The domestic market is moving at the pace of Greek bank results for the second quarter of 2024, with Euroxx expecting strong numbers. As analysts report, banks are expected to post a strong second quarter due:
- a milder decline in net interest income
- an increase in loans through credit expansion
- double-digit percentage growth in fees and commissions
- a reduction in operating costs
- low cost of risk
It is recalled that Eurobank and Piraeus Bank will announce their results on July 31, the National Bank οf Greece on August 1, and Alpha Bank on August 2.
DISCOUNT 15%-20%
Against this backdrop, Euroxx expects bank stocks to rise, as they are trading at an average P/E ratio for this year and next of 6.0x, at a 15%–20% discount to European banking institutions. Recall that the ratio is 7.0–7.5x.
The new target values are as follows:
- Eurobank at €2.5, with a 12% upside to the current price
- For National Bank at €9.8, with a 16% upside margin
- For Alpha Bank at €2.4, with a margin of 38%
- Piraeus Bank at €5.4, with 38% upside
The brokerage predicts that interest income will fall by 4% but remain strong. This decline is due to higher deposit costs and new MREL issuance. In particular, Euroxx expects NII:
- €505 million for Piraeus, up from €518million in the first quarter
- €550 million for Eurobank, up from €571 million
- €575 million for ΝΒG Bank, up from €606 million,
- €402 million for Alpha Bank, up from €420 million
