Piraeus Bank sees higher profitability to 1.0 billion euros from 0.9 billion euros and net interest income at 2.0 billion euros from 1.9 billion euros. It also foresees a 25%-30% distribution accrual over net profit.
More specifically, following the publication of its financial results for the first quarter 2024 on 30 April 2024, and after assessment of related trends and expectations, Piraeus Financial Holdings S.A. upgraded its 2024 guidance versus what was made public on 14 February 2024 as follows:
▪ enhanced profitability with normalized RoaTBV expected at 15% versus previous 14% (normalized EPS at 0.85 euros versus 0.80 euros previously) and full year reported net profit to approximate 1.0 billion euros versus previous 0.9 billion euros.
▪ higher net interest income for 2024 at 2.0 billion euros from previous 1.9 billion euros, on the back of lower deposit beta expected than budgeted arising from low migration to time deposits. Net interest margin now expected at 2.7% versus 2.6% previously.
▪ confirmation of a steady growth trajectory, with end-2024 performing loan balance increased to 31.7 billion euros from previous estimate of 31.5 billion euros.
▪ superior fee generation similar to Q1 2024, i.e. 0.8% over assets for the full year versus 0.7% previously.
▪ defended cost base with cost to core income ratio now expected at less than 33% versus less than 35% before.
▪ lower full year cost of risk over net loans at 0.7% from 0.8%. Piraeus’ business plan is now based on an assumed 3.6% average Euribor 3M trajectory for 2024 against 3.8% before, with landing ECB deposit facility rate of 3.25% at year-end vs 3.75% before. This refreshed 2024 trajectory is combined with a 25%-30% distribution accrual over net profit, to be finalized and paid out next year, subject to supervisory consent.
