Management announced an upward revision of the operating program’s goals Bank of Piraeus, raising the profitability target to 500 million euros (from 100 million euros envisaged in the bank’s business plan for 2022) and earnings per share to 0.35 euros from 0.05 euros. According to the results announced yesterday, the profit in the second quarter amounted to 93 million euros, and in the first half of the year – 635 million euros. Net profit for the first semester amounted to 614 million euros. The pre-tax result on an adjusted basis was a profit of €119 million in the second quarter of 2022 and a profit of €306 million in the first half of this year. Earnings per share adjusted for non-recurring items increased to 0.21 in 1H 2022, up from €0.10 in 1H 2021. Net result for group shareholders was €92 million in 2022 quarter 2021 2022 and €614 million in the first half, and earnings per share of 0.47 in the first half of 2022.

The achievement of the new revised targets, as announced by Piraeus Group CEO Christos Megalu, is based on a forecast of an increase in revenue to 1.8 billion euros from 1.5 billion euros (supported by economic growth and higher interest rates), a reduction in costs of 800 million euros, a reduction in reserves to 400 million euros from 500 million euros earlier, while targets to reduce non-performing loans and expand a healthy portfolio are revised upwards.

In particular, as Mr. Megalu noted in the context of the analysts’ briefing on the results of the second quarter, the bank is aiming for a non-performing loan ratio (NPE) at the level of 8% at the end of the year from 9% at the end of the year. end-half -25% a year earlier – and a figure close to the European average until 2024. According to Q2 data, the NPS stock decreased to €3.4bn at the end of June 2022, while Q2 data show €250m in new NPLs with no new NPLs forecast for the full year .

At the end of June 2022, the NPP stock was reduced to 3.4 billion euros – with a loan repayment of 4.4 billion euros.

At the end of 6 months, the bank proceeded to disburse a loan in the amount of 4.4 billion euros, reaching a net credit expansion of 1.5 billion euros after repayment of the loan, of which 1.2 billion euros in the second quarter of 2022. “The goal has been achieved. 6 months ago,” Mr. Megalu said in his statements, and the credit expansion forecast has been revised up to 2 billion euros for the whole year.

The head of Piraeus was optimistic about the course of the Greek economy, raising the growth forecast to 6%, stressing that Greece is at a different stage of the economic cycle compared to other European countries. “After emerging from a 10-year financial crisis, we are in a dynamic moment to cover the investment gap, including using RRF funds,” said Mr. Megalu, assessing that, based on today’s data, any consequences of the crisis are manageable.

At 11% from 10.2% at the end of the semester, the capital adequacy ratio (full load CET1) is posted, while the overall capital adequacy ratio is 16.7% and includes, according to management, a cushion of 200 basis. points. The capital base was bolstered by three synthetic securitizations implemented by the bank, lowering the RWA by €1.1bn, while another €500m is in the program. Asked if the bank would continue to move capital, Mr Megalu said no such initiatives were foreseen, while he announced the issuance of up to €500 million in senior bonds during 2022 to cover the MREL target.