Piraeus Finl Hldgs Sa

Ladies and gentlemen, thank you for standing by. I am Maria, your chorus call operator. Welcome and thank you for joining the PDL's bank conference call and live webcast to present and discuss PDL's first half 2026 financial results. At this time, I would like to turn the conference over to PDL's bank CEO, Mr. Christos Megalou. Mr. Megalou, you may now proceed.

Good afternoon ladies and gentlemen and good morning to those joining us from the US. This is Christos Megalou, Chief Executive Officer of Paeus. I'm joined today by our CFO, Theodore Gnardellis, and our Head of Investor Relations, Xenophon Damalas. Thank you all for joining us for our first half 2026 results. The message today is simple. Paireus is delivering sustainable, profitable growth. We are generating strong returns, expanding customer activity, building a more diversified financial services group, and investing in technology and AI-powered productivity while maintaining capital strength Balanced resilience and a low-risk profile. These achievements are interconnected elements of a strategy that is transforming the quality of our earnings and strengthening the long-term value creation potential of the group. The first half of 2026 provides further evidence that this strategy is working, and based on our strong results, we update today our guidance. Before discussing our performance, let me briefly frame the environment in which we are operating. As you can see on slide 4, The Greek economy continues to outperform the Eurozone. Growth remains supported by a credible fiscal framework, continued reform implementation and sustained investment mobilization. At the same time, Greece continues to benefit from substantial European funding flows Declining debt ratios and ongoing improvement and economic fundamentals. Nevertheless, uncertainty remains elevated globally. The ongoing conflict in the Middle East, geopolitical developments and energy market volatility continue to influence the outlook for Europe and the global economy. Against this backdrop, strong balance sheets, diversified revenue streams, and disciplined risk management become even more important. This is where Paireus has positioned itself. Following the recent upgrade by S&P, Paireus is now recognized as investment grade by all major international rating agencies. This is an external validation of the transformation we have achieved and of the strength of our financial profile today. Turning now to our performance, on slide 5, we delivered record net profit of euros 617 million in the first half, corresponding to 47 euro cents earnings per share, placing us firmly on track to achieve our full year target of approximately 9 euro cents earnings per share. We achieved return on average tangible book value of 16% in the first half compared to 2026 target of approximately 15%. Importantly, this level of profitability is achieved with improving revenue mix and strong efficiency and asset quality metrics. We continue to deliver leading growth in Europe. Our loan book is up 9% year on year, reaching €39 billion. During the first half, credit expansion reached €1.8 billion, maintaining the strong momentum. Revenues from services grew 42% year on year, reaching 462 million euros in the first half, shaping at 100 basis points over assets, above the target of approximately 90 basis points over assets for 26. Importantly, 90% of those Cs are coming from investment, insurance and financing. We are converging to the best in class in Europe in the revenues from services metric. Net interest income rose to 990 million euros with net interest margin shaping at 2.2%, exceeding the 26th target of approximately 2.1%. Net interest income in the second quarter rose by 6% quarter on quarter to 509 million euros, Thank you for watching this video. Under management increased to 16.3 billion euros in the first half, up 24% year on year, with euros 1 billion net inflows already meeting our full year target. Furthermore, deposits rose by 9% annually and now stand at 68 billion euros, with the total cost at 38 basis points. Our cost-to-income ratio stands at 34%, confirming top-tier efficiency and on track to meet the 2026 target of below 35%. Asset quality dynamics remain solid with NPE ratio at 2.2%, organic cost of risk at 45 basis points, and NPE coverage at 67%.

Our capital position is strengthening.