What does the planning of Piraeus Bank for 2022 provide

By Leonidas Stergiou

The last moves to boost profitability and capital that had already started in 2021 will be completed within the first months of 2022, according to the plan of Piraeus Bank. The goal is to support the real economy, the utilization of the Recovery Fund and the profitability, with the return on equity being over 5%.

The main goal of Piraeus Bank’s strategic planning for 2022 is to finance the real economy with more than 6.2 billion euros, exceeding the amount of 6 billion in 2021. It is recalled that in 2021, the Bank exceeded the initial target for loans of 5.7 billion euros.

New loans

The new disbursements of 6.2 billion euros concern:

• € 1.3 billion in new retail banking loans, ie housing, consumer and small business loans.
• 4.9 billion euros in business loans.

All this in addition to utilizing the resources of the Recovery Fund for the financing of investment projects.

Increase in commission income

The goal also remains to maintain the strong momentum of 2021 in supplies centered on fund management, bankassurance activities and investment products. All this is aimed at achieving a return on tangible equity of more than 5% in 2022.

Loan sales

The sale of the leasing portfolio, with a gross book value of 0.5 billion euros, is expected to be completed in the first quarter of 2022, as well as the transfer of the shipping portfolio worth 0.4 billion euros. For shipping loans, it is recalled that the relevant transfer agreement was signed in December. Also, the completion of the deal “Thalis” is expected, ie the agreement for the sale of card acceptance services with the company Euronet.

In the second quarter of the year, the securitization of Sunrise 3, with a gross book value of 0.9 billion euros, will be completed, bringing Piraeus Bank to a single-digit percentage of red loans.

Synthetic securitizations

At the same time, synthetic securitizations of serviced loans for the release of funds are in progress. A section (called Hermes) of serviced loans and synthetic securitizations for the release of funds. In 2021, two synthetic securitizations took place, Ermis 1 and 2, which released funds of 0.2 billion euros and allowed the easing of weighted assets by 1.2 billion euros. The synthetic securitization of Hermes 3 is currently being prepared, with the aim of releasing funds of 0.2 billion euros. Within the first half of the year, another synthetic securitization will take place with a corresponding capital benefit.

Transformation

At the same time, the transformation program that will enhance productivity and efficiency is being accelerated, with an emphasis on digitization. Already, more than 90% of the transformation program called Sunrise has been completed, in terms of capital increase and reduction of NPEs.