Piraeus Financial Holdings SA (OTCPK:BPIRY)
$ 4.31 0.15 (3.61%) Market Cap: 5.37 Bil Enterprise Value: -2.14 Bil PE Ratio: 4.75 PB Ratio: 0.65 GF Score: 53/100
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Half Year 2024 Piraeus Financial Holdings SA Earnings Call Transcript

Jul 31, 2024 / 12:00PM GMT
Release Date Price: $4.16 (+1.16%)

Key Points

Positve
  • Piraeus Financial Holdings SA (BPIRF) delivered a record normalized net profit of EUR333 million in Q2 2024, contributing to EUR612 million for the first half of the year.
  • The company paid a cash dividend of EUR72 million in Q2 2024, marking the first dividend payment in 16 years.
  • Piraeus regained its investment grade rating after 14 years and became the first Greek bank to meet the final MREL requirement 1.5 years ahead of target.
  • The acquisition of the pan-European license for Neo Bank Snappi signifies a significant step in the company's development.
  • The company achieved a return on average tangible book value of 19% in Q2 2024, surpassing the full-year target of 15%.
Negative
  • Despite strong performance, there is potential spread erosion and margin compression expected due to Euribor cuts and spread pressure on new loan production.
  • The cost of risk guidance for the full year is 70 basis points, indicating a potential increase in the second half of the year.
  • The company faces challenges in maintaining its current level of net interest income and net fee income amidst changing market conditions.
  • There is a risk of increased operating expenses due to inflationary pressures and ongoing investments.
  • The CET1 ratio, although improved, will face challenges from Basel IV regulations starting in 2025, potentially impacting capital levels.
Operator

Ladies and gentlemen, thank you for standing by. I am Mina, your Chorus Call operator. Welcome, and thank you for joining Piraeus Financial Holdings conference call and live webcast to present and discuss Piraeus's first-half 2024 financial results. (Operator Instructions) And the conference is being recorded. The presentation will be followed by a question-and-answer session. (Operator Instructions)

At this time, I would like to turn the conference over to Piraeus Financial Holdings CEO, Mr. Chris Megalou. Mr. Megalou, you may now proceed.

Christos Megalou
Piraeus Financial Holdings SA - Chairman of the Group Executive Committee, Chief Executive Officer, Managing Director, Executive Director

Good afternoon, ladies and gentlemen, and good morning to those joining us from the US. This is Christos Megalou, Chief Executive Officer, and I'm joined today by our CFO, Theo Gnardellis; Chryss Berbati; and Xenofon Damalas of our IR team.

Piraeus has delivered the best quarterly and semiannual performance ever with EUR333 million normalized net profit

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