Piraeus Bank on Friday reported solid, sustainable profitability, with normalized earnings per share of 0.15 euro and RoaTBV of 13%, both outpacing estimates in the first quarter of 2023.

More specifically, the bank's CET1 ratio increased to 12.2% and total capital ratio rose to 17.0%, through 0.6% pure organic capital generation on a quarterly basis, including accrual for 10% dividend payout. NPE ratio was down to 6.6% in the January-March period, from 12.7% a year ago, while NPE coverage was up 11 percentage points yoy to 55%. Clean balance sheet and resilient asset quality are key factors behind the organic cost of risk stabilizing at 0.8%, Piraeus Bank said, adding that superior liquidity profile was re-confirmed. Group deposits stood at 57.2 billion euros, higher 4% compared with the same period last year, impacted slightly in January and February, but improving in March.

Piraeus Bank reported a good start in loan disbursements (+2.0 billion euros), offset by high repayments (-2.2 billion) in the three-month period, while net credit decreased in January and February, and eased in in March. Performing loans were up by 2.0 billion euros on a year to year basis to 28.3 billion. Client assets under management increased 9% to 7.6 billion euros, driven by targeted inflows to mutual funds.

Christos Megalou, the bank's CEO, commenting on the results said: “ 2023 started on a strong foot for Piraeus Bank, which continues to unlock the value of its franchise. In the first quarter we delivered a solid set of results, generating € 0.15 normalized earnings per share and 13% RoaTBV. The Group has achieved sustainable risk-adjusted profitability and capital build-up, while maintaining a superior liquidity profile and cost discipline. Balance sheet clean-up continues, with the NPE ratio dropping further to 6.6% and NPE coverage increasing to 55%. The organic capital generated in Q1 has driven our CET1 ratio to 12.2%, up by 0.6% in the quarter and by circa 2.4% in the past 12 months. Furthermore, we are pleased to be in the position, as of Q1, to accrue for a 10% dividend payout, to pave the way for our aspiration towards distribution to our shareholders out of 2023 profits. Our cost discipline efforts continued unabated for yet another quarter, with operating expenses contained at almost the same level vs a year ago, absorbing the inflationary pressures and enabling us to invest in elevating the client experience. The Group’s performing loan portfolio grew 8% yoy and there is a strong pipeline of business projects also for this year, including RRF sponsored plans where Piraeus has already undertaken € 1bn financing, and the newly launched program “ My Home” for which Piraeus Bank has currently received more than 40% of total applications. On the other hand, client assets under management increased 9% to € 7.6bn in Q1, driven by targeted inflows to mutual funds, leveraging our extensive expertise in this field. Overall, our reinforced commercial franchise has delivered a 15% net fee income growth in Q1 compared to a year ago. Capitalizing on our Q1 performance and the encouraging macroeconomic environment, we are upgrading our key financial targets for this year. Specifically, we now aim for return over tangible book of 12%, with cost-to-core income of below 40%. New loans are expected to increase by € 1.6bn. Finally, we are proud to be the only Greek company to be included, for the 3rd consecutive year, in the Financial Times list of “ Europe’s Climate Leaders” in 2023. Our energy transition business lines will be further expanded, and we are ready to do our part in all the work needed on this front. We will continue to deliver on our plan and we remain focused on creating value for our shareholders, clients, and employees.”