Eurobank finalizes sale of Serbian subsidiary to AIK Banka, boosts CET1 ratio

Eurobank S.A., under its parent company Eurobank Ergasias Services and Holdings S.A., has officially concluded the sale of Eurobank Direktna, its Serbian subsidiary, to AIK Banka a.d. Beograd. This significant transaction, finalized on November 2, 2023, followed the acquisition of all necessary regulatory approvals.

The financial contours of the deal place the cash consideration for the 70% Eurobank stake at approximately €198 million. This capital inflow is poised to bolster Eurobank’s CET1 ratio by an estimated 45 basis points, a calculation based on the Q2 2023 ratios and coinciding with a release of associated risk-weighted assets (RWAs).

This divestiture aligns with Eurobank’s broader strategy, pivoting towards optimizing capital allocation and accentuating its footprint in its primary markets, which include Greece, Bulgaria, and Cyprus. The redirection underscores Eurobank’s commitment to investing in markets where it sees a higher return on tangible equity (RoTBV) and more compelling return opportunities.

The completion of this transaction cements Eurobank’s strategic reorientation efforts, as the bank divests from its Serbian operations and shores up its capital adequacy. This move represents not only a significant recalibration of Eurobank’s asset portfolio but also a substantial shift towards reinforcing its presence in key markets.

The transaction was completed smoothly thanks to the cooperation of all involved parties and regulatory bodies, setting a precedent for Eurobank’s future strategic endeavors.