First Quarter 2024

Financial Results

30 April 2024

01

02

03

04

Contents

Q1.2024 Highlights

Piraeus' Performance vs Peers

Financial Analysis

Annex

01 Q1.2024 Highlights

Piraeus returned to fully privatized status, with a milestone transaction

Q1.2024 Highlights

International allocation in the Offering

HF

Rest

UK

9%

Long

35%

FHF

40%

only

30%

61%

USA

25%

Rest: Rest of World, FHF: Fundamental Hedge Funds, HF: Hedge Funds

HFSF Offering structure

  • Fully Marketed Offering of 27% of Piraeus share capital held by the HFSF
  • Total size of transaction amounted to €1.35bn
  • Greek public & international offering split at 20% - 80%
  • Deal price at €4.00 per offer share (price range set at €3.70 - €4.00)

Deal highlights

  • Largest bank privatization transaction in recent years in Greece (in terms of proceeds & stake disposed), through a secondary placement of shares
  • Strong demand for the total offering at c.€10.7bn, with international book coverage at 9.0x

01

Greek allocation in the Offering

Shareholder structure (Mar.24)

Domestic

Institutional 35%

International

86%

6%

Institutional

65%

Retail

Institutional

8% Retail

4

Q1.2024 Highlights

01

Q1: strong start to the year, with run rate exceeding full year targets

1

€233mn reported net profit

Normalized for one-offs, Q1 profit at €279mn; €21c EPS in line with guidance of €80c for 2024

2

16.5% RoaTBV

Q1 RoaTBV at 16.5% against 2024 target of 14%

3

+10% net revenue yoy

NII at €518mn, with resilient loan margins and low deposit beta; net fees at €145mn, new record high

4

-5% total OpEx yoy

Best in class efficiency ratio at 29%; Q1 lowest quarter ever for OpEx, at €193mn

5

51bps organic cost of risk

Historic low for underlying cost of risk (excluding fees) at 17bps, as asset quality remains solid

6

+6% performing loans yoy

Q1 PE delta -€0.1bn as per expected seasonality; strong pipeline ahead; deposits up 2% yoy; LCR at 241%

7

13.7% CET1

Organic capital +80bps qoq; MREL at 26.0% against 24.9% Jan.25 target; accrual for 25% distribution

8

+33% AuM yoy

€10.0bn AuM in Mar.24, driven by mutual fund inflows, institutional mandates and private banking

Note: Q1.24 capital ratios pro forma for the RWA relief from the NPE securitizations and sales to be completed in the forthcoming period; Q1.24 MREL ratio also pro forma for the Apr.24 Senior Preferred bond issuance; reported CET1 ratio at 13.6%, total capital ratio at 18.4%; PnL items and ratios are displayed on normalized basis (definitions in the APM section of the presentation); organic capital generation quarterly delta excludes one-off items and distribution accrual; distribution is subject to necessary conditions being met and supervisory approval

5

Q1.2024 Highlights

01

Q1: delivering on our strategy and guidance, paving the way for increasing distribution

Financial KPIs

Q1.23

FY.23

Q1.24

RoaTBV (%)

13.3%

16.6%

16.5%

NII / assets (%)

2.4%

2.7%

2.7%

NFI / assets (%)

0.7%

0.7%

0.8%

Cost-to-core income (%)

36%

31%

29%

Organic cost of risk (%)

0.8%

0.8%

0.5%

NPE (%)

6.6%

3.5%

3.5%

NPE coverage (%)

56%

62%

60%

CET1 FL (%)

12.2%

post

distribution

13.3%

post

distribution

13.7%

post

distribution

accrual

10%

accrual

10%

accrual

25%

Total capital FL (%)

17.0%

post

distribution

18.2%

post

distribution

18.5%

post

distribution

accrual

10%

accrual

10%

accrual

25%

Note: Q1.24 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 13.6%, total capital ratio at 18.4%; PnL items and ratios are displayed on normalized basis (definitions in the APM section of the presentation); RoaTBV adjusted for AT1 coupon; distribution is subject to necessary conditions being met and supervisory approval

6

1 2 Normalized profit increased by 37% yoy, TBV per share up 13% yoy

Q1.2024 Highlights

01

7

Group Figures (€mn)

Q1.23

Q4.23

Q1.24

Net interest income

447

537

518

Net fee income

122

144

145

Net trading result

10

32

(4)

Other operating result

(1)

10

(23)

Operating expenses

(203)

(196)

(193)

Underlying impairment charges

(36)

(25)

(15)

Servicer fees & synthetic securitization costs

(39)

(28)

(31)

Impairment on other assets & associates' result

(21)

(47)

(6)

Tax

(75)

(100)

(111)

Normalized operating profit

204

326

279

Normalized EPS (€)

0.15

0.25

0.21

Inorganic impairments (losses on NPE sales)

(21)

(52)

(12)

HFSF offering related costs (one-off)

0

0

(43)

Operating costs (one-off)

(3)

(64)

(10)

Tax (adjustment)

0

0

19

Reported net profit

180

211

233

Reported EPS (€)

0.13

0.16

0.18

TBV (per share)

4.66

5.08

5.27

Note: one-off items and 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'; as of Q1.24 normalized operating profit incorporates one-off items post 29% tax rate; Q1.24 other operating result and impairment on other assets incorporate charges related with the increase in lease liabilities concerning the Group's subsidiary Picar (Notes 8 and 10 of Q1 2024 Interim Financial Statements); the inorganic impairment loss of c.€12mn recognized as at Q1 24, relates with an updated estimate with regards to Solar securitization;΄Q1.24 net trading result includes a loss of €8mn relating with the repurchase of €294mn of the 2019 Tier 2 at 102%, following a tender offer in Jan.24

1 2 Best quarterly performance for net fees, operating expenses and cost of risk

Net interest income (€mn)

Net fee income (€mn)

Performing portfolio

537

518

Fee income increase,

141

140

144

145

running on attractive

reaching historic highs;

yields, with tight

Q1 key drivers funds

122

management of time

transfers, asset

deposit mix

management and cards

NII excl. NMD

447 488 531 541 539

Highlights

NMD cost

(4)

(21)

Q1.23

Q2.23

Q3.23

Q4.23

Q1.24

Note: non maturing deposit hedging cost corresponds to €10bn IRSs executed since Nov.23 and fully phased in Q1.24

Q1.23

Q2.23

Q3.23

Q4.23

Q1.24

Note: net fee income includes rental income and income from non-banking activities

Q1.2024

Operating expenses (€mn)

Operating expenses

down 5% yoy,

203

199

194

196

193

offsetting rising

Cost of risk (bps)

Cost of risk dropped to cycle-low levels, on the back of NPE

114bps

84bps84bps

01

prices; strict cost

management to

109

105

100

91

102

continue

reduction and improving trends in the new NPE flows

37

58bps 51bps

Non-HR costs

94

94

94

105

91

HR costs

Q1.23

Q2.23

Q3.23

Q4.23

Q1.24

Fees

Underlying

44

32

77

52

31

34

40

27

17

Q1.23

Q2.23

Q3.23

Q4.23

Q1.24

8

Note: operating expenses depicted on a recurring basis

Note: Q2.23 underlying cost of risk impacted by a corporate default case

3 NII up 16% yoy, underpinned by loan rates, bond portfolio and low deposit beta

Q1.2024 Highlights

01

Net interest income (€mn)

Q1.23

Q4.23

Q1.24

Performing exposures

384

488

485

Bond portfolio incl. IR hedges

93

125

132

Cash at central banks

56

114

108

Customer deposits

(33)

(76)

(78)

Debt securities issued

(29)

(42)

(49)

Non maturing deposit hedging

0

(4)

(21)

TLTRO

(32)

(54)

(35)

Other

(19)

(38)

(42)

NPE

27

23

18

Total NII

447

537

518

Note: non maturing deposit hedging cost corresponds to €10bn IRSs executed since Nov.23 and fully phased in Q1.24

NIM over assets (%)

2.77%2.71%

2.42%

Q1.23Q4.23Q1.24

Selected sensitivities

▪

±10 bps loan spread

€20mn

▪

±1 ppts time deposit over total €15mn

▪

±25 bps euribor

€25-30mn

9

3 Loan portfolio yield stable at 6.6% in Q1

Performing loans' yields

Highlights

Loan portfolio yields

Q3.22

CIB

3.70%

Mortgages

2.34%

Consumer/SB

7.43%

Total PE yield

3.86%

Q4.23

Q1.24

Δ vs Q3.22

PE Mar.24

6.71%

6.65%

+2.95%

€20.0bn

5.03%

5.09%

+2.75%

€6.2bn

8.54%

8.42%

+0.98%

€3.8bn

6.57%

6.55%

+2.69%

€30.0bn

  • Loan pass-through remains at the level of ~80%
  • Limited repricing of unsecured products

Q1.2024

01

pass-through at 78%

Euribor 3m average

0.49%

3.96%

3.92%

+3.44%

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

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Disclaimer

Piraeus Financial Holdings SA published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 07:48:10 UTC.