Large Greek Banks: Further Strengthening of Credit Profiles in 2024 Paves the Way for More Strategic Flexibility

The commentary analyses the FY 2024 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.

Summary highlights from the commentary include:

-- Greek banks reported an aggregate net profit of EUR 4.3 billion in F2024, up 18% YOY.

-- Higher net interest income (NII) and net fees, coupled with strong operating efficiency and lower loan loss provisions have supported results in 2024.

-- Cost of risk was down in 2024, and risk profiles have strengthened thanks to benign asset quality dynamics and sustained loan growth.

-- The sector's funding and liquidity remains sound, capital buffers have strengthened, and the quality of capital has improved.

"Greek banks strengthened their credit profiles further in 2024 and are increasingly focusing on revenue diversification initiatives to reduce their reliance on NII" said Andrea Costanzo, Vice President, European Financial Institution Ratings. "While dividends and share buybacks remain a priority in the foreseeable future, Greek banks appear to be looking at other options to deploy capital, including mergers and acquisitions."