Greek banks continue to be an appealing prospect for foreign investors, Deutsche Bank (DB) notes in its analysis, raising the target price for Alpha Bank to 2.20 euros, from 2.15 euros previously, for Piraeus Bank to 4.20 euros, from 3.95 euros, for Eurobank to 2.55 euros, from 2.40 euros, and for National Bank of Greece to 8.95 euros, from 8.30 euros previously.

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).

According to the Frankfurt-based multinational investment bank, the Greek banks’ positive share yields over the year reflect this optimistic investment sentiment, adding that although equity prices are not low, there still appears to be room for a further uptick.

The German bank picks out Eurobank in its analysis, which is now its top choice, referencing its structural strength and greater potential for a further share rise, focusing on the ongoing acquisition and consolidation process of Hellenic Bank (HB) in Cyprus.

The following projections, according to Deutsche Bank’s analysis reaffirm its positive outlook on Greek bank:

  • Likely robust loan growth in the coming years, above mid-single-digit percentages, will make a significant difference compared to the rest of Europe.
  • This, in turn, will contribute to better prospects for 2024-26, with intense activity, controlled costs, and declining forecasts offsetting the impact of the normalization of net interest income (NII), which could entail further consensus upgrades.
  • Finally, higher liquidity has paved the way for larger investors, who are more willing to absorb securities in the market.