Strong profitability and improved credit profile was presented by Greek banks in 2024. The highest net interest revenue and net supplies, coupled with strong functional efficiency and lower loan loss forecasts supported the results in 2024.

The capitalization of Greek banks was greatly strengthened in 2024, reflecting on the constant creation of profits, stronger balance sheets and capital management actions, a significant increase in loans and acquisition initiatives.

Banks’ high profitability paves the way for the expansion of distributions with higher dividends and the implementation of “more aggressive” repurchase programs.

The net profits of the four systemic banks in 2024 amounted to EUR 4,532 billion compared to EUR 3,645 billion in 2023, up 24.33%.

OR National It introduced in 2024 net profit of 1.158 billion from 1,106 in 2023 (+5%), Alpha Bank profits of EUR 860.9 million (+9.32%), Eurobank EUR 1,448 billion from € 1,140 billion (+27.02%) and Piraeus Earnings of € 1,066 (+35.28%).

The net income from interest, as expected, slowed significantly compared to 2023.

The four systemic banks in 2023 showed net income from interest of € 8.597 billion, € 8,093 billion in 2023 (+6.23%). National has achieved net interest from interest of 2.356 billion (+4.11%), Piraeus 2,088 billion (+4.24%), Eurobank 2.507 billion (+15.32%) and Alpha Bank 1,646 billion (-0.72%).

At the same time, net procurement revenue for the four banks amounted to EUR 2,149 billion from € 1,845 billion in the previous year (+16.48%).

Banks continued to reduce the NPS index (NPEs) last year.

Regarding the NPEs index, National reduced the index to 2.6% of loans from 3.7% in 2023, Eurobank to 2.9%, from 3.5%, Piraeus to 2.6% from 3.5% and Alpha Bank to 3.8% from 6.0%.

The credit expansion

The rate of credit expansion has moved over the initial expectations. Reduce interest rates, coupled with the good performance of the Greek economy and increasing investment in the country, has supported credit expansion, according to DBRS. In 2024, the four systemic banks increased their up -to -date loans and, by extension, their revenue basis by approximately € 13.8 billion, which is the strongest performance of the last 15 years, compared to $ 5.8 billion in 2023.

EUROBANK’s net credit expansion stood at 3.9 billion from 1.8 billion in 2023, in National at € 3.1 billion from € 1.3 billion in Piraeus at € 3.6 billion from € 1.5 billion and Alpha Bank at € 3.2 billion from € 1.2 billion in 2023.

Foreign houses estimates

Morgan Stanley says “Taurus” for Greek banks and estimates that their shares will increase by 25% while in a bullish scenario the rally can reach up to 50%. He points out that Greek banks remain cheaper than EU banks. Their valuations are still cheap as the P/E index for 2026 is 6.5x p/e ..

It increases the target price for Piraeus to 6.14 euros, for Eurobank pays € 3.18 for Alpha Bank EUR 2.64 and for the National Bank increases the target price to 10.66 euros.

Strong profitability and improved credit profile is viewed for Greek banks by DBRS Morning Star ratings and notes that the highest net interest from interest (NII) and net supplies, coupled with strong operational efficiency and lower lending predictions.

It increases target prices for systemic banks and maintains a market for UBS. It raises the target price for Alpha Bank to € 2.68 from € 2.42 previously for Eurobank, sets the target price of € 3.20 from € 3 previously, for the national target to € 11.6, from € 11.2 and for Piraeus Bank to € 6.30 from € 5.70.

It upgrades its predictions for Piraeus after the strong results of 2024, JP Morgan and sets a new price of 6.30 euros. Comparing Piraeus with the Banks of Southern Europe, Piraeus has one of the lowest NPEs). US Investment Bank Jefferies is increasing the target price for Piraeus to € 6.25 from € 5.80, maintaining the purchase setting up, while highlighting 9% dividends and the stock is negotiable in attractive terms.

US Investment Bank Jefferies has upgraded the target price for Alpha Bank, with the target price for the share increasing to 3.20 euros from 2.70 euros and the recommendation being Buy. The US bank “sees” a dividend distribution of € 1.4 billion to shareholders in the period 2025-2027.