Piraeus Bank delivered a strong performance for the first nine months of the current year, with shareholder net profit rising 9% year-on-year to €893 million and core operating profitability hitting a record €930 million, up 14%. Earnings per share reached €0.68, a 10% annual increase, with the bank on track to achieve its target of approximately €0.90 for the full year 2026. Adjusted return on tangible equity stood at 15.4%, in line with the annual target of approximately 15%.
The bank is also proceeding with an interim dividend distribution of approximately €124 million in December, subject to regulatory approval, while management has signalled an upgrade of its 2027 targets.
Piraeus Bank: €2.2 billion in net loan growth
The performing loan portfolio reached €39.6 billion, up 8% year-on-year and 1% quarter-on-quarter. Net credit expansion totalled €2.2 billion in the nine-month period, with the bank remaining on track to exceed its target of more than €3 billion in loan growth for 2026. During the third quarter, loan disbursements amounted to €3.2 billion, of which €1.7 billion went to large corporates, €1.2 billion to small and medium-sized enterprises, and €0.3 billion to retail customers. Credit expansion was driven primarily by the corporate sector, with transportation and energy leading in new financing.
Mortgage lending also showed positive momentum, with net growth of €135 million in the nine-month period and total disbursements of €0.6 billion, up 37% year-on-year. In the third quarter alone, mortgage disbursements reached €189 million.
Customer deposits grew 9% year-on-year to €69.2 billion, at a total cost of 0.39%. Total customer funds stood at €86.1 billion at the end of September, marking a 10% annual increase and a 2% quarterly rise.
Assets under management grew 19% year-on-year to €16.9 billion, with net inflows of €1.3 billion in the nine-month period, already surpassing the full-year target. Positive market performance contributed more than €1 billion to the increase in assets under management.
Net interest income on the rise
Net interest income reached €1.532 billion in the nine-month period, compared to €1.426 billion in the same period of 2025. In the third quarter, it stood at €542 million, up 7% quarter-on-quarter and 15% year-on-year, driven by favourable interest rate dynamics and margin discipline. The net interest margin stood at 2.2% for the nine-month period, with management seeing scope to exceed its target of €2 billion in full-year net interest income for 2026.
Net fee and commission income amounted to €679 million, up 39% year-on-year. In the third quarter, it reached €217 million, a 33% annual increase. A significant contribution came from Ethniki Insurance, which recorded gross written premiums of €666 million in the nine-month period, up 4%.
Cost efficiency and capital adequacy
The cost-to-income ratio stood at 33% for the nine-month period and 32% in the third quarter, confirming the Group’s operational efficiency. Operating expenses declined 5% quarter-on-quarter to €231 million, while rising 10% year-on-year, mainly due to the integration of Ethniki Insurance.
The non-performing exposures (NPE) ratio fell to 2.0%, down from 2.2% in the previous quarter and 2.5% a year earlier. Non-performing exposures were reduced to €0.9 billion, compared to €1.1 billion in September 2025. The liquidity coverage ratio stood at 212% and the loan-to-deposit ratio at 65%, while the CET1 ratio reached 12.9%, up from 12.8% in the previous quarter. The total capital ratio stood at 18.6%, with a buffer of approximately 260 basis points above the total supervisory requirement for 2026.
CEO Christos Megalou’s statement
“The nine-month 2026 results confirm the strategic direction of Piraeus. We are building a diversified, high-return Group that combines best-in-class growth with high operational efficiency and a low-risk balance sheet. Earnings per share increased 10% to €0.68, fully on track to achieve our target of approximately €0.90 for 2026, while return on tangible equity stood at 15.4%.
The Group’s growth is broad-based and underpinned by continued credit expansion and growing contributions from fee income, insurance, and wealth management. The loan portfolio grew 8% year-on-year to €40 billion, one of the fastest growth rates in Europe, recording net credit expansion of €2.2 billion in the nine-month period. At the same time, we are further diversifying our revenue streams: fee income grew 39% year-on-year in the nine-month period and now represents 31% of total revenues, with significant contributions from Ethniki Insurance — which recorded €666 million in gross written premiums in the nine months — and from wealth management, where net inflows reached €1.3 billion over the same period.
Innovation is a central pillar of our strategy. Snappi, our digital bank, reached 260,000 users and €130 million in deposits in its first year of operation, attracting approximately €1 million in deposits per day, with seven new products launched since July. This momentum allows us to upgrade our medium-term ambitions for Snappi.
Discipline remains at the core of our operating model. The cost-to-income ratio stood at 33%, among the best in Europe; organic cost of risk was 57 basis points; and the NPE ratio declined to 2.0%. Organic capital generation continues to support both growth and shareholder distributions: the CET1 ratio stands at 12.9%, incorporating a provision for a cash distribution of €650 million from 2026 earnings, while an interim dividend of 10 cents per share will be paid in Q4, subject to regulatory approval. Investment-grade ratings from all major credit rating agencies validate this progress.
The ongoing conflict in the Middle East and rising bond yields in Europe are increasing uncertainty over global and European economic prospects. Nevertheless, the macroeconomic environment in Greece remains resilient, with fiscal stability, a continued reduction in public debt, and a high primary surplus. The Greek economy is expected to maintain a positive trajectory, supported by a credible fiscal framework, ongoing reforms, and sustained investment.
Our strong performance reinforces our confidence in achieving our 2026 targets, with upside potential in both net interest income and fee income — while laying the groundwork for an upgrade of our 2027 targets.
We are now targeting a net interest margin above 2.4%, fee income as a percentage of assets of approximately 0.9%, return on tangible equity above 15%, earnings per share growth of approximately 10% per year, and a CET1 ratio above 13.5%.
Finally, we are proud to have been certified as a Top Employer Greece for 2026 by the Top Employers Institute — the only Greek bank to receive this recognition.
We will continue to support our customers and the Greek economy, invest in our people and technology, and create sustainable value for all our stakeholders.”
