Greek banks close gap with European peers, posting higher profitability and capital strength

Greek banks have continued to improve their performance in the first quarter of 2026, narrowing the gap with Eurozone averages. Capital adequacy is strong – the CET1 ratio stands at 14.9% and overall capital near 20%, while return on equity (ROE) reached 10.7%, well above the euro‑area mean. Profitability indicators also outpace peers: organic profit grew 4.82% versus the EU banking sector’s 2.77%, and the cost‑to‑income ratio fell to 36% compared with 55% across Europe. Liquidity is robust, with a loan‑to‑deposit ratio of 65% (the eurozone average is 102%) and a liquidity‑coverage ratio of 189% versus 154% EU. Asset quality is improving; non‑performing loans (NPLs) are at 3.4% and the share of loans with heightened credit risk is 6.8%, both below the regional average. Banks have maintained strong access to international markets, issuing €2.7 bn of AT1 and €0.9 bn of Tier II bonds in 2025 and launching €1.2 bn of green bonds in early 2026 to fund the energy transition.

These developments place Greece’s banking sector among the most profitable in Europe and signal a continued convergence toward EU performance standards.