Management Statement
2025 was a year of strong performance and strategic initiatives for Piraeus Bank. We continued to grow, posting strong net credit expansion, deposit inflows, and higher assets under management, while asset quality remains robust. In 2025, we generated 16% return over tangible equity with €5.9 tangible book value per share. Our top line exhibited resilience, as our loan portfolio increased by 11% year on year, with €4bn net credit expansion, meeting our 2025 target. We continued to create value for clients, who entrust us with the largest client asset base in Greece: €66bn deposits and €14.5bn assets under management.
Net interest income rose in the last quarter of the year, marking a reversal of the previous year’s trend, while fee income performed strongly, driven by lending activity and bancassurance. Net interest margin stood at 2.2%, while net fee margin reached the market-leading 1.0%. Operating efficiency ended up in line with the full-year target, with 34% cost-to-core-income ratio in Q4, while organic cost of risk was essentially flat compared with the prior quarter.
Our lending activity remains well diversified, with disciplined growth across corporate, SME, and green segments. Notably, mortgage lending recorded positive net credit expansion of €100mn in Q4, driven by renewed demand and our targeted and innovative products. “Spiti25” has attracted more than 1,500 applications, of total amount €200mn, in a few months.
We are disciplined stewards of capital and remain focused on shareholder value. In this context, total distribution is now upgraded to 55% of 2025 profits, from 50% previously, which translates to €0.40 cash dividend, on top of the interim distribution in Q4, amounting to €0.08 in the form of share buyback. Our capital ratios remain solid, post the Ethniki Insurance acquisition, supporting growth, distributions, and continued investment. Our total capital ratio stood at 18.7% in December 2025.
Looking ahead, we are navigating a normalising interest rate environment from a position of strength. Our revenue-diversifying efforts are clearly reflected on our fees over net revenue of 26%. Our disciplined approach to balance sheet management and hedging, supports sustainable growth.
We completed the Ethniki Insurance transaction in Q4, for a total consideration of €0.6bn in cash and consolidated it in the FY2025 results. The integration of Ethniki Insurance into the Piraeus Bank Group is expected to further diversify the Group’s revenue sources and enhance our commercial proposition. Regarding this, we will present a refreshed business plan with expanded fee and insurance capabilities.
Importantly, Snappi neobank made its debut in the Greek market in 2025 with promising traction of 60,000 customers in one quarter. Snappi’s value proposition is tailored to tech savvy users, promoting a branchless service model. At the same time, we continue to invest in digital transformation and sustainability initiatives at Piraeus, launching new fintech partnerships and green financing products that drive innovation, operational efficiency, and customer value.
In 2026, Greek GDP is projected to grow above the EU average, driven mainly by investment, consumer spending, and EU structural funds. Public finances continue to strengthen, with high primary surpluses, and a steady decline of the debt-to-GDP ratio, leading to further sovereign upgrades and reduced funding costs for banks.
We enter 2026 confident in our ability to deliver sustainable results. Our targets will be thoroughly presented during Piraeus Capital Markets Day that will be held in London, on Thursday, 5 March 2026.
Christos Megalou
Chief Executive Officer