Greek banks with Cyprus operations report strong second-quarter results
Eurobank and Alpha Bank supported upgraded targets after stronger lending, interest income and fee revenue across Greece’s systemic banks.
Nicosia, Cyprus. Greek banking groups with operations in Cyprus reported stronger-than-expected second-quarter results, supported by faster lending growth, resilient interest income and rising fee revenue.
NBG Securities maintained an “Outperform” rating on Eurobank and Alpha Bank, citing performance that supported upgraded annual targets despite heightened geopolitical uncertainty.
Second-quarter performance
Across Greece’s four systemic banks, net interest income reached €2.185 billion in the second quarter, up 3.9 per cent from the first quarter. Fee income rose 16.7 per cent to €778 million.
The increases lifted core banking revenue by 7 per cent to €2.963 billion.
Recurring operating expenses increased by 0.8 per cent, while core pre-provision profit rose 11.6 per cent to €1.922 billion.
Adjusted net profit across the four banks reached €1.357 billion, up 12.9 per cent quarter on quarter and 8.8 per cent above analysts’ expectations.
Outlook
The results indicate that the sector is generating more income from sources beyond traditional lending while keeping costs under control and maintaining relatively strong asset quality.
Moody’s Ratings estimated that the four systemic Greek banks generated combined net profits of about €2.5 billion in the first half of the year. It attributed the performance to stronger lending, faster fee-income growth and contained credit costs.
Moody’s expects profitability to remain high through 2026 and 2027.
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