With a market capitalization of 52.5 billion and tangible equity capital of 33 billion euros, Greek banks are valued at 1.58 P/BV, which constitutes a realistic valuation...
Even in terms of P/E, with a market capitalization of 52.5 billion and profits of 5.1 billion, the valuation stands at 10.3, which is likewise realistic.
Based on capital and earnings, Greek banks are rationally valued and do not possess significant upside margins.
Profitability breaks records
In 2026 Greek banks will post profits of 5.1 billion and in 2027 profits are estimated at 5.5 billion euros.
Profits of 1.6 billion for Eurobank in 2026
Profits of 1.2 billion for Piraeus Bank in 2026
Profits of 1.3 billion for National Bank of Greece in 2026
Profits of 1 billion for Alpha Bank in 2026
The high profitability is a result of net interest income and a protective interest rate environment, as well as the elimination of NPEs from balance sheets...
Overall, the banking sector has become predictable; that is, no drivers exist that could alter the general picture.
The SSM, the Single Supervisory Mechanism of banks operating under the ECB, audits Greek banks regarding the 25 largest loans they have granted and may impose a stricter framework, but this does not alter profitability fundamentals.
Therefore, for 2026 they will distribute 2.35 billion in earnings via dividends, and 88% of these dividends will end up with foreign funds and shareholders, namely 2 billion euros...
The 9-month 2026 results will confirm the trend
On October 29, Eurobank announces its 9-month 2026 results.
Piraeus Bank and Alpha Bank follow on October 30, and National Bank of Greece on November 5, and the results they announce will confirm the trend.
www.bankingnews.gr
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