Corporate profile

Piraeus Bank’s main targets are:

a) enhancement and diversification of revenue sources and operational efficiency to generate sustainable profitability,

b) expansion of lending to support the country’s economic recovery,

c) optimization of return on capital and reward to shareholders, with a growing distribution pay-out ratio in line with European banks’ average levels.

Piraeus nine-month 2024 performance is a clear statement that it continues to exceed its targets across the board. In the nine-month 2024 period, Piraeus delivered its best results to date, generating €0.72 earnings per share, up 31% yoy, and 18% RoaTBV, from 15% in the nine-month 2023. Piraeus has achieved sustainable profitability and capital accumulation, through diversified revenue sources and cost discipline, while maintaining prudent credit risk management.


Revenue enhancement

Piraeus’s top line increased considerably on the back of growing business. Net interest margin stood at 2.7% for the nine-month period, while net fee margin reached 0.8%, best-in-class in Greece. Net interest income was higher in Q3, as strong loan growth offset the Jun.24 rate cut, while net fee income grew by 3x the rate of net interest income in the nine-month period, reflecting the revenue diversifying efforts. 


Strong portfolio

Piraeus’s performing loan portfolio increased 9% yoy and by €2bn in the nine-month period, to €32bn, already exceeding the full year target of €31.5bn. Out of the €2.8bn loan disbursements in Q3, €1.3bn were to SME/SB and individuals. Client assets under management increased to €11bn as of Sep.24, driven by strong net mutual fund sales, where Piraeus holds the leading position in Greece for the nine-month period.


Improved efficiency

Piraeus’s focus on operating efficiency kept its cost-to-core income ratio at 29% in the nine-month period. This remains among the best in the European banking market. Cost of risk has stabilized at low levels, 23bps, or 49bps including NPE servicer fees and synthetic securitization costs, an outcome of the successful management of NPE inflows. NPE ratio improved further to 3.2% and NPE coverage exceeded 60%.


Important indicators

CET1 ratio has increased to 14.7%, up by 1.5 percentage points year-to-date, surpassing the end-2024 target. Following the successful pricing of a new Subordinated Tier 2 Bond in September 2024, the MREL ratio reached 29.1%, with Piraeus meeting the terminal binding MREL requirement, more than a year ahead of target.

 

High goals

Based on its 2024 performance and trends so far, Piraeus is upgrading its 2024 guidance today. The key elements comprise enhanced profitability with normalized RoaTBV expected at more than 17%, normalized EPS of more than €0.90, further growth of CET1 ratio to approximately 15%, expansion of performing loans to €33bn, and non performing exposures ratio of less than 3%. Also, Piraeus is now aiming for a payout ratio of 35% out of 2024 profits, subject to the necessary conditions being met, while it has updated its distribution policy to provide for a 50% payout ratio for next year.

Piraeus continues to raise its aspirations and focus on creating value for its shareholders, ensuring ongoing support to its customers and the broader Greek economy.