Last Update: 10:16
Piraeus Bank reported a net loss of Eur6 mn in Q1 ’17 as core profitability was fully used for provisions.
The NPL stock was reduced by Eur0.3 bn qoq to Eur24.1 bn through write-offs of Eur0.7 bn (i.e. positive quarterly formation of Eur0.4 bn). The NPL stock has declined by Eur2.3 bn yoy and the NPE stock has declined by Eur1.4 bn yoy.
The end-March ’17 tangible equity per share was reported at Eur0.84 (flat qoq) and the fully loaded CET1 ratio at 16.3% (+10 bps qoq).
Piraeus Bank released its strategic plan until 2020, based on which the group is being separated into two operating pillars, namely the ‘Piraeus Bank’ which includes the core business and the ‘Piraeus Legacy Unit/PLU’ which includes the run-off assets, the NPL/NPE portfolio and the real estate assets.
The purpose of the separation is to maximize value arising from the core businesses, while focusing on realizing value in legacy holdings. Indicatively, in Q1 ’17, the core ‘Piraeus bank’ reported net profit of Eur104 mn; it had net loans of Eur26.1 bn and deposits of Eur37.7 bn and an NPL ratio of 2.0%. The PLU posted a net loss of Eur110 mn, it had loans of Eur21.3 bn and deposits of Eur3.3 bn and an NPL ratio of 64%.