Piraeus Bank is profitable in the second quarter, raises its forecast as the loan portfolio grows


A man walks past a branch of Piraeus Bank in Athens, Greece, January 17, 2022. REUTERS/Louiza Vradi

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ATHENS, Aug 3 (Reuters) – Piraeus Bank (BOPr.AT) on Wednesday reported lower April-June net profit than in the first quarter due to relatively lower trading income, but raised its forecast for the first quarter. year due to new loan disbursements. targets in mind.

Greece’s fourth-largest lender by market value reported net profit from continuing operations of 92 million euros ($94 million) after a first-quarter profit of 521 million euros.

Trading revenue in the first quarter had been boosted by one-time gains booked in its sovereign bond portfolio and other transactions.

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Loan impairment provisions fell 23% quarter-on-quarter to 117 million euros, with Piraeus reducing its so-called non-performing exposures (NPE) ratio to 9% from 13% in December 2021.

The group’s performing loan portfolio grew by 1.5 billion euros in the first half, beating its full-year target, while record fee income was generated, the director said General Christos Megalou.

“We are improving our forecast on key financial aspirations for 2022. We are now targeting an NPE ratio of 8%, more than €2 billion of healthy loan growth, a core equity Tier 1 ratio of 11% and earnings per share of 0.35 euro,” said Megalou.

The objectives were respectively 9%, 1.2 billion euros, 10% and 0.05 euro.

Excluding lost NPE revenue, net interest income rose 3% year-on-year to 512 million in the first half, supported by expansion in the performing loans portfolio and higher yields in its income portfolio fixed.

Piraeus Bank’s four-year business plan to 2025 aims to reduce non-performing exposures to 3.0% by that date and potentially start paying dividends from 2024.

The bank is also targeting around €7.0 billion of new loan disbursements to achieve a loan portfolio of €35 billion of performing credits by the end of the period.

($1 = 0.9837 euros)

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Reporting by George Georgiopoulos Editing by Mark Potter

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