Piraeus Financial Holdings (TPEIR) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 reached EUR 284 million, up 22% year-over-year, with EPS at EUR 0.22 and RoaTBV at 14.7%, on track to meet or exceed full-year guidance of approximately EUR 0.80.

• Loan book expanded to EUR 35 billion, up 16% year-over-year, with EUR 1.1 billion net new loans in Q1, maintaining strong momentum across business segments.

• Assets under management rose 25% year-over-year to EUR 12.5 billion, surpassing the 2025 target, with mutual fund AUM up 39% year-over-year.

• Announced acquisition of a 90% stake in Ethniki Insurance for EUR 600 million, expected to be EPS and ROE accretive by 5% and 1 percentage point, respectively, further diversifying revenue streams.

• Distribution yield annualized at 9%, with a EUR 373 million cash dividend for 2024 (EUR 0.298 per share) to be paid in June 2025.

Financial highlights

• Net revenues for Q1 2025 were EUR 649 million, up 10% year-over-year, driven by a 10% increase in net fee income; net interest income declined 7% due to lower Euribor rates.

• Cost-to-core income ratio stood at 35%, among the best in Europe, reflecting disciplined cost management.

• RoaTBV at 14.7%, exceeding the 2025 target of approximately 14%.

• Deposits increased 5% year-over-year to EUR 61.4 billion, with LCR at 201% and NSFR at 134%.

• Cost of risk at a historic low of 35 basis points, with NPE ratio at 2.6% and NPE coverage at 64%.

Outlook and guidance

• On track to meet or exceed 2025 EPS guidance of approximately EUR 0.80, with RoaTBV target of approximately 14%.

• Upgraded 2025 net fee income target to EUR 650 million from EUR 600 million, aiming for 25% of net revenues.

• Reconfirmed 2025 net interest income guidance at EUR 1.9 billion, with NII expected to remain resilient despite further rate cuts.

• CET1 ratio expected to remain above 13% post-distribution and post-Ethniki Insurance acquisition.

• Performing loans expected to reach approximately EUR 36 billion by year-end, with NPE ratio targeted below 2.5%.