Morningstar DBRS Cites Cyprus and Bulgaria as Key Drivers of Eurobank Profits

Athens, Greece. Credit rating agency Morningstar DBRS has pointed to the strong performance of Cyprus and Bulgaria as a major support for Eurobank’s earnings, while cautioning that non-performing loans may increase in the final quarter of 2026. The remarks were part of its review of the Greek lender’s third-quarter results.

Contribution from foreign operations

According to the agency, business conducted outside Greece generated 46 per cent of Eurobank’s adjusted net profits. Cyprus and Bulgaria were named as the principal sources of that contribution.

Risk of higher non-performing loans

Morningstar DBRS warned that non-performing loans (NPLs) could rise in the fourth quarter of 2026. Loans affected by legislation on the conversion of Swiss franc-denominated loans might be reclassified as unlikely to pay.

The agency said such a reclassification could add about 40 basis points to the NPL ratio and lower the bank’s NPL coverage ratio by 10 percentage points.

Earnings for the first nine months of 2026

The assessment follows Eurobank’s report of higher earnings and better results on several key indicators for the first nine months of 2026. Net profits grew by 12 per cent year-on-year, and adjusted net profits climbed by 14 per cent over the same period. Return on tangible equity stood at 16.9 per cent.

Net interest income was up 8.7 per cent year-on-year, helped by a larger loan portfolio and the continued benefit of interest rates. Net fee and commission income increased by 13 per cent.

The cost-to-income ratio improved to roughly 36 per cent, against about 37 per cent in the same period of 2025.

Deposits

Customer deposits rose by nearly 11 per cent year-on-year to more than €87 billion, in step with developments in the bank’s lending activity.