Strong profitability, accelerated lending, and a shift toward high-margin activities paint the new picture of the Greek banking system, with Beta referring to a “confirmation of the sector’s structural upgrade” following the particularly strong first quarter of 2026.
According to Beta Securities’ analysis, all four systemic banks started the year with results above or close to their annual targets, confirming the sector’s positive investment track record.
National Bank of Greece reported net profits of €344 million and a return on equity (ROE) of 16.3%; Piraeus Bank reported profits of €281 million with a ROE of 14.6%; and Eurobank announced profits of €351 million and a return on tangible equity of 15.1%. Alpha Bank reported normalized profits of €221 million, while also maintaining its guidance for 2026 unchanged.
Beta Securities identifies three key pillars driving the sector’s momentum: strong credit expansion, explosive growth in fee income, and stabilization of net interest income (NII). Corporate lending—primarily in energy, renewable energy, shipping, tourism, and transportation—remains the key driver of growth, despite the uncertain geopolitical environment.
At the same time, banks are strengthening their presence in low-capital-intensive activities, such as bancassurance, asset management, and investment banking. National Bank of Greece has entered into a strategic partnership with Allianz, Eurobank is acquiring Eurolife, while Alpha Bank is accelerating its acquisition program.
The picture regarding asset quality remains strong, with non-performing loan ratios now at historic lows for all systemic banks. At the same time, capital ratios remain comfortably above regulatory requirements, while shareholder distributions are gradually increasing.
Beta Securities notes that the main risk for the sector remains the potential geopolitical deterioration in the Middle East. However, so far, indicators such as loan demand, tourism bookings, and shipping activity show no significant slowdown.
The brokerage firm’s top picks in the sector remain Alpha Bank, Eurobank, and Piraeus Bank.