This article first appeared on GuruFocus .
Release Date: July 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Piraeus Bank SA ( PIRBF ) delivered a record net profit of EUR 617 million in the first half of 2026, with earnings per share of EUR 0.47, indicating strong financial performance.
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The bank achieved a return on average tangible book value of 16%, surpassing its 2026 target of approximately 15%.
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Loan book growth was robust, with a 9% year-on-year increase, reaching EUR 39 billion, and credit expansion of EUR 1.8 billion in the first half.
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Net interest income rose to EUR 990 million, with a net interest margin of 2.2%, exceeding the 2026 target of approximately 2.1%.
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Piraeus Bank SA ( PIRBF ) has been recognized as investment grade by all major international rating agencies, reflecting the strength of its financial profile.
Negative Points
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Uncertainty remains elevated globally due to geopolitical developments and energy market volatility, which could impact future performance.
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The bank's guidance for net interest income and fees implies a lower quarterly run rate in the second half, reflecting a conservative outlook.
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There was a slight uptick in the cost of risk, with guidance increasing from 50 to 60 basis points for 2026, indicating potential challenges in maintaining asset quality.
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The solvency ratio of Ethniki Insurance decreased to 162%, which may require future adjustments to maintain capital strength.
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Despite strong fundamentals, Piraeus Bank SA ( PIRBF ) trades below EU banks with similar earnings, indicating potential undervaluation in the market.
Q & A Highlights
Q: Regarding your updated guidance, it seems that the guidance for NII and fees implies a lower quarterly run rate in the second half. Is this a reflection of product guidance or are you anticipating specific revenue headwinds? Also, on earnings per share, are there other headwinds beyond the cost of risk? A: The guidance reflects our conservative view due to geopolitical developments and uncertainties in the broader environment, rather than company-specific issues. We remain cautious and will update guidance based on third-quarter developments. Regarding ethnic insurance, the first half's performance is expected to be sustainable, with no significant seasonality or non-recurring items affecting the second half.
Q: On NII, are there any one-offs or non-recurring items to highlight? Also, can you comment on your loan lending pipeline for the coming quarters? A: The NII performance is purely organic with no one-offs, driven by volume growth and risk-free adjustments. Regarding the RRF, we have EUR2 billion contracted, with EUR1 billion disbursed. The remaining EUR1 billion will be disbursed over the next few quarters, supporting organic growth across sectors.
Q: Should we expect the next capital return announcement with full-year results, or would an interim distribution be considered? Also, could you explain the increase in the cost of risk guidance for 2026? A: We are on track for the 2026 distribution promise, with an interim distribution likely before the full payment. The cost of risk guidance increase reflects adjustments from Q2 experiences, but it does not alter our long-term outlook. We will provide updated guidance with full-year results.
Q: You showed strong deposit growth in Q2. How much of this is business as usual versus temporary corporate actions? Also, are you comfortable upgrading the 2028 revenue from services target? A: About 50% of the deposit growth was due to corporate activity, with the rest being organic. We will provide guidance for future years closer to the end of the year, so no upgrades to the 2028 target at this time.
Q: Could you comment on the slight uptick in the cost of risk this quarter and the NPE ratio? Also, regarding ethnic insurance, the solvency ratio decreased slightly. What was the reason, and will it affect capital upstream to the group? A: The uptick in cost of risk is due to charges related to macro adjustments and the Cacelli Law. The decrease in the ethnic insurance solvency ratio was due to the repayment of an 81 instrument, which will be reissued in Q3, restoring the ratio. The current solvency allows for potential capital upstreaming, adding 10 basis points to CET1.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
