Piraeus raises 2027 ambitions after 893 million euros in nine-month profit
Key Facts
Piraeus Bank said on October 30 that net profit attributable to shareholders reached 893 million euros in the first nine months of 2026, compared with 820 million euros in the same period of 2025. The bank said earnings per share rose 10% to 0.68 euros and were on track to meet its full-year target of about 0.90 euros. Management said the period's results support confidence in existing 2026 targets, with scope to outperform in net interest income and service revenue. The announced change was to raise the bank's ambitions for 2027, not to revise its 2026 targets. The chief executive said, "Strong execution reinforces our confidence in our 2026 targets, with upside potential in net interest income and service revenue, while also providing a foundation to raise our ambitions for 2027."
Profit growth reflected an improvement in underlying income, with net interest income reaching 1.532 billion euros in the nine months, compared with 1.426 billion euros a year earlier. In the third quarter alone, income accelerated to 542 million euros, up 7% quarter on quarter, which the bank attributed mainly to interest rates and pricing discipline. Net interest margin rose to 2.3% in the third quarter from 2.2% in the previous quarter, while it stood at 2.2% for the year-to-date period. Core operating profit reached a record 930 million euros in the nine months, up 14% year on year, and rose 10% year on year to 301 million euros in the third quarter. The bank said market volatility affected non-core revenue, while underlying performance contributed in part to the increase in net profit.
Non-interest income sources helped broaden the revenue base, with service revenue totaling 679 million euros in the nine months, up 39% year on year. Piraeus said Ethniki Insurance led the acceleration in this activity, alongside 19% annual growth in customer assets under management to 16.9 billion euros. Those assets attracted net inflows of 1.3 billion euros during the period, exceeding the bank's 2026 target. On the funding side, customer deposits rose 9% year on year to 69.2 billion euros, with an overall cost of 0.39%. The figures point to concurrent expansion in deposits and managed services, alongside growth in interest income during the period.
Loans totaled 39.6 billion euros at the end of September, after net credit expansion of 2.2 billion euros in the nine months. The bank said it remained on track to meet its 2026 target of credit expansion exceeding 3 billion euros. Mortgage lending continued to recover, with a net increase of 135 million euros and loan disbursements of 600 million euros during the period, up 37% year on year. Asset quality improved, with the non-performing loan ratio falling to 2.0% in the third quarter, from 2.2% in the previous quarter and 2.5% in the first nine months of 2025; the bank attributed the decline to portfolio sales. The cost-to-income ratio was 33% in the nine months and 32% in the third quarter, while the Common Equity Tier 1 ratio reached 12.9%, with a target of exceeding 13% in 2026.
Piraeus raised its 2027 targets to include a net interest margin above 2.4%, service revenue of about 0.9% of assets, and a return on tangible equity above 15%. The bank also targets annual earnings-per-share growth of about 10% and a Common Equity Tier 1 ratio above 13.5%. These ambitions follow management's confirmation that the bank is on track to meet its 2026 targets, with upside potential in some income sources. At the same time, the chief executive said the ongoing conflict in the Middle East and rising bond yields in Europe add uncertainty to the global and European economic outlook. These factors reflect the risk backdrop the bank cited alongside its updated medium-term targets.
On shareholder returns, the bank aims to pay an interim distribution of about 124 million euros from 2026 net profit in December, subject to regulatory approval. Piraeus said it had accumulated 650 million euros in cash distributions from 2026 profits. The bank's financial calendar sets December 28, 2026, as the start date for payment of the extraordinary cash distribution, while reserving the right to change dates after notifying the public. The regulatory approval condition places the interim distribution among steps that have yet to be completed. December is set to be the next announced date for shareholders in the distribution schedule.