Morgan Stanley is the center of the market's attention as 37 listed large and mid-cap companies, in cooperation with the Hellenic Financial Markets Authority, participate in a roadshow in London. In addition to the participation of Prime Minister Kyriakos Mitsotakis, the focus is set to be on the managements of the four systemic banks. Their aim is to provide convincing answers that will highlight the success story of the domestic banking system. The CEOs possess robust nine-month figures. 

DEFERRED TAX

The issue of deferred tax has been raised by the supervisory mechanisms and is of interest to rating agencies, funds and investors. We expect the announcement of a business plan by systemic companies for faster repayment of deferred tax to have a positive impact. 

INTEREST RATE CUT

The European Central Bank's interest rate cuts are likely to be the subject of questions from funds and institutional investors. The fears raised have to do with a possible hit to interest income. However, fee income, credit expansion and growth are offsetting the losses in interest income. 

Morgan Stanley, in its recent report, said that "the Greek economy will continue to outperform relative to the Eurozone average, while valuations are cheap." However, the analysts point out that "in a period of rising interest rates, we have been singling out bank stocks as they have good prospects and revenue growth. However, now with the rate-cut environment, the story is blurring due to the sensitivity of the sector."

SHARES

The analysts, however, note that "domestic banking stocks remain attractive as they have an average ROTE of 13.8% in 2025 and P/E and P/B at 5.2 times and 0.7 times, respectively, according to our estimates. Moreover, our numbers suggest a cumulative dividend yield of around 30% over 2024-2026 on average for Greek banks."

THE CONFERENCE

The Morgan Stanley conference is organised by HFSF in cooperation with Alpha Finance, Eurobank Equities, NBG Securities and Piraeus Securities. The conference will be opened by Prime Minister Kyriakos Mitsotakis, who will participate in a closed roundtable discussion with institutional investors, followed by a fireside chat with Morgan Stanley representatives. Also, the Head of the Prime Minister's Economic Office, Alexis Patelis, will participate in a discussion with analysts of the investment firm.