Greek Banks Align with European Standards, Exceeding Averages in Profitability

Greek banks are demonstrating a significant convergence with their European peers, achieving robust profitability and maintaining strong capital adequacy. Recent performance indicates that domestic financial institutions are outperforming the European average in several key metrics, including return on equity (RoE).

In the first months of 2026, Greek banks continued to post positive results, characterized by sustained profitability and high levels of capital and liquidity. The quality of their assets has also improved, further narrowing the gap with the European average. Specifically, the annual increase in RoE reached 8.73% in the first quarter, compared to 4.7% in Europe. Organic profitability stood at 4.82%, significantly higher than the European average of 2.77%.

Furthermore, Greek banks exhibit a more efficient cost structure, with a cost-to-income ratio of 36% in the first quarter, well below the European average of 55%. Their efficiency ratio is also strong at 11%, exceeding the European average of 10%. Liquidity indicators are also favorable, with a loans-to-deposits ratio of 65% compared to Europe's 102%, and a liquidity coverage ratio of 189% against the European average of 154%.

The Bank of Greece's Monetary Policy report underscores these positive trends. It notes that the RoE for Greek banks was 10.7%, substantially higher than the Eurozone average, reflecting improved operational efficiency. The Common Equity Tier 1 (CET1) ratio was 14.9%, with the total capital ratio near 20%, indicating resilience to external shocks. The report also highlights the banks' successful access to international markets, raising significant capital through various bond issuances, and their increasing role in financing the green transition through green bonds.