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Piraeus Bank reports lower Q2 profit on softer trading income

A guy walks past a Piraeus Bank branch in Athens, Greece, January 17, 2022. REUTERS/Louiza Vradi

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ATHENS, Aug 3 (Reuters) – Piraeus Bank (BOPr.AT) on Wednesday reported lower net earnings in April-to-June when compared to first quarter on comparatively lower trading income, but raised its guidance for the entire year as new loan disbursements topped targets.

Greece’s fourth-largest lender by market value reported net earnings from continued operations of 92 million euros ($94 million) following a profit of 521 million euros in the initial quarter.

Trading income in the initial quarter have been boosted by one-off gains booked in its sovereign bond portfolio along with other transactions.

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Loan impairment provisions fell 23% quarter-on-quarter to 117 million euros, with Piraeus reducing its ratio of so-called non-performing exposures (NPEs) to 9% from 13% in December 2021.

The group’s portfolio of performing loans expanded by 1.5 billion euros through the first half, exceeding its target for the entire year, while record fee income was generated, LEADER Christos Megalou said.

“We have been upgrading help with key financial aspirations for 2022. We have now shoot for an 8% NPE ratio, a lot more than 2 billion euros of performing loan growth, 11% fully-loaded core equity Tier 1 ratio and earnings per share of 0.35 euros,” Megalou said.

The targets have been 9%, 1.2 billion euros, 10% and 0.05 euros, respectively.

Excluding forgone income from NPEs, net interest income grew 3% year-on-year to 512 million in the initial half, supported by the performing loan book expansion and higher yields in its fixed income portfolio.

Piraeus Bank’s four-year business intend to 2025 aims to shrink non-performing exposures to 3.0% by that date and potentially start spending dividends from 2024.

The lender also aims for approximately 7.0 billion euros of new loan disbursements to attain financing book of 35 billion euros of performing credit by the finish of the time.

($1 = 0.9837 euros)

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Reporting by George GeorgiopoulosEditing by Mark Potter

Our Standards: The Thomson Reuters Trust Principles.

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