Greek Banks

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

In Greece, the discussions between the four systemic groups and the system supervisor regarding the distribution of dividends from last year's profits are reaching their final stages, with favorable terms

Eurobank became the first completely restored private bank, with the repurchase of the state's stake (1.8%) in October 2023.

Demand for Greek assets remains high, as reflected in recent market transactions, with upward macroeconomic prospects, low domestic political risk, and positive catalysts, JP Morgan notes

Except for Eurobank, for which it retains the target price at €2.60, JP Morgan has increased its target prices for Alpha Bank to €2.50 from €2.20, National Bank of Greece to €8.40 from €8.10, and Piraeus Bank to €5.00 from €4.65

Optimism pervaded discussions about dividend distribution from 2023 profits, with talks with regulators in preliminary stages.