Eurobank will announce Q3:20 results today after market hours – Preview

Eurobank will announce Q3:20 results today after market hours – Preview

Eurobank (Q3:20 preview): Eurobank will announce Q3:20 results today after market hours followed by a conference call. We expect a positive quarter fueled by strong trading gains in the tune of 80m which will counterbalance c€90VES costs (c800 headcount reduction). CoR is expected to remain at the upper range of guidance (i.e 160bps) reflecting Covid-19 impact. However, Eurobank is expected to stay in negative formation in NPLs and NPEs perimeter posting a marginal improvement. 

  • With regards to income from operating activities, NII is seen down by 7% q-o-q as the bank guided for c50m NII erosion from the Cairo transaction assuming also improved cost of funding from fully utilization of TLTROs.
  • On the flip side fees are expected higher at €92m up 4.8% q-o-q. Adding other and trading income Eurobank is expected to post total income of 517m (+3.3%). On the cost side we assume flat expenses bringing PPI at 304m up 5.8% q-o-q. We pencil in 150m of credit costs to reach PBT of 154m. 

On yesterday’s close Eurobank trades 0.33x its T/BV. 

  • The following table summarize our estimates: 

Eurobank

Act.

 

Est.

Overview

(In Million Euro)

3Q19

2Q20

3Q20

QoQ

YoY

NII

345.9

349.4

325.0

-7.0%

-6.0%

Fee income

94.2

87.8

92.0

4.8%

-2.3%

Trading

19

52

80

53.8%

312.4%

Other Income

-6

11

20

 

 

Total income

453.5

500.6

517.0

3.3%

14.0%

Operating costs

-230.3

-213

-213

0.2%

7.5%

Pre-provision-profits

223.2

287.2

304.0

5.8%

36.2%

Provisions

-144.8

-145

-150

-3.4%

-3.6%

Other results

-10

-1,337

0

 

 

PBT

67.9

-1,195.1

154.0

112.9%

126.8%

Corporate taxes

13

28

37

33.4%

193.3%

Net profit

55

-1,222.8

117.0

109.6%

111.6%

Discontinued operations/VES

0

0

-90

 

 

Net profit

55.3

-1,222.8

27.0

102.2%

-51.1%

Minorities

1

0

1

 

 

Attributable net profit

56.3

-1,222.8

26.0

 

 

 

Conference Call details: (18:00 GR time):

§   GR           +30 210 9460 800

§   UK TF      +44 (0) 800 368 1063

§   US            +1 516 447  5632

§   Other       +44 (0) 203 059 5872

MANOS CHATZIDAKIS – BETA SEC