Piraeus Bank Reports 15% Increase in Q3 Net Profit, Updates 2024 Financial Outlook

Piraeus Bank shared encouraging news on Friday, announcing a record profit of €932 million for the first nine months of 2024, which breaks down to earnings of €0.72 per share.

The bank also reported a 15% increase in net profit for the third quarter, totalling €320 million, or €0.25 per share. As a result, Piraeus has updated its target for 2024 earnings to €0.90 per share.

CEO Christos Megalou celebrated the bank’s performance, stating, “These results show that we are consistently surpassing our goals. With a 31% year-on-year increase in earnings per share and a return on tangible book value of 18%, Piraeus Bank is proving its strength in the market.”

The bank‘s success is attributed to its diverse revenue sources and careful cost management. Piraeus reported a net interest margin of 2.7% and a net fee margin of 0.8%, both indicators of its strong position in the banking sector.

Piraeus Bank’s performing loan portfolio has also seen impressive growth, rising 9% over the past year to €32 billion, exceeding its annual target of €31.5 billion. In the third quarter alone, the bank issued €2.8 billion in loans, with a substantial portion—€1.3 billion—going to small and medium-sized enterprises (SMEs) and individual customers. Additionally, client assets under management have climbed to €11 billion, driven by strong mutual fund sales.

The bank has maintained operational efficiency, achieving a cost-to-core income ratio of 29%, which is among the best in Europe. It also reported a low cost of risk and improved its non-performing exposure (NPE) ratio to 3.2%, with coverage exceeding 60%.

The bank’s capital position remains strong, with the Common Equity Tier 1 (CET1) ratio increasing to 14.7%, surpassing its end-of-year target. Following a successful bond issuance in September, the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) ratio reached 29.1%, meeting regulatory requirements well ahead of schedule.

Looking forward, Piraeus Bank is optimistic about 2024, forecasting a normalised return on tangible book value of over 17% and an earnings per share of more than €0.90. The bank aims to grow its performing loans to €33 billion and reduce the NPE ratio to below 3%. Furthermore, it plans to implement a payout ratio of 35% of profits, subject to market conditions, and is considering a 50% payout ratio for next year.

Megalou concluded, “We are focused on creating value for our shareholders while ensuring that Piraeus Bank continues to support our customers and contribute positively to the Greek economy.”