Management Statement
“Piraeus had a stellar 2024, outperforming its targets across the board. In 2024, we delivered our best results to date, generating €0.81 earnings per share, up 38% yoy, and 17.5% normalized RoaTBV, from 16.6% in the previous year. This outperformance was driven by improved results in all core income statement lines, as Piraeus achieved sustainable profitability and capital accumulation, through diversified revenue sources and cost discipline, while maintaining prudent credit risk management.
Our top line increased considerably on the back of growing business. Net interest margin stood at 2.7%, while net fee margin reached 0.8%, the best-in-class in Greece. Net interest income was higher in 2024, due to strong loan growth, while our net fee income grew mainly on the back of loan disbursements, bancassurance and asset management. Our revenue-diversifying efforts are clearly reflected in our fees over net revenue at 23%, also best-in-class domestically. Our loan portfolio increased 12% yoy or €3.6bn in 2024, to €33.7bn, double the full year growth target. Household lending came at a breakeven, while loans to small businesses and farmers increased by €200mn. Client assets under management increased to €11.4bn, driven by strong mutual fund performance.
ΗOur focus on operating efficiency kept our cost-to-core income ratio at 30% in 2024. This remains among the best in the European banking market. Our cost of risk has stabilized at low levels, 21bps, or 46bps including fees, an outcome of the successful management of NPE inflows. Our NPE ratio improved further to 2.6%, the lowest in the industry, and NPE coverage reached 65%.
We have already transformed 217 branches into our New Branch Model, and we are the first Greek bank to launch an AI roadmap, with €200mn investments planned in the next three years. For our clients this means delivering simple and accessible products and services, expanding customer loans and assets under management. Looking ahead, we are excited about the potential of our new innovation platform, the Snappi neobank.
Our CET1 ratio has strengthened to 14.7%, up by 1.4 percentage points compared to the previous year, including distribution accrual for 35% payout out of 2024 results. As a result, a proposal of €373mn cash dividend will be submitted for approval to the Annual General Meeting of shareholders on 14 April 2025.
Capitalizing on the strong 2024 performance, Piraeus Group announces today its strategic ambitions and updated financial targets for the period 2025-2028. We aim to become the number one financial services group in Greece. We are now well positioned for consistent, long-term growth. The key pillars of our strategy are profitable growth of client assets, sustained mid-teen returns and more than €2bn distributions for our shareholders by 2028. In parallel, we will continue investing in our business, our people and the communities that we serve.
We continue to raise our aspirations and focus on creating value for our shareholders, ensuring Piraeus’ ongoing support to our customers and the broader Greek economy.”
Christos Megalou
Chief Executive Officer