Eurobank Ergasias Svcs

Ladies and gentlemen, thank you for standing by. I'm Konstantinos, your course call operator. Welcome and thank you for joining the Eurobank conference call to present and discuss the second quarter 2026 financial results. At this time, I would like to turn the conference over to Mr. Fokion Karavias, CEO. Mr. Karavias, you may now proceed.

Ladies and gentlemen, good afternoon and welcome to the Eurobank First Half 2026 results presentation. Together with me is our CFO, Charles Kokologiannis, and the investor relations team. We will start with some key recent developments, then present our results and answer your questions. The global environment remains fragile and challenging, with geopolitical developments weighing on market sentiment and adding to inflation. Inflationary pressures, will push euro rates higher, even as the European economy remains subdued, despite a better-than-expected second-quarter performance. Nevertheless, the economies in the regions where we operate have so far demonstrated remarkable resilience, supported by a number of factors. First, investment activity remains robust. In Greece in particular, the government recently unveiled a 23 billion national development program for the period 2026 to 2030, focused on infrastructure, climate resilience and regional economic convergence. Second, the tourism sector continues to demonstrate resilience. In both Greece and Cyprus, tourist arrivals rebounded swiftly and current trends point to a season broadly in line with last year's strong performance. In Bulgaria, political stability has returned, providing support for economic growth. Nevertheless, the country still needs to address its budget deficit and persistent inflation. Prudent fiscal management in both Greece and Cyprus has translated into strong primary services. This creates the fiscal space needed to implement targeted measures that help mitigate the impact of higher energy prices and inflation on households and businesses. In this context, trade expansion has remained strong across our region. Eurobank has successfully capitalized on this favorable environment delivering double business annual loan growth driven by business lending in Greece and showing momentum in both Bulgaria and Cyprus. Now, let's move on to our financial results as highlighted on slides 5 to 11. Eurobank reported strong financial performance in the first half of 2026. With volumes, NII and fee growth trends accelerated on a quarterly basis. As a result, adjusted net profit reached €776 million and return on tangible book value at 16.6%. In more detail, loan growth continued unabated with a quarterly organic growth of €1.6 billion, This is 10% up year on year. Managed funds, another key pillar of our strategy, increased by 1.2 billion euros year to date, or 30% on an annual basis, while deposits also increased by circa 3 billion euros over the same period.

Net interest income rose 6.1% year on year,