Piraeus Bank sets out profit growth plan following drop in 2023 (updated)

Piraeus Bank SA

14/02/2024 10:24

(Adds result details from paragraph 3, CEO comment paragraph 4)
       ATHENS, Feb 14 (Reuters) - Piraeus Bank  BOPr.AT ,
Greece's third-largest lender by market value, on Wednesday
reported lower 2023 net earnings for 2023 due to one-off
spending and said it expects a jump in profit in the years to
come.
    The bank reported net earnings of 788 million euros 
($843.32 million) in 2023, after a profit of 899 million euros
in 2022.
    According to the company's updated 2024-2026 business plan
presented on Wednesday, the bank expects profit of about 900
million euros this year and 1 billion euros in 2025 and in 2026.
    "The key elements comprise net recurring profitability of
approximately 1 billion per year for 2024-26, further growth of
CET1 ratio to approximately 15% in 2026, expansion of performing
loans by at least 5% per year," said the bank's Chief Executive
Christos Megalou.
    Piraeus Bank's book of so-called non-performing exposures
(NPE) continued to shrink to a ratio of 3.5% at the end of 2023
from 5.5% in September. It sees the ratio dropping to 2.4% by
2026.
    Greek banks have been working to reduce a pile of
non-performing credit, the legacy of a decade-long financial
crisis that shrank the economy by a quarter.
    Net interest income last year rose to 2.0 billion euros from
1.35 billion euros in 2022, due to a loan book expansion and a
favorable interest rate environment.

($1 = 0.9344 euros)

 (Reporting by Lefteris Papadimas;Editing by Elaine Hardcastle)
 ((lefteris.papadimas@thomsonreuters.com; +30 210 3376477;
Reuters Messaging: lefteris.papadimas.reuters.com@reuters.net))