Piraeus Financial Holdings (TPEIR) Q4 2024 earnings summary

Executive summary

• Achieved record net profit of €1.1bn in 2024, up 38% year-over-year, with EPS at €0.81 and a proposed cash dividend of €0.30 per share, representing a 35% payout and 6% yield.

• Loan book expanded by 12% to €34bn, with retail lending returning to break-even after a decade.

• NPE ratio improved to 2.6%, with best-in-class asset quality and cost of risk at 0.2%.

• Transformation initiatives and digital investments, including €200mn in AI, underpin operational efficiency and customer experience.

• Awarded "Global Best Bank Transformation" by Euromoney and regained investment grade rating.

Financial highlights

• Net revenues reached €2.8bn, up 7% year-over-year, with fee income growing four times faster than net interest income and fees contributing 23% of revenues.

• Assets under management increased 23% to €11.4bn, mainly from mutual funds.

• Cost-to-core income ratio at 30%, among the best in Europe, with recurring operating expenses at €0.8bn, up 4% year-over-year.

• CET1 ratio pro forma at 14.7%, total capital ratio at 19.9%, and MREL at 29.2%.

• Customer deposits at a historic high of €63bn, with liquidity coverage ratio at 219%.

Outlook and guidance

• 2025–2028 plan targets net profit of ~€1.1bn annually, rising to ~€1.3bn in 2028, with EPS expected to reach €1.1.

• Performing loans projected to grow to €45bn by 2028; NPE ratio to remain below 2%.

• Distribution yield expected to increase to ~11% by 2028, with €2bn in shareholder distributions over four years.

• Cost-to-income ratio to be maintained at ~35% throughout the plan.

• Sustained 50% payout ratio assumed for 2025 and beyond, with flexibility to adjust based on capital needs and market conditions.