A quarter of quality earnings, with adjusted earnings per share of €0.21 and a return on tangible equity (RoaTBV) of 16.5%, against targets of around €0.80 and 14% respectively for 2024 complete, it is the first quarter for Piraeus Bank as stated in the bank’s earnings announcement.
Profits amounted to 233 million euros, compared to 211 million in the fourth quarter of 2023 and 180 million in the first quarter of last year.
The financial margin stood at 518 million euros, +16% year-on-year, with resilient customer interest margins. The cost of term deposits stood at 2.1%
• Net commission revenue was 145 million, an increase of 19% year-on-year and 1% quarter-to-quarter, driven mainly by client asset management, bancassurance products and investment banking commissions
• Recurring operating expenses reached a historically low level of 193 million, -5% year-on-year, due to continuous efficiency improvement actions
• Historically low organic cost of risk, 51 basis points. Excluding NPE service fees and synthetic securitization costs, the cost of risk reached an all-time low of 17 basis points.
• Stable asset quality with NPE ratio of 3.5% and NPE coverage of 60%, improved by 5 percentage points per year.
• Good start in loan disbursements, which stood at 2.1 billion or +6% compared to the previous year. The high reimbursements (2.3 billion) had a compensating effect due to the expected seasonality of the 1st quarter. NPLs increased by 1.6 billion year-on-year, to 30.0 billion, with a significant flow of projects to be financed in the coming months.
• Organic capital production was 0.8%, before extraordinary items and provision for dividend distribution. The CET1 ratio stood at 13.6% and the total capital ratio at 18.4% in Mar ’24, including provision for dividend distribution of 25%. At a pro forma level, reducing the risk-weighted assets from NPE sales to be completed in the next period, the CET1 ratio stood at 13.7% and the total capital ratio at 18.5%. The corresponding MREL was set at 26.0% in March 2024, compared to a supervisory requirement of 24.9% in January 2025.
• Client funds under management increased further by 8% quarterly and 33% annually to 10.0 billion, due to inflows into mutual funds and private banking.
• Strong liquidity profile, with a liquidity coverage ratio of 241% and a transformation ratio of 62%.
Christos Megalou: It all started dynamically in 2025
“2024 started strong for Piraeus, confirming progress towards achieving the year’s targets. In the first quarter we delivered another set of strong financial results, generating earnings per share of 0.21 and return on capital of 16.5%”, comments the CEO.
“Piraeus has achieved sustainable profitability taking into account the risks assumed and strengthening its capital, through diversified revenue sources and cost discipline, while maintaining prudent credit risk management.
Our revenues showed resilience, with net interest income remaining at a high level, while we increased net commission income on assets to 76 basis points in the first quarter. Our operational efficiency efforts took our cost-to-core income ratio to 29%, one of the lowest in the European banking market for yet another quarter.
The most important achievement of these results was the cost of risk, which fell to a historically low level of 17 basis points, or 51 basis points, including NPE servicing fees and synthetic securitization costs, as a result of the successful management of new NPE flows. The NPE ratio remained at 3.5% and NPE coverage by provisions remained at 60%.
The reported credit portfolio grew 6% year on year, with a strong flow of projects to finance in the coming months. Our leading position in the market is confirmed by our disbursements through the Recovery Fund and the Minha Casa program, which together amount to around 0.5 billion in Customer assets under management increased to 10.0 billion in the 1st quarter , due to our vast experience in this area. .
The first quarter was a landmark three-month period in the Bank’s history, with Piraeus returning to a state of full privatization with the successful offer of 27% of our share capital, which was held by the FEFG. The total size of the transaction amounted to 1.35 billion euros, being the largest bank privatization transaction in recent years in Greece, with a total demand of 11 billion euros, exceeding all expectations.
Lastly, I would like to express my satisfaction as 2024 is expected to be the first year after 16 years that Piraeus will pay cash dividends to its shareholders amounting to approximately 80 million for the 2023 financial year, a relevant application for. approval was submitted to the ECB in mid-April, ahead of the June General Assembly. At the same time, capital generation in the quarter raised the CET1 ratio to 13.7%, incorporating an increased provision of 25% for distribution of dividends to our shareholders from 2024 profits.
We continue to raise the level of our activities and are committed to creating value for the benefit of our shareholders, while providing ongoing support to our customers and the Greek economy in general.”