Optima Bank expects a profitable first quarter of the year from Eurobank, boosted by increased operating income and transaction profits, cost control and lower loan loss provisions.
In particular, Optima Bank estimates that on Wednesday, May 25, Eurobank will announce in its first quarter results the net profit of 236.3 million euros, increased by 110% on an annual basis from 70 million in the first quarter of 2021.
According to Optima, the bank will show an increase in operating income of 18% on an annual basis and profits of 170 million euros from hedging transactions.
Eurobank net interest income is expected at 325.6 million euros, while commission and fee income is estimated at 112 million euros.
In this context, the core income of the bank will amount to 437.6 million euros and the operating to 607.6 million.
In any case, Optima Bank points out that the focus will be on the outlook that will be presented by the management of Eurobank for the rest of the year and especially in terms of the evolution of basic income, asset quality and balance sheet dynamics in the coming quarters.
Regarding the Eurobank title, Optima points out that it trades at 0.61 of the value to Tangible Book Value (P / TBV), ie with a 9% discount compared to the banks of the European south and by 25% compared to other Greek.
Finally, Optima Bank points out that after the announcement of the results, it will update its estimates for the target price and its recommendations regarding the bank’s share.
Source: Capital
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