JPMorgan retained its price target at €9 for Piraeus Bank shares, estimating it remains an attractive option for investors, despite its 87% increase since the start of the year following the bank’s Q3 results.
In its report, JPMorgan highlights that the Greek bank’s shares continue to trade at a “cheap level,” below 7xP/E (price-to-earnings ratio) and 1xP/TBV (tangible book value) based on 2027 estimates.
The Greek systemic bank’s reported €261 million earnings before tax (excluding one-offs) were above expectations, attributed to loan loss provisions and income from affiliates.
Net interest income (NII) matched market expectations, showing a 0.5% quarterly decline; fees were 2% lower, costs were 1% better, and loan loss provisions (LLPs) were 6% higher than the consensus estimate (slightly below JPM’s own forecast). Other non-core items offset the difference, resulting in pre-tax profit 1% below consensus.
The bank’s management also raised its 2025 guidance for normalized RoTE from ~14% to ~15% and expects to exceed the earnings-per-share (EPS) target of €0.80, with results already close to that level. JP Morgan projects around 15% RoTE and €0.83 EPS for 2025.
The NII guidance of €1.9 billion for 2025 is seen as “safe”, while the outlook for €1.9 billion in 2026 was reaffirmed. The CET1 pro-forma ratio stood at 14.61%, above both the market consensus (14.5%) and JP Morgan’s estimate (14.3%), rising 26 basis points quarter-on-quarter. Some balance sheet items offset the negative impact from DTCs/AT1s and others (which had reduced CET1 by 30 bps in Q2).
Piraeus Bank’s shares had underperformed other Greek bank stocks in the past month ahead of the Q3 results, but the figures appear generally positive, according to JP Morgan.
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