Athens, Greece. Greek banks remain in a strong position despite recent weakness in their share prices, according to fresh assessments by Jefferies and UBS after meetings with bank management teams in Athens. Both investment houses kept positive recommendations for the sector.
Outlook for 2026
In a report shared by Greek business outlet Newmoney, Jefferies analyst Alexander Demetriou said management teams at the country’s major lenders appeared comfortable with the outlook for 2026. He pointed to strong credit expansion, improving revenue diversification and stable asset quality.
Jefferies maintained buy recommendations for Alpha Bank, Eurobank, National Bank of Greece and Piraeus Bank, saying the sector’s underlying performance remains stronger than recent market movements suggest.
Deposits and liquidity
According to the report, Greek banks do not currently see any meaningful intensification in competition for deposits, despite some customer funds gradually shifting towards mutual funds.
Jefferies said the sector continues to benefit from strong excess liquidity, which helps contain funding costs and allows lenders to retain greater pricing flexibility.
Insurance as a growth area
The report also highlighted insurance activities as a major new growth pillar for Greek banks. Jefferies said the Greek insurance market remains relatively underpenetrated compared with the rest of Europe, creating room for further expansion by the banking sector.
Both Piraeus Bank and Eurobank reportedly referred to potential capital benefits from the Danish Compromise framework linked to recent insurance transactions, with those gains expected to materialise around 2028.
Acquisitions and loan growth
The banks were described as disciplined regarding acquisitions, saying any deals must strengthen earnings and provide clear strategic value.
On re-performing loans, both National Bank of Greece and Piraeus Bank identified opportunities for non-organic loan book growth.