Piraeus Financial Holdings(US:BPIRY)2025-02-24 17:27Financial 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]