Moody’s improves outlook on Eurobank’s deposit ratings — Cyprus Mail
Moody’s affirmed Eurobank’s long-term deposit and senior unsecured debt ratings at Baa1 and upgraded the outlook on its deposit ratings from “stable” to “positive”. The decision is linked to an improved outlook on Greece’s sovereign rating, Cyprus Mail reports.
At the same time, the outlook on the bank’s senior unsecured debt was changed from “negative” to “stable”. Moody’s also affirmed Eurobank’s baseline credit assessment and adjusted baseline credit assessment at baa3.
Impact of Greece’s rating
The agency explained the Baa1 rating by low expected losses for creditors in the event of problems at the bank, which provides a two-notch uplift. Moody’s continues to assess the likelihood of direct state support for Eurobank as low, so no additional rating uplift was applied for this reason.
Moody’s previously improved the outlook on Greece’s sovereign rating from “stable” to “positive”, while affirming its long-term issuer rating at Baa3. The country’s sovereign rating remains the main constraint on a further upgrade of Eurobank’s standalone credit assessment because of its exposure to Greece’s sovereign risk.
More current news is available on the UA.News Telegram channel Telegram.
According to the agency, the bank’s credit profile is supported by high and geographically diversified profitability, adequate asset quality and sufficient capital. A further upgrade may be possible if Greece’s sovereign rating improves, provided that Eurobank maintains resilient profitability and sound asset quality over the next 12–18 months.
Bank financial indicators
According to Moody’s, Eurobank’s return on tangible equity stood at 16.6% in the first half of 2026. Fee income increased by 13.5%, while the cost-to-income ratio was about 37%.
Eurobank reported that its net profit for the period reached €738 million, while adjusted net profit amounted to €776 million, up 9.2% year on year. The bank’s units outside Greece, mainly in Cyprus and Bulgaria, generated €361 million in adjusted profit, or 46.5% of the group’s figure.
The non-performing loan exposure ratio declined to 2.5% in June 2026 from 2.8% a year earlier. The CET1 ratio stood at 15.4%, exceeding the regulatory requirement of 10.7% and the bank’s target of 13%.
