Historically high adjusted net profit of €932 million in the nine months, which equates to €0.72 earnings per share, leading to a target update to earnings per share above €0.90 in 2024, the company announced today Bank of Piraeus. Net income came in at €320 million in Q3, or €0.25 earnings per share, up 15% year over year.

In his statement on the occasion of the announcement of the financial results, the managing director of Piraeus Bank Christos Megalou states:

“The performance of Piraeus in the nine months of 2024 is a clear proof of exceeding our goals in all areas. During the nine months of 2024, Piraeus presented a record high of financial results, generating 0.72 euros in earnings per share, with an annual increase of 31%, and an 18% return on tangible equity, from 15% in the corresponding period last year. Piraeus achieved sustainable profitability and capital strengthening through diversified revenue streams and cost discipline, while maintaining prudent credit risk management.

Our revenue increased significantly, driven by the growth of our activities. Net interest margin stood at 2.7% in the nine months, and net fee income to assets at 0.8%, a top performance for Greece. Net interest income was higher in Q3 as strong loan growth offset the rate cut in June 2024, while net fee income grew at three times the rate of net interest income, reflecting our revenue diversification efforts.

The current loan portfolio stood at €32 billion, up 9% year-on-year and +€2 billion in the nine months, exceeding the annual target of €31.5 billion. Of the €2.8 billion in loan disbursements in the third quarter, €1.3 billion went to small, medium-sized businesses and individuals. Client funds under management increased to €11 billion in September, driven by strong net sales of mutual funds, in which Piraeus leads Greece in nine months 2024.

A focused approach to operational efficiency kept the cost-to-core ratio at 29% in the nine months, remaining among the best in the European banking market, while risk costs stabilized at low levels at 23 basis points, or 49 basis points including servicing fees NPE and synthetic securitization outflows, a result of successful management of new NPE inflows. The NPE ratio improved further to 3.2% and NPE provisioning coverage exceeded 60%.

The CET1 ratio strengthened to 14.7%, up one and a half percentage points since the start of the year, beating the annual target. Additionally, following the successful pricing of the new Tier 2 subordinated bond in September 2024, the MREL was set at 29.1%, with Piraeus meeting the final MREL binding requirement, more than a year before the due date. Building on the 2024 performance and momentum to date, Piraeus is today upgrading its 2024 targets.

Highlights include strengthening profitability, with a smoothed return on tangible equity of more than 17%, smoothed earnings per share of more than €0.90, a further increase in the CET1 ratio to around 15%, a rise in outstanding loans to €33bn and a ratio of non serviced exposures below 3%.

We also now target a 35% profit distribution rate from 2024 earnings, subject to the fulfillment of the necessary conditions, while the 50% distribution rate for the following year has been endorsed in the updated distribution policy. We continue to raise the bar of our pursuits and be committed to creating value for the benefit of our shareholders, while offering continuous support to our customers and to the wider Greek economy and society.”