2Q17 – gradual recovery trends

Piraeus Bank has reported 2Q17 pre-tax profit of EUR 7m (from continued operations) vs. our forecast for a break-even quarter. The key P&L items were broadly in line, with stronger trading income offsetting slightly higher provisions. The tangible book as of the end of June stood at EUR 7.3bn, or EUR 16.72/share, implying a P/TBV of 0.29x (vs. the Greek peer group average of 0.35x on 2017E tangible book). We believe that the bank is moving gradually in the right direction, but we would need to s...