On Monday, Piraeus Bank, the third-largest lender in Greece by market value, announced a significant increase in its 2024 earnings primarily driven by higher net interest income and lending. The bank confirmed a net profit of 1.1 billion euros ($1.15 billion) for the year, a notable improvement from 788 million euros in 2023. Earnings per share also saw a substantial annual increase of 38% to 0.81 euros, as the loans portfolio grew by 12% to 33.7 billion euros.
Looking ahead, Piraeus projected a consistent yearly profit of around 1.1 billion euros until 2027, with a further increase to about 1.3 billion euros by 2028. This positive trend mirrors the recovery of Greek banks, which have been regaining stability and profitability following nationalization in the wake of the 2009 financial crisis prompted by the country's debt turmoil.
Furthermore, Greek banks received approval from the European Central Bank last year to resume dividend payments after 16 years, following efforts to enhance financial health by reducing bad loan ratios, diminishing state ownership, and achieving profitability.
Piraeus shared plans to distribute a dividend equivalent to 35% of its 2024 profit to shareholders, with Chief Executive Christos Megalou forecasting an increase to an annual 50% payout by 2028. Megalou outlined the bank's strategic focus on growing client assets, ensuring sustained mid-teen returns, and aiming for over 2 billion euros for shareholders by 2028.
In addition, discussions with CVC Capital Partners Insurance are ongoing, with Piraeus reporting a 4% year-on-year rise in net interest income to 2.08 billion euros for 2024.
(Note: $1 = 0.9532 euros)