CrediaBank (CREDIA) H2 2024 earnings summary

Executive summary

• Completed legal merger with CrediaBank and Pancreta Bank, forming Greece's fifth largest bank by assets, with operational integration ongoing and full systems integration expected by end-2025.

• Achieved a major NPE cleanup, reducing NPE ratio to 2.8% at end-2024 from over 65% two years prior, supported by HAPS III securitization.

• Successfully recapitalized with €1.3 billion raised over 24 months, and a strategic investor now holding approximately 55% of share capital.

• Consolidated four banks, expanded to 86 branches, and regained market share with significant credit expansion and deposit growth.

• Turned around profitability, with recurring pre-provision income (PPI) of €43.9 million in 2024 from a €40 million loss in 2022.

Financial highlights

• Full-year recurring PPI reached €43.9 million, with Q4 PPI at €16.6 million, up 70% quarter-on-quarter.

• Net interest income rose 44% year-on-year to €106.7 million; net fee & commission income up 112% to €19.0 million.

• Net losses of €368 million due to HAPS loss and restructuring costs.

• Deposits nearly doubled year-on-year, reaching €6.1 billion, with 6.2% quarterly growth, outpacing the market.

• Assets under management rose 22% year-on-year, mutual funds up 28%.

Outlook and guidance

• Medium-term aspiration for PPI to exceed €280 million and targeting recurring RoaTBV above 20% by 2027.

• Targeting annual net credit expansion of €1 billion over the next three years.

• Full operational integration, including IT systems, targeted for completion by December 2025.

• Synergies expected to exceed €30 million over two years; restructuring and transformation costs of €85 million spread over 2025-2026.

• Focus on growth in underpenetrated markets, digital transformation, and operational efficiency.