Optima bank (OPTIMA) Q4 2024 earnings summary

Executive summary

• FY 2024 net profit reached €140.2m, up 36% year-over-year, with strong growth in loans (+49%) and deposits (+45%).

• ROTE improved to 25.3%, among the highest in Greece and Europe, and CET1 ratio stood at 14.4%.

• Asset quality remained high, with NPE ratio at 0.85% and total assets grew by 43% year-over-year to €5.5bn.

• Net interest income rose 34% to €189.9m; net fee income increased 29% to €41.3m.

• Cost-to-income ratio improved to 25%, the lowest in the Greek market, indicating strong efficiency.

Financial highlights

• Total income for FY 2024 was €254.7m, up 32% year-over-year; pre-provision income grew 45% to €196.8m.

• Operating expenses increased 2% to €57.9m, with staff costs up 7% and G&A costs down 12%.

• Impairments rose to €20.6m (+107% YoY), and cost of risk increased to 0.67%.

• Loans reached €3.7bn (+49% YoY), deposits €4.6bn (+45% YoY), and AuM €4.2bn (+25% YoY).

• NIM was 4.04% (down from 4.39% in FY 2023), with margin pressure in Q4 due to timing mismatch.

Outlook and guidance

• 2025 targets include net profit above €160m, ROTE above 22%, and net loan growth of ~€1.0bn.

• Deposit growth targeted at ~€1.25bn, cost-to-core income ratio below 30%, and NPE ratio below 1.5%.

• Two new branches planned for 2025 to support deposit and loan growth.

• Tier 2 capital instrument of ~€150m planned in 2025 to support growth.