Group 1: European Market Liquidity - The largest liquidity pool for equity in Europe has been established, although it remains smaller than that of the US [3] - This liquidity pool trades between 11 and 12 billion euros daily, with an aggregate market capitalization exceeding 6.5 trillion euros, more than twice the size of the London equity market and three times that of the Frankfurt equity market [2] Group 2: Integration and Market Infrastructure - The integration of Greek capital markets within the Euronext family is significant, demonstrating a commitment to real capital market union [4] - The purpose of market infrastructure is emphasized as connecting local economies with global markets to finance the real economy [4] Group 3: Greece's Economic Recovery - Greece has seen a turnaround, borrowing for 10-year bonds at approximately 3.3%, which is cheaper than the UK and France [6][7] - Greece is celebrating its second or third year of budget surplus, indicating a significant improvement in its economic situation [7] - The reforms implemented over the past years and the efforts of Greek society are highlighted as key factors in this recovery, making it an opportune time for investment in Greece [8]

Core Insights - The euro is considered one of the EU's most significant achievements, having survived a sovereign debt crisis and undergoing extensive banking and monetary reforms over three decades [1][4] - There is a prevailing sense of policy inertia within the eurozone, with national divisions and competing priorities hindering progress on reforms [3][4] - European leaders are recognizing the need to bolster the euro's global status to protect their export-driven economies amid rising protectionism [8][9] Group 1: Euro's Global Position - The euro accounts for approximately 20% of global central bank reserves and trade invoicing, making it the second-most favored currency after the dollar [7] - The euro has appreciated around 13% against the dollar this year, reaching a four-year high, with expectations for further gains as the U.S. Federal Reserve cuts its benchmark rate [8] - There is a consensus that increasing the euro's presence in global trade and reserves could insulate the eurozone from exchange rate fluctuations and economic sanctions [9] Group 2: Challenges to Euro Reforms - Proposals for jointly issued euro-denominated debt to fund defense initiatives have faced resistance from major economies like Germany and France [2][16] - The lack of a deep and liquid capital market in the eurozone is a significant barrier, with the outstanding euro area bonds totaling around $13 trillion compared to the $30 trillion U.S. Treasury market [10][11] - Fragmentation of capital and banking markets across member states complicates efforts to create a unified capital markets union, which has been a long-standing goal [20][21] Group 3: Digital Euro and Future Prospects - The proposal for a digital euro has been stalled for over two years, with concerns about its potential impact on bank deposits and unclear objectives [25][26] - The earliest timeline for the digital euro's approval is mid-2026, with additional time required for technology development [27] - Despite resistance to necessary reforms, there is a belief that the euro can strengthen its position as the global number two currency, although it is unlikely to rival the dollar's dominance soon [29][30]

Financial Data and Key Indicator Changes - The company's revenues increased by 3.8% in Q1 2025, with operating divisions up 6.1%, aligning with the trajectory set for 2026 [8][10] - Net profit decreased by 4.9%, attributed to higher exceptional items in the previous year and lower contributions from the Corporate Center this quarter [12] - The cost of risk remained moderate at 33 basis points, slightly up from the previous year but still below the guidance of 40 basis points [11][43] - Common Equity Tier 1 (CET1) ratio decreased by 50 basis points quarter-on-quarter to 12.4%, stable compared to January [13][45] Business Line Data and Key Indicator Changes - Corporate and Institutional Banking (CIB) reported a record revenue growth of 12.5%, driven by a 17.3% increase in Global Markets [9][26] - Commercial Banking and Personal Banking Services (CPBS) grew by 1.2%, with Eurozone commercial banks up 0.6% year-on-year [10][28] - Investment Solutions (IPS) saw a strong growth of 6.6%, particularly in Wealth Management and Insurance [10][37] Market Data and Key Indicator Changes - Eurozone commercial banks are expected to benefit from a normalization of the yield curve, with a projected rebound in net interest income (NII) in the second half of the year [18][30] - The performance in Turkey and Poland contributed to a 19% revenue increase in the Euromed region [10][32] Company Strategy and Development Direction - The company aims for a return on tangible equity of 11.5% in 2025 and 12% in 2026, targeting over 7% group net income growth CAGR [15][16] - A new strategic plan for CPBS aims to lift the return on notional equity to a minimum of 17% by 2028 [17] - The company plans to continue efficiency efforts with an additional €600 million in cost savings for 2025 and 2026 [19][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged elevated uncertainties in the market but emphasized readiness to support clients and monitor risks closely [5][6] - The company remains confident in achieving a CAGR revenue growth of over 5% by 2026, supported by increased investment spending in Europe [20][22] Other Important Information - The company has received approval for a €1 billion share buyback program, set to launch in the second quarter [14] - The acquisition of AXA IM is expected to close in early July, which will significantly enhance the growth potential of the IPS division [38][50] Q&A Session Summary Question: On the Capital Markets Union and its impact on profitability - Management acknowledged the challenges but noted a tangible approach from the EU to facilitate capital flow, expecting progress by 2028 to 2030 [62][63] Question: On the ECB's treatment of the AXA deal - Management clarified that discussions with the ECB are ongoing regarding the classification of the AXA deal as insurance to insurance, which will influence capital treatment [65][66] Question: On Eurozone revenue momentum and NII expectations - Management expects stabilization in deposit mix and a rebound in NII, driven by repricing and redeployment of excess deposits [74][78] Question: On market volatility and its impact on business - Management noted increased trading volumes and volatility in early April, but corporate engagement remained cautious [84][85] Question: On cost expectations related to acquisitions - Management indicated that it is too early to quantify additional costs from acquisitions until the deals are closed [122] Question: On interest rate sensitivity and potential ECB policy changes - Management expressed confidence that a shift to lower interest rates would favor their business model, particularly in personal finance [95][96]