Solid Operating Performance, Driven by Cost Efficiency and Cost of Risk Normalisation
Pre Tax Profit of €80mn for the year, reversing a period of annual losses.
Pre Provision Income of €851mn of recurring nature sets the base forward.
New Loan Disbursements of €3.1bn in FY.2018.
Net Fees in all business line segments of the Bank displayed positive growth.
Operating Cost reduction exceeded targets, down by 8% yoy in FY.2018 (recurring base).
Cost of Risk improved to 157bps in FY.2018 vs 479bps in FY.2017.
Balance Sheet Repair, Organic Trends Encouraging
Significant NPE reduction over the past year (-€5.5bn).
Default rate falling and cure rate improving.
Completion of two NPE portfolio sales of €1.8bn aggregated gross book value.
Two new NPE sales projects under way of €1.3bn gross book value.
Cash coverage of NPLs at 77%, NPE cash coverage ratio at 49% (while adding collateral total coverage increases to c.100%).
Conclusion of international divestments in line with the 2015 Restructuring Plan.
New updated NPE target for YE 2021 is set at €11bn, reflecting a decrease of €15bn vs Dec.2018 level.
Enhanced Liquidity Profile and Funding Mix, Underpins Healthy Loan Growth
Deposits in Greece up by €3.6bn yoy.
Zero ELA reliance since mid-July 2018.
Gradual shift of covered bonds to zero cost ECB funding from interbank repo utilisation.
Net loan-to-deposit ratio down to 85% vs. 103% a year ago.
On track to meet LCR target, at 61% in Dec.2018.
Progress in Executing Capital Enhancement Plan
94% of the internal capital generating actions, have been concluded.
CET-1 ratio at 14.0% in Dec.2018, pro-forma for asset disposals.
2019 SREP Pillar 2 Requirement reduced by 50bps, a testament to progress achieved.
Athens, March 29, 2019
Attachments
Original document
Permalink
Disclaimer
Piraeus Bank SA published this content on 29 March 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 29 March 2019 16:21:02 UTC
Piraeus Financial Holdings SA, formerly known as Piraeus Bank SA, is a Greece-based banking institute. It operates in the following main business segments: Retail Banking, Corporate Banking, Investment Banking, as well as Asset Management and Treasury. The Retail Banking segment includes the retail banking operations of the Bank and its subsidiaries, which are addressed to retail customers, as well as to small-medium companies, such as deposits, loans and letters of guarantee, among others. The Corporate Banking segment includes facilities related to corporate banking, provided by the Bank and its subsidiaries, addressed to maritime companies, such as syndicated loans, project financing and imports-exports, among others. The Investment Banking segment includes activities related to investment banking operations of the Bank and its subsidiaries, such as investment and advisory services, underwriting services and public listings, as well as stock exchange services, among others.
PIRAEUS FINANCIAL HOLDINGS S.A. 
