Piraeus lifts loan book to €39.6 billion after net expansion of €2.2 billion
Key Facts
Piraeus Bank's loan book stood at €39.6 billion at the end of September 2026, after the bank recorded net credit expansion of €2.2 billion in the first nine months of the year. The bank said it remained on track to achieve its annual target of more than €3 billion, as net profit reached €893 million, up 9% year on year. Earnings per share rose to €0.68, up 10% from the same period a year earlier. The bank said core operating profit hit a record €930 million, an increase of 14% over the nine months. In the third quarter alone, it rose 10% year on year to €301 million.
Business lending drove credit growth, with transport and energy companies accounting for the largest share, according to the bank's results published on the Athens Stock Exchange. Loan disbursements totalled €3.2 billion in the third quarter, of which €1.7 billion went to large companies and €1.2 billion to small and medium-sized enterprises. Individuals received €0.3 billion of total disbursements during the quarter. In residential lending, the bank said the mortgage recovery was continuing, with net growth of €135 million in the nine months. Mortgage loan disbursements totalled €600 million over the same period, up 37% year on year.
Customer deposits rose 9% year on year to €69.2 billion at the end of September, with their total cost at 0.39% in the first nine months of the year. Assets under management for customers also increased 19% year on year to €16.9 billion, with net inflows of €1.3 billion during the period. Growth in assets under management accompanied credit expansion, adding another source of income alongside lending. The bank said market volatility, however, affected non-core revenue, partly limiting the impact of underlying operating performance on net profit. Core operating profit nevertheless grew faster than net profit over the nine months.
Asset quality improved, with the non-performing exposure ratio falling to 2.0% in the third quarter, compared with 2.2% in the previous quarter and 2.5% a year earlier. The bank attributed the decline to portfolio-cleanup initiatives and disciplined organic performance. The fall puts loan-quality indicators on a better footing than a year ago, alongside credit expansion during the period. The chief executive said the continuing conflict in the Middle East and rising bond yields in Europe were adding uncertainty to the global and European economic outlook. He added that Greece's macroeconomic environment remained resilient despite these factors.
The bank raised its medium-term ambitions for 2027, targeting a net interest margin above 2.4% and a return on tangible book value above 15%. It also targets earnings-per-share growth of about 10% and a Common Equity Tier 1 capital ratio above 13.5%. For 2026, the bank said it was on track to achieve credit expansion of more than €3 billion, after recording €2.2 billion in the first nine months. It announced plans to pay shareholders an interim dividend of about €124 million from 2026 profits in December, subject to regulatory approval. Cumulative cash dividends from the year's profits amounted to €650 million.