Piraeus Financial Holdings S.A.

Piraeus reported record first-half net profit of EUR 617 million and EPS of EUR 0.47. Second-quarter EPS was EUR 0.26, and tangible book value per share was EUR 6.3, up 7% year on year. Loan book stood at EUR 39 billion, up 9% year on year; first-half credit expansion was EUR 1.8 billion. Revenues from services were EUR 462 million, up 42% year on year, and core revenues rose 13% year on year. Net interest income was EUR 990 million, with NIM at 2.2%. Deposits were EUR 68 billion, up 9% year on year, cost of deposits was 38 bps, cost-to-income was 34%, NPE ratio was 2.2%, organic cost of risk was 45 bps, and CET1 was 12.8%, up 20 bps quarter on quarter. Management updated 2026 guidance to NII of about EUR 2 billion, revenues from services above 90 bps of assets / about EUR 850 million, CET1 above 13%, and cost of risk of about 60 bps. It reiterated EPS guidance of about EUR 0.90 and said first-half performance supports full-year loan growth above EUR 3 billion.

Christos Megalou said the quarter showed that Piraeus’ strategy of sustainable profitable growth, diversification, and technology investment is working. He emphasized broad-based loan growth, stronger fee income, and the build-out of AI and digital initiatives through Newra and Snappi, while pointing to investment-grade status from all major rating agencies as external validation. His tone was positive but careful, repeatedly saying the updated outlook reflects prudence given geopolitical and macro uncertainty rather than any bank-specific issue.

Theo Gnardellis focused on the sustainability and quality of the numbers, saying NII was organic with no one-offs and driven by volume growth on both lending and bonds, partially offset by spread pressure and rate moves. He explained the EPS guidance hold by citing about EUR 30 million of social responsibility charges in the second half, plus prudence on the remaining quarters, and said the cost-of-risk increase reflected about EUR 20 million in Q2 from Katseli law modifications and macro scenario adjustments. He also said capital generation is supporting distribution, with first-half accrual above EUR 250 million toward a EUR 650 million 2026 distribution promise, and noted Ethniki’s solvency fell due to a EUR 50 million AT1 repayment but should rebound as that is reissued in Q3.

Analysts pressed management on why EPS guidance was unchanged despite higher NII and fee guidance, and management said the stance was conservative because of geopolitical and broader macro uncertainty, with some second-half charges still ahead. Questions also focused on whether Ethniki Insurance’s strong run rate is sustainable; management said first-half performance is the right run-rate reference and that the business is ahead of expectations. Other notable topics were loan pipeline/RRF disbursements, capital returns, and the cost-of-risk increase, which management tied to Katseli-related impacts, macro adjustments, and a desire to fortify the balance sheet.