Piraeus Financial Holdings (TPEIR) Q3 2024 earnings summary

Executive summary

• Achieved record nine-month normalized net profit of €932 million, with Q3 2024 profit at €320 million and EPS of €0.72, up 31% year-over-year; upgraded 2024 EPS target to above €0.90 and payout ratio to 35%, with 50% set for 2025.

• Return on average tangible book value (RoaTBV) at 18% for 9M, up from 15% a year ago, with a 2024 target above 17%.

• Strong growth in net interest income and net fee income, with assets under management reaching €11 billion, up 29% year-on-year.

• Performing loan book expanded by €2 billion year-to-date to €32 billion, surpassing the FY24 target, with 10% growth expected for 2024.

• Upgraded 2024 guidance includes higher profitability, capital, and payout targets.

Financial highlights

• Net interest income for 9M24 at €1,575 million, up 7% year-over-year; net fee income at €480 million, up 19% year-over-year.

• Cost-to-core income ratio at 29% for 9M24, among the best in Europe.

• Cost of risk at 23 bps (excluding NPE servicer fees and synthetic securitization costs) for nine months; organic cost of risk at 0.5% for 9M.

• CET1 ratio at 14.7% as of September 2024, total capital ratio at 19.9%, and MREL at 29%.

• Tangible book value per share reached €5.69, up 15% annually.

Outlook and guidance

• Upgraded 2024 guidance: normalized return above 17%, EPS above €0.90, CET1 ratio to 15%, payout ratio to 35%, and NPE ratio below 3%.

• 2025 payout ratio set at 50%, with potential for share buybacks.

• NII guidance for 2025 increased to €1.85-1.9 billion, driven by higher loan volumes and lower time deposit mix.

• Performing loan book target for end-2024 updated to €33 billion.

• Expecting continued strong loan growth, especially in corporate and SME segments.