Greek banks enter new growth phase with strong credit expansion

Greek banks are entering a new phase of growth characterized by strong credit expansion and improved asset quality. According to S&P Global Ratings, the sector is transitioning from a period of balance sheet cleaning to one focused on organic revenue growth and increased lending. S&P estimates an average annual credit expansion of approximately 5% through 2028.

Major rating agencies have highlighted the positive outlook for the sector, noting that Greek systemic banks have maintained profitability despite global economic uncertainties. Data from the Single Supervisory Mechanism (SSM) indicates that key performance indicators for Greek systemic banks remain superior to the Eurozone average. Specifically, the cost-to-income ratio (CIR) stands at 37.35%, significantly lower than the Eurozone average of 54.62%. Additionally, the average Return on Equity (ROE) for these banks is 10.97%, compared to a 10.02% average in the Eurozone.

The drastic reduction in non-performing exposures (NPEs), which have fallen to levels between 2.5% and 4%, has allowed banks to shift their focus from managing bad debt to financing the broader economy.