Piraeus Bank S.a. · ATHEX:TPEIR
Piraeus Bank — Piraeus Financial Holdings — Q1 2023 Earnings Presentation
83 slides from Piraeus Bank's earnings presentation, May 5, 2023
Slide 1: First Quarter 2023 Financial Results
First Quarter 2023 Financial Results 5 May 2023
Slide 2: Contents
Contents 01. Executive Summary 02. Relative Value 03. Financial Analysis 04. Transformation Program 05. ESG & Energy Transition 06. 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 loans (25%) and deposits (27%) in Greece #1 in leasing (27%), brokerage (22%), bancassurance (36%) 6mn client base, ~65% of bankable population in Greece Top 33% of EU banks in customer experience (2022 data) 35% market share in e-banking; 97% of transa
Slide 5: Continuous improvement across all operating KPIs
Continuous improvement across all operating KPIs Financial KPIs Q4.22 Q1.23 NII / Assets (%) 2.2% 2.4% NFI / Assets (%) 0.6% 0.7% Cost-to-core income (%) 38% 36% Organic cost of risk (%) 0.8% 0.8% NPE (%) 6.8% 6.6% NPE coverage (%) 54% 55% CET1 FL (%) 11.5% 12.2% Total capital FL (%) 16.4% 17.0% 01.
Slide 6: Q1 performance ahead of full year 2023 targets
Q1 performance ahead of full year 2023 targets 1 €0.15 EPS Run-rate ahead of FY.23 estimate (>€0.45); 13% RoaTBV ahead of ~10% estimate 2 +24% net revenue yoy Net interest income +56% yoy (75% loan pass-through, 9% deposit beta), net fees +15% yoy 3 36% cost-to-core income Continuous improvement des
Slide 7: Sustainable, strong performance drove normalized Q1 profit
1 Sustainable, strong performance drove normalized Q1 profit to €204mn and EPS to €0.15 Group Figures (€mn) Q1.22 Q4.22 Q1.23 Net interest income excl. NPE 246 407 420 Net interest income from NPE 40 23 27 Net fee income 106 126 122 Trading & other income (normalized) 72 20 8 Operating expenses (198
Slide 8: Burgeoning NII +56% yoy, and expanding margin
2 Burgeoning NII +56% yoy, and expanding margin Net interest income (€mn) Q1.22 Q4.22 Q1.23 Performing exposures 237 333 384 Bond portfolio 39 71 77 Customer deposits (8) (20) (33) Debt securities (23) (26) (29) Cash at central banks (15) 53 56 Other (20) (2) (3) TLTRO 36 (1) (32) NPE 40 23 27 Total
Slide 9: Rate pass-through of 75% has boosted PE yield to 5.5% in Q1
2 Rate pass-through of 75% has boosted PE yield to 5.5% in Q1 Performing loans’ yields Loan portfolio yields Q3.22 Q4.22 Q1.23 Δ vs Q3.22 PE Mar.23 CIB 3.70% 4.58% 5.41% +1.72% €18.5bn Mortgages 2.34% 3.35% 4.20% +1.86% €6.4bn Limited repricing in Consumer/SB 7.43% 7.64% 7.83% +0.40% €3.5bn unsecure
Slide 10: Tight management of cost of deposits supports NIM expansion
2 Tight management of cost of deposits supports NIM expansion Deposit cost evolution Deposit costs (stock) Q3.22 Q4.22 Q1.23 Mar.23 First demand deposits cost (%) 0.04% 0.05% 0.06% 0.07% Time deposits cost (%) 0.31% 0.54% 0.96% 1.18% Time deposits (% of total) 17% 18% 21% 21% Total deposits cost (%)
Slide 11: Net fees increased 15% yoy in Q1, from all areas of the business
2 Net fees increased 15% yoy in Q1, from all areas of the business Net fee income (€mn) Q1.22 Q4.22 Q1.23 Financing fees 30 36 32 Investment fees 22 23 23 Transactional fees 42 49 49 Rental income 12 18 17 Total NFI 106 126 122 NFI over Assets (%) 0.65% 0.65% 0.54% Q1.22 Q4.22 Q1.23 Note: net fee in
Slide 12: Cost-to-core-income at 36%, with efficiencies countering inflationary headwinds
3 Cost-to-core-income at 36%, with efficiencies countering inflationary headwinds Operating expenses (€mn) Q1.22 Q4.22 Q1.23 Including €5mn staff reward Staff costs 91 102 94 costs accrued in Q1.23 G&A costs 81 84 83 Static, despite inflationary pressures Depreciation 25 26 26 Total OpEx 198 211 203
Slide 13: Stable cost of risk at 0.8% in Q1
4 Stable cost of risk at 0.8% in Q1, substantially lower compared to full year target; negative NPE formation continues NPE balance evolution (€bn) Organic CoR 0.9% 0.8% 0.8% 0.8% 0.8% NPE coverage (%) 43.8% 45.4% 48.6% 54.1% 55.2% NPE 12.7% 9.3% 8.8% 6.8% 6.6% 4.7 3.4 3.3 2.6 2.4 Q1.22 Q2.22 Q3.22
Slide 14: Our diversified and stable deposit structure is a key strength
5 Our diversified and stable deposit structure is a key strength Customer deposit breakdown (Mar.23) Accounts Deposits Mix (%) Average size (€) First demand/ First demand/ (#) (€bn) Time Time Dec.22 Mar.23 Mass 13% 12% 90k CIB ~10.4 5% 6% 1.6mn 84k retail Affluent Afflu 21% 20% 26k 500k ~17.8 ent 10
Slide 15: Strong liquidity, accounting also for TLTRO repayments
5 Strong liquidity, accounting also for TLTRO repayments Liquidity KPIs 211% 220% 205% 201% LCR (%) 192% €2.0bn mature Dec.23 14.5 14.5 14.4 €3.5bn mature Jun.24 TLTRO (€bn) 5.5 5.5 Mar.22 Jun.22 Sep.22 Dec.22 Mar.23 LDR (%) 64% 63% 64% 62% 62% NSFR (%) 126% 129% 129% 137% 135% Note: NSFR level as a
Slide 16: Deposit and loan book impacted by early year seasonality
5 Deposit and loan book impacted by early year seasonality Performing loan movement (€bn) Q1 delta +0.6 -0.2 On track for 2023 budgeted expansion -0.6 -0.2 Jan.23 Feb.23 Mar.23 Deposit movement (€bn) Segment Delta (€bn) +0.3 Businesses -0.5 -1.2 Households +0.4 -1.3 -0.2 Farmers’ subsidies -0.5 Conv
Slide 17: Q1 pure organic capital generation of 0.6%
6 Q1 pure organic capital generation of 0.6%, including accruals for dividend payout and accelerated DTC amortization Capital trajectory (%) 12.2% 10.4% 11.5% CET1, 9.8% 9.5% fully loaded Mar.22 Jun.22 Sep.22 Dec.22 Mar.23 16.4% 17.0% • Including accrual for 10% 14.6% 14.3% 15.2% dividend payout Tot
Slide 18: Wealth & Asset Management: increased AuM by 9% in Q1
7 Wealth & Asset Management: increased AuM by 9% in Q1 Assets under management (€bn) 7.6 6.9 3.8 • Leverage private banking eligible customers Private & Institutional Portfolios 3.7 • Optimize customer journeys and digital access 1.3 • Get ahead in niche products Piraeus Securities 1.3 2.4 Mutual Fu
Slide 19: Good start for 2023 in loan disbursements
Good start for 2023 in loan disbursements, offset by increased repayments; strong pipeline for Q2 Performing loan movement (€bn) Net PE movement +€2.0bn 28.6 +2.0 28.3 26.3 -2.2 -0.1 €0.5bn prepayments from large corporates Mar.22 Dec.22 Disbursements Repayments Net curings/FX Mar.23 Mar.22 Dec.22 M
Slide 20: 2023 - 2025 targets upgraded
2023 - 2025 targets upgraded FY.22 FY.23 FY.23 FY.25 Financial KPIs actual previous revised estimate forecast forecast EPS norm, adj for AT1 cpn (€) €0.42 >€0.45 >€0.55 >€0.65 RoaTBV norm, adj for AT1 cpn (%) 10% ~10% ~12% ~12% NIM / Assets (%) 1.8% >2.0% >2.2% ~2.0% NFI / Assets (%) 0.6% ~0.6% ~0.6
Slide 21: 2023 - 2025 net interest income path under solid assumptions
2023 - 2025 net interest income path under solid assumptions (€bn) 2023 2023 2024 2025 previous forecast revised forecast estimate estimate Net interest income 1.58 1.68 1.64 1.60 Loan and cash income 1.66 1.77 1.76 1.72 Bond income 0.31 0.33 0.37 0.39 Deposit costs (0.26) (0.30) (0.33) (0.28) Debt
Slide 22: 2023 - 2025 credit expansion driven by business loan demand
2023 - 2025 credit expansion driven by business loan demand, with contribution from RRF and structural funds programs Net credit expansion (€bn) ~2.4 ~2.2 1.8 ~1.6 2022 2023 2024 2025 Disbursements +7.7 +7.6 +8.2 +8.6 Repayments -5.9 -6.0 -6.0 -6.2 Total +1.8 +1.6 +2.2 +2.4 o/w CIB +2.0 +1.7 +2.0 +2
Slide 23: Our positioning in energy transition
Our positioning in energy transition We aim to be #1 We are already We have bank in Greece first-movers dedicated teams, in ESG in energy initiatives, transition capabilities financing ▪ First and only Greek bank with SBTi- ▪ €2.1bn sustainable financing limits, the ▪ Launched in Q1.23 dedicated “Gr
Slide 24: 02. Relative Value Implies Significant Upside in Piraeus' Stock
02. Relative Value Implies Significant Upside in Piraeus’ Stock
Slide 25: Why Piraeus
WHY PIRAEUS Sustainable profitability Guidance for 12% sustainable return Capital build-up Generation of 0.6% in Q1 solely organically and accruing dividend Solid liquidity Superior liquidity profile with LCR 220% and LDR 62% Unparalleled franchise #1 lender and depositor in Greece, #1 in customer e
Slide 26: Piraeus' return on average TBV is in line with peer average
PIRAEUS’ RETURN ON AVERAGE TBV IS IN LINE WITH PEER AVERAGE ~12.0% 11.4% Stated return over average TBV (%) 9.6% 9.5% 9.9% 7.6% Peer 1 Peer 2 Peer 3 Peer Piraeus Piraeus average FY.22 FY.23e FY.22 * Stated RoaTBV: for all peers RoaTBV is per company’s FY.22 disclosure (links provided in the APMs sec
Slide 27: Piraeus' net interest margin is at par with peer average
PIRAEUS’ NET INTEREST MARGIN IS AT PAR WITH PEER AVERAGE >2.2% Net interest income 1.9% over average assets (%) 1.8% 1.8% 1.8% 1.7% Peer 1 Peer 2 Peer 3 Peer Piraeus Piraeus average FY.22 FY.23e FY.22 * Peer average corresponds to the arithmetic average of the 3 Greek peers 02. Relative value 27
Slide 28: Piraeus' net fees ratio is above peer average
PIRAEUS’ NET FEES RATIO IS ABOVE PEER AVERAGE Net fees over 0.68% ~0.65% average assets (%) 0.63% 0.52% 0.54% 0.43% Peer 1 Peer 2 Peer 3 Peer Piraeus Piraeus average FY.22 FY.23e FY.22 * Net fees include rental and non banking income; peer average corresponds to the arithmetic average of the 3 Greek
Slide 29: Piraeus' cost containment is better than peer average
PIRAEUS’ COST CONTAINMENT IS BETTER THAN PEER AVERAGE Cost to core 57% income (%) 49% 47% 44% 45% <40% Peer 1 Peer 2 Peer 3 Peer Piraeus Piraeus average FY.22 FY.23e FY.22 * Recurring operating costs, divided by sum of net interest and net fee income, including rental income; peer average correspond
Slide 30: Piraeus is growing loan book at par with peers
PIRAEUS IS GROWING LOAN BOOK AT PAR WITH PEERS Loan growth year- over-year (%) 10% 10% 10% 10% 10% High single-digit % Peer 1 Peer 2 Peer 3 Peer Piraeus Piraeus average FY.22 FY.23e FY.22 * Gross performing loan balances in Greece excluding senior tranches of NPE securitizations; peer average corres
Slide 31: Piraeus' regulatory capital is in line with peers
PIRAEUS’ REGULATORY CAPITAL IS IN LINE WITH PEERS… Capital ratio (%) 17.8% 17.1% 16.8% 16.8% 16.4% FL Regulatory Capital % 15.2% 15.7% 14.5% FL CET1% 12.5% 11.5% Peer 1 Peer 2 Peer 3 Peer Piraeus average FY.22 FY.22 * Proforma based on banks’ disclosure; peer average corresponds to the arithmetic av
Slide 32: And strong operating results are growing capital buffers
AND STRONG OPERATING RESULTS ARE GROWING CAPITAL BUFFERS, BEGINNING WITH 2022 OUTPERFORMANCE Piraeus total capital >19.0% >18.5% ratio evolution (%) >17.3% FL Total Capital % 16.4% 13.4% >13.5% >14.5% FL CET1% 11.5% >12.5% 8.6% 2021 2022 2023 2024 2025 actual actual 2023-2025 Business Plan * 2023-20
Slide 33: Piraeus' stock has 46% upside potential
PIRAEUS’ STOCK HAS 46% UPSIDE POTENTIAL BASED ON GREEK BANKS EARNINGS EXPECTATIONS P/E multiple for expected €3.12 46% earnings (times) €2.14 6.3x 5.8x 46% 5.7x 4.9x 3.9x PB share price Implied PB Peer 1 Peer 2 Peer 3 Piraeus Peer 28 Apr.23 share price at average Greek banks (excl. expected P/E Pira
Slide 34: Piraeus' stock has 67% upside potential
PIRAEUS’ STOCK HAS 67% UPSIDE POTENTIAL BASED ON EU BANKS EARNINGS EXPECTATIONS P/E multiple for expected €3.58 earnings (times) 67% 6.5x €2.14 67% 3.9x PB share price Implied PB Piraeus EU banks average 28 Apr.23 share price at EU banks expected P/E multiple * Closing price of 28 April 2023 divided
Slide 35: 03. Financial Analysis
Ww 7 i) Nos pttopobue “Or KoAnuepal ih va Bon@rooupe; . Financial Analysis —
Slide 36: Solid trends in all core operating lines
Solid trends in all core operating lines Net interest income (€mn) Net fee income (€mn) Top line excl 23 27 Growth for fee 125 126 122 122 NPE accruals 27 income 106 NPE on strong 40 39 normalizes qoq; income growth trend, 407 420 rental income NII excl. 266 303 with 246 strengthens NPE diversificat
Slide 37: Assets & liabilities overview as at March 2023
Assets & liabilities overview as at March 2023 Asset Funding amounts in €bn Mix Mix Total 74.7 74.7 Total 5.5 ECB Cash 9.6 1.4 Interbank 1.8 Debt securities ✓ Customer loans comprise 47% of assets Fixed income 12.8 ✓ Fixed income portfolio comprises 17% of assets. Fixed Interbank 1.0 income holdings
Slide 38: Balance sheet reflects NPE cleanup, strong liquidity and capital structure normalization
Balance sheet reflects NPE cleanup, strong liquidity and capital structure normalization Group Figures (€bn) Mar.22 Dec.22 Mar.23 Cash & due from banks 18.7 10.4 10.5 Net loans to clients 35.0 35.8 35.4 - Net PE book 32.1 34.5 34.2 - Net NPE book 2.9 1.3 1.2 Material NPE cleanup effort drove net NPE
Slide 39: Performing loan portfolio evolution
Performing loan portfolio evolution Q1.23 performing loan movement (€bn) Net curings/ FX Dec.22 Disbursements Repayments Mar.23 impact Individuals 8.1 +0.3 -0.5 +0.0 7.9 Business 20.5 +1.7 -1.7 -0.1 20.4 Performing loans 28.6 +2.0 -2.2 -0.1 28.3 Yield (quarterly) 4.68% 5.49% Q1.23 disbursements (€bn
Slide 40: Growing loan yields for performing exposures at 5.5%
Growing loan yields for performing exposures at 5.5% Loan interest income decomposition Group Interest income (€mn) Yields (%) Average balances (€bn) Q1.22 Q2.22 Q3.22 Q4.22 Q1.23 Q1.22 Q2.22 Q3.22 Q4.22 Q1.23 Q1.22 Q2.22 Q3.22 Q4.22 Q1.23 Customer loans 276 284 298 356 411 2.93% 3.00% 3.06% 3.60% 4
Slide 41: Loan portfolio diversification
Loan portfolio diversification Domestic PE composition (Mar.23, %) Mortgage book stats (Mar.23) Mortgages 22.8% ✓ Loan-to-value of performing mortgage portfolio stands Retail 28.5% Consumer at c.58% 5.7% Manufacturing 12.7% ✓ Fixed rate mortgage loan new originations account for c.60% of total Whole
Slide 42: Domestic deposits affected by early year seasonality and targeted conversion
Domestic deposits affected by early year seasonality and targeted conversion to asset management Customer deposit movement in Greece (€bn) Deposit movement by segment (€bn) +0.7 +1.6 58.1 56.9 55.2 +1.2 -0.6 -1.2 FY.21 FY.22 Q1.23 Mar.23 Piraeus Greece delta delta delta balance Mass | Farmers +1.8 +
Slide 43: Cost containment, while maintaining investments in upgrading customer experience
Cost containment, while maintaining investments in upgrading customer experience Operating costs running at 2% rate on a recurring basis (€mn) Q1.22 Q4.22 Q1.23 yoy ✓ Recurring staff costs increased in Q1.23, compared to the previous year, mainly affected by reinvestment in human Staff costs 91 132
Slide 44: Capital position metrics
Capital position metrics Capital ratios | Mar.23 €bn | % Reported CET-1 capital 3.8 Tier 1 capital 4.4 Total capital 5.3 RWAs 31.1 CET-1 ratio 12.2% • Completion of IFRS9 phasing Tier 1 ratio 14.1% • Total capital ratio exceeding Total ratio 17.0% supervisory guidance (16.26%) Regulatory capital req
Slide 45: MREL requirements and position
MREL requirements and position Interim MREL guidance (2023) MREL position (31 Mar.23) 19.9% 19.1% 3.0% Senior bonds ✓ Piraeus Bank has issued in Oct.21 and Nov.22 two MREL 3.5% combined & other senior eligible senior preferred bonds amounting to €500mn and buffers liabilities €350mn respectively 4.5
Slide 46: Radical NPE reduction, with steadily improving coverage
Radical NPE reduction, with steadily improving coverage Group NPE evolution (€bn) NPE coverage (%) 47.3% 44.0% 40.1% 54.1% 55.2% NPE (%) 53.7% 45.3% 12.7% 6.8% 6.6% NPE (€bn) 35.8 22.5 (0.8) (16.8) 4.9 2.6 2.4 (0.9) (1.3) (0.2) Dec.16 Dec.20 Organic Inorganic Dec.21 Organic Inorganic Dec.22 Organic
Slide 47: NPE movement outlines strong NPE clean-up effort
NPE movement outlines strong NPE clean-up effort Group NPE movement (€mn) Q1.22 Q2.22 Q3.22 Q4.22 Q1.23 NPEs | beginning of period 4,915 4,722 3,426 3,331 2,624 Redefaults 40 39 32 39 34 Defaults 75 70 67 76 58 Total inflows 116 109 99 115 93 o/w business 50 31 27 47 22 o/w mortgages 43 52 51 48 52
Slide 48: NPE reduction resulted to a €2.4bn NPE stock
NPE reduction resulted to a €2.4bn NPE stock, fully covered by collateral and provisions Group NPE decomposition & coverage (€bn | %) Forborne NPEs (Mar.23) 105% 2.4 2.4 2.4 2.4 FNPE (€bn) 0.7 UTP Collateral 1.4 1.0 FNPE 0dpd 0.5 1-90dpd 0.1 1.7 NPL Provisions NPE 1.4 >90dpd 0.4 1.2 Total 1.0 Mar.23
Slide 49: Remaining NPE book is simple, and will be deterministically managed
Remaining NPE book is simple, and will be deterministically managed NPEs per bucket (Mar.23) Remaining NPEs (€bn as at Mar.23) (€bn) 0 dpd 1-89dpd >90dpd NPEs Cash coverage 2.4 Business 0.5 0.1 1.2 1.7 0.9 Denounced loans 64% Mortgages 0.1 0.0 0.3 0.4 Consumer 0.0 0.0 0.2 0.3 0.9 Non denounced > 1dp
Slide 50: Group NPE & NPE coverage ratio
Group NPE & NPE coverage ratio NPE ratio per product category NPE coverage ratio per product Dec.22 Mar.23 Dec.22 Mar.23 80% 78% 14% 14% 54% 55% 57% 59% 7% 7% 7% 6% 6% 6% 22% 22% Total Business Mortgages Consumer Total Business Mortgages Consumer NPE mix Loan loss reserves NPEs (€bn) Mar.23 Mix LLRs
Slide 51: Retail Banking: enhanced profitability through yields and derisking
Retail Banking: enhanced profitability through yields and derisking Performing loans (€bn) Net fee income (€mn) €mn Q1.22 Q1.23 Total net revenues 158 262 o/w net fee income 55 57 Total operating costs (103) (102) 10.3 10.2 10.4 10.3 10.2 10.0 Pre provision income 55 160 1.9 1.9 2.0 2.0 2.1 2.0 SB 5
Slide 52: Corporate & Investment Banking: €1.7bn new loan generation in Q1.23
Corporate & Investment Banking: €1.7bn new loan generation in Q1.23, offset by high repayments Performing loans (€bn) Net fee income (€mn) €mn Q1.22 Q1.23 Total net revenues 151 189 18.0 18.5 18.4 1.4 1.4 Leasing / factoring o/w net fee income 38 42 17.1 1.3 15.6 16.0 1.3 1.2 Total operating costs (
Slide 53: Treasury & Financial Markets: consistent execution of strategy in fixed income markets
Treasury & Financial Markets: consistent execution of strategy in fixed income markets Fixed income securities per issuer (€bn) Fixed income securities per category (€bn) €mn Q1.22 Q1.23 12.8 12.8 Total net revenues 331 92 12.0 11.9 12.2 1.0 Other 12.0 12.2 0.8 Trading €0.1bn GGB 11.5 11.5 11.9 0.6
Slide 54: Piraeus business developments
Piraeus business developments €1.0bn of RRF financing currently managed by Piraeus; first bank to receive 4th tranche €0.4bn inflows in new mutual fund, with predetermined lifetime & regular distributions >40% share on applications for “My Home”, youth housing loan plan, co-sponsored by the Greek St
Slide 55: 04. Transformation Program
04. Transformation Program
Slide 56: Transformation program designed to boost both effectiveness and efficiency
Transformation program designed to boost both effectiveness and efficiency, further enhanced by new thematics 1 Upgrade 2 Enrich 3 Enhance 4 Simplify & 5 Engine 2 6 Integrate customer offering commercial digitize for Growth ESG experience with novel capabilities via operating Exploring new into our
Slide 57: 2-year transformation journey has delivered tangible results
2-year transformation journey has delivered tangible results across our operational aspirations as evidenced by key value drivers 2020 2021 2022 Δ Strategic Directions Overarching Key Value Drivers (starting point) (Year 1) (Year 2) (2020-2022) Cost-to-core-income 52% 48% 45% -7 ppts Leaner Employee
Slide 58: Indicative achievements in 2022 and short-term priorities (1/2)
Indicative “on-the-field” achievements in 2022 and short-term priorities (1/2) TRANSFORMATION ACHIEVEMENTS 2022 2023 PRIORITIES Special focus PRIORITIES areas • 75 new digital features (Digital Onboarding, • Continuous reinforcement and upgrading of Digital Upgrade customer Appointment Booking Platf
Slide 59: Indicative achievements in 2022 and short-term priorities (2/2)
Indicative “on-the-field” achievements in 2022 and short-term priorities (2/2) TRANSFORMATION ACHIEVEMENTS 2022 2023 PRIORITIES Special focus PRIORITIES areas • Improvements and automation in the approval • Further enchasing digitization in the areas of SME Simplify & digitize and disbursement proce
Slide 60: Snappi is the new digital bank by Piraeus and Natech
Snappi is the new digital bank by Piraeus and Natech … while preparing for Delivering the Bank… Envisaged timeline post-launch Licensing Flagship merchant H2.23 Unique product offering partnerships Digital onboarding, Banking-as- • Obtain full banking license a-Service (BaaS), BNPL, Consumer financi
Slide 61: 05. ESG & Energy Transition
CLIMATE LEADERS 2023 WE ARE HONORED TO BE INCLUDED ON THE FINANCIAL TIMES AND STATISTA CLIMATE LEADERS 2023 AWARD LIST am een 2023 statista” oe j statista % VAS 05. ESG & En ansition
Slide 62: Key ESG priorities & projects for 2023
Key ESG priorities & projects for 2023 Environment Society Governance 1. Energy transition business project 1. EQUALL initiatives for social inclusion 1. ESG management committee 2. SBTi targets monitoring • Women 2. ESG materiality assessment & stakeholder engagement 3. Climate risk management tool
Slide 63: 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 64: 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 65: Our SBTi-validated targets, evidence of our commitment to deliver on emissions reduction
Our SBTi-validated targets, evidence of our commitment to deliver on emissions reduction Validated Science Based Targets GHG emissions Scope 1 GHG emissions Scope 1 GHG emissions Operations & Scope 2 (tCO2eq) & Scope 2 (tCO2eq) reduction (%) (base year 2019) (target year 2030) • Direct and indirect
Slide 66: 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 We will leverage a structured We win as Greece wins transition: approach and our deep understanding of the specific needs We will deploy pa
Slide 67: Green bond net proceeds allocation in financing green projects
Green bond net proceeds allocation in financing green projects 1.5 year proceeds allocation & impact summary: €0.5bn green bond issued in Nov.21 Hydro Hydro Hydro 2.9% 1.3% 2.0% Wind Wind Wind Solar Solar 54.6% 40.0% 54.5% Solar 42.5% 58.8% 43.5% €428mn 525.3MW 907,395MWh amount allocated to annual
Slide 68: EQUALL program
EQUALL program 05. ESG & Energy Transition 68
Slide 69: 06. Annex
06. Annex
Slide 70: Greece's economic prospects remaining robust…
Greece’s economic prospects remaining robust… 2 2022 2023 2024 actual estimate estimate GDP 5.9% 3.6% 3.7% ▪ Greek GDP growth >2x EU average ▪ Strong foundations for sustainable growth Unemployment 12.4% 12.4% 11.8% ▪ Primary fiscal balance returned to surplus in 2022 Inflation (CPI) 9.6% 2.5% 2% ▪
Slide 71: …despite geopolitical tensions and inflationary pressures
…despite geopolitical tensions and inflationary pressures Economic Sentiment recovers and growth remains strong at 5.9% in FY.22 Headline inflation moderates on the back of a massive energy inflation decline 20.0 FY.22 14.0 Nominal GDP growth rate: 14.5% Headline Inflation (CPI) Q4.22 12.0 15.0 Real
Slide 72: Credit ratings
Credit ratings Greek sovereign Piraeus Bank Piraeus Bank Piraeus Bank Credit rating Long term Outlook Senior preferred 7 November 2022 Ba3 Ba3 Stable B1 25 April 2023 BB+ B+ Positive B+ 31 January 2023 BB+ B Positive B 07 December 2022 BB high B high Stable B high Moody’s rating refers to long term
Slide 73: Group balance sheet evolution
Group balance sheet evolution Group balance sheet (€mn) Mar.22 Dec.22 Mar.23 qoq yoy Cash & balances with central banks 17,962 9,653 9,576 -1% -47% Loans & advances to banks 713 750 953 27% 34% Gross loans 37,066 38,787 36,761 -5% -1% (Loans loss reserves) (2,067) (1,421) (1,349) -5% -35% Securities
Slide 74: Group results | quarterly evolution
Group results | quarterly evolution (€mn) Q1.22 Q2.22 Q3.22 Q4.22 Q1.23 Net interest income 286 306 331 431 447 Net fee income 101 105 108 107 105 Rental & non-banking activities income 12 16 18 18 17 Trading & other income 583 84 57 20 8 Total net revenues 982 511 513 576 577 Total net revenues (re
Slide 75: Earnings per share calculations
Earnings per share calculations Earnings per share (€) Q1.22 Q2.22 Q3.22 Q4.22 Q1.23 Outstanding number of shares (#) 1,250,367,223 Core operating profit 87 133 97 188 195 AT1 coupon (mn) (13) (13) (13) (13) (13) Core operating profit adjusted (mn) 74 120 84 175 182 Core EPS 0.06 0.10 0.07 0.14 0.15
Slide 76: Loan and deposit portfolios
Loan and deposit portfolios Gross loans evolution (€mn) Deposits evolution (€mn) Dec.20 Dec.21 Mar.22 Dec.22 Mar.23 qoq yoy Dec.20 Dec.21 Mar.22 Dec.22 Mar.23 qoq yoy Group 48,012 37,018 37,066 37,270 36,761 -1% -1% Group 49,636 55,442 54,854 58,372 57,174 -2% 4% Senior notes 6,236 6,182 6,074 6,034
Slide 77: IFRS9 stage analysis | Group
IFRS9 stage analysis | Group Gross loans (€bn) Dec.171 Dec.181 Dec.191 Dec.201 Dec.211,2 Mar.22 Dec.221,2 Mar.23 Δ yoy Stage 1 19.1 17.6 18.4 19.6 26.5 26.6 30.4 30.1 13% Stage 2 6.9 5.9 5.0 5.4 5.1 5.2 3.8 3.8 -28% Stage 3 & POCI 32.3 28.0 25.2 23.0 5.4 5.2 3.1 2.9 -45% Total 58.3 51.5 48.6 48.0 37
Slide 78: Glossary | definitions of APMs
Glossary | definitions of APMs1 1 Adjusted total assets Assets adjusted are total assets reported excluding the seasonal agri loan (OPEKEPE) in December each year and assets from discontinued operations 2 Assets under management Assets under management include MFMC assets, equity brokerage custody a
Slide 79: Glossary | definitions of APMs
Glossary | definitions of APMs ECL Impairment losses on loans and advances to customers at amortised costs plus (+) other credit-risk related charges on loans and advances to customers at amortised cost, plus (+) 22 Impairments or provisions Impairments losses on other assets plus (+) ECL Impairment
Slide 80: Glossary | definitions of APMs
Glossary | definitions of APMs 43 Operating costs - expenses (OpEx) Total operating expenses before provisions 44 OpEx (recurring) Operating costs minus (-) non-recurring costs (as per line item #42) 45 Peer 1, 2, 3 Corresponding to the other three Greek systemic banks, namely Alpha, Eurobank, NBG G
Slide 81: 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 82: 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
Slide 83: Slide 83
Piraeus Financial Holdings — Q1 2023 Earnings Presentation on 6ix