Fitch Ratings Upgrades the Four Greek Systemic Banks

Fitch Ratings Agency upgraded the four systemic Greek banks in its latest report. The National Bank of Greece (NBG) and Eurobank lead the way, as their ratings were raised to “BBB-” from “BB+” with a stable outlook. Meanwhile, Alpha Bank and Piraeus Bank were upgraded to “BB+” from “BB,” with a positive outlook.

NBG’s upgrade reflects the bank’s ongoing improvements in its credit profile, Fitch notes in its report, including strong profitability, a reduction in non-performing exposures (NPEs), and lower credit losses.

For Alpha Bank, the upgrade acknowledges its steady improvements in credit quality, including a decrease in problematic assets, enhanced profitability, and strong capital buffers.

Eurobank’s rating upgrade highlights the bank’s strengthening credit profile, healthy earnings, improved international diversification following its acquisition of Hellenic Bank, and a reduction in NPEs and credit losses. Piraeus Bank’s rating increase reflects similar improvements, including a decline in NPEs, reduced credit losses, significant profitability growth, and strengthened capital reserves.

Regarding profitability for Greek banks, Fitch expects NBG’s earnings to stabilize as the bank progresses with its restructuring and the deleveraging of legacy troubled assets. The bank’s return on risk-weighted assets (RWA) stood at a high 4.1% in 2024 (compared to 3.9% in 2023), and it is projected to remain healthy in the medium term despite lower interest rates.

This stability is supported by rising fee income, continued loan growth, and cost reductions. While net fee income contribution is gradually improving, it still represents only a modest portion of the bank’s total revenue.