WOOD Flash – Piraeus Bank: 1Q18 – weak NII offset by lower costs and provisions
Piraeus Bank reported its 1Q18 results yesterday (10 May), after the market closed, broadly in line with our estimates. The bottom-line loss stood at EUR 80m, but this includes a EUR 138m one-off loss for the VRS scheme (vs. the EUR 60m in our forecasts). If we exclude the VRS cost, the pre-tax profit came in at EUR 22m, in line with our estimate of EUR 19m. The overall trends in NII appear softer than our FY18E forecasts (the reduction could exceed 10% vs. the 7% drop in our estimates), but lower opex and cost of risk charges could surprise positively if the 1Q18 trends are maintained for the full year. Piraeus is the highest beta play in the Greek banking sector, with the stock trading at a P/TBV of 0.26x vs. an average of 0.40x on 2018E tangible book for its Greek peers. We retain our HOLD rating on the stock.Piraeus Bank is a banking institute. Co. and its subsidiaries provide services in the Southeastern Europe, Egypt, as well as Western European markets. Co. and its subsidiaries operate in four main business segments: Retail Banking, which includes the retail banking facilities; Corporate Banking, which includes facilities related to corporate banking; Investment Banking, which includes activities related to investment banking facilities of Co. and its subsidiaries, including investment and advisory services, underwriting services and public listings, and stock exchange services; and Asset Management and Treasury, which includes asset management facilities for clients.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.