Piraeus Bank: Earnings of 617 million in the H1 2026, capital reaches 7.27 billion – Megalou: Higher targets in coming years

Net profits for Piraeus Bank formed at 617 million euros for the first half of 2026, with tangible equity standing at 7.27 billion euros. Additionally, Piraeus announced it will distribute 494 million euros in cash from 2025 net profits, payable to shareholders on August 7, 2026.

Strong growth in loans and client assets

• 39 billion euros in loans, featuring a net credit expansion of 1.8 billion euros during the half-year, supported by all business sectors.
• The recovery in home loans continues, showing a net increase of 100 million euros in the half-year and new mortgage disbursements up 65% year-on-year.
• Customer deposits formed at 68.4 billion euros, marking a 9% increase on an annual basis.
• Client assets under management rose by 24% annually to 16.3 billion euros, with net inflows of 1.0 billion euros in the half-year, already reaching the annual target for AUM.
• Gross written premium production from Ethniki Asfalistiki stood at 424 million euros for the half-year, up by 7% year-on-year.

Sustainable profitability and shareholder returns

• Record profitability at 617 million euros, which corresponds to a 16% return on tangible equity, compared to the target of around 15% for 2026. Net profits formed at 336 million euros, up by 22% year-on-year.
• Earnings per share reached 0.47 euros, staying on track to achieve the annual target of 90 cents.
• Tangible equity per share formed at 6.3 euros, marking a 7% increase on an annual basis.
• Net interest income reached 509 million euros in Q2, up +6% quarter-on-quarter, driven by strong loan growth. H1 performance and current market dynamics support upgrading the 2026 net interest income target to 2.0 billion euros. 
• Net fee income increased to 251 million euros in Q2, with Ethniki Asfalistiki leading the overall growth in fees.
• Market-leading operational efficiency was maintained, with the cost-to-income ratio at 34% in the half-year while continuing to invest in expansion.
• Cash distribution of 494 million euros from 2025 net earnings will be payable to shareholders on August 7, 2026.

Balance sheet management supporting growth and a low-risk profile

• Controlled organic cost of risk stood at 45 basis points for the first half period.
• The NPE ratio formed at 2.2%, compared to 2.6% in the corresponding period last year, while NPE coverage ratio remained stable year-on-year at 67%.
• The loan-to-deposit ratio stood at 65%, supporting future business growth targets.
• Strong liquidity coverage ratio reached 207%, providing scope for further balance sheet optimization.

Capital ratios with significant buffers

• CET1 ratio reached 12.8%, up +20 bps quarter-on-quarter, backed by strong organic capital generation – remaining on track to exceed the target of ~13% for the year 2026.
• Total capital ratio formed at 18.6%, featuring a buffer of roughly 260 basis points above the total supervisory requirement for 2026, including P2G guidance metrics.

Megalou: We are updating our annual targets

For his part, Piraeus Chief Executive Officer Christos Megalou stated: "Piraeus is achieving profitable growth on a broad scale and generating high returns by expanding client activities, building a diversified financial services platform, and investing in productivity enhancements through artificial intelligence technology, while maintaining strong capital adequacy and a low-risk profile. The ongoing turmoil in the Middle East intensifies economic uncertainty globally and across Europe.
Nevertheless, Piraeus stands in a strong position to navigate the changing environment. The resilience of Piraeus is supported by the momentum of the Greek domestic economy, which is expected to maintain an upward trajectory, backed by a credible fiscal framework, ongoing implementation of reforms, and continuous investment mobilization. The investment-grade rating awarded to Piraeus by all major credit rating agencies, following the recent upgrade by S&P, validates our progress and the strength of our overall financial profile.
Piraeus demonstrated strong performance in the first half of 2026, delivering a return on equity of 16%, with increased tangible equity per share reaching 6.3 euros. The loan portfolio expanded by 1.8 billion euros, reflecting healthy demand across all business sectors, while assets under management continued to expand thanks to strong net inflows. The performance of Ethniki Asfalistiki exceeded targets, with gross written premiums rising 7% annually to 0.4 billion euros in the first six months.
Net interest income increased by 4% year-on-year due to robust asset growth. Fee income continued to gain ground, supported by Ethniki Asfalistiki, client asset management, bancassurance, and financing activities, now representing 32% of total revenues, demonstrating the successful transformation of Piraeus into a complete financial services group. We maintained strong discipline regarding operational efficiency as well as risk and capital management.
The cost-to-income ratio formed at 34%, representing the best level in the market, organic cost of risk stood at 45 basis points, while the CET1 ratio reached 12.8%, preserving a substantial buffer over supervisory requirements and supporting our long-term growth goals. Leveraging our strong first-half performance, we are updating our annual guidance. We now target a net interest margin of 2.2%, a fee-income-to-assets ratio above 0.90%, cost of risk at 60 basis points, and a CET1 ratio exceeding 13%.
These specific targets reflect the momentum of our operations and our continued focus on sustainable growth, prudent risk management, and solid capital strength. The work carried out in 2026 builds the foundation for achieving even higher targets in the coming years. We are also accelerating our technological transformation through Newra, the specialized artificial intelligence hub established in partnership with Accenture. By embedding advanced AI capabilities across the Group, we aim to elevate customer experience, enhance employee effectiveness, improve operational productivity, and support sustainable long-term growth.
Finally, we are proud to have received five international awards at the Euromoney Awards for Excellence 2026, including Europe's Best Bank for Corporate Responsibility for the second consecutive year, making us the first bank to retain this pan-European title since the award's inception. We are also proud to be included for the sixth consecutive year in the Financial Times ranking of Europe’s Climate Leaders 2026.
These honors come as recognition of our people's dedication and our continuous focus on responsible banking, sustainable value creation, and positive impact for our valued clients and society. Piraeus enters the second half of the year from a position of strength.
We remain focused on executing our strategic priorities with discipline, supporting our customers and the Greek economy, investing in our workforce and technology, and generating sustainable value for all of our stakeholders."

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