Piraeus Bank reports record lending and robust profit in 2025

Piraeus Bank delivered robust results in 2025, with substantial growth in loans, deposits, and client assets, alongside strong profitability and enhanced capital ratios, even following the completion of the acquisition of Ethniki Asfalistiki.

Loan Portfolio and Customer Deposits
The bank’s loan portfolio reached €37.3 billion, with net credit expansion of €3.9 billion during the year, supported across all business segments. Retail banking contributed significantly, with net growth of €300 million, including €100 million in mortgage loans, signaling a gradual recovery in housing finance. New loan disbursements to the Greek economy totaled €13.3 billion, marking the highest level in the bank’s history.

Customer deposits increased 5% year-on-year to €66.1 billion, while assets under management rose 27% to €14.5 billion, surpassing the annual target.

Profitability and Fee Income
Net profit for 2025 amounted to €1.07 billion, corresponding to a return on tangible equity of 16%, while earnings per share reached €0.82, exceeding management targets. Net fee and commission income rose 26% year-on-year to €696 million, driven by lending, asset management, investment banking, and bancassurance activities. In Q4 2025, net fee income totaled €206 million, up 23% year-on-year, reflecting contributions from both traditional and new banking activities, including one month of income from Ethniki Asfalistiki.

Dividend Policy and Capital
Based on strong performance, the bank increased its total payout ratio target to 55% (from 50%), translating to a dividend of approximately €0.40 per share (€492 million), in addition to an interim €100 million share buyback. Capital ratios remained robust, with a CET1 ratio of 12.7% and a total capital ratio of 18.7%, providing a buffer of roughly 275 basis points above regulatory requirements.

Operational Efficiency and Asset Quality
Operating efficiency remained high, with a cost-to-income ratio of 33%. Asset quality improved, with the non-performing exposure (NPE) ratio falling to 2.0% from 2.6% a year earlier, with 73% coverage. The organic cost of risk was 0.5%, in line with the annual target. The loan-to-deposit ratio stood at 65%, while the liquidity coverage ratio reached a strong 216%.

Quarterly Highlights
Net interest income in Q4 2025 reached €477 million, up 1% from the previous quarter, supported by higher loan balances. Net interest margin stood at 2.25%, with slight recovery from prior-quarter lows. Recurring operating expenses were €234 million, including for the first time the operational costs of Ethniki Asfalistiki, up 14% quarter-on-quarter. Personnel expenses rose 11% year-on-year to €125 million, with total staff numbering 8,472 at year-end, including 8,100 in Greece. General and administrative expenses were stable at €81 million, while depreciation increased 13% year-on-year due to technology investments. The recurring cost-to-core income ratio was 34% for Q4 2025, in line with annual guidance.

Statement from Chairman George Hatzinikolaou
“2025 marks a year of consolidation and progress for Piraeus Bank. After a period of significant change, the bank has established strong foundations in financial performance, strategic consistency, technological transformation, and social responsibility, with a clear focus on sustainable development of the Greek financial system.

Through the acquisition of Ethniki Asfalistiki, Piraeus is creating a new operational model that diversifies revenue sources and serves the evolving needs of the economy and society. The Greek economy continues to demonstrate resilience and growth above the European average, supported by investment and confidence. In this environment, Piraeus strengthened profitability, expanded financing to the real economy, and further reinforced its balance sheet despite geopolitical challenges.

The transformation of the Group continues, with Piraeus becoming simpler, more flexible, and technologically mature. Investments of over €135 million in technology are already delivering measurable results, enhancing efficiency, customer experience, and decision-making quality. People remain at the center of this transformation, with systematic investment in skills, leadership, and modern corporate culture, creating a flexible and digitally capable workforce ready for future challenges.

In a rapidly evolving environment with technological change and shifting client expectations, leadership is defined by clarity of direction and consistent execution. Piraeus moves forward confidently and responsibly, creating long-term value for shareholders, supporting the real economy, and contributing to the sustainable progress of Greek society.”