Piraeus Bank Group, FY2018 Financial Results: Α Step Forward in Restoring Profitability
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