Corporate Presentation

December 2023

Contents

  1. Executive Summary
  2. Performance vs Peers
  3. Financial Analysis (based on 9M.23 financial data)
  1. ESG & Energy Transition
  2. Annex

comprising initiatives that promote gender

01. Executive Summary

EQUALL: Piraeus' corporate responsibility program

equality in the workplace, marketplace and society

Piraeus Bank: the leading bank in Greece

#1 in performing loans (26%) and deposits (27%) in Greece #1 in bancassurance (29%), brokerage (22%), leasing (27%) 6mn client base, ~65% of bankable population in Greece Top 33% of EU banks in customer experience (2023 data)

35% market share in e-banking; 97% of transactions via digital channels

#1 in energy transition (€2bn limits); 3rd year in FT EU Climate Leaders

01. Executive Summary

4

Profitability and operational efficiency continue to drive sustainably strong results

Financial KPIs

9M.22

9M.23

Q3.23

NII / assets (%)

1.5%

2.5%

2.7%

NFI / assets (%)

0.6%

0.7%

0.7%

Cost-to-core income (%)

48%

32%

29%

Organic cost of risk (%)

0.8%

0.9%

0.8%

NPE (%)

8.8%

5.5%

5.5%

NPE coverage (%)

49%

57%

57%

CET1 FL (%)

10.7%

12.9%

12.9%

Total capital FL (%)

15.4%

17.6%

17.6%

Note: 9M.23 capital ratios pro forma for the RWA relief from the NPE securitizations and sales to be completed in the forthcoming period; reported CET1 ratio at 12.8%, total capital at 17.4%

01. Executive Summary

5

Another robust quarter: €0.21 EPS and 17.6% RoaTBV

1 €0.21 EPS

Q3 run-rate ahead of FY.23 estimate of >€0.65, 9M.23 RoaTBV at 15.4%

2 +40% net revenue yoy NII +9% qoq, +61% yoy, with 79% loan pass-through, 12% deposit beta; net fees +12% yoy

3 -8% total OpEx yoy

Continuous improvement despite inflation; staff costs -7% yoy, G&A costs -13% yoy

4 5.5% NPE ratio

Resilient asset quality dynamics; €2.0bn NPEs with 57% NPE coverage, up c.50bps qoq

5 €0.2bn credit expansion Positive quarter, on the back of business lending; 62% loan-to-deposit ratio; LCR at 242%

6 12.9% CET1

Organic capital generation +54bps qoq; MREL at 21.8%, already at 1 Jan.24 target

7 +4% assets under mngt €8.5bn, up from €8.2bn in Q2, driven by mutual fund inflows and market dynamics

Note: PnL items and ratios are displayed on normalized basis (definitions in the APM section of the presentation)

01. Executive Summary

6

1 Q3 normalized profit +17% qoq, backed by margin improvement, further cost efficiencies and resilient credit quality

Group Figures (€mn)

Q3.22

Q2.23

Q3.23

Net interest income

331

488

531

Net fee income

125

141

140

Net trading result

12

29

(8)

Other operating result

(7)

4

(10)

Operating expenses

(212)

(199)

(194)

Organic cost of risk

(73)

(102)

(76)

Impairment on other assets

(19)

(44)

(2)

Tax

(41)

(79)

(102)

Normalized operating profit

117

238

279

Normalized EPS (€)

0.08

0.18

0.21

Inorganic impairments (losses on NPE sales)

(18)

(181)

0

Revenues (one-off)

52

0

0

Operating costs (one-off)

(20)

(2)

(2)

Tax (adjustment)

(15)

65

0

Reported net profit

116

120

277

Reported EPS (€)

0.08

0.09

0.21

TBV (per share)

4.34

4.73

4.94

Note: one-off items and organic cost of risk components are described in the APM section of the presentation; reported net profit from continuing operations attributable to shareholders; tax line presents also addition of minority interests in the illustration; impairment on other assets includes associates' income (a small impact from Sunshine closing, classified in trading, is presented in impairment losses on other assets); as of Q3.23 inorganic impairments correspond only to losses on NPE sales; normalized profits are calculated under an assumption of normalized tax rate. A projected effective corporate tax rate of 26% has been used for quarters with tax normalization, based on Piraeus business plan assumptions for 2023; Q3.23 net trading result mainly derived from market making and other primary market activity

01. Executive Summary

7

NII +9% qoq with continued margin expansion and deposit costs

2 containment

Net interest income (€mn)

Q3.22

Q2.23

Q3.23

Performing exposures

271

428

472

Bond portfolio including IR hedges

76

107

118

Cash at central banks

3

77

111

Customer deposits

(12)

(53)

(70)

Debt securities issued

(24)

(30)

(37)

Other

(8)

(23)

(37)

TLTRO

(2)

(45)

(51)

NPE

27

27

25

Total NII

331

488

531

NIM over Assets (%)

2.72%

2.57%

1.61%

Q3.22

Q2.23

Q3.23

8

01. Executive Summary

2 Continuous asset repricing drives loan portfolio yield to 6.5%

Performing loans' yields

Loan portfolio yields

Q3.22

Q2.23

Q3.23

Δ vs Q3.22

PE Sep.23

CIB

3.70%

5.96%

6.56%

+2.86%

€19.3bn

Mortgages

2.34%

4.87%

4.99%

+2.65%

€6.2bn

Consumer/SB

7.43%

8.46%

8.51%

+1.08%

€3.8bn

Total PE yield

3.86%

6.07%

6.46%

+2.60%

€29.4bn

Pass-

through

3.36%

3.78%

at 79%

Euribor 3m average

0.49%

+3.29%

  • Cap on base rate of mortgages as of May.23
  • Limited repricing of unsecured products

Note: loan pass-through refers to delta of performing loan yield over a period divided by delta of euribor 3m over the same period

01. Executive Summary

9

2 Disciplined deposit pricing supports NIM expansion

Deposit cost evolution

Deposit costs (stock)

Q3.22

Q2.23

Q3.23

Sep.23

Deposit stock

Sep.23

First demand deposits cost (%)

0.04%

0.04%

0.05%

0.05%

€44.8bn

Time deposits cost (%)

0.31%

1.48%

1.85%

1.94%

€13.9bn

Time deposits (% of total)

17%

23%

24%

24%

24%

Total deposits cost (%)

0.08%

0.36%

0.47%

0.49%

€58.7bn

beta 11%

beta

12%

beta

13%

  • Q3.23 deposit beta stood at 12%, compared to 14% expected

Euribor 3m average

0.49%

3.36%

3.78%

3.88%

Note: deposit pass-through refers to deposit cost divided by euribor 3m for a time period; first demand deposit costs = sights and savings accounts deposit costs

01. Executive Summary

10

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Disclaimer

Piraeus Financial Holdings SA published this content on 01 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 December 2023 15:38:16 UTC.