Net profit of EUR 204 million (0.15 per share) was recorded in the first quarter of the year by the company Piraeus Bank, revising its estimates and business plan for the period 2023-2025. The revision includes, subject to approval by the supervisory authorities, a provision on the payment of a dividend to shareholders in the amount of 10% of 2023 profits with the prospect of increasing this percentage to 15% in 2025 and to 25% in the coming years. As the Managing Director of Piraeus Bank emphasized Christ Megalu, in an analyst briefing, “the group achieved solid profitability, a strong return on equity of 13%, strengthened its capital, along with a strong liquidity profile and disciplined operating cost management.” Based on management’s revised forecasts:

• Earnings per share of €0.55 in 2023 (up from €0.45 based on previous estimate) and €0.65 in 2025.

• Return on fixed capital will be 12% in the period 2023-2025. (from 10%).

• Net interest margin on assets to 2.2% in 2023 (up from 2% previously forecast) and to 2% in 2025.

• Net fee and commission income on assets will stabilize at 0.6% and increase to 0.8% in 2025.

NPE inventories fell to 2.4 billion euros at the end of March 2023 and are down 48% year on year.

• Core expenses will fall to 40% from 42% based on the previous forecast.

• The organic cost of risk will stabilize at 1.2% in 2023 and decline to 0.75% in 2024.

• The NPL ratio will decrease to 5% in 2023 (from 6% previously forecast) and 3% in 2025, while the coverage ratio will improve to 60% and 70% in 2025.

• Net credit expansion will ease slightly to €1.6bn in 2023 (from €1.7bn previously forecast) and top €2bn in 2025.

• The capital adequacy ratio will be 12.5% ​​based on management’s intention to distribute dividends for 2023 and 14.5% in 2025, for a total ratio of 17.3% and 19%, respectively.

In the first quarter, net interest income was €447 million (up 4% qoq and 56% yoy) driven mainly by favorable interest rate environment, revaluation of fixed income portfolio including TLTRO payments . Regular net fee and commission income was €122 million, down 3% on the fourth quarter of 2022 and up 15% on last year. On the spending side, organic loan provisions were flat at €75m as non-performing loan outflows (NPEs) continue to outpace new defaults. NPE holdings fell to €2.4 billion at the end of March 2023, down 48% year-over-year, as a result of both the group’s settlement plan and an organic decline.