ATHENS, Greece--(BUSINESS WIRE)--Piraeus Bank S.A. announces its financial calendar for year 2026: Thursday, 26 February 2026 Announcement of FY.2025 Financial Results & Analysts Briefing Friday, 27 February 2026 Publication of Annual Financial Report 2025 Thursday, 05 March 2026 Capital Markets Day 2026 Tuesday, 21 April 2026 Ordinary General Meeting of Shareholders Thursday, 30 April 2026 Announcement of Q1.2026 Financial Results & Analysts Briefing Wednesday, 29 July 2026 Announcemen. ...

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]

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]