A new positive report on Greek banks has been published, this time by NBG Securities. According to the analysts, Greek banks reported nine-month and third-quarter figures above market estimates, which indicates a positive outlook for equities and banking institutions.

THE SEVEN POINTS

Analysts pick out seven points in the banks' figures:

• The industry reported a healthy Q3 2024, with core revenue growth reflecting resilience in interest income (NII) as credit expansion offset lower interest rates and fixed deposits stabilized in the mix, hence improved funding costs and portfolio income
• F&C revenue generation was good, supported by both primary (credit expansion) and secondary banking activities (bank insurance, asset management)
• Total revenues were further supported by higher non-core revenue generation
• Recurring OpEx (operating cost) expansion was largely contained despite inflationary pressures, while cost of risk (CoR) remained broadly unchanged, reflecting improved asset quality despite the acceleration in the system's loan portfolio
• Liquidity also improved as the concentration of deposits outpaced the aforementioned expansion of the loan portfolio
• Capital ratios further improved comfortably above capital requirements, reflecting organic capital generation driven by improved profitability and upwardly revised credit quality
• Systemic banks announced an acceleration of DTC amortization, with the balance to be fully eliminated before the middle of the next decade. They also announced higher payout ratios to shareholders, credit expansion with improved credit quality to support NII growth despite lower interest rates and improved profitability