Christos Megalou, CEO Piraeus Financial Holdings, states for first half 2024 financial results
“2024 started strongly for Piraeus, with the first half confirming progress towards achieving or exceeding full year targets. In the first half of the year, we delivered the best ever first half results, generating €0.47 normalized earnings per share, up 41% yoy, and 18% RoaTBV from 14% in the first half 2023. Piraeus has achieved sustainable profitability and capital accumulation, through diversified revenue sources and cost discipline, while maintaining prudent credit risk management.
Our top line grew substantially, with net interest margin at 2.75% for the first half of the year, while net fee margin stood at 0.85% respectively, both benefitting by strong client asset expansion. Our Group’s performing loan portfolio increased by €1.3bn in Q2 to €31.3bn, and we are on track to exceed the full year target of €31.7bn performing loans. Out of the €3.2bn loan disbursements in Q2, €1.3bn were to SME/SB and €0.2bn to Retail. Client assets under management increased to €10.4bn in June, surpassing the 2024 target of €10.2bn.
Our focus on operating efficiency kept our cost-to-core income ratio at 29% in the first half of the year, which is among the best in the European banking market, while cost of risk remains at the low level of 19bps, or 48bps including NPE servicer fees and synthetic securitization costs, an outcome of the successful management of NPE inflows. Our NPE ratio improved further to 3.3% and NPE coverage remains near the area of 60%.
Our CET1 ratio has increased to 14.2%, up by 0.9 percentage points year-to-date, already meeting the end-2024 target. Following the successful issuance of a new Green Senior Preferred Bond in July 2024, the pro forma MREL ratio reached 28.3%, and -as a result- Piraeus is the first Greek bank that has met the final binding MREL requirement of 27.9%, a year and a half ahead of target.
So far, 2024 is turning into a milestone year for Piraeus. Following the return to full privatization status, the Group paid a cash dividend to its shareholders in July, amounting to €79mn, for the first time after 16 years, while recently the Bank has regained its investment grade rating after 14 years.
The successful acquisition of the license for the neobank snappi marks a significant step in our development and a new era in our journey to become part of the new banking landscape in Europe. This milestone reflects our unwavering dedication to pioneering new innovative paths and our ability in meeting the evolving needs of our customers.
Our rebranding efforts have been met with enthusiasm, as we continue to build a brand that resonates with our customers and stakeholders. Our new corporate identity reflects the dynamism and mobility that represent the new era of Piraeus, and it is a symbol of our resilience and ability to evolve in an ever-changing industry.
We continue to raise our aspirations and focus on creating value for our shareholders, ensuring Piraeus’ ongoing support to its customers and the broader Greek economy. We are proud to have recently received three awards at the international Euromoney Awards for Excellence 2024, including the "World's Best Bank Transformation" award, which highlights Piraeus’ successful journey, marked by a strategic overhaul and a return to profitability.”
Christos Megalou
Chief Executive Officer
“2024 started strongly for Piraeus, with the first half confirming progress towards achieving or exceeding full year targets. In the first half of the year, we delivered the best ever first half results, generating €0.47 normalized earnings per share, up 41% yoy, and 18% RoaTBV from 14% in the first half 2023. Piraeus has achieved sustainable profitability and capital accumulation, through diversified revenue sources and cost discipline, while maintaining prudent credit risk management.
Our top line grew substantially, with net interest margin at 2.75% for the first half of the year, while net fee margin stood at 0.85% respectively, both benefitting by strong client asset expansion. Our Group’s performing loan portfolio increased by €1.3bn in Q2 to €31.3bn, and we are on track to exceed the full year target of €31.7bn performing loans. Out of the €3.2bn loan disbursements in Q2, €1.3bn were to SME/SB and €0.2bn to Retail. Client assets under management increased to €10.4bn in June, surpassing the 2024 target of €10.2bn.
Our focus on operating efficiency kept our cost-to-core income ratio at 29% in the first half of the year, which is among the best in the European banking market, while cost of risk remains at the low level of 19bps, or 48bps including NPE servicer fees and synthetic securitization costs, an outcome of the successful management of NPE inflows. Our NPE ratio improved further to 3.3% and NPE coverage remains near the area of 60%.
Our CET1 ratio has increased to 14.2%, up by 0.9 percentage points year-to-date, already meeting the end-2024 target. Following the successful issuance of a new Green Senior Preferred Bond in July 2024, the pro forma MREL ratio reached 28.3%, and -as a result- Piraeus is the first Greek bank that has met the final binding MREL requirement of 27.9%, a year and a half ahead of target.
So far, 2024 is turning into a milestone year for Piraeus. Following the return to full privatization status, the Group paid a cash dividend to its shareholders in July, amounting to €79mn, for the first time after 16 years, while recently the Bank has regained its investment grade rating after 14 years.
The successful acquisition of the license for the neobank snappi marks a significant step in our development and a new era in our journey to become part of the new banking landscape in Europe. This milestone reflects our unwavering dedication to pioneering new innovative paths and our ability in meeting the evolving needs of our customers.
Our rebranding efforts have been met with enthusiasm, as we continue to build a brand that resonates with our customers and stakeholders. Our new corporate identity reflects the dynamism and mobility that represent the new era of Piraeus, and it is a symbol of our resilience and ability to evolve in an ever-changing industry.
We continue to raise our aspirations and focus on creating value for our shareholders, ensuring Piraeus’ ongoing support to its customers and the broader Greek economy. We are proud to have recently received three awards at the international Euromoney Awards for Excellence 2024, including the "World's Best Bank Transformation" award, which highlights Piraeus’ successful journey, marked by a strategic overhaul and a return to profitability.”
Christos Megalou
Chief Executive Officer