Group 1 - The presentation focuses on Piraeus Bank's strategy for profitable growth, emphasizing scale, balance sheet strength, and digital execution as key drivers [2][3] - Piraeus Bank is identified as the largest bank in Greece, positioning itself for future growth opportunities [2] - The agenda includes a strategic overview from the CEO, insights on the Greek economy from the Chief Economist, and a discussion on the strategic rationale behind the acquisition of Ethniki Insurance [3][4]

Financial Performance - Piraeus Bank reported a total capital ratio of 18.7%, with a CET1 ratio of 12.7% and MREL at 29.0%, indicating a buffer of approximately 275 basis points above P2G and 165 basis points above the requirement [1][1][1] - The bank achieved a net revenue of €2.7 billion, with revenues from services increasing by 7% and net interest income (NII) showing a quarter-on-quarter increase [1][1][1] - The bank's earnings per share (EPS) reached €0.82, surpassing the guidance of €0.80 for the year, and reported a normalized profit of €1.2 billion [1][1][1] Asset Management and Growth - Piraeus Bank experienced a 27% year-over-year increase in assets under management (AuM), totaling €14.5 billion, with net inflows of €1.5 billion in 2025 [1][1][1] - The bank reported a net credit expansion of €3.9 billion, leading to an 11% year-over-year loan growth, while maintaining pricing discipline [1][1][1] Dividend and Shareholder Returns - The bank announced a cash dividend of €0.40 per share, in addition to a €100 million share buyback executed in Q4, resulting in a total distribution of €592 million for 2025, equating to a 7% total yield [1][1][1] Efficiency and Cost Management - Piraeus Bank achieved a cost-to-core income ratio of 33%, reflecting best-in-class efficiency despite inflation and ongoing investments [1][1][1] - The bank's organic cost of risk (CoR) was reported at 52 basis points, with a non-performing exposure (NPE) ratio of 2.0% and NPE coverage increasing to 73% from 65% a year ago [1][1][1]

Core Viewpoint - Piraeus Bank S.A. has announced its financial calendar for the year 2026, detailing key dates for financial results and shareholder meetings [1]. Financial Calendar Summary - February 26, 2026: Announcement of FY 2025 Financial Results & Analysts Briefing [1] - February 27, 2026: Publication of Annual Financial Report 2025 [1] - March 5, 2026: Capital Markets Day 2026 [1] - April 21, 2026: Ordinary General Meeting of Shareholders [1] - April 30, 2026: Announcement of Q1 2026 Financial Results & Analysts Briefing [1] - July 29, 2026: Announcement of further financial results [1]

Core Insights - Piraeus Bank has successfully acquired Ethniki Holdings, the parent company of Ethniki Insurance, for a total cash payment of €600 million, marking a significant strategic move for the bank [1][6] - Ethniki Insurance serves 1.8 million active customers and reported gross written premiums of €850 million for 2024, holding a 14.6% share of the national insurance market [1][2] - The acquisition is expected to enhance Piraeus Bank's capital ratio to approximately 19% by the end of 2025, supporting a Pillar 2 Guidance buffer estimated at 300 basis points [4] Company Overview - Ethniki Insurance has a market share of 18.3% in life insurance and 11.3% in non-life insurance, with total assets of €4.1 billion and shareholders' equity of €400 million as of 2024 [2] - The insurer reported a pre-tax profit of €14.8 million for 2024, with unaudited results for the first ten months of 2025 indicating a pre-tax profit exceeding €30 million [2] Strategic Implications - The integration of Ethniki Insurance is aimed at broadening Piraeus Group's revenue sources and expanding its range of banking, protection, and investment products [5] - Piraeus Group's CEO emphasized that this acquisition represents a defining moment for the group, highlighting its commitment to revenue diversification and strategic growth [5][6] - The collaboration is expected to create new opportunities for growth and enhance value for customers and shareholders [3][5]

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]