Piraeus Bank announced a historically high adjusted net profit of EUR 932 million for the first nine months of the year. Earnings per share came in at EUR 0.72, leading to an updated earnings per share target of more than EUR 0.90 in 2024. Net profit was EUR 320 million in Q3, or EUR 0.25 earnings per share, up 15% year-on-year.
KEY FIGURES
Return on tangible equity (RoaTBV) 18% in the nine months, leading to an updated target of over 17% in 2024. Tangible equity per share stood at €5.69 in Sep24, up 15% year-on-year
- Net interest income increased to €530m in 3Q, up from €528m in the previous quarter, despite the June 2024 interest rate cut, benefiting from strong growth in customer loan balances
Net interest income amounted to €1,575 million in the first nine months, up 7% year-on-year, with the net interest margin (NIM) ratio at 2.7%
Above-market net fee and commission income at 0.8% as a percentage of assets in the first nine months, which stood at €480 million, boosted mainly by financing fees, card operations, fund transfers and customer funds management. Net fee and commission income was €156 million in the third quarter
Client funds under management increased 29% year-on-year to €11 billion in September 2024, consistent with the first place in net sales of mutual funds in the period, as well as institutional and private banking fund management
Top operating efficiency, with a cost efficiency ratio of 30% in Q3, and recurring operating expenses at €206 million, up 6% year-on-year, driven by talent retention fees and investments in technology Recurring operating expenses were €598 million in the nine months, flat year-on-year, maintaining cost discipline in the organization
-Organic risk costs remained low, at 54 basis points in the third quarter and 49 basis points in the first nine months. Excluding NPE servicing fees and synthetic securitisation costs, risk costs were 33 basis points in Q3 and 23 basis points in 9M.
Stable asset quality with the NPE ratio at 3.2%, compared to 5.5% in the same period last year, and NPE coverage at 61%, up 4 percentage points per annum The 2024 NPE ratio target was updated to a level below 3% due to effective organic management as well as a small NPE sale in preparation
- Increase in the non-performing loan portfolio by €1.9 billion in the nine months to €32 billion, leading to an updated target of €33 billion at the end of 2024, which corresponds to a 10% increase. Of the €2.8 billion of disbursements in Q3, around €1.3 billion was channelled to small, medium enterprises and individuals, and around €1.3 billion to large enterprises. The perimeter of Piraeus loans linked to the Recovery and Resilience Fund stands at €1.5 billion, in addition to the €0.5 billion already disbursed.
CEO STATEMENT
CEO Christos Megalou said: "Piraeus' performance in the nine months to 2024 is a clear demonstration that we are exceeding our targets across all areas. In the nine months to 2024, Piraeus delivered an all-time high financial performance, generating €0.72 earnings per share, up 31% year-on-year, and an 18% return on tangible equity, up from 15% in the same period last year. Piraeus achieved sustained profitability and capital strengthening through diversified revenue streams and cost discipline, while maintaining prudent credit risk management."
