Corporate profile

Piraeus Bank’s main targets are:

a) enhancement and diversification of revenue sources and operational efficiency to generate sustainable profitability,

b) expansion of lending to support the country’s economic recovery,

c) optimization of return on capital and reward to shareholders, with a growing distribution pay-out ratio in line with European banks’ average levels.

Piraeus had a strong start to 2025, with the first quarter results confirming its good progress towards achieving or surpassing full year targets. In Q1, Piraeus delivered another solid set of financial results, generating €0.22 earnings per share and 15% RoaTBV. Piraeus achieved sustainable profitability and capital accumulation, through diversified revenue sources and cost discipline, while maintaining prudent credit risk management.


Revenue enhancement

The top line exhibited resilience supported mainly by fee generation. Net interest margin stood at 2.4%, while net fee margin reached 0.8%. Net fee income grew mainly on the back of loan disbursements, bancassurance and asset management. Piraeus revenue-diversifying efforts are clearly reflected in its fees over net revenue at 25%.


Strong portfolio

Piraeus’s loan portfolio continued the strong momentum of 2024, increasing by 16% yoy or €1.1bn in Q1, driven by business lending, while retail lending was almost at breakeven. Effectively, Piraeus increased its loans by €5bn in 5 quarters. Client assets under management increased to €12.5bn, already surpassing the full-year target of >€12.0bn, mainly driven by strong mutual fund performance.


Improved efficiency

Piraeus’s focus on operating efficiency kept its cost-to-core income ratio at 35%. Cost of risk dropped to the historic low level of 35bps, or 14bps excluding fees, an outcome of the successful management of NPE inflows. The NPE ratio remained at the low level of 2.6%, and NPE coverage stood at 64%.


Strong capital position and shareholder reward

CET1 ratio has strengthened to 14.4%, up by 70 basis points compared to a year ago, incorporating 50% distribution accrual for 2025. Furthermore, Piraeus Annual General Meeting of Shareholders in April, approved a cash dividend amounting to €373mn or €0.298 per share for 2024 results, which will be paid on 10 June 2025.

Recent developments

During Q1, Piraeus entered into a Share Purchase Agreement to acquire 90.01% stake in Ethniki Insurance, a leading insurer in Greece. The transaction is expected to further diversify the revenue sources of Piraeus, enhancing value creation for shareholders, while it will complement its product range, covering the whole spectrum of banking, protection and investment solutions. The transaction is subject to the approvals of the competent regulatory bodies.