Piraeus Bank S.A.

Piraeus reported record first-half 2026 net profit of EUR 617 million and EPS of EUR 0.47. In the second quarter, EPS was a historic high of EUR 0.26. Loan book growth was 9% year over year to EUR 39 billion, with H1 net credit expansion of EUR 1.8 billion. Services revenue rose 42% year over year to EUR 462 million, NII reached EUR 990 million, NIM was 2.2%, deposits were EUR 68 billion, AUM were EUR 16.3 billion, cost-to-income was 34%, NPE ratio was 2.2%, organic cost of risk was 45 bps, and CET1 was 12.8% after a 20 bps quarter-over-quarter increase. Management kept the full-year EPS target at approximately EUR 0.90, raised 2026 NII ambition to EUR 2 billion, upgraded 2026 services revenue target to about EUR 850 million, kept loan growth on track to exceed EUR 3 billion for the year, and lifted 2026 cost of risk guidance to approximately 60 bps.

Christos Megalou framed the quarter as evidence that Piraeus is delivering sustainable, profitable growth through stronger customer activity, better revenue mix, and disciplined risk management. He emphasized that the Greek economy remains supportive, but said the bank is staying cautious because of geopolitical and global uncertainty, which is why guidance was updated conservatively. He also highlighted the strategy shift into technology and AI, broader financial services, and the strengthening contribution from Ethniki Insurance and Snappi.

Theo Gnardellis focused on the drivers behind the financial performance and the upgraded guidance. He said NII was organic with no one-offs, driven by volume growth on both lending and bonds, spread defense, and rate effects; he also noted about EUR 30 million of social responsibility charges in the second half and said the EPS target remains unchanged because management is being prudent. On capital, he said the bank has already accrued more than EUR 250 million for 2026 distributions and is on track for the EUR 650 million distribution promise, while cost of risk moved higher mainly because of Katseli law-related items and macro adjustments.

Analysts pressed management on why stronger NII and fee guidance did not lead to a higher EPS target, and management said the stance was conservative given geopolitical uncertainty and the desire to wait for more quarters of data. Questions also focused on whether Ethniki Insurance, deposit growth, and loan growth were sustainable; management said Ethniki’s first-half run rate was roughly sustainable, deposits were about half organic and half driven by corporate/equity-market activity, and loan growth was mainly a matter of timing and seasonality rather than a competitive issue. On capital returns, management said it is accruing for the 2026 distribution and expects likely interim distribution timing, while Ethniki’s excess solvency may be upstreamed annually subject to performance and approvals.