Piraeus Bank reported a historically high smoothed profit of €333 million in the second quarter, with €0.26 earnings per share, up 42% year-on-year.

Due to increased credit availability, an increase in the bond portfolio, and a stable deposit mix, net interest income was €528 million in Q2, up 2% quarterly and 8% annually. Net interest income amounted to €1,045 million in the half-year, +12% year-on-year, with the net interest margin ratio at 2.7%, in line with the annual target. The cost of time deposits was 2.1% in Q2, with the cost of new time deposits at 2.8%.

Net fee and commission income was €179 million in Q2, boosted mainly by financing fees, card operations, fund transfers, and customer funds management. Net commission income was €325 million in the half-year.

At the same time, organic risk costs remained low, at 46 basis points in Q2 and 48 basis points at the half-year. Excluding NPE servicing fees and synthetic securitization costs, risk costs were 21 basis points in Q2 and 19 basis points in the six months.

Piraeus showed stable asset quality with an NPE ratio of 3.3%, compared to 5.5% in the same period last year, and NPE coverage of 59%, up 2 percentage points per year.

In addition, an increase in the non-performing loan portfolio of €1.2 billion was recorded in the half-year, against a target of € +1.6 billion for 2024. Of the €3.2 billion of disbursements in Q2, around €1.5 billion was channelled to small and medium enterprises and individuals, and around €1.7 billion to large enterprises and shipping. The perimeter of Piraeus loans linked to the Recovery and Resilience Fund amounts to €1.8 billion.

Finally, the pro forma CET1 ratio was 14.2% and the total capital ratio was 19%, with both ratios including a provision for a 30% distribution to shareholders. The capital ratios in Q2 are already at the 2024 target level.

CEO STATEMENT

Christos Megalou, CEO, said: "2024 has started dynamically for Piraeus, with the first half of the year confirming the significant progress towards meeting or exceeding the annual targets. In H1, Piraeus reported all-time high half-year financial results, generating €0.47 earnings per share, up 41% year-on-year, and an 18% return on equity, up from 14% in the same period last year. Piraeus achieved sustained profitability and strengthened its capital position through diversified revenue sources and cost discipline, while maintaining prudent credit risk management.".