PIRAEUS BANK GROUP’S
EPS after tax
9M 2002 CONSOLIDATED FINANCIAL STATEMENTS:
€ 0,33
6,8% INCREASE IN NET PROFIT
+6,8%
€ 0,30
After-tax earnings per share for Piraeus Bank Group increased by
6,8% in 9M 2002 compared to 9M 2001. Specifically, after-tax profit
attributable to Piraeus Bank’s shareholders for 9M 2002 reached €
9m '02
9m '01
54,4 mn against € 51,0 mn in 9M 2001, an increase of 6,8%. As a
result, earnings per share were € 0,33 in 9M 2002 against € 0,30 in
Profit after tax (€ mn)
9M 2001.
+33,6%
+6,8%
70,6
52,8
54,4
This profit increase is a result of the improvement of operating
51,0
revenues (net interest income), and the containment of costs.
Therefore, operating profit (excluding results on financial operations,
provisions and extra-ordinary results) for 9M 2002 amounted to €
Group
9m '02
109,0 mn versus € 61,3 mn in 9m 2001, an increase of 77,6%. This
Shareholders
improvement, which is a result of organic growth, creates a solid
9m '01
base for the Group’s future growth.
Piraeus Bank Group
(€ mn)
Assets
Sept '02
Sept '01
14.273
11.059
Deposits & Repos
9.725
8.846
Gross Loans
8.385
5.805
Equity
1.371
819
Branches
Staff
239
4.749
207
4.275
(€ mn)
Net interest income
Sept '02
The main characteristics of 9M results for Piraeus Bank Group,
versus the same period of the previous year, are the following:
 Increase of net interest income by 31,9%
 Improvement of net interest margin to 2,72% from 2,54%
 Decrease of general and administrative expenses (-4,0%)
Sept '01
271,0
205,5
Net commission income
64,3
68,3
Revenues from securities
18,5
12,2
5,5
59,9
Results on financial operations
Other operating income
 Increase of EPS after tax by 6,8%
 ROE of 16,2% before tax and 12,0% after tax
 Increase of the loan portfolio by 44,4%, significantly higher than
the market average.
13,3
3,8
Net Revenues
372,5
349,8
Staff expenses
Other administrative expenses
Other operating expenses
Depreciation
123,5
89,4
3,7
41,5
102,4
93,2
1,7
31,3
It must be noted that 2002 figures include the ETBAbank Group,
Profit before provisions
114,4
121,2
control of which was acquired on March 2002.
Profit before provisions, minus
Results on financial operations
109,0
61,3
Provisions
Extra-ordinary results
41,5
22,1
35,7
-2,4
The Group’s figures
Profit BT & MI
95,0
83,1
At the end of September 2002, the Group’s total assets were €
Minority Interests
Profit BT attributable to
Shareholders
21,6
4,8
73,4
78,3
Taxes
Profit AT & BMI
Minority Interests
Profit AT attributable to
Shareholders
24,5
70,6
16,1
30,3
52,8
1,8
54,4
51,0
 The retaining of capital adequacy ratio approx. to 12%.
14.273 mn against € 11.059 mn in the same period in 2001, an
increase of 29,1%. This is mainly due to the considerable increase in
gross loans by 44,4%, to € 8.385 mn from € 5.805 mn in 9M 2001.
As a result of the higher gross loans’ expansion, compared to the
increase in other assets, the assets mix improved, with gross loans
PIRAEUS BANK GROUP 9M 2002 RESULTS
1
accounting for 56,5% of total assets (from 51,5% last year), bonds
Growth rates (Sept. '02 - Sept. '01)
for 24,5% (from 29,8%), investments in securities for 5,3% (from
5,9%) and loans to credit institutions for 4,7% (from 3,3%).
44,4%
Loans
Piraeus Bank Group has a well-diversified loan portfolio. High growth
9,9%
Deposits
rates were observed for loans to SMEs (+48,3%) and housing loans
(+45,0%). At the end of September 2002, loans to individuals
29,1%
Assets
0%
10%
20%
30%
(mortgage and consumer credit) represented 28,1% of the total loan
40%
50%
portfolio of the Group. The Group’s non-performing loans constitute
4,75% of gross loans (the ratio increased considerably due to the
Loans breakdown by sector
acquisition of ETBAbank), while loan loss reserves fully cover
impaired loans and correspond to 80,1% of non-performing loans,
Consumer
credit
15%
one of the highest coverage ratios in the Greek banking market.
Manufacturing
19%
Handicraft
1%
Housing
13%
Trade
18%
Energy &
Transport
2%
Customer deposits including repos reached € 9.725 mn compared to
€ 8.846 mn a year earlier, an increase of 9,9%. Customer deposits
excluding repos were € 7.444 mn against € 6.207 mn a year earlier,
an increase of 19,9%, while repos, during the same period,
decreased by 13,5%.
Other
17%
State Constru-Shipping
7%
Firms ction
2%
6%
Total equity amounted to € 1.371 mn, representing 9,6% of total
assets. The total equity attributable to Piraeus Bank shareholders is
€ 633,0 mn (after marking to market the securities’ portfolio),
Equity (€ mn)
1.371
633
compared to € 578,9 mn at the end of December 2001.
683
579
The Group’s results
Total net revenues amounted to € 372,5 mn compared to € 349,8
mn a year ago, increased by 6,5%. It is worth noting that operating
income, i.e. net interest income and commissions, constitutes 90,0%
Sept. 2002
Group
Dec. 2001
Shareholders
results on financial operations) reached € 367,1 mn against € 289,9
in 9M 2001, an increase of 26,6%.
Net Revenues (€ mn)
+6,5%
372,5
349,8
of total net revenues. Core business (total net revenues excluding
+26,6%
Net interest income posted a growth of 31,9%, reaching € 271,0 mn,
367,1
289,9
versus € 205,5 mn in 9M 2001. Excluding interest on fixed-income
securities, net interest income increased by 69,6%. Net interest
margin (net interest income on average assets) improved and is now
2,72%, compared to 2,54% in 9M 2001.
Net Rev enues
9m '02
Net Rev enues (excluding trading
gains)
9m '01
PIRAEUS BANK GROUP 9M 2002 RESULTS
2
Net commission income amounted to € 64,3 mn, a decrease of € 4,1
Breakdown of net Revenues
mn or 5,9%. This reduction is an exclusive result of the substantial
Net interest
incom e
73%
90%
Net
com m ission
incom e
Results on
financial
operations
Other
operating
incom e
Incom e from
securities
reduction of revenues and income from investment banking
17%
activities. In contrast, commissions from commercial banking
activities reached € 61,2 mn against € 46,6 mn a year ago, an
increase of 31,3% and account for 71% of total commission income.
1%
Staff expenses reached € 123,5 mn, against € 102,4 mn last year,
4%
an increase of € 21,1 mn. The consolidation of ETBAbank has
increased this amount by € 19,0 mn, while excluding the effects of
5%
this consolidation staff expenses would have increased by € 2,1 mn
Net Interest Income (€ mn)
+31,9%
or 2,1%. Through a coordinated effort, other administrative expenses
decreased by 4,0% and reached € 89,4 mn compared to € 93,2 mn
271,0
a year ago, while excluding ETBAbank the decrease is even higher
205,5
(-12,6%). Other operating expenses were € 3,7 mn and the
depreciation and amortization expense was € 41,5 mn. The
efficiency ratio (cost to average assets) improved to 2,59%, against
2,82% a year ago.
9m '02
9m '01
Interest Income
q-o-q '02 (€ mn)
Provisions were € 41,5 mn against € 35,7 mn in 9M 2001, an
increase of 16,2%. Extra-ordinary results were € 22,1 mn, owing to
the liquidation of assets related to bad loans.
Pre-tax profit in 9M 2002 reached € 95,0 mn versus € 83,1 mn in 9M
149,8
Interest on
loans
143,2
144,4
2002, an increase of 14,4%. Pre-tax profit attributable to Piraeus
Bank’s shareholders for 9M 2002 was € 73,4 mn against € 78,3 mn
in 9M 2001, a decrease of 6,3%. After-tax profit attributable to
44,5
54,5
53,3
Q3 '02
Q2 '02
Q1 '02
Interest on
fixed
income
securities
Piraeus Bank’s shareholders for 9M 2002 was € 54,4 mn against €
51,0 mn in 9M 2001, an increase of 6,8%.
At the end of September 2002, Piraeus Bank Group possessed a
Commission breakdown (€ mn)
€ 86,2
network of 239 branches, out of which 29 are located abroad. It
should be also noted that the increase in branches has not caused
€ 88,4
an increase in personnel, due to improved human resources
16,5
35,4
management and the use of technology. The Group’s ATMs reached
8,5
6,4
61,2
46,6
Investment
banking
Asset
Management
Commercial
banking
9m '02
9m '01
314, while a full alternative network, that of winbank, the first and
most highly acclaimed electronic banking platform in Greece, is
servicing over 90.000 customers.
In the next few years, Piraeus Bank will benefit from the expansion
of the Greek banking market, which is still underdeveloped
PIRAEUS BANK GROUP 9M 2002 RESULTS
3
Sept '02
Sept '01
ROavA*
0,71%
0,65%
ROavE**
12,0%
9,2%
Net Loans / Assets
56,5%
51,5%
Net Loans / Deposits & Repos
82,9%
NPLs / Gross Loans
Loan loss reserves / NPLs
PBG Ratios
compared to that of the other E.U. countries. To reap the benefits,
Piraeus Bank Group will employ the following:
Profitability

the Group’s solid capital structure

the existence of the required infrastructure
64,3%

the dynamism of human resources,
4,75%
2,20%

its strategic alliance with ING, in the areas of bancassurance
80,1%
90,0%
2,72%
2,59%
2,54%
2,82%
3,69%
3,58%
35
28
Liquidity
Asset quality
and asset management,
Efficiency
Net interest margin (NIM)
Cost / avg assets
Total revenues (exc. trading)/ avg
assets

in 2003 in the prefecture of Attica (without an increase in
personnel), providing the Group with a competitive advantage
Productivity
Loans / branch
(mn euro)
(*) After-tax profit
(**)After-tax profit attributable to shareholders
239
0
its policy of continued cost containment.
The financial statements will be published on the press on
234
November 8th, 2002.
14
230
for increasing revenues, and

Number of branches
250
the relatively new branch network, which is expected to expand
214
210
220
196
190
Athens, 6 November 2002
170
150
Sept. 2002
Mar. 2002
Dec.2001
Piraeus
Dec 2000
ETBAbank
Number of Employees
4.749
4.783
534
5.000
4.500
4.249
4.000
4.333
4.302
3.500
3.000
Sept. 2002
Piraeus
Mar. 2002
Dec.2001
Dec 2000
ETBAbank
Winbank 's customers
90.000
+157%
+157%
35.000
Sept. 2002
Sept. 2001
PIRAEUS BANK GROUP 9M 2002 RESULTS
4