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“2024 started strongly for Piraeus, with the first quarter confirming good progress towards achieving our full year targets. In Q1 we delivered another solid set of financial results, generating €0.21 normalized earnings per share and 16.5% RoaTBV. Piraeus has achieved sustainable risk-adjusted profitability and capital accumulation, through diversified revenue sources and cost discipline, while maintaining prudent credit risk management.
Our top line exhibited resiliency, with net interest income remaining at a high level, while our strategy to boost fees continues to be market leading, as we increased net fee income over assets to 76bps in Q1. Our efforts towards operational efficiency kept our cost-to-core income at 29%, which is best-in-class in the European banking market, for yet another quarter.
The highlight of this set of results was the cost of risk, which dropped to the historically low level of 17bps, or 51bps including NPE servicer fees and synthetic securitization costs, an outcome of the successful management of NPE inflows. Our NPE ratio was maintained at 3.5% and NPE coverage at 60%.
Our performing loan portfolio grew 6% year on year, with strong pipeline ahead. Our leading position is confirmed by our disbursements utilizing EU’s RRF and “My Home” program, which combined are at c.€0.5bn. Client assets under management increased to €10bn in Q1, on the back of our extensive expertise in this field.
Q1 has been a milestone quarter, as Piraeus returned to full privatization status with the successful offering of 27% of our share capital held by the HFSF. The total size of the transaction amounted to €1.35bn, the largest bank privatization transaction in recent years in Greece, with total demand at c.€11bn, far beyond any expectation.
Finally, I am very happy to announce that 2024 is expected to be the first year after 16 years that Piraeus will pay a cash dividend to its shareholders amounting to c.€80mn for 2023 results. The relevant application for approval has been submitted to the ECB in mid-April, ahead of our AGM in June. At the same time, our quarterly capital generation has driven the CET1 ratio to 13.7%, while stepping up the accrual for 2024 planned shareholder distribution to 25%.
We continue to raise our aspirations and focus on creating value for our shareholders, ensuring Piraeus’ ongoing support to its customers and the broader Greek economy.”
Christos Megalou
Chief Executive Officer
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