Core Insights - Piraeus Financial Holdings reported a net profit of €854 million and a return on tangible book value (RoTBV) of 15% for the first nine months [1] - The company achieved a normalized return of 15% over tangible book value and maintained a cost-to-core income ratio of 34% [1] - Earnings per share stood at €0.62, with a net interest margin (NIM) of 2.3% and net revenues of €2.0 billion [1] Financial Performance - The total capital ratio increased by 65 basis points year-over-year to 20.6% [1] - The non-performing exposure (NPE) ratio is reported at 2.5%, with an organic cost of risk (CoR) of 49 basis points [1] - Client assets reached €37 billion, indicating a strong performing book expansion [1]

Group 1 - Palm Harbour Capital LLP is a London-based investment manager founded by Peter Smith with support from Santa Comba Gestión SL, the holding company of Spanish investor Francisco García Paramés [1] - Palm Harbour Capital manages the Cobas Lux SICAV Palm Harbour Global Value Fund, focusing on a value investment philosophy [1] - The investment strategy emphasizes investing in competitively advantaged businesses when they are trading at a significant discount to their intrinsic value [1]

Financial Performance - Piraeus achieved a net profit of €1.1 billion in 2024, a 36% year-over-year increase, surpassing the initial budget of €0.9 billion [5] - The normalized Return on Average Tangible Book Value (RoaTBV) reached 17.5% for the full year, with 18.1% in Q4, aligning with top-performing peers in the region [5] - Net revenue increased by 7% to €2.8 billion in 2024, driven by a 16% growth in fees, which outpaced the 4% growth in net interest income (NII) [5] - The bank proposes a €373 million cash dividend, representing a 35% payout ratio and a 6% dividend yield based on the February 21, 2025 market capitalization of €6.0 billion [5] Loan Portfolio and Asset Quality - The loan book grew by 12% to €33.7 billion, an increase of €3.6 billion year-over-year, exceeding the initial target of €1.6 billion [5] - The Non-Performing Exposure (NPE) ratio improved to 2.6%, with an organic cost of risk at 46 basis points, lower than the initial target of 80 basis points [5] - Performing loans increased by €3.6 billion year-over-year, reaching €33.7 billion [48] Capital and Liquidity - The Common Equity Tier 1 (CET1) ratio stood at 14.7%, with a 460 basis points buffer above the Minimum Distributable Amount (MDA) [5] - The bank's liquidity position is strong, with deposits reaching €62.9 billion, a 6% year-over-year increase [58] - The bank is already compliant with the terminal Minimum Requirement for own funds and Eligible Liabilities (MREL) requirement for end-2025, with a 180 basis points buffer [66] Business Plan and Future Outlook - The bank aims for sustainable profitability, targeting over €2 billion in distributions by 2028 [147] - The bank projects a net profit of approximately €1.1 billion in 2025 and anticipates increasing it to around €1.3 billion by 2028 [147] - The bank expects performing loans to grow to approximately €45 billion by 2028 [147]

Financial Data and Key Metrics Changes - The company reported earnings of €1.1 billion for 2024, a 36% increase year-on-year, surpassing the initial budget of €900 million [5] - Earnings per share were reported at €0.81, leading to a proposed cash dividend of €0.30 per share, up from €0.06 last year [4][10] - The normalized return on average tangible book value was 17.5% for 2024 and 18.1% for Q4, aligning with best-in-class in the region [6] - The CET1 ratio increased by 135 basis points year-on-year to 14.7%, with a total capital ratio of 19.9% [9] Business Line Data and Key Metrics Changes - The performance loan book expanded by €3.6 billion or 12% year-on-year to €33.7 billion, exceeding the initial target for 2024 [6][14] - Net revenue grew by 7% year-on-year, with fees growing at four times the annual rate of net interest income [7] - The company achieved a cost to core income ratio of 30%, among the best in the European banking market [8] Market Data and Key Metrics Changes - The company increased its assets under management by 23% to €11.4 billion, primarily driven by mutual funds [7] - The NPE (Non-Performing Exposure) ratio improved to 2.6%, indicating solid asset quality dynamics [8][13] Company Strategy and Development Direction - The company aims to transition to a modern retail bank model and enhance energy efficiency and carbon footprint awareness [16] - The strategic plan for 2025-2028 includes projected net profit growth to approximately €1.1 billion annually, reaching €1.3 billion by 2028, with loans expected to expand by €12 billion [21][22] - The company plans to maintain a capital distribution target of around 40% of profits to shareholders starting from 2025 [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a favorable macro environment driving lending growth and market opportunities, with Greek GDP expected to grow by approximately 2% annually [20] - The company anticipates a stable cost of risk at low levels, guiding for 50 basis points in the next two years [41] Other Important Information - The company has a strong liquidity profile, with a liquidity coverage ratio of 219% and a historic high balance of deposits at €63 billion [15] - The digital bank Snappi is expected to launch by mid-2025, with anticipated cumulative losses of around €50 million in the first two years [23][75] Q&A Session Summary Question: Capital growth and tangible book value - Management clarified that the capital growth in 2025 is influenced by Basel IV impacts and the increase in distribution payout from 35% to 50% [28][29] Question: Cost base and inflation - Management indicated that recurring costs are expected to grow in line with inflation, maintaining a stable cost base [30] Question: Dividend payout risks - Management confirmed that distribution aspirations will not be compromised for M&A activities, emphasizing a commitment to shareholder returns [43] Question: Foreclosed assets and provisioning - Management discussed the reduction of foreclosed assets from €1.9 billion to around €1.5 billion, with expectations of further organic sales [51][54] Question: Loan growth guidance - Management projected an 8% growth in loans for 2025, with a focus on retail lending returning to growth after years of contraction [57][59] Question: Snappi's financial outlook - Management expects Snappi to incur cumulative losses of around €50 million in the first two years, breakeven by 2027, and profitability by 2028 [75] Question: Fee income trajectory - Management anticipates sustained growth in fee income, particularly in bancassurance, despite government measures impacting some areas [82][94]

Core Insights - Piraeus Bank is one of the largest financial institutions in Greece, providing a comprehensive range of services in retail, corporate, and investment banking [1] Group 1 - The bank has undergone significant transformation over the years, focusing on improving its operations and services [1]

Financial Data and Key Metrics Changes - Piraeus Financial Holdings reported a normalized net profit of €320 million for Q3 2024, contributing to a total of €932 million for the first nine months of 2024, marking the best performance in the company's history [4] - The normalized earnings per share (EPS) increased by 16% year-on-year to €0.25 for the quarter and €0.72 for the nine-month period, leading to an updated target of over €0.90 for 2024 [5] - The return on tangible book value was 18% for both Q3 and the nine-month period, prompting an upgrade of the 2024 target to higher than 17% [6] - The net revenue grew by 9% year-on-year for the nine-month period, with fees growing at three times the annual rate compared to net interest income (NII) [6] - The cost of risk remained low at 23 basis points for the nine-month period, with a non-performing exposure (NPE) ratio decreasing to 3.2% [8] Business Line Data and Key Metrics Changes - The assets under management increased to €11 billion, driven by strong net mutual fund sales, positioning the company as a leader in this segment [7] - The performing loan book expanded by €2 billion in the nine-month period, with a target of €33 billion by December 2024, reflecting a 10% year-on-year growth [8][22] - Net fee income over assets reached 83 basis points, indicating strong performance in the wealth and asset management strategy [13] Market Data and Key Metrics Changes - The liquidity coverage ratio stood at 244%, and the loan-to-deposit ratio was 63%, both indicating a solid liquidity profile [18] - The CET1 ratio increased by 150 basis points year-to-date to 14.7%, with a total capital ratio of 20% [9] Company Strategy and Development Direction - The company aims to accelerate DTC amortization, targeting zero DTC by 2034, which is expected to enhance dividend payouts and overall balance sheet health [20][66] - Piraeus is focusing on expanding its retail credit offerings, leveraging state schemes and a diversified sectoral model to drive growth in mortgages and small business loans [17][78] - The company is also exploring potential acquisitions in asset management and transaction banking to strengthen its fee income [90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a payout ratio of 35% for 2024 profits and a 50% payout ratio for 2025, supported by strong financial performance [9][22] - The management highlighted the importance of maintaining a balance between capital distribution and growth, emphasizing the need for sustainable profitability [68][90] - The outlook for the mortgage market remains cautious, with expectations of flat growth in 2025, but potential for improvement driven by state programs [78] Other Important Information - The company has received a European banking license for its neobank, snappi, which is set to launch in Q2 2025, with projected revenues exceeding €200 million [21] - The company is committed to maintaining a disciplined approach to cost management, with a cost-to-core income ratio of 29% [7] Q&A Session Summary Question: NII resilience and guidance for 2025 - Management noted that the term deposit share is expected to remain static, with higher loan volumes contributing to NII growth for 2025 [29][30] Question: DTC amortization and dividend payouts - There are no further regulatory approvals required for DTC amortization, which is expected to facilitate higher dividend payouts [36] Question: Loan growth and market conditions - The company anticipates strong loan growth driven by SME markets and government programs, with a target of €33 billion in performing loans by year-end [43][78] Question: Cost of risk and asset quality - Management expressed confidence in achieving a cost of risk in line with European averages, with a focus on maintaining low NPE formation [59][60] Question: Capital allocation and acquisitions - The company is exploring bolt-on acquisitions in asset management and transaction banking to enhance growth and fee income [90]

Financial Performance - Piraeus Financial Holdings achieved a record net profit of €932 million for the first nine months of 2024, with an Earnings Per Share (EPS) of €0.72[2] - The company's Return on Average Tangible Book Value (RoaTBV) reached 18% in Q3 2024, leading to an updated target of >17% for the full year[2] - Net Interest Income (NII) grew quarter-over-quarter, driven by volume growth that outpaced the June 2024 rate cut, reaching €530 million in Q3[2] - Net fee income increased by 21% year-over-year for the first nine months, outpacing NII growth of 7%, benefiting from strong growth in client balances[2] - Assets under Management (AuM) grew by 29% year-over-year to €11 billion in September 2024, driven by strong net mutual fund sales, institutional mandates, and private banking[2] Loan Portfolio and Asset Quality - Loan growth reached 10% for 2024, with a performing exposure (PE) book of €32 billion, exceeding the initial FY24 target of €31.5 billion and updating the target to €33 billion for December 2024[2] - The organic cost of risk was 49 basis points for the first nine months, with an underlying cost of risk of 23 basis points, leading to an updated target of <3% Non-Performing Exposure (NPE) ratio for 2024[2] - The Non-Performing Exposure (NPE) ratio decreased to 3.2%[3] Capital and Distribution - The Common Equity Tier 1 (CET1) ratio stood at 14.7%, with a total capital ratio of 19.9%, and the highest Minimum Requirement for own funds and Eligible Liabilities (MREL) in Greece at 29.1%[2] - The payout ratio was updated to 35% for 2024 and 50% for 2025[2]

Financial Data and Key Metrics Changes - Piraeus Financial Holdings reported a normalized net profit of €333 million in Q2 2024, contributing to a total of €612 million for the first half of the year, marking the best quarterly and semiannual performance ever [4][5] - Earnings per share reached €0.26 in Q2, up 42% year-on-year, and €0.47 for the first half, compared to a full-year guidance of €0.85 [9] - Return on average tangible book value was 19% in Q2, with a first-half figure of 18%, exceeding the full-year target of 15% [10] - Operating expenses were reduced by 3% year-on-year, with a cost-to-core income ratio of 29%, among the best in Europe [11] - The CET1 ratio increased by 50 basis points to 14.2%, with the total capital ratio at 19%, both already meeting 2024 targets [12] Business Line Data and Key Metrics Changes - The performing loan book expanded by €1.2 billion in the first half, with strong growth in business lending and a breakeven quarter in the retail book [12][19] - Net interest income showed resilience with a net interest margin of 2.7% and stable loan pass-through at 80% [15] - Net fee income reached a record high of 93 basis points of assets in Q2, driven by loan expansion and asset management [16][17] Market Data and Key Metrics Changes - Piraeus has become the first Greek bank to meet the final MREL requirement 1.5 years ahead of target, and it successfully acquired a pan-European license for Neo Banks [6] - The bank's assets under management increased to €10.4 billion, surpassing the end of 2024 target, reflecting a 27% year-on-year growth [22] Company Strategy and Development Direction - The company is focused on expanding and diversifying revenue sources, with a strong emphasis on operational efficiency despite inflationary pressures [17] - Piraeus is undergoing a transformation strategy for 2024-2026, prioritizing customer experience and aiming to solidify its position in the new banking landscape in Europe [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in surpassing the current level of net credit growth, driven by activity in various sectors including manufacturing and transportation [42] - The company anticipates continued positive trends in mortgage lending, supported by government initiatives [69] Other Important Information - Piraeus paid a cash dividend of €72 million to shareholders in Q2, marking the first dividend payment in 16 years [5] - The bank's turnaround has been recognized with multiple awards, including "The Global Best Bank Transformation" by Euromoney [7] Q&A Session Summary Question: Future fee levels in card segment - Management indicated that while Q2 was strong for card fees, it is not a one-off, and a run rate between Q1 and Q2 is expected [29][30] Question: Mortgage demand outlook - Management noted a reversal in the negative trend for mortgages, with a breakeven in new production over repayments, aided by the My Home program [31][32] Question: Loan margins and guidance for 2025-2026 - Management highlighted resilient loan yields and indicated potential upside to NII guidance for 2025-2026, depending on market conditions [40][41] Question: Loan growth compared to sector trends - Management stated that Piraeus's loan growth is in line with sector performance, with June showing strong results for both [48] Question: CET1 ratio and Basel IV impact - Management confirmed that the CET1 ratio will remain above 14% and discussed the expected impact of Basel IV starting in 2025 [49] Question: Snappi's customer base and revenue generation - Management clarified that Snappi targets a new customer base, minimizing cannibalization risk, and will be consolidated in the group's P&L [50][51] Question: Cost of risk and RWAs - Management discussed the current cost of risk and the substantial increase in RWAs, emphasizing the strength of profitability despite growth [60][61]

Financial Performance - Piraeus achieved a record normalized net profit of €333 million in Q2 2024 and €612 million for H1 2024, with an EPS of €026 in Q2 and €047 for H1[3] - The normalized Return on Average Tangible Book Value (RoaTBV) was 19% in Q2 2024 and 18% in H1 2024, exceeding the target of ~15% for 2024[3] - Net revenue increased by 10% year-over-year in H1 2024, driven by strong growth in net interest income (NII) and net fee income (NFI) due to increased client balances[3] - The bank's efficiency ratio improved to 29% in H1 2024, reflecting best-in-class cost management with a 3% year-over-year decrease in total operating expenses[3] Capital and Asset Quality - Piraeus' CET1 ratio stood at 142% and the total capital ratio at 190%, with a 30% distribution accrual, demonstrating a strong capital position[3] - The bank's asset quality remained solid, with a Non-Performing Exposure (NPE) ratio of 33%[3] - Assets Under Management (AuM) grew by 27% year-over-year to €104 billion in June 2024, driven by mutual fund inflows, institutional mandates, and private banking[3] Strategic Positioning - Piraeus is the leading bank in Greece, holding the 1 position in performing loans (25%), deposits (28%), bancassurance (31%), and brokerage (27%)[2] - The bank has a 36% market share in e-banking, with 99% of transactions conducted via digital channels[2] - Piraeus is the first Greek bank to meet the final Minimum Requirement for own funds and Eligible Liabilities (MREL) requirement, a year and a half ahead of target, reaching a MREL ratio of 283%[3]

Financial Data and Key Metrics Changes - In Q1 2024, the company generated normalized earnings of $0.21 per share, aligning with the full-year guidance of $0.80 [6] - The return on average tangible book value was 16.5%, exceeding the full-year target of 14% [6] - Recurring net revenue grew by 10% year-on-year, with operating expenses reduced by 5% year-on-year, achieving a cost-to-core income ratio of 29% [7][13] - The cost of risk dropped to a historic low of 17 basis points, with an NPE ratio maintained at 3.5% and NPE coverage at 60% [8][14] - The CET1 ratio reached 13.7% and total capital ratio was 18.5% [9][17] Business Line Data and Key Metrics Changes - Net fee income increased by 19% year-on-year, reaching €145 million in Q1, with a market-leading level of 76 basis points [12] - The performing loan portfolio grew by 6% annually, with strong disbursements utilizing RRF and My Home program totaling approximately €500 million [15] Market Data and Key Metrics Changes - The deposit base is described as granular, stable, and of high quality, contributing to low deposit betas [16] - The liquidity coverage ratio was 241% and the loan-to-deposit ratio was 62%, both at the top range of the European spectrum [16] Company Strategy and Development Direction - The company is focused on cost containment and operating excellence, aiming to exceed full-year targets [5] - A strong capital buildup of approximately 80 basis points in Q1 supports the planned shareholder distribution of 25% [17][20] - The company is pursuing further operating efficiency despite inflationary pressures, maintaining a best-in-class cost-to-core income ratio [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving guidance for net credit expansion and stable loan yields [26][27] - The company updated macro expectations in line with fiscal sector consensus, indicating a minor impact on cost of risk assumptions [53] - Management noted that the first quarter is typically weak due to seasonal repayments, with expectations for stronger performance in the second quarter [33] Other Important Information - The company announced it would pay a cash dividend of approximately €80 million for 2023 results, marking the first dividend payment in 16 years [20] - Piraeus was recognized for its efforts in reducing carbon emissions, being included in the Financial Times list of Europe's Climate Leaders for the fourth consecutive year [21] Q&A Session Summary Question: Interest income from fixed-income securities portfolio - Management confirmed that the balance grew mainly towards the end of the quarter and expects a step-up in interest income in the next quarter [22][23] Question: Loan growth and pricing spreads - Management confirmed guidance for net credit expansion and stable loan yields, with new production slightly lower than the current stock [26][27] Question: CET1 capital deductions and future impacts - Management indicated that there will be additional capital deductions over the next three years, approximately €200 million to €230 million [28][29] Question: Loan growth and seasonal repayments - Management explained that seasonal repayments are typical for the first quarter, with expectations for stronger growth in the second quarter [33] Question: NII and hedging positions - Management confirmed that NII was flat excluding hedges, with no pressures from deposits [39][41] Question: Strategy on repossessed assets - Management outlined a strategy to accelerate the sale of repossessed assets, which are currently not dragging on P&L [58][59]