![Greek Banks: Pressure on income from interest in 2022 due to consolidation](https://www.ot.gr/wp-content/uploads/2022/02/banks-768x512-1.jpg)
The net interest income consolidation program will also hit the net interest income in 2022. This is an inevitable pressure, as last year a record was registered in the denationalization transactions of non-performing exposures.
The first compound securitizations of green loans made in the previous year will have a similar effect, although to a much lesser extent, in order to strengthen the capital adequacy ratios.
The forecasts published by AlphaBank and Eurobank for the results of 2022 are indicative. The relevant price will of course be paid by all systemic groups, depending on the degree of adjustment of arrears achieved in the previous quarters.
The reason is that red loans also contribute to a certain extent to net interest income. Thus, any transfer of assets to third parties nullifies or reduces the relevant benefit, depending on the method used (sale or securitization).
For example, AlphaBank completed trading in troubled portfolios totaling € 16 billion in the previous twelve months, reducing its non-performing exposure ratio from 42.5% to 13%.
Its management predicts for this year a reduction of net interest income by up to 17% or 285 million euros compared to 2021.
On the other hand, Eurobank expects a drop of its respective figures by 3% or 40 million euros. Of course, the bank’s consolidation transactions last year were significantly lower than AlphaBank (3.2 billion euros).
Estimates for the above losses would be worse if we did not expect a net increase in loan balances from new operations, but also an organic reduction of bad debts through successful arrangements.
Overcovering losses
However, this is a pressure that will be offset by other sources and eventually the repeated pre-tax profit in the worst case will be formed in 2022 at the same levels as the previous year.
Specifically:
An increase in commission income is expected, which will come both from the rise of operations in all categories of credit, and from the management of customer funds, which will increase as deposit rates are at zero levels.
The cost of credit risk will be reduced, due to the reduction of the stock of red loans, but also the improvement of the income of households and businesses, if the country remains on a growth trajectory, which will limit the creation of new bad debts. Forecasts at AlphaBank are expected to fall by € 100 million and at Eurobank by € 170 million, with the risk-weighted ratio of assets falling to 70 and 65 basis points respectively from 85 and 110 points in 2021.
The positive effects of the voluntary exit programs and the moves to reduce the network of stores that were completed in 2021 will be visible. For example, Alpha Bank expects a reduction of its operating costs by 180 million euros on an annual basis, as last year its employees decreased by 1,580 and its units by 26 in Greece.
![ot.gr](/wp-content/themes/whsk_otgr/common/imgs/fav.ico/favicon-32x32.png)
![ot.gr](/wp-content/themes/whsk_otgr/common/imgs/fav.ico/favicon-32x32.png)
Latest News
![ELSTAT: 1.5% Increase in Business Turnover in May 2024](https://www.ot.gr/wp-content/uploads/2024/07/epixeiriseis_2-600x414.jpg)
ELSTAT: 1.5% Increase in Business Turnover in May 2024
The most significant increase in turnover in May 2024 compared with May 2023 was recorded from the enterprises of the Accommodation and Food Service Activities, sector which grew by 14.8%.
![Cosco: Container Traffic Decline at Piraeus Port Continues](https://www.ot.gr/wp-content/uploads/2024/07/olp1-scaled-1-2048x1312-1-600x384.jpg)
Cosco: Container Traffic Decline at Piraeus Port Continues
This strategic shift has diminished Piraeus's standing as a prominent Mediterranean port and a key transshipment hub post-Suez Canal.
![Gov’t Eyes Return of Power Subsidies Amid Spike in Rates](https://www.ot.gr/wp-content/uploads/2024/07/power-lines-2048x1365-1-600x400.jpg)
Gov’t Eyes Return of Power Subsidies Amid Spike in Rates
According to reports, the government will resume an electricity subsidization program, given that forecasts cite disruptions – i.e. higher rates
![ELSTAT: 6.3% Increase in Output Price Index for Agriculture and Livestock](https://www.ot.gr/wp-content/uploads/2024/07/ot_georg_PROIONTA_money-1-600x352.png)
ELSTAT: 6.3% Increase in Output Price Index for Agriculture and Livestock
The 6.3% rise in May 2024 is largely driven by an 8.8% increase in the crop output group, particularly due to changes in olive oil prices, and a 0.5% increase in the animal output group.
![Balkans Blackout Highlights Climate Threats to Power Grids](https://www.ot.gr/wp-content/uploads/2024/07/blackout-1-600x457.png)
Balkans Blackout Highlights Climate Threats to Power Grids
The surge in electricity demand during the heat wave and the power deficit in Balkan markets have driven up prices in the Greek wholesale electricity market.
![Greece in Top 4 Destinations Favored by European Tourists](https://www.ot.gr/wp-content/uploads/2021/06/ploio-600x400.jpg)
Greece in Top 4 Destinations Favored by European Tourists
Greece was selected by 5.9% of respondents who were asked where they would vacation this year, up from 5.4% in the same survey last year
![Scope Affirms Greece’s BBB- Ratings; Revises Outlook to Positive](https://www.ot.gr/wp-content/uploads/2024/06/euros-2048x1365-1-600x400.jpg)
Scope Affirms Greece’s BBB- Ratings; Revises Outlook to Positive
The international ratings firm raised Greece to investment grade in early August 2023
![First Seaplane Test Flights to Skopelos, Alonissos, Skyros](https://www.ot.gr/wp-content/uploads/2024/06/hellenic-seaplanes-pilotikes-ptiseis-ydatino-pedio-lavriou-600x450.jpeg)
First Seaplane Test Flights to Skopelos, Alonissos, Skyros
After decades of on-again, off-again efforts to schedule regular seaplane routes to Greece's numerous island and coastal destinations the prospect now appears within sight
![ELSTAT- Overall Import Price Index for May 2024 up 2.8% y-o-y](https://www.ot.gr/wp-content/uploads/2023/08/unnamed-41.jpg)
ELSTAT- Overall Import Price Index for May 2024 up 2.8% y-o-y
The same price index had decreased 20.8% from May 2022 to May 2023
![Over 7 in 10 Employees Feel Their Contributions Are Not Appreciated](https://www.ot.gr/wp-content/uploads/2024/06/ergasia-ergazomenos-600x300.jpg)
Over 7 in 10 Employees Feel Their Contributions Are Not Appreciated
Specifically, the option "Subjective opinions are prioritized over objective data" ranked highest in importance for young employees, with a score of 3.89 out of 4