19 June 2018

Piraeus Bank records profit of seven million in Q2

30 August 17 - RE+D Magazine
Piraeus Bank records profit of seven million in Q2



Consultant - GREECE


Public entity - GREECE


Investment - GREECE

Eurobank Property Services

Consultant - GREECE


Dimitris Andritsos

CEO of Eurobank Property Services S.A Eurobank Property Services
Piraeus Bank Group’s recorded profits of seven million euros in the second quarter of 2017, versus seven million in losses in the previous quarter, the lender said in a press release on Wednesday, announcing its results for the second quarter.


The bank recorded a net profit of 217 million euros in the first half of the year, achieving a return on assets of 1.1 percent. The cost-to-income ratio for the second quarter reduced to 50 percent, while the ratio in Greece stood at 47 percent for the first time since market consolidation.

The Group’s pre-provision income rose by 14 percent year-on-year in the first six months of the year to 549 million euros, driven by annual net income growth of 3 percent and cost reduction of 5 percent.

“In our continued effort to deal with the legacy issues of the Bank, provisions remained at the high-end of our guidance, resulting in a break-even bottom line for the Group for the six-month period,” the Group said.

At the end of the second quarter, the Group’s CET-1 capital ratio stood at 16.9 percent, slightly improved compared to the previous quarter (16.8 pct). NPLs decreased by 1.1 billion euros q-o-q, down by 4.9 billion euros from their September 2015 peak, reducing the NPL ratio in Greece to 37.0 percent.

NPEs decreased by 0.7 billion euros q-o-q and 3.3 billion euros from their peak, respectively. “The improving sentiment, due to the closing of the second review, supported our customer deposit base as of mid-June and reversed outflows, ending Q2 with a quarterly increase of 150 million euros,” the bank said. This trend continues so far in the third quarter, with inflows of more than 300 million euros.

Simultaneously, the bank’s reliance on ELA decreased by 0.7 billion euros in Q2 to 10.3 billion euros and is further reduced in Q3, reaching 8.5 billion euros in late August, mainly driven by further deposit inflows, deleveraging and more active interbank repo market.

“In late May 2017, we announced our new strategic plan for the period up to 2020, entitled ‘Agenda 2020’. We are focused on the disciplined implementation of this plan, having as a set of enablers to de-risk our balance sheet, resize and focus, implement a profitable and sustainable business model, optimise our capital allocation, strengthen our risk and control functions and adopt superior governance standards,” the Group said.


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