not
recognized by the Group.
As at 31 December 2024, the securities obtained through
reverse repo by the Group
of face value of € 583
million had not been sold or re-pledged (2023: € 1,413 million face value obtained
through reverse repo not sold or re
-pledged).
The
Group’s
financial
assets
pledged
as
collaterals
for
repos,
derivatives,
securitizations
and
other
transactions
other
than
the
financial assets presented in the table above are
provided in notes 17 and 29.
42.
Leases
Group as a lessee
The Group leases office and branch premises, ATM
locations, residential properties for the Group’s
personnel, and motor vehicles.
The majority of the Group’s property leases are under long term agreements (for a term of 12
years or more in the case of leased real
estate
assets),
with
options
to
extend
or
terminate
the
lease
according
to
the
terms
of
each
contract
and
the
usual
terms
and
conditions
of commercial
leases
applicable
in each
jurisdiction,
while motor
vehicles generally
have
lease terms
of up
to
4 years.
Extension options held by the Group are included in the lease term when it is reasonably certain that they will be exercised
based on
its assessment. For contracts having an indefinite remaining life, the lease term has been determined at an average
of 7 years for the
Bank,
after
considering
all relevant
facts
and circumstances.
For
new
or
modified
lease contracts
with
an
indefinite
life,
that
are
effective from the fourth quarter
of 2023
onwards, the estimated lease
term has been
revised to 5
years. Where applicable, depending
on the terms of each lease contract, lease payments are
adjusted annually in line with the consumer Price Index, as published by the
Greek Statistical Authority,
plus an agreed fixed percentage.
Information about the leases for which the Group
is a lessee is presented below:
Right-of-Use Assets
As at 31 December 2024, the right-of-use assets included
in property plant and equipment amounted to
€ 168 million (31 December
2023: € 170 million) (note
26), while those that
meet the definition of
investment property
amounted to € 17
million (31 December
2023: € 16 million) (note 27).
Lease Liabilities
The
lease liability
included under
other
liabilities
amounted
to
€ 190
million
as at
31 December
2024 (31
December 2023:
€
190
million) (note 35). The
maturity analysis of lease
liabilities as at 31
December 2024, based on
the contractual undiscounted cash flows,
is presented in note 5.2.3.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
Amounts recognised in profit or loss
Interest on lease liabilities is presented in note 6 and the lease expense relating to short term leases is ca. € 1.2 million (31 December
2023: € 1.2 million).
The Group had total cash outflows for
leases of € 41 million in 2024 (2023: € 44 million).
Group as a lessor
Finance lease
The Group leases out certain real estate
properties and equipment under finance leases, in its capacity as a lessor.
The maturity analysis of finance lease
receivables, based on the undiscounted lease payments to be
received after the reporting date,
is provided below:
2024
2023
€ million
€ million
Not later than one year
205
230
1-2 years
88
89
2-3 years
74
95
3-4 years
64
53
4-5 years
36
34
Later than 5 years
116
154
Lease Payments:
583
656
Gross investment in finance leases
583
656
Less: unearned finance income
(60)
(83)
Net investment in finance leases
523
573
Less: impairment allowance
(80)
(93)
Total
443
480
Operating Leases
The
Group
leases
out
its
investment
property
under
the
usual
terms
and
conditions
of
commercial
leases
applicable
in
each
jurisdiction.
When such
leases do
not transfer
substantially
all of
the risks
and rewards
incidental
to the
ownership
of the
leased
assets, the Group classifies these lease as
operating leases. Information relating to operating leases of investment property,
including
the rental income
recognised by the
Group during the
year, is provided in note
27. The
maturity analysis of
operating lease receivables,
based on the undiscounted lease payments to be received
after the reporting date, is provided below:
2024
2023
€ million
€ million
Not later than one year
85
94
One to two years
75
83
Two to three years
67
76
Three to four years
61
68
Four to five years
47
64
More than five years
153
209
Total
488
594
43.
Contingent liabilities and other commitments
The Group
presents
the credit
related
commitments
it has
undertaken
within the
context
of its
lending related
activities into
the
following
three categories:
a) financial
guarantee
contracts,
which refer
to guarantees
and standby
letters
of credit
that carry
the
same credit risk
as loans (credit
substitutes), b) commitments to extend
credit, which comprise firm
commitments that are irrevocable
over the life of the facility or revocable
only in response to a material adverse effect
and c) other credit related commitments, which
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
refer
to
documentary
and
commercial
letters
and
other
guarantees
of
medium
and
low
risk
according
to
the
Regulation
No
575/2013/EU.
Credit related commitments are analyzed
as follows:
2024
2023
€ million
€ million
Financial guarantee contracts
2,221
2,082
Commitments to extend credit
5,783
4,521
Other credit related commitments
1,298
1,268
Total
9,302
7,871
The credit related commitments within the scope of IFRS 9 impairment requirements of continuing operations amount to € 14 billion
(31 December 2023:
€ 11.4 billion),
including revocable
loan commitments
of €
4.7 billion
(31 December 2023:
€ 3.5 billion),
while
the corresponding allowance for impairment
losses amounts to € 63 million (31 December 2023: € 48 million).
In addition, the Group has issued a sovereign risk financial guarantee of € 0.24 billion (31 December 2023: € 0.24 billion) for which an
equivalent amount has been deposited under the relevant
pledge agreement (note 29).
Other commitments
(a) The
Bank has signed
irrevocable payment
commitment (IPC)
and collateral
arrangement agreements
with the
Single Resolution
Board (SRB) amounting in total
to € 29 million as at
31 December 2024 (2023: € 29 million). According
to the agreements, which are
backed by cash collateral
of an equal amount, the Bank undertook to
pay to the SRB an amount up to
the above IPC, in case of a call
and demand for payment made by it, in relation to a resolution action taken for another European bank. The IPC has been accounted
for as
a contingent
liability and the
said cash
collateral
has been
recognized as
a financial
asset measured
at amortized
cost in
the
Group’s balance sheet line “Other
assets’’(note 29).
By a ruling in October 2023, the General Court
of the European Union dismissed the appeal of a French
Credit institution against the
Single
Resolution
Board
(SRB)
following
the
rejection,
by
the
latter,
of
the
request
for
return
of
collateral
linked
to
ex-ante
contributions provided
in the
form of
IPC. The reimbursement
of the collateral
linked to
the IPC,
requested by
the institution
after
the withdrawal of its license, had been refused by the SRB, arguing that the return of IPC collateral required the prior payment of the
compulsory contribution for which the institution
was liable.
The aforementioned decision is not final, as the institution concerned decided to appeal to the European
Court of Justice against the
ruling of the General Court
of the European Union, therefore the
Group has not proceeded to any
change in the accounting treatment
described above for the purposes of these financial statements.
The Group will continue to monitor any
developments in the case and assess the potential impact on its financial statements.
(b) As at 31
December 2024, the contractual commitments for the acquisition
of own used property, investment property, equipment
and intangible assets amounted to € 51 million (2023: € 41 million).
Legal proceedings
As at 31 December 2024, the
provisions for legal
proceedings outstanding against
the Group amounted to
€ 33 million (note 35) (31
December 2023: € 38 million).
Furthermore, in the normal course of its business, the Group has been involved in a number of legal proceedings, which are either at
still a premature
or at an advanced trial
instance. The final settlement
of these cases may
require the lapse of
a certain time so that
the litigants exhaust the legal remedies provided for by the
law. Management, is closely monitoring the developments to the relevant
cases and having
considered the
advice of Legal
Services, does not
expect that
there will
be an outflow
of resources
and therefore
does not acknowledge the need for a provision.
In addition,
following
Hellenic Bank
group inclusion
in the
Company’s
consolidated
financial statements
from the
third quarter
of
2024 (note 23.2),
the Group is
assessing the legal
proceedings against
Hellenic Bank group
and has recognized
contingent liabilities
at a provisional fair
value of € 4 million on the
acquisition date under the purchase
method of accounting in accordance
with IFRS 3,
Business Combinations.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
44.
Operating segment information
Management has
determined the operating
segments based on
the internal reports
reviewed by
the Strategic
Planning Committee
that
are
used
to
allocate
resources
and
to
assess
their
performance
in
order
to
make
strategic
decisions.
The
Strategic
Planning
Committee considers the business both from a business unit and geographic perspective. Geographically, management considers the
performance of its business activities originated from Greece and
other countries in Europe (International).
Greece
is
further
segregated
into
retail,
corporate,
global
markets
& asset
management,
investment
property
and Remedial
and
Servicing Strategy.
International is
monitored and
reviewed on
a country
basis. The
Group aggregates
segments when
they exhibit
similar economic characteristics and profile
and are expected to have similar long-term
economic development.
In more detail, the Group is organized
in the following reportable segments:
-
Retail: incorporating customer
current accounts, savings, deposits and
investment savings products,
credit and debit cards,
consumer loans, small business banking and mortgages.
-
Corporate:
incorporating
current
accounts,
deposits,
overdrafts,
loan
and
other
credit
facilities,
foreign
currency
and
derivative
products
to
corporate
entities,
custody
and
clearing
services,
cash
management
and
trade
services
and
investment banking services including corporate
finance, merger and acquisitions advice.
-
Global Markets & Asset Management: incorporating financial instruments trading, services to institutional investors, as well
as, specialized financial
advice and intermediation. In
addition, this segment
incorporates mutual fund products, institutional
asset management and equity brokerage.
-
International: incorporating operations
in a) Bulgaria, b) Cyprus, containing the operations of Eurobank Cyprus and those of
Hellenic Bank group,
which is included
in the Company’s
consolidated financial
statements as
of the third
quarter of
2024
(note
23.2),
c) Luxembourg
and d)
Romania
and Serbia,
which as
of
the
third
quarter
of
2024 are
presented
in
“Other”
segment of the International operations.
-
Investment
Property:
incorporating
investment
property
activities
relating
to
a
diversified
portfolio
of
commercial
real
estate assets.
-
Remedial and Servicing
Strategy (RSS): incorporating the management of
non - performing assets,
the property management
(repossessed assets),
the notes
of the
securitizations of
loans originated
by the
Bank, which
were retained
by the
Group,
and the Group’s share
of results of doValue Greece Loans and Credits
Claim Management S.A.
Other
segment
of
the
Group
refers
mainly
to
(a)
property
management
(own
used
property
&
equipment),
(b)
other
investing
activities (including equities’ positions), (c) private
banking services to medium and high net
worth individuals, (d) the Group’s
share
of results of Eurolife Insurance group
and (e) the results related to the Group’s
transformation projects and initiatives.
The
Group's
management
reporting
is
based
on
International
Financial
Reporting
Standards
(IFRS)
as
adopted
by
the
EU.
The
accounting policies of the Group's operating segments
are the same with those described in the principal accounting policies.
Revenues from
transactions between business
segments are allocated
on a mutually agreed
basis at rates
that approximate
market
prices.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
44.1
Operating segments
31 December 2024
Retail
Corporate
Global Markets &
Asset Mngt
Investment
Property
RSS
International
Other and
Elimination
center
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Net interest income
1,170
405
32
(13)
(37)
1,023
(73)
2,507
Net banking fee and commission income
106
137
138
0
3
176
2
561
Other net revenue
(51)
19
76
108
(31)
61
91
272
Total external
revenue
1,225
560
245
95
(65)
1,261
20
3,341
Inter-segment revenue
59
49
(55)
2
(0)
(6)
(49)
-
Total revenue
1,283
610
190
97
(65)
1,255
(30)
3,341
Operating expenses
(391)
(131)
(63)
(33)
(60)
(416)
(6)
(1,098)
Impairment losses relating to loans
and advances to customers
(230)
(3)
-
-
34
(61)
(43)
(303)
Other impairments, risk provisions and related
costs
(note 12)
(4)
(0)
(11)
(1)
(9)
(18)
(16)
(59)
Share of results of associates and
joint ventures
-
-
(0)
-
10
133
18
161
Profit/(loss) before tax from
continuing operations
before restructuring costs
658
476
116
64
(90)
893
(76)
2,040
Restructuring costs (note 12)
(15)
(2)
(2)
(1)
(0)
(2)
(145)
(168)
Profit/(loss) before tax from
continuing operations
643
474
114
64
(91)
891
(222)
1,872
Loss before tax from discontinued
operations (note 30)
-
-
-
-
-
-
(10)
(10)
Profit/(loss) before tax attributable
to non controlling
interests
-
-
-
(0)
-
66
0
66
Profit/(loss) before tax attributable
to shareholders
643
474
114
64
(91)
825
(232)
1,796
31 December 2024
Retail
Corporate
Global Markets &
Asset Mngt
Investment
Property
RSS
International
Other and
Elimination
center⁽¹⁾
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Segment assets
11,921
18,825
14,617
1,474
7,734
42,318
4,260
101,150
Segment liabilities
32,270
12,215
4,391
221
1,288
37,874
3,992
92,251
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
The International segment is further analyzed
as follows:
31 December 2024
Cyprus⁽³⁾
Bulgaria
Eurobank Cyprus
Hellenic Bank
Luxembourg
Other
Total
International
€ million
€ million
€ million
€ million
€ million
€ million
Net interest income
394
273
295
58
4
1,023
Net banking fee and commission income
83
42
40
11
(1)
176
Other net revenue
9
4
48
1
(1)
61
Total external revenue
486
320
382
70
2
1,261
Inter-segment revenue
0
0
-
(6)
(0)
(6)
Total revenue
486
320
382
64
2
1,255
Operating expenses
(194)
(59)
(127)
(32)
(3)
(416)
Impairment losses relating to loans and
advances to customers
(49)
(7)
(9)
0
4
(61)
Other impairments, risk provisions and
related costs
(4)
(1)
(2)
(1)
(10)
(18)
Share of results of associates and joint
ventures
-
-
133
-
-
133
Profit/(loss) before tax from continuing
operations before restructuring costs
239
253
377
31
(8)
893
Restructuring costs (note 12)
-
-
(1)
(1)
-
(2)
Profit/(loss) before tax from continuing
operations
239
253
376
31
(8)
891
Loss before tax from discontinued operations
-
-
-
-
-
-
Profit/(loss) before tax attributable to non
controlling interests
0
-
66
-
-
66
Profit/(loss) before tax attributable to
shareholders
239
253
309
31
(8)
825
31 December 2024
Cyprus⁽³⁾
Bulgaria
Eurobank Cyprus
Hellenic Bank
Luxembourg
Other
Total
International
€ million
€ million
€ million
€ million
€ million
€ million
Segment assets⁽²⁾
11,529
9,275
18,262
3,240
128
42,318
Segment liabilities⁽²⁾
10,193
8,074
16,501
3,005
215
37,874
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
31 December 2023
Retail
Corporate
Global Markets &
Asset Mngt
Investment
Property
RSS
International
Other and
Elimination
center
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Net interest income
1,118
437
59
(12)
(8)
657
(77)
2,174
Net banking fee and commission income
87
127
102
5
122
4
447
Other net revenue
(48)
3
108
103
15
(1)
113
293
Total external
revenue
1,157
567
269
91
12
778
40
2,914
Inter-segment revenue
41
39
(40)
2
(8)
(34)
-
Total revenue
1,198
606
229
93
12
770
6
2,914
Operating expenses
(379)
(118)
(55)
(35)
(62)
(263)
(3)
(915)
Impairment losses relating to loans and
advances to
customers
(126)
(31)
-
-
(159)
(57)
(39)
(412)
Other impairment losses,risk provisions and
related
costs (note 12)
(20)
(1)
3
(1)
(25)
(36)
(16)
(96)
Share of results of associates and
joint ventures
-
8
58
22
88
Profit/(loss) before tax from
continuing operations
before restructuring costs
673
456
177
57
(226)
472
(30)
1,579
Restructuring costs (note 12)
(4)
(4)
(1)
(1)
(11)
(16)
(37)
Profit/(loss) before tax from
continuing operations
669
452
176
57
(227)
461
(46)
1,542
Profit before tax from
discontinued operations
-
-
-
-
-
(170)
-
(170)
Profit/(loss) before tax attributable
to non controlling
interests
-
-
-
-
-
(12)
(12)
Profit/(loss) before tax attributable
to shareholders
669
452
176
57
(227)
303
(46)
1,384
31 December 2023
Retail
Corporate
Global Markets &
Asset Mngt
Investment
Property
RSS
International
Other and
Elimination
center⁽¹⁾
Total
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Segment assets
12,344
15,897
14,627
1,453
8,259
21,336
5,865
79,781
Segment liabilities
31,264
11,558
4,942
280
1,767
18,740
3,331
71,882
Notes to the Consolidated Financial Statements
.
163
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31 December 2024 Consolidated Financial Statements
31 December 2023
Bulgaria
Cyprus
Luxembourg
Romania
Serbia
Total
International
€ million
€ million
€ million
€ million
€ million
€ million
Net interest income
322
273
58
3
1
657
Net banking fee and commission income
76
39
8
(1)
-
122
Other net revenue
6
-
(2)
(1)
(4)
(1)
Total external revenue
404
312
64
1
(3)
778
Inter-segment revenue
-
-
(8)
-
-
(8)
Total revenue
404
312
56
1
(3)
770
Operating expenses
(169)
(59)
(28)
(5)
(2)
(263)
Impairment losses relating to loans and
advances to customers
(52)
(16)
-
11
-
(57)
Other impairments, risk provisions and
related costs
(31)
(1)
-
(4)
-
(36)
Share of results of associates and joint
ventures
-
58.00
-
-
-
58
Profit/(loss) before tax from continuing
operations before restructuring costs
152
294
28
3
(5)
472
Restructuring costs
(11)
-
-
-
-
(11)
Profit/(loss) before tax from continuing
operations
141
294
28
3
(5)
461
Profit before tax from discontinued
operations
-
-
-
-
(170)
(170)
Profit/(loss) before tax attributable to non
controlling interests
-
-
-
-
(12)
(12)
Profit/(loss) before tax attributable to
shareholders
141
294
28
3
(163)
303
31 December 2023
Bulgaria
Cyprus
Luxembourg
Romania
Serbia
Total
international
€ million
€ million
€ million
€ million
€ million
€ million
Segment assets⁽²⁾
9,832
8,625
2,644
143
91
21,336
Segment liabilities⁽²⁾
8,714
7,300
2,426
214
86
18,740
(1)
Interbank and debt securities in issue eliminations between International and the other Group’s segments are included.
(2)
Intercompany balances among the Countries have been excluded from the reported assets and liabilities of International segment.
(3)
The Group’s
share of
results of
the Hellenic
Bank group
up to
30 June
2024, amounting
to €
133 million
gain is
included in
the corresponding
separate
segment of the Cyprus’
operations. In the comparative
period, the Group’s share of results
of the Hellenic Bank
group included in Cyprus’
operations, amounted
to € 58 million gain (note 24).
44.2
Entity wide disclosures
Breakdown of the Group's revenue
for each group of similar products and services is as follows:
2024
2023
€ million
€ million
Lending related activities
1,203
1,117
Deposits, network and asset management activities
2,011
1,671
Capital markets
(31)
(36)
Non banking and other services
158
162
Total from continuing operations
3,341
2,914
Information on the Country by Country Reporting based
on Law 4261/2014 is provided in the Appendix.
Notes to the Consolidated Financial Statements
.
164
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31 December 2024 Consolidated Financial Statements
45.
Post balance sheet events
Details of post balance sheet events are provided
in the following notes:
Note 4
– Capital Management
Note 22
– Investment securities
Note 23.2
– Consolidation of Hellenic Bank group
Note 34
– Debt securities in issue
Note 37
– Standard legal staff retirement
indemnity obligations (SLSRI) and termination benefits
Note 46
– Related parties
46.
Related parties
Eurobank Ergasias Services and Holdings S.A. (the
Company or Eurobank Holdings) is the
parent company of Eurobank S.A. (the
Bank).
The Board
of Directors
(BoD) of Eurobank
Holdings is the
same as the
BoD of the
Bank and part
of the key
management personnel
(KMP) of the Bank
provides services to Eurobank Holdings
according to the terms
of the relevant agreement between
the two entities.
Fairfax Group (“Fairfax”)
is considered to have significant influence over Eurobank
Holdings. Following the changes in the Company’s
share capital in the
third quarter of 2024 (note
38), Fairfax held
33.29% of Eurobank Holdings’ total
number of voting rights as
at 31
December 2024 (31 December 2023:
32.93%), based on the latest
notification that the Company
had received from the
entity. On
7
February 2025 Eurobank
Holdings announced that further to
its announcement dated
23 January 2025, it has
been informed by the
entity that following the completion of
the sale of 80
million shares of the
Company, Fairfax holds 32.89% of Eurobank Holdings’ share
capital and voting rights. Further information
is provided in the Directors’ Report for
the year ended 31 December 2024.
A number
of banking
transactions are
entered into
with related
parties in
the normal
course of
business and
are conducted
on an
arm's length basis.
These include loans,
deposits and guarantees.
In addition, as
part of its normal
course of business
in investment
banking activities, the Group at times may hold positions in debt
and equity instruments of related parties.
The
outstanding
balances
of
the
transactions
with
(a)
Fairfax
group,
(b)
the
key
management
personnel
(KMP)
and
the
entities
controlled or jointly controlled by
KMP and (c) other related parties, as well as the relating income and
expenses are as follows:
31 December 2024
31 December 2023
Fairfax
Group⁽²⁾
KMP and Entities
controlled or jointly
controlled by KMP⁽¹⁾
Other Related
Parties⁽³⁾
Fairfax
Group⁽²⁾
KMP and Entities
controlled or jointly
controlled by KMP⁽¹⁾
Other Related
Parties⁽³⁾
€ million
€ million
€ million
€ million
€ million
€ million
Investment securities
-
-
-
-
-
60.95
Loans and advances to
customers
152.23
5.32
0.17
119.64
5.25
25.55
Other assets
11.97
-
99.77
12.89
0.54
85.19
Due to credit institutions
-
-
-
-
-
0.04
Due to customers
23.35
18.05
96.11
46.57
16.33
93.24
Debt securities in issue
-
0.91
1.23
82.85
2.01
103.56
Other liabilities
0.01
0.19
8.43
0.01
0.11
6.02
Net interest income
8.28
(0.11)
(1.10)
3.20
(0.05)
(0.98)
Net banking fee and
commission income
0.03
0.04
13.57
0.04
0.07
10.57
Gains less losses from
investment securities
-
-
-
-
-
0.57
Impairment losses relating to
loans and securities including
relative fees
0.72
-
(69.50)
(2.60)
-
(77.26)
Other operating
income/(expenses)
9.77
(8.83)
(13.16)
5.71
(13.97)
(9.06)
Guarantees issued
2.48
-
0.45
2.47
-
-
(1)
Includes the key management personnel of the Group and their close family members.
Notes to the Consolidated Financial Statements
.
165
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31 December 2024 Consolidated Financial Statements
(2)
The balances with the Group’s
associate Eurolife FFH Insurance Group
Holdings S.A., which is also a member
of Fairfax Group are presented
in the column
other related parties.
(3)
Other related parties include associates (Hellenic Bank has been included from the second quarter of 2023 until the end of the second quarter of 2024, note
24), joint ventures and the Eurobank Group’s personnel occupational insurance fund.
For the year ended 31
December 2024, an impairment of
€ 0.01 million (2023:
€ 0.01 million) has
been recorded against loan balances
with Group’s associates and joint ventures, while the
respective impairment allowance amounted to €
0.1 million (31
December 2023:
€ 0.02 million).
Key management compensation (directors
and other key management personnel of the Group)
Key management personnel
are entitled to compensation
in the form of short-term
employee benefits of € 11.8
million (2023: € 8.3
million)
including
€
2.2
million
in
upfront
variable
remuneration
awarded
as
profit
sharing,
and
long-term
employee
benefits
amounting to
€ 5.3 million
(2023:
€ 1.4 million)
including € 3.2
million in deferred
variable remuneration
awarded as
profit sharing
and payable in equal installments over the next 4-5 years.
In addition, KMP have been granted € 5.5 million in variable remuneration
through share
options (2023: €
7.8 million), €
3.3 million of
which relates
to options exercisable
in equal portions
over the next
4-5
years. The variable
remuneration was awarded
following the Annual General
Meetings of the shareholders
of the Company and the
Bank taken place on
23 July 2024 (note 38), in accordance
with the Company’s
and the Bank’s remuneration
policy. Furthermore,
as
at 31 December 2024,
the defined benefit obligation
for the KMP amounts to
€ 2.1 million (2023: € 1.8 million)
while the respective
cost for the period through the income statement amounts to € 0.1 million
(2023: € 0.1 million) and the
other comprehensive income
(actuarial loss) amounts to € 0,3 million (2023: € 0.05 million actuarial loss).
47.
External Auditors
The
Group
has
adopted
a
Policy
on
External
Auditors’
Independence
which
provides
amongst
others,
for
the
definition
of
the
permitted
and non-permitted
services the
Group
auditors
may provide
further to
the statutory
audit. For
any
such services
to be
assigned to
the Group’s
auditors there
are specific
controlling
mechanisms in
order for
the Company’s
Audit Committee
to ensure
that a) the non-audit services
assigned to “KPMG Certified Auditors S.A.”, along with the KPMG network (KPMG), have been reviewed
and approved as required and b) there
is proper balance between audit and permitted non-audit work.
The total fees of the Group’s
principal independent auditor KPMG, for audit and other services provided
are analyzed as follows:
2024
2023
€ million
€ million
Statutory audit⁽¹⁾
(3.0)
(2.9)
Tax certificate
(0.5)
(0.4)
Other audit related assignments
(1.5)
(1.4)
Non audit assignments
(0.5)
(0.2)
Total from
continuing operations
(5.5)
(4.9)
(1)
Includes fees for statutory audit of the annual separate and consolidated financial statements.
It is noted
that the non-audit
assignment fees
of “KPMG Certified
Auditors S.A.”
Greece, statutory
auditor of the
Group, amounted
to € 0.23 million.
Notes to the Consolidated Financial Statements
.
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31 December 2024 Consolidated Financial Statements
48.
Board of Directors
The Board of Directors (BoD) was elected by the Annual General Meeting of the Shareholders
(AGM) held on 23 July 2024 for a three
- year term of office that will expire on 23 July 2027, prolonged until the end of the period the AGM for the year 2027 will take
place.
The BoD is as follows:
G. Zanias
Chairman, Non-Executive Member
F. Karavias
Chief Executive Officer
S. Ioannou
Deputy Chief Executive Officer
K. Vassiliou
Deputy Chief Executive Officer
B.P.
Martin
Non-Executive Member
A. Gregoriadi
Non-Executive Independent Member
I. Rouvitha Panou
Non-Executive Independent Member
R. Kakar
Non-Executive Independent Member
J. Mirza
Non-Executive Independent Member
C. Basile
Non-Executive Independent Member
B. Eckes
Non-Executive Independent Member
J. A. Hollows
Non-Executive Independent Member
E. Kotsovinos
Non-Executive Independent Member
Athens, 7 March 2025
Georgios P.
Zanias
Fokion C. Karavias
Harris V. Kokologiannis
I.D. No ΑI - 414343
I.D. No ΑΙ - 677962
I.D. No AN - 582334
CHAIRMAN
OF THE BOARD OF DIRECTORS
CHIEF EXECUTIVE OFFICER
GENERAL MANAGER OF GROUP FINANCE
CHIEF FINANCIAL OFFICER
Notes to the Consolidated Financial Statements
.
167
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31 December 2024 Consolidated Financial Statements
APPENDIX – Disclosures under Law 4261/2014
Country by Country Reporting
Pursuant to article 81 of Law 4261/2014, which incorporated article 89 of Directive
2013/36/EC into the Greek legislation, the Group
provides the following information
for each country in which it has an establishment:
(i)
Names, nature of activities and geographical location.
(ii)
The operating income (turnover), the
profit/(loss) before tax, the tax
on profit/ (loss) and the current tax
on a consolidated
basis for each country; intercompany
transactions among countries are eliminated
through the line ‘Intra-Group
amounts’.
The amounts disclosed are prepared on the same basis as
the Group’s financial statements for the year ended 31 December
2024.
(iii)
The number of employees on a full time equivalent basis.
(iv)
The public subsidies received.
For the listing of the
Bank’s subsidiaries
at 31 December 2024, the
country of their incorporation
and the line of their business refer
to note 23.1.
The information per country is set out below:
Year ended 31 December 2024
Operating
income
Profit/(loss)
before tax
Tax on profit/(loss)
Current
tax
Number of
employees at 31
December
€ million
€ million
€ million
€ million
Greece
2,064
918
(218)
(0)
6,043
Bulgaria
487
247
(36)
(36)
3,444
Romania
(4)
(15)
(0)
(0)
12
Cyprus
705
505
(92)
(90)
2,768
Serbia
(2)
(3)
(0)
(0)
6
Luxembourg⁽¹⁾
91
58
(15)
(15)
133
Netherlands
1
1
-
-
-
Other countries
0
(0)
-
-
-
Intra-Group amounts
(1)
Total from continuing
operations
3,341
1,711
(361)
(141)
12,406
Total from discontinued operations
-
(10)
3
-
Total
3,341
1,701
(358)
(141)
12,406
(1)
The operations of Eurobank Private Bank Luxembourg S.A.’s branch in London are included within Luxembourg.
Article 82 of Law 4261/2014
For 2024, the Group’s return on assets (RoA) was
1.64 %. RoA is calculated by dividing the net profit for the year ended 31 December
2024 by the Group’s average
total assets for the year.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2024
8 Othonos Str, Athens
105 57,
Greece
eurobankholdings.gr,
Tel.: (+30) 214 40 61000
General Commercial
Registry No: 000223001000
.
Index to the Financial Statements
..................................................................................................................................................
Page
Balance Sheet ........................................................................................................................................................................................ 1
Statement of Comprehensive Income ................................................................................................................................................... 2
Statement of Changes in Equity................................
............................................................................................................................. 3
Cash Flow Statement ............................................................................................................................................................................. 4
Notes to the Financial Statements
1.
General information ................................................................................................
.....................................................................
5
2.
Basis of preparation and material accounting
policies
................................................................................................................. 5
2.1
Basis of preparation ......................................................................................................................................................................
5
2.2
Material accounting policies .........................................................................................................................................................
8
3.
Critical accounting estimates and judgments
in applying accounting policies ...........................................................................
17
4.
Financial risk management and fair value ................................................................................................
..................................
18
4.1
Financial risk factors and risk management................................................................
................................................................
19
4.2
Fair value of financial assets and liabilities .................................................................................................................................
19
5.
Net interest income .................................................................................................................................................................... 20
6.
Other income/(expenses) ........................................................................................................................................................... 21
7.
Operating expenses .................................................................................................................................................................... 21
8.
Income tax .................................................................................................................................................................................. 21
9.
Investment securities
................................................................................................................................................................
..
22
10.
Shares in subsidiaries
................................................................................................................................................................
..
22
11.
Other assets
................................................................................................................................................................
................
23
12.
Debt securities in issue ............................................................................................................................................................... 23
13.
Other liabilities ................................................................................................................................
...........................................
23
14.
Share capital, share premium and treasury shares ................................
.................................................................................... 25
15.
Reserves and retained earnings/(losses) .................................................................................................................................... 26
16.
Share options
................................................................................................................................................................
..............
26
17.
Cash and cash equivalents ..........................................................................................................................................................
28
18.
Post balance sheet events ................................................................................................................................
..........................
28
19.
Related parties
................................................................................................................................................................
............
28
20.
External Auditors ................................................................................................................................................................
........
29
21.
Board of Directors
................................................................................................................................................................
.......
30
Balance Sheet
.
1
|
Page
31 December
2024 Financial
Statements
Notes on pages 5 to 30 form an integral part of these
financial statements.
Statement of Comprehensive Income
.
2
|
Page
31 December
2024 Financial
Statements
Notes on pages 5 to 30 form an integral part of these
financial statements
Statement of Changes in Equity
.
3
|
Page
31 December
2024 Financial
Statements
(1)
The changes in equity do not sum to the totals provided due to rounding
Notes on pages 5 to 30 form an integral part of these
financial statements.
Cash Flow Statement
.
4
|
Page
31 December
2024 Financial
Statements
Notes on pages 5 to 30 form an integral part of these
financial statements.
Notes to the Financial Statements
.
5
|
Page
31 December
2024 Financial
Statements
1.
General information
Eurobank
Ergasias
Services and
Holdings S.A.
(the Company
or Eurobank
Holdings) is
the parent
company
of Eurobank
S.A. (the
Bank) which
along with
its subsidiaries
(Eurobank S.A.
Group), comprise
the major
part of
Eurobank Holdings
Group (the
Group)
(note 10).
The Company
operates
mainly in
Greece and
through the
Bank’s
subsidiaries in
Bulgaria, Cyprus
and Luxembourg.
Its
main activities
relate to
the strategic
planning of
the administration
of non-performing
loans and
the provision
of services
to its
subsidiaries and third parties, while
the Eurobank S.A. Group is
active in retail, corporate
and private banking, asset
management,
treasury, capital
markets and other services. The Company is incorporated in Greece, with its registered
office at 8 Othonos Street,
Athens 105 57 and its shares are listed on
the Athens Stock Exchange.
These financial statements were approved by the
Board of Directors on 7
March 2025. The Independent
Auditor’s Report is included
in section E.I of the Annual Financial Report.
2.
Basis of preparation and material accounting policies
The
financial
statements
of
the
Company
have
been
prepared
on
a
going
concern
basis
and
in
accordance
with
the
material
accounting policies set out below:
2.1
Basis of preparation
The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS)
issued by
the International
Accounting
Standards
Board
(IASB), as
endorsed by
the European
Union (EU),
and in
particular with
those standards
and interpretations,
issued and
effective
or issued
and early
adopted as
at the
time of
preparing these
financial
statements.
The financial statements are
prepared under the historical cost basis
except for the financial assets measured
at fair value through
other comprehensive income and financial assets and financial liabilities measured
at fair-value-through-profit
-or-loss.
The accounting policies for the preparation of the financial statements of the Company have been consistently applied to the years
2024 and 2023, after
taking into account
the amendments in IFRSs
as described in section
2.1.1 (a) “New and
amended standards
adopted by the Company
as of 1 January 2024”.
Where necessary,
comparative figures have
been adjusted to conform
to changes
in presentation in the current year.
The
preparation
of
financial
statements
in
accordance
with
IFRS
requires
the
use
of
estimates
and
judgements
that
affect
the
reported amounts of
assets and liabilities and
disclosure of contingent
liabilities at the date
of the financial statements,
as well as
the reported amounts of
revenues and expenses during the
reporting period. Although these
estimates are based on management's
best knowledge of current events and conditions,
actual results ultimately may differ from
those estimates.
The Company’s presentation currency is the Euro (€). Except
as indicated, financial information presented in Euro has
been rounded
to the nearest million. The figures presented
in the notes may not sum precisely to the totals provided
due to rounding.
Going concern considerations
The
Company’s
business
strategy
and
activities
are
linked
to
those
of
its
banking
subsidiary
Eurobank
S.A.
In
this
context,
the
directors monitor closely the
capital and liquidity
position of the
Bank as well
as the associated
risks, uncertainties and the
mitigating
factors affecting its operations. In December 2024, the Board of Directors of Eurobank Holdings decided
the initiation of the merger
process of the
Company with the Bank
through absorption of
the former by
the latter,
in order that
operational efficiencies and
a
leaner group structure be achieved. Upon the
completion of the merger,
the Company’s shareholders
become shareholders of the
Bank with the same stakes
and the same number of shares,
and the Bank will substitute
Eurobank Holdings as universal
successor
in the
totality of
its assets
and liabilities
transferred
to the
Bank (note
10). Following
the above,
the annual
financial statements
have
been
prepared
on
a
going
concern
basis,
as
the
Board
of
the
Directors
considered
as
appropriate,
taking
also
into
consideration:
In 2024, despite the challenging international environment, the macroeconomic backdrop was supportive in the Group’s three core
markets. In
particular,
the economies of Greece,
Bulgaria and Cyprus
remained in expansionary
territory,
overperforming most
of
their European Union
(EU) peers. According
to the Hellenic
Statistical Authority
(ELSTAT)
provisional data,
the real GDP
of Greece
expanded by 2.3% on an
annual basis in the
first nine months of 2024
–versus 0.5% in the euro area
(Eurostat)–
driven by household
consumption and the buildup of inventories. The average
annual inflation rate based on the Harmonized
Index of Consumer Prices
Notes to the Financial Statements
.
6
|
Page
31 December
2024 Financial
Statements
(HICP) decreased
to 3.0%
in 2024
from 4.2%
in 2023,
while the
average
monthly unemployment
rate declined
to 10.1%
in 2024,
from 11.1% in 2023, dropping to a
15-year low. In its Autumn Economic Forecasts (November 2024), the European Commission (EC)
expects real GDP in Greece to grow by 2.1% in 2024 and 2.3% in 2025 (2023: 2.3%). The HICP growth rate is expected to decelerate
to 2.4% in 2025
and the unemployment
rate to drop
to 9.8%, respectively.
On the fiscal front,
the EC expects
a primary surplus of
2.9% of GDP
in 2024 and
2025, up from
2.1% of GDP
in 2023. The
gross public debt
-to-GDP ratio,
following a
sizeable increase
in
nominal GDP due to the
combination of real GDP growth and
inflation, is expected to decline
to 153.1% in 2024
and 146.8% in 2025,
from 163.9% in 2023.
According to the EC Autumn Economic Forecasts, real GDP growth in Bulgaria in 2024
is expected at 2.4%, with a
moderate increase
in 2025 to
2.9% (2023: 1.8%),
while the HICP
is forecast
to decrease to
2.5% in 2024
and to 2.3%
in 2025 (2023:
8.6%). In Cyprus,
the real GDP growth
is forecast at
3.6% and 2.8% in 2024 and 2025,
respectively (2023: 2.5%), while
the HICP is estimated
at 2.2%
in 2024, and 2.1% in 2025 (2023: 3.9%).
Growth in
Greece as well
as in Bulgaria
and Cyprus is
expected to receive
a significant
boost from EU-funded
investment projects
and reforms.
Greece shall
receive in
total €
36 billion
(€ 18.2
billion in
grants and
€ 17.7
billion in
loans) up
to 2026
through the
Recovery and Resilience
Facility (RRF), Next Generation
EU (NGEU)’s
largest instrument, out
of which € 18.2 billion (€ 8.6
billion in
grants and
€ 9.6 billion in
loans) had been disbursed
by the EU as
of the end 2024.
A further € 40
billion is due through
EU’s
long-
term budget (MFF), out of which € 20.9 billion is to fund the National Strategic
Reference Frameworks
(ESPA 2021–2027).
In 2024, the Greek government raised € 9.55 billion from
the international financial markets through
the Public Debt Management
Agency (PDMA) by issuing
two new bonds (a 10-year
bond at a yield of
3.478% in January and a
30-year bond at
a yield of 4.241%
in April), and
re-opening eleven
past issues
with maturities
of 5 and
10 years.
At the
end of 2024,
the cash reserves
of the Greek
government
stood
close
to
€
33
billion.
Following
a
series
of
sovereign
rating
upgrades
in
the
second
half
of
2023,
the
Greek
government’s
long-term debt
securities were
considered investment
grade by
four out
of the five
Eurosystem-approved
External
Credit Assessment Institutions (DBRS: BBB(low), positive outlook, Fitch: BBB-, stable outlook; Scope: BBB, stable outlook; S&P: BBB-
, positive
outlook), and
one notch
below investment
grade by
the fifth
one, Moody’s
(Βa1, positive
outlook) as
of 31
December
2024. On monetary policy developments, after ten rounds of
interest rate hikes in 2022 and in 2023 and
on the back of an
improved
inflation outlook, the
European Central
Bank (ECB) implemented
five interest
rate cuts
from June 2024
to January 2025,
lowering
its deposit facility rate by 125 basis points in
total.
Regarding
the
outlook
for
the next
12 months,
the major
macroeconomic
risks
and
uncertainties
in
Greece
and
our
region
are
associated with:
(a) the
geopolitical tensions
caused primarily
by the
war in
Ukraine and
the fragile
situation in
the Middle
East,
their
implications
regarding
regional
and
global
stability
and
security,
and
their
repercussions
on
the
global
and
the
European
economy,
(b)
an
interruption
or
even
a reversal
of
the
disinflationary
trend
observed
in the
past
24
months
and
its
impact
on
economic growth, employment, public
finances, household budgets,
firms’ production costs, external
trade and banks’ asset
quality,
as well
as any
potential social
and/or political
ramifications
this may
entail, (c)
the timeline
of the
potential further
interest
rate
cuts by the ECB and the Federal Reserve Bank, as persistence on high rates for longer may
keep exerting pressure on sovereign
and
private borrowing costs and certain financial institutions’ balance sheets, but early rate cuts entail the risk of a rebound in inflation,
(d)
the
prospect
of
Greece’s
and
Bulgaria’s
major
trade
partners,
primarily
the
euro
area,
remaining
stagnant
or
even
facing
a
temporary
downturn,
(e)
the
elevated
political
and
economic
uncertainty
stemming
from
the
international
and
trade
policy
decisions of
the new
administration
in the
United States,
(f) the
persistently
large current
account deficit
that seems
to become
once again a structural feature of the Greek economy,
(g) the absorption capacity of the NGEU and MFF funds and the attraction of
new
investments
in
the
countries
of
presence,
especially
in
Greece,
(h)
the
effective
and
timely implementation
of
the
reform
agenda
required
to
meet
the RRF
milestones
and
targets
and to
boost
productivity,
competitiveness,
and resilience
and
(i) the
exacerbation
of natural
disasters due
to the
climate change
and their
effect on
GDP,
employment, fiscal
balance and
sustainable
development in the long run.
Materialization of the above risks would have potentially adverse effects on the fiscal planning of the Greek government, as it
could
decelerate the pace
of expected
growth and on
the liquidity,
asset quality,
solvency and profitability
of the Greek
banking sector.
In
this
context,
the
Group’s
Management
and
Board
are
continuously
monitoring
the
developments
on
the
macroeconomic,
financial and geopolitical
fronts as well as
the evolution of the Group’s
asset quality and liquidity KPIs
and have maintaine
d
a high
level of readiness, so as to accommodate decisions, initiatives and policies to protect the Group’s
capital, asset quality and liquidity
standing
as
well
as
the
fulfilment,
to
the
maximum
possible
degree,
of
its
strategic
and
business
goals
in
accordance
with
the
business plan for 2025 - 2027.
Notes to the Financial Statements
.
7
|
Page
31 December
2024 Financial
Statements
For the
year ended
31 December
2024, at
the Group
level, the
net profit
attributable to
shareholders,
following the
inclusion of
Hellenic Bank group in
the Company’s consolidated financial statements from the
third quarter of
2024, amounted to €
1,448 million
(2023: € 1,140 million). The adjusted net profit, excluding
(a) the € 121 million restructuring costs (after
tax), mainly related to VES
, (b) the € 99.5 million gain arising from the acquisition of an
additional 26.28% shareholding of Hellenic Bank in June 2024 , (c) the
€ 19 million
Bank’s
contribution (after
tax) for
the Greek
state’s
program
for school
renovations,
(d) the
€ 11 million
impairment
release (after tax) relating to
the project “Leon” and (e) the € 7 million net loss from discontinued operations
amounted to € 1,484
million (2023: € 1,256 million), of which € 709 million profit was related to the international operations (2023: € 468 million profit).
The net profit for the Company,
carrying the impact of the Bank’s
distribution of non-mandatory reserves totalling
€ 240 million to
the Company (note
15), equals to €
231 million (2023: €
403 million profit).
As at 31 December
2024, the Group’s
Total
Adequacy
Ratio (total CAD) and Common Equity Tier 1 (CET1) ratios,
including the impact of the distribution of cash dividend to shareholders
approved by
the AGM
in July
2024 and the
inclusion of
Hellenic Bank group
in the
Company’s consolidated
financial statements,
stood at 19.5% (31 December 2023: 19.4%) and 16.8% (31 December 2023: 16.9%).
With regard to
asset quality,
as at 31 December 2024, the Group’s
NPE stock, including the impact of
Hellenic Bank, stood at
€ 1.5
billion, excluding
the €
0.2 billion
NPE of
Hellenic Bank
covered
by the
Asset Protection
Scheme (APS)
(31 December
2023: €
1.5
billion), driving the NPE ratio to
2.9% at 31 December 2024 (31 December 2023: 3.5%).
Τhe NPE coverage ratio
improved to 88.4%
(31 December 2023: 86.4%).
In terms of liquidity, as at 31
December 2024 the Group
deposits, including the impact
of the Hellenic
Bank consolidation that added
€
15.8
billion,
stood
at
€
78.6 billion
(31
December
2023:
€
57.4
billion).
The
funding
from
the
targeted
long
term
refinancing
operations of the ECB – TLTRO
III programme was fully repaid
during the year (31 December 2023: € 3.8 billion), while the Group’s
debt securities
in issue,
increased by
€ 2.3
billion. The
rise in
high quality
liquid assets
of the
Group
led the
respective
Liquidity
Coverage ratio
(LCR) to 188.2%
(31 December 2023:
178.6%). Information
on the financial
risks to which
the Company is
exposed
and its risk management strategy is set out
in note 4.
Going concern assessment
The Board of Directors, acknowledging the geopolitical, macroeconomic and financial risks to the economy and the banking system
and taking into
account the above
factors relating
to (a) the idiosyncratic
growth opportunities in
Greece, Bulgaria and
Cyprus for
this and the next years, also underpinned by the mobilisation of the EU funding mainly through the RRF, (b) the Bank’s
and Group’s
pre-provision
income
generating
capacity,
asset quality,
capital
adequacy
and liquidity
position,
and (c)
the continuation
of
the
Company’s business operations by the Bank after their merger, has been satisfied that the financial statements of the Company can
be prepared on a going concern basis.
2.1.1
New and amended standards and interpretations
(a) New and amended standards adopted by the Company as
of 1 January 2024
The following amendments to existing standards
as issued by the IASB and endorsed by the EU, that are relevant to the Company’s
activities apply as of 1 January 2024:
IAS 1, Amendments, Classification of Liabilities as Current or Non-Current
and Non-current liabilities with covenants
The
amendments,
published
in January
2020, introduce
a definition
of
settlement
of
a liability,
while
they
make
clear
that
the
classification of liabilities as
current or non-current should be
based on rights
that are in
existence at the end
of the reporting period.
In addition, it is clarified that the assessment
made at the end of the reporting period
for liabilities’ classification is not
affected by
the expectations about events
after the reporting
period and whether
an entity will
exercise its right to
defer settlement of a
liability.
The Board also clarified that
when classifying liabilities as
current or non-current, an entity can ignore only
those conversion options
that are classified as equity.
In October 2022, the IASB issued
“
Non-current Liabilities with Covenants (Amendments to IAS 1)”
with respect to liabilities for which
an entity’s
right to
defer their
settlement for
at least
12 months
after the
reporting date,
is subject
to the
entity complying
with
conditions after the
reporting period (“future
covenants”). The amendments
specify that covenants
to be complied with
after the
reporting date
do not affect
the classification of
debt as current
or non-current
at the reporting
date. However,
the amendments
require a company to disclose information
about these covenants in the notes to the financial statements.
The adoption of the amendments had no impact on the financial statements.
Notes to the Financial Statements
.
8
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31 December
2024 Financial
Statements
(b) New and amended standards not yet adopted by the Company
A number of new standards and amendments to existing standards are effective after 2024, as they have not yet been endorsed by
the EU or have not been early applied by the Company.
Those that may be relevant to the Company’s
activities are set out below:
IFRS 18, Presentation and Disclosure in Financial Statements
(effective 1 January 2027, not yet endorsed by EU)
In April 2024, the IASB published
the new standard IFRS 18 “Presentation and Disclosure in Financial Statements” which will replace
IAS
1
“Presentation
of
Financial
Statements”.
The
new
standard
sets
out
the
requirements
for
presentation
and
disclosures
in
financial statements
with focus on the
income statement
and reporting of financial
performance, in order
to ensure that
financial
statements provide relevant
information that faithfully represents
an entity’s financial position, performance, and cash
flows.
Specifically,
the
new
standard
contains
new
guidance
regarding
the
structure
of
the
income
statement,
as
well
as
disclosure
requirements for Management-defined Performance Measures (MPMs). In addition, it provides enhanced guidance on aggregation
and disaggregation of information on the face of financial statements
and in the notes, while sets out general requirements for the
classification and presentation of assets, liabilities,
equity, income, and expenses.
The new standard is effective
for annual periods beginning on or after January 1, 2027, with early adoption permitted
and will also
apply to comparative information.
Adoption of IFRS 18 is not expected to impact the financial statements.
IFRS 9 & IFRS 7, Amendments to
the Classification and Measurement of Financial
Instruments (effective 1
January 2026, not yet
endorsed by EU)
In May 2024, the IASB issued “Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS
9
and
IFRS
7”.
The
amendments
clarify
the
requirements
related
to
the
derecognition
of
financial
liabilities
settled
through
electronic payment systems, provide additional guidance for the SPPI assessment of financial instruments with
contingent features,
non-recourse features,
as well as for transactions that are contractually
linked instruments.
Additionally, the amendments
introduce disclosure requirements
regarding financial instruments with contingent
features, as well
as for investment in equity instruments
designated at FVOCI.
The amendments are effective for annual reporting periods beginning on or
after 1 January 2026 with
earlier application permitted.
The adoption of the amendments is not expected to impact the financial statements.
Annual improvements to IFRSs - Volume
11 (effective 1 January 2026, not yet endorsed by EU)
In July 2024, the IASB issued amendments to several IFRS standards, which resulted from
the IASB’s annual improvements process.
This volume includes minor amendments to several standards
namely :
-IFRS
1 “First
-time Adoption
of International
Financial Reporting
Standards”
on Clarifications
on hedge
accounting
for
first-time
adopters,
-IFRS
7
“Financial
Instruments:
Disclosures”
and
its
accompanying
Guidance
on
implementing
IFRS
7
in
disclosures
related
to
derecognition, fair value and credit risk,
- IFRS 9 “Financial Instruments” on clarifications about lessee derecognition of lease liabilities and on definition of transaction price
over the initial measurement of trade receivables,
-IFRS 10 “Consolidated Financial Statements”
on the determination of a 'De Facto Agent'
and
-IAS 7 “Statement of Cash-Flows” on definition of cost
method.
The adoption of the amendments is not expected to impact the financial statements.
2.2
Material accounting policies
2.2.1
Investments in subsidiaries
Investments
in subsidiaries, including
investments acquired
through common
control transactions,
are accounted
at cost
less any
impairment losses. Cost is the fair value of the consideration
given being the amount of cash or shares issued.
Notes to the Financial Statements
.
9
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31 December
2024 Financial
Statements
As an exception
to the
above measurement
basis, when the
Company transfers
a business sector
to a new
subsidiary formed
for
this purpose in a transaction that does not have commercial substance, the Company’s
investment in that newly formed subsidiary
is recognized at carrying amount of the net
assets given up.
Dividend
income
from
investments
in
subsidiaries
is recognised
in
the
income
statement
when
the
right
to
receive
payment
is
established, that is when the dividend distribution is approved
by the appropriate body of the entity.
A listing of the Company’s subsidiaries is set out
in note 10.
2.2.2 Foreign currencies
Foreign currency
transactions
are translated
into the
functional currency
using the
exchange
rates
prevailing
at the
dates of
the
transactions.
Foreign exchange
gains and
losses resulting
from the
settlement of
such transactions
are recognized
in the
income
statement.
Monetary assets and liabilities denominated in foreign
currencies are translated into the functional currency
at the exchange rates
prevailing at each reporting date and
exchange differences are
recognized in the income statement.
Non-monetary assets and liabilities are
translated into the functional currency at the
exchange rates prevailing at initial recognition.
2.2.3 Interest income and expense
Interest
income and
expense are
recognized
in the
income statement
for all
interest
bearing financial
instruments on
an accrual
basis, using the
effective interest
rate (EIR)
method. The effective
interest rate
is the rate
that exactly
discounts estimated
future
cash payments or receipts through the expected life of the financial instrument
or, when appropriate,
a shorter period to the gross
carrying
amount
of
the
financial
asset
or
to
the
amortized
cost
of
a
financial
liability.
When
calculating
the
EIR
for
financial
instruments, the
Company estimates
future cash
flows considering
all contractual
terms of
the financial
instrument but
does not
consider expected credit losses.
The EIR calculation includes fees and basis points paid or received that are an integral part of
the effective interest rate, transaction
costs, and other premiums or discounts. Transaction costs include incremental costs that are directly attributable to the acquisition
or issue of a financial asset or liability.
The amortized
cost of
a financial
asset or
liability is
the amount
at which
it is
measured upon
initial recognition
minus principal
repayments, plus or minus cumulative
amortization using the EIR (as described above) and for
financial assets it is adjusted for the
expected
credit
loss
allowance.
The
gross
carrying
amount
of
a
financial
asset
is
its
amortized
cost
before
adjusting
for
ECL
allowance.
The Company
calculates interest
income and
expense by
applying the EIR
to the
gross carrying
amount of
non-impaired financial
assets (exposures in Stage 1 and 2) and to the
amortized cost of financial liabilities respectively.
For
financial
assets
that
have
become
credit-impaired
subsequent
to
initial
recognition
(exposures
in
Stage
3),
the
Company
calculates
interest
income by
applying the
effective
interest
rate
to the
amortized
cost
of the
financial asset
(i.e. gross
carrying
amount adjusted
for the expected
credit loss allowance).
If the asset is
no longer credit
-impaired, then the
EIR is applied again
to
the gross carrying amount.
Interest income and expense are presented separately
in the income statement for all interest bearing financial instruments within
net interest income.
2.2.4 Impairment of subsidiaries
The Company assesses at
each reporting date whether
there is any indication
that its investments
in subsidiaries may be impaired
by considering
both external
and internal
sources of
information,
such as
the net
assets compared
to the
carrying value
of each
subsidiary,
as well
as forward
looking developments
and/or economy
sector in
which they
operate.
In addition,
the collection
of
dividends from subsidiaries is also a potential
trigger that may indicate that
the respective investments
are impaired. In particular,
when
dividend
is
received
from
the
Company’s
subsidiaries,
it
is
also
examined
whether
that
dividend
exceeds
the
total
comprehensive income of the
subsidiary in the period the dividend is declared,
to determine whether an indication
of impairment
exists.
Notes to the Financial Statements
.
10
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31 December
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If any
indication of
impairment exists
at each
reporting date,
the Company
estimates the
recoverable
amount of
the investment,
being the higher of its fair value less costs to sell and
its value in use.
An impairment loss is recognized in profit or loss when the
recoverable amount of the investment
is less than its carrying amount.
Investments
in
subsidiaries
for
which
an
impairment
loss
was
recognized
in
prior
reporting
periods,
are
reviewed
for
possible
reversal of such impairment at each reporting
date.
2.2.5 Financial assets
Financial assets – Classification and measurement
The Company classifies
its financial assets based
on the business model
for managing those assets
and their contractual
cash flow
characteristics.
Accordingly,
financial assets
are classified
into one
of the following
measurement categories:
amortized cost
(AC)
and fair value through other comprehensive
income (FVOCI).
Financial Assets measured at Amortized Cost (‘AC’)
The Company classifies and measures a financial asset at AC only if both of the following
conditions are met:
(a) The financial asset is held within
a business model whose objective is to
collect contractual cash flows
(hold-to-collect business
model) and,
(b) The contractual
terms of the financial
asset give rise on
specified dates to
cash flows that
are solely payments
of principal and
interest on the principal amount outstanding
(SPPI).
These financial assets
are recognized initially at
fair value plus
or minus direct
and incremental transaction costs
that are attributable
to the acquisition of these assets, and are subsequently
measured at amortized cost, using the effective
interest rate
(EIR) method
(as described in 2.2.3 above).
Interest income, realized
gains and losses on derecognition,
and changes in expected credit
losses from assets classified at
AC, are
included in the income statement.
Financial Assets measured at Fair Value through Other
Comprehensive Income (‘FVOCI’)
The Company classifies and measures a financial asset at FVOCI only if both of the
following conditions are met:
(a) The
financial asset
is held
within a
business model
whose objective
is achieved
by both
collecting contractual
cash flows
and
selling financial assets (hold-to-collect-and-sell business model) and,
(b) The contractual terms of the financial asset give rise on specified dates
to cash flows that are SPPI.
Financial
assets
that
meet these
criteria
are
debt
instruments
and are
measured
initially
at
fair
value,
plus or
minus direct
and
incremental transaction costs that
are attributable to the acquisition of these assets.
Subsequent to
initial recognition,
FVOCI debt
instruments are
re-measured at
fair value
through OCI,
except for
interest
income,
related
foreign
exchange
gains
or losses
and expected
credit losses,
which are
recognized
in the
income statement.
Cumulative
gains
and
losses
previously
recognized
in
OCI
are
transferred
from
OCI
to
the
income
statement
when
the
debt
instrument
is
derecognised.
Business model and contractual characteristics assessment
The business model assessment determines how the Company
manages a group of assets to generate
cash flows. That is, whether
the Company's
objective is solely
to collect contractual
cash flows from
the asset, to
realize cash
flows from the
sale of assets,
or
both to
collect contractual
cash flows
and cash
flows from
the sale of
assets. In addition,
the business
model is determined
after
aggregating the
financial assets into
groups (business lines)
which are managed
similarly rather
than at an
individual instrument’s
level.
The business model
is determined by
the Company’s key management personnel consistently with
the operating model, considering
how
financial
assets
are
managed
in
order
to
generate
cash
flows,
the
objectives
and
how
performance
of
each
portfolio
is
monitored and reported and any available
information on past sales and on future sales’ strategy,
where applicable.
Notes to the Financial Statements
.
11
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31 December
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Statements
Accordingly, in making the above assessment, the Company will consider a number of
factors including the risks associated with the
performance of the business model and how those risks are evaluated and managed, the related personnel compensation,
and the
frequency, volume
and reasons of past sales, as well as expectations about future
sales activity.
Types of business models
The Company’s
business models
fall into
two categories,
which are
indicative of
the key
strategies used
to generate
returns. The
hold-to-collect (HTC) business model
has the objective
to hold the
financial assets in
order to collect
contractual cash flows. Financial
assets classified
within this
business model
include investment
securities and
due from
banks, which
are measured
at amortized
cost. Sales within this model are monitored and may be
performed for reasons which are not inconsistent with this business model.
More specifically, sales of financial assets
due to credit deterioration, as well
as sales close
to the maturity are considered consistent
with
the
objective
of
hold-to-collect
contractual
cash
flows
regardless
of
value
and
frequency.
Sales
for
other
reasons
may
be
consistent with the HTC model such as liquidity needs in any stress case scenario or sales made to manage high concentration level
of credit risk.
Such sales are
monitored and
assessed depending on
frequency and value
to conclude whether
they are
consistent
with the HTC model.
The hold-to-collect-and-sell
business model
(HTC&S) has
the objective
both to
collect contractual
cash flows
and sell
the assets.
Activities such
as liquidity management,
interest yield
and duration
are consistent
with this business
model, while sales
of assets
are
integral
to
achieving
the
objectives
of
this
business
model.
Financial
assets
classified
within
this
business
model
include
investment securities which are measured at
FVOCI, subject to meeting the SPPI assessment criteria.
Cash flow characteristics assessment
For
a financial
asset to
be measured
at
AC,
its contractual
terms must
give rise
on specified
dates
to
cash flows
that
are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.
For
the
purpose
of
this
assessment
principal
is
defined
as
the
fair
value
of
the
asset
at
initial
recognition
and
interest
as
the
consideration for the time value of money,
credit risk, other basic lending risks and a profit margin.
More specifically,
at the initial recognition
of a financial asset, an
assessment is performed of
whether the financial asset
contains
a contractual term
that could change the amount
or timing of contractual
cash flows in a way
that it would not be
consistent with
the
above
condition.
The
Company
considers
the
existence
of
various
features,
including
among
others,
prepayment
terms,
deferred interest-free payments,
extension and equity conversion options. Where the contractual terms introduce exposure
to risk
or volatility that are inconsistent
with a basic lending arrangement, the related
financial asset is considered to have
failed the SPPI
assessment and will be measured at FVTPL.
In
addition,
for
the
purposes
of
the
SPPI
assessment,
if
a
contractual
feature
could
have
an
effect
that
is
de-minimis
on
the
contractual cash flows of the financial asset, it
does not affect its classification. Moreover, a contractual feature is considered as not
genuine by the Company,
if it affects the
instrument’s contractual
cash flows only on the
occurrence of an event
that is extremely
rare, highly abnormal and very unlikely to
occur.
In such a case, it does not affect the instrument’s
classification.
Derecognition of financial assets
The Company
derecognizes
a financial
asset when
its contractual
cash flows
expire, or
the rights
to receive
those cash
flows are
transferred in an outright sale
in which substantially all
risks and rewards of
ownership have been transferred. In addition,
a financial
asset is derecognized even
if rights to receive cash
flows are retained
but at the same time the Company
assumes an obligation to
pay the received cash
flows without a material
delay (pass through agreement)
or when substantially all
the risks and rewards
are
neither transferred
nor retained
but the
Company has
transferred
control
of the
asset. Control
is transferred
if,
and only
if,
the
transferee
has
the
practical
ability
to
sell
the
asset
in
its
entirety
to
unrelated
third
party
and
is
able
to
exercise
that
ability
unilaterally and without imposing additional restrictions
on the transfer.
On derecognition
of
a financial
asset,
the difference
between
the
carrying
amount
of
the asset
and the
consideration
received
(including any new asset obtained less any new
liability assumed) is recognized in income statement.
Modification of financial assets that may result in derecognition
In addition, derecognition of financial
asset arises when its contractual
cash flows are modified and
the modification is considered
substantial
enough so
that the
original asset
is derecognized
and a
new one
is recognised.
Substantial
modifications resulting
in
Notes to the Financial Statements
.
12
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31 December
2024 Financial
Statements
derecognition may
include among others
change in borrower,
change in the asset’s
denomination currency,
debt consolidation of
unsecured exposure into a single new secured asset. The Company records the modified asset
as a ‘new’ financial asset at
fair value
plus
any
eligible
transaction
costs
and
the
difference
with
the
carrying
amount
of
the
existing
one
is
recorded
in
the
income
statement as derecognition
gain or loss.
2.2.6 Financial liabilities
Financial liabilities - Classification and measurement
The Company classifies its financial liabilities at amortized cost
category.
These
financial
liabilities
are
recognized
initially
at
fair
value
minus
transaction
costs
that
are
attributable
to
the
issue of
these
liabilities, and
are subsequently
measured at
amortized cost,
using the
effective interest
rate (EIR)
method (as
described in
2.2.3
above).
Derecognition of financial liabilities
A
financial
liability is
derecognized
when
the obligation
under
the liability
is discharged,
cancelled or
expires.
When
an existing
financial liability of the Company is replaced by another
from the same counterparty on substantially
different terms, or the
terms
of an existing
liability are substantially
modified, such an
exchange or
modification is treated
as an extinguishment
of the original
liability and the recognition of a new liability and any difference
arising is recognized in the income statement.
The Company
considers the
terms to
be substantially
different,
if the
discounted present
value of
the cash
flows under
the new
terms,
including any
fees
paid net
of any
fees
received
and discounted
using the
original effective
interest
rate,
is at
least 10%
different from the discounted
present value of the remaining cash flows
of the original financial liability.
If an exchange
of debt instruments
or modification of
terms is accounted
for as an
extinguishment, any
costs or fees
incurred are
recognized
as
part
of
the
gain
or
loss
on
the
extinguishment.
If
the
exchange
or
modification
is
not
accounted
for
as
an
extinguishment, any costs or fees incurred adjust the carrying amount
of the liability and are amortized over the remaining term of
the modified liability.
Similarly,
when the
Company
repurchases
any
debt instruments
issued by
the Company,
it accounts
for
such transactions
as an
extinguishment of debt.
2.2.7 Fair value measurement of financial instruments
Fair
value of
financial instruments
is the
price that
would be
received to
sell an
asset or
paid to
transfer
a liability
in an
orderly
transaction
between
market
participants
at
the
measurement
date
under
current
market
conditions
in
the
principal
or,
in
its
absence, the most advantageous
market to which the Company
has access at that date. The fair
value of a liability reflects its
non-
performance risk.
When
available,
the
Company
measures
the
fair
value
of
an
instrument
using
the
quoted
price
in
an
active
market
for
that
instrument. A market
is regarded as
active if transactions
for the asset
or liability take
place with sufficient
frequency and volume
to provide
pricing information
on an ongoing
basis. If there
is no quoted
price in an
active market,
then the Company
uses other
valuation techniques that maximize the use of relevant observable inputs and minimize the use of
unobservable inputs. The chosen
valuation technique incorporates
all of the factors that market
participants would take into
account in pricing a transaction.
The Company has
elected to use mid-market
pricing as a practical
expedient for
fair value measurements
within a bid-ask spread.
The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price, i.e. the fair value
of the
consideration
given or
received
unless the
Company
determines
that
the fair
value
at
initial recognition
differs
from
the
transaction price.
In this case,
if the fair
value is
evidenced by
a quoted
price in an
active market
for an
identical asset
or liability
(i.e.
Level
1
input)
or
based
on
a
valuation
technique
that
uses
only
data
from
observable
markets,
a
day
one
gain
or
loss
is
recognized
in
the
income
statement.
On
the
other
hand,
if
the
fair
value
is
evidenced
by
a
valuation
technique
that
uses
unobservable inputs,
the financial instrument
is initially measured
at fair
value, adjusted
to defer
the difference
between the
fair
value at initial
recognition and the
transaction price (day
one gain or
loss). Subsequently the deferred
gain or loss
is amortized on
an appropriate
basis over the
life of the
instrument or released
earlier if a quoted
price in an
active market
or observable
market
data become available or the financial instrument
is closed out.
Notes to the Financial Statements
.
13
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2024 Financial
Statements
All assets and liabilities for which fair value is
measured or disclosed in the financial
statements are categorized within the fair value
hierarchy based on the lowest level
input that is significant to the fair value
measurement as a whole.
For assets and liabilities that
are measured at fair
value on a recurring basis,
the Company recognizes transfers
into and out of the
fair value hierarchy
levels at the beginning of the quarter in which a financial instrument's transfer
was effected.
2.2.8 Impairment of financial assets
The Company recognizes allowance for
expected credit losses (ECL) that
reflect changes in credit quality since initial recognition
to
financial assets
that are
measured at
AC. ECL
are a
probability-weighted
average
estimate
of credit
losses that
reflects the
time
value of money.
Upon initial recognition
of the financial instruments,
the Company records
a loss allowance equal
to 12-month ECL,
being the ECL
that result from default events
that are possible within the next twelve months.
Subsequently, for
those financial instruments
that
have
experienced
a
significant
increase
in
credit
risk
(SICR)
since
initial
recognition,
a
loss
allowance
equal
to
lifetime
ECL
is
recognized, arising from default
events that are possible over the expected life
of the instrument.
Accordingly,
ECL are recognized using a three-stage
approach based on the extent of credit deterioration
since origination:
•
Stage 1 – When there is no significant increase in credit risk since initial recognition of a financial instrument, an amount equal
to 12-month
ECL is recorded.
The 12 –
month ECL
represent a
portion of lifetime
losses, that result
from default
events that
are possible within the next 12 months after the reporting date and is equal to the expected cash shortfalls
over the life of the
instrument or group of
instruments, due to loss
events probable within the
next 12 months. Not
credit-impaired financial assets
that are either newly
originated or purchased,
as well as assets recognized
following a substantial
modification accounted for
as a derecognition, are classified initially in Stage 1.
•
Stage 2 – When a financial instrument experiences a SICR subsequent
to origination but is not considered to be in default,
it is
included
in
Stage
2. Lifetime
ECL
represent
the
expected
credit
losses
that
result
from
all possible
default
events
over
the
expected life of the financial instrument.
•
Stage 3 – Financial instruments that are considered to be in default are included in this stage. Similar to Stage 2, the allowance
for credit losses captures the lifetime expected
credit losses.
A financial asset is credit-impaired when one or more
events that have a detrimental
impact on the estimated future cash flows
of
that exposure have occurred:
•
The borrower faces a significant difficulty
in meeting his financial obligations.
•
There has been a breach of contract,
such as a default or past due event.
•
The Company,
for economic or contractual
reasons relating to the borrower’s
financial difficulty,
has granted to the
borrower
a concession(s) that the Company would not otherwise consider.
•
There is a probability that the borrower
will enter bankruptcy or other financial re-organization.
The Company
determines
the risk
of default
using an
internal credit
rating
scale. In
particular,
the Company
considers
financial
assets as credit impaired if the internal rating
of the counterparty corresponds to a rating
equivalent to "C" (Moody's rating
scale).
Significant increase in credit risk (SICR) and staging allocation
Determining
whether
a
loss
allowance
should
be
based
on
12-month
expected
credit
losses
or
lifetime
expected
credit
losses
depends on whether there has been a significant increase in credit
risk (SICR) of the financial assets since initial recognition.
At
each reporting
date,
the Company
performs
an assessment
as to
whether
the risk
of a
default
occurring over
the remaining
expected lifetime
of the
exposure has
increased significantly
from the
expected risk
of a default
estimated at
origination for
that
point in time.
Specifically, the assessment
of SICR is performed on an individual basis based on the number of notches downgrade
in the internal
credit rating scale since the origination date.
Notes to the Financial Statements
.
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31 December
2024 Financial
Statements
Measurement of Expected Credit Losses/ECL Key Inputs
The ECL calculations
are based on
the term structures
of the probability
of default (PD),
the loss
given default (LGD) and
the exposure
at
default
(EAD). Generally,
these parameters
are
based on
observed
point-in-time and
historical
data,
derived
by international
rating agencies.
The PDs are obtained by an
international rating agency using risk methodologies that
maximize the use of objective non-judgmental
variables and market data. The Company
assigns internal credit ratings to each counterparty
based on these PDs.
The Exposure at default
(EAD) is an estimate of
the exposure at a future
default date, taking
into account expected
changes in the
exposure after the reporting date.
The LGD is typically
based on historical
data derived mainly
from rating
agencies’ studies but may
also be determined
considering
the existing and expected liabilities structure
of the obligor and macroeconomic environment.
Presentation of impairment allowance
For financial assets measured at amortized cost, impairment allowance is
recognized as a loss allowance reducing the gross
carrying
amount of the financial assets in the balance sheet. The respective ECL
is recognised within impairment losses.
Write-off of financial assets
Where the Company has no reasonable expectations of recovering
a financial asset either in its entirety or a portion of it, the gross
carrying amount of that
instrument is reduced directly,
partially or in full, against
the impairment allowance. The
amount written-
off is considered as derecognized. Subsequent recoveries of amounts
previously written off decrease the amount
of the impairment
losses in the income statement.
2.2.9 Income tax
Income tax consists of current and
deferred tax.
(i) Current income tax
Income tax payable
on profits, based
on the applicable
tax law and
the tax rate
enacted at the reporting
date, is recognized
as an
expense in the period in which profits arise.
(ii) Deferred tax
Deferred
tax is
provided
in full,
using the
liability method,
on temporary
differences
arising between
the tax
base of
assets and
liabilities and
their carrying
amounts in
the financial
statements.
Deferred
tax assets
and liabilities are
measured at
the tax
rates
that are expected
to apply to the
period when the asset
is realized or
the liability is settled,
based on tax
rates (and tax
laws) that
have been enacted or substantively enacted
by the balance sheet date.
Deferred
tax
assets are
recognized
where
it is
probable
that
future taxable
profit
will be
available against
which the
temporary
differences can be utilized. The carrying amount of deferred tax assets is reviewed at each
reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the
asset to be recovered. Any such
reduction is reversed to the extent that it becomes probable that sufficient taxable profit will be available. The Company recognises
a previously
unrecognised
deferred
tax asset
to the
extent
that it
has become
probable
that future
taxable
profit will
allow the
deferred tax asset to be recovered.
The deferred tax asset on income tax losses
carried forward is recognized as an
asset when it is
probable that future taxable profits
will be available against which these losses can be utilized.
The
Company
has
applied the
mandatory
temporary
exception
(relief) to
the
requirement
of IAS
12 and
does
not recognise
or
disclose information about deferred
taxes arising from the Pillar Two
Income taxes.
(iii) Uncertain tax positions
The Company determines and assesses all material tax positions taken,
including all, if any, significant uncertain positions,
in all tax
years that are still subject
to assessment (or when
the litigation is in
progress) by relevant tax authorities. In
evaluating tax positions,
the
Company
examines
all
supporting
evidence
(Ministry
of
Finance
circulars,
individual
rulings,
case
law,
past
administrative
practices, ad hoc tax/legal
opinions etc.) to the
extent they are applicable
to the facts and
circumstances of the particular
Company’s
case/ transaction.
Notes to the Financial Statements
.
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In addition, judgments concerning the recognition of a provision against the possibility of
losing some of the tax positions are highly
dependent on advice received from internal/
external legal counselors. For
uncertain tax positions with a high level of uncertainty,
the Company recognizes, on a
transaction by transaction basis,
or together as a
group, depending on
which approach better predicts
the
resolution
of
the
uncertainty
using
an
expected
value
(probability-weighted
average)
approach:
(a)
a
provision
against
tax
receivable which has been booked
for the amount of income tax
already paid but further pursued
in courts or (b) a liability for
the
amount which is expected to be paid to the tax authorities. The Company presents in its balance sheet all uncertain tax balances as
current or deferred tax
assets or liabilities.
The Company as a general rule has opted to obtain
an ‘Annual Tax
Certificate’,
which is issued after a tax audit is performed by the
same statutory
auditor or audit firm
that audits the
annual financial statements.
Further information
in respect of the
Annual Tax
Certificate and the related tax
legislation, is provided in note 8.
2.2.10 Employee benefits
(i) Short term benefits
Short term employee benefits are those
expected to be settled wholly before
twelve months after the end of the annual reporting
period in which the employees render the related
services and are expensed as these services are provided.
(ii) Pension obligations
The Company provides
a number of defined
contribution pension
plans where annual
contributions are invested
and allocated to
specific asset categories. Eligible
employees are entitled to the
overall performance of the investment. The
Company's contributions
are recognized as employee benefit
expense in the year in which they are paid.
(iii) Standard legal staff retirement indemnity obligations (SLSRI) and termination
benefits
The
Company
operates
unfunded
defined
benefit
plans,
under
the
regulatory
framework.
In
accordance
with
the
local
labor
legislation,
the
Company
provides
for
staff
retirement
indemnity
obligation
for
employees
which
are
entitled
to
a
lump
sum
payment based
a) on the
number of years
of service, as
of the date
when employee
service first
leads to benefits
under the plan
until the date when further employee
service will lead to no material amount
of further benefits, and b) the level
of remuneration
at the date of retirement,
if they remain in the employment of the
Company until normal retirement
age. More specifically,
in line
with the decision of IFRIC Committee for IAS 19 fact pattern issued in May 2021, the attribution of the benefit begins from the date
when the employee
service first
leads to benefits
under the terms
of the plan,
and not from
the employment date,
until the date
when further employee service will lead to no material amount of further
benefits.
In addition,
the Company
provides termination
benefits mainly
in respect
of the
Voluntary
Exit Schemes
(VES), which
have been
implemented through
either lump-sum payments
or long-term leaves
during which
the employees will
be receiving a
percentage
of
a
monthly
salary,
or
a
combination
thereof.
Provision
has
been
made
for
the
actuarial
value
of
the
lump
sum
payable
on
retirement
(SLSRI)
and
termination
benefits
using
the
projected
unit
credit
method.
Under
this
method
the
cost
of
providing
retirement
indemnities and
termination benefits
is charged
to the
income statement
so as
to spread
the cost
over the
period of
service of the employees, in accordance with the respective actuarial
valuations which are performed every year.
The SLSRI and termination benefits obligation is calculated as the
present value of the estimated future cash outflows using interest
rates of
high quality corporate
bonds. The currency
and term to
maturity of the
bonds used are
consistent with
the currency
and
estimated term
of the retirement
benefit obligations.
Actuarial gains
and losses that
arise in calculating
the Company’s
SLSRI and
termination benefits obligations
are recognized
directly in other comprehensive
income in the period
in which they occur
and are
not reclassified to the income statement
in subsequent periods.
Interest cost
on the staff
retirement indemnity
and termination
benefits obligations,
as well as
service cost,
consisting of
current
service cost, past service cost and gains or losses on settlement
are recognized in the income statement.
Termination benefits are payable when employment is
terminated by the Company
before the normal retirement date,
or whenever
an employee accepts voluntary redundancy
in exchange for these benefits
(including those in the context of
the VES implemented
by the Company). The Company recognizes termination benefits at the earlier of the following dates: (a) when the Company can no
longer
withdraw
the
offer
of
those
benefits;
and
(b)
when
the
Company
recognizes
costs
for
a
restructuring
that
involves
the
payment of
termination benefits.
Any reversals
of the SLRSI
obligation arising
from employees
that are
included in the
long-term
leaves
scheme
are
accounted
for
as
a
curtailment
gain
recognized
in
the
income
statement.
In
the
case
of
an
offer
made
to
Notes to the Financial Statements
.
16
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31 December
2024 Financial
Statements
encourage voluntary
redundancy,
the termination
benefits are measured
based on the
number of employees
expected to
accept
the offer. Termination benefits falling due more than 12
months after the
end of the
reporting period are
discounted to their present
value.
(iv) Performance-based cash payments
The Company's Management awards high performing employees with bonuses in cash, from time to time, on a discretionary basis.
Cash
payments
requiring
only
Management
approval
are
recognized
as
employee
benefit
expenses
on
an
accrual
basis.
Cash
payments requiring General
Meeting approval as distribution of
profits to staff
are recognized as
employee benefit expense in the
accounting period that they are approved
by the Company’s shareholders.
(v) Share-based payments
The Company’s Management awards
employees with bonuses in the form of shares and share options on a discretionary basis and
after taking
into
account the
current
legal framework.
Non-performance
related
shares vest
in the
period granted.
Share based
payments
that
are
contingent
upon
the
achievement
of
a
performance
and
service
condition,
vest
only
if
both
conditions
are
satisfied.
The fair
value of
the share
options granted
is recognized
as an
employee benefit
expense over
the vesting
period,
with an
equal
credit in equity
i.e. no impact on
the Company’s
equity. The
amount ultimately recognised
as an expense
is based on the
number
of awards that meet the related
service and non-market performance conditions at the
vesting date.
The fair value of the share
options at grant date
is determined by using an adjusted
option pricing model which takes
into account
the exercise
price, the
exercise
dates,
the term
of the
option, the
share
price at
grant
date
and expected
price volatility
of the
underlying share, the
expected dividend yield
and the risk-free
interest rate
for the term
of the options.
The expected volatility
is
measured at the grant date of the options
and is based on the historical volatility of the share price.
For share-based payment awards with non-vesting conditions, the fair
value of the share-based payment at grant date also reflects
such conditions and there is no true-up for differences
between expected and actual outcomes.
When the options are exercised and new shares are issued, the proceeds received net
of any directly attributable transaction costs
are credited to share capital
(par value) and share premium.
Share
options
granted
by the
Company
to
employees
of
group
entities
are
treated
as
a contribution
by
the Company
to
these
entities, thus increasing the investment cost
in them.
2.2.11 Related party transactions
Related parties of the Company include:
(a) an entity that
has control over
the Company and
entities controlled, jointly
controlled or significantly
influenced by this entity,
as well as members of its key management
personnel and their close family members;
(b) an entity that has significant influence over the
Company and entities controlled by this entity;
(c) members of key management personnel of
the Company, their close family members and entities
controlled or jointly controlled
by the abovementioned persons;
(d) subsidiaries; and
(e) post-employment benefit plans established
for the benefit of the Group’s
employees.
Transactions
of similar nature are disclosed
on an aggregate basis. All
banking transactions entered into
with related parties are in
the normal course of business and are conducted on an arm's length
basis.
2.2.12 Provisions and contingent liabilities
Provisions are recognized when the Company
has a present legal or constructive obligation
as a result of past events, it is probable
that an
outflow of resources
embodying economic benefits
will be required
to settle
the obligation,
and reliable estimates
of the
amount of the obligation can be made.
Notes to the Financial Statements
.
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2024 Financial
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The amount
recognized
as a
provision
is the
best
estimate
of the
expenditure
required
to settle
the present
obligation
at each
reporting date,
taking into
account the
risks and
uncertainties surrounding
the amount
of such expenditure.
Where the
effect of
the time value of
money is material, the amount of
the provision is the
present value of the estimated future expenditures expected
to be required to settle the obligation.
Provisions are
reviewed at
each reporting
date and
adjusted to
reflect the
current best
estimate. If,
subsequently,
it is
no longer
probable
that
an
outflow
of
resources
embodying
economic
benefits
will
be
required
to
settle
the
obligation,
the
provision
is
reversed.
A provision
is not
recognized
and a
contingent
liability is
disclosed when
it is
not probable
that
an outflow
of resources
will be
required to
settle the obligation,
when the amount
of the obligation
cannot be measured
reliably or in
case that the
obligation is
considered possible and is subject to the occurrence or non-occurrence
of one or more uncertain future events.
2.2.13 Share capital
Ordinary shares and preference
shares are classified as equity.
Incremental costs directly attributable
to the issue of new shares or
options are shown in equity as a deduction from the proceeds, net
of tax.
Dividend distribution
on shares
is recognized
as a
deduction in
the Company’s
equity when
approved by
the General
Meeting of
shareholders
and the
required regulatory
approvals,
if any,
are obtained.
Interim dividends
are recognized
as a
deduction in
the
Company's equity when approved by the Board
of Directors.
Intercompany
non-cash
distributions
that
constitute
transactions
between
entities
under
common
control
are
recorded
in
the
Company’s equity by reference
to the book value of the assets distributed.
Where the Company purchases own shares (treasury shares), the consideration paid including any directly attributable incremental
costs (net
of income
taxes), is
deducted from
shareholders’ equity
until the
shares are
cancelled, reissued
or disposed
of. Where
such shares are subsequently sold or reissued, any
consideration received is included in shareholders’
equity.
2.2.14 Cash and cash equivalents
Cash and cash equivalents include cash in hand and due from credit
institutions that are all carried at amortized
cost.
3.
Critical accounting estimates and judgments in applying accounting policies
In
the
process
of
applying
the
Company’s
accounting
policies,
the
Management
makes
various
judgments,
estimates
and
assumptions
that
may
affect
the
reported
amounts
of
assets
and
liabilities,
revenues
and
expenses
recognized
in
the
financial
statements
within the
next financial
year and
the accompanying
disclosures. Estimates
and judgments
are continually
evaluated
and
are
based
on
current
conditions,
historical
experience
and
other
factors,
including
expectations
of
future
events
that
are
believed to be reasonable under the circumstances.
Revisions to estimates are recognized
prospectively.
The most significant
areas in which the
Company makes
judgments, estimates and
assumptions in applying its
accounting policies
are set out below:
3.1
Impairment losses on financial assets
The expected
credit losses
(ECL) measurement
of financial
instruments requires
management to
apply judgement
relating to
the
risk parameters
used in
the calculation
of the
ECL and
in assessing
whether
a significant
increase of
credit
risk (SICR)
event
has
occurred
since
initial
recognition.
These
estimates
are
based
on
quantitative
and
qualitative
information
reasonable
and
supportable forward looking information. A degree of uncertainty is involved
in making estimations using assumptions that may be
subjective and sensitive to the risk factors.
Specifically, the assessment
of SICR is performed on an individual basis based on the number of notches downgrade
in the internal
credit
rating
scale since
the origination
date,
while the
PD used
for
the ECL
measurement
is received
by an
international
rating
agency using
risk methodologies
that
maximize
the use
of observable
variables
and market
data.
Furthermore,
the LGD
used is
based on historical data
derived from rating
agencies’ studies that present
the recoveries on such
instruments taking into
account
the seniority of the exposure.
The
Company
independently
validates
all
ECL
key
inputs
and
underlying
assumptions
used
in
the
ECL
measurement
through
competent resources.
Notes to the Financial Statements
.
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31 December
2024 Financial
Statements
3.2
Impairment losses on investment in subsidiaries
The Company assesses
for impairment its
investment in subsidiaries at
each reporting date
as described in
note 2.2.4. If
an indication
of impairment exists, the
Company performs an impairment test
by comparing the carrying
value of the
investment in the subsidiary
with its
estimated
recoverable
amount, determined
as the
higher of
its fair
value less
cost to
sell and
its value
in use,
based on
reasonable and supportable information. The calculation of the recoverable amount involves the exercise of judgement in selecting
the appropriate parameters,
such as the applicable discount and growth rates.
3.3 Income tax
The Company
is subject
to income
taxes
and estimates
are required
in determining
the liability
for
income taxes.
The Company
recognizes liabilities
for anticipated
tax audit issues
based on estimates
of whether additional
taxes will
be due or
for anticipated
tax
disputes.
Where
the
final
tax
outcome
of
these
matters
is
different
from
the
amounts
that
were
initially
recorded,
such
differences will impact the income tax in the
period in which such determination is made.
In addition, the
Company recognizes deferred tax assets to
the extent that it
is probable that
sufficient taxable profit will be
available
against
which unused
tax
losses and
deductible temporary
differences
can be
utilized.
Recognition
therefore
involves
judgment
regarding the future financial performance of the Company.
As at 31 December 2024, based on the Management’s assessment the
Company is not expected to have sufficient
future taxable profits, against
which the unused tax losses can be utilized (note
8).
3.4 Retirement and termination benefit obligations
The present value of the retirement
and termination benefits’ obligations
depends on a number of factors
that are determined on
an
actuarial
basis
using
a
number
of
assumptions,
such
as
the discount
rate
and
future
salary
increases.
Any
changes
in
these
assumptions impact the carrying amount of the respective benefits’
obligations.
The
Company
determines
the
appropriate
discount
rate
used
to
calculate
the
present
value
of
the
estimated
retirement
and
termination
benefits’
obligations,
at
the end
of
each year
with reference
to
interest
rates
of
high quality
corporate
bonds. The
currency and term
to maturity of
the bonds used
are consistent
with the currency
and estimated average
term to maturity
of the
retirement
benefit
obligations.
The
salary
rate
increase
assumption
is
based
on
future
inflation
estimates
reflecting
also
the
Company's reward structure
and expected market conditions.
Other assumptions
for retirement
and termination
benefits’ obligations,
such as
future inflation
estimates,
are based
in part
on
current and expected market
conditions.
For
information
in
respect
of
the
sensitivity
analysis
of
the
Company’s
retirement
and
termination
benefits’
obligations
to
reasonably
possible,
at
the
time
of
preparation
of
these
financial
statements,
changes
in
the
abovementioned
key
actuarial
assumptions, refer to note 13.
3.5 Share-based payments
The Company
grants
shares and
share options
to its
employees as
well as
the employees
of the
Group’s
entities, as
a common
feature of employee remuneration.
For shares granted to employees, the fair value is measured directly at the market
price of the entity’s shares, adjusted to take into
account
the terms
and conditions
upon which
the shares
were granted.
For share
options granted
to employees,
in many
cases
market prices are not available because
the options granted are subject to
terms and conditions that
do not apply to
traded options.
If this
is the
case, the
Company estimates
the fair
value of
the equity
instruments granted
using a
valuation technique,
which is
consistent with generally accepted
valuation methodologies.
The
valuation
method
and the
inputs
used to
measure
the share
options
granted
to
employees
of
the
Company
and its
Group
entities are presented in note 16.
4.
Financial risk management and fair value
The Company
is exposed
to financial
risks such
as credit
risk, market
risk (including
currency and
interest
rate risk)
liquidity risk,
operational risk and other non-financial risks, as well as to sustainability
risks.
Notes to the Financial Statements
.
19
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31 December
2024 Financial
Statements
4.1
Financial risk factors and risk management
As part of its overall system of internal controls the Company has engaged in a Service Level Agreement (SLA) with Eurobank S.A. in
order
to
receive
supporting
and advisory
services in
all applicable
areas
of
risk
management
(credit,
market,
liquidity
and non-
financial risks) undertaken by the Company.
The
Company’s
overall
risk
management
strategy
seeks
to
minimize
any
potential
adverse
effects
on
its
financial
performance,
financial position and cash flows.
The main financial risks to which the Company is exposed relate
to:
(a) Credit risk
The Company takes
on exposure to
credit risk which
is the risk that
a counterparty will
be unable to
fulfill its payment
obligations
in
full
when
due.
The
Company
is
exposed
to
credit
risk
arising
mainly
from
subordinated
instruments
(note
9)
issued
by
its
subsidiary Eurobank S.A. and
from its deposits that
are placed with the
latter of € 265
million. Accordingly,
the aggregate
carrying
amount of the above financial assets approximates
the maximum credit risk exposure of the Company.
(b) Market risk
The Company
takes
on exposure
to market
risk, which
is the
risk of
potential
financial loss
due to
an adverse
change in
market
variables, such as interest rates
and foreign exchange rates.
The
Company’s
interest
rate
risk,
which
relates
to
the
position
in
the
aforementioned
subordinated
fixed
rate
instruments,
is
eliminated by
the subordinated
Tier II
debt instruments
issued by
the Company,
which have
equivalent
terms with
those of
the
forme
r.
With respect to the deposits and borrowing of the Company, a sensitivity analysis is performed to assess the impact on net interest
income (NII) to a hypothetical change in the market
interest rates.
The impact on NII is calculated
under the scenario of an instantaneous
parallel shift of all interest
rates by +/-
100bps, for a 1-year
period, assuming a static balance sheet
approach. As at 31 December 2024 the
impact on NII, under the scenario of a parallel
shift
in
the yield
curves, stands
at
€ 2
million
(+100bps)
and €
-2 million
(-100bps)
(31 December
2023: €
2 million
and €
-2 million,
respectively).
The Company’s financial assets and liabilities are
in Euro, therefore, currency
risk is eliminated.
(c) Liquidity risk
The maturity
of the Company’s
main assets
and liabilities, which
relate to
the aforementioned
subordinated instruments,
match,
and
the
underlying
cash
flows
are
the
same.
Accordingly,
the
Company’s
liquidity
or
cash
flow
risk
for
these
instruments
is
substantially eliminated. In addition, the majority of the Company’s
aforementioned deposits with Eurobank S.A. mature within six
months.
(d) Sustainability risks
Sustainability
risks
are
defined
as
potential
losses
arising
from
any
negative
financial
impact
for
the
Company,
stemming
from
current or prospective impacts of any climate-related & environmental, social or governance event(s) on Company’s counterparties
or invested assets.
4.2
Fair value of financial assets and liabilities
The Company’s financial instruments carried at amortized cost are categorised into the three levels of fair value hierarchy
based on
whether the inputs to their fair values are market
observable or unobservable, as follows:
●
Level 1
- Financial instruments
are measured
based on quoted
prices (unadjusted)
in active
markets for
identical financial
instruments that the Company
can access at the measurement
date. A market
is considered active when quoted
prices are
readily and
regularly available
from an
exchange, dealer,
broker,
industry group,
pricing service, or
regulatory agency
and
represent actually and regularly occurring transactions. The Company’s financial instruments
categorised into Level 1 of the
fair
value
hierarchy
refer
to
certain
subordinated
instruments
issued
by
its
subsidiary,
Eurobank
S.A.
and
held
by
the
Company (note 9) and the related subordinated
Tier II instruments issued by the Company (note 12).
Notes to the Financial Statements
.
20
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31 December
2024 Financial
Statements
●
Level
2
–
Financial
instruments
are
measured
using
valuation
techniques
with
inputs
other
than
level
1
quoted
prices,
observable either directly or indirectly, such as (i)
quoted prices for similar financial instruments in
active markets (ii) quoted
prices for identical financial instruments in markets that are
not active, (iii) inputs other than quoted prices that are directly
or indirectly observable, mainly interest rates and yield curves observable at commonly quoted intervals, forward
exchange
rates, equity
prices, credit spreads
and implied volatilities
obtained from
internationally recognised
market data
providers
and (iv) other
unobservable inputs which
are insignificant to
the entire
fair value
measurement.
As at 31
December 2024,
none of the Company’s financial instruments
were categorized into
Level 2 of the fair value hierarchy.
●
Level
3
-
Financial
instruments
are
measured
using
valuation
techniques
with
significant
unobservable
inputs.
When
developing
unobservable
inputs,
best
information
available
is used,
including own
data,
while
at
the
same
time
market
participants’
assumptions
are
reflected
(e.g.
assumptions
about
risk).
The
Company’s
financial
instruments,
which
are
categorised into Level 3
of the fair
value hierarchy refer to the deposits
with Eurobank S.A.,
certain subordinated instruments
issued by its
subsidiary,
Eurobank S.A. and
held by the
Company (note
9) and the
related subordinated
Tier II instruments
issued by the Company (note 12).
Company's valuation processes and techniques
The fair
value of
the subordinated
Tier II
debt instruments
issued by
the Company
(note 12)
is determined
using quoted
market
prices, if available. If quoted
prices are not available, fair
values are determined based on
third party valuations, quotes
for similar
debt securities or by
discounting the expected cash flows at
a risk-adjusted rate, where the Company’s own credit risk is
determined
using inputs indirectly
observable, i.e. quoted
prices of similar
securities issued by
the Group or
other Greek issuers.
For the year
ended 31
December 2024,
the Company
has enhanced
the methodology
applied for
the classification
of debt
securities into
the
three levels of
the fair value
hierarchy,
by assigning a
rating scale for
each debt security,
based on the quality
and quantity of the
market
data
inputs used
to
calculate
its fair
price at
a specific
date.
The debt
securities are
then
allocated
into
levels based
on
specific rating thresholds representing
highly liquid to thinly traded debt securities.
Based on the above, as at 31 December 2024, the fair value of the Company’s Tier II debt instruments issued by the Company (note
12) classified at Level 1 of the fair value hierarchy amounted to € 691 million, while those categorized at Level 3 amounted to
€ 954
million (2023: € 1,226 million categorized at
Level 2).
Respectively,
the fair
value of
the debt
instruments
issued by
the Bank
and held
by the
Company
(note 9),
which is
determined
based on the valuation of the related subordinated Tier II debt instruments issued by the Company,
amounted to € 1,645 million, €
691 million
of
which were
categorized
at
Level
1 of
the
fair value
hierarchy
and €
954 million
at
Level
3 (2023:
€ 1,226
million
categorized at Level 2).
Moreover,
the carrying amount of the Company’s borrowing and deposits with Eurobank
S.A. represent reasonable approximation
of their fair value.
5.
Net interest income
In the
year
ended 31
December 2024,
the interest
expense
that
was
recognised
in the
income statement
mainly relates
to
the
subordinated Tier II instruments issued by the Company,
while the interest income of a similar amount relates to the
subordinated
Tier II notes issued by Eurobank S.A. and held by the Company.
Notes to the Financial Statements
.
21
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31 December
2024 Financial
Statements
6.
Other income/(expenses)
In the year ended 31 December 2024, other income /(expenses),
amounting to € 4 million (2023: € 4 million), consist
of € 2 million
income from IT
services (2023: € 3 million)
and € 2 million income
regarding loan
portfolio’s related
services provided to the
Bank
(2023: € 1 million).
7.
Operating expenses
In the year ended 31 December 2024, the operating
expenses of € 10 million (2023: € 11 million) mainly refer:
a) to staff cost € 5.0
million (2023: € 4.4
million) and b) other administrative expenses €
5.4 million (2023: €
6.3 million). Administrative expenses include
€ 3.7
million
(2023: €
4.3 million)
insurance
premiums
relating
to
the
Group’s
financial lines
insurance,
including protection
for
professional liability.
8.
Income tax
According
to Law
4172/2013 currently
in force,
the Greek
corporate
tax rate
for
legal entities
other than
credit institutions
(i.e.
credit institutions that fall
under the requirements of article 27A
of Law 4172/2013 regarding eligible DTAs/deferred
tax credits) is
22%.
In
addition,
the
withholding
tax
rate
for
dividends
distributed,
other
than
intragroup
dividends,
is
5%.
In
particular,
the
intragroup dividends under certain preconditions
are relieved from both income and withholding tax.
For the year ended
31 December 2024, an
amount of € 4 million
current income tax
has been recognized
by the Company related
to the top
up tax (see
below). Based on
the management’s assessment the
Company is not
expected to have sufficient future
taxable
profits against
which the unused tax
losses can be utilized
and accordingly,
in the year
ended 31 December 2024,
no deferred
tax
has been recognized in the statement
of comprehensive income.
Pillar Two income taxes
The Pillar
Two
legislation that
introduces a
minimum global tax
rate at
15% on multinational
entities with
consolidated revenues
over € 750 million
(top up tax)
is effective
as of 1
January 2024. In
accordance with the
Pillar Two
legislation, the Ultimate
Parent
Entity of an
MNE Group is
primarily liable for the
Globe Top-up Tax of all Low-Tax (subject to an ETR below
15%) Constituent Entities.
Top-up taxation
is mainly triggered when the jurisdictional GloBE
ETR is below 15% and is
levied on the aggregated Globe Pillar Two
results of all Constituent Entities per jurisdiction.
The
Company,
as
the
ultimate
parent
entity
of
the
Group,
has
identified
potential
exposure
to
Pillar
Two
income
taxes
mainly
through its subsidiaries in Bulgaria and Cyprus, containing the operations of
Eurobank Cyprus and those of Hellenic
Bank group. The
Pillar
Two
effective
tax
rate
is lower
than
15%
in
the
above
jurisdictions
mainly
due
to
their
nominal
corporate
tax
rates
(CIT)
applying on their profits (i.e.
the current CIT in Bulgaria and
Cyprus is 10% and 12.5%
respectively). For the year ended 31 December
2024, the Group has recognized a current tax expense
of € 21.6 million related to the top up tax applicable on the profits earned in
the aforementioned jurisdictions.
For the year
2024, the Company
is required to
pay a Top
-up Tax
with respect to
earnings of Eurobank
Cyprus and its
subsidiaries,
and the corresponding tax recognized
for the year ended 31 December 2024 amounts to € 4 million.
Tax certificate
and open tax years
For fiscal years starting from
1 January 2016
onwards, pursuant to the
Tax Procedure Code, an ‘Annual Tax Certificate’ on an optional
basis, is provided
for the Greek
entities, with annual
financial statements
audited compulsorily,
which is issued after
a tax audit
is
performed by the same
statutory auditor or audit
firm that audits
the annual financial
statements. The Company has opted
to obtain
such certificate.
The Company’s
open tax years
are 2020-2024. The
tax certificates,
which have been
obtained by the Company
are unqualified for
the open tax years until 2023, while for
the year ended 31 December 2024, the tax audit from external auditor
is in progress.
In accordance with the Greek
tax legislation and the respective
Ministerial Decisions issued, additional
taxes and penalties
may be
imposed by the Greek tax authorities following a tax audit
within the applicable statute of limitations (i.e. five years as from the
end
of the
fiscal year
within
which the
relevant
tax
return
should have
been submitted)
,
irrespective
of whether
an unqualified
tax
certificate has been obtained from the tax
paying company.
Notes to the Financial Statements
.
22
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31 December
2024 Financial
Statements
In reference to its total uncertain tax positions, the Company assesses all relevant
developments (e.g. legislative changes, case law,
ad hoc tax/legal opinions, administrative
practices) and raises adequate provisions.
Unused tax losses
As at 31 December 2024, the Company has not
recognised deferred tax asset (DTA) on unused tax losses amounted to € 276 million
(2023: € 337
million). The
analysis of
unrecognized DTA
on unused
tax losses
of the Company
per year
of maturity
of related
tax
losses is presented in the table below:
9.
Investment securities
As at 31 December 2024, the
total carrying amount of the subordinated debt instruments, issued by the
Bank, held by the Company
and categorised as at amortized
cost, amounted to € 1,556 million (31 December 2023: € 1,277 million), including
accrued interest
of
€ 15.2
million
(31
December
2023: €
32.9 million),
€ 6.5
unamortized
issuance
costs
(31 December
2023:
€
4.2 million)
and
impairment
allowance
of
€
2.5
million
(31
December
2023:
€
1.5
million)
(12-month
ECL).
In
particular,
in
the
year
ended
31
December 2024,
the Company
recognised
in the
statement
of comprehensive
income €
1 million
loss, in
relation
to impairment
allowance (31 December 2023: € 1.2 million gain).
Post balance sheet event
In January 2025, the Bank following the issuance of a € 589 million subordinated Tier II debt instrument
by the Company (note 12),
issued a subordinated instrument of equivalent
terms, held by the Company.
10.
Shares in subsidiaries
The following is a listing of the Company's subsidiaries held
directly at 31 December 2024:
(a) Be Business
Exchanges Single
Member Societe Anonyme
of Business Exchanges
Networks and Accounting
and Tax
Services,
Greece
In September 2024, Εurobank Holdings acquired an additional participation interest of 1.99% in the company, therefore its holding
in the
company’s
share capital
reached 100%.
In October
2024, following
the above
transaction,
the name
of the
company
was
amended with the inclusion of the term “Single member”.
Initiation of the merger process between Eurobank Ergasias
Services and Holdings S.A. and Eurobank S.A.
On 19
December 2024,
Eurobank Holdings
announced that
its Board
of Directors
decided the
initiation of
the merger
process of
Eurobank Holdings with the Bank through absorption of the former by the latter,
in order that operational efficiencies and a leaner
group structure be achieved. The merger will be implemented with a combined application of Law 4601/2019 and article 16 of Law
2515/1997 and 31 December 2024, was defined as the merger transformation
balance sheet date.
Notes to the Financial Statements
.
23
|
Page
31 December
2024 Financial
Statements
Upon the
completion of
the merger
(a) Eurobank
Holdings ceases to
exist and
its shareholders
become shareholders
of the Bank
with the same
stakes and
the same number
of shares, receiving
the entirety
of Bank’s
newly issued shares
and (b) the
Bank, that
will
retain
its
banking
license,
substitutes
Eurobank
Holdings
as
universal
successor
in
the
totality
of
its
assets
and
liabilities
transferred to
the Bank, as they appear
in the transformation
balance sheet of Eurobank
Holdings and as it is formulated
until
the
completion of the merger.
Before the
completion of
the merger,
the shares
of the Bank
will be
listed in
the Athens
Exchange and
upon its
completion, they
will be distributed
to Eurobank Holdings
shareholders in
exchange of
the Eurobank Holdings
shares they possess
at a ratio
of one
newly issued share of the Bank for one existing share
of Eurobank Holdings.
The completion
of the
merger
is subject
to
all necessary
by Law
approvals,
including the
approval
of the
shareholders’
General
Meeting of both merging companies as well as the receipt of
all the necessary approvals of the competent Authorities.
11.
Other assets
As at 31 December 2024, other assets amounting to € 4 million (31 December 2023:
€ 4 million) primarily consist of (a) € 1.7 million
(31 December
2023: €
1.3 million)
prepaid expenses
mainly for
insurance premiums,
(b) €
1.7 million
(31 December
2023: €
1.2
million) receivables
for IT
services provided
to the
Group companies
and third
parties, (c) €
0.3 million (31
December 2023:
€ 0.3
million)
receivables
from
Fairfax
Group
relating
to
financial
consulting
services
(d)
€
0.1
million
in
relation
to
property
and
equipment and intangible assets (31 December 2023: € 0.2 million).
12.
Debt securities in issue
In January
2024, the
Company announced
the issuance
of a
€ 300
million subordinated
Tier II debt
instrument which
matures in
April 2034, is callable at par in April
2029 offering a coupon of 6.25%
per annum and is listed on the
Luxembourg Stock Exchange’s
Euro MTF market.
On the same date,
the Bank issued a
subordinated instrument
of equivalent terms,
held by the Company
(note
9). Further information about
the issue is
provided in the relevant announcement
published in the
Company’s website on 19 January
2024.
Post balance sheet event
In January
2025, the
Company announced
that
it has
successfully priced
the issuance
of €
400 million
subordinated
Tier II
debt
instruments (New Instruments) which mature
in April 2035, are callable at par from 30 January
2030 until 30 April 2030, offering a
coupon
of
4.25%
per
annum
and
are
listed
on
the
Luxembourg
Stock
Exchange’s
Euro
MTF
market.
In
addition,
the
Company
announced an
any-and-all exchange
offer for
the Tier
II notes
of its
indirect subsidiary,
Hellenic Bank,
of nominal
value of
€ 200
million, with additional Eurobank
Holdings Tier 2 subordinated
notes, issued under a
single series and with same
terms with the €
400 million subordinated notes. The offer
period was set from 21 January 2025 until 27 January 2025.
On 28 January 2025, the Company announced that it has decided to accept all existing notes offered
for exchange, pursuant
to the
exchange offer,
with nominal
value of €
157 million.
The nominal value
of new instruments
to be issued
is € 188.5
million, which
will form a single series with the New Instruments with a combined aggregate
nominal amount of € 589 million.
13.
Other liabilities
As at
31 December
2024, other
liabilities amounting
to €
6 million
(31 December
2023: €
2 million)
primarily consist
of (a)
€ 0.6
million (31 December 2023: € 0.9 million) accrued expenses, (b) € 0.9 million (31 December 2023: € 0.8 million) current payables to
suppliers
and (c)
€ 0.2
million (31
December 2023:
€ 0.2
million)
Standard
legal staff
retirement
indemnity obligations,
d) €
0.7
million employee termination benefits obligation in respect
of the new Voluntary Exit Scheme
(VES) that was launched by
the Group
in February 2024 and (e) € 4 million income tax payable
referring to top up tax (note
8).
Standard legal staff retirement
indemnity obligations (SLSRI) and termination benefits
The Company provides for staff
retirement indemnity obligation for
its employees, who are entitled to a lump sum payment based
on the number of years of service and the level of remuneration at the date of retirement, if they remain in the employment of the
Company until
normal retirement
age, in accordance
with the local
labor legislation.
The above
retirement indemnity
obligations
typically expose the Company
to actuarial risks such
as interest rate
risk and salary risk. Therefore,
a decrease in the discount
rate
used to
calculate the
present value
of the
estimated
future cash
outflows or
an increase
in future
salaries will
increase the
staff
retirement indemnity obligations of
the Company.
Notes to the Financial Statements
.
24
|
Page
31 December
2024 Financial
Statements
In addition, the Company has provided employee termination benefits mainly in
respect of the Voluntary Exit Schemes (VES), which
have been
implemented through
either lump-sum
payments or
long-term leaves
during which
the employees
will be
receiving a
percentage of a monthly salary,
or a combination thereof.
The table below presents the breakdown
of defined benefit obligations.
The table
below presents
a reconciliation
from the
opening to
the closing
balance for
staff retirement
indemnity obligations
and
employee termination benefits.
For SLSRI obligations the significant actuarial assumptions
(expressed as weighted averages)
were as follows:
As at 31
December 2024, the
assumption for
the price inflation
(weighted average)
is 2.0% (2023:
2.3%) and has
been taken
into
account in determining the above actuarial assumptions for
future salaries increases.
As at
31 December
2024, the
average
duration
of the
standard
legal staff
retirement
indemnity obligation
was 7
years
(2023: 7
years).
A quantitative
sensitivity analysis
based on reasonable
changes to significant
actuarial assumptions
as at 31
December 2024 is
as
follows:
An increase/(decrease)
of the
discount rate
assumed, by
50 bps/(50
bps), would
result in
a (decrease)/
increase of
the standard
legal staff retirement
obligations by (€ 0.01 million)/ € 0.01 million.
An increase/(decrease) of the future
salary growth assumed, by
0.5%/(0.5%), would result in
an increase /(decrease) of
the standard
legal staff retirement
obligations by € 0.01 million/ (€ 0.01 million).
The above sensitivity analysis is based
on a change in an assumption while holding
all other assumptions constant.
In practice, this
is unlikely to occur,
and changes in some of the assumptions may be correlated.
The methods
and assumptions
used in
preparing the
above sensitivity
analysis were
consistent
with those
used to
estimate the
retirement benefit obligation
and did not change compared to the previous year.
Notes to the Financial Statements
.
25
|
Page
31 December
2024 Financial
Statements
For
employee
termination
benefits, the
discount
rate
(weighted
average)
is the
significant
actuarial assumption,
which as
at
31
December 2024
stood
at
2.5% based
on the
applicable
tenor
of the
liabilities. On
the same
date,
an increase/(decrease)
of the
discount
rate
assumed,
by
50 bps/(50
bps),
would
result
in
a
(decrease)/increase
of
employee
termination
benefits
by
(€ 0.01
million)/ € 0.01 million.
14.
Share capital, share premium and treasury shares
As at
31 December
2024, the
par value
of the
Company's shares
is €
0.22 per
share (2023:
€ 0.22).
All shares
are fully
paid. The
movement of share capital and share
premium is as follows:
AGM decisions
On 23 July 2024, the Annual General Meeting (AGM) of the shareholders
of the Company, among others,
approved:
●
The cancellation of 52,080,673 treasury
shares acquired in 2023 from
Hellenic Financial Stability Fund. Following
the said
cancellation, the share capital and the
share premium of the Company decreased
by € 11,457,748.06 and
€ 16,274,764.99,
respectively.
●
The distribution of a cash
dividend of € 342 million from
the “Special Reserves” account,
following the approval
received
from the European
Central Bank (ECB)
on 5 June 2024
(note 15). The said
dividend corresponds to
a 30% payout
ratio of
the Group’s net profit for
2023 and a
gross dividend of
€ 0.09333045
per share, following
the above cancellation
of treasury
shares.
●
The distribution of € 404,330 to senior management and employees of the Company from the “Special Reserves” account
(note
15). In
addition, it
was noted
in AGM
that
the respective
amount
that
was
approved
to
be distributed
to
senior
management and employees of the Bank was € 26,237,474.
Share capital increase
Following the exercise
of share options granted
to executives of the
Group under the current
share options’ plan (see below), and
by virtue of the decision of
the Board of Directors
of the Company on 30 August
2024, the Company’s share
capital increased by
€
2,714,189.50 through the issue of 12,337,225 new common voting shares of a nominal value of € 0.22 per share
and exercise price
of €
0.23 per
share.
The difference
between
the exercise
price of
the new
shares
and their
nominal value,
net of
the expenses
directly attributable
to the equity transaction,
amounted to € 100,899.18
and was recorded
in the account “Share
premium”.
The
new shares were listed on the Athens
Exchange on 12 September 2024.
Notes to the Financial Statements
.
26
|
Page
31 December
2024 Financial
Statements
The following is an analysis of the movement in the number of the
Company’s shares outstanding:
15.
Reserves and retained earnings/(losses)
As of
31 December
2024, 'Special
reserves'
of €
1,312 million
(2023: €
1,414 million)
relate
to
dividends
from
participations.
In
particular, in December 2024, the Company recognised € 240 million dividend income, following the Bank’s
distribution of reserves
of equal amount to the Company (see below).
Dividends/ Shareholders’ remuneration
In the
third quarter
of 2024,
pursuant to
the abovementioned
decisions of
the AGM
of the shareholders
of the
Company,
a cash
dividend of
€ 342
million was
distributed to
the shareholders,
corresponding
to a
30% payout
ratio of
the Group’s
net profit
for
2023 and a gross dividend of € 0.09333045 per share.
In December 2024, the Bank proceeded with
the distribution of non-mandatory reserves
for a total amount of €
240 million which
is part of the Banks’ overall contribution
to its sole shareholder,
Eurobank Holdings, in order to enable the latter
to remunerate its
shareholders out
of the profits
of the
financial year
2024, in
accordance with
the provisions
of article
162 par.3
of Company
Law
4548/2018.
Based on the Group’s financial performance
for the financial year 2024, Eurobank Holdings intends to
remunerate its shareholders
with an
amount corresponding
to a 50%
payout ratio
of the Group’s
net profit
for 2024
less the negative
goodwill (€ 99.5
million
gain on acquisition
of a shareholding in
Hellenic Bank), subject to
approval of the
Annual General Meeting
of its shareholders
and
the regulatory authorities. The final remuneration
will be a combination of cash and share buyback.
16.
Share options
The Annual General
Meeting of the
shareholders of Eurobank
Holdings held on
28 July 2020 approved
the establishment
of a five
year shares
award plan,
starting from
2021, in the
form of
share options
rights by
issuing new shares
with a corresponding
share
capital
increase,
in
accordance
with
the
provisions
of
article
113
of
law
4548/2018,
awarded
to
executives
and
personnel
of
Eurobank Holdings and
its affiliated companies
according to article 32
of law 4308/2014. The
maximum number of rights
that can
Notes to the Financial Statements
.
27
|
Page
31 December
2024 Financial
Statements
be approved
was set at
55,637,000 rights,
each of which
would correspond
to one new
share with exercise
price equal to
€ 0.23.
The Annual General Meeting authorized the Board
of Directors of Eurobank Holdings to define
the eligible staff and determine the
remaining terms and conditions of the plan.
The final
terms and
the implementation
of the
share options
plan, which
is a
forward-looking
long-term incentive
aiming at
the
retention of
key executives,
are defined
and approved
annually by the
Board of
Directors in
accordance with
the applicable
legal
and regulatory framework, as well as the policies of the
Company and the Group.
The options are
exercisable in
portions, annually during
a period from
one to five
years. Each
portion may
be exercised
wholly or
partly and converted into shares
at the employees’ option,
provided that they remain
employed by the
Group until the
first available
exercise
date. Each
portion is
treated
as a
separate
award with
a different
vesting period
and different
fair value.
The corporate
actions that adjust the number and the price of shares also adjust accordingly
the share options.
The movement of share options during the year is analysed
as follows:
In July 2024,
the Group
awarded to
its executives
6,822,123 new share
options, exercisable
in annual portions
up to 2029,
out of
which 3,076,786 options were exercised
during the third quarter of 2024.
From the total
number of granted share
options exercisable in
2024, 12,337,225 options were
exercised during
the year,
resulting
in the issue of an equal number of new common voting shares.
The share options outstanding at the
end of the year
totaled to 21,348,600 (31 December
2023: 26, 863,702) and
have the following
expiry dates:
(1)
Based on the earliest contractual exercise date.
In accordance with the Company’s accounting
policy on employees’ share based payments, the grant
date fair value of the options
is recognized
as
an
expense
with
a corresponding
increase
in equity
over
the vesting
period. The
share
options
granted
by the
Company to employees of Group entities, are treated as a contribution by the Company to the Bank, being their parent entity, thus
increasing the investment cost of the
Company in the latter.
The fair
value at
grant date
is determined using
an adjusted
form of the
Black-Scholes model
for Bermudan
equity options which
takes into
account the exercise
price, the exercise
dates, the term
of the option,
the share price
at grant
date and expected
price
volatility of the underlying share, the expected dividend
yield and the risk-free interest
rate for the term of the options.
The weighted average
fair value of the share options granted
in July 2024 was € 1.66 (2023: € 1.13). The significant inputs into
the
model were
a share
price of
€ 2.021
(2023: €
1.442) at
the grant
date, exercise
price of
€ 0.23,
annualized
dividend yield
of 3%
(2023:
3%),
expected
average
volatility
of
32%
(2023:
41%),
expected
option
life
of
1-5
years,
and
a
risk-free
interest
rate
Notes to the Financial Statements
.
28
|
Page
31 December
2024 Financial
Statements
corresponding to the options’ maturities, based on the Euro swap yield curve. The expected volatility is measured at the grant date
of the options and is based on the average historical
volatility of the share price.
17.
Cash and cash equivalents
For the
purpose of
the cash
flow statement,
cash and
cash equivalents
with original
maturities of
three months
or less,
as at
31
December 2024, amount to € 25 million (31 December 2023: € 399 million).
In the year ended
31 December 2024,
the carrying amount of
a) the debt securities
in issue decreased by
€ 16 million
due to changes
in accrued
interest
and amortisation
of debt
issuance costs
(31 December
2023: increase
by €
1 million)
and b)
the investment
securities decreased by €
18 million due to changes
in accrued interest and amortisation of
premium/discounts (31 December 2023:
increase by € 1 million).
18.
Post balance sheet events
Details of post balance sheet events are provided
in the following notes:
Note 9 - Investment securities
Note 12 - Debt securities in issue
Note 19 – Related parties
19.
Related parties
Eurobank
Ergasias
Services and
Holdings S.A.
(the Company
or Eurobank
Holdings) is
the parent
company
of Eurobank
S.A. (the
Bank).
The Board of Directors
(BoD) of Eurobank Holdings is the same
as the BoD of the Bank and part
of the key management
personnel
(KMP)
of
the
Bank provides
services to
Eurobank
Holdings
according
to
the terms
of
the relevant
agreement
between
the two
entities.
Fairfax Group (“Fairfax”) is considered to
have significant influence over
Eurobank Holdings. Following the
changes in the
Company’s
share capital in the third quarter of 2024 (note 14), Fairfax held 33.29% of Eurobank Holdings’ total number of voting rights as at 31
December 2024 (31 December 2023: 32.93%),
based on the latest
notification that the Company
had received from the
entity. On
7 February 2025
Eurobank Holdings announced
that further to
its announcement dated
23 January 2025, it
has been informed
by
the entity that following the completion of
the sale of 80
million shares of the Company, Fairfax holds 32.89% of Eurobank Holdings’
share capital and voting rights. Further information
is provided in the Directors’ Report for
the year ended 31 December 2024.
A number
of transactions
are entered
into with
related parties
in the
normal course
of business
and are
conducted on
an arm's
length basis. The outstanding balances of the transactions with the Company’s
subsidiaries are as follows:
(1)
The expenses in relation
to KMP services
provided by the Company’s
subsidiary Eurobank S.A. are
included in Key
management compensation disclosed
below.
Notes to the Financial Statements
.
29
|
Page
31 December
2024 Financial
Statements
As
at
31
December
2024,
the
Company
has
recognised
receivables
and
operating
income
of
amount
€
0.33
million
related
to
financial consulting
services with
Fairfax
group (31
December 2023: €
0.32 million).
In addition,
for the
year ended
31 December
2024 the
Company
has
recognized
operating
expenses
of
€ 0.12
million
(2023:
€ 0.14
million)
related
to
the Group’s
associate
Eurolife FFH Insurance Group
Holdings S.A., which is also a member of Fairfax Group.
Key management compensation
In the year ended 31 December
2024, the Company recognized
Key management compensation
amounting to € 0.4 million
that is
referring mainly to KMP services provided by
Eurobank S.A. in accordance with the relevant agreement
(2023: € 0.2 million).
20.
External Auditors
The Company
has adopted
a Policy
on External
Auditors’ Independence
which provides
amongst others,
for the
definition of
the
permitted and non-permitted services the Company’s
auditors may provide further
to the statutory audit. For any
such services to
be assigned to
the Company’s
auditors there
are specific controlling
mechanisms in order
for the Company’s
Audit Committee to
ensure that (a) the non-audit
services assigned to “KPMG
Certified Auditors S.A.”,
along with the KPMG
network (KPMG), have been
reviewed and approved as required
and (b) there is proper balance between audit and permitted
non-audit work.
The total fees of the Company’s
independent auditor KPMG for audit and other services provided are
analyzed as follows:
(1)
Includes fees for statutory audit of the Company’s annual financial statements.
Notes to the Financial Statements
.
30
|
Page
31 December
2024 Financial
Statements
21.
Board of Directors
The Board
of Directors
(BoD) was
elected by
the Annual
General Meeting
of the
Shareholders
(AGM) held
on 23
July 2024
for a
three -
year term
of office
that will
expire on
23 July
2027, prolonged
until the
end of the
period the
AGM for
the year
2027 will
take place.
The BoD is as follows:
G. Zanias
Chairman, Non-Executive Member
F. Karavias
Chief Executive Officer
S. Ioannou
Deputy Chief Executive Officer
K. Vassiliou
Deputy Chief Executive Officer
B.P.
Martin
Non-Executive Member
A. Gregoriadi
Non-Executive Independent Member
I. Rouvitha Panou
Non-Executive Independent Member
R. Kakar
Non-Executive Independent Member
J. Mirza
Non-Executive Independent Member
C. Basile
Non-Executive Independent Member
B. Eckes
Non-Executive Independent Member
J. A. Hollows
Non-Executive Independent Member
E. Kotsovinos
Non-Executive Independent Member
Athens, 7 March 2025
Georgios P.
Zanias
Fokion C. Karavias
Harris V. Kokologiannis
I.D. No ΑI - 414343
I.D. No ΑΙ - 677962
I.D. No AN - 582334
CHAIRMAN
OF THE BOARD OF DIRECTORS
CHIEF EXECUTIVE OFFICER
GENERAL MANAGER OF GROUP FINANCE
CHIEF FINANCIAL OFFICER
KPMG Certified Auditors S.A.
44 Syngrou Avenue
117 42 Athens, Greece
Telephone:
+30 210 60 62 100
Fax:
+30 210 60 62 111
Email:
info@kpmg.gr
KPMG Certified Auditors S.A., a Greek Societe Anonyme and a member
firm of the KPMG global organization of independent member firms affiliated
with KPMG International Limited, a private English company limited by
guarantee.All rights reserved.
Certified Auditors
GCR 001352601000
Independent Auditor
’
s Report
To
the Shareholders of
Eurobank Ergasias Services and Holdings S.A.
Report on the Audit of the Separate and Consolidated Financial Statements
Opinion
We
have
audited the
Separate and
Consolidated Financial
Statements
of Eurobank
Ergasias
Services
and
Holdings S.A.
(the
“Company”)
which comprise
the
Separate
and
Consolidated
Balance Sheet as at
31 December 2024,
the Consolidated Income
Statement, the Separate
and
Consolidated Statements of Comprehensive Income, Changes in Equity and Cash
Flow for the
year
then
ended,
and
notes,
comprising
material
accounting
policies
and
other
explanatory
information.
In
our
opinion,
the
accompanying
Separate
and
Consolidated
Financial
Statements
present
fairly,
in
all
material
respects,
the
separate
and
consolidated
financial
position
of
Eurobank
Ergasias Services and Holdings
S.A. and its subsidiaries
(the “Group”) as at
31 December 2024
and its separate and
consolidated financial performance
and its separate and
consolidated cash
flows for
the year
then ended,
in accordance
with International
Financial Reporting
Standards
(IFRS), as adopted by the European Union
Basis for Opinion
We
conducted
our
audit
in
accordance
with
International
Standards
on
Auditing
(ISA),
as
incorporated
in
Greek
legislation.
Our
responsibilities
under
those
standards
are
further
described
in
the
Auditor’s
Responsibilities
for
the
Audit
of
the
Separate
and
Consolidated
Financial Statements section of our report. We are independent of the Company and the Group
in accordance with the International Ethics
Standards Board for Accountants International
Code
of Ethics for Professional Accountants, as incorporated
in Greek legislation, and with the ethical
requirements that are
relevant to the
audit of the
separate and consolidated
financial statements
in
Greece
and
we
have
fulfilled
our
other
ethical
responsibilities
in
accordance
with
the
requirements of the applicable legislation. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit
matters are
those matters,
that, in
our professional
judgment, were
of most
significance
in our audit of the Separate
and Consolidated Financial
Statements of the current period.
These
matters and the relevant significant assessed risks of material misstatement were addressed in
the context of our audit of the
Separate and Consolidated Financial
Statements as a whole, and
in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Impairment allowance on loans and advances at amortised cost
See
Notes 2.2.13
,
3.1
,
20
and
21
to the Consolidated Financial Statements.
The key audit matter
How the matter was addressed in our audit
Loans
and
advances
to
customers
at
amortized
cost
for
the
Group
amounted
to
EUR 52
245 million
as at
31 December 2024
(2023:
EUR
42
773
million)
and
impairment
allowance
for
expected
credit
losses
(“ECL”)
for the Group amounted to
EUR 1 309 million
as at 31
December 2024
(2023: 1 258
million).
Measurement
of
expected
credit
losses
on
loans
and
advances
at
amortised
cost
involves
significant
judgment
and
estimates.
The
key
areas
where
we
identified
greater
levels
of
management
judgement
and
therefore, increased
levels of
audit focus
in the
Group’s estimation of ECL are:
●
Significant Increase
in Credit Risk
(“SICR”)
– The identification of qualitative
indicators
for
identifying
a
significant
increase
in
credit
risk
for
staging
classification
is
judgmental
taking
also
into
account
the
current
macroeconomic
and
geopolitical
uncertainty.
●
Model estimations – Inherently judgmental
modelling
and
assumptions
are
used
to
estimate
ECL
which
involves
determining
Probabilities of Default
(“PD”), Loss Given
Our audit procedures included, among others:
Controls testing:
We
tested
relevant
manual,
general
IT
and
automated
controls
over
key
systems
used
in
the ECL process.
Main
aspects
of
our
controls
testing
involved
evaluating the design and testing the operating
effectiveness of the key controls over the:
●
Completeness
and
accuracy
of
the
key
inputs into the IFRS 9 impairment models.
●
Application of the staging criteria.
●
Model validation.
●
ECL adjustments.
●
Governance and
policies around
ECL
and
related approvals.
Test
of details:
Key
aspects
of
our
testing
included,
among
others the following:
●
We performed substantive procedures
on a
sample
basis
in
order
to
assess the
SICR
assessment
for
both
corporate
and
retail
portfolios.
Default (“LGD”), and Exposures
at Default
(“EAD”).
ECL
may
be
inappropriate
if
certain models
or underlying
assumptions
or
their
application
or
data
used
do
not
accurately
predict
defaults
or
recoveries
over
time
or
fail
to
reflect
the
estimated
credit
losses
of
loans
and
advances
to
customers.
As
a
result,
certain
IFRS
9
models, model assumptions and
data, are
the
key
drivers
of
complexity
and
subjectivity in
the Group’s
calculation of
the
ECL estimate.
●
ECL
adjustments
–
Adjustments
to
the
model-driven
ECL
results
are
raised
by
management
to
address
any
known
limitations
or
emerging
trends
as
well
as
risks
not
captured
by
models.
These
adjustments
are
inherently
uncertain
and
significant
management
judgement
is
involved especially
in relation
to the
current
macroeconomic
and
geopolitical
environment.
●
Macroeconomic
Forward
Looking
Information
scenarios
–
IFRS
9
requires
the Group
to measure
ECL on
an unbiased
forward-looking basis reflecting a
range of
future
economic
conditions.
Significant
management
judgement
is
applied
in
determining the
forward-looking economic
scenarios used,
the probability
weightings
associated
with
the
scenarios
and
the
complexity
of
models
used
to
derive
the
probability
weightings
applied
to
them,
especially
when
considering
the
current
macroeconomic
and
geopolitical
environment.
●
Individually
assessed
loans
–The
estimation of
future cash
flows, valuation
of
collateral
and
probability
weighting
of
scenarios constitute
assumptions with
high
estimation uncertainty.
Disclosures
in
the
Consolidated
Financial
Statements.
The
disclosures
regarding
the
Group’s
application
of
IFRS
9
are
key
for
the
understanding
of
the
significant
judgements
and material inputs to the
IFRS 9 ECL results,
●
We
assessed
the
appropriateness
of
adjustments
to
the
model
driven
ECL
results,
by
considering
the
assumptions,
reviewing
calculations
and
data
used
and
inspecting
the
governance
around
these
adjustments,
with
the
support
from
our
financial risk specialists.
●
We
assessed
the
reasonableness
and
appropriateness
of
the
macroeconomic
variables’
forecasts,
scenarios,
weights,
and models
applied, with
the support
from
our
specialists.
Our
testing
included
benchmarking against external sources.
●
We
performed
substantive
procedures
to
assess
the
completeness and
accuracy of
critical data input used in the ECL models.
●
We
reperformed
ECL
calculations
for
lending
exposures
in
all
stages,
with
the
support
from
our
financial
risk
specialists
and on a sample basis.
●
We
performed
substantive
procedures
to
assess
the
reasonableness
of
significant
assumptions
used
in
the
measurement
of
impairment
of
individually
assessed
credit
impaired
exposures,
including
the
assumptions
used
to
estimate
discounted
future
cash
flows
and
the
valuation
of
collaterals for
which we
have engaged
our
real estate valuation specialists.
Our financial risk specialists assisted with the:
●
Assessment
of
the
Group’s
impairment
methodologies conceptual soundness.
●
Assessment
of
the
Group’s
impairment
methodologies
implementation
by
evaluating the risk
parameter models used
as
well
as,
reperforming the
calculation
of
certain risk parameters, on a sample basis.
Assessing disclosures:
●
We
evaluated
the
adequacy
and
appropriateness
of
the
disclosures
in
the
Consolidated
Financial
Statements
that
address the
uncertainty which
exists when
determining
the
ECL.
In
addition,
we
assessed whether the disclosure of
the key
judgements
and
assumptions
was
sufficiently clear and explanatory.
as
well
as,
to
provide
transparency
of
the
credit risk exposures of the Group.
Recognition of deferred tax assets
See
Notes 2.2.17
,
3.5
and
13
to the Consolidated Financial Statements.
The key audit matter
How the matter was addressed in our audit
The
Group
has
recognized
deferred
tax
assets
of
EUR
3
780
million
as
at
31 December 2024 (2023: 3 991 million).
The
recognition
and
measurement
of
deferred
tax
assets
is
considered
a
key
audit matter as
it depends on
estimates of
future
profitability,
which
requires
significant
judgement
and
includes
the
risk of management bias.
Significant
judgement
and
especially
complex assumptions
and method,
due to
inherent
uncertainties
relate
to
the
following:
●
The
extent
that
there
are
probable
future taxable profits that will
allow the
deferred
tax
asset
amount
to
be
recovered in the foreseeable future.
●
Forecast of future taxable
profit, which
is mainly impacted by macroeconomic
forward-looking information.
Disclosures in the Consolidated Financial
Statements
The
disclosures
regarding
the
Group’s
application
of
the
Standards
in
this
area
are
key for
the
understanding of
the
key
judgements
surrounding
the
recoverability of deferred tax assets.
Our
audit
procedures,
included,
among
others
the
following:
●
We assessed the design and implementation of
controls
relevant
to
the
recognition
and
recoverability
of
deferred
tax
assets
including
the
approval
of
three-year
business
plan
and
monitoring of actual results against budgeted.
●
We
evaluated
the
appropriateness
of
the
assumptions
used
by
management
in
the
approved
three-year
business
plan
by
comparing the
revenue and
growth projections
to industry
trends and
ensuring consistency
with
strategic
plans.
We
also
evaluated
the
appropriateness
of
the
assumptions
used
and
the reasonableness of projections
for the period
that
lies
beyond
the
approved
three-year
business plan.
●
We assessed the accuracy of
forecasted future
taxable
profits
by
evaluating
the
accuracy
of
management’s
projections
of
prior
year
by
comparing them to actual results.
●
We
tested
the
accuracy
of
the
relevant
underlying
data
of
the
estimate,
including
the
conversion
of
future
accounting
profits
to
taxable profits.
●
Our
tax
specialists,
considering
current
tax
legislation,
assisted
to
confirm
the
completeness and
accuracy of
the relevant
tax
adjustments that produce the taxable results.
Assessing disclosures:
We evaluated the adequacy
and appropriateness of
the
disclosures
in
the
Consolidated
Financial
Statements
that
address
the
deferred
tax
asset
recoverability. In addition, we assessed whether the
disclosures of
the key
judgements and
assumption
were sufficiently clear and explanatory.
Use of IT systems relevant to the financial information
The key audit matter
How the matter was addressed in our audit
The Group’s
financial reporting
processes
are
dependent
to
a
large
extent
on
information
produced
by
the
Group’s
Information
Technology
(IT)
systems,
and/or automated processes
and controls
(i.e.
calculations,
reconciliations)
implemented in these systems.
The
above
is
a
key
audit
matter
as
the
Group’s
financial
reporting
systems
rely
heavily
on
complex
information
systems
that
process
very
large
number
of
transactions. These IT
systems functions
are based on
the operating effectiveness
of internal
controls in place
to assure the
completeness
and
accuracy
as
well
as
the
security
of
the
information
of
the
Group
that
produce
eventually
the
financial information to be included
in the
Consolidated Financial Statements.
We have evaluated
in collaboration
with our IT
Audit
specialists the general controls
over the IT systems,
databases
and
applications
that
support
the
financial reporting process of the Group.
For
this
purpose,
we
performed
procedures
as
follows:
●
We
evaluated
the
information
security
resilience of
the Group
by evaluating
the design
of key IT processes and
controls over financial
reporting.
●
We
evaluated
the
design
of
the
relevant
preventative and
detective general
IT
controls
over administration of
access to programs
and
data for the systems in
scope of our audit and,
we tested
the operating
effectiveness of
these
relevant controls.
●
We evaluated
the design
of the
relevant general
IT
controls
of
the
Group
over
program
development,
program
change
management
and
computer
operations
for
the
systems
in
scope of our audit and, we
tested the operating
effectiveness of these relevant controls.
Other Information
The Board of Directors is responsible
for the other information. The other
information comprises
the
information included
in the
Board of
Directors’ Report,
for
which reference
is made
in the
“Report on Other Legal and Regulatory Requirements” and the Declarations of the Members of
the Board of
Directors but
does not
include the
Separate and
Consolidated Financial
Statements
and our Auditor’s Report thereon.
Our opinion
on the
Separate and
Consolidated Financial Statements
does not
cover the
other
information and we do not express any form of assurance
conclusion thereon.
In
connection
with
our
audit
of
the
Separate
and
Consolidated
Financial
Statements,
our
responsibility
is
to
read
the
other
information
and,
in
doing
so,
consider
whether
the
other
information is materially inconsistent with the Separate and Consolidated Financial Statements,
or our
knowledge obtained
in the
audit, or
otherwise appears
to be
materially misstated.
If, based
on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in
this regard.
Responsibilities
of
the
Board
of
Directors
and
Those
Charged
with
Governance
for the Separate and Consolidated Financial Statements
The Board
of Directors is
responsible for the
preparation and fair
presentation of the
Separate
and Consolidated
Financial Statements
in accordance
with IFRS
as adopted
by the
European
Union, and for such internal
control as the Board of Directors
determines is necessary to
enable
the
preparation
of
separate
and
consolidated
financial
statements
that
are
free
from
material
misstatement, whether due to fraud or error.
In
preparing
the
Separate
and
Consolidated
Financial
Statements,
the
Board
of
Directors
is
responsible for assessing
the Company’s and
the Group’s ability
to continue as
a going concern,
disclosing, as applicable, matters related
to going concern and using the
going concern basis of
accounting unless the Board of
Directors either intends to
liquidate the Company and
the Group
or to cease operations, or has no realistic alternative but to do
so.
The
Audit
Committee
of
the
Company
is
responsible
for
overseeing
the
Company’s
and
the
Group’s financial reporting process.
Auditor’s
Responsibilities
for
the
Audit
of
the
Separate
and
Consolidated
Financial Statements
Our
objectives
are
to
obtain
reasonable
assurance
about
whether
the
Separate
and
Consolidated Financial
Statements as
a whole
are free
from material
misstatement, whether
due
to fraud
or error,
and to
issue an
auditors’ report
that includes
our opinion.
Reasonable
assurance
is a high
level of assurance, but
is not a
guarantee that an audit
conducted in accordance with
ISAs
which
have
been
incorporated
in
Greek
legislation
will
always
detect
a
material
misstatement
when
it
exists. Misstatements
can arise
from
fraud
or
error and
are
considered
material if, individually
or in
the aggregate, they
could reasonably be
expected to influence the
economic decisions of
users taken on
the basis
of these
Separate and Consolidated
Financial
Statements.
As part of an audit in accordance with ISAs, which have
been incorporated in Greek legislation,
we exercise
professional judgment
and maintain professional
skepticism throughout the
audit.
We also:
●
Identify
and
assess
the
risks
of
material
misstatement
of
the
separate
and
consolidated
financial statements,
whether due
to fraud
or error,
design and
perform audit
procedures
responsive
to
those
risks,
and
obtain
audit
evidence
that
is
sufficient
and
appropriate
to
provide a basis
for our opinion. The
risk of not
detecting a material misstatement resulting
from fraud
is higher
than for
one resulting
from error, as
fraud may
involve collusion,
forgery,
intentional omissions, misrepresentations, or the override of internal control.
●
Obtain
an
understanding of
internal
control
relevant
to
the
audit
in
order
to
design
audit
procedures that are appropriate in
the circumstances, but not
for the purpose of expressing
an opinion on the effectiveness of the Company’s and the Group’s internal control.
●
Evaluate
the
appropriateness
of
accounting
policies
used
and
the
reasonableness
of
accounting estimates and related disclosures made by the Board of Directors.
●
Conclude on the appropriateness of the Board of Directors’ use of the going concern basis
of
accounting and,
based on
the audit
evidence obtained,
whether a
material uncertainty
exists related to events or conditions
that may cast significant doubt on
the Company’s and
the Group’s ability
to continue
as a going
concern. If we
conclude that
a material
uncertainty
exists, we are required to draw attention in our auditors’ report to the related disclosures in
the Separate
and Consolidated
Financial Statements
or, if such disclosures
are inadequate,
to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the
date of our auditors’ report. However,
future events or conditions may cause the Company
or the Group to cease to continue as a going concern.
●
Evaluate the overall presentation, structure, and content of the Separate and Consolidated
Financial Statements,
including the
disclosures, and
whether the
separate and
consolidated
financial
statements
represent
the
underlying
transactions
and
events
in
a
manner
that
achieves fair presentation.
●
Plan and perform
the group audit
to obtain sufficient
appropriate audit evidence
regarding
the financial information of the entities or business activities
within the Group to express an
opinion
on
these
Group
Financial
Statements.
We
are
responsible
for
the
direction,
supervision
and
review
of
the
audit
work
performed for
purposes
of
the
group
audit.
We
remain solely responsible for our audit opinion.
We
communicate
with
those
charged
with
governance
regarding,
among
other
matters,
the
planned
scope
and
timing
of
the
audit
and
significant
audit
findings,
including any
significant
deficiencies in internal control that we identify during our audit.
We also
provide those
charged with
governance with
a statement
that we
have complied
with
relevant
ethical
requirements
regarding
independence
and
communicate
with
them
all
relationships and
other matters
that may
reasonably be
thought to
bear on
our independence,
and where applicable, related safeguards.
From
the
matters
communicated
with
those
charged
with
governance,
we
determine
those
matters that
were of most
significance in the
audit of the
Separate and Consolidated
Financial
Statements
of
the
current
period
and
are
therefore the
key
audit
matters. We
describe
these
matters
in
our
auditor’s report
unless
law
or
regulation
precludes
public
disclosure
about
the
matter
or
when,
in
extremely
rare
circumstances,
we
determine
that
a
matter
should
not
be
communicated in our report
because the adverse consequences of
doing so would reasonably
be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
1
Board of Directors’ Report
The Board of Directors is responsible for the preparation of the Board of Directors’ Report and
the
Sustainability Report
and
the
Corporate Governance
Statement that
are
included in
this
report. Our opinion
on the financial
statements does not
cover the Board
of Directors’ Report
and
we
do
not
express
an
audit
opinion
thereon.
Our
responsibility
is
to
read
the
Board
of
Directors’ Report and,
in doing so,
consider whether,
based on our
financial statements audit
work, the
information
therein is
materially misstated
or inconsistent
with the
financial statements
or our audit knowledge. Based
solely on that work
pursuant to the requirements of
paragraph
1, cases aa and b, of article 154C
of Law 4548/2018 and case ab, which does not include the
Sustainability Report
and for
which we
have issued
on date
7 March
2025 a
relevant limited
assurance report
in accordance
with the
International Standard
on Assurance
Engagements
3000 (Revised) we note that:
(a)
The Board
of Directors’
Report includes
a Corporate
Governance Statement
which provides
the information set by Article 152 of Law 4548/2018.
(b)
In our
opinion, the
Board of
Directors’ Report
has been
prepared in
accordance with
the
applicable
legal
requirements
of
Articles 150
and
153
of
Law 4548/2018
excluding
the
requirement for the submission of the
Sustainability Report of paragraph 5A of
Article 150
of
the
same
law
and
its
contents
correspond
with
the
accompanying
Separate
and
Consolidated Financial Statements for the year ended 31 December
2024.
(c)
Based on the knowledge
acquired during our audit,
relating to Eurobank Ergasias
Services
and Holdings S.A. and its environment, we have not identified any material misstatements
in the Board of Directors’ Report.
2
Additional Report to the audit Committee
Our audit
opinion on
the Separate
and Consolidated
Financial Statements
is consistent
with
the Additional Report
to the Audit Committee
of the Company dated
7 March 2025,
pursuant to
the requirements of article 11 of the Regulation 537/2014 of the European Union (EU).
3
Provision of non-Audit Services
We have
not provided to
the Company and
its subsidiaries any
prohibited non-audit services
referred to in article 5 of Regulation (EU) 537/2014.
The permissible non-audit services that
we have provided to the Company
and its subsidiaries
during
the
year
ended
31 December
2024
are
disclosed
in
Notes
20
and
47
of
the
accompanying Separate and Consolidated Financial Statements,
respectively.
4
Appointment of Auditors
We were
appointed for
the first
time as
Certified Auditors
of the
Company based
on the
decision
of
the
Annual
General
Shareholders’
Meeting
dated
10
July
2018.
From
then
onwards
our
appointment has been renewed uninterruptedly for a total period
of seven years based on the
annual decisions of the General Shareholders’ Meeting.
5
Operations Regulation
The Company
has an
Operations Regulation
in accordance
with the
content provided
by the
provisions of the article 14 of Law 4706/2020.
6
Assurance Report on the European Single Electronic Reporting Format
Subject Matter
We were engaged to perform a reasonable assurance engagement to examine
the digital files
of the company Eurobank Ergasias Services and Holdings S.A. (the Company
or/and Group),
which were
prepared in
accordance with
the European
Single Electronic Format
(ESEF) and
that include
the Separate
and Consolidated
financial statements
of the
Company and
the Group
for the year ended as at 31 December 2024 in XHTML format (JEUVK5RWVJEN8W0C9M24-
2024-12-31-en.xhtml),
and
also
the
file
XBRL
(JEUVK5RWVJEN8W0C9M24-2024-12-31-
en.zip) with the
appropriate mark up
of the those
consolidated financial statements, including
other
explanatory
information
(Notes
to
the
Financial
Statements)
(hereafter
the
“Subject
matter”), in order to
verify that it was
prepared in accordance with
the requirements set out
in
the Applicable Criteria section.
Applicable Criteria
The Applicable
Criteria for
the European
Single Electronic
Format (ESEF)
are defined
by the
European Commission Delegated Regulation (EU) 2019/815, as in force (hereafter “the ESEF
Regulation”)
and
the
2020/C
379/01
Commission
Interpretative
Communication
issued
on
10 November 2020, as required by
the Law 3556/2007 and the relevant
announcements of the
Hellenic Capital Markets Commission and the Athens Stock Exchange.
In summary, these Criteria provide, among others, the following:
●
All the annual financial reports must be prepared in XHTML format.
●
With
respects
to
the
consolidated
financial
statements
based
on
International Financial
Reporting Standards (IFRS), the financial information that is included in the Consolidated
Balance
Sheet,
Consolidated
Statements
of
Income
and
Comprehensive
Income,
Changes in Equity
and Cash Flow,
as well as
in the Notes
to the Consolidated
Financial
Statements, must
be marked
up with
XBRL tags and
“block tag”,
in accordance with
the
ESEF
Taxonomy,
as
in
force.
The
technical
requirements
for
the
ESEF,
including
the
relevant taxonomy, are included in the ESEF Regulatory Technical Standards.
Responsibilities of the Board of Directors and those charged with governance
The
Board
of
Directors
is
responsible
for
the
preparation
and
filing
of
the
Separate
and
Consolidated Financial
Statements of
the Company
and the
Group, for
the year
ended as
at
31 December 2024, in accordance with the Applicable Criteria, and for such internal control as
the Board of Directors determines
is necessary to enable
the preparation of digital
files that are
free from material misstatement, whether due to fraud or error.
Auditors’ Responsibilities
Our responsibility is to issue this
Report regarding the evaluation of the Subject Matter,
based
on our work performed, which is described below in the “Scope
of Work Performed” section.
Our
work
was
conducted
in
accordance
with
International
Standard
on
Assurance
Engagements
3000
(Revised)
“Assurance
Engagements
Other
than
Audits
or
Reviews
of
Historical Financial Information” (hereafter “ISAE 3000”).
ISAE 3000 requires
that we plan
and perform our work
to obtain reasonable assurance
about
the evaluation of
the Subject Matter in
accordance with the
Applicable Criteria. In
the context of
the
procedures
performed,
we
assess
the
risk
of
material
misstatement
of
the
information
related to the Subject Matter.
We believe
that the
evidence we
have obtained
is sufficient
and appropriate
and support
the
conclusion expressed in this assurance report.
Professional ethics and quality management
We
are
independent of
the
Company and
the
Group, throughout
this
engagement and
have
complied with
the requirements
of the
International Code
of Ethics
for Professional
Accountants
issued
by
the
International
Ethics
Standards
Board
for
Accountants,
the
ethics
and
independence requirements of Law 4449/2017 and Regulation
(EU) 537/2014.
Our
firm
applies
International
Standard
on
Quality
Management
(ISQM)
1,
“Quality
Management
for
Firms
that
Perform
Audits
or
Reviews
of
Financial
Statements,
or
Other
Assurance or
Related Services
Engagements” and
consequently maintains
a comprehensive
quality
management
system
that
includes
documented
policies
and
procedures
regarding
compliance
with
ethical
requirements,
professional
standards
and
applicable
legal
and
regulatory requirements.
Scope of work performed
The
assurance
work
we
performed
covers
only
the
items
included
in
the
214/4/11-02-2022
Decision of
the Hellenic
Accounting and
Auditing Standards
Oversight Board
and the
Guidelines
for
the
assurance
engagement
and
report
of
Certified
Auditors
on
the
European
Single
Electronic
Reporting
Format
(ESEF)
of
issuers
with
shares
listed
in
a
regulated
market
in
Greece”,
as these
were issued
by the
Institute of
Certified Public
Accountants of
Greece on
14/02/2022,
in
order
to
obtain
reasonable
assurance
that
the
financial
statements
of
the
Company that
are prepared
by the
Board of
Directors of
the Company
comply in
all material
respects with the Applicable Criteria.
Conclusion
Based
on
the
procedures performed
and the
evidence obtained,
we
express the
conclusion
that the
Separate and Consolidated
Financial Statements of
the Company and
the Group
for
the
year
ended
as
of
31 December
2024
in
XHTML
format
(JEUVK5RWVJEN8W0C9M24-
2024-12-31-en.xhtml),
and
the
XBRL
file
(JEUVK5RWVJEN8W0C9M24-2024-12-31-en.zip)
marked
up
with
respects
to
the
Consolidated
Financial
Statements,
including
the
other
explanatory
information
(Notes
to
financial
statements),
have
been
prepared,
in
all
material
respects, in accordance with the requirements as defined in the Applicable
Criteria.
Athens, 7 March 2025
KPMG Certified Auditors S.A.
AM SOEL 186
Nikolaos Vouniseas, Certified Auditor Accountant
Α.Μ. SOEL 18701
KPMG Certified Auditors S.A.
44 Syngrou Avenue
117 42 Athens, Greece
Telephone:
+30 210 60 62 100
Fax:
+30 210 60 62 111
Email:
info@kpmg.gr
KPMG Certified Auditors S.A., a Greek Societe Anonyme and a member
firm of the KPMG global organization of independent member firms affiliated
with KPMG International Limited, a private English company limited by
guarantee.All rights reserved.
Certified Auditors
GCR 001352601000
Independent Auditor’s Limited Assurance Report
To
the Shareholders of
Eurobank Ergasias Services and Holdings S.A.
Independent Auditor’s Limited
Assurance Report on the
Sustainability Report of Eurobank
Ergasias Services and Holdings S.A.
We have performed a limited assurance engagement in relation to the consolidated Sustainability
Report of
Eurobank Ergasias
Services and
Holdings S.A.
(hereafter the
“Company” or
the “Group”),
which
is
included
in
the
section
BII
of
the
Report
of
the
Directors
(hereafter
the
“Sustainability
Report”), for the period from 1 January 2024 to 31 December 2024.
Limited assurance conclusion
Based on the
procedures performed, as
this is described
in the “Scope
of work performed”,
as well
as the evidence obtained, nothing has come to our attention to
cause us to believe that:
●
The Sustainability Report
has not
been prepared, in
all material
respect, in accordance
with
the article 154 of L.4548/2018
as this was amended and
in force with the Law 5164/2024
with
which the
article 29(a)
of EU
Directive 2013/34/EU
has been
transposed into
Greek legislation,
●
the
Sustainability
Report
does
not
comply
with
the
European
Sustainability
Reporting
Standards (hereafter “ESRS”),
in accordance with
Commission Regulation (EU)
2023/2772 of
31 July 2023 and EU Directive 2022/2464/EU of the European Parliament and of the Council
of 14 December 2022,
●
the process followed by
the Company for the
identification and the assessment of
significant
risks and
opportunities (hereafter “the
Process”), as
set out
in Note
1.5 of
the Sustainability
Report,
does
not
comply
with
the
“Disclosure
Requirement
IRO-1
-
Description
of
the
processes
to
identify
and
assess
material
impacts,
risks
and
opportunities”
of
ESRS
2
“General Disclosures”,
●
the
disclosures
of
section
2.1
of
the
Sustainability
Report
do
not
comply
with
Article
8
of
Regulation (EU) 2020/852.
●
this assurance report does not extend to information for prior
periods.
Basis for conclusion
We conducted
our limited
assurance engagement in
accordance with
the International
Standard
on Assurance Engagements
(ISAE) 3000 (Revised),
“Assurance Engagements
Other Than Audits
or Reviews of Historical Financial Information” (hereafter “ISAE
3000”).
The procedures performed
in a limited assurance
engagement vary in
nature and timing
from, and
are
less
in
extent
than
for,
a
reasonable
assurance
engagement.
Consequently,
the
level
of
assurance obtained in a limited assurance engagement is
substantially lower than the assurance
that would have been obtained had a reasonable assurance
engagement been performed.
Our responsibilities are further described in the “Auditor’s
responsibilities” section of our report.
Professional Ethics and Quality Management
We
are
independent
of
the
Company
throughout
this
engagement
and
have
complied
with
the
requirements
of
the
International
Code
of
Ethics
for
Professional
Accountants
issued
by
the
International Ethics Standards
Board for Accountants
(IESBA Code),
the ethics and
independence
requirements of Law 4449/2017 and Regulation (EU) 537/2014.
Our firm applies
International Standard on
Quality Management (ISQM)
1, “Quality Management
for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related
Services
Engagements”
and
consequently
maintains
a
comprehensive
quality
management
system
that
includes
documented
policies
and
procedures
regarding
compliance
with
ethical
requirements, professional standards and applicable legal and regulatory
requirements.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis
for
our conclusion.
Responsibilities of management for the Sustainability Report
Management of the Company is responsible for designing and implementing a process to identify
the required information
reported in
the Sustainability
Report in accordance
with the ESRS,
as well
as for disclosing this process in Note 1.5 of the Sustainability Report.
More specifically, this responsibility includes:
●
Understanding the
context in
which the
Company’s
and
the
Group’s
activities and
business
relationships take place and developing an understanding of its affected stakeholders.
●
Identifying the
actual and
potential impacts
(both negative
and positive)
related to
sustainability
matters, as
well as
risks and
opportunities that
affect, or
could reasonably
be expected
to affect,
the financial position, financial performance, cash flows, access to finance or cost of capital of
the Company and the Group over the short-, medium-, or long-term;
●
Assessing
the
materiality
of
the
identified
impacts,
risks
and
opportunities
related
to
sustainability matters by selecting and applying appropriate thresholds;
and
●
Developing assumptions that are reasonable in the circumstances.
Management of
the Company
and the
Group is
responsible for
the preparation
of the
Sustainability
Report,
in
accordance
with
article
154
of
Law
4548/2018,
as
amended
and
in
force
by
Law
5164/2024, which incorporated article 29(a)
of EU Directive 2013/34/EU into Greek legislation.
In this context, the Management of the Company and the Group is
responsible for:
●
Compliance of the Sustainability Report with the ESRS;
●
Preparing the disclosures in section 2.1 of
the Sustainability Report, in compliance with
Article
8 of Regulation (EU) 2020/852.
●
Designing
and
implementing
appropriate
internal
controls
that
management
determines
are
necessary to
enable the
preparation of
the Sustainability
Report such
that it
is free
from material
misstatement, whether due to fraud or error; and
●
Selecting
and
applying
appropriate
sustainability
reporting
methods,
including
assumptions
and estimates about
individual sustainability disclosures in
the Sustainability Report,
that are
reasonable in the circumstances.
The
Audit
Committee
is
responsible
for
overseeing
the
process
for
the
preparation
of
the
Company's Sustainability Report.
Inherent limitations in preparing the Sustainability Report
In reporting forward-looking information in
accordance with ESRS, Management of the
Company
is required to
prepare the forward-looking
information on the
basis of disclosed
assumptions about
events that
may occur
in the
future and
possible future
actions by
the Company
and the
Group.
The actual outcome of these actions is likely to be different since anticipated events frequently do
not occur as expected.
As stated
in Note
2.2.2 to
the Sustainability
Report, the
information incorporated
in the
relevant
disclosures
is
based,
among
other
things,
on
climate-related
scenarios,
which
are
subject
to
inherent
uncertainty
regarding
the
likelihood,
timing
or
impact
of
potential
future
natural
and
transitional climate-related impacts.
Our work covered
the matters set
out in the
“Scope of Work
Performed” section to
obtain limited
assurance based
on the
procedures included
in the
program of
limited assurance
which was
issued
with
the
Decision
of
the
Hellenic
Accounting
and
Auditing
Standards
Oversight
Board
on
22 January 2025
(hereafter
“Program”). Our
work does
not constitute
an audit
or review
of historical
financial
information
in
accordance
with
applicable
International
Standards
on
Auditing
or
International Standards on
Review Engagements,
and for this
reason we do
not express any
other
assurance beyond that set out in the “Scope of Work Performed” section.
Auditors’ Responsibilities
This
limited
assurance
report
has
been
prepared
based
on
the
provisions
of
article
154C
of
Law 4548/2018 and article 32A of Law 4449/2017.
Our responsibility
is to
plan and
perform the
assurance engagement to
obtain limited
assurance
about whether the
Sustainability Report is free
from material misstatement, whether
due to fraud
or error, and issue a limited
assurance report that
includes our conclusion.
Misstatement can arise
from fraud
or error
and is
considered material
if, individually
or in
the aggregate,
it could
reasonably
be expected
to influence
decisions of
users taken
on the
basis of
the Sustainability
Report as
a
whole.
In
the
context
of
a
limited
assurance
engagement
in
accordance
with
ISA
3000
(Revised),
we
exercise professional judgment
and maintain professional
skepticism throughout the
engagement.
Our responsibilities regarding the Sustainability Report, in relation
to the Process, include:
●
Conducting
risk
assessment
procedures,
including
understanding
the
relevant
internal
controls,
to
identify risks
related to
whether the
Process
followed
by the
Company
and the
Group to
determine the
information reported
in the
Sustainability Report
does not
meet the
applicable requirements of the
ESRS, but not for
the purpose of providing
a conclusion on the
effectiveness of internal controls over the Process; and
●
Designing
and
performing
procedures
to
evaluate
whether
the
Process
for
identifying
the
information
reported
in
the
Sustainability
Report
is
consistent
with
the
description
of
the
Process as disclosed in Note 1.5 of the Sustainability Report.
We are further responsible for:
●
Performing risk assessment procedures, including
understanding relevant internal control, to
identify those
disclosures that
are likely
to
be materially
misstated, whether
due to
fraud
or
error,
but
not
for
the
purpose
of
providing
a
conclusion
about
the
effectiveness
of
the
Company's and the Group's internal control.
●
Designing
and
performing
procedures
relevant
to
those
disclosures
in
the
consolidated
Sustainability Report
where material
misstatements are
likely to
arise. The
risk of
not detecting
a
material
misstatement
resulting
from
fraud
is
higher
than
for
one
resulting
from
error,
as
fraud may
involve collusion,
forgery, intentional omissions,
misrepresentations, or
the override
of internal control.
Scope of work performed
Our engagement includes
performing procedures
and obtaining audit
evidence in order
to express
a limited assurance conclusion and covers exclusively the limited assurance
procedures provided
for in
the Program,
as it
was formulated for
the purpose
of issuing a
limited assurance report
on
the Sustainability Report of the Company and the Group.
Our
procedures
were
designed
to
obtain
a
limited
level
of
assurance
on
which
to
base
our
conclusion and
do not
provide all
the evidence
that would
be required
to provide
a reasonable
level
of assurance.
Athens, 7 March 2025
KPMG Certified Auditors S.A.
AM SOEL 186
Anastasios Kyriacoulis, Certified Auditor Accountant
AM SOEL 39291