Stronger-than-expected earnings reported by Greek banks in the second quarter are prompting HSBC to raise its estimates for both earnings and price targets.
“Greek banks surprised us with stronger loan growth, faster repricing of securities portfolios and strong fee income in the second quarter,” HSBC’s report said, adding, however, that the positive impact of rate hikes on loan yields has yet to materialize.
Read also – Moody’s: ECB decisions will benefit Greek banks
The bank reports that results were strong across banks with core PPI increasing by 8-11% quarter-on-quarter. According to the report, Alpha had the best credit growth and cost control, but core PPI growth fell slightly below peers due to lower fees.
Read also: How Goldman Sachs views Greek banks
Loan growth was slower at National, but strong growth in NIIs and provisions still brought PPI growth in line with its peers. Eurobank stood out with the best CET-1 progress in Q2 thanks to strong trading profits.
“From a valuation perspective, we believe the most promising second quarter results came from Piraeus Bank,” HSBC emphasizes.
The new target prices are:
Alpha Bank, buy recommendation and target price of 1.45 euros from 1.25 euros
Eurobank buy recommendation and target price of 1.65 euros from 1.45 euros,
National Bank buy recommendation and target price 4.55 euros from 4.15 euros
Piraeus Bank buy recommendation and target price 2.70 euros from 1.95 euros
Latest News
41st Athens Marathon- Traffic Regulations in Athens from Thursday to Sunday
Traffic regulations will be implemented gradually, starting from Thursday, as part of the 41st Athens Marathon.
Greek Households Most Pessimistic in Europe: IOBE Report
Over six in ten (65%) of households said that their financial situation worsened over the past year
JP Morgan Remains ‘Bullish’ on Greek Banks
JP Morgan reiterated its analysis of DTCs, prompted by Piraeus Bank’s plan to accelerate their amortization
Source of Wealth Declarations for Greek Public Officials Made Easier
Source of wealth declarations are designed to improve transparency and prevent corruption among Greece's public officials. Yet 98% of Greeks still believe corruption is widespread in the country, according to Eurobarometer.
Greece’s Labor Market Slack Among Highest in EU
Greece ranks 4th in EU for labor market slack, mostly due to high unemployment levels, and has widest gender gap in the EU.
Livestock Crisis Threatens Greek Feta
Feta in particular, is Greece’s primary dairy export, with 65% of production going abroad.
Moldova’s Sandu Wins Second Term amid Meddling Claims
According to the Central Election Commission, with 98% of votes counted, Maia Sandu led with 54.35% to Alexandr Stoianoglo’s 45.65%
Attica Wins ‘Best Greek Hospitality Region’ at 2024 Awards
The Greek Hospitality Awards, now in their tenth year, are one of the premier tourism industry events at the European level
Greece Takes Command of EU’s Operation ASPIDES in Red Sea
The defense minister also visited the Greek frigate Spetsai, which is participating in Operation ASPIDES, while in the port of Djibouti
Brain Gain: Returning Greeks Drive Innovation and Growth in IT and Key Sectors
The profile of the returnees to Greece reveals that 67.6% have families, and 52% have children