WOOD Flash – Eurobank: 1Q18 – good quality beat
Eurobank has reported 1Q18 recurring net profit of EUR 56m vs. our estimate of EUR 24m and the consensus of EUR 31m. The beat is due to better NII, and lower costs and provisions. Asset quality trends remain reassuring, with negative NPE formation, higher coverage and a lower NPE ratio. On the negative side, we highlight the positive NPL flow (due to a single corporate exposure) and the softer capital ratios. Overall, we believe the results should please investors in view of the decent P&L trends (more resilient NII vs. its peers, good cost control) and the gradual improvement in asset quality. We keep our BUY rating on the stock.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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