Historical record profitability of €333 million was recorded by Piraeus Bank in the second quarter of the year, with earnings per share amounting to €0.26, up 42% year-on-year.

According to the Bank’s announcement, the main developments of the second quarter and first half of 2024 are the following:

  • Adjusted earnings per share of €0.47 in the half, against a target of around €0.85 in 2024.
  • Performance tangible equity (RoaTBV) 18% in the half, against a target of around 15% in 2024. Tangible equity per share was €5.42 on Jun24, up 15% y/y
  • The net interest incomes stood at €528m in Q2, +2% quarter-on-quarter and +8% year-on-year, supported by credit expansion, bond portfolio growth and stable deposit mix. Net interest income was €1,045m in the half, +12% year-on-year, with the net interest margin ratio at 2.7%, in line with the annual target. The cost of term deposits stood at 2.1% in Q2, with the cost of new term deposits at 2.8%
  • The net commission income stood at €179m in Q2, boosted mainly by financing commissions, card operations, fund transfers and client fund management. Net commission income amounted to 325 million euros in the six months.
  • The recurring operating expenses stood at €199m in Q2, flat on a year-on-year basis, in line with the annual target. Recurring operating expenses stood at €392 million in the half, -3% year-on-year, a consequence of operational efficiency actions that offset inflation and investment costs. Piraeus operates with the industry’s lowest cost efficiency ratio at 28% in Q2
  • The organic cost of risk remained low at 46 basis points in Q2 and 48 basis points in H1. Excluding NPE servicing fees and synthetic securitization costs, the cost of risk was 21 basis points in Q2 and 19 basis points in H1
  • Stable asset quality with the NPE ratio at 3.3%, versus 5.5% in the corresponding period last year, and NPE coverage at 59%, strengthened by 2 percentage points annually
  • Increasing the portfolio of serviced loans by €1.2 billion in the half year, against a target of +€1.6 billion for 2024. Of the €3.2 billion in disbursements in Q2, around €1.5 billion went to small, medium-sized businesses and individuals, and approximately 1.7 billion euros in large companies and shipping. The perimeter of Piraeus loans linked to the Recovery and Resilience Fund is 1.8 billion euros.
  • THE CET1 ratio at a pro forma level it stood at 14.2% and the total capital ratio at 19%, with both ratios including provision for a 30% distribution to shareholders. Capital indicators in the 2nd quarter are already shaping up at the 2024 target level
  • The corresponding pro forma MREL was set at 28.3% in June 2024, making Piraeus the first Greek bank to meet the final MREL binding requirement, a year and a half ahead of target
  • Strong liquidity profile, with a liquidity coverage ratio of 215% and a loan-to-deposit ratio of 63%

In a statement on the occasion of the announcement of Piraeus Bank’s results, the CEO of the group, Christos Megalou, said:

“2024 has started strongly for Piraeus, with the 1st semester confirming significant progress towards meeting or exceeding annual targets. During the 1st half of the year, Piraeus presented a record high of half-year financial results producing 0.47 euro earnings per share, with an annual increase of 41%, and an 18% return on equity, from 14% in the corresponding period last year. Piraeus achieved sustainable profitability, and strengthening of its capital, through diversified sources of income and cost discipline, while maintaining prudent management of credit risk.

Revenue strengthened significantly, with net interest margin at 2.75%, and net fee income at 0.85% of assets in the first half, with both revenue streams benefiting from strong growth in balances customers. The Group’s outstanding loan portfolio stood at €31.3bn, up €1.3bn in the second quarter, and is on track to exceed the annual target of €31.7bn in outstanding loans. Of the €3.2 billion in loan disbursements in the second quarter, €1.5 billion went to small, medium-sized businesses and individuals. Client funds under management rose to 10.4 billion euros in June, surpassing the 2024 target of 10.2 billion euros.

The focussed approach on operational efficiency kept the cost-to-core ratio at 29%, among the lowest in the European banking market, while risk costs remained low at 19 basis points, or 48 basis points including NPE servicing fees and of synthetic securitization costs, a result of the successful management of new NPE inflows. The NPE ratio improved further to 3.3% and NPE provisioning coverage remained close to 60%.

The CET1 ratio strengthened to 14.2%, up 0.9 percentage points since the start of the year, having already met the annual target. In addition, after the successful issuance of the new green bond with a high repayment priority amounting to 650 million euros in July 2024, the corresponding pro forma MREL ratio stood at 28.3%, as a result of which Piraeus became the first Greek bank to meet the final binding target of 27.9% for the MREL ratio, one and a half years before the cut-off date.

2024 is shaping up to be a milestone year for Piraeus. After returning to full privatization in the 1st quarter, the Group paid a dividend of €79 million to shareholders for the first time in 16 years, while recently the Group’s core subsidiary, Piraeus Bank, regained its investment grade rating after 14 years.

The receipt of a pan-European banking license by the Greek neobank, snappi, is an important step in the Bank’s path to emerge as a pole of the new banking landscape in Europe. This achievement reflects our unwavering commitment to innovation and our ability to respond to the evolving needs of our customers.

We have welcomed our new brand with enthusiasm, and continue to build an organization that represents our customers. Our new corporate identity reflects the dynamism and flexibility that characterize the new era of Piraeus, and is a symbol of our resilience and ability to evolve in a constantly changing environment.

We continue to raise the bar of our aspirations and be committed to creating value for the benefit of our shareholders, while offering continuous support to our customers and the wider Greek economy and society We are proud to have been awarded three distinctions at the international Euromoney awards, including “The World’s Best Bank Transformation” award in recognition of the Bank’s successful course, transformation and return to profitability”