WHO WE ARE
Piraeus Financial Holdings S.A. is a financial holdings company, listed on the Athens Stock Exchange, and the parent company of the banking institution “Piraeus Bank S.A.”.
Subsequent to the corporate transformation that took place on 30 December 2020, the banking operations were hived-down to a new wholly owned banking subsidiary (Piraeus Bank S.A.). Certain non-banking sector activities remain with the parent entity of the Group, which evolved into a financial holding company listed on the Athens Stock Exchange (Piraeus Financial Holdings S.A.).
The key subsidiary of Piraeus Financial Holdings S.A. is Piraeus BanK S.A., it is headquartered in Athens, generates 95% of the Group’s revenues, and has approximately 10.0 thousand employees. Piraeus Bank offers a full range of financial products and services to 5.5mn customers in Greece. The Piraeus Bank Group's total assets stood at €71.6bn on 31.12.2020.
Piraeus Bank Group in Greece/ December 2020
Piraeus Bank was founded in 1916. Today it represents the leading Bank in Greece with 30% market share in terms of customer loans and 29% in terms of customer deposits.
The Bank is committed to play a leading role in the Greek economy, actively supporting economic activity and extroversion through specialized solutions and high-level services to its customers.
Piraeus Bank’s main targets are: (a) enhancement of revenue sources and operational efficiency to generate sustainable profitability, (b) improvement of asset quality, through the consistent delivery of the 2021 non-performing exposures (NPE) reduction plan, (c) further strengthening of capital buffers, and (d) expanding lending to support the country’s economic recovery.
In 2020 we managed to navigate a number of headwinds, achieving significant milestones that set the foundations of the next day for Piraeus Bank.
Our solid operational progress of 2020 is reflected in the €6.3bn new loans, €5.1bn new private sector deposits and the defence of our core organic income lines. At the same time, we attained further cost efficiencies thanks to our well rolled-out transformation plan. This progress signifies the potential that Piraeus can realize once the macroeconomic environment recovers.
Today we are taking another major step forward in the de-risking agenda we have been rigorously pursuing over the past years, allowing us to focus on our core strengths and fund the Greek economy.
The Sunrise Plan consists of a series of landmark transactions that will definitively normalize the balance sheet of Piraeus and support an attractive financial outlook, built on sustainable profitable growth.
The €7bn Phoenix-Vega transactions, which are expected to culminate in mid-2021 facilitated by HAPS, provide us with the execution capacity to proceed at a higher pace with our NPE clean-up. An incremental €12bn NPE reduction is scheduled for the next 12 months that will bring us faster to a single-digit NPE ratio, enabling us to attain a return on tangible equity above 10% in the medium term.
To facilitate this plan, a series of concerted and comprehensive capital enhancing actions with cumulative benefit of approximately €2.6bn are sequenced in the following period, of which c.€1bn via a share capital increase through a non-pre-emptive fully marketed offering. Actions on top of the share capital increase are either completed or well under way, generating approximately €1bn of capital: (a) €0.4bn gains from our sovereign bond portfolio already booked in Q1.2021, (b) €0.3bn from the sale of our cards merchant acquiring platform and (c) €0.3bn capital benefit from synthetic securitizations of select performing loans. For the cards acquiring sale, as well as the first synthetic securitization, both of which comprise inaugural transactions for the Greek market, we are happy to announce today the signing of binding agreements with prominent strategic international players. In addition, we submitted today an application for the inclusion of our new €7bn Sunrise 1 NPE securitization in the “Hercules” Scheme.
From a position of strength and with a legacy-free balance sheet, we are opening the door to a new chapter in the Bank’s history. The anticipated support of our shareholders on the planned share capital increase will be a testimony to the prosperous future that lies ahead for Piraeus, and the attractive returns that our Bank will be able to deliver in the coming years.