Greece’s four largest banks are significantly outperforming their European peers and attracting strong buying recommendations from international investment houses, reflecting growing confidence in their robust profits and promising future prospects.
The resurgence marks a dramatic turnaround for a sector that endured years of financial crisis.
The country’s banking sector, led by Alpha Bank, Eurobank, Piraeus, and National Bank, has emerged as a top performer in the European Union, according to analysts from global firms including Goldman Sachs, UBS, Deutsche Bank, and Morgan Stanley. The Greek banks’ profits in the first quarter of 2025 exceeded expectations, with a combined net income of 1.22 billion euros ($1.32 billion), marking a strong start to the year. Alpha Bank reported 233 million euros ($252 million), Eurobank 349 million euros ($378 million), Piraeus Bank 284 million euros ($308 million), and National Bank 358 million euros ($388 million).
Investment houses attribute the banks’ strong profits to growing corporate lending, resilient net interest income, and tight cost controls.
Credit expansion to businesses jumped 14% in April, following a 15.9% rise in January and 16.7% in February, extending momentum from the first quarter.
Analysts note the banks’ ability to outperform stems from their strong pricing power and skill in navigating a period of lower European interest rates while simultaneously improving their return on equity.
The sector’s profits were further supported by robust net interest income, which stood at 2.06 billion euros ($2.23 billion) at the end of March, coupled with stringent cost discipline. Furthermore, excess capital is strengthening their capacity to pay dividends and pursue expansion.
Major international banks have responded by raising their price targets across the board for Greek bank shares. UBS set its price target for Alpha Bank at 3.15 euros, Eurobank at 3.3 euros, Piraeus Bank at 6.7 euros, and National Bank at 12.20 euros. HSBC raised its target for Alpha Bank to 3.75 euros, Piraeus Bank to 7.5 euros, National Bank to 11.8 euros, and Eurobank to 3.3 euros.
Deutsche Bank increased its view on Piraeus Bank to 6.65 euros and Alpha Bank to 3.35 euros, while Eurobank Equities raised its price for Piraeus Bank to 7.32 euros and National Bank to 11.94 euros.
Greece’s banks are experiencing a profound recovery after years of financial turmoil. Rising profits, strong capital positions, and growing credit expansion are significantly boosting their appeal to investors.
The industry currently trades at a discount compared to other European banks — a gap many analysts suggest signals further upside potential. The sector also benefits from a healthy pipeline of new lending opportunities and strong return on equity.
As the country’s economic recovery deepens and banks continue to consolidate their profits, analysts predict an increasingly strong outlook for 2025 and 2026. Rising corporate borrowing, a stable policy framework, and ongoing cost discipline are expected to drive further growth and enhance shareholder returns.