Greek Banks Post Strong Profits, Boosting Market Confidence

08:52 18/11/2024 - Πηγή: iEfimerida

Greek banks have reported robust profitability for the first nine months of 2024, leading to increased earnings forecasts and dividend payouts for the year.

The four systemic banks – Alpha Bank, Eurobank, National Bank of Greece, and Piraeus Bank – are collectively projected to

achieve net profits of €4.5 billion next year.

During the January-September period, the four banks recorded combined profits of €3.49 billion, a 22.66% increase compared to €2.85 billion during the same period last year. This figure nearly matches the €3.65 billion total profit for the entire 2023 fiscal year.

Eurobank led the pack with profits of €1.14 billion (+15.8%), followed by National Bank of Greece with €985 million (+24.53%), and Piraeus Bank with €882 million (+52.86%). Alpha Bank reported a slight decline, with profits of €489 million (-1.7%).

The banks' strong performance is attributed to rising interest and fee-based income, as well as significant improvements in non-performing loan ratios.

These positive results have been met with optimism from global investment houses, with Fitch noting the sustainable profitability and S&P forecasting resilient operational earnings for 2024 and 2025.

Axia has described Greek bank stocks as "the ultimate buying opportunity in Europe," highlighting their low valuations and sustainable returns. Bank of America and UBS have also endorsed the sector, citing strong loan growth, attractive dividend yields, and resilient net interest income performance.

With analysts setting target prices ranging from €2.50 for Alpha Bank to €11.20 for National Bank of Greece, the banking sector is seen as a cornerstone of Greece's economic recovery and a promising prospect for investors.

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