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 9.4 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 €75.4bn on 30.09.2021.
Piraeus Bank Group in Greece/ September 2021
Piraeus Bank was founded in 1916. Today it represents the leading Bank in Greece with 28% 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.
The Sunrise Plan, announced in March 2021, 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. During 9M.2021 we have completed more than 90% of clean-up and capital enhancement actions of the Sunrise plan, with ending capital position as planned.
The €1.4bn share capital increase, which was completed in late-April 2021, was a great success, with investors’ oversubscribing by more than three times. Additionally, in June 2021, Piraeus Financial Holdings successfully completed the issuance of its inaugural Additional Tier 1 instrument amounting to €600mn and in November 2021 successfully issued its inaugural green senior preferred bond amounting to €500mn. These achievements demonstrate that investors believe in our plan, but also in the prospects of the Greek economy. Furthermore, of the additional €1.2bn non-dilutive capital actions in our plan, €0.8bn are secured and the remaining €0.4bn are expected by early 2022.
Within the context of the NPE clean-up plan, in July 2021, the €6.7bn Phoenix-Vega NPE securitizations transactions were completed, in September 2021 the Sunrise I NPE securitization transaction amounting to €7.2bn gross book value was completed, whereas in November 2021 Piraeus Financial Holdings announced that it had reached definitive agreements for the sale of Sunrise II portfolio of non-performing exposures amounting to €2.7bn gross book value.
NPE reduction in the nine months of the year reached €16.4bn, from Phoenix, Vega, Sunrise 1 & Sunrise 2 HAPS transactions, as well as organic flow, with the Piraeus NPE ratio radically dropping to 16% in September 2021 from 23% in June 2021, mainly due to the classification as held for sale of the Sunrise 2 and Leasing NPE perimeters, both in the Q3.21, amounting to c.€3bn.
The 2021 total €19bn HAPS and NPE sales derisking effort is well on track and the remaining projects are expected to be completed by early 2022, targeting to a single-digit NPE ratio by early 2022, enabling us to attain a return on tangible equity of more than 5% in 2022 and above 10% in the medium term.