WOOD Flash – Eurobank: pullback creates attractive entry point
Eurobank has posted solid 4Q21 numbers and provided a reassuring outlook for 2022-24E. The bank expects a ROTE of 10% in 2022E and growth of 13% p.a. in EPS up to 2024E. There is downside risk for the targets from the recent geopolitical risks (indirect via higher inflation and lower GDP), mitigated partly by the assumption of no rate hikes (substantially positive on the bottom line) and the good start to 2022E (zero net NPE inflows in 1Q22E, with the assumption of EUR 0.4bn for the full year). We believe that the recent pullback in the share price (-27% since 23 February vs. -20% for the SX7E Euro banks index) could provide an attractive entry point for long-term investors, with the stock now trading at a P/TBV of 0.52x and a P/E of 5.9x, on the 2022E guidance.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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