Piraeus Financial Holdings (TPEIR) H1 2024 earnings summary

Executive summary

• Achieved record normalized net profit of €333 million in Q2 and €612 million for H1 2024, with EPS at €0.47 for H1, up 41–42% year-over-year; tangible book value per share rose 15% year-over-year to €5.42.

• Returned to full privatization, paid first cash dividend in 16 years (€72–79 million), and regained investment grade rating (Baa3, positive outlook by Moody's) after 14 years.

• Became the first Greek bank to meet final MREL requirements ahead of schedule, with MREL ratio at 28.3% after €650 million Green Senior Preferred Bond issuance.

• Recognized by Euromoney for Best Bank Transformation, Best Bank in Greece, and Corporate Responsibility; launched transformation projects, rebranding, and digital innovations.

• Leading market positions in Greece: #1 in performing loans (25%), deposits (28%), bancassurance (31%), brokerage (27%), and 36% e-banking share.

Financial highlights

• Normalized EPS reached €0.26 in Q2 (up 42–44% YoY) and €0.47 in H1; full-year guidance at ~€0.85.

• Return on average tangible book value was 19% in Q2 and 18% for H1, exceeding the 15% full-year target.

• Net interest income up 8–12% YoY in H1; net fee income up 27–32% YoY, reaching record highs.

• Operating expenses fell 3% YoY at recurring level; cost-to-core income ratio at 28–29% in H1, among the best in Europe.

• NPE ratio reduced to 3.3% in H1, with coverage at 59%; cost of risk at 19–50 bps in H1.

• CET1 ratio (pro forma) at 14.2%, total capital ratio at 19%, both meeting 2024 targets.

• Assets under management rose to €10.4 billion, up 27% YoY, surpassing the annual target.

Outlook and guidance

• Upgraded 2024 return guidance to 16% RoaTBV from 15% previously, with full-year EPS target at ~€0.85.

• Expecting to exceed €1.6 billion net credit expansion target for the year; performing loan book target at €31.7bn.

• Guidance for cost of risk remains at 70 bps for the full year, with H1 running well below this level.

• Basel IV impact for 2025 now expected to be over €1 billion, lower than previous estimates.

• Further upgrades in credit ratings anticipated in the next 12–18 months.