Bank of Piraeus announced a mixed set of results as it is affected from various one offs, integration costs and higher provisions adjusting for AQR/ECB stress test. Operating income came in line with our estimates. We note that trading income is negative by 23.4m on FX losses while the sale of Aegean shares (19.6m) has partly erased trading loss.
- The Group’s recurring pre-tax and provision profitability for Q3 2014 amounted to €279 mn, up 23% year on year, mainly attributable to a 12% increase in net interest income, a 18% rise in net commission income and a 7% decline in operating costs.
- Total impairment charges amounted to €3.2 bn in 9 month 2014, incorporating the enhanced provisions of €2.2 bn in Q3 2014. Subsequently, the coverage of the non-performing loans increased to 58% compared to 51% in the previous quarter
- The Group’s total capital adequacy ratio remains at 13.6% and CT1 at 13.1%.
- Group total assets amounted to €86.4 bn, recording a 2% decline compared to June 2014 mainly due to the higher provisions.
- Deposits were €55.0 bn, increased 1% when compared to both the previous quarter and December 2013.
- Gross loans before adjustments continued their deleveraging course amounted to €72.7 bn. Net loans amounted to €56.3 bn. Net loans to deposits ratio was considerably improved in September 2014 down 6 pps to 102% compared to the respective ratio in June 2014. The net Eurosystem funding ratio (excluding EFSF bonds pledged as collateral to ECB) declined further to 5% of total assets.
The following table summarises Q3 results:
|Bank of Piraeus||2013||2014||2014||Overview|
|(In million Euro)||3Q13||2Q||3Q||Beta 3QΕ||q/q||y/y|
Head of research
Beta Securities S.A.
29 Alexandras Ave.
GR – 11473