Piraeus Bank S.a. · ATHEX:TPEIR
Piraeus Bank — Piraeus Financial Holdings — 9M 2023 Earnings Presentation
76 slides from Piraeus Bank's earnings presentation, Nov 3, 2023
Slide 1: 9M.2023 Financial Results
9M.2023 Financial Results 3 November 2023
Slide 2: Contents
Contents 01. Executive Summary 02. Performance vs Peers 03. Financial Analysis 04. ESG & Energy Transition 05. Annex
Slide 3: EQUALL: Piraeus' corporate responsibility program
EQUALL: Piraeus’ corporate responsibility program comprising initiatives that promote gender equality in the workplace, marketplace and society 01. Executive Summary
Slide 4: Piraeus Bank: the leading bank in Greece
Piraeus Bank: the leading bank in Greece #1 in performing loans (26%) and deposits (27%) in Greece #1 in bancassurance (29%), brokerage (22%), leasing (27%) 6mn client base, ~65% of bankable population in Greece Top 33% of EU banks in customer experience (2023 data) 35% market share in e-banking; 97
Slide 5: Financial KPIs
Profitability and operational efficiency continue to drive sustainably strong results Financial KPIs 9M.22 9M.23 Q3.23 NII / assets (%) 1.5% 2.5% 2.7% NFI / assets (%) 0.6% 0.7% 0.7% Cost-to-core income (%) 48% 32% 29% Organic cost of risk (%) 0.8% 0.9% 0.8% NPE (%) 8.8% 5.5% 5.5% NPE coverage (%) 4
Slide 6: Another robust quarter: €0.21 EPS and 17.6% RoaTBV
Another robust quarter: €0.21 EPS and 17.6% RoaTBV 1 €0.21 EPS Q3 run-rate ahead of FY.23 estimate of >€0.65, 9M.23 RoaTBV at 15.4% 2 +40% net revenue yoy NII +9% qoq, +61% yoy, with 79% loan pass-through, 12% deposit beta; net fees +12% yoy 3 -8% total OpEx yoy Continuous improvement despite inflat
Slide 7: Q3 normalized profit +17% qoq
1 Q3 normalized profit +17% qoq, backed by margin improvement, further cost efficiencies and resilient credit quality Group Figures (€mn) Q3.22 Q2.23 Q3.23 Net interest income 331 488 531 Net fee income 125 141 140 Net trading result 12 29 (8) Other operating result (7) 4 (10) Operating expenses (21
Slide 8: NII +9% qoq with continued margin expansion
2 NII +9% qoq with continued margin expansion and deposit costs containment Net interest income (€mn) Q3.22 Q2.23 Q3.23 Performing exposures 271 428 472 Bond portfolio including IR hedges 76 107 118 Cash at central banks 3 77 111 Customer deposits (12) (53) (70) Debt securities issued (24) (30) (37)
Slide 9: Continuous asset repricing drives loan portfolio yield to 6.5%
2 Continuous asset repricing drives loan portfolio yield to 6.5% Performing loans’ yields Loan portfolio yields Q3.22 Q2.23 Q3.23 Δ vs Q3.22 PE Sep.23 CIB 3.70% 5.96% 6.56% +2.86% €19.3bn ✓ Cap on base rate of Mortgages 2.34% 4.87% 4.99% +2.65% €6.2bn mortgages as of May.23 Consumer/SB 7.43% 8.46% 8
Slide 10: Disciplined deposit pricing supports NIM expansion
2 Disciplined deposit pricing supports NIM expansion Deposit cost evolution Deposit stock Deposit costs (stock) Q3.22 Q2.23 Q3.23 Sep.23 Sep.23 First demand deposits cost (%) 0.04% 0.04% 0.05% 0.05% €44.8bn ✓ Q3.23 deposit beta Time deposits cost (%) 0.31% 1.48% 1.85% 1.94% €13.9bn stood at 12%, com
Slide 11: Net fee income grew 12% yoy
2 Net fee income grew 12% yoy, driven by customer activity and asset management focus Net fee income (€mn) Q3.22 Q2.23 Q3.23 Financing fees 33 42 36 Investment fees 22 26 25 Transactional fees 53 53 59 Rental income 18 21 20 Total NFI 125 141 140 NFI over Assets (%) 0.75% 0.72% 0.61% Q3.22 Q2.23 Q3.
Slide 12: Strong improvement in operational efficiency
3 Strong improvement in operational efficiency resulted in Q3 costs -8% yoy, despite inflationary headwinds Operating expenses (€mn) Q3.22 Q2.23 Q3.23 Staff costs 101 94 94 -7% yoy, on the back of resources optimization G&A costs 85 78 74 -13% yoy, on the back of ongoing cost hunt Depreciation 25 26
Slide 13: Q3 cost of risk dropped to 0.8%
4 Q3 cost of risk dropped to 0.8%, in line with guidance, while maintaining prudent coverage levels at 57% NPE balance evolution (€bn) Organic CoR 0.8% 0.8% 0.8% 1.1% 0.8% NPE coverage (%) 48.9% 54.5% 55.7% 56.8% 57.3% NPE 8.8% 6.8% 6.6% 5.5% 5.5% 3.3 2.6 2.4 2.0 2.0 Q3.22 Q4.22 Q1.23 Q2.23 Q3.23 NP
Slide 14: Clear path to managing down the €2.0bn remaining NPE portfolio
4 Clear path to managing down the €2.0bn remaining NPE portfolio NPEs per bucket (Sep.23) Remaining NPEs (€bn as at Sep.23) (€bn) 0 dpd 1-89dpd >90dpd NPEs Cash 2.0 coverage Denounced loans, Business 0.5 0.1 1.0 1.6 67% 0.6 approximately half to be dealt with settlements / liquidations Mortgages 0.1
Slide 15: Positive credit expansion of +€0.2bn in Q3
5 Positive credit expansion of +€0.2bn in Q3, +€0.8bn in 9M, Q4 pipeline on target Performing loan movement (€bn) Net PE movement +€1.1bn 28.3 28.6 28.3 +0.8 29.0 +0.2 +0.2 29.4 -0.2 -0.1 -0.2 Sep.22 Dec.22 Net credit Οther Mar.23 Net credit Other Jun.23 Net credit Other Sep.23 Sep.22 Dec.22 Mar.23
Slide 16: Credit expansion supported by Piraeus' strong take-up of RRF
5 Credit expansion supported by Piraeus’ strong take-up of RRF and structural funds programs Net credit expansion (€bn) +0.8 +0.8 +0.2 -0.2 Q1.23 Q2.23 Q3.23 9M.23 Total -0.2 +0.8 +0.2 +0.8 Individuals -0.1 -0.1 -0.1 -0.3 Businesses -0.1 +0.9 +0.3 +1.1 o/w Energy 0.0 0.1 0.2 0.3 o/w Trade 0.0 0.2 -0
Slide 17: Our diversified and stable deposit structure is a key strength
5 Our diversified and stable deposit structure is a key strength Customer deposit breakdown (Sep.23) Accounts Deposits Mix (%) Average size (€) First demand/ First demand/ (#) (€bn) Time Time Dec.22 Jun.23 Sep.23 13% 12% 12% 82k CIB ~10.3 CIB 87k 5% 6% 6% 1.2mn Affluent 21% 18% 18% 24k 519k Affluent
Slide 18: Superior liquidity profile
5 Superior liquidity profile, to be maintained despite upcoming TLTRO maturities Liquidity KPIs 242% 220% 227% 192% 201% LCR (%) €2.0bn mature in 2023 14.4 €3.5bn mature in 2024 TLTRO (€bn) 5.5 5.5 5.5 5.5 Sep.22 Dec.22 Mar.23 Jun.23 Sep.23 Net cash (€bn) 3.9 4.2 4.1 5.1 7.2 LDR (%) 64% 62% 62% 61%
Slide 19: Strong capital build up of +0.5% in Q3
6 Strong capital build up of +0.5% in Q3, +1.3% in 9M Capital trajectory (%) 12.2% 12.3% 12.9% 11.5% 10.4% CET1, fully loaded Sep.22 Dec.22 Mar.23 Jun.23 Sep.23 Including accrual for 10% dividend payout 17.0% 17.1% 17.6% 16.4% 15.2% Total capital, fully loaded Sep.22 Dec.22 Mar.23 Jun.23 Sep.23 Note
Slide 20: Organic profitability is consistently growing the capital base
6 Organic profitability is consistently growing the capital base CET1 ratio - 9M.23 evolution (%) +1.1% 12.9% +0.9% 12.2% +1.0% 12.3% 11.5% -0.2% -0.2% -0.1% -0.2% -0.1% -0.1% -0.1% -0.4% -0.1% -0.2% • DTC amortization • AT1 coupon • DTC amortization • other reserves • DTC amortization • other reser
Slide 21: Wealth & Asset Management: increased AuM by 4% in Q3
7 Wealth & Asset Management: increased AuM by 4% in Q3 Assets under management (€bn) 8.2 8.5 7.6 6.9 4.1 4.0 3.8 • Optimize customer journeys and digital access Private & Institutional Portfolios 3.7 • Get ahead in niche products 1.6 1.7 1.3 Piraeus Securities 1.3 2.4 2.6 2.7 Mutual Funds 2.0 Dec.22
Slide 22: Well on track to meet or exceed our 2023 financial targets
Well on track to meet or exceed our 2023 financial targets 9M.23 FY.23 Financial KPIs actual forecast EPS norm, adj for AT1 cpn (€) €0.55 >€0.65 RoaTBV norm, adj for AT1 cpn (%) 15% ~14% NII / assets (%) 2.5% ~2.5% NFI / assets (%) 0.7% ~0.7% Cost-to-core income (%) 32% <38% Organic cost of risk (%)
Slide 23: 02. Piraeus' Performance vs Peers
02. Piraeus’ Performance vs Peers
Slide 24: Piraeus Highlights
PIRAEUS HIGHLIGHTS Sustainable profitability Guidance for ~14% normalized return in 2023-2024, with potential upside Capital build-up Generation of 2.5% organic capital in 9M Ample liquidity Superior liquidity profile with LCR 242% and LDR 62% Unparalleled franchise #1 lender and depositor in Greece
Slide 25: Piraeus' net interest margin is at par with peer average
PIRAEUS’ NET INTEREST MARGIN IS AT PAR WITH PEER AVERAGE Net interest income over average assets (%) 2.8% 2.7% 2.6% 2.5% 2.5% ~2.5% 2.3% Peer 1 Peer 2 Peer 3 Peer Piraeus Piraeus Piraeus average H1.23 Q3.23 FY.23e Η1.23 * Peer average corresponds to the arithmetic average of the 3 Greek peers 02. Pi
Slide 26: Piraeus' net fees ratio is best in class
PIRAEUS’ NET FEES RATIO IS BEST IN CLASS 0.72% Net fees over 0.70% ~0.70% 0.66% average assets (%) 0.54% 0.49% 0.47% Peer 1 Peer 2 Peer 3 Peer Piraeus Piraeus Piraeus average H1.23 Q3.23 FY.23e Η1.23 * Net fees include rental and non banking income; peer average corresponds to the arithmetic average
Slide 27: Piraeus' cost containment is better than peer average
PIRAEUS’ COST CONTAINMENT IS BETTER THAN PEER AVERAGE 45% Cost to core income (%) 38% 35% 34% <38% 33% 29% Peer 1 Peer 2 Peer 3 Peer Piraeus Piraeus Piraeus average H1.23 Q3.23 FY.23e Η1.23 * Recurring operating costs, divided by sum of net interest and net fee income, including rental income; peer
Slide 28: Piraeus' NPE ratio is outperforming peer average
PIRAEUS’ NPE RATIO IS OUTPERFORMING PEER AVERAGE, HEADING TO BEST-IN-CLASS AT YEAR END 2023 NPE ratio (%) | Greece 8.0% 6.4% 5.9% 5.3% 5.5% 5.5% <5.0% Peer 1 Peer 2 Peer 3 Peer Piraeus Piraeus Piraeus average H1.23 Q3.23 FY.23e Η1.23 02. Piraeus’ Performance vs Peers 28
Slide 29: Piraeus' regulatory capital has reached clearly adequate levels
PIRAEUS’ REGULATORY CAPITAL HAS REACHED CLEARLY ADEQUATE LEVELS 19.0% 18.0% 18.4% 18.5% Capital ratio (%) 17.1% 17.6% FL Regulatory Capital % 17.3% 16.3% 15.7% FL CET1% 13.6% 12.9% 12.3% Peer 1 Peer 2 Peer 3 Peer Piraeus Piraeus average H1.23 Q3.23 Q1.23 * Proforma based on banks’ disclosure; peer a
Slide 30: Strong operating results are growing even larger capital buffers
AND STRONG OPERATING RESULTS ARE GROWING EVEN LARGER CAPITAL BUFFERS Piraeus total capital >19.0% >17.5% >18.5% ratio evolution (%) 17.6% 16.4% FL Total Capital % 13.4% ~13.0% ~13.5% ~14.0% 11.5% 12.9% FL CET1% 8.6% 2021 2022 Q3.23 2023 2024 2025 actual actual actual estimate business business plan
Slide 31: Piraeus' stock trades below its Greek peer average
PIRAEUS’ STOCK TRADES BELOW ITS GREEK PEER AVERAGE DESPITE SIMILAR EARNINGS EXPECTATIONS P/E multiple for expected earnings as per public guidance (times) 5.5x 5.0x 5.1x 4.8x 4.3x Peer 1 Peer 2 Peer 3 Piraeus Peer average (excl. Piraeus) * Closing prices 27 October 2023 divided by 2023 guided expect
Slide 32: Piraeus' stock also trades below its EU bank comps
PIRAEUS’ STOCK ALSO TRADES BELOW ITS EU BANK COMPS WITH SIMILAR EARNINGS EXPECTATIONS P/TBV multiple for selected EU banking comps with 14% RoTBV expected for 2024 (times) 0.91x 0.58x Piraeus Avg 2023e P/TBV P/TBV 27 Oct.23 for selected EU banks * Closing prices 27 October 2023. Sample of 44 EU comp
Slide 33: 03. Financial Analysis
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Slide 34: Solid trends in all core operating lines
Solid trends in all core operating lines Net interest income (€mn) Net fee income (€mn) 141 140 Top line excl 25 Fee income stable, 27 23 27 NPE accruals on close to historical NPE 125 126 strong growth income 27 highs; Q3 key 122 trend, with 461 506 drivers customer 407 420 effective NII excl. 303
Slide 35: Assets & liabilities overview as at September 2023
Assets & liabilities overview as at September 2023 amounts in €bn Asset Funding Mix Mix Total 79.3 79.3 Total 5.5 ECB Cash 12.7 3.2 Interbank 2.3 Debt securities ✓ Customer loans comprise 46% of assets Fixed income 13.3 Interbank ✓ Fixed income portfolio comprises 17% of assets. Fixed income 0.7 loa
Slide 36: Solid balance sheet, strong liquidity and capital structure normalization
Solid balance sheet, strong liquidity and capital structure normalization Group Figures (€bn) Sep.22 Jun.23 Sep.23 Cash & due from banks 19.1 11.3 13.4 Net loans to clients 36.0 35.8 36.1 - Net PE book 34.1 34.8 35.1 - Net NPE book 1.9 1.0 1.0 Material NPE cleanup effort drove net NPE over total net
Slide 37: Performing loan portfolio evolution
Performing loan portfolio evolution Q3.23 performing loan movement (€bn) Jun.23 Disbursements Repayments Other Sep.23 Individuals 7.9 +0.1 -0.2 +0.1 7.8 Business 21.1 +1.9 -1.6 +0.1 21.5 Performing loans 29.0 +2.0 -1.8 +0.2 29.4 Yield (quarterly) 6.07% 6.46% Q3.23 disbursements (€bn) Q3.23 CIB disbu
Slide 38: Growing loan yields for performing exposures at 6.5%
Growing loan yields for performing exposures at 6.5% Loan interest income decomposition Group Interest income (€mn) Yields (%) Average balances (€bn) Q3.22 Q4.22 Q1.23 Q2.23 Q3.23 Q3.22 Q4.22 Q1.23 Q2.23 Q3.23 Q3.22 Q4.22 Q1.23 Q2.23 Q3.23 Customer loans 298 356 411 454 497 3.06% 3.60% 4.34% 4.79% 5
Slide 39: Loan portfolio diversification
Loan portfolio diversification Domestic PE composition (Sep.23, %) Loan concentration stats (Sep.23) Mortgages 21.7% Retail 27.4% ✓ Concentration of the performing loan book to top Consumer 5.7% 20 exposures stands at c.13% Manufacturing 12.1% Wholesale & retail trade 10.8% Mortgage book stats (Sep.
Slide 40: Deposits increase in Q3, driven by retail accounts
Deposits increase in Q3, driven by retail accounts Customer deposit movement (€bn) Deposit movement by segment (€bn) 58.4 +0.3 58.7 +0.7 +1.6 +1.2 55.4 +1.2 -0.6 -1.2 FY.22 Q1.23 Q2.23 Q3.23 Sep.23 delta delta delta delta balance Mass | Farmers +1.9 -0.5 +0.2 +0.3 21.2 Affluent | Private -0.2 -0.2 +
Slide 41: Fee growth on sustainably higher trajectory
Fee growth on sustainably higher trajectory Net fee income (€mn) Q3.22 Q2.23 Q3.23 yoy Loans 20 31 22 10% Financing Letters of Guarantee 10 11 12 22% ✓ Net fee income in Q3.23 increased by 12% on an annual basis Investment Banking 4 0 2 -39% Bancassurance 12 12 11 -1% ✓ Fees stemming mainly from: In
Slide 42: Q3 operating costs at -8% yoy
Q3 operating costs at -8% yoy, on cost hunt initiatives, tight management of inflationary pressures and lower energy costs Operating costs (€mn) Q3.22 Q2.23 Q3.23 yoy Staff costs 121 97 80 -34% recurring 101 94 94 -7% ✓ Recurring staff costs decreased -7% in Q3.23, compared to the G&A costs 85 78 89
Slide 43: Capital position metrics
Capital position metrics Capital ratios | Sep.23 €bn | % Reported Pro forma CET-1 capital 4.1 4.1 Tier 1 capital 4.7 4.7 ✓ Total capital ratio exceeding 2023 Total capital 5.6 5.6 supervisory guidance of 16.29% RWAs 32.2 31.9 CET-1 ratio 12.8% 12.9% Tier 1 ratio 14.6% 14.8% Total ratio 17.4% 17.6% R
Slide 44: MREL requirements and position
MREL requirements and position Interim MREL guidance (2024) MREL position (30 Sep.23) 21.8% 21.8% 3.5% combined Senior bonds 4.4% buffers & other senior ✓ Already meeting 1 Jan.24 MREL interim target, at 21.8% of liabilities TREA (total risk exposure amount), including combined buffers, currently at
Slide 45: Radical NPE reduction, with steadily improving coverage
Radical NPE reduction, with steadily improving coverage Group NPE evolution (€bn) NPE coverage (%) 47.3% 44.0% 40.3% 54.5% 57.3% NPE (%) 53.7% 45.3% 12.7% 6.8% 5.5% NPE (€bn) 35.8 22.5 (0.8) (16.8) 4.9 2.6 2.0 (0.9) (1.3) (0.0) (0.6) Dec.16 Dec.20 Organic Inorganic Dec.21 Organic Inorganic Dec.22 Or
Slide 46: NPE movement outlines strong NPE clean-up effort
NPE movement outlines strong NPE clean-up effort Group NPE movement (€mn) Q3.22 Q4.22 Q1.23 Q2.23 Q3.23 NPEs | beginning of period 3,426 3,331 2,624 2,442 2,049 Redefaults 32 39 34 23 19 Defaults 67 76 58 193 61 Total inflows 99 115 93 216 80 o/w business 27 47 22 152 17 o/w mortgages 51 48 52 47 44
Slide 47: €2.0bn NPE stock, fully covered by collateral and provisions
€2.0bn NPE stock, fully covered by collateral and provisions Group NPE decomposition & coverage (€bn | %) Forborne NPEs (Sep.23) 105% 2.0 2.0 2.0 2.0 FNPE (€bn) 0.7 UTP 1.1 Collateral 0dpd 0.5 0.9 FNPE 1-90dpd 0.1 NPL NPE 1.3 Provisions >90dpd 0.3 1.0 1.1 Total 0.9 Sep.23 NPE Coverage Sep.23 NPE Not
Slide 48: Group NPE & NPE coverage ratio
Group NPE & NPE coverage ratio NPE ratio per product category NPE coverage ratio per product Jun.23 Sep.23 Jun.23 Sep.23 89% 87% 57% 57% 60% 61% 7.5% 7.9% 5.5% 5.5% 5.8% 5.6% 3.9% 4.3% 19% 18% Total Business Mortgages Consumer Total Business Mortgages Consumer NPE mix Loan loss reserves NPEs (€bn) S
Slide 49: Retail Banking: enhanced profitability through yields
Retail Banking: enhanced profitability through yields Performing loans (€bn) Net fee income (€mn) €mn 9M.22 9M.23 Total net revenues 484 876 o/w net fee income 171 183 Total operating costs (317) (315) 10.3 10.2 10.0 10.1 10.0 Pre provision income 167 561 1.9 2.1 2.0 2.2 SB 2.2 183 Impairments (23)
Slide 50: Corporate & Investment Banking: solid profitability
Corporate & Investment Banking: solid profitability driven by increased volumes and yields Performing loans (€bn) Net fee income (€mn) €mn 9M.22 9M.23 Total net revenues 438 598 o/w net fee income 123 139 18.9 19.3 Total operating costs (130) (140) 18.5 18.4 1.4 Leasing / factoring 1.4 1.4 1.4 15.6
Slide 51: Treasury & Financial Markets: consistent execution of strategy
Treasury & Financial Markets: consistent execution of strategy in fixed income markets Fixed income securities per issuer (€bn) Fixed income securities per category (€bn) €mn 9M.22 9M.23 Total net revenues 236 304 13.5 13.3 13.5 13.3 12.8 1.0 12.8 12.2 1.2 Other 11.9 12.2 1.3 1.1 Trading €0.3bn GGB
Slide 52: 04. ESG & Energy Transition
04. ESG & Energy Transition
Slide 53: Key ESG priorities & projects
Key ESG priorities & projects Environment Society Governance o Energy Transition Plan o EQUALL initiatives for social inclusion o ESG management committee o SBTi targets annual monitoring (CDP) ▪ Women o ESG double materiality assessment & stakeholder engagement o Key regulatory commitments (Pillar
Slide 54: Piraeus' ESG blueprint
Piraeus’ ESG blueprint #NRG Transition Targets Piraeus agenda ESG Reporting Piraeus agenda Bank & portfolio net zero target by 2050 Double materiality assessment Intermediary targets (2030) -73% Scope 1 & 2 3rd party verification of reporting Science Based targets validation Sustainability reporting
Slide 55: Our positioning in energy transition
Our positioning in energy transition #1 bank in First-movers Dedicated teams, Greece in ESG in energy initiatives, transition capabilities financing ▪ First and only Greek bank with SBTi- ▪ €2.0bn sustainable financing limits, the ▪ Launched in Q1.23 dedicated “Green validated targets (Feb.23) large
Slide 56: EQUALL programme
EQUALL programme Piraeus Bank’s goal is to grow the EQUALL programme through specific training, upskilling and reskilling initiatives and collaborations that are being developed around 3 strategic pillars: Gender Equality, New Generation and Vulnerable Social Groups Beneficiaries goal Gender Equalit
Slide 57: Energy transition: transforming a strategic direction into a concrete business opportunity
Energy transition: transforming a strategic direction into a concrete business opportunity Energy transition direction The business opportunity Long-term ▪ All industries are moving to “Net-Zero” GHG emissions: ~80 ▪ Piraeus to position as Leading Bank to “Net-Zero” targets mtCO2 to be abated by 205
Slide 58: How we plan our energy transition business
How we plan our energy transition business Concrete action plan Sectorial approach “Systemic” role in partnership Three areas to capture leading share in energy Structured approach leveraging on We win as Greece wins transition: Group’s deep understanding of the specific needs of each sector Deploy
Slide 59: SBTi annual target transitioning path
SBTi annual target transitioning path GHG emissions Scope 1 & GHG emissions Scope 1 GHG emissions Actual GHG Actual GHG Operations Scope 2 (tCO2eq) & Scope 2 (tCO2eq) reduction (%) emissions intensity emissions reduction Progress (base year 2019) (target year 2030) (2022) (2022) • Direct and indirec
Slide 60: Piraeus' carbon footprint progress
Piraeus’ carbon footprint progress Continuous reduction of Scope 1&2 GHG emissions Scope 1-2-3 Scope 1-2 CO2,eq Average annual Latest annual Scope 1-2-3 CO2,eq emissions 2021 2022 Δ% in tonnes reduction reduction (in tonnes) 2015-2020 -12% -48% Scope 1 2,840 2,083 -27% 2016-2021 -15% -55% Scope 2 [G
Slide 61: 05. Annex
05. Annex
Slide 62: Greece's economic prospects remaining robust
Greece’s economic prospects remaining robust… 2 2022 2023 2024 2025 actual estimate estimate estimate Real GDP 5.6% 3.4% 3.5% 3.3% ▪ Greek GDP growth >2x EU average ▪ Strong foundations for sustainable growth Unemployment 12.4% 11.7% 11.2% 11.0% ▪ Primary fiscal balance returned to surplus in 2022 I
Slide 63: …despite geopolitical tensions and inflationary pressures
…despite geopolitical tensions and inflationary pressures GDP growth remains strong (H1.23 at 2.4%) Headline inflation moderates on the back of a massive energy inflation decline 20.0 14.0 Headline Inflation (CPI) 12.0 15.0 Q2.23 Core Inflation 10.0 Sep-23 10.0 8.3% 3.9% 8.0 Q2.23 5.0 2.7% 6.0 4.0 0
Slide 64: Greek economy on expansionary path, ahead of EU peers
Greek economy on expansionary path, ahead of EU peers Economic Climate: above Euro area average Business Cycle: on the expansion path 130.0 1.3 DOWNTURN EXPANSION 120.0 1.1 0.9 Oct-23 GR 110.0 106.4 0.7 0.5 100.0 0.3 Oct-23 0.1 SP 90.0 93.3 -0.1 EZ: Eurozone IT Greece ESI DE: Germany 80.0 -0.3 GR: G
Slide 65: Credit ratings
Credit ratings Greek sovereign Piraeus Bank Piraeus Bank Piraeus Bank Credit rating Long term Outlook Senior preferred 19 September 2023 Ba1 Ba1 Positive Ba2 25 April 2023 BBB- B+ Positive B+ 19 September 2023 BB+ BB- Stable BB- 07 December 2022 BBB low B high Stable B high Moody’s rating refers to
Slide 66: Group balance sheet evolution
Group balance sheet evolution Group balance sheet (€mn) Sep.22 Jun.23 Sep.23 qoq yoy Cash & balances with central banks 18,297 10,606 12,687 20% -31% Loans & advances to banks 791 726 737 2% -7% Gross loans 37,634 36,925 37,235 1% -1% (Loans loss reserves) (1,619) (1,153) (1,161) 1% -28% Securities/
Slide 67: Group results | quarterly evolution
Group results | quarterly evolution (€mn) Q3.22 Q4.22 Q1.23 Q2.23 Q3.23 Net interest income 331 431 447 488 531 Net fee income 125 126 122 141 140 Net trading result 64 (4) 10 29 (8) Other operating result (including dividend income) (7) 23 (1) 4 (10) Total net revenues 513 576 577 662 653 Total net
Slide 68: Earnings per share calculations
Earnings per share calculations Earnings per share (€) Q1.22 Q2.22 Q3.22 Q1.23 Q2.23 Q3.23 9M.22 9M.23 Outstanding number of shares (#) 1,250,367,223 Core operating profit 62 105 112 195 205 297 279 698 AT1 coupon (mn) (13) (13) (13) (13) (13) (13) (39) (39) Core operating profit adjusted (mn) 49 92
Slide 69: Loan and deposit portfolios
Loan and deposit portfolios Gross loans evolution (€mn) Deposits evolution (€mn) Dec.21 Sep.22 Dec.22 Jun.23 Sep.23 qoq yoy Dec.21 Sep.22 Dec.22 Jun.23 Sep.23 qoq yoy Group 37,018 37,634 37,270 36,925 37,235 1% -1% Group 55,442 56,733 58,372 58,381 58,663 0% 3% Senior notes 6,236 6,109 6,074 5,952 5
Slide 70: IFRS9 stage analysis | Group
IFRS9 stage analysis | Group Gross loans (€bn) Dec.171 Dec.181 Dec.191 Dec.201 Dec.211,2 Sep.222 Dec.221,2 Sep.232 Δ yoy Stage 1 19.1 17.6 18.4 19.6 26.5 29.4 30.4 31.4 7% Stage 2 6.9 5.9 5.0 5.4 5.1 4.5 3.8 3.4 -25% Stage 3 & POCI 32.3 28.0 25.2 23.0 5.4 3.8 3.1 2.4 -35% Total 58.3 51.5 48.6 48.0 3
Slide 71: Disclaimer
Disclaimer General This presentation pertaining to Piraeus Financial Holdings S.A. (formerly known as Piraeus Bank S.A.) and its subsidiaries and affiliates (the “Group” or “We”), its business assets, strategy and operations is solely for informational purposes. References to the “Company”, “Piraeus
Slide 72: Glossary | definitions of APMs
Glossary | definitions of APMs1 1 Adjusted total assets Total assets excluding the seasonal agri loan (OPEKEPE) in December each year and assets from discontinued operations 2 Assets under management Assets under management (AuM) include MFMC assets, equity brokerage custody assets & private banking
Slide 73: Glossary | definitions of APMs
Glossary | definitions of APMs 23 Interest earning assets Total assets excluding equity and mutual fund financial assets, participations, goodwill and intangibles, fixed assets, deferred tax assets, discontinued and OPEKEPE (agri loan) The Liquidity Coverage Ratio as defined by Regulation (EU) 2015/
Slide 74: Glossary | definitions of APMs
Glossary | definitions of APMs 44 Operating costs - expenses (OpEx) Total operating expenses before provisions 45 Peer 1, 2, 3 Corresponding to the other three Greek systemic banks, namely Alpha, Eurobank and NBG Gross loans (as defined, herein) adjusted for the seasonal OPEKEPE agri-loan (as per li
Slide 75: Contact information
Contact information Theo Gnardellis Chief Financial Officer Chryss Berbati Business Planning, IR & ESG Head Xenofon Damalas IRO Amalia Missailidi Senior IR Manager | Credit Ratings Vangelis Pilios Senior IR Manager | Equity Analysts Nina Lykou IR Manager Yvonne Papageorgiou IR Manager 4 Amerikis str
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