Christos Megalou, chief executive of Piraeus Bank, set out an ambitious five-year growth plan on Tuesday, pledging stronger profitability, higher dividends and a broader revenue base anchored by insurance, as Greece’s banking sector continues its post-crisis recovery.
Speaking at the bank’s annual shareholder meeting, Mr. Megalou said the group’s strategy for 2026 through 2030 will center on delivering sustainable earnings while boosting returns to investors. The bank is targeting a return on tangible equity of close to 18% by the end of the decade, with annual performance expected to range between 15% and 18%.
The plan hinges on steady underlying growth, with earnings per share projected to rise by roughly 10% annually. Management is also betting on tighter cost discipline, forecasting a cost-to-income ratio averaging around 30% over the five-year period—levels that would place the lender among Europe’s more efficient banks.
To reach those goals, Piraeus is accelerating its digital transformation, trimming expenses and channeling investments into technology and staff. A central pillar of the strategy is the integration of Ethniki Asfalistiki, the country’s largest insurer, which has already begun contributing to the bank’s consolidated results.
The acquisition is expected to diversify revenue by adding a stable stream of fee income from insurance products, while expanding the group’s offering beyond traditional banking into savings and protection solutions. Executives say the insurer will also benefit from cross-selling opportunities through Piraeus’s nationwide network, turning the business into a key driver of growth.
Mr. Megalou said the bank’s evolving business model—built on multiple income streams and a solid capital base—will allow it to significantly increase shareholder payouts. Piraeus aims to double its dividend per share to about €0.80 by 2030, up from roughly €0.40 tied to 2025 earnings.
Overall, the bank expects to return about €5 billion to shareholders between 2025 and 2030, subject to regulatory approval from the European Central Bank, underscoring renewed confidence in the outlook for Greek lenders after years of restructuring.
