Corporate Presentation
March 2024
Contents
01 2023 Financial Highlights
02 Piraeus' Performance vs Peers
03 Business Plan 2024-2026
04 Financial Analysis (based on FY.23 financial data)
05 Sustainability
06 Annex
01 2023 Financial Highlights
2023 Financial Highlights
01
Piraeus Bank: the leading bank in Greece
#1 in performing loans (25%) and deposits (28%) in Greece
#1 in bancassurance (29%), brokerage (21%), leasing (29%)
6mn client base, ~65% of bankable population in Greece
€2.7bn loans in energy transition business, c.10% of performing loan portfolio
36% market share in e-banking; 98% of transactions via digital channels
Among the top 33% EU banks in customer experience
4 | Note: all data refer to Dec.23 based on publicly available information (Bank of Greece, Athens Stock Exchange, Hellenic Bank Association, Association of Greek Leasing Companies) and Piraeus internal analysis; customer experience refers to |
TRI*M index as calculated from Kantar for 2023 |
2023 Financial Highlights
01
Quality growth and operating efficiency continue to drive sustainably strong results
Financial KPIs
FY.22 | FY.23 | Q4.23 | ||||
RoaTBV adjusted for AT1 cpn (%) | 9.1% | 16.6% | 20.0% | |||
NII / assets (%) | 1.8% | 2.7% | 2.8% | |||
NFI / assets (%) | 0.6% | 0.7% | 0.7% | |||
Cost-to-core income (%) | 45% | 31% | 29% | |||
Organic cost of risk (%) | 0.8% | 0.8% | 0.6% | |||
NPE (%) | 6.8% | 3.5% | 3.5% | |||
NPE coverage (%) | 55% | 62% | 62% | |||
CET1 FL (%) | 11.5% | 13.3% | 13.3% | |||
Total capital FL (%) | 16.5% | 18.2% | 18.2% | |||
Note: FY.23 capital ratios pro forma for the RWA relief from the NPE securitizations and sales to be completed in the forthcoming period, as well as the capital accretion from the new issuance of Tier 2 in Jan.24; reported CET1 ratio at 13.2%, total capital ratio at 17.8%; PnL items and ratios are displayed on normalized basis (definitions in the APM section of the presentation)
5
Record 2023 performance: €1.0bn normalized net profit, €0.80 EPS, 16.6% RoaTBV
2023 Financial Highlights
01
1 | €0.80 EPS, 16.6% RoaTBV | FY.23 EPS well above guidance of >€0.65; FY.23 RoaTBV at 16.6% - exceeding target of ~14% |
2 | +37% net revenue yoy | NII +48% yoy, with solid loan pass-through and low deposit beta; net fees +14% yoy |
3 | -4% total OpEx yoy | Continuous improvement despite inflation; staff costs flat yoy, G&A costs -11% yoy |
4 | 3.5% NPE ratio | Strong asset quality dynamics with -€0.2bn net formation in Q4; NPE coverage at 62%, up c.7ppts yoy |
5 | +5% performing loans yoy | Νet credit expansion of €1.6bn in line with target; deposits up 2% yoy; LCR at 241% |
6 | 13.3% CET1 | Capital generation +170bps yoy, absorbing restructuring costs; MREL at 24.1% against 21.9% 2024 target |
7 | +34% AuM yoy | €9.3bn AuM in Dec.23 vs €6.9bn in Dec.22, driven by mutual fund inflows and market dynamics |
Note: FY.23 capital ratios pro forma for the RWA relief from the NPE securitizations and sales to be completed in the forthcoming period, as well as the capital accretion from the new issuance of Tier 2 in Jan.24; PnL items and ratios are displayed on normalized basis (definitions in the APM section of the presentation)
6
Exceeding our 2023 financial targets
Financial KPIs
2023 Financial Highlights
01
EPS normalized, adj for AT1 cpn (€)
RoaTBV normalized, adj for AT1 cpn (%)
NII / assets (%)
NFI / assets (%)
Cost-to-core income (%)
Organic cost of risk (%)
NPE (%)
NPE coverage (%)
Net credit expansion (€bn)
CET1 (%)
Total capital (%)
DFR assumption (end of period, %)
FY.23 | FY.23 | ||||||
forecast | actual | ||||||
(Aug.23) | |||||||
>€0.65 | €0.80 | ||||||
~14% | 16.6% | ||||||
~2.5% | 2.7% | ||||||
~0.7% | 0.7% | ||||||
<38% | 31% | ||||||
~1.0% | 0.8% | ||||||
<5% | 3.5% | ||||||
~60% | 62% | ||||||
~€1.6 | €1.6 | ||||||
~13.0% | post | 13.3% | post | ||||
distribution | distribution | ||||||
post | |||||||
>17.5% | post | 18.2% | |||||
distribution | distribution | ||||||
4.00% | 4.00% | ||||||
lower deposit beta higher loan passthrough
lower operating cost
lower organic cost of risk
Note: net credit expansion refers to disbursements minus repayments, FY.23 capital ratios on a pro forma basis; reported CET1 ratio at 13.2%, total capital at 17.8%; capital ratios take into account a 10% distribution accrual, which is subject to necessary conditions being met and supervisory approval; PnL items and ratios are displayed on normalized basis (definitions in the APM section of the presentation);
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2023 Financial Highlights
01
1 Superior profit on robust NII, strong NFI and normalizing OpEx & CoR
Group Figures (€mn) | Q4.22 | Q3.23 | Q4.23 | FY.23 | ||||
Net interest income | 431 | 531 | 537 | 2,003 | ||||
Net fee income | 126 | 140 | 144 | 547 | ||||
Net trading result | (4) | (8) | 32 | 63 | ||||
Other operating result | 23 | (10) | 10 | 2 | ||||
Operating expenses | (211) | (194) | (196) | (793) | ||||
Organic impairment charges | (70) | (76) | (53) | (306) | ||||
Impairment on other assets | (26) | (2) | (47) | (114) | ||||
Tax | (69) | (102) | (100) | (355) | ||||
Normalized operating profit | 199 | 279 | 326 | 1,047 | ||||
Normalized EPS (€) | 0.15 | 0.21 | 0.25 | 0.80 | ||||
Inorganic impairments (losses on NPE sales) | (33) | 0 | (52) | (253) | ||||
Revenues (one-off) | 25 | 0 | 0 | 0 | ||||
Operating costs (one-off) | (30) | (2) | (64) | (71) | ||||
Tax (adjustment) | 8 | 0 | 0 | 65 | ||||
Reported net profit | 170 | 277 | 211 | 788 | ||||
Reported EPS (€) | 0.13 | 0.21 | 0.16 | 0.59 | ||||
TBV (per share) | 4.51 | 4.94 | 5.08 | 5.08 | ||||
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 (in Q3.23, 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
8
2 NII growth supported by rate environment, bond portfolio and low deposit beta
2023 Financial Highlights
Net interest income (€mn) | Q4.22 | Q3.23 | Q4.23 | |||
Performing exposures | 333 | 472 | 488 | |||
Bond portfolio incl. IR hedges | 85 | 118 | 125 | |||
Cash at central banks | 53 | 111 | 114 | |||
Customer deposits | (20) | (70) | (76) | |||
Debt securities issued | (26) | (37) | (42) | |||
TLTRO | (1) | (51) | (54) | |||
Other | (17) | (37) | (42) | |||
NPE | 23 | 25 | 23 | |||
NIM over assets (%)
2.72%
2.21%
2.77%
01
Total NII | 431 | 531 | 537 |
Q4.22Q3.23Q4.23
Note: interest rate hedging costs of €4mn are included in line Other in Q4.23, which correspond to €7bn IRS executed during Q4 to hedge part of the Group's non-maturing deposits book
9
2 Asset repricing drives loan portfolio yield to 6.6% in Q4
Performing loans' yields
Financial Highlights
Loan portfolio yields | Q3.22 | |
CIB | 3.70% | |
Mortgages | 2.34% | |
Consumer/SB | 7.43% | |
Total PE yield | 3.86% | |
Q3.23 | Q4.23 | Δ vs Q3.22 | PE Dec.23 |
6.56% | 6.71% | +3.01% | €20.1bn |
4.99% | 5.03% | +2.69% | €6.2bn |
8.51% | 8.54% | +1.11% | €3.9bn |
6.46% | 6.57% | +2.71% | €30.1bn |
- Cap on base rate of mortgages as of May.23
- Limited repricing of unsecured products
2023
01
pass-through at 78%
Euribor 3m average | 0.49% | 3.78% | 3.96% | +3.47% | |||||
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 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 10:55:07 UTC.