Piraeus Bank reported net profits of 1.1 billion euros in 2024, equivalent to 0.81 euros per share, marking a 38% annual increase. Piraeus Bank also announced:
High return of 17.5% normalized RoaTBV, on par with best in the region; 15.0% reported RoaTBV including one-offs; tangible book value per share increased to 5.78 euros, up 13% yoy
– Net revenues at 2.8billion euros, up by 7% in 2024; fees grew 4x vs net interest income, rising by 16% yoy vs +4% yoy of NII, benefiting from strong growth of client balances.
– Best-in-class fees over net revenue in Greece, standing at 23%, up by 2 percentage points yoy.
– Pro forma CET1 ratio stood at 14.7% and total capital ratio at 19.9%, both including 35% distribution accrual; MREL ratio reached 29.2% in Dec.24;
Piraeus Pillar 2 Requirement was reduced by the ECB to 2.90% from 3.00% for 2025
Piraeus Bank also announced:
– Best-in-Europe operating efficiency, with 30% cost-to-core-income ratio and recurring operating expenses of 0.8bn euros, up 4% yoy. The increase was driven by performance-based staff costs and IT investment, maintaining cost discipline despite inflation.
– Strong balance sheet, with best-in-class NPE ratio at 2.6% vs. 3.5% a year ago and prudent NPE coverage at 65%, up 3 percentage points yoy. Organic cost of risk hit a historic low level, standing at 46bps, down from 83bps in 2023. Excluding NPE servicing fees and synthetic securitization costs, underlying cost of risk landed at record low 21bps, down from 48bps in 2023
Outstanding loan book and client assets growth.
– Performing loans at € 34bn, up 12% yoy with 3.6bn euros growth in 2024; household lending was at breakeven in 2024, while lending to small businesses increased by c.200mn euros; Piraeus RRF related loans stand at € 1.3bn at year-end 2024
– Superior liquidity profile with 63bn euros deposits (+6% yoy) and liquidity coverage ratio at 219%
– Client assets under management (AuM) increased by 23% yoy, at 11.4bn euros, driven by mutual funds (+37% yoy), as well as institutional mandates and private banking inflows.
Sustainable financing and digital transformation.
-Sustainable finance envelope stands at 3.8bn euros; 1.4bn euros new sustainable financings originated in 2024.
– 217 branches already converted to New Branch Model.
– Piraeus is the 1st Greek Bank to launch an AI roadmap with 200mn euros investments planned for AI in the next 3 years.
– Piraeus’ scoring by Carbon Disclosure Project (CDP) was upgraded to A- for Climate.
Chairman of the Board of Directors George Handjinicolaou stressed that 2024 has been a year of significant progress at Piraeus.
“ This is in the context of a Greek economy which is growing at almost four times the European average, helping the whole banking sector, including Piraeus, deliver strong results, despite the challenging global macroeconomic environment. As a business, our revenues and fees have increased, and our balance sheet has strengthened.
We are outperforming and delivering value to our shareholders and the wider Greek society. Greek economic growth is expected to continue a similar trajectory over the coming years. In our major industries like tourism and infrastructure, we have seen further growth, and the country is benefiting from stable environment and structural reforms, which have increased foreign investment and domestic consumption.
While macroeconomic uncertainty remains, especially with concerns around global trade, the Greek economy is resilient. Its strength can be shown by its sovereign debt regaining investment grade status in its credit rating, after 15 years. Greece continues to benefit the most among EU countries from Recovery and Resilience Facility (RRF) with a 17% RRF program allocation relative to GDP. Greece has 36billion euros funds available, € 18bn in loans, and the same amount in grants”.
