Piraeus Financial Holdings (ATHEX: TPEIR) (OTCQX:BPIRY) (OTCQX: BPIRF):
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€1.1bn profitability and 12% loan growth in 2024 pave the way for €373mn cash dividend
Record profitability | Best-in-class operating efficiency | |||
17.5% normalized return
| 30% cost-to-core income | |||
| €0.81 earnings per share | 2.7% NIM +4% NII YoY | 0.8% fees over assets | ||
Capital generation | Solid asset quality | |||
19.9% | +176bps | 2.6% | 0.5% | |
Performing book expansion | Client assets under management | |||
€33.7bn Dec.24 | +12% | €11.4bn Dec.24 | +23% YoY | |
Full Year 2024 highlights
Solid profits and returns
- Record net profit of €1.1bn, corresponding to €0.81 earnings per share, up 38% yoy
- High return of 17.5% normalized RoaTBV, on par with best in the region; 15.0% reported RoaTBV including one-offs; tangible book value per share increased to €5.78, up 13% yoy
- Net revenues at €2.8bn, up by 7% in 2024; fees grew 4x vs net interest income, rising by 16% yoy vs +4% yoy of NII, benefiting from strong growth of client balances
- Best-in-class fees over net revenue in Greece, standing at 23%, up by 2 percentage points yoy
- Pro forma CET1 ratio stood at 14.7% and total capital ratio at 19.9%, both including 35% distribution accrual; MREL ratio reached 29.2% in Dec.24; Piraeus Pillar 2 Requirement was reduced by the ECB to 2.90% from 3.00% for 2025
Best in class operating efficiency and balance sheet management
- Best-in-Europe operating efficiency, with 30% cost-to-core-income ratio and recurring operating expenses of €0.8bn, up 4% yoy. The increase was driven by performance-based staff costs and IT investment, maintaining cost discipline despite inflation
- Strong balance sheet, with best-in-class NPE ratio at 2.6% vs. 3.5% a year ago and prudent NPE coverage at 65%, up 3 percentage points yoy. Organic cost of risk hit a historic low level, standing at 46bps, down from 83bps in 2023. Excluding NPE servicing fees and synthetic securitization costs, underlying cost of risk landed at record low 21bps, down from 48bps in 2023
Outstanding loan book and client assets growth
- Performing loans at €34bn, up 12% yoy with €3.6bn growth in 2024; household lending was at breakeven in 2024, while lending to small businesses increased by c.€200mn; Piraeus RRF related loans stand at €1.3bn at year-end 2024
- Superior liquidity profile with €63bn deposits (+6% yoy) and liquidity coverage ratio at 219%
- Client assets under management (AuM) increased by 23% yoy, at €11.4bn, driven by mutual funds (+37% yoy), as well as institutional mandates and private banking inflows
Sustainable financing and digital transformation
- Our sustainable finance envelope stands at €3.8bn; €1.4bn new sustainable financings originated in 2024
- Our transformation journey continues with 217 branches already converted to our New Branch Model
- Piraeus is the 1st Greek Bank to launch an AI roadmap with €200mn investments planned for AI in the next 3 years
- Piraeus' scoring by Carbon Disclosure Project (CDP) was upgraded to A- for Climate
New Business Plan 2025 2028
2028 vision: #1 financial services group in Greece with sustained profitability and returns
Following a record performance year and having completed the transformation of the Bank, Piraeus is now well positioned for strong, consistent growth over the coming four years
Financial KPIs | 2024
| 2025
| 2026
| 2027
| 2028
| |||||
Assumption for euribor 3m (avg) | 3.6% | ~2.3% | ~2.0% | ~2.1% | ~2.1% | |||||
Net profit (€bn) | €1.1 | ~€1.1 | ~€1.1 | >€1.1 | ~€1.3 | |||||
Earnings per share (€) | €0.81 | ~€0.8 | ~€0.8 | ~€0.9 | ~€1.1 | |||||
Performing loans (€bn) | €34 | ~36 | ~39 | ~42 | ~45 | |||||
NPE ratio (%) | 2.6% | <2.5% | ~2.0% | <2.0% | <2.0% | |||||
Total capital ratio (%) | 19.7% | ~20% | >20% | ~20.5% | ~21% | |||||
Assumed distribution accrual (%) | 35% | ~50% | ~50% | ~50% | ~50% | |||||
Distribution yield (%) | 6% | ~9% | ~9% | >9% | ~11% |
Note: all figures on a reported basis, €1.2bn normalized profit excluding one-offs for 2024 and €0.95 EPS respectively; 19.9% total capital ratio proforma for held for sale NPE, NPA balances for 2024; distribution yield based on 21 Feb.25 market cap (€6.0bn)
Piraeus' Aspirations 2025-2028: Positioned for growth
Client focus: simple, accessible products and services to drive growth of customer loans and assets
- Loan growth ~8% per annum; retail loan book to grow by >€1bn in the 4-year period
- Assets under management growth ~8% per annum; new client solutions launched
Shareholder focus: sustained mid-teen returns and €2bn distributions in the 4-year period
- Sustainable reported profitability ~€1.1bn per annum until 2027, c.€1.3bn in 2028
- Best-in-class operating efficiency and cost discipline with cost-income ratio c.35% throughout the plan
Employee focus: future-ready workforce, performance-based compensation
- Rejuvenate workforce: hiring culture shift to attract young talent and enhance training initiatives to upskill workforce, with 50 training hrs per employee per year in 2028 vs 40hrs currently
Snappi: an innovation platform, with ~1.9mn customers in 2028 and ~€135mn revenues
Continued focus on Technology, Cybersecurity AI with €200mn investment in AI
Supporting communities: ongoing support to communities and social agenda (c.€55mn in the past two years)
View source version on businesswire.com: https://www.businesswire.com/news/home/20250224090651/en/
Contacts:
Group Investor Relations
4 Amerikis St., 105 64 Athens
Tel.: (+30 210 3335818
Bloomberg: TPEIR GA Reuters: BOPr.AT
ISIN: GRS014003032
investor_relations@piraeusholdings.gr
www.piraeusholdings.gr
