Piraeus Bank upgraded its goals for 2024. In particular, as stated in a related announcement, after evaluating trends and estimates for the year, Piraeus Financial Holdings is upgrading its financial goals for 2024, compared to those published on February 14, 2024.

Specifically, the Bank’s management foresees:

  • profitability boost, with a smoothed return on tangible equity (RoaTBV) of approximately 15% vs. 14% previously (adjusted earnings per share of approximately €0.85 vs. €0.80 previously), with net earnings of approximately €1.0 billion vs. €0 .9 billion previously,
  • higher net interest income for 2024 of around €2.0bn from €1.9bn previously, due to lower deposit costs versus budget, from limited balance transfers to term deposits. Net interest margin of approximately 2.7% versus 2.6% previously,
  • confirmation of the stable growth trajectory, with the portfolio of serviced loans at the end of 2024 increasing to approximately €31.7 billion compared to a previous estimate of €31.5 billion,
  • strengthening fee income generation to Q1 2024 levels, representing approximately 0.8% as a percentage of assets for 2024 compared to a previous estimate of 0.7% respectively;
  • containment of operating expenses, with the ratio of cost to basic income forming below 33% for 2024, against an estimate for a level lower than 35% previously,
  • lower cost of risk for 2024 to around 0.7% on loans after forecasts from 0.8% previously.

As noted, Piraeus’ business plan is now based on an estimate of average 3-month Euribor at 3.6% for 2024, up from 3.8% previously, with the ECB’s deposit facility rate expected to be 3.25% at the end of 2024, up from 3.75% previously.

The upgrade of the financial targets for 2024 is accompanied by a provision for distribution to shareholders of 25%-30% of the profits, a percentage which is expected to be finalized and paid next year, subject to obtaining the necessary supervisory approval.