Net lending growth of €1.7 billion, mainly supported by an increase in lending to large, small, medium and small businesses, a further decline in the non-performing loan ratio below 6% from 9% in 9M 2022, a return on equity close to 10 %, and adjusted earnings per share of over EUR 0.45 is expected Piraeus Bank for the current year.

The revised forecasts for 2023 were presented yesterday by Piraeus Bank management as part of an investor briefing and are based on estimates of GDP growth of 3% this year, supported by tourism, investment and stronger private consumption. as the investment level recovers during the year.

As the managing director of the group Christ Megalu2023 will be a significant year for Piraeus Bank, whose results will exceed the requirements of supervision, prepare the conditions for the payment of dividends to shareholders and evaluate financial development. The group will release its 2022 financial results on February 24, as emphasized by Mr. Megalu, earlier than any other year, and plans for 2023 include “supporting healthy businesses and households in their growth and innovation, laying claim to a leading banking role in use of the fund’s resources. Recovery fund and strengthening the digital platform, launching a new digital bank during 2023.”

The revised forecasts that the bank’s interest margin is expected to improve above 2% from 1.5% in 9M 2022 are based on a conservative forecast of 2.5% (with estimates indicating higher growth), which raises yield on the informed portfolio to 5% and, taking into account the growth in time deposit costs to 1.2% from 0.20% in 9M 2022. According to management, despite rising interest rates and pressure on household family budgets, non-performing loans will continue to decline in 2023 mainly through organic loan recovery activities.

The main areas of financial activity for 2023 are as follows:

1. A further increase in shareholder returns with a 2023 EPS estimate of over €0.45, higher than the estimate of over €0.37 in 2022 announced on November 11, 2022.

Productivity will exceed regulatory requirements, setting the stage for the distribution of dividends.

2. Regulatory capital build of around 100 basis points in 2023 driven by strong organic profitability, leading to a further increase in the CET 1 core capital ratio, which is estimated to exceed 11% for 2022.

3. Net credit expansion of approximately EUR 1.7 billion in 2023 and the same in 2024 with new business and household financing.

4. Strong operating efficiency with a cost to core income ratio below 42% and a reduction in current operating expenses of about 2% despite inflationary pressures.

5. Further consolidation of the balance sheet, bringing the NPL ratio below 6% and the provision coverage ratio above 60%.

6. Increased net interest margin above 2% as a result of higher interest rates on a strengthened balance sheet with deposit rates adjusted in line with European banking trends.

7. Maintaining net fee and commission income on assets at the level of 0.6% with an increase in the balance sheet.