Greek Banks

Another key topic of discussion with investors was the upgrade of medium-term guidance for the 2025-2026 period by several banks.

Looking ahead to the next three years, Euroxx predicts that Greek banks will lead in dividend payouts, with distribution yields exceeding 10%.

Bank of America (BofA) recently increased its target prices for several Greek banks, with the target price for Eurobank raised to €2.84 from €2.76.

The agency explains that fund disbursements through the banking sector will help offset pressures anticipated on interest margins beginning in 2025, due to expected rate cuts by the European Central Bank (ECB).

JP Morgan reiterated its analysis of DTCs, prompted by Piraeus Bank’s plan to accelerate their amortization.

Greek banks, it notes, are focused on mitigating the impact through strategic efforts like loan growth, increased fee income, and lower-than-anticipated deposit betas for 2026.

Attica Bank plans to raise €735 million to repay a Tier 2 bond and to support its growth.

As UBS notes, the financial institution sector in Greece presents an appealing prospect for higher profit margins for prospective investors, with shareholders reaping the benefits

Inter-bank direct payment system, via mostly smartphones, now obligatory for certain castes of occupations; 34 million transactions so far in 2024

In its report, DBRS analyzed Q1 results for the four major Greek banks—Alpha Bank S.A., Eurobank S.A., National Bank of Greece S.A., and Piraeus Bank S.A.

UBS maintained a buy recommendation for both the systemic banks

In his opening address, Chairman Gikas Hardouvelis stressed that the National Bank has turned a new chapter and is now a key player in advancing the domestic banking sector and the Greek economy.

Eurobank CEO Fokion Karavias also revealed that a public offer to acquire 100% of Hellenic Bank on Cyprus is underway

The Hellenic Competition Commission will focus on interest-bearing deposit rates - criticized as low - offered over past years by Greek banks

Greek banks received ECB approval to resume dividend payments after 16 years and a painful debt crisis.

Approximately 850-euro-million worth of loans in 2023 were issued via e-banking and mobile banking

It noted they offered a good prospect for investors due to recent underperformance

DB attributes the robust performance to multiple factors, including significantly improved profitability and resilience, as well as enhanced market liquidity following the allocation of shares of the Hellenic Financial Stability Fund (HFSF).

Ratings firm considered the strictest of its peers, and the only one that still hasn't restored Greece's sovereign rating to investment grade

In contrast, the Eurozone faces persistent challenges as evidenced by stagnant growth in the fourth quarter of 2023, registering a mere 0.1% annual increase