Management Statement
“Piraeus Group is delivering profitable growth at scale and generates strong returns by expanding customer activity, building a more diversified financial services platform and investing in AI-powered productivity, while maintaining capital strength and a low risk profile.
The continuing conflict in the Middle East is adding uncertainty to the global and European economic outlook. Nevertheless, Piraeus is well positioned to navigate the evolving environment. Our resilience is underpinned by the strength of the Greek economy, which is expected to remain on a positive trajectory, supported by a credible fiscal framework, continued reform implementation and sustained investment mobilization. The recognition of Piraeus as investment grade by all major credit rating agencies, following the recent upgrade by S&P, further validates the progress we have made and the strength of our financial profile.
Piraeus delivered a strong financial performance in the first half 2026, generating 16% return on tangible book value and increasing tangible book value per share to €6.3. Our loan book expanded by €1.8bn, reflecting healthy demand across all business segments, while assets under management continued to grow, supported by strong net inflows. Ethniki Insurance also performed ahead of plan, with gross written premia increasing 7% yoy, at €0.4bn in the first half.
Net interest income increased 4% year-on-year, driven by solid asset growth. Revenues from services continued to gain momentum, supported by Ethniki Insurance, asset management, bancassurance and financing activities, and they now account for 32% of total revenues, demonstrating the successful evolution of Piraeus into a broader financial services platform.
We maintained strong discipline in efficiency, risk and capital management. Our cost to income ratio stood at the market-leading level of 34%, organic cost of risk remained controlled at 45 basis points and the CET1 capital ratio reached 12.8%, preserving substantial headroom above regulatory requirements and supporting our growth ambitions.
Building on our strong first-half performance, we are updating our full year targets. We now target a net interest margin of 2.2%, revenues from services above 0.90% of assets, 60bps CoR and a CET1 ratio above 13%. These targets reflect the momentum of our business and our continued focus on sustainable growth, prudent risk management and capital strength. The work undertaken in 2026 is laying the foundations for the achievement of even higher targets in the years ahead.
We are also accelerating our technology transformation through Newra, our dedicated AI Hub established in collaboration with Accenture. By embedding advanced AI capabilities across the Group, we aim to enhance customer experience, increase employee effectiveness, improve operational productivity and support sustainable long-term growth.
Finally, we are proud to have received five international distinctions at the Euromoney Awards for Excellence 2026, including Europe's Best Bank for Corporate Responsibility, for the second consecutive year, becoming the first bank to retain the pan-European title since the award's creation. We are also proud to have been included, for the sixth consecutive year, in the Financial Times’ Europe’s Climate Leaders 2026 ranking. These distinctions recognise the commitment of our people and our continued focus on responsible banking, sustainable value creation and positive impact for our customers and society.
Piraeus enters the second half of the year from a position of strength. We remain focused on delivering our strategic priorities with discipline, supporting our customers and the Greek economy, investing in our people and technology, and creating sustainable value for all our stakeholders.”
Christos Megalou
Chief Executive Officer