If banks want to maintain their profitability in the coming years, given the ECB’s interest rate cut, as it relies to a significant extent on interest-bearing loans, they will have to increase their loan portfolio.
Given the interest rate cut, strengthening credit expansion is the main lever for sustainable and strong bank profitability.
As Greek bankers reportedly told investors at the recent Greek investment conference organized in London by Morgan Stanley in collaboration with the Athens Stock Exchange, banks are targeting new loans of 10 billion euros in 2025.
Net credit expansion for 2024 will exceed 6 billion euros for the four systemic banks, as in the 9-month period of January-September 2024, at group level, the four systemic banks showed a cumulative increase in current loans by 5.7 billion euros. (Piraeus Bank loans 1.9 billion euros, Eurobank 1.8 billion euros, Alpha Bank 1.1 billion euros and National Bank 0.9 billion euros)
The bank managements revised the credit expansion for the rest of the year, which could range between 7 and 8 billion euros.
Greek banks are benefiting significantly from the Greek recovery story and the increase in corporate lending, according to estimates by international agencies.
SOURCE; ANA-MPA
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