UBS maintains ‘Buy’ rating for Greece’s four systemic banks

UBS has maintained a ‘Buy’ recommendation for Greece’s four systemic banks, citing significant upside potential and attractive valuations compared to European peers. The investment firm anticipates that the sector is well-positioned to benefit from the Greek economic recovery, strong credit expansion toward businesses, and the utilization of surplus capital.

Specific price targets set by UBS include 12 euros for Piraeus Bank (an 18.8% upside), 18.70 euros for National Bank of Greece (12.7% upside), 5.10 euros for Eurobank (11.7% upside), and 4.90 euros for Alpha Bank (8.7% upside).

Key growth drivers identified include an expected average annual increase of approximately 8% in serviced loans between 2025 and 2028, driven largely by corporate credit. While net interest margins are currently near their lowest point, UBS expects a stabilization and gradual recovery of interest income as loan volumes grow. Additionally, the firm notes that non-performing exposure has largely stabilized, with credit risk remaining limited. The economic outlook is further supported by the Recovery and Resilience Facility (RRF) and strong performance in sectors such as tourism and shipping.