The profits of Piraeus in the first quarter of 2024 amounted to 233 million euros, which after 16 years will pay a cash dividend to its shareholders.

In statements by CEO of Piraeus Bank, Christos Megaloureports that “2024 is off to a strong start for Piraeus, confirming progress towards the year’s targets. In the first quarter we delivered another set of strong financial results, generating €0.21 earnings per share and a 16.5% return on capital ».

“Piraeus has achieved sustainable profitability taking into account the risks taken, and strengthening its capital, through diversified sources of income and cost discipline, while maintaining prudent credit risk management. Our revenues showed resilience, with net interest results remaining at a high level, while we increased net fee income to assets to 76 basis points in Q1. Our operational efficiency efforts have driven our cost-to-core income ratio to 29%, among the lowest in the European banking market for 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 successfully managing new NPE inflows. The NPE ratio was maintained at 3.5% and the coverage of NPEs by provisions at 60%. The informed loan portfolio grew by 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 “My Home” program, which together amount to approximately 0.5 billion euros. Client assets under management increased to €10 billion in the first quarter, due to our extensive expertise in this area,” adds Mr. Megalou.

He also states: “The first quarter was a milestone quarter in the history of the Bank, as Piraeus returned to full privatization status with the successful offer of 27% of our share capital, which was held by the HFSF. The total size of the transaction amounted to 1.35 billion euros, being the largest bank privatization transaction in recent years in Greece, with the total demand amounting to 11 billion euros, beyond all expectations. Finally, I would like to express my satisfaction as 2024 is expected to be the first year, after 16 years, in which Piraeus will pay a cash dividend to its shareholders, amounting to approximately €80 million for the 2023 financial year. The relevant application for approval has been submitted to the ECB in mid-April, ahead of the June General Assembly. At the same time, capital generation in the quarter led the CET1 ratio to 13.7%, incorporating an increased 25% provision for a dividend distribution to our shareholders from 2024 earnings. We continue to raise the bar of our aspirations and remain committed to creating value for benefit of our shareholders, at the same time offering continuous support to our customers and the wider Greek economy”.

According to the announcement, the main developments of the first quarter of 2024 are:

  • Q1 marks a quarter of quality earnings, with adjusted earnings per share of €0.21 and return on tangible equity (RoaTBV) of 16.5%, versus targets of around €0.80 and 14% respectively for full 2024
  • Net interest income stood at 518 million euros, +16% year-on-year, with resilient customer interest margins. The cost of term deposits stood at 2.1%
  • Net fee income was €145m, up 19% YoY and 1% QoQ, driven mainly by client asset management, bancassurance products and investment banking fees
  • Recurring operating expenses were at a historically low level of 193 million euros, -5% year-on-year, due to ongoing efficiency enhancement actions
  • Historically low organic cost of risk at 51 basis points. Excluding NPE servicing fees and synthetic securitization costs, the cost of risk was at an all-time low of 17 basis points
  • Stable asset quality with NPE ratio at 3.5%, and NPE coverage at 60%, enhanced by 5 percentage points p.a.
  • Good start in loan disbursements, which stood at €2.1 billion or +6% year-on-year. High repayments (2.3 billion euros) had a compensating effect due to the expected seasonality of the 1st quarter. NPLs increased by €1.6 billion annually to €30 billion, with a significant flow of projects to be financed in the coming months.
  • The production of organic capital amounted to 0.8%, before exceptional items and provision for dividend distribution. The CET1 ratio stood at 13.6% and the total capital ratio at 18.4% as of Mar.24, including provision for a 25% dividend distribution. At a pro forma level reducing risk-weighted assets from NPE sales to be completed in the coming 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% quarter-on-quarter and 33% year-on-year to €10bn, driven by inflows into mutual funds and private banking
  • Strong liquidity profile, with a liquidity coverage ratio of 241% and a loan-to-deposit ratio of 62%.