Piraeus Bank (BPIRY) AI Stock Analysis

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Piraeus Bank

(OTC:BPIRY)

Rating:83Outperform

Price Target:―

Piraeus Bank's overall stock score is driven by its strong financial performance, attractive valuation, and positive earnings call insights. The bank has demonstrated significant revenue and profit growth, alongside a strong balance sheet. Despite technical indicators suggesting an overbought condition, the bank's robust fundamentals and favorable valuation support its stock's potential for continued growth.

Piraeus Bank (BPIRY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$9.57B

Dividend Yield4.34%

Average Volume (3M)56.26K

Price to Earnings (P/E)7.9

Beta (1Y)0.79

Revenue Growth40.76%

EPS Growth49.22%

CountryUS

Employees7,772

SectorFinancial

Sector Strength79

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.24

Shares Outstanding1,250,367,200

10 Day Avg. Volume3,435

30 Day Avg. Volume56,264

Financial Highlights & Ratios

PEG Ratio-0.01

Price to Book (P/B)0.24

Price to Sales (P/S)0.00

P/FCF Ratio-0.22

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$6.72

Price Target Upside-12.27% Downside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Piraeus Bank Business Overview & Revenue Model

Company DescriptionPiraeus Bank (BPIRY) is a prominent financial institution in Greece, offering a wide array of banking services and financial solutions. Established in 1916, the bank operates primarily in the retail and commercial banking sectors, providing services such as savings and checking accounts, loans, credit cards, and investment products. With a strong presence in the Greek market, Piraeus Bank caters to individuals, small businesses, and corporate clients, striving to deliver comprehensive and innovative banking solutions.

How the Company Makes MoneyPiraeus Bank generates revenue primarily through interest income, which is earned from lending activities including personal loans, mortgages, and business loans. The bank also earns non-interest income from fees and commissions related to banking services, asset management, and transactional fees. Additionally, investment income contributes to its earnings, derived from the management of its investment portfolio. Piraeus Bank leverages its extensive branch network and digital platforms to enhance customer engagement and streamline operations, which are significant factors in maintaining its revenue streams.

Piraeus Bank Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: 36.54%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance with robust profit growth, an increase in dividends, and expansion in both loan books and assets under management. The acquisition of Ethniki Insurance is expected to further diversify revenue. However, concerns about declining net interest income and sensitivity to rate cuts were noted. Overall, the positive aspects significantly outweigh the challenges.

Q1-2025 Updates

Positive Updates

Strong Net Profit Growth

Piraeus Financial Holdings reported a net profit of EUR 284 million for Q1 2025, reflecting a 22% increase year-on-year.

Dividend Increase

The Annual General Meeting approved a cash dividend of EUR 373 million for 2024 results, or EUR 0.30 per share, up from EUR 0.06 last year.

Loan Book Expansion

The loan book expanded by EUR 5 billion over five quarters, a 16% year-on-year increase, reaching EUR 35 billion.

Asset Under Management Growth

Assets under management rose to EUR 12.5 billion in the first quarter, a 25% year-over-year increase, surpassing the 2025 target.

Ethniki Insurance Acquisition

Piraeus entered a share purchase agreement to acquire a 90% stake in Ethniki Insurance for EUR 600 million, expected to be accretive to EPS and return on tangible equity.

Strong Capital Ratios

CET1 ratio reached 14.4%, comfortably above the management target of 13%.

Negative Updates

Net Interest Income Decline

Net interest income declined by 7% year-on-year, impacted by a significant drop in interest rates.

Potential NII Sensitivity

Concerns were raised about the sensitivity of net interest income to further interest rate cuts.

Company Guidance

In Piraeus Financial Holdings' first-quarter 2025 call, CEO Christos Megalou detailed several key financial metrics that underscore the bank's strong start to the year. The bank reported a net profit of EUR 284 million, reflecting a 22% increase year-on-year, with earnings per share at EUR 0.22. The bank's loan book expanded by EUR 1.1 billion during the quarter, contributing to a 16% year-on-year growth, reaching EUR 35 billion. Piraeus also achieved a return on average tangible book value of 14.7%, surpassing the 2025 target of around 4%. Furthermore, the bank's cost-to-core income ratio was a competitive 35%, and its NPE ratio stood at 2.6%, with a cost of risk at a historic low of 35 basis points. Additionally, assets under management grew to EUR 12.5 billion, a 25% increase year-over-year, and the CET1 ratio reached 14.4%. Overall, the bank is on track to meet or exceed its annual financial targets, including a projected earnings per share of approximately EUR 0.80 for 2025.

Piraeus Bank Financial Statement Overview

Summary

Piraeus Bank demonstrates a solid financial performance with strong revenue growth and improved profitability in the income statement. The balance sheet shows financial stability with low leverage, while the cash flow statement highlights efficient cash management and strong operational cash flow.

Income Statement

Very Positive

Piraeus Bank has demonstrated strong financial performance with a significant increase in total revenue from 2023 to TTM (Trailing-Twelve-Months). The gross profit margin and net profit margin have notably improved, indicating efficient cost management and profitability. The bank has also shown impressive revenue growth, contributing to a robust EBIT margin. These positive trends highlight the bank's successful operational strategies and sound financial management.

Balance Sheet

Positive

The balance sheet of Piraeus Bank reflects a solid equity base and a strong liquidity position, with a substantial amount of cash and cash equivalents. The debt-to-equity ratio is favorable, indicating prudent leverage management. Additionally, the return on equity has improved, showcasing the bank's ability to generate profits from its equity base. Overall, the bank's financial stability and low leverage present a strong balance sheet position.

Cash Flow

Positive

Piraeus Bank has shown significant improvement in cash flow generation, with strong operating cash flow supporting its financial activities. The bank's free cash flow has grown impressively, indicating efficient capital management and operational success. The operating cash flow to net income ratio is healthy, reflecting effective cash conversion. These factors demonstrate the bank's ability to sustain and manage cash flows effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.08B	3.78B	2.31B	2.30B	2.31B	1.88B
Gross Profit	2.87B	2.76B	2.58B	2.30B	2.31B	1.88B
EBITDA	413.00M	0.00	0.00	0.00	0.00	0.00
Net Income	1.12B	1.07B	788.00M	950.00M	-3.01B	-664.00M
Balance Sheet
Total Assets	78.82B	79.13B	76.45B	74.64B	79.79B	71.56B
Cash, Cash Equivalents and Short-Term Investments	7.29B	8.86B	10.19B	10.01B	15.82B	9.25B
Total Debt	4.42B	4.62B	8.04B	1.89B	2.01B	1.53B
Total Liabilities	70.23B	71.77B	69.10B	68.06B	73.99B	64.36B
Stockholders Equity	8.52B	8.22B	7.30B	6.55B	5.79B	7.05B
Cash Flow
Free Cash Flow	-6.86B	-4.37B	611.00M	-7.07B	3.87B	6.20B
Operating Cash Flow	-6.53B	-4.05B	779.00M	-6.90B	4.00B	6.29B
Investing Cash Flow	-384.00M	479.00M	-698.00M	763.00M	573.00M	-1.12B
Financing Cash Flow	1.00B	1.28B	786.00M	-292.00M	2.23B	402.00M

Piraeus Bank Technical Analysis

Technical Analysis Sentiment

Positive

Last Price7.66

Price Trends

50DMA

6.37

Positive

100DMA

5.74

Positive

200DMA

4.86

Positive

Market Momentum

MACD

0.35

Negative

RSI

76.63

Negative

STOCH

99.98

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BPIRY, the sentiment is Positive. The current price of 7.66 is above the 20-day moving average (MA) of 6.87, above the 50-day MA of 6.37, and above the 200-day MA of 4.86, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 76.63 is Negative, neither overbought nor oversold. The STOCH value of 99.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BPIRY.

Piraeus Bank Peers Comparison

Overall Rating

UnderperformOutperform

Sector (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPIRY	83 Outperform	$9.57B	7.95	14.97%	4.34%	40.76%	49.22%
EGFEY	80 Outperform	$13.54B	8.52	16.98%	3.20%	24.26%	10.29%
TBBK	78 Outperform	$2.95B	14.24	26.52%	―	18.52%	21.05%
CUBI	74 Outperform	$2.00B	15.95	8.14%	―	-5.67%	-44.11%
Sector *	67 Neutral	$16.77B	11.73	9.77%	3.75%	12.07%	-8.28%
FFWM	52 Neutral	$450.65M	―	-8.68%	0.18%	3.61%	65.61%

* Financial Sector Average

Performance Comparison

BPIRY

Piraeus Bank

7.66

3.70

93.43%

CUBI

Customers Bancorp

63.47

4.82

8.22%

TBBK

Bancorp

63.08

17.88

39.56%

FFWM

First Foundation

5.47

-0.18

-3.19%

EGFEY

Eurobank Ergasias SA

1.84

0.75

68.81%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 26, 2025