Corporate Presentation
June 2024
Contents
01 Q1.2024 Highlights
02 Piraeus' Performance vs Peers
03 Financial Analysis (based on Q1.24 financial data)
04 Annex
01 Q1.2024 Highlights
Piraeus returned to fully privatized status, with a milestone transaction
Q1.2024 Highlights
International allocation in the Offering
HF | ||||
Rest | UK | 9% | Long | |
35% | FHF | |||
40% | only | |||
30% | ||||
61% | ||||
USA | ||||
25% |
Rest: Rest of World, FHF: Fundamental Hedge Funds, HF: Hedge Funds
HFSF Offering structure
- Fully Marketed Offering of 27% of Piraeus share capital held by the HFSF
- Total size of transaction amounted to €1.35bn
- Greek public & international offering split at 20% - 80%
- Deal price at €4.00 per offer share (price range set at €3.70 - €4.00)
Deal highlights
- Largest bank privatization transaction in recent years in Greece (in terms of proceeds & stake disposed), through a secondary placement of shares
- Strong demand for the total offering at c.€10.7bn, with international book coverage at 9.0x
01
4
Greek allocation in the Offering | Shareholder structure (Mar.24) |
Domestic | |||||
Institutional 35% | International | 86% | 6% | Institutional | |
65% | Retail | ||||
Institutional | 8% Retail | ||||
Q1.2024 Highlights
01
5
Q1: strong start to the year, with run rate exceeding full year targets
1 | €233mn reported net profit | Normalized for one-offs, Q1 profit at €279mn; €21c EPS in line with full year 2024 guidance |
2 | 16.5% RoaTBV | Q1 RoaTBV at 16.5% against 2024 target of 15% |
3 | +10% net revenue yoy | NII at €518mn, with resilient loan margins and low deposit beta; net fees at €145mn, new record high |
4 | -5% total OpEx yoy | Best in class efficiency ratio at 29%; Q1 lowest quarter ever for OpEx, at €193mn |
5 | 51bps organic cost of risk | Historic low for underlying cost of risk (excluding fees) at 17bps, as asset quality remains solid |
6 | +6% performing loans yoy | Q1 PE delta -€0.1bn as per expected seasonality; strong pipeline ahead; deposits up 2% yoy; LCR at 241% |
7 | 13.7% CET1 | Organic capital +80bps qoq; MREL at 26.0% against 24.9% Jan.25 target; accrual for 25% distribution |
8 | +33% AuM yoy | €10.0bn AuM in Mar.24, driven by mutual fund inflows, institutional mandates and private banking |
Note: Q1.24 capital ratios pro forma for the RWA relief from the NPE securitizations and sales to be completed in the forthcoming period; Q1.24 MREL ratio also pro forma for the Apr.24 Senior Preferred bond issuance; reported CET1 ratio at 13.6%, total capital ratio at 18.4%; PnL items and ratios are displayed on normalized basis (definitions in the APM section of the presentation); organic capital generation quarterly delta excludes one-off items and distribution accrual; distribution is subject to necessary conditions being met and supervisory approval
Q1.2024 Highlights
01
6
Q1: delivering on our strategy and guidance, paving the way for increasing distribution
Financial KPIs
Q1.23 | FY.23 | Q1.24 | |||||||||||
RoaTBV (%) | 13.3% | 16.6% | 16.5% | ||||||||||
NII / assets (%) | 2.4% | 2.7% | 2.7% | ||||||||||
NFI / assets (%) | 0.7% | 0.7% | 0.8% | ||||||||||
Cost-to-core income (%) | 36% | 31% | 29% | ||||||||||
Organic cost of risk (%) | 0.8% | 0.8% | 0.5% | ||||||||||
NPE (%) | 6.6% | 3.5% | 3.5% | ||||||||||
NPE coverage (%) | 56% | 62% | 60% | ||||||||||
CET1 FL (%) | |||||||||||||
12.2% | post | distribution | 13.3% | post | distribution | 13.7% | post | distribution | |||||
accrual | 10% | accrual | 10% | accrual | 25% | ||||||||
Total capital FL (%) | 17.0% | post | distribution | 18.2% | post | distribution | 18.5% | post | distribution | ||||
accrual | 10% | accrual | 10% | accrual | 25% | ||||||||
Note: Q1.24 capital ratios pro forma for the RWA relief from the NPE securitizations and sales to be completed in the forthcoming period; reported CET1 ratio at 13.6%, total capital ratio at 18.4%; PnL items and ratios are displayed on normalized basis (definitions in the APM section of the presentation); RoaTBV adjusted for AT1 coupon; distribution is subject to necessary conditions being met and supervisory approval
1 2 Normalized profit increased by 37% yoy, TBV per share up 13% yoy
Q1.2024 Highlights
01
Group Figures (€mn) | Q1.23 | Q4.23 | Q1.24 | |||
Net interest income | 447 | 537 | 518 | |||
Net fee income | 122 | 144 | 145 | |||
Net trading result | 10 | 32 | (4) | |||
Other operating result | (1) | 10 | (23) | |||
Operating expenses | (203) | (196) | (193) | |||
Underlying impairment charges | (36) | (25) | (15) | |||
Servicer fees & synthetic securitization costs | (39) | (28) | (31) | |||
Impairment on other assets & associates' result | (21) | (47) | (6) | |||
Tax | (75) | (100) | (111) | |||
Normalized operating profit | 204 | 326 | 279 | |||
Normalized EPS (€) | 0.15 | 0.25 | 0.21 | |||
Inorganic impairments (losses on NPE sales) | (21) | (52) | (12) | |||
HFSF offering related costs (one-off) | 0 | 0 | (43) | |||
Operating costs (one-off) | (3) | (64) | (10) | |||
Tax (adjustment) | 0 | 0 | 19 | |||
Reported net profit | 180 | 211 | 233 | |||
Reported EPS (€) | 0.13 | 0.16 | 0.18 | |||
TBV (per share) | 4.66 | 5.08 | 5.27 |
Note: one-off items and cost of risk components are described in the APM section of the presentation; reported net profit from continuing operations attributable to shareholders; tax line presents also addition of minority interests in the illustration; impairment on other assets includes associates'; as of Q1.24 normalized operating profit incorporates one-off items post 29% tax rate; Q1.24 other operating result and impairment on other assets incorporate charges related with the increase in lease liabilities concerning the Group's subsidiary Picar (Notes 8 and 10 of Q1 2024 Interim Financial Statements); the inorganic impairment loss of c.€12mn recognized as at Q1 24, relates with an updated estimate with regards to Solar securitization;΄Q1.24 net trading result includes a loss of €8mn relating with the repurchase of €294mn of the 2019 Tier 2 at 102%, following a tender offer in Jan.24
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1 2 Best quarterly performance for net fees, operating expenses and cost of risk
Net interest income (€mn) | Net fee income (€mn) | ||||||
Performing portfolio | 537 | 518 | Fee income increase, | 141 | 140 | 144 | 145 |
running on attractive | reaching historic highs; | ||||||
yields, with tight | Q1 key drivers funds | 122 | |||||
management of time | transfers, asset | ||||||
deposit mix | management and cards |
NII excl. NMD
447 488 531 541 539
Highlights
NMD cost
(4) | (21) | |||
Q1.23 | Q2.23 | Q3.23 | Q4.23 | Q1.24 |
Note: non maturing deposit hedging cost corresponds to €10bn IRSs executed since Nov.23 and fully phased in Q1.24
Q1.23 | Q2.23 | Q3.23 | Q4.23 | Q1.24 |
Note: net fee income includes rental income and income from non-banking activities
Q1.2024
01
Operating expenses (€mn)
Operating expenses | ||||||
down 5% yoy, | 203 | 199 | 194 | 196 | 193 | |
offsetting rising | ||||||
prices; strict cost | ||||||
management to | 109 | 105 | 100 | 91 | 102 | |
continue | ||||||
Non-HR costs | 94 | 94 | 94 | 105 | ||
91 | ||||||
HR costs | ||||||
Q1.23 | Q2.23 | Q3.23 | Q4.23 | Q1.24 |
Cost of risk (bps)
Cost of risk dropped to cycle-low levels, on the back of NPE reduction and improving trends in the new NPE flows
Fees
Underlying
114bps | ||||
84bps | 84bps | |||
37 | 58bps | 51bps | ||
44 | 32 | |||
77 | 52 | 31 | 34 | |
40 | ||||
27 | 17 | |||
Q1.23 | Q2.23 | Q3.23 | Q4.23 | Q1.24 |
Note: operating expenses depicted on a recurring basis | Note: Q2.23 underlying cost of risk impacted by a corporate default case |
8
3 NII up 16% yoy, underpinned by loan rates, bond portfolio and low deposit beta
Q1.2024 Highlights
01
9
Net interest income (€mn) | Q1.23 | Q4.23 | Q1.24 | |||
Performing exposures | 384 | 488 | 485 | |||
Bond portfolio incl. IR hedges | 93 | 125 | 132 | |||
Cash at central banks | 56 | 114 | 108 | |||
Customer deposits | (33) | (76) | (78) | |||
Debt securities issued | (29) | (42) | (49) | |||
Non maturing deposit hedging | 0 | (4) | (21) | |||
TLTRO | (32) | (54) | (35) | |||
Other | (19) | (38) | (42) | |||
NPE | 27 | 23 | 18 | |||
Total NII | 447 | 537 | 518 | |||
Note: non maturing deposit hedging cost corresponds to €10bn IRSs executed since Nov.23 and fully phased in Q1.24
NIM over assets (%)
2.77%2.71%
2.42%
Q1.23Q4.23Q1.24
Selected sensitivities
▪ | ±10 bps loan spread | €20mn |
▪ | ±1 ppts time deposit over total €15mn | |
▪ | ±25 bps euribor | €25-30mn |
3 Loan portfolio yield stable at 6.6% in Q1
Performing loans' yields
Highlights
Loan portfolio yields | Q3.22 | |
CIB | 3.70% | |
Mortgages | 2.34% | |
Consumer/SB | 7.43% | |
Total PE yield | 3.86% | |
Q4.23 | Q1.24 | Δ vs Q3.22 | PE Mar.24 |
6.71% | 6.65% | +2.95% | €20.0bn |
5.03% | 5.09% | +2.75% | €6.2bn |
8.54% | 8.42% | +0.98% | €3.8bn |
6.57% | 6.55% | +2.69% | €30.0bn |
- Loan pass-through remains at the level of ~80%
- Limited repricing of unsecured products
Q1.2024
01
pass-through at 78%
Euribor 3m average | 0.49% | 3.96% | 3.92% | +3.44% | |||||
Note: loan pass-through refers to delta of performing loan yield over a period divided by delta of euribor 3m over the same period
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Piraeus Financial Holdings SA published this content on 05 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 June 2024 17:01:02 UTC.