Update your financial goals Piraeus Bank.
The bank raises its profitability forecast to one billion and financial margin to 2 billion euros. He doesn’t foresee it distribution of 25%-30% on this year’s profits.
More specifically, following the publication of financial results for the 1st quarter of 2024 after an assessment of trends and estimates for the year, Piraeus Financial Holdings SA updates your financial goals for 2024compared to those published on February 14, 2024, as follows:
Predict increasing profitabilitywith a smoothed return on tangible capital (RoaTBV) of approximately 15% vs. 14% previously (adjusted earnings per share of approximately 0.85 euros vs. 0.80 previously), with net earnings of approximately 1.0 billion vs. 0.9 billion previously, greater financial margin in 2024; around 2.0 billion, compared to 1.9 billion previously, due to the lower cost of deposits against the budget, limited transfer of balances to term deposits.
Also provides net interest margin of approximately 2.7% against 2.6% previously and confirmation of stable growth trajectorywith the non-performing loan portfolio at the end of 2024 increasing to around 31.7 billion, compared to a previous estimate of 31.5 billion.
Furthermore, the bank estimates improving revenue generation of rates at 1Q2024 levels, representing approximately 0.8% as a percentage of assets for 2024 compared to a previous estimate of 0.7%, respectively, keeping operating expenses low, with the cost-to-core ratio remaining below 33% for 2024, versus an estimate of a lower level of 35% previously, lower cost of risk for 2024 to around 0.7% on loans after provisions of 0.8% previously.
The bank’s business plan is now based on an estimate of the 3-month average Euribor at 3.6% for 2024, up from 3.8% previously, with the ECB’s deposit facility rate estimated at 3.25% at the end of 2024, up from the previous 3.75%.
The updated financial targets for 2024 are accompanied by a provision for distribution to shareholders of 25%-30% of profits, a percentage that is expected to be finalized and paid next year, subject to obtaining the necessary supervisory approval.