Athens, Greece. Wood & Company published an analysis of Greek and Cypriot banks, focusing on valuation, profitability and shareholder distributions. The findings were shared by Greek business outlet Newmoney.
Shift in market valuation and sector outlook
Wood & Company said the market has begun to value Greek banks for recurring profitability and sustained capital returns. It maintained buy ratings across all banks under coverage, while saying the sector can no longer be viewed as a single trade because National Bank of Greece, Eurobank, Piraeus Bank, Alpha Bank, Optima Bank and the Bank of Cyprus have distinct risk and return profiles.
Valuations and 2026 expectations
The investment house said valuations are no longer deeply discounted, with the average Greek and Cypriot banking group expected in 2026 to trade at 1.4 times tangible book value, a return on equity of 15.2 per cent, a price to earnings ratio of 9.8 times and a dividend yield of 5.1 per cent. It compared those figures with 1.6 times, 15.3 per cent, 10.2 times and 5.4 per cent respectively for the European peer group.
Drivers of potential further upside
The analysis said the next phase of upside cannot rely on the historical narrative of cheap valuations and must be supported by evidence of sustainable earnings generation, consistent capital distribution and high returns on tangible equity even in a lower interest rate environment.
National Bank of Greece
Wood described National Bank of Greece as the cleanest quality and lowest risk option, raising its target price to €17.80, implying 22 per cent upside and 28 per cent total expected return. It cited the bank’s strong capital position, low-cost deposit base, distribution visibility and partnership with Allianz as supporting what it called one of the clearest capital return stories in Greece. The report also pointed to the bank’s new core banking system as a potential long-term competitive advantage in the age of artificial intelligence.
Eurobank
Eurobank was presented as the most balanced quality play, with a target price of €4.90, implying 23 per cent upside and 29 per cent total expected return. Wood said the market continues to apply an excessive complexity premium due to exposure in Cyprus and Bulgaria, the integration of Hellenic Bank and insurance activities, while adding that Eurobank combines high profitability, low deferred tax asset intensity and one of the strongest recurring fee platforms in the sector.
Which of the banks covered in the report do you want to learn more about?
