Ready to make its final decisions over the weekend on the upcoming placement of the shares it owns in Piraeus Bank is the Financial Stability Fund (HFS).
According to most indications, the disposal of the entire public participation, which today amounts to 27%ot.gr, as reported by information from .
This is because from the contacts of the HFSF advisers with investors, a strong demand for the securities of the systemic group is recorded, which allows the completion of the transaction at a satisfactory price.
Everything will become clear after today’s closing of the AX session. The Board of Directors of the Fund is expected to meet on Saturday, so that by the opening of the market on Monday, it will announce the terms of the sale.
The most critical are related to the number of shares that will eventually be allocated, their allocation to institutional investors abroad and to individuals in Greece, but also to the price range, within which offers will be accepted.
Banking sources estimate that if the sale of 27% of the bank’s shares is qualified, the revenue for the public will exceed 1.2 billion euros.
The history of investments
It is noted that Piraeus Bank has one of the most impressive shooting stories of all time in Europe to show.
In the middle of the last decade, it had found itself with an index of non-performing exposures close to 50%, low organic profitability, liquidity problems and capital weaknesses, which led to its multiple support from the state.
After the successful completion of its transformation, however, under the management of CEO Christos Megalos, its prospects today are favorable.
In 2023 it showed a net profit of 800 million euros, while according to the three-year business plan presented recently, the net result will reach 900 million euros during this financial year and will be in the zone of 1 billion euros both in 2025 and and in 2026.
This assessment is based on forecasts for an average annual increase in its loan portfolio by 5% – 6% in the following years and for a 40% increase in net commission income over three years.
Its profitability will also be supported by the stabilization of its operating costs, as a result of the restructuring of the business development model, the successful voluntary exit programs and the reorganization of its network of stores.
In addition, it is estimated that the cost of credit risk will remain at low levels, after the consolidation of its assets. At the end of last year, the arrears ratio stood at 3.5% and is expected to drop to 2.5% soon.
Besides, the bank will proceed, once the necessary supervisory approvals are obtained, to distribute a dividend from the profits of 2023.
According to its financial statements, its amount will reach up to 79 million euros, an amount that corresponds to 10% of the net result of last year.
The goal of the group’s management is to increase it to 25% in 2024 and to 50% in 2025 and 2026.
Other banks are following
It is noted that after the privatization of Piraeus Bank, the HFSF will hold shares only in National Bank and Attica Bank.
Its participation in the first is formed after the successful placement of last November at 18% and from next June it is not excluded that the procedures for its sale will start.
It is recalled that the HFSF has committed not to sell any more shares of Ethniki until the end of May.
The management of the bank wants the fastest possible sale of the state participation, however the government has the final say.
In the best scenario, by the end of 2024 the HFSF will have left all four systemic groups.
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