Read more Greek banks on a new growth trajectory – “attractive valuations” and acceleration of credit expansion
UBS maintains a clearly positive stance on Greek banks, emphasizing that the sector is one of the main beneficiaries of the country’s macroeconomic recovery and strong trends in corporate credit. As it points out, the next phase for the banking sector will be defined by capital utilization, through a combination of targeted acquisitions and increased distributions to shareholders, which can unlock additional value.
Particular emphasis is placed on the Recovery and Resilience Facility (RRF), which acts as a key catalyst for the investment cycle in Greece. The country has secured approximately 36 billion euros, of which around 25 billion have already been disbursed, strengthening liquidity and demand for bank financing in the medium term.
Structural credit expansion and revenue growth
UBS estimates that the Greek banking market is entering a structural credit growth cycle, with corporate credit expected to grow at a rate of approximately 8% annually through 2028. In this environment, net interest income is projected to accelerate, as loan growth will more than offset previous pressures from interest rates.
At the same time, the Swiss bank believes that net interest margins have already passed their lowest point, while income from commissions and other financial services is expected to strengthen significantly, supporting the banks’ overall organic profitability.
Credit risk under control and capital strengthening
Regarding Οι ελληνικές τράπεζες σε νέο ανοδικό κύκλο – «ελκυστικές αποτιμήσεις» και επιτάχυνση πιστωτικής ανάπτυξης
