Corporate Presentation
December 2023
Contents
- Executive Summary
- Performance vs Peers
- Financial Analysis (based on 9M.23 financial data)
- ESG & Energy Transition
- 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.