Deutsche Bank has set new, higher price targets for Greek and Cypriot banks, maintaining a “Buy” rating for Alpha Bank, Eurobank, National Bank of Greece, Piraeus Bank, and Bank of Cyprus in a report that reaffirms the firm’s positive outlook on the sector.
According to the German firm, banks in Greece and Cyprus continue to perform strongly, as they benefit from a macroeconomic environment that is more resilient and more growth-oriented than many European economies. Deutsche Bank emphasizes that credit expansion remains strong, mainly due to double-digit growth in corporate loans, a factor that creates room for positive surprises relative to management targets.
The firm raises its target price for Alpha Bankto €4.80 from €4.45, for Bank of Cyprus to €11.25 from €10.40, for Piraeus Bank to €10.15 from €8.95, for Eurobank to €5.00 from €4.35, and for National Bank of Greece to €17.10 from €15.95.
The largest increase is for Eurobank, up 14.9%, followed by Piraeus Bank with a 13.4% increase. For Bank of Cyprus, the increase is 8.2%, for Alpha Bank 7.9%, and for National Bank of Greece 7.2%.
Eurobank remains Deutsche Bank’s top pick, with a target price of €5.00 per share. The firm believes the bank has significant upside potential, leveraging its M&A strategy, strong profitability, and diversified international presence.
Based on the valuation table in the report, Eurobank shows a 26% upside potential relative to its June 4 price, the highest among the banks covered by Deutsche Bank. It is followed by Alpha Bank with a 22% upside, Bank of Cyprus with 19%, National Bank of Greece with 15%, and Piraeus Bank with 11%.
The firm’s positive outlook is based primarily on four factors:
- First, the strong growth in loans, with Greece recording a 6% year-over-year increase in March 2026 and business loans rising by 10%.
- Second, the stabilization of net interest margins, which supports the outlook for net interest income.
- Third, the acceleration of fee income, which enhances revenue diversification.
- Fourth, the controlled asset quality, with the cost of risk gradually moving toward more normalized levels.
Deutsche Bank estimates that net interest income can grow at a mid-to-high single-digit rate through 2028. This outlook is based on resilient loan growth, limited margin compression, and the ability of banks to benefit from better returns on assets.
At the same time, deposits remain a supportive factor, as funding costs remain under control and the sector’s liquidity is strong.
On the valuation front, the firm notes that Greek and Cypriot banks continue to trade at a discount to the European banking average, despite their strong stock market performance. Alpha Bank trades at 7.8 times estimated 2027 earnings, Eurobank at 7.7 times, Piraeus Bank at 8.6 times, Bank of Cyprus at 9.0 times, and National Bank of Greece at 9.1 times.
For Alpha Bank, Deutsche Bank sees an attractive valuation, strong operational improvement, and additional upside potential due to UniCredit’s stake. For Piraeus Bank, it highlights the ongoing operational recovery, revenue growth, and the contribution of National Insurance.
For National Bank of Greece, it acknowledges the strong capital position and the potential for increased capital returns, although it considers it the least preferred Greek bank due to its higher valuation. For Bank of Cyprus, it highlights the very strong capital base, high RoTE, and potential for high shareholder distributions.