The SSM gave the green light for the distribution of dividends by Greek banks. The dividend distribution by the four systemic banks is taking place for the first time in 16 years, and the total amount to be distributed on the basis of their request is estimated at around €870 million. 

The dividends to be distributed are distributed as follows:

- An amount of €million was approved for Alpha Bank (corresponding to 20% of the previous year's profit), of which 61 million will be distributed in the form of dividends and another 61 million will be allocated for the repurchase of shares.

- An amount of €79 million was approved for Piraeus Bank (corresponding to 10% of the previous year's profits), which will be distributed in the form of cash to shareholders.

- An amount of €342 million (corresponding to 30% of profits) is expected to be approved for Eurobank, which will be distributed in cash. - An amount of approximately €330 million (corresponding to 30% of profits) is expected to be approved for National Bank, which will also be distributed in cash.

Alpha Bank is the only bank that for this year has chosen to "break" the amount to be allocated in dividends and buybacks, a decision that, as explained by the group's CEO Vassilis Psalti, was taken because "the management considers it as an acceptable way to position itself on how it assesses the valuation of the bank's share, as it considers that there is a divergence between what the management considers to be the intrinsic value of the share and what the market suggests". The approval of this policy, according to Alpha sources, is a 'vote of confidence' for the bank, further putting its stock on investors' radar.

EUROBANK

Eurobank Ergasias Services and Holdings S.A. announces that it received approval from the European Central Bank (ECB) on 5.6.2024 to pay a cash dividend of €342 million, or €0.0933 per share. 

The amount corresponds to a 30% payout ratio of the net profit for 2023.  This is a significant milestone as it marks the first dividend distribution in 16 years, underscoring Eurobank's robust and well-diversified operating model, which is focused on creating value for its shareholders.

On the basis of strong financial performance and the successful implementation of strategic initiatives, Eurobank submitted an application, and it received approval. The CET1 ratio, adjusted for the proposed dividend, stands at 16.4% as of March 31, 2024, comfortably above regulatory requirements.

The final distribution of the dividend is subject to (a) the Board of Directors' proposal at the Annual Shareholders' Meeting and (b) the Annual Shareholders Meeting’s approval. The Annual Shareholders Meeting will take place on 23.7.2024.

ALPHA BANK

Alpha Services and Holdings S.A. received on June 5, 2024, the necessary supervisory approval for the distribution of €122 million out of 2023 profits. The amount equates to a 20% payout out of 2023 profits, and distribution is subject to the relevant approval by the Annual General Meeting (the “AGM”), including in relation to the share buyback.

As previously communicated to the market, Alpha Holdings’ intention is to distribute half of the amount, or Euro 61 million, in the form of a cash dividend, an equivalent of Euro 0.026 per share. The remainder will be used to conduct a share buyback under customary conditions and in accordance with all applicable laws. Supervisory approval for the cancellation of the shares that will be acquired by the company as part of the buyback program has already been received.

Supervisory approval for the reinstatement of distributions is a testament to the Greek banking system’s strong performance. Alpha Holdings has come on the back of the successful implementation of its business plan, with profitability reaching 13.5% in Q1 of 2024, fully loaded CET1 capital at 16.2% post-accrual for distributions and accounting for the benefits from the closing of pending transactions, and restored balance sheet resilience.

Alpha Bank’s CEO, Vassilios Psaltis, noted: “We are proud to return to our long history of rewarding our shareholders. Supervisory approval for the resumption of dividend payments is the final stamp of approval for the bank's full return to normality since the outburst of the financial crisis.It has taken hard work, courageous and difficult decisions, the commitment of everyone in the bank, and, of course, the unwavering support of our shareholders to get to this moment. I amconfident that, by remaining focused in executing our strategy, we will continue increasing distributions in line with our business plan.”

Piraeus Financial Holdings  announces that, following the relevant request submitted to the Single Supervisory Mechanism in April 2024, it has received the necessary approval for the distribution in cash of an amount of €79 million to Piraeus’ shareholders.

Following the receipt of the regulatory approval, and subject to the approval of the distribution by the Annual General Meeting of Shareholders, which is scheduled to take place on June 28th, 2024, the payment to the company’s shareholders is expected to be completed in July 2024.