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ATHENS, Greece, February 24, 2025--(BUSINESS WIRE)--Piraeus Financial Holdings (ATHEX: TPEIR) (OTCQX:BPIRY) (OTCQX: BPIRF):
€1.1bn profitability and 12% loan growth in 2024 pave the way for €373mn cash dividend
| Record profitability | Best-in-class operating efficiency | |||
| 17.5% normalized return |
| 30% cost-to-core income | ||
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€0.81 earnings per share |
| 2.7% NIM +4% NII YoY | 0.8% fees over assets | |
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| Capital generation |
| Solid asset quality | ||
| 19.9% | +176bps |
| 2.6% | 0.5% |
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| Performing book expansion |
| Client assets under management | ||
| €33.7bn Dec.24 | +12% |
| €11.4bn Dec.24 | +23% YoY |
Full Year 2024 highlights
Solid profits and returns
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Record net profit of €1.1bn, corresponding to €0.81 earnings per share, up 38% yoy
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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, up 13% yoy
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Net revenues at €2.8bn, 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
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Best-in-class fees over net revenue in Greece, standing at 23%, up by 2 percentage points yoy
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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
Best in class operating efficiency and balance sheet management
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Best-in-Europe operating efficiency, with 30% cost-to-core-income ratio and recurring operating expenses of €0.8bn, up 4% yoy. The increase was driven by performance-based staff costs and IT investment, maintaining cost discipline despite inflation
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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
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Performing loans at €34bn, up 12% yoy with €3.6bn growth in 2024; household lending was at breakeven in 2024, while lending to small businesses increased by c.€200mn; Piraeus RRF related loans stand at €1.3bn at year-end 2024
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Superior liquidity profile with €63bn deposits (+6% yoy) and liquidity coverage ratio at 219%
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Client assets under management (AuM) increased by 23% yoy, at €11.4bn, driven by mutual funds (+37% yoy), as well as institutional mandates and private banking inflows