Piraeus Bank posts higher Q1 profit, sees minor impact from US tariffs

By Lefteris Papadimas

ATHENS (Reuters) - Greece's Piraeus Bank reported higher quarterly net earnings on Tuesday on strong fee income and said it does not expect a significant impact from U.S. tariffs.

Greek banks are benefiting as the country's economy rebounds from a decade-long debt crisis. It expanded by 2.3% last year on strong tourism and investment with only 4-5% if its exports heading to the United States, mainly agricultural products.

"The Greek economy is well positioned to navigate the current landscape," Chief Executive Officer Christos Megalou said in a press release, adding that the low exposure of Greek exports to the U.S., "implies manageable impact from tariffs".

Piraeus Bank, the country's third-largest lender by market capitalization, reported net earnings of 284 million euros ($321.77 million) in the first three months of the year, compared with a profit of 233 million euros in the first quarter of 2024.

Net fees were up 22% in the first three months of the year from a year earlier, to 160 million euros, while the bank's non-performing loan ratio fell to 2.6% at the end of March, from 3.5% a year earlier.

Its loan book expanded by 16% to 35 billion euros year on year.

As Greek banks see their net interest income falling due to the decline in interest rates in the eurozone, they are trying to diversify their income sources expanding in insurance business and wealth management.

Piraeus, which acquired the country's second-largest insurance company last year to boost the sale of insurance products through its network, reported quarterly net interest income of 481 million euros, down 7% year on year.

The bank will pay a dividend of 373 million euros or 0.298 euros per share for 2024. Greek banks got approval from the European Central Bank last year to distribute a dividend for the first time in 16 years.