Deutsche Bank has raised its price targets for major Greek banks, highlighting a positive outlook for the sector despite significant recent stock market gains.
The updated targets are:
National Bank of Greece: €13.40 (previously €11.85)
Eurobank: €3.85 (previously €3.60)
Alpha Bank: €3.85 (previously €3.35)
Piraeus Bank: €7.70 (previously €6.65)
Bank of Cyprus: €8.70 (previously €7.35)
The bank continues to view Greek lenders as the top choice in Europe, citing strong loan growth and robust capital returns. While share prices have already risen significantly, Deutsche Bank believes there remains potential for further gains, particularly through ongoing loan expansion and continued capital improvement.
Greek banks exceeded expectations once again in the second quarter of 2025, driven by strong credit activity, healthy fee income, and lower-than-expected risk costs. Deutsche Bank notes that Greek banks remain “off-trend” in Europe, with room to further enhance capital returns and shareholder value.
Although net interest income (NII) faces pressure from lower interest rates, Deutsche Bank anticipates a faster normalization, supported by reduced funding costs, contributions from securities portfolios, and continued loan growth. Loan expansion in the second quarter exceeded 10% year-on-year, reaching around 15% for Alpha Bank and Piraeus Bank, which has positively affected NII. Credit growth is expected to remain near high single-digit rates over the next three years, with NII recovering progressively in the second half of 2025 and accelerating into 2026 and 2027.
Despite already reflecting part of this growth in stock prices, Deutsche Bank highlights Greek banks’ attractive combination of loan growth and reasonable valuation multiples compared with European peers. Price-to-earnings (P/E) ratios for 2026 are estimated at 8–10x, and price-to-book ratios at 1.0–1.3x, with return on tangible equity (RoTE) projected at 12–14%.
The bank maintains a “Hold” rating for National Bank of Greece, despite strong performance, while favoring Eurobank and Alpha Bank for their structural strength and potential to exceed market expectations. Piraeus Bank is also recommended as a buy, reflecting ongoing improvements, alongside the Bank of Cyprus, which continues to report strong results.
Source: tovima.com
