Piraeus Bank reports jump in 2024 profit

ATHENS (Reuters) -Piraeus Bank, Greece's third-largest lender by market value, on Monday reported a double-digit rise in 2024 earnings on higher net interest income and lending, and said it expected a similar profit figure through to 2028.

The bank posted a net profit of 1.1 billion euros ($1.15 billion), up from 788 million euros in 2023. Earnings per share rose by an annual 38%, to 0.81 euros, while the loans portfolio increased 12% to 33.7 billion euros.

Piraeus said in a statement that it expected profit of about 1.1 billion euros every year up to 2027, rising to about 1.3 billion euros by 2028.

Greek banks are steadying and returning to profit after they were nationalised following a financial meltdown in late 2009 due to the country's debt crisis, and needed several capital injections from the government.

Greece's lenders received European Central Bank approval last year to resume dividend payments for the first time in 16 years after they cut bad loan ratios, reduced state ownership, and returned to profit.

Piraeus announced a dividend payout to shareholders of 35% on its 2024 profit and Chief Executive Christos Megalou said this will rise to an annual 50% by 2028.

"The key pillars of our strategy are profitable growth of client assets, sustained mid-teen returns and more than 2 billion euros for our shareholders by 2028," Megalou said in the statement.

Piraeus, which is in talks with CVC Capital Partners to acquire 70% of Ethniki Insurance, reported net interest income of 2.08 billion euros for 2024, up 4% year on year.

($1 = 0.9532 euros)

(Reporting by Antonis Pothitos and Angeliki Koutantou, Editing by Louise Heavens and Rachna Uppal)