WOOD Flash – Eurobank: 4Q22 results, and heading for 13% ROTE in 2023E
Eurobank has posted a solid quarter, with even stronger guidance for 2023E and targets for 2025E. Management is targeting a ROTE of 12-13%, payout ratios of >25%, substantial capital generation (>200bps by 2025E) and healthy EPS growth (12% per annum). We remain BUYers of Eurobank. The stock trades at a reasonable P/E of 6.5x and a P/TBV of 0.8x on 2023E, with upside risk on the 13% ROTE forecast. The P/E and P/TBV on the 2025E (conservative) guidance stand at 5.5x and 0.6x, respectively.Eurobank Ergasias and its subsidiaries are organized in the following reportable segments: Retail. which incorporates customer current accounts, savings, deposits and investment savings products, credit and debit cards, consumer loans, small business banking and mortgages; Corporate, which incorporates direct debit facilities, current accounts, deposits, overdrafts, loan and other credit facilities, foreign currency and derivative products; Wealth Management, which incorporates private banking services; Global and Capital Markets, which incorporates investment banking services; and International, which incorporates operations in Romania, Bulgaria, Serbia, Cyprus, Ukraine and Luxembourg.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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