Piraeus Financial Holdings: First Quarter 2025 Financial Results

Piraeus Financial Holdings (ATHEX: TPEIR) (OTCQX:BPIRY) (OTCQX: BPIRF):

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Q1.25: Strong start to the year, with loan growth and client AuMs outperforming targets

Q1 2025 highlights

Robust profits and returns

• Solid profitability of €284mn, corresponding to €0.22 earnings per share and 14.7% RoaTBV, well on track to meet or exceed the full year targets of c.€0.80 and c.14% respectively; tangible book value per share increased to €6.01, up 14% yoy
• Net revenues at €649mn, up by 10% yoy, supported by net fee income; fees grew by 10% yoy, benefiting from strong growth of client balances
• 25% fees over net revenue, up by 2 percentage points qoq
• NII dropped by 7% yoy, reflecting the reduction of 135bps in 3m Euribor respectively
• €373mn cash dividend out of 2024 net profits, to be paid to Piraeus shareholders on 10 Jun.25

Discipline in operating efficiency and balance sheet management

• Disciplined operating efficiency, with 35% cost-to-core-income ratio, among the best across EU banks; operating expenses at €224mn, as budgeted for Q1, burdened by frontloaded tax costs and investments to IT and digital banking
• Strong balance sheet, with historic low level of cost of risk at 35bps, down from 51bps a year ago. NPE ratio at 2.6% vs. 3.5% a year ago and prudent NPE coverage at 64%, up 4 percentage points yoy. Excluding NPE servicing fees and synthetic securitization costs, underlying cost of risk landed at record low 14bps, down from 17bps in Q1.24

Outstanding loan book and client assets growth

• Performing loans at €35bn, up 16% yoy with €1.1bn growth in Q1.25, driven by business lending; Piraeus RRF related loans stand at €2.2bn at end-Q1.25
• Superior liquidity profile with €61bn deposits (+5% yoy) and liquidity coverage ratio at 201%
• Client assets under management (AuM) increased by 25% yoy, at €12.5bn, already surpassing the full-year target of >€12.0bn, driven by mutual funds (+39% yoy), as well as institutional mandates and private banking inflows

CET1 with comfortable buffers above management target

• Pro forma CET1 ratio stood at 14.4% and total capital ratio at 19.5%, absorbing the 50% distribution accrual for 2025, c.€90mn DTC amortization, robust loan growth and the Basel IV impact; MREL ratio reached 28.2% in Mar.25

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