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FIRST QUARTER 2010 RESULTS
Improvement of Organic Profitability Balance Sheet Strengthening
In Greece, the undeviating implementation of the measures of fiscal prudence, the improvement of the country’s competitive position, as well as the emergence of a reliable development plan are imperative steps for the future. The targets of the new economic programme, as agreed with the EU, ECB and IMF, are achievable, while their implementation constitutes a necessary condition in order for the markets to regain confidence in the Greek economy. In the broader geographical region, where the Group operates in 7 countries, the economic conditions are gradually improving. Taking advantage of the current circumstances, Piraeus Bank’s competitive strengths in green banking and e-banking in terms of infrastructure and know-how, we remain focused on further expanding our activities in both of these emerging sectors.
Michalis Sallas, Chairman of BoD & CEO
During the first quarter of 2010, the Group’s pre-provision organic profitability increased by 18%, reaching €161 mn, primarily due to the stronger net interest income, which increased by 15% amounting to €293 mn. Operating cost was maintained at Q1’09 level, while the goal for full year 2010 is to set at a lower than 2009 level. Provisions increased by 65% and amounted to €134 mn compared to €81 mn in Q1’09. Our target is to maintain the respective coverage ratio at 50% level and 110% including tangible collaterals. Despite the difficult situation of the Greek economy, the improvement of the Group’s organic profitability allows the formation of necessary provisions for safeguarding the Group’s balance sheet, transmitting an optimistic message for the rest of 2010. Asset quality and sound capital adequacy remain top strategic priorities of the Group’s Management.
Stavros Lekkakos, Deputy CEO
Q1 results for 2010 are available here.
FULL YEAR 2009 RESULTS
Net Profit €235mn
"Piraeus Group pre-provision profit amounted to €780 mn in 2009 compared to €774 mn in 2008. Net revenues and operating expenses also remained at 2008 levels, while provision expense increased to €491 mn versus €388 mn due to unfavorable economic conditions. Net profit in 2009 reached €235 mn , -25% y-o-y. Adjusting for the one-off tax, net profit amounted to €202 mn. The Group's key policy principles for 2009, liquidity, capital adequacy, asset quality and cost containment, remain priorities for 2010 as well. At the same time, our next steps for business growth are being prepared, both in Southeastern European countries, which are gradually entering a recovery phase, as well as in Greece. The Greek economy is up against important fiscal and structural challenges, which require bold measures in order to put the economy back on its growth course. The Stability and Growth Pact 2010-2013, as it is being formulated in collaboration with the European Union, is in the right direction. Upon its implementation, Greece will have the opportunity to store its public finances and promote structural reforms which will lead the country to a safer economic environment. During this critical period, the private sector's contribution is of equal importance with initiatives and actions that will improve competitiveness and lead to economic recovery."
Michalis Sallas, Chairman of the Board of Directors.
Full results for 2009 are available here.
9 month results September 2009
Strengthening Group Balance Sheet, Group Net Profit €219 mn
"A year after the full development of the economic crisis in Greece and in the broader region, Piraeus Bank Group has managed to strengthen its position. The Group’s balance sheet is solid, its liquidity position is close to historically high level, operating expenses remained flat and pre-provisions profit amounted to €603 mn in the nine month 2009 versus €670 mn in the respective period of 2008.
The positive signs for a recovery in the global economy are progressively getting stronger, while the international financial sector continues to adjust itself to the new prevailing conditions. Greece’s current fiscal position requires immediate structural measures, in order for the country to remain close to the European developments.
Piraeus Bank’s prudent management will continue to comprise the major element of its policies and development targets in the broader region markets where it operates and where medium term prospects remain positive.’’
Michalis Sallas, Chairman of the Board of Directors.
9 month results for September 2009 are available here.
Q1 2009 Results Emphasis on Asset Quality and Equity
“Asset quality, capital adequacy, high liquidity and significant cost containment were our key priorities during the first quarter of 2009, with the aim to further safeguard the Bank. Furthermore, emphasis was placed on servicing and supporting our customers. Our efforts rendered results. As the initial signs of regaining confidence to the global economy prevail, the money and capital markets are being gradually normalized and the interest rate levels are being rationalized. This allows us to estimate an improvement of profitability in the following quarters”.
Michalis Sallas, Chairman of the Board of Directors.
For the first quarter 2009, net profit attributable to shareholders of €52 mn, while total assets amounted to €54 bn, increased by 11% y-o-y.
New €500 million 2-Year Bond issue successfully launched
Piraeus Bank announces the particularly successful launch of its new 2-Year senior bond issue in the amount of €500 million, without guarantee. The bond was issued under Piraeus Bank’gs Euro Medium Term Note (EMTN) program and the issuer is the Bank’s subsidiary Piraeus Group Finance PLC.
The international markets received the bond with great interest and the orderbook exceeded €1.25 billion in a few hours (2.5 times oversubscribed). A total of 96 investors from 15 countries participated, resulting in 60% of the amount being distributed to investors abroad. This bond complements Piraeus Bank’s benchmark yield curve and re-enforces Piraeus Bank status as an issuer in the international market.
The new 2-year bond is a fixed rate note with a coupon of 4.50% and shall be listed on the Luxembourg Stock Exchange. The transaction was lead-managed by Citigroup, Deutsche Bank, HSBC and Merrill Lynch.
Corporate Responsibility Award
Piraeus Bank is the only Greek Bank to receive the highest distinction of the 1st Corporate Responsibility Index, Cr Index, which took place in Greece in June 2009.
Cr Index is a top international performance tool measuring Corporate Responsibility effectiveness in the areas of Society, Environment, Work place and Market based on the international criteria and standards. This is the first year the Cr Index is applied in Greece by the Institute of Corporate Responsibility and in cooperation with Business In The Community (BITC).