The following is a summary of the Piraeus Financial Holdings S.A. (BPIRY) Q4 2023 Earnings Call Transcript:
Financial Performance:
Piraeus Financial expects to sustain NIM above 2% in mid-to-long term.
Despite inflationary pressures, the company's administrative cost is expected to normalize at €300 million.
Record high normalized earnings of €0.80 per share reported for 2023, with a 16.6% return on tangible book.
Piraeus reported 37% growth in net revenue compared to the previous year and a 4% reduction in operating expenses.
The company's non-performing exposure (NPE) ratio halved to 3.5% in 2023.
Solid CET1 ratio of 13.3%, 170 basis points higher than the previous year, and MREL of 24.1% reported.
Business Progress:
Non-maturity deposit hedges implemented, holds a position of €10 billion.
Company making strategies to deal with increased repayments from higher Euribor and other variables.
Future impact from Basel IV to be mitigated through various strategies.
€1.6 billion of net credit expansion achieved, assets under management increased by 34% to €9.3 billion in 2023.
The launch of digital bank, Snappi, is expected by mid-2024.
The company aims for the NPE ratio to converge to the European average levels by the end of 2026, reaching about 2.5%.
Piraeus plans a loan expansion over 5% per annum for the period 2024-2026, targeting net profits of approximately €1 billion per year.
More details: PIRAEUS FINANCIAL HOLDINGS S.A SPON ADS EACH REP 1 ORD SHS (POST SPLIT) IR
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